HomeMy WebLinkAbout05/06/1997, C4 - PROPOSED PROMOTIONAL COORDINATING COMMITTEE (PCC) GRANT-IN-AID TO MYSTIC KREWE OF KARNIVAL FOR THE MARDI GRAS PARADE council Malin.
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C I TY OF SAN L U IS O B I S P O
FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Wendy George,Assistant to the City Administrative Officer w�,
SUBJECT: Proposed Promotional Coordinating Committee(PCC) Grant-in-Aid to Mystic
Krewe of Karnival for the Mardi Gras Parade
CAO RECOMMENDATION
1. Approve the PLC's recommendation to give a grant-in-aid of$4000 to Mystic Krewe of
Karnival to partially offset Mardi Gras Parade costs.
2. Approve staff's recommendation to authorize the CAO to include language in the
agreement with Mystic Krewe of Karnival that grant funds will be released after parade
planning and funding issues are resolved.
DISCUSSION
PCC Recommendation
Each year the PCC makes grants to local non-profit organizations that promote programs of cultural
benefit to residents of the City or of tourism promotion advantage to the City. The granting cycle
begins in February and grants are finally issued effective with the beginning of the fiscal year in
July. Occasionally, requests come to the PCC outside this cycle and are considered for funding
from any remaining reserves,based on the merit of the request.
Over the past years, one of the recipients of PCC grants has been the Mystic Krewe of Karnival.
These grants have been used to partially offset the costs of the Mardi Gras parade. This year the
Krewe failed to submit a timely grant request due to a turnover in organization leadership. Many of
the co-directors resigned from the board,including the person who had submitted the grant.requests
in the past. Unfortunately, other members of the Krewe were not informed that the grant request
had not been submitted before the deadline occurred. New directors of the Krewe have quickly
picked up the reins of Mardi Gras, and one of their first actions was to present a $9,000 grant
request to the PCC. $4,000 of the request was to pay for half the cost of hiring additional deputy
sheriffs for parade security. The remaining was for funding the parade itself.
The PCC was concerned about the precedent that would be established by accepting a late grant for
the 1997-98 grant cycle. It also felt that using Enhanced Promotional funds was not appropriate for
this request, since it was neither for"seed money"nor for new or unique City promotional ideas.
Further, the PCC did not feel that it should be proposing the use of grant money to pay for
additional security personnel. However, the PCC is very supportive of Mardi Gras and recognized
the difficulty the Krewe faced with the rather abrupt change of leadership just when a grant request
should have been filed. As a result, the PCC felt that it was appropriate to recommend using the
remaining La Fiesta funds to support what has become another major City event, the Mardi Gras
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Council Agenda Report-Mystic Krewe of Karnival Grant Request
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Parade itself. There is currently$4,000 remaining of the La Fiesta funds.
Staff Recommendation
The PCC did not make its grant conditional in any way. However, staff believes that given the fact
that there has been a change in leadership within the Krewe and there are still many important
issues to be addressed before the parade is held, it is important to include some language in the
grant agreement which covers the City's concerns. Among these issues are questions about the
increased funding for additional police personnel needed for security. (The 1997-99 Financial Plan
includes a recommendation to allocate an added $8,000 to contract with the Sheriffs Depi:went
for additional police support, but with the expectation that this cost will be offset by added fund
raising by the private sector.) Other issues include the time of day when the parade is held, the
length of the parade route, sources for sufficient parade monitors and other security considerations
that may arise. Both the Mystic Krewe co-directors and the City recognize that putting together a
plan for the parade which covers these concerns is a normal step in the special events process.
Therefore, including language in the agreement requiring such a plan should not be onerous to
Mystik Krewe, but will provide the City with assurance that the grant will be used for a well-
organized, successful event.
CONCURRENCES
The Police Chief and Parks&Recreation Director concur with the staff recommendation.
FISCAL IMPACT
The PCC currently has $4,000 remaining in its budget which was carried over from the 1995-96
fiscal year in an encumbrance earmarked for La Fiesta It has become apparent that no volunteers
have stepped forward to continue La Fiesta and the PCC believes that the remaining $4,000 of this
encumbrance can now be allocated to the Mardi Gras parade.
The direct City cost of supporting the 1997 Mardi Gras parade was approximately $45,000, which
included a 1996 PCC grant of$4,300. Assuming the approval of the added $8,000 recommended
in the 1997-99 Financial Plan, the estimated cost of the 1998 event will be at least $53,000. As
previously reported, the UCSB Economic Forecast Project has estimated the gross added revenue to
the City resulting from Mardi Gras at only $7,900. On the other hand, the added benefit to local
businesses is estimated at $341,318. Therefore, it is reasonable for the City to ask that the added
cost of police support be generated through private sector fundraising. The expectation will be
further considered by Council during the impending Financial Plan review and adoption process.
