HomeMy WebLinkAboutED Farmers' Market; Next Generation 2012CITY OF SAN RAFAEL AGENDA ITEM NO.: 5.a MEETING DATE: January 17, 2012 REPORT TO MAYOR AND CITY COUNCIL RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH NEXT GENERATION EVENTS FOR THE 2012 DOWNTOWN FARMERS' MARKET FESTIVAL (FROM 1/1/12 -12/31/12) RECOMMENDATION: Adopt the attached resolution to execute a professional services agreement with Next Generation Events for the 2012 Downtown Farmers' Market Festival. BACKGROUND: The San Rafael Redevelopment Agency ("Agency") and Business Improvement District ("BID") have a long history of working together on events to attract people to Downtown San Rafael. The Downtown Vision and the City's General Plan 2020 include goals for a vibrant, active and attractive Downtown. General Plan Policies include NH -20 - expand Downtown's reputation as the events center for the City through events and entertainment activities, NH -21 - maintaining Downtown San Rafael as the cultural and entertainment center of San Rafael and the County, NH -34 - Alive After Five, encouraging additional entertainment venues on Fourth Street and maintaining Fourth Street core as the main staging area for Downtown activities and events. These policies were promoted by the Agency and the BID with the development of a robust event calendar. The initial "signature events" included in the Agency/BID partnership were: • May Madness Classic Car Parade • Farmers Market Festival • Youth in Arts Italian Street Painting Festival • Parade of Lights (Snow) The Agency has provided some funding for these four legacy events from inception to 2012, including Police, Public Works and event coordination assistance by Agency staff. Newer events were required to be self-sufficient and no Agency direct funding was provided, except Event Coordinator time. FOR CITY CLERK ONLY File No.: 4-3-531 City Council Meeting: 01/17/2012 Disposition: Resolution 13290 Page 2 Due to the Agency's remaining limited funding all legacy events were provided with written notification in May 2010 that the Agency would be eliminating financial support in FY 2012-13 ("Exhibit A"). Recently, the State of California has taken actions to dissolve Redevelopment Agencies effective February 1, 2012. It is therefore possible that whatever funds the Agency had planned for the 2012 season will be eliminated. Further discussion on the costs is included in the Fiscal Impact section of this report. Downtown Farmers' Market Festival The Downtown Farmers' Market Festival ("Festival") was established in 1990 and has been a popular event drawing up to 5,000 people to the Downtown each Thursday night of the season. Similar to the other legacy events, the Festival was conceived by the Agency to attract people to Fourth Street. The event was modeled on the very successful San Luis Obispo evening festival. The goal of the Festival is to provide a family friendly environment with a variety of experiences; fresh vegetables, hot foods, music, crafts, and kiddie rides to attract people to Downtown San Rafael in the evening. The event includes a California certified farmers market but was designed as a festival in keeping with the Downtown revitalization policies. The focus was and remains to bring people to the Downtown and not to compete with the daytime famers markets in the rest of the County. The Festival is overseen by the Agency with input from a community advisory committee made up of Downtown merchants, Festival vendors, and a City Council representative. Management of the Festival In the early years of the Festival, the Market Manager ("Manager") was paid a set management fee and all of the revenue and expenses came to or were paid by the Agency. This created a risk to the Agency if weekly stall fees did not cover the costs, for example if there was a rainy event night. The Agency decided to alter the arrangement and cease the management fee but continued to pay for Police overtime and janitorial services during the event. Since 2001, the Agency has approved a professional services contract for the operation of the Market, specifying that Police and janitorial costs would be paid by the Agency. The Manager collects and receives all Festival revenues and pays all costs with the exception of the Agency funded costs above. Over these 22 years of Market operations, Agency staff and the promoter have worked hand in hand in a strong partnership to continue holding a successful market. In recent years, Agency staff, the Police Department and the Manager have worked cooperatively to reduce Police overtime for the event while maintaining a strong security presence. DISCUSSION: For the 2012 Festival season, it is recommended that the Agency contract with Next Generation Events ("Manager") for the management of the