Attachment 9. Addendum MemoADDENDUM
CITY OF C HANHASSE N
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
TO: Mayor & City Council
FROM: Chelsea Petersen, Assistant City Manager
Eric Kittelson, Lieutenant Carver County Sheriff s Office
Jerry Ruegemer, Recreation Superintendent
MacKenzie Walters, Assistant Planner
DATE: February 27, 2017
SUBJ: Special Event Permitting Fees
On January 9, 2017 staff presented an issue paper to the City Council which outlined areas for
improvement within the ordinance that governs temporary events and sales. During the work
session staff discussed possibly raising fees to better recoup the cost of processing and hosting
these events. City Council directed staff to investigate the actual costs associated with these
events. This addendum is the result of staff s investigation.
SUMMARY
The cost of special events to the City of Chanhassen falls into the following categories:
1. Law enforcement
2. Park services
3. Administrative
The City's Public Works and Engineering Department also provide barriers for block parties and
other residential events utilizing the Street Closures for Neighborhood Events Permit; however,
since these types of events would not be regulated by the special event code and staff is not
proposing to change the permit's existing fee, those costs are not included in this report.
Likewise, the costs associated with the Temporary Lifting of No Parking Restrictions Permit are
not included as none of the proposed changes would impact this permit.
Historically, staff has not closely tracked the time and expenses associated with special events.
The result of this is that the values presented in the report represent staff s best estimates of the
time and expenses associated with these events.
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Mayor & City Council
February 27, 2017
Page 2
ANALYSIS
Law Enforcement
Generally, organizations hosting an event that require a police presence, either for security or for
traffic control purposes, must contract directly with the Carver County Sheriff s office. For
some events, like the Fourth of July, the city pays for these officers. Under the proposed
revisions, events sponsored by the city are categorized as Community Events and would not
require a special event permit.
It is estimated that the city spent $2,000 on law enforcement associated with Community Events
in 2016, mostly due to overtime. Lieutenant Kittelson estimates a theoretical maximum overtime
cost of $5,000 for the various Community Events co-sponsored/organized by the city.
Special events are required to contract directly with the Caver County Sheriff's Office, and do
not generate overtime expenses for the city.
Park Services
The impact of events on our park system varies dramatically depending on the number of
participants and nature of the event. For example, a small color run requires more staff clean up
and restoration efforts than a much larger 5K run based out of the High School which briefly
utilizes the trail system. Due to the variable nature of these events and the fact that we have not
historically tracked the costs associated with site preparation, clean up, and reconstruction for
individual events, staff was unable to generate a meaningful estimate of the average cost of a
special event to the park system.
The Park Superintendent was able to provide a cost breakdown of the highest impact event of
2016. These figures represent the upper end of the costs incurred by the city's Parks and
Recreation Department, not including the staff time required to evaluate and process the permit.
Most events require the locate, sweeping, and general pickup/preparation services listed in the
table below; however, the time required to provide these services depends on the location, size,
and impact of the event.
Costs Associated with a Large 5K
Item
Unit
Number of Units
Per Unit Cost
Total Cost
Locate
1 hour
2
$30.00
$60.00
Sweeping
1 hour
6
$30.00
$180.00
Pick up/site prep
1 hour
32
$30.00
$960.00
Restoration
NA
NA
$500.00
$500.00
Clean up
1 hour
8
$30.00
$240.00
Total
$1,940.00
At a maximum, an event of this nature would generate $700.00 in park rental fees, assuming an
out-of-town for-profit organizer renting both shelters for one day during the weekend. Due to the
fee breaks provided for residents and non -profits, rental fees could be as low as $262.50,
assuming a local non-profit renting both shelters for one day during the weekend. Smaller events
renting only a single shelter would generally require less clean up and pick up/site prep time, but
would also only generate a maximum of $350.00 or $131.50, respectively, in park rental fees.
Mayor & City Council
February 27, 2017
Page 3
Currently, the city does not charge a fee for the public gathering permit used to evaluate many of
these events. Under the proposed revisions, these events would need to pay an additional
$100.00 special event fee and a $50.00 race addendum, and provide an escrow against the cost of
any needed restoration to the city's parks and trails.
Even with the proposed fee increase, the city would spend approximately $1,000 in un -recouped
costs for each large 5K race based in a city park.
Administrative Costs
Administrative overhead is very difficult to accurately calculate, especially since staff review of
special event permits typically involves seven staff members and six different departments.
When these events utilize the park or trail system, the review process involves eight staff
members and seven different departments. Additionally, staff does not track the amount of time
spent on each individual permit so it is not possible to know the actual combined time spent on
permits between the various staff members. The following table represents staff s best estimate
as to the minimum amount of combined staff time spent on a typical special event permit with a
complete application. For the purpose of this analysis, staff time has been valued at $30.00 an
hour.
