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excess funds in the Business Support Fund is appropriate, but noted they are General Funds. She reported speaking to Director of Finance Tina Olson about the possibility of using American Rescue Plan Act (ARPA) funds, stating the Grant Program is an appropriate use. She added having a similar discussion with her peers at a California League of Cities meeting and suggested having these funds specified as being a part of the City's ARPA funds. Mayor Brown requested Economic Development Manager Adamos reshow the three things they will be voting on so the discussion can stay on-topic. In response to both Councilmember Testa and Mayor Brown, Director of Finance Olson confirmed the $8.5 million in ARPA funds have been allocated evenly between Fiscal Year 2021/22 and 2022/23 and one eligible use is to replace lost revenues. She added help for small businesses like this is qualifying projects. She advised it would be acceptable to target $250,000 of the FY 21/22 funds for this project. She clarified it can offset the losses of the City by being directed to the businesses. She added ARPA is General Fund money and it is acceptable to specify some of it is targeted for this program. Councilmember Testa moved to support staff's recommendation with amendments to extend the program to businesses outside of downtown by adding an additional allocation of $100,000 from the Business Assistance Program Fund. In response to Councilmember Arkin, Councilmember Testa confirmed it would be $250,000 for downtown parklets and $100,000 to be used elsewhere in the City. Councilmember Arkin seconded the motion. She advised everything looks great and noted her agreement with the eligible expenses and extending the program beyond downtown because other businesses have also suffered during the pandemic. She agreed with Mr. Dissel's comment about prior expenses being potentially eligible. She requested staff see if they can do more with retailers, noting another City gave residents gift cards for local businesses. Councilmember Narum expressed support, echoing the wise addition of non-downtown businesses. She echoed Councilmember Arkin to find potential additional programs for retailers. She expressed her eagerness to see what Main Street will look like with well-designed parklets and commended how quickly staff put the program together. Councilmember Balch advised he supports the $250,000 sum presented by staff but is concerned they would be giving $100,000 to non-downtown businesses because he does not know the basis of the figure. He advised he would be more comfortable if staff could come up with this figure similar to how the City Council and EVC were told by Economic Development Manager Adamos the basis for the $250,000. Councilmember Balch advised non-downtown businesses do not often have a similar setup as the downtown businesses for being in a private parking lot as opposed to a street's public right-of-way. In response to Councilmember Balch, Deputy City Manager Ott confirmed the nature of outdoor dining outside of downtown is different because it is generally on private property. She advised there is a separate process for this through the Community Development Department for this type of outdoor dining. She advised staff will have to do additional work to figure out how to apply the parklet program's concepts to the current outdoor dining on private property process. Councilmember Balch expressed support for the Downtown Parklet Grant Program and advised the City is also providing businesses with a cost-saving pre-approved design. He advised he would support a similar program outside of downtown but would like additional clarity to ensure its success. He advised the current motion would provide money at a worthy goal but without a plan. He requested an City Council Minutes Page 5 of 16 February 1,2022