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Home My WebLink About12/02/2003, PH1 - DOWNTOWN ASSOCIATION THURSDAY NIGHT ACTIVITIES FEES INCREASE ' f 1 , couna L \&,u,D. j ac Enaa Report am Nu I CITY O F SAN L U I S O B I S P O FROM: Deborah Cash,Administrator SUBJECT: DOWNTOWN ASSOCIATION THURSDAY NIGHT ACTIVITIES FEES INCREASE CAO RECOMMENDATION As recommended by the Board of Directors of the Downtown Association, adopt a resolution modifying the fee schedule for Thursday Night Promotions. DISCUSSION Bi-annually, the Downtown Association Thursday Night Promotions (TNP) committee reviews the TNP budget for necessary adjustments in order to run a safe and self-sustaining event. At this time, it has been deemed necessary by both the committee and the Board of Directors to implement the increases presented in this report. TNP is one of the activities of the Downtown Association. Because the Downtown Association is self-funded—that is, it does not use the City of San Luis Obispo as a funding source—it is critical for Association that all its activities operate within budget constraints. In the 2002-03 fiscal year, the Association faced a number of unanticipated cost increases and lower than projected membership assessment fees resulting in a budget deficit. One of the areas that contributed to this deficit was TNP. During a regular analysis of the fees, as provided for by the Downtown Association Board of Directors, it was determined that in order to pay for increased costs of goods and services for the operation of TNP, fees would need to be raised. The committee felt that in this instance, the increase should apply to all participants equally and voted to recommend to the Board of Directors to increase fees by 30 per cent. This amount will cover all anticipated expenses as shown in Attachment 6. The Board of Directors approved this recommendation at its 12 November 2003 meeting. If approved by the City Council,this fee increase would be implemented.January, 2004. The committee also discussed incentives to increase participation at the market, thereby increasing income and also expanding its merchandise sales activities to bolster receipts. It was noted at the Board of Directors meeting that even with the increase, fees for participation in this activity are still very reasonable considering the venue, exposure and professional setting provided for those conducting business of any type. 9 - ( Council Agenda Report—Report Title Page 2 CONCURRENCES The Downtown Association Board of Directors and TNP committee have each approved the suggested increases. FISCAL IMPACT Implementing the increase does not require any funding on behalf of the Downtown Association. ALTERNATIVES Council may choose to not approve the fee increased as proposed by the Board of Directors. However, not increasing the fees may reduce or jeopardize TNP operations, and as TNP is a successful and strong event for the City as well as the Downtown Association, this would not be a suggested alternative. Attachments 1. Minutes of Board of Directors Meeting 12 November 2003 2. Minutes of TNP Committee Meeting 8 October 2003 3. 2002—03 TNP Budget Analysis 4. Anticipated Cost Increases 03 —04 5. Recommended Fee Schedule 6. 03-04 TNP Projected Budget with and without fee increases 7. Resolution and Recommended Fee Schedule � -a Attachment 1 Page 1 of 3 SLO Downtown Association Board of Directors 11 November 2003 City Council Hearing Room Minutes Present Correne Weaver Kathi Main Michael White Howard Carroll Jeff Langford Brad Bilsten Frank Merson Dave Booker Deborah Cash, staff Maryann O'Brien, staff Mike Ryan Ken Schwartz Betsy Kiser Patricia Wilmore Call to order 7:45 AM. Public Comment ne at this time. Mo 'on to approve minutes Potratz, 2°d by Langford, PAIR Ce tury Project Final Review Cas passed around final