Title
Recommendation to Establish a Community and Economic Benefit Special Events Grant Program to Support Events that Bring Economic, Cultural and/or Community Benefits to the City of Alameda; and
Adoption of Resolution Amending the Fiscal Year 2023-24 General Fund Budget to Appropriate $200,000 from General Fund Residual Fund Balance for the Program. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Historically, the City of Alameda (City) has provided informal subsidies to certain special events, such as the Downtown Alameda Art and Wine Faire, and other public fairs, races and performances. These subsidies took the form of waived fees, free materials and services, and staff time at no cost for extensive technical assistance with permitting.
In order to provide assistance in a more transparent and equitable manner, staff recommends that the City move away from informal subsidies, and instead establish a Community and Economic Benefit Special Events Grant Program to assist large events with fees, services and materials the City previously subsidized. Staff recommends the focus be on subsidizing costs associated with public safety, environmental stewardship, and direct City services and fees.
Staff is recommending adoption of a resolution to appropriate $200,000 from the Residual General Fund fund balance to establish and implement a Community and Economic Benefit Special Events program.
BACKGROUND
Special events have historically played a vital role in the City’s community and economy. They are important traditions for many residents and also attract people from around the Bay Area which generates tourism revenue and raises the regional profile of the City. Many of the events are also fundraisers for local nonprofits.
In 2018, City Council formally adopted the Economic Development Strategic Plan (the Plan), which included direction to improve the special event permitting process to make it simpler, faster, more predictable and more transparent. Staff began work on this in 2019, and - after a pause due to the COVID-19 pandemic - launched the revised permit application process in March 2023.
Staff worked closely with internal and external stakeholders to gather feedback and suggestions for the revised permit application. As part of this process, staff learned that challenges for special events included not just the permit application itself, but also a lack of clarity and consistency around funding, technical assistance, and other support for events.
This spring, during the public hearings and preparation of the Citywide Annual Budget, staff and the City Council also heard from the business districts representatives about the need for a formal process for the administration of a special events subsidy program.
Currently, the Master Fee Schedule requires a $750 deposit for a Special Event Permit to cover City costs across all departments. Additionally, departments have add-on fees for extra services charged on an hourly basis, more commonly involving Fire Department inspections and/or police staffing, and/or Public Works inspections.
The City has traditionally supported and subsidized special events in two different ways:
• Formal Subsidy of Special Event Permit Fees
City Council has chosen to formally subsidize special events by waiving the Special Event Permit fee ($750) for nonprofits, as included in the Master Fee Schedule.
• Informal Subsidy of Special Events through the Provision of Materials, Services and Technical Assistance
In the past, the City has also informally subsidized large, longstanding events in the following ways:
o Loaning, delivering and placing barricades and signage for street closures, including staff time required to carry out such activities.
o Providing event security and standby medical support in the form of on-site, dedicated Alameda Police Department (APD) and/or Alameda Fire Department (AFD) officers.
o Providing technical assistance on permit elements, including applying for Caltrans permits on behalf of applicants.
o Providing and placing waste receptacles at events.
o Waiving fees for tent permits and departmental add-on services.
In addition, the cost for staff across multiple departments to review and approve a special event permit for a large public function is often more than the “waived” $750 permit fee, meaning various departments are simply absorbing the staff cost within their respective department budgets. For large events, the value of this assistance can easily reach into the thousands or tens of thousands of dollars.
However, not all events received this assistance, and it is unclear how it was determined which events would be subsidized in this way. In an effort to treat all special events in a fair and equitable manner, and account for the true cost of the services and materials provided, many City departments have moved away from providing informal subsidies in recent years.
This has created a challenge for event organizers that previously relied on this assistance, as well as organizers of new events who were hoping for similar assistance. These organizers are typically nonprofit organizations or business associations.
DISCUSSION
In order to address this issue, staff recommends that a grant program be established to assist large, high-profile events with fees, services and materials the City has previously subsidized. This generally includes costs associated with City permits and requirements, with a focus on public safety, environmental stewardship, and direct services and fees.
Program Goals and Eligible Events
Staff recommends that this program be reserved for large, high-profile events held by non-profit organizations or business associations which meet at least two of the following program goals:
1. Enhance economic development;
2. Encourage inclusive community engagement; and
3. Promote a diverse range of arts and cultural experiences.
Staff also recommends that this program be limited to events which are held in the public right-of-way, and/or require direct City services on the day of the event, as these events tend to need the most assistance with permitting, City staffing and public safety costs.
In addition, staff recommends that program funds be reserved for event organizers that have a proven track record of complying with City rules and regulations at previous events. In practice, this means that event organizers will only be eligible to apply after they have held at least one successful permitted event in the City. New events hosted by new organizers would not be eligible until the second year of their event.
Funding Amount
Staff is recommending that the Fiscal Year 2023-24 General Fund Operating Budget be amended to appropriate $200,000 from the General Fund Residual fund balance to this grant program. Staff estimates that this amount will cover the costs previously subsidized by the City for 10 to 15 special events per year, at amounts ranging from $5,000 to $20,000 per event, depending on size. Administration of the grant program is intended as a pilot program; if successful, staff may request funding to continue the program in the future.
