TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Mark Leyman, Director of Parks and Recreation
Linda Robb, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Ten-Year Agreement with Manhattan Beach Hometown Fair Association to Conduct the Manhattan Beach Hometown Fair (Parks and Recreation Director Leyman).
ADOPT RESOLUTION NO. 23-0101
Body
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RECOMMENDATION:
Staff recommends that the City Council approve the agreement between the City of Manhattan Beach and the Manhattan Beach Hometown Fair Association.
FISCAL IMPLICATIONS:
The estimated cost to the City for the 2023 event with the currently approved fee waiver is $85,539. The current fee waiver is for 100% of City services and fees, does not include third party expenses, and is valid through 2025. The agreement does not change the currently approved fee waiver.
BACKGROUND:
The Manhattan Beach Hometown Fair is a “Legacy” event that has been held for the past 40 years. The event is managed by a twenty-person volunteer board of directors. The event includes food, arts and crafts, free entertainment at two stages, and games for kids of all ages.
Each year, the Manhattan Beach Hometown Fair submits a special event request. In addition to the special event request, the City of Manhattan Beach and the Hometown Fair have entered into an agreement describing the event, and outlining the duties and responsibilities of each party (Attachment).
On April 2, 2013, the City Council approved a fee waiver for the Manhattan Beach Hometown Fair. The fee waiver was 75% of total City costs. In 2017, City Council approved a 100% fee waiver for the event. Legacy Event fee waivers have been approved through 2025.
The current ten-year agreement expires on September 3, 2023. City staff and the Home Town Fair (HTF) Board of Directors have prepared a new ten-year agreement.
DISCUSSION:
The proposed Agreement is structured in a similar manner as previous agreements and sets forth the City’s and Hometown Fair Board’s duties, as well as the insurance and indemnification requirements. The proposed Agreement takes into account the current City Council approved 100% fee waiver for City fees and services. The proposed Agreement would remain in place for ten years from the date of execution, unless either party terminates the Agreement upon 90-days written notice to the other party. The proposed Agreement would still require the Board to submit an annual special event request which will be reviewed by the Special Event Committee.
Staff and the HTF Board representatives have met three times to discuss the various terms, reviewed by the City’s legal team. Significant changes include:
1. Addition of a limit of $10,000 on third party public safety costs. Under the Special Events policy, third-party costs for services using the City’s vendors are the responsibility of the event organizer. Historically, the largest variable is for public safety services, which include private security and traffic barriers. These safety requirements are determined by the Police Department based on a variety of factors including current events and possible threats. The amount of $10,000 is lower than the CSC Security costs for the 2022 event, which were approximately $15,000. A three percent annual increase on the limit is included in anticipation of rising service costs. Hometown Fair Association covers all other third party costs such as fencing, porta-potties, etc. Staff recommends the $10,000 limit as the third party reimbursement to the City. The same limit of $10,000 was established for the Holiday Fireworks in June 2020.
2. Insurance and Indemnification sections have been reviewed by the City’s Risk Manager and legal team. The City’s legal team has recommended that section 5B under Indemnification be removed however HTF has requested that it be included based on historical agreements. Staff recommends continuing the language that has been included on previous agreements.
3. This agreement follows the term of the currently approved fee waiver that expires in 2025. HTF is requesting that the fee waiver term mirror the term of the agreement to guarantee a 100% fee waiver for City services through 2032. Staff does not recommend this change as it would not be in line with other legacy event fee waivers.
4. The Beer and Wine Garden sections were combined.
5. Approved fee waivers include the hanging of one street banner at no cost. This agreement will allow the HTF to hang two street banners at no cost.
The agreement was reviewed by the Parks and Recreation Commission at their July 24, 2023 meeting. The Commission unanimously voted to recommend approval by the City Council.
CONCLUSION:
Staff and the Parks and Recreation Commission recommend that the City Council approve the attached agreement between the City of Manhattan Beach and the Hometown Fair Association, Inc.
PUBLIC OUTREACH:
This item was discussed at the July 24, 2023 Parks and Recreation Commission meeting.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 23-0101
2. Agreement - Hometown Fair Association
3. Agreement - Hometown Fair Association (Redline)