CITY COUNCIL: Resolution Adopting Criteria For Special Event Waivers

Meeting Date: April 3, 2012
Prepared by: Heidi Burch Asst. City Administrator


City Council
Agenda Item Summary

Name: Consideration of a Resolution adopting criteria for special event waivers.

Description: The City Council has been receiving an increased number of requests for waivers of event-related fees. At the February 7, 2012 meeting, the Council asked staff to return with cost breakdowns for three sample events in order to evaluate the range in costs of fee waiver requests and to assist in developing criteria for event fee waivers.

Financial Impact: The financial impact must be determined. Any Council action reducing fees will result in lost budgeted revenue.

Staff Recommendation: Staffrecommends Council adopt a Resolution establishing criteria for waiving certain fees related to events and exclude direct costs such as overtime and outside labor costs from waiver requests.

Important Considerations: Council may wish to consider requiring that all fee waiver requests be supported by financial information and a proposed budget. In the case of events that are not new, financial information from previous years also should be required. Virtually all the fee waiver requests indicate a charitable component to their events. Supporting financial documentation will help the Council determine if the charitable financial impact on the community is substantive and if the waiver is a good use of public funds.

Decision Record: On July 12, 2011, City Council adopted Resolution 2011-38 approving revisions to the Community Services fee schedule.

Reviewed by:

Jason Stilwell, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
STAFF REPORT

TO: MAYOR MCCLOUD AND COUNCIL MEMBERS
THROUGH: JASON STILWELL, CITY ADMINISTRATOR
FROM: HEIDI BURCH, ASST. CITY ADMINISTRATOR
DATE: MARCH 28, 2012
SUBJECT: CONSIDERATION OF CRITERIA TO WAIVE EVENT FEES

BACKGROUND
The City Council is being approached more frequently with requests to waive fees. Fees for events are implemented in order to offset direct and indirect costs for services such as outside personnel or overtime costs for City staff, NO PARKING signs, traffic cones and barricades.  Fees are projected as revenue annually during the budget process.

As its February 7, 2012 meeting, the City Council asked staff to return with cost breakdowns of
three sample events in order to evaluate the range in costs of fee waiver requests and to assist in
developing criteria for event fee waivers.

EVALUATION
In the past, the Council has typically granted only “free use” days for the use of the Sunset Center with a rare contribution of monetary support. Requests now include waivers of items such as: special event permit fees; grant writing fees; Police and Public Works staffing costs; costs for street closures; costs for the use of Devendorf Park, the beach and other City properties as well as cash contributions.

Costs for events vary greatly and ultimately, with the exception of weddings, no two are alike. In
reviewing events held within the City, costs have ranged from $150 to over $22,000.

Per Council’s request, three different cost breakdowns are presented to illustrate the variety of
fees associated with events of different sizes and types.

Event 1
A BBQ on the beach with more than 50 participants:
Use of the beach (includes event permit fee) $400
Refundable cleaning deposit $200
Two parking spaces reserved on Scenic for caterers $200
Total invoiced amount $800
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Event 2
A parade involving the closure of two streets:
Special event permit fee $150
Police Officer $75 per hour x 8 $600
Closure of two City streets $730
Traffic Cones $3 X 75 $225
No Parking Signs $3 X 50 $150
A-Frames $25 X 30 $750
Barricades $65 X 4 $260
Outside labor to breakdown event $16.50 X 5 hrs X 2 staffers $165
Total amount invoiced $3030
Event 3
A multi-day festival utilizing different venues throughout the City:
Special event permit fee $150
The use of Devendorf Park $800
Damage deposit for Devendorf Park $350
The closure of Mission between Ocean and Sixth for four days $1,460
Sunset Center free use day value of $2,000*
Use of the beach for catered event & activities $400
Police staffing for coordination of beach activities $750
Police staffing for coordination of VIP guests w/private security $1,000
Staff over time for coordination of event (PW and Comm Svcs) $2,244
Total amount invoiced $7154 (not incl. free use day)
*This is not a direct cost to the City. The City has five “free use” days for use of the Sunset
Center each year. The value is provided here for reference only.
In considering criteria for waivers of fees associated with Community Events, the Council may
want to consider 1) the economic impact of the event, i.e. does the event bring people into town
overnight, or are people likely to visit the restaurants and shop before or after the event and 2)
contributions to the community, i.e. is the event a non-profit, charitable event or fundraiser.
Additionally, Council may want to require that fee waiver requests be supported by financial
information. A proposed budget should accompany each request. In the case of events that are
not new, financial information from previous years also should be required. Virtually all of the
fee waiver requests indicate a charitable component to their events. Supporting financial
documentation will help the Council determine if the charitable financial impact on the
community is substantive and if the waiver is a good use of public funds.
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FISCAL IMPACT
While most fees associated with events were implemented by the Council for cost recovery
associated with staff time and physical resources such as equipment, there are also direct costs
the City.
Because most events occur on the weekends, unbudgeted overtime costs are incurred in
departments such as the Police Department and Public Works. Additionally, in cases where staff
is unable to work on the weekends, the City has to hire hourly personnel from a private
contractor.
Direct costs to the City that are waived by Council are taken from the Council Discretionary
Fund. As waivers are not typically budgeted, transfers to the Discretionary Fund will be required
to cover costs waived.
Additionally, fees are projected as revenue for each department annually during the City’s
budget process. These revenues are essential to offsetting departmental costs and preserving
service levels to the community. These revenue projections are impacted negatively by fee
waivers and may cause departments to defer or abandon projects due to a lack of funding.
RECOMMENDATION
Staff recommends Council adopt a Resolution establishing criteria for waiving certain fees
related to events and exclude direct costs such as overtime and outside labor costs from waiver
requests.
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CITY COUNCIL POLICY C12-02
EVENT FEE WAIVERS
I. Purpose.
II. Community Event Fees
III. Application Process
I. Purpose.
The City is regularly being approached to waive fees for Community Events. This policy is designed to outline criteria for the submittal and review by Council of fee waiver
requests.
II. Community Event Fees
Fees Eligible for Waivers:
• Special Event Permit Fee
• Fees associated with street closures
• Fees associated with events on the beach or at City Parks
• Parking stall fees
Fees not eligible for Waivers:
• Grant writing expenses
• Damage deposits
• Overtime costs for City personnel
• Costs for contracted personnel
Criteria:
• What will be the economic impact on the community?
• What charitable contributions to the community will be made, either directly or indirectly?
Documentation Required with Waiver Request:
• Detailed scope of the event
• A proposed budget
• Past financial statements for established events
III. Application Process.
• An applicant shall submit in writing a request for a fee waiver to the City Clerk.
• The request shall be placed on a future Council agenda for review by the City Council.