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2018-172 Community Market Survey DataDate: November 21, 2018 Report No. 2018-172 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide background information and update status regarding the Denton Community Market BACKGROUND: During the October 16, 2018 City Council meeting, Vicki Oppenheim, Executive Director of the Denton Community Market, gave a brief presentation that highlighted the recent accomplishments and current needs of the market. Following that presentation, the City Council directed staff to research other local community and farmers’ markets to determine the amount of local funding and city support provided. The Denton Community Market is a 501 (c)(3) farmers’ and art market that operates every Saturday from April to November from 9 a.m. to 1 p.m. The market is currently held on the corner of Carroll Boulevard and Mulberry Street in the Denton County Historical Park. The Market is supported financially from the City of Denton, vendor fees, and donations. The Market also receives in-kind support from Denton County including use of the trash dumpster and water from the County’s water hose. For calendar year 2018, the City of Denton provided the Market with $15,965 in Hotel Occupancy Tax (HOT) funds, a $9,150 sponsorship from the City Manager’s Office which expires next year, and has applied for a $4,000 sponsorship through the City’s sponsorship funds. The Market also uses ClearStream Trash and Recycling as part of the City’s borrowing program through Solid Waste & Recycling at no cost. This recycling is taken to one of the City’s recycling drop off centers. Staff surveyed representatives from 9 surrounding communities to request information to compare the City of Denton’s level of support. Of those 9 cities, two receive municipal funding (Carrollton and Farmers Branch), one is operated as a non-profit, one has full-time city staff that contributes to the market (Farmers Branch), and one does not have an official market at all. Attachment 1 is a table outlining the survey data collected, including Denton’s information. DISCUSSION On Monday, November 19, Vicki Oppenheim sent the attached e-mail to the City Council and City leadership stating that she is scheduled to speak during the Citizen’s Report section of the December 4 City Council meeting (Attachment 2). At the December 4 meeting, Ms. Oppenheim plans to discuss the attached request for City of Denton financial support and to highlight a new study on the Market (Attachment 3). The request includes financial support to fund the salary of two employees at $55,978 per year for the Executive Director and $45,213 per year for the Market Vendor Coordinator (payroll taxes are included in these totals). Date: November 21, 2018 Report No. 2018-172 ATTACHMENTS 1. Combined Farmers’ and Community Market Survey Data 2. November 19 Email from Vicki Oppenheim 3. Denton Community Market Proposal for City of Denton Financial Support STAFF CONTACT: Stuart Birdseye Management Analyst Stuart.Birdseye@cityofdenton.com DentonLewisvilleCarrolltonCoppellRichardsonFlower MoundPlanoFriscoFarmers BranchGrapevineIs there a community/farmers' market in city limits?YesNoYesYesYesYesYes (2)YesYesYesDoes the market receive municipal funding?YesN/ANoYesNoNoNoNoYesNoIf yes, ho much municipal funding is provided and what is the funding source?$15,965 HOT Funds (Calendar Year '18) $9,150 CMO Sponsorship (expires 18‐19),      $4,000 Sponsorship Request FY18‐19N/AN/A$75,000 for general management (contracted)N/AN/AN/AN/A$64,000 annually in Parks budgetN/AHow is that funding level determined?Requested through HOT fund process, sponsorship processN/AN/AProposed by staff, approved by Council annually (budget)N/AN/AN/AN/ACovers supplies, restrooms, marketing, etc.N/ADoes City staff contribute/provide in‐kind services to the market? If yes, in what capacity?Trailer inspectionsN/AVendor application review, onsite food safety inspections. Environmental Quality on call staff during the day of the market.A City Liaison troubleshoots and helps with many aspects of operationsOnly in a regulatory capacityNoNoNoFull time Market Coordinator (City staff). Additional City staff also assist with setup/teardownNoDoes the City offer any other in‐kind services?Trash and Recycling Clearstreams and bagsN/ANoPavilion use, utilitiesNoNoNoNoSigns, barricades, trashNoIs the market a registered non‐profit/501c3 organization? If so, does the City have a seat on the Board of Directors?Is a non‐profit, but City does not have a  board seat.N/ANoYes, non‐votingThe