HomeMy WebLinkAbout15 - Special Event Support Program FY 19 Funding RecommendationsPaR m CITY OF
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City Council Staff Report
June 12, 2018
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager - 949-644-3001,
dkiff@newportbeachca.gov
PREPARED BY: Laura Detweiler, Recreation & Senior Services Director,
Idetweiler(a)_newportbeachca.gov
PHONE: 949-644-3157
TITLE: Special Event Support Program FY 19 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 19 Community and
Charitable events for a total of $53,700 and five (5) Signature events for a total of $54,000.
Additionally, two (2) Signature events - the Newport Beach Christmas Boat Parade and
Newport Beach Film Festival, are currently under multi-year agreements totaling
$200,000. Funds and financial assistance for all events total $307,700.
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 2018-2019; and
c) Authorize staff to execute one-year grant agreements with Signature event organizers
for the Komen Orange County Race for the Cure, Hoag Classic, Newport Beach
Restaurant Week, Newport Beach Wine and Food Festival, and the Newport to
Ensenada Yacht Race.
FUNDING REQUIREMENTS:
Sufficient funding is available in the FY 2018-2019 General Fund budget. The 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
Community and Charitable event support. Total event funding budget is $315,000.
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Special Event Support Program FY 19 Funding Recommendations
June 12, 2018
Page 2
DISCUSSION:
Background
The Special Event Grants program as outlined in City Council Policy A-12 Discretionary
Grants (Attachment A) follows an administrative process for allocating special event
support (Attachment B). Grants are intended to allow meritorious community, social or
athletic events to offset some or all of their City fees for their event. 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.
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.
Grant Application Process
The City opened the application submission period on April 6, 2018, 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 April 27, 2018 and 30
applications were received. 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 Laura Detweiler, Sean Levin, Jonathon Harmon and
Matthew Chong from the Recreation & 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. A complete list of the recommended grants
are included as Attachment C.
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Special Event Support Program FY 19 Funding Recommendations
June 12, 2018
Page 3
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. To
assign funding recommendations, staff used historical data from previous years'
events to determine what an event would pay in City fees. The committee
incorporated the information from the application evaluation and assigned funding
recommendations accordingly. The Fiscal Year 19 recommendations for
Community and Charitable events are based solely on the waiver of city fees.
2. 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 that will provide cash grants to cover event expenditures which
may include City fees.
Disqualifications
As shown in Attachment C, staff is not recommending funding for five events under the
Community and Charitable events category. These events did not adequately meet the
program criteria, did not have an event scheduled, and/or does not pay City fees. Thus,
staff did not see a demonstrated need for City financial support.
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). 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 — City Council Policy A-12 Discretionary Grants
Attachment B — FY 19 Special Event Support Program Overview
Attachment C — FY 19 Special Event Grant Funding Recommendations Worksheet
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ATTACHMENT A
DISCRETIONARY GRANTS
It shall be the policy of the City Council that the City of Newport Beach's ("City")
budget specifically allows the City Council to, at any time during the year, direct
revenue towards worthy projects or programs which the City Council deems beneficial
to Newport Beach's resident's quality of life. The City Council notes that it has multiple
tools at its discretion to assist non-profit agencies, community groups, community
events, or enhancement projects within the City. These tools are:
A. Federal Community Development Block Grant (CDBG) Social Service
Funds;
B. Community Programs Grants from the General Fund;
C. Special Event Grants from the General Fund; and
D. The "District Discretionary Grant Account" from the General Fund.
These funds shall be provided for in the following manner:
(CDBG) Social Services funds shall be allocated according to standards set by the
federal government and appropriated at least once each year. The level of funding
offered for social services in Newport Beach shall be based upon federal formulas and
the specific amount of CDBG revenue allocated to the City in any one fiscal year. The
Community Development Department shall administer these funds after City Council
approval of the funds' expenditure.
Community Programs Grants shall be expended from the General Fund in the amount
of $40,000 each fiscal year. The City Manager's Office shall review all requests for
Community Programs Grants and shall forward recommendations for funding to the
City Council for final approval. At the time of the City Manager's presentation of any
Community Programs Grant award proposals to the City Council, the City Manager
shall show which entities, if any, have received funds from the CDBG Social Services
Fund, the District Discretionary Grant Account, or a Special Event Grant during the
same fiscal year.
