Item 4F - MemoM E M O R A N D U M
September 5, 2023
To: Shana Yelverton, City Manager
From: Daniel Cortez, Director of Economic Development & Tourism
Subject: Item 4F: Resolution No. 08-054B, approving the revised Community
Event Participation Policy (CEPP)
Action
Requested: Approve Resolution No. 08-054B, revising the currently adopted
Community Event Participation Policy (CEPP).
Background
Information: The purpose of this item is for City Council to consider revisions to the
Community Event Participation Policy (CEPP). The CEPP, originally
adopted in October of 2008 (Resolution No. 08-054), was developed to
establish guidelines for processing requests for City participation in
proposed community events. This policy was adopted with the intent to help
financially support community events through matching funds that draw
visitors to the community and stay overnight in Southlake hotels.
The CEPP is funded by the Hotel Occupancy Tax Fund (HOT Fund).
Expenditures from the HOT Fund are restricted per Texas Tax Code,
Chapter 351. All HOT Fund expenses must pass the “Two Part Test,” which
includes two criteria. Criteria 1 is that every expenditure must directly
enhance and promote tourism and the convention and hotel industry.
Criteria 2 states that every expenditure of the HOT Fund must clearly fit into
one of the statutorily provided categories.
Since its original adoption, the City Council has approved HOT Fund
guidelines and revisions to the policy. In 2017, City Council reviewed and
approved HOT Fund Guidelines that provide additional policy guidance as
to the expenditure of HOT fund revenues specific to Southlake in
compliance with State requirements. For an event to be approved for CEPP
funding, it must meet the criteria stated in the guidelines for events. In
January of 2019, the Council adopted Resolution 08-054A, amending the
original policy to ensure compliance with the HOT Fund guidelines, provide
greater detail on the definitions of community events, and allow the City
Manager to enter into CEPP Agreements without City Council
Authorization.
Today, any community events that have been eligible for CEPP funds,
specifically Southlake Oktoberfest and Art in the Square, have maintained
the same level of City participation since 2008. This funding cap was set at
$10,000 per event per year, provided the guidel ines were followed and the
Item 4F
event criteria were met. The City has maintained the $20,000 annual
budget for CEPP funding since its inception. The City is now experiencing
more events that are growing in attendance and occurring in public spaces.
Interest from organizations and event organizers has grown in partnering
with the City for CEPP funding. In addition, the CEPP has also served as a
“permitting” tool for large-scale events to be hosted in Southlake.
The need to update the policy to address some of the growing event
concerns has become evident. To this end, City staff has worked to provide
the following updates to the policy:
• Evaluation criteria for applicants have been clarified
• The “permit” application component has been removed from the policy
and established within the Special Event Permit Policy (Resolution No.
23-017)
• Funding limits have been established and updated per the following:
o A Tier I event may receive up to $25,000 if it meets the following
criteria:
▪ The event has been successfully hosted in Southlake for a
minimum of ten (10) years.
▪ The event schedule is spread across three (3) days consecutively
lasting a minimum of twenty-five (25) hours.
▪ The event anticipates a minimum attendance of 20,000 people
per day.
o A Tier II event may receive funding up to $10,000 if it meets the
following criteria:
▪ The event has been successfully hosted in Southlake for a
minimum of five (5) years.
▪ The event schedule is spread across two (2) days consecutively
with each day lasting a minimum of eight (8) hours.
▪ The event anticipates a minimum attendance of 10,000 people
per day.
o A Tier III event may receive up to $5,000 if it meets the following
criteria:
▪ The event has been successfully hosted in Southlake for a
minimum of two (2) years.
▪ The event is scheduled for a minimum of eight (8) hours.
▪ The event anticipates a minimum attendance of 5,000 people per
day.
• Marketing and Signage Support guidelines established with roles and
responsibilities of each party
• Annual percentage increase in funding for Tier I events, provided
funding is available with a maximum limit of $30,000
• CEPP Application streamlined to reflect criteria
The changes proposed in the CEPP reflect current conditions and establish
greater clarity for current and future participants. Staff is now seeking
approval from the City Council of the revised CEPP.
