County of Sonoma Agenda Item Summary Report Agenda Item Number: 19 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA 95403 To: Board of Supervisors Board Agenda Date: May 3, 2016 Vote Requirement: Majority Department or Agency Name(s): County Administrator s Office Staff Name and Phone Number: Hannah Euser, 565-3783 Title: Supervisorial District(s): FY 2016-17 Advertising and Promotions Program Grant Awards Recommended Actions: A. Adopt updated Advertising and Promotions Policy B. Approve Fiscal Year 2016-17 Advertising and Promotions Program grant awards and funding allocation. Executive Summary: This item requests Board consideration and approval of Advertising and Promotions Program Policy (Policy) amendments and FY 2016-17 Advertising and Promotions Program (Advertising Program) grant awards and funding allocation. The proposed awards have been reviewed and recommended by Advertising Program Committee liaisons, Supervisors Efren Carrillo and Susan Gorin. Background The Advertising Program utilizes a portion of the Transient Occupancy Tax (TOT) to encourage tourism, economic development and community engagement through a variety of grant award and funding avenues. The Program provides various grants to community non-profits for advertising and promoting events and the county as a visitor destination with the goal of advancing economic growth through tourism. Additionally the program provides grants to promote agricultural promotion as well as address impacts on safety due to tourism. The Program also provides funding to the Regional Parks Department as well as the Economic Development Department and a number of other county department activities, all with the focus of encouraging tourism and awareness of Sonoma County. Monies Now Available/Mitigating the Impacts of Tourism Due to a change in County accounting practices for FY 15-16, TOT funds are now collected on an accrual basis. This change resulted in a one-time accrual of $3,000,000 into the Advertising Program s Fund Balance. The Advertising Committee closely reviewed additional needs throughout the County that could benefit from this one-time funding source. Recommended use of these funds is indicated within each funding category, and clearly designated as one-time. All
The focus was on mitigating the impacts of tourism; Housing, Workforce Development, Fire Protection, and Infrastructure (Parks, Veterans Hall and Fairgrounds). Proposed Policy Changes Substantial proposed policy changes are summarized below and the proposed Policy is attached (Attachment A original policy with proposed amendments in track changes, Attachment B final proposed policy for adoption): 1. Category A6: This new category, Workforce Development and Scholarships, acknowledges that a qualified workforce is essential to the growing needs of the tourism industry as well as the overall health of the community. Funds will be designated to support workforce development and to increase access to educational opportunities through scholarships. Requests may be made for multi-year grants with a maximum of $350,000 per year. 2. Category B1: Updated to include County Event Facilities, including Veterans Halls (managed by General Services Department). 3. Category B2: Updated to allow the Fire Advisory Council to provide recommendations for grant awards, effective for the FY 17-18 grant cycle. FY 16-17 Grant Recommendations: Grant applications for FY 16-17 funding were accepted from January 12, 2016 to February 19, 2016 following an informational workshop on the various program categories, application process and requirements which was held on January 11, 2016. The application process was conducted for all categories except Category E Local Events, Organizations and Economic Development, which is funded at the discretion of each supervisor throughout the fiscal year. Staff worked in collaboration with the Advertising Committee, comprised of Supervisors Carrillo and Gorin, in considering all applications, given the available funding. Recommendations are based on a consideration of Policy guidelines and restrictions as well as potential return on investment, including attendance, duration of events and advertisements, and data provided on the success of previous events and usage of prior grant awards. Attachment C details the applications received under each category, a description of the event or program, the grant amount awarded in FY 15-16 if the event/organization previously received an award, the amount requested for FY 16-17, and the amount recommended by the Advertising Committee. The following is a summary of recommendations: Category A1- Chambers of Commerce: Allocates $39,290 to eight entities serving the unincorporated area for membership dues 10% match awards. This amount represents an increase in the maximum funds allowable for this category from $30,000 to $40,000. Category A2 Visitors Centers: Allocates $342,400 to 10 entities. Nine of the grants in this category are previously approved multi-year grants that will end 6/30/2017. The Committee recommends approving an additional one-year grant for the Geyserville Visitors Center.
Category A3 Economic Development Initiatives: Includes funding to the Economic Development Department s Business Assistance Services in the amount of $2,476,215 and $35,000 in funding to the Sonoma County Lodging Association for administrative staffing to provide advocacy and educational resources to the local industry and increase marketing efforts. Category A4 Tourism Marketing Program: Continues funding to Sonoma County Tourism per the Policy of allocating the first 2% of the 9% tax collected (23% of collections). Category A5 Visitor Way Finding & Signage: Allocates $97,000 to nine entities. In addition, one-time funding is provided to the Sonoma County Fair & Exposition Center in the amount of $25,000. Category A6 Workforce Development and Scholarships: This new category focuses on workforce development and allocates $350,000 for six entities. Funding will support the 10,000 Degrees program for direct scholarship awards to underserved high school and undergraduate students from within Sonoma County; the Career Technical Education Foundation for the Regional Advanced Mechanics Program in high schools including program development, grants to high schools and the Santa Rosa Junior College for equipment; Creative Sonoma to support Summer Youth Arts grants and year round arts education programs in underserved schools; the Community Foundation for Career Technical Education (CTE) for new high school sessions in advanced technology and manufacturing as previously approved; and a multi-year grant to fund the Santa Rosa Chamber of Commerce for the Mike Hauser Algebra Academy program geared to strengthen algebra skills and encourage a career in technology for 8 th and 9 th graders for whom English is a second language. Category B1 Parks, Recreation and Event Facilities: Provides $2,651,507 in funding to the Regional Parks Department for operations and maintenance of existing and new park facilities, and funding for Veteran s Buildings online marketing project in the amount of $30,000. One-time funding is provided to the Regional Parks Department to support Sonoma County Integrated Parks Plan (SCIPP) projects and 50th Anniversary Celebration activities, in the amount of $450,000. Additional one-time funding of $400,000 is provided for capital project improvements to Veteran s Buildings which serve as event facilities for the community. Category B2 Community Impacts/Public Safety: Allocates $90,000 to nine entities. Additional one-time funds in the amount of $768,000 will be provided to Fire and Emergency Services to fund central dispatch costs for FY 16-17. Category C Agricultural Promotion: Allocates a total of $185,000 to eight entities. The Advertising Committee recommends that one-time awards be made to Wine Road and Winegrowers of Dry Creek Valley who will be encouraged to fully work with the Sonoma AgGregate/Sonoma County Vintners group (Sonoma County Vintners, Sonoma County Winegrape Commission, Sonoma Valley Vintners and Growers, Sonoma County Farm Trails, Wine Country Weekend, Wine Road, and Sonoma County Harvest Fair) on a joint application for future funding consideration. This amount represents an increase in the maximum funds allowable for this category from $180,000 to $185,000. Category D Historical Commissions: Allocates $50,000 to two entities. This amount represents an increase in the maximum funds allowable for this category from $30,000 to $50,000.
