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CC - FOUR-FIFTHS VOTE REQUIREMENT - (1) Receive and File the Financial Statements from the 2015 Culver City Summer Concert Series; (2) Approve a Budget Amendment Appropriating $40,775 from the General Fund; (3) Approve an Memorandum of Understanding and License Agreement with Boulevard Music in an Amount Not-to-Exceed $40,775 for the 2016 Culver City Summer Concert Series; and (4) Approve a Fee Waiver for the $119 City Banner Permit Application Fee.
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Contact Person/Dept: Shelly Wolfberg, Assistant to the City Manager
Phone Number: 310-253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Gary Mandell (02/03/16); Meetings and Meetings and Agendas - City Council (02/03/16)
Department Approval: Martin R. Cole, Assistant City Manager/City Clerk (02/01/16)
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RECOMMENDATION
Staff recommends the City Council: (1) receive and file the 2015 Summer Concert Financials; (2) approve a Budget Amendment appropriating $40,775 from the General Fund; and (3) approve a Memorandum of Understanding (MOU) and License Agreement (collectively, “Agreement”) with Boulevard Music in an amount not-to-exceed $40,775 for the 2016 Culver City Summer Concert Series.
A Budget Amendment Requires a Four-Fifths Vote.
BACKGROUND:
Audiences have enjoyed over 20 years of free summer concerts in the City Hall Courtyard. For a majority of this time, Gary Mandell of Boulevard Music has served as the Producer of the Concert Series, with the City or the former Culver City Redevelopment Agency (Former CCRA) as the main sponsor of the Concert Series. The responsibilities of the Producer have included contracting and overseeing the musical artists, sound engineer, custodial services, and event security in addition to marketing the event.
On June 23, 2014, the City Council considered the option of releasing a Request for Proposals (RFP) for the 2015 Summer Concert Series. At that meeting, the City Council took the following action:
MOVED BY VICE MAYOR O’LEARY AND SECONDED BY COUNCILMEMBER CLARKE THAT THE CITY MANAGER BRING BACK THE RFP WHEN PARCEL B IS READY TO ACCOMMODATE THE SUMMER CONCERT SERIES WITH COMMISSION INPUT AS TO WHEN IS THE PROPER TIME TO MOVE FORWARD.
Over the past several years, as part of Mr. Mandell’s services, he engages in fundraising efforts by: 1) seeking cash donations through sponsorships; 2) identifying in-kind donations through sponsorships; and 3) selling reserved concert seating at $10.00 per seat per concert.
On January 12, 2015, the City Council considered a proposal by Mr. Mandell to produce the 2015 Summer Concert Series at a contracted amount not to exceed $39,662, which included the projected expenses for the production of six concerts and direction to Mr. Mandell that he remit all revenues he collected from sponsorships and seat sales to the Cultural Affairs Foundation and the City. Based on these terms, the City Council directed “the City Manager to enter into negotiations with Boulevard Music to hold a 2015 Concert Series within the available funding provided in the City Council Adopted Budget for Fiscal Year 2014/15.” Mr. Mandell’s actual expenses for the 2015 Concert Series totaled $39,642.41. For the 2015 Concert Series, the revenues resulting from the sales of sponsorships (excluding the City’s sponsorship) and reserved concert seating totaled $23,259.20; $17,819.20 of which was in cash sponsorships and $5,440 from reserved seating sales. Mr. Mandell’s 2015 Summer Concert financials are provided in Attachment 1.
DISCUSSION:
Recently, staff contacted Mr. Mandell for a cost proposal to produce the 2016 Concert Series for six nights (the same number of nights of the 2015 Concert Series). Mr. Mandell has submitted his proposal (Attachment 2) to produce the 2016 Concert Series, with a scope of work similar to the 2015 Concert Series. Mr. Mandell has also included an explanation of his cost increases to produce the 2016 Concert Series (Attachment 3). Throughout the years, the concerts have traditionally begun at 7:00 pm and have concluded at 9:00 pm; this schedule is proposed to continue for 2016.
The amount of Mr. Mandell’s cost proposal to produce the 2016 Summer Concert Series is not-to-exceed $40,775 to cover all of his expenses. Similar to last year’s Concert Series Agreement, Mr. Mandell is requesting the City waive the $119 City banner permit application fee.
If Mr. Mandell raises approximately $17,800 in sponsorship revenue and $5,440 in ticket sales for reserved seating, (similar to what was raised for the 2015 Concert Series), then the City could potentially recover around $23,240 of his cost proposal, leaving a net concert production cost of $17,535 to be borne by the City’s General Fund.
In planning for a potential 2016 Concert Series, staff is seeking City Council direction at this time. The City Council may direct the City Manager to enter into negotiations with Boulevard Music to hold a 2016 Concert Series.
City Sponsorship
For those events requesting City-sponsorship, such events will each need to be specifically designated as a City-sponsored event by the City Council. As part of such City-sponsorship, event producers would be eligible to post banners in the public right-of-way advertising the sponsored event. To be categorized as a “sponsored” event by the City, an event must comply with Culver City Municipal Code (CCMC) Section 17.330.040.B.7.b.ii., confirming that the City is (a) participating in an official capacity in the planning, preparation or promotion of the event or activity; and (b) contributing 25% of the total estimated costs of the civic event or activity or at least $1,000, whichever is less. This contribution may take the form of funds, labor, staff time, materials, a waiver of fees, or any combination thereof.
The CCMC requires both (a) AND (b) conditions be satisfied. Additionally, City Council Policy requires that in order for an event to be considered City-sponsored, the City Council must determine, by specific action, that the above criteria have been met.
Should the City Council determine to provide support in an amount of at least $1,000 (funds, staff time and/or fee waivers, etc.), then the event may be designated a City-sponsored event. In order for the event producer to post Concert Series event banners in the public right-of-way, the producer will be required to include the City’s logo on the banners as a sponsor.
Should an event receive City-sponsorship, Mr. Mandell will be required (as he has in the past) to list the City as a sponsor of the event in e-mails, on Boulevard Music’s website, in promotions, press releases and on printed materials, where applicable.
FISCAL ANALYSIS:
Staff recommends the City Council approve a budget amendment appropriating $40,775 from the General Fund reserve to fund the 2016 Concert Series. All proceeds from sponsorships and seat sales will be remitted to the General Fund to offset the City’s gross costs for the 2016 Concert Series.
ATTACHMENTS:
1. 2015 Summer Concert Financials - Gary Mandell
2. 2016 Summer Concert Financial Proposal - Gary Mandell
3. Letter from Boulevard Music Describing Cost Changes
RECOMMENDED MOTION(S):
That the City Council:
1. Receive and File the 2015 Summer Concert Financials Provided by Boulevard Music;
AND
2. A. (FOUR-FIFTHS VOTE REQUIRED) Approve a Budget Amendment appropriating $40,775 from the General Fund; and,
2. B. Approve a Memorandum of Understanding and License Agreement with Boulevard Music in an Amount Not-to-Exceed $40,775 for the 2016 Culver City Summer Concert Series; and,
2. C. Waive the $119 City banner permit application fee; and,
2. D. Designate the 2016 Summer Concert Series as a City Sponsored Event; and,
2. E. Authorize the City Attorney to review/prepare the necessary documents; and,
2. F. Authorize the City Manager to execute such documents on behalf of the City.