review manual, only a w minor"punc list" items remain but proj ct is complete. Kio�lc Update Kise� final will look into nal approval for rsh St. site. Cope:d's Project U date/Parkin Garage P g Grou dbreaking 10 AM today;Par ng Committee will look at displaced 1 ading for `Blue area. Coun Building Discoun Coupon Flyer going ut to County employees to promote businesses in e constructi n area. Mardi Gras Feb 22, 2 PM, parade date. I _ � Attachment 1 Page 2 of 3 Housing Element Update Swem took statement to Planning Commission. S ould go to Council after f k'lliday Parade Ro Street Closure Oen reported r to shortened a block due closure of Osos St; parade entries cong in well, eet closures=Parks and Rec m ' ed out 30-da lice, reed a few pha calls people who wants passes. TNP Fee Review Motion to approve recommendation from TNP committee re: fee increase by Lana ord, 2nd by Seeley, PAIF. Board member resignation/new appointment llen Henryto fulfill unexpired term of Mark Torg se on by Lan�ord 2" by White. PAIF. Board Election/Nominating Committee Nominating Committee: Brad,�,Kathi,Jeff, Mike, Correne Note: S AM Econ Act @ Rudolph's f lowed by Nomi ating Committee. President Elect Exec Com Rec: Brad Bilsten Weave recommended to accept Ex c Com by Main, 2nd by hite, PAIR Monte y St. Banners (corridor Joint ve ture with County, City d Downtown Association to give uplift to street through olorful banners that wi go up after first of year. Econom c Activities Committ a will review Strate 'c Plan; in light of changes over th past year or two will make rec mendation for up ted changes. Lucky LuL 's open; doing w ll. 7 Hands in row Promotions Merson announced at Beth Law is Grand Marshall for parade; promotions c endar is at the printer;Kid's movie December 13, Spykids 2, need parade volunteers, passe around sign up sheet, Open House Wednesday 3'd. ( i 1 Attachment 2 Page I of 2 San Luis Obispo Downtown Association Thursday Night Promotions Committee October 8, 2003 Downtown Association Minutes Present Guest Mike White, Chair Tom Maupin Bob Walters Linda Jankay Tunny Ortali Paul Brown Michael Ray Corene Weaver Maryann O'Brien, Staff Call to Order by White 8:10 am Public Comment No Public Comment Consent Agenda Motion to approve consent agenda by Brown, 2"`by Walters, PAIF. Applications Ja o the Clown Motion to approve Walters, 2nd by Brown,PAIF ace pai 'ng or balloons AI ha Chi Sigma otion to appr a Walters, 2"d by Orta�PAIF No rock candy fo asting Me So Forte: Quarte Motion to approve ters, 2"d b ay, PAIF Catho ' Charitie Motion to approve Walte by Ortali, PAIF Previous Week Report 0?l Tien—One tow on 10/9; report of arrest due to terrorist threats and molestation of a juvenile at Downtown Ce 'Brien eiled new Bone Appetit shirt; great-sales at m et last week J okay problems; Paul Rys got KSBY press 3u. ns; in Tribune today i I �� Attachment 2 Page 2 of 2 Old Business A. Halloween- still getting more b esses to participate; volunteers ready to go; O'Brien to give reminder next w k B. Pumpkins on parade: ul Rys got KSBY to come out; everything is ready to go at this point C. Rules and Regs stponed til next meeting D. Stickers/Dona 'ons: (two separate issue that cross over; this issue i e: non profits) don ons okay and can have jar out—not considered f aiser; issue went to C' y Council 4-5 years ago and is was the decisi , can sell stickers as fun 'ser once a quarter; no stickers at an fundraising purp es; to accept donations must have tax id on file; cannot give away r s ers; O'Brien to write letter to Blue dolphin explaining both scenarios; ',,-O'Brien to make sticker flyer New Business A. Budget Analysis presentation from Deborah Cash. Based upon report Cash suggested a 28 percent increase in Farmers' Market TNP fees. Brown and Ortali recommended an even higher percentage may be more