Legislation Details

File #: HIST-24434    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 3/10/2014 Final action: 3/10/2014
Title: Discussion of Event Sponsorship Policy and Direction to City Manager.
Attachments: 1. Discussion of Event Sponsorship Policy and Directi - A-2__14-03-10__CDD__Event Sponsorship Policy-FINAL.pdf, 2. Discussion of Event Sponsorship Policy and Directi - 14-3-10 ATT_CDD Event Sponsorship.pdf
City of Culver City, California Agenda Item Report Meeting Date: 3/10/2014 Item Number: A-2 CITY COUNCIL AGENDA ITEM: Discussion of Event Sponsorship Policy and Direction to the City Manager. Contact Person/Dept.: Todd Tipton/Community Development Department Heather Baker/City Attorney Phone Number: (310) 253-5783 (310) 253-5660 Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X] Public Hearing: [] Action Item: [X] Attachments: [X] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (Email) Meetings and Agenda – City Council (03/05/14) Department Approval: Sol Blumenfeld (03/06/14) Carol Schwab (03/06/14) City Attorney Approval: Carol Schwab (03/06/14) Chief Financial Officer Approval: Jeff Muir (03/06/14) City Manager Approval: John Nachbar (03/XX/14) RECOMMENDATION: Staff recommends the City Council conduct a general policy discussion regarding event sponsorship and direct the City Manager as deemed appropriate. BACKGROUND: The City Council and former Culver City Redevelopment Agency (“Former CCRA”) Board previously considered a sponsorship policy on September 13 and December 6, 2010. The agenda item reports, attachments and meeting minutes are attached. At that time, staff recommended that a competitive process be created that would provide financial assistance to events that created the greatest benefit for the City based on specified criteria. Financial assistance for the various events was to be provided by the former CCRA, except for the Fourth of July Fireworks Show, which is provided by the General Fund. With the elimination of the Former CCRA, any sponsorship in the form of financial assistance must now come from the General Fund. In this regard, the City Council has been considering requests for event sponsorship on a case-by-case basis. At its meeting of August 26, 2013, the City Council directed staff to research, evaluate and recommend options for a policy regarding City sponsorship of events before considering future sponsorship requests. City of Culver City, California Agenda Item Report DISCUSSION: Existing Criteria for Sponsorship and Banners Requests for sponsorship of events and activities are currently administered on a case-by-case basis through policies and provisions of the Culver City Municipal Code (CCMC). City Council Policy Statement 2008-01, Community Organizations, (the “Policy”) provides for objective criteria to apply in determining the status of a Community Organization with respect to various issues, including City sponsorship and eligibility for use of the City’s banner locations. The Policy applies to all Community Organizations that are provided financial support by the City and provides additional clarification when determining if a Community Organization qualifies as “City Sponsored.” The Policy provides for a general definition of “City Sponsored,” which is taken from CCMC Section 17.330.040.B.7.b.ii with regard to allowable signs in the public right-of-way (i.e. the City’s banner locations). Pursuant to the Policy and the CCMC, “sponsored” means that the City is (a) participating in an official capacity in the planning, preparation or promotion of the civic event or activity; and (b) contributing 25% of the total estimated costs of the civic event or activity, or at least $1,000, whichever is less. This contribution may take the form of funds, labor, staff time, materials, a waiver of fees, or any combination of the foregoing. (CCMC Section 17.330.040.B.7.b.ii) “Civic event or activity” means any event or activity organized or sponsored by the City including, but not limited to, (a) any public program or educational activity; and (b) the commemoration or celebration of any historical date, event or person, holiday or persons or events of local, state or national significance. (CCMC Section 17.330.040.B.7.b.i) Pursuant to the Policy, in order for an event to be eligible for sponsorship, the City Council must take all of the following actions: (1) Determine that the event is City-sponsored; AND (2) Determine to support the event in an amount no less than $1,000 or 25% of the total event cost, whichever is less. Support may take the form of staff time or a fee waiver; AND (3) By specific action, determine that both of the above criteria (#1 and #2) have been met. Without City sponsorship, banners, signs, pennants or other displays (collectively, “Banners”) cannot be placed in the public right-of-way. The CCMC generally prohibits signs in the right-of-way with certain exceptions, including the promotion of City of Culver City, California Agenda Item Report civic events and activities, which are organized or sponsored by the City, as defined above. During its last meeting to consider a request for sponsorship of an event, members of the City Council inquired about the possibility of removing the requirement of financial support in order to sponsor an event and/or allow for Banners to be placed in the right-of-way. This would require a change in Council Policy and an amendment to the provisions of the CCMC relating to signs in the public right-of- way. The City Attorney’s Office has concerns about making such a change in policy and an amendment to the CCMC without a careful legal analysis being conducted.