Administrative
Report
H.18., File # 22-4698 Meeting Date: 9/6/2022
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
APPROVE THE THIRD AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT FOR
SPECIAL EVENT SERVICES AND REVOCABLE LICENSE FOR THE USE OF REAL PROPERTY BETWEEN SANFORD VENTURES, INC. AND THE CITY OF REDONDO BEACH AMENDING THE
OPERATING HOURS, FACILITY USE FEE, NUMBER OF PUBLIC PARKING SPACES MADE
AVAILABLE FOR USE BY THE FESTIVAL, AND REIMBURSEMENT OF MUNICIPAL EXPENSES ASSOCIATED WITH THE BEACHLIFE FESTIVAL FOR THE TERM SEPTEMBER 6, 2022 TO DECEMBER 31, 2022.
EXECUTIVE SUMMARY
The proposed Third Amendment to the Amended BeachLife License Agreement includes five primary changes that would apply to the Festival scheduled for September 16-18, 2022. These changes include: setting the end time for amplified music to 9:00 pm on Sunday and 10:30 pm on Friday and Saturday, increasing the Daily Facility Use Fee to $15,000, increasing the reimbursement to the City for municipal services and safety costs to $65,000, increasing the cost and number of optional/additional public surface parking spaces made available for use by the festival to $5,000 and 117 spaces respectively, and allowing 18 metered parking stalls along Francisca Avenue available for use by the festival for a three day period at a rate of $75 per day.
BACKGROUND
On December 19, 2017, the Redondo Beach City Council approved an agreement with Sanford Ventures, Inc. entitled, "Agreement for the Special Event Services and Revocable License for the Use of Real Property" (Agreement) for the production of the BeachLife Festival. On September 4, 2018, the City Council approved an “Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property” (Amended Agreement) to generally amend the term of the Agreement and to allow for bi-annual festivals (twice per year).
On September 7, 2021, the City Council approved an agreement with Sanford Ventures, Inc. entitled, “First Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of the Real property” (First Amendment). The Amendment included two primary changes that applied only to the BeachLife Festival scheduled for September 10-12, 2021. The first change was the extension of the ending time for amplified music from 9:00pm on Friday and Saturday to 10:30 pm and extension of the ending time for amplified music on Sunday from 8:00 pm to 10:30 pm. The second change was to increase the reimbursement to the City for
H.18., File # 22-4698 Meeting Date: 9/6/2022
municipal and public safety costs per festival from $36,000 to a maximum of $65,000.
The term of the First Amendment was for September 7, 2021 to February 2, 2022 at which time the Amendment terminated and the parties reverted back to the provisions set forth in the Amended Agreement for the items listed above. All other provisions of the Amended Agreement remain unchanged and in full force and effect.
On April 19, 2022, the City Council approved an agreement with Sanford Ventures, Inc. entitled “Second Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of the Real property” (Second Amendment). The amendment included four primary changes that applied only to the BeachLife Festival scheduled for May 13-15, 2022. The changes included:
1. Setting the ending time for amplified music to 9:00 pm on Sunday and 10:30 pm on Friday and Saturday.
2. Increasing the Daily Facility Use Fee from $9,265 to $12,000.
3. Increasing the reimbursement cap to the City for municipal and public safety service costs from $36,000 to $65,000 per festival.
4. Increasing the producer’s option to buy-out public parking spaces in the marina parking lot from 45 parking spaces (at a cost of $720) to 117 parking spaces, (depicted in Exhibit “A”) for a cost of $5,000 ($4,000 paid to the City and $1,000 paid to the King Harbor Association) for the three-day period.
The term of the Second Amendment was for April 19, 2022 to July 31, 2022 at which time the Amendment terminated and the parties reverted back to the provisions set forth in the Amended Agreement for the items listed above. All other provisions of the Amended Agreement remain unchanged and in full force and effect.
The proposed “Third Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property” (Third Amendment) includes five primary changes that would apply only to the BeachLife Festival scheduled for September 16-18, 2022. Specifically, the proposed amendment:
1. Setting the ending time for amplified music to 9:00 pm on Sunday and 10:30 pm on Friday and Saturday.
2. Increasing the Daily Facility Use Fee from $9,265 to $15,000.
3. Increasing the reimbursement cap to the City for municipal and public safety service costs from $36,000 to $65,000 per festival.
4. Increasing the producer’s option to buy-out public parking spaces in the marina parking lot from 45 parking spaces (at a cost of $720) to 117 parking spaces, (depicted in Exhibit “A”) for a cost of $5,000 ($4,000 paid to the City and $1,000 paid to the King Harbor Association) for
H.18., File # 22-4698 Meeting Date: 9/6/2022
the three-day period.
5. Providing the producer’s option to buy-out 18 metered public parking spaces along Francisca Avenue (depicted in Exhibit “A”) at a cost of $75 per day for the three-day period.
If approved, the term of the Third Amendment would be from September 6, 2022 to December 31, 2022. All other provisions of the Amended Agreement will remain unchanged and in full force and effect.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Manager’s and City Attorney’s Offices on this report. The City Attorney’s Office has approved the amendment as to form.
FISCAL IMPACT
The Third Amendment requires a payment to the City of a Daily Use Facility Fee of $15,000 per day for use of the property ($45,000 for the three-day period), which will be split between the Harbor Uplands Fund and Harbor Tidelands Fund. If the Producer rents the additional one hundred and seventeen (117) parking spaces as anticipated, an additional $4,000 will be paid to the Harbor Uplands Fund and $1,000 will be paid to the King Harbor Association. Payment for use of the 18 metered public parking spaces along Francisca Avenue of $225 ($75 per day) and the increased reimbursement of municipal and public safety costs of $65,000 will accrue to the City’s General Fund.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Third Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property
· Third Amendment Exhibit “A”
· Agmt - Second Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property, April 19, 2022 · Second Amendment Exhibit “A,” April 19, 2022
· Agmt - First Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property, September 7, 2021 · Agmt - Amended and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property, September 4, 2018