Loading...
HomeMy WebLinkAbout11 - Special Event Support Program FY17-18 Funding�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report July 11, 2017 Agenda Item No. 11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Tara Finnigan, Deputy City Manager, tfinnigan newportbeachca.gov PHONE: 949-644-3035 TITLE: Special Event Support Program FY 2017-2018 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 $53,311 and five Signature events for a total of $229,000. 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 2017-2018; 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 to Ensenada Yacht Race; d) Authorize staff to enter a new, three-year grant agreement for $50,000 per year for a total of $150,000 with the Newport Beach Chamber of Commerce for the Christmas Boat Parade event; and e) Approve changes to the Special Event Support Program as detailed in the staff report. FUNDING REQUIREMENTS: Sufficient funding is available in the adopted FY 2017-2018 (FY18) General Fund budget. The budget includes $255,000 (01020202-841046, City Manager's Office/Economic Special Event Support Program FY 2017-2018 Funding Recommendations July 11, 2017 Page 2 Development) in support for Signature Events and $60,000 (01005005-841046, City Council) for the Community and Charitable event support. Staff's recommendations, if approved, would support 18 Community and Charitable events for a total of $53,311 and five Signature events for a total of $229,000. DISCUSSION: Background The City of Newport Beach (City) follows 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 define the types of events the City will support and provide eligibility, qualification and evaluation criteria for the program. (Attachment A) 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 7, 2017 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 May 10, 2017 and 25 applications were received. This included 19 applications received under the Community and Charitable event category and six received under the Signature event category. One 11-2 Special Event Support Program FY 2017-2018 Funding Recommendations July 11, 2017 Page 3 application was incomplete and the applicant agreed it should be removed from further consideration. 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. 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 evaluated these elements and assigned funding recommendations. In order to support as many eligible events as possible with the funding approved in the fiscal year budget, staff also considers 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. Nearly half of the events recommended for grant funding fall within this "repeat recipients" category, including all five of the Signature events. Funding Recommendations Staff is submitting recommendations for the City Council's consideration that, if approved, would support 18 Community and Charitable events for a total of $53,311 and five Signature events for a total of $229,000. (A complete list is included as Attachment B.) Of the 23 events recommended to receive grant funding, 18 received City grants in FY 17. For all but one of these events, staff recommends leaving the grant amount as the same level as last year. The Balboa Island Parade, however, received a $5,000 grant last year and staff is recommending a $7,500 grant this year. The parade organizers applied for a Signature event grant this year in order to obtain more grant funding. Staff, however, believes the parade better matches the criteria for a Community & Charitable event and is therefore recommending a grant under that category, but increasing the grant amount received last year by $2,500. A $7,500 event grant would cover most, if not all, of the City permit and other fees related to the parade. 11-3 Special Event Support Program FY 2017-2018 Funding Recommendations July 11, 2017 Page 4 The remaining five events did not receive grants last year. For those, staff is recommending grant amounts that should help to cover the cost of their City Special Event Permit fee. Reflected in the Signature event funding total previously referenced is $50,000 for the Christmas Boat Parade and $150,000 for the Newport Beach Film Festival. The City is currently under multi-year grant agreements with the organizers of these events. In October 2013, the City Council approved a $200,000 grant agreement with the Newport Beach Chamber of Commerce (Chamber) for the Boat Parade to be disbursed in $50,000 payments in 2014, 2015, 2016 and 2017. The agreement with the Newport Beach Film Festival was approved in 2016. The City is providing $150,000 in grant funding per year in 2017, 2018 and 2019 to the festival for a total grant amount of $450,000. The City's agreement with the Chamber for the Christmas Boat Parade will expire at the end of 2017. The Chamber requested a new, five-year agreement to provide some funding stability for the event as it plans future parades and seeks other event sponsors. Staff, however, is recommending a new, three-year agreement as that term is consistent with the grant agreement with the Newport Beach Film Festival. The Christmas Boat Parade has been a popular tradition for City residents and visitors for more than a century. Community members from throughout the city watch, participate