Financial
Considerations: Funding for City participation in approved community events is budgeted
annually from the Hotel Occupancy Tax (HOT) Fund. In the currently
proposed FY 2024 Budget, staff has proposed allocating additional HOT
funds to cover the increase in participation for Southlake Oktoberfest, Art in
the Square, and potentially two new Tier III applicants.
• Current FY 2023 CEPP HOT funding: $20,000
• Proposed FY 2024 Budget CEPP HOT funding: $60,000
Strategic Link: This item is linked to the City’s Strategy Map related to the Focus Areas of
Partnerships and Volunteerism and Safety and Security . The item also
delivers on the City objectives of C2: Enhance the sense of community by
proactively creating opportunities for community partnerships, volunteer
involvement, and citizen engagement; and B1: achieve strong outcomes
through continual evaluation and pursuit of better practices that improve
core business operations.
Alternatives: City Council alternatives include the following:
• Adopt Resolution No. 08-054B as presented
• Adopt Resolution No. 08-054B with revisions
• Deny Resolution No. 08-054B
Supporting
Documents: Proposed Resolution No. 08-054B: Community Event Participation Policy
Staff
Recommendation: City Council approve Resolution No. 08-054B Community Event
Participation Policy (CEPP).
Staff Contact: Daniel Cortez (817) 748-8039
RESOLUTION NO. 08-054B
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
TEXAS ESTABLISHING AND REVISING THE COMMUNITY EVENT
PARTICIPATION POLICY; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Manager shall be responsible to the City Council for the proper
administration of all affairs of the City including the preparation of general policies; and
WHEREAS, the City of Southlake encourages community events that foster the
betterment of the community, attraction of visitors, and the promotion of commerce within
the city; and
WHEREAS, according to the City of Southlake (the “City”) Charter section 4.14(6)
the City Manager is responsible for the administration of the City budget after adoption by
the City Council; and
WHEREAS, the City of Southlake assesses and collect a municipal hotel occupancy
tax in accordance with Chapter 351 of the Texas Tax Code; and
WHEREAS, the City Manager recognizes the need to revise and modify policies to
define City practice regarding the use of hotel occupancy tax revenues with third-party
community organizations, and to provide a clear process whereby those organizations
wishing to host a community event in the City may request City participation; and
WHEREAS, the Community Event Participation Policy accomplishes the purposes
described above in a manner that accommodates the legitimate interests of the City.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS THAT:
Section 1. The City of Southlake hereby approves the Community Event
Participation Policy, specifying general policies relating to City
participation in community events.
Section 2. This resolution shall become effective beginning October 1, 2023
after the adoption by the City Council.
PASSED AND APPROVED ON THIS 5TH DAY OF SEPTEMBER, 2023.
Attest:
____________________________ _____________________________
Amy Shelley, City Secretary John Huffman, Mayor
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Community Event Participation Policy
(CEPP)
1. Statement of Purpose: The purpose of this Policy is to establish and update guidelines
for processing requests for City financial participation in Special Events.
A. Strategic Plan Alignment: This Policy is in place to support the City’s overall
Strategic Plan and alignment with the Council’s strategic focus areas and stated
strategic objectives.
I. Partnerships and Volunteerism: The City Council identified “Partnerships and
Volunteerism” as a focus area when adopting the strategic plan in 2005. Since
then, an objective has been included on the City strategy map: “Enhancing the
sense of community by proactively creating opportunities for community
partnerships, volunteer involvement, and citizen engagement.” A case can be
made, therefore, that this kind of policy would be properly aligned with the City’s
strategy because an opportunity of this kind brings together community groups
and the City to offer high-quality events and volunteer opportunities.
