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HomeMy WebLinkAboutItem 10b - City Events and Sponsorships DATE: September 5, 2023 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Justine Bruno, Deputy City Manager SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING CITY EVENTS AND SPONSORSHIPS CEQA: Not a Project Recommendation: Provide Direction SUMMARY Over the past few months, the City Council has taken a series of steps to host and sponsor more community events in Arcadia. These additional events and sponsorships have also generated more questions about the City’s interests beyond 2023. To understand the City Council’s interests going forward, more direction is needed on hosting specific events and programs in future years, the level of resources allocated to each endeavor, and determining the sponsorships to be offered. This presentation seeks to solidify a path forward regarding the City’s role in the Patriotic Festival and Law Day; funding the Moon Festival; hosting a Lunar New Year celebration; and creating a Veterans Banner Recognition Program. This presentation will allow the City Council to explore these remaining questions and receive additional information regarding potential resource use for the proposed events, programs, and sponsorships. If the City Council would like to add more events, programs, or sponsorships to Arcadia’s existing offerings, more guidance is needed regarding those events and programs, and the level of resources to be allocated in support of each. It is recommended that the City Council provide direction regarding future City events and sponsorships. BACKGROUND On May 2, 2023, the City Council received a presentation that provided a comprehensive overview of community events across Arcadia (see attached Staff Report). The events highlighted in the presentation included those hosted by the City as well as events the City helps support in some capacity. Support for these events may include providing in- kind services, direct sponsorship with City funds as well as events the City staffs but City Events and Sponsorships September 5, 2023 Page 2 of 8 recovers costs for. In addition to this overview of community events, a $20,000 sponsorship request for the 2023 Patriotic Festival was made by the Downtown Arcadia Improvement Association, for the City Council’s consideration. For the 2023 Patriotic Festival, the City Council directed staff to sponsor the firework show up to $20,000, including waiving any ancillary costs for Police, Fire, and Public Works Services. For future years, the City Council requested staff evaluate the possibility of the City assuming full responsibility for the fireworks display and return with a proposal for City Council to consider. On June 6, 2023, the City Council received a presentation on the upcoming 2023 Law Day event. During this presentation, the history of Law Day was reviewed including the City’s involvement, the role of the Arcadia Chinese Association (“ACA”), and the City’s level of participation during a transition year. At the conclusion of the presentation, the City Council granted City staff discretion to help make the 2023 Law Day event successful, but to return to the City Council in 90 days with the ACA’s position regarding future Law Day events. During a Special Meeting on June 28, 2023, the City Council discussed the possibility of hosting a Mid-Autumn Moon Festival in Arcadia. Staff presented information on a potential Moon Festival including timing, costs, and event components for City Council to consider. At the conclusion of this meeting, the City Council directed staff to host a Mid-Autumn Moon Festival on September 30, 2023, in partnership with the Arcadia Chinese Association and the Chamber of Commerce. With this direction, the City Council approved a $25,000 supplemental budget appropriation on July 18, 2023, to host the event this year. More direction is needed about adding the Moon Festival to the City’s event offerings and annual budget going forward. During the discussion of the Mid-Autumn Moon Festival, the City Council also raised the idea of hosting a Lunar New Year celebration in early 2024. While it was initially put forth as an alternative to hosting the Moon Festival this year, the City Council indicated an interest in adding both events to the calendar. For many years, Recreation and Community Services and the Arcadia Chinese Association have co-sponsored an annual luncheon at the Community Center to celebrate the Lunar New Year. More direction is needed regarding the desire to have a Lunar New Year celebration, including any partnerships, event offerings, and budget. At the August 15, 2023, City Council Meeting, Council Member Cao received support to place the topic of a banner program recognizing Arcadia Veterans on a future City Council Agenda. This item will present options for the City Council to consider in support of this program, including recommendations on potential locations, timing considerations, and costs. City Events and Sponsorships September 5, 2023 Page 3 of 8 DISCUSSION The following subsections identify the direction sought for each of the events listed above along with some alternatives to be considered and related recommendations. Downtown Arcadia Patriotic Festival At the May 2, 2023, City Council Meeting, the City Council committed to supporting the 2024 Patriotic Festival, with the motion stating that