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HomeMy WebLinkAbout03/19/1991, 5 - CONSIDERATION OF A REQUEST BY LA FIESTA FOR $90,000 IN FUNDING OVER THE NEXT FIVE YEARS TO SUPPORT ACTIVITIES OF THE ORGANIZATION. IIIII�I 1101111111 r pM N SATE: ci o san lues oBiso COUNCIL AGENDA REPORT ITEM NUMBER: FROM: John Dunn, City Administrative Officer Prepared By: Deb Hossli, Administrative Analyst' SUBJECT: Consideration of a request by La Fiesta for $90, 000 in funding over the next five years to support activities of the . organization. CAO RECOMMENDATION: Approve the phased funding program for La Fiesta to provide financial assistance over the next five years as described in this report. DISCUSSION: Backcrround In October of 1989, the La Fiesta Board of Directors approached the City with concerns about the future of Fiesta. Board representatives explained that La Fiesta had grown so large and become so popular with the community, that it was no longer feasible to rely solely on volunteers to coordinate the event. The Board representatives felt that without assistance from the City and business community, they may not be in the position to sponsor future Fiestas. In response to this, the City convened a meeting of representatives from the La Fiesta Board of Directors, City Council, Chamber of Commerce, Business Improvement Association and other local services clubs. The purpose of the meeting was to fully identify the needs of La Fiesta and determine what assistance the group could provide. During the meeting, consensus was reached on several key issues: * La Fiesta should remain a community sponsored event as opposed to a City sponsored event. * La Fiesta was in need of some level of paid staffing support. * That any staff provided should have strong fundraising and organizational skills. At the conclusion of the meeting, La Fiesta representatives agreed to prepare a proposal that identified their support needs, along with a detailed organizational and financial plan for becoming self-sufficient. The group emphasized to the La Fiesta representatives that any request for funding would have to be accompanied with a well thought out plan for becoming self- supporting. Without this, the group's current efforts would not result in any long-term benefits to La Fiesta. La Fiesta's proposal was subsequently presented to the Council in January of 1990. In summary, the proposal included a request for $35, 000 in 1990 and $43, 300 in 1991 for staffing and ancillary equipment needs. The group anticipated that funding assistance ���,�„►i�r�►lilililiPi° ��U►U city of san L-WS oB1spo RENEW COUNCIL AGENDA REPORT may be needed in 1992, however, they would not be able to accurately project these needs until a full year of operation had, elapsed. Due to timing constraints, however, La Fiesta was not able to provide the organizational and financial plan with the funding request. After discussing La Fiesta's proposal, the Council provided the group with a $25, 000 grant to hire a full-time administrator for the event. As a condition of receiving the grant, the Council required La Fiesta to prepare the previously agreed to organizational and financial plan. Once completed, the plan would be reviewed by City staff and serve as the basis for future year funding needs of the organization. Organizational and Financial Plan La Fiesta submitted an organizational and financial plan to the City in the latter part of 1990. The plan (see Attachment One) is composed of three basic components: i I. Streamline Existing Events It is La Fiesta's intention to evaluate each activity provided during the Fiesta and identify areas where cost savings can be achieved and revenue levels enhanced. To date, La Fiesta's executive director has already made changes to the parade, E1 Presidente Ball, and media mixer that will result in several thousand dollars of savings during the 1991 Fiesta. i II. Expand Revenue Base La Fiesta is planning to expand its revenue base through applying for grants, obtaining corporate, commercial, and individual sponsorships, sponsoring two fundraisers per year, and increasing fees for participating in events (e.g. , arts and crafts booth fees, etc. ) . Progress to date with expanding the revenue base has been good. With respect to grant funding, Fiesta has a listing of grants they intend to apply for over the next year once the organization receives formal notification of their federal non-profit I.D. number. In addition, the executive director intends to generate nearly $10,000 in sponsorships for the 1991 Fiesta. Fundraisers are planned for May and October of this year. The executive director has also implemented several changes to the fee structure for participating in events