The City Manager shall follow these priorities when recommending Community
Programs Grants:
A. Local groups located within the City and offering programs to City
residents;
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B. Regional groups located in Orange County and offering programs to City
residents; and
C. Groups located in California and offering programs to City residents.
Groups not offering programs or services to local residents shall not be eligible for
support from the City.
Special Events Grants are intended to allow meritorious community, social or athletic
events to offset some or all of their City fees for their event. Doing so should decrease
costs to the event organizer so that beneficiaries can see even greater benefit from any
fundraising associated with the events. The City Manager shall, in consultation with
the City Council, establish a threshold amount for the proposed City budget that
reflects adequate support for these events. The City Manager shall establish an
administrative policy for these grants. The City Manager may divide the funding into
more than one category to ensure that different types of events are fairly measured with
peer events. The City Council shall consider and approve the Special Event Grant
allocations by recipient.
District Discretionary Grant Accounts. At the start of the fiscal year, the City Manager
shall provide an account for each Council District within the City Council's Budget
division known as the District Discretionary Grant Accounts. The City Council shall set
a funding level of these Accounts during the budget process preceding the June
adoption of the City's budget. Each City Council Member shall have, at his or her
discretion, the ability to allocate their District's funding to uses, projects, or community
entities that benefit the City as a whole or the City Council Member's district
specifically. Any expenditure from these Accounts must have an identifiable public
benefit.
Requests to expend these funds should be directed by each City Council Member to the
Finance Director. Expenditures will be reported to the City Council annually. The
report will include a brief description and the public benefit associated with each
expenditure.
At the conclusion of the fiscal year in which the District Discretionary Grant Accounts
received appropriation, all unencumbered funds in the Accounts shall be deposited in
the City's General Fund Reserve Account.
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History
Adopted F-22 -
7-8-1985
Amended F-22
-10-28-1991
Amended F-22
-1-24-1994 (changed to A-12)
Amended A-12
- 5-22-2001
Amended A-12
- 6-22-2010
Amended A-12
- 9-27-2011
Amended A-12
- 5-12-2015
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Attachment B
FY 2019 Special Event Support Program
Program 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:
1. 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.
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. 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;
The event organizers have a strategic, measureable marketing plan and can immediately produce
the plan and metrics from past years (if applicable) upon the 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.
I. 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 to pay. Successful applicants will be awarded
grants in the form of credits toward their City fees. (The City no longer provides 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 retain 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 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.
II. 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, 2018 and June 30, 2019 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 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.*
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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; or
• Invitation -only events - those not open to the general public.
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.
E. Signature Event applications must include the event's proposed measurable objectives and
performance measurements.
IV. Evaluation Criteria
A. Community & Charitable Events
1. Applications will be reviewed and evaluated based on the following criteria:
2. The event serves, involves, and / or promotes Newport Beach, its residents, schools and/or
businesses.
3. 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.
4. The event benefits a Newport Beach or Orange County -based non-profit organization or
Newport Beach community or neighborhood organization.
5. The event pays City fees.
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).
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 measurable economic benefits to the City.
*Successful applicants must enter into an agreement with the City that will include the submitted and 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.
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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:
• 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 the grant
agreement.)
• The agreement will include the submitted and 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.
• 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 generally 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
*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.
VII. Applying for a Grant
A. Applications are available online
• Community and Charitable Event Support Application
• Signature Event Support Application
C. This call for applications is for special events that will be held in Newport Beach between July 1,
2018 and June 30, 2019.
D. The deadline for applications (and all required attachments) is Friday, April 27, 2018 at 5:00p.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 2018-2019 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.
City co-sponsored events that do not have associated City permit or related fees, or events hosted by
City support groups (such as the Friends of the Library or the Newport Beach Public Library Foundation)
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.
