CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Ron Rivera, Parks and Recreation Director
DATE: November 1, 2022
SUBJECT: Sea Country Festival 2022 Event Summary
RECOMMENDATION
Staff recommends that the City Council:
1. Determine if there should be a Sea Country Festival in Fiscal year 23/24.
2. If there is to be a festival:
a. Determine if the Sea Country Festival will be a one-day or three-day event and decide if a multi-year agreement would be beneficial. b. Provide direction to staff on developing a policy for the allocation of community booths at the event if held in the future
BACKGROUND
The City of Laguna Niguel hosted the three-day Sea Country Festival from Friday, August 26, 2022, through Sunday, August 28, 2022. A post event summary report was presented to the City Council during the October 4th City Council meeting. After discussion, the City Council directed staff to return at a future meeting to present cost estimates for a one-day event and a three-day event, and to provide information on a multi-year carnival vendor agreement.
ANALYSIS
The City contracts with a carnival company to operate the festival attractions. The carnival company provides the rides and equipment at no cost to the City. The Company collects ticket sales and provides the city with a portion of the proceeds of the ticket sales at a sliding scale of 15% for the first $100,000 in sales. The carnival company will only commit to this partnership with the City if the Sea Country Festival is held over a 3-day period. A one-day event requires that the City rent the equipment directly from the company and operate the ticket booths. In this scenario, the city would keep one hundred percent of the sales.
Community Booths:
Community Booths would be available at either version (1 day/3 day) of the Sea Country Festival. If the City Council determines that an annual Sea Country Festival should be held, staff recommends that the City Council also provide direction regarding a policy that prioritizes or reserves the booth space for certain types of organizations, such as non- profit organizations and/or businesses that are based in Laguna Niguel.
Multi-Year Agreement:
The City Council requested that staff engage with the Carnival company regarding entering into multi-year agreement with the City. The Carnival company shared that they would enter into a multi-year agreement with the City if the Sea Country Festival is scheduled for multiple days, for no less than two years. This not only ensures the dates for the event and the availability of the attractions, but it also increases the likelihood of revenue streams for ticket sales to increase for the vendor due to event recognition and return participants. This leads to a greater revenue for the City in the area of ticket sales.
With a multi-year agreement in place for the Carnival company, staff can then build upon the sponsorship and booth area to incorporate multi-year agreements in these areas as well, also leading to increased revenue for the City.
With a one-day event the Carnival company will not enter into a multi-year agreement.
They will instead enter into an annual agreement, then each year update costs and availability for the festival attractions.
Other:
The concept of slightly modifying/reducing operating hours during the earlier (generally hotter) part of the day was also discussed by the City Council. While this minor shift may result in a slight decrease to staffing and entertainment costs, it may also result in a decrease in ticket sales and vendor sales.
ALTERNATIVES CONSIDERED
An alternative is that the City Council may decide not to host an annual Sea Country Festival.
FISCAL REVIEW
The tables presented below show the cost of a one-day and a three-day festival.
One-Day Sea Country Festival Event:
Expenditure Category 2023 Estimated Expenditures
Entertainment
(Bands, DJs, Entertainers) $7,000
Professional Services: $22,500
(Police Services, Public Works, Security, Porter)
Marketing/Promotion $2,500
Rentals
(Stage and Sound, Tents, Tables, Restrooms, Rides) $76,500 Supplies $1,500
Staffing Costs $3,500
TOTAL EXPENDITURES $113,500
2023 Estimated Revenue
Revenue Category
Sponsorships $5,000
Booth Spaces $3,000
Net Ticket Sales $40,000
TOTAL REVENUE $48,000
One-Day Event Net Cost Total:
2023 Estimated Expenditures Total $113,500
2023 Estimated Revenue Total $48,000
ESTIMATED NET COST $65,500
Three-Day Sea Country Festival Event:
Expenditure Category 2023 Estimated Expenditures
Entertainment
(Bands, DJs, Entertainers) $17,000
Professional Services $38,000
(Police Services, Public Works)
Marketing/Promotion $5,000
Rentals $39,000
Supplies $3,000
Staffing Costs $7,000
TOTAL EXPENDITURES $109,000
2023 Estimated
Revenue Category Revenue
Sponsorships $19,000
Booth Spaces $5,000
Net Ticket Sales $15,000
TOTAL REVENUE $39,000
Three-Day Event Net Total Cost:
2023 Estimated Expenditures Total $109,000
2023 Estimated Revenue Total $39,000
ESTIMATED NET COST $70,000
The estimated net cost to the city to host a one-day Sea Country Festival event is $65,000. The estimated net cost to the city to host a three-day Sea Country Festival event is $70,000.
If the City Council directs staff to move forward with either version of the Sea Country Festival, staff recommends that the total amount included in the FY 23/24 budget be $120,000 to cover any unanticipated costs or reduced revenue.
Additionally, and for comparison purposes, the information included in Attachment A, demonstrates the cost and attendance of major citywide events.
LEGAL REVIEW
No legal review is required for this report.
CONCLUSION
Staff recommends that the City Council:
1. Determine if there should be a Sea Country Festival in Fiscal year 23/24.
2. If there is to be a festival:
a. Determine if the Sea Country Festival will be a one-day or three-day event and decide if a multi-year agreement would be beneficial. b. Provide direction to staff on developing a policy for the allocation of community booths at the event in the future
Jamara & Betonican Ere Pendickson
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
Ron Rivera Jonathon Harmon
Parks and Recreation Director Recreation Manager
Attachment:
A. Cost and Attendance of Major Citywide Events
ATTACHMENT A
Cost and Attendance of Major Citywide Events
Citywide Events Cost & Attendance
Event Cost Estimated Attendance
4th of July $74,000 1,500
*Citywide viewing
Summer Concert Series $6,500 per 1,250 per concert
(8 concerts) concert
Tree Lighting $18,000 1,000
Holiday Parade $50,000 6,000 to 10,000