It is the purpose of this article to regulate the city’s sponsorship of nonprofit organizations in order to ensure that sponsorships are granted in an orderly manner and that the city’s public purposes are advanced through sponsorships and related events.
(Ordinance 558-15, sec. 2, adopted 5/19/15)
(a) 
Mandatory process.
All determinations of whether the city will fund or grant a sponsorship to a nonprofit organization shall be made by the city council in a meeting held in compliance with the Texas Open Meetings Act.
(b) 
Criteria.
The following is the exclusive criteria to be used by the city council in determining whether to fund or grant a sponsorship of a nonprofit organization.
(1) 
The mission of the sponsored organization shall be consistent with the city’s mission, values and/or strategic plan.
(2) 
The principal benefactor of any sponsored event must be a verified tax exempt or nonprofit organization (“nonprofit organization”). Any payment made by the city to a nonprofit organization may not be a gift or donation, must be memorialized in a written sponsorship agreement, and may only be paid as consideration for: (i) the fair market value of one or more services, goods, or benefit provided to the city; (ii) the nonprofit organization’s promise to undertake a public purpose that the city would normally fulfill; or (iii) a combination of the foregoing.
(3) 
The products, services and marketing goals of the potential sponsored organization shall be compatible with the city’s mission, values, policies and ordinances.
(4) 
The sponsorship should enhance the city’s community facilities, community programs, community events, community services, and/or the parks and recreation system.
(5) 
The conditions of the sponsorship shall be consistent with the standards, aesthetic values, and visual integrity of city property and expectations of users.
(6) 
Tangible and intangible benefits should be reasonably balanced for both the sponsored organization and the city.
(7) 
The sponsorship shall not commit the city to additional responsibilities, legal liability, operations and maintenance costs beyond what is expressly stipulated in the written sponsorship agreement.
(8) 
Sponsorships that create a conflict of interest for the city shall not be considered.
(9) 
Sponsorships that result in undue influence on city operational duties or policy decisions shall not be considered.
(Ordinance 558-15, sec. 2, adopted 5/19/15)
(a) 
Application.
Each year qualifying organizations may submit a non-profit sponsorship application on a form supplied by city staff. The city administrator (or his/her designee) will review each application for technical compliance and summarize a list of requests, which will be brought forward to the city council as part of annual budget deliberations. This application should include:
(1) 
A cover letter on official letterhead;
(2) 
A completed and signed application form;
(3) 
A current list of business and foundation donors with their contribution level;
(4) 
Operating budget from the current year and proposed for next year;
(5) 
A copy of the nonprofit organization’s audited financial statements from an independent accounting firm;
(6) 
A copy of the nonprofit organization’s nonprofit or tax exempt status; and
(7) 
A list of the members serving on the nonprofit organization’s board of directors, including names, titles and affiliations, as applicable.
(b) 
Withdrawal.
A nonprofit organization may withdraw the sponsorship proposal at any time during the approval process.
(c) 
Agreement.
All nonprofit organizations receiving a city sponsorship shall enter into a written agreement with the city setting out the parties’ respective rights and obligations. A nonprofit organization may terminate agreement within 30 days of execution of the agreement. However, if the agreement includes funding for ongoing services or one-time services which will not occur as a result of said termination, the nonprofit organization will be obligated to pay back all or a prorated portion of the sponsorship funding, or the cost of the one-time service, as applicable. To the extent that a nonprofit organization fails to provide a promised public purpose, then the nonprofit organization shall make full repayment to the city of any payments made by the city in exchange for such promise and any damages sustained by the city including interest at the highest rate allowed under law. Terms shall be set forth in every sponsorship agreement to allow enforcement of the provisions of this subsection.
(Ordinance 558-15, sec. 2, adopted 5/19/15)
(a) 
The city may also choose to participate in sponsorships of events held within the city limits or extraterritorial jurisdiction. Consideration shall be given to factors such as those listed in section 4.09.031(b), including but not limited to compatibility with city values, mission, and strategic goals. Under no circumstances shall the city be obligated to participate in any event, and any prior participation shall in no way bind the city to future participation.
(b) 
Any event held on city property, utilizing city rights-of-way, involving the use of city equipment, logo, city name, or requiring the presence of city field staff, such as police, fire, or public works, shall require an event permit to be separately obtained by application on a form supplied by city staff.
(c) 
If such event includes any direct funding or monetary considerations to a nonprofit organization, the applicant shall proceed according to section 4.09.032 prior to obtaining an event permit. If said sponsorship includes no direct funding or monetary consideration to a nonprofit organization, the applicant still must apply for an event permit. The city, at its sole discretion, may elect to waive the event permit application fee.
(d) 
Any nonprofit organization that obtains any benefits under this policy or participates in any sponsored event shall comply with all applicable law, including but not limited to city ordinances and regulations, and may be prosecuted for violations.
(Ordinance 558-15, sec. 2, adopted 5/19/15)