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HomeMy WebLinkAbout9/7/2016 - STAFF REPORTS - 5.C. PALM$A y CQ<7FOfRN,P CITY COUNCIL STAFF REPORT DATE: SEPTEMBER 7, 2016 NEW BUSINESS SUBJECT: PROPOSED MODIFICATIONS TO THE FESTIVAL OF LIGHTS PARADE ENTRY FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE FROM: DAVID H. READY, CITY MANAGER BY: CHIEF OF STAFF/CITY CLERK SUMMARY The City Council will consider proposed increases to the Festival of Lights Parade entry fees to assist in cost recovery for the production of the Festival of Lights Parade. RECOMMENDATION: Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR THE FESTIVAL OF LIGHTS PARADE ENTRY FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854." STAFF ANALYSIS: The City Council Fundraising Subcommittee (Councilmember Kors and Councilmember Roberts) is recommending the City Council increase the current entry fees for the Festival of Lights Parade to partially offset the cost of producing the annual event. The current entry costs are as follows: Non-Profit Entry $ 25. Commercial Entry $ 50. The Subcommittee recommends the proposed fee structure: Non-Profit Entry $ 100. Local Businesses $ 250. Statewide/National Business $ 250. First Half Placement $ 500. VIP First 25 Placement $1,000. ITEM NO.U City Council Staff Report Festival of Lights Parade September 7, 2016, -- Page 2 By comparison the Subcommittee reviewed the entry fees for the Palm Springs Pride Parade, which are set by Palm Springs Pride and have a rather complex structure based on the lead time, but is summarized below: Marching Unit $ 125. to $ 172. Decorated Car $ 174. to $ 240. Decorated Truck $ 199. to $1,050. National Corporation $ 675. to $ 950. First Half Placement $ 675. to $ 950. VIP First 25 Placement $1,500 to $1,875. While the proposed entry fee increase is substantial, the entry fees have not been modified in decades. By comparison, the proposed Festival of Lights Parade entry fees are quite reasonable for other parades in Palm Springs and offers a good value at a reasonable cost. The increase in fees will help offset the costs of producing the parade. Additionally, the City Council Subcommittee is reviewing the Sponsorship Packages for the parade and a preliminary draft of the Parade Sponsorship opportunities are attached. While sponsorship packages are not a fee for service and included in the Comprehensive Fee Schedule it is included for reference. FISCAL IMPACT: The approximate cost to produce the Festival of Lights Parade is $95,000 in outside contractor and supply costs and $40,000 in City staffing costs. The City Council allocated only $30,000 toward the outside contractor and supply costs as part of the Fiscal Year 2016-17 Budget. Currently, the City has previous year's carryover funds in the amount of$20,000. An additional $45,000 is needed to produce the parade to be generated from entry fees and sponsorships, to avoid any reductions in the parade activities. City staffing costs are budgeted in each operating department. MES THOMPSON, CITY CLERK DAVID H READY, CIT�ANAGER Attachments: Proposed Resolution Draft Sponsorship Packages 02 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MODIFYING USER FEES FOR FESTIVAL OF LIGHTS PARADE ENTRY FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 23854. WHEREAS, the City, under various statutory provisions under California Government Code, may set and collect fees for the costs of providing a particular service; and WHEREAS, the City Council on July 15, 2015, the City Council adopted Resolution No. 23854 approving a user fee study and approving the Comprehensive Fess Schedule; and WHEREAS, the City Council desires to adopt Festival of Lights Parade Entry Fees to reflect the reasonable cost of providing the parade. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. FINDINGS. a. City staff has completed an analysis of fees for Festival of Lights Parade Entry Fees. b. The Festival of Lights Parade entry fees shall be adopted to cover some the City's costs and expenses associated with providing the parade. C. The cost of such services should be borne by those who are the special beneficiaries rather than the citizenry at large. d. There is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service for which the fee is imposed. e. The fees do not exceed estimated reasonable cost of providing the service for which the fee is charged. SECTION 2. FEES IMPOSED. a. The City Council adopted and imposes Festival of Lights Parade entry fees as provided in Exhibit A, attached hereto and incorporated by reference. b. Each person requesting service in for the Festival of Lights parade entry shall pay the new fee. 03 Resolution No. Page 2 C. On July 1gt of each year, the fees and charges shall be automatically adjusted by an amount equal to the percentage of increase or decrease in total employee compensation for the current fiscal year's adopted budget versus the new fiscal year's adopt budget as last computed at the budget public hearing, to reflect the cost-of-living changes and to ensure that changing economic conditions do no impair the real value of the fees and charges. SECTION 3. SEVERABILITY. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to as invalid, the remaining provisions shall be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid. SECTION 4. EFFECTIVE DATE. The fees imposed by Section 2 of this Resolution shall be effective upon adoption of this resolution. SECTION 5. COMPREHENSIVE FEE SCHEDULE. The Director of Finance is hereby authorized and directed to incorporate said modifications and fees into the Comprehensive Fee Schedule, adopted by Resolution No. 23854. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 7T" DAY OF SEPTEMBER, 2016. DAVID H. READY, CITY MANAGER ATTEST: JAMES THOMPSON, CITY CLERK 04 Resolution No. Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on September 7, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California 05 Resolution No. Page 4 EXHIBIT A FESTIVAL OF LIGHTS PARADE ENTRY FEES Festival of Lights Parade Entry Fees Nonprofit/Resident Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100. Local Businesses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250. Statewide/National Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250. VIP First 25 Placement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000. First Half Placement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500. 06 The City of Palm Springs Festival of Lights Parade Saturday, December 3, 2016 Fact Sheet Location - Downtown Palm Springs on historic Palm Canyon Drive, Parade starts at Ramon Road and ends at Tamarisk Road Date/Time — Saturday, December 3, 2016 - 5:45 PM Attendance — 80,000+ will convene on downtown Palm Springs to watch this annual Holiday celebration Audience — Family oriented event. Crowd composition is residential (both full and part-time residents) along with a large tourist population. Event draws many spectators from throughout the Coachella Valley and surrounding communities of Banning/Beaumont and Yucca Valley/Twentynine Palms. Event Features— 80 community sponsored floats along with Grand Marshal and other dignitaries. Marching bands, dancers and performers are among the entertainers. The parade also includes spectacular Macy's style large holiday- themed balloons; and of course Santa Claus. Marketing and Promotions - Opportunities Include - Community Support and positive public relations for one the valley's most popular events; Live mentions on radio broadcasts and through social media; logo and link on event website; logo placement in all print advertising; logo placement on parade banners. Sponsor recognition by parade announcers throughout evening of the parade. Customized Sponsorship Packages are available. For more sponsorship information about the Palm Spring Holiday Parade contact Jasmine Waits at (760) 323-8276. This is a terrific opportunity to become involved with this annual event to celebrate the community spirit of the holiday 07 Sponsorship Application Form Business Name: Business Address: Contact Name: Contact Phone: Contact E-Mail: ❑ Presenting Sponsor ($25,000) ❑ Gold Bell Sponsor ($10,000) ❑ Silver Mistletoe Sponsor ($5,000) ❑ Community Sponsor ($1,500) ❑ Parade Aficionado Sponsor ($1,000) ❑ Friends & Family Sponsor ($500) ❑ Official Balloon Sponsor ($2,500) ❑ Grandstand Sponsor— ($5,000) Enclosed is my check in the amount of$ in support of the Palm Springs Holiday Light Parade. Make the check payable to: City of Palm Springs — Festival of Lights Parade Office of Special Events 401 S. Pavilion Way Palm Springs, CA 92262 Note: To assist our planning and to meet advertising deadlines, we would like notification of your support no later than November 1, 2016 Thank you!!! 08 Palm Springs Festival of Lights Parade Sponsorship Levels & Benefits Presenting Sponsor - $25,000 The Presenting Sponsor opportunity for the Festival of Lights Parade provides the highest level of visibility throughout the event, and prominently recognized for support the City of Palm Springs annual Festival of Lights Parade. Your company will be featured as "Company Name Festival of Lights Parade" in all marketing and promotion. This includes your company logo on a specially designed banner displayed at various locations leading into the parade day. Frequent company name recognition announcements from the Review Stand announcer will be provided to the participating company at all sponsored review stands throughout the parade route. Presenting sponsor location on Advertising and Promotions; including all Tree Lighting promotions; Logo on Event Website with link to sponsor site; Ten (10) VIP seats on the Parade Review Stand and pre-parade VIP party. Ten (10) sponsor gifts and Three (3) VIP parking spots. Gold Bell — Gold Level - $10,000 The Gold Bell sponsor offers the opportunity for heightened visibility through various advertising and promotions leading into the Palm Springs Festival of Lights Parade. Numerous company name recognition announcements from the Review Stand announcer will be provided to the participating company at all sponsored review stands throughout the parade route. Logo on Event Website with link to sponsor site. Five (5) VIP seats on Parade Review Stand and pre-parade VIP party. Five (5) sponsor gifts and Two (2) VIP parking spots. 09 Silver Mistletoe — Silver Level - $5,000 The Silver Mistletoe level offers positive and effective community advertising and marketing to a wide range of audiences. Company name recognition announcements from the Review Stand announcer will be provided to the participating company at all sponsored review stands throughout the parade route. Logo on Event Website with link to sponsor site. Three (3) VIP seats on Parade Review Stand and pre-parade party Three (3) sponsor gifts and two (2) VIP Parking spot Community Sponsor - $1,500 The Community Sponsor offers a less expensive way to utilize the Festival of Lights Parade as a way to connect with the community. Logo and Mention on Event Website Two (2) VIP seat on Parade Review Stand and pre-parade VIP Party Two (2) sponsor gifts and One (1) VIP parking spot. Parade Aficionado - $1,000 Mention on Event Website One (1) sponsor gift Friends & Family - $500 Thank you acknowledgment One (1) sponsor gift OFFICAL BALLOON SPONSOR (NEW) - $2,500 This new area of sponsorship allows your company to officially sponsor our signature themed Macy's Day-style balloons. Each balloon is assigned on a first come first serve basis. Carry your business banner preceding your company sponsored balloon. Opportunity includes providing volunteers from your company to walk with the balloons, train with the professionals and make these incredible showpieces come to life! GRANDSTAND SPONSOR (NEW) - $5,000 View the illuminated holiday spectacular from the best seat in the house while enjoying the benefits of branding our most sought-after locations to view the parade. Logo recognition and signage on one of the Festival of Lights Parade grandstand. Frequent company name recognition announcements from the announcer will be afforded to the participating company at all sponsored grandstands throughout the parade route. 10