City of Reno
Nevada

Resolution
11862

Staff Report (For Possible Action): Resolution approving Artown sponsorship for the July 2020 Festival and approval of the agreement up to the amount of $125,000. (Room Tax Fund)

Information

Department:City Manager - Special EventsSponsors:
Category:ResolutionProjects:Other

Attachments

  1. Printout
  2. 2019 Artown Board & Executive List (This file has not yet been converted to a viewable format)
  3. 2019 Funding Chart
  4. Artown Agreement for Festival 2020 (This file has not yet been converted to a viewable format)
  5. Artown Council Brief

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council adopt the Resolution including approval of the agreement up to the amount of $125,000 for Artown 2020 Sponsorship and authorize the Mayor to sign.

 

Proposed Motion:  I move to adopt the Resolution and approve the Agreement up to the amount of $125,000 for Artown 2020 Sponsorship and authorize the Mayor to sign.

Staff Report Formal Body

Summary:  Staff recommends Council adopt the Resolution granting up to the amount of $125,000 to Artown and approve the Agreement for Festival Sponsorship for Fiscal Year (FY) 20/21 to produce the July 2020 Festival.

 

Previous City Council Action:  The City’s sponsorship has increased over time from $40,000 in 1997 to $125,000 in 2007 and 2008.  The City sponsorship was reduced in 2009 and 2010 to $120,000 (representing a four percent reduction) due to budget constraints but was returned to the $125,000 amount in 2011, 2012 and 2013.  FY 13/14 was reduced to $112,500 through additional budget constrictions. In 2015, the City added back $12,500 in the adopted Room Tax Fund budget for a total of $125,000 for the 2015 Artown Sponsorship.

 

Council also moved the Artown Festival Sponsorship to the City Manager’s Office Special Events fund for sponsorship in 2015 and it continues in this fund.  Council allocated $10,000 of additional funding in FY18/19 therefore the Artown funding was increased from $125,000 to $135,000. 

 

Background:  Artown was founded by the City of Reno Arts and Culture Commission (RACC) in 1996.  It is now operated and produced by a nonprofit organization that is funded through a combination of funding sources, including City of Reno financial support. Artown is a month-long festival bringing both local residents and visitors into the downtown core area in addition to a variety of venues throughout the City and region.

 

Due to the organization’s need to meet their obligations in preparation for the Festival in July, the City has traditionally released the funds in the third and fourth quarters of the fiscal year to the organization.  This is the only arts sponsorship or arts grant that the City pays in advance of the event.  All other arts grants and sponsorships are paid on a reimbursement basis.  The City has made an exception for Artown because they require seed money to produce the marketing materials and for general operating costs in order to produce the Festival which begins the first day of the next fiscal year. Because the funding agreement is signed prior to the adopted budget the City added a Funding Out clause to the agreement (pg. 3, 2.9 of the Artown 2020 Agreement) stating that in the event that the City has failed to appropriate or budget funds for the purposes specified in this agreement, or that the City has been required, in its sole judgment, to amend previous appropriations or budgeted amounts to eliminate or reduce funding for the purposes in this Agreement, the City’s obligation to fund any unpaid amounts shall be modified or eliminated in accordance with the City’s appropriations or budget decision and the Agreement shall deemed so modified or terminated without penalty, charge or sanction.

 

Discussion:  During the FY19/20 budget hearings, Council directed the Reno Arts and Culture Commission (RACC) to give a recommendation on Artown and the Pioneer Center annual sponsorships. The RACC is recommending that Artown and the Pioneer Center Annual sponsorships both be reduced by 10 percent for five years for a total of 50 percent and use the additional room tax Council funding to continue the Art Belongs Here Program with requests from the NEA for an Art Works grant for program and add additional dollars into the grant program for funding new arts organizations. This recommendation would reduce Artown’s sponsorship in FY20/21 to $112,500. This item has been placed on the agenda for the full amount if Council wishes to grant full budgeted funding.

 

Financial Implications:  $125,000 sponsorship to Artown is budgeted and available in the Room Tax Fund.

 

Legal Implications: Legal review completed for compliance with City procedures and Nevada Law. NRS 268.0962(2)(b) allows the City Council to allocate room tax funds to “advertise the resources of that…incorporated city related to tourism, including available accommodations, transportation, entertainment, natural resources and climate, and to promote special events related thereto.” NRS 268.028(1) states the governing body or its authorized representative may make grants by resolution to nonprofit organizations created for religious, charitable or educational purposes, to be used for any purpose which will provide a substantial benefit to the inhabitants of the city. There is a “Funding Out” paragraph 2.9 to the Agreement to provide additional financial flexibility. 

Ordinance or Resolution

RESOLUTION APPROVING ARTOWN SPONSORSHIP FOR THE JULY 2020 FESTIVAL AND APPROVAL OF THE AGREEMENT up to the amount of $125,000 (ROOM TAX FUND).

 

WHEREAS, the City of Reno may grant funds to a nonprofit organization created for religious, charitable or educational purposes pursuant to NRS 268.028 when such expenditure provides a substantial benefit to the inhabitants of the City; and

 

WHEREAS, Artown is a qualifying Nevada domestic nonprofit 501(c)(3) corporation created for religious, charitable or educational purposes which has requested funds to offset expenses for the annual Artown - Reno Summer Arts Festival event to be held in July 2020, and to thereby assist with the advancement of arts and culture in the City, and

 

WHEREAS, the City of Reno finds the grant to Artown will help further the advancement of arts and culture in the City and thereby provide a substantial benefit to the inhabitants of the City; and

 

WHEREAS, the grant is subject to conditions contained in an agreement in the form attached hereto;

 

NOW, THEREFORE, BE IT RESOLVED that the City of Reno approves the grant up to the amount of One Hundred and Twenty-Five Thousand Dollars ($125,000) for Festival Sponsorship by the City of Reno to Artown to be used as designated in and subject to the conditions set forth in the attached grant agreement; and,

 

BE IT FURTHER RESOLVED, that should this grant or any portion thereof not be used as set forth in this Resolution, any unused funds shall be returned to the City of Reno.

 

Upon motion by Council Member                                , and seconded by Council Member

                               , the foregoing Resolution was passed and adopted this ________ day of

                               , 2020, by the following vote of the Council:

AYES:

 

NAYS:

 

ABSTAIN:

 

ABSENT:

 

 

APPROVED this           day of February, 2020.

 

 

______________________________________________________

HILLARY SCHIEVE

MAYOR

 

 

 

 

ATTEST:

 

_______________________________________________

ASHLEY TURNEY

CITY CLERK