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HomeMy WebLinkAboutItem 5.1 Pasta Festival 2000CITY CLERK # 0950-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 21, 2000 SUBJECT: WRITTEN COMMUNICATIONS: Correspondence from GoodTimes Promotions on the 2000 Dublin Pasta Festival Report Prepared by Paul McCreary, Recreation Supervisor ATTACHMENTS: Letter from GoodTimes Promotions Analysis of 1999 Pasta Festival Budget Budget Change Form RECOMMENDATION: 1. Determine whether the City should continue to sponsor the Pasta Festival If so, provide direction on the location, dates and preferred method of producing the event, and approve the Budget Change Form FINANCIAL STATEMENT: See Attached DESCRIPTION: The 1999 Dublin Pasta Festival was held the weekend of September 11 and 12. Prior to 1999 the Pasta Festival was sponsored and produced solely by GoodTimes Promotions, Inc. In 1998 the event moved from Pleasanton to Dublin because the festival had outgrown the site in Pleasanton. On May 4, 1999, the City Council approved an agreement with GoodTimes Promotions to produce the event on behalf of the City who is now the event sponsor. The agreement with GoodTimes Promotions is a five-year contract, which can be renewed annually. A letter has been received from GoodTimes Promotions indicating that they are no longer interested in producing the Pasta Festival (Attachment 1). GoodTimes has decided to pursue expanding their successful RV shows and therefore will no longer be able to produce the Pasta Festival for the City. According to the terms of the City's agreement with GoodTimes, if the agreement terminates before 2002, then GoodTimes has the right to use the name of the festival. However, GoodTimes has indicated that they are not interested in the naming rights. The City's agreement with GoodTimes does not require the City to continue to sponsor the Pasta Festival if the agreement is terminated. Therefore, the City has the option to discontinue sponsorship or cancel the Festival. Conversely, the agreement does not prohibit the City from continuing to sponsor the Festival. This could be done through a contract with another festival promoter or in-house by hiring additional Staff. A discussion of the options follows. G:\COUNCIL\d1321 pastafestival.doc COPIES TO: GoodTimes Promotions, Inc. ITEM NO. Option 1 - Discontinue Sponsorship of the Pasta Festival As noted previously, Dublin has been the site of the Pasta Festival for two years. The first year the Pasta Festival was produced solely by GoodTimes Promotions, Inc. and the second year the City assumed the sponsorship of the event under contract to GoodTimes. When the City consented to take over the sponsorship of the Festival in 1999, the Festival budget proposed by GoodTimes estimated that the City would realize a net gain for the Festival of $7,502. As shown in Attachment 2 (1999 Dublin Pasta Festival Budget versus Actual) sponsorship of the Pasta Festival actually cost the City $36,305. Consequently, the City is heavily subsidizing the Pasta Festival. However, the Pasta Festival has attracted over 50,000 people to Dublin over the past two years. The festival has provided additional exposure to Dublin businesses and has enhanced community pride. According to a November 1999 article in the Tri-Valley Herald highlighting the City's festivals, residents look forward to these community events. The article quotes residents as saying the City's festivals are a great way to get to know your neighbors and local businesses. Another resident was quoted as saying the festivals give residents a sense of ownership of where they live and promote pride in the City. Option 2- Continue Sponsorship of the Pasta Festival With a Festival Promoter The City could continue sponsorship of the Pasta Festival through a contract with another Festival Promoter. In order to secure the services of a promoter, a Request for Proposals would be developed and circulated to festival promoters. It should be noted, however, that the last time that the City solicited proposals for the management of the St. Patrick's Day Festival, only two proposals were received (GoodTimes Promotions and Terry Pimsleur & Company). Staff has found that there are a limited number of festival promoters and that summer and fall is the prime season for festivals. Consequently, with only five months remaining until the Pasta Festival securing the services of a festival promoter may prove problematic. Option 3 - Continue Sponsorship of the Pasta Festival With In-House Staff At present, there is insufficient Staff time available to successfully produce the Pasta Festival in-house due to the other high priority goals approved by the City Council. In order to produce the Festival in- house, it is recommended that a Community Events Coordinator be hired. This position would be responsible for the planning and operation of both the Pasta Festival and the St. Patrick's Day Festival thus eliminating the need to contract for these services. This