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c�<,FORN'P City Council Staff Report
June 25, 2019
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Laura Detweiler, Director, Idetweiler@newportbeachca.gov
PHONE: 949-644-3151
TITLE: Special Event Support Program Fiscal Year 2019-20 Funding
Recommendations
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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 support 17 Community and Charitable events in the
amount of $56,940 and six Signature events in the amount of $244,000 for a combined
total of $300,940. Included in the Signature events is a request for a new three-year
agreement with Newport Beach Film Festival in the amount of $150,000 annually.
RECOMMENDATION:
a) Determine this 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
this action will not result in a physical change to the environment, directly or indirectly;
b) Approve the Special Event Support Program recommendations for Fiscal Year 2019-
20;
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, and the Newport to Ensenada Yacht Race; and
d) Authorize staff to enter a three-year agreement with Newport Beach Film Festival.
This agreement is for $150,000 per year for three consecutive years for a total of
$450,000.
FUNDING REQUIREMENTS:
Sufficient funding is available in the FY 2019-20 General Fund budget, which 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, totaling $315,000. Grant recommendations for Community
and Charitable events total $56,940 and Signature events total $244,000 for a combined
amount of $300,940.
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Special Event Support Program Fiscal Year 2019-20 Funding Recommendations
June 25, 2019
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DISCUSSION:
Background
The Special Event Support Program as outlined in Council Policy A-12 Discretionary
Grants follows an administrative process (Attachment A) for allocating special event
support. Grants are intended to allow meritorious community, social or athletic events to
offset some or all of City fees for their event. The process is designed to provide
transparency and equity in how funding is allocated, comply with 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 or Orange County based non-profit
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 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 4, 2019 and advertised the
program in Stu News, 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 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 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 B.
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Special Event Support Program Fiscal Year 2019-20 Funding Recommendations
June 25, 2019
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 FY 2019-20 recommendations for Community
and Charitable events are based solely on the waiver of city fees. All applicants
met the program's criteria and are recommended for funding.
2. Signature event grants are 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
considered these elements and assigned funding recommendations that will
provide cash grants to offset event expenditures, which may include City fees. Two
signature events did not receive the committee's recommendation for funding
support: OC Fashion World's application was deemed incomplete and Wine and
Food Festival, based on last year's direction from City Council to no longer provide
funding.
Multi -Year Agreements
The City has traditionally entered into multi-year agreements in support of Newport Beach
Boat Parade and Newport Beach Film Festival, which are among the largest of the special
events in terms of scale and audience. The Boat Parade is currently in year three of a
four-year agreement, receiving $50,000 annually. The three-year Film Festival agreement
just concluded in April of this year. Staff supports the request of the applicant to provide
an additional three-year agreement in the amount of $150,000 per year through Fiscal
Year 2021-22. The Film Festival attracts many visitors to town and partners with the
Chamber of Commerce and Visit Newport Beach to assist with widespread event
marketing and sponsorships. An economic impact study concluded that it generated more
than $4 million in visitor spending through paid overnight stays, dining in restaurants,
shopping and more. Furthermore, a multi-year agreement provides funding stability and
leverage for the organizer to gain additional private sponsorship.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council finds that approving the Special Event Support
Program is not subject to the California Environmental Quality Act ("CEQA") pursuant to
Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a project
as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
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Special Event Support Program Fiscal Year 2019-20 Funding Recommendations
June 25, 2019
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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 2019-20 Special Event Support Program Overview
Attachment B — FY 2019-20 Special Event Support Program Funding Recommendations
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Attachment A
FY 2020 Special Event Support Program
Program Overview
The City of Newport Beach (City) recognizes the social and economic benefits associated with special
events. The Special Event Support Program provides financial support to two categories of Newport
Beach -based events: The opportunity to apply will open at 8:OOam on Thursday, April 4, 2019. The
application deadline will be Thursday, April 25, 2019 at 5pm.
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, and those that
pay or incur City of Newport Beach fees.
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 does not 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 retain the
difference.
For events that are 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. Funding support may be assigned to an event at a level between $10,000
and $150,000. 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.
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II. Eligibility Criteria
To be eligible to receive City support, applicants must demonstrate that:
1. 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.
2. The event is scheduled to take place between July 1, 2019 and June 30, 2020 and the exact
date(s), time(s) and location within Newport Beach have been determined.
3. The event is not financially dependent on receiving City support.
4. 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*.
5. The applicant has no outstanding debt due to the City of Newport Beach.
6. The event does not need to be free of charge, but should be accessible to the entire
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.
III. Qualification Criteria
To qualify to be considered to receive City special event support, all applications must comply with the
following:
1. 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.
