Loading...
Staff Report PREPARED BY: MONICA RENN Economic Vitality Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS TOWN COUNCIL REPORT MEETING DATE: 9/4/2018 ITEM NO: 10 DATE: AUGUST 25, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: REVIEW THE 2018 MIP SUMMER CONCERT SERIES AND DECIDE EITHER TO: A. ISSUE A REQUEST FOR PROPOSAL (RFP) FOR OUTSIDE PRODUCTION, PROMOTION, AND MANAGEMENT OF THE 2019 MIP SUMMER CONCERT SERIES, OR B. AUTHORIZE TOWN STAFF TO MOVE FORWARD WITH PROGRAMMING THE 2019 MIP SUMMER CONCERT SERIES, ADOPT A RESOLUTION (ATTACHMENT 1) TO ENABLE SPONSORSHIPS, AND ISSUE AN RFP FOR OUTSIDE PRODUCTION OF THE 2020 MIP SEASON AT THE END OF THE 2019 SEASON. RECOMMENDATION: Staff recommends that the Town Council review the 2018 MIP summer concert series and decide either to: A. Issue a Request For Proposal (RFP) for outside production, promotion, and management of the 2019 MIP summer concert series, or B. Authorize Town staff to move forward with programming the 2019 MIP summer concert series, adopt a resolution (Attachment 1) to enable sponsorships, and issue an RFP for outside production of the 2020 MIP season at the end of the 2019 season. BACKGROUND: Since 1988, Music in the Park (MIP) has been a free public summer concert series held on Sunday afternoons on the Los Gatos Civic Center lawn. Over the years, MIP has been managed BACKGROUND (Cont’d): PAGE 2 OF 6 SUBJECT: DECIDE NEXT STEPS FOR THE 2019 MUSIC IN THE PARK (MIP) SUMMER CONCERT SERIES August 22, 2018 by multiple parties including the Town’s Arts and Culture Commission, Los Gatos Music and Arts (LGM&A), Los Gatos Music in the Park (LGMIP), and most recently Town staff. In the past several years, there have been several changes in the annual production of MIP. Following is the recent chronology of MIP: • In 2015, LGM&A notified the Town that they would no t be seeking to enter into a new agreement to manage and administer MIP. • December 2015, the Town Council reviewed and discussed options regarding MIP and directed staff to issue a Request for Proposal (RFP) for the production, management and coordination of MIP. • January 2016, the Town Council reviewed the two proposals that were submitted and selected Los Gatos Music in the Park (LGMIP) to produce, manage, and promote MIP with a contract valid through September 30, 2017. • December 2017, the Town Council authorized the Town Manager to enter into another contract with LGMIP. • December 2017, the Town received a letter from LGMIP stating that they would not be continuing management of the MIP Summer Concert Series. • December 2017, Town staff issued a RFP for the production and management of the 2018 Music in the Park Summer Concert series. • January 2018, at the conclusion of the RFP deadline, no proposals were received. • February 2018, given that no external parties stepped forward to manage MIP, Council directed staff to produce the 2018 summer concert series utilizing a sponsorship based model. DISCUSSION: To provide sufficient time for either staff or a third party to effectively produce and promote the 2019 MIP summer concert series, staff seeks direction from Council on whether to replicate the 2018 staff sponsor based MIP model or pursue third party programming through the issuance of an RFP. 2018 Staff MIP Production The 2018 MIP summer concert series was programmed at five concerts, with the first concert commencing after the Town’s Symphony in the Park on the Fourth of July and the final concert concluding prior to the Kiwanis’s Fiesta de Artes. The 2018 series was designed to provide a fun mix of musical genres and incorporate a family friendly atmosphere. Each concert included some form of child friendly activity hosted either by the Town, or through existing partnerships such as NUMU or our concert sponsors like the Bay Area Acting Studio. PAGE 3 OF 6 SUBJECT: DECIDE NEXT STEPS FOR THE 2019 MUSIC IN THE PARK (MIP) SUMMER CONCERT SERIES August 22, 2018 DISCUSSION (Cont’d): In addition, this season included partnering with the Chamber of Commerce for the hosting of a beer and wine garden. Staff designed a sponsorship campaign predicated on higher sponsorship financial commitments and fewer sponsors overall. The sponsor packages were built to provide sponsors with a high degree of brand visibility with little brand dilution or crowding. Targeting a smaller universe of sponsors also helped staff mitigate the effects of a shortened fundraising calendar and facilitated more efficient day of concert logistics. The Town offered three sponsorship levels ($1,000, $2,500, and $5,000) which provided varying degrees of market visibility for sponsors. The packages sought to provide sponsors with a variety of brand placement and company recognition opportunities, along with VIP treatment at the concerts. In addition, staff created a unique offering for early Premier sponsors to have a single placement logo on street pole banners throughout the Town. The following table provides the breakdown of sponsorships for 2018: Sponsorship Level Sponsors Revenue Premier Series (5) Bay Area Acting Studio, Stevens Creek BMW, Arthur Murray, Good Samaritan Hospital, Town of Los Gatos $25,000 Single Concert (4) Alarm Company, Classic Car Wash, JCC Los Gatos, SVCE $10,000 Partial Concert (1) Hillbrook School $1,000 Total Sponsorships $36,000 In addition to the revenues illustrated above, it should be noted that additional in-kind resources were donated to the series including; weekly meals for the bands and sound engineers provided by Purple