HomeMy WebLinkAboutItem 12a - Fireworks Sponsorship for 2024 Patriotic Festival
DATE: January 16, 2024
TO: Honorable Mayor and City Council
FROM: Dominic Lazzaretto, City Manager
By: Justine Bruno, Deputy City Manager
SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING CITY
FIREWORKS SPONSORSHIP OF THE PATRIOTIC FESTIVAL IN
DOWNTOWN ARCADIA
CEQA: Not a Project
Recommendation: Provide Direction
SUMMARY
Over the past year, the City Council received a comprehensive overview regarding
Arcadia’s level of involvement and support for community events. This information was
initially presented in response to a sponsorship request from the Downtown Arcadia
Improvement Association (“DAIA”) to support the 2023 Patriotic Festival in Downtown
Arcadia as well as the City Council’s desire to expand local event offerings. Twice before,
the City Council discussed the level of support Arcadia could offer for the Patriotic Festival
in the future, without reaching a conclusion. This item is being brought forward to obtain
City Council direction on how Arcadia can best support the 2024 Patriotic Festival.
In response to the DAIA’s request for a $35,000 firework sponsorship for the 2024
Patriotic Festival, it is recommended that the City Council determine the level of support
to be provided for the event this year. From a resource planning and operations
standpoint, both the DAIA and the City would benefit from a clear, consistent
understanding of the City’s level of involvement with this event going forward. Direction
on the amount of financial support, in-kind services, or event assistance will allow for the
advanced planning needed to meet the budgetary and staffing demands of this event. It
is recommended that the City Council provide direction regarding Arcadia’s sponsorship
of the Patriotic Festival in Downtown Arcadia.
BACKGROUND
The Patriotic Festival with an accompanying fireworks show is hosted by the Downtown
Arcadia Improvement Association (“DAIA”) and has been held in Downtown Arcadia for
three years (2019, 2022, and 2023). This July Fourth celebration provides an opportunity
Firework Sponsorship for 2024 Patriotic Festival
January 16, 2024
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for community members and visitors to celebrate the holiday locally with food vendors,
craft retailers, entertainment, live music, and a firework show. Due to the increasing cost
of hosting large scale events, the DAIA has requested the City fully sponsor the fireworks
show at the Patriotic Festival in Downtown Arcadia. The sponsorship request was made
for the first time in 2023 for $20,000 and has increased to $35,800 in 2024.
The sponsorship request from the DAIA was first presented to the City Council during
Public Comment of their Goal Setting Meeting, held on February 4, 2023. A letter outlining
the same request was sent to the City Council on March 9, 2023, by DAIA President Erik
Wahl (see Attachment No. 1). The DAIA requested $20,000 in funding to increase the
seven-minute fireworks show to 10 minutes and defray affiliated costs.
The City Council approved Resolution No. 7497 at the May 16, 2023, Regular Meeting,
authorizing a supplemental budget appropriation of $20,000 to support the fireworks show
for the 2023 Patriotic Festival, including waiving any costs for Police, Fire, and Public
Works Services (see Attachment No. 2). This is the first known instance of the City
providing a direct cash contribution to a community event in recent times that was
unrelated to paying for attendance at an event. Due to the timing of the approval,
additional fireworks could not be secured in time for the event on July 1, 2023. 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 were also waived and totaled an estimated
$10,500, bringing the total contribution by the City to $28,062.
At the May 2, 2023, City Council Meeting, the City Council expressed its desire to support
the 2024 Patriotic Festival, with a motion stating the City would take over planning and
management of the fireworks show. In late August 2023, the DAIA sent the City Council
a letter requesting a $35,000 sponsorship for the 2024 event, which would double the
length of the fireworks show to 15 minutes. In the letter, the Downtown Association
expressed their interest in remaining the “primary producer” of the show, but still sought
the City’s financial support (see Attachment No. 3).
At the September 5, 2023, City Council Meeting, a series of community events in Arcadia
was presented for City Council direction. One of the decision points was the City’s
sponsorship of the 2024 Patriotic Festival. At the conclusion of the presentation, the City
Council asked to hear from the DAIA Board of Directors about their increased funding
request; however, only Executive Director Donna Choi was available that evening. In
addition, the City Council wished to know the exact cost of the longer show. Executive
Director Choi indicated that they were awaiting a formal bid from the vendor, which would
be available later. Unable to have the dialogue they desired, the City Council opted to
table the discussion until more information was available on the pricing for various time
increments for the 2024 fireworks show.
