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HomeMy WebLinkAboutRA Minutes 1997-03-03SRRA MINUTES (Regular) 3/3/97 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, MARCH 3, 1997 AT 7:30 PM Regular Meeting: Present: Albert J. Boro, Chairman San Rafael Redevelopment Agency: Paul M. Cohen, Councilmember Barbara Heller, Member Gary Phillips, Member Absent: Cyr N. Miller, Member Also Present: Rod Gould, Executive Director Gary T. Ragghianti, Agency Attorney Jeanne M. Leoncini, Agency Secretary CLOSED SESSION - 7:00 PM None ORAL COMMUNICATIONS OF AN URGENCY NATURE: None CONSENT CALENDAR: 7:30 PM Member Cohen moved and Member Phillips seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION 1. Approval of Minutes of Regular Meeting of Approved as submitted. Tuesday, February 18, 1997 (AS) 2. Unapproved Minutes of Citizens Advisory Accepted report. Committee Meeting of Thursday, February 6, 1997 (RA) - File R-140 IVB 3. Adoption of Resolution Accepting Proposal RESOLUTION NO. 97-5 - from Republic Electric to Furnish San Rafael RESOLUTION ACCEPTING THE Style Street Lights for West End of Fourth PROPOSAL FROM REPUBLIC ELECTRIC Street and Authorizing the Director of Economic TO PURCHASE SAN RAFAEL STYLE Development to Execute Agreement (PW) STREET LIGHTS FOR THE - File R-366 x R-140 XIII WEST END OF FOURTH STREET, AND AUTHORIZING THE DIRECTOR OF ECONOMIC DEVELOPMENT TO EXECUTE THE AGREEMENT IN THE AMOUNT OF $160,140. AYES: MEMBERS: Cohen, Heller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Miller AGENCY CONSIDERATION: 4. REPORT ON 1997 FARMERS MARKET FESTIVAL: (RA) - File R-309 x R-181 a. APPROVAL OF STREET CLOSURES, DATES AND HOURS OF OPERATION FOR 1997 MARKET b. APPROVAL OF OPERATIONS CONTRACT WITH CELEBRATIONS FOR 1997 MARKET C. APPROVAL OF $25,000 BUDGET ADVANCE FOR 1997 START-UP COSTS Director of Economic Development Jake Ours reported the Farmer's Market was beginning its eighth year, noting it has been a very successful Market. He pointed out that last year a number of structural changes had been made in the Market, in response to comments made about the operations. He noted that while some of the changes had been good, some had been bad, as they resulted in less revenue received by the Market due SRRA MINUTES (Regular) 3/3/97 Page 1 SRRA MINUTES (Regular) 3/3/97 Page 2 to a decrease in the number of vendors. Mr. Ours stated during this year's Market they would attempt to increase the number of vendors, but learn from past experience and maintain the displays in an orderly fashion, and keep them good looking. He noted they would again include some of the non -craft type of vendors who had participated in the past. Mr. Ours reported they would also be increasing the rates charged to the vendors by $5 - $10 per night, except for the food vendors, who are already charged the highest rates, and will remain at $55. per night. In reviewing the past performance of the Market, Mr. Ours reported that in 1993 and 1994 the Market did quite well, but in 1995 the Market experienced four rain -outs, and at that time there was a policy of reimbursing the vendors if they were rained -out. Mr. Ours noted that had been financially disastrous for the Market, and in 1996 that policy was changed, and the Market no longer reimburses vendors for rain -outs. He pointed out there was a direct correlation between the decrease in vendors and the loss of revenue for the 1996 Market, stating the number of vendors must be increased this year in order to cover the cost of the Market. Mr. Ours stated the goal has always been to make this a self-sustaining market, and if they are unable to accomplish this in the future, they will have to take a close look at how the Market is managed, and whether or not it can be continued with the same type of management. Mr. Ours stated they were requesting approval to close the same streets they have in the past, noting they really want to increase the number of vendors so the Market can extend all the way up Fourth Street to Cijos . He noted the merchants in that section of Fourth Street have always been great participants in the Market, and if we do not have enough vendors, then the Market cannot extend to their location. Mr. Ours stated staff is recommending the exact same contract with Celebrations as we had last year, and for the same amount of money. However, in order to start the Market this year, they would need additional funds; therefore, they are requesting the Agency advance funds against future operations. He stated they believed the money could be paid back because they are increasing the number of vendors, as well as increasing the rates, and noted they were asking for a three-year payback. He stated if the Market did not make a profit this year, they would review the operation, and make