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CITY OF SIMI VALLEY
MEMORANDUM
M
arch 21, 2022
TO
: City Council
F
ROM: Office of the City Manager
S
UBJECT: CONSIDERATION OF THE SIMI VALLEY CULTURAL ARTS CENTER
PERFORMING ARTS RECOVERY GRANT PROGRAM
RECOMMENDATION
T
he Simi Valley Arts Commission recommends that the City Council review and approve the Simi Valley Cultural Arts Center Performing Arts Recovery Grant Program with a grant period from April 1, 2022, through December 31, 2023.
BACKGROUND AND OVERVIEW
The
City Council approved the Simi Valley Cultural Arts Center (CAC) 2021- 25 Strategic Plan at its July 26, 2021, meeting. The Strategic Plan identifies several tactics, one of which is the development of a COVID-19 recovery grant program listed under Strategic Priority 2: “Sustainabilit y”. This grant program would support artists and arts and cultural organizations impacted by COVID -19 by subsidizing the rental fees associated with producing their artistic performances and events at the CAC. At the September 15, 2021, Arts Commission meeting, an ad hoc committee was established to d evelop the grant program. The ad hoc committee met on October 20, 2021, to review examples of other municipal arts grant programs and review criteria to create a similar program at the CAC. After discussion on the purpose and mission of the program , the Simi Valley Cultural Arts Center Performing Arts Recovery Grant proposal was developed. The Arts Commission reviewed the proposal at its November 17, 2021, meeting and recommended that the City Council review and approve the Cultural Arts Center Performing Arts Recovery Grant Program with a grant period from April 1, 20 22, through December 31, 202 2. However, staff is requesting that the City Council consider extending the grant period through December 31, 2023, as the most recent COVID-19 surge affected both CAC operations and some artists’ and arts organizations’ ability to plan future events.
FINDINGS AND ALTERNATIVES
T
he Cultural Arts Center Performing Arts Recovery Grant has t wo objectives. First, the Grant Program supports the simultaneous recovery of the CAC and the Simi Valley arts community by providing a financial incentive to encourage rentals at the CAC. Second, it establishes the Simi Valley Arts Commission as a granting organization for qualifying for future funding opportunities from state and federal agencies.
AGENDA ITEM NO.
8A
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The proposed Grant Program (Exhibit 1) is a pass -through facility-use grant designed to assist arts and educational organizations, artists, musicians, and other arts and dance groups with the fees to rent the Simi Valley Cultural Arts Center. Grant funding will range from $1,000 to $15,000, based on the duration of the rental.
T
he Grant Program is modeled after other municipally -owned art facilities in the region that provide facility use grants, including the Bank of America Performing Arts Plaza in Thousand Oaks and Li bby Bowl in Ojai. T he proposal also incorporates much of the same eligibility criteria as the City of Simi Valley’s Community Projects Grant.
T
his grant expands eligibility beyond traditional 501(c)(3) non-profit organizations to include educational organizations, independent arts organizations, and independent artists. Staff anticipates this expanded eligibility will attract new cultural, dance, and music performances. Awards over $5,000, however, will require 501(c)(3) status (or an organization without IRS exempt status can partner with a 501(c)(3) sponsor) and financial reports from applicants.
A
pplicants must demonstrate a public benefit to the Simi Valley community to be eligible to receive a grant. Benefits might include but are not limited to, discount programs for Simi Valley residents, an educational component , an appeal to new audiences, or innovative outreach and engagement strategies that reduce common barriers (i.e. income, disability, and race) to arts participation.
An
ad hoc committee of the Arts Commission will review and approve applications .
Approved applicants must apply the entirety of the grant award to Cultural Arts Center rental fees, and no outside expenses are permitted. Outside expenses are defined as :
production expenses that are not paid to the CAC. These include, but are not limited to, production licensing fees, artist fees, director, choreographer, lighting designer, and set designer fees; marketing expenses; and costume, props, and set costs. Grant awardees can apply any remaining balance to a future rental through the 2023 season. CAC and City Staff will be responsible for all grant tracking, recording, and reporting.
The
grant period was scheduled to run through the CAC’s 2022 Season at the time of the Arts Commission’s review and approval. Staff is requesting that the City Council extend the grant period through December 31, 2023, as the most recent COVID -19 surge affected both CAC operations and some artists’ and arts organizations’ ability to plan future events.