Festival. Season Dates. The 2012 Market is proposed to begin in April and run through September for a total of 26 Markets, at the same time as previous years, from 6 pm - 9 pm. Under separate resolution, the City Council will be presented with the necessary street closure approvals for the Market to operate. Page 3 Location. The Festival footprint is Fourth Street from Cijos Street to B Street. The event has had a larger footprint in previous years. The Manager suggested a reduced footprint to create a smaller intimate market. The smaller footprint results in lower space rental revenue but may also reduce some of the costs. BID Members. BID members receive a discounted space rental fee. BID members also receive thirty days advance notice each season and first priority for space rentals. The Manager has instituted limitations on hot food vendors to protect the Downtown restaurants from oversaturation. No more than two vendors of the same food type are allowed at the Festival. For example if two BID members sell pizza at the Festival, no other pizza vendors will be admitted for the full season. The Manager also instituted limitations on the types of non-food items that can be sold to avoid competition with Fourth Street businesses. Security. The City of San Rafael has the ultimate authority to assess the security needs for City facilities and events. This authority is assigned to the City's Chief of Police. Traditionally, the San Rafael Police Department has provided all security for this event utilizing four officers and a supervisor._ The overtime_ costs_ for the Supervisor and two officers were _paid by the Agency. The other two officers included the Festival as part of their regular Downtown beat so there was no additional cost. The Police Department has assessed the Festival incident reports and the 2012 Festival operations plan with the smaller market footprint and has decided to reallocate some of the Police resources. For the 2012 season, the initial security plan will be two officers on regular time and three additional officers on a reduced schedule to be deployed at the discretion of the Police Department. The Manager will be responsible for the hiring and oversight of two private security guards to supplement the City's Police presence. Security activities will be monitored and this new plan will be assessed by the Chief of Police throughout the Market season. Other City Support. Currently, the Agency's Events Coordinator ("Coordinator") provides assistance to all events (legacy and other events) on Fourth Street and in the City Plaza. The Coordinator assesses all event operations plans to assure that City rules are followed and that City property is protected. During events, the Coordinator is the City's representative and facilitates all City resources. For the Festival, the Coordinator oversees the barricade placement, street closures, event setup including the community information booth, electrical service for the entertainers and food vendors, janitorial service during the event, including cleanup prior to reopening the streets. Historically, the Public Works Department has been responsible for the installation and removal of all Festival signage at the major entrances to the City as well as the No Parking signs on the light poles and parking meters. Revenue and Expenditures. Under the proposed contract, the Manager will receive the revenues from the Festival to pay for all operational expenses. The operational costs of the Festival include items such as County and State permits, advertising, postage, entertainment, Page 4 porta potties, dumpsters, Festival management and temporary labor. The Manager has agreed to assume the janitorial costs, previously paid by the Agency. The Manager has undertaken studies to make sure the space rents are competitive. At this time, it would not be feasible to increase the rental fees since the Festival's rents are already in line with the Civic Center Market, which has a higher attendance and longer hours of operation. The Festival fees for hot food vendors are already more expensive than Civic Center Market. Contractor Experience. Monique Anderson, owner of Next Generation Events, has successfully operated the Market for many years, and has technical expertise on issues such as Farmers' Market certification requirements, health department regulations, WIC program, traffic and other safety concerns of the Festival. Additionally, she has detailed knowledge regarding the Festival farmers and vendors, City staff, City rules and regulations, and local merchants' needs. FISCAL IMPACT: The main Agency costs for the Festival are for Police overtime, Events Coordinator, Public Works for signage, and pressure washing the sidewalks and Plaza during and after the season. For the 