Item #02
Date: March 1, 2022
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Sapphire Group LLC Contract for 2022 and 2023
Recommendation:
Pass a Motion authorizing the City Manager 1) to enter into a contract agreement between the City of Marysville and Sapphire Group LLC to produce the 2022 and 2023 Peach Festival and Christmas Parade in an amount not to exceed $64,150 per year and 2) authorize the Finance Director to make a supplemental appropriation of $35,000 to 10-110-5255 (Peach Festival Expenses).
Rationale for Recommendation:
The City does not have a Special Events Department and/or the staff capacity to absorb producing these events “in house” and with existing City staff. The City contracted with Sapphire Group for these events in 2019 and 2021.
Background:
The Peach Festival and Christmas Parade are City events that are produced every year (for 22 years and 71 years, respectively). In 2019, City staff determined it to be most cost effective to employ a contractor to produce these events, especially since the City does not have a Special Events Department and/or capacity to produce these events with existing staff. Therefore, City staff recommend contracting with Sapphire Group to produce the annual Peach Festival and Christmas Parade.
Discussion & Analysis:
The proposal for 2022 and 2023 is outlined as follows based on the actual 2021 revenue and expenses.
A. RATE: In consideration of the Consulting Services to be performed by Consultant under this Agreement, Client will pay Consultant $64,150 ($50,650 for the Peach Festival and $13,500 for the Christmas Parade Events). Consultant will pay all expenses necessary for a successful festival/parade.
B. SPONSORSHIPS: The Consultant endeavors to raise a minimum of $25,000 for the Peach Festival and $12,000 for the Marysville Christmas Parade to be paid to the City. Any sponsorship dollars raised in excess of these endeavored amounts will be divided between the Client and the Consultant equally (50% to the Client and 50% to the Consultant).
C. EXPENSES: All marketing and professional services such as design, printing and advertising will be contracted and paid for by the Consultant. The Client acknowledges that any items held in their possession (umbrellas, umbrella bases, etc.) will be replaced at the Client’s expense if the items are Item #02
damaged or missing.
D. SCHEDULE: Payment schedule shall be as follows: March 2022 - $5,000; April 2022 - $10,000; May 2022 - $10,000; June 2022 - $10,000; July 2022 - $15,600; October 2022 - $2,500; November 2022 - $5,500 and December 2022 (following parade/tree lighting) - $5,500. Any sponsorship commissions or invoices for approved additional expenses, will be paid within 30 days of invoice receipt.
E. REVENUE: All Sponsorship Revenue, Entry and Vendor Fees that are collected by the Consultant will be forwarded to the Client in a timely manner (within 30 days of receipt).
F. HOURLY RATE: The hourly Consulting rate for approved, additional work not covered in this agreement is $100/hour.
Alignment with City Council Goals(s):
The proposed contract and resulting events are aligned with Goal #2: Expanding Economic Development Opportunities.
Fiscal Analysis:
The Peach Festival is a unique event, as the expense of the event will span over two fiscal years.
Additional funding of $35,000 is needed to cover the four payments due in March, April, May and June per the payment schedule. The funding for the remaining $15,600 for the Peach Festival and $13,500 for the Christmas Parade would be approved in the FY 2022-23 budget.
Attachment:
1) Consultant Agreement with Sapphire Group LLC for 2022 and 2023 2) Proposed Budget for Peach Festival and Christmas Parade