II. Safety and Security: The strategy map includes a focus area of “Safety and
security.” This, coupled with the objective of “Collaborate with select partners
to implement service solutions” addresses the matter of the City’s commitment
to ensure that residents and visitors of Southlake are safe and secure, whatever
their activity. If we develop a successful partnership with these community
groups, coordinate our efforts, and, perhaps, share the costs, the City has
ultimately met this stated strategic objective.
B. Compliance with the Hotel Occupancy Tax State Laws: Funds utilized under this
policy shall comply in all instances with the requirements of Chapter 351 of the
Texas Tax Code as it pertains to the eligibility and expenditure of hotel occupancy
tax funds.
2. Policy Administration: This Policy will be administered through the Department of
Economic Development and Tourism.
3. Definitions: The following definitions shall be utilized in this Policy.
A. Applicant: Shall mean the individual, group, or organization applying for City
participation under the Community Event Participation Policy.
B. City: Shall mean the City of Southlake, Texas.
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C. City Staff: Shall mean the City staff team from the Department of Economic
Development and Tourism (EDT) or other City departments working to implement
tourism-related programs in the City of Southlake.
D. Community Event: Shall mean an event held within the Southlake City limits having
broad appeal and interest by attendees both from the City and outside the City and
meeting the evaluation criteria defined herein. Community Events for the purposes
of this policy must also meet one of the event definitions (Mega Event, Major Event,
Regional Event) found in the City’s Hotel Occupancy Tax Fund Expenditure
Guidelines.
E. Coordinator: Shall mean the City staff person designated by the Director of
Department of Economic Development and Tourism.
F. Director: Shall mean the Director of Economic Development and Tourism
G. Event Types:
i. Regional Event: Primarily regional participants with some national and/or
local participation. Primarily regional audience. Some media coverage. Some
level of benefits but to a lesser degree than major events .
ii. Major Event: Significant proportion of national participants. National
audience. Significant media coverage. High-level benefits.
iii. Mega Event: Primarily national/international participants. Primarily
national/international audience. Extensive media coverage. Significant and
widespread benefits.
H. In-Kind Participation: Shall include the utilization of City staff, providing of City
equipment, utilization of City facilities, or similar participation as approved by the
Director. Examples might include police protection, emergency medical services,
street closure set-up, banner displays, website exposure, facility preparation,
cooperative marketing, etc.
I. Participation Agreement: Shall mean a Community Event Participation Services
Agreement between the City and the applicant responsible for and organizing the
event.
J. Policy: Shall mean the Community Event Participation Policy adopted by Southlake
City Council.
4. Event Eligibility: To be considered for Community Event Participation Funding, the
Applicant must qualify as a Major Event, Mega Event, or Regional Event as listed in Section
3G. In addition, the following criteria shall be utilized by the Coordinator when reviewing
the application and in consideration of any recommendation for participation.
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A. Applicant’s Community Involvement: The Applicant must be active in the
community, be local and frequently engaged in community activities. If the Applicant
is not involved locally, the event must be unique enough to support.
B. City Recognition: The applicant will market and promote the City as a Co-Sponsor
of the event.
C. Eligible Applicants: Community organizations holding a service agreement with the
City, non-profit 501(c)3 organizations, Carroll ISD, or Southlake businesses
representing a charitable organization may apply for Community Event Participation
on City of Southlake property. All other organizations will require further review. In
addition, non-profit organizations must meet the following criteria:
a. The organization must maintain a Southlake mailing address or P.O. Box.
b. Majority of members, including officers must reside in Southlake city limits.
D. Experience of Applicant: The Applicant must have a history of successfully holding
events. The Applicant must have worked successfully with the City on this or other
similar events in the past. The Applicant must be able to demonstrate the
organization’s ability to perform the duties necessary to fund and implement the
proposed event. The Applicant must display consistent proof of quality performance
when hosting the same or similar events.
E. Marketing Efforts: The applicant must have a marketing program to enhance the
likelihood of success of the event.