The actual administrative time spent on an event can vary significantly depending on its size,
location, and the completeness of the application. Most applications for races or larger events are
incomplete and require staff to follow up with the applicant to clarify details of the event and
request additional documentation. Incomplete applications can substantially increase the
administrative time spent on a permit application, as is shown in the table below.
Administrative Cost of a Large Event with Incomplete
Estimated Administrative
Cost
Type of Event
Estimated Staff Time
Total
Cost per hour Total
Small outdoor
1.5 hour
$7.50
$30.00 $45.00
Large outdoor
2.0 hours
$75.00
$30.00 $60.00
Race
2.5 hours
$7.50
$30.00 $75.00
The actual administrative time spent on an event can vary significantly depending on its size,
location, and the completeness of the application. Most applications for races or larger events are
incomplete and require staff to follow up with the applicant to clarify details of the event and
request additional documentation. Incomplete applications can substantially increase the
administrative time spent on a permit application, as is shown in the table below.
Administrative Cost of a Large Event with Incomplete
and Problematic Application
Task
Estimated Staff Time
Cost per hour
Total
Review 1" Draft
.25 hours
$30.00
$7.50
31 emails
2.5 hours
$30.00
$75.00
Write I" memo
.25 hours
$30.00
$7.50
I` dt. review
1 hour
$30.00
$30.00
Inter -dept. calls
.5 hours
$30.00
$15.00
Inter -dept. meetings
3.25 hours
$30.00
$97.50
Request/review alt. routs
.75 hours
$30.00
$22.50
Review revised application
.25 hours
$30.00
$7.50
Write 2"d memo
.25 hours
$30.00
$7.50
2"d dept. review
1 hour
$30.00
$30.00
Issue permit
.5 hours
$30.00
$15.00
Total Time
10.5 hours
Total Cost
$315.00
Mayor & City Council
February 27, 2017
Page 4
Under the current permit fee structure all of these events would be subject to either a $50.00
Temporary Sales/Event Permit fee or a $0.00 public gathering permit fee. The proposed fee
change would require $50.00 for a small outdoor event, $100.00 for a large outdoor event, and an
additional $50.00 if the event included a race/walk.
While proposed fees are higher than the estimated administrative costs for events with complete
applications, most permit applications require some amount of additional staff time due to a need
for supplemental documents or revisions. The permit fee is also designed to cover any needed
inspections associated with the event.
Please note that because Public Gathering Permits are not being altered by the proposed changes
to the special events regulations, the administrative time spent processing those permits is not
included in these tables. The way that the code has currently been interpreted, many races have
used the Public Gathering Permit rather than the Temporary Sales/Event Permit. In these
instances, the event organizers do not pay any fees to defray the city's administrative requests.
The proposed revision would require events of this nature to pay a $100.00 special event fee and
$50.00 race addendum fee.
Number and Type of Events
Last year the city issued the following permits and collected the following fees:
2016 Permits and Fees
Current system:
Fee
Total Fees
37 events/sales (Temp, eventpermit)-
$50.00
$1,850.00
12 runs (largegathering)
$0.00
$0.00
5 loud speakers
$10.00
$50.00
$1,900.00
The following table shows how these events would have been impacted if the proposed changes
to the special events ordinance was in place:
2016 Permits under Proposed Revisions
Proposed
Fee
Total Fees
26 tem outdoor events
$50.00
$1,300.00
2 seasonal sales
$50.00
$100.00
21 Special events
$100.00
$2,100.00
5 loud speakers
$10.00
$50.00
15 run addendums
$50.00
$750.00
$4,300.00
A little over half of the events that were conducted last year would not have their fees impacted
by the city's code. These events were predominately employee picnics, customer appreciation
days, grand openings, and outdoor sales promotions. The 21 events that would see a fee increase
were larger events that either required off-site parking, races, or had significant impact on
Mayor & City Council
February 27, 2017
Page 5
surrounding land uses; for example Cars and Coffee would fall into this latter category. Fifteen
of the events held in the city would have needed to file a race addendum.
Surrounding Communities:
As was mentioned in the Staff Report on Temporary Outdoor Events, Seasonal, and Sidewalk
Sales, a survey of Chanhassen KFS Cities found that fees varied widely. Most charged less for
small events and more for larger events. Some cities, such as Stillwater, charged $0.00 for small
events and up to $100.00 for larger events. Other communities, such as Prior Lake, charged
$200.00 for small events and $500.00 for larger ones. Most cities charged between $50.00 and
$100.00 with many requiring additional fees for races/parades.
RECOMMENDATION
Staff is recommending that a modest increase in fees be approved along with the proposed
revisions to the city's special event code. Staff believes this increase would place our special
event fees more in line with surrounding communities and help to defray the costs associated
with processing special event permit applications and hosting the events. Staff will track the
number of special event permits and time spent processing them throughout 2017 and propose
potential revisions to the city's special event fees during the annual fee review.
The proposed fees are as follows:
Temporary Outdoor Event:
... $50.00
Seasonal Sales: .......................
