HomeMy WebLinkAbout26. 17-115 MARCH 14, 2017 17-115 RESOLUTION
(CARRIED LOST 1-5-1 PRESENT LAID OVER WITHDRAWN )
PURPOSE: APPROVE CHARGES FOR EXTRAORDINARY SERVICES FOR
SPECIAL EVENTS- 2017
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the City of Oshkosh adopted a Special Events ordinance which allows
the City to recoup charges for extraordinary services which may result from Special
Events; and
WHEREAS, the ordinance requires the Common Council to adopt each year a list
of standard fees and charges which will be used to determine the amount of charges
attributed to Extraordinary Services provided to Special Events by the City of Oshkosh.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the attached schedule of fees and charges for Extraordinary Services
provided to Special Events by the City of Oshkosh is hereby approved for events
occurring on or after April 1, 2017.
Special Events Listening Session (02/22/2017) Comments & Responses
1. Questions about why a 10% Indirect/Administrative Overhead Charge was
initiated.
a. The City developed this consistent methodology to be applied to all
events. Events are not currently billed for equipment, billing services,
fuel, utilities and many other indirect costs. These costs are paid for by
the tax payers.
b. The City could re-examine event fees altogether and start over or look at
other fee options (FEMA, DOT rates), but chose not to do so given time
constraints.
2. Does the statistical call data volume support an increase of calls during special
events?
a. Oshkosh Fire Department (OFD) believes their majority are not related to
Special Events, however, there is an increase in calls throughout the
summer months (the busiest event season). In addition, equipment can
be dedicated to an event, which will remove it from the service for routine
calls. This also creates additional maintenance costs as a larger fleet is
needed to be maintained to support all services.
b. OFD staffing onsite is dependent on the history of an event or the request
by the event organizers. Three or more calls during an event day, requires
onsite OFD staffing at future events.
c. For the Oshkosh Police Department (OPD) and OFD, staffing being billed
to an event organizer is dedicated to the event, and is in addition to
regular staffing.
3. Since Oshkosh is branded "Event City", the City should want to keep fees at a
minimum to keep events coming back. Even if this means tax payers are
subsidizing these events.
4. Participants suggested the need for a gradual increase to help them plan and
prepare for future event costs.
a. City Manager has asked staff to invite stakeholders to discuss options the
City could take into consideration when developing 2018 Special Event
Charges for extraordinary services.
5. Events are being assessed additional charges but are being denied ways of
making money (inability to charge for parking in the parks — Sawdust Days)
a. The City reserves the right to determine the use of public property to
generate private funds.
b. Staff proposed to meet with event organizers to evaluate the logistics of
each event and the service levels being provided, in an effort to find
potential reductions of extraordinary services.
6. The City's shortfall should not create budget problems for organizers.
a. The shortfall is caused directly from Special events, therefore staff believe
it should be billable to the special events.
12
TO: Honorable Mayor and Members of the Common Council
FROM: Kathryn S. Snell, Special Events Coordinator
DATE: March 9, 2017
RE: Approve Charges for Extraordinary Services for Special Events - 2017
BACKGROUND
On March 9, 2010, the Common Council adopted a Special Events, Marches, and Public
Assemblies Ordinance which allows the City to recover certain costs related to
extraordinary services provided to specific special events. The ordinance provided that
the Common Council would establish a list of standard fees and charges by hourly rates
or flat fees on an annual basis by resolution. The ordinance also provided that the Council
may specify certain tasks that may or may not be subject to extraordinary service charges.
ANALYSIS
Staff has identified personnel and services provided to special events and calculated the
costs for providing these services. In staff discussions it was determined that the City has
not billed for all of the costs directly incurred through Special Events and that these costs
had been funded with the Police and Fire Department operation budgets. Past practice
has been to only bill for some equipment, public safety personnel who are working in an
overtime pay status at special events.
It is a priority when staffing events that our citizen's public safety is still maintained at a
quality that our citizens expect. Ensuring adequate staffing for the number of events that
the City of Oshkosh hosts has become a challenge. The service levels required for these
events has increased with the number of events and the growth of some of the existing
events. This increased demand for services has created a compounding effect between
paid time off and compensatory time. Maintaining the expectation of safety has created
additional costs for the City as our public safety employees are unable to utilize their
compensatory time and the City is paying out more compensatory time in cash payments.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, Wl 54903-1130 920.235.5000 http://www.ci.oshkosh.wl.us
191
As part of the 2017 budget process, a Special Fund was developed to accommodate the
increase of personnel and equipment provided to special events, as well as meet
Expenditure Restraint Program (ERP) requirements. To fund the additional staffing it
was necessary for staff to review the charges for special events.
