HomeMy WebLinkAbout11/06/2001, PH 8 - SPECIAL EVENT FEES councit
j acEncu Report
CITY OF SAN LUIS OBISPO
FROM: aul Le Sage, Director of Parks and Re eation
PREPARED BY: Linda Fitzgerald, Recreation Manager
SUBJECT Special Event Fees
CAO RECOMMENDATION
1. Eliminate the $10,000 cap for non-commercial special events for all sponsor-paid
costs above the $1,000 deductible; and
2. Continue the Special Event Application Fee of$50 and include the fee in the City's
Master Fee Schedule for purposes of annual review.
DISCUSSION
CAO Overview
Among the many things that make San Luis Obispo a special community are the special events
held in the City. Each year, approximately 50-55 of these events are held on City property and
require City resources to accomplish. Some of these resources are in the form of administrative
work, such as event planning and permit processing; others City resources are invested in the
"harder" costs associated with such things as police and fire protection, street barricades, and
other "day-of-event" costs. In comparison to most other cities, the City of San Luis Obispo
provides a high level of subsidized support to special events, both administratively and in "hard
cost" terms.
However, it is important to keep in mind that "the City" is not a financial entity unto itself.
Instead, we are simply the stewards of the collective resources of our residents —meaning that it
is really our residents who contribute substantially toward the support of special events. On
behalf of residents, the San Luis Obispo City Council has traditionally provided strong support
for such events because special events help define the unique character of our community.
Given this context, the policy question for the Council is: What is the right balance between the
contribution of all residents toward the financial support of special events and the contribution
that should be expected of the individual event sponsors? This report recommends that we retain
nearly all of our traditional support for special events, but with a policy modification that will
eliminate "automatic" support for expensive events by lifting the current "cap" on special event
sponsor costs of$10,000.
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Council Agenda Report—Special Event Fees
Page 2
Background
In October 1998, Council approved an ordinance outlining a policy for special events held on
public property in the City. The procedures identify the permit application, related fees, criteria
for permit denial, appeal process, and other issues related to major special events. Typical events
coming under the policy include parades, fun runs, street closures, Mission Plaza events, and
festivals. At this time, staff is not proposing any changes to the basic structure of the special
event policy, which has worked well.
During the public hearing for the Special Event Policy, several community members spoke to
Council about having to bear the full amount of the day-of-event costs above the $1,000
"deductible" being proposed by the policy. The issue being set before the Council at that time
was how much of the cost of a special event should be the responsibility of the event sponsors
and how much should be subsidized by the City and therefore, in effect, by the community at
large. Because the Special Event Policy and the proposed fees were new concepts, the Council
came to an interim compromise at that time to cap day-of-event costs at $10,000 for a three-year
period to end on December 31, 2001. Per Council direction, staff has been tracking event costs
during the last three years to apprise Council of the progress and effectiveness of the current
policy and assist with its reconsideration of the interim cost cap.
Day-of-Event Charges
In accordance with the Special Events Policy, services provided by the City on the day of the
event are charged back to the event sponsors. These services include barricade setup and
removal, street cleaning, overtime staffing by police and public works, regular staffing and
overtime for parks and recreation, outside police services, paramedic standby and use of portable
restrooms (for City sponsored events only). Event sponsors are currently granted a $1,000
deductible toward these day-of-event costs and services with a cap of $10,000. The vast
majority of events that require day-of-event services come in under the $1,000 deductible for
applicable charges.
In Attachment 2 is a spreadsheet summarizing day-of-event expenses for the variety of
community-wide events held since the implementation of the special events policy. First Night
and the Mardi Gras parade rely heavily on public safety, public works and parks and recreation
staff support and have exceeded the deductible and, in some cases, the $10,000 cap on sponsor-
paid costs
First Night costs in 1999-2000 exceeded the $10,000 cap because of additional police and fire
personnel, delineations needed for the fireworks display at the County Courthouse and potential
millennium crowd concerns. Costs in 2000-2001 fell under the cap, as the public safety services
were much lower than the year prior.
