Blog: Don't Bail Out the Friday Family Festival

Dear Mayor and City Council:

I am writing to comment on the following points/statements in the City Council
Agenda Report referenced above:

1. Survey of surrounding cities' options for operating farmers' markets or family festivals, p. 2 - Great job on the survey and many good ideas for  structuring these events. Exactly none of these ideas included waiving franchise fees for operators of these events. What this survey clearly shows, is Monrovia can retain the tradition of the family festival without bailing out the current operator, Family Festival Productions, Inc., to the tune of $57,400.

 2. "In Monrovia's case, the purpose of the market is to attract business to the Old Town District and provide Monrovians with an option to purchase fresh, organic produce and entertainment. Currently, Family  Festival Productions, Inc., while not fulfilling their franchise fee payments as specified in their contract, has sought to fulfill that mission every Friday night.', p. 3  - So far, there is no evidence that the Old Town merchants have weighed in on this issue. Would it be possible to hear from them?

3. "Since the issue was initially scheduled on the agenda in December and while Staff has been researching practices in other communities, several vendors have expressed an interest in providing a proposal to take over production of the Friday night event." p.3 - This is very positive
news for Monrovians interested in continuing the tradition of the Friday night
event - without the necessity of draining the City's coffers.

4. "Fiscal Impact: Forgiveness of past fees and waiver of future fees would result in a total revenue loss of an estimated $57, 400." p. 3 -
Family Festival Productions, Inc. is requesting a waiver of fees through 2014 for a total of $57,400. Since 2009, the City has attempted to resurrect this struggling business by underwriting its losses, to no avail - the business is apparently still unable to meet its obligations. This is a substantial amount of money and is only the base cost of what it takes to put this event on each Friday. It doesn't include other substantial costs the City must absorb such as additional law enforcement, removal of refuse etc. There is simply no rational justification for the granting of this request. 

Options for Council's consideration, p.3 - 

   (1)  Do not waive franchise fees. Work with the Contractor to collect any outstanding fees and continue to collect future franchise fees - Given the facts, this is the only viable choice. With other vendors interested in taking over the Friday night event, why not proceed with the 30-day notice to abate, demand payment of all franchise fees due to date and if not paid, proceed to terminate the contract with Family Festival Productions, Inc.

   (2)  Waive past due franchise fees and future franchise fees, and direct the Contractor to operate a Wednesday night show and Sunday morning farmers market at cost in lieu of payment - This is a self serving and completely impractical suggestion on the part of the Contractor. Here's an overview of this proposal: I am a small business owner in Monrovia. My business isn't doing well, as a matter of fact, I can't pay my obligations as they come due. First, I ask for a handout from the City for past and future financial obligations. When that doesn't work right away, I come up with another idea: I'll open up two other businesses, out of the goodness of my heart at which I will make no money for a period of years, and the City will accept this proposal in lieu of payment. 

   (3)  Waive the past due fees and future fees for the remainder of the Contract or any period of time the Council deems appropriate, or elect to temporarily reduce the franchise fees. - This option is also a non-starter for all of the reasons cited in my January 13, 2013 email to the Council.

In view of the foregoing, I would strongly urge the Council to pursue Option 1.

Respectfully submitted,

B. Lynne Palmer, Esq.