Market is a for‐profit businessThe Market is a for‐profit businessUncertain on non profit status. The City has no official board role. Yes, City does not hold a spot on the boardNo (City program)NoIs the market held on City property, County property, or private property?CountyN/APrivate PropertyCityPrivatePrivatePrivateCity, at City Managers requestCityCityAre there any specific permitting requirements?Certificate of Occupancy for the site, Special Events Permit, Vendor Food PermitsN/AYes, farmers' market operators must receive a Special Use Permit from the city to begin operations. Each food vendor/concessioner must apply through Environmental Services for an annual Farmers Market Vendor permit to operate. Inspections are conducted to ensure safety the first day of the vendor operating in the city, then routine inspections are conducted periodically.Must comply with same permitting and ordinance regulations as special events and businessesVendors must receive a Special Use Permit and Health PermitsEnvironmental Health PermitFarmers' Market permit, possible Specific Use PermitHealth and Food Safety PermitsNo (City program)NoApproximate number of vendors160 VendorsN/A39 Vendors40‐50 vendors35 Vendors35 VendorsShops at willow bend: 25 vendors (Saturday), Downtown: 10‐12 (Sunday) vendors35 VendorsAverage 30 vendors (space for up to 55)35 VendorsOther notesOutside OrganizationN/AOperated by Four Seasons MarketsOperated by Coppell Community GardensOperated by Four Seasons MarketsOperated by Four Seasons MarketsOutside Contractor Outside Organization City Staff Outside ContractorCommunity/Farmers' Market Survey Data  From: "Vicki Oppenheim" To: Subject: Proposal for Financial Support of the Denton Community Market Dear Mayor and City Council, As suggested at the recent City Council Meeting, I am submitting a Proposal to request financial support for the Denton Community Market. I will be presenting again on December 4th in the Citizen's Report section of the meeting, highlighting our request and the new study of the Market. I invite all of you to the Holiday Market this Saturday, November 24th, 9AM to 3PM. It is also Small Business Saturday. It will be a festive ending to another successful Market season, with holiday music, Santa Claus, and family activities. Of course, we will offer many locally-produced gift and food items for purchase. In 2019, we will be celebrating our 10th Anniversary, and there is much preparation to do. Thank you again for your continued support. Happy Thanksgiving! Regards, Vicki Oppenheim Executive Director Denton Community Market 940-367-8029 Denton Community Market Proposal for the City of Denton Financial Support November 19, 2018 Denton Community Market • P.O. Box 3057 • Denton, TX 76202 • 940-268-4326 Denton Community Market • P.O. Box 3057 • Denton, TX 76202 • 940-268-4326 Table of Contents Denton Community Market (DCM) Proposal for Financial Support COVER LETTER 5 DCM BACKGROUND 7 QUALIFICATIONS OF DCM TEAM 11 PROPOSED BUDGET FOR SERVICES 13 5 1. Cover Letter 1 Denton City Council RE: Proposal for Financial Support of the DCM Dear Denton City Council, The DCM is pleased to submit our Proposal for Financial Support in response to requests made at a recent City Council meeting. Upon entering its 10th Year in 2019, the DCM has become a Denton community institution in promoting small business incubation, supporting the arts and culture, and providing an important community gathering space to serve residents and visitors from all walks of life. For the past four years, the DCM won placement in the DRC Best of Denton’s Community Event category. The DCM staff has a track record of providing community services with relatively few resources, but requests financial support to continue its mission and to accommodate is growth and scope. This request includes support that is vital to its operations: staff salaries for two core employees of the Market and further support for promotion of its farmers. In both cases, these resources are essential for operations and for attracting visitors to the Market. We appreciate your consideration of this request in supporting this important amenity and small business incubator in Denton. Regards, Vicki Oppenheim DCM Executive Director and Board President DCM PROPOSAL FOR FINANCIAL SUPPORT TOWN OF SUNNYVALE RFP • COMPREHENSIVE PLAN UPDATE 6 3 7 2. 