The Mardi Gras parade is the only special event that requires additional public safety support
outside of City resources through contracts with the California Highway Patrol (CHP) and the
County Sheriff's Department. The total cost of this event in 2000-01 was $65,576.83, with a
direct impact on the budgets for Parks and Recreation and Police of $56,817.37 for these
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Council Agenda Report—Special Event Fees
Page 3
additional public safety support services. If the parade continues, we can expect even higher
costs due to greater parade management needs, including a CHP condition that the City contract
for even more officers, if the CHP is to continue participation in the parade (the initial request is
that the City increase our contract with them by increasing CHP officers from 15 to 40).
Based on the experience of the past three years, staff believes that the $1,000 "deductible" is an
appropriate subsidy, and it allows many events to occur that would otherwise not be financially
viable. Continuation of the cap, however, is not recommended. This is because retaining the
cap effectively provides a large and automatic City subsidy for one event sponsor only, with
limited cost control from year-to-year. This is because the cap, in effect, requires the City ("all
residents") to cover whatever costs are in excess of $10,000 automatically as a "service-level
given." While elimination of the cap will discontinue this automatic practice, it will not mean
that the City will never again agree to subsidize a special event at some higher level. An event
sponsor can always come to the City and seek a larger contribution for an event, and the City can
agree to provide such a contribution. By lifting the cap, however, such a decision would be made
consciously by the City Council with funds specifically budgeted to support the agreed upon
costs.
Other than eliminating the cap, staff is not proposing any other day-of-event fee changes. The
$1,000 deductible would still remain in place and there would be no change to the current fees
charged to commercial organizations holding a special event in the community. Those groups
pay 100% of all related costs without a deductible or a cap. Filming activities are typical of an
event that would fall into the commercial category, but any group failing to provide evidence of
non-profit status would be considered a commercial event.
Application Fee
Currently, a $50 application fee for processing the paperwork for non-commercial and
commercial activities is the initial step of the special event process. That fee partially
compensates the City for the time Parks and Recreation staff spends coordinating with various
City departments, such as Police, Fire, Risk Management and Public Works, as well as other
affected agencies such as the Chamber of Commerce, Downtown Association and Old Mission
Catholic Church (for Mission Plaza events only). With larger events, such as parades and major
street closures, meetings with affected departments are held before the event to facilitate the
activity as well as a post-event critique meeting. Additional fees for park and indoor facility uses
are charged as established under previous Council resolution and are considered separately from
the special event policy. Events that are sponsored by the Downtown Association, such as the
Holiday Parade, Taste of San Luis, and Wheels of SLO, fall into a separate agreement and are
not addressed as a part of this policy except for the application fee.
Included in the processing of each permit, various costs and services are provided within the $50
application fee. Provided services for reviewing each application include: event review and
processing, insurance and risk review, fire inspection, basic police services, monitor training,
Public Works service review, barricade self-pickup/setup with deposit, parking reviews,
engineering route review and transit route review.
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Council Agenda Report—Special Event Fees
Page 4
Staff recently analyzed the costs for processing a typical special event permit (Attachment 3).
Using 51 special events in 2000, staff time in Parks & Recreation, Public Works, Police, Fire and
Human Resources to review each application request resulted in an average cost per permit of
about $182.00, not including the Mardi Gras parade and Downtown Association events. When
evaluating the costs further, 25 of the 51 events cost $45.51 or one hour of the Recreation
Coordinator's time at the City's billable labor rate. Other associated costs with application
review lie primarily with Public Works and Police Departments to review event sponsor needs.
Events that have been well established in the community took less time for processing versus
newer events that required a more thorough review by staff. Based on the results of our fee
analysis, staff recommends that the special event application fee be retained at $50.00 and be
included in the Master Fee List so it can be indexed for future Council reviews.
CONCURRENCES
Police Department, Fire Department, Public Works Department and the Risk Manager all concur
with the staff recommendations.