position would also coordinate an annual sponsorship recruitment program for the City's events and would work closely with the local business community and non-profit organizations. It is expected that a staff person would be more familiar with the community than a contractor and would be able to provide better customer service and keep event costs to a minimum. The Coordinator could also maintain a comprehensive community events calendar and act as a liaison for the City with others who are planning events in the community. Analysis of Contracting Versus In-House Staff When the City expanded the St. Patrick's Day Festival in 1997, the decision was made to contract with a professional event producer rather than hire additional staff. With only one festival at that time, it seemed more advantageous to contract the work. With the addition of the Pasta Festival in 1999, the City now has two separate agreements for festival production services. The scope of services for both agreements includes the complete planning and operation of the festival. The contractor has received a flat rate management fee to provide these services, plus a percentage of any sponsorships secured for the event. Within this management fee the contractor absorbs the cost of the operations staff for the event (including beverage managers, volunteer coordinators, ice distribution, vendor coordinators, etc.). Some of the expected benefits of contracting included a reduction in Staff time and expenditures, increased sponsorships to offset the festival cost, and higher quality vendors. However, after three years -2- of working with contractors the net cost of the festivals has actually increased not decreased. Additionally, the Staff time associated with managing the contractors has increased as well. Many of the problems Staff has encountered working with contractors stems from them not being familiar with the local community. Staff analyzed the costs of contracting versus hiring and found the costs would be roughly the same. The table shown below compares only those costs that are affected by contracting for services and how they would change based on using in-house staff. Management Fee St. Patrick's Day Festival Pasta Festival Sponsorship Commission St. Patrick's Day Festival Pasta 'Festival Operations Staff St. Patrick's Day Festival Pasta Festival Per Diem St. Patrick's Day Festival Pasta Festival (n/a) Graphic Artist Services St. Patrick's Day Festival Pasta Festival Art/Craft Vendor Management St. Patrick's Day Festival Pasta Festival Community Events Coordinator Salary Benefits Total Estimated Costs Under Contract Estimated Costs In-House $ 30,000 $ 0 $30,000 $ 0 $ 1,175 $ 0 $ 1,900 $ 0 $ 7,065 $ 6,000 $ 2,800 $ 6,000 $ 750 $ 0 $ o $ o $ 2,275 $ 500 $ 100 $ 5OO $ 0 $ 2,325 $ o $ 1,ot5 $ 0 $ 44,265 $ 0 $15,095 $ 76,065 $ 75,700 If the Council wants to continue sponsorship of the Pasta Festival and is in support of having the festivals produced in-house using City Staff, a Higher Service Level for the new position would be prepared as part of the Fiscal Year 2000-2001 Budget. If the position were approved with the budget, recruitment could begin in July. In the interim, Staff recommends hiring a part-time employee for the balance of Fiscal Year 1999-2000 to begin planning for the 2000 Pasta Festival. A Budget Change increasing Part-time Salaries and Benefits by $10,552 and decreasing Contract Services in the like amount is Attachment 3. 2000 Festival Date and Location Following the 1999 festival, the Council directed Staff to change the event dates for the 2000 Festival from September 9 and 10 to August 19 and 20. The Council also directed Staff to relocate the festival to the Dublin Civic Center and Sports Grounds. Since then, Staff has discovered that the dates of the Hayward Zucchini Festival have also changed to August 19 and 20. As the Zucchini Festival is a larger, more established festival, it could have a detrimental impact on booth sales, media sponsorships and attendance. The event dates could be changed, however the Sports Grounds will not be available after August 20 because the soccer season will be starting. If the Council wanted to change the dates, the event could potentially be relocated to the location of the St. Patrick's Day Festival on Amador Valley -3- Boulevard. This location was selected for the St. Patrick's Day Festival because it does not "land-lock" any shopping centers or businesses. However to use this location, space in the Shamrock Village Shopping Center would also be needed to accommodate the event. These merchants may not be favorable to holding two festivals in their shopping center every year. The Tri-Valley Convention and Visitors Bureau has provided the following listing of other area festivals and events for the month of August and September. August 4 August 4-5 August 5-6 August 19-20 August 25 August 25-27 September 2-3 September 3-4 September 10 September 15-17 Hop Fest California Wine Auction Bean Festival Zucchini Festival