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.
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 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 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 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.
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.
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
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