in, support or volunteer for the parade. This year, the Chamber is adjusting the parade route to have it pass by Marina Park earlier in the evening. This change will better enable residents, particularly those with young children, to gather and watch the festivities at low or no cost from the park. The parade also attracts visitors to town and Newport Beach & Company partners with the Chamber to assist with event marketing and sponsorships. Newport Beach & Company commissioned an economic impact study of the 2015 parade and found it generated more than $4 million in visitor spending through paid overnight stays, dining in restaurants, shopping and more. Disqualifications, Exceptions or Removals from Consideration As shown in Attachment B, one of the applications submitted was incomplete and was removed, with the concurrence of the applicant, from further consideration. Staff is not recommending funding for two events — one under the Community and Charitable events category and one under the Signature events category. One did not adequately meet the program criteria and the other is so successful (it has a widely recognized corporate title sponsor) that its projected City fees represent less than one percent of the event expenditure budget. Thus, staff did not see a demonstrated need for City financial support. 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 recommends limiting the number of consecutive years that an organization can receive a City support grant and gradually reducing a 11-4 Special Event Support Program FY 2017-2018 Funding Recommendations July 11, 2017 Page 5 repeat recipient's grant amount in consecutive years. Assuming an organization submits complete grant applications for an event in consecutive years that meet the program criteria, and receive City grant funding, staff recommends the following: Year 1 through Year 3 — grant amount for the event stays at same level or can be slightly adjusted if an event's City -related fees increase or decrease. Year 4 — grant amount reduced 10 percent from Year 3 grant amount. Year 5 — grant amount reduced 10 percent from Year 4 grant amount. Year 6 — not eligible for a grant. Year 7 — organization is welcome to apply again for a grant for the event under the Special Event Program. Staff also recommends 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. Lastly, staff recommends amending the language related to grant funding levels in the program guidelines to reflect that they are estimated and the City has the discretion to set grant amounts at any level, no matter the category or event under which an event may be assigned. A redline version of the program overview, that would incorporate these suggested changes for FY 2018-2019, is included as Attachment C. 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 18 Special Event Support Program Overview Attachment B — FY 18 Special Event Grant Funding Recommendations Attachment C — Redline of proposed FY 19 Special Event Support Program Guidelines Attachment D — Correspondence 11-5 ATTACHMENT A 4� Po_ R, City of Newport Beach 0 Special Event Support Program Call for Applications for Events Executed Between July 1, 2017 and June 30, 2018. 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; o 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 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. FY 18 Special Event Support Program Overview I Page 1 11-6 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, 2017 and June 30, 2018 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*. 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 FY 18 Special Event Support Program Overview I Page 2 11-7 Individuals 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. 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 18 Special Event Support Program Overview I Page 3 11-8 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: 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.) 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. 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 *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 FY 18 Special Event Support Program Overview I Page 4 11-9 *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.gov/specialeventgrants B. This call for applications is for special events that will be held in Newport Beach between July 1, 2017 and June 30, 2018. C. The deadline for applications is Friday, May 5, 2017 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 2017-2018 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 18 Special Event Support Program Overview I Page 5 11-10 ATTACHMENT Special Events Grant Program - Proposed Funding FY 2017-2018 Organization .. ... Community & Charitable Event Applicants -serve or benefit locally based organizations and causes and/or provide recreational, cultural, social benefits to residents. American Cancer Society Relay for Life of Newport Beach May 7, 2018 $ 1,500 $ 1,500 Balboa Island Improvement Association Taste of Balboa & Carnival Sept. 23, 2017 $ - $ 939 Balboa Island Improvement Association Tree Lighting & Snow Day Dec. 2, 2018 $ 660 $ 660 Balboa Island Improvement Association Balboa Island Parade June 3, 2018 $ 5,000 $ 7,500 Balboa Peninsula Point Association Fourth of July Parade & Picnic