FISCAL IMPACT
The result of the fee increases recommended in the report is as follows:
Remove the $10,000 cap on sponsor-paid costs and have event sponsors responsible for all
services above $1,000. Those events that have exceeded the cap since January 1999 have been
the Mardi Gras parades for 1999, 2000 and 2001 and First Night 1999. These costs impact not
only City services for those events but various departmental financial resources as well. Staff
believes event sponsors should pay for all related sponsor-paid costs above the $1,000 deductible
to reduce impact on the City's General Fund and eliminate an automatic and high level of
subsidy for a single event. Assuming the Mardi Gras Parade was to occur with the cap removed,
the City could recover an additional $55,600 in day-of-event costs that were not paid for by event
sponsors. Events scheduled on or after January 1, 2002 would be affected by the new fees.
Continue the special event application fee at $50.00 and include in the annual CPI review
for adjustment. The cost analysis shows that the $50.00 fee is adequate for the staff time spent
on processing the majority of permits. The special event application fee has not been included
on the Master Fee Schedule and subject to the annual CPI review, so Council approval at this
time will allow for inclusion into the annual review process.
It is often said that special events "make money" for the City, and thus the City recovers its costs
through increases in sales and transient occupancy tax. A few years ago, the City utilized the
services of the UCSB Economic Forecast program to study this assertion relative to the biggest
event, Mardi Gras. The study showed that while some business categories profit substantially
from the event, the gross added revenue to the City was estimated at $7,900 (and this was based
on two days, when Mardi Gras was held on the weekend).
Therefore, the City's support for special events should be based on considerations other than
"profit", such as the enrichment these events provide for our residents. The amount of subsidy to
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Council Agenda Report—Special Event Fees
Page 5
be provided by the City is essentially a judgment call, based on a perception of striking a
reasonable balance between City support and sponsor support. Staff believes that the policies
recommended in this report strike a reasonable balance. However, several other alternatives are
outlined below.
ALTERNATIVES
1. Continue the $10,000 cap on special events. Contracted services not provided directly
by the City, but necessary for the health, safety and welfare of the community, would
be the responsibility of the event organizer. Examples of these additional costs could be
outside police services (CHP and Sheriff), additional barricades, contracted street sweeping,
etc. The City paid over $18,300 in FY 2000-01 for non-City services related to City-wide
special events.
2. Continue the $10,000 cap on special events. This would retain the status quo for major
special events. The City would continue to provide services as in the past and amounts in
excess of $10,000 would return to the Council for funding support through the budget
process.
3. Retain cap at $10,000 for sponsor-paid day-of-event services and any amount in excess
of $10,000 would be split 50/50 between the event sponsors and the City. Having the
sponsors share in the additional costs would lessen the impact to the General Fund for costs
above the cap amount. Organizations could be asked to pursue grants to offset costs.
4. Increase the cap to $25,000 for sponsor-paid day-of-event services. Sponsors would pay
for all day-of-event costs up to $25,000 above the $1,000 deductible, while the City would
continue to be responsible for any costs beyond the capped amount.
ATTACHMENTS
1. Resolution—Establish Fees and Costs to be Paid by Sponsors of Special Events
2. Summary of Day-of-Event Costs for Special Event Fees— 1999-2001
3. Summary of Cost Analysis for Special Event Permit Fees - 2000
The Special Event Policy and Ordinance is available in the Council Reading File
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1
RESOLUTION NO. (2001 Series) Attachment 1
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING FEES AND COSTS TO BE PAID BY
SPONSORS OF SPECIAL EVENTS
WHEREAS, the City of San Luis Obispo welcomes non-commercial special events, as
defined in Ordinance No. 1345 (1998), providing cultural, educational, recreational and
entertainment opportunities which can be appreciated by both residents and visitors, and
WHEREAS, the City places a high level of importance that such events be planned and
carried out in a careful and consistent manner with equitable treatment of event sponsors; and
WHEREAS, the City must assure that the community does not assume a disproportionate
share of the costs of non-commercial special events, and
WHEREAS, the City also allows commercial special events, as defined in Ordinance No.
1345 (1998) and must assure that the community does not assume any costs of such events.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. All special event sponsors, commercial and non-commercial, will pay an
event permit fee of$50.00 to partially cover the administrative costs of issuing the permit.
