PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 05/18/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION ESTABLISHING A CITY COUNCIL ADOPTED POLICY ON FUNDING ONE-TIME, DISCRETIONARY GRANT AWARDS BY THE CITY COUNCIL FOR SPECIAL EVENT ACTIVITIES AND EVENTS SPONSORED BY ELIGIBLE NON-PROFIT ORGANIZATIONS LOCATED WITHIN CITY INCORPORATED LIMITS; AND AUTHORIZING A ONE-TIME ANNUAL FUNDING APPROPRIATION OF $30,0000 FROM THE FY 2026-27 CITY MANAGER CONTINGENCY OPERATING RESERVE (FUND 190), EFFECTIVE JULY 1, 2026
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Under Major Policy Goal: Focus In Economic Development and Fiscal Diversification, Policy 410. Continue Best Management Practices with Fiscal Resilience, Fiscal Excellence And Fiscal Transparency is an adopted policy item contained in the adopted FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA as a budget or financing mechanism pursuant to 14 Cal. Code of Regulations section 15378(b).
BACKGROUND
For more than a decade, the City of San Pablo has provided one-time financial support to local organizations hosting special events that benefit our local residents. While this practice has served as a valuable tool for promoting community engagement, no formally adopted policy currently governs how these awards are evaluated, allocated, or reconciled with other City grant programs. The absence of a structured policy framework has created the potential for inconsistent policy decision-making, duplicative financial assistance or grant awards (commonly referred to as “double-dipping” between the Annual San Pablo Community Grant Program and Special Event Sponsorship funding), and exposure to fiscal and constitutional risk.
The proposed City Council Policy establishes clear eligibility criteria, funding tiers, application timelines, and reporting expectations, while preserving the City Council's discretion to award funding consistent with the Council's Annual Adopted Priority Workplan. Adoption of this new policy will modernize an established practice, strengthen fiscal accountability, and ensure compliance with Article XVI, Section 6 of the California Constitution concerning “gift of public funds.”
City Historical Practice (Prior to FY 2010-11)
Before Fiscal Year 2010-11, the City Council routinely authorized funds for special event sponsorships through the City Council Department's Community Grants budget account 100-1110-44050 without a formalized review process or criteria-based policy.
Funding awards were made at Council discretion, including private groups, individuals, and faith-based entities. In FY 2009-10 alone, $42,000 was budgeted for this purpose, with prior-year expenditures averaging approximately $100,000 annually. These practices were deemed legally questionable under Article XVI, Section 6 of the California Constitution, which prohibits public agencies from giving or lending public money or anything of value to any private person, association, or corporation.
City Programs and Polices Implemented (After FY 2010-11)
Following these concerns, the City Manager implemented a series of corrective measures with City Council approval, including:
1. Special Event Permit Ordinance and Policy Program: Adoption of Ordinance No. 2010-004, which established San Pablo Municipal Code (SPMC) Chapter 9.24, requiring a Special Event Permit Program administered by the San Pablo Police Department.
2. Budgeted One-Time Special Event Grant Awards: Beginning in FY 2011-12, the City formally budgeted a maximum of $30,000 annually in the City Council Departmental Budget (#100-1310-44050) for special event activities and sponsorships, limited to qualified, registered non-profit organizations with the State of California or fiscal agents who are registered.
3. Annual San Pablo Community Foundation Grant Program: Adopted by the City Council on April 4, 2011, via Resolution No. 2011-043, this program provides a structured, criteria-based grant award process for qualified non-profit organizations, administered by a Council-appointed San Pablo Grant Committee.
New Proposed Policy
Despite the above program implementation, no formally adopted policy currently governs the annual one-time grant awards for special event activities and sponsorships. As a result, recurring non-profit organizations have, in some instances, received funding from both the Annual San Pablo Community Grant Program AND Special Event Sponsorship Grant Awards in the same fiscal year period (July 1 - June 30th). The proposed policy resolves this inconsistency.