July 4, 2017 $ 452 $ 452 Balboa Village Merchants Association Christmas Tree Lighting Ceremony Nov. 25, 2017 $ 452 $ 452 Balboa Village Merchants Association OktoberFest Oct. 7, 2017 $ - $ 452 Balboa Village Merchants Association Village Carnival Oct. 28, 2017 $ - $ 452 Corona del Mar Chamber of Commerce Christmas Walk Dec. 3, 2017 $ 3,500 $ 3,500 Corona del Mar Chamber of Commerce CdM Scenic 5K June 2, 2018 $ 15,000 $ 15,000 Exchange Club of Newport Harbor Field of Honor May 18-29, 2018 $ 1,000 $ 1,000 Exchange Club of Newport Harbor Balboa Art Faire & Taste of Balboa June 17, 2018 $ - $ - Application incomplete / organizer withdrew Newport Beach Chamber of Commerce Green on the Green/CERT Expo Sept. 9, 2017 $ 2,500 $ 2,500 Newport Beach Chamber of Commerce Corona del Mar Sand Castle Contest Oct. 1, 2017 $ 500 $ 500 Newport Elementary School Foundation Newport EI Car Show Oct. 21, 2017 $ - $ 452 Newport Harbor Educational Foundation Newport Harbor Home & Garden Tour May 17, 2018 $ 452 $ 452 Newport Harbor High School Surf Team Newport Classic Surf Contest May 20-21, 2018 $ 1,000 $ 1,000 Newport -Mesa Spirit Run, Inc. Newport -Mesa Spirit Run March 11, 2018 $ 14,000 $ 14,000 March of Dimes March for Babies April 29, 2018 $ - $ 2,500 Pacific Sports Newport Beach Triathlon Newport Beach Triathlon Oct. 1, 2017 $ - $ - No FY 18 funding recommended Community & Charitable Events Total 1 $53,311 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. Hoag Charity Sports Events Toshiba Classic March 5-11, 2018 $ - $ - No FY 18 funding recommended Newport Beach Chamber of Commerce Christmas Boat Parade Dec. 13-17, 2017 $ 50,000 $ 50,000 Under 4 -year agreement - $50,000/year for 2014 through 2017 Newport Beach Film Festival Newport Beach Film Festival April 26 -May 3, 2018 $ 150,000 $ 150,000 Under 3 -year agreement -$150,000/year for 2017 through 2019 Newport Beach Restaurant Assn. BID Newport Beach Restaurant Week Jan. 15-28, 2018 $ 9,000 $ 9,000 Newport Ocean Sailing Association Newport to Ensenada Yacht Race April 22-29, 2018 $ 10,000 $ 10,000 Susan G. Komen Orange County Komen Orange County Race for the Cure Sept. 24, 2017 $ 10,000 $ 10,000 Signature Events Total Funding Levels CC & Signature Combined $ 229,000 $ 282,311 June 30, 2018 ATTACHMENT C City of Newport Beach p e Special Event Support Program Call for Applications for Events Executed Between FaR�%r July 1, 20187 and June 30, 201919. 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; o 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 4114 -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 keep the difference. FY 198 Special Event Support Program Overview I Page 1 11-12 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, 201 and June 30, 20198 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*. 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 FY 198 Special Event Support Program Overview I Page 2 11-13 • Individuals • 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. 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 198 Special Event Support Program Overview I Page 3 11-14 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: 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.) 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. 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 FY 198 Special Event Support Program Overview I Page 4 11-15 *Grants provided based on analysis of related City event fees and economic benefits City will derive from the event. The funding tiers are guidelines and the City has the discretion to set grant amounts at any level, no matter the category or event under which an event may be assigned. 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. Manv arant recipients have traditionally applied for and been awarded event arants in successive years. To encourage new grant applicants and provide grants to as many eligible events and organizations as funding allows, funding for repeat grant recipients will be limited by the schedule listed below. Year 1 through Year 3 — Grant amount stays flat or decreases at the City's discretion. Grant may be slightly increased if an event's City -related fees increase. Year 4 — Grant funding reduced 10 percent from Year 3 grant amount. Year 5 - Grant amount reduced 10 percent from prior year grant amount. Year 6 - No grant will be awarded. Year 7 — Organization is welcome to apply again for a Special Event Program grant. VII. Applying for a Grant A. Applications are available online at www.newportbeachca.gov/specialeventgrants B. This call for applications is for special events that will be held in Newport Beach between July 1, 20187 and June 30, 20198. C. The deadline for applications is Friday May 5 2017 at 4 P.m.TBD 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 2017-2018 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 198 Special Event Support Program Overview I Page 5 11-16 City co-sponsored events that do not have associated City permit or related fees, or events hosted bV City support groups (such as the Friends of the Library or the Newport Beach Public Library Foundation) of which the CitV Council or City Manager has approved waiving City permit or related fees, do not have to applV for a Special Event Support grant. FY 198 Special