Cruise Night Good Guys Car Show Scottish Games Harvest Wine Festival Taste of Downtown Cowboy Gathering Pleasanton Livermore Tracy Hayward Pleasanton Pleasanton Pleasanton Livermore Livermore Tri-Valley Regarding the date and location, Staff has identified the following options for City Council consideration. If it was the desire of the Council to use the Dublin Civic Center and Sports Grounds but change the date, Staff would recommend that the Festival be changed to August 12 and 13. This would require that the Summer Concert Series be changed from July 14 through August 11 to July 7 to August 4. If it was the desire of the Council to change the date and the location, Staff would recommend that the Festival be moved to September (as it has been in the past) on either September 9 and 10 or September 16 and 17. The Festival could be relocated to the location of the St. Patrick's Day Festival on Amador Valley Boulevard provided that the merchants at Shamrock Village Shopping Center are agreeable. Con clusion If the Council wishes to continue to sponsor the Dublin Pasta Festival, Staff believes it would not be advantageous to contract the production of the festival to a private company. For the same cost, hiring a Community Events Coordinator would give the City more control over the planning and operation of both the Pasta Festival and the St. Patrick's Day Festival. This would help the City provide better customer service and potentially reduce the cost of these events to the City. Recommendation With only five months remaining until the Pasta Festival, time is of the essence in making a decision on the furore of the Pasta Festival. Therefore, it is the recommendation of Staff that the City Council determine whether the City should continue to sponsor the Dublin Pasta Festival. If so, then Staff asks for further direction on the following: 1) Preferred method of producing the event (contract o~ in-house staff) 2) Location and Date. a. Dublin Civic Center/Sports Grounds, August 19 and 20 o__rr August 12 and 13 b. Amador Valley Boulevard/Shamrock Village, September 9 and 10 o._rr September 16 and 17 If the Council supports production of the event with in-house staff, Staff recommends approval of the Budget Change Form. -4- GoodTimes 6451 Scarlett Court, DUblin, CA 94568 · (925) 803-4050 · Fax (925) 803-7528 Promotions, Inc. February 18, 2000 Diane Lowart Parks & Community Services Director City of Dublin P.O. Box 2340 Dublin, CA 94568 Dear Diane: GoodTimes Promotions have been producing upscale festivals and RV Shows in the Th-Valley area since 1990. Over the past 12 month's we have evaluated our current calendar of events to determine cost effectiveness and growth potential. Our f'mdings tell us that GoodTimes Promotions must step away from the Pasta Festival and focus on expanding our current May and September RV Shows. GoodTimes Promotions will do everything possible to assist in making this transition smooth and successful for the City of Dublin. Please contact us at your earliest convenience, so we can start the process. Michael Nohr President GoodTimes Promotions, Inc. ATTACHMENT 1 1999 DUBLIN PASTA FESTIVAL BUDGET VS. ACTUAL Art & Craft Booth Sales Commercial Booth Sales Restaurant Booth Sales Food Cart Contracts Children's Attractions Sponsorships Beverage Sales Commemorative Item Sales $20,000 $10,155 ($9,845) $15,000 $16,580 $1,580 $4,500 $4,325 ($175) $1,800 $1,447 ($353) $1,000 $2,735 $1,735 $19,000 $19,000 $0 $41,180 $21,859 ($19,321 ) $3,000 $180 ($2,820) TOTAL REVENUE Postage Operating Supplies Advertising Printing and Binding Rentals and Leases Contract Services Bank Service Char~les TOTAL EXPENDITURES NET REVENUE(LOSS) City Support Services-Police, Fire, Public Works $105,480 $76,281 ($29,199) :~,Fr~ ._r~,~.~ ~]li(:]~=],r.(~ $619 $515 $104 $12,097 $12,402 ($305) $12,500 $11,458 $1,042 $210 $163 $47 $12,783 $15,974 ($3,191) $50,319 $58,932 ($8,613) $0 $361 ($361) $88,528 $99,805 ($11,277) $16,952 ($23,524) ($40,476) $9,450 $12,781 ($3,331 ) ACTUAL COST TO CITY $7,502 ($36,305) ($43,807) ATTACHMENT 2 CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: From Unappropriated Reserves From Budgeted Contingent Reserve (1080-799.000) X Within Same Department Activity From New Revenues Between Departments (City Council Approval Required) Other Name: Special Events Contract Services $10,552 Name: Special Events Part-Time Salaries $9,750 Account #: 001.80700.740.000 Account #: 001.80700.701.002 Name: Name: Special Events Workers Comp $56 Account #: Account #: 001.80700.702.006 Name: Name: Special Events FICA $141 Account #: Account #: 001.80700.702.008 Name: Name: Special Events FICA OASDI $605 Account #: Account #: 001.80700.702.009 Name: Name: Account #: Account #: Fin Mgr/ASD Date: Signature REASON FOR BUDGET CHANGE ENTRY: To provide funds to hire a part-time employee to coordinate the 2000 Dublin Pasta Festival. City Manager: Date: Signature Mayor: Date: Signature Posted By: formsX, budgchng Signature Date: ATTACHMENT 3