|1010| If such changes are made, it will be important to continue to maintain uniform standards that provide objective criteria to be used for each sponsorship request. Other Cities’ Policies Staff performed preliminary research regarding the cities of Beverly Hills, Los Angeles, Santa Monica and West Hollywood to understand what criteria those cities use when determining whether to sponsor an event and/or allow the placement of Banners in the right-of-way. Staff learned the following information: Beverly Hills Banners are allowed for advertising City sponsored or City funded special events that : 1. Are open to the public; and 2. Are produced by a non-profit organization that promotes business or tourism in the City; and 3. Are not a purely commercial enterprise; and 4. Generate proceeds that directly benefit the government agency or non-profit agency conducting the event; and 5. Is conducted on City property and will further a public purpose. Los Angeles Banners are used to promote City events, nonprofit/charitable events or Business Improvement Districts. Logos of corporate sponsors are limited to 20% of the banner space and fees are imposed when logos are used. Applications are approved on a first come, first-served basis. Santa Monica Banners are used for the purpose of promoting City-produced or City co-produced events, or more generally for promoting or calling attention to the City, its resources, business districts, attractions or facilities, celebrating holidays and providing aesthetic enhancement. All other temporary banners are prohibited. A City-produced event is developed and implemented in its entirety |1010| The existing CCMC provisions, which allows signs in the public right-of-way relating to City-sponsored civic events or activities, in part, were adopted after litigation against the City challenging its sign code. City of Culver City, California Agenda Item Report solely by a City department or departments. A City co-produced event is one that has significant City staff involvement in both the planning and the implementation of the event together with a non-City entity. To be considered an event co-produced by the City, City staff must be involved in all aspects of the event including creative direction, funding and fund development, marketing and media relations, and staffing and support services. Banners are used to benefit the community, rather than any individual interest. Banners in the right-of-way must: 1. Only be displayed along commercial streets. 2. Be displayed for no longer than 25 calendar days prior to an event, nor remain posted longer than five business days following the event, except during the winter holiday season. Banners displayed during the winter holiday season may be displayed for up to 60 days. 3. Not be displayed in any single location more than twice in any calendar year. 4. Not advertise any business or product. West Hollywood Only banners announcing events within the community of a general civic and public nature shall be permitted except by formal approval of the City Council. Specific criteria used to assess a proposed banner do not exist. Options Staff has identified the following sponsorship options: 1. Continue to follow the existing Policy to determine sponsorship of events on a case-by-case basis. If an event is determined to be sponsored, it would automatically qualify for use of the City’s banner locations. 2. Follow the existing Policy, but expand the existing criteria to include a requirement that an event must provide an economic benefit (i.e. sales tax generation, visibility of City and/or event, increased pedestrian traffic, etc.) and/or community benefit (i.e. community education, public services, etc.) to the City in order to be eligible for sponsorship. Additionally, the Policy could be modified to limit the number of staff hours committed to sponsored events. Currently there is no limit to the amount of staff time consumed by each event. If the Council is interested in this option, City staff will return with a revised Policy, including objective criteria that may be used to quantify the potential economic and community benefits of proposed events. 