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To:
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Subject:
CITY OF CARMEL-BY-THE-SEA
Council Report
June 3, 2014
Honorable Mayor and Members of the City Council
Jason Stilwell, City Administrator
Janet Bombard, Library and Community Activities Director
Consideration of a resolution authorizing certain fiscal and time limits
with respect to special event fee waivers
Recommendation(s): Adopt the resolution authorizing certain fiscal and time limits with
respect to special event fee waivers
Executive Summary: The City continues to receive an increasing number of requests for event
fee waivers. In addition, a number of long-running events held within the
City have been asking for and receiving annual fee waivers and/or
reduced fees for years.
Fees are charged for special events to help offset costs for the
maintenance and upkeep of City property and facilities. Event fee waivers
result in a loss of revenue to the City for those purposes; therefore, the
City should have clearly defined criteria and limit the dollar amount
granted for fee waivers in any given fiscal year.
Analysis/Discussion: An Internet survey of city and municipal fee waiver policies indicates that
the overwhelming majority of cities grant special event fee waivers solely
to community-based nonprofit organizations, organizations that provide
educational and/or community programs and events that are open to the
general public free of cost, and events of which the city is a sponsor or
co-sponsor. Under those policies, fundraising events for which attendees
pay an admission fee, events in which vendors pay to participate, and
events put on by for-profit organizations and businesses typically are not
eligible for fee waivers.
The above criteria certainly give clear-cut direction with regard to
granting event fee waivers, but an argument can also be made for the
granting of fee waivers to for-profit events that bolster economic
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development or which attract visitors to the City. Therefore, it is not
recommended that the City limit itself to the policies outlined above, but
instead continues to entertain event fee waiver requests on a case-by-
case basis. Council could, however, give priority to the above criteria
when considering an event fee waiver.
Organizers of some ongoing events request annual fee waivers from
Council, and in certain cases have done so for years. It is staff's opinion
that Council should limit the number of years for which an organization
will be eligible for waivers of fees for the same event. While it takes time
to develop and establish a successful event, there comes a time at which
an event should be profitable and able to stand on its own. Staff
recommends that Counci l adopt criteria that limit ongoing event fee
waivers to no more than three years from the inception of an event.
This fiscal year to date, the City has taken in $30,000 in event fee
revenues; $38,691 in special event permit fees has been waived so far
this fiscal year. As mentioned above, special event fees offset the cost to
the City for the maintenance and upkeep of its properties and facilities. In
order to contain the costs to the City of special event fee waivers and
direct more funds toward offsetting the property and maintenance costs
associated with special events, Council might consider setting a cap of on
the total dollar amount of fee waivers authorized each fiscal year. Staff
recommends that the cap be set at $30,000, which would realize an
additional $8,000 to $10,000 a year for the costs incurred by the City for
hosting special events.
Some cities also impose a limit on the amount of fees that may be waived
for a special event. Individual Fiscal Year 2013/14 event fee waivers have
ranged from $4,635 to $12,636. The majority of the fee waivers were
between $5,000 and $7,500. Should Council want to consider such an
action, staff recommends a cap of $7,500 in fee waivers per event.
Staff further recommends establishing a line item in the Council
Discretionary budget for fee waivers. Doing so would make it easier for
both Council and staff to track the amount of fees waived.
Recap of recommendations with regard to special event fee waivers:
Priority will be given to community-based nonprofit organizations,
organizations that provide educational and/or community
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Fiscal Impact:
Budgeted (yes/no)
No
programs and events that are open to the general public free of
charge, and events of which the city is a sponsor or co-sponsor
Limit the number of years for which an organization will be
eligible for ongoing waivers of fees for the same event to three
years from the inception of the event
Set a cap of $30,000 on the total dollar amount of fee waivers
authorized each fiscal year.
Impose a limit of $7,500 in waived fees for an event
Establish a line item in the Council Discretionary budget in order
to track the amount of fees waived
This fiscal year to date Council has waived $38,691 in special event
permit fees. If Council adopts the recommendation to waive no more
than $30,000 per year in special event fees, the City would realize
approximately $10,000 per year in savings. Adopting the limit of no more
than three years of fee waivers for ongoing events and imposing a cap on
individual fee waivers will realize further savings for the City.
Funding Source( general fund, grant, state)
Council Discretionary Fund
Previous Council Action:
Decision History:
Reviewed by:
City Administrator City Attorney
Asst. City Admin.
Public Safety Dir
City Engineer
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Dir of CPB 0
Library & cA Dira
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Administrative Services 0
Dir of Public Svcs
Other
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CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2014-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING CERTAIN FISCAL AND TIME LIMITS WITH RESPECT TO
SPECIAL EVENT FEE WAIVERS
WHEREAS, the City continues to receive an increasing number of requests for event fee
waivers; and
WHEREAS, a number of long-running events held within the City have been asking for
and receiving annual fee waivers and/or reduced fees for years; and
WHEREAS, fees are charged for special events to help offset costs for the maintenance
and upkeep of City property and facilities; and
WHEREAS, event fee waivers result in a loss of revenue to the City.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA DOES:
1. Adopt the following criteria for fee waivers in any given fiscal year:
Priority will be given to community-based nonprofit organizations,
organizations that provide educational and/or community programs and
events that are open to the general public free of cost, and events of which
the city is a sponsor or co-sponsor
The number of years for which an organization will be eligible for
ongoing waivers of fees for the same event will be limited to three years
from the inception of the event
A cap of $30,000 will be set on the total dollar amount of fee waivers
authorized each fiscal year.
The amount of fees waived for an event will not exceed $7,500
A line item in the Council Discretionary budget will be established in
order to track the amount of fees waived
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-
BY-THE-SEA this 3rct day of June, 2014 by the following roll call vote:
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A YES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ATTEST:
Deanna Allen
Deputy City Clerk
SIGNED:
Jason Burnett, MAYOR
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