Carefree Truth
Issue #777, September 30, 2019
Issue #777, September 30, 2019
Mayor Les Peterson, Councilman Gene Orrico, and Councilman Stephen Hatcher attended the Special Council meeting in person. Vice Mayor John Crane, Councilwoman Cheryl Kroyer, Councilman Mike Krahe and Councilman Vince D'Aliesio attended telephonically. Carefree Marketing Director Beth Renfro noted that expenses for producing the Pumpkin Festival had risen exponentially, particularly in 2018. This is not a "garden variety pumpkin patch". The artistry of this Villafane Studios event rivals or exceeds any art event in the Valley, including those held at galleries and museums, most of which charge admission fees to cover event costs.
The Town did research on rival fall events. Nearby Old McDonald Ranch in Scottsdale charges a $10 admission fee. There are extra charges to buy a pumpkin and to take a train ride or a pony ride. The event in Glendale charges $12 for admission plus $2 for a train ride and $ 2 for a tomato can (Ms. Renfro wasn't sure what a tomato can was). The event in Queen Creek charges a $22 admission fee, up from $15 last year. That fee does not include the train ride, pony ride, or other activities offered. She felt that Carefree's admission charges of $15 on the weekends and $10 during the week were in line with the market.
Mayor Les Peterson explained that when charging admission, the costs rise significantly. Fencing and gates are required, as is staffing by bonded people to handle the money. The best estimate for attendance in 2018 was 100,000 visitors. If it remained free and continued to grow at that rate, there would be no place to put the attendees. All of these factors were considered during the many discussions leading to the conscious decision to charge admission.
Ms. Renfro continued, saying there would be new features to encourage attendance by those who had visited the Festival in previous years when it was free. On Saturday, October 19th, the Giant Pumpkin Weigh-Off will take place on the community stage in front of Spanish Village and will be free to attend. A partnership has been formed with the Arizona Giant Pumpkin Growers Association in southwest Arizona, who are reaching out to their farmers to participate in this contest. Ray and his team will be carving several of these giant pumpkins this year.
The western side of the Garden has been underutilized in past years, and more exhibits will be placed there this year. There will be new vignettes and characters, and new interactive opportunities. Weekend entertainment will include bigger-name headline bands, theatrical performers, and puppet shows. A former member of the Steve Miller Band is a friend of glass artist Peggy Pettigrew Stewart who owns the Desert Glasshopper Studio in Spanish Village. His Steve Miller tribute band, The Pompatus of Love, will play at the Festival.
Operational quotes were secured from Pride Group and Pro Em, sufficient to host 75,000 attendees. Aggressive attendance figures were used to ensure the accurate forecasting of costs on the front end. Pride Group is able to provide everything needed, and allows for day-of staffing rollbacks with lower attendance figures, if necessary.
Estimated Expenses:
Pride Group, which for a cost of $178,474 (or less), would help with logistics leading up to the event and would provide ticket booths, ATMs, golf carts, an ice trailer, radios, a banner, admissions tents, fencing, stanchions, tables, power needs, Porta-potties, staging, an accounting staff, and gate security.
This is the second year Carefree has worked with Centerpoint Events. For $90,771 (or less), Centerpoint will provide an event supervisor, a security supervisor, operations, a Haunted House supervisor, bar operations, a vendor supervisor, a main stage sound tech, a community stage sound tech, a display lighting supervisor, miscellaneous staff, Haunted House staff, EMTs, overhead expenses, the singing pumpkins display, lighting expenses, and will light 2 trees.
Because the MCSO Posse is no longer active in this area, The Arizona Rangers will be utilized. For $23,300 (or less), they will provide traffic control at the Easy Street crossing, Post Office parking lot security, alcohol security, roaming patrols, and overnight security.
Titan Cleaning, for $13,520 (or less), will provide trash services, bathroom cleaning and restocking, and cleaning supplies. Titan is the cleaning service used by the Town for general cleaning services.
