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HomeMy WebLinkAbout2008 09 08 Regular 602 W2008 WLOQ Jazz Event Reimbursement CostsCity of Winter Springs Regular Meeting September 8, 2008 090808_COMM_Regu I ar_602_W LOQ_Jazz_Event_Report Page 1 of 4 COMMISSION AGENDA ITEM 602 Consent Informational Public Hearing X September 8, 2008 Regular Meeting MGR. /DEPT. Authorization REQUEST: The City Manager requesting the Commission to review this report regarding the reimbursement of costs for the 2008 W.L.O.Q. Jazz Event, and take any action it deems appropriate. PURPOSE: This agenda item is needed to fulfill the Commission's request for the development of settlement alternatives regarding the 2008 W.L.O.Q. Jazz Event. BACKGROUND: On February 11, 2008 the City Commission authorized the staff to proceed with the planning of a Jazz Event to with W.L.O.Q. Radio with the direction to solicit sponsors to cover as much of the cost as possible. Staff moved forward with putting together an event with financial and in-kind participation from W.L.O.Q., the Chamber of Commerce, the Town Center Merchants Association, and the City. Discussions included the City's participation including the possible donation of police, fire, and other services, and the waiver of park rental fees. On April 14, 2008 the City Commission approved a motion to delete funding from all special events unless 100% of the cost was covered from sponsors. This option prohibited any out-of- pocket expenses from the City, eliminated from consideration the City share of the cost of the Jazz Event, and placing the event in jeopardy. On April 18, 2008 a meeting was held including city staff, Chamber of Commerce, representatives, Town Center Merchants President, W.L.O.Q. representatives, and Commissioner Rick Brown to advise all the parties of the City Commission's April 14, 2008 declaration prohibiting any City monetary participation in the event. The other parties agreed that they would cover all the cost. W.L.O.Q. asked the City to sign a Memorandum of Understanding setting out the parties' responsibilities. The W.L.O.Q. Memo of Understanding for the first time specified that the City would waive the $3,000 park rental fee. Acting City Manager Kip Lockcuff signed the agreement under the erroneous belief that the City Manager had agreed to the park fee waiver. City of Winter Springs Regular Meeting September 8, 2008 090808_COMM_Regul ar_602_W LOQ_Jazz_Event_Report Page 2 of 4 W.L.O.Q. made it clear that they would not participate in the event if the letter of intent was not signed on this date. It was made clear that the City Commission would have to approve the final agreement. On April 28, 2008 the staff presented a final plan for the event in which the City's participation in the event was limited to a waiver of the $3,000 park rental fee. The Commission rejected the waiver of the $3,000 park rental fee. On April 29, 2008 W.L.O.Q. was notified of the City Commission's decision to deny the agreement due to the Commission's unwillingness to waive the $3,000 rental fee consistent with their April 14, 2008 policy decision prohibiting the waiver of park rental fees. W.L.O.Q. threatened litigation due to the amount of money and effort they had expended in preparing for the event, stating that the Commission's actions were in breach of the Memorandum of Understanding signed on April 18, 2008 by the Acting City Manager. At the request of the City, the City Attorney got involved to try to mediate the matter. The City Attorney worked out an agreement in which W.L.O.Q. would agree to provide the City with $5,000 in free advertising for future events in return for the City waiving the $3,000 park rental fee. On April 30, 2008 an emergency meeting of the Commission was convened to reconsider the event with the proviso that the City would agree to waive the $3,000 park rental fee in exchange for the $5,000 free advertizing offer. The Chamber of Commerce and Local Merchants agreed to guarantee payment of any cost incurred by the City for which event revenues were insufficient to cover. The Commission instructed the City Attorney to memorialize the terms in a final agreement. The final agreement was executed on May 15, 2008. On May 16, 2008 and June 7, 2008 the event went forward as planned. The event did not earn sufficient revenues to cover the City's $5,014.31 cost. On August 25, 2008 representatives of the Chamber and Local Merchants offered the Commission payment covering the City's cost. The Chamber presented a check in the amount of $1,014.00, representing the amount of donations it had raised for the event. The balance of the amount was paid by the local merchants as follows: Chamber of Commerce $1,014.00 Brenda Brown $1,333.44 Charles Lacey $1,333.44 Brenda Brown 1 333.44 Total $5,014.32 City of Winter Springs Regulaz Meeting September 8, 2008 090808_COMM_Regul az_602_W LOQ_Jazz_Event_Report Page 3 of 4 Paul Partyka presented the checks offering the following information for the Commission to consider. a) Two months of planning for the event took place prior to the April 14, 2008 decision of the Commission to withdraw monetary support for the event. The planning for this event involved a partnership in which cost was shared by the various parties. b) In order to prevent W.L.O.Q. from walking away from the event and potentially following through on a threat to litigate against the City to recover the cost of its time, and the cost of obligations with parties it had entered into to perform various elements of the event, the Chamber and Local Merchants felt they had little choice other than to offer to become guarantors of reimbursement of the City's cost in the event. c) That a better and more fair policy would have been for the Commission to grandfather events that were already in progress on April 14, 2008 when the Commission made its new policy declaration. Based upon this presentation the City Commission directed the City Manager to review the matter with Chamber and Merchant representatives and to offer alternatives for the Commission to review. FINDINGS: The following findings are clear from a review of the facts: a) A significant amount of time and effort was expended to carrying out the February 11, 2008 direction of the City Commission to plan the event. b) The event planning evolved on the basis of the various parties sharing costs. c) The April 14, 2008 decision of the Commission to discontinue monetary support of community events changed the dynamics under which the party's were proceeding in good faith to accomplish a successful event. This decision had especially troublesome impacts on W.L.O.Q. since it was involved with business arrangements with subcontractors. d) Contrary to W.L.O.Q.'s understandable saber-rattling, it is doubtful that they had grounds for litigation since they were clearly made aware of the fact that the City Commission had the authority to approve or reject the final plan that would be submitted to them for approval. e) It is clear that the guarantors are legally bound to reimburse the City for 100°Io of the City's cost. CONCLUSIONS: 1. Based upon the record of this matter it is clear that this is far more a matter of fairness and good will than law, and that good will in these kinds of matters is important. 2. A decision by the Commission which would have given more consideration to the time and monies expended and obligated by the parties planning the event would have been received as a more fair rendering of public policy in this matter. FUNDING: N/A City of Winter Springs Regular Meeting September 8, 2008 090808_COMM_Regul ar_602_W LOQ_Jazz_Event_Report Page 4 of 4 RECOMMENDATION: Based upon the record of this matter I am recommending the Commission consider the following alternatives. 1. That the Chamber pay the full amount of its $1,014.00 in donations it acquired for the event to the City and that 50% of the remaining $4,000.31 be paid by the other guarantors, all of which would be utilized to help pay for a future Town Center event. 2. That the Chamber pay the full amount of the $1,014.00 donations it acquired for the event to the City to be utilized for a future Town Center event, and that the other guarantors be released from the their collective $4,000.31 obligation to reimburse the City. ATTACHMENTS: COMMISSION ACTION: