REPORT TO COUNCIL
SUBJECT
Title
Consideration of Authorization for City Manager to Negotiate and Execute an Agreement with Rotary Foundation to Support the Silicon Valley Barbeque Championships Event
Report
BACKGROUND
In June 2012, the inaugural Silicon Valley Barbeque Championships (SVBBQC), a sanctioned Kansas City Barbeque Society (KCBS) event, was produced by the Santa Clara Rotary Foundation, formerly known as Rotary International of Santa Clara and Rotary Club of Santa Clara, (Rotary) and held in the former Mervyn’s Plaza parking lot at the corner of El Camino Real and Scott Boulevard. Rotary approached the City for support and use of Central Park. On December 4, 2012 the Council approved incorporating the City’s All-City Picnic event held on July 4th into the Rotary’s 2nd annual SVBBQC and the City’s sponsorship of the joint event at Central Park on the last Friday and Saturday in June of each year with the goals of remaining fiscally responsible, promoting citywide special events, and raising funds to support local charitable groups in the City of Santa Clara. Based on policy direction, in April 2013, Council approved a five year agreement (Attachment 1) with Rotary effective from 04-23-2013 to 10-31-2018 that delineated a scope of services for Rotary and City, outlined a plan for the City’s costs for sponsoring the event, and determined how Rotary and City would assign financial obligations for the event. The current agreement with Rotary expired October 31, 2018.
The responsibilities for the SVBBQC were distributed between Rotary and City. Adjustments were made each year to various aspects to improve the annual event such as layout, run of show, entertainment, safety, promotion, guest experience, and to incorporate community feedback to remove less successful elements such as Rotary car show and City carnival area, and move the non-profit food groups and All City Picnic back to July 4. As of the latest SVBBQC event in 2018, the responsibilities in the event are:
• Rotary administered the Barbeque Championships portion of the Event (KCBS sanctioned event, team registration, judges, competition, prizes, etc.; alcohol sales & bistro area; business sponsor activation and vendor booths; event promotion & publicity; Rotary financials; entertainment; provide volunteers for event set-up, day of, and clean-up; parking; and, insurance). Rotary retained event revenues generated during the event and paid its direct expenses related to the listed activities.
• City coordinated facility activation including Central Park Ballfields and Community Recreation Center (CRC); City staff assignments and supervision, event planning coordination with Rotary; facility use set-up, take down, cleaning; coal and grease bins; Health Department permits; sound/stage; ATM services; portable toilets and wash stations; information booths; security and coordination with Police and Fire Departments; volunteer recruitment and screening for City areas; and, coordination with other City Departments. City provided the Central Park Ballfields and CRC at no cost, (at times financial support for bands), some event equipment (tables, chairs, golf carts, canopies, lite towers, cables, generators, etc.), and staffing from Parks & Recreation Department. City retained revenues from limited revenue opportunities (e.g.: ATM, carnival).
The SVBBQC has been one of the largest Kansas City Barbeque Society sanctioned events west of the Mississippi for several years. The event was featured on the Food Network Channel and this distinction has put Santa Clara in the national BBQ food spot light, becoming a draw for out of town competitors and judges, and qualifies teams for more advanced competitions. The SVBBQC attracted 15,000-20,000 persons annually over the two day event.
DISCUSSION
To support this annual event, the City has paid for communication, entertainment, equipment, food, permitting, safety, sanitation, private security, staff, supplies, signage, promotion, etc. as shown in Attachment 2. City revenues included categories for reimbursements, ATM fees, and other such as carnival. The table below indicates City of Santa Clara’s portion of SVBBQC event revenues, expenses, and resulting event subsidies of the event over the past six events.
|
SVBBQ-City |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
Income |
$24,874 |
$7,657 |
$11,683 |
$736 |
$2,155 |
$644 |
|
Expenses |
($113,870) |
($42,515) |
($29,169) |
($41,041) |
($46,397) |
($52,121) |
|
City Support |
($88,995) |
($34,859) |
($17,487) |
($40,305) |
($44,242) |
($51,457) |
While the City’s SVBBQC special event overall expenditures exceeded the City’s revenues by $277,344 over the contract period, the average annual value of City event support was $46,244.
The table below (information provided by Rotary Foundation) indicates Rotary’s portion of SVBBQC event income, expenses and donations for the past five years. See Attachment 3 for further detail.
|
SVBBQC |
2014 |
2015 |
2016 |
2017 |
2018 |
|
Income |
$111,098 |
196,315 |
$221,417 |
$245,009 |
$243,503 |
|
Expenses |
($66,618) |
($127,891) |
($166,877) |
($190,453) |
($178,631) |
|
SVBBQC Net |
$44,480 |
$68,425 |
$54,540 |
$54,556 |
$64,872 |
|
Donations |
($50,437) |
($54,650) |
($74,424) |
($70,180) |
($58,546) |
The SVBBQC event is a significant fundraiser for the Rotary Foundation and net proceeds from the event were in the amount of $307,237 over the past six years. According to the Rotary (see Attachment 3 and 4), along with other program revenues, the SVBBQC supports Rotary’s programs for underserved youth populations in Santa Clara through the following programs:
• College Scholarships: In June, up to $32,000 is awarded each year, to provide scholarships increments of $2,000 to up to sixteen (16) eligible high school students residing in the City of Santa Clara. Each student is awarded $2,000 per year, for four years (up to $8,000 per student), to assist with college expenses.
• Steps for Success: In September & October, up to $10,000 is allocated each year, in partnership with the Santa Clara Unified School District, to serve approximately five-hundred and fifty (550) elementary school children who receive shoes, socks, goodie bags and age appropriate books.
• Christmas for Kids: In December, up to $11,000 is allocated each year, in partnership with Lexus of Stevens Creek, to serve approximately one-hundred and fifty (150) low-income students in the Santa Clara Unified School District who are given a warm coat and age appropriate gifts (and a picture with Santa Claus) for the holiday season.
• Enterprise Learning Conference (ELC): In March, up to $27,000 is allocated each year, to fund a three-day, overnight, business conference for up to sixty (60) City of Santa Clara High School Juniors. The funding supports free attendance for all accepted students to learn critical business and interpersonal skills.
• Rotary Youth Leadership Awards (RYLA): Up to $2,800 is allocated annually to fund RYLA, a worldwide Rotary Club leadership program, to fund attendance for up to six (6) students ages 13-30.
The Rotary has indicated an interest in continuing to collaborate with the City of Santa Clara in producing the SVBBQC as a City sponsored special event (Attachment 2) for the next five years. The Rotary has an approved sanction by Kansas City Barbeque Society for the Santa Clara event. If authorized by Council, an agreement would be developed to produce an SVBBQ event for the next five years (Father’s Day weekend): June 21‐22, 2019; June 19‐20, 2020; June 18‐19, 2021; June 17‐18, 2022; and, June 16‐17, 2023.
Prior to negotiating a successor contract with Rotary, staff is seeking Council direction on the terms of a future contract. Key terms for a contract include the level of staff and financial support for the annual event, agreement term, location, and performance outcomes. Staff met with Rotary Board members regarding potential terms. The Board members asked for City staff support including:
• pre-event coordination of the monthly event planning and logistics meeting;
• preparation of a scaled facility permit map;
• pre-event site preparation, facility setup and clean up, electrical needs, handwashing stations, synthetic turf installation, ADA signage, and equipment rentals;
• coordination of Temporary Food Facility Health permits and compliance,
• use of City barricades, equipment, fencing, light towers, generators, tables, chairs, and canopies;
• free speech management, Good Neighbor communications, and information booths;
• music licensing fees, ATM services, and radio communications;
• event security, health and safety; and
• lists of equipment, supplies and personnel supporting event, and costs for development of annual event budget.
Based on the forgoing items, the estimated City support is estimated between $36,000 and $40,000 per year.
Rotary Board members stated that Rotary would under a new agreement continue its previous scope of work and annual costs which have been in the $180,000 to $190,000 range, as well as to assume the main stage professional sound and lighting contract expense with an estimated added cost of $10,000 to $12,500. Rotary committed to providing an annual post event report to Council to provide revenue, expenditure and donation information. Further, the Board members requested to sign a five-year contract, continue the event at Central Park, and were open to jointly developing performance outcomes as part of contract development. Examples of performance outcomes could be the continuous support of Santa Clara children and youth programs. As the event continues to grow and evolve, both City and Rotary acknowledged that event elements may be added or subtracted for overall event improvement.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The SVBBQC has been financially supported by the City’s General Fund on an average of $46,000 per year for the past six events. Depending upon Council direction, a future agreement may provide differing levels of fiscal impact to the General Fund.
As proposed by Rotary, the City commitment would be estimated at $36,000 to $40,000 per year and for a total not to exceed $180,000 - $200,000 over a five year agreement. The actual amount would be subject to both contractual terms and the Council bi-annual budget allocation.
COORDINATION
This report has been coordinated with the City Manager’s Office, City Attorney Office, and the Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Authorize the City Manager to negotiate and execute a five-year contract with the
Rotary Foundation to include the current level of staff and financial support not to exceed $40,000 per year for the Silicon Valley Barbeque Championships;
2. Authorize the City Manager to negotiate and execute a five-year contract with the
Rotary Foundation to include a not-to-exceed amount to be determined by Council, for staff and financial support for the Silicon Valley Barbeque Championships; or,
3. Any other direction the Council deems appropriate.
RECOMMENDATION
Recommendation
Staff does not make a recommendation; however, if the Council approves the Rotary Foundation’s request, staff recommends that the City Manager be authorized to negotiate and execute an agreement with the Rotary Foundation for a five year agreement to provide financial support, ranging from $180,000 to $200,000, for the Silicon Valley Barbeque Championship event, per terms outlined in this report.
Staff
Reviewed by: James Teixeira, Director of Parks & Recreation
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement with Rotary 2013-2018
2. City SVBBQC Revenue and Expense Table 2013-18
3. Rotary SVBBQC Revenue and Expense Table 2014-18
4. SVBBQC History Submitted by Rotary 2019