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ADOPT AN ORDINANCE AMENDING CHAPTER 12.72 AND 5.12 REGARDING SPECIAL EVENTS AND APPROVE THE SPECIAL EVENT INCENTIVE PROGRAM
recommended action
RECOMMENDATION
It is recommended that City Council adopt by motion an ordinance amending Chapters 12.72 and 5.12 as it relates to the City’s special events permitting process and approve the Special Event Incentive Program.
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Summary
The City of Stockton has a rich history of providing special events throughout the year in City maintained facilities. These events are hosted by event promoters that include businesses and non-profit organizations and require a Special Event Permit that is administered through the City. The City received feedback from event organizers that the City events process needed to be improved. After a thorough review by staff and meeting with events stakeholders, staff recommends approving the changes included in the ordinance amending Chapters 12.72 and 5.12 (Attachment A) as it relates to special events and implementing the Special Event Incentive Program. The intent of these changes is to help streamline the permitting process, encourage more event promoters to host events in the City of Stockton and improve communication between event promoters and City staff.
DISCUSSION
Background
The City of Stockton venues and facilities are home to many special events throughout the year. These events are attended by thousands throughout San Joaquin County. Special events elevate the standard of living of a community and provide recreational, artistic, cultural, and learning opportunities. Providing and encouraging a variety of events in Stockton venues is important and aligns with the Council target goals of focusing on youth and improving economic development.
The City’s current special event permitting process was thoroughly reviewed by staff, which included discussing and analyzing feedback that was received from the public. The special event permitting process is a multi-departmental City function that is coordinated by the Community Services Department. All departments that provide an approval of the special event were included in the review process. Staff also researched other cities throughout California to ascertain best practices and ensure the City’s current practices and procedures met or exceed industry standard. Lastly, the City hosted a stakeholder meeting for event organizers on April 2, 2015 to communicate proposed changes and also to receive feedback regarding the process and suggestions for future changes. This workshop was well attended with over 20 event promoters providing staff insight and feedback on the proposed changes.
The proposed changes were also presented to the Legislation and Environmental Committee on April 28, 2015 and received a unanimous vote to forward and present to Council for approval.
Present Situation
As a result of the special event permitting process review, City staff developed several recommendations to help streamline the process and also to implement innovative ideas to assist event promoters and provide improved customer service. All proposed changes to the ordinance would become effective 30 days after Council approves them. Other improvements have already been implemented. The recommendations include:
Updating Permit Application & Requirement Deadlines (Chapter 12.72.110) - Staff recommends improving the current structure by requiring applications to be due 45 days prior to the event date. Late applications will be accepted 44-30 days prior to the event, but the applicant will be charged a late fee of $100, which was approved by Council in the FY 15-16 Fee Schedule. Any amendments to the application would be due 30 days prior to the event. All requirements will need to be submitted 20 days prior to the event. Updating the deadlines will provide event promoters with a more timely response to their application and the ability for City staff to work closely with event promoters to ensure event success.
Special Event Appeal Process (Chapter 12.72.030) - If an application is denied, applicants have the ability to appeal the decision. The current process of appeal will be improved by shifting the responsibility to the Legislation & Environmental Committee which meets on a more regular basis. This change will provide event promoters with more flexibility to appeal given the new deadline structure.
Administrative Language Clean-up (Chapter 12.72) - Throughout Chapter 12.72, language clean-up was recommended to bring the Code up to date to current practices. These changes include removing Chapter 12.72.130 Content of special event permit application, which was found to be overly prescriptive.
Business License Requirement Exemption (Chapter 5.12) - Staff recommends an exemption be granted to special event organizers regarding the business license requirement. Often the vendors will have a storefront in the City, which requires them to have a business license. Current Code requires them to have an additional business license specific for the special event. This discourages businesses from participating as vendors at local special events. Providing the exemption to special event organizers will help encourage local businesses participate in more special events.
Implementing the Special Event Incentive Program - Staff recommends City Council approve a Special Event Incentive Program that will provide a 50% rebate of the City’s facility rental fee when a downtown event generates a minimum of $10,000 in Parking Authority gross revenue. The rebate will range in a savings of approximately $1,000 - $2,100 per event for the applicant. Only events held at City-owned and managed downtown venues qualify for the rebate. The SMG managed venues would not qualify for this program. The rebate will be paid at the same time the security deposit has been refunded to the promoter (no later than 30 days after the event). This program will be evaluated in 12-months for its effectiveness in promoting downtown events.
In addition to the updates being presented to Council, City staff has implemented the following changes internally to improve overall processing and customer service.
Improved Communications - Improved information about the special events permitting process on the City’s website and other materials.
Enhanced Insurance Purchasing Option - Currently providing event promoters the option to purchase insurance for the event through a City approved vendor, which streamlines the insurance requirement for the event organizer.
Revised Insurance Requirements - Although still required to meet insurance requirements, applicants are no longer required to provide documentation showing vendors at events are insured. This responsibility is placed on the applicant (event organizer) to ensure their vendors have adequate, required insurance policies in place for the event. This change in policy reflects a move towards a more collaborative relationship with the applicant and has been well received by the public.
Staff will be meeting periodically throughout the next year to discuss the impacts of these changes and to formulate proposed changes in approximately 12 months. Prior to returning to Council with any recommended changes, Staff will host another stakeholders meeting to obtain input from the community and event organizers.
FINANCIAL SUMMARY
The Special Event Incentive program will impact potential revenue received from parking at the events. However, the increase of events hosted should offset revenue affected. The program will be revisited and evaluated in 12-months to determine effectiveness.
The business license exemption will not have a negative impact on the City’s revenue. It currently costs the City much more in staff time to process this fee than the revenue covers. Eliminating this fee will reduce revenue slightly, but significantly increase efficiency. In FY14-15, the City collected approximately $3,900 in revenue from special event business license fees.
Attachment A - Proposed Ordinance (redlined)