3. Provide financial sponsorship via a competitive process (i.e. Notice of Funding Availability) whereby funds would be awarded for events that provide an City of Culver City, California Agenda Item Report economic and/or community benefit to the City. In addition, if an event is determined to have an economic and/or community benefit to the City, the amount of funding provided could be determined by applying certain criteria (i.e. cost of event, cost for City services, number of years the event has received sponsorship, etc.). If the Council is interested in this option, City staff will return with a revised Policy, including objective criteria that may be used to measure/value the economic and community benefits and the amount of funding. 4. Modify the Policy to allow for sponsorship of events (including the use of the banner locations) without the requirement of City financial support (including funds, staff time, equipment, materials and/or fee waivers). In this case, it is also recommended that objective criteria be expanded for determining whether the City Council approves sponsorship of an event and/or use of banners. This option would also require amendments to the CCMC provisions relating to signs in the public right-of-way, which would need to be legally evaluated before any action is taken. 5. Not provide sponsorship for any events at this time. The Council may also wish to discuss whether sponsorships should be limited to non-profit organizers/events only. Staff recommends the City Council discuss these options and provide direction to the City Manager as deemed appropriate. Please note that any modification to the existing Policy and/or the CCMC will require additional research and preparation for consideration by the City Council at a future meeting. Until such time as a revised policy is in place, Staff recommends that requests should be considered under the existing Policy. The pending requests listed below have been scheduled for the March 24 th City Council meeting: • LA Modernism Show (Dolphin Promotions, Inc.): April 25-27, 2014 • George Barris Cruisin’ Back to the 50s Culver City Car Show (Culver City Exchange Club): May 10, 2014 • Train 4 Autism Culver City 5K/10K Run/Walk (Culver City Education Foundation): June 2014 • IndieCade Festival 2014 (Creative Media Collaborative, Inc.): October 10-12, 2014 • Crush Cancer (DogTown CrossFit in partnership with Stand Up To Cancer): TBD FISCAL ANALYSIS: There is no fiscal impact in the discussion of this item. Depending on the policy direction, there will be fiscal impacts associated with the specific sponsorship of an event. City of Culver City, California Agenda Item Report ATTACHMENT(S): 1. September 13 and December 6, 2010 staff reports, attachments, and minutes. MOTION(S): That the City Council: Discuss event sponsorship and provide direction to the City Manager as deemed appropriate. MEETING DATE: 3.10.14 AGENDA ITEM: Discussion of Event Sponsorship Policy and Direction to the City Manager. ATTACHMENTS Pages 1. September 13 and December 6, 2010 staff reports, attachments and minutes 1 - 29 City of Culver City, California Agenda Item Report Meeting Date: 09/13/10 Item Number: _J-1 CITY COUNCIL AND REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Discussion of a Policy Related to Special Event Sponsorship and Financial Support of City- and Agency-Sponsored Events and Direction to Staff. Contact Person/Dept.: Jeremy Green, Management Analyst; Todd Tipton, Redevelopment Administrator Phone Number: (310) 253-5764/5783 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [] Action Item: [X] Attachments: [X] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (Email) Meetings and Agendas – City Council (09/08/10); (EMAIL) Meetings and Agendas – Redevelopment Agency (09/08/10); (Email) Downtown Business Association (09/08/10); (Email) Chamber of Commerce (09/08/10); (Email) IndieCade (09/08/10); (Email) Share our Strength (09/08/10); (Email) Culver City Exchange Club (09/08/10); Department Approval: Sol Blumenfeld: (08/04/10) City Attorney Approval: Carol Schwab (by H. Baker) (09/07/10) Agency Counsel: Murray Kane: (07/26/10) Chief Financial Officer Approval: Jeff Muir (by M. Noller) (09/08/10) City Manager/Executive Director Approval: John M. Nachbar: (09/08/10) RECOMMENDATION: Staff recommends the City Council and Culver City Redevelopment Agency Board (Agency Board) discuss and provide input on a policy related to special event sponsorship and financial support of City- and Agency-sponsored events. BACKGROUND: The City Council and Agency Board frequently receive funding assistance and sponsorship requests for special events, to be produced by outside organizations, throughout the year (Attachment No. 1). Past requests were approved on a case- by-case basis, mostly in the form of fee waivers for City permits and staffing costs, but also as cash sponsorships or financial