02-05-2002 - Invitation to Participate in 2003 Tournament of Roses ParadeCity of West Covina
Memorandum
r
TO: Andrew G. Pasmant, City Manager
AGENDA
and City Council ITEM NUMBER H-1
DATE: February 5, 2002
FROM: Tom Hatch, Community Services Director PRINTED ON RECYCLED PAPER
SUBJECT: INVITATION TO PARTICIPATE IN 2003 TOURNAMENT OF ROSES
PARADE
SUMMARY: The Pasadena Tournament of Roses Association has extended the City of West
Covina an invitation to participate in the 2003 Rose Parade. If the invitation is
accepted, a $2,500 entry fee must accompany the reply.
BACKGROUND:
The City began its participation in the Tournament of Roses Parade in 1999. The City sought an
invitation as part of the celebration of West Covina's 75th Anniversary Celebration. The City's
participation was approved by the City Council with the condition that fundraising be done to
offset the cost of the float. The West Covina Rose Float Association grew out of the 75th
Anniversary Executive Committee. While this group has changed in membership and
leadership, it has worked, over the past four years to promote the float and the city, as well as to
organize and staff events for the purpose of generating revenue to offset the cost to the City.
Since this time, the City has had float entries in the 2000 and 2001 parades. The City of West
Covina has made strong showings each year. The 2000 float entry was awarded the Past
Presidents' Trophy for "Most Innovative Use of both Floral and Non -Floral Materials." The
2001 entry was awarded the Mayor's Trophy for "Most Outstanding City Entry."
City pride has been among the benefits of participating in the Rose Parade. The positive energy
that is created in bringing community members together, as do all of the City's special events, is
also beneficial. Several hundred individuals volunteered to work on the 2001 Rose Float, one
from as far as Tennessee. Many supported the float at various fundraising events, with over four
hundred residents responding with donations solicited through waste collection bills. Many
showed their support by coming to view the float at the Westfield Plaza when it was brought
back to West Covina.
Media exposure and promotion represents another important benefit that the City derives by
participating in the Rose Parade. The City of West Covina enjoys promotion from the positive
press in the local newspapers, as well as through the television and cable coverage to the several
hundred million viewers worldwide. While the exact, value of this benefit is unknown, it may
help to consider the value of media exposure determined by another client of Charisma Floats,
Legoland. Legoland, like other corporations, participate in the Rose Parade for the wide
exposure that they receive. Subsequent to the 2000 Rose Parade, the advertising and marketing
agency of Legoland determined that the cumulative value of the exposure it received by
participating in the parade to have a monetary value of $1.5 million.
DISCUSSION:
The Pasadena Tournament of Roses Association has extended the City of West Covina an
invitation to participate in the 2003 Rose Parade. (See Attachment #1). In order to hold our
place, the Tournament of Roses Association requested a reply by January 31, 2002. Staff
received approval for an extension on this deadline to February 6, 2002. A $2,500 entry fee must
accompany an affirmative reply. The entry fee is not refundable if it the City Council decides
not to pursue the project subsequent to paying the entry fee.
The short timeline and need for a prompt reply has required staff to bring this issue to the City
Council for consideration prior to the presentation of the final financial report for the 2002 Rose
Parade Float event. The final financial report will be presented at a later time, including a report
from the Float Committee. A preliminary financial status report ending January 23, 2002 is
presented in the next section.
Z.-Welly MCDonalMose ParadelStaff Reports -Thursday MentosL4genda Report 1-5-02 - Invitation for 2003.doc
FISCAL IMPACT:
The impact of accepting the invitation would be $2,500 for the entry fee. If accepted, a budget,
as well as a contract for the design and construction of a float will be presented to the City
Council for consideration at the March 5 meeting.
Staff has included a summary of revenues collected and expenditures paid for the 2002 Rose
Float through January 23, 2002. For the 2002 Rose Float, the City Council appropriated
$120,000 (and additionally gave staff direction to maintain levels of transportation support given
in previous years) on April 3, 2001. The Association was expected to return $50,000 through
fundraising efforts and a $50,000 transfer from the Business Improvement Tax Fund (BIT) to the
General Fund scheduled for July 1, 2002.
Prior to the approval of this appropriation, $2,500 was paid for the 2002 Entry Fee from the
appropriation (BIT) remaining from the 2001 float.* Therefore, the appropriation was overspent
by $5,415. No additional expenditures are anticipated. However, outstanding revenues in the
amount of approximately $5,000 are anticipated.
