HomeMy WebLinkAbout04/04/2000, 5 - FIRST NIGHT FEE REDUCTION REQUEST council : -April i 4 2000
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C I T Y O F SAN LUIS O B I S P O
FROM: aul LeSage,Director of Parks and Recreation
SUBJECT: FIRST NIGHT FEE REDUCTION REQUEST
CAO RECOMMENDATION
Deny the request from First Night San Luis Obispo for a $5,000 reduction of the organization's
special event fees.
DISCUSSION
Background
On October 20, 1998, the Council approved an ordinance and procedures relating to special
events within the City of San Luis Obispo. At the same time, they approved a fee resolution that
established criteria for charging sponsors for special events. Based on a matrix of services, costs
are calculated for all eligible services performed by City staff in.support of an event. A $1,000
"deductible" is then subtracted from the cost total and the event sponsor is responsible for paying
any remaining costs up to a maximum of$10,000.
In addition to providing a standardized method for costing special events, the adopted procedures
provide event sponsors with information on a wide variety of requirements for putting on special
events. The intent of the procedures is to assure that all events are administered by City staff in
an equitable and consistent manner.
At the February 29, 2000, City Council meeting, Dr. Stephen Hansen, M.D., appeared on behalf
of First Night San Luis Obispo and requested that their fees, the $10,000 maximum, be reduced
to $5,000. Dr. Hansen noted that the unique and "special" nature of the special event should
warrant the fee reduction.
The primary charge to First Night was police protection. The organization was billed for the
services of two sergeants, eleven officers, and one dispatcher. Because the First Night area was
closed to vehicles,the officers patrolled on foot.
During planning sessions, City staff and First Night representatives had open exchanges about
the proposed staffing level for the event, and it is staff's belief that the First Night representatives
had a good understanding of the charges. First Night was only charged the special events policy
maximum of $10,000, although the actual chargeable costs under the policy were $11,986, and
the total expense to the City was even greater. In addition to making facilities available, the City
also provided many hours of administrative assistance at no cost.
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Council Agenda Report—First Night Fee Reduction Request
Page 2
There were 61 special events in San Luis Obispo in 1999. As is the case with First Night, these
events are managed by dedicated people who are committed to the unique and special benefits
they bring to the City. For example, these special events promote literacy, fund raise for medical
research, honor veterans, provide environmental education, and celebrate the rich heritage of
diversity in our community. All of these 61 events are run on tight budgets and would benefit
from a fee reduction. Under the Special Event Policy, all of the groups are treated fairly.
Staff finds itself in the position of not recommending a fee reduction to this very valuable
program. Unfortunately, staff believes that the precedent set in doing so would lead to many
other fee reduction requests. Staff would also note that the City has supported First Night with
grants of$31,300 over the past two years.
FISCAL IMPACT
The impact of the proposed action is a reduction of$5,000 in City revenue. If Council were to
take similar action (50% reduction of fees)for all special events, there is a potential for another
$13,000 in revenue reductions.
ALTERNATIVES
The Council could deny the requested fee reduction, but defer the payment of $5,000. This
would allow First Night a reasonable amount of time to raise the necessary funds. Staff would
work with First Night organizers to establish a time schedule. Also, by moving more events
indoors (less street closures) and recruiting more volunteers, fees for next year's event can be
reduced.
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