2. DCM Background Founding and Growth The DCM was founded in 2009 and held it first Market in April 2010. In 2019, the DCM will celebrate its 10th Anniversary Season. The DCM has become a community institution in Denton, winning placement in the DRC Best of Denton’s Community Event category four years in a row. The DCM now regularly has 3,000 visitors per week and has an average of 70 vendors out of 160 vendors in total. Community Impacts Recent Statistics Economic Impact Analysis The DCM conducted an Economic Impact Analysis for 2017 with assistance from the University of North Texas Economics Department and the University of Wisconsin Planning Department. • $1.5 million dollars in overall economic impact in 2017 • Estimated sales of nearly $700,000 in 2017 (on Saturdays only) • Strong business incubator (2018): • 23% start-ups, • 22% minority-owned businesses, • 63% women-owned businesses (not mutually-exclusive categories of 126 vendors as of May 2018) • Since 2010, Generated 7 Downtown Brick and Mortars in Denton, 1 brick and mortar in nearby city, 1 Downtown food truck, 2 major online businesses. Numerous small business success stories, too many to mention. • 3,000 visitors per week on average in 2018. The study in the next section will show the interrelationship between the DCM and downtown business support. DCM PROPOSAL FOR FINANCIAL SUPPORT 8 New Study on DCM Visitor Behavior New Study on the Denton Community Market and Visitor Behavior Consumer analytics consulting firm Intalytics performed a market analysis for the DCM. Using smart phone data collected from people who have agreed to share their location data, Intalytics is able to track phone movements of DCM visitors and link visitors to their home city. Based on this analysis, it can be determined that 46 percent of DCM visitors live outside of Denton. Median household income is $68,630. Figure 1 shows the geodemographic segment characteristics of typical visitors, and many visitors are largely young families, young individuals, or more prosperous couples. Figure 1: Top 5 Geodemographic Segments The total sample of visitors is 3,785 people (1 percent Young Families and Invidivuals 30% Young Couples with Children 14% Properous, Established Couples 12% Affluent Middle-Aged Couples 11% Remaining Groups 33% DCM Customers by Top 5 Geodemographic Segments, 2016-2018, Data by Intalytics 9 sample), or 378,500 total visitors for the two years. The sample used for the trip data below is 2,800 people. 1. Trip Data Shows DCM Visitors Frequent the Downtown after the Market Intalytics was also able to discern where DCM visitors went after they left the market. Map 1 shows the density of DCM visitors at various locations in central Denton between 5 and 60 minutes after the Market. The darker-colored areas show areas of higher density. Higher density along Carroll Blvd. Eagle Dr., Elm and Locust streets show cell phone locations along roads as people leave the market. However, there is a high concentration in and around the Square as well. Map 2 shows visitor locations 60 minutes after the leaving the DCM. By this time, while many visitors are back at home, many are also at another location for shopping and dining, especially in the Denton Square area. Map 1: DCM Visitors 5-60 Minutes after Visiting the Market 10 Map 2: DCM Visitors 60 Minutes after Visiting the Market 2. New Hotel Data Shows DCM Visitors Stay in Denton Hotels An analysis of cell phone data locations from 10PM to 6AM on Fridays and Saturday evenings before and after the Market shows that 4.5% of non-resident DCM visitors stay in hotels. The hotels are the 22 listed on the Convention and Visitors Bureau website. If there are 3,000 visitors per week, and 46% are non-residents, that is approximately 62 hotel visits per week during the Market season. From this estimate, there are 2,111 hotel stays per year. This is the most accurate estimate of hotel stays so far for DCM visitors. 11 18 3. Qualifications of DCM Team Vicki Oppenheim, AICP Vicki Oppenheim holds a Master of Science in Urban Planning and Master of Science in Applied Geography. She is the current DCM Executive Director and is an urban planner with over 20 years of experience in community development, development planning, and environmental planning. She is one of the founders of the Denton Community Market and has supported its growth since the first season in 2010. She oversees staff and the overall operations of the Market and participates in grant and fundraising activities. She regularly conducts studies of visitor and vendor trends. She started as an urban planner in New York City working on housing research and pilot projects with community-based organizations’ efforts to rehabilitate housing and prevent housing disinvestment in