beneficial in long run and all agreed. Motion by Brown on behalf of TNP committee is for DA Board to adopt recommendation as amended with a 30 percent increase in fees, 2nd by Ortali, PAIF. Other. A. Tabled B. Next meeting to take place Nov. 5 Items for Future Agenda Meeting Adjourned at 9:00 am Prepared by Maryann O'Brien 10/22/03 1 -L.Q i Attachment 3 2002-03 Income Category Projected Actual Merchandise $6,000.00 $5,417:91 (582.09) Fees $65,000.00 $53.273.00 (11,727.00) Total Income $719000.00 $58,690.91 (129310.00) under Expenses TNP Events $7,900.00 $8,278.09 (378.00) over Supplies/Mdse. $11,600.00 $12,353.87 (753.00) over Insurance (liability) 2,500.00 1,114.00 1,386 Hard costs: Janitorial 7,000 8,450.00 (1,450) over Trash 10,000. 10,546.00 (546.00) over Barricades 5,500 4,196.00 1,304 Administrative (50% (Salaries/wages employee costs Including work. Comp.) 20,000 23,000 (3,000) over Office: (30%) 8,000 10,000 (2,000) Rent/phone/postage over Copier/on line Supplies Office Manager (30%) 7,500 9,500 (2,000) .Downtown Brown 1,440 1,440 -0- Total 81,440 88,8777 (7,437) over Attachment 4 Cost Increases 03-04 Line item previous/current increase amount Trash 8,000 11,000 3,000 Janitorial 7,000 8,450 1.450 Insurance 1,400 2,500 1,100 Worker's Comp 700 2,600 1,900 Total expected increases 7,450 Other. Two markets cancelled for 03-04 (Christmas, New Year's) Offset: Increased merchandise sales/part time employee TNP Events: Reduced to $5,500 1 - � AC t Recommended Increases to categories Category Current Recommended @ 30% Increase BBQ $.20/sq ft .26/sq ft .06/sq ft Food Vendor 39 wks @ $13 $16.90 ($17.00) 3.90 ($4.00) 13 wks @ $17 $22.10 ($22.00) 5.10 ($5.00) Vendor $ 12.00/wk $15.60 ($16.00) 3.60 ($4.00) Non Profit $12.00/wk $15.60 3.60 Entertainment 39 wks @ $10 $13.00 3.00 13 wks @ $15 $19.50 ($20.00) 4.50 ($4.60) FM Fees 15% Operating Costs no change 1% Gross Sales ATTACHMENT TNP 03—04 Projected Category Amount Income (Without Increase) (With 30% increase) Merchandise 5,500 5,500 Fees 65,000 84,500 Total 70,000 90,000 Expenses Events 5,500 Supplies/Mdse 10,000 Insurance 2,500 Trash 11,000 Janitorial 9,000 . Barricades 6,000 Administrative* 25,000 Office 10,000 Ofc, Mgr 9,500 Downtown Brown 1,440 Total 89,940 89,940 Less income 709000 90,000 Change+/- (1%940) 60 i " iD RESOLUTION NO. (2003 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING DOWNTOWN ASSOCIATION MODIFIED FEE SCHEDULE FOR THURSDAY NIGHT PROMOTIONS. WHEREAS, The San Luis Obispo Downtown Association conducts a weekly promotional event, Thursday Night Promotions, also commonly referred to as Farmers' Market or Thursday Night; and WHEREAS, The TNP event is a financially self-sustaining, safe and fun family-oriented activity; and WHEREAS, from time to time, the needs and expenses of the activity change; and WHEREAS, during regular TNP committee meetings and budget meetings fee changes have been discussed and approved; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby approves the recommended rules and regulations changes and/or fee modifications as submitted in Exhibit A, attached herein. Upon motion of , seconded by And on the following roll call vote: AYES: NOES: ABSENT: Resolution No. (2003 Series) Page 2 The foregoing resolution was adopted this 2nd day of December, 2003 David F. Romero, Mayor ATTEST: Lee Price, C.M.0 City Clerk APPROVED AS TO FORM: Jonath ell City Attorney Exhibit A Recommended Increases to categories Category Current Recommended @ 30% Increase BBQ -$.20/sq ft .26/sq ft :06/sq ft Food Vendor .39 wks @ $13 $16.90 ($17.00) 3.90 ($4.00) 13 wks @ $17 $22.10 ($22.00) 5.10 ($5.00) Vendor $ 12.00/wk $15.60 ($16.00) 3.60 ($4.00) Non Profit $12.00/wk $15.60 " 3.60 Entertainment 39 wks @ $10 $13.00 3.00 13 wks @ $15 $19.50 ($20.00) 4.50 ($4.60) . FM Fees 15% Operating Costs no change 1% Gross Sales