the City would take over planning and management of the fireworks show. In past years, the show has been seven minutes long. The request for 2023 was to extend the show to 10 minutes, which was approved by the City Council in their budget authorization; however, given the last-minute nature of the approval, extending the program was not possible. The final cost to the City for the fireworks was $17,562 instead of the budgeted $20,000; costs for Police, Fire, and Public Works support for the event were also waived. On August 21, 2023, the DAIA issued a letter to the City Council requesting funding for a 15-minute firework show at the 2024 Patriotic Festival, at a cost of $35,000 (see attached letter). This new request represents a 5-minute/$15,000 increase from the 10- minute/$20,000 firework show the City Council approved in 2023. The new request also adds additional line items that are related to the fireworks show, including the cost of the DJ. The $35,000 request does not account for the in-kind support the Police, Fire, and Public Works Services Department provide in support of the event, which conservatively totals $10,500 for the Patriotic Festival. In addition, the letter asserts that the DAIA wants to maintain their role as the primary producer of the fireworks display and requests the City participate as a financial sponsor. In 2023, the Patriotic Festival cost $76,887 to produce ($66,387+ $10,500 in-kind services), with $17,562 in direct financial support from the City. With the request to expand the firework show to 15 minutes, the estimated budget for the 2024 Patriotic Festival would be roughly $98,500, with the City funding 46% of that cost, or $45,500 ($35,000 financial support + $10,500 in-kind services). While taking over management of the fireworks program does put additional onus on City staff to put on the event and could add to the City’s liability exposure, the City would be better able to plan for and control its costs annually. Does the City Council want to contribute the requested $45,500 to the Patriotic Festival in 2024? If not, what is the appropriate amount? Should the City produce the firework show and assume all related costs for supplies, labor, and insurance, or simply provide funding? City Events and Sponsorships September 5, 2023 Page 4 of 8 Law Day Law Day was initiated by the City more than two decades ago and has been supported by the Arcadia Chinese Association throughout that time. In 2020, the City Council outlined a new direction for the event that limited event support to waiving room rental/facility costs. Law Day was not held from 2020 to 2022 due to the COVID-19 pandemic; however, in the process of reenergizing this year’s event, questions were raised about the ACA’s interest and ability to host the event independently. While the ACA undoubtedly led the event this year, City staff were much more involved throughout the process than originally anticipated. The ACA has expressed an interest in restoring Law Day to its original form, with the City hosting the event, with the City taking the leadership role both financially and administratively and the ACA providing support. This would reinstate the $2,500 in costs formerly used to support the event. This would be staff’s recommendation as well. It should be noted that a new banner for the event is long overdue, which would require an additional cost of approximately $1,000 this year. If the ACA is expected to be a partner in the event, then staff would recommend that the ACA logo be added to the banner when it is updated. The ACA has indicated that they may not have an interest in leading the event in the future. Therefore, the seminal question before the City Council, really, is whether Law Day should be held. If so, then the City Council should expect the City to lead the event. Should Law Day be held in April each year, hosted by the City? If so, should the ACA continue to be the primary partner in the effort? Mid-Autumn Moon Festival The 2023 Mid-Autumn Moon Festival (“Moon Festival”) will be held on Saturday, September 30, and will offer musical performances, food offerings, cultural entertainment, children’s activities, and local vendors. The event is free to attend and is being held in partnership with the ACA and the Chamber of Commerce, who are offering in-kind support for the event. Based on planning and general design of the event, it is anticipated that a budget of $30,000 will be needed in future years for the City to continue hosting the Moon Festival. However, unlike the current year, in future years, it may be possible to seek sponsorships to write down the net cost of the event. Given that the event has not been held at this time, this item may best be discussed during the budget process this spring. If the City Council wants to continue hosting this event, direction is needed on the amount to include in the City’s budget in future years. City Events and Sponsorships September 5, 2023 Page 5 of 8 Lunar New Year Celebration The Lunar New Year celebrates the arrival of the first full moon in the lunar calendar and typically occurs between late January and early February, annually. Lunar New Year is recognized by billions of people across China and other Asian countries. Typical Lunar New Year celebrations are spent with family and include symbolic food dishes, religious ceremonies to honor ancestors, dancing, fireworks, lanterns, and