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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: 2/20/2018 ITEM NO: 08 DATE: FEBRUARY 14, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: 2018 SUMMER CONCERT SERIES 1. REVIEW THE BUSINESS PLAN FOR FIVE SPONSOR BASED CONCERTS, 2. AUTHORIZE TOWN STAFF TO MOVE FORWARD WITH PROGRAMMING THE MUSIC IN THE PARK SUMMER CONCERT SERIES, AND 3. ADOPT A RESOLUTION TO ENABLE SPONSORSHIPS RECOMMENDATION: Staff recommends that the Town Council take the following actions related to a 2018 summer concert series: A. Review the business plan for five sponsor based concerts, B. Authorize Town staff to move forward with programming the Music in the Park summer concert series, and C. Adopt a resolution (Attachment 1) to enable sponsorships. BACKGROUND: On February 6, 2018, Town Council discussed the staff report outlining the results of the Request for Proposal (RFP) for the production and management of the 2018 Music in the Park (MIP) Summer Concert series. No responses were received at the conclusion of the RFP deadline. The Town Council discussed options to proceed with an internally managed summer concert series, and directed staff to create a business plan centered on a sponsorship financing model for the production of five concerts. PAGE 2 OF 4 SUBJECT: 2018 SUMMER CONCERT SERIES DATE: FEBRUARY 14, 2018 DISCUSSION: Over the years, MIP has been managed by multiple parties including the Town’s Arts and Culture Commission, Los Gatos Music and Arts (LGM&A), and Los Gatos Music in the Park (LGMIP). In the past several years there have been several changes in the annual production of MIP. Throughout the life of the concert series, staff has been involved to one extent or another in the oversight of program. As such, staff has familiarity with the multiple components necessary for the successful production of the summer concert series. Outlined below are a suggested music program, refined cost estimate associated with that program, and a sponsorship outreach plan. Suggested 2018 Music in the Park Concert Series The business plan that staff has drafted includes a five concert series that integrates well with the style and nature of other planned summer events. In addition, based on band availability , staff will seek to provide a mix of musical genres to offer diversity over the course of the concert series. Below is a list of planned spring and summer events, with the proposed five Music in the Park concerts listed in italics: • Farmers’ Market, Sundays on Montebello Way/Broadway Ave. until 1 p.m. • Spring Into Green event, Sunday April 22, at Plaza Park and on Main Street between N. Santa Cruz Ave. and University Ave., in conjunction with Farmers’ Market • Jazz on the Plazz, Wednesday evenings in Plaza Park, June through August • Symphony in the Park, Wednesday, July 4, at Oak Meadow Park. (The Town’s annual 4 th of July San Jose Wind Symphony Concert) • Music in the Park, Sunday, July 8, Civic Center Lawn, 5 – 7 p.m. • Music in the Park, Sunday, July 15, Civic Center Lawn, 5 – 7 p.m. • Music in the Park, Sunday, July 22, Civic Center Lawn, 5 – 7 p.m. • Music in the Park, Sunday, July 29, Civic Center Lawn, 5 – 7 p.m. • Music in the Park, Sunday, August 5, Civic Center Lawn, 5 – 7 p.m. • Fiesta de Artes, (permit pending), Saturday and Sunday, August 11-12, Civic Center Lawn Concert Series Cost Estimate As the table below illustrates, a five-concert series program is estimated to cost approximately $45,000 to produce. Estimated expenses will become more refined as actual vendors and contracts are negotiated. The estimates provided below are based on actual historical expenses and current market pricing for event elements. The table includes a line item for temporary event staff to be hired and trained to work onsite at each concert from 3 p.m. to 9 p.m. Staff believes it is most beneficial and necessary to have the same group of event attendants working each concert to streamline the training and delegation of duties. PAGE 3 OF 4 SUBJECT: 2018 SUMMER CONCERT SERIES DATE: FEBRUARY 14, 2018 DISCUSSION (Cont’d): Additionally, staff intends to have at least one full time Town staff member onsite for every concert from set up through complete breakdown. This cost as well as the cost for the staff time to plan the concert series have not been included in the budget table. Staff estimates that it will take approximately 150 staff hours to coordinate and manage the concert series. Category Item Estimated Expense Production Bands, sound engineer, portable toilets, and misc. supplies $31,000 Marketing Various market items: design & production $8,000 Temp Event Staff Event Attendants $6,000 Total $45,000 Available Town Subsidy $6,000 Targeted Sponsorship $39,000 Sponsorship Outreach Plan As the table above illustrates, a sponsor produced program would require approximately $39,000 to fully fund. For the production of the 2017 concert series, the program received support from 30 community sponsors. The 2017 level of sponsorship support is consistent with staff’s understanding of prior year sponsorship engagement. Based on past promotional and other materials, staff has a good understanding of the businesses in Town with a tradition of supporting MIP. Staff believes that direct outreach to sponsors who have shown a tradition of support, coupled with a package of sponsorship marketing opportunities, should yield similar results from prior years. Sponsors would receive promotional consideration on the aforementioned advertising materials, concert acknowledgements, and a newly created Town MIP Facebook page. Similar to prior years, sponsors will also be offered opportunities for tent and promotional placement the day of the event. In addition to the traditional sponsorship opportunities, staff intends to explore a single sponsor model for each concert week. Potential sponsors may find this model more advantageous as it limits sponsor brand dilution. Sponsors will be offered the opportunity to have promotional materials for that concert week reflect their branding exclusively. If this model proves feasible, it will also make staff time associated with this element of the outreach more efficient. PAGE 4 OF 4 SUBJECT: 2018 SUMMER CONCERT SERIES DATE: FEBRUARY 14, 2018 DISCUSSION (Cont’d): In accordance with the Town Council Policy regarding Solicitations and Donations, the Town Council must adopt a resolution to enable staff to pursue sponsorships for the concert series (Attachment 1). 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. CONCLUSION: Staff seeks Council direction on whether they would like staff to proceed with the aforementioned business plan to produce and manage all aspects of a weekly Music in the Park Summer Concert Series. 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 extent of MIP sponsor participation. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachment: 1. Draft resolution to enable sponsorships for the summer concert series