Item No. 2
Town of Atherton
CITY COUNCIL STAFF REPORT – STUDY SESSION
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
DATE: JANUARY 10, 2024
SUBJECT: PROVIDE DIRECTION TO STAFF REGARDING EVENT
MANAGEMENT SERVICES AT HOLBROOK-PALMER PARK
RECOMMENDATION
It is recommended that the Council provide direction to staff regarding the provision of event management services at Holbrook-Palmer Park.
BACKGROUND
Catered Too, Inc. had been providing event management services for the Town since September 2021. The services contract was for an initial term of three (3) years, with a 30-day termination clause. Catered Too’s compensation was based on revenue generated through catering services associated with events at the park. On November 1, 2023, Catered Too advised the Town that they would stop providing event management services starting December 31, 2013. They stated in their letter that since COVID-19, they have not seen the volume of business at the park needed for profitability.
Prior to the contract with Catered Too, Catering by Dana (CBD) had successfully provided event management services for the Town from 2014 until September 2020, when they closed permanently. CBD’s compensation was based on a percentage of facility rental fees associated with events at the park.
Following receipt of Catered Too’s notice, staff attempted to retain Catered Too by suggesting alternative compensation options including sharing of rental revenues (similar to CBD’s contract) a percentage of revenue or extending the termination date by paying for staff time. Catered Too advised that with limited rentals, a share of facility fees would not generate enough revenue for support and that they could provide up to 3 months of support at a cost of $6,000 per month for up to three months but that they had other priorities for the staff that were managing park events. Due to cost, staff did not accept the offer for interim staff support from Catered Too.
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8 ANALYSIS
To maintain the availability of rental facilities and services at Holbrook-Palmer Park, the Town requires the services of an event manager to be responsible for the marketing of the park facilities, cleaning of event facilities, and management of the events in accordance with Town requirements.
The following options are presented for Council consideration:
1. Closing. The Council may elect to stop the marketing of Holbrook-Palmer Park and close the facilities to outside reservations. The cleaning services provided by the contract would need to be picked up by the Town. The Town could do this for a temporary period to focus on facility renovations; and/or the Town could choose to do so permanently and provide only limited rental opportunities as a venue (such as renting only the North Meadow or renting only picnic areas).
2. Request for Proposal. The Town could seek to enter into an agreement with an event management company or provider. Staff would release a Request for Proposals (RFP) for event management services to solicit proposals from interested parties. In 2014, when the Town issued its RFP for event management services, one response was received. In 2020, when the Town issued its RFP for event management services, we were in the midst of the COVID-19 pandemic, significantly restricting public gatherings and events. One proposal was received at that time. Though the pandemic is over, it is unclear what type or level of responses the Town may receive at this time.
3. Interjurisdictional Agreement. The Town could explore a partnership with a neighboring jurisdiction for management of event facilities. Redwood City and Menlo Park both provide facility rentals and there may be an opportunity to partner with them for management of rentals at Holbrook-Palmer Park. It is unclear if neighboring jurisdictions will be willing to partner and provide the level of service that the Town desires with regards to facility rentals and event management. Nor is it clear that this option would provide the same level of financial benefit to the Town.
4. Town Staff. The Town could hire permanent staff, either full-time or part-time to manage events at Holbrook-Palmer Park. A new Event Manager position could be created to manage tours, bookings, payments, coordination, and oversight of events.
Under this scenario, the Town would be fully responsible for marketing and managing events. The individual hired could also take on additional duties as assigned (such as responsibility for the Park and Recreation Committee, Pickleball Management, and/or provide general admin support in Public Works, etc.).
Previously, maintaining Holbrook-Palmer Park and its facilities as a premium location for events has been a priority for the Council. Active marketing and management are important in that effort.
Issuance of an RFP and evaluation of proposals will require time as would discussion and negotiation with a potential interjurisdictional partner. Similarly, the option of creating and staffing a new position could also take several months. In the interim, it is recommended that new reservations be closed until a permanent Event Management company is selected or staff hired.
An alternate interim option would be to hire a temporary employee to manage events until a Event Management Services at HPP
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8 permanent solution is in place.
RFP
A draft Request for Proposals is included as an attachment to this staff report for Council input should such a solicitation be desired. Staff would return at a future meeting for approval of the RFP and authorization to release.
The initial contract term proposed in the RFP is three (3) years with two (2) optional two (2) year terms. The total term of the proposed contract, including extensions, is seven (7) years.
The recommended scoring criteria outlined in the RFP are as follows:
CRITERION MAXIMUM
NUMBER OF POINTS
Information/Background 10
Key Personnel/Staff Qualifications 10
Experience/Reference 10
Quality of Work Plan Submitted 30
Cost Share Proposal 40
Total 100
The tentative milestone dates for the RFP are as follows:
February 1, 2024 RFP available on Town of Atherton website March 5, 2024, 2:00 pm Pre-proposal site walkthrough
April 9, 2024, 2:00 pm Proposals due
May 15, 2024 Recommendation to City Council
FISCAL IMPACT
Facility rental revenue for the current fiscal year have been limited and it is unclear the extent to which rentals would improve without marketing support. The costs related to preparation and distribution of an RFP are limited.
Historical Park revenue against Park expenses are as follows (not including tennis):
Fiscal Year Park Revenues Park Expenses Net
FY 2017/18 $303,188 $529,015 ($225,827)
FY 2018/19 $298,366 $570,012 ($271,646)
FY 2019/20 $255,861 $713,726 ($457,865)
FY 2020/21 $97,271 $683,200 ($589,294)
FY 2021/22 $231,545 $820,838 ($589,293)
FY 2022/23 $229,742 $846,478 ($616,735)
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8 GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
Goal Area B – Preserve Small Town Character and Quality of Life Goal Area F – Be Forward-Thinking, Well-Managed, and Well-Planned
POLICY FOCUS
Policy focus should be on the intent of maintaining facility rentals and event management services for facilities at Holbrook-Palmer Park and means by which the Council would like to provide such services.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. Catered Too, Inc. Termination Letter
2. Draft Request for Proposals