Event Support Program Overview I Page 6 11-17 ATTACHMENT D From: Mulvey, Jennifer To: Finnigan. Tara subject: Grant Correspondence Date; Monday, July 3, 2017 1:38:30 PM Attachments: imaae002xna From: City Clerk's Office Sent: Monday, July 03, 2017 12:37 PM To: Mulvey, Jennifer <J Mulvey@ newportbeachca.gov>; Rieff, Kim <KRieff@new portbeachca.gov> Subject: FW: Christmas Boat Parade Sponsorship Agreement From: Kiff, Dave Sent: Monday, July 03, 2017 12:36:56 PM (UTC -08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: FW: Christmas Boat Parade Sponsorship Agreement From: Larry Smith[mailto:lsmith@surterreproperties.com] Sent: Monday, July 3, 2017 10:04 AM To: Dept - City Council<CityCouncil@newportbeachca.gov> Cc: Steve Rosansky <steve@NEWPORTBEACH.COM> Subject: Christmas Boat Parade Sponsorship Agreement Honorable Mayor Kevin Muldoon & City Council Members, It was brought to my attention that the city will be voting on July 11th to extend Newport's sponsorship of the annual Christmas Boat Parade. As an active member of the Commodores Club and the boat pa rade committee I want to personally ask that the city continue to support this incredible event. As a native of Newport Beach and a lifelpng boater, I grew up as an active participant in the parade and realize the tremendous impact it has on our community. For 108 years it has been an incredible tradition and one of the premier Christmas events in the nation. The parade generates millions of dollars in revenue to the city and brings the community together for five amazing nights. Please vote to support Newport's most cherished community event! Respectfully, Larry °.RRA': v T949 717.7?91 > F 949, 71 7.1391 > www.4SaleinTheOluffs.com www.5urterra Properties. com 14P. Npvgi r-.rr ; entmr privq, Su ISP '. ,, Mr%vpnrt rJParh [4 9264_e This email is intended solely for the person or entity to which it is addressed and may contain confidential or proprietary information. If you are not the named recipient, or you received this email in error, you are not authorized to copy, print, share, save, or rely upon this email; instead, please contact the sender immediately and delete this email and any attachments. Additionally, in accordance with applicable professional rules and regulations, please understand that any written advice contained in, forwarded with, or attached to this e-mail is not intended or written by the sender of this email to constitute, and must not be used as a substitute for, the advice of licensed engineers, lawyers and accountants. 11-18 From: Kiff, Dave Sent: Monday, July 03, 2017 12:20:57 PM (UTC -08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: FW: Extension of the Newport Beach Christmas Boat Parade Agreement For the record, Special Events Grants (7-11) From: Bill Rhinesmith [mailto:bill (@nejathcpm nett Sent: Saturday, July 1, 2017 4:46 PM To: Dept -City Council <Ci v_Counciira)newI2ortbeachca.gQv> Subject: Extension of the Newport Beach Christmas Boat Parade Agreement Dear Mayor and Councilmembers: My first visit to Newport Beach 55 years ago was as a 17 year old participating in Bal Week, 1962. That was it! I was hooked — and upon finishing college and my Army stint, I kept a promise to myself and moved here in December of 1969, to The Balboa Peninsula, for essentially what was to become "forever," first address... 204 East 43`d Street — aka "Party Central." I have little recollection of the details that year other than to say I was peripherally aware of a big celebration going on in the Harbor — lots of boats, lots of lights, lots of fun, and a -Lot of people. For the next 47 years the (Newport Harbor, then Newport Beach) Christmas Boat Parade would be one of those public Christmas events that was a part of my... and then my family's holiday season. i have memories of holding my one, then two year old son —and 3 years later — my daughter... in my arms, looking at their faces... strings of red lights reflecting in their eyes — as they tried to comprehend what they were seeing. I didn't give much thought then as to how the Parade happened. My intuitive assumption, I'm sure, was that it was a city event. I had no idea that the Newport Beach Chamber of Commerce was making all of this happen — and certainly no concept of all the "moving parts" involved to assure a successful outcome. I don't recall much self -promotion by the Chamber. That changed in 2000 when I became a Chamber member — and even more so when I was inducted into The Commodores Club in 2003 and promptly handed a CBP Parade Marshal Sign Up sheet. In due time, particularly after becoming a part of the CBP Planning Committee — I started to get a grasp on the scope of this annual project. It is significant — and takes significant Chamber staff in addition to the volunteer work of 40 or so Commodores every year. While the Commodores compensation For the event is a front row "on the water" seat — the Chamber staff puts in time "above and beyond" the call of normal duty. They are the actual "gears" that drive this machine — while the Commodores provide the fuel to assure a successful Plan and Execution of this wonderful event that binds the citizens to "the city" just prior to the most beautiful of all American holidays. 