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HomeMy WebLinkAboutAGENDA REPORT 2001 0606 CC REG ITEM 10ETO FROM: DATE: SUBJECT: BACKGROUND MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council ITEM /0 R E -- C, TIA of LP -Z Do AC's 'ION. q .red S�a��+�re�t�retm ,02 a. v►d G pr orA lf- -for Sia►5W L n• BY; Kim C. Chudoba, Senior Management Analyst K& May 30, 2001 (CC Meeting of 6/6/01) CONSIDER REQUEST TO PROVIDE $15,000 LOAN FOR COUNTRY DAYS TO "HIGH STREET EVENTS A NONPROFIT CORPORATION" For over 20 years, Country Days has been a popular community event. Last year, the parade and street fair attracted about 4,000 participants. For over 15 years, the Chamber of Commerce sponsored the festivities. However, in November 2000, after years of debate, the Chamber ended the relationship to concentrate on core business activities. In recent years, Country Days generated about $2,000 to $4,000 in profits for the Chamber, which provided seed money for subsequent years. Last year, however, Country Days only broke even because the Chamber purchased and retained canopies and netting to meet county health requirements for food booths. Thus, there is no seed money this year. Country Days is scheduled for September 29, 2001. The Chamber has transferred responsibility for the event to an existing nonprofit corporation entitled "High Street Events A Nonprofit Corporation" (HSE). This corporation is organized and operated exclusively for charitable purposes within the meaning of the Internal Revenue Code. (The articles of incorporation and bylaws are on file in the City Clerk's Office.) In May 1998, Scott Green formed HSE to sponsor a 4 t of July event on High Street. This month, a new board of directors was elected and a new slate of officers was appointed, who will sponsor Country Days from this point forward. In recognition of past contributions, the Chamber will be "permanently listed as a co- sponsor" of the event per HSE bylaws. 90166 Honorable City May 30, 2001 Page 2 DISCUSSION Council The HSE board will consist of 7 to 15 members, with representatives from various community groups. Thus far, the new board members are Jim Stueck (chief executive officer), Debra Ryono (secretary), Linda Plaks (chief financial officer), Scott Green, and Rick Tate. Additional board members are being recruited. The board will meet 4 or 5 times per year, with the bulk of the work accomplished through standing committees. The Country Days Committee will meet as needed to plan and conduct the event. As in the past, the Committee will ask local businesses, churches, civic groups, schools, and sports organizations to participate. The event will feature arts, crafts, exhibits, food, games, rides, and entertainment. No major changes are planned. This month, the Committee began fundraising efforts to attract major sponsors. In the past, various businesses and community groups have donated money and in -kind contributions. To date, the Moorpark Star has donated $5,000 in free advertising, and the Chamber has helped with promotional activities. The Committee expects over 4,000 attendees, generating about $12,900 in revenues, leaving less than $100 profit after expenses. The insurance coverage will come from the Chamber's existing policy, with the City, Redevelopment Agency, and HSE listed as additional insureds. Each year, in support of County Days, the City waives or reduces various fees and charges for the event. The City liaison, a Senior Management Analyst, coordinates City resources. The City obtains an encroachment permit from Caltrans; posts restricted parking signs, traffic control signs, and barricades; provides police personnel; and offers bus service. In a letter dated May 24, 2001, HSE asked the City to provide seed money for Country Days in addition to the City's typical level of support. Specifically, HSE requested a $15,000 loan to be repaid from Country Days proceeds in 18 months, with an option to renegotiate the terms at that time. In return, the City will receive the benefits of a major sponsor, including free advertising and booth space. 3` Honorable City Council May 30, 2001 Page 3 Staff recommends that the City accept a promissory note from HSE in exchange for a $15,000 loan, with no interest, from the City's General Fund Reserve, due and payable on December 31, 2002. This amount will provide adequate seed money for two annual events, after which Country Days should be self - supporting with adequate cash flow to repay the loan. In addition, the City and HSE will enter into an agreement defining the services each party will provide. Funding will be contingent upon receipt of an indemnification agreement and an insurance policy naming the City and the Redevelopment Agency as additional insureds. HSE will submit financial statements to the City after each event, and the City will have the right to inspect HSE financial records, and audit if necessary. The City is exploring bonding options to help ensure repayment. STAFF RECOMMENDATION (ROLL CALL VOTE) Accept a promissory note from HSE in exchange for a $15,000 loan, with no interest, from the City's General Fund Reserve, due and payable on December 31, 2002, and authorize an agreement between the City and HSE, with both documents subject to final language approval of the City Manager and City Attorney. Attachment 1: Committee Letter Dated May 24, 2001 with Anticipated Revenues and Expenses for 2001 16,8) ATTACHMENT 1 Moorpark Country Days May 24, 2001 Dear Mr. Mayor and Councihnembers: Country