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Special Events Grant Funding Applications FY 2018-19
Attachment C
New Community & Charitable Event Covers City Fees Only
Community & Charitable Event - Serve or benefit locally based organizations and causes and/or provide recreational, cultural, social benefits to residents. Deny/Not Eligible
Signature Event - Large-scale events, based in Newport Beach, that promote Newport Beach regionally, attract visitors, and provide measurable, economic benefits to the City. City Fees & Cash
C1
Community & Charitable Event
Balboa Island Parade
Organization
$10,000
$7,500
N1
New Community &Charitable Event
A December to Remember Gala to support Alzheimer's
research at UCI MIND
UC Irvine Institute for Memory Impairments and Neurological
Disorders, UCI Mind
$0
$150
N2
New Community & Charitable Event
2019 Grad Night
Newport Harbor High School PTA
$0
$240
N3
New Community & Charitable Event
Corona Del Mar High School Home Tour
Corona Del Mar High School Home Tour
$0
$460
N4
New Community & Charitable Event
Fall Faire & Pumpkin Patch
Environmental Nature Center
$0
$460
N5
New Community & Charitable Event
CHOC Glass Slipper Guild Gala
CHOC Glass Slipper Guild
$0
$150
N6
New Community &Charitable Event
Performance of Johann Sebastian Bach's Great Mass in B
Minor
Baroque Music Festival Corona Del Mar
$0
$0
N7
New Community & Charitable Event
Bio -Link Depot Teacher Science Giveaway
Bio Link Depot
$0
$0
N8
New Community & Charitable Event
Jazz Picnic, Under the Bell Tower
Newport Harbor Music Education Foundation
$0
$0
N9
New Community & Charitable Event
Healthy Eating Workshop
OC Books on the Run
$0
$0
N10
New Community & Charitable Event
New Student Orientation
Seabees Connect - Ensign Intermediate School
$0
$0
C12
Community & Charitable Event
New Community & Charitable Events Total
Newport Harbor Educational Foundation
$1,460
C1
Community & Charitable Event
Balboa Island Parade
Balboa Island Improvement Association$7,500
$10,000
$7,500
C2
Community & Charitable Event
Balboa Island Tree Lighting/Snow Day
Balboa Island Improvement Association
$660
$1,200
C3
Community & Charitable Event
Taste of Balboa & Carnival
Balboa Island Improvement Association
$939
$2,900
C4
Community & Charitable Event
Fourth of July Parade
Balboa Peninsula Point Association
$452
$460
C5
Community & Charitable Event
Wooden Boat Festival
Balboa Yacht Club
$0
$460
C6
Community & Charitable Event
CdM Christmas Walk
Corona del Mar Chamber
$3,500
$5,000
C7
Community & Charitable Event
CdM Scenic 5K
Corona del Mar Chamber
$15,000
$13,000
C8
Community & Charitable Event
Field of Honor
Exchange Club of Newport Harbor
$2,700
$2,700
C9
Community & Charitable Event
March of Dimes for Babies
March of Dimes
$2,500
$2,500
C10
Community & Charitable Event
CdM Sand Castle Contest
NB Chamber of Commerce
$500
$600
C11
Community & Charitable Event
Newport EI Car Show
Newport Elementary School Foundation
$452
$460
C12
Community & Charitable Event
Newport Harbor Home & Garden Tour
Newport Harbor Educational Foundation
$452
$460
C13
Community & Charitable Event
Newport Classic Surf Contest
Newport Harbor High School Surf Team
$1,000
$1,000
C14
Community & Charitable Event
Newport -Mesa Spirit Run
Newport -Mesa Spirit Run, Inc.
$14,000
$14,000
Community & Charitable Events Total
$52,240
S1
Signature Event
Newport Beach Wine and Food Festival NewBe Productions LLC
$0
$10,000
S2
Signature Event
Komen OC Race for the Cure OC Affiliate of Susan G. Komen
$10,000
$10,000
S3
Signature Event
Hoag Classic Hoag Charity Sports Events
$15,000
$15,000
S4
Signature Event
Newport Beach Restaurant Week NB Restaurant Association BID
$9,000
$9,000
S5
Signature Event
Newport to Ensenada Yacht Race NOSA
$10,000
$10,000
S6
Signature Event
Newport Beach Christmas Boat Parade Newport Beach Chamber of Commerce
$50,000
$50,000
S7
Signature Event
Newport Beach Film Festival Newport Beach Film Festival
$150,000
$150,000
Signature Events Total
1
$254,000
Community & Charitable and Signature Events Combined Total 1 $307,700
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