11-19 The City's sponsorship of the Newport Beach Christmas Boat Parade these last four years has played an invaluable role in anchoring the fiscal success of our community celebration — which we share with the Nation and now, even much of the world — thanks to Gary and crew at Visit Newport Beach. I would ask that The Council extend the City sponsorship of the Newport Beach Christmas Boat Parade indefinitely and even consider upping the ante as our city revenue resources permit. You are regarded as an essential part of the team in all of your support for permitting, safety compliance and monetary assistance. I'll see you on the water this coming December. Sincerely, Bill Rhinesmith and Family NetPath (949) 307-3013 NB Chamber of Commerce, Past Board Commodores Club, Past Skipper - I '- M . •.I www.Bi[[Rhinesmith.com www NetDomainProper y c o m 11-20 From: Kiff, Dave Sent: Monday, July 03, 2017 12:20:27 PM (UTC -08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: FW: Christmas Boat Parade Sponsorship agreement For the record, the item on Special Events Grants for 7-11. From: Brett Hemphill fmailto:bret .h _mphill(ime.com] Sent: Sunday, July 2, 2017 7:55 AM To: Dept - City Council <CityCouncilna newno-tbeachca.Eov> Subject: Christmas Boat Parade Sponsorship agreement Dear Mayor Muldoon and City Council Members - Please see attached. Thank you. Brett Hemphill. Hemphill's Rugs & Carpets 448 E 17th Street Costa Mesa, CA 92627 949-722-7224 Website: www- RuasAndC om Shop Online: .=n3^wHemphills glom We recommend and sell Miele vacuums. DO NOT use Dyson or Oreck vacuums. 11-21 Dear Mayor Kevin Muldoon & City Council Members: have been involved with the Newport Beach Christmas Boat Parade for nearly 20 years. Three of those years as Chairman. The Commodores Club at the Newport Beach Chamber of Commerce with the help of the City of Newport Beach and Visit Newport Beach has really made this event even better. Here are a few of the highlighted additions: - Grand Marshall's. - Fireworks on the opening and closing nights - Press party - Much increased press coverage in print, social media and digital - A professionally decorated boat by Disney The City of Newport Beach's contribution of $ 50,000 per year has made much of this possible. And the good news is that I feel that City actually gets that money back via tax revenues, promotion of the city in the media and community awareness. As a volunteer on the water, I see increased number of people watching, spectator boats filled to capacity, etc. I know that the four year sponsorship agreement is in its final year and that the Newport Chamber of Commerce is seeking a five year renewal. Based on what I have seen, the sponsorship by the City of Newport Beach makes perfect sense. The parade has an upward surge of momentum. We need to continue what we have started. This parade requires substantial sponsorship monies and volunteers. I have been dedicated for nearly two decades. As a resident of Newport Beach, I would request that you agree to support the parade for with a sponsorship renewal. Thank you for your consideration. Sincerely, Brett Hemphill 11-22 TO: Mayor Muldoon & Members of the City Council FROM: Dave Kiff, City Manager Tara Finnigan, Deputy City Manager DATE: July 6, 2017 RE: July 11 Regular Meeting Agenda Item 1 1 MEMORANDUM Item 11 under Current Business on the City Council's July 11 Regular Meeting agenda concerns the Fiscal Year 2018-2019 Special Event Grant Program recommendations. The staff report includes a recommendation for a new, three-year grant agreement, for $50,000 per each year of the agreement, with the Newport Beach Chamber of Commerce (Chamber) for the Christmas Boat Parade. We believe that a three-year agreement is appropriate, but also understand the wishes of the Chamber and its Commodores for a different commitment. We have been willing to discuss this with the Chamber. Thus, after recent discussions with Steve Rosansky, president and CEO of the Chamber, the following new recommendation for Item 11 (d) seems reasonable to us: d) Authorize staff to enter a new grant agreement with the Newport Beach Chamber of Commerce for the Christmas Boat Parade event for an initial three-year term commencing August 1, 2017 with dispersal of Grant Funds in equal installments of $50,000 on the following dates: a) July 1, 2018; b) July 1, 2019; and c) July 1, 2020. If the City does not terminate the agreement prior to the expiration of the initial three- year term, then the agreement will automatically renew for an additional one year with dispersal of additional Grant Funds in one installment of $50,000 on July 1, 2021. The agreement would provide grant funding for a total of $150,000 for the initial term, plus an additional $50,000 (for a total of $200,000) if the agreement automatically renews for a fourth year. The Chamber had requested a new, five-year agreement with the City, but staff initially recommended a three-year term as that would be consistent with the agreement the City entered into last year with the Newport Beach Film Festival. With the "three plus one" alternative, we may be able to meet the goals of the Chamber for greater continuity, but also address the City Council's desire to have strong flexibility in fiscal matters. As always, we respect whatever decision the Council makes.