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SR-305-005 (3) Council Meeting: January 28, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Approval of Funding Guidelines and Selection Criteria, and Authorization to Release a Request for Proposals for the FY 2003-06 Cultural/Arts Organizational Support Grants INTRODUCTION This report recommends that the City Council approve the guidelines and selection criteria for applicants to the third cycle of the Santa Monica Cultural Arts Organizational Support Grant program for Fiscal Years 2003 – 2006. BACKGROUND The Santa Monica Cultural/Arts Organizational Support Grant Program was initiated in FY 1997-98 in response to the Cultural Arts Master Plan Update, adopted by Council in 1996, which called for development of policies and procedures for ongoing operating support grants to Santa Monica-based cultural and arts organizations. At that time, Council directed staff to develop a grant application process which would address the cultural interests of the community-at-large while ensuring the fiscal stability of the cultural organizations which contribute to the City’s environment. Eligibility guidelines 1 were developed and approved by Council in January 1997 and again in 1999 and used to select the first two cycles of grantees. These guidelines are provided in Attachment I. The Cultural/Arts Organizational Support Program provides $207,900 in financial assistance to resident nonprofit arts and cultural agencies demonstrating a commitment to serving the needs of the Santa Monica community. Funding in this program is primarily dedicated to staffing, community outreach, development expenses, rent and other basic operational expenses, ensuring the organizations’ continued presence in the City while enabling them to better meet Santa Monica’s cultural needs by employing professional staff and ensuring that the community is aware of the arts and cultural opportunities available in the City. Ten agencies were recommended for funding in Fiscal Year 2000-01, with an additional two years of funding contingent upon effective program performance, availability of funds and Council approval. The current fiscal year (2002-03) is the last year of that grant cycle. Funding from the Cultural/Arts Organizational Support Grant Program has enabled these agencies to enhance their services to the community. Specifically, grants have allowed the agencies to present free and low-cost programming in the City, supplement salaries for professional staff including grant writers and development directors, increase their marketing activities, and support the creation of long range plans and evaluation processes. In all, the program has enhanced the professionalism and stability of each of these important cultural resources. 2 DISCUSSION As in the previous cycles of funding, City staff proposes a three-year term beginning with the budget adopted for FY 2003/04. Awardees would be required to submit a renewal application and annual report in order to be considered for support in each of the following two years. The context of the City’s overall budgeting and forecasting process each year may affect the total amount of funds available in a given year. It is anticipated that the Cultural/Arts Organizational Support Program mayl be faced with a 2-5% cut, given the City’s budget deficit. Given this financial context, it is unrealistic for the City to invite proposals from new agencies. Therefore, in February of 2003, staff proposes to release the OSP application to all currently funded nonprofit cultural and arts organizations only. Staff will hold a workshop to provide applicants with an orientation to the application process, including an overview of the minimum eligibility requirements and selection criteria outlined in Attachment 1. With Council approval, applications for the FY 2003-06 funding cycle will be made available in February with an April application deadline. Applications will be reviewed and funding recommendations included in the proposed FY 2003-04 City Budget. Selection criteria favor organizations with a demonstrated commitment to the City, a proven track record in community-oriented programming, a solid funding base and a professional and high quality level of service. All applications will be evaluated by City staff and comments will be sought from professionals in the fields of arts and cultural management, programming, and budget development as appropriate. 3 BUDGET FINANCIAL IMPACT The Organizational Support Grant Program is supported by the City’s General Fund as is the City’s Community Arts (CO-ARTS) Grant Program which provides $66,500 in funding for specific arts programs throughout Santa Monica. There will be no immediate financial impact from actions proposed in this report. Staff will return for City Council approval with specific fund allocation recommendations in the FY 2003-04 Proposed Budget to be released in early May of 2003. The Request for Proposals will make it clear that grant recommendations will be contingent the availability of adequate funds and City Council approval. All funding decisions will be made in the context of the City’s overall budget and forecasting process each year. RECOMMENDATION Staff recommends that the City Council adopt the proposed FY 2003-06 funding guidelines and selection criteria as described in this report and attachments. Prepared by: Barbara Stinchfield, Director, Community and Cultural Services María Luisa de Herrera, Manager, Cultural Affairs Division Hamp Simmons, Coordinator, Cultural Affairs Division 4 Attachment I Minimum Eligibility Requirements Applicants are eligible to apply for grant funding through the City’s Cultural/Art Organizational Support Grant Program if they meet the following Council approved minimum eligibility requirements: The applicant is a previous recipient of a Santa Monica Cultural/Arts Organizational Support Program Grant; and The applicant maintains tax-exempt status under Section 501 (c) (3) of the Internal Revenue Code; and The applicant complies with Fair Labor Standards and pays professional performers, artists, and supporting personnel at least the minimum level of compensation paid to people employed in similar activities. The applicant is in compliance with Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968 (as amended), and the Americans with Disabilities Act (ADA) of 1990. Applicant does not discriminate in the hiring of staff or provision of services on the basis of race, religion, sex, age, national origin, disabilities, HIV status, political affiliation or beliefs, or sexual preference. Selection Criteria Applications for the City’s Cultural/Arts Organizational Support Grant Program will be reviewed according to how effectively applicants can demonstrate that they meet the following Council- approved selection criteria: Offers ongoing programs of cultural and artistic excellence, indicated by providing promotional and other sample materials showing the overall history of the organization; Meets community needs by means of a range of programs; Links and collaborates with other Santa Monica-based arts and cultural organizations; Demonstrates the community’s support of the organization through documentation of audience, volunteer, and organizational demographics, general methods of community outreach, and attendance figures; Demonstrates viability and long-term stability by providing organizational budget documents including revenue breakdowns listing all major donors; Employs a professional staff; 5 Provides accessibility of programming to the general public; Has a diversified funding base with no more than 25% of their total cash funding derived from the City of Santa Monica. 6