HomeMy WebLinkAbout13 - Special Event Support Program FY 17 Funding RecommendationsQ �EwPpRr
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z NEWPORT BEACH
<,FoP City Council Staff Report
June 28, 2016
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager - 949-644-3001,
dkiff@newportbeachca.gov
PREPARED BY: Tara Finnigan, Assistant to the City Manager,
tfinnigan@newportbeachca.gov
PHONE: 949-644-3035
TITLE: Special Event Support Program FY 17 Funding Recommendations
ABSTRACT:
The City of Newport Beach Special Event Support Program provides financial
assistance to Newport Beach based community events. Staff is submitting
recommendations for the City Council's consideration that, if approved, would support
18 Community and Charitable events for a total of $68,968 and five Signature events for
a total of $214,000.
RECOMMENDATIONS:
a) Determine that the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines
because it will not result in a physical change to the environment, directly or
indirectly;
b) Approve the Special Event Support recommendations for Fiscal Year 2016-2017;
c) Authorize staff to execute one-year grant agreements with event organizers for the
Komen Orange County Race for the Cure, Newport Beach Restaurant Week and the
Newport Beach Wine and Food Festival;
d) Authorize staff to enter a three-year grant agreement for $135,000 per year, for a
total of $405,000, with the organizers of the Newport Beach Film Festival;
e) Approve Budget Amendment No. 17BA-001 to transfer $8,968 from account
01020202-841046 to account 01005005-841046;
f) Approve waiving the Special Event Permit Fees and any City site rental fees for the
Art in the Park, Library Live and the Bunnies & Books Kids Festival events; and
g) Approve changes to the Special Event Support Program, as detailed in the staff
report.
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Special Event Support Program FY 17 Funding Recommendations
June 28, 2016
Page 2
FUNDING REQUIREMENTS:
Budget Includes Sufficient Funding
The adopted FY 2016-2017 General Fund budget includes $255,000 (01020202-
841046, City Manager's Office/Economic Development) in support for Signature Events
and $60,000 (01005005-841046, City Council) for the Community and Charitable event
support. Staff's recommendations for Community and Charitable event support totals
$68,968, exceeding the budgeted amount by $8,968 while the Signature event funding
recommendations total $214,000, $41,000 less than the budgeted amount. Therefore, if
approved as recommended, staff is requesting approval of a budget transfer of $8,968
from account 01020202-841046 to account 01005005-841046.
DISCUSSION:
Background
Since 2010, the City of Newport Beach (City) has followed an administrative process for
allocating special event support. The process is designed to provide transparency and
equity in how the funding is allocated, comply with the Newport Beach Municipal Code,
and help contain City costs, while continuing to support local events that provide
charitable fundraising opportunities, encourage community engagement, and/or foster
economic development. In 2015, the City Council approved changes to the
administrative process that better define the types of events the City will support and
provide eligibility, qualification and evaluation criteria for the program.
The City's Special Event Support Program provides grants in two categories:
1. Community and Charitable Events — Events that serve or benefit locally based
organizations and causes and/or provide recreational, cultural, social benefits to
Newport Beach residents. Newport Beach based organizations and events that
serve the Newport Beach community specifically, receive priority in funding.
Grants are in the form of a credit toward City fees. If an awardee incurs costs
(fees) higher than the grant award, they owe the City the difference. If the
awardee's costs are lower than was projected during the grant award process,
the City keeps the difference.
2. Signature Events — Large-scale events, based in Newport Beach that promote
Newport Beach regionally, attract visitors and provide measurable, economic
benefits to the City of Newport Beach. Signature event grant recipients are
required to enter into a City Sponsorship Agreement and agree with the City's
terms and conditions. All agreements include right to audit language and include
measurable objectives and performance measures for evaluating the event's
marketing and economic impact.
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Special Event Support Program FY 17 Funding Recommendations
June 28, 2016
Page 3
Grant Application Process
The City opened the application submission period on April 4, 2016 and advertised the
program in the Daily Pilot, promoted it on the City's website and social media channels,
emailed past applicants and others that had expressed an interest in the program, and
issued a news release. The deadline for applications was Monday, May 2, 2016 at 4
p.m. Thirty (30) applications were received by the submission deadline. The City
received 25 applications under the Community and Charitable event category and five
(5) were received under the Signature event category. The applications are available for
the City Council's and the public's review at the City Clerk's Office at Newport Beach
City Hall, 100 Civic Center Drive, Bay 2E.