2012 season, the Manager has agreed to provide all janitorial service during each Festival evening, and limited security as discussed above. The Agency's 2011-12 budget includes funding for police overtime as well as the continued assistance from the Agency's Events Coordinator. On December 30, 2011, the California Supreme Court issued a ruling disbanding Redevelopment Agencies effective February 1, 2012. This ruling also appropriates for the benefit of the State, all Agency funds that are not encumbered by contracts entered into prior to the end of 2011. Therefore, the Agency cannot commit to funding the Police overtime for the 2012 Festival season. Staff is recommending the cost be borne by the City of Sari Rafael for this season only, with the understanding that the 2013 season will have no City subsidy. The cost for police presence at the Festival under the new Security Plan, is estimated to be $30,000 for the entire 26 - week season, which mean the cost would be spread over two City fiscal years. OPTIONS: • Adopt the attached resolution authorizing the agreement and approving a maximum of $30,000 for Police overtime costs to be funded by the City, spread over two fiscal years. • Direct staff to reduce, increase or eliminate the City contribution to the event. • Reject the agreement. ACTION REQUIRED: Adopt the attached resolution. ATTACHMENTS: Exhibit A, Agency Letter Eliminating Financial Support for Legacy Events RESOLUTION NO. 13290 RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH NEXT GENERATION EVENTS FOR THE 2012 DOWNTOWN FARMERS' MARKET FESTIVAL (FROM 1/1/12 -12/31/12) FINDINGS AND PURPOSE: The City of San Rafael hereinafter referred to as CITY, does hereby declare, find and determine that: WHEREAS, the CITY has determined that it is in its best interest to obtain management services for the organization and operation of the Downtown San Rafael Farmers' Market Festival (hereinafter "Market"); and WHEREAS, Next Generation Events, (hereinafter "CONTRACTOR") has experience in providing management services and special technical skills to ensure a successful Market; and WHEREAS, the CITY desires to employ CONTRACTOR to provide such services and CONTRACTOR is willing and able to provide said services; and WHEREAS, all other CONTRACTOR costs for the Market will be paid by CONTRACTOR from Market gross receipts and shall not be an obligation of the CITY; and WHEREAS, the CITY agrees to fund Police overtime for the Festival in an amount not to exceed $15,000 for Fiscal Year 2011-12 and in an amount not to exceed $15,000 for Fiscal Year 2012-13; NOW, THEREFORE BE IT RESOLVED, that the CITY authorizes the Director of Economic Development to execute an Agreement for Professional Services with CONTRACTOR, in the form to be approved by the City Attorney, for the 2012 Farmers' Market Festival season. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon adoption. I, ESTHER BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 17th day of January 2012, by the following vote, to wit: AYES: COUNCILMEMBERS: Connolly, Heller, Levine, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Esther Beirne, City Clerk PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND NEXT GENERATION EVENTS TO PROVIDE OPERATION AND MANAGEMENT SERVICES FOR THE DOWNTOWN FARMERS' MARKET FESTIVAL FROM JANUARY 1, 2012 THROUGH DECEMBER 31, 2012 This Agreement is made and entered into as of the 1St day of January, 2012, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and NEXT GENERATION EVENTS (hereinafter "CONTRACTOR"). RECITALS WHEREAS, the CITY has determined that it is in its best interest to obtain management services for the organization and operation of the Downtown San Rafael Farmers' Market Festival (hereinafter "MARKET"); and WHEREAS, the CONTRACTOR has experience in providing such management services and holds special technical skills to ensure a successful MARKET; and WHEREAS, the CITY desires to employ the CONTRACTOR to provide such services and CONTRACTOR is willing and able to provide said services; AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: PROJECT COORDINATION. A. CITY. The Economic Development Manager shall be the representative of the CITY for all purposes under this Agreement. B. CONTRACTOR. Monique Anderson is hereby designated as the PROJECT DIRECTOR for CONTRACTOR. 