SR 02-28-2017 3H
Ci ty Council
Report
City Council Meeting : February 28, 2017
Agenda Item: 3.E
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To: Mayor and City Council
From: Andy Agle, Director , Housing and Economic Development, Economic
Development Division
Subject: Memorandum of Understanding with Main Street Business Improvement
Association
Recommended Action
Staff recommends that the Cit y Council authorize the City Manager to negotiate and
execute a one -year Memorandum of Understanding with the Main Street Business
Improvement Association to co -produce the 2017 Summer SOULstice event .
Executive Summary
Staff requests Council authorizati on to enter into a Memorandum of Understanding
(MOU) with the Main Street Business Improvement Association (MSBIA) to co -produce
the organization’s 2017 annual Summer SOULstice festival, to be held o n
Jun e 25, 2017 . Beginning in 2011, the City has provide d funding and staffing
assistance to MSBIA for the event’s production. An MOU is recommended to formalize
the co -production relationship and to outline a clear understanding of responsibilities
and expectations between MSBIA and the City.
Background
The Main Street Business Improvement Association (MSBIA ) has held the Summer
SOULstice festival (SOULstice), an annual , free , one -day, live -music -based event,
since 2001. The event features bands on stages located on several closed streets
along Main Street ’s commercial district , as well as an accompanying sidewalk sale by
Main Street merchants, and, in some years, an entertainment area for children. The
summer event began as a way to celebrate Main Street’s businesses , attract residents
and visitors to the a rea , and provide entertainment to visitors of the Sunday Main Street
Farmers Market. The one -day event brings vitality to the street , offers the community
an opportunity to enjoy a diversity of live bands in an outdoor setting, and provides an
economic bo ost to the retailers and restaurants on Main Street. The Main Street
commercial district begin s at Pico Boulevard to the north and extend s to the southern
city boundary , just south of Marine Street.
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For many years, the MSBIA’s Executive Director and the organization’s board members
have solely produced and financed the one -day Summer SOULstice event.
A s production costs and administrative responsibilities have risen over time , MSBIA has
sought board members to help with the administrative duties and spon sors to help offset
the expenses.
Beginning in FY 2011 -12 and annually thereafter, Council has allocated discretionary
funds to support events organized by the b usiness i mprovement d istricts (BIDs) that
includ e MSBIA, as well as the Pico Boulevard Busine ss Improvement District and the
Montana Avenue Business Improvement District . The Downtown Santa Monica Inc. BID
does not participate in the discretionary funding allocation since they are also organized
as a property -based assessment district . MSBIA has u s ed the discretionary funds to
cover the City ’s fees related to the production of the SOULstice event . The amount of
Council discretionary funds allocated to MSBIA has varied each year . T he City
provided $2,500 in FY 2011 -2012, $3,750 in FY 2012 -13, and $7,000 in FY 2013 -14.
In FY 2014 -15 , the amount of discretionary funding was reduced to $4,000 because the
City was able to reduce Police and Fire staffing costs associated with the event .
In FY 2015 -16 , the City provided $7,000 to MSBIA in Council discr etionary funds and
committed to provide $7,000 to MSBIA and each of the other BIDs in FY 2016 -17.
In 2011, the City’s Buy Local program began providing partnership grant funds to the
three BIDs of up to $1,500 annually. MSBIA has primarily used the Buy Local grant to
help fund some of the Summer SOULstice marketing and promotion costs , as the event
helps promote the Buy Local program .
Additionally, the City established an Event Partnerships Administrative Instruction (AI)
in 2015 that specified conditio ns and requirements for City sponsorship and co -
production of community events. The AI authorizes the City to partner with
organizations to provide funds, fee waivers, and use of City staff time for planning and
implementation of qualified events. The valu e of the sponsorship or co -production
varies. The City co -produced the 2015 SOULstice, and MSBIA received approximately
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$13,604 in City support comprised of the Council discretionary funds, Buy Local funds,
fee waivers, fee reductions , and in -kind staff ti me. The City also co -produced the 2016
SOULstice, and MSBIA received $16,823 in City support which included allowing for an
over -the -street banner, promotion of the event via the City’s social media outlets, fee
waivers, fee reductions, and additional City fees associated with public safety staffing
requirements . The value of the City resources provided to MSBIA is based on the actual
cost of City fees and staff time. While the City was considered a co -producer for both
the 2015 and 2016 SOULstice events , both events were processed by the Community
and Cultural Service events program and there was no MOU in place .
Discussion
MSBIA requests that the City co -produc e its Summer SOULstice for June 25, 2017 , as
well as allow for the closure of Main Street t o support the event . Staff seeks to
formalize the co -produc ing relationship with MSBIA for the 2017 SOUL stice by entering
into a MOU that would outline the scope of the e vent , responsibilities of each party , and
the City support . Staff anticipates the am ount of City support for the 2017 SOULstice to
be approximate ly the same as what was provided in 2016. The MOU w ould assign
MSBIA with the responsibility for obtaining all appropriate permits , as well as organizing
and managing the event. The City w ould be responsible for providing oversight and co -
ordination of the City’s permitting process, access to the street banner, access to the
City’s social media outlets for promotion of the event, fee waivers, fee reductions , and
$8,500 in direct financial assist ance to support the event.
MSBIA has been interested in closing Main Street in conjunction with SOULstice for
some time. Due to the success of last year’s open -street event s , Coast, MSBIA
requested the City permit the closure of Main Street for 2017 SOULs tice. Staff
determined that a variety of internal policies and requirements would need to be
addressed in order to permit the closure of Main Street and that there was in sufficient
time to do so prior to th e 2017 event. The closure of Main Street would be expected to
expand the capacity for public attendance to the event , which could increase
sponsorship s , marketing exposure for the Main Street commercial district , and
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activati on of the area. However, t he closure of Main Street also increases the costs of
staging the event including public safety and traffic control requirements . MSBIA w ould
be required to address the street closure requirements for Main Street in order to
facilitate the street closure; however, s taff is committed to working with MSBIA to p lan
for and address issues that would allow for the closure of Main Street for the 2018
SOULstice.
Financial Impacts and Budget Actions
Funds in the amount of $8,500 to support the event are available in the FY 2016 -17
budget in the City Council a nd Hou sing and Economic Development Departments at
accounts 01201.57900C and 012681.522340 , respectively . Indirect costs associated
with fee waivers, fee reductions and in -kind staff time are included and funded from
various budgets, including Housing and Econom ic Development, Community and
Cultural Services, Police , and Fire.
Prepared By: Erika Cavicante, Senior Development Analyst
Approved
Forwarded to Council