Administrative
Report
H.8., File # 23-5845 Meeting Date: 4/11/2023
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR TITLE
APPROVE THE FOURTH AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT FOR
SPECIAL EVENT SERVICES AND REVOCABLE LICENSE FOR THE USE OF REAL PROPERTY FOR THE BEACHLIFE FESTIVAL BETWEEN SANFORD VENTURES, INC. AND THE CITY OF
REDONDO BEACH AMENDING THE OPERATING HOURS, FACILITY USE FEE, NUMBER OF
PUBLIC PARKING SPACES USED BY FESTIVAL OPERATORS, AND THE REIMBURSEMENT OF
MUNICIPAL EXPENSES ASSOCIATED WITH THE FESTIVAL FOR TWO EVENTS TO OCCUR DURING THE TERM APRIL 11, 2023 THROUGH DECEMBER 31, 2023
EXECUTIVE SUMMARY
The proposed Fourth Amendment to the Amended BeachLife License Agreement includes eight primary changes that would apply to two Festival events in 2023. The first Festival is scheduled to occur May 5-7, 2023, and the second Festival is anticipated to occur in late September 2023. The changes include: 1) setting the end 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 to $15,450 per day for the May Festival and $15,913 per day for the September Festival, 3) increasing the reimbursement to the City for municipal services and safety costs to $68,250 for both Festival events, 4) providing the Producer the option of up to seven additional load-in days for an additional $1,000 per day, 5) allowing the use of up to 200 parking spaces within the Pier Parking Structure for an additional $20 per day, per stall, 6) increasing the cost and number of optional/additional public surface parking spaces within the marina parking lot made available for use by the festival to $5,000 and 117 spaces respectively, 7) allowing the use of the surface parking lot at the old Joe’s Crab Shack site for $500 per day, and 8) exempting “Roctoberfest” from the radius clause to allow the event to occur within the festival exclusion period.
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 First Amendment only
H.8., File # 23-5845 Meeting Date: 4/11/2023
applied to the BeachLife Festival scheduled for September 10-12, 2021. The two changes included:
1. Setting the ending time for amplified music from 9:00 pm on Friday and Saturday to 10:30 pm and from 8:00 pm to 10:30 pm on Sunday.
2. Increasing the reimbursement to the City for 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 First Amendment terminated and the parties reverted back to the provisions set forth in the Amended Agreement for the aforementioned items above.
On April 19, 2022, the City Council approved a second agreement with Sanford Ventures, Inc. entitled “Second Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for 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. These changes included:
1. Setting the ending time for amplified music from 9:00 pm on Friday and Saturday to 10:30 pm and from 8:00 pm on Sunday to 9:00 pm.
2. Increasing the reimbursement cap to the City for municipal and public safety service costs from $36,000 to $65,000.
3. Increasing the Daily Facility Use Fee from $9,265 to $12,000.
4. Increasing the producer’s option to buy-out public parking spaces in the marina surface parking lot from 45 parking spaces (at a cost of $720) to 117 parking spaces for a cost of $5,000 ($4,000 paid to the City and $1,000 paid to the King Harbor Association) for the threeday period.
The term of the Second Amendment was for April 19, 2022 to July 31, 2022 at which time the Second Amendment terminated and the parties reverted back to the provisions set forth in the Amended Agreement for the four items mentioned above.
On September 6, 2022, the City Council approved a third agreement with Sanford Ventures, Inc. entitled “Third Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for Use of the Real Property” (Third Amendment). The Third Amendment included five primary changes that applied only to the BeachLife Festival scheduled for September 16-18, 2022. The changes included:
1. Setting the ending time for amplified music from 9:00 pm on Friday and Saturday to 10:30 pm and from 8:00 pm on Sunday to 9:00 pm.
