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Staff Report PREPARED BY: Arn Andrews Assistant Town Manger Reviewed by: Town Manager, Town Attorney, Economic Vitality Manager, Chief of Police, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 12/03/2019 ITEM NO: 17 DATE: November 25, 2019 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Provide Direction on the Elements of the Music in the Park Request for Proposals RECOMMENDATION: Provide direction on the elements of the Music in the Park (MIP) Request for Proposals (RFP). 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 by multiple parties including the Town’s Arts and Culture Commission, Los Gatos Music and Arts (2009-2015), Los Gatos Music in the Park (2016 and2017), and most recently Town staff (2018 and2019). During December 2017, Town staff issued an RFP for the production and management of the 2018 Music in the Park Summer Concert series when the prior entity opted to no longer produce the series. At the conclusion of the RFP deadline, no proposals were received. Given that no external parties stepped forward to manage MIP, the Town Council directed staff to produce the 2018 summer concert series. At the conclusion of the 2018 MIP season, Council directed staff to produce the 2019 MIP season with the understanding that the Town would seek outside production of the series going forward. This agenda item allows the Town Council to listen to public testimony and provide direction on elements of the concert series for inclusion in the RFP. Staff believes potential respondents would be more inclined to submit a proposal to produce MIP if the Town’s potential sponsor PAGE 2 OF 5 SUBJECT: Provide Direction on the Elements of the Music in the Park Request for Proposals DATE: November 25, 2019 BACKGROUND (continued): commitment and other in-kind considerations are clearly spelled out in the RFP. This approach would allow potential respondents to fully understand the economics of producing the MIP series and minimize the necessity of a successful respondent returning to Council to seek additional concessions. DISCUSSION: To provide Council with additional context for discussing the production of the MIP series, following are the net financial results for the staff produced series. As the tables below illustrate, production of the series resulted in a net loss both years. In addition, it should be noted that the Town was a $5,000 ”premier” sponsor both years which is represented in the sponsorship totals. 2018 Category Item Expense Production Bands, sound engineer, portable toilets, and insurance $27,458 Marketing Marketing items including various banners and advertisements $7,818 Miscellaneous Pathway roping, giveaways, perimeter tape, etc. $1,094 Paid Town Event Staff Salary and overtime (does not include in-kind staffing) $2,569 Total Expenses 2018 $38,939 Total Sponsorships 2018 $36,000 Net Loss ($2,939) PAGE 3 OF 5 SUBJECT: Provide Direction on the Elements of the Music in the Park Request for Proposals DATE: November 25, 2019 DISCUSSION (continued): 2019 Category Item Expense Production Bands, sound engineer, portable toilets, and insurance $28,106 Marketing Marketing items including various banners and advertisements $6,134 Miscellaneous Pathway roping, giveaways, perimeter tape, etc. $606 Paid Town Event Staff Salary and overtime (does not include in-kind staffing) $3,608 Total Expenses 2019 $38,454 Total Sponsorships 2019 $22,000 Net Loss ($16,454) In addition to the production and sponsorship costs the past two years, the Town provided the following in-kind support to the production of MIP: • Use of Council Lobby as a band staging area (“green room”) • Use of Town stage, including setup and tear down • Use of electricity to power the stage and sound systems • Use of parking spaces to accommodate restrooms, sponsors, and band and sound technicians • Use of Town staff for affixing the concert sign behind the stage • Use of Town salaried staff to volunteer at all concerts, assisting with set up, the attendee’s questions, and general oversight Historically, the Council has provided most of these in-kind resources even when the Town did not produce the concert. Staff is structuring the RFP in a fashion that would help respondents identify any other costs associated with producing the series. As with Jazz on the Plazz, MIP would require a Special Event Permit. The Permit would be the vehicle to identify the specific requirements to ensure the public’s safety, address use of Town facilities, and address other issues. It is important to note that after the Gilroy Garlic Festival shooting, the Town routinely requires two Officers at PAGE 4 OF 5 SUBJECT: Provide Direction on the Elements of the Music in the Park Request for Proposals DATE: November 25, 2019 DISCUSSION (continued): each Special Event in Los Gatos. Based on the Town’s current fee schedule, following are the estimated costs for an 8-concert series that will be represented in the RFP. MIP Estimated Town Fees Series Units Cost Per Unit Total Special Event Permit Application Fee (For-Profit Rate, Repeat Event) 1 $680.00 $680.00 Alternatively, Special Event Permit Application Fee (Non- Profit Rate Repeat Event) 1 $170.00 $170.00 Parks Hourly Fee 80 $55.00 $4,400.00 Refundable Parks Use Deposit 1 $500.00 $500.00 Temporary Sign Fee 1 $99.00 $99.00 Required Security (LGMS Police Officers) 2 @ $160/hour 4 hours per concert $1,280.00 $10,240.00 No Parking Signs 240 $0.46 $110.40 Total Estimate for Profit $16,029.40 Total Estimate for Non-Profit $15,519.40 Notes Parks hourly use fee is based on eight weeks at 10 hours each, assuming park use from 10 a.m. to 8 p.m. Included the repeat special event application rate since this is not a new event. Included for profit and non-profit application rates since the concert entity is not yet known. Estimated 30 no parking signs needed for each week. CONCLUSION: Staff is seeking direction on the flowing elements for inclusion in the MIP RFP: • Council’s desired level of monetary sponsorship commitment, • Council’s desired level of in-kind commitment, and • Any other Council considerations COORDINATION: This staff report was coordinated with the Town Manager, Town Attorney, Chief of Police, and Director of Finance. PAGE 5 OF 5 SUBJECT: Provide Direction on the Elements of the Music in the Park Request for Proposals DATE: November 25, 2019 FISCAL IMPACT: The Council’s level of desired commitment would be programmed into the FY 2020/21 Operating Budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.