Additional expenses include Villafane Studios at $125,000, marketing at $29,824, attractions at $23,792, talent at $15,000, merchandise at $10,000, signage at $6,000, alcohol at $8,000, and miscellaneous at $5,000. This brings the total projected expenses to $528,681.
Estimated Attendance:
The break-even attendance figure is 39,000. The conservative attendance figure is 50,000. The aggressive attendance figure is $75,000.
Estimated Revenue From Other Sources:
Vendor fees would generate $28,000, alcohol sales would generate (net) $22,500, and merchandise sales would generate $10,000, for a total of $60,500.
Estimated Total Revenue:
These figures are based on $12 for the average ticket price, based on staggered day admission fees and discount opportunities. Discount opportunities include Groupon, as well as $3 coupons being mailed to all Carefree residents for up to 4 attendees.
Break-even attendance-$468,000
Including other revenue sources-$528,000
Conservative attendance-$600,000
Including other revenue sources-$660,500
Aggressive attendance-$900,000
Including other revenue sources-$960,000
At the break-even attendance of 39,000 over the 10 day period, an average of 3,900 per day, which is easily achieved, the Town would lose a total of $681. The rough estimate for attendance of the Thunderbird Artists 3 day shows is 15,000-20,000.
There is a 50/50 profit sharing with Villafane Studios. A claw-back clause allows for first and second year loss protection. Town attorney Mike Wright was reviewing all the contracts and proposals. Once approved by the Council, the deposits would begin to go out the week of September 23rd.
Mayor Peterson asked if the Council had any questions. Councilman Stephen Hatcher commented that the revenue numbers were much stronger than he had anticipated, even at the break-even attendance, which he was pleased to see.
Councilman Gene Orrico noted that the Centerpoint contract was less expensive than last year, and asked if services had been cut. Ms. Renfro explained that last year's contract was more comprehensive and included pieces like the attractions and alcohol, which would be the Town's responsibility this year. Centerpoint will act in an event staffing/management role this year, rather than as an event producer. The Town will be the event producer for the next 2 years. Pro Em was used for staffing last year, but they did not have the needed level of accounting services to provide the auditing trail needed for a municipality charging admission to an event. This requires bonded staff to handle the monies across the board. Mr. Orrico asked if the expenses could exceed the estimates. Ms. Renfro thought the numbers would be adjusted down, not up.
Mr. Orrico asked if Mike Wright was looking closely at the contracts. Mr. Wright replied that the contracts are pretty standard. The only tweak was in the Centerpoint Events contract related to the shifting of attorney's fees for the prevailing party should a dispute occur. Mayor Peterson added that he and Gary Neiss had also looked at the contracts.
Mr. Neiss noted that the contract with Pride was laborcentric based on a potential maximum attendance of 75,000. He asked how any reduction in staff due to lower attendance numbers would be accounted for during the business day so that the Town could have a transparent accounting mechanism and hold the contractor accountable for a reduction in staff. The representative from Pride explained that they update the staff hours daily on sign-in sheets. The invoice will include line item numbers and times. Mr. Neiss asked who makes the decision to reduce the staff. The representative replied that if the reduction involved only one or two staff members, the decision would be made by Pride. If it involved numerous staff members, Pride would coordinate the decision with Centerpoint and the Town.
Vice Mayor John Crane felt it was important to realize that the accounting of the contracts is based on 75,000 attendees and the break-even point is 39,000 attendees. There is a wide margin. If only 39,000 come, they will be sending some of the laborers home. If the Town is fortunate enough to have 75,000 attendees, it will exceed the revenue generation and won't exceed the contract estimate.
Councilwoman Cheryl Kroyer stressed that the 75,000 attendees number used was estimated at the very high end to make sure everything was covered and there were no surprises at the end.
Mr. Orrico asked how they would be keeping tabs on attendance. Ms. Renfro explained that by charging admission, they get to see exactly how many are coming through. Pride would be able to report how many paid to be there. Groupon has the same service and could report how many redeemed their coupons.
Vice Mayor Crane asked if there were any way of knowing how many attend the free events. Ms. Renfro replied that it would be a matter of eyeballing how many were not wearing the admission wristbands and "guesstimating", but she anticipated that most would want to experience the whole event.
Mr. Hatcher asked if the Town were taking over the alcohol function. Ms. Renfro explained that the Town is covering the cost of the alcohol but would be using the Sonoran Arts League's special event license again this year. SAL would be providing volunteers for the bar service. Pride would be selling the drink tickets because they are handling all the money duties. There will be alcohol security guards at the gates within the Garden. A bar and guards would also be set up in the Haunted Happenings area around Spanish Village.
Mr. Orrico asked how many vendors would be participating this year. Ms. Renfro said there would be 24, down from 28 last year by design, because more space was needed for attractions on Hum Road by Spanish Village. Vendors will only be on the streets during the 2 weekends. The streets will be open Monday-Thursday. Some vendors will be in the Garden for all 10 days.
Tammy Villafane asked if there would be a separate column, when the Town is giving comps, where it is not pulled from the final profit. It is still coming from Villafane Studios bottom line if not, and they did not get a vote. Mr. Neiss pointed out that approximately $500,000 of public money is being spent. The discounts would be applied to both bottom lines per the cost sharing agreement. Mayor Peterson noted that a lot of the people involved in making that decision have quite a bit of experience. In their experience, a discount to attend may be necessary to get some people to come. You can't go in with a full price and no discounts, particularly in the first year.
Mrs. Villafane questioned all Carefree residents getting discount coupons. Ms. Renfro replied that the event is worthy of having an admission price, and admission is being charged. She didn't think there would be a great impact from the offered Carefree resident discount. The Town needed to respect the residents who supported the event in the past. The resident discounts were offered to ensure they could save some money on the event if they chose to do so, without giving the discount to everyone. Mrs. Villafane replied, "That works". Mayor Peterson noted that there are a lot of moving parts to this.
Mike Wright instructed the Council that each contract had to be approved separately. All 4 contracts for services were approved unanimously.
https://vimeo.com/361051524
Visit the website for Pumpkin Festival times and event schedules.
The Town did research on rival fall events. Nearby Old McDonald Ranch in Scottsdale charges a $10 admission fee. There are extra charges to buy a pumpkin and to take a train ride or a pony ride. The event in Glendale charges $12 for admission plus $2 for a train ride and $ 2 for a tomato can (Ms. Renfro wasn't sure what a tomato can was). The event in Queen Creek charges a $22 admission fee, up from $15 last year. That fee does not include the train ride, pony ride, or other activities offered. She felt that Carefree's admission charges of $15 on the weekends and $10 during the week were in line with the market.
Mayor Les Peterson explained that when charging admission, the costs rise significantly. Fencing and gates are required, as is staffing by bonded people to handle the money. The best estimate for attendance in 2018 was 100,000 visitors. If it remained free and continued to grow at that rate, there would be no place to put the attendees. All of these factors were considered during the many discussions leading to the conscious decision to charge admission.
Ms. Renfro continued, saying there would be new features to encourage attendance by those who had visited the Festival in previous years when it was free. On Saturday, October 19th, the Giant Pumpkin Weigh-Off will take place on the community stage in front of Spanish Village and will be free to attend. A partnership has been formed with the Arizona Giant Pumpkin Growers Association in southwest Arizona, who are reaching out to their farmers to participate in this contest. Ray and his team will be carving several of these giant pumpkins this year.
The western side of the Garden has been underutilized in past years, and more exhibits will be placed there this year. There will be new vignettes and characters, and new interactive opportunities. Weekend entertainment will include bigger-name headline bands, theatrical performers, and puppet shows. A former member of the Steve Miller Band is a friend of glass artist Peggy Pettigrew Stewart who owns the Desert Glasshopper Studio in Spanish Village. His Steve Miller tribute band, The Pompatus of Love, will play at the Festival.
