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HomeMy WebLinkAboutItem #05 Approval to Provide an Initial Financial Donation of $2,500 for Ocoee World Fest ocoee florida AGENDA ITEM COVER SHEET Meeting Date: January 19, 2016 Item # Reviewed By: Contact Name: Al Butler, Support Services Department Director: Contact Number: 407-554-7063 City Manager: /4"/ Subject: Authorization to provide in-kind support and to make an initial financ : donation of $2,500 for Ocoee World Fest, which would be organized and managed by a not-for-profit organization to be established as a Florida corporation with assistance from the City Attorney. Background Summary: The city's Human Relations Diversity Board (HRDB) formed a subcommittee in 2014 to develop the concept of an International Cultural Exposition to be held at Bill Breeze Park on May 13-14, 2016. Mr. William Maxwell, subcommittee chair, made an appeal to the City Commission during the FY 2015 budget development process for additional HRDB funding earmarked for the event. The Adopted FY 2015 Budget subsequently included $12,000 as seed money to get the event effort started, with the expectation that additional funds would be provided by donors and sponsors. The City Commission also approved the event's use of the Lakeshore Center, Bill Breeze Park, and Lakeshore Drive without payment of the required fees. To date, approximately $8,000 of the event budget has been expended or encumbered, the majority going to a contract with BeatCreative Marketing, Inc. to develop a marketing program that includes fundraising materials and a website. Subcommittee Chair Maxwell made a presentation regarding the event, now called the Ocoee World Fest, at the December 15, 2015, City Commission meeting. His presentation included a proposed budget of$125,000 in revenues and $118,000 in expenditures. The proposed budget notably included a provision for about $57,000 of the required revenue to come from event income sources, such as parking fees, alcoholic beverage sales, vendor space fees, VIP ticket sales, and merchandise sales. The City Commission directed staff to work with the City Attorney to identify ways for the event planning process to move forward, particularly with regard to financial management issues. Following internal discussions between the Support Services and Finance departments and subsequent meetings with the City Manager and City Attorney, two options were developed that met the financial management requirements of state law and governmental accounting standards. Those requirements and standards require that purchase orders and contracts be tied to a specific budget allocation and that funds be in hand at the time of financial commitment. The first option was to conduct the festival as a city event in May 2016 under the auspices of the HRDB, like the Rev. Dr. M.L. King, Jr. Parade & Celebration, using the remaining event budget allocation supplemented by any donations that may be timely received; i.e., before purchase orders were issued or contracts signed. The second option was to form a not-for-profit organization that would conduct the event with in-kind and direct financial support from the city and other parties. This second option provides a greater degree of financial flexibility, such as to make commitments in expectation of future 1 funding at the time payment becomes due. The City Attorney offered the pro bono services of his firm to help establish the not-for-profit state corporation in such a way as to support a future application to the IRS for 501(c)3 status as a charitable organization. Such a status would aid fundraising efforts by making donations tax deductible. The event planning subcommittee unanimously selected the second option based on their determination not to diminish the scope of the event to the level required by the currently limited funding, and with a change in date to the Spring of 2017. The HRDB also endorsed the not-for-profit corporation option and a Spring 2017 date for the first event at their January 7, 2016, meeting, along with a recommendation to the City Commission that $2,500 of the remaining event budget allocation be provided to the new corporation as start-up funding. Issue: The HRDB recommends that the City Commission support creation of a not-for-profit organization to take over planning, fundraising, and operation of the event now known as the Ocoee World Fest, along with making an initial financial contribution of$2,500. Recommendations Staff recommends that responsibility for the Ocoee World Fest (f.k.a., the International Cultural Exposition) be transferred to a new not-for-profit organization to be incorporated in the State of Florida, and that $2,500 of current HRDB budget be donated by the city to that corporation once it is established. In addition, the city would continue to honor its financial commitment for Purchase Order 1423501 for $6,450 to BeatCreative Marketing, Inc. using previously encumbered HRDB funds. Marketing and fundraising efforts related to the event should be suspended until such time as the not-for-profit organization has been legally established. The actual form of the not-for-profit corporation, such as its membership, bylaws, and governance structure, has yet to be determined. Accordingly, staff recommends that city representatives remain involved in the process and that any proposed continuing involvement by the city in the organization's governance be reviewed by the HRDB and approved at a subsequent City Commission meeting. The HRDB also voiced support for continuing city funding of the event in the amount of $2,500 for the second and third years of operation. Staff will include this proposal in its budget planning process for Fiscal Years 2017 and 2018. Attachments: Draft minutes of the January 7, 2016, HRDB meeting. Financial Impact: The recommendation is