Attachments
Letter from Mystic Krewe of Karnival
Minutes from April 9, 1997 PCC meeting
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MYSTIC KREWE OF KARNIVAL
P 0 Box 14408 `
San Luis Obispo CA 93406 s
4 April 1997 Le �Q y
4%04
Q
�
Natali Diggins, Chairperson 'C/i lgg� ti 1
Promotional Coordinating Committee hi �,• .
City of San Luis Obispo
990 Palm Street
San Luis Obispo CA 93401
Dear Ms. Diggins:
The Mystic Krewe of Karnival, a non-profit organization (documents on hand from prior years'
requests), sponsors of Mardi Gras in San Luis Obispo for the past 19 years, wish to once again
be considered by your Committee for a promotional grant. Due to an internal reorganization of
the Mystic Krewe we were not able to meet your deadline. However, a new Board of Directors
has now been elected, are in place, and are fully prepared to stage the 20th Annual Mardi
Gras Parade in San Luis Obispo.
Our Board of Directors know how vital your Committee is to the success of Mardi Gras. Your
past support has enabled the Mardi Gras Parade to grow into the largest public event staged in
our city. Last year over 25,000 local and out of town spectators enjoyed the Mardi Gras
Parade along Marsh Street.
By utilizing the knowledge gained over the past 19 years by working with the City and the
business community, the Mystic Krewe proposes to utilize PCC grant money solely for safety
measures along the parade route; before, during, and especially after the actual parade itself.
Past grants from your Committee enabled us to upgrade security along the parade route,
resulting in a much more enjoyable parade for everyone. The hard barricades along the parade
route permitted more motorized floats and an overall safer environment for both the parade
participants and the spectators.
We would like to be added to the agenda of your next meeting to explain our proposal and
answer any questions.
We are asking for additional funds this year ($4,000 more than last year) to offset one half of
the cost of 20 additional Sheriff's Deputys requested by SLOPD Chief Jim Gardiner. Chief
Gardiner feels that the size of the crowd and their activities downtown after the parade require
additional security personnel.
Please call me at either my office 546-9611 or my home 549-8159 to confirm that we have
been added to your agenda.
Sincerely,
Mark Jorgeso irecof rte`
Mystic Krew f Karnival
cc: Wendy George
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1 . The Project:
The 20th Mardi Gras Parade, on Marsh Street in downtown San Luis
Obispo. The proposed date of the 1998 Parade is Saturday, February 14th.
The actual time has not been finalized as yet. We are requesting additional
funds based on an evening parade which requires 20 additional Sheriff's
Deputys per SLOPD Chief Gardner. There is currently an ongoing discussion
with representatives of the downtown business community and the City as
to the feasibility of a daytime versus early evening parade.
The Mardi Gras in San Luis Obispo has grown over the past 19 years into
the largest public event in the City. We have received publicity in "Sunset"
magazine, "U.S.News and World Report", the Los Angeles Times, and many
other widely read publications. In the recent past Mardi Gras has not
publicized our events outside of this county in an effort to retain our focus
on local family entertainment. Publicity efforts have stressed the community
aspects of all the Mardi Gras events, including the Garden Street Fair, the
Parade, and the Masked Ball at the San Luis Obispo Veterans Hall.
2. Who Benefits?
The Mystic Krewe has always seen the entire community as benefitting from
Mardi Gras. A community comes together in both times of trouble and
times of joy. We focus on the joy of community and hopefully provide a
venue for community members to come together, meet their neighbors, and
celebrate the unique spirit of San Luis Obispo.
Tourists come to San Luis Obispo because we offer unique attractions.
Tourism is now our #2 industry. In a traditionally "slow" time of the year
(February/March), the Mardi Gras events provide an impetus for families to
come to San Luis Obispo.
3. Total Amount Requested:
Your Committee's past grants have enabled Mardi Gras to expand while
continuing its admirable safety record. That safety requires an increasingly
large police presence, plus additional hard barricades along the parade
route, and an effective "Post-Parade" disbursement plan. Towards these
ends, the Mystic Krewe of Karnival requests $9,000 from the PCC.
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The proposed expenditure of these grant funds would be:
A) Parade Monitors - training, identifying clothing (i.e., teeshirts),
post-parade debriefing and feed-back: $800.
B) Parade safety - hard barricades (rental and/or transportation of
barricades in excess of those currently owned by the City);
additional police support 4,200.
