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HomeMy WebLinkAbout8.2 Performing Arts Grant Funding AGENDA STATEMENT CITY OF HERITAGE AND CULTURAL ARTS COMMISSION DUBLIN MEETING DATE: May 8, 2014 SUBJECT: Performing Arts Grant Funding Prepared by Ann Mottola, Heritage and Cultural Arts Manager ATTACHMENTS: None RECOMMENDATION: Receive report and recommend to the City Council the preferred method(s) of funding Arts Grants, if any FINANCIAL STATEMENT: None DESCRIPTION: During the 2013 Human Services grant cycle, significant community interest by regional arts groups in grant funding from the City of Dublin prompted the City Council to ask Staff to investigate methods of potentially funding Performing Arts Grants, including exploring the option of using the Public Art Fund for that purpose. Staff has explored several options in response to Council's request, as well as recommendations for a potential grant program that might be developed in the future. Funding Options • Public Art Fund After considerable research by the City Attorney's Office, Staff does not recommend that the Public Art Fund should be considered as a funding mechanism for a grant program. The City Attorney's opinion concluded: "The City's Public Art Ordinance and Master Plan both clearly tie the purpose of public art fees to physical beautification in the City. The California courts have determined that this type of fee program is a legitimate use of a city's power, because they are similar to typical land use regulation of the look and feel of development. Because funds already collected by the City were collected for the purpose of acquiring tangible art, the fees must be utilized solely for those purposes. Although the City has the power to modify its Code and Master Plan to allow for non-tangible arts grants, the change would essentially transform the fee into an "exaction" that would be subject to the more stringent "reasonable relationship test."This COPIES TO: ITEM NO: 8.2 G:\COMMISSIONS&COMM ITTEES\HE RITAGE COMMISSION\AGNDSTMT\2014\05-08-14 Item 8.2 Performing Arts Grant Funding.docx would potentially expose the City to substantial legal risk should a developer choose to oppose the fee." In light of the City Attorney's opinion, Staff has developed several potential funding mechanisms. Should the City Council direct Staff to implement a grant program, Staff recommends consideration of fbe following elements of the program: the grants are not limited to performing arts, but are accessible for visual arts and other cultural programs that could potentially serve the Dublin community; and Programs funded or supported through grants take place wholly in the City of Dublin Community. Additionally Staff would recommend that a target budget threshold be achieved before granting of funds. • Funding Campaign A potential option for funding is to create a local fund-raising campaign inviting residents to contribute on a voluntary basis, with a recommended minimum contribution. This could be a playfully branded campaign promoted through the Activity Guide, the City website and the Vertical Response e-mail database. The Vertical Response database has approximately 17,000 unique e- mails. In general, the response to this type of solicitation campaign is .5% - 2.5%. If 1% of those registered e-mails responded, a $5.00 donation per e-mail would yield $850. • Cultural Arts Classes Surcharge— Flat Rate Another mechanism for funding is a surcharge on registrations for Cultural Arts Classes. This would be built into the administrative fee structure and included in the total class fee, rather than be indicated as a separate fee. Since class fees range from $50 to $595, Staff recommends developing a scale ranging from $1 to $5, depending on the base fee. The average number of registrations in the last two fiscal years is 1,729. The minimum estimated revenue through this funding mechanism is approximately$1,700 per fiscal year. • Cultural Arts Classes Surcharge- Percentage of Cultural Arts Classes Revenue The average revenue for Cultural Arts Classes for the last two fiscal years is $140,820. Each 1%of this revenue source redirected to a cultural arts grant fund would yield approximately$1,400. Non-Monetary Support In addition to these funding options, Staff has identified other means of providing support to art groups that are not monetarily-based. This includes grants of City resources to support cultural programs. Examples of non-monetary support include: • Marketing and Promotions via the Activity Guide and Vertical Response • Exhibit Space in the Little Classroom, City Hall Lobby • Performance Space at the Sunday School Barn and Shannon Community Center • Cultural Event Space at park locations This type of program would require creation of guidelines that evaluate the measured value of the support provided in trade for City sponsorship status. Guidelines would also ensure content of supported projects are consistent with the goals and values of the City and Parks and Community Services Department. 2of3 RECOMMENDATION: Staff Recommends the Heritage and Cultural Arts Commission Receive report and recommend to the City Council the preferred method(s) of funding Arts Grants, if any. 3of3