SECTION 2. Consistent with adopted cost recovery policies, this fee will be reviewed
and updated on an ongoing basis. Accordingly, it will be adjusted annually on July 1 of each
year by the annual percentage change in the U.S. Bureau of Labor Statistics (or successor
agency) consumer price index for all urban consumers (CPI-U) all-cities average for the prior
calendar year•, and it will be included in the comprehensive analysis of City fees that is made at
least every five years.
SECTION 3. The City of San Luis Obispo will assume the cost for all services listed as
"City Provided Services" (no cost to sponsor) in Exhibit A for all non-commercial special
events.
SECTION 4. All applicable costs indicated as "Sponsor Paid Costs" in Exhibit A will be
charged to each non-commercial special event.
SECTION 5. The amount of"Sponsor Paid Costs" for non-commercial special events
will be determined as follows:
a. Regular Employees. The hours worked multiplied by the labor rates as established by
the Director of Finance and set forth in Section 520 of the City's Revenue
Management Manual
b. Temporary Employees. The hours worked multiplied by the labor rates based upon
the current salary,plus any appropriate benefit costs.
c. Non-City Employees. Labor rates charged by any outside agency contracted to
provide assistance, (e.g. the San Luis Obispo County Sheriff's Department, California
Highway Patrol).
d. Other charges. Other direct costs for rentals, supplies or services incurred by the
City.
SECTION 6. The City will absorb the first $1,000 of all "Sponsor Paid Costs" for each
non-commercial special event. Sponsors will be required to pay any "Sponsor Paid Costs" in
excess of $1,000. This deductible may be adjusted periodically by the Council as part of the
City's Master Fee Schedule.
SECTION 7. Commercial special events sponsors, as defined in Ordinance No. 1345
(1998), will pay 100% of all City services costs. A vendor charge of 10% will be assessed for
non-commercial sponsors using City facilities for money-raising activities.
SECTION 8. City staff will provide all event sponsors with a detailed budget of the
amount of "Sponsor Paid Costs" the sponsor must actually pay as soon as possible after the
special event application is received. This budget will become a fixed cost, and will not be
subject to revision. Actual final costs are unlikely to be different from this budget, as it will be
the basis for scheduling resources; and event sponsors will not be surprised by any last minute
cost changes. This practice will provide the City with reasonable cost recovery, while providing
cost predictability to event sponsors. Payment in full of this cost is due to the City ten days
before the event.
SECTION 9. The terms of this resolution shall become effective at 12:01 am on January
1, 2002.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted on , 2001.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
9-7
APPROVED AS TO FORM:
Jeffr G4rgeyvntsAttorney
Attachment: Exhibit A—City-Wide Special Event Costs and Services
S—�
EXHIBIT A
- Resolution
2001 Series
CITY-WIDE SPECIAL EVENTS