Onion and free advertising by Los Gatos Living magazine. DISCUSSION (Cont’d): PAGE 4 OF 6 SUBJECT: DECIDE NEXT STEPS FOR THE 2019 MUSIC IN THE PARK (MIP) SUMMER CONCERT SERIES August 22, 2018 Below are the expenses for the 2018 series: Category Item Expense Production Bands, sound engineer, portable toilets, and insurance $27,458.50 Marketing Marketing items including various banners and advertisements $7,818.17 Miscellaneous Pathway roping, giveaways, perimeter tape, etc. $1,094.66 Paid Town Event Staff Event Attendants $2,569.13 Total Expenses $38,940.46 Total Sponsorships $36,000.00 Net Loss ($2,940.46) Town employees who are non-exempt were paid for their services associated with MIP, including set up, event monitoring, and break down. In addition to the staff expenses illustrated above, significant volunteer hours were provided by Town management. To contain costs and ensure safe and successful weekly concerts, Town management volunteered approximately 155 hours throughout the series in addition to 24 non-staff volunteer hours. Additionally, existing staff absorbed the following tasks into existing workloads: the initial stage set-up, street pole banner installation, sponsorship outreach, marketing development, band and sound booking and contracting, and creating and maintaining a social media presence (approximately 250 hours). 2019 MIP Request for Proposal Model Similar to 2015 and 2017, staff would issue a Request for Proposal for an individual or individuals to produce and manage all aspects of a weekly Music in the Park Summer Concert Series patterned after the 2018 series. The scope of services would include that the organizer would be required to keep the series a local, family-friendly event primarily focused on attracting Los Gatos residents and close neighbors, and the branding created for the series. In addition, the vendor will be expected to: • Plan, organize, produce, manage, and fund the Music in the Park summer concert series to provide a positive, high quality, social experience through music for families and community members. DISCUSSION (Cont’d): PAGE 5 OF 6 SUBJECT: DECIDE NEXT STEPS FOR THE 2019 MUSIC IN THE PARK (MIP) SUMMER CONCERT SERIES August 22, 2018 • Audition, book, contract with, and pay the performers. • Provide a professional sound system and sound engineer on site for the duration of the concert. • Provide an adequate number of staff and volunteers to run the concerts and clean after the concerts. • Maintain a clean, safe, and attractive environment for the concerts. • Oversee the performers. 2019 MIP Sponsor Based Staff Model Similar to last year, staff would develop a business plan for a concert series which integrates well with the style and nature of other planned summer events. Based on band availability, staff will seek to provide a mix of musical genres to offer diversity over the course of the concert series. Each concert will have a family friendly element and staff will work to broaden participation of our local musical talent, non-profits, and civic organizations. The 2019 MIP concert series would continue to be a sponsor based business model. Town staff gained significant experience soliciting donations for 2018 and would work to establish new partnerships and maintain existing ones for 2019. Staff believes that direct outreach to sponsors who have shown a tradition of support, cou pled with creative packages of sponsorship marketing opportunities, should yield similar results from prior years. Town Council Solicitation and Donation Policy 2-17 (Attachment 2) requires prior Council approval as stated below: “Targeted solicitation is defined as the direct petition or contact of specific individuals, companies, foundations or other entities initiated by the Town Council and other elected officials, Council advisory bodies, and Town employees herein called “Town Officials” for the purpose of receiving goods, services, or other contributions for the Town. Targeted solicitation excludes the direct petition for government, private, or non-profit grants for Council-approved programs, projects, and services. Unless prior approval has been given by Council, Town Officials shall not engage in targeted solicitation activities on behalf of the Town.” Per the above, the Town Council must adopt a resolution to enable staff to pursue sponsorships for the concert series (Attachment 1) should this alternative be adopted. Similar to last year, it should be noted, that any difference between the actual production cost and actual sponsorship donations received will be an obligation of the Town and will be depicted in the Town Manager’s Office budget. PAGE 6 OF 6 SUBJECT: DECIDE NEXT STEPS FOR THE 2019 MUSIC IN THE PARK (MIP) SUMMER CONCERT SERIES August 22, 2018 CONCLUSION: Staff seeks Council direction on whether they would like staff to prepare a business plan to produce and manage all aspects of the 2019 Music in the Park Summer Concert Series or alternatively, proceed with issuing a Request for Proposal for the outside production of the series. In addition, Council should consider if the Town will participate as a sponsor (and at what level) in 2019 regardless of the option chosen. COORDINATION: This report was coordinated with the Town Manager’s and Town Attorney’s Offices. FISCAL IMPACT: Additional financial impacts may result depending on the option selected by the Town Council. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required . Attachment: 1. Resolution to solicit donations 2. Solicitation and Donation Policy