TO:
VIA:
FROM:
DATE:
Placentia Cit Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF COMMUNITY SERVICES
JUNE 6, 2023
AGENDA REPORT
SUBJECT: RECAP OF 2022 HERITAGE FESTIVAL AND APPROVAL OF 2023 EVENT FISCAL
IMPACT:
SUMMARY:
2022 EXPENSE: $110,619
2022 STAFF COST: $ 37,905
2022 SUPPLIES COST: $ 72,713
2022 REVENUE: $ 29,907
2023 EXPENSE: $122,900
REVENUE: $ 39,000
TOTAL EVENT COST
INCLUDES ALL CITY STAFF
GENERAL FUND
ESTIMATED SUPPLY/EQUIPMENT
EXPENDITURES FOR FY 2023-24
ESTIMATED
The Community Services Department ("Community Services") serves as the liaison to the Heritage Committee ("Committee") and monitors all expenses and revenues associated with the Heritage Festival and Parade. The total expenses of the 2022 event, including Staff costs, media production, and supplies was $110,619. Revenue from the event was generated from vendor applications, entry fees for the band review and the car show, donations/sponsorships, totaling $29,907. The net cost to the City for 2022 was $80,712 after applying revenues to the total cost of the event.
Given the increased costs and concern for safety of event participants, City staff, including representatives from Police, Fire & Life Safety, Community Services and Public Works have recently conducted a thorough review of the Heritage Festival planning and operations. It has become evident to Staff that the event requires the implementation of new policies and procedures to ensure a safer, better streamlined, and more fiscally efficient event. Staff has identified areas of most concern as the following: band review/parade route, significant increased subsidy by the City, the health and safety of all participants, a continued temperature warming trend, and a lack of diverse parade entries.
Following the City Staff's review of the event, a meeting was held with the Heritage Festival Committee to discuss the City's collective concerns and recommendations for the 2023 event.
Representatives from the Community Services Department, Police Department, Fire & Life Safety Department, and Public Works Department were all present to review the information with
3.a.
June 6, 2023
City Council Agenda
June 6, 2023
Committee members. During the discussion, Staff and the Committee agreed that improvements are necessary to achieve a more organized and streamlined event, decrease City subsidy, and address concerns of health and safety of all event participants. In response to the above identified concerns, Staff and the Committee recommend the following areas for improvements:
• Shortening of the Parade Route
• Implementation of the Heat Index Policy
• Increased Vendor/Participant Fees
• Implementation of Sub -Committees
• Increased solicitation of sponsorships
• Increased Staff involvement in Parade logistics
• Encourage greater community involvement
Also included in this request is a tentative event date of Saturday, October 14, 2023, with estimated expenditures of $122,900, for supply and staff costs based on the 2022 event actual expenditures and utilizing an estimated increase in costs for goods and services This action approves the recommended improvements and estimated expenditures for supplies and staff costs to operate the event.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Review the proposed recommendations presented by Staff and the Heritage Festival Committee and provide feedback; and
2 Approve the recommendations from Staff and the Heritage Festival Committee for the 2023 Heritage Festival and Parade event; and
3 Approve the request for the City to fund $122,900 in supply and staffing costs for the 2023 Heritage Festival to be allocated in the Fiscal Year 2023-24 budget.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
DISCUSSION:
The Heritage Festival and Parade has been a staple in the community for over 50 years. The 2023 event will mark its 58th anniversary. Given its long-standing history, Staff, and the Heritage Festival Committee ("Committee") recognize the importance of this beloved community event and find that the recommended changes to the 2023 event, will not only address health, safety, and fiscal concerns, but will also encourage more community involvement, and enhance an overall sense of community pride.
City Council Agenda
June 6, 2023
The 2022 event followed particularly challenging years during the COVID-19 pandemic. The 2022 event featured over 100 cars in the car show, over 30 bands in the band review, 40 parade entries, 11 food vendors, 32 nonprofit vendors, 14 craft vendors and 21 Home Based/Business Expo vendors.
While the 2022 event was well attended, a rise in expenditures and a decrease in revenues has continued to affect the overall event. The City's net cost for the event has steadily increased over the last 6 years. In 2016, revenue generated from the event totaled $42,434 and total expenditures were $68,744. The net cost to the City in 2016 was $26,309. Revenue generated for the 2016 event covered approximately 61% of the total event costs. In comparison, from 2019-2022, revenue has decreased. The increased costs of materials, supplies, and services needed for the operation of the event, combined with a decrease in event revenue, and lingering effects from the COVID-19 pandemic, have resulted in a greater subsidy to the City. In 2022, revenue generated from the event, covered approximately 27% of total event costs. Overall, from 2016 to 2022, the City's subsidy of the event has grown by approximately 34%.
An additional area of concern is the rising temperature trend over the last several years. The health and safety of everyone, specifically the band members, has become an increasingly bigger concern. In 2015, the weather for that event date was well over 100 degrees, which resulted in over 50 calls for services for heat exhaustion of band members, festival attendees, and parade spectators. The record volume of calls for emergency services initiated mutual aid and ultimately resulted in the shutting down of the entire event. In 2022, the high temperature was 79 degrees.
While the temperature was lower than in 2015, the relative humidity coupled with the black pavement, provided for a much warmer day and still resulted in 11 calls for heat related emergencies.
