TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kristen M. Crane, Assistant City Manager
PREPARED BY: Brian Ambrose, Community Services Director
SUBJECT: Award of License Agreement for Special Event Management Services for
Town Square Park Amphitheater and Amendment of Town Square Park
and Amphitheater Usage Policy and Operations Framework
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RECOMMENDATION
recommendation
Authorize the City Manager to execute a two-year License Agreement with Newman Hospitality Group, LLC, for special event management services at the Town Square Park Amphitheater; and
Approve the amended Town Square Park and Amphitheater Usage Policy and Operations Framework.
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PRIOR ACTION/VOTE
In 2021, the City Council held three (3) Workshops to receive information and provide direction on the usage of the Town Square Park Amphitheater project (Non-Action Item: Consensus).
On April 5, 2022, the City Council established by minute order the Town Square Park Amphitheater Ad Hoc Subcommittee and appointed Council Member White and Council Member Warren to serve on the Subcommittee (Vote: 5-0).
On November 1, 2022, the Town Square Park Amphitheater Ad-Hoc Subcommittee updated the City Council with recommended next steps. The City Council directed staff to bring back the item for further discussion (Non-Action Item: Consensus).
On January 17, 2023, the City Council appointed Council Member Holliday and Council Member Warren to serve on the Town Square Park Amphitheater Ad-Hoc Subcommittee (Vote: 5-0).
On April 4, 2023, the City Council approved a Use Policy and Operations Framework for the Town Square Park and Amphitheater for a 24-month pilot period and directed staff to proceed with the recommended next steps for the implementation of the policy and a Request for Proposals (RFP) to select a special event management company to provide several events annually at the Amphitheater (Vote: 5-0).
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
BACKGROUND
Within the last several years, the City constructed an amphitheater at Town Square Park with the vision of using the space to host major community events. Part of the City Council’s vision for the Amphitheater has been to work with a third-party that specializes in special event management to host large-scale events. Several City Council discussions have occurred on this topic.
The City completed a Request for Information (RFI) process in 2022. The process yielded helpful information, which led the City to pause to take time to flush out a Use Policy and Operations Framework for the Park and Amphitheater, deemed as a critical foundation for a prospective private firm to understand the broad scope of their responsibilities prior to the selection process.
Working with a City Council Subcommittee of Council Members Holliday and Warren, the Use Policy and Operations Framework were presented to the full Council for approval on April 4, 2023. At that time, the City Council provided direction to proceed with a Request for Proposals (RFP) process including the parameters set forth by the Use Policy and Operations Framework.
In pursuing the concept of a special event management company that would have a License Agreement for use of the amphitheater, the goals were to activate the Town Square Park Amphitheater with community events and add vitality, while also being a good neighbor and taking good care of the facility and also to consider this as an economic development driver to offer events that would create a draw for visitors to Murrieta.
Between early April and early June 2023, the RFP was prepared by staff, along with the draft Licensee Agreement for this endeavor, which was then included within the RFP for advance consideration by prospective firms.
In early June 2023, the City released the RFP for Special Event Management Services at the Town Square Park Amphitheater. Proposals were due July 14, 2023, and staff and the City Council Subcommittee conducted interviews in early August.
The City Council Subcommittee and staff recommend that the City Council award a License Agreement to Newman Hospitality Group, LLC (NHG). NHG is proposing to provide four events per calendar year for 2024, but the scope could be up to six events per year. The Agreement is for a two-year term, consistent with the 24-month pilot period, with the ability for extension upon City Council approval.
NHG has extensive experience providing special event management services locally, including ownership of the Stampede venue in Temecula and the Old Town Music Festival held in Temecula.
For the Town Square Park Amphitheater, NHG is proposing four events in 2024, including:
• Jazz and Blues Festival - a live music event showcasing local and national jazz musicians (April 20, 2024);
• Old Town Music Festival - a two-day annual country music festival with national touring artists (June 8-9, 2024);
• A live country music concert featuring a national act (August 17, 2024); and
• Rocktoberfest, a live music event showcasing local breweries (October 19, 2024).
NHG demonstrated to staff and the City Council subcommittee that they understand the scope of services they are responsible for providing as a turn-key special event producer and host and that they have the experience to do so.
Highlights of the scope of services NHG will provide includes full responsibility, including financial responsibility, for all aspects of planning and producing the special events, before, during, and after, in conformance with the operational framework and use policy established by the City Council in April 2023 (and as recommended to be updated as part of this agenda item).
There are several provisions for which NHG has requested a modification to the previously approved operational framework. Staff and the Council subcommittee have reviewed and discussed these and recommend that the City Council allow these modifications as shown in redline on Attachment 2:
• Service of hard alcohol would be allowed within the ticketed-VIP area only, with heavy management oversight and security, with protocols identified in Exhibit C - Additional Provisions of the Agreement;
• Sale of canned hard seltzer beverages and canned spirits/cocktails - The recommendation is to allow beverages that have up to thirteen percent (13%) alcohol by volume (ABV), which is comparable to that found in wine and beer;
• Allowance of a VIP parking area, which would include premier parking as part of the VIP ticket price; and
• Sponsorships by alcohol-oriented businesses may be allowed solely in exchange for in-kind contributions. For example, a common practice in the event industry is for alcohol-oriented businesses to provide deeply discounted alcohol for sale and use of the booths and equipment for service of alcohol in exchange for signage placement.
To address these modifications, the Use Policy and Operations Framework have been amended (Attachment 2) for City Council approval.
In exchange for use of the space, NHG will share with the City five percent of net revenues. NHG will be responsible for all other costs associated with the event.
Staff and the subcommittee recommend that the City Council approve a two-year License Agreement with NHG as a pilot program. The License Agreement allows flexibility in the event there is a change that needs to be made or to end the Agreement after just one event if it is not successful.
FISCAL IMPACT
There is no immediate fiscal impact associated with this item. As the Licensee, NHG shall be solely responsible for all expenses incurred in connection with operating and maintaining the facility for special events and carrying out their duties under the Agreement. There will be indirect costs to the City for the Community Services Department and City Manager’s Office staff time for management of this contract and by staff from nearly all City departments associated with the Special Event Committee’s role overseeing this program. There will also be a cost to the City for things like long-term upkeep of the facility. The agreement includes a revenue-sharing component, wherein NHG will share with the City five percent of net revenues. NHG will be responsible for all direct costs for events. The terms for administration of the revenue share are identified in Exhibit C of the Agreement.
A revenue budget associated with the revenue-sharing component of the agreement will be included in a future budget update.
ATTACHMENTS
1. License Agreement with Newman Hospitality Group
2. Amended Town Square Park and Amphitheater Usage Policy and Operations
Framework