U asked for it
When it comes to doling out public dollars, to each their own rationale.
Mammoth Lakes Recreation’s (MLR) recommendations to Town Council for Measure U funding to special events generated much controversy at Wednesday night’s Council meeting in Suite Z. Council deliberated on MLR’s recommendations for both Measure R and U funding, considering proposed allocations for some 30 requests.
Those requests, which ranged from a Whitmore Concession Booth to the Fifth Annual Mammoth Food & Wine Experience, added up to about $1.3 million; MLR, after an eight-hour public meeting on Feb. 9, recommended allocating about $1.2 million, with about $6,000 set aside for matching awards (more on that shortly).
As many familiar with Measures R and U know, this is the first year that MLR, a new non-governmental organization (a la Mammoth Lakes Tourism) intended to support and supplement the town’s Recreation Department, has taken over the allocation process. Because of the timeline of MLR’s formation, the R and U allocation recommendations were part of an interim cycle, intended as a stopgap for recreation, mobility, trails, parks, and arts and culture funding.
Town Council will approve a new application process in the Fall of this year.
MLR Board President Danna Stroud explained that this Measure R and U application process was quite different from the previous application process, with a new and simpler application form, as well as a new categorization system.
Applications were placed in one of five categories: complex (applications MLR deemed needed additional analysis or development before funding), capital (capital and/or maintenance and programming for projects previously funded by Measure R or U), special events (something that occurs in a particular place; a one-time function), arts and cultural programming (something that occurs over a season or year; with multiple occurrences), and administration and maintenance.
Complex projects were set aside with a reserve of funding matching their total ask. Mayor Jo Bacon, who also sits on the MLR Board, noted that these projects will have an opportunity to come back for that funding, should they address lingering issues/questions.
Also new to the application process, several arts and cultural programming applications were approved with matching awards, meaning that if they obtained the same amount from other sponsors, they would quality for a matching amount from Measure U.
But the most controversial new policy was that governing special events funding. MLR recommended an allocation of only 10 percent of an event’s total budget, a dramatic funding cut for events that have relied on Measure U funding in the past.
For instance, Mammoth Rocks/Taste of the Sierra requested $11,000 and was recommended for $4,800; VillageFest requested $15,000 and was recommended for $6,029, Fall Century and Gran Fondo requested $28,000 and was recommended for $9,250, and so on.
Moreover, should the majority of these events generate a net income, they must now pay back their Measure U allocation.
MLR Board member Tom Johnson explained the rationale behind the cuts to special event funding, and the new payback policy. “We received guidance from [Town Attorney] Andy Morris about public benefit [the need for public funds to have a primarily public benefit] and the funding purpose of Measure U … Most of that guidance was very skeptical about the viability of special events under Measure U,” he said.
According to the Agenda packet, it was “the Town Attorney’s opinion that ‘Funds allocated for an event held as a fundraiser for a nonprofit (or for profit) entity would not appear to fit very well into either the R or U list of funding purposes,’” and Morris recommended that “MLR might have to find other sources of funding besides R and U in order to provide financial support for some events or projects.”
Johnson said that MLR felt this was a bigger issue than could be addressed during an interim funding cycle. So in the meantime, MLR made a blanket decision to allocate 10 percent of events’ total budgets, which represents a typical third-year event’s Measure U funding request, Johnson said.
“If in fact it turned out that special events were not going to continue to be funded under U, then we would work as a Board to find a funding solution,” he said.
When Councilmember Colin Fernie tried to pin the Town Attorney down as to whether Measure U should or should not include special events, Morris offered no clear answer.
“Measure U doesn’t say anything about events, it just doesn’t,” Morris said. “It says U funds can be spent for facilities and projects. Does that include events? I don’t know that I can give you a definitive answer.”
Morris noted that information distributed prior to Measure U’s passage included a quote from one community member saying the tax measure would fund events. “Does that mean Measure U should fund events? No,” he said. “Does that mean Measure U should not fund events? No. I just can’t give you a definitive answer.”
Special events organizers and Measure U applicants were far from pleased with this hazy interpretation, nor with how it informed MLR’s funding recommendations.
Eric Wasserman, who was involved in the passage of Measure U, argued that the measure’s language was left intentionally vague to win a majority of votes. He quoted the language of the Measure:
“‘On or after July 1, 2011 all proceeds of the tax and imposed hereunder shall be accounted for and paid into a special fund designated for use by the Town of Mammoth Lakes, and used only for the following purposes: Planning, construction, operation, maintenance, programming and administration of facilities and projects for Mobility, Recreation and Arts & Culture.’”
But, he continued, “Is there a definition in there that says we will build an event center, but we will not fund events?”
Cathleen Calderon, co-founder of VillageFest and current co-director of Mammoth Jazz, which was not recommended for funding because of “serious questions about organizer status and viability of request,” expressed her own frustration.
“As a taxpayer in Mammoth Lakes, I’m finding it a little confusing as to what I voted for with Measure U,” she said. “I interpreted passing of U to encompass events … “
Calderon argued that events are behind the growing success of Mammoth’s summer season—a benefit to the public and to the town.
Matthew Lehman echoed her argument. He noted that during the Town’s financial crisis in 2012, resulting from the lawsuit and declaration of bankrupty, “One of the things we had at our disposal, a cheap, inexpensive method to drive business to Mammoth Lakes, was special events,” he said. “We [supported] that, and last year, we proved our fourth best summer consecutively. I attribute it, and I think there’s really no argument, to special events … I think come summer time, if we see event budgets cut, people are going to go away.”
Mammoth Mountain Ski Area Senior Vice President Bill Cockroft, who organizes both the Kamikaze Games and Fall Century/Gran Fondo voiced concern over the payback policy. “I’m looking for a partner; I’m not looking for somebody to loan me some money. I can loan myself plenty of money to do the event …
The request for us was ‘x’ amount of dollars to be a sponsor or a partner in our event,” he continued. “It became developed afterwards, ‘Oh, by the way, we’ll be a backer of you guys,’ and then that was cut in fifths or tenths. I don’t need a bank.”
Cockroft argued that he and other event organizers would “cook the books” to avoid having to pay back as much of the Measure U “loan.”
“Are you withdrawing your application?” wondered Mayor Bacon.
“I’m going to withdraw my event; that’ll make it easier,” Cockroft replied.
However, Cockroft’s threat was never resolved. When it came time for deliberations, Councilmembers Michael Raimondo, Colin Fernie, and Sheilds Richardson all spoke in favor of increasing the Measure U allocation for special events. The increase they ultimately settled on: 80 percent of the funding request, with the event paying back the award if it generates net income.
Council approved all special events allocations at this level, with only Mayor Jo Bacon dissenting. Council also approved MLR’s recommendations for capital, capital/complex, arts and cultural programming, and administrative and maintenance, and not-funded projects, without any alteration.
Finally, Councilmembers and MLR Board member Johnson seemed to like Dion Agee’s idea of creating a taskforce to study the issue of special events further. “I would also say that we had discussions very much along the lines of Dion’s recommendation.”
Councilmembers unanimously passed a motion directing MLR to work with stakeholders with an interest in special events to provide recommendations to the community regarding funding opportunities and resources for special events.