Charging for all Personnel dedicated to an event
Staff is proposing to bill all the costs for public safety employees providing services to a
special event, whether those employees are on regular or overtime. Examples of personal
costs not previously charged include: CSO's, Special Event Sergeant, and Fire Command
Staff (e.g. Battalion Chiefs) dedicated to specific events. As noted above this is a change
from the City's past practice of billing for some equipment, public safety personnel only
when staff were working beyond their regular work schedule. The impact of this change
would recover $34,825.42 in revenue.
Indirect Administrative Charge
In addition, staff is proposing to bill a 10%o Indirect -Administrative Charge that will be
assessed on the total invoice charged to an event. This charge will recover a portion of
the costs of indirect services such as: the administrative reviews of the special events
applications by the various city departments and divisions, equipment, billing services,
fuel, utilities and many other indirect costs. These new charges are proposed to be
effective for any events being held on or after April 1, 2017. The financial impact of this
charge is $40,718.20 in new Special Event revenue.
Use of Fully Burdened Rates - Paid Time Off and Other Non -Wage Benefits
The attached costs (Exhibit 1) have been updated to reflect the City's actual personnel
costs for 2017. We recognize these changes will have a cost impact on all events, but
believe that these changes are necessary to ensure the quality and safety for event
participants and our citizens.
The proposed rates in the attached Exhibit 1 use a fully burdened labor rate for cost
recovery. As staff reviewed the various options for cost recovery that might be used, it
was determined some components in our methodology, such as the inclusion of the value
of employee's benefits within the hourly rates, may not currently be applied in other
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, Wl 54903-1130 920.236.5000 http://www.ci.oshkoshA.us
municipalities. However, the application of fully burdened labor rates is a common and
validated means for cost recovery in both the private and public sector. This is also
consistent with the City's past practice as it related to overtime hours that were billed. It
should be noted that in some other municipalities that do not use the fully burdened labor
rates, staff has identified equipment charges or other fees that were charged to special
events which may have made up for costs not recovered by a lower labor rate.
Paid time off includes vacation, floating holidays and sick leave based on the average of
the number of hours used in each department from the prior year. Non -wage benefits
include the cost of health insurance, life insurance, worker's compensation coverage and
unemployment benefits. Benefits such as social security, medicare and retirement are a
direct cost related to the hours worked and should always be recovered. If the paid time
off or other non -direct benefits were removed from the wage rate, the rates and revenue
would be correspondingly be reduced. These reductions are shown in the Assumptions
section of the Fiscal Impact section below.
Continue Practice No Change for Block Parties and Parades
The Council has previously waived all costs related to community -wide parades and
residential neighborhood block parties. The Council recognized that neighborhood block
parties promote many of the values of community policing and encourage relationships
between persons and their neighbors which provide many other benefits to the City as a
whole. In addition, traditional neighborhood block parties do not have a "sponsor" nor
are they commercial in nature, so raising the funds for these types of events can be
problematic for neighborhoods. Similarly, Council waived costs related to parades,
recognizing the traditionally non-commercial nature of parades as well as their
community -wide appeal. Staff is recommending that this practice be continued. Staff
believes the value of continuing to promote these types of activities outweighs the costs
which may fall upon the City as a whole from these events.
City Holl, 215 Church Avenue P.O. Box 1130 Oshkosh, Wl 54903-1130 920.236.5000 hitp://www.ci.oshkosh.wi.us
FISCAL IMPACT
With the proposed methodology referenced in this analysis, itis estimated that the City
will still face a deficit. The assumptions are based on the projected staffing needs for
events in 2017.
If the current methodology were modified utilizing the following assumptions
independently, it would reduce revenue earned by the following:
Charging for all Personnel dedicated to event
(34,825.42)
Remove 10% Indirect - Administrative Overhead
Charge
(40,718.20)
Removed Paid Time off (Vacation, FH, Sick)
(22,885.79)
Remove Non- Wage Benefits (ICI, Life Ins, Health Ins,
Workers Comp, Unemployment)
(90,657.03)
RECOMMENDATION
Staff recommends approval of the charges for extraordinary services for
Special Events - 2017 without modification.
