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City of San Leandro <br />Meeting Date: January 19, 2021 <br />Staff Report <br />Agenda Section:File Number:20-627 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Fran Robustelli <br />Interim City Manager <br />BY:Tom Liao <br />Community Development Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Approving <br />Appropriation of Four Hundred Thousand Dollars ($400,000) of General Fund <br />Reserves to Address Business Needs During the COVID-19 Pandemic <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City of San Leandro City Council adopt a Resolution approving appropriation <br />of four hundred thousand dollars ($400,000) of General Fund Reserves to address urgent business <br />needs during the COVID-19 pandemic. <br />BACKGROUND <br />Following the initiation of the Alameda County Shelter-in-Place Order on March 17, 2020 in order to <br />protect employees and customers from transmission and limit the spread of the COVID-19 virus, many <br />San Leandro businesses, including specialty retail, restaurants, personal services (hair, nails, etc.), and <br />health and fitness were required to close, or limited to pick up service only. The initial and subsequent <br />orders and their restrictions devastated local businesses, particularly small service, food, and other <br />direct customer serving businesses. Even as certain businesses were permitted to reopen for a time <br />during the fall, small businesses continued to suffer from reduced customer traffic due to work from <br />home arrangements and customer reluctance for person-to-person contact. With reduced sales, <br />increased costs of operations due to required personal protective equipment and physical protective <br />measures, and the cost of ongoing and past overhead, businesses continue to have significant <br />operations and financial challenges. <br />In recognition of the continued operational and financial stress on small businesses, the Alameda <br />County Board of Supervisors authorized the implementation of the Alameda County CARES Grant <br />Program, funded by Federal Coronavirus Aid, Relief and Economic Security (“CARES”) Act funds on <br />November 10, 2020. The program provided grants of up to $5,000 to eligible small businesses impacted <br />by the COVID-19 pandemic. Alameda County allocated <br />$5 million to businesses within incorporated cities in Alameda County, and up to $3 million in additional <br />funds to match contributions to the grant program made by individual cities. The funds provided by <br />cities and matched by the County were distributed directly to small businesses within that city. The <br />program opened on November 17, 2020 and accepted applications from businesses until November 30, <br />Page 1 City of San Leandro Printed on 1/14/2021 <br />129