Loading...
HomeMy WebLinkAbout11 - Special Events Administrative PolicyprEVUVpR CITY OF NEVI/PORT BEACH �,FOaar City Council Staff Report Agenda Item No. 11 March 22, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FRONT: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager APPROVED: TITLE: Special Events Administrative Policy ABSTRACT: Despite its current budget challenges, the City of Newport Beach understands the important role that special events play in creating a sense of community, attracting visitors, supporting local business and assisting numerous civic and charitable causes throughout the community. The City staff is recommending a new administrative process that would continue to support these events while helping the City to contain costs. RECOMMENDATION: 1. Discuss and provide additional direction on a revised administrative process for handling requests for special event support. 2. Direct staff to implement modified hourly rates for staff support to community events. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: Background The City of Newport Beach annually receives dozens of requests for financial or in -kind assistance from the organizers of special events held within the community. For a number of years, the City helped to fulfill these needs through a variety of means including Council- approved grants, fee waivers, and in -kind assistance such as loaning equipment or having City staff accomplish certain tasks (i.e., trash removal, setting up Special Events Administrative Policy March 22, 2011 Page 2 barricades, etc.). These means were not fully described in any administrative, Council, or code - related process. When the economic downturn caused a decline in City revenues in late 2009, there was an immediate need to reduce costs in order to close an $8 million gap in the City's General Fund budget. Financial and in -kind support for community events was one of many areas identified for potential cost savings as staff research found that more than $400,000 of in -kind and cash support was being spent on events each year. Faced with other pending financial challenges — including capital needs and increases in pension and benefit costs — the City has embarked upon a plan to further reduce its operating expenses on a long -term basis. In 2010, the Newport Beach City Council worked with City staff to identify an improved administrative process for supporting community events that would reduce costs for both the City and community event organizers. (An administrative process is one followed by the City Manager and administrative team consistent with the City Charter and Municipal Code — it is not a formal Council policy.) It was equally important to the Council that the City help maintain the viability of these events as they are a valued aspect of community life in Newport Beach and many events support a number of civic and charitable organizations. Realizing that the total amount of funding allocated for event support would be reduced, the Council wanted to be sure that the City followed a cohesive and open process that would give all interested organizations notice and the ability to participate, if desired. Community event organizers were notified in summer 2010 that changes were coming for the 2011 calendar year. Staff first addressed the need to reduce costs and made several immediate changes to the way in which requests for assistance are handled by the City. Rather than continuing with its decentralized, past practice of allowing each department to respond to requests independently, all requests for assistance were funneled through the City Manager's Office. The amount of funding allocated for event support was also reduced. This was achieved by reducing some of the grants awarded by the Council and by strictly limiting fee and cost waivers. Event - related expenditures were reduced by approximately $100,000 as a result of these changes. Proposed Administrative Process Next, the staff researched alternatives for improving the event support process. The proposed alternative is very similar to the process followed for the annual Community Development Block Grant awards. If approved by the Council, there would be a call for applications, review by a committee of community and business representatives, a proposed amount of funding identified in the following fiscal year budget that would be allocated among the qualifying events, recommended funding levels for each event, and Special Events Administrative Policy March 22, 2011 Page 3 then formal review and approval or amendment by the City Council. The proposed process would be conducted in concert with the City's annual budget development cycle so that the Council- approved event funding is integrated into the new fiscal year General Fund budget. The process timeline would be as follows: 1. Call for applications. The City would contact the organizers of the previous year's events via mail and e-mail. In addition, staff would announce the commencement of the process through news releases, social media, the City website, e- blasts, and other communication methods. The application, selection criteria and instructions would be available on the City website and at City Hall. 2. Due Date. All applications would be due by the same date and time. 3. Special Events Advisory Committee (SEAC) Review. The SEAC would review and rate each application based upon the event's ability to fulfill the criteria specified by the City. This Council- appointed committee is comprised of business representatives and community members that have expertise in special events, marketing or fundraising. The City would rely on the members' proficiencies in these areas to help determine the events most worthy of receiving City support. (Please see Attachment A for the proposed evaluation criteria.) 4. Funding recommendations assigned to each qualifying event. Next, the SEAC's list would be passed to a small committee of City staff members (comprised of representatives of the City's Recreation & Senior Services Dept., Administrative Services Dept., and the City Manager's Office). The City Manager and Administrative Services Director would provide the staff committee with the amount of funding available - for all events' support - proposed for the next fiscal year budget. The staff committee would then be tasked with assigning recommended funding levels to each of the qualifying events. 5. City Council Review. The committee would forward the SEAC's list, now with recommended funding assigned, to the City Manager to place on a Council agenda. The Council would be provided a package of information — from applications to the proposed event list and funding — to review, discuss, amend (if desired) and approve at a regular Council meeting. As with any project or program, Council would have the ability to consider requests from first -time events that surface later in the fiscal year and assign funding, if available. 