a celebration of the Chinese zodiac animal for the year. During the City Council’s discussion of the Moon Festival, the idea of hosting a Lunar New Year celebration was presented. A Lunar New Year celebration in Arcadia could be similar in size and scale to that of the Moon Festival planned for September. As noted above, however, the City already has a Lunar New Year luncheon for seniors that is co- hosted with the ACA. If the City Council wishes to add a citywide Lunar New Year event, then direction would be needed on the future of the luncheon as well. If the City Council would like to host a Lunar New Year Celebration in 2024, more direction is needed on what the City Council desires for the event, the level of resources to be used to host the event, and whether it would be in addition to the current Lunar New Year event or if it would replace it. Veterans Recognition Banner Program The City maintains banners on select street poles throughout the community that typically display Arcadia’s logo. The City also will change those banners out to promote special events. For example, Santa Anita Park will use the City’s banner poles to advertise their meets, which occur between September and November and again from December 26 through June each year. Additionally, banners for the Pasadena Pops are hung from street poles on Baldwin Avenue, from May until mid-September. Council Member Cao has requested that the City Council consider a banner recognition program for military veterans around Veteran’s Day each year, which is on November 11. This is an extremely tight timeline for 2023 to create and install the banners. Council Member Cao has indicated a desire to have the name, rank, years of service, and military branch located on each banner. The visual interest would be enhanced by providing the logo of the branch of service for each veteran recognized. It also simplifies the installation, as some communities will put photos on each banner, which requires additional costs and considerably more effort from the families and City staff. It is customary to see street pole banners concentrated in high traffic areas to maximize visibility. In Arcadia, the highest traffic area is along Huntington Drive, most specifically the intersection of Huntington Drive and Baldwin Avenue. In this stretch, it is estimated that there are 145 street poles available for banner use. According to data collected by City Events and Sponsorships September 5, 2023 Page 6 of 8 the Recreation & Community Services Department, there are approximately 100 known military veterans currently residing in Arcadia. It is expected that with an ongoing, high-visibility program, additional veterans would be identified for inclusion in the program. Submissions for the banner recognition program would be open to Arcadia residents each year. Before proceeding with banner creation and installation each year, staff would market the program and verify residency of all interested participants. Should the number of known veterans grow beyond the 145 banner locations initially identified, direction will be needed on where to expand the program, if the banners should be redesigned to accommodate multiple veterans on each pole location, or if the program should be limited to a set number of participants each year. Throughout California, there are numerous communities that offer this type of recognition program. In some cities, donations are encouraged to help offset the costs of banner creation and installation. In other cities, some form of payment is required to participate in the program, with costs ranging from $25 to $200 per banner (higher costs associated with banners displayed year-round). In its initial year, establishing a banner recognition program for 100 Arcadia Veterans is estimated to cost $20,000. This cost includes the creation, installation, and removal of 100 custom, double-sided banners throughout the high-traffic areas of Arcadia. In subsequent years, the annual cost is expected to decrease by more than 60%, assuming the number of new banners created would be significantly less. At this time, banner creation, installation, and removal cannot be completed with existing resources; this work would be completed by a third-party vendor. The City has reached out to a local vendor that has assisted with banners in the past; they have indicated that they can complete the installation by Veteran’s Day if all design information is finalized prior to the first week of October. Given the amount of information that would need to be verified by that date, it is advisable to wait until 2024 to start this program. An alternative option could be to start with a much smaller portion of the overall list of known veterans – say the 30-40 that could be readily identified by the cutoff date. The obvious downside of that is that the veterans that are left out this year may feel slighted, which defeats the inherent goal of the program. Should the City have a Veteran’s Day Banner Program? If so, should the City start in 2023 or 2024? How long should the banners be on display each year? What is the budget for the program and how should it be funded (City funds, collect donations, require some form of payment, or a combination)? Other Considerations With more conversation around creating and supporting community events, the City Council has already received similar requests for assistance from other