Report to Mayor and City Council
Tuesday, April 21, 2020
Discussion
SUBJECT:
Title
CONSIDER APPROVING THE TRANSFER OF $75,000 FROM ACCOUNT 101-70-780-290-6004 TO ACCOUNT 101-99-999-999-6503 (COVID-19 RELATED PROFESSIONAL SERVICES) FOR A CONTRACT WITH THE CALIFORNIA COMMUNITY ECONOMIC DEVELOPMENT ASSOCIATION, A NON-PROFIT ORGANIZATION, TO PROVIDE ASSISTANCE TO CARSON BUSINESSES IN APPLYING FOR LOANS MADE AVAILABLE THROUGH THE CARES ACT, ESPECIALLY THE PAYCHECK PROTECTION PROGRAM ("PPP") LOANS AND ECONOMIC INJURY DISASTER LOANS ("EIDL") (CITY COUNCIL)
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I. SUMMARY
On April 13, 2020, the Disaster Council approved a contract in a form acceptable to the City Attorney with the California Community Economic Development Association (“CCEDA”), a California non-profit organization, to quickly create and implement a focused business assistance program for Carson businesses, with a special emphasis on the COVID-19 response and accessing funding through federal programs offered through the Small Business Administration. While the Disaster Council has the authority to approve the contract, the appropriation of new funds from the City’s Fund Balance requires and action of the City Council. II. RECOMMENDATION
Recommendation
APPROVE the recommendation to transfer $75,000 from Account Number 101-70-780-290-6004 to Account Number 101-99-999-999-6503 for a contract with the California Community Economic Development Association (“CCEDA”), a California non-profit organization for the purpose of operating a Small Business Assistance Program Carson retail and commercial businesses, and non-profits.
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III. ALTERNATIVES
TAKE another action the Council deems appropriate.
IV. BACKGROUND
On April 13, 2020, the Disaster Council approved a contract with CCEDA, which is a statewide membership association that has served California since 1989. CCEDA supports nonprofit, community-based, neighborhood-targeted development organizations that have programs, services and projects focused on improving the overall economic conditions in low- and moderate-income communities. While the Disaster Council has the Authority under the Disaster Resolution adopted on March 17, 2020 to enter contracts related to the disaster response, the appropriation of funds remains the responsibility of the City Council. This is a transfer, not an appropriation of new funds from Fund Balance, and could be done administratively by the Finance Director, but Mayor Robles requested it be placed on the Council agenda for transparency purposes.
Overall Scope
In Carson, CCEDA would assist the City in three tasks:
1. Developing and implementing a program of intensive, disaster-oriented business assistance to small businesses in Carson, including developing a business assistance and lending network;
2. Marketing the program to Carson businesses and soliciting applications for business assistance and lending programs, including identifying business owners who are sheltering at home and away from their businesses, responding to public inquiries made to the City, marketing the program on Facebook and other social media, and using the Chamber of Commerce and business license resources to reach owners;
3. Providing intensive business assistance to the small business community, including assessing the economic damage from the shutdown and triaging the next steps, including applying for SBA Paycheck Protection Loans, Economic Injury Disaster Loans, and other state, federal and City-funded loans that may be available.
V. FISCAL IMPACT
The amount of this contract is $75,000. This action transfers funds from Professional Services in Community Development to Professional Services in the City’s COVID-19 Response accounts. This initial amount is intended to enable the City to monitor the success of CCEDA in meeting its deliverables over an initial period. Pending the satisfactory performance of CCEDA, staff will either transfer additional funds, if available, to this effort or return to the City Council for an appropriation.
VI. EXHIBITS
None.
Prepared by: John S. Raymond, Assistant City Manager