that will generate additional revenue. III. Expand Board and Committee Member Base for Organization In order to expand the volunteer base for the event, La Fiesta plans to revise its by-laws and solicit volunteers from diverse J� '�����►'�►miIlllfillU� gI81'il city of San _ AS osispo COUNCIL AGENDA REPORT sources, such as service organizations, schools, business community and general public. The executive director expects to have the by-law revision completed by Spring of 1991. In addition, the executive director already has spoken to, or will be speaking to in the very near future, every major service organization in the community to solicit support for La Fiesta. Under the direction of the organizational and financial plan, La Fiesta expects to achieve financial independence by 1994-95. Attachment Two summarizes their proposal which requests $90,000 from the City over the next five years (this includes an annual i $5, 000 grant from the Promotional Coordinating Committee's (PCC) Grants-In-Aid Program) . Specifically, La Fiesta is requesting the following amounts: i 1990-91 1991-92 1992-93 1993-94 1994-95 Total City Grant: $25,000 $19,000 $13,000 $ 7,000 $ 1,000 $65,000 i PCC Grant: $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $25,000 Total: $30,000 $24,000 $18,000 $12,000 $ 6,000 $90,000 Est Surplus: $ 6,480 $ 6,930 $ 9,140 $ 9,550 $ 9,745 $41,845 i Staff Analysis of Funding Request Staff has reviewed the funding request in detail with La Fiesta and concluded that the projected expense estimates for the next five years reflect sound assumptions. The projected revenue estimates (which include annual contributions from the City) , however, will j generate an annual surplus ranging from $6,480 in 1990/91 to nearly $10, 000 by 1994/95 for a total of $41,845 over the next five years (see fourth row of above highlighted chart) . This type of excess revenue generation implies that the City's contributions could be reduced by $41, 845 over the next five years and still allow La Fiesta to achieve financial independence. It is also important to note that La Fiesta has access to a money market account of nearly i $10, 500. Recommendation I While staff is very encouraged by the progress that La Fiesta has made with implementing their organizational and financial plan, staff cannot support a recommendation that provides La Fiesta with $90, 000 and creates a $41,845 surplus for the organization over the next five years. Staff does recommend, however, that in light of La Fiesta's progress toward creating a self-supporting organization and the community benefit received from the event, the City provide La Fiesta with a phased funding program. Under this approach, staff is recommending that La Fiesta receive contributions from the City of $15, 000 in 1991 and $8, 000 in 1992 i (for a total of $23 , 000) . The group would also be encouraged to 2 MY of sa►n %AIS osIspo mammon COUNCIL AGENDA REPORT apply for an annual PCC grant of $5, 000 over the next five years (the Council has already approved a $5, 000 grant for the 1991 Fiesta) . Over the five year period, the City would provide La Fiesta with the approximate difference between the total funding requested by La Fiesta ($90,000) and the surplus projected to accumulate by 1994/94. ($41,845) . i Staff does recognize that under the recommended approach for funding, it will be a greater challenge for La Fiesta to reach self-sufficiency by 1994/95. Fewer dollars are being provided and there are no guarantees that the organization would be successful in receiving PCC grants annually. However, from the beginning of this process, the City has emphasized that achieving financial self-sufficiency in the shortest time-frame possible, is a high priority. FISCAL IMPACT: Under the funding approach recommended by staff, the City would appropriate $23, 000 ($15, 000 in 1991 and $8, 000 in 1992) for La Fiesta in the 1991-93 Community Promotion Budget. Both grants could be made available to La Fiesta in July of .each year. La Fiesta would then apply annually for a $5, 000 grant from the PCC's Grants-In-Aid Program to obtain the balance of $25, 000 needed to become financially self-sufficient by 1994/95. It is important to note that La Fiesta has traditionally been successful in securing funding from the PCC's Grants-In-Aid process. Since 1986 the group has received the following grants: 1986-87 - $3, 620; 1987-88 - $3, 620; 1988-89 - $5,000; and 1990-91 - $5,000. (The group did not request funding in 1989-90. ) i ALTERNATIVES: i I I. Provide full funding of La Fiesta's request for $90, 000. Under this approach, La Fiesta would be in the position to reach financial self-sufficiency by 1994/95 and have a substantial reserve in place to