reimbursements. On March 22, 2010 the City Council and Agency Board requested that staff develop criteria and a policy for approving support of special events. During the meeting, the City Council and Agency Board discussed supporting events by providing cash sponsorships only, rather than fee waivers or in-kind services, Such funds could pay for any City/Agency fees and staff/facility costs. ATTACHMENT 1 1 City of Culver City, California Agenda Item Report DISCUSSION: Generally, the Redevelopment Agency supports events that likely provide economic benefit to the City or Agency. With economic benefit to the Redevelopment Project Areas, specifically, and the City generally, as the primary objective of the Agency, staff proposes the following process and criteria for determining event sponsorship.|1010| For purposes of this discussion, staff recommends that the following definitions be used in connection with event sponsorship: • In-Kind Services: Costs for use of staff time that will not be paid for by the outside organization. Note: In-kind services have a cost to the City/Agency because the assignment of staff time to an unpaid event either takes time away from regular, planned City staff activities or incurs overtime for which the departments may not have sufficient budgeted resources. • Fee Waivers: Waiver of an established fee or charge for costs associated with permits, equipment use, facility rental, staff time or any other administrative, non staff fees. • Cash Sponsorships: provision of a grant, not associated with any fees, waivers or in-kind services that can be used to in any manner that the grantee chooses. As an example of the significance of funding assistance provided to some of the larger sponsored events, the Culver City Car Show, Taste of the Nation and IndieCade received funding assistance during Fiscal Year (FY) 2010/11 in the amount of approximately $40,000 in the form of in-kind services, fee waivers and cash sponsorships. For future funding requests, staff recommends the City Council and Agency Board consider the following process and criteria: Notification of Funding Availability (NOFA) • Staff would send out a NOFA (similar to the process used for notification of Culver City Performing Arts Grant availability), which would define eligibility criteria, funding guidelines, application guidelines, permit requirements|1010|, evaluation and selection process, contract requirements, submittal guidelines and a timeline. This process is anticipated to be initiated in December 2010. Application Process • Applicants would submit an application describing the event, duration, use of Culver City equipment and/or facilities, economic benefits, budgetary ATTACHMENT 1 2 City of Culver City, California Agenda Item Report information and sponsorship request. This process is anticipated to conclude in February, 2011. • A Panel (with panel member expertise to be determined) would meet to discuss the events. Eligible events would be recommended to the City Council and/or Agency Board for funding. Staff recommends that financial support not exceed $15,000 per event. This process is anticipated to conclude in March-April 2011. • The City Council and/or Agency Board would be asked to consider recommendations by the evaluating panel prior to the budget being finalized for the following fiscal year and specifically designate those events to be sponsored events. This process is anticipated to conclude in early May, 2011. • Upon conclusion of an event, organizers will be required to provide a report describing how City and Agency funds were used. Criteria for Eligibility: Staff recommends that the following criteria be used when determining whether or not an event will be eligible to receive funding: • Amount of potential economic benefit for Culver City • Visibility of the event • Exposure to foot traffic • Promotional/ cross-promotional plan with Culver City • Potential for business attraction • Uniqueness for Culver City Amount of Funding: Staff recommends the amount of sponsorships range from a minimum of $1,000|1010| to a maximum of $15,000 per event as determined by: • Cost of event: Each event would be provided a maximum of 10% of the total cost of the event, including in-kind donations, up to $15,000. For example, an event that costs $10,000 would be eligible to receive a $1,000 sponsorship, while an event with costs of $150,000 and above would be eligible to receive $15,000); • Cost for City/Agency Services deemed necessary by City departments; • Cost of attendee attraction (cost of event divided by the number of attendees); and • Amount expended on marketing of the event. For events that previously received sponsorship, staff recommends that the amount of the sponsorship be reduced by 20% annually over a period of 5 years in order to ATTACHMENT 1 3 City of Culver City, California Agenda Item Report encourage those events to become