City Council
Report
City Council Meeting: May 8, 2018
Agenda Item: 3.F
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic Development Division
Subject: Memorandum of Understanding for 2018 Soulstice Event Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a Memorandum of Understanding with the Main Street Business Improvement Association to co-produce the 2018 Summer Soulstice event.
Executive Summary
The Summer Soulstice festival is an annual community event that the Main Street Business Improvement Association (MSBIA) has held since 2001 to showcase the Main Street commercial district. The event attracts approximately 7,000 to 10,000 local and regional attendees to hear live music and to experience the businesses along the onemile business corridor. Beginning in 2011, the City has provided funding and staffing assistance to MSBIA for the event’s production. Staff recommends a memorandum of understanding to define the roles, responsibilities, and contributions of each party.
For the first time in its history, the 2018 Soulstice festival proposes to close a portion of Main Street to vehicle traffic. Starting at Pico Boulevard and extending south to Ocean Park Boulevard, the street would be closed from 10:00 AM to 9:00 PM. The street closure would not only expand the capacity for public participation in the event, it would also allow for additional activation of the area. The proposed street closure also increases the costs for staging the event, especially in the areas of public safety and traffic control. While MSBIA is working to raise additional funding for the event through increased sponsorships and vendors, a funding gap is anticipated. At its April 10, 2018 meeting, Council allocated an additional $14,000 of its discretionary funds to MSBIA to help offset the additional public safety expense.
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Background
The Main Street Business Improvement Association (MSBIA) has produced the Summer Soulstice festival (Soulstice), an annual, free, one-day, live-music event, since 2001. The event features bands on stages located on several closed side streets along Main Street, as well as an accompanying sidewalk sale by Main Street merchants, and, in some years, an entertainment area for children. The summer event was organized to celebrate Main Street’s businesses, attract residents and visitors to the area, and expand the entertainment offerings provided at the Sunday Main Street Farmers Market. The event brings vitality to the street, offers the community an opportunity to enjoy free, live musical entertainment in an outdoor setting, and provides an economic boost to the retailers and restaurants on Main Street. The Main Street commercial district begins at Pico Boulevard to the north and extends to the southern City boundary, just south of Marine Street.
For many years, MSBIA’s Executive Director and the organization’s board members solely produced and financed the one-day Summer Soulstice event. As production costs and administrative responsibilities have risen over time, MSBIA has sought participants to help with the administrative duties, as well as sponsors and vendors to help offset the expense.
Beginning in FY 2011-12 and annually thereafter, Council has allocated discretionary funds to support events organized by the business improvement districts (BIDs) that include MSBIA, as well as the Pico Boulevard and Montana Avenue districts.
Downtown Santa Monica, Inc. does not participate in the discretionary funding allocation since it is primarily organized as a property-based assessment district. MSBIA has used 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. The City provided $2,500 in FY 2011-12; $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 and FY 2016-17, Council provided $7,000 in 3 of 6
discretionary funds to MSBIA and to each of the other BIDs. For FY 2017-18, the City has increased the amount each of the three BIDs receives to $8,000.
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.
In 2015, the City established an Event Partnership Administrative Instruction (AI) that specified conditions 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 value of the sponsorship or co-production varies. The City coproduced the 2015 Summer Soulstice event and MSBIA received approximately $13,604 in City support, comprised of Council discretionary funds, Buy Local funds, fee waivers, fee reductions, and in-kind staff time to contribute to the event’s total expense of approximately $32,000. The City also co-produced the 2016 Soulstice festival, 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, to help offset the total event expense of approximately $40,000. The value of the City resources provided to MSBIA is based on the actual cost of City fees, as well as 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 no MOU was executed.
