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CC Resolution 12893 - Oktoberfest 2022RESOLUTION NO. 12893 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING A 50% REDUCTION IN FEES CHARGED TO THE CAMPBELL CHAMBER OF COMMERCE FOR THE 2022 OKTOBERFEST WHEREAS, on August 2, 2022, the Campbell Chamber of Commerce ("Chamber") applied for a Downtown Special Event Fee Waiver and requested that the City of Campbell ("City") reduce the fees charged by the City for the Chamber to hold its 2022 Oktoberfest in Downtown Campbell "in the amount of 50% or $25,000, whichever is less;" and WHEREAS, the total City cost for the Oktoberfest is estimated at approximately $65,000 (including application processing fees and fees for Public Works personnel to prepare the public right of way for the event and for Police Department sworn personnel to staff the event); and WHEREAS, the City's Downtown Special Event Fee Waiver Policy allows fora waiver of 25% of processing fees and 25% of staffing fees if the applicant: • Provides "an itemized financial statement showing direct costs for event expenses and revenue for which the fee waiver is requested, and a profit or loss sheet for the previous operating year, comparing the projected budget with the actual budget showing the net profit or loss..." • Has a "proposed budget on file, which projects a break-even or profitable event, when calculated using the fee waiver requested..." • Provides documentation that the event will "generate less than $100,000 in net revenue (based on financial statements from the prior year's event)... and • Has "no outstanding debts payable to the City of Campbell..."; and WHEREAS, on September 6, 2022, the City Council heard the Chamber's request for a fee waiver; and WHEREAS, on September 6, 2022, the Chamber had an outstanding balance with the City of $48,649.52 related to fees charged by the City for the Chamber's 2022 Boogie Music Festival; . and WHEREAS, on September 6, 2022, the City Council voted to grant a 25% reduction in fees for the 2022 Oktoberfest provided that the Chamber and the City came to a mutually acceptable agreement for the Chamber to pay the outstanding balance of $48,649.52; and, upon the Chamber submitting the required financial documentation to support a fee waiver request; and WHEREAS, on September 6, 2022, the City Council further voted that the Chamber could return to the City Council on September 20, 2022 to pursue its request for a 50% reduction in fees for the 2022 Oktoberfest; and WHEREAS, on September 12, 2022, the City Manager's Office and the Finance Department met with the Chamber and came to an agreement that the Chamber would pay the outstanding balance of $48,649.52 due to the City for the 2022 Boogie Music Festival, subject to the terms of a promissory note requiring monthly payments over a period of 19 months; and WHEREAS, with regard to the request for a reduction in fees for the 2022 Oktoberfest, the Chamber shared the following: • A detailed profit and loss sheet for the previous year's event; • Documentation supporting projected costs for the 2022 Oktoberfest event expenses and revenue, for which the fee waiver is being requested; • Documentation supporting a projected break-even or profitable event, when calculated using the fee waiver requested; and • Documentation supporting that the event will generate less than $100,000 in net revenue; and WHEREAS, based on the Chamber's documentation, staff believes the Chamber has met the requirements to support a 25% reduction in fees; and WHEREAS, the Chamber also shared with staff documentation that detailed the profits and losses for the Oktoberfest event dating back to calendar year 2017; and, based on this documentation, the losses the Chamber clearly experienced during COVID-19, and the representations the Chamber made regarding steps it is taking to cover the Chamber's operational costs, staff believes that a 50% reduction in the fees for the 2022 Oktoberfest is an appropriate reduction for the City Council to approve; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell does hereby approve the Campbell Chamber of Commerce's request for a fee waiver reducing the fees charged by the City of Campbell for the 2022 Oktoberfest, currently estimated at approximately $65,000, by 50%. PASSED AND ADOPTED this 20th day of September 2022 by the following roll call vote: AYES: Councilmembers: Gibbons, Lopez, Landry, Bybee, Resnikoff NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Paul Resnikoff, Mayo ATTEST: t,4kll Andrea S ders, City Clerk