sure they find a way to get this money back. Mr. Ours stated he felt this would be a good investment, and the Market would be able to cover the funds advanced by the Agency, noting the Market was enjoyable, and he would like to see it continue Downtown. Member Phillips asked if the $25,000 was needed for the coming year, or since the Market was asking for a three-year payback, was the entire $25,000 the anticipated loss for the coming year? Mr. Ours stated there is a three-month period at the end of the year when they have no income coming in, and reported they have approximately $4,000 in bills from last year's Market that have to be paid, plus the start-ups for this year' s Market, plus the salary for someone to actually get the Market going, which all total approximately $22,000 needed right now to get the Market going. Mr. Ours stated that amount would be paid back during the course of the Market, noting he had been looking at the three-year payback to possibly make it a little softer hit on the Market, rather than having to pay it back within one year. Member Phillips asked what the total loss had been for last year? Mr. Ours stated the total loss had been $875, but that did not take into consideration the $10,000 we did not pay in salaries, explaining that according to the contract, this was not our obligation, so we did not pay it; however, if we had the money, we would have paid it. Therefore, we were very close to covering the costs SRRA MINUTES (Regular) 3/3/97 Page 2 SRRA MINUTES (Regular) 3/3/97 Page 3 for last year, but because of the year before, we had no reserves, and began the Market with a negative inflow at the beginning of the year, and did not make a profit to pay back the money owed from the year before. Mr. Phillips asked what the deficit figure had been that we carried over from the year before? Mr. Ours reported it was $17,000. Member Heller asked if that had been the loss carried over from 1995? Mr. Ours stated that was correct. Member Phillips asked, if there was such a large loss coming into the year, how was the following year funded? Mr. Ours stated there had been a loss for the operating year, but there had also been a reserve, so they were able to pay the start-up costs last year; however, there is nothing left now, and all of the reserves are gone. Member Phillips pointed out the loss for last year was only $875, and asked if that meant the reserve would have been approximately the same amount? Mr. Ours reported that was correct. Mr. Phillips pointed out they were able to start the Market last year with approximately the same amount of reserve as we have now. Mr. Ours noted that last year the operator was willing to not take all her money until the third month; however, we are not going into the beginning of this year's Market with that amount of money, because we did not pay the last two months last year. Mr. Phillips acknowledged that this would be a change in the start-up for this year, and asked what kind of income Mr. Ours was projecting for this year? Mr. Ours stated they anticipated a high point of approximately $93,000, noting it was possible this amount could be even higher, if they sponsor a Merry Marketplace again this year; however, he noted they did not know if they would be able to find a location for that event this year. Mr. Phillips asked Mr. Ours how much profit he was anticipating the Farmer's Market would make this year? Mr. Ours stated he felt they would probably have approximately $10,000 profit for this year, noting this would depend on how much advertising they do. He stated they would like to get themselves back in a positive cash flow position, so they are trying to reduce costs as much as possible. Chairman Boro asked if the 1996 income of $68,000, as shown in the staff report, included the Merry Marketplace receipts? Mr. Ours stated the $68,000 represented only income from the Farmer's Market, noting income from the Merry Marketplace was approximately $30,000, which resulted in a profit of approximately $2,000 which went to the Farmer's Market to reduce its debt. Chairman Boro asked if the $90,000 income projected for this year was based on having the Merry Marketplace again this year? Mr. Ours stated they felt the Farmer's Market would have $90,000 income, and they would have more than that if they were able to do the Merry Marketplace. Chairman Boro noted we had paid more for entertainment last year than we had in the past, because of the caliber of entertainment we wanted to have, and asked Mr. Ours if he felt it was important to continue to do that? Mr. Ours stated they felt it was very important to continue to do this, because it is much better entertainment, and we have had very positive responses from everyone who attends the Market. He noted when we were