low- income communities. She subsequently worked on residential, commercial, and industrial development projects in the Dallas Fort-Worth Metroplex. In particular, she has worked on development projects in numerous small towns and cities, including the City of Denton, the City of Sherman, the Town of Cross Roads, City of Celina, and the City of Frisco. She also has a long-term interest in green building and sustainable community development with her firm, Green Leaf Environmental Planning. Vicki is a member of the American Planning Association and the American Institute of Certified Planners. She is currently pursuing an additional graduate degree in Economics at the University of North Texas. These skills are being used to help evaluate the economic impacts of the DCM on the Denton community. EDUCATION Columbia University, NY/MS Urban Planning/1991. Bryn Mawr College, PA/BA Growth and Structure of Cities/1989. University of North Texas, TX/MS Applied Geography/2018. 12 Rachel Weaver Rachel Weaver holds a Master of Arts in Philosophy and Bachelor of Arts in Social Science from the University of North Texas. Her education focused on environmental and community issues, as well as conservation and sustainability. She has served as the Market Vendor Coordinator for the Denton Community Market since August 2016. As Market Vendor Coordinator, she manages the weekly Markets and coordinates vendors, musicians, activities, fundraising, and outreach for the Denton Community Market. This includes managing organization email accounts, website updates, weekly newsletter, and event planning. She participates in grant writing, program development, and community outreach, and acts as Market Vendor Coordinator, Performance Coordinator, Volunteer Coordinator, and Fundraising committee member. Rachel also works part-time at the City of Denton managed Clear Creek Natural Heritage Center and has worked as administrative intern since October 2014. She is the educational building facilitator during the Denton Independent School District seasonal field trips to Clear Creek. She maintains the building and hiking trails, cares for animals on site, and assists teachers and Master Naturalists in educational activities. She maintains the Sustainable Garden on site, and works with other interns on sustainable agriculture and conservation projects. Produce grown in the garden is donated to soup kitchens, and/or seeds are saved for the local seed library. 13 20 38 4. Proposed Budget for Services Current Staff Funding from the City and Salary Comparisons: The Denton Community Market appreciates past City support for its operations. The combination of vendor fees, sponsorships, and fundraisers are still not adequate to fund staff to the levels that are necessary for a living wage and to fund labor time needed for DCM operations. DCM vendor fees are among the highest in DFW and they cannot be raised to remain competitive. The Denton Community Market received HOT Funds and City Council funds for the operations of the Market. There was also the Pawsitive Vibes City sponsorship in 2018 for $4,000. In 2019, the City Council funds of $9,150 per year (approximately $5,000 for staff) that were allocated for four years for porta-potties and staff funding will end. Also, HOT Funds in 2019 will fund $8,000 of Executive Director Salary. Despite this funding, staff salaries are well below average wages for other markets in DFW or for non-profits in the United States. In Farmers Branch, the Market Manager makes approximately over $40,000 plus City benefits (as recently advertised). In Coppell, the Market Manager makes approximately $55,000, but without City benefits. It should be noted that in both cases there are City staff that assist with the running of the Market, and the markets are less than one-half the size of the DCM. In terms of non-profits nationally, Executive Directors earn $44,246 on average and $33, 520 on average for top administrative positions for non-profits of our size. These salaries assume there are other employee benefits (GuideStar NonProfit Compensation Report, 18th ed., September 2018). 