C) One half cost of 20 Sheriff's Deputys to assist with crowd
control (mandated by SLOPD Chief Gardiner). 4,000.
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TOTAL REQUESTED 59.000•
4. Detailed Budget (see attachment)
5. Crowd Control and Safety Plan
The main elements of our Crowd Control and Safety Plan are the use of rigid
metal barricades along the entire route of the parade; movable barricades
along surrounding streets and at intersections; trained Parade monitors
along the entire route of the parade and at outlying movable barricades;
contined close coordination with the City of San Luis Obispo's Police
Department as the lead agency in crowd control; plus 20 additional Sheriff's
Deputys to assist the SLO Police Department, along with publicity which
emphasizes the community focus -of the Parade.
6. The Board of Directors for the Mystic Krewe of Karnival are:
Mark Jorgeson, Director, 340 O'Connor Way, San Luis Obispo CA 93405
Phone: 549-8159 home; 546-9611 work
Don Pimentel, Director, 5140 Cabelleros, San Luis Obispo CA 93401
Phone: 546-8334 home
Marcia McGee, Treasurer, 2615 Meadow Street, San Luis Obispo CA 93401
Phone: 541-6297 home
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Mystic Krewe of Karnival
Pro Forma Budget 1997/98
Income
Parade
City of SLO PCC Grant $9,000.
Entry Fees 2,000.
Adopt-A-Parade 2.000.
Sub-Total $13,000.
BA
Ticket Sales $10,000.
Beverage Sales 1.750.
Sub-Total $11,750.
0th r Sources
All Krewe's Day $500.
Golf Tournament 1,000.
Other Fund Raising Events 6.400.
Sub-Total $7,900.
INCOME TOTAL
EXPENSES
Parade
Sheriff's Deputys $8,000.
Beads/Doubloons 3,000.
Insurance 1,800.
Permits/Licenses 500.
Parade Monitor expenses 800.
Street Cleaning 300.
Video 500.
Barricade costs 2,000.
Storage Rental 600.
Sub-Total $17,500.
Ball
Vets Hall Rental $1,000.
Music/Band expenses 2,500.
Sound/Lights 1,700.
Food 2,750
Decorations 200.
Clean Up 300.
Security 300.
Beverages 800.
Wrist Bands/Supplies 400.
Licenses 104
Sub-Total $10,050.
Promotion/Publicity
Posters/artwork $1,000.
Printing 1,500.
Postage 800.
Local Paid Advertising am
Sub-total $3,900.
Operating Expenses
Telephone, bank charges,
business license, etc. $1,200.
EXPENSE TOTAL $32.650.
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PROMOTIONAL COORDINATING COMMITTEE
DRAFT REGULAR MEETING MINUTES
April 9, 1997
Council Hearing Room, City Hall
San Luis Obispo, CA 93401
1. CALL TO ORDER
The meeting was called to order at 5:30 p.m. by Chairperson Natalie Diggins, with the following
members present: Sandy Baer, Pati Brown, Anne Cruikshanks, Carol Ann Lockary and Bill Pyper.
Wendy George served as staff. Also present were: Maggie Cox, Jennifer Best, Dave Garth, Jonni
Biaggini, Dodie Williams, Mark Jorgeson and Don Pimentel from Mardi Gras and Greg Goodwin,
EVC.
2. PUBLIC COMMENT
Jonni Biaggini of the VCB asked to clarify the VCB's position on the Cal Poly sports fields issue. She
stated that the VCB is not for or against the sports fields. Her comments at the recent Council
meeting only addressed concerns as to the source of funding for the fields.
3. APPROVAL OF MINUTES
The minutes were approved by acclamation.
4. REQUEST FOR MARDI GRAS FUNDING
Don Pimentel from the Mystic Krewe of Karnival began the Krewe's request for Mardi Gras funding
by recognizing that they were too late to meet the regular grant-in-aid funding cycle deadline. He
explained that this failure had occurred because there had been significant organizational changes
within the Krewe and that the individual who normally made the application had left the organization.
The Krewe was asking the PCC to consider a special grant in the amount of$9,000, $4,000 more
than the Krew s usual request due to the increased costs of hiring additional law enforcement
personnel. (The most recent grant-in-aid to Mardi Gras was actually in the amount of$4,300.)