self-sufficient and to allow other events the opportunity to be provided a cash sponsorship. For example, if an event received $15,000 in Fiscal Year 2011/2012, they would receive a maximum of: $12,000 in Fiscal Year 2012/2013, $9,000 in Fiscal Year 2013/2014, $6,000 in Fiscal Yer 2014/2015, $3,000 in Fiscal Year 2015/2016, and $1,000 in Fiscal Year 2016/2017 and for as long as the City Council and/or Agency Board determines to sponsor the event. After the City Council and Agency Board determine the events they will sponsor and the amount of support has been appropriated, the events that do not receive assistance will be directed to seek funding during the next fiscal year. If an event seeks funding after the process has concluded, the City Council and/or Agency Board would have to authorize additional funds through the budget amendment process. Staff also recommends that cash sponsorships not be provided until after an event has concluded. For those events that incur City costs, it may be burdensome to pay City fees and staff costs (that will no longer be “in-kind” and will need to be paid for) that will be incurred prior to the event date and during the period when the sponsorship money is pending. For those situations, staff will work with Finance Department to determine how to track those costs and the best way to minimize the burden. Implementation Staff recommends that the proposed policy be implemented consistent with the above-described time schedule so that the sponsorship awards can be provided for events that occur in Fiscal Year 2011/2012 . This will also allow time for the criteria to be fully developed and for the public to be made aware of the policy. Optimally, after the first year of implementation, the City Council and Agency Board would determine the amount of available sponsorship dollars available during the annual budget process. Then the timing for the NOFA process described above could reference the amount available so that applicants would be aware of this amount as they formulate their requests. Ultimately, this could result in the NOFA process being initiated in July/August of a new fiscal year with awards being made and/or encumbered for events in the subsequent calendar year. FISCAL ANALYSIS: For the Redevelopment Agency, funding of $40,000 was appropriated in the Fiscal Year 2010/2011 budget (Program 90200, Economic Development - Special Events and Meetings) to fund the following special events: Culver City Car Show, with fee waivers of up to $12,000; Taste of the Nation, with a fee waiver and funding assistance total of up to $15,000; and IndieCade with funding assistance of ATTACHMENT 1 4 City of Culver City, California Agenda Item Report $10,000, with the remaining $4,000 of funds available to cover requests for additional funding by those organizations or for meeting any cost increases. There were no City funds budgeted in Fiscal Year 2010/2011 as all fee waivers are to be reimbursed from the Agency for these special events. For Fiscal Year 2011/2012, staff recommends the Agency Board budget $40,000 to fund the Car Show, Taste of the Nation and IndieCade (assuming that they apply for a cash sponsorship.) If the Agency Board desires, additional funds could be added to budget for new requests for sponsorships. In addition, staff recommends the City Council consider whether it wants to budget a specific amount to use toward cash sponsorships during Fiscal Year 2011/2012. With more competitive requests, it is possible that some of the events currently receiving funds may receive lesser amounts than in the past and some may not receive assistance at all, while new events may receive assistance that was not provided in the past. ATTACHMENTS: 1. Definition of “Sponsored event” as outlined in City Council Policy Statement 2008-01 MOTION: That the City Council and Redevelopment Agency Board: 1. Discuss and provide input on a policy related to special event sponsorship and financial support of City- and Agency-sponsored events; and if necessary, 2. Direct the City Manager/Executive Director to prepare and present an Event Sponsorship Policy to the City Council and Agency Board for consideration during an upcoming City Council/Agency Board joint meeting. |1010| Events that are subject to a Memorandum of Understanding (MOU) were not considered, as financial support for those events is administered pursuant to the terms of the specific MOU. The events administered by MOUs may be subject to any future policies as the MOUs are updated, or the City/Agency Board could direct staff to bring forward amendments to those MOUs, so they are consistent with any adopted policy. |1010| All events will still be required to procure a special event permit from the Committee on Permits and Licenses and follow all conditions imposed therewith, as well as other permits that may be required, depending upon the nature of the event. ATTACHMENT 