Application Review and Evaluation
A staff committee comprised of Sean Levin and Matt Dingwall from the Recreation and
Senior Services Department and Tara Finnigan and Mary Locey from the City
Manager's Office reviewed and evaluated the applications received. The applications
were evaluated based upon how well each fit the program's eligibility, qualification and
evaluation criteria. (Attachment A)
Determining Recommended Funding
Community and Charitable event grants are to be awarded at set, not -to -exceed levels
that correlate to the amount of City fees the applicant is expected pay. (For events not
required to pay City fees, funding support can be assigned at a level between $100 and
$15,000.) To assign funding recommendations, staff used historical data from previous
years' events or estimated what an event would pay in City fees. The committee
incorporated the information from the application evaluation and assigned funding
recommendations accordingly.
Signature events grants are to be awarded at set, not -to -exceed levels based upon an
evaluation of the event budget, an estimate of related City fees, and the estimated
economic benefits to the City of having the event based in Newport Beach. Staff took
these elements into consideration and assigned funding recommendations.
In order to support as many eligible events as possible with the funding approved in
each fiscal year budget, staff also considered the history, if any, of City financial support
for each applicant. A number of events received City support in three or more of the last
five fiscal years and/or have received large grants ($5,000 or more) within the five-year
period. More than half of the events recommended for grant funding fell within this
"repeat recipients" category, including all five of the Signature events.
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Special Event Support Program FY 17 Funding Recommendations
June 28, 2016
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Recommendations
Staff is recommending reducing the grant amounts of repeat grant recipients in the
Signature event grant category 10 percent or more where possible. The Christmas Boat
Parade is exempted because the City is in a four-year funding agreement with the
Newport Beach Chamber of Commerce that stipulates the City support will be $50,000
for each year of the agreement. The agreement term ends December 31, 2017. The
Komen OC Race for the Cure is also exempted because it was a recipient under the
Community & Charitable event category last year.
Staff is submitting recommendations for the City Council's consideration that, if
approved, would support 18 Community & Charitable events for a total of $68,968 and
five Signature events for a total of $214,000. (See Attachment B for the list of
recommendations.) Of the 23 events recommended for grant funding, five are new to
the process and have not received a City grant within at least the past five fiscal years.
All five of these events fall within the Community and Charitable event category.
In addition, staff is recommending a three-year grant agreement between the City and
the Newport Beach Film Festival. The festival is the community's largest special event
in terms of scale and audience - and the City has been its largest sponsor for the past
15 years. If approved by the Council and agreed to by Newport Beach Film Festival
representatives, the agreement would provide some funding stability for festival
organizers. Staff is proposing a three-year grant agreement in the amount of $135,000
per fiscal year.
Disqualifications, Exceptions or Removals from Consideration
As detailed in Attachment A, three applications were disqualified because the
organization or event did not meet the program criteria. In addition, the Mariners
Independence Day Parade and Celebration application was removed from
consideration because the City is already a long-standing co-sponsor of the event and
there is no permit or other City fees.
Three other applications are for events - Art in the Park, Library Live and the Bunnies &
Books for Kids Festival - sponsored by City support groups. Staff is recommending that
the City Council approve waiving the associated City permit and/or site rental fees for
each of these since event proceeds come back to the City for its programs.
Recommended Changes to the Special Event Support Program
As previously noted, nearly half of the events recommended for grants this year have
been supported by the City in recent years. In order to have the opportunity to support
new or other events in the future, staff is recommending a review of options such as
limiting the number of consecutive years that an organization can receive a City support
grant, or reducing a repeat recipient's grant amount in consecutive years. Should the
Council find that either option has merit; staff requests the ability to work with Council
Members Petros and Peotter to develop and incorporate the funding criteria into the
Special Event Support Program Overview.
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Special Event Support Program FY 17 Funding Recommendations
June 28, 2016
Page 5
Staff would also like the Council to consider amending the program criteria to indicate
that City co-sponsored events that do not have associated City permit or related fees, or
events hosted by City support groups of which the City Council or City Manager has
approved waiving City permit or related fees, do not have to apply for a Special Event
Support grant.
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).
ATTACHMENTS:
Attachment A — FY 17 Special Event Support Program Overview
Attachment B — FY 17 Special Event Support Recommendation and Grant History
Attachment C — Budget Amendment
13-5
ATTACHMENT A
City of Newport Beach
Special Event Support Program
Call for Applications for Events Executed Between July 1, 2016 and June 30,
m 2017.
Overview
The City of Newport Beach (City) recognizes the social and economic benefits associated with
special events. Its Special Event Support Program provides financial support to two categories
of Newport Beach -based events:
Community and Charitable - Serve or benefit locally based organizations and causes
and/or provide recreational, cultural, social benefits to Newport Beach residents.
