With regard to the first issue, the Council determined at the May 27 Council meeting that alcohol could be served at the event in accordance with the attached map, which indicates the boundaries of a proposed beer garden area. The Festival Committee has indicated in their proposal that a security guard will be employed to assure that alcohol remains within the beer garden. They will also post signs at various places within the beer garden and at the entrance points to the beer garden indicating that alcohol is not allowed outside the area. This proposal has been reviewed by the Sheriff’s department and they have agreed that these controls should be sufficient.

To allow the consumption of alcohol in the public right-of-way, the City Council must make the determination that during the hours of Festival operation, and within the beer garden boundaries set forth in the attached map, the area is a public park and that special permission is granted to the California Avocado Festival authorizing the consumption of alcoholic beverages in the area.

Each year the City subsidizes the Festival by providing additional police officers, public works personnel, and electricity at no cost to the Festival. The issue of whether or not the City should be making this contribution has been discussed by previous Councils. In 1994, the Council determined that there were numerous benefits to the Community due to the Festival and that such a subsidy was appropriate. Staff has no new recommendation regarding what level of subsidy is appropriate, however, it should be pointed out that when the Council debated whether or not the Festival could serve alcohol, the cost of extra police service associated with alcohol was a reason given for prohibiting alcohol. The approximate cost of this subsidy over the past five years is $50,000.

This year, the extra police service is estimated to cost $5,740. This is based on 164 hours at $35 per hour. The number of hours recommended by the Department is 14 less than last year.

The cost of public works personnel to provide traffic control, street closures, and no- parking signs is approximately $4,000. Some of this cost is direct overtime during the hours of the event, and some is the opportunity cost of providing these services during normal working hours.

The cost of electricity is not known, but is minimal compared to the other costs.

The Avocado festival does have a recognized economic impact to the community and it has been discussed in previous years in conjunction with the City’s subsidy of the event. The extent of this impact is difficult to ascertain and no detailed analysis has been performed. It has been generally acknowledged in previous years that the festival does provide additional sales tax to the City, fund raising opportunities for local service organizations, and future tourism dollars by promoting the City as a nice place to visit.

None.