Operational quotes were secured from Pride Group and Pro Em, sufficient to host 75,000 attendees. Aggressive attendance figures were used to ensure the accurate forecasting of costs on the front end. Pride Group is able to provide everything needed, and allows for day-of staffing rollbacks with lower attendance figures, if necessary.
Estimated Expenses:
Pride Group, which for a cost of $178,474 (or less), would help with logistics leading up to the event and would provide ticket booths, ATMs, golf carts, an ice trailer, radios, a banner, admissions tents, fencing, stanchions, tables, power needs, Porta-potties, staging, an accounting staff, and gate security.
This is the second year Carefree has worked with Centerpoint Events. For $90,771 (or less), Centerpoint will provide an event supervisor, a security supervisor, operations, a Haunted House supervisor, bar operations, a vendor supervisor, a main stage sound tech, a community stage sound tech, a display lighting supervisor, miscellaneous staff, Haunted House staff, EMTs, overhead expenses, the singing pumpkins display, lighting expenses, and will light 2 trees.
Because the MCSO Posse is no longer active in this area, The Arizona Rangers will be utilized. For $23,300 (or less), they will provide traffic control at the Easy Street crossing, Post Office parking lot security, alcohol security, roaming patrols, and overnight security.
Titan Cleaning, for $13,520 (or less), will provide trash services, bathroom cleaning and restocking, and cleaning supplies. Titan is the cleaning service used by the Town for general cleaning services.
Additional expenses include Villafane Studios at $125,000, marketing at $29,824, attractions at $23,792, talent at $15,000, merchandise at $10,000, signage at $6,000, alcohol at $8,000, and miscellaneous at $5,000. This brings the total projected expenses to $528,681.
Estimated Attendance:
The break-even attendance figure is 39,000. The conservative attendance figure is 50,000. The aggressive attendance figure is $75,000.
Estimated Revenue From Other Sources:
Vendor fees would generate $28,000, alcohol sales would generate (net) $22,500, and merchandise sales would generate $10,000, for a total of $60,500.
Estimated Total Revenue:
These figures are based on $12 for the average ticket price, based on staggered day admission fees and discount opportunities. Discount opportunities include Groupon, as well as $3 coupons being mailed to all Carefree residents for up to 4 attendees.
Break-even attendance-$468,000
Including other revenue sources-$528,000
Conservative attendance-$600,000
Including other revenue sources-$660,500
Aggressive attendance-$900,000
Including other revenue sources-$960,000
At the break-even attendance of 39,000 over the 10 day period, an average of 3,900 per day, which is easily achieved, the Town would lose a total of $681. The rough estimate for attendance of the Thunderbird Artists 3 day shows is 15,000-20,000.
There is a 50/50 profit sharing with Villafane Studios. A claw-back clause allows for first and second year loss protection. Town attorney Mike Wright was reviewing all the contracts and proposals. Once approved by the Council, the deposits would begin to go out the week of September 23rd.
Mayor Peterson asked if the Council had any questions. Councilman Stephen Hatcher commented that the revenue numbers were much stronger than he had anticipated, even at the break-even attendance, which he was pleased to see.
Councilman Gene Orrico noted that the Centerpoint contract was less expensive than last year, and asked if services had been cut. Ms. Renfro explained that last year's contract was more comprehensive and included pieces like the attractions and alcohol, which would be the Town's responsibility this year. Centerpoint will act in an event staffing/management role this year, rather than as an event producer. The Town will be the event producer for the next 2 years. Pro Em was used for staffing last year, but they did not have the needed level of accounting services to provide the auditing trail needed for a municipality charging admission to an event. This requires bonded staff to handle the monies across the board. Mr. Orrico asked if the expenses could exceed the estimates. Ms. Renfro thought the numbers would be adjusted down, not up.
