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CC - CONSENT ITEM: (1) Award of Special Event Grants in the Aggregate Amount of $147,075 for the Fiscal Year 2024/2025 and Designation of such Events as City Sponsored as Recommended by the Special Events Grant Program City Council Ad Hoc Subcommittee; (2) Authorization of $8,925 in Contingency Funding for Special Event Liability Insurance and Off-Cycle Event Support; and, (3) Authorization to the City Manager to Administratively Approve Applicable City Permits and Licenses Needed to Conduct the Events.
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Meeting Date: June 10, 2024
Contact Person/Dept.: Edgar Varela / Office of Economic and Cultural Development
Phone Number: (310) 253-5752
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/06/24); Special Event Grant Applicants (05/28/24)
Department Approval: Jesse Mays, Assistant City Manager (05/22/2024)
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RECOMMENDATION
Staff recommends the City Council (1) award special event grants in the aggregate amount of $147,075 for Fiscal Year 2024/2025 and designation of such events as City sponsored, as recommended by the Special Events Grant Program City Council Ad Hoc Subcommittee; (2) authorize $8,925 in contingency for special event liability insurance and off-cycle event support; and (3) authorize the City Manager to administratively approve applicable City permits and licenses needed to conduct the events.
BACKGROUND
The Special Event Grant Program (the “Program”) is set forth in City Council Policy 2502 (the “Policy”) (Attachment 1). The purpose of the Program is to provide greater fiscal transparency, improve budget reliability, and create a centralized process for City Sponsorship requests. Grant awards are intended to be used toward City permits and staffing services required for the event, unless otherwise requested.
In February 2024, the City announced the annual call for special event grant applications for Fiscal Year 2024/2025. Events requiring funding between July 1, 2024, and June 30, 2025, were eligible to apply for the annual funding cycle. A mandatory pre-application meeting was held on February 2nd and applications were due on March 20th.
DISCUSSION
Program Overview
The Special Events Grant Program Policy outlines two event types:
• Community/Charitable Events serve or benefit locally based organizations and causes and/or provide recreational, cultural and/or social benefits to Culver City residents.
• Signature Events are large-scale events that promote Culver City regionally, attract visitors, provide measurable economic benefits to the City and enhance the quality of life within Culver City with recreational, cultural, social and/or educational activities of interest to the community.
In order to track the types of events supported and the level of support provided over time, Section 5.D of the Policy outlines the below event criteria and funding:
• Community/Charitable Event Grants:
o Tier 1 (C1): $100 - $2,500
o Tier 2 (C2): $2,501 - $7,500
o Tier 3 (C3): $7,501 - $15,000 +
• Signature Event Grants:
o Tier 1 (S1): $1,000 - $10,000
o Tier 2 (S2): $10,001 - $25,000
o Tier 3 (S3): $25,001+
The Program requires that City-sponsored events also meet the criteria set forth in Culver City Municipal Code (CCMC) Section 17.330.040.B.7.b.ii. This includes confirming that the City 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 thereof.
Fiscal Year 2023/2024 Special Events Grant Program Ad Hoc Subcommittee Recommendations
On May 15, 2024, the members of the Special Events Grant Program Ad Hoc Subcommittee (Vice Mayor O’Brien and Council Member Puza) (“Subcommittee”) reviewed and evaluated the Fiscal Year 2024/2025 special event grant applications. The Subcommittee recommends awarding $147,075 in grants and City-sponsorship designation for the following 20 events beginning in July 2024:
A detailed summary of the applications is included in Attachment 2. All grantees must pay all applicable taxes/assessments (including district assessments) and meet all other obligations as specified in the event agreement, including but not limited to, obtaining appropriate business licensing, event permitting, and operating in compliance with all City-established schedules as a condition of the grant. If an approved event cannot be produced as indicated due to venue or other organizer issues, the grant award may be forfeited unless modifications are approved by the Subcommittee.
There were a few events that The Subcommittee did not recommend funding for at this time due to budget limitations, including a request from the Exchange Club for a Fourth of July Family Picnic event in Bill Botts Park ($20,000). Given the recent reallocation of Independence Day funding for a drone show in Downtown Culver City, the recommendation was to support that event as the community’s 4th of July celebration. The Subcommittee also considered the numerous events/block parties that have traditionally occurred during the daytime in various neighborhoods and the high use of public parks by City residents for holiday gatherings/picnics.
Contingency for Special Event Liability Insurance and Off-Cycle Event Support
The recommended contingency amount for special event liability insurance and off-cycle event support for the Fiscal Year 2024/2025 program cycle is $8,925.
Under certain circumstances, the City of Culver City must take out a supplemental special event liability insurance policy. Typically, Signature Events are required to be covered by these one-time policies. Factors that are considered when calculating the cost of the policy may include, but are not limited to, whether the event is being held on public or private property, estimated total attendance, estimated daily attendance, and/or if alcohol will be served at the event. In the past, the average special event liability insurance cost has been $750 per event.
The Ad Hoc Subcommittee also recommends maintaining a small contingency to allow the City to consider limited off-cycle event sponsorship requests. If the City Council wishes, however, to allocate additional funding to this contingency, staff can research potential funding options as needed.
In-Kind Staff Costs
Typically, Special Event Grant Liaisons are management-level staff and their time is not calculated in the proposed award. However, their time may be applied for purposes of determining whether an event meets the $1,000 threshold for City-sponsorship (as required by the Special Events Grant Program Policy) relative to coordination, marketing and promotion of the event.
Administrative Approval of City Permits and Licenses
Staff recommends the City Council authorize the City Manager to administratively approve related permits and licenses needed to conduct the events (i.e., beer garden, street closures, etc.), provided such permits and licenses are consistent with the scope of the event approved and as set forth in the grant application.
Several events have also requested the use of City-owned property and/or equipment which will require a license agreement. Appropriate insurance and endorsements will also be required by the City’s Risk Management Division.
FISCAL ANALYSIS
The Proposed Budget for Fiscal Year 2024/2025 includes $92,000 for the Special Event Grant Program with a $30,000 contingency in Account No. 10116100.517560 (Non-Departmental - Special Event Grants), totaling $122,000 available for grant awards. The Budget also allocates $34,000 for an Independence Day Celebration. The proposed grant awards for Fiscal Year 2024/2025 include an allocation for a Downtown Independence Day celebration in July 2025 in the amount of $30,000. Staff recommends that the City Council award $147,075 in grants, which includes both the $30,000 contingency and $34,000 Independence Day allocation. The remaining $8,925 would be set-aside for contingency relative to special event liability insurance and off-cycle event sponsorship.
ATTACHMENTS
1. 2023-05-08 - ATT 1 Special Events Grant Program Policy - Resolution 2017-R006
2. 2023-05-08- ATT 2 Special Events Grant Program Applicants Detailed Breakdown
MOTIONS
That the City Council:
1. Award $147,075 in grants and designate 20 events as City-sponsored through the Fiscal Year 2024/2025 Special Events Grant Program; and
2. Authorize up to $8,925 in contingency for special event liability insurance and off-cycle event support; and
3. Authorize the City Manager to administratively approve applicable
City permits and licenses needed to conduct the events, provided such permits and licenses are consistent with the scope of the event as set forth in the grant application.