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HomeMy WebLinkAbout55C - RESO - COUNCIL SPONSORSHIPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 4, 2015 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED n RESOLUTION TO ESTABLISH A CITY n COUNCIL SPECIAL EVENT SPONSORSHIP n n POLICY AND GUIDELINES FOR DISBURSEMENT OF DISCRETIONARY FUNDS (STRATEGIC PLAN NO. 5, 4) ri?wf.2 bs- CITY MANAGER RECOMMENDED ACTION As Recommended As Amended Ordinance on 18' Reading Ordinance on 2nd Reading Implementing Resolution Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution to establish a City Council special event and program enhancement sponsorship policy and guidelines for disbursement of discretionary funds. DISCUSSION At the June 2, 2015 meeting, City Council directed staff to amend appropriate ordinances, develop a resolution (Exhibit 1) and implement a policy (Exhibit 2) that supports an annual funding of $10,000 to each Councilmember to support special events and programs produced by neighborhood associations and other approved nonprofit entities. Additionally, at the July 7, 2015 meeting, City Council approved the first reading of the ordinance amending Santa Ana Municipal Code Chapter 10 of the Special Event reimbursement and sponsorship section (NS- 2879). Contingent upon the adoption of the second reading of the ordinance amendment, placed on the August 4, 2015 City Council agenda, this resolution and policy outline the eligibility criteria for neighborhood associations and eligible nonprofits necessary for consideration of City Council sponsorship. Approval of this item would allow each Councilmember to appropriate up to $10,000 per fiscal year to support eligible organizations. However, neighborhood associations that are not eligible will have the ability to use this funding allocation to use in -kind funding for city services, such as staff overtime, city fees, etc. Eligible applicants may request sponsorship donation by submitting a written proposal (Exhibit 3) to the City Council detailing the event/project proposal, level of funding being requested, the community benefit from this proposal and the organization's information. 55C -1 Council Special Events Sponsorship August 4, 2015 Page 2 Councilmember recommendations are then proposed to the entire Council for approval of the Donation Agreement (Exhibit 4). STRATEGIC PLAN ALIGNMENT The activities covered by this report support the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). FISCAL IMPACT Funds in the amount of $70,000 to support the City Council Sponsorship Policy are available in the FY 2015/16 Budget, Neighborhood Initiatives Program Miscellaneous Operating Expenses account (no. 01118820 - 63001). Kelly Reegefe'" LJ gk� Executive erector Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Fra cisco Gutierrez 5P' Executive Director Finance and Management Services Agency Exhibits: 1. Resolution 2. City Council Sponsorship Policy 3. Sample Donation Request Form 4. Sample Donation Agreement 55C -2 RESOLUTION NO. 2015 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING A CITY SPECIAL EVENT SPONSORSHIP POLICY AND GUIDELINES FOR DISBURSEMENT OF DISCRETIONARY FUNDS WHEREAS, when the City has funds available for allocation to qualified nonprofit organizations or leaders of recognized City neighborhood associations that actively and effectively enhance the quality of life for Santa Ana residents and businesses; and WHEREAS, the purpose of this policy is to establish a procedure for community groups to request an appropriation of available funds, when the City Council has allocated funding for this purpose; and WHEREAS, The City Council will consider requests for financial assistance from eligible nonprofit organizations that are tax - exempt under Section 501 (c) 3 of the Internal Revenue Code or leaders of recognized City neighborhood associations; and WHEREAS, due to limited resources, not all requests may be funded, in whole or in part. It is the City Council's intention to evaluate each request and, based upon available funds and the merits of each request, provide funding to those organizations that address City priorities as determined by the City Council; and WHEREAS, City funding is intended to fund special events and program enhancements; and WHEREAS, the City Council will determine the level of program funding available during the annual budget process; and WHEREAS, each City Councilmember will nominate up to $10,000 in grant awards or reimbursement funding under Section 10 -22.13 of the Santa Ana Municipal Code to qualifying nonprofit(s) and neighborhood associations for City Council approval throughout the year; and WHEREAS, during an election year, each Councilmember may spend no more than half of the allocated amount prior to December 3161; and WHEREAS, disbursement or use of funds to eligible non - profit organizations and neighborhood associations is subject to the approval of the City Council at its sole and absolute discretion; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: EXHIBIT 1 Resolution No. 2015 -XXX 55C -3 Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: 1. The City Council adopts the City Special Event and Co- Sponsorship Policy attached hereto as Exhibit 2. 2. Neighborhood Associations and /or non - profit entities submit a Donations Request attached hereto as Exhibit 3. 3. Non - Profit entities that are awarded direct financial assistance shall execute a donation agreement in substantially the form attached as Exhibit 4, prior to receiving the disbursement of funds. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of , 2015. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN NOT PRESENT: Councilmembers: Councilmembers: Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY Resolution No. 2015 -XXX 55C -4 I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Resolution No. 2615 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Maria D. Huizar, Clerk of the Council EXHIBIT 1 Resolution No. 2015 -XXX 55C -5 55C -6 City Council Special Event Sponsorship Policy Adopted on August 4, 2015 Purpose This policy governs the approval of sponsorships of the City of Santa Ana and city programs and services by external entities. Pursuant to this policy, the City will consider entering into sponsorship agreements that further the City's mission by providing monetary or in -kind support for City programs or services. However, the City recognizes that the public trust and perception of its integrity and impartiality may be damaged by sponsorships that: (a) establish, or are perceived as establishing an inappropriate association; (b) or are perceived to be politically oriented; (c) are offensive to segments of its citizenry; or (d) are aesthetically displeasing. When the City loses public trust and public perception of integrity and impartiality, its ability to govern effectively in the interest of its citizens is impaired. Therefore, the City will only consider sponsorships in limited circumstances as a means to generate funds or in -kind support for improving or expanding