Firework Sponsorship for 2024 Patriotic Festival
January 16, 2024
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DISCUSSION
Based on the City Council’s motion, the feasibility of assuming full responsibility for the
fireworks show during the event was reviewed. It is not recommended to parse out that
part of the event and change the responsible agency from the DAIA to the City. Splitting
off just a portion of the event creates liability and staffing questions for the City and could
create a confusion of responsibilities. While not recommended, a more appropriate
alternative would be for the City to become the lead and produce the entire event to
control costs; however, that transition could not occur until 2025 at the earliest. The
recommended option is for the City to continue with financial sponsorship of the event
and avoid the added liability, staffing, and costs of producing the entire event. This aligns
with the request from the DAIA.
Since a conclusion was not reached at the September 5 City Council Meeting regarding
City sponsorship of the 2024 Patriotic Festival, the DAIA proceeded with its fireworks
purchase to ensure sufficient supplies for next July. For the 2024 Patriotic Festival, the
DAIA has purchased enough fireworks to host a 12-minute show for a total of $16,000.
This represents a 5-minute/$4,500 increase from the 7-minute/$12,500 firework show in
2023. Additionally, there are insurance requirements (about $4,500) and fees for the use
of First Avenue Middle School ($800) that will bring the total cost of fireworks to about
$21,500.
With the longer fireworks show secured, the DAIA has asked the City to expand its
sponsorship of the event beyond the fireworks show, to include the costs of Police, Fire,
and Public Works Services, and the event DJ. This waiver of staff support for the event
adds another $13,300 in labor and equipment costs and would bring the total sponsorship
request to $35,800. For 2024, the Patriotic Festival has a budget of $80,600 with $35,800,
or 44% of the total budget being requested from the City. The DAIA funds the Patriotic
Festival through sponsorships, booth sales, and food and beverage income. Almost no
funding comes directly from their reserves. Assuming the City Council wishes to continue
some kind of financial support of the event, it could consider the following options for
2024:
Option A:
City Fee Waiver Amount
Waiver of PD, Fire, PWS Costs $13,300
Total Potential Costs $13,300
Option B:
Firework Sponsorship Amount
Fireworks
Event Insurance
First Avenue Middle School Rental
$16,000
$4,500
$800
Total Potential Costs $21,500
Firework Sponsorship for 2024 Patriotic Festival
January 16, 2024
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Option C:
Firework Sponsorship + City Fee Waiver Amount
Fireworks
Event Insurance
First Avenue Middle School Rental
Waiver of PD, Fire, PWS Costs
$16,000
$4,500
$800
$13,300
Total Potential Costs $34,600
Option D:
Event Sponsorship + City Fee Waiver Amount
Fireworks
Event Insurance
First Avenue Middle School Rental
Waiver of PD, Fire, PWS Costs
DJ
$16,000
$4,500
$800
$13,300
$1,200
Total Potential Costs $35,800
Option E:
Flat Sponsorship Amount
Sponsorship amount at any level
desired. This could be in addition to
or in lieu of City Fee Waivers.
Determined At
Council’s Discretion
Total Potential Costs Determined At
Council’s Discretion
Beyond the options listed above, the City Council may also consider a different
combination of sponsorship funding, or even eliminating sponsorship altogether.
On a related note, at the September 5 Meeting, the City Council expressed an interest in
exploring a Donation and Sponsorship Policy to address future requests for financial and
in-kind support. The discussions on this draft policy are scheduled to begin with the City
Council in early February 2024, with the intent to finalize completion in time for budget
development. It is recommended that City Council wait until a conclusion is reached on
this potential policy before making any multi-year commitments for event sponsorship. As
such, it is recommended that any sponsorship decisions at this time be limited to the 2024
event.
Based on the available options and past participation, it is recommended that the City
Council continue to waive City fees and costs for the 2024 Patriotic Festival at a value of
$13,300. If a direct financial contribution is desired in addition to that amount, it would be
recommended that a flat sponsorship figure be selected rather than tying it to specific
activities/costs within the event. This would be the simplest way to control City costs going
forward.
Firework Sponsorship for 2024 Patriotic Festival
January 16, 2024
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ENVIRONMENTAL ANALYSIS
Consideration of sponsorship is not considered a project under the California
Environmental Quality Act (“CEQA”) as it can been seen with certainty to have no possible
effect on the environment; thus, this matter is exempt from CEQA.