Preliminary Report
Expenditures
" Parade Entry Fee
$
2,500
Cost of Float
$
100,000
Merchandise
$
2,927
Game Tickets
$
5,115
Golf Tournament
$
8,690
Security at Plaza
$
590
Photography
$
6,760
Summer Concerts
$
615
Supplies
$
718
TOTAL
$
127,915
Revenues
Memberships
$ 880
Donations
$ 5,878
Summer Concerts
$ 4,788
Golf Tournament
$ 17,262
Merchandise
$ 4,912
Tickets
$ 8,300
TOTAL
$ 42,020
Because the amount raised by the Float Association for the 2001 float ($12,373) was in a
business account at a local bank, the $120,000 appropriation from the City for the 2002 float
appropriation was revised to $107,627. As of January 23, 2002, the balance of the Float
Association business account is $5,613. The balance in the City account (110-320-2349-6206) is
$ 8,972. The table below depicts this activity.
FY 00-01
BIT
Appropriated $ 22,500
Expenditures $ (22,500)
Balance 1 $ -
FY 00-01
GF
$ 107,627 $
$ (30,638) $
$ 76,989 f 1 $
FY 01-02
GF
76,989
(68,017)
8,972
Association
Business
Account
$ 12,373
$ (6,760)
$ 5,613
TOTAL
$ 142,500
$ (127,915)
$ 14,585
In previous years, the float has been funded by the Business Improvement Tax. Because that
funding source no longer exists, alternative funding sources, i.e., General Fund, will have to be
identified. Below is a table depicting a summary of the total revenues and expenditures for the
first four Rose Float events.
Revenues Raised
Expenditures
Surplus/(Deficit)
ROSE FLOAT EVENT YEAR
1999 Float 2000 Float 2001 Float
Actual Actual Actual
$ 101,623 $ 66,360 $ 2,500
$ (162,585) $ (148,927), $ (I20,000)
.(60,962). .r $ (82,567)
2002 Float
(Actual)**
$ 42,020
$ (127,915)
Preliminary Report as of January 23, 2002
Z.-Welly McDonaldlRose ParadelStaff Reports -Thursday MemosUgenda Report 2-5-02 - Invitation for 2003.doc
Because of the interest in identifying alternative funding sources, the Association has considered
some potential options for funding or assisting with the funding of next year's float, if
participation in the 2003 parade is approved. These approaches were forwarded to
Councilmembers in the City Managers Weekly Memorandum on January 18. These approaches
include maintaining the current practice (City underwriting the cost with the Association
working to generate offsetting revenue), a transition to a self-supporting foundation (City would
provide financial assistance in the short-term. Emphasis on year -around fundraising,
incorporating with a 501(c)3, soliciting pledges from major sponsors), a proposal for the
installation of freeway billboard signs, and an increase in the transient occupancy tax.
RECOMMENDATION: /
Staff has identified three options for the City Council to consider:
1. Accept the invitation, authorize payment of $2,500 for the entry fee from the existing
available appropriation in the business account, and participate in the 2003
Tournament of Roses Parade or;
2. Decline the invitation; or
3. Accept the invitation, authorize payment of $2,500 for the entry fee from the existing
appropriation, and agendize the issue for further discussion at a later date.
It is recommended that the City Council consider these options and direct staff to act
accordingly.
Prepared By:
,, �2 �LA . 0&��0
Kelly Nponald, Administrative Aide
Reviewed and Approved by:
2M
om Hatch, Community Services Director
ATTACHMENTS
1. Invitation from Pasadena Tournament of Roses (January 22, 2002) - Attachment #1
Z.-Welly McDonaldlRose ParadelStaff Reports -Thursday MemoA4genda Report 2-5-02 - Invitation for 2003.doc
0
January 22, 2002
r.
PASADENA TOURNAMENT of ROSES �•`f.'"`
COM1v11 1 F ::RVICE
CITY OF
WEST COVINA
Tom Hatch
City of West Covina
1444 West Garvey Avenue South, Room 205
West Covina, CA 91791
Dear Mr. Hatch
It is with utmost pleasure that I, on behalf of the Board of Directors, extend
this official invitation to participate in the 114th Tournament of Roses Parade, to be
held on Wednesday, January 1, 2003, in Pasadena, California, U.S.A.
Please respond to this invitation before January 31, 2002. An entry fee of
$2,500 should accompany the enclosed update and acceptance forms at that time.
We welcome your continued participation in America's New Year Celebration.
Yours sincerely,
Gary Thomas
President
391 SOUTH ORANGE GROVE BOULEVARD • PASADENA. CALIFORNIA 91 184
TEL 626.449.4100 • FAX 626.449.9066