Charlotte Alexander started the PCC discussion by asking how the requested money would be
funded and whether the PCC should be using promotional funding to support events that are not
directly promotional. Staff reviewed the funding options—reopen the grant-in-aid (GIA) funding for
1997-98, use existing Enhanced Promotional Funds, or utilize what is left of the encumbrance for La
Fiesta. Bill Pyper asked if this request was intended to be a late application in the GIA process. The
Mystic Krewe representatives indicated that was their intention. Natalie Diggins questioned how the
Mystic Krewe planned to find additional funding for increased law enforcement personnel in the
future. Mark Jorgesen responded that he has been in contact with the community looking for
community support for future years, but this year is transitional in the manner in which the parade
has been financed. Anne Cruikshanks added that the Mardi Gras parade was not planning anything
new this year, but that due to changes within the Mystic Krewe there is a need for support to
continue at this time. Pati Brown indicated that the GIA process is about seven-eighths completed
and to open the process would require reallocation of those funds. She was also concerned that
PCC grants do not fund personnel which is what the law enforcement portion of the request is.
Sandy Baer asked if there were any data suggesting that other cities in the County benefit from the
event and suggested that if they do, Mystic Krewe should approach them for funding also. Charlotte
Alexander felt that it was not appropriate to disrupt the GIA process at this time. Natalie Diggins
stated she would like to see Mystic Krewe receive the full amount requested, but only if they actively
and aggressively seek private funding. She also suggested that the $4,000 left over from La Fiesta
be redirected to Mardi Gras. Charlotte Armstrong warned that if the PCC were to allocate Enhanced
Promotional Funding, it must be with the caveat that this action is one time only. Sandy Baer
proposed that the Mystic Krewe should bring their request back after they have tried to do their own
fundraising. Pati Brown was very concerned that by approving the request the PCC would
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encourage other groups to go outside the grant process.
On a motion by Bill Pyper, seconded by Sandy Baer, the PCC unanimously approved giving the
Mystic Krewe the $4,000 in left over La Fiesta funds with the understanding that while the PCC
supports the Mardi Gras parade, the Mystic Krewe must build up its financial base and acquire
support from other private sources who benefit most from the parade.
5. REPORT ON ECONOMIC VITALITY CORPORATION
Greg Goodwin introduced himself and provided information on the history and purpose of the
Economic Vitality Corporation (EVC). The EVC was formed in 1994 from a recognition that the
recession had started to hurt the economic base in the County. The organization was established to
address this issue on a county-wide basis. The Corporation has three main goals: 1) To raise $3
million in three years which will be matched by banks to form a loan fund of$6 million. 2)Tq;`ocus
on business expansion and 3)To encourage business recruitment in the identified growth clusters of
value-added agriculture, technology and recreation and tourism. The EVC wants to help grow and
nurture small businesses. It is not in the business of tourism marketing, but it does want to help
investors to bring in resorts, hotels and golf courses to help tourism. Cuesta College has a small
businesses services center which will provide the management services to loan recipients.
6. UPDATE FROM GRANTS-IN-AID SUBCOMMITTEE
Subcommittee chairperson, Pati Brown reported that the new grant criteria is working well and things
are moving forward smoothly. The subcommittee has taken a first cut at funding and will be meeting
again on March 18'"to further refine the recommendations.
7. ACTION ON REQUEST BY THE LITERACY COUNCIL FOR INTERCULTURAL FESTIVAL
FUNDING
Charlotte Alexander expressed concern about the PCC taking action on the funding issue without
knowing whether or not the Literacy Council's board had endorsed the festival. Other members of
the PCC expressed concern about taking action without any representatives of the Literacy Council
being present to respond to questions.
On a motion by Bill Pyper, seconded by Sandy Baer, the PCC unanimously approved tabling this
item until the next meeting.
8. DISCUSSION REGARDING ENHANCED FUNDS
Natalie Diggins asked the members of the PCC if they wanted to pass out a notice to TOT payers
asking their support of full Enhanced Promotional funding for 1997-99. She suggested that each
PCC member approach a TOT payers in person and ask them to sign a petition to that effect which
would then be forwarded to Council. The PCC was unanimous in its support of this suggestion.
Natalie will develop the language for the petition and will be helped by Anne Cruikshanks in this
effort.
9. REPORT ON HIGHWAY 101 SIGNS
Staff reported that she had been unable to reach the engineer in charge of the project for a current
update. She will have information on the project's status at the next meeting.
10. REPPORT FROM CHAMBER OF COMMERCE
Jennifer Best from the Chamber reported that the Visitor's Center has started it new evening hours.
On Thursday there were 43 visitors during those times. On Friday there were 27 and on Saturday
36. This activity has occurred without the new hours even being promoted yet. The Chamber will be
putting out a press release about the new hours and also providing information to the hotels and
motels. Small World Productions was in town to film a segment of a PBS show called the California
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