organizations. At City Events and Sponsorships September 5, 2023 Page 7 of 8 the August 15, 2023, City Council Meeting, two organizations requested support for their events – the American Cancer Society’s Relay for Life and the Arcadia Performing Arts Foundation. With this growing interest, the City Council may want to implement a plan to address such requests in a consistent and holistic manner. For instance, some communities have an annual call for sponsorship applications that is conducted in concert with the annual budgeting process. Other cities set aside a specific budget amount for sponsorships, so the total commitment is planned for in each budget year, while allowing requests year-round that can be approved without impacting the overall budget. Of course, another option is to continue with the current approach, which is to respond to the requests as they are made. Should the City develop a process/policy for community event sponsorship and support? Does the City Council wish to support the Arcadia Performing Arts Foundation and/or Relay for Life event in 2023? ENVIRONMENTAL ANALYSIS The direction being sought is not considered a project under the California Environmental Quality Act (“CEQA”). Any future decision on City Council action related to City event funding and support will return to the City Council with an accompanying environmental analysis. FISCAL IMPACT In 2023, Arcadia will either host or provide in-kind support for over 22 different community events. The City’s cost for supporting community events in 2023 is projected to total $195,000, with sponsorships and in-kind support comprising $61,900, or 32%, of that total. If the City Council directs staff to add more events, programs, or sponsorships, more resources will be needed to facilitate the increased offerings. Staff will provide estimated costs depending on the direction received. If all of the events, programs, and sponsorship options presented in this report are pursued in their entirety, the total costs to support all new initiatives as proposed will be $129,000 broken out as follows: Event Budget Patriotic Festival Sponsorship Law Day Moon Festival Lunar New Year Celebration Veterans Banner Recognition program $45,500 $3,500 $30,000 $30,000 $20,000 Total Potential Costs $129,000 City Events and Sponsorships September 5, 2023 Page 8 of 8 Any of the events, programs, or sponsorships highlighted in this staff report would be fulfilled though the General Fund and added to the Fiscal Year 2023-24 or the FY 2024- 25 Budget, depending upon event and sponsorship timing. There are no known grants or other funding sources possible for these efforts on an ongoing basis. While the City could legally utilize its American Rescue Plan Act funds, these expenditures would not fall directly within the original intent of that funding, which has been the policy of the City Council to date. RECOMMENDATION It is recommended that City Council provide direction regarding City events, programs, and sponsorships; and specifically, the level of resources to be allocated to the Patriotic Festival; Law Day; the Moon Festival; Lunar New Year Celebration; and the Veterans Banner Recognition program. Attachment No. 1: Staff Report, May 2, 2023 – Report, Discussion, and Direction – City Event Sponsorships Attachment No. 2: DAIA Sponsorship Request and 2023 Budget vs. Actuals DATE: May 2, 2023 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Justine Bruno, Deputy City Manager SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING CITY EVENTS INCLUDING A SPONSORSHIP REQUEST FROM THE DOWNTOWN ARCADIA IMPROVEMENT ASSOCIATION FOR THE ANNUAL FOURTH OF JULY CELEBRATION CEQA: Not a Project Recommendation: Provide Direction SUMMARY Over the past few decades, community events have become an increasingly important offering of municipalities. Events can serve to attract visitors and generate tourism that boosts the local economy. Additionally, events provide space for residents to gather, connect, and build community. Local events provide numerous benefits, which is why Arcadia opts to support events both directly and indirectly. Over time, the type and scale of events offered in Arcadia has changed, but the desire to outreach and engage through community events has persisted. Recently, members of the City Council have contemplated the idea of expanding Arcadia’s event offerings. This presentation will allow the City Council to explore this concept further and receive important background information regarding current offerings and resource use for events. An overview of the type of events led by the City and the level of resources used in the production will be covered. Additionally, the potential impacts of adding new events and the feasibility of doing so will be explored. As part of this discussion, a recent funding request from the Downtown Arcadia Improvement Association will be raised for City Council consideration. It is important that both City-led and City-sponsored events be considered holistically, so the City Council can provide direction on their vision for community events going forward. It is recommended that the City Council provide direction regarding City event offerings, including the request for $20,000 in direct funding to support the annual July Fourth event/Patriotic Festival hosted by the Downtown Arcadia Improvement Association. Attachment No. 1 Report, Discussion, and Direction – City Event Sponsorships May 2, 2023 Page 2 of 6 BACKGROUND Many of the City’s public-facing events are primarily led and funded by two departments: the City Manager’s Office and Recreation and Community Services. Other City departments may host public events, but not at a comparable frequency or scale. For City-led events, production costs entail the purchase of supplies and materials, staffing for the event, promotion and marketing, equipment rental, sanitation services, setup, tear down, and security. For discussion purposes, City events can be defined when there is public assembly for leisure, social, or cultural purposes, occurring on a one time or limited basis. Conversely, City programming can be defined as a set of structured activities geared towards accomplishing defined goals, occurring on an ongoing or habitual basis. Based on these definitions, some examples of current City event and program offerings can be delineated as such: City Event City Program - Community Bike Ride - Senior Bingo/Lunches/Dances - Mayor’s Breakfast & State of the City - Coffee with the Mayor - Snow Festival - Leadership Academy - Concerts & Movies in the Park - After-school programs - Trick-or-Treat at the Library - The Movies You Missed - Holiday Tree Lighting - Preservation workshops - Volunteer Appreciation Event - Storytime at the Library - Breakfast with Santa - Museum History Talks - National Night Out - Neighborhood Watch - Community Cleanup Day - Coyote Town Halls - Lunar New Year Luncheon - School Track Meets - Eggstravaganza & Teen Egg Hunt - Kids summer/winter camps The list above provides a snapshot of event offerings that are hosted and funded by the City, with the number of attendees ranging from a few hundred to a few thousand per event. For these events, the City serves as the lead agency and is responsible for all aspects of the event including the location, preparation, staffing, materials, supplies, ticketing, and cleanup. Events Expenses & Cost Recovery City-hosted events have variable expenses, with some costing as little as $4,000 as in the case of the Holiday Tree Lighting, up to $34,000 for the Volunteer Appreciation Event. Most City events do not seek cost recovery; however, for the handful of events that do (Mayor’s Breakfast and State of the City, Eggstravaganza, Breakfast with Santa, Nature Hikes, and Father-Daughter Dance), ticket sales and sponsorships offset between 35% and 78% of costs. What is seldom quantified in the event cost is the staff time invested in facilitating the event. Regardless of the event, there are always 1-5 salaried staff Report, Discussion, and Direction – City Event Sponsorships May 2, 2023 Page 3 of 6 members that help oversee and facilitate the production of the event, with their time unaccounted for in the expense totals. If salaried staff time was included in the event expenses, the event costs would increase by hundreds, if not thousands, of dollars per event. Cost Sharing on Partnered Events Historically, the City has partnered with private or other non-profit entities to bring more event offerings to Arcadia. Examples of these events include the Lunar New Year Luncheon with the Arcadia Chinese Association (“ACA”); the Halloween Haunt with the Downtown Arcadia Improvement Association; Law Day with legal partners and the ACA; and a Moon Festival with the ACA. For these events, the City and the non-profit split costs for hosting the event through in-kind and direct contributions. Outside Event Support Around 2015, the City Council authorized the City Manager to extend in-kind support to any event that advanced the goals of creating or expanding a sense of community, provided there was sufficient budgetary capacity and the support remained within the City Manager’s signature authority (which was $10,000 at that time). Since then, the City has increased its participation in community events hosted and run by outside agencies. Examples of these events include Police, Fire, and Public Works Services Department support for Downtown Arcadia Improvement Association events, like the July Fourth Celebration/Patriotic Festival and the Holiday Fair. Additionally, the City regularly supports events held at the Shops at Santa Anita, the Arboretum, and at Santa Anita Park. For events like the Derby Day 5k Run/Walk and the Festival of Bands, the City Council has specifically granted fee waivers for public safety services. In addition, there are community events the City assists with, but charges full cost recovery. An example of this is the 626 Night Market, where the organizers reimburse the City fully for police, fire, and medical support. New Funding Request – Patriotic Festival On March 9, 2023, DAIA President Erik Wahl, sent a letter to the City Council requesting monetary assistance to support the July 2023 Patriotic Festival. In its letter requesting funding, the DAIA asserted that due to the number of attendees the Patriotic Festival draws, a direct economic benefit for Arcadia, especially Downtown businesses is produced. In particular, $20,000 was requested to expand the time of the firework display, which costs approximately $2,000 per minute of fireworks. In the words of the DAIA, the additionally $20,000 would be apportioned in the following manner: • $10,000 toward the firework display for additional time (adding 3 more minutes) and a fuller experience; • $ 4,000 toward increased equipment