CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

December 5, 2017
ORDERS OF BUSINESS

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Sharon Friedrichsen, Director of Budget and Contracts

APPROVED BY: Chip Rerig, City Administrator

SUBJECT: Consideration of revised fees for special events and activities.

RECOMMENDATION:
Receive a report on options pertaining to special event and activities fees and provide direction to staff.

BACKGROUND/SUMMARY:
On November 7, 2017, Council received a report on special event fees and provided direction to staff regarding
criteria to apply to these fees. The genesis of this discussion was the completion of a cost of services study in
2016 that examined the Citys cost of providing various services and identified options for adjusting fees in order
to more equitably finance services. Council has the authority to determine the amount of fees to be charged for
these services and adopt a fee schedule that would apply to applicants seeking a special event or activity permit.
Staff seeks direction on the possible fee adjustment options.

Specifically, Council directed staff to develop fee options, including fee subsidies based upon: (1) If the
applicant is a resident or non-resident; (2) If the event organizer is a non-profit or for profit entity, and (3) If the
event is free and open to the public.

Beach, Park, and Street Events and Film Permits

The fee for a special event at the beach, in a park, or in the street (right-of-way) includes a permit fee, a rental
fee and a refundable deposit. Table 1, Permit Fee Options, illustrates the proposed fees for the cost of
processing a permit based on either a 50% or 100% cost recovery model. Option 1.A is the fee based on a
100% cost recovery model as recommended in the cost of services study while Option 2.A is an alternative fee
based upon capturing 50% of the cost from the user. While Council has the authority to determine the amount
of the permit fee, staff recommends that Council select either Option 1.A or 2.A.

Once Council has made this determination, Council may then consider applying a subsidy of 50% to the base
fee for a non-profit organization, a school, or a local resident. Options 1.B and 2.B show the amount of the fee,
with a subsidy, under the 100% and 50% cost recovery models respectively. Staff recommends that Council
select either Option 1.B or 2.B regarding the subsidy. Council also has the option to increase the subsidy for
non-profit organizations, schools and local residents to an amount greater than 50%, such as 75% or 100% (no
fee).
Table 1: Permit Fee Options
Option 2.B
Option 1.B
Option 2.A 50% Subsidy
Option 1.A 50% Subsidy for
Activity/Event Current
50% Cost for Non-
100% Cost Recovery Non-profits,
Fees Recovery profits,
for all events schools, or
for all events schools, or
residents
residents
Special
event at the
$155 $685 $343 $343 $172
beach

Special
event at the
$155 $685 $343 $343 $172
park

$1,472/$2,160/$3,725
per event based on
Special $365 per
size (staff $343 per $172 per
event in the block $343
recommends this be permit permit
street
$685 per permit
instead)
$119 per
hour for off
Staffing for duty police; 100% fully allocated 50% fully 50% fully 25% fully
event in the $69 per hourly rate of allocated
allocated rate allocated rate
street hour for off personnel involved rate
-duty public
works
Event with $0 $170 $85 $85 $43
alcohol
Film permit $266 $406 $203 $203 $102
Sound permit $25 $25 $12 $25 $12

Rental fee
In addition to the permit fee, the City currently charges a rental fee for the use of the beach or park as illustrated
in Table 2, Rental Fee Options. The cost of services study looked at the time and cost of staff, on average, to
process a permit. The rental fee is more discretionary and is a cost for allowing the exclusive and private use of
a public resource to a special event. Staff recommends the rental fee for the beach and parks be changed to a
flat use fee of $500 and that the rental fee of $500 also be applied to streets on a per block basis. Options 1.A
and 1.B illustrate the new proposed fee, including with a subsidy for eligible applicants. Council may either: (1)
keep the current fee in place; (2) approve Option 1.A or (3) provide direction on a different amount to charge for
the rental fee. Then, once the base fee is determined, Council should apply a subsidy, as shown in Option 1.B
or determine a different amount of the subsidy.
Table 2: Rental Fee Options
Option 1.B
Activity/Event Current Fee Option 1.A 50% Subsidy for
For all events Non-profits, schools, or
residents
Beach event $400 per hour $500 per day $250 per day
$400 for first four
Park event hours $500 per day $250 per day
$300 per hour