F. Matching Fund: It is the intent of this Policy to require that the applicant provide a
50/50 match of the contributions by the City, e.g. if staff hours for an event was equal
to $5,000, the applicant would be required to make a payment of $2,500 to the City.
In other words, all City required expenses such as Police services, Fire services
(i.e., inspections), dumpster rentals, power washing of entire event footprint, porter
service, barricade and fencing rentals, and restroom rentals are eligible for a fifty
percent deduction, up to the Applicant’s Tier level funding cap, deducted from the
final invoice from the City.
The Applicant has the opportunity to utilize City vendor services at contracted rates
(if available). City staff will coordinate with the Applicant to determine what services
can be provided.
G. Neutrality: The event shall be non-partisan politically. Any individual regardless of
background, religion, etc. must be allowed to attend and participate. The event
cannot make any effort to promote or facilitate the promotion of a particular position
or political candidate.
H. Special Event Permit Application: The event must have received approval by the
City for a Special Event Permit.
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I. Tourism Impact: The event must have a positive tourism impact and draw visitors
to the City to increase the likelihood of overnight hotel room reservations and visitor
spending with businesses in the City of Southlake. It is the responsibility of the
Applicant to demonstrate this in the application.
5. Staff Review: City Staff will jointly discuss the merits and challenges of the application.
The Director, upon a recommendation from the Coordinator, shall determine the
acceptability of the application and respond to the applicant.
A. Recommendation for City Manager Approval: If the Director deems that the event
as proposed by the applicant meets the purpose and intent of the Policy, a memo
will be placed before the City Manager for approval of a Participation Agreement
outlining all aspects of the participation request.
I. Participation Agreement: The Coordinator prepares this agreement based on
information provided in the CEPP Application for the City Manager's
consideration.
II. Denial of Application: If the City Manager does not find that the application for
City participation in the proposed event meets the requirements or intent of the
City Council adopted Policy, the applicant shall be informed of the decision and
the reasons for the decision. All decisions by the City Manager shall be final.
6. Submittal Requirements: The following shall be applicable to establishing an adequate
application submittal for participation by the City.
A. Eligible Applicants: Applications will only be accepted from Eligible Applicants as
defined in Section 4 of this Policy.
B. Application: An applicant must submit a fully executed application identified in
Appendix ‘A’ herein. This application may be amended periodically by staff if
needed to better administer the Policy. The completed application shall be
submitted to the Coordinator for review. Additional information may be requested if
needed to determine eligibility.
C. Budget: An applicant must provide a detailed budget that includes confirmed funding
sources, confirmed sponsorships, detailed costs, and marketing funding for the
event.
D. Submittal Deadlines: Applications must be submitted at least ninety (90) days prior
to the date of the event.
7. Tier Support Levels: City Staff will determine the Applicant’s Tier level based on the
following criteria:
A. A Tier I event may receive up to $25,000 if the following criteria is met:
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I. The event has been successfully hosted in Southlake for a minimum of ten (10)
years.
II. The event schedule is spread across three (3) days consecutively lasting a
minimum of twenty-five (25) hours.
III. The event anticipates a minimum attendance of 20,000 people per day.
B. A Tier II event may receive funding up to $10,000 if the following criteria is met:
I. The event has been successfully hosted in Southlake for a minimum of five (5)
years.
II. The event schedule is spread across two (2) days consecutively with each day
lasting a minimum of eight (8) hours.
III. The event anticipates a minimum attendance of 10,000 people per day.
C. A Tier III event may receive up to $5,000 if it meets the following criteria:
I. The event has been successfully hosted in Southlake for a minimum of t wo (2)
years.
