PUBLIC RELATIONS & LEGISLATIVE AFFAIRS APPROVAL OF AGREEMENT WITH INTERNATIONAL LOBSTER FESTIVALS, INC.

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1 DATE: March 7, 2007 FROM: PUBLIC RELATIONS & LEGISLATIVE AFFAIRS SUMMARY Approval is requested for a three-year agreement with International Lobster Festivals, Inc., 1072 Via Cordova, San Pedro, CA 90732, to act as the promoter and organizer of the Annual Port of Los Angeles Lobster Festival, with responsibility for planning, staging and promoting the event. The agreement begins with the 2007 Festival scheduled for September 14-16, 2007, with a commitment of $50,000 per year which gives the Port title sponsorship for the event. RECOMMENDATION It is recommended that the Board of Harbor Commissioners: 1. Find that the work is of a specialized and temporary nature which can be performed more feasibly by an outside contractor; and 2. Find that the proposed event sponsorship is consistent with the criteria of the Sponsorship/Hosting Policy adopted on November 2, 2006; and 3. Direct the Executive Director to execute and the Board secretary to attest to the agreement with International Lobster Festivals, Inc. for a three-year contract at a not-to-exceed amount of $150,000 for the term of the agreement. DISCUSSION 1. The annual three-day Port of Los Angeles International Lobster Festival is held in Ports O Call Village on the third weekend of September of each year and is in its ninth year. This event is now the premier Lobster Festival in the country and includes children s rides and activities, crafts and food booths, live entertainment, a LobsterDog event, a pre-opening media activity and other attractions. A major draw for this family event is a reasonably priced Maine lobster dinner. Recent attendance for the three-day festival has been approximately 40,000, with more than 25,000 lobster dinners sold in 2006.

2 DATE: March 7, 2007 Page 2 of 5 2. Sponsorship of the Lobster Festival is consistent with the criteria for sponsorship funding, and it is the desire of Port management to continue to support this event through an agreement with a third party event organizer and promoter. The Port s Sponsorship/Hosting Policy provides criteria by which the Port of Los Angeles supports events and programs which increase general public awareness of the Port and attract the public to the waterfront. The Port is the title sponsor of this event. The organizer is responsible for acquiring other sponsors for the event as well as for all planning, staging and promoting activities. 3. Commitment of sponsorship for more than one year requires the approval of the Board of Harbor Commissioners. To help secure optimal participation by vendors, entertainers and sponsors, as well as repeat attendance, an organizer should start publicizing the next year s Festival dates on the Monday following a successful event, and the promotion should continue year-round. For that reason, a three-year agreement, rather than a single-year commitment, is recommended. 4. International Lobster Festivals, Inc. was selected through a Request for Proposals (RFP) process. The RFP was sent out in December 2006 to 12 firms, with additional distribution through the Los Angeles Business Assistance Virtual Network (BAVN) system and the Port s website. International Lobster Festivals, Inc. was determined to be the best qualified by event planning experience, partnership with local non-profits, partnership with a local vendor who is the source for the Maine lobsters, and promotional experience. (See attached summary.) Although one other proposer possessed suitable experience with lobster festivals, that firm also indicated that it was already the organizer for a large community event on the same weekend as the Port s Festival and a competing lobster festival one week later. These commitments brought into question the other firm s ability to effectively promote and successfully stage the Port s event. 5. International Lobster Festivals, Inc. has been the organizer for the Port of Los Angeles Lobster Festival since its inception in San Pedro in Mr. Jim Hall, president of International Lobster Festivals, Inc., was the originator of the Lobster Festival in Redondo Beach prior to 1999 and brought the event to the Port s attention. 6. The three festivals included under the proposed agreement will be held on September 14-16, 2007, September 19-21, 2008, and September 18-20, The event has been held in Ports O Call Village but will be moved to a suitable

3 DATE: March 7, 2007 Page 3 of 5 venue within the Port if waterfront construction in ensuing years conflicts with the proposed event site plan. The Festival is a ticketed event with the entire site fenced for security and safety. 7. International Lobster Festivals, Inc. is responsible for attracting and securing vendors for international foods, beverages, and arts and crafts, as well as for securing games and activities for children and entertainment. In addition, the contractor is responsible for obtaining all required licenses and permits, and shall complete all necessary planning and logistical requirements including, but not limited to, insurance, all equipment, signage, licenses, permits, security, public transportation, trash clean-up, and site maintenance. As the title sponsor, the Port will be prominently featured on all advertising, signage and other promotional materials. However, International Lobster Festivals, Inc. bears all risk for the potential financial profit or loss for the event. 8. Under the terms of the agreement, International Lobster Festivals, Inc. is encouraged to partner with local non-profit groups for the sale of beverages and tickets, and as vendors for services. A final report of fund-raising opportunities for local firms and organizations is a requirement of the agreement. For example, for the 2006 Festival, non-profit groups were the beneficiaries of almost $33,000. In addition, the contractor shall provide the Port of Los Angeles with up to three information booths at no cost and shall similarly provide available space to local non-profits for educational purposes. In 2006, booth space valued at $2,900 was provided to local non-profit organizations. 9. In addition, International Lobster Festivals, Inc. will again be encouraged to subcontract with local firms for services, logistics, equipment and other purchased items. In 2006, harbor area firms employing a total of 311 local residents were hired to provide such goods and services. 10. The contractor is responsible for execution of a targeted, broad ranging media plan for promotion through various media outlets, subject to the approval of Port Public Relations staff. 11. Funds are currently available in the FY2006/2007 budget, Account (Sponsorships), Center 0220 (Public Relations & Legislative Affairs).

4 DATE: March 7, 2007 Page 4 of 5 ENVIRONMENTAL ASSESSMENT As such, the Director of Environmental Management has determined that the proposed action is exempt from the California Environmental Quality Act as provided by Article II, Section 2(f), and Article III, Class 4(b), of the Los Angeles City CEQA guidelines. The underlying activity is a temporary use of land having no permanent effects on the environment. FINANCIAL IMPACT Approval of this Agreement will enable the Port to retain the services of International Lobster Festivals, Inc. over a three-year period in the total not-to-exceed amount of $150,000 ($50,000 per year) commencing upon Board approval of this Agreement. Funds for the current FY2006/07 are available in the Public Relations & Legislative Affairs budget, Center 0220, Account (Sponsorships). Funds for future fiscal years will be requested to be budgeted. If in any subsequent fiscal year funds are not appropriated by the Board for the work required by the Agreement, the Agreement shall be terminated. However, such termination shall not relieve the parties of liability for any obligation previously incurred. CITY ATTORNEY The Office of the City Attorney has approved the proposed agreement as to form.

5 DATE: March 7, 2007 Page 5 of 5 TRANSMITTALS 1. Proposed agreement with International Lobster Festivals, Inc. 2. Summary of the Request for Proposal selection process. 3. Financial report for 2006 Lobster Festival. APPROVED: JULIA T. NAGANO, Director Corporate Communications ARLEY BAKER, Director Public Relations & Legislative Affairs GERALDINE KNATZ, Ph.D. Executive Director rfplobfest.bhc2007