guard against any future uncertainties associated with sponsoring the event. As fully explained in the report, staff would not recommended this approach. While La Fiesta is clearly an event that the City is supportive of, funding in excess of staff 's recommendation would merely be used to create a surplus reserve for the organization. Given the future fiscal constraints that face i the City, it does not seem prudent to fund in excess of their base-line needs. II. Do not provide any funding to La Fiesta beyond the annual PCC's Grants-In-Aid Program. s- r�livll�►i�lilillllilll�10 IIIIII city of San . AS osIspo _ COUNCIL AGENDA REPORT Under this alternative, La Fiesta could continue to compete for funding through the PCC's annual Grants-In-Program. While this is a feasible approach, it is not recommended. La Fiesta has worked very hard to develop a plan for financial self sufficiency. To provide significantly less than their projected needs could jeopardize the future of the event. I CONCURRENCES: Staff has worked with La Fiesta over the last several months to review and refine the organizational and financial plan. Staff was j very encouraged by La Fiesta's progress with implementing the plan and initially felt that it would be possible to develop a mutually agreed upon recommendation for City funding. City staff viewed the organizational and financial plan as a starting point for developing future year funding recommendations. La Fiesta, however, was very clear in communicating that their proposal represented the organization's minimum funding needs. Therefore, La Fiesta is not in agreement with staff's recommendations for funding. ATTACffiCENTS I I 1 - Organizational and Financial Plan 2 - Expense and Revenue Projections for Organizational and Financial Plan i I i I I F:fiesta e 5 adt5dnLui5Oti5po �` Po51 Of ice box 1733 o San Luis Obispo, California 93406 o 805-543-171 � O —J ORGANIZATIONAL AND FINANCIAL PLAN Fiscal Years 1990 - 1995 Celebraled annuallq on the third weekend in aQ ATTACHMENT 1 ��EL��.��Ql'aanizatip•rL�,_$ Financial P1��, Throughout the fifty year history of La Fiesta , the week long event celebrating San Luis Obispo ' s Spanish heritage has been managed solely by volunteers . These tireless volunteers are predominately comprised of Board and Committee members . Other volunteers are from various service organizations throughout the community . Prior to 1990 , records , files , historical memorabilia , message phone , etc. , were kept in the homes of Board members . ?n 1990 , Mid-State Bank ( Broad Street Branch ) generously donated office space for La Fiesta. The office has been equipped through donations from the City . Board members , and other individuals . The growth of the event prompted Board members to seek financial assistance from the City , in order to hire an Executive Director. The Director ' s responsibilities are to coordinate the entire event , including establishing and monitoring a budget , fundraising , grant writing and acting as Fiesta ' s spokesperson . During the year the Director will address various organizations to solicit volunteers and financial assistance for the event. With a full time Director hired and an office established , Fiesta' s goals are to become financially self-sufficient , increase the volunteer base , and expand community awareness of San Luis Obispo ' s cultural heritage . While La Fiesta is still primarily a local cultural event , the City derives considerable benefits , both from financial and public relations perspectives . - 1 - Following are goals and objectives for the next five years : I . Streamline Current Events a) Evaluate all events II . Expand Revenue Base a) Grant monies b) Sponsorships 1 . Corporate 2 . Commercial ? . individual c ) Fund raising :vents 1 . Two special events per year d) Increase rates for Arts & Crafts 1 . effective 191 ( $5 increment ) 2 . additional increases every 2 years e ) Establish parade entry fee 1 . $5 - $50 ( non-profit - major corporations ) III . Increase number of volunteer Board and Committee member; a) Establish areas of responsibility 1 . Revision of by-laws b) Solicit volunteers from diverse sources 1 . Service Orgainizations 2 . School System 3 . Business Community 4 . General Public - 2 - J f0 IV . Expand Artisti ,:/Cultural Presentations a) Solicit : sSiStance from community sources 1 . Cal Poly 2 . Cuesta 3 . Museums 4 . General Public b ) .Solicit outside assistance 1 . Santa Barbara Fiesta 2 . Gilroy Garlic Festival V . Improve Community Awareness/Education a) Brochure/program - include historical information b ) Develop cultural & heritage presentation for elementary schools VI . City Financial Support a) Reduce amount each year , beginning FY 91 -92 b) Promotional Coordinating Committee grant - 3 - �-9 LA FIESTA Update to 10/29/90 Organizational & Financial Plan Please refer to outline: I. Streamline Current Events a) Evaluate all events I. La Fiesta Parade - we are currently negotiating with Joann Upton in regard to being a paid Coordinator for the '91 parade (Joann has coordinated the Christmas Parade the past 15 years, and for a number of years worked on the La Fiesta Parade); this would be a contract position. The Parade is one of the biggest expenses, by contracting locally it will reduce the cost and make it more of a community supported event (purchase awards locally vs. from Southern California). 