At its February 28, 2017 meeting, Council authorized staff to enter into a MOU with MSBIA to co-produce the 2017 Soulstice festival (Attachment A). MSBIA received $19,313 of City support in the form of expense reimbursement, in-kind staff assistance, and some fee waivers to contribute towards the total event expense of approximately $66,000. The City’s increased support in 2017 was primarily due to a change in the City’s parking-rate structure for reserving spaces in the City parking lots. 4 of 6
The Soulstice festival is a signature event for MSBIA and the Main Street commercial district. The City has historically welcomed the opportunity to co-produce the event because it aligns with several City’s goals. For example, the event draws a broad audience that includes both locals and regional visitors of all ages. The festival also brings the community together and creates a sense of connection where attendees can gather and socialize. In addition, the event allows attendees to explore Main Street stores and restaurants, and encourages spending locally, thereby supporting Economic Opportunity.
Discussion
For several years, MSBIA has been interested in the closure of Main Street in conjunction with Soulstice in order to expand the event program area and increase pedestrian circulation. Due to the success of COAST, the open-streets event the City produced in 2016 and 2017, MSBIA requested the closure of Main Street for the 2017 Soulstice. 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 insufficient time to do so prior to the 2017 event. While evaluating the closure of Main Street from Pico Boulevard to the southern City boundary for the 2018 Soulstice, a closure of Main Street from Pico to Ocean Park Boulevard was agreed upon between staff and MSBIA. The 2018 Soulstice festival will be held on June 24, 2018. Main Street will be closed to vehicle traffic beginning at Pico Boulevard, and extending south to Ocean Park Boulevard from 10:00AM to 9:00PM. The street closure allows for additional activations, and it will provide attendees a new way to interact and experience the businesses along Main Street. The Ocean Park Association expressed their support for the closure of Main Street as part of the 2018 Soulstice.
The street closure also increases the costs for staging the event because of the increased requirements for public safety and traffic control. For 2018’s Soulstice, water barricades will be required at a cost of approximately $15,000; the costs for fire and medical personnel is estimated at $7,800, an increase of $6,500 from the 2017 Soulstice; and additional traffic control and police cost is estimated at $5,100, an 5 of 6
increase of $2,200 from 2017. The public safety expenses add up to a total of $27,900 in production costs, an increase of $23,700 over 2017’s costs.
While MSBIA has been working to offset the increased costs by increasing the number of sponsors and vendors, at its April 10, 2018 meeting, Council allocated an additional $14,000 in discretionary funds to help with the additional public safety and traffic control expenses. For FY 2017-18, MSBIA will receive a total of $22,000 in Council discretionary funds, reflecting $14,000 allocated on April 10, 2018 and $8,000 allocated for FY 2017-18.
Staff recommends that the City enter into a memorandum of understanding (MOU) with MSBIA to co-produce the 2018 Soulstice festival being held on June 24, 2018. This is the second year the City will formalize its co-production of the event by entering into an MOU with MSBIA that would outline the scope of the event, responsibilities of each party, and City support. Staff anticipates that the amount of City support for the 2018 Soulstice will be higher than what was provided in 2017 due to the increased expenses associated with the street closure. The MOU would assign MSBIA with the responsibility for obtaining all appropriate permits, as well as organizing and managing the event. The City would be responsible for providing oversight and coordination of the City’s permitting process, access to the street banner on Main Street, coordination of the City’s social media promotion of the event, fee waivers, fee reductions, and $23,500 in direct financial assistance to support the event. MSBIA would be responsible for contracting with an event promoter, musical acts, securing the event space on private property, contracting with vendors and sponsors, and managing the event expenses, which are estimated at $71,500.
Financial Impacts and Budget Actions
Funds in the amount of $23,500 to support the event are available in the FY 2017-18 budget in the City Council and Housing and Economic Development Departments at accounts 01201.579002 ($22,000) and 012681.522340 ($1,500), respectively. The indirect costs associated with the event, including fee waivers, fee reductions, and inkind staff time, are funded from the various City department budgets, including Housing 6 of 6
and Economic Development, Community and Cultural Services, Police, and Fire.
Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council
Attachments:
A. MSBIA MOU for Soulstice 2017 Council Meeting 02.28.2017 - Staff Report B. MSBIA Oaks Initiative 05. 2017