Newport Beach -based organizations and events that serve the Newport Beach
community specifically, receive priority in funding.
Signature Events — Large-scale events, based in Newport Beach, that promote
Newport Beach regionally, attract visitors, and provide measurable, economic benefits to
the City of Newport Beach. Signature events must demonstrate the following:
o The event does or can attract visitors from throughout Southern California (Los
Angeles, San Diego, Riverside and San Bernardino) and ideally, the
Southwestern United States;
o It must have at least 3,000 participants;
o The event organizers have a strategic, measureable marketing plan and can
immediately produce the plan and metrics from past years (if applicable) upon
City's request; and
o Event organizers must clearly demonstrate how the event will provide
substantive and measureable economic benefits to the City by supporting
tourism, generating room nights, supporting local business, and providing
measurable exposure.
Types of Special Event Support
A. Community and Charitable — Grants will be available at set, not -to -exceed levels that
correlate to the amount of City fees the applicant is expected pay. Successful applicants
will be awarded grants in the form of credits toward their City fees. (The City will no
longer provide cash to grant awardees.) Grants awarded are not intended to cover all of
an event organizers' costs associated with City oversight. If an awardee incurs costs
(fees) higher than the grant award, they will owe the City the difference. If the awardee's
costs are lower than was projected during the grant award process, the City will keep the
difference.
For events that are not required to pay City fees under a Special Event Permit, funding
support may be assigned to an event at a level between $100 and $15,000. The review
of funding will take into account the size and scope of the event and how well it
FY 17 Special Event Support Program Overview Page 1
13-6
otherwise meets the program's evaluation criteria. The City may require an agreement
with grant awardees. All agreements will include right to audit language and that the
organizer submit an event conclusion report, which includes the event's balance sheet
and income statement.
B. Signature Events — Grants will be available at set, not -to -exceed levels based upon an
evaluation of the event budget, the estimate of City fees, and the estimated economic
benefits to the City of having the event based in Newport Beach. The City's financial
support should represent no more than 25 percent of the overall event budget. The City
may enter multi-year agreements with grant awardees. All agreements, whether for one
year or multiple years, will include right to audit language and include measurable
objectives and performance measures for evaluating the event's marketing and
economic impact.
Eligibility Criteria
To be eligible to receive City support, applicants must demonstrate that:
A. All of the Community and Charitable event takes place within Newport Beach. All or a
majority of the Signature event (51 percent of related activities) takes place within
Newport Beach.
B. The event is scheduled to take place between July 1, 2016 and June 30, 2017 and the
exact date(s), time(s) and location within Newport Beach have been determined.
C. The event is not financially dependent on receiving City of Newport Beach support.
D. The event is sponsored, hosted and organized by a Newport Beach or Orange County -
based non-profit organization* or a Newport Beach community or neighborhood
organization*.
E. The applicant has no outstanding debt due to the City of Newport Beach.
F. The event does not need to be free of charge, but should be accessible to the
community / public.
*The City of Newport Beach will give preference to volunteer -based organizations.
Ineligibility
The City will not provide financial support to:
Events that benefit for-profit enterprises
Events that serve a political purpose or are sponsored by political organizations
Event organizers and organizations that have not fulfilled previous City sponsorship or
special event obligations or have an outstanding debt to the City of Newport Beach
Individuals
Invitation -only events - those not open to the general public
FY 17 Special Event Support Program Overview Page 2
13-7
III. Qualification Criteria
To qualify to be considered to receive City special event support, all applications must comply
with the following:
A. Are submitted online, on time and are 100 percent complete. Late, incomplete or
applications that do not fully comply with the instructions will not be considered.
B. Must include a copy of the complete event budget, which clearly states the anticipated
revenues and expenditures. Potential City support should not be listed as a revenue line
item.
C. Must demonstrate strong financial management over the event, including cost
effectiveness.
D. Only one event per application; however, there is no limit to the number of applications
an organization can submit.
IV. Evaluation Criteria
A. Community & Charitable Events
Applications will be reviewed and evaluated based on the following criteria:
1. The event serves, involves, and / or promotes Newport Beach, its residents, schools
and/or businesses.
2. The event directly or indirectly benefits the Newport Beach community by supporting
its schools, cause -related or non-profit organizations; offering educational, cultural or
arts experiences; or providing recreational or social activities.
3. The event benefits a Newport Beach or Orange County -based non-profit
organization or Newport Beach community or neighborhood organization.
B. Signature Events
Applications will be reviewed and evaluated based on the following criteria:
1. The event delivers substantive and measurable economic benefits to the City.*
2. The event organizers utilize strategic and measurable marketing practices in
planning and implementing the event.*
3. The event enhances the quality of life within Newport Beach with cultural, social or
educational activities of interest to the community.