FISCAL IMPACT
Depending upon the option selected, the associated fiscal impact will result in a
corresponding reduction in the General Fund Reserve. While the City could legally utilize
its American Rescue Plan Act (“ARPA”) 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.
Should the City Council wish to provide a waiver of costs for City services, the costs will
be included in the proposed operating budget for the next Fiscal Year. If the City Council
wishes to provide direct financial assistance for the 2024 Patriotic Festival, a resolution
for a budget adjustment in the current Fiscal Year will be brought back for approval, since
those funds would need to be provided prior to the event.
RECOMMENDATION
It is recommended that City Council determine this action does not constitute a project
under CEQA; and provide direction regarding City sponsorship of the 2024 Patriotic
Festival celebration in Downtown Arcadia.
Attachment No. 1: DAIA Letter for Funding Request – March 9, 2023
Attachment No. 2: Resolution No. 7497 – Supplemental Budget Appropriation – 2023
Patriotic Festival Fireworks
Attachment No. 3: DAIA Sponsorship Request – August 21, 2023
Attachment No. 4: Staff Report, May 2, 2023 – Report, Discussion, and Direction – City
Event Sponsorships
Attachment No. 5: Staff Report, September 5, 2023 – City Events and Sponsorships
Attachment No. 1
RESOLUTION NO.7497
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AMENDING THE FISCAL YEAR 2022-23 OPERATING
BUDGET AND 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
WHEREAS, the City of Arcadia values opportunities for community members to
gather for entertainment, leisure, and celebratory purposes; and
WHEREAS, the City has a long history of hosting special events and providing
support to non-profit entities to offer more events for residents to partake in; and
WHEREAS, the Downtown Arcadia Improvement Association is a non-profit
organization that aims to support and promote downtown businesses by attracting
visitors and commerce to downtown Arcadia; and
WHEREAS, the Downtown Arcadia Improvement Association provides several
free, family -friendly events for the community to enjoy; and
WHEREAS, the Patriotic Festival is a long-standing event in Arcadia that is held
on July Fourth each year to celebrate America's Independence with food, entertainment,
a parade, and firework display; and
WHEREAS, the inflationary impacts and an increase in goods and serves have
increased the cost for community events significantly and beyond what the Downtown
Arcadia Improvement Association can fund; and
WHEREAS, the City Council is authorized to grant monies for purposes that
provide community benefit and meet a public purpose; and
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Attachment No. 2
WHEREAS, the Downtown Arcadia Improvement Association has requested the
City provide a monetary sponsorship of the 2023 Patriotic Festival to fund the costs of the
firework display at the event; and
WHEREAS, this sponsorship request was brought to the City Council in Spring
2023 and was not anticipated at the time of budget development and cannot be covered
in the current Fiscal Year 2022-23 Operating Budget; and
WHEREAS, a sponsorship in the amount of $20,000 is necessary to enable a ten-
minute firework show at the Patriotic Festival occurring on July 4, 2023; and
WHEREAS, the City Manager has certified that there are sufficient reserves
available in the General Fund Reserve for appropriation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The sum of Twenty Thousand Dollars ($20,000) is hereby
appropriated in the City Manager's Office budget, offset with a reduction in the General
Fund Reserve by $20,000, and waiving any Police Department and Fire Department
service costs for the 2023 Patriotic Festival.
SECTION 2. The City Manager is authorized to sign any agreements or take any
other actions necessary to effectuate this resolution.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
SIGNATURES ON THE NEXT PAGE]
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Passed, approved and adopted this 16th day of May, 2023.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Michael J. Maurer
City Attorney
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Mayor of the City rcadia
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS:
CITY OF ARCADIA )
I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Resolution No. 7497 was passed and adopted by the City Council of the City of
Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said
Council held on the 16th day of May, 2023 and that said Resolution was adopted by the
following vote, to wit:
AYES: Cao, Wang, Verlato, and Cheng
NOES: None
ABSTAIN: Kwan
ABSENT: None
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aes r t ,
ity Clerk oft City of Arcadia
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. 3
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. 4
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
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• $ 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
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May 2, 2023
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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
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May 2, 2023
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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
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
Attachment No. 5
City Events and Sponsorships
September 5, 2023
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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.
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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?
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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.
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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
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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
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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
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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