REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Chris Slama, Director of Community & Library Services
Subject:
title
Approve a recommended Action Plan and authorize execution of Amendment No. 1 to the Contract between the City of Huntington Beach and Soundskilz, Inc., for the 2021 4th of July Celebration in light of the ongoing COVID-19 pandemic
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Statement of Issue:
The annual Huntington Beach 4th of July Celebration, including the parade, fireworks show, and pier festival, is an iconic experience and beloved tradition here in the community. Planning for this year’s event has been heavily influenced by the ongoing effects of the COVID-19 pandemic. Social distancing, limited attendance, and other restrictions may still be in effect come early July. In addition, widespread negative economic impacts are creating difficulties in securing previous financial partnerships, as well as the ability to attract new sponsorships. City staff, the Fourth of July Executive Board, and contractors have discussed modifications to the traditional 4th of July Celebration for City Council consideration in order to adapt to current COVID-19 related guidelines and challenges.
Financial Impact:
No additional appropriations are needed in order to approve the recommended action. Should the City Council approve moving forward with the recommendation, a reimbursable deposit of $26,000 will be required to reserve the fireworks display, along with $6,000 for the 5K run. Reimbursement is anticipated upon final reconciliation of revenues and expenses of the 2021 event at the earliest or no later than the traditional 2022 4th of July celebration.
Recommended Action:
recommendation
A) Direct staff to proceed with a modified version of the traditional 4th of July Celebration, as approved by the Fourth of July Executive Board, to include a neighborhood parade, home decorating contest, Pier Plaza Festival, modified 5K run, and fireworks show; and,
B) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Professional Services Contract Between the City of Huntington Beach and Soundskilz, Inc. for the Production and Management of the Annual Fourth of July Celebration.”
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Alternative Action(s):
Do not approve recommended actions A and B and direct staff accordingly.
Analysis:
Because of the expected challenges of the COVID-19 pandemic, coupled with the City’s commitment to preserving public health and safety, the Fourth of July Executive Board (Board) unanimously approved for City Council consideration a modified plan for the 2021 4th of July Celebration (Celebration) at their meeting on March 3, 2021.
As proposed by staff and consultant Soundskilz, Inc. (Soundskilz), the recommended alternative Celebration includes a neighborhood parade, home decorating contest, Pier Plaza Festival, and a modified 4th of July 5K run. Since all components of this adapted celebration are permissible under current state and county COVID-19 guidelines, it appears likely they will still be allowed this summer, providing a fiscally and socially responsible direction for the Celebration.
The neighborhood parade component enables the Celebration to maintain the City’s historical record of presenting a parade 118 years in a row and provides parade access to the community, while adhering to all potential restrictions concerning social distancing and mass gatherings. The parade would be expanded upon from the 2020 concept and would include creative ways for potential sponsors to be involved. Several different parade routes would allow the reach of the parade to extend to a vast majority of the Huntington Beach community.
Additionally, an enhanced Pier Plaza Festival (outdoor marketplace) will include an expanded footprint of vendors to help raise funds for the 2021 and 2022 celebration.
The modified 5K run would include staggered start times over multiple days on a pre-designed course at Huntington Central Park. In addition, a virtual race component would allow participants to compete on their own time and comfort level. With safety measures in place, as well as the use of existing park space for the course, costs for the run can be kept to a minimum to ensure a fiscally sustainable and authentic 5K experience.
The home decorating contest is an additional way for the community to remain involved in celebrating the 4th of July. As in 2020, the 2021 contest would include homes and businesses city-wide, and would encourage a larger cross-section of the community to participate.
The proposed plan also features a fireworks show over the pier. Due to the social and fiscal uncertainties regarding the COVID-19 pandemic, the fireworks show is the most tentative element of this year’s celebration.
As also discussed at the March 3, 2021 Board meeting, limitations placed on this year’s Celebration due to COVID-19 guidelines may not allow the necessary revenue streams to fund prepaid deposits for a traditional fireworks display and 5K run. That said, staff is recommending City Council approval of Amendment No. 1 to the Professional Services Contract between the City of Huntington Beach and Soundskilz, Inc. (Attachment #1). This amendment would allow the City and Soundskilz to mutually agree in writing that the City may directly pay certain approved prepaid vendor expenses and/or deposits. Soundskilz would be required to include such expenses paid by the City in its budget reconciliations, and repay the City from revenues/profits of the Celebration.
Specifically, in order to reserve fireworks services for this year’s event, a non-refundable 50% deposit of $26,000 is due by May 1, 2021, as well as a $6,000 deposit for the 5K run. Due to the limited available funds and lack of revenue and sponsorships, there is a need for the City to advance the deposits directly to the fireworks and run vendors to ensure these elements are included in the Celebration plans. Per the proposed contract amendment, Soundskilz will reimburse these amounts to the City, pending a true-up of revenues and expenses following the 2021 Celebration.
Staff and Soundskilz anticipate that the revenue from the Pier Plaza Festival and modified 5K run will cover the expenses of the fireworks show and run completely. Should the net revenue generated from the 2021 Celebration prove to be insufficient to cover the deposits advanced, the amounts would be reimbursed to the City following a return to a traditional Celebration in 2022. Finally, if the City be mandated to cancel the fireworks display due to COVID-19 restrictions, the $26,000 advanced for the fireworks show would be applied to the 2022 Celebration, thus limiting the City’s financial exposure.
Should City Council approve both recommendations as proposed, staff will begin working immediately with the Board and Celebration contractors to finalize and implement the new plan and corresponding budget.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
COVID-19 Response
Attachment(s):
1. Professional Services Contract Amendment No. 1 between the City of Huntington Beach and Soundskilz, Inc.
2. Professional Services Contract between the City of Huntington Beach and Soundskilz, Inc.