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 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. 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; 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.
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.
MEETING DATE: December 6, 2010
AGENDA ITEM: Further Discussions Regarding a Policy Related to
Special Event Sponsorship and Financial Support of
City- and Agency-Sponsored Events.
ATTACHMENTS
Pages
1. Definition of “Sponsored event” as outlined in 1-5
City Council Policy Statement 2008-01
2. Event Sponsorship Staff Report from 6-13
September 13, 2010 with an Excerpt from the
Minutes of the Meeting of September 13, 2010.
ATTACHMENT 1
12345 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 2
6 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
7 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
8 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
9 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.
10 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.
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
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
13