2. Increasing the reimbursement cap to the City for municipal and public safety service costs from $36,000 to $65,000.
3. Increasing the Daily Facility Use Fee from $9,265 to $15,000.
4. Increasing the producer’s option to buy-out public parking spaces in the marina surface parking lot from 45 parking spaces (at a cost of $720) to 117 parking spaces for a cost of $5,000 ($4,000 paid to the City and $1,000 paid to the King Harbor Association) for the threeday period.
5. Providing the producer’s option to buy-out 18 metered public parking spaces along Francisca Avenue at a cost of $75 per day for the three-day period.
H.8., File # 23-5845 Meeting Date: 4/11/2023
The term of the Third Amendment was for September 6, 2022 to December 31, 2022 at which time the Third Amendment terminated and the parties reverted back to the provisions set forth in the Amended Agreement for the five items mentioned above.
The proposed “Fourth Amendment to the Amended and Restated Agreement for Special Event Services and Revocable License for Use of the Real Property” (Fourth Amendment) includes eight primary changes that would apply to two BeachLife Festival events in 2023. The first Festival is scheduled to occur May 5-7, 2023 and the second Festival is anticipated to occur in late September 2023. The proposed changes are as follows:
1. Setting the ending time for amplified music from 9:00 pm on Friday and Saturday to 10:30 pm and from 8:00 pm on Sunday to 9:00 pm.
2. Increasing the reimbursement cap to the City for municipal services and safety costs to $68,250 for both Festival events.
3. Increasing the Daily Facility Use Fee from $9,265 to $15,450 per day for the May Festival and $15,913 per day for the September Festival.
4. Increasing the producer’s option for utilizing parking spaces in the marina surface parking lot from 45 parking spaces (at a cost of $720) to 117 parking spaces 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.
5. Providing the Producer the option of up to seven additional load-in days for an additional $1,000 per day.
6. Allowing the use of up to 200 parking spaces within the Pier Parking Structure for an additional $20 per day, per stall for the three-day period of each Festival.
7. Allowing the use of the surface parking lot at the old Joe’s Crab Shack site for $500 per day.
8. Exempting “Roctoberfest” from the radius clause to enable the event to occur within the normal festival exclusion period.
If approved, the term of the Fourth Amendment would be from April 11, 2023 to December 31, 2023.
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 approved the amendment as to form.
FISCAL IMPACT
The Fourth Amendment requires payment to the City of a Daily Use Facility Fee of $15,450 per day for the May Festival ($46,350 for the three-day period) and $15,913 per day for the September Festival ($47,739 for the three-day period). The Producer also has the option to utilize up to seven additional load-in days for an additional payment of $1,000 per day (up to $7,000), all of which will be split between the Harbor Uplands Fund and Harbor Tidelands Fund. In addition, the Producer will rent an additional one hundred and seventeen (117) surface parking spaces for an additional $4,000 to be paid into the Harbor Uplands Fund and $1,000 to be paid to the King Harbor Association.
Payment for use of up to 200 parking spaces within the Pier Parking Structure for an additional $20 per stall per day (up to $12,000 for each Festival) will be paid into the Harbor Uplands Fund.
Payment for use of the former Joe’s Crab Shack surface parking lot of $500 per day ($1,500 per
H.8., File # 23-5845 Meeting Date: 4/11/2023
Payment for use of the former Joe’s Crab Shack surface parking lot of $500 per day ($1,500 per Festival) will be paid into the Harbor Tidelands Fund and the increased reimbursement of municipal and public safety costs of $68,250 for each Festival will accrue to the City’s General Fund.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Proposed Fourth Amendment to BeachLife Festival · Exhibit - Fourth Amendment Exhibit “A”
· Agmt - Third Amendment to BeachLife Festival, September 6, 2022 · Exhibit - Third Amendment Exhibit “A”
· Agmt - Second Amendment to BeachLife Festival, April 19, 2022 · Exhibit - Second Amendment Exhibit “A”
· Agmt - First Amendment to BeachLife Festival, September 7, 2021 · Agmt - Amendment and Restated Agreement for Special Event Services and Revocable License for the Use of Real Property, September 4, 2018