Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute the Third Amendment to the Quarry Park Amphitheater Management and Operating Agreement with ST Productions

Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute the Third Amendment to the Quarry Park Amphitheater Management and Operating Agreement with ST Productions

On December 10, 2019, the City Council adopted Resolution No. 2019-282 approving and authorizing the City Manager to execute the Quarry Park Amphitheater Management and Operating Agreement with ST Productions.

Due to unforeseen circumstances brought on by the COVID-19 pandemic and the resultant orders from public health authorities, ST Productions was prohibited from producing concerts during the 2020 concert season. On August 25, 2020, the City Council adopted Resolution No. 2020-165 approving and authorizing the City Manager to execute the first amendment with ST Productions for the Quarry Park Amphitheater Management and Operating Agreement and the approval of CARES Act funding for ST Productions. The amendment addressed the term, various financial provisions, and the equipment list.

On August 24, 2021, the City Manager executed the second amendment to the Quarry Park Amphitheater Management and Operating Agreement with ST Productions, reflecting the change of ST Production’s address for the purpose of sending and receiving any notices required under the Agreement.

The 2021 season marked the return of live music and events to Quarry Park Amphitheater and the City of Rocklin. ST Productions had a successful first season, which included a total of 18 events and over 15,000 attendees. The first operating season for the Quarry Park Amphitheater Management and Operating Agreement showcased the reasons why the City desired such a partnership, and helped the City achieve a range of goals such as maximizing use of the facility; improving the level of talent; minimizing costs to the City while generating revenue; shifting staffs time and responsibilities to focus on other key areas of need; and enhancing event tourism and economic impact in our community.

In an effort to maintain a mutually beneficial agreement, staff and ST Productions have reviewed the Operating Agreement and propose a number of changes which are summarized below:

- Ticket Fee Increase from $1/ticket to $3/ticket to offset the City's expenses;
- Rental Fee Increase from $500/event to $1,000/event to offset the City's expenses;
- Add Hard Cost Reimbursement requirements (i.e. cleaning costs and utilities) to recover direct City costs; 
- Memorialize the Removal of the City Sponsorship Percentage;
- Continue Deposit Advance Account for 2022 Season;
- Adjust City Parking Operations Language;
- Address Operational Areas and Restricted Access Areas;
- Address Storage Areas and Responsibilities; and, 
- Add Operating Procedures for Wildfire/Smoke, COVID-19, and Force Majeure Events

The above amendments will help provide continued success and fiscal sustainability for both parties. These changes highlight the partnership between the City and ST Productions and the shared vision of providing the best possible structure and experience for our residents and visitors.

The proposal above will allow the City to maintain fiscal sustainability in the Quarry Park Fund (Fund 111) and cover direct hard-costs for the amphitheater in the 2022 concert season. Any remaining funds may be set aside for future repair and replacement projects or offset full-time and permanent part-time staffing expenses associated with the management of Quarry Park Amphitheater. Staff continue to work toward the end goal of reducing or eliminating General Fund assistance for Quarry Park Amphitheater Operations.

An overview of the 2021 Operating Season Totals and 2022 Budget are below:

The Quarry Park Fund Balance (Fund 111) remains positive and projects to remain positive for FY 2021/22.