1 5 City of Culver City, California Agenda Item Report |1010| Per Culver City Municipal Code § 17.330.040.B.7.b.ii, in order for a sponsored event to be eligible to place banners promoting the event in the public right-of-way, a minimum contribution of $1,000 is required. ATTACHMENT 1 6 City of Culver City, California Agenda Item Report Meeting Date: 12/06/10 Item Number: _J-1 JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Further Discussion Regarding a Policy Related to Special Event Sponsorship and Financial Support of City- and Agency-Sponsored Events. Contact Person/Dept.: Jeremy Green / Community Development Todd Tipton / Community Development Phone Number: (310) 253-5764 (310) 253-5783 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [] Action Item: [X] Attachments: [X] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (e-mail) Meetings and Agendas – City Council (12/02/10); Meetings and Agendas – Redevelopment Agency (12/02/10); Downtown Business Association (11/18/10); Chamber of Commerce (11/18/10); IndieCade (11/18/10); Share our Strength (11/18/10); Culver City Exchange Club (11/18/10). Department Approval: Sol Blumenfeld: (11/24/10) City Attorney Approval: Carol Schwab (by H. Baker) (12/01/10) Agency Counsel: Murray Kane: (11/19/10) Chief Financial Officer Approval: Jeff Muir (by M. Noller) (12/01/10) City Manager/Executive Director Approval: John M. Nachbar: (12/02/10) RECOMMENDATION: Staff recommends the City Council and Culver City Redevelopment Agency Board (Agency Board) discuss and provide additional input on a proposed policy related to special event sponsorship and financial support of City- and Agency-sponsored events. BACKGROUND: On September 13, 2010, the City Council and Agency Board discussed criteria and the components of a policy for approving support of special events. During the meeting, the City Council and Agency Board voiced initial support of the concept that events would be supported through cash sponsorships rather than fee waivers or in-kind services. Such funds could pay for any City/Agency fees and staff/facility costs. There was basic support for the proposed process and policy. The City Council and Agency Board agreed that: • A policy is necessary • The number of requests for assistance are increasing ATTACHMENT 1 7 City of Culver City, California Agenda Item Report • The current budget should be maintained • Currently supported events (Car Show, IndieCade and Taste of the Nation) should continue to receive funding of some kind • Enhancing economic activity should be the focus for events assisted by the Agency • The process will provide a complete picture of all events requesting funding. During the discussions the City Council and Agency Board expressed concerns about specific aspects of the plan, including placing limitations on the amount of funding per event and the development of criteria used to determine that funds are used for economic development purposes. DISCUSSION: Staff has worked to include the suggestions and address City Council and Agency Board concerns expressed during the meeting. The concerns were as follows: Current Funding: City Council and Agency Board Members expressed concern about discontinuing funding for existing events. To ensure that the three currently funded events are provided funding in the future, staff recommends that eligible organizations, currently considered Category 6 (Other) organizations per Resolution 2008-01 may want to consider completing an MOU with the City and/or Agency. This would make them eligible to become Category 2 organizations (Cooperative Community Groups), which will allow them to request fee waivers and in-kind services (which special events would not be allowed to request) based on the proposed new policy for cash sponsorships. If an MOU is completed, funds would need to be appropriated from either the existing $40,000 available in the Special Events budget or another funding source. If the entire $40,000 were appropriated for MOUs with existing events, then additional funds would be necessary to assist events not covered by an MOU and any new events that complete an application and are approved for funding. Economic Development: The City Council and Agency Board expressed concern about ensuring that the process be based on an economic development model. To address this concern, staff has added additional eligibility criteria (as recommended by the City Council and Agency Board during the last meeting) as well as including members of the Economic Development Subcommittee on the review panel described below. ATTACHMENT 1 8 City of Culver City, California Agenda Item Report Process: The City Council and Agency Board expressed concern about the process. To address this concern, staff is proposing the process below, which would assess all events using criteria in order to determine which events should receive annual funding. Step 