Staff received a request from LFA to conduct a two-day Music Festival at Village Green Park beginning Saturday, August 5 through Sunday, August 6, 2017. The proposed festival would be the first of its kind that will include ticket sales for up to 10,000 individuals, one carnival ride, food vendors, alcohol beverage sales and live entertainment on stage. 

LFA is the new production company lessee of the City's Festival Amphitheater and has worked in the music festival industry for several years. LFA has entered into a ten (10) year lease agreement with the City and has completed all insurance requirements as indicated in the lease agreement.

Attached is Addendum No. 2 to the Agreement with LFA allowing them to conduct a two-day Music Festival at Village Green Park. The more significant aspects of this Agreement include the following provisions:

• LFA agrees to reimburse the City for all staff support and direct costs;
• LFA will provide an occupancy plan, security plan and parking plan that meets the Fire Department and Police Department requirements;
• The City must approve all live entertainment performances for the festival;
• The hours of operation will be restricted on Saturday until 10:00 p.m. and Sunday until 9:00 p.m.;
• LFA must comply will all restrictions for alcohol beverage sales as approved on the plot plan, which indicates the areas for the sale of alcohol spirits to be allowed only in the VIP area and beer sales throughout the festival grounds in the approved areas. All alcohol sales must end ten (10) minutes before the close of the festival each day;
• LFA agrees to share twenty (20) percent of their net proceeds from alcohol beverages with the Garden Grove Community Foundation; and
• LFA must complete all additional insurance requirements thirty (30) days prior to the proposed festival.

At present, staff estimates an occupancy load of 10,000 people.  That occupancy load is still under review and may change depending upon the findings of both the Police and Fire Departments.  The proposed Addendum No. 2 to the Agreement has been approved to form by the City Attorney.

Included in Addendum No. 2 is the requirement that LFA reimburse the City for all of the direct costs incurred by the City in support of the Music Festival. LFA will be required to pay an initial payment to the City in the amount of fifty thousand ($50,000) thirty (30) days before the festival event. After the Music Festival, LFA is to reimburse the City the remainder, if any, of City costs. 

It is recommended that the City Council:

• Approve Addendum No. 2 to the Agreement with LFA to conduct the 2017 Music Festival at Village Green Park, beginning Saturday, August 5 through Sunday, August 6, 2017.

• Authorize the City Manager to make minor modifications to and exeucte Addendum No. 2 on behalf of the City.

By:  Janet Pelayo, Community Services Manager