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CC - CONSENT ITEM: (1) Award of $89,352 in Grants and Designation of 15 Events as City-Sponsored through the Fiscal Year 2023/2024 Special Events Grant Program as Recommended by the Fiscal Year 2023/2024 Special Events Grant Program City Council Ad Hoc Subcommittee; (2) Authorization of up to $2,648 in Contingency for Special Event Liability Insurance and Off-Cycle Event Support; (3) Authorization to the City Manager to Administratively Approve Applicable City Permits and Licenses Needed to Conduct the Events; and (4) Approval of the Ad Hoc Subcommittee’s Recommendation to Increase the Total Allocation for the Special Events Grant Program in the Fiscal Year 2023/2024 Budget by $30,000 to Increase the Remaining Contingency for Off Cycle Grant Requests and Related Costs.
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Meeting Date: May 8, 2023
Contact Person/Dept.: Francisca Castillo/Parks, Recreation and Community Services
Phone Number: (310) 253-6645
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/03/2023)
Department Approval: Armando Abrego, PRCS Director (04/26/2023)
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RECOMMENDATION
Staff recommends the City Council (1) award $89,352 in grants and designate 15 events as City-sponsored through the Fiscal Year 2023/2024 Special Events Grant Program, as recommended by the Fiscal Year 2023/2024 Special Events Grant Program City Council Ad Hoc Subcommittee (Subcommittee); (2) authorize up to $2,648 in contingency for special event liability insurance and off-cycle event support; (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 (such authority shall not apply to the required Special Event Permit, which shall continue to be issued in the usual course of business); and (4) approve the Subcommittee’s recommendation to increase the total allocation for the Special Events Grant Program in the Fiscal Year 2023/2024 Budget by $30,000 to increase the remaining contingency for off cycle special event grant requests and related costs.
BACKGROUND
In January 2017, at the recommendation of the Finance Advisory Committee (FAC), the City Council adopted a Special Event Grant Program Policy (Attachment 1; referred to hereafter as “Program”). The purpose of this Program is to provide a system of greater fiscal transparency and improve budget reliability, while allowing event proposers access to a centralized process for initiating requests with the City for funding and sponsorship. Through the Program, eligible special events can either be classified as Community/Charitable Events that have a recreational, cultural and/or social benefit to Culver City residents or Signature Events that are large scale events that regionally promote and provide measurable economic benefits to the City. Grant awards are intended to be used toward City permits and direct staffing services needed for conducting the event.
Fiscal Year 2023/2024 Special Events Grant Program Call for Applications
On January 31, 2023, the City distributed a press release announcing the Fiscal Year 2023/2024 Special Events Grant Program Call for Applications and the mandatory online Pre-Application Meeting. The announcement was shared through various social media channels. Parks, Recreation and Community Services (PRCS) Department staff also conducted outreach with event applicants that had previously contacted the City. Events requiring funding between July 1, 2023, and June 30, 2024, were eligible to apply for the Program’s annual funding cycle.
The virtual mandatory meeting was held on Thursday, February 16, 2023, from 7 PM to 8:30 PM. The Fiscal Year 2023/2024 Special Events Grant Program application period opened on Monday, February 20, 2023. The deadline to apply was 11:59 PM on Sunday, March 12, 2023. To be considered for grant funding, applicants registered online to attend the Pre-Application Meeting with various City staff, to assist in determining appropriate fees and charges required to host the event in the City. Following this meeting, applicants finalized the process through an electronic application available via an email sent to all attendees. At the time of application evaluation, 19 events completed the Fiscal Year 2023/2024 Special Event Grant Program application process. In Fiscal Year 2022/2023, only 10 events completed the application process.
DISCUSSION
Program Overview
The Special Events Grant Program Policy 2017-R006 outlines two event types: (1) Community/Charitable Events and (2) Signature Events. 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 Special Events Grant Program Policy 2017-R006 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+
To become City-sponsored, events need to be specifically designated by the City Council and meet the criteria set forth in Culver City Municipal Code (CCMC) Section17.330.040.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.
Grant awards are enlisted as maximum amounts that are offered in the form of fee credits to be used to cover fees associated with executing a special event in Culver City, including but not limited to permits, equipment use, and facility rental. Credits may be further used towards administrative and/or staff associated costs, subsequent to application towards permits/fees. Additionally, events may use grants towards banner installation costs.