U
pon approval of this grant , CAC staff will initiate an expansive outreach campaign to ensure the arts community is aware of the Grant Program. Staff anticipates this grant program will attract new renters and performers to the CAC. The potential of the Grant Program has already attracted three new arts groups to the CAC who have reserved dates for the 2022 season. Three additional arts groups, also new to the CAC, are interested in producing at the center but are awaiting the approval of the Grant Program to confirm dates.
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Funding and Payment Structure:
The Arts Commission is seeking approval of this grant program prior to the City Council’s review of the ARPA allocation of funds due to the immediate business need to reinvigorate rental activity at the CAC and the needs of the artists and arts organizations. The CAC Operating Account presently has enough reserves to support $75,000 of grant activity without jeopardizing its financial position. This is due to a reimbursement of the eligible Fiscal Year 2020-21 expenses from the Shuttered Venues Operators Grant, of which the CAC was a recipient. The majority of funding provided by the Shuttered Venues Operators Grant is restricted to the Center’s operations and capital expenses. However, the reimbursement of prior year’s expense is not designated for a specific purpose but must be utilized in a manner that supports the long-term sustainability of the CAC.
If the Grant Program is approved, CAC staff would transfer $75,000 from its Operating Account to its Contingency/Performance Account for the purposes of grant reporting and tracking. The Contingency/Performance Account is an account separate from the Operating Account. Any drawdowns from the Perfor mance/Contingency Account are subject to the approval of the Arts Commission, with the exception being unplanned emergency operational expenses.
Should the City Council approve an allocation of ARPA funds to support this Grant Program at a future meeting, the funding would replenish the CAC operating fund as well as provide additional funding to the Contingency/Per formance Account to support the program through 2023. The CAC will continue to explore additional funding opportunities to support the arts community.
Financial Impact:
Staff anticipates this Grant Program will help the Cultural Arts Center meet its 2021- 22 and 2022-23 revenue projections by incentivizing facility use through ongoing COVID-19 uncertainty, and providing at least $75,000 in rental fee subsidy for the 2022 and 2023 seasons. It will also encourage future rentals by stabilizing the financial situation of arts groups that have not had reliable earned or fundraising income since March of 2020.
Furthermore, launching this program will establish the Arts Commission as a granting organization, which will increase funding opportunities in future years. If approved, staff sees no substantive impact to the General Fund.
The following alternatives are available to the City Council:
1. A
pprove the Cultural Arts Center Performing Arts Recovery Grant Program with a grant period from April 1, 2022 to December 31, 2023;
2. Appr
ove the Cultural Arts Center Performing Arts Recovery Grant Program with a grant period from April 1, 2022 to December 31, 2023, with modifications;
3. D
o not approve the Cultural Arts Center Performing Arts Recovery Grant Program;
4. P
rovide staff with alternate direction.
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The Simi Valley Arts Commission recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I mov
e to approve the Simi Valley Cultural Arts Center Performing Arts Recovery Grant Program with a grant period beginning April 1, 2022, and ending December 31, 2023.
SUMMARY
T
he Simi Valley Arts Commission recommends that the City Council review and approve the Simi Valley Cultural Arts Center Performing Arts Recovery Grant Program with a grant period from April 1, 2022, through December 31, 2023. The proposed Grant Program is a pass-through facility use grant designed to assist arts and educational organizations, artists, musicians, and other arts and dance groups with the fees to rent the Cultural Arts Center. The Cultural Arts Center 2021-25 Strategic Plan identifies the development of a COVID-19 recovery grant program as a tactic in support of the goals of Strategic Priority 2: “Sustainability”.
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_________________________________
Linda Swan
Assistant City Manager
P
repared by: David Yoshitomi, Community Services Manager INDEX Page
E
XHIBIT 1 ....................................................................................... 5 1a/03-22
SIMI VALLEY CULTURAL ARTS CENTER
PERFORMING ARTS RECOVERY GRANT PROGRAM
Draft Proposal
Funding and P
ayment Structure:
Init
ial funding in the range of $200,000 is proposed to support the Cultural Arts Center Performing Arts Recovery Grant Program (Grant Program) from the City’s American Rescue Plan Act (ARPA) allocation of funds, pending approval from the City Council. At this time, up to $75,000 of Cultural Arts Center (CAC) operating reserves can be allocated immediately to support this Grant Program . City Council action will determine the final funding amount at a meeting date to be determined.