II. The event is scheduled for a minimum of eight (8) hours.
III. The event anticipates a minimum attendance of 5,000 people per day.
8. Marketing and Signage Support: Applicants may receive the following marketing
support, based on the Tier level they are granted . Costs for marketing support will be
incurred by the City unless otherwise stated. Marketing and signage support can be
requested by the Applicant following the approval by the City of the Community Event
Participation Application:
A. Tier II & III Events:
I. Digital Kiosk in Town Square:
a. Advertisement: An event advertisement, designed by the Applicant and
approved by City Staff, may be placed on the kiosk, if it is fully
operational at that time, for up to one month prior the event. This
advertisement will be designed by City Staff using Visit Southlake’s
branding elements. The Applicant may request the inclusion of their top
sponsor’s logo on the advertisement. Input from the Applicant will be
considered, but the final artwork will be determined by the Director. Any
information and/or logos to be included on the advertisement must be
submitted to the Coordinator six (6) weeks prior to the event. No costs are
required for this item.
b. Schedule and Event Map: The Applicant may submit a digital copy of the
Schedule of Events and/or Event Map to be placed on the kiosk during
the event. Artwork must be designed by the Applicant and approved
by City staff and submitted to the Coordinator a minimum of seven (7)
days prior to the event. No costs are required for this item.
II. Pavilion Banner: The Applicant may opt to hang an event banner on the north
side of Rustin Pavilion for up to one (1) week prior to the event if space allows.
The Applicant is responsible for designing the artwork, ordering, paying
for, and delivering the banner to City Staff. The Applicant must deliver the
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banner to the Coordinator a minimum of fourteen (14) days prior to the event.
City Staff will install the banner.
III. Calendar of Events: The Applicant may opt to include their event on Visit
Southlake’s website Calendar of Events. No costs are required for this item.
IV. Rustin Pavilion Fee: The fee for Rustin Pavilion will be waived for all CEPP-
approved events.
V. Sign Permit Fees: The permit fees associated with approved event signage will
be waived (i.e., Rustin Pavilion Banner, Wayfinding Event Signs, etc.) will be
waived for all CEPP-approved events.
B. Tier I Events: Tier I Applicants will receive all items available to Tier II and III events
plus the following:
I. Town Hall Banner: One (1) Town Hall banner, designed by the City in
coordination with the Applicant and ordered by City Staff, may be utilized
by the Applicant. The artwork may include one (1) sponsor logo. This banner
must be paid for by the Applicant; the charge will be included on the final
invoice from the City. The banner may be placed on the southside of Town Hall
for up to 1-week prior to the event and during the event. City Staff will install
and remove the banner.
II. Pavilion Banner: The Applicant may opt to hang an event banner on the north
side of Rustin Pavilion for up to two (2) weeks prior to the event if space allows.
The Applicant is responsible for designing the artwork, ordering, paying
for, and delivering the banner to City Staff. The Applicant must deliver the
banner to the Coordinator a minimum of fourteen (14) days prior to the event.
City Staff will install the banner.
III. Temporary Kiosks: The Applicant may utilize four (4) temporary kiosk signs
during the event. Artwork must be designed by the Applicant and
approved and ordered by City staff. Signs must be delivered to the
Coordinator a minimum of fourteen (14) days prior to the event. City Staff will
place the signs in designated locations.
IV. Wayfinding Event Signs: The Applicant may utilize up to four (4) Wayfinding
Event Signs, Artwork must be designed by the Applicant and approved
and ordered by City staff, at the expense of the City. The signs may be placed
in the sign holders for up to one (1) month prior to the event if space is available
at that time. The signs may include one (s) sponsor logo.
V. Pole Banners: The Applicant may opt to utilize pole banner spaces in
Southlake Town Square. Pole Banners artwork must be designed by the City
in coordination with the Applicant and ordered by City Staff; the final
invoice from the City will include the charge. The Applicant is also responsible
for providing the event logo to the Coordinator a minimum of sixty (60) days
prior to the event.
9. Participation Limitations: The following are specific limitations to City participation under
the guidelines of this Policy.
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A. In-Kind Participation Only: The extent of City participation shall be limited to “in -
kind” participation as defined herein. Marketing and signage support costs will be
incurred by the City unless otherwise stated. No cash contributions shall be
provided. In other words, funding will be deducted from the invoice from the costs
incurred by the City on non-marketing and signage items. Refer to the Special
Events web page on the City’s website for anticipated costs for an event.
