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HomeMy WebLinkAboutAgenda Report - March 2, 2022 H-03AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Provide Direction on Charging for Fourth of July Event MEETING DATE: March 2, 2022 PREPARED BY: Parks, Recreation and Cultural Services Director N - 3 RECOMMENDED ACTION: Provide direction on charging for Fourth of July Event. BACKGROUND INFORMATION: The City has provided a Fourth of July program at Lodi Lake Park since 2007. The event is open to the public at no cost and in the past, has included a community pancake breakfast provided by the Kiwanis Club, various food and drink vendors throughout the day and night, various activities, access to beach (separate entrance fee), paddleboard and kayak rentals through Headwaters concession (separate fee), and a pyrotechnics firework show. The City has covered the cost of the fireworks show, staffing, including overtime and materials, and supplies needed for the event (i.e. fencing around the perimeter of the park). Police screen entrants for weapons, alcohol and dangerous items to ensure visitor safety. Estimated attendance within the park for the fireworks show is 5,000 to 7,500 people. Total direct costs for the event exceed $50,000, which includes overtime for public safety, Public Works and Parks, Recreation and Cultural Services (PRCS) staff. Revenue from vendors is minimal - $125 permit fee. Anticipated direct costs for July 4, 2022 are listed in the chart below. These numbers are based on previous years' expenses. Direct expenses Amount Police overtime $13,000 Parks Division overtime $5,600 Public Works overtime $2,100 Fire Department overtime $2,400 Supplies, including fencing, -o-lets $13,800 Fireworks $16,000 Aquatics special event staffing, overtime $1,000 Total direct expenses $53,900 Direct costs do not include staff time planning the event. PRCS, Fire, Police and Public Works staff spend more than 200 hours preparing for the event at a cost of approximately $10,000. In addition, the Parks Division provides increased resources at Lodi Lake following the event for cleaning and repairs. Direct and indirect costs total $63,900. APPROVED: Steve Schwabauer Stephen Schwabauer, City Manager Provide Direction on Charging for Fourth of July Event March 2, 2022 Page 2 Council has requested to be presented with options for cost recovery of the event. PRCS proposes to charge the public an entrance fee, increase vendor permit costs and seek sponsorships from community businesses. Presale Tickets Day of Event Resident over 5+ years old $5 $10 Nonresident (over 5+ years old) $8 $10 Entrance Fees will be charged on a presale and day -of -event schedule and will provide for a discounted presale -rate for City of Lodi residents. Cash and credit cards will be accepted at the Lodi Lake gate for day -of -event sales. Vendor's currently pay a permit fee of $125. In 2021, four (4) vendors participated in the event. On average we have ten (10) vendors who participate in the event. PRCS proposes to increase the permit fee by $75 to $200. Increasing the permit fee yields an increase of revenue from $1,250 to $2,000. PRCS shall develop a sponsorship program for the Fourth of July event and offer marketing opportunities such as banners/signage and prime seating for those at the $1,000+ sponsorship level. PRCS proposes a goal of $10,000 of marketing sponsorships. PRCS anticipates cost recovery as detailed below with the following assumptions Assumptions: 50% of attendees will purchase presale tickets 30% of attendees are residents 70% of attendees are nonresidents Calculations based on 5,000 minimum attendees; attendance may decrease due to entrance fees Day of Event fee shall be a round number to simplify cash transactions Anticipated Entrance Fees: Resident (5+ years Nonresident (5+ ve Presale Tickets $5 30% of 2500 = 750 $ 3,750.00 $8 70% of 2500= 1750 $ 14,000.00 1 Day of Event Resident (5+ years old) $10 30% of 2500 = 750 $ 7,500.00 Nonresident (5+ years old) $10 70% of 2500= 1750 $17,500.00 Total anticipated fees $ 42,750.00 Anticipated Vendor Fees: $2,000 Anticipated Sponsorships: $10,000 Total Cost Recovery: $54,750 FISCAL IMPACT: Calculations are based on assumptions of number of attendees, participating vendors and sponsorships. If all assumptions are proven, this plan could yield 86% cost recovery. Provide Direction on Charging for Fourth of July Event March 2, 2022 Page 3 FUNDING AVAILABLE: Council has approved a budget of $21,000 in staffing and $16,500 for fireworks or $37,500 in total in previous years. Andrew Keys Andrew Keys Deputy City Manager/Internal Services Director 5te c r(Feb 16, lo» 1393 PST( Stephen Schwabauer City Manager SS\CJ:tl cc: City Attorney Signature: d,6'1r= Anflmw 3lrys frrh 16.X2.12 15:23 PST] Email: akeys@lodi.gov Signature: Email: sschwabauer@lodi.gov CITY OF %`: aZlo C A L I F O R N I A Direct Costs Staffing Costs including overtime Fencing, Port -o -lets Fireworks Indirect Costs Planning and administration Budgeted = -V$37,000 Direct + Indirect Costs = -V$64,000 CITY O F O Z CA Ll FO R N IA Public Entrance Fees Presale and Day of Event Fees with a discounted rate for Lodi Residents Presale Tickets I Dav of Event Resident over 5+ years old $5 $10 Nonresident (over 5+ years old) $8 $10 Vendor Permit Costs Increase to $200 from $125 per vendor Seeking sponsorships Marketing opportunities Prime seating Anticipated Cost Recovery = 86% cost recovery at $55,000 Entrance Fees = $43,000 based on 5000 attendees Vendor Fees = $2,000 Sponsorships = $10,000 CITY OF �� / O Z CALIFORNIA