TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Director of Community Services
PREPARED BY: Laura Frasso, Special Events Supervisor
SUBJECT Discussion of Increasing Support for City Signature Event Tour de
Murrieta
title
end
RECOMMENDATION
recommendation
Provide direction to staff on whether to increase in-kind support to the Signature Event, the Tour de Murrieta.
body
PRIOR ACTION/VOTE
On July 6, 2021, Council adopted Resolution No. 21-4440, establishing fee waiver tiers for approved Murrieta Signature Events, and declaring the Tour de Murrieta a signature event, which provided in-kind services not to exceed $10,000 (Vote 5-0).
On September 21, 2021, Council adopted Resolution No. 21-4473, retroactively applying new signature event tier 4 fee waiver to the 2021 Tour de Murrieta bicycle race (Vote 5-0).
On November 16, 2021, Council adopted Resolution No. 21-4490, approving the Tour de Murrieta’s request to waive the pending fee balance for the 2020 Tour de Murrieta in the amount of $7,797.92 (Vote 5-0).
At the June 6, 2023, City Council meeting, Ernie Sanchez, with the Tour de Murrieta, spoke on the need for continued support from the City (Non-Action item). Following, Mayor DeForrest asked and gained consensus from the City Councill to add this to a future City Council Meeting for consideration.
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
BACKGROUND
City Signature Events are events deemed to be a cultural and economic benefit to the public. These events tend to be recurring on an annual basis and are large scale in size. Additionally, only the City Council has the authority to approve new Signature Events. Signature Event status provides the organizer of the event with in-kind contributions (not funding) from the City, such as waiver of City permit fees and assistance with providing public safety, setting up signage, marketing, cleaning, and trash pick-up. Currently, the list of Signature Events includes the Tour de Murrieta, Murrieta Rod Run, Susan G. Komen Walk, and Rotary’s Field of Honor.
The Tour de Murrieta bicycle race is an annual tour-sanctioned race. This year’s race in 2023 was the 18th race in Murrieta. The event includes multiple races, including a one-mile lightning course, a four-mile circuit race, and a popular children’s race.
In 2021, the City Council adopted a resolution establishing formal fee tiers for approved City Signature Events, which authorizes the provision of in-kind services not to exceed $5,000 for events in their first year if the event organizers have established history in another location or if the event provides an exceptional benefit to the community; provides $5,000 in in-kind support for events in years 2-5; provides $7,500 in in-kind support for events in years 6-9; and provides $10,000 in in-kind support for events occurring in the City of Murrieta longer than 10 years.
The Tour de Murrieta was formally made a Murrieta Signature Event in July 2021 and was given Signature Event tier 4 status. The Tour de Murrieta received its in-kind contribution for 2021 totaling $10,000 retroactively by Council approval because the event occurred one (1) month before being declared a Signature Event. The event was also granted a Council-approved fee waiver totaling $7,797.92 for their 2020 bicycle race due to the economic benefit the Tour de Murrieta brings to the downtown Murrieta area and local hotels.
Tour de Murrieta has brought to the City’s attention that increasing costs of services have caused a financial burden to the event, and they are requesting additional funding in the amount of $5,000 to mitigate these costs. Organizers of the Tour de Murrieta also request the continued support of the Public Works Department for traffic route set-up and tear-down (work effort billed by Public Works to the event amounts to approximately $6,000 annually) as part of its in-kind contribution. At this time, the Tour de Murrieta is the only Signature City Event that receives Public Works Department assistance installing traffic control devices. An internal decision was made in previous years to move away from installing traffic control devices by City forces due to the impacts on staffing levels and overtime. Therefore, all other Signature City Events, as well as all external events approved through the Special Events Division, contract with private traffic control businesses. Utilizing internal City forces impacts regular City duties and commits staffing that may not be available. It is assumed that contracting for this service is a regular cost of coordinating such large-scale events for event organizers. When the fee tiers were originally determined, it was implied that all event organizers would incur all costs exceeding the in-kind support level.
The Tour de Murrieta is a valued event within the City however, while the economy has seen unprecedented fluctuations since the fee tiers were established in 2021, it has only been two years since event organizers were presented with the in-kind increase. Given current circumstances, staff anticipates other non-profit Signature Event sponsors will make similar requests if additional appropriations are not provided to all signature events as well as the Tour de Murrieta. Event organizers have shared with staff that the cost of providing the Tour de Murrieta event is becoming unsustainable, though staff has not requested, nor received, documentation to determine the event’s costs and profits or additional sources of revenue such as sponsorships.
If the City Council desires to increase the in-kind contribution amount for the Tour de Murrieta, staff will prepare a resolution modifying Resolution Nos. 21-4440 and 21-4473, which will be brought back to the City Council at a future meeting.
FISCAL IMPACT
Should the City Council provide the Tour de Murrieta with an additional $5,000 of in-kind support, the fiscal impact on the City would be a loss in revenue in the Special Events account 1105000-43726, as the City would be providing the same services for the event as in prior years without reimbursement for those services.
ATTACHMENTS
1) Resolution No. 21-4440
2) Resolution 21-4473