2. 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.
3. Must demonstrate strong financial management over the event, including cost effectiveness.
4. Only one event per application; however, there is no limit to the number of applications an
organization can submit.
5. Signature Event applications must include the event's proposed measurable objectives and
performance measurements from the prior year.
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.
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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.
4. 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.
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. Applying for a Grant
1. Applications are available online
o Community and Charitable Event Support Application
o Signature Event Support Application
2. This call for applications is for special events that will be held in Newport Beach between July 1,
2019 and June 30, 2020.
3. The deadline for applications (and all required attachments) is Thursday, April 25, 2019 at 5 p.m.
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VII. Additional Information
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. Signature Grants are
provided based on analysis of related City fees and economic benefits the City will derive from the event.
All applications received by the deadline will be evaluated based on the eligibility, qualification and
evaluation criteria and requirements as outlined. Recommendations will be forward to the City Council for
final review and approval. 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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FY 2019-20 Special Events Support Program Funding Recommendations
New Events
Community & Charitable Event - Serve or benefit locally based organizations and causes and/or provide recreational, cultural, social benefits to residents.
Signature Event - Large-scale events, based in Newport Beach, that promote Newport Beach regionally, attract visitors, and provide measurable, economic benefits to the City
Attachment B
Covers City Fees Only
F Deny/Not Eligible
City Fees & Cash
Community & Charitable and Signature Events Combined Total 1 $300,940
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.-
•
...
.-.
C1
New Community & Charitable Event
Easter Egg Hunt for Olive Crest Foster Care Children
Newport -Irvine Rotary Club
N/A
$500
C2
New Community & Charitable Event
Lobsterfest Foundation
Lobster Fest at Newport Beach
N/A
$2,000
C3
New Community & Charitable Event
Our Lady of Mount Carmel Car Show
Knights of Columbus 15083
N/A
$500
C4
New Community & Charitable Event
Newport Beach Garden Tour by Sherman Library
Sherman Library & Gardens
N/A
$500
C5
Community & Charitable Event
Corona Del Mar High School Home Tour
Corona Del Mar High School Home Tour
$460
$500
C6
Community & Charitable Event
2019 Grad Night
Newport Harbor High School PTA
$240
$240
C7
Community & Charitable Event
Balboa Island Parade
Balboa Island Improvement Association
$7,500
$9,300
C8
Community & Charitable Event
Balboa Island Tree Lighting/Snow Day
Balboa Island Improvement Association
$1,200
$1,100
C9
lCommunity & Charitable Event
Taste of Balboa & Carnival
Balboa Island Improvement Association
$2,900
$2,700
C10
Community & Charitable Event
Fourth of July Parade
Balboa Peninsula Point Association
$460
$500
C11
Community & Charitable Event
CdM Christmas Walk
Corona del Mar Chamber
$5,000
$5,000
C12
Community & Charitable Event
CdM Scenic 5K
Corona del Mar Chamber
$13,000
$12,750
C13
Community & Charitable Event
Field of Honor
Exchange Club of Newport Harbor
$2,700
$2,800
C14
Community & Charitable Event
CdM Sand Castle Contest
NB Chamber of Commerce
$600
$650
C15
Community & Charitable Event
Newport Classic Surf Contest 19th
Newport Harbor High School Surf Team
$1,000
$1,500
C16
Community & Charitable Event
Newport -Mesa Spirit Run
Newport -Mesa Spirit Run, Inc.
$14,000
$15,900
C17
Community & Charitable Event
Newport EI Car Show
Newport Elementary School Foundation
$460
$500
Community & Charitable Events Total
$49,520
$56,940
S1
Signature Event OC Fashion World Launch OC Fashion World
$0 (Incomplete
N/A
Application)
S2
Signature Event Newport Beach Wine & Food Newport Beach Wine & Food
$0 $0
S3
Signature Event Newport to Ensenada Yacht Race Newport Ocean Sailing Association
$10,000 $10,000
S4
Signature Event Newport Beach Restaurant Week Newport Beach Restaurant Association
$9,000 $9,000
S5
Signature Event Komen Orange County MORE THAN PINK Walk Susan G. Komen Orange County
$10,000 $10,000
S6
Signature Event Hoag Classic Hoag Charity Sports, Inc.
$15,000 $15,000
S7
Signature Event Newport Beach Film Festival Newport Beach Film Festival
$150,000 $150,000
S8
ISignature Event Newport Beach Christmas Boat Parade Newport Beach Chamber of Commerce
$50,000 $50,000
Signature Events Total
$244,000 $244,000
Community & Charitable and Signature Events Combined Total 1 $300,940
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