No preview available
HomeMy WebLinkAboutItem 10e - Sponsorship Funding for Fireworks DATE: May 16, 2023 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Justine Bruno, Deputy City Manager SUBJECT: RESOLUTION NO. 7497 AMENDING THE FISCAL YEAR 2022-23 OPERATING BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE PURCHASE OF FIREWORKS AT THE 2023 PATRIOTIC FESTIVAL IN THE AMOUNT OF $20,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE; AND WAIVING EXPENSES RELATED TO POLICE AND FIRE SUPPORT FOR THE 2023 PATRIOTIC FESTIVAL CEQA: Exempt Recommendation: Adopt SUMMARY The City Council has provided direction to fulfill the $20,000 sponsorship request from the Downtown Arcadia Improvement Association to fund the firework display at the 2023 Patriotic Festival. This resolution provides the necessary budget authorization to grant the sponsorship request and to waive expenses related to police and fire services in support of the Patriotic Festival this year. It is recommended that the City Council adopt Resolution No. 7497 to amend the Fiscal Year 2022-23 Operating Budget and authorize a supplemental appropriation for the purchase of fireworks for the 2023 Patriotic Festival, in the amount of $20,000, offset by a reduction in the General Fund Reserve, and waiving expenses related to police and fire support for the 2023 Patriotic Festival. BACKGROUND At the May 2, 2023, City Council Meeting, information regarding community events in Arcadia was presented, which included information on events the City hosts, funds, and staffs; events the City co-sponsors with non-profit partners; and outside events the City supports and recovers costs for. An overview of community events in Arcadia was shared with the City Council to help provide a comprehensive overview and background before a determination on the sponsorship request from the Downtown Arcadia Improvement Resolution No. 7497 Approving Sponsorship Request for 2023 Patriotic Festival May 16, 2023 Page 2 of 3 Association (“DAIA”) was made. The sponsorship request from the DAIA was first raised with the City Council during their Goal Setting Meeting on February 4, 2023. Subsequently, a letter outlining the same request was sent to the City Council on March 9, 2023, by DAIA President Erik Wahl. The Patriotic Festival has become a tradition in Arcadia, occurring on July Fourth weekend each year since 2015, and providing an opportunity for community members and visitors to celebrate the holiday locally. The Patriotic Festival is a family-friendly event that presents local businesses and offerings, food vendors, music entertainment, and a parade. In recent years, it has concluded with a fireworks show. Due to the rising cost of hosting large scale events, the DAIA has requested assistance from the City to support the Patriotic Festival at a greater level, which is to fund the fireworks show in its entirety. Upon receiving the presentation on community events, the City Council granted the DAIA’s $20,000 sponsorship request and directed any affiliated public safety costs for the event to be waived as well. DISCUSSION The Downtown Arcadia Improvement Association has requested the City provide a $20,000 sponsorship to expand the fireworks display at the annual Patriotic Festival held in downtown Arcadia. The $20,000 sponsorship will be used to extend the seven-minute firework show to approximately 10 minutes and will cover the costs for additional safety and security measures as well as equipment rentals and event marketing. In addition to financially supporting the Patriotic Festival this year, the City Council indicated their interest in extending support for the fireworks show into future years with the City assuming full responsibility for the fireworks display. This would include the costs, logistics, insurance, safety measures, security, and all other components related to the fireworks portion of the event. City staff will evaluate the best methods to offer this level of support and bring forward options and a corresponding budget package for City Council to consider in the coming months. ENVIRONMENTAL ANALYSIS The proposed financial sponsorship of the fireworks display and waiver of public safety costs does not constitute a project under the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. In future years, any environmental impacts or considerations from the operation of a fireworks show will undergo a CEQA review and will be addressed by staff accordingly. Resolution No. 7497 Approving Sponsorship Request for 2023 Patriotic Festival May 16, 2023 Page 3 of 3 FISCAL IMPACT The associated fiscal impact is a net reduction in the General Fund Reserve in the amount of $20,000 for Fiscal Year 2023 plus the waiver of costs for public safety services, which totals approximately $6,500. The City will issue a check of $20,000 to the DAIA directly and the public safety costs will be absorbed by the operating budgets of the Fire Department ($4,000) and Police Department ($2,500) for this coming Fiscal Year. Between the sponsorship amount and the waiver of public safety costs, the total cost impact to the DAIA will be $26,500 for the 2023 event. The City has never recovered its costs for the Public Works Services Department at this event, which is approximately $4,100 in staffing and equipment costs. Therefore, the total City costs for the 2023 Patriotic Festival will rise to $30,600, nearly half of the $62,000 overall budget for the event. With the City assuming full responsibility for the fireworks display in future years, a budget package to fund the affiliated costs for the fireworks, insurance, vendors, equipment, and staff time will be submitted to the City Council in the coming months so that they can be considered in time for planning the 2024 event. RECOMMENDATION It is recommended that City Council adopt Resolution No. 7497 amending the Fiscal Year 2022-23 Operating Budget and authorizing a supplemental appropriation for the purchase of fireworks for the 2023 Patriotic Festival in the amount of $20,000, offset by a reduction in the General Fund Reserve, and waiving expenses related to police and fire support for the 2023 Patriotic Festival. Attachment: Resolution No. 7497