B. Funding: No application for City participation shall be approved when funds are not
available for the event. Funding for CEPP Applications shall be done annually during
the budget process and are subject to City Council approval. There is no guarantee
of annual funding or consistent funding from the City.
C. Funding Cap: No single event shall receive a City contribution in excess of twenty-
five thousand ($25,000) dollars. A two percent (2%) increase may be granted to Tier
I Events only each year but shall not exceed $30,000 dollars. Increase adjustments
will only be made if funding is available and if the Applicant can show that they have
complied with all rules and requirements at any previously hosted events in
Southlake. Ultimately, the Director determines whether the adjustment is justified
from one year to the next.
10. Participation Agreement Revocation: The City may revoke an issued Community Event
Participation Agreement pursuant to this policy upon finding of one or more of the following:
A. The applicant/event organizer has violated one or more of the provisions of the
special event permit, specific use permit, or this Community Event Participation
Policy.
B. The City discovers that the Participation Agreement was obtained by fraud or
misrepresentation.
C. The preparations for the event will not be completed prior to the planned event .
D. The City does not find that the application for the proposed event meets the intent
of the Policy.
E. The applicant has not met or has outstanding required financial obligations to the
City.
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Appendix A
Community Event Participation Application
Application Date: _________________
EVENT INFORMATION
Event Name:
Host/Organization Name:
Event Organizer Name:
APPLICANT INFORMATION
Applicant Name:
Applicant Address: City: State:
Applicant Phone: Applicant Email:
COMMUNITY EVENT PARTICIPATION JUSTIFICATION
Applicant’s Community Involvement: Describe how you and/or the organization you’re representing are
active in the community. Indicate whether they are local and frequently engaged in community activities. If
there is limited local involvement, how is the event unique enough for the City to support?
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City Recognition: How will the City be recognized as a “co-sponsor”? Describe what additional exposure
or recognition will the City receive.
Experience of Applicant: Describe how you or the organization has had a history of successfully hosting
events. Describe how you or the organization has worked successfully with the City on this or other similar
events in the past. Elaborate on the organization’s ability to perform the duties necessary to fund and
implement the proposed event.
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Marketing Efforts: Describe the efforts conducted to establish a marketing program to enhance the
likelihood of success of the event. Provide a copy of the formal plan if one has been created and make
note of it below. Provide details of the marketing program below:
Tourism Impact: What are the beneficial tourism impacts of the proposed event? Describe how this event
will attract visitors, the likelihood of overnight hotel room reservations, and increase visitor spending with
businesses in the City of Southlake.
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Check the box indicating the following items have been provided.
□ A detailed budget is attached that includes confirmed funding sources, confirmed
sponsorships, detailed costs, and marketing funding for the event.
□ A Special Event Permit Application has been approved by the City.
□ A detailed marketing plan listing the channels through which marketing will be conducted
and the associated expenditures.
Neutrality
The applicant understands and agrees that the event shall be non -partisan politically and any
individual regardless of background, religion, etc. must be allowed to attend and participate. In
addition, the applicant understands and agrees that the event makes no effort to promote or
facilitate the promotion of a particular position or political candidate.
By signing below the applicant is indicating they are agreeing to all requirements of this Policy
and are providing all necessary information for the City to determine whether they will enter into
an Agreement with the applicant/ organization to provide event support as outlined in this Policy.
Applicant Printed Name: _____________________________
Applicant Signature: ________________________________ Date: ________________
DO NOT WRITE BELOW THIS LINE
City Staff Comments:
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Director Recommendation: □ Approve □ Deny
Director Printed Name: ______________________________
Director Signature: _________________________________ Date: ________________
Director Comments:
Determination of City Manager: □ Approve □ Deny
City Manager Signature: ________________________________ Date: _____________