The total parade route distance in 2022 was 1.10 miles. The parade began at the intersection of Kraemer Boulevard and Yorba Linda Boulevard. The parade started at 9:15 a.m. and traveled north on Kraemer Boulevard in the southbound lanes, ending at the Festival location at Tri -City Park. The band review began at 9:00 a.m. at Palm Drive and Yorba Linda Boulevard. The bands traveled west on Yorba Linda Boulevard and fed into the parade north on Kraemer Boulevard, ending at the Festival location at Tri -City Park. The non -competing bands were staged in the westbound lanes of Yorba Linda Boulevard and the competing bands staged in the eastbound lanes of Yorba Linda Boulevard. The bands joined the main body of the parade at the intersection of Kraemer Boulevard and Yorba Linda Boulevard. The total distance of the band review portion of the parade was 0.38 miles.
In response to the above identified concerns, Staff and the Committee present the following recommendations for consideration for the 2023 event:
1. Parade/Band Review Route
• 2022 Event — 1.10 miles (Parade)
• 2022 Event — 0.38 miles (Band Review)
• 2023 Recommendation — 0.5 miles (Parade)
• 2023 Recommendation — 0.38 miles (Band Review)
City Council Agenda
June 6, 2023
• Incorporate "Parade Spacers" to keep the pace of the parade at a maximum of a 50ft distance between entries to reduce gaps and maintain equal distance between entries at all times
It is recommended the 2023 event parade route begin at Kraemer Boulevard and Bastanchury Road and travel north in the southbound lanes. The Band Review and staging shall be conducted on the westbound lanes of Bastanchury Road between Kraemer Boulevard and Valencia Avenue. Parade entries will be staged on Kraemer Boulevard, south of Bastanchury Road. The bands will join the main body of the parade at the intersection of Kraemer Boulevard and Bastanchury Road.
2. Implementation of the Heat Index Policy
• The Heat Index Policy shall be presented and reviewed with all Band Directors who wish to participate, prior to the event at a mandatory meeting • As described in the Heat Index Policy, at or above 90 degrees, bands will be required to "dress down" for the parade and competition portion of the event • Bands will be required to march without jackets, capes, and shacko hats • City Staff will be responsible for enacting the Heat Index Policy four (4) days in advance of the event based upon weather information and data • Failure to comply with the Heat Index Policy, shall result in removal from the event
3. Increased Revenue: Vendor/Participant Fees
Vendor/Participant
2022 Fees 2023 Recommendation
Band Review Entry
Beer Garden Vendor
Business Vendor
Car Show Entry
Car Show Vendor
Craft Vendor
Food Vendor (Resident Non -Profit)
Food Vendor (Non -Resident Non -Profit)
Food Truck/Commercial
Game/Activity Vendor
Homebased Business
Non -Profit Vendor
Pancake Breakfast Vendor
Parade Entry
$200
$200 — PYLUSD Band
$250 — All other bands
$250 30/70 Split with a Resident Non -Profit
Group (City retains 30%)
$1,250 — All other vendors
$250-$2000
$500-$5,000 (Based upon sponsor
level)
$40 $40
$45, after Oct. 1 $45, after Oct. 19
$70 $100
$95 $150
$220 $220
$275 $275
$380 $500
$95 $95 (Not collecting fees)
$150 (Collecting fees)
$95 $150
$40 $125
$250 Same rates as food vendors
$25 $25
City Council Agenda
June 6, 2023
By increasing vendor/participant fees and soliciting greater event sponsorships, it is anticipated that overall revenue would increase to approximately $39,000. Utilizing an average of the last 6 years of event revenues and expenditures, Staff anticipates cost recovery for the 2023 event could reach 32%. Resulting in a 5% increase from the 2022 event.
While the goal for cost recovery is to eventually reach 50%, Staff and the Committee recommend adjusting the fees gradually. Vendor and participant fees have not been adjusted in many years and to ensure continued participation of long-standing vendors and participants, it is recommended that the fees increase incrementally until the 50% cost recovery goal is reached.
Activities proposed for the 2023 event will continue to include a craft fair, food vendors, business expo, game area, display booths, beer and wine garden, concert, car show, and entertainment.
The pancake breakfast will begin at 7:00 a.m. The Band Review will begin at 9:00 a.m. and the Parade will begin at 9:30 a.m. with the other Festival activities scheduled to begin at 10:00 a.m. and conclude at 4:00 p.m. Once City Council direction is provided, the planning process for the 2023 Festival will continue over the next several months including choosing an event theme.
By shortening the parade route, encouraging an increase in community -oriented parade entries, and implementation of the Heat Index Policy, Staff anticipates a much steadier flow to the parade, while also addressing health and safety concerns of band members, parade entries, spectators, and festival attendees. Additionally, soliciting greater sponsorships and increasing vendor/participant fees will provide for improved fiscal efficiencies, and will address the continued increase in subsidy of the event. It is anticipated that these changes will improve the overall implementation and operation of the event. For these reasons, Staff and the Committee respectfully submit the recommended changes for consideration for the 2023 Heritage Festival and Parade event.
FISCAL IMPACT:
The 2022 Festival and Parade generated $29,907 in revenue through participation fees, vendor fees, and various sponsorships and donations. Total expenses amounted to $110,619. The 2023 funding request for general event supplies/equipment and staffing costs is $122,900 to be allocated in the General Fund Budget for FY 2023-24. It is anticipated there will be an increase in revenue to help offset the total costs of the event.
Prepared by: Reviewed an4Approved by:
Veronica Ortiz
Community -Services Suisor
Karen Crocker
Director of Com
nity
kr y-r,y, C
e ices
City Council Agenda
June 6, 2023
Reviewed and approved by:
Jennifer Lampman
Director of Finance
Reviewed and approved by:
Damien R. Ar—__i-
City Administrator
Attachments:
1. 2022 Event Expense Sheet
2. Heritage Festival PowerPoint Presentation
3. Heat Index Policy
4. Marching Band Policy