2. El Presidente Ball - this event may be cancelled for '91 (the El Presidente Dinner will still take place), with the hope of making revisions/improvements and reinstating this event for Fiesta '92. If the event is cancelled a concert (cultural entertainment/dance) would take its place. 3. Media Mixer - recently this had become more an expensive event (buffet, entertainment, etc.) then an effort to inform the media of upcoming events and to introduce the Queen Contest- ants. This year the same information will be presented at a press conference with light refreshments available. These are a few areas where major changes will be takina place. We are evaluating all events and taking steps to improve the overall quality to ensure that Fiesta continues to be a successful community event. 11. Expand Revenue Base a) Grant monies I. Currently we have our state non-profit I.D. number, and are now beginning the process of obtaining our Federal I.D. number. Most grants are given to those that have a 501(c)(3) status. Once we've established a 5O1(c)(3) status we will submit grant proposals to the following: Sears-Roebuck Foundation; Pacific Gas & Electric, Contributions Program (also soliciting for local sponsorhip); Wells Fargo Foundation (also soliciting for local sponsorship); Anheuser-Busch Foundation; Coors (Adolph) Company; Price Waterhouse Foundation; American Express Philanthropic Program. s/0 b) Sponsorships 1. We are in the process of soliciting from local corporations, SLO County businesses, and individuals. The following information is a breakdown of sponsorship dollars we propose to raise: Queen Contest $ 800 Entertainment $3300 Buttons $1000 T-Shirts $ 1000 Parade $2500 Advertising 1000 TOTAL $9600 c) Fund raising events 1. April/May '91- selling at Thursday Night Activities/Farmers' Market; May 5th (Cinco de Mayo) - wine tasting event to benefit La Fiesta; October - silent auction, which we will tie in with the theme and design contest. Ill. Increase number of volunteers a) Establish areas of responsibility 1. Revision of by-laws: proposed completion date of 1/3 1/91 b) Solicit volunteers from diverse sources 1. Staff and current members are speaking to local service organizations (not in December as most have holiday programs), the business community, and individuals. 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I"h '�h'dh=1a, I 1 Attachment 2 MEET G ATE: I���h�i ►u�lllll►IIIIIgIIIIII city of San tins OBispo 17 COUNCIL AGENDA REPORT IT �N BER From: John Dunn, City Administrative Office Subject: Senate Bill 27 CAO Recommendation: Authorize the Mayor to send a letter opposing Senate Bill 27 which proposes to reduce the number of signatures required for initiatives to amend charters. Discussion: Senator Kopp is currently sponsoring Senate Bill 27 which proposes to reduce the number of signatures required for charter amendments by initiative. Currently, initiatives to amend city charters require 15 percent of registered voters. Senate Bill 27 proposes to lessen the signature requirement. Only 15 percent of those voting for Governor in the last election would be required. The League of California Cities is urging cities to oppose this legislation for the following reasons: 1. A city's charter is, in effect, its constitution. Given the charter's importance to a City, it would be highly inappropriate to require fewer signatures to amend it. 2. It is feasible that, under the proposed legislation, fewer signatures could be required to amend a city charter than to qualify an initiative or referendum for the ballot. From the City of San Luis Obispo' s perspective, this is not good public policy. j 3. Finally, it is inappropriate to create different methods for determining petition signature requirements in cities (as proposed in the legislation) . A common method for citizen sponsored ballot measures would be less deceptive and confusing to the electorate. Concurrences: Staff concurs with the League's analysis of Senate Bill 27 and recommends that the Mayor be authorized, to send a letter to our State