The proposed Policy on Annual One-Time Discretionary Public Grant Assistance establishes the following proposed policy framework:
I. Purpose and Scope
The proposed formal policy supports local special activities and events that benefit local San Pablo residents that are held within City incorporated limits, consistent with the City Council's Annual Adopted Priority Workplan. All funded events by the City under this grant program must be open to the non-exclusive to the general public.
II. Eligibility Criteria
• Funding is limited to non-profit organizations with active 501(c)(3) or 501(c)(6) status registered with the State of California.
• Organizations that do not meet these criteria may apply through an eligible registered non-profit acting as a Fiscal Agent.
• Private individuals, school districts, and other governmental agencies are not eligible to receive funds directly.
• Recipients of the Annual San Pablo Community Grant Program in the preceding fiscal year are ineligible for special event sponsorship funding until the next fiscal year, eliminating “double-dipping.”
• Councilmembers and members of Council-appointed boards and commissions may not request or solicit funding under this policy on behalf of any organization.
III. Application Process
All requests must be submitted to the City Manager's Office at least sixty (60) days prior to the scheduled event. Final award decisions require majority vote approval of the City Council by adopted Resolution.
IV. Funding Structure
The City Manager recommends that the previous annual funding allocation be established under the newly adopted policy with the following recommended funding structure, as follows:
• Total Annual Allocation: $30,000
• Funding Source: City Manager's Contingency Operating Reserve (Fund 190)
• Award Tiers (see table below):
|
Funding Request |
Award Amount |
|
First-time funding request |
$1,500 |
|
Second-time, recurring funding request |
$2,500 |
|
Third-time, recurring funding request (Maximum Award) |
$5,000 |
The City Council retains discretion to approve up to the $5,000 maximum award by majority vote, even if the City Manager recommends a lower amount, in cases involving exceptional circumstances or demonstrated public benefit. The City Council may also augment program funding one-time if program funds are exhausted, by adopted Resolution, up to a maximum of $5,000 during the fiscal year period ending June 30th.
V. Sponsorship Recognition
Funded events constitute “official City sponsorship” and must display the City of San Pablo official logo on all promotional materials and social media communications.
VI. Permit and Fee Compliance
Events held on City property or within the public right-of-way must comply with SPMC Chapter 9.24 (Special Events Ordinance). All required City service fees (i.e. Community Services, Police Department, Public Works) must be paid in full prior to permit issuance. Liability insurance and required City staffing fees must be paid directly to the City prior to special event permit issuance under Chapter 9.24 requirements.
In summary, under a formal policy, this program advances the City Council's Annual Adopted Priority Workplan by:
• Strengthening fiscal accountability and transparency in discretionary grant-making;
• Supporting community-driven events that enrich the quality of life for San Pablo residents;
• Aligning current municipal practices with State constitutional and statutory requirements; and
• Eliminating duplicative funding awards across City financial assistance grant programs.
FISCAL IMPACT
Annual program allocation of $30,000 will not be budgeted to fund special event sponsorships awards as a recurring operating budget expense in the City's adopted General Fund Operating Budget under City Council Departmental Budget account 100-1110-44050, effective July 1, 2026.
Note: A total of $20,000 was re-directed to the City’s Annual San Pablo Community Foundation Grant Program increasing the City’s GF annual contribution from $55,000 to $75,000 annually, pursuant to Resolution #2026-012 on February 2, 2026, and included in the Preliminary DRAFT Budget for FY 2027 - 2028 for scheduled adoption via Resolution(s) on June 15, 2026.
A total of $30,000 will be appropriated from the FY 2026-27 City Manager's Contingency Operating Reserve (Fund 190) for one-time special event sponsorships per the adopted Fiscal-Resiliency Reserve Policy, effective July 1, 2026. This new funding approach ensures a transparent funding source for eligible annual special event sponsorships while maintaining General Fund flexibility.
ATTACHMENTS:
Att A - Resolution
Exh A - Proposed City Council Policy