rentals (stage, electricity, seating, tables, and accessible restrooms for the public); Report, Discussion, and Direction – City Event Sponsorships May 2, 2023 Page 4 of 6 • $ 3,000 toward increased security and safety measures; and • $ 3,000 toward additional advertising and marketing. The property owners in downtown Arcadia approved the creation of a Community Benefits District, named the Downtown Arcadia Improvement Association, in 2013. The City of Arcadia owns 5 parcels within the downtown area and, as a member of the DAIA, has paid $5,400 in assessments this Fiscal Year, which is about 4.2% of the DAIA’s total Assessment Revenue. Since its inception in 2013, the City has contributed an average of $5,600 each year, or approximately $56,000 thus far. During its formation, the DAIA created bylaws that limit how their tax assessment can be spent; specifically, the bylaws require that assessment revenue can be spent for the following purposes: • 48% for District Identity & Branding; • 27% for Program Management; • 21% for Sidewalk Beautification and Improvement; and • 4% for Contingency. While the DAIA maintains the ability to modify their bylaws and adjust revenue allocations, the 48% earmarked for District Identity & Branding is primarily used to fund Downtown events. With this 48% cap on event spending, a maximum of $62,300 of the 2023 assessment could be allocated to fund Downtown events this year. According to the DAIA, the bylaws are constraining event funding considering the Patriotic Festival, with a budget of $62,000, consumes the entire events budget without accounting for the costs of the Halloween Haunt ($5,000 budget) and the Holiday Fair ($34,000 budget). DISCUSSION The City of Arcadia has long recognized the value of providing events for members of the public to enjoy. Community events help attract visitors to the City and showcase the quality of life in Arcadia. Local events also serve as a gathering place for community members to be entertained, learn more about Arcadia, and build connection. Understanding the continued value in providing events, the following questions for the City Council remain: Provide Direction on Current Event Offerings & Resource Use As a general rule of thumb, if the City were to put on a large-scale “signature event” for something like Lunar New Year or a Moon Festival, a budget of $40,000-$60,000 would be requested. Something could be provided on a much smaller scale at lower funding levels. One thing to note is that, based on current resources, the City would be unable to provide any new events without reducing any of the existing offerings or receiving additional Report, Discussion, and Direction – City Event Sponsorships May 2, 2023 Page 5 of 6 resources – specifically, an events coordinator position would be requested to oversee all community events that happen throughout the year. The fully burdened costs for a Special Event Supervisor that would oversee City events is estimated around $115,000 for salary, benefits, and supplies. Currently, the City directs and funds over 20 different events throughout the year. Funding City events costs about $155,000 annually, with the City recovering nearly 15% of those costs, for a net expenditure of about $132,000 annually. Staffing for City events involves both exempt and non-exempt employees but requires the assistance of 8-9 employees, on average, per event. Beyond City-led events, many departments assist non-profits and outside agencies by providing public safety, traffic control, and equipment rental services. This assistance is applied to larger community events like the Patriotic Festival, Halloween Haunt, Holiday Fair, Derby Day 5k Run/Walk, the 626 Night Market, the Arboretum Light Show, and the Geld Drop/Menorah Lighting. If the City Council would like to add more events to Arcadia’s existing offerings, more guidance is needed regarding the type of events the City should host, the level of funding to be allocated to support events, and whether any of the existing events should be discontinued in the place of new events. Funding Request for Patriotic Festival In addition to contributing to the annual assessment, the City has consistently helped subsidize DAIA events through in-kind services. The events held by the DAIA require Police, Fire, and Public Works Services Departmental assistance. While public safety costs are paid by the DAIA, Public Works Services and City Manager’s Office support is not, which accounts for another $8,000 - $10,000 of in-kind support annually. The Patriotic Festival budget for 2023 is $62,000, which is 47% of the Downtown’s annual assessment of $129,800. With one event comprising nearly half of the district’s total revenue, the DAIA has turned to fundraising and sponsorships to cover the difference. With the City’s $20,000 contribution, the City would be directly funding nearly one-third of the overall event in addition to the in-kind contributions and payments made to the DAIA as members of the District. The City Council should consider the precedential nature of this request. Without any long-term changes to the DAIA’s revenue stream or event spending, the City Council should expect similar requests annually. In addition, directly financially assisting this event may result in requests for direct assistance from other event organizers. In total, Arcadia provides the DAIA nearly $15,000 annually between the assessment