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CC SR 20240206 05 - July 4th 2024 Drone Light Show Options CITY COUNCIL MEETING DATE: 02/06/2024 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action regarding drone light show for the City’s 2024 Fourth of July celebration. RECOMMENDED COUNCIL ACTION: (1) Affirm conducting a drone light show for the City’s 2024 Fourth of July celebration; (2) Select from the following a preferred option for the drone light show: a. Utilizing 100, 150 or 200 drones; and b. Entering into a one- or three-year agreement (3) Direct Staff to secure Sky Elements, LLC for the preferred drone light show and for a preferred term, and to return with the Professional Services Agreement at a future meeting as a consent calendar item. FISCAL IMPACT: If the recommended Council action is approved, the cost of the preferred option will be included in the Fiscal Year 2024-25 budget development process, with pricing options ranging from $36,000 to $90,000. VR Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Andrew Berg, Recreation Program Supervisor II REVIEWED BY: Cory Linder, Recreation and Parks Director APPROVED BY: Ara Mihranian, AICP, City Manager BACKGROUND: The City's Fourth of July celebration has been a tradition for the community of Rancho Palos Verdes and the Peninsula since 1976. The family-friendly community event, which typically occurs during the day, traditionally includes entertainment and activities for all ages, including games such as a hula hoop contest and watermelon roll, multiple food vendors, beer and wine sales, live music, a petting zoo, craft and clothing vendors, crafts for kids, and of course, the pie eating contest. The Fourth of July celebration provides a community benefit through free and low-cost entertainment and recreational activities for all ages. The event facilitates interactions between community members, 1 Staff, committees, and volunteers and highlights recreation, public safety, public works and other City programs and projects. Community partnerships are strengthened through sponsor participation, both in donations supporting the event and space provided to sponsors to provide activities and promote their services to event attendees. In past years, Staff looked into fireworks display as an additional component of the Fourth of July celebration, but past studies of potential fireworks shows highlighted logistical challenges, including an inability to obtain permits from the California Coastal Commission for a barge, increased traffic, crowd control, security impacts, and effects on pets and horses, as well fire danger and negative impacts to protected habitat and species. Staff also concluded there is no park in the City large enough to accommodate the required blast fallout zone. Based on those factors, a fireworks display was deemed not a viable option to enhance the City’s Fourth of July celebration. On February 7, 2023, the City Council awarded a professional services agreement to Sky Elements, LLC to design and perform a drone light show as an enhancement to the 2023 Fourth of July celebration. The enhanced event was part of a series of events counting down to the City’s 50th anniversary. Due to the popularity of the event and positive feedback received from attendees, Staff seeks to include a drone light show as part of the City’s 2024 Fourth of July celebration. Sky Elements, LLC was the selected vendor for the 2023 event based on its all - inclusive service, performance record, availability, and lowest cost estimate. Staff met with two additional vendors before selecting Sky Elements, LLC for the 2023 event. Because of the unique, specialized nature of the service and the limited number of vendors, Staff would like to secure Sky Elements services again for 2024. DISCUSSION: As was the case last year, the proposed drone show will conclude the City’s annual Fourth of July celebration. Because drone shows are best viewed after dark, the 2024 event will be held from 3 p.m. – 9 p.m. In addition to the traditional entertainment and activities, the event will include extended live entertainment preceding and immediately following the drone show performance. The proposed drone show would include the flying of lighted drones up to 400 feet above the Ken Dyda Civic Center property and is intended to be viewed from the immediate event area. The show will be 10-12 minutes in length and include approximately 12 animated sequences, including replicating a fireworks display. The show would be designed to Staff’s specifications and include a mix of patriotic images and custom images, such as City and sponsor logos and names. The show will be synced to patriotic music that will be enhanced from last year’s performance . The show will be similar to last year’s event but can include different elements and images. 2 Images: Sky Elements, LLC Sky Elements offers shows using 100, 150, 200, or more drones. Using a greater number of lighted drones would allow for more options in the size and quality of images and animations, as shown below. Options for Drone Light Show Drone light shows are priced per drone. The cost of a 100 -drone show is $45,000 and there is an incremental increase in the cost of the show for additional drones. A 150 - drone show is $67,500 and a 200-drone show is $90,000. 3 Images: Sky Elements, LLC The vendor also offers a discounted rate for multi-year agreements. A three-year agreement for one show using 100 drones in each of the next three years (2024, 2025, and 2026) would secure a per-show cost of $36,000, which is a discount of $9,000 or 20% per show. A three-year agreement allows the ability to modify the show and add more drones each year at an additional cost, as illustrated in the table on the following page. 100 Drones 200 Drones 4 Drone Show Pricing 100 Drones 150 Drones 200 Drones One-Year Agreement $45,000 $67,500 $90,000 Three-Year Agreement (Priced per year) $36,000 $54,000 $72,000 The City would again seek sponsor support for the drone light show enhancement to the Fourth of July celebration as part of its event sponsorship campaign. If Staff is directed to proceed with planning the drone light show, additional sponsorship opportunities for the Fourth of July celebration will be available and advertised. Due to the limited number of available vendors and the high demand for services on July 4, the vendor’s services should be secured as soon as possible. Additionally, because the service includes a custom show design based on the number of drones, once services are secured, changes cannot be made to the number of lighted drones without incurring significant additional costs. Based on the above, if the Council wishes to conduct another drone light show for the City’s 2024 Fourth of July celebration, select one of the following options: a. Select how many drones is preferred to be used for the show; and b. Direct Staff to return with a one- or three-year agreement with Sky Elements. ADDITIONAL INFORMATION: Second Show If proceeding with a light drone show for the 2024 Fourth of July celebration, the Council may wish to consider conducting a second performance of the same show approximately 30 minutes after the initial performance for an additional cost of 10%. Albeit an added option, Staff does not believe that a second show is necessary based on last year’s event. 2023 Fourth of July Cost Summary Costs for supplies and services for the 2023 Fou rth of July celebration totaled approximately $85,000, including $45,000 for the drone light show. Costs were offset by revenue from parking fees collected at the event and from sponsorships. For the 2023 event, the City received $4,489 in parking revenue and $2,900 from eight sponsorship donations ranging from $100 to $1,000. 5 The City advertised additional sponsorship levels up to $10,000 for a drone light show presenting sponsor, but did not secure a presenting sponsor. CONCLUSION: Staff recommends the City Council affirm conducting a drone light show for the City’s 2024 Fourth of July celebration, select a preferred drone light show option, and direct Staff to return with a professional services agreement with Sky Elements LLC reflecting the Council’s selected option. ALTERNATIVES: In addition to Staff recommendation, the following alternative action s are available for the City Council’s consideration: 1. Do not pursue a drone light show for the 2024 Fourth of July celebration. 2. Take other action, as deemed appropriate. 6