The grant program will be used to reimburse respective City departments for the costs of staff time, based on amounts established in the Master Fee Schedule for the Special Event permit fee and other staff services provided as further described below under Eligible Costs. The grant program will also be used to reimburse organizers for specific external costs, such as the development of traffic control plans and rental of traffic signs and barriers.
Selection of Events
Staff recommends that funding opportunities be distributed as follows:
• Up to three events per year for the Downtown Alameda Business Association (DABA). Examples could include the Art and Wine Fair and the Spring Festival.
• Up to three events per year for the West Alameda Business Association (WABA). Examples could include the Blues, Brews and BBQ, and Fiesta Alameda.
• Up to three events per year for the City of Alameda. Examples could include the Mayor’s Fourth of July Parade and Pride in the Park.
• All remaining funds would be distributed for additional community events held by nonprofits each year, selected through a competitive process based on established criteria and available funding.
This distribution reflects the economic importance of drawing local and regional foot traffic to Alameda’s downtowns, as well as the long-running informal support the business associations have received from the City for their flagship events. If the business associations do not have eligible events planned, they would be able to assign their grants to community events held within or adjacent to their district. An example would be if WABA does not have up to three large events then they could assign their allocated grants to their partner, West End Arts District.
After funding for eligible DABA, WABA and City events is determined, staff would open applications for additional community events.
Grant Process and Evaluation Criteria
The Façade Grant and Special Event Committee (which includes members from DABA, WABA, the Chamber of Commerce, as well at City staff) would review applications and, based on established criteria and available funding, select the additional events for the program.
This is an existing group that is experienced in working together and evaluating criteria. The composition of the group provides citywide perspectives and people experienced in creating and implementing large-scale community events.
Evaluation criteria may include:
o Clarity of the event’s nature, structure, vision and how well the event relates to the applicant’s mission, purpose and goals.
o How well the event demonstrates support of program goals:
§ Enhance economic development
§ Encourage inclusive community engagement
§ Promote a diverse range of arts and cultural experiences
o The organizer’s demonstrated capacity to plan safe and successful events.
o Evidence of diversified financial support and in-kind contributions and/or volunteer resources.
Eligible Costs
Given that this program is intended to assist event organizers with the cost of fees, services, and materials that the City has previously subsidized, staff recommends that the following costs be eligible for grant funding:
• Costs associated with pedestrian, bicyclist and driver safety, including development of a traffic control plan and rental of traffic control and no parking signs.
• Police security, standby paramedic presence, and other forms of APD or AFD assistance, as needed.
• Costs associated with meeting Zero Waste and Clean Water requirements.
• Staff time to review and process permits, provide on-site inspections or standby services.
• Any other specialized technical assistance on the permitting process or actual event.
Timeline and Administration
If approved by City Council, staff anticipate opening applications in early 2024, therefore, the budget resolution authorizes an amendment for one-time funding of the program in Fiscal Year 2023-24. The program would be administered by Base Reuse and Economic Development department staff.
The applications would be evaluated throughout spring 2024 and awarded to events occurring in FY 24-25 (July 1, 2024 through June 30, 2025). The funding needs to be allocated in advance so there is financial certainty when awarding the grants to organizations.
ALTERNATIVES
• Approve the establishment of a Community and Economic Benefit Special Events Grant Program as recommended.
• Approve the establishment of a Community and Economic Benefit Special Events Grant Program and direct staff to make changes to the program described with an example being the proposed allocation of grant awards.
• Direct staff to return to City Council with more information and/or a revised program.
• Do not approve the establishment of a Community and Economic Benefit Special Events Grant Program. Event organizers must pay for the entire cost of permit fees and staff services provided to facilitate the events, as determined by the Master Fee Schedule.
FINANCIAL IMPACT
This program was not contemplated as part of the FYs 2023-25 Biennial Budget process. Should City Council approve this program as presented, there is a need for City Council to adopt a resolution amending the FY 2023-24 General Fund Operating budget, authorizing an appropriation of $200,000 in General Fund residual fund balance.
|
Budget Request |
Revenue/ Expenditure |
Fund Number |
Fund Description |
Project Name |
Budget Amount |
|
New Appropriation Request |
Increase Expenditure Budget |
100 |
General Fund |
Special Events Grants |
$200,000 |
Special events that are opened to the public can have a positive fiscal impact on the City’s coffers by generating sales and use taxes and other tourism dollars.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the 2018 Economic Development Strategic Plan, which directs staff to improve the City’s special event permitting processes, and implement changes to make permitting simpler, faster, more predictable, and more transparent by 2020 (Action Item 10.2).
In addition, the Plan also directs staff to discuss opportunities to attract more special events to market the City (Action Item 6.4)
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACTS
By supporting event organizers in meeting the City’s Zero Waste and Clean Water requirements, this program has the potential to reduce the environmental impact of participating events.
RECOMMENDATION
Establish a community and economic benefit Special Events Grant Program to support events that bring economic, cultural and/or community benefits to the City and adopt a resolution amending the Fiscal Year 2023-24 General Fund Operating Budget appropriating $200,000 from General Fund Residual fund balance for the program.
Respectfully submitted,
Andrew Thomas, Interim Base Reuse and Economic Development Director
By,
Amanda Gehrke, Special Projects Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director