6. Signature for Payment. Upon approval by the City Council, applicants would be asked to sign their special event application to pledge that they understand and acknowledge the proposed cost of their event, and that they will be responsible for the full cost of the event less any agreed -upon subsidy or grant by the Council. .a Special Events Administrative Policy March 22, 2011 Page 4 A proposed timeline for 2011 is included as Attachment B. Staff is recommending that Council approve the proposed administrative process for several reasons: • There would be a line item in the General Fund budget so that all involved would know how much funding is available and how that money would be allocated. • It would establish a clear and equitable process where the selection criteria are known by all participants. • It would provide an opportunity for all interested event organizers to apply for a share of that budget allocation. • It would provide a public process in which the community can participate or at least be aware of how the money is being allocated. Modified Hourly Rates While looking at ways to improve the event support process, staff also sought to address a concern raised by several organizations about the hourly rate for City staff time charged to events that require assistance by the Police Department and other City departments. While it is the City Council's adopted policy to fully recover costs, several Council members expressed a desire for staff to review these rates, particularly the rates being charged for Police officers as those tend to be the staff members most often needed to assist events. The City Manager and Administrative Services Director are recommending the City set a rate for special events that would reflect staff time and benefits, but not incorporate the overhead typically included in full cost recovery rate. (The proposed rates are included as Attachment C.) If approved, these modified rates would result in cost - savings to the event organizers while helping to ensure that the appropriate amount of City staffing (Police, Fire, etc.) is assigned. Should the Council agree with the proposed administrative process and hourly rate changes, staff would work quickly to implement them in time to have the event support approved in the FY 12 budget. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQK) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) q Special Events Administrative Policy March 22, 2011 Page 5 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). A letter was mailed to all event organizers that received City support in 2010 informing them of the proposed process changes. In addition, staff from the City Manager's Office held an informational meeting in the Council Chambers on Friday, March 18 to explain the proposed process to interested parties and respond to any questions or concerns that event organizers may have. Submitted by: Dave Kiff L/% City Manager Attachments: A. Proposed Criteria for Special Event Advisory Committee Event Evaluation B. Proposed 2011 Timeline C. Recommended Modified Hourly Rates 61 ATTACHMENT A 2011 CITY OF NEWPORT BEACH SPECIAL EVENT SUPPORT Evaluation Criteria The following event features and factors will be considered by the Special Events Advisory Committee as each application is evaluated. 1. The event should advance the City of Newport Beach as an exciting place to live, play, learn, work, and visit. 2. The event should give Newport Beach residents and businesses a sense of civic pride and ownership. 3. The event should increase the number of people who would normally come into the city at that time thereby providing potential benefit to local businesses. Events that bring in new money and result in people staying overnight in Newport Beach are highly desirable. 4. The City's support must be used for implementation of an actual event (i.e. execution, not planning). 5. The City's support should represent no more than 25% of the total event budget. Volunteer hours may not be counted toward the total event budget, but the value of in -kind goods and services may be counted. 6. The request for City support must include a list of other City entities or groups and private sponsors from whom the applicant is seeking financial support. 7. The event need not always be free of charge, but should be accessible to the community /public. 8. The Applicant must demonstrate the ability to produce and market a well - planned, safe event. 9. The Applicant must demonstrate strong financial management and effective management controls, including cost - effectiveness. Successful applicants must agree to provide the event's financial statements and allow the City to conduct its own review, if desired. 10. The event should benefit a Newport Beach or Orange County-based charitable organization. Draft Evaluation Criteria, Pg. 1 I Summary of the Application (Requirements Each funding request must include a completed City application form. Attached to the application form must be: a. a description of the event, b. a benefits statement explaining how the event meets the City support criteria, c. an operational plan for the event, including schedule, d. a projected budget, including revenue and expenses, for the entire event, e. a sponsorship proposal to the City, and f. data on potential economic impact of the event, g. a description of your organization including purpose, history, type of organization (non - profit, trust, corporation, etc). h. the name, mission, contact information of any non - profit organization (s) that will benefit from the event. Additional Information o City support will be awarded for one year only. Event organizers must apply annually. o Successful applicants must obtain all required permits, insurance, and security /police support as determined through the Special Event Application process for the event and are responsible for all related costs. o Event organizers must submit a post event evaluation not later than ninety (90) days following the event. o The event/sponsoring organization must be in good standing on all previous City requirements and invoices. The City's support is a sponsorship, not a grant, and Newport Beach is to be treated as any other commercial sponsor in terms of recognition and benefits. The City reserves the right to negotiate levels of recognition /benefits. Draft Evaluation Criteria, Pg. 2 ATTACHMENT B Proposed 2011 Timeline* Special Event Support Funding Application & Award Process (March 23 Applications and instructions available on the City Website - (www.newport beachca.gov) and through its Recreation and Senior Services Department. April 'I5 Applications due no later than April 15 at 5 p.m. Late applications will not be accepted. Late April - early May Funding requests will be reviewed and ranked (based upon how closely the event meets the City's criteria) by the Special Events Advisory Committee. Staff committee will recommend funding levels for each qualifying event. Late May — June The full list of funding requests, ratings and rankings will be presented to the City Council during its annual budget approval workshops. The item will be placed on a City Council agenda for review, discussion, adoption and / or amendment. *Pending Council approval on March 22 • Proposed Special Event Billing Rates Police Current Change To Officer 172.26 Hourly 74.72 Hourly Sergeant 226.18 Hourly 83.06 Hourly Lieutenant 250.72 Hourly 97.58 Hourly Parking Control -CSO 103.09 Hourly 43.97 Hourly Police Dispatch 124.16 Hourly 50.85 Hourly Police Cadet 12.00 Hourly 12.68 Hourly Fire /Lifeguards Fire Captain 188.07 Hourly 54.80 Hourly Fire Engineer 154.32 Hourly 46.67 Hourly Paramedic 151.63 Hourly 50.86 Hourly Fire Battalion Chief 239.33 Hourly 72.66 Hourly Lifeguards 73.05 Hourly 47.49 Hourly Public Works Sr Civil Engineer 206.70 Hourly 87.39 Hourly Jr Civil Engineer 158.16 Hourly 65.19 Hourly W ATTACHMENT C