Street event $365 per block $500 per day per $250 per day per block
closure block

Refundable Damage Deposit

The City charges a refundable deposit for any damages that may be incurred by the special event. Table 3,
Refundable Damage Deposit Options, shows the current damage deposit fee and Options 1.A and 1.B. Option
1.A proposes to increase the damage deposit to $500 for the beach, parks and streets. However, staff
proposes that the increase in the deposit is offset by including the use of a reasonable number of event
materials, such as no parking signs, A- frames and barricades, by the event organizer as part of the deposit.
Currently, the City charges the applicant the actual City cost for these items. (Under this proposal, the event
organizer would still bear 100% of the cost for shuttle service and portable toilets.) As part of this option, event
organizers would only pay for items if the items are damaged or stolen as part of the event and/or (2) when the
City is required to incur additional costs for the safety of the event, such as the use of bollards. Council may (1)
keep the current deposit in place, (2) adopt Option 1.A or (3) propose a different amount for the rental fee.
Based upon the base rental fee, Council may then decide on whether to apply a 50% subsidy (Option 1.B) or to
increase the subsidy to an amount greater than 50% of the fee.

Table 3: Refundable Damage Deposit Options

Option 1.A Option 1.B
Activity/Event Current Deposit 50% Subsidy for
For all events
Non-profits or residents
Beach event $200 $500 $250
Park event $300 $500 $250
Street event $0 $500 per block $250 per block

Parking stalls
The current fee schedule includes a charge of $100 per stall, increasing to $200 per stall during Car Week,
PGA Golf Tour and the last two weeks in December. Staff recommends that the parking stall fee also be
applied to the Del Mar parking lot. As shown in Table 4, Parking Stall Options, Option 1.A reflects the amount of
the fee currently charged to contractors for a parking stall in the commercial district. Council may choose to
adjust the special event parking stall fee and approve Option 1.A. Option 1.B applies a subsidy of 50% and
Council may approve Option 1.B or propose a different subsidy amount for non-profit organizations, schools
and local residents. If the applicant proposes to place a red carpet or other items within the parking stall, it be
treated as a temporary encroachment permit and be charged the corresponding adopted fee as is the current
practice. Council may (1) keep the current fee in place; (2) adopt Options 1.A and/or 1.B or (3) determine a
different amount for the parking stalls, including any subsidy for non-profit organizations, schools or local
residents.

Table 4: Parking Stall Options

Option 1.B
Option 1.A 50% Subsidy for
Activity/Event Current Fee
For all events Non-profits,schools, or
residents
Non-Space Specific -
$10/permit plus $31/day
Non-Space Specific - $5 plus
per stall $15/day per stall
Parking stall $100 Space Specific-
Space Specific - $12/permit
$25/permit plus $31/day
plus $15/day per stall*
per stall*

*Temporary encroachment permit fees may also apply

Conclusion
The cost of services study completed in 2016 reviewed the amount of staff time to complete activities, like the
processing of a special event permit, and made recommendations to fully recover the cost of this service from
the user, or the special event applicant. Council has the discretion to determine its approach to cost recovery for
special events and to set the various fees accordingly. Based upon previous Council direction, the staff report
illustrates a range of options for the fees, including a subsidy for non-profit organizations, schools and local
residents. Once Council provides direction on these options, staff will return with a master fee schedule that
reflects the proposed fees for Council adoption.

FISCAL IMPACT:
As there are a variety of options for Council's consideration, it is difficult to determine the fiscal impact of any
proposed adjustment to fees. However, overall special event fees are a minor source of revenue to the City,
currently generating less than $50,000 in a fiscal year.

PRIOR CITY COUNCIL ACTION:

Council provided direction on this item on November 7, 2017.

ATTACHMENTS: