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Application, Notice of Award and Receipt of SBA Shuttered Venue Operators Grant and Expenditure RecommendationsCity of Dubuque City Council Meeting Consent Items # 13. Copyrighted April 4, 2022 ITEM TITLE: Application, Notice of Award and Receipt of SBA Shuttered Venue Operators Grant and Expenditure Recommendations SUMMARY: City Manager sharing information on the application of, award and receipt of two SBA Shuttered Venue Operators Grants for Five Flags Center and is recommending City Council approval of expenditure of funds of the SBA Shuttered Venue Operators Grants for Five Flags Civic Center to be included in FY22 budget amendment #2. RESOLUTION Authorizing the Mayor to execute an application for the SBA Shuttered Venue Operators Grant and authorizing the Leisure Services Manager and the City Manager to approve the application SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Application, Notice of Award and Receipt of SBA Shuttered Venue Operators Grant and Expenditure City Manager Memo Recommendations-MVM Memo Staff Memo Staff Memo Resolution Resolutions THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Application, Notice of Award and Receipt of SBA Shuttered Venue Operators Grant and Expenditure Recommendations DATE: March 31, 2022 Leisure Services Manager Marie Ware is sharing information on the application of, award and receipt of two SBA Shuttered Venue Operators Grants for Five Flags Center and is recommending City Council approval of expenditure of funds of the SBA Shuttered Venue Operators Grants for Five Flags Civic Center to be included in FY22 budget amendment #2. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Marie Ware, Leisure Services Manager THE CITY OF E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager Dubuque iFi■�rla � 2007-2012.2013 za17*2019 SUBJECT: Application, Notice of Award and Receipt of SBA Shuttered Venue Operators Grant and Expenditure Recommendations DATE: 3/30/2022 I IL 111:to] I1IL& I lei The purpose of this memorandum is to notify of application for, award and receipt of two SBA Shuttered Venue Operators Grants for Five Flags Civic Center and recommend expenditure of funds that will be included in FY22 budget amendment #2. DISCUSSION Five Flags Civic Center was affected by the pandemic and qualified for the SBA Shuttered Venue Operators Grant. HR Cook, General Manager and team applied to the program in two separate rounds of funding and were awarded each time. Shuttered Venue Grant funds are limited in the use and can only be utilized for the venue in the following ways: • Payroll costs • Rent payments • Utility payments • Scheduled mortgage payments (not including prepayment of principal) • Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020) • Worker protection expenditures • Payments to independent contractors (not to exceed $100,000 in annual compensation for an individual employee of an independent contractor) • Other ordinary and necessary business expenses, including maintenance costs • Administrative costs (including fees and licensing) • State and local taxes and fees • Operating leases in effect as of February 15, 2020 • Insurance payments • Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds) Awarded Amount: $362,080.13 Match Required: No Application Due Date: July and November of 2021 Grant Award Notification: July and November of 2021 Receipt of Money: July 26, 2021 $241,386.75 and November 30, 2021 $120,693.13 The funds were directly deposited from the federal government in the city's accounts and have been coded under the Civic Center's account, federal grants revenue line item. The first award must be spent by July 31, 2022. Department Involved: Leisure Services Five Flags Civic Center GOAL(S) ADDRESSED Council Goal: Diverse Arts, Culture, Parks, and Recreation: Experiences and Activities Outcome(s) Have family -oriented programs and activities with high level of community participation Value(s) Enriches quality of life GRANT OBJECTIVE The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard -Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program included over $16 billion in grants to shuttered venues, to be administered by SBA's Office of Disaster Assistance. Eligible applicants qualified for grants equivalent to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. SVOG provided emergency assistance for eligible performing arts businesses affected by COVID-19. The SVOG program's mission is to support the ongoing operations of eligible live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters during the uncertain economic conditions caused by the COVID-19 pandemic. There is not a future opportunity to reapply for these funds, at this time. Based upon the funding's limited use requirements outlined on page one of this memo HR Cook, General Manager of Five Flags Civic Center has requested the funds be used in the following way with capital projects being contingent on their upcoming shortfall forecast. • Cover any shortfall of the contracted benchmark (should there be any) for FY22 by applying funds to shows that cancel, postpone or dramatically underperform due to pandemic related ticket sales declines. • Upgrade Five Flags Phone System. Current phone system is failing. The system has been causing problems for staff and customers. It was not upgraded at the time the city upgraded its phone systems. $35,000 • Replace and enhance the sound system in Five Flags Theater $100,000 • Replace outdated and failing projectors in Five Flags Arena for Dubuque Film Festival as well as other events and activities. Current projectors are over 12 years old and need replacement to support ongoing activities. $45,000 • Purchase and replace aging Five Flags floor scrubbers to enhance disinfection of the venue. $20,000 • Purchase and install additional ice maker to decrease the need to transport ice to several concession stands through public areas possibly contaminating said ice. $3,000 • Hire additional full-time maintenance position. $70,000 (including benefits). The current Operations Manager Bob Richardson is retiring in 2023. With over 25 years of experience, knowledge needs to be transferred to a new maintenance person which is essential due to the age of the facility. The individual would be hired and cross trained to assume the Operations Manager position once Mr. Richardson retires. These expenditures meet the requirement of the SBA Shuttered Venue grant. ACTION STEP I respectfully request approval of recommend expenditure of funds of the SBA Shuttered Venue Operators Grants for Five Flags Civic Center to be included in FY22 budget amendment #2. CC: Jennifer Larson, Director of Budget and Finance Nathan Kelleher, Budget/Financial Analyst (Grant -Focused) Prepared by Marie Ware, Leisure Services, 2200 Bunker Hill Rd., Dubuque IA 52001 (563) 589-4262 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13t' St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 106-22 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN APPLICATION FOR THE SBA SHUTTERED VENUE OPERATORS GRANT AND AUTHORIZING THE LEISURE SERVICES MANAGER AND THE CITY MANAGER TO APPROVE THE APPLICATION Whereas, the City of Dubuque applied for a SBA Shuttered Venue Operators Grant; and Whereas, the City of Dubuque will administerthe SBA Shuttered Venue Operators Grant. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, THAT: Section 1. That the Mayor hereby is authorized and directed to submit an application for the SBA Shuttered Venue Operators Grant on behalf of the City of Dubuque. Section 2. That the Leisure Services Manager and the City Manager are hereby authorized to approve the application that is submitted to Small Business Adminstration. Section 3. That the City Manager is hereby authorized and directed to forward said application and resulting standard executed contract to the respective agencies in a timely fashion and as required by the Small Business Administration. Passed, approved, and adopted this 4th day of April 2022. Sri Brad— M. Cavafffgh, Attest: /7 Adrienne N. Breitfelder, City Clerk