City of Hermosa Beach --- 06-27-00

APPROVAL OF UP TO FIVE PIER PLAZA PROMOTIONS PER FISCAL YEAR
 TO RAISE FUNDS FOR COMMUNITY EVENTS

 

Recommendation

Staff recommends that Council approve up to five one-day promotions per year on the Pier Plaza to raise up to $50,000 to help defray costs for selected community events.

 

Background

At the April 25, 2000 meeting, Council directed staff to devise a strategy to assist Hermosa Beach non-profit groups in raising funds to help pay for events such as the Saint Patrick’s Day Parade and Aloha Days.

 

Analysis

Historically, the Council has assisted financially with these important events by appropriating funds each year to meet some of the operational costs. Furthermore, there has been some speculation that if some of these events (e.g., the Parade) were subsidized to a greater degree, reliance on booth space (and the resultant street closures) may be reduced.

To solicit funds directly on behalf of a particular event that the City does not control either operationally or financially may prove to be a poor use of City resources, however, setting aside a specific fund to assist with community events would fulfill the same purpose.

The City receives a number of calls each year from companies requesting permission to hold promotions on the Plaza. To date, the City only approves promotions for our own Plaza merchants with no allowance for outside sponsors.

If approved, the City would create a policy to ensure:

  1. Only five promotions per Fiscal Year will be approved.
  2. Scheduling of promotions will not conflict with existing events and/or Plaza merchant promotions.
  3. Each applicant would pay a location fee of $10,000 in addition to all direct costs incurred by the City for the one-day event.
  4. Each applicant will be required to post a sign indicating that their promotion is a fundraiser assist with community events in Hermosa Beach.
  5. Promotions must be strictly product or service promotions and not special events.

 

FISCAL IMPACT: Potential to Raise Up to $50,000 for the DEC.

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