2. DUTIES OF CONTRACTOR. CONTRACTOR shall perform the duties and/or provide services as follows: organization and operation of the MARKET for a total of 26 Markets, from April 5, 2012 through September 27, 2012. Duties include but are not limited to the following: ■ Hiring all personnel, entertainment, and labor ■ Coordinating street closures with the CITY'S Event Coordinator and Police Department ■ Contracting with private security company to provide two security guards at every MARKET ■ Coordinating on-site security with CITY's Police personnel ■ Coordinating weekly event cleanup with contracted labor paid for by MARKET ■ Recruiting and scheduling vendors and entertainment ■ Tracking financial data including revenue and expenditures for the event and providing that information to the City of San Rafael at the end of the season RDA/AdmintspecEvents/DwntwnMkt(2011/FarmersMktContract ■ Meeting State certification requirements and reporting ■ Paying all expenses related to MARKET with the exception of Police overtime costs ■ Advertising/Marketing the MARKET ■ Meeting with the Farmers' Market Advisory Board on a regular basis 3. DUTIES OF CITY. CITY shall pay Police overtime costs in an amount not to exceed $30,000 for the entire 26 - week MARKET season. All compensation to CONTRACTOR shall be paid from MARKET gross receipts, collected by CONTRACTOR, and shall not be an obligation of the CITY. 4. TERM OF AGREEMENT. The term of this Agreement shall be for one year commencing on January 1, 2012 and ending on December 31, 2012. Upon mutual agreement of the parties, and subject to the approval of CITY, the term of this Agreement may be extended. 5. TERMINATION. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other party. Upon receipt of notice of termination, neither party shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. Upon termination, any and all CITY documents or materials provided to CONTRACTOR and any and all of CONTRACTOR's documents and materials prepared for or relating to the performance of its duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. 6. INSPECTION AND AUDIT. Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for inspection and audit, all documents and materials maintained by CONTRACTOR in connection with its performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with CITY or its agent in any such audit or inspection. 7. ASSIGNABILITY. The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. 8. INSURANCE. A. During the term of this Agreement, CONTRACTOR shall maintain, at no expense to CITY, the following insurance policies: 1. A comprehensive general liability insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence for death, bodily injury, personal injury, or property damage, RDA/Admin/SpecEvents/DwntwnMkt120111FarmersMktContract 2 2. An automobile liability (owned, non -owned, and hired vehicles) insurance policy in the minimum amount of one million ($1,000,000) dollars per occurrence; 3. If any licensed professional performs any of the services required to be performed under this Agreement, a professional liability insurance policy in the minimum amount of one million ($1,000,000) dollars to cover any claims arising out of the CONTRACTOR's performance of services under this Agreement. B. The insurance coverage required of the CONTRACTOR by section 8.A., shall also meet the following requirements: L The insurance shall be primary with respect to any insurance or coverage maintained by CITY and shall not call upon CITY's insurance or coverage for any contribution; 2. Except for professional liability insurance, the insurance policies shall be endorsed for contractual liability and personal injury; 3. Except for professional liability insurance, the insurance policies shall be specifically endorsed to include the CITY, its officers, agents, employees, and volunteers as additionally named insureds under the policies. 4. CONTRACTOR shall provide to City's Risk Manager, (a) Certificates of Insurance evidencing the insurance coverage required herein, and (b) specific endorsements naming CITY, its officers, agents, employees, and volunteers, as additional named insureds under the policies. 5. The insurance policies shall provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said insurance policies except upon thirty (30) days written notice to City's Risk Manager. 6. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less than five years; 7. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement; 8. The insurance shall be approved as to form and sufficiency by PROJECT DIRECTOR and the City Attorney. C. If it employs any person, CONTRACTOR shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONTRACTOR and CITY against all liability for injuries to CONTRACTOR's officers and employees. D. Any deductibles or self-insured retentions in CONTRACTOR's insurance policies must be declared to and approved by the City's Risk Manager and the City Attorney. At CITY's option, the deductibles or self-insured retentions with respect to CITY shall be reduced or RDA/Admin/SpecEvents(DwntwnMktl20111FarmersMktContract 3 eliminated to CITY's satisfaction, or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claims administration, attorney's fees and defense expenses. 9. INDEMNIFICATION. CONTRACTOR shall indemnify, release, defend and hold harmless CITY, its officers, agents, employees, and volunteers, against any claim, demand, suit, judgment, loss, liability or expense of any kind, including attorney's fees and administrative costs, arising out of or resulting from the acts or omissions, intentional or negligent, of CONTRACTOR or CONTRACTOR's officers, agents and employees in the performance of their duties and obligations under this Agreement. 10. NONDISCRIMINATION. CONTRACTOR shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 11. COMPLIANCE WITH ALL LAWS. CONTRACTOR shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities, penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 12. NO THIRD PARTY BENEFICIARIES. CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 13. NOTICES. All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY: Stephanie Lovette Economic Development Manager City of San Rafael 1313 Fifth Ave. (P.O. Box 151560) San Rafael, CA 94915-1560 RDA/Admin/SpecEvents/DwntwnMkt/2011/FannersMktContract 4 TO CONTRACTOR: Monique Anderson Owner Next Generation Events P O Box 151695 San Rafael, CA 94915-1695 14. INDEPENDENT CONTRACTOR. For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers, agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONTRACTOR and CITY expressly intend and` agree that the status of CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 15. ENTIRE AGREEMENT -- AMENDMENTS. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONTRACTOR and the CITY. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 16. SET-OFF AGAINST DEBTS. CONTRACTOR agrees that CITY may deduct from any payment due to CONTRACTOR under this Agreement, any monies which CONTRACTOR owes CITY under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or other amounts. 17. WAIVERS. The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 18. COSTS AND ATTORNEY'S FEES. The prevailing party in any action brought to enforce the terms and conditions of this RDA/Admin{SpecEventslDwntwnMkt(2011/FarmersMkWontract 5 Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 19. CITY BUSINESS LICENSE I OTHER TAXES. CONTRACTOR shall obtain and maintain during the duration of this Agreement, a City of San Rafael business license as required by the San Rafael Municipal Code. CONTRACTOR shall pay any and all state and federal taxes and any other applicable taxes. CONTRACTOR's taxpayer identification number is 02-0548275, and CONTRACTOR certifies under penalty of perjury that said taxpayer identification number is correct. 20. APPLICABLE LAW. The laws of the State of California shall govern this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month and year first above written. SAN RAFAEL REDEVELOPMENT CITY STE HANIE LOVETTE Acting Economic Development Director C 4 I ROBERT F. EPSTE City Attorney RDA/Admin/specEvents(DwntwnMktt2011IFarmersMktContract 6 NEXT GENERATION EVENTS MONIQUE ANDERSON Owner ESTHER C. BEIRNE City Clerk EXHIBIT A CITY OF mayor kbert J. Boto Council Members Gmg Brockbank Dan= Comiolly Barbara Heller Marc UW11140 May 12,2010 Owner CB Events 6-f,T]71 IiiME M Re: Budget Etiminations ME= 0 and has been proud to be your partner to bring this wonderful event to our community. For i '7porf r I over two decades, the Clty*s Redevelopment Agency has provided financial support for the Farmers Market, most recently covering the cost of security, street closures, janitorial services, and providing a $10,000 start up loan for each season. This partnership approach has provide for a great event in our Downtown, mom • F I exclude costs associated with our Event Coordinator, Brian Auger): Police S40,000 Janitorial 7,000 Temp Help for Set Up 1,600 Outlet Repair (Vendor Use) Lo M, Total $49,600 We hope to find a way to continue to f Ind funding for our Redevelopment staff, including our Events Coordinator, to provide support for events, Please know this letter has been sent at this time to provide your organization ample time to deal with this change of support and funding. Prior to executing a 2012 season contract with 1400 Fifth A vo. � P. 0. Box 151560, an Rafael, CA 94915- 1560 Phone; (4 15) 485-3070 Fax: (4 15� 459-2214*2 TDD. (415) 485-3198 N C13 Events (Le., in December 2011) a plan will need to be presented regarding the financing of the event to ensure proper security, street closures and clean up will be maintained. mechanisms outside of the City to keep this event in our community, I am available to meet with you at any time to discuss this matter further. Sincerely, Nancy Mackie Deputy City Manager cc Mayor Boro and City Council Ken Nordhoff, City Manager Joanne Webster, Downtown BID Director Rick Wells, San Rafael Chamber: President/CEO