14 The current staff members both make in the mid-$20,000’s and have no employee benefits except 30 hours per year of vacation time. Both employees need other sources of income to cover living expenses. In short, this current employment model is not sustainable. While Rachel Weaver works part-time at Clear Creek for the City, the pay is not adequate to provide a full salary needed beyond the DCM pay. Vicki Oppenheim sometimes does part-time consulting and must find other income. In short, both employees hold advanced degrees, and are being paid well below market value for their skills and experience. This low pay scale exacerbates the issues of increasing workload. To address the low pay scale, the DCM proposes that both employees become contract employees for the City of Denton. Below are proposed salaries for the two main DCM staff. Two Booth Managers are not included in this proposal. Executive Director For the Denton Community Market $52,000 per year plus $3978 payroll taxes Job Overview The Denton Community Market is a non-profit organization comprised of a management team, Board of Directors, and over 150 vendors who have joined the market as members. The Executive Director is the key management leader and is responsible for overseeing the administration, programs, and strategic plan of the organization. The Executive Director works with the Board and staff to ensure the mission is fulfilled through programs and activities. The Executive Director managers staff, contract labor, market days, special events, fundraising activities, financial administration, and long-term planning and programming. The organization has four staff persons, including Executive Director, Vendor Coordinator, and two Booth Managers. Contract labor includes: accountant, bookkeeper, graphic artist, sound coordinator, music live streaming, and other services as needed. The Executive Director also serves on the Board of Directors and manages the Board of Trustees, as well as special committees that are formed as needed. The Executive Director represents the Market in public venues; promotes the market; interacts with local, state, and federal government agencies; and advocates for financial resources to operate the non-profit organization. The Executive Director submits an annual budget to the Board of Directors, oversees fundraising activities, and is responsible for fiscal management and reporting, in conjunction with the accounting and bookkeeping staff, to ensure the financial health of the organization. 15 Market Vendor Coordinator For the Denton Community Market $42,000 per year Plus $3213 payroll taxes Job Overview The Denton Community Market organization is comprised of a management team as well as over 150 vendors who have joined the market as members. The Market Vendor Coordinator is responsible for managing vendor memberships, market promotion, and market days. Managing the market days includes creating a weekly market layout/map, addressing vendor needs, and planning/overseeing non-vendor activities at the market. The Market Vendor Coordinator negotiates vendor agreements, recruits new vendors, manages vendor payments and identifies and plans for vendor needs. Additionally, the coordinator communicates regularly with vendors, resolves conflicting needs, and balances competing demands. The Vendor Coordinator plans and manages market day activities and engages community partners to provide services on market days. For example, the Vendor Coordinator plans and oversees children's activities, performers, and other weekly activities. The Vendor Coordinator participates in marketing and promoting the market. The Market Vendor Coordinator works with the Executive Director and other staff in fulfilling grant tasks, conducting community outreach, conducting special events and fundraisers, and supporting the mission of the Market. Farmer Support Unknown $ amount of request The DCM farmers are an essential core of our Market and provide locally- and sustainably-produced food to Denton residents and visitors. Given local climate conditions, farmers face many obstacles and often have slim profit margins. The support of local food is a clear goal for sustainability in the City of Denton. To support the farmers, this proposal asks for support of DCM marketing: The provision of additional marketing for the DCM through banners across major downtown streets for Opening Day, Harvest Days in June and October, and Farm Heritage Day. The cost of this request is unknown, but the DCM would need support for the creation of the banners as well as the installation of the banners. Finally, the DCM submits this funding request in response to City Council member suggestions at a recent City Council meeting. During City Council deliberations for this request, DCM management hopes that the Council will consider the importance of the DCM to the economic vitality and to the livability of Denton. It would be highly desirable to have additional funding approved for 2019. We appreciate your consideration. 16