accommodated by available HRDB funds. Type of Item: (please mark with an"x") Public Hearing For Clerk's Dept Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A 2 CITY OF OCOEE Minutes of the Human Relations Diversity Board Regular Meeting Held January 7,2016 I:CALL TO ORDER HRBD meeting was called to order by Chair Calloway at 7:03 pm in Room 109 at Ocoee City Hall located at 150 North Lakeshore Drive,Ocoee, Florida. Pledge of Allegiance and Moment of Personal Reflection: Member Briggs led the board in the pledge of allegiance to the U.S.flag;followed by Chair Calloway asking that we each take a moment for personal reflection. Roll Call and Determination of Quorum: Secretary Washington preformed roll call and determined that there was a quorum (8 of 10). In attendance at the time meeting was called to order and roll call taken were: Chair Calloway, Member Dawkins, Member Foster, Member Maxwell, Member Crown, Member Briggs, Member Ruiz and Member Hershaw. Member Daily joined the meeting at 7:38 pm. Also present: Commissioner Keller, Joy Wright, Community Relations Manager and Al Butler, Support Services Director.Absent was Member Freeman. Keller and Wright are also HRDB members, but they do not count towards the quorum as they are non-voting. Review Agenda for Tonight Meeting: Chair Calloway reviewed the agenda for the night. Review of Minutes: Member Maxwell asked to review the minutes.Chair Calloway asked to move the approval of the Minutes of the December 3, 2015 to the end of meeting. Comments from Citizens/Public: Citizens came to talk about the cemetery(Agenda Item C),which was moved up to accommodate them. Dotty Linkowski, HOA President said this community has concerns about the cemetery. Their concerns were more about traffic into their subdivision and vandalism with the gate unlocked. Discussion ensued regarding traffic and safety. Commission Keller discussed the idea of having the gate locked during specific hours of the day. Design will be done by Public Works Department starting at the end of January. Once plans are received,the HOA will be given an opportunity to review and comment. II: BUSINESS FOR DISCUSSION Budget Report: Member Wright reported that the Board had a current fund balance of$10,044.04. Director Butler said that a little over$3,300.00 is still to be paid to BeatCreative, plus items for the MLK Parade. Cemetery: Discussed previously. Rev. Martin Luther King,Jr. Celebration: Member Wright said as of today we had 26 participants and she was looking for volunteers at Citrus Elementary and West Oaks Mall. Chair Calloway, Member Wright, Member Dawkins and Ron Cordoza will be at Citrus Elementary. Member Foster, Member Dailey, Member Briggs and Member Crown will be the volunteers at West Oaks Mall. Support Services will supply the audio system. Member Dawkins asked about decorations for the stage. Discussed ensued. Member Dawkins made a motion to allocate funding for general decorations for the stage in the amount of$600.00. Seconded by Member Crown. Motion approved unanimously. Member Wright will be sending out an email verifying the celebration schedule. Essay Contest: Essays will be due from the participating schools on February 5, 2016. City staff will distribute the essays to judges February 12,2016 with the award ceremony tentatively set for February 25,2016. Member Wright to find out if the Lakeshore Center would be available for this ceremony. Judging will be the week of February 15, 2016. Judges are: Members Dawkins,Crown and Hershaw. Ocoee World Fest: Member Maxwell updated HRDB regarding the Ocoee World Fest. He had met with the City Commission on December 15, 2015 and came away with the feeling that they liked the idea of the World Fest. They directed staff to work with the City Attorney to explore implementation of the proposed event plan. Two options were developed as a result of those discussions: 1—Hold the event as planned in 2016 using only the city funding. 2—Conduct a larger event in 2017 through an independent not-for-profit organization. Staff saw the budget for the first time on December 15, 2016. Expenditures were stated to be $118,000.00 with the revenue of$125,000.00. By law,the city cannot do a "cash flow" event based on future revenues. City Attorney has volunteered his time to establish an independent not-for-profit organization. Member Maxwell read his recommendation to the Board (memorandum attached). Event committee is to attend February 19, 2016 Commission meeting with recommendation—would like the members of HRDB to attend meeting. Motion to approve recommendation made by Member Crown and seconded by Member Dawkins. Unanimously approved. Member Dawkins made a motion to donate$2,500.00 as startup funds for this organization. Seconded by Member Hershaw. Passed unanimously. Other Business: None. Set Next Agenda: Chair Calloway, along with input from the board, set the agenda for the next meeting, which will be held on February 4, 2016, said Agenda was established as listed below: I. CALL TO ORDER A. Pledge of Allegiance and Moment of Personal Reflection B. Roll Call and Determination of Quorum C. Review of Excused Absence(s) D. Review Agenda for Tonight's Meeting E. Review of Minutes for December 3, 2015 and January 7, 2016 II. BUSINESS FOR DISCUSSION A. Comments from Citizens/Public B. Budget Report C. Cemetery D. Rev. Martin Luther King,Jr. Celebration -follow up E. Essay Contest F. Ocoee World Fest G. Set Next Agenda III. QUESTIONS/COMMENTS IV. ADJOURNMENT III:QUESTIONS/COMMENTS: None. IV:ADJOURNMENT: The meeting was adjourned at 9:10 pm by Chair Calloway. AUTHENTICATION: These are the official minutes of the Ocoee Human relations Diversity Board, as accepted by the Board at a meeting held on the date shown below. Any amendments to the minutes as originally prepared by the Secretary are indicated above. Presiding Officer Date