asking the entertainers to perform for free, we never really knew what we were going to get, and now we can request a tape in advance, and interview the participants without any obligation to allow them to perform. He noted there is a review committee, and the members review the music before it goes on. Member Cohen stated he was concerned with the issue of start-up costs, particularly with what happens next year. He noted Mr. Ours had stated there was approximately $22,000 in start-up costs, and $4,000 in debts. He asked, if we are anticipating a net of $10,000, and $8,000 is repaid, which is a third of the $25, 000 now being requested, then we would go into next year with $2, 000 SRRA MINUTES (Regular) 3/3/97 Page 3 SRRA MINUTES (Regular) 3/3/97 Page 4 and facing $22,000 in start-up costs. Mr. Ours stated they would begin next year with $10,000 rather than $2,000, because they have already allocated the repayment amount in their projected costs. Mr. Cohen noted that even if they clear $10,000 after the loan payment is made, they would still be $12,000 short. Mr. Ours stated if the salaries have been paid, they could probably negotiate the start-up costs with the Contract Manager, until they got to a point where there was money coming in again. Brigitte Moran, Contract Manager with Celebrations, stated the reason she could not run the Farmer's Market this year without the start-up costs, which she did not receive until July for last year's Market, was because of the $10,000 loss from last year. Member Heller pointed out that Mr. Ours had noted staff would be making recommendations for changes in the Contract for Management, and asked what kind of changes were anticipated? Mr. Ours stated they were looking at the possibility of rolling this job into other functions that are happening in the City right now, noting there are a lot of other events and filming going on in San Rafael. He stated they would look at these activities and see if there is a possibility of combining them all into one type of a job that would take care of all the events. Ms. Heller asked if this would have to be a contract person, and Mr. Ours stated that had not yet been decided. Member Cohen stated he was concerned about the financial future of the Market, noting he was willing to provide the start-up money, and was also willing to recognize the Agency might not get back all of the money. However, he stated they needed to find a way for this not to be an annual occurrence, and that may mean changes to the way the Market operates, or doing things that some people may not like, noting they would just have to weigh those things as they go. Member Heller asked if attendance at the Market had been about the same last year, or if it had fallen off? Mr. Ours reported attendance had been slightly less, but it was more a matter of generating less revenue last year. He stated there were a lot of people who came particularly to see what some had called the "unpopular" attractions, noting there had been a lot of comments and questions about specific items that people repeatedly look for when they come to the Market, but which were supplied by vendors no longer accepted by the Market. Member Cohen thanked Brigitte Moran for her work on the Farmer's Market, and expressed appreciation for her willingness last year to see the Market through and not get the $10,000 that was in the contract last year. Member Cohen moved and Member Heller seconded, to: a) Approve staff' s recommendations for street closures, dates and hours of operation for 1997 Market (Thursday, April 3 through Thursday, October 1, 1997). Street closures for the Market will be Fourth Street between "B" to Cijos Streets from 5:00 PM to 9:30 PM, "A" Street between Julia Street and the entryway to the "A" Street Parking Structure from 5:00 PM to 9:30 PM, and Court Street between Fourth Street and the Macy's parking lot entrance from 4:30 PM to 9:30 PM; b) Adopt Resolution approving the Operations Contract with Celebrations, and c) Adopt Resolution approving a $25,000 budget advance for start-up costs. RESOLUTION NO. 97-6 -RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A CONTRACT WITH CELEBRATIONS TO OPERATE THE DOWNTOWN FARMERS MARKET FESTIVAL FOR 1997 (FROM 1/1/97 - 12/31/97 FOR A FEE NOT TO EXCEED $60,800). RESOLUTION NO. 97-7 - RESOLUTION APPROVING A BUDGET ADVANCE OF $25,000 TO FUND SRRA MINUTES (Regular) 3/3/97 Page 4 SRRA MINUTES (Regular) 3/3/97 Page 5 START UP COSTS FOR THE 1997 FARMERS MARKET FESTIVAL. AYES: MEMBERS: Cohen, Heller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Miller 5. AGENCY MEMBER REPORTS: None There being no further business to come before the Redevelopment Agency, the meeting was adjourned at 7:55 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 3/3/97 Page 5