Item Coversheet

Item Number 24.

  

City Council 
Staff Report

Subject:Approval of Quarry Park Amphitheater Management and Operating Agreement with ST Productions


Date:December 10, 2019


Submitted By:Kevin Huntzinger, Parks and Recreation Manager


Department:Parks and Recreation

Staff Recommendation:

Staff recommends that the City Council approve a resolution authorizing the City Manager to execute the Quarry Park Amphitheater Management and Operating Agreement with ST Productions.
BACKGROUND:

On November 12, 2019 City Council conceptually approved the key terms of an operating agreement for Quarry Park Amphitheater with SNT Productions (henceforth ST Productions). Entering this agreement is an objective in the Strategic Plan adopted by the City Council on August 13, 2019. The approval of the Quarry Park Amphitheater Management and Operating agreement (Resolution - Exhibit A) will assist the City in attaining the goals mentioned below:

 

- Maximize usage of the facility
- Improve talent level to enhance event tourism in our community
- Minimize costs to the City
- Generate revenue to the City
- Shifting staffs time and responsibilities to focus on other key areas of need

The key items included in the agreement are summarized below:

1. General Terms
A. Term - Execution date through December 31, 2022.
B. Contractor will have exclusive rights to book Events at Venue up to 365 days per year, except for those specific days withheld for use by City or not booked for an Event by Contractor.
C. Contractor shall produce a minimum of six (6) Concert Events during the first year of operations, eight (8) Concert Events during the second year, and ten Concert Events (10) during the final year of the agreement.
D. Contractor agrees and understands that when the Venue is not being used by Contractor or City for an Event the Venue will be open and accessible to the public as a public park.

2. Contractor Operations Responsibilities
A. Contractor shall be solely responsible for the production of all Events, excluding City-produced Events (i.e. Hot Chili Cool Cars, Patriot Day and other city sponsored events)
B. Contractor shall be solely responsible for all ticket sales, marketing, staffing, and food, beverage, and merchandise sales.
E. Contractor shall have the right to rent the Venue to a third party for Events.

3. City Operation Responsibilities
A. City shall retain responsibility and control over the Venue for all days that are not reserved by Contractor.
B. City shall have the right to reserve time at the Venue to host up to ten (10) Events each Operating Season.
C. City shall be solely responsible for all parking operations at Venue for all Events.
D. City shall be solely responsible for setup and takedown of fencing at Venue for all Events.
F. City shall have final approval of ALL ARTISTS prior to entering into a contract with an Artist for an Event.

4. Operations Costs & Revenues
A. Contractor shall be responsible for all Event operations costs, which includes all costs associated with Event operations not otherwise addressed in the Agreement, and shall retain all revenue from Event operations.
B. Contractor shall be responsible for acquiring and managing all sponsorships and shall retain 80% of all revenue from sponsorships.
C. Contractor shall pay to City one dollar ($1.00) per ticket sold for each Ticketed Concert Event.
D. Contractor shall pay to City a rental fee of $500 for any non-Concert Event.
E. City is entitled to 20% of all gross revenue from Contractor sponsorships, excluding in-kind services or donations. 
F. City shall be solely responsible for any Rocklin PD overtime costs associated with events at the venue.

5. Artist Contract Deposit Advance
A. City shall make available an Artist Contract Deposit Advance totaling up to $100,000 to be used by Contractor for contract deposits necessary to secure Artists for Events.
B. Contractor shall reimburse City’s Artist Contract Deposit Advance for each Artist contract deposit within thirty (30) days after the completion or cancelation of each corresponding Event.
C. Contractor shall be solely responsible for ensuring that the Artist Contract Deposit Advance is replenished in full at the end of the Operating Season.
D. City shall maintain the Artist Contract Deposit Advance until December 31, 2020.

 

During the November 12th meeting City Council requested that City staff research and discuss ways to work with Rocklin community groups. City staff has addressed this concern with the potential operator and included language requiring good faith efforts to avoid adverse impacts on community group events in proximity to the Amphitheater within the contract.

City Council also requested City staff to discuss funding options for Rocklin Police Department expenses.  The potential operator is unable to fund this expense under the current contract terms, however the potential operator has agreed to fund a much needed capital improvement project at the amphitheater, which consists of the planning and installation of a stage shade structure by May of 2021.

Fiscal Impact:
Based on the projected estimated budget the City will continue to generate revenue close to what it has in the past while saving on numerous hours of staff time, energy, and resources. The current proposed agreement allows the City to continually generate revenue and increase economic impact while maintaining and enhancing the City’s substantial capital investment in this area.
ATTACHMENTS:
Description
RESOLUTION
RESOLUTION EXHIBIT A - Quarry Park Amphitheater Management and Operating Agreement
The ACM/CFO has reviewed this staff report and certifies that budgeted funds are available, unless a budget amendment is being requested as part of this action item.