Loading...
HomeMy WebLinkAboutD-6 Staff Report - Marathon Financial AssistanceSCHEDULED ITEM D-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DON PENMAN, INTERIM CITY MANAGER DATE: JANUARY 16, 2018 SUBJECT: DISCUSSION REGARDING BROOKSEE’S REQUEST FOR FINANCIAL ASSISTANCE FOR 2018 REVEL CANYON CITY MARATHON AND HALF MARATHON SUMMARY: Brooksee, LLC, sponsors of the REVEL Canyon City Marathon and Half Marathon have requested financial assistance from the City in the amount of $30,000 in order to conduct the 2018 event. The sponsors have indicated that the event has lost money since its inception and as a result it would not be financially feasible to continue without financial support from the City. Brooksee has provided the City with a letter, with background and financial information, as well as specific ideas on possible cost reductions and suggestions on sponsorships from the City, which includes the suggestion of combining the Golden Days 5K with the REVEL event with their staff executing the 5K completely (Attachment 1). Staff does not have a recommendation on whether the City Council should direct financial resources to support the Marathon and Half Marathon. While the event clearly brings many visitors to the City, as well as offers a unique event for residents, and provides both direct and indirect financial benefit, it is difficult to determine this overall value based on the requested contribution of $30,000. Brooksee has indicated that they need a response as soon as possible as they cannot commence the registration process without knowing if the request is approved. The proposed action requests that the City Council discuss the request from Brooksee and provide direction to Staff. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Discuss and provide direction to Staff. DISCUSSION: The Canyon City REVEL Marathon and Half Marathon has been held in the City of Azusa since 2014. While a popular event in the City, it requires a significant amount of City resources to staff it, which in 2017 totaled $61,327 (which includes $7,362 for outside law enforcement within the Approved Council Meeting 1/16/2018 Request for City Financial Assistance from Brooksee, LLC January 16, 2017 Page 3 City). Not surprisingly the most significant cost is for City of Azusa public safety, which totaled $42,184 for this past year. These overall staff hours do not include in all cases the hours staff absorbed during their regular working hours in planning and preparing for this event. The marathon sponsors have indicated a number of reasons for the losses, including other marathon events on the same weekend in other areas that compete for the same participant base. This past year’s race attracted over 1,900 participants and Brooksee has indicated that about 2,800 are needed to break even. They have proposed and the City Council has approved moving the event back one weekend, to November 17, in order to have a separate date that would not compete with other marathons. In their attached letter they have identified a number of cost saving measures they can implement in addition to the request from the City for $30,000 (Attachment 1). It is important to note and they mention it in their letter, they are not asking or recommending that the Police Department reduce the number of assigned personnel, as the safety of the participants and spectators will always be a top priority. They have also provided information on the benefits the City receives by hosting the marathon and half marathon. If the City Council determines that the benefits of supporting the event are warranted, then findings will need to be made that demonstrates the public benefit for this financial support. These might include: • Overall financial benefit to the local economy in terms of food and beverage sales, transportation, lodging, retail, recreation and other businesses • Community “branding” with regional and national exposure to this community to runners/walkers and their family and friends • Direct financial donations to local non-profit groups and contributions to the Recreation and Family Services Department Brooksee LLC has indicated that they need a response as soon as possible as they cannot commence the registration process without knowing if the request is approved. From the City staff perspective it is understandable they need to have this information, as without financial assistance the event will not proceed. However, the City is being asked to make a commitment for FY 2018-2019 outside the budget process without having a better grasp at this time of the City’s projected fiscal position in FY 2018/2019. Staff does not have a recommendation on whether the City Council should direct financial resources to support the Marathon and Half Marathon. While the event clearly brings many visitors to the City, as well as offers a unique event for residents, and provides both direct and indirect financial benefit, it is difficult to determine this overall value based on the requested contribution of $30,000. The City Council would have to determine if the expenditure is appropriate as the City continues to stabilize its financial position. Also if funds were identified for a community event such as this, the Council would need to determine whether this event would serve a community benefit greater than another event or program the Council may wish to consider such as the purchase of new and/or additional holiday decorations for the downtown. If the Council determines that some financial support is warranted then findings of public benefit will need to be made to justify the expenditure Request for City Financial Assistance from Brooksee, LLC January 16, 2017 Page 3 FISCAL IMPACT: Under the current arrangement the City receives reimbursement for staffing costs associated with the REVEL Marathon and Half Marathon. In 2017, City related costs totaled $61,327 which included $7,362 for other law enforcement agencies working within the City of Azusa. Brooksee has indicated that it would no longer be financially feasible to continue the event in future years without at least $30,000 in direct financial support from the City, so if approved the City would have to absorb $30,000 in costs in the FY2018/2019 budget. Prepared By: Don Penman Interim City Manager Attachment: 1) Letter from Brooksee,LLC