Days has been a tradition in Moorpark for more than 20 years. This year, we need the city's help if we are to continue with this community event, which draws thousands of people to High Street on the last Saturday of September. In the past, Country Days has been sponsored by the Moorpark Chamber of Commerce. The city of Moorpark contributes police services, permit processing, barricades, no- parking signs, street sweeping, a bus, and other staff help for the event. Various businesses and service clubs contribute money, manpower and in -kind donations. The Country Days Committee, usually made up of about 12 people, was a branch of the Chamber of Commerce, although few of the members were actually in the Chamber. The Chamber's board of directors has debated for several years whether to continue sponsoring Country Days or whether to concentrate on more business- related activities. In November 2000, the Chamber board opted to no longer sponsor Country Days. Scott Green, the Chamber president, had earlier set up a state- approved nonprofit organization called High Street Events, which he originally planned to use as a springboard for various events to be held on High Street. He offered the Country Days Committee the use of High Street Events as the umbrella organization for Country Days. The first organizational meetings were held earlier this year. High Street Events should be completely operative within the next two weeks, with a new board' `of directors, a checking account, and a post office box. Jim Stueck will serve as president, Linda Plaks is treasurer, Debra Ryono is secretary, and Scott Green and Rick Tate are current board members. New board members are being recruited, and Mike Wesner is giving legal advice. While we now have an umbrella organization for Country Days, we do not have any money, which is why we are asking for the city's help. In the recent past, Country Days has made $2,000 to $4,000, with the money going to the Chamber of Commerce. The Chamber would then provide the seed money when we began to incur expenses for the next year. In 2000, Country Days broke even, primarily because we had to buy new canopies and netting for food booths to meet county health requirements. As a result, the Chamber has no money to pass on. High Street Events/Country Days is asking the city for a loan of $15,000 to be repaid from proceeds of Country Days. Terms of repayment would be worked out with city staff, although we would suggest a note due in 18 months (after two events) with an option to renegotiate. We believe that Country Days is a wonderful event for the city and its children, and the members of the Country Days Committee are ready to start work on this year's event. However, we can't move ahead without financial help, and time is growing short. We would appreciate a decision as soon as possible. If you have any questions, please call me at 655 -1722 (work) or 529 -3899. My e-mail address is ryono@insidevc.com. Sincerely Debra Ryono Country Days Chair Attachments: Preliminary 2001 Country Days budget and income /expense statements from 2000 and 1998 done by the Chamber of Commerce staff. " J(" EXPENSES SITE Insurance Two stages /Main and Teen Electricity Sanitation (toilets, sinks) Table /chair rental Labor for putting down straw /clean up Straw Canopy rentals Radios Total Site ENTERTAINMENT Game booths /rides Music, performers Total Entertainment PARADE Insurance Trophies, awards Bandjudges Signs /Supplies Total Parade ,2001 Country Days Expenses $300 Conejo Insurance through Chamber of Commerce $1,800 $150 Offset by booth rental fee $850 $150 For Food Court $200 Adult volunteers working with Scouts, FBLA, or similar group $50 $100 Five at $20 each for event use such as First Aid, HQ $200 Need to rent, but would like to start buying for the future $3,800 $500 Cost should be offset by ticket sales $700 $1,200 $750 SUPPLIES $950 Postage $500 Printing, paper $75 Signs /banners $2,275 Miscellaneous /unknown Total Supplies C ,2001 Country Days Expenses $300 Conejo Insurance through Chamber of Commerce $1,800 $150 Offset by booth rental fee $850 $150 For Food Court $200 Adult volunteers working with Scouts, FBLA, or similar group $50 $100 Five at $20 each for event use such as First Aid, HQ $200 Need to rent, but would like to start buying for the future $3,800 $500 Cost should be offset by ticket sales $700 $1,200 $750 Conejo Insurance offered through Chamber $950 Partially offset by entrance fees $500 Band Boosters said they will help pay $75 $2,275 $204 Mail information to vendors, confirmations, etc. $350 $500 $225 Itmes such as chalk to mark lines, garbage bags, etc. $1,279 MISCELLANEOUS Additional Insured (city, sponsors, etc.) $250 Ice $175 Police Explorers $200 Truck rental $160 Country Days buttons $500 Contingency fund $1,000 Total Miscellaneous $2,285 PERSONNEL/OVERHEAD High Steet Directors Insurance $1,000 Phone line /voice mail $600 Temporary staff $480 Total Personnel $2,080 TOTAL EXPENSES r $12,919 INCOME Sponsorships (cash) $4,700 Vendors $4,750 Parade entries $1,700 Button sales $625 Game /ride ticket sales $900 Ice $250 TOTAL INCOME $12,925 2001 Country Days Expenses Conejo Insurance through Chamber of Commerce Offset by vendors Man barricades May be necessary to move equipment, straw, etc. Offset by sales For unanticipated higher expenses Estimate; waiting for quote Expected to be $50 /month for 12 months 10 hours /week for four weeks at.$12/hour (Chamber rate) We also have several in -kind sponsors for trash, ads, etc.