8/01-23
CITY OF SIMI VALLEY
MEMORANDUM
January 23, 2023
TO: City Council
FROM: Office of the City Manager
SUBJECT: AUTHORIZATION OF AN INTER -FUND TRANSFER FROM THE
GENERAL FUND TO THE SIMI VALLEY CULTURAL ARTS CENTER
FUND AND APPROV AL OF A SUPPLEMENTAL BUDGET REQUEST
FOR ACCEPTANCE OF THE CITY’S COVID -19 COMMUNITY
RECOVERY GRANT PROGRAM FUNDS OF $200,000
STAFF RECOMMENDATION
It is recommended the City Council authorize an Inter-fund transfer from the General Fund (Fund 100) to the Simi Valley Cultural Arts Center (CAC) (Fund 295) in the amount of $200,000, and approve a supplemental budget request for acceptance of the City’s COVID-19 Community Recovery Grant Program funds of $200,000.
BACKGROUND AND OVERVIEW
The American Rescue Plan Act (ARPA) allocated $15,325,294 to the City of Simi Valley. Subsequently, on May 9, 2022, the City Council approved the distribution of the ARPA funds to various projects as identified in the Project List in compliance with the ARP A “Final Rule.” The ARPA Final Rule allows cities to claim ARPA funds to offset revenue losses; which funds are then transferred to the City’s General Fund and used for various purposes. The City has claimed $13.7 million in ARPA funds as revenue loss.
ARPA funds claimed for revenue loss, and subsequently transferred to the General Fund, are expended as General Fund monies and not ARPA funds. Once ARPA funds are deemed as loss revenue, public agencies can utilize funds for general services such as health and public services; and agencies have the discretion for the use of funds. Given the nature and purpose of the various classifications in the approved Project List, staff determined that distribution of these funds could be achieved through the creatio n of a COVID -19 Community Recovery Grant Program as funding designations greatly assist both the non-profits and agencies that serve Simi Valley residents and businesses who continue to recover from the impacts of COVID-19.
AGENDA ITEM NO.
Consent (2)
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One of the many recipients identified in the approved Project List is the Simi Valley Cultural Arts Center with an allocation in the amount of $200,000. In order for the CAC to receive the funds from the COVID-19 Community Recovery Grant Program, an Inter-fund transfer moving General Fund monies to the CAC’s operating fund is required along with a budget supplemental to increase the CAC’s budget . Staff is recommending that the City Council authorize an Inter-fund transfer in the amount of $200,000 from the General Fund (Fund 100) to the CAC (Fund 295), and approve a supplemental budget request in the amount of $200,000 in order to appropriate funds.
FINDINGS AND ALTERNATIVES
On May 9, 2022, the City Council approved a list of projects to allocate the ARPA funds.
The project list also identified potential recipients of the funds based on organizations that have been impacted by COVID -19 or provide services to those that have been and continue to be affected by COVID-19. Now utilizing General Fund monies, staff created a COVID-19 Community Recovery Grant Program that will better serve the Project List recipients. The reporting requirements for this program mirror the City’s existing Community Project Grant program. Similar to the community Projects Grant program, staff will return annually to the City Council with a staff report of the recipient’s progress to re-evaluate the distribution of the funds and the needs at the time.
One of the many recipients identified in the approved Project List is the Simi Valley Cultural Arts Center. The CAC’s mission is to provide a multipurpose facility to present performances of music, theater, dance, film, lectures and popular entertainment as well as space for conferences, meetings, seminars, and workshops . Additionally, the CAC will develop support for and encourage cultural activities and educational programs to enhance the quality of life of the citizens of Simi Valley and surrounding communities.
The COVID-19 pandemic has had a devastating effect on the performing arts worldwide due to forced closures that eliminated the ability to raise funds , provide rental opportunities and hold performances, creating a zero or negative cash flow for the already vulnerable arts sector. Theaters, galleries, and performance venues were shut down for periods of 12 – 18 months with some arts organizations and venues forced to close their doors permanently. The CAC was closed from March of 2020 through November of 2021 and continues to struggle to rebuild audience and donor support to pre-pandemic levels.
In addition, many of the smaller arts organizations who rented the main theatre at the CAC, and individual artists who have performed at the CAC, are still struggling to recover from the “extended intermission” that was imposed on the arts world by the COVID -19 pandemic.
In order to support the CAC as well as the arts community that will utilize the venue and provide cultural experiences for the Simi Valley community, the following budget has been developed for the use of the COVID-19 Community Recovery Grant funds:
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1. Performing Arts Recovery Grant - $100,000
The Performing Arts Recovery Grant was created to support local 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. The Performing Arts Recovery Grant was approved by City Council in March of 2022 with the initial funding of $75,000 allocated from reserves from the Cultural Arts Center’s Operations Fund made possible by the Shuttered Venues Operators Grant. The additional COVID-19 Community Recovery Grant funding will enable the CAC to extend the Performing Arts Recovery Grant through Season 2023 and into Season 2024.
2. Young Artists Playground Youth Arts Education Program - $50,000
The Simi Valley Cultural Arts Center’s Young Artists Playground (YAP) is a youth arts education training program launched in 2022 that offers a year round series of Saturday morning workshops as well as a five week summer arts camp and a weeklong winter arts camp. The COVID-19 Community Recovery Grant funds will support continuation and expansion of the YAP program through 2024 including salary support for local teaching artists and provid e scholarship opportunities for eligible youth, removing financial barriers and ensuring that YAP classes and camps are accessible to all families in the community.
3. DownStage Developmental Support - $25,000
Grant funds will be used to further develop the DownStage Theater, a multi -use performance and gallery space on the lower level of the CAC. Developing the DownStage Theater will allow the CAC to expand programming opportunities for the community such as Poetry Readings, Open Mic Nights, Simi Storyteller Series, Artists Spotlight Talks, DownStage Cabaret Series, and more . This expansion of programming would also enable the CAC to increase weekday facility use, thus providing increased revenues as well as expanded performance opportunities for local arts organizations and the community.
4. Gallery Developmental Support - $12,500
Funding will be used to support and further develop the CAC’s Gallery spaces as well as potentially supp ort a pop up gallery located off-site in Simi Valley .
Anticipated project expenditures include support for artists, expansion of gallery lighting and equipment , supplies for gallery events , and marketing support to promote CAC Gallery events . Staff is searching for off -site locations for pop -up gallery space for larger gallery exhibits or when the CAC gallery space is booked and is looking to negotiate affordable rent opportunities with local venues.
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5. Access The Arts Initiative - $12,500
The CAC strives to provide inclusive and accessible arts experiences for the entire Simi Valley and surrounding community. Funding for the Access the Arts Initiative will assist the CAC in expanding multicultural programming and increasing low cost and/or free programming opportunities for the community to enjoy . Examples of potential events might include low priced comedy series, free Untold Stories Living History events, Simi Storytellers series, film series, lecture series, poetry readings, and more.
Total Funding Allocation: $200,000
All five of the above proposed uses of the COVID-19 Community Grant Project funds will enhance progress in meeting the strategic goals outlined in the Five Year Strategic Plan for the CAC as approved by City Council in 2021. Specific goals from the Strategic Plan addressed include:
Attract new artists, arts organizations, and audiences to ensure facility use and attendance figures better match Simi Valley demographics by 2025; Include the arts in more aspects of life in Simi Valley, reaching beyond the walls of the CAC, seeing an increase of opportunities for all Simi Valley residents; Ensure the CAC provides overarching program choices and arts experiences that represent the tastes of all Simi Valley residents, increasing new audience attendance by at least 10% every year;
Increase Tuesday - Thursday facility use levels through the development of low risk, high engagement arts experiences;
Establish the CAC as the foremost arts education resource in the Simi Valley, increasing the amount of arts education as well as programs to support emerging artists;
Reinforce the arts as a vital, integral, and necessary component of li fe in Simi Valley by strengthening local artists, arts organizations, and cultural groups through increased consideration and presence of the arts in policy decisions and legislation.
The following alternatives are available to the City Council:
1. Authorize an Inter -fund transfer from the General Fund (Fund 100) to the Simi Valley Cultural Arts Center Fund (Fund 295) in the amount of $200,000 , and approve a supplemental budget request for acceptance of the City’s COVID-19 Recovery Grant Program funds in the amount of $200,000;
2. Provide further direction to staff.
Staff recommends Alternative No. 1.
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SUGGESTED CITY COUNCIL MOTION
I move to authorize an Inter-fund transfer from the General Fund (Fund 100) to the Simi Valley Cultural Arts Center (Fund 295) in the amount of $200,000 , and approve a supplemental budget request in Fund 295 for acceptance of the City’s COVID -19 Community Recovery Grant Program funds in the amount of $200,000.
SUMMARY
The City Council approved a list of projects to allocate the ARPA funds and identified potential recipients of the funds based on organizations that have been impacted by COVID-19 or provide services to those that have been and continue to be affected by COVID-19. Given the nature and purpose of the various classifications in the approved Project List, staff determined that distribution of these funds could be achieved through the creation of a COVID-19 Community Recovery Grant Program as funding designations greatly assist both th e non -profits and agencies that serve Simi Valley residents and businesses who continue to recover from the impacts of COVID -19. The Simi Valley Cultural Arts Center’s request for financial assistance addresses a variety of critical needs either resulting from or exacerbated by COVID-19. Funding will be utilized over the next two years for five primary categories: Performing Arts Recovery Grant, Young Artists Playground Youth Arts Education Program, DownStage Developmental Support, Gallery Developmental Support, and Access the Arts Initiative . Staff requests the City Council authorize an Inter -fund transfer from the General Fund (Fund 100) to the Simi Valley Cultural Arts Center (Fund 295) in the amount of $200,000, and approve a supplemental budget request in the amount of $200,000 in order to appropriate the City’s COVID -19 Community Grant Program funds.
____________________________________
Linda Swan
Assistant City Manager
Prepared by: Fred Helsel, Community Services Manager/CAC