1 - Notification of Funding Availability (NOFA): Staff recommends that a NOFA be sent out requesting organizations to complete an application. The application form would include the eligibility and funding criteria and require the organization to address how the event would qualify for sponsorship. The applicant would also need to provide specific event details and an event budget. Step 2 - Panel Review Process: Staff recommends that a panel|1010| be convened annually to review the applications received as a result of the NOFA, in order to make recommendations to the city Council and/or Agency Board as to which special events should receive financial support based on eligibility criteria and funding criteria. Staff recommends that the panel use the following criteria when developing its recommendations: • Amount of potential economic benefit for Culver City as measured by o Quantifiable Value of Media Exposure o Expected amount of sales tax to be produced o Potential for new business attraction o Visibility of the event o Exposure of Culver City to new audiences/foot traffic o Amount of sponsorship already secured o Established marketing package and or plan o Geographic diversity of event location within Culver City o Location within a Redevelopment Agency Project Area • Amount of community benefit for Culver City as measured by o Unique quality for Culver City Staff recommends the panel use the criteria below when determining the amount and type of funding an event should receive. Staff further recommends that the minimum funding amount be $1,000|1010| with no maximum (with ultimate maximum funding subject to the approval of the City Council and/or the Agency Board). • Cost of event; • Cost for City/Agency Services deemed necessary by City departments; ATTACHMENT 1 9 City of Culver City, California Agenda Item Report • Cost to attract each attendee (cost of event divided by the number of attendees); • Amount expended on marketing of the event; and • Number of years that event has received sponsorship Step 3 - Approval of Sponsorships: Staff recommends that the City Council and Agency Board annually review and consider recommendations made by the panel (including the amount of sponsorship) and specifically designate those events as sponsored|1010|. Those events that do not receive funding assistance are able to seek funding during the next fiscal year. If an event organizer seeks funding after the process has concluded, the applicant would have to seek City Council and/or Agency Board approval to have his or her funding request agendized for consideration through the budget amendment process. Step 4 – Distribution of Funds: Staff recommends that cash sponsorships not be provided until after an event has concluded. For those events that incur City/Agency costs during the period when the sponsorship money is pending, staff will work with Finance Department to determine how to track those costs and the best way to minimize the burden to the event organizers. Implementation of process Staff recommends that the total amount of sponsorship dollars be identified during the annual budget process for Fiscal Year 2011/2012. Following this, the NOFA process would be initiated in July/August of Fiscal Year 2011/2012, with awards being made and/or encumbered for events that occur in calendar year 2012. FISCAL ANALYSIS: The Agency Board appropriated $40,000 in the Fiscal Year 2010/2011 budget (Program 90200, Economic Development - Special Events and Meetings) for the following special events: Culver City Car Show, with fee waivers of up to $12,000; Taste of the Nation, with a fee waiver and funding assistance total of up to $15,000; and IndieCade with funding assistance of $10,000, with the remaining $3,000 of funds available to cover requests for additional funding by those organizations or for meeting any cost increases. The City Council did not budget funds in Fiscal Year 2010/2011 as all fee waivers were reimbursed by the Agency as a component of the event. ATTACHMENT 1 10 City of Culver City, California Agenda Item Report ATTACHMENTS: 1. Definition of “Sponsored” event as outlined in City Council Policy Statement 2008-01. 