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CC SR 20240220 G - Agreement with Sky Elements, LLC CITY COUNCIL MEETING DATE: 02/20/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to award a professional services agreement to Sky Elements, LLC to perform a drone light show for the City’s Fourth of July celebration events. RECOMMENDED COUNCIL ACTION: (1) Award a professional services agreement to Sky Elements, LLC., in an amount not to exceed $54,000 per year for a three-year term, to design and perform a drone light show at the Ken Dyda Civic Center on July 4, 2024, 2025 and 2026; and (2) Authorize the Mayor to execute the professional services agreement in a form acceptable to the City Attorney. FISCAL IMPACT: If the recommended Council action is approved, the agreement amount of $54,000 for the first year will be included in the Fiscal Year 2024-25 budget, and subsequent budgets, for Recreation and Parks (Special Events). VR Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): 101-400-5170-5101 (General Fund – Special Events/Professional Services) ORIGINATED BY: Andrew Berg, Recreation Program Supervisor II REVIEWED BY: Cory Linder, Recreation and Parks Director APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Professional Services Agreement with Sky Elements, LLC (forthcoming) BACKGROUND AND DISCUSSION: 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 1 RANCHO PALOS VERDES 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, Sta ff, 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 attendees. Sky Elements, LLC was the selected drone light show vendor for the City’s 2023 Fourth of July celebration. Because of the unique, specialized nature of the service and the limited number of vendors, and the community’s positive response to last year’s event, Staff would like to secure Sky Elements’ services again for 2024. On February 6, 2024, Staff presented the City Council with options for a drone light show to be performed at the 2024 Fourth of July celebration. The proposed options included a show with 100, 150, or 200 drones and an agreement term of one or three years. The City Council directed Staff to secure Sky Elements’ services and return with an agreement for design and performance of drone light shows using 150 drones in 2024, 2025, and 2026 at a cost of $54,000 per show. Payments to Sky Elements will be made after the completion of each show. As was the case last year, the proposed drone shows will conclude the City’s annual Fourth of July celebration in 2024, 2025, and 2026. Because drone shows are best viewed after dark, the events will be held from 3-9 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 will 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 will 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. ADDITIONAL INFORMATION: 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. Additional sponsorship opportunities for the Fourth of July celebration will be available and advertised. 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 2 event, the City received $4,489 in parking revenue and $2,900 from eight sponsorship donations ranging from $100 to $1,000. 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 therefore recommends the City Council award the attached professional services agreement to Sky Elements, LLC to perform the drone light show as part of the City’s 2024, 2025, and 2026 Fourth of July Celebration events in a cost not to exceed $54,000 per show. ALTERNATIVES: In addition to Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not award the professional services agreement to Sky Elements, LLC. 2. Take other action, as deemed appropriate. 3