TO: Board of Supervisors
FROM: Anthony Halstead - Director of Library Services and Community Outreach
REPORT BY: Anthony Halstead - Director of Library Services and Community Outreach
SUBJECT: FY 2024-25 Arts & Culture Grant Agreements for Recipients
RECOMMENDATION
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Approve and authorize 17 agreements with 14 different organizations for Napa County Arts and Culture Advisory Committee grant awards and a Napa Valley Tourism Improvement District-Unincorporated grant award for the term July 1, 2024, through June 30, 2025. (Fiscal Impact: $267,753 Expense; General Fund $242,753 and Napa Valley Tourism Improvement District [NVTID]-Unincorporated $25,000; Budgeted; Discretionary).
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BACKGROUND
In November 2004, Napa County voters approved an increase in the Transient Occupancy Tax (TOT) rate charged to visitors renting hotel and motel rooms in the unincorporated area. The increase, from 10.5% to 12% took effect on January 1, 2005, and was not dedicated to any specific purpose, thus requiring only a majority vote to pass. Although the revenue generated by the additional 1.5% TOT is fully discretionary, the Board determined that the receipt of additional discretionary revenue provided an opportunity to consider County investments in projects or programs that were a Board priority. To that end, as part of the FY 2005-06 County budget process, the Board established the Special Projects Fund (SPF) to finance programs or projects in two areas: (1) visitor management and (2) parks and open space. On January 23, 2018, the Board discussed the SPF, including reauthorizing a new SPF funding cycle through FY 2022-23 and amending the SPF allocation formula:
• 60% - Parks and Open Space
• 20% - Affordable Housing Programs for hospitality workers
• 20% - Arts and Culture Programs or Services
In April 2023, with the SPF cycle expiring at the end of FY 2022-23, the Board amended the SPF allocation procedures. The amendment renamed the fund to the “Community Investment Fund” (CIF) to better capture the purpose of the fund and redirected the 20% allocation for affordable housing and assigned it to parks and open space. Napa County voters approved an additional 1% TOT dedicated to workforce housing in 2018 and it generates more revenues than the previous SPF allocation. The amended CIF allocation formula is as follows:
• 80% - Parks and Open Space
• 20% - Arts and Culture Programs or Services
Of the 20% arts and culture allocation, 20% of that amount is annually allocated to Arts Council Napa Valley for operating expenses, and the remaining 80% annually distributed through a competitive grant process to arts and culture organizations in Napa County.
BOARD-APPROVED ARTS & CULTURE GRANT GUIDELINES
The purpose of the Arts & Culture Advisory Committee (Committee) is to conduct and oversee a grant program and make recommendations to the Board of Supervisors regarding grant awards made to non-profit arts and cultural organizations in Napa County. The goal is to grow and promote arts and cultural offerings in Napa County for residents and visitors, include more diversity of cultures and voices in the arts, and foster more collaboration among Napa’s arts groups.
The Committee met on October 24, 2022, to discuss amendments to the Arts & Culture Grant Guidelines for the FY 2023-24 grant cycle and the guidelines were approved by the Board in November 2022. The guidelines include two main funding categories and eligible organizations may submit grant requests for two subcategories:
Main Category 1 - Tourism Generating Arts and Culture Organization. This category is for organizations that earn at least 20 percent of their income or patronage from visitors and can submit data that demonstrates its impact/use by visitors from outside of Napa County. It includes the following subcategories:
1. Capacity Building
2. Special Programs & Projects
3. Capital Improvement
Main Category 2 - General Arts and Culture Organization. This category is for organizations that do not receive 20 percent of their income or patronage from visitors outside of Napa County and primarily focus on arts and culture activities for residents of Napa County. It includes the following subcategories:
1. Capacity Building
2. Special Programs & Projects
3. Capital Improvement
Leadership and Professional Development: This subcategory is intended to provide support for nonprofit staff and boards in governance and management training, skills, development, and professional coaching. Both Tourism Generating and General Arts and Culture organizations may apply in addition to their two subcategory requests.
Maximum Grant Requests:
The maximum grant amounts are based on an organization’s annual operating budget:
• Small operating budget (up to $100,000): $7,500 maximum award amount
• Mid-sized operating budget (greater than $100,000 but less than $500,000): $17,500 maximum award amount
• Large operating budget (above $500,000): $27,500 maximum award amount
The maximum grant award for Leadership & Professional Development grants is $2,500, regardless of budget size. The award is not counted toward the above caps on awards.
Collaborative Grant Requests: Two or more organizations may partner on a Special Programs & Projects request in addition to their individual grant requests and Leadership & Professional Development request. The maximum award amount is $20,000, regardless of budget size and no more than $10,000 per participating organization.
Requested Action: Approval of the following Napa County Arts and Culture Advisory Committee grant award recommendations and authorization for the Chair to sign the corresponding grant agreements for the term July 1, 2024, through June 30, 2025, which total $242,753:
Award a total of $121,487 to Tourism Generating Arts and Culture Organizations:
1. Napa Valley Festival Association: $27,500 - Special Programs & Projects
2. Napa Valley Museum: $27,500 - Capital Improvement; additional $25,000 provided by NVTID
3. Music in the Vineyards: $5,169 - Capital Improvement
4. Music in the Vineyards: $21,860 - Special Programs & Projects
5. di Rosa Preserve: $20,000 - Collaborative
6. Napa County Historical Society: $8,500 - Capacity Building
7. di Rosa Preserve: $10,958 - Capacity Building
Award a total of $121,266 to General Arts and Culture Organizations:
1. E & M Presents: $7,500 - Special Programs & Projects
2. Napa Valley Unified Educational Foundation: $27,500 - Special Programs & Projects
3. Bel Canto: $7,500 - Special Programs & Projects
4. Nimbus: $18,556 - Capital Improvement
5. American Canyon Arts Foundation: $7,500 - Special Programs & Projects
6. Lunchtime productions: $7,950 - Capacity Building
7. Napa Valley Art Association: 17,260 - Special Programs & Projects
8. Nimbus Arts: $2,500 - Leadership & Professional Development
9. Cameo Cinema Foundation: $17,500 - Special Programs & Projects
10. Calistoga Theater Company: $7,500 - Special Programs & Projects
Concurrently, the Napa Valley Tourism Improvement District-Unincorporated committee received a proposal to support the Napa Valley Museum’s expansion plan to enhance its attraction and retention of tourists and recommends the County authorize supplementing the grant agreement for $25,000.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
10540 Community Investment and 20700 Napa Valley Tourism Improvement District-Unincorporated Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Community Investment Fund and the funding of arts and culture grants are not required by law but have been identified as apriority by the Board. The award of these grants is in accordance with the Board’s direction to staff relating to the allocation of the Community Investment Fund. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Annual grant award consideration has no commitments for future years. |
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Consequences if not approved: |
If these contracts are not approved, the Board will need to determine alternative grant recipients or arts grant funding from the Community Investment Fund will not be distributed for Fiscal Year 2024-25. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.