Fiscal Year 2023/2024 Special Events Grant Program Ad Hoc Subcommittee Recommendations
On April 20, 2023, the members of the Special Events Grant Program Ad Hoc Subcommittee, Vice Mayor McMorrin and Council Member O’Brien, met with staff to review and evaluate the applications. The Subcommittee is recommending $89,352 in grants and City-sponsorship designation for the following 19 events:
More detail regarding these events may be found in Attachment 2, which provides a summary of each application. It should be noted that the recommended events may not yet have all the required approvals needed from third parties (i.e., private property owners) to conduct their respective events. In addition, there is the possibility that, as the event planning process moves forward, circumstances could change and not all the events may ultimately be held. If that is the case, the grant recipient would forfeit their grant award.
All awardees 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.
Contingency for Special Event Liability Insurance and Off-Cycle Event Support
With the recommended award amounts for Fiscal Year 2023/2024 totaling $89,352, the contingency amount for special event liability insurance and off-cycle event support for the Fiscal Year 2023/2024 program cycle is $2,648. In the past, the contingency amount was based on staff estimates, as detailed below.
Special Event Liability Insurance: Under certain circumstances, the City of Culver City must take out a supplemental special event liability insurance policy. In past years, this expense has been paid from various City accounts and was not tracked as part of the Special Events Grant Program. It was the Subcommittee’s wish in Fiscal Year 2022/2023 that these expenses become transparent and be tracked as part of the Program.
Typically, Signature Events are required to be covered by these one-time policies. The cost of the policy is estimated by an independent insurance company and the insurance is provided by companies that specialize in this type of liability insurance. 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.
Off-Cycle Event Support: Including a contingency amount for off-cycle event support is recommended by the members of the Subcommittee. Although one of the primary goals of the Program is to limit the number of off-cycle event support requests, the Subcommittee believes it would be practical to make allowances for them.
For Fiscal Year 2023/2024, the members of the Subcommittee are recommending awarding $89,352 in grants and designating 15 events as City-Sponsored. Therefore, the contingency amount is $2,648 for supplemental special event liability insurance and for off-cycle event support.
Increase Program Budget: It is the Subcommittee’s recommendation to increase the allocation in the Fiscal Year 2023/2024 Budget by $30,000 for the Special Event Grant Program to have sufficient contingency to cover supplemental special event liability insurance and potential off-cycle events. This additional funding will raise the contingency to a similar amount as that in the Fiscal Year 2022/2023 Adopted Budget.
In-Kind Staff Costs
In past staff reports on the Special Events Grant Program, in-kind staff costs (aka soft costs) for administrative or marketing purposes were given a monetary value. However, these costs are not tracked as an addition to the grant, so they have been excluded from this year’s report. There are staff liaisons who work with each of the groups whose events are supported by the Program. These liaisons are typically management-level staff. The duties related to the Special Events Grant Program are subsumed as part of their regular duties. Currently, staff costs are only taken into consideration when nominal amounts are added to requests that need a small increase in order to meet the $1,000 threshold for City-sponsorship (as required by the Special Events Grant Program Policy).
Administrative Approval of City Permits and Licenses
As in past years, to streamline the planning and coordination of events, staff recommends the City Council authorize the City Manager to administratively approve related 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. Such administrative authority would not include the Special Events Permit, which would continue to be issued in the usual course of business.
Additionally, some of the event organizers intend to use City-owned property and/or equipment for their events which will require a license agreement. Other events have identified within their special event applications the need for alcohol use permits in conjunction with their request for designation as City-sponsored events. Given that the award of grant funds to the event organizers is an implicit approval of these events in concept, and to eliminate the need to return to City Council for approval of the related permits and licenses, staff recommends the City Council delegate this function to the City Manager.
FISCAL ANALYSIS
Currently, the Proposed Fiscal Year 2023/2024 Budget includes $92,000 for the Special Event Grant Program (10116100.517560). Should the City Council wish to award $89,352 in grants and authorize up to $2,648 in contingency for special event liability insurance and off-cycle event support, the amount currently budgeted in this account will be sufficient. The Subcommittee is recommending this allocation in the Fiscal Year 2023/2024 Budget for this account be raised an additional $30,000 bringing the total amount to $122,000 and allowing the contingency amount to be $32,648.
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 $89,352 in grants and designate 15 events as City-sponsored through the Fiscal Year 2023/2024 Special Events Grant Program;
2. Authorize up to $2,648 in contingency for special event liability insurance and off-cycle event support;
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 (such authority shall not apply to the required Special Event Permit, which shall continue to be issued in the usual course of business); and,
4. Approve the Ad Hoc Subcommittee’s recommendation to increase the total allocation in the Fiscal Year 2023/2024 Budget for the Special Events Grant Program by $30,000 to increase the remaining contingency for off cycle grant requests and related costs.