Respectfully Submitted,
Kathryn S. Snel
City Special Events Coordinator
Approved:
Mark A. Rohloff
City Manager
City Nall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Special Event Fee Schedule — 2017 (Exhibit 1)
Parks Department
Seasonal Staff Member $11.94/hr
Straight Time
$17.91/hr
1 % Time
$23.88/hr
Double Time
Full Time Staff Member $46.04/hr
Straight Time
$61.39/hr
1 '/2 Time
$76.74/hr
Double Time
Transportation Department
Sign Labor $40.95/hr
Straight Time
$54.02/hr
1 '/2 Time
$67.10/hr
Double Time
Electric Labor $50.06/hr
Straight Time
$67.19/hr
1 '/2 Time
$84.33/hr
Double Time
Utility Charges actual cost as metered or
estimated cost if metering is
impractical
Police
Community Service Officer
$15.70/hr
Straight Time
$19.56/hr
1 '/2 Time
$26.08/hr
Double Time
Patrol Officer
$65.12/hr
Straight Time
$88.73/hr
1 '/2 Time
$112.34/hr
Double Time
Supervisors - Lieutenants
$72.90/hr
Straight Time
$99.54/hr
1 '/2 Time
$126.18/hr
Double Time
Supervisors - Sergeants
$71.29/hr
Straight Time
$97.24/hr
1 '/2 Time
$123.19/hr
Double Time
Fire Department
Fire Personnel
Fire Battalion Chief
Fire Battalion Chief (EMS)
Paramedic Crew
Airport Rescue Firefighting Unit
Engine/Fire Company
Inspection
Large Event Inspection
General
Placement of Temporary
No Parking Signs / Temporary
Reduced Speed Signs
Traffic Cones
$46.46/hr Straight Time
$63.10/hr 1 '/2 Time
$79.75/hr Double Time
$58.44/hr
$74.84/hr
$126.20/h r
$126.20/hr
$189.30/hr
$59.00-$108.00
$59.00/hr
No charge for events using less
than 20 parking signs
$11 daily fee for events using 20-
49 no parking signs
$16.50 daily fee for events using
50-99 parking signs
$27.50 daily fee for events using
100 or more parking signs
No charge for events using less
than 20 cones
$11 daily fee for events using 20-
49 no cones
$16.50 daily fee for events using
50-99 cones
$27.50 daily fee for events using
100 or more cones
Barricades/Signs
Other Personnel
$5.50 per barricade or sign per
day of event, plus an additional
$27.50 Delivery charge
Costs for personnel, not specifically identified by this resolution, providing extraordinary
services in support of a Special Event, March or Public Assembly shall be identified and
calculated by the Finance Director using the same methodology as used for other
similar identified employees herein.
Special Equipment
Cost of Special Equipment deemed necessary for provision of services to a special
event shall be charged to the Event Sponsor at the City's actual cost.
Parades
There will be no charge for barricades, signs, traffic cones and assignment of police
officers or auxiliary police officers for community -wide parades.
Neighborhood Block Parties
There will be no charge for barricades for Residential Neighborhood Block Parties
where such parties are limited to 5 blocks or less.
Average Employees - Hourly Rate wl Benefits and Surcharge Applied
$36.24 -
City of Oshkosh -
Police
Medicare
2017
Retirement
Otficars
42.92
Wages
$72,181.18
Average Annual Salary
Hourly Wage
35.96
Average Salary
Hours
2.007
Total annual hours scheduled
Paid Leave
Vacation E Extra Days
$6,616.85
Average based on police employees - 23 days8 hrs' wage
Floating Holiday
$3,452.27
95 hours' wage/hr
Sick
$2,013.82
Average - 7 days used per year' 8 hs ' wagelhr
Longevity
$550.00
Average
Total Wage Cost
S 84,814.11
Benefits
FICA`
$4,475.23
6.20%
Medicare'
$1,046.63
1.45%
Re0remerlt'
$7,795.57
10.80%
ICI"
$160.00
Premiums above $64,000 Oat charge
Lite Insurance"
$130.00
Average based on all city employees
Health Insurance"
519,538.64
- Family
Workers Comp`
$525.00
Average based on all city employees - 3 yr average
Unemployment'
$350.00
Avg EE annual compensation & Benefits
S 118,835.18
Annual Comp 8 Benefits w/Surcharge (10%)
$130,718.70
Scheduled Bi - Weekly Hours
�— 77,20
Hourly Rate wl Benerts
565.12
61\10
Premium Time Calc.
Wage
$36.24 -
FICA
$2.25
Medicare
$0.53
Retirement
$3.91
42.92
Hourly Rate w1but Benefits
$47.21
"`WITH SURCHARGE APPLIED—
$65.12 Hourly Rate ($ wage 152 weeks / hours per week)
$88.73 Time and a Half (only direct costs included for 112 time)
$112.34 Double Time (only direct costs included for the premium time)
Hours worked - Reg 0.00
Hours worked - Time 6 a Half 0.00
Hours worked - Double Time 0.00
Total Costs
10% Surcharge Special Events Coordinator
2017 contract amounts
monthly Annual
Officer 5,775.58 69,306.96
Specialist 5,878.41 70,540.92
Liaison 5,955.56 71,466.72
Detective 6,162.98 73,955.76
Detective 11 6,302.96 75,635.52
72,181.18 average
2007.2 hours
35.96