Mr. Orrico asked if Mike Wright was looking closely at the contracts. Mr. Wright replied that the contracts are pretty standard. The only tweak was in the Centerpoint Events contract related to the shifting of attorney's fees for the prevailing party should a dispute occur. Mayor Peterson added that he and Gary Neiss had also looked at the contracts.
Mr. Neiss noted that the contract with Pride was laborcentric based on a potential maximum attendance of 75,000. He asked how any reduction in staff due to lower attendance numbers would be accounted for during the business day so that the Town could have a transparent accounting mechanism and hold the contractor accountable for a reduction in staff. The representative from Pride explained that they update the staff hours daily on sign-in sheets. The invoice will include line item numbers and times. Mr. Neiss asked who makes the decision to reduce the staff. The representative replied that if the reduction involved only one or two staff members, the decision would be made by Pride. If it involved numerous staff members, Pride would coordinate the decision with Centerpoint and the Town.
Vice Mayor John Crane felt it was important to realize that the accounting of the contracts is based on 75,000 attendees and the break-even point is 39,000 attendees. There is a wide margin. If only 39,000 come, they will be sending some of the laborers home. If the Town is fortunate enough to have 75,000 attendees, it will exceed the revenue generation and won't exceed the contract estimate.
Councilwoman Cheryl Kroyer stressed that the 75,000 attendees number used was estimated at the very high end to make sure everything was covered and there were no surprises at the end.
Mr. Orrico asked how they would be keeping tabs on attendance. Ms. Renfro explained that by charging admission, they get to see exactly how many are coming through. Pride would be able to report how many paid to be there. Groupon has the same service and could report how many redeemed their coupons.
Vice Mayor Crane asked if there were any way of knowing how many attend the free events. Ms. Renfro replied that it would be a matter of eyeballing how many were not wearing the admission wristbands and "guesstimating", but she anticipated that most would want to experience the whole event.
Mr. Hatcher asked if the Town were taking over the alcohol function. Ms. Renfro explained that the Town is covering the cost of the alcohol but would be using the Sonoran Arts League's special event license again this year. SAL would be providing volunteers for the bar service. Pride would be selling the drink tickets because they are handling all the money duties. There will be alcohol security guards at the gates within the Garden. A bar and guards would also be set up in the Haunted Happenings area around Spanish Village.
Mr. Orrico asked how many vendors would be participating this year. Ms. Renfro said there would be 24, down from 28 last year by design, because more space was needed for attractions on Hum Road by Spanish Village. Vendors will only be on the streets during the 2 weekends. The streets will be open Monday-Thursday. Some vendors will be in the Garden for all 10 days.
Tammy Villafane asked if there would be a separate column, when the Town is giving comps, where it is not pulled from the final profit. It is still coming from Villafane Studios bottom line if not, and they did not get a vote. Mr. Neiss pointed out that approximately $500,000 of public money is being spent. The discounts would be applied to both bottom lines per the cost sharing agreement. Mayor Peterson noted that a lot of the people involved in making that decision have quite a bit of experience. In their experience, a discount to attend may be necessary to get some people to come. You can't go in with a full price and no discounts, particularly in the first year.
Mrs. Villafane questioned all Carefree residents getting discount coupons. Ms. Renfro replied that the event is worthy of having an admission price, and admission is being charged. She didn't think there would be a great impact from the offered Carefree resident discount. The Town needed to respect the residents who supported the event in the past. The resident discounts were offered to ensure they could save some money on the event if they chose to do so, without giving the discount to everyone. Mrs. Villafane replied, "That works". Mayor Peterson noted that there are a lot of moving parts to this.
Mike Wright instructed the Council that each contract had to be approved separately. All 4 contracts for services were approved unanimously.
https://vimeo.com/361051524
Visit the website for Pumpkin Festival times and event schedules.
Composite photo by Ray Villafane and Herbert Hitchon
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.