COSTS and SERVICES
City Provided Services
Event review and processing
Insurance and risk review
Fire Inspection
Basic police services
Monitor training
Public Works Maintenance required serice review
Barricades self-pickup/setup w/$100 deposit
Parking review and fee losses
Engineering route reiew
Transit route review
Sponsor Paid Costs (charged against the deductible)
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# TYPEm '•,y on. O a I. n a
1 Parade X C/O X* I X X X C/O C/O
2 Mission Plaza X C/O X* X X X NIA C/0
3 Park Event NIA C/O X* X C/0 I X NIA C/O
4 Street Closure A/C C/O X* X C/O X NIA I CIO
5 Walk/Run X CIO X* X itt
NIA CIO
6 Multi-Facilit A/C C/O X* X NIA N/A
7 Rolling Road Block N!A C/O X* X N/A N!A
X= Sponsor must pay
*= Need will be determined by City Staff
CIO= City provided or approved Outside resource may be used (sponsor must pay)
NIA= Not Applicable in most cases
A/C= Actual Cost
@@ Portable restrooms available for City sponsored or co-sponsored events only
S� /
Attachment 2
CITY WIDE SPECIAL EVENTS SUMMARY REPORT
DAY OF EVENT COSTS PAGE 1
1999-2001
EVENT 1999 COSTS 2000 COSTS 2001 COSTS
BIRTH&BABY FAIR $0.00 $0.00 $0.00
PPS PARADE $0.00 $0.00 $0.00
MISSION PREP GRADUATION $0.00 $0.00 $0.00
RRCA 5K RUN $0.00 $0.00 $0.00
KISS THE PIG $0.00 $0.00 $0.00
CONCOURSE AT COAST $0.00 $0.00 $39.53
MOZART FESTIVAL $0.00 $0.00 $79.06
OMS WALK $0.00 $0.00 held October26,2001
WALK FOR LIFE $0.00 $40.15 to be held Nov.3,2001
BOWERS DOG SHOW $0.00 n/a n/a
SLO DOGS SHOW $0.00 nla n/a
HERITAGE WALK $0.00 n/a n/a
GO GRANDE $0.00 n/a n/a
IST PARADE $0.00 n/a n/a
VINEYARD WALK-RUN $0.00 n/a n/a
HAND TO HAND CARNIVAL $0.00 n/a n/a
LOOK AHEAD AND BACK $0.00 n/a n/a
VCB WASBY $0.00 n/a n/a
FRIENDSHIP NIGHT $0.00 n/a n/a
CLASS OF'59 $0.00 n/a n/a
AMERICAN HEART ASSN.WALK $0.00 n/a n/a
BATTLE OF THE BANDS $0.00 n/a n/a
COMMUNITY PRAISE $0.00 n/a n/a
SLO ROADSTERS $40.15 $39.53 $39.53
GOSPEL CAMPAIGN $40.15 $40.15 $48.86
BMW 2002 FEST $40.15 $40.15 $39.53
DAY IN THE PARK $40.15 n/a n/a
WIGGLE WAGGLE WALKATHON $52.51 $52.51 $48.86
RED RIBBON $52.51 $52.51 held October 27,2001
KCBX WINE CLASSIC $82.80 nla n/a
I MADONNARI $87.55 $81.56 $81.56
WOW $137.49 $139.42 $139.42
HOSPICE FUN RUN $291.18 $291.18 $448.59
KOREAN VETS PARADE $397.38 n/a n/a
SLOHS HOMECOMING PARADE $553.74 $553.74 $598.12
CHILDREN'S DAY IN THE PLAZA $559.48 $203.13 $203.13
CITY TO SEA RUN $598.12 $598.12 $852.20
CENTRAL COAST WINE FESTIVAL $645.63 $645.63 $638.50
DAY WITH CREATIVE WOMEN $671.45 $671.45 $688.90
PRIDE IN THE PLAZA $723.10 $723.10 $663.39
CAL POLY HOMECOMING PARADE $1,397.30 $1,638.20 to be held Nov. 10,2001
WHEELS OF SLO(DOWNTOWN ASSN.) $4,081.38 $3,302.48 $2,985.79
FIRST NIGHT $11,986.15 $8,807.90 to be held Dec.31,2001
MARDI GRAS PARADE $42,392.28 $55,214.67 $65,576.83
s-r
i
CITY WIDE SPECIAL EVENTS SUMMARY REPORT
DAY OF EVENT COSTS PAGE 2
1999-2001
EVENT 1999 COSTS 2000 COSTS 2001 COSTS
WALK FOR HOMELESSNESS n/a $0.00 $0.00
MS WALK/RUN n/a $0.00 $0.00
DOG DAYS n/a $0.00 $0.00
FREEDOM FEST n/a $0.00 $0.00
TRINITY PARADE n/a $0.00 $0.00
KIWANIS FUN-RUN n/a $0.00 $0.00
SHERIFFS 150 YEAR CELEBRATION n/a $0.00 n/a
