Item #07
Date: March 15, 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 4 th of July Events
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 4 th of July Events in an amount not
to exceed $6,000 per year and 2) authorize the Finance Director to make a supplemental appropriation of $6,000 to 10-190-5165 (Professional Services).
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.
Background:
The Yuba-Sutter Community 4th of July Event is produced every year. Until July of 2018, the city employed a full- time events coordinator who produced multiple city events for the prior 10 years.
Upon the coordinator’s departure from the City, it was determined to be more time and cost effective to employ a contractor to produce the events, especially since the City does not have a Special Events Department and/or the capacity to produce these events with existing staff. Therefore, City staff recommend contracting with Sapphire Marketing Group to produce the Yuba-Sutter Community 4th of July Event.
Discussion & Analysis:
The following are the proposed terms of the contract:
A. RATE: Client will pay Consultant $6,000 per year.
B. SPONSORSHIPS: The Consultant endeavors to raise a minimum of $38,750 per year for the Yuba-Sutter Community July 4th Event. Any sponsorship dollars raised in excess of this minimum amount 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. Proposed 2022 budget is attached as Exhibit A.
Item #07
The Client agrees to pay Pyro Spectacular contract directly to the contractor. Consultant will pay all other external event related expenses.
D. SCHEDULE: Payment schedule shall be as follows: Client will be invoiced for $6,000 for misc. expenses on June 15, 2022, due within 30 days of receipt. Any sponsorship commissions or invoices for approved additional expenses, will be paid within 30 days of invoice receipts.
E. REVENUE: All Sponsorship Revenue 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:
Staff is recommending authorizing the Finance Director to make a supplemental appropriation of $6,000 to 10-190-5165 (Professional Services) to cover the cost to produce the event for 2022.
Attachments:
1) Consultant Agreement with Sapphire Group LLC for 2022 and 2023 2) Proposed Budget for 4
th of July Event