Category E Local Events, Organizations and Economic Development: This category provides funding to each supervisor based on an allocation of $160,000 where 50% of this amount is divided equally across each district as baseline funding and the remaining 50% is divided by the percent of TOT collections by district in the previous fiscal year. Staff will provide updated figures for allocations to each district as part of FY 16-17 budget hearings once additional collection data is known. Category F Major Events/Organizations: Allocates $300,000 to 13 entities. Category G1 Departmental Activities: Provides funding to the Agricultural Commissioner s Office for development of the California State Fair Exhibit to promote the county as a destination, and provides funding to the Sonoma County Library for historical records and digital photography collection. In addition, one-time funds are provided for the Community Development Commission to partially fund the Roseland Mural Project ($12,000), Health Services Department to fund Russian River Monitoring, which includes public safety information sharing ($40,000), and funding for the Sonoma County Fair Foundation for Saralee and Richard s Barn ($75,000). Category G2 Affordable Housing: Provides funding to the Community Development Commission (CDC) for affordable housing and homeless service efforts; maintains a set aside for emergency shelter needs throughout the year; and provides funding to the Permit and Resource Management Department for continued work related to the Housing Element. One-time funding of $1,000,000 is provided for the Workforce Housing Public-Private Partnership, in which funds will be reserved under the County Fund for Housing administered by the CDC to be used to assist and meet the development of workforce housing. Category G3 Collections/Audit Services: Provides funding to the Auditor-Controller-Treasurer-Tax Collector for tax collection administration, audit for grant recipients, audit of tax collectors and remittance, and program support for additional audit needs such as work related to vacation rentals. Category G4 Legal Services: Provides funding to County Counsel for legal support work related to the Program, contract disputes and audit/collections needs. Category G5 Program Administration: Provides funding to the County Administrator and Board of Supervisor staff for overall program management and support. Funds also provide staffing for code enforcement of vacation rentals within the Permit and Resource Management Department. Category H - Film Documentaries: Allocates $30,000 to four entities. Category I - Seasonal and Off Peak Programs: Allocates a total of $41,000 to nine entities. Reserves Allocates additional funding to the Economic Uncertainty Reserve to maintain a reserve fund of 10% of TOT collections, and allocates $300,000 of available revenue to contingencies. FY 2016-17 Advertising Program Budget: The recommendations summarized above and detailed in Attachment C provide for total FY 16-17 expenditures of $15,008,997. These expenditures are supported through projected TOT collections and
interest of $10,653,100 and use of $4,388,907 in available fund balance. Revenue from collections is budgeted to increase 5% from FY 15-16. This recommended budget maintains an Economic Uncertainty Fund of $1,032,201 and a fund balance of 33,010, and is summarized in Attachment D - Advertising Fund Allocation Summary for FY 2015-16 and 2016-17. Next Steps Should the Board approve the proposed recommendations, staff will update the Advertising Program Policy as approved and incorporate the final grant awards into the Advertising Program budget through the FY 16-17 budget process. Prior Board Actions: 2/10/15: Board adopted updated Advertising and Promotions Policy and approved FY 2016-17 Advertising Program grant awards and funding allocation. 6/15/15: Board approved Advertising Program grants for FY 2015-16 as part of the budget hearing process. 12/8/15: FY 2015-16 Supplemental Advertising Program Grant Awards Strategic Plan Alignment Goal 2: Economic and Environmental Stewardship Through grants provided to local non-profits to promote the county and encourage tourism, the Advertising Program encourages economic development and job growth. Expenditures Fiscal Summary - FY 15-16 Funding Source(s) Budgeted Amount $ County General Fund $ Add Appropriations Reqd. $ State/Federal $ $ Fees/Other $ $ Use of Fund Balance $ $ Contingencies $ $ $ Total Expenditure $ Total Sources $ Narrative Explanation of Fiscal Impacts (If Required): Grant awards are for FY 16-17, there is no fiscal impact on FY 15-16 as a result of this action. Adjustments will be incorporated into the supplemental FY 16-17 budget based on Board approval of these recommendations. Position Title (Payroll Classification) Staffing Impacts Monthly Salary Range (A I Step) Additions (Number) Deletions (Number)
Narrative Explanation of Staffing Impacts (If Required): Attachments: Attachment A DRAFT Advertising and Promotions Policy (Red Line) Attachment B Final DRAFT Advertising and Promotions Policy for adoption Attachment C FY 16-17 Grant Award Recommendations Attachment D Advertising Fund Allocation Summary for FY 2015-16 and 2016-17 Related Items On File with the Clerk of the Board: