At the request of Council Member Bui, the City Council directed staff to develop a sponsorship policy for non-profit organizations interested in holding community events. The policy would provide guidance and limitations on how the organizations can request City Council sponsorship of a community event; and to provide a process by which an organization would become self-sufficient in the operation of events, thereby limiting the City’s financial support.

Staff has developed a City Community Event Sponsorship Policy that outlines the general requirements and qualifications for a non-profit organization to be approved for City sponsorship of their community event.

To qualify for City sponsorship, non-profit organizations need to be a Garden Grove based organization and established within Garden Grove for a minimum period of five (5) years. The policy will limit organizations to the following:

• One request for sponsorship per organization, per year;
• Total value of sponsorship shall not exceed $5,000; and
• Non-Profit Community Events that also serve as “fundraising” events are limited to four years of sponsorship, with the value of each year’s sponsorship reduced by twenty-five percent (25%).  Example, Year 1, City’s sponsorship not greater than $5,000; Year 2, City’s sponsorship not greater than $3,750; Year 3, City’s sponsorship not greater than $2,500; Year 4, City’s sponsorship not greater than $1,250.  Year 5, no City sponsorship.

The City Manager will be permitted to approve up to ten (10) Community Event sponsorship requests each fiscal year. Staff has identified three (3) “legacy” community events that will be approved as annual sponsored community events and will be considered as part of the City's ten (10) annual sponsored community events. These legacy community events have become a tradition in the City and will be considered “annually approved” until a City Council action to terminate further sponsorship occurs.  These events include the:

• Cub Scout Pushcart Derby
• West Garden Grove Youth Baseball Parade
• Annual Garden Grove Community Foundation/Chamber of Commerce Golf Tournament

Should the number of community event sponsorships exceed ten (10), staff will return to the City Council for approval of those events.  Community festivals enter into separate agreements with the City Council and are not considered part of this policy.  City sponsorship for all events will be restricted to in-kind services, such as city staff support, use of City owned equipment, showmobile stage, and use of the City's rental facilities. The City does not provide cash sponsorship. Non-Profit Community Events that also serve as “fundraising” events are limited to four years of sponsorship, with the value of each year’s sponsorship reduced by twenty-five percent (25%). Example, Year 1, City’s sponsorship not greater than $5,000; Year 2, City’s sponsorship not greater than $3,750; Year 3, City’s sponsorship not greater than $2,500; Year 4, City’s sponsorship not greater than $1,250. Year 5, no City sponsorship.

The adoption of the proposed policy will have a financial impact to the City's General Fund of a maximum amount of $50,000 each fiscal year. This amount is based on a community event not exceeding an amount of $5,000, and limiting sponsorship to only ten (10) organizations each fiscal year. 

It is recommended that the City Council:

• Adopt the proposed Community Event Sponsorship Policy; and
  
  
• Authorize the City Manager to implement and exercise the Community Event Sponsorship Policy.

By:  Janet Pelayo, Manager