2. Event Sponsorship Staff Report from September 13, 2010 with an Excerpt from the Minutes of the Meeting of September 13, 2010. MOTION: That the City Council and Redevelopment Agency Board: 1. Discuss and provide direction on a proposed policy related to special event sponsorship and financial support of City- and Agency-sponsored events; and if necessary, 2. Direct the City Manager/Executive Director to prepare and present an Event Sponsorship Policy to the City Council and Agency Board for consideration during an upcoming City Council/Agency Board joint meeting. |1010| The panel would be comprised of the two (2) Council Members who comprise the Economic Development Subcommittee; one (1) representative of the Culver City Chamber of Commerce; one (1) LA County-based events specialist, who understands the costs/requirements to produce an event; and one (1) designee of the City Manager. |1010| Per Culver City Municipal Code § 17.330.040.B.7.b.ii, in order for an event to be eligible to place banners promoting the event in the public right-of-way, it must be specifically designated as a sponsored event. Sponsored means that the City and/or Redevelopment Agency is: (a) participating in an official capacity in the planning, preparation or promotion of the event or activity; and (b) contributing 25% of the total estimated costs of the civic event or activity, or at least $1,000, whichever is less. This contribution may take the form of funds, labor, staff time, materials, a waiver of fees, or any combination of the foregoing. ATTACHMENT 1 11Excerpt From Minutes REGULAR MEETING OF THE September 13, 2010 CITY COUNCIL, CITY OF CULVER CITY, CALIFORNIA Joint Item Item J-1 Discussion of a Policy Related to Special Event Sponsorship and Financial Support of City- and Agency-Sponsored Events and Direction to Staff. Jeremy Green, Cultural Affairs Administration and Special Projects Coordinator, provided a summary of the material of record. Mayor Armenta invited public comment. The following members of the audience addressed the City Council: Jay Shery, speaking on behalf of the Culver City Car Show, urged the City Council to support the continuation of the funding for the Culver City Car Show in-kind services; he discussed timing of the Notice of Funding Availability (NOFA) proposal; expressed concern with the mandatory annual 20% reduction in costs; discussed the benefits the Car Show provides to the City; and he asked that funding be continued. Mike Snell, Culver City Exchange Club President, discussed benefits of the Car Show; stated that the Car Show was put on by local volunteers; discussed the Pancake Breakfast sponsored by the Fire Department which is held the same day as the Car Show; noted that success could not be measured in dollars and cents; and he pointed out that the event raises money that is donated back to the City. Steve Rose, Culver City Chamber of Commerce President, praised the proposal; discussed criteria for eligibility; felt that the proposal posed a complete change to the system; and he suggested looking at other events being funded in support of economic development. Ela Valladares, Deputy City Clerk, read written comments ATTACHMENT 1 12Item J-1 (continued) submitted by: Karlo Silbiger Discussion ensued between the City Council and staff regarding the need for structure; consideration of what each event brings to the City; in-kind costs, actual costs and labor costs; reductions to services provided by staff; the difficulty of quantifying in-kind services; whether the non-profit donates money back to the City; non-profits vs. for-profits; criteria for eligibility; providing sponsorship dollars to as many worthy groups as possible; the reduction of sponsorship dollars over time to those groups who receive it year after year; and motivation for the groups to become self-sufficient. Further discussion continued regarding payments and the timing of City billing; the NOFA panel; staff time required; the value of the volunteer time; the budgetary analysis; Agency sponsored events versus other events in the City; concern that the policy proposal is based too much on an arts model rather than an economic development model; the importance of spurring economic activity in the City; the difference between arts events and economic development events; how efficient a group may be at doing something balanced with which events are valuable to the City; the 10% limit; annual consideration; the performing arts grant program; promotional ties-ins with the City; the value of media exposure and publicity; and developing new audiences. Discussion continued regarding looking at events from an economic development standpoint; quantification; budgeting a certain dollar amount; feasibility of grandfathering organizations; total cost of each event and percentages of the total; concern with damaging already successful events; comparing guidelines with current practices; a desire for guidelines; staff agreement to provide additional information; events that become Culver City events; and other events requesting assistance. o0o ATTACHMENT 1 13ATTACHMENT 1 14ATTACHMENT 1 15ATTACHMENT 1 16ATTACHMENT 1 17ATTACHMENT 1 18ATTACHMENT 1 19ATTACHMENT 1 20ATTACHMENT 1 21ATTACHMENT 1 22ATTACHMENT 1 23 MEETING DATE: September 13, 2010 AGENDA ITEM: Discussion of a Policy Related to Special Event Sponsorship and Financial Support of City- and Agency-Sponsored Events and Direction to Staff. ATTACHMENTS Pages 1. Definition of “Sponsored event” as outlined in 1-5 City Council Policy Statement 2008-01 ATTACHMENT 1 24ATTACHMENT 1 25ATTACHMENT 1 26ATTACHMENT 1 27ATTACHMENT 1 28ATTACHMENT 1 29