BEYOND SHELTER n/a $0.00 n/a
MILLENIUM MARATHON nla $0.00 n/a
SIDSTEP 2000 n/a $0.00 n/a
TAYLOR'S 75TH RUN n/a $0.00 n/a
JAZZ BLUES CONCERT n/a $0.00 n/a
PAPIER MACHE ART n/a $0.00 n/a
POETRY FESTIVAL n/a $0.00 n/a
CANINE CAPERS n/a $23.86 n/a
CHURCH COMMUNITY DAY n/a $40.15 n/a
MERVYN'S COMMUNITY CLOSET n/a $48.86 n/a
BIKE FESTIVAL n/a $81.56 n/a
CELEBRATE CHILD CARE n/a $87.55 n/a
BOOK AND AUTHOR FESTIVAL n/a $331.50 $331.50
RUN TO REMEMBER n/a $336.69 $0.00
EARTH DAY n/a $612.36 $612.36
LA FIESTA n/a $1,291.25 n/a
PACIFIC BELL PARK BALL PITCH RELAY n/a $1,569.51 n/a
ASH WEDNESDAY SERVICE n/a n/a $0.00
BREAKING THE FAST n/a n/a $0.00
SCOUT SHOW n/a n/a $0.00
ECOSLO GALA n/a n/a Moo
RACE UNITY DAY n/a n/a $0.00
NICU REUNION n/a n/a $0.00
CIRCUS CONTRAPTION n/a n/a $39.53
GRATEFUL FAMILY CELEBRATION n/a n/a $48.86
EXTREME TOUR n/a n/a $149.53
CAR CRUISE n/a n/a $347.92
YMCA FUN RUN n/a n/a $347.92
CRITERIUM n/a n/a $736.99
U --I�
Attachment 3
CITY-WIDE SPECIAL EVENTS
PERMIT PROCESSING COSTS-2000
EVENT PERMIT PROCESSING
COSTS
SHERIFF'S 150 YR $45.51
BEYOND SHELTER $45.51
MS WALK/RUN $45.51
MILLENIUM MARATHON $45.51
DOG DAYS $45.51
SIDSTEP 2000 $45.51
FREEDOM FEST $45.51
PPS PARADE $45.51
TRINITY PARADE $45.51
MOZART FESTIVAL $45.51
RRCA FESTIVAL $45.51
KISS THE PIG $45.51
KIDS DAY $45.51
OMS WALK $45.51
POETRY FESTIVAL $45.51
BIRTH&BABY FAIR $45.51
KIWANIS FUN RUN $45.51
CONCOURSE AT COAST $45.51
TAYLOR'S 75TH FUN RUN $74.25
PAPIER MACHE ART $74.25
WALK FOR HOMELESSNESS $88.52
MISSION COLLEGE PREP GRADUATION $102.99
JAZZ/BLUES FESTIVAL $378.00
CANINE CAPERS $45.51
SAN LUIS ROADSTERS $102.99
GOSPEL CAMPAIGN $45.51
BMW 2002 FEST $45.51
WALK FOR LIFE $45.51
CHURCH COMMUNITY DAY $161.79
MERVYN'S COMMUNITY CLOSET $160.47
RED RIBBON CELEBRATION $45.51
WIGGLE WAGGLE WALK $45.51
BIKE FESTIVAL $91.02
I MADONNARI $102.99
CELEBRATE CHILD CARE $148.50
CHILDREN'S DAY IN PLAZA $102.99
HOSPICE FUN RUN $247.80
BOOK&AUTHOR FESTIVAL $102.99
RUN TO REMEMBER $441.60
SLOHS HOMECOMING PARADE $88.52
CITY TO SEA $189.66
EARTH DAY IN PLAZA $436.06
WINE FESTIVAL $45.51
DAY WITH CREATIVE WOMEN $91.02
PRIDE IN THE PLAZA $125.75
WOW $614.48
LA FIESTA $645.72
PAC BELL BALL RELAY $920.73
CAL POLY HOMECOMING PARADE $628.74
WHEELS OF SLO $826.23
FIRST NIGHT SLO $1,183.44
ANNUAL TOTAL $9,269.23
AVERAGE EVENT COST: $181.75
MARDI GRAS $1,628.19
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Women 9 C01111MILMity center
of san 111i3 obi"o
lo09 mono snr>Er, surre 201, SAN W1s OBISPO, CA 93401
(805) 5U-9313
November 5, 2001
City Council Members
City of San Luis Obispo IlKeACIL ❑ CDD DIR
990 Palm Street LTICAO FIN DIR
5an Luis Obispo, California 93401 210K0 ❑ FIRE CHIEF
P �RNEY ❑ PW DIR
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Dear City Council Members: ! Mi2y
I3WTIL DIR
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Re: 5pecial Event Fees Vl
The Women's Community Center of 5an Luis Obispo holds their annual
fundraising event, Day With Creative Women, on the Mission Plaza,the
second 5aturday of August. In August 2002, we will be having the 28""
year of this event.
