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
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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
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'�����►'�►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
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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
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I
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F:fiesta
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�` Po51 Of ice box 1733 o San Luis Obispo, California 93406 o 805-543-171
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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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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
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