revenue and the in-kind contributions for event support. Based on the information provided by the DAIA for the proposed use of the funding, it is recommended that City Council offer a contribution for a lower amount or consider waiving more of the affiliated public safety costs in lieu of a direct contribution. If the City were to participate in this Report, Discussion, and Direction – City Event Sponsorships May 2, 2023 Page 6 of 6 singular event at the requested level, it might be more appropriate for Arcadia to have a larger role in planning and organizing the event. ENVIRONMENTAL ANALYSIS The direction being sought is not considered a project under the California Environmental Quality Act (“CEQA”). Any future decision on City Council action related to City event funding and support will return to the City Council with an accompanying environmental analysis. FISCAL IMPACT If the City Council directs staff to add more events, staff will provide estimated costs depending on the scope and size of the event. Additionally, if the City Council would like to grant $20,000 to the DAIA for the Patriotic Festival, those monies would be fulfilled though the General Fund and added to the Fiscal Year 2022-23 Budget. RECOMMENDATION Based on the information and options presented in the staff report, it is recommended that City Council provide direction regarding City event offerings, including the request for $20,000 in direct funding to support the annual July Fourth event/Patriotic Festival hosted by the Downtown Arcadia Improvement Association. Attachment: DAIA Letter for Funding Request Downtown Arcadia Improvement Association PO Box 661960, Arcadia, CA 91066 August 21, 2023 Mayor Cheng, Mayor Pro Tem Verlato, Council Members Cao, Kwan, and Wang Arcadia City Council, City of Arcadia 240 W. Huntington Dr. Arcadia, CA 91007 Dear Honorable Mayor Cheng, Mayor Pro Tem Verlato, Council Members Cao, Kwan, and Wang: Thank you for generously funding the fireworks and more at the Downtown Arcadia Patriotic Festival on July 1, 2023. Your funding for this event helped us make the event better organized, more entertaining, and more enticing for the residents of Arcadia to come out and get more involved in our community. This is the biggest event in Arcadia and it benefits all of Arcadia, especially the businesses. We would like to continue to grow this partnership between Downtown Arcadia and the City of Arcadia for the Patriotic Festival in 2024 and for many years to come. As this event continues to grow, City funding becomes a much more important component. The business owners of Downtown Arcadia can only fund so much. We have successfully produced the Patriotic Festival and fireworks show for three years (2019, 2022, and 2023) and would like to continue our role as the primary producer, with the City of Arcadia’s financial support. We have realized the extensive hours and manpower that is needed to run this event and have a proven record of producing ever more impressive results. We would prefer to continue this primary role and the City to continue being the official fireworks sponsor. That way we do not duplicate efforts. This sponsorship would include the City logo on all Patriotic Festival marketing pieces (street banners, flyers, social media, etc.). This event had well over 15,000 attendees, plus more bystanders at County Park. With your continued support, in 2024 we plan to increase the fireworks show from 7 minutes to 15 minutes. At an estimated $2,000 per minute, our 2024 request from the City would be $35,000 for an extended 15-minute fireworks show ($28,500 fireworks, $4,500 insurance, $800 First Avenue Middle School maintenance (required post event clean up), $1,200 DJ for the fireworks show soundtrack). The financial benefit to the City as well as the local business community will greatly outweigh this minor expense. The Downtown Arcadia Improvement Association is a proven commodity for the City of Arcadia! The Downtown Arcadia Improvement Association thanks the City of Arcadia for your generosity. Sincerely, Erik Wahl, President Peter Amundson, Patriotic Festival Committee Chair Downtown Arcadia Improvement Association Attachment No. 2 Actual Budget Variance Income Actual less Budget Patriotic Festival Booth Sales 6,204 4,000 2,204 Food and Bev Income 3,278 1,000 2,278 Sponsor Funds 38,550 38,550 - City of Arcadia 17,500 - 17,500 Total Patriotic Festival 65,532 43,550 21,982 Total Income 65,532 43,550 21,982 Expenses Patriotic Festival Funded by City of Arcadia Advertising 611 800 (189) - Beer & Wine 686 500 186 - Decor 104 150 (46) - Entertainment (DJ/Face Painter/ Fireworks)- Balloons 796 1,000 (204) - DJ 1,300 1,000 300 - Face Painter - - - - Fireworks 12,500 15,000 (2,500) 12,500 First Avenue Middle School Maintenance 552 Equip Rental 14,610 14,000 610 - Insurance 4,520 4,000 520 4,510 Labor 1,240 1,250 (10) - Marketing - Giveaways 5,225 2,000 3,225 - Meals for Entertainment & Volunteers 283 200 83 - Miscellaneous 1,367 - 1,367 - Permits 1,023 2,000 (977) - Promo / MJ Banners 6,500 6,500 - - Raffle Items 103 - 103 - Security - 4,000 (4,000) - Supplies 466 600 (134) - Thank You 503 500 3 17,562 Producer Fee split w/ Sidewalk Ops 8,550 8,550 - Commission on Sponsorships 6,000 6,000 - Total Patriotic Festival 66,387 68,050 (1,663) Net Operating Income (855) (24,500) 23,645 Downtown Arcadia Improvement Association 2023 Actuals - CY Page 1 of 1