City programs and services. Eliaibility Criteria In considering whether to accept a proposal for consideration of co- sponsorship, the City shall consider the following non - exclusive criteria: • Whether the expenditure is normal and customary • The relationship and importance of the event to the City's mission • Whether and the extent to which the event furthers one or more of the City Council's adopted focus areas • Whether and the extent to which the event will create financial or administrative burdens on the City, or require additional personnel • The extent and prominence of communications to the public regarding the event • Whether the sponsorship will establish, or will be perceived as establishing an inappropriate association • Whether the event is, or will be perceived to be politically oriented • Whether the event is, or will be perceived to be religiously oriented • Whether the event is, or will be perceived to be offensive to segments of the City's citizenry • The aesthetic characteristics of communications to the public regarding the event • Whether the person(s) or organization(s) affiliated with the event manufactures products, takes positions, or otherwise engages in activity that is inconsistent with local, State, or Federal law, or City policies, City mission, or Council's focus areas • Other factors that might undermine public confidence in the City's impartiality or interfere with the efficient delivery of City services or operations. Consistent with the foregoing criteria, the following are ineligible for co- sponsorship: • Entities that promote the sale or consumption of tobacco products • Entities that promote the sale or consumption of illegal drugs • Entities that promote gambling • Entities that promote the sale or consumption of alcoholic beverages, or that primarily sell alcoholic beverages such as bars, but not including restaurants • Sexually oriented businesses as defined in Chapter 41, Article XVII of the City Code, and entities that promote the sale or dissemination of erotic materials or services • Political parties or political advocacy groups • Inappropriate expenditures such as sporting events, alcohol or jewelry EXHIBIT 2 Page I 55C -7 Neighborhood Associations City- recognized neighborhood associations would be eligible for co- sponsorship in the form of a direct payment, or as in -kind funding that would be used for city - provided services, in order to avoid placing a tax burden on one individual or neighborhood leader in associations where an "entity" has not been recognized by the Internal Revenue Code. The respective neighborhood association may use the credit for the following purposes, and have the flexibility to apply the payment entirely to one event, or proportionally based on the number of expected events. The credit must be used within the same fiscal year. City Council co- sponsored event payment can be applied to the following: • The cost of the special events permit fee. • Facilities and equipment owned by the City. • City staff time, if required, including Police Department staff services. • Liability insurance fee. • If street barricades are required, and city staff can support these efforts, standard rental fees and staff time charges associated with street barricades. Nonprofit Organizations Qualifying nonprofit organizations must be incorporated as a nonprofit charitable organization that is tax - exempt under Section 501(c) 3 of the Internal Revenue Code. Donation requests would need to clearly outline how the funds address City priorities and determined by the City Council. Eligible applicants may request grant funds by submitting a written proposal to the City Council detailing the: a. Project proposal b. Level of funding requested c. Community need d. Organization's Background EXHIBIT 2 55C -8 Page 2 (Name: Address: (City, State Zip: '.... Email: City of Santa Ana Donation Request # r Reference this # on all ll related DPVs Donation Request -- !Tax- Exempt Status: Is your organizationanon -prof[ or public tax - exempt organization as defined under Section 501(c)(3) of the Internal Revenue !Code? Select One: Yes No If No, you will only qualify fora credit for City- related costs for your request. i.e. permit fees, staff time, rental rates for facilities or equipment. If Yes, _.... Requested: Description of Event/Purpose: i (Location: i !Event Date: Time: iDate Donation Needed: Community Benefit pplicant ignature Date', Council Meeting Date: ity Manager Signature: EXHIBIT 3 Not Approved 55C -10 CITY OF SANTA ANA DONATION AGREEMENT Page 1 of 4 CITY OF SANTA ANA DONATION AGREEMENT WITH [INSERT NAME] 1. PARTIES AND DATE This Donation Agreement ( "Agreement") is entered into on [INSERT DATE] by and between the City of Santa Ana, a municipal corporation ( "City ") and [INSERT NAME], a California [INSERT TYPE OF LEGAL ENTITY] ( "Recipient "). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit. The City wishes to provide Recipient with funding to assist Recipient in [INSERT DESCRIPTION OF COMMUNITY BENEFIT] ( "Community Benefit"). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding. 2.2 Public Purpose. The City believes there is a public purpose in supporting the Community Benefit because it will [INSERT DESCRIPTION OF PUBLIC PURPOSE TO BE GAINED FROM THE COMMUNITY BENEFIT]. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit. 3. TERMS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with [INSERT WRITTEN DOLLAR AMOUNT] ($[INSERT NUMERICAL DOLLAR AMOUNT]) because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terns of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3.2 Term: Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect unless and until terminated by the City. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all funds provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10 %) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.3 Waivers Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, EXHIBIT 4 55C -11 CITY OF SANTA ANA DONATION AGREEMENT Page 2 of 4 the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver /release protections. This right shall be on -going and may be implemented by the City at any time, and all insurance and waiver /release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious trauma or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient' own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Recipient' obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers. The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The terms and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Parry warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. EXHIBIT 4 55C -12 CITY OF SANTA ANA DONATION AGREEMENT Page 3 of 4 CITY OF SANTA ANA By: City Manager Attest: By: Clerk of the Council Approved as to Form: By: City Attorney EXHIBIT 4 55C -13 CITY OF SANTA ANA DONATION AGREEMENT Page 4 of 4 [INSERT NAME OF RECIPIENT] a [INSERT TYPE OF LEGAL ENTITY] By: Signature Name Attest: By: Title Signature Name Title Approved as to Form: By: City Attorney EXHIBIT 4 55C -14