Title
Discussion of Fee Schedule for Special Event Services
Brief Description: There are on average over 70 different City-permitted events annually with many of them repeating multiple times over the events season, totaling on average over 105 total events. Fees related to application ad services are charged for some events but not consistently to all.
Body
Legislative History
Resolution No. 08-127, Waiving all Costs, Fees and Charges for City Services Provided to Special Events Permitted by the City during July 6 - September 17, 2008, passed September 17, 2008.
Ordinance No. 08-158, Adopting a Revised Special Events Policy and Handbook, passed December 17, 2008
Ordinance No. 16-46 stated, ‘The City shall invoice the applicant for City services provided to temporary special events at rates set by the City Manager. The City Manager or the Manager’s designee reserves the right to determine the services and levels of services provided to any event.’ This legislation that allowed the city to charge new events and existing events wanting additional services, passed on April 19, 2016.
Purpose & Explanation
Update for the May 23, 2023 Workshop Discussion
At the May 9, 2023 Council meeting, Councilwoman Schlademan requested the group discuss the proposed fee schedule in the upcoming workshop. Prior to the May 9th meeting, staff had already began reaching out to some key stakeholders for feedback on the proposed fee schedule. The Hudson Farmers Market and Classic Events Services (manages Fairmount Properties events) noted the proposed fee schedule appears to be acceptable. An update will be provided at the June 6th meeting regarding any additional feedback received.
Update for the April 25, 2023 Workshop Discussion
Based on discussions at the April 11, 2023, Council workshop, a working group of Councilors Banweg, Kowalski, and Sutton met to review in further detail. Please reference the attached memorandum.
Update for the April 11, 2023 Workshop Discussion:
Based on the Council discussion from March 14, 2023, staff has prepared the attached documentation regarding fee schedules and adjustments for consideration.
Information submitted for March 14, 2023 Workshop Discussion:
Currently, the City charges fees for special events, with the exception of City-partnered events and those grandfathered by ordinance 16-46.
The current fees are:
All events pay a $25 application fee.
Water $25 (one-time fee for multi-day events)
Electric $25 per pedestal (one-time fee for multi-day events)
Road Closure $300 per closure and $300 per reopening if second trip is required.
There is no charge for tent inspections, cooking inspections or fireworks inspections provided by the Hudson Fire Department.
Events pay off-duty police officers directly at a rate of $50 per hour with a minimum of 4 hours. This rate has increased in 2023 from the previous rate of $40 per hour.
City staff has reviewed the special events fees and the revenue generated by the fees. The City received approximately $2000 per year in revenue from these fees. The administrative time to invoice, collect and deposit these fees is likely more than the offsets the revenue collected.
Staff is seeking direction from Council on the removal of all special event fees for the following reasons.
1. Special events are put on by non-profit community organizations. Event costs can be a financial burden to these organizations. These organizations rely on the same resources for fundraising.
2. Hudson has the unique advantage that the majority of special events are put on by community organizations at no cost to the City of Hudson. This alleviates not only expense to the City, but also the burden of coordinating volunteers to work at the events.
3. The current ‘grandfathering’ is unfair to organizations creating new events that might be very beneficial to the downtown and the community.
4. Special events create vibrancy in the community and removal of fees shows appreciation to the organizations putting them on.
5. Special events bring visitors to Hudson, create foot traffic and support Hudson businesses.
6. The fees generate an insignificant amount of revenue that does not justify the staff time to process.
7. For new large scale events requiring or events put on by for profit entities, the City Manager could institute fees on a case by case basis.
Timing Considerations
This change would apply to all 2023 Special Events.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council review the attached documentation and provide direction on amendment to the current special event fee schedule.
Submitted by,
Thomas J. Sheridan, City Manager
Greg Hannan, Community Development Director
Katie Behnke, Economic Development Manager