4. The event attracts visitors to Newport Beach from the regional market (Southern
California and ideally, the Southwestern United States).
FY 17 Special Event Support Program Overview Page 3
13-8
5. The event promotes Newport Beach as a highly desirable place to live, visit, work
and recreate.
6. The event directly or indirectly benefits or promotes Newport Beach businesses.
7. The submitted event measurable objectives and performance measures must
demonstrate how the event will provide substantive and measureable economic
benefits to the City.
*Successful applicants must enter into an agreement with the City that will include mutually
agreed upon performance measures for the event. Event organizers will be required to
submit a post -event report indicating how the event met or did not meet the agreed upon
performance measures.
V. Other Requirements:
Successful applicants — under both Community and Charitable and Signature events -
will be expected to follow the City's separate, Special Event Permit Process and submit
all necessary forms, insurance and fees as required. Applications that do not meet the
requirements and are not submitted within the specified deadlines risk forfeiting their City
Special Event support.
Signature Event Recipients Only:
o Signature event grant recipients will be required to enter into an agreement with
the City and consent to the City's terms and conditions. (Applicants can view an
example of a grant agreement at www.newportbeachca.gov/specialevents.)
o The agreement will include mutually agreed upon performance measures for the
event. Event organizers will be required to demonstrate how the event met, or did
not meet, the agreed upon performance measures in a required, post -event
report.
o Signature event grant recipients must agree to provide the event's financial
statements and allow the City to conduct its own review of them, if requested.
VI. Funding Levels
Event Support is categorized into the following three -tiered system:
A. Community Event Grants*
Tier 1 - $100 - $2,500
Tier 2 - $2,501- $7,500
Tier 3 - $7,501- $15,000
FY 17 Special Event Support Program Overview Page 4
13-9
*Based upon City Special Event Permit Fee and estimated or average
related City fees.
B. Signature Event Grants*
Tier 1 - $15,000- $25,000
Tier 2 - $25,001 - $50,000
Tier 3 - $50,001 - $150,000
*Grants provided based on analysis of related City event fees and
economic benefits City will derive from the event.
The purpose of the grants is to provide funding support for qualified events and to
assist with the City fees associated with executing an event in Newport Beach. The
purpose is not to fund the entirety of an event and grant awards may not cover all of
an event's associated City fees.
VII. Applying for a Grant
A. Applications are available online at www.newportbeachca.qov/specialeventgrants
B. This call for applications is for special events that will be held in Newport Beach
between July 1, 2016 and June 30, 2017.
C. The deadline for applications is Monday, May 2, 2016 at 4 p.m.
VIII. Additional Information
The City typically receives more applications and / or requests for event sponsorship
amounts in excess of what it can provide. There is no guarantee that the City will be
able to provide all, part, or any of the financial support requested by each applicant.
Thus, applicants should not make commitments on the expectation of receiving City
support. Recurring events do not automatically receive funding.
All applications received by the deadline will be evaluated, ranked and funding
recommendations made based upon the ranking of the application and the amount of
funding available for supporting Community and Charitable and Signature events in
the City's fiscal year 2016-2017 budget. The recommendations are made based
upon how well the application submitted this award cycle meets the established
criteria (in competition with other applications). The City Council can approve,
amend, or deny any recommendation.
FY 17 Special Event Support Program Overview Page 5
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Attachment B - FY 17 Special Event Support Recommendations and Grant History
13-11
• .
Community & Charitable Event Applicants -serve or benefit locally based organizations and causes and/or provide recreational, cultural, social benefits to residents.
Art in the Park
Newport Beach Arts Foundation
N/A
N/A
$434
$510
Waiver
City Support Group
Balboa Chili Cookoff & Chalk Walk Festival
Balboa Christmas Tree Lighting
Balboa Village Merchants Association
Balboa Village Merchants Association
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$2,000
N/A
N/A
•
Balboa Craft Beer Festival
Balboa Village Merchants Association
N/A
N/A
N/A
N/A
N/A
•
Balboa Island Parade
Balboa Island Improvement Association
$1,200
$1,200
N/A
$3,500
$5,000
• •
Balboa Island Tree Lighting/Snow Day
Balboa Island Tree Lighting
N/A
N/A
N/A
N/A
N/A
..
Bunnies & Books for Kids Festival
Newport Beach Public Library Foundation
N/A
N/A
N/A
N/A
Waiver
•
• •
City Support Group
Corona del Mar Christmas Walk Corona del Mar Chamber $9,000 $6,000 $6,000 $3,500 $3,500
Corona del Mar Sand Castle Contest Newport Beach Chamber of Commerce N/A N/A N/A N/A N/A
Corona del Mar Scenic 5K
Corona del Mar Chamber
N/A
N/A $17,000
$15,000
$15,000
• • •
FY 11 -FY 13: Cit Co -Sponsored Event
Celebrate Sober Saturday
Celebrate Sober Saturday
N/A
N/A
N/A
N/A
N/A
Does not meet program criteria
Field of Honor
Exchange Club of Newport Harbor
N/A
N/A
N/A
$1,000
$1,000
•�•
Fourth of July Parade
Balboa Peninsula Point Association
N/A
N/A
N/A
N/A
N/A
Green on the Green/CERT Expo
Harbor Heritage Run
Newport Beach Chamber of Commerce
Newport Harbor High School PTA
N/A
$2,160
N/A
N/A
N/A
N/A
N/A
N/A
$2,500
$10,000
•
• •••
Independence Day Parade & Celebration
Mariners Elementary School Foundation
N/A
N/A
$1,000
N/A
N/A
City Co -Sponsored Event
Library Live!
NB Public Library Foundation
N/A
N/A
N/A
N/A
N/A
City Support Group
Newport Beach White Party
Golden Rule Charity
N/A
N/A
N/A
N/A
N/A
Does not meet program criteria
Newport Classic Surf Contest
Newport Harbor High School Surf Team
N/A
N/A
N/A
$1,000
$1,000
• i •
Newport Harbor Home & Garden Tour
Newport Harbor Educational Foundation
N/A
N/A
N/A
N/A
$450
Newport -Mesa Spirit Run
Newport -Mesa Spirit Run, Inc.
$14,000
$14,000
$14,000
$14,000
$14,000
•i•
Newport to Ensenada Yacht Race
NOSA
$12,000
$10,000
$10,000
$10,000
$10,000
• • •
Relay for Life
American Cancer Society
$800
$0
N/A
$1,000
$450
IM•
Spyglass Hills Annual Meet N' Greet Picnic
Spyglass Hills
N/A
N/A
N/A
N/A I
N/A
Does not meet program criteria
Wooden Boat Festival
Balboa Yacht Club
I N/A I
N/A
N/A
N/A
N/A
Community & Charitable Events Total
.: .
13-11
Attachment B - FY 17 Special Event Support Recommendations and Grant History
Signature Event Applicants -Large-scale events, based in Newport Beach, that promote Newport Beach regionally, attract visitors, and provide measurable, economic benefits to the City.
Komen OC Race for the Cure OC Affiliate of Susan G. Komen $10,000 1 $10,000 $10,000 $0 $3,500 1 fee
Newport Beach Christmas Boat Parade Newport Beach Chamber of Commerce $30,000 $35,000 $50,000 $50,000 $50,000 1 see
FY 12: $6K Cultural Arts Grant, $90K Event Grant
FY13-FY14: $61K Cultural Arts Grant; $125K Event
Newport Beach Film Festival Newport Beach Film Festival $96,000 $131,000 $131,000 $154,000 $152,750 Grant
FY 15: $4K Cultural Arts Grant, $150K Event Grant
FY 16: $2.75K Cultural Arts Grant; $150K Event
Grant
Newport Beach Restaurant Week NB Restaurant Association BID $34,000 $6,000 $6,000 $16,000 $10,000
Newport Beach Wine and Food Festival NewBe Productions LLC N/A N/A N/A $15,000 $35,000
Signature Events Total
Total Funding
13-12
ATTACHMENT C City ®f Newport Beach
BUDGET AMENDMENT
2016-17
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
Increase Expenditure Appropriations AND
qX Transfer Budget Appropriations
SOURCE:
k from existing budget appropriations
from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
NO, BA- 17BA-001
AMOUNT:J $8,968.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
X No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To transfer expenditure appropriations to provide full funding for the FY 2016-17 Special Event Program.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Obiecl Description
REVENUE ESTIMATES
Org O_b'ect Description
Signed: 4/1
Signed
Signed
pproval. Finance
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$8,968.00
Automatic
$8,968.00
(',A3 -p
Date
Date
__ _ Date 13-13
Description
Org
Number
01020202
City Manager Economic Development Division
Object
Number
841046
Special Department Expense
Org
Number
01005005
City Council
Object
Number
841046
Special Department Expense
Signed: 4/1
Signed
Signed
pproval. Finance
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$8,968.00
Automatic
$8,968.00
(',A3 -p
Date
Date
__ _ Date 13-13