$50.00
Special Event: ......................
$100.00
Run Addendum: .....................
$50.00
ATTACHMENTS
1. Memo from Lieutenant Eric Kittelson dated February 17, 2017.
gAplan\city code\2017\2017-02 various\omnibus\fees addendum.docx
Mem®
TO: MacKenzie Walters, Assistant City Planner
Chelsea Peterson, Assistant City Manager
FROM: Eric Kittelson, Lieutenant Carver County Sheriffs Office
DATE: February 17, 2017
RE: City Sponsored/Supported Special Events
Per your request, I have prepared an estimate of potential cost to the city for law
enforcement services at city sponsored or supported special events. The city has not
realized much of this expense as I have been able to utilize volunteers, some general
patrol support groups, flex shifts and switch shifts for staffing. Many times both city
employed community service officers have assisted as well, which is generally
accomplished through priority scheduling, with no overtime or increase in hours on their
behalf. Please keep in mind these are estimates as contracted services for off-duty
events change annually and the overtime rate is dependent on the range of the deputy
or sergeant in the current wage scale. For 2017 the Sheriffs Office utilizes the off-duty
contract rate of $70.00/hour and $90.00/hour for a county observed holiday. These are
fees that the event organizer would be responsible for and not the city. When the city
augments city sponsored/supported events for non-profit and charity events, the
overtime rate the Sheriffs Office utilized in 2016 is $59.21/hour.
February Fest:
• two deputies at 5.0 FTE hours/$59.21 hours=$592.10 (there was no cost to the
city in 2017 as I utilized on -duty staff, reserve volunteers, and two full time
licensed general patrol Recreation Services Deputies based on the event being
located on the ice/water.
July 2-4:
• July 2 -two deputies at 5.0 FTE hours/$59.21 hours=$592.10 (there was no cost
in 2016 as I flexed the School Resource Officer and Power Shift as well as
scheduled a CSO)
• July 3 -The Chanhassen Rotary contracts with two deputies for the duration of the
beer garden and the city augments that and the other city events throughout the
day with 24.0 FTE hours/$59.21=$1,421.04. No actual expense was realized by
the city in 2016 due to flexing of the day sergeant, and utilization of the School
Resource Officer, Misdemeanor Investigator and Power Shift deputies.
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July 4-24.0 FTE hours/$59.21 hours=$1,421.04. The Chanhassen Rotary
contracts for two deputies for the parade. The deputies augment the parade
detail, we utilize reserve volunteers, CSO's and cover the other city sponsored
events throughout the day, including the fireworks display with these 24.0 hours.
This was actual cost for the city in 2016 plus holiday pay (an additional of 12
hours of holiday pay per the labor agreement between the deputies and the
county).
National Night Out
• First Tuesday in August: 15.0 FTE hours/$59.21 hours=$888.15 (actual cost in
2016 was $177.63 due to utilization of flex shifts by the School Resource Officer,
Dayshift Sergeant, Investigator and on -duty Power Shift.
Pinky Swear Foundation Kids Triathlon
® Pinky Swear contracted for three off-duty deputies and I scheduled the School
Resource Officer (SRO) to work the event for 8.0 FTE hours as community
relations. There was no additional cost to the city due to the SRO agreeing to
alter his schedule. Potential cost to the city would have been
8.0/$59.21=$473.68.
Chanhassen High School Homecoming Parade
• 5 deputies at 3.0 hours=15.0 FTE hours/$59.21=$888.15. There was no actual
cost to the city in 2016 due to the flexing of shifts of the Investigator, SRO,
Sergeant, Power Shift, CSO and myself.
The potential cost to the city for all of these events, staffed appropriately to ensure
safety, for a calendar year is just over $5,000 of the $60,000 overtime budget annually.
Due to willingness of staff to flex their schedule, switch shifts, and the use of general
patrol, reserve volunteers and city Community Service Officers the actual cost realized
by the city in 2016 was approximately $2,000.00 of the $60,000 overtime budget for law
enforcement.
Please keep in mind these are estimates based on our contract hours reports prepared
each pay period. I am primarily looking at past staffing and future projections and
utilizing our general overtime average wage estimates which include other contribution
costs such as PERA, work comp, etc. I recommend an actual review by our Financial
Account Technician for verified expenses. However, these numbers should suffice for
general planning purposes.
Also, the Chanhassen Rotary routinely contracts for two deputies for the July 3`d Beer
Garden and we reached an agreement in 2016 for them to begin contracting for two
deputies for the July Fourth Parade. Chanhassen High School has also been notified
that they will be required to contract for two deputies for the Homecoming Parade in
2017. The July 3rd events and the July Fourth and Homecoming Parade each require
approximately 5-6 deputies working each event in order for it to be safe for the public.
These additional deputies are scheduled to minimize overtime but would ultimately be
supported by the city's overtime budget for law enforcement, unless the requirements
for the number of off-duty contracted deputies should change at the city's request.
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