5everal of our Board Members have reviewed the Council Agenda Report
regarding the 5pecial Event Fees. We appreciate that the City of 5an Luis
Obepo recognizes that many non-profits would not be able to financially
hold their events and therefore Support the report recommendation of the
appropriateness of the $1000.00 deductible. Our concern is with rising
costs of city services, our organization and others will exceed the $1000.00
deductible in a short time. It is difficult enough to sustain the rising cost
of the rental of Mission Plaza each year.
We would therefore like to suggest that the City Council consider raising the
$1000.00 deductible each year by the annual CPI.
Thank you for your attention in this matter.
Renee Heller, Treasurer, Board of Directors, OWCW Co-Chair RECEIVED
N 0 V 0 5 2001
SLO CITY COUNCIL
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NOV O 2001
SLO CITY COUNCIL
Memo To: City CouncilNCIL E3 CDD DIR
❑ FIN DIR
From: John K Thomas
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545 Stoneridge, Drive � U pw DIR
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S113D.an.Luis Obispo CA 93401 pE DIFt
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RE:
IP RE: Special Event Policy ® HR DIM
.Mayor Settle, Ms. Rowell-Marx, Mr. Ewan, Ms. M Eholland, Mr. Schwartz:
As the former director of the Mystic Krewe of Karnival & also as a dead.king of
Mardi Gras,, I:would like to express my opinion on the revised "Special Event
Fee" proposal before the council.
.Reviewing the CAO overview and the staff su99estions, the vast majority*of it
makes.perfect sense from a fiscal paint of view.
What it does not consider is that they are proposing with all but alternative #2, is
the end to any large special event, or the possibility of any event growing into a
large event.
The City of San Luis Obispo,should not be preventing the success of.events to
proceed, they should be encouraging them. With the options proposed, any
special event that succeeds will be priced out of existence the following year_
First:.because they will have to pay a potentially large fee after the event,
when the ability to fund raise any money will be non-existent. So,.the
question that follows ji : Will the City of SLO ever'be paid? And will the
city pursue non—payment in court, suing non-profits for money owed?
Second: because the special event, if they are able to pay the amount due
after their event, will then really have no clear direction on how much
money,they will have to raise to support a successful event the next year. . .
In an ideal world, the City of San Luis Obispo would absorb the cost of all special
events and consider it as part of the ingredients needed to keep the community
vibrant and alive.
This is not an ideal .world, and fiscal restraint is necessary, so I would like to
propose a fifth alternative:
Large special events would have to split the actual costs of the event up to
the amount of$15,000. This would accomplish several things:
The Special event would have an idea of have much needs to be
raised to do their event. A maximum of$15,000.00 to the city, and
then all of'their other costs.
City staff would know they are only being reimbursed $15,000.00,
which would force the city staff and event organizers to work together
for the public good.
The City could require the posting of a "band" or proof of financial
ability to pay up to $15,000.00.
A $5,000.00 increase over the current fee, is 50°x6 increase over the
current cap, and while a large increase, it is at least realistic.
The event organizers and the City Staff would all have an incentive to
keep costs down, .work together, or have the event contact out some of
the city costs to try and limit expenses.
Thank you for your time in reading this, and thank you for all the support you
have given tor-Mardi-Gras and all other special events in the past.
John K. Thomas,_
Cc: Ken Hampian.
Paul LeSage
Linda.Fitzgerald
Connie Anderson