Senate representative. JD:mc Attachments March 19,1991 Honorable Senator Maddy State Capitol Room 5087 Sacramento, CA 95814 Dear Senator Maddy: The City of San Luis Obispo strongly opposes Senate Bill 27 which proposes to reduce the number of signatures required for charter amendments by initiative. The City opposes the legislation for the following reasons: 1. A city's charter is, in effect, its constitution. Given the charter's importance to a City, it would be highly inappropriate to require fewer signatures to amend it. 2. It is feasible that, under the proposed legislation, fewer signatures could be required to amend a city charter than to qualify an initiative or referendum for the ballot. From the City of San Luis Obispo's perspective, this is not good public policy. 3. Finally, it is inappropriate to create different methods for determining petition signature requirements in cities. A common method for citizen sponsored ballot measures would be less deceptive and confusing to the electorate. The City of San Luis Obispo strongly urges you to oppose this legislation. Please feel free to contact me at (805) 549-7111 if you have questions regarding this request. Sincerely, RON DUNIN Mayor RD:JD:mc . League ofRCalifornia9Cities 1400 K STREET 9 SAC ,CA 95814 e6 i■�� 444-5790 California Cities ^C; F y Work Together [' 1 5 1991 Sacramento, CA March 7, 1991 CITY CLERK TO: Mayors, City Managers, and City Clerks in Charter Cities FROM: Clark Goecker, Assistant Director SUBJECT: Charter Amendments by Initiative - SB 27 (Kopp) URGENT OPPOSITION Your immediate attention is required to defeat legislation Senator Kopp has once again inad odifying signature requirements for charter amendments by initiative. Santially reduces the number of signatures required to qualify a charter aby initiative. Currently, initiatives to arnend the charter require 15 percent of d voters. B 27 would require 15 percent of those voting for all candidates for the last election (a number of which, unfortunately, is decreasing each year). Seard in the Senate Committee on Elections and Reapportionment on Warch 6. As was the case last year with SB 1785, the Senator argues support ohistion, not on the merits of the bill, but rather that the Legislature was not its staff of "hidden provisions" in the 1988 legislation. The 1988 legislation referred to by Senator Kopp was the result of a two year study on the part of city clerks and city attorneys from charter cities to clean up conflicting and overlapping provisions in both the Government Code and the Elections Code relative to city charters. The League's goal in supporting this legislation was to ensure that both the electorate sponsoring charter amendments and those officials responsible for conducting elections clearly understand the statutes as they pertain to the establishment of charter commissions, amendments by initiative and to make consistent the timeframes relating to charter amendments with the existing Election Code provisions. It is important for city officials to immediately contact their Senators offering compelling reasons relative to the substance of the proposed legislation. Some arguments for opposing SB 27 are: 1) In all but a few charter cities, the signature requirement for an initiative or referendum has historically been 10/15 percent of "registered voters" unlike counties or the State which base their threshold on "votes cast" in the last OVER . . . . . . election It is not good public policy for an initiative to_amendthrr's charter requiring fewer signatures xhanan.initiativereferendum to approve or overturn an finance. 2) Nor, is it a good public policy for there to be different methods for determining petitions signature requirements in cities. It is confusing and deceptive to the electorate who should have a common method for citizens sponsored ballot measures. 3) The city's charter is, in effect, the city's constitution. And, as with the State Constitution, a higher signature requirement may be appropriate to modify the Constitution/charter than required for an initiative to adopt a statutes/ordinance. Certainly, a lower signature requirement is not appropriate. Finally, as occurred last year, a wide assortment of grassroots organizations will support this legislation. Therefore, it is important now to personally discuss SB 27 with your Senator to obtain his commitment to oppose SB 27 on the Senate floor. Also, if your local newspaper shares your concerns for this measure, it will be helpful if the newspaper editorializes against SB 27. Should you have any questions regarding this important measure, please feel free to call me in the Sacramento office of the League at 916/444-5513, extension 238. L:\leg\ms\sb27.mmo Alk i. c