Upon ap
proval, CAC staff would transfer $75,000 from its Operating Account to its Contingency/Performance Account. If the City Council approves an allocation of ARPA funds to support this Grant Program at a future meeting, the disbur sement would replenish the CAC Operating Account, with the remainder of the ARPA disbursement to the CAC deposited in the Contingency/Performance Account for ongoing grant activity.
CAC
staff will apply credits to a grantee’s invoice upon the first reconciliation. CAC staff will then transfer the amount of the credit from the Contingency/Performance account to the CAC’s Operations Account at the time the credit is applied.
The C
AC’s QuickBooks system will manage and track grant funds. A separate grant revenue code will track rental credits. Rental credits will be categorized as grant funds and not as earned income on CAC financial reports. The Arts Commission will receive a report on the grant account activity as part of recurring financial reports.
Eligib
ility
Cult
ural Arts Center Performing Arts Recovery Grants are available to any 501(c)(3) non- profit arts or cultural organization with a confirmed reservation for arts and cultural performances at the Cultural Arts Center for the 2022 or 2023 calendar year season.
Educational organizations and projects from independent artists and arts groups with a verifiable performance history are also eligible to apply. Successful applicants will receive a rental credit towards the total rental cost for the production.
Gra
nt Tiers:
• One Night Performance: $1,000
• Two Consecutive Weekends* performances: $5,000
• Three Consecutive Weekends* performances: $10,000
• Four or More Consecutive Weekends* performances: $15,000 *Weekends consist of Friday, Saturday, and Sunday performances. 5 EXHIBIT 1
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Grant Guidelines:
• The reservation must be for a performance that is artistic and/or cultural in nature. • Must be a 501(c)(3) non-profit entity, educational organization, or independent artist or arts group with verifiable performance history. • Only 501(c)(3) organizations are eligible for grant awards of $5,000 or more.
Independent artists, educational organizations, and arts groups can apply for grants of $5,000 or more via a non- profit fiscal sponsor , wh o has a 501(c)(3) exempt status.
• Verification of non- profit status is required for all non- profit organizations. An annual financial statement or a 2020 (should this soon be 2021?) tax return will be required for grant awards of $5,000 or more.
• Must have confirmed performance dates at the Simi Valley Cultural Arts Center for the 2022 or 2023 Seasons. Events can take place on the Mainstage or DownStage Theater.
• Performance must be available for the public to attend. • Funds must be applied to rental charges at the Cultural Arts Center. No outside production costs are eligible.
• Applicants can apply for multiple grants during the 2022 (Beginning April 1, 2022) and 2023 seasons with a maximum award of $15,000.
• Grant supported projects must demonstrate a benefit to the Simi Valley community.
• Grantees must complete a final report at the conclusion of the performance or production to be eligible for future grant opportunities. • Applicants may carry over remaining grant balances to future performances. • Applications will be accepted until funds are exhausted, or August 31, 2023.
Ineligible programs include, but are not limited to, fundraising events, religious ceremonies, luncheons, meetings, private celebrations, and political and/or partisan events in support of ballot initiatives and/or political candidates.
Application Process
Applicants must first secure confirmation of their 2022 or 2023 dates by submitting a rental inquiry form here: https://bit.ly/svcacrental
. Once CAC staff has confirmed performance
dates, the applicant will submit a Performing Arts Recovery Grant application.
Applications will be accepted on a rolling basis. The application will collect data in the following categories:
General Organization Info (Including Mission Statement, Financial Information, and verification of 501(c)(3) status. (10 points)
Amount of Funding Requested: (Based on production run)
Sample Narrative Questions (Approximately 1,000 Characters Each)
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• Please share the background of your organization, including any significant milestones or accolades. Include a brief summary of how COVID-19 has affected your organization. (30 points)
• Please describe how this project or performance will benefit the Simi Valley community, especially as it relates to COVID -19 recovery. Benefits might include special pricing plans for Simi Valley residents, an educational component, an appeal to diverse audiences, or innovative outreach and engagement strategies that reduce common barriers (i.e. income, disability, and race) to arts participation. (40 points)
• How will you publicize and promote this project? (10 points)
Budget Information (10 points)
Application Review:
CAC staff will provide an initial review for completeness and eligibility. The Arts Commission has established an ad hoc committee to review and approve grant applications. Applicants must achieve a score of 75 or higher to be awarded a grant.
The Arts Commission will receive reports on grant activity at each meeting.
Appeals:
Denied applicants may direct a letter of appeal to the chair of the Arts Commission. The chair will evaluate the merits of the appeal at their discretion and can recommend a re- evaluation of the application by the ad hoc grant review committee. 7