TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Linda Robb, Management Analyst
SUBJECT:Title
Fee Waiver Request Associated with Holiday Fireworks (Parks and Recreation Director Leyman).
A) APPROVE
B) ALLOCATE FUNDS
Line
_____________________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve the fee waiver request for the fireworks event and allocate $52,286 from the General Fund to cover additional third-party costs.
Body
FISCAL IMPLICATIONS:
Per past City Council direction, staff used fully burdened rates when determining the true costs associated with each special event request. Fully burdened rates include City overhead as well as direct costs to the City, as adopted by City Council in the resolution of fees. The funds to provide these services are budgeted annually within each of the affected City departments.
Any related equipment utilized is charged at the prevailing rental fee. Parking rates were calculated at $2.00 per hour, which is the current hourly meter rate.
The fee waivers presented for City services for the 2021 fireworks event represent $99,265. The attached third party costs are estimated at $62,508 for a total of $161,773. This represents a $63,286 increase from the Council approved fee waiver. As part of the approved fee waiver, the operator will pay $10,000 towards third-party costs.
BACKGROUND:
At the July 17, 2018, City Council meeting, a revised Special Event Policy was approved, establishing a tiered approval process and stating that third party costs are the responsibility of the event organizer and are not covered by the fee waiver. The third-party costs were capped at $10,000 for the fireworks event operator.
At the June 9, 2020, City Council meeting, Fee Waivers were approved for all legacy events through Fiscal Year (FY) 2025 with the stipulation that events would be brought back for review if costs were to increase by 10% or more. As stated in fiscal implications, the costs increased $62,286 (63%) from the approved fee waiver.
DISCUSSION:
The staff special event committee is comprised of representatives from each department and meets monthly to evaluate special events. The event operator met with the special event committee on three separate occasions to discuss event logistics and operations.
During discussions, it quickly became apparent that due to COVID-19, a modified version of the event would be required. The cancellation of the 2020 event and the turnout of other recent events suggests that there could be a large number of spectators for the 2021 event. Staff has been in contact with Los Angeles County Department of Public Health and will follow all protocols, including marketing and signage encouraging the use of face coverings and distancing.
The presence of the dining decks poses a challenge, especially in the area west of Manhattan Avenue on Manhattan Beach Blvd. Due to the narrow space between the dining decks on the north and south sides of Manhattan Beach Boulevard (MBB), it was decided that the area west of Manhattan Avenue will be completely closed to pedestrian traffic (sidewalks will remain open) and no blankets or seating will be allowed in the area. In the event of an emergency, the dining decks would create a bottleneck that would be unsafe for evacuation efforts.
The committee identified the following conditions to maintain access and safety for the event:
• Minimize pedestrian activity west of Manhattan Avenue and encourage beach seating.
• Dining decks on MBB west of Manhattan Avenue will remain in place, but be closed to all users from 4:00-8:00 p.m. on Sunday, December 12, 2021.
• Dining decks on MBB east of Manhattan Avenue may operate normally.
• Dining decks on Manhattan Avenue may operate normally.
• MBB will be closed to all vehicle and pedestrian traffic from Manhattan Avenue to the Pier (sidewalks accessible).
• MBB between Manhattan Avenue and Valley Drive will allow spectator seating on the north half of street (the fire lane is on south side).
• Manhattan Avenue between 9th Street and 14th Street will be closed to vehicular traffic.
• 11th Street and 12th Street between Ocean Drive and Manhattan Avenue shall be closed to all traffic and parking to provide emergency access.
• Bounce Park will be eliminated for 2021 (it may be relocated to Manhattan Avenue in 2022).
• Snow Park will close at 6:00 p.m., one hour before fireworks start with no spectators allowed in the Snow Park area.
• Snow Park will be fenced in upper south pier lot to control capacity and prohibit spectators after 6:00 p.m.
• Marketing push necessary to encourage viewing from the sand; City to investigate live-stream coverage.
• VIP area will remain in upper north pier lot and will be controlled with fencing.
The Holiday Fireworks, due to the size and nature of the event, requires the most significant third party costs. The majority of expenses are for public safety. The security requirements are determined and adjusted by public safety personnel based on projected attendance and possible threats, therefore, the level of security varies.
CONCLUSION:
Staff recommends that the City Council approve the fee waiver request for the fireworks event and allocate $52,286 from the General Fund to cover additional third-party costs.
ATTACHMENT:
1. Fee Waiver Summary