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CONSENT AGENDA INDIAN RIVER COUNTY, FLORIDA AGENDA ITEM 91W Assistant County Administrator / Department of General Services Date: September 27, 2016 To: The Honorable Board of County Commissioners Thru: Jason E. Brown, County Administrator From: Michael C. Zito, Assistant County Administrator Subject: Second Amendment to License Agreement with Fully Involved Event Productions, LLC. Description and Conditions: On March 15, 2016, the Board of County Commissioners approved a License Agreement with Fully Involved Event Productions, LLC for an event known as Rocktoberfest (the "Event"). The Event is scheduled to occur on October 201h through October 23rd 2016. On August 16, 2016, the Board approved the First Amendment to the License Agreement to allow the Event owner to select a nonprofit charitable organization to conduct alcohol sales at the Event in accordance with County policy. Pursuant to the Agreement as amended, the Event owner selected the Rotary Club of Vero Beach Sunrise, Inc., ("Rotary") as the charitable benefactor and licensed alcohol purveyor for the Event. The change has driven the Applicant's request to include Rotary as a co -applicant on the License. Utilizing a nonprofit charity has also prompted the Applicant's request to convert the method of calculating the alcohol permit fee from a percentage of gross sales to a flat fee of $350 per day plus $2 per admission ticket to the Event. The Amendment also eliminates the individual vendor fee, which is optional under County Policy, and adds use of the Expo Center on Thursday, October 20th. Analysis: The proposal presents several advantages to the County. It provides guaranteed revenue to the County based upon advanced and on-site ticket sales while evading the cumbersome process of monitoring and auditing numerous individual alcohol transactions. Most importantly, it avoids the appearance of sharing proceeds of alcohol sales with a nonprofit license holder, which is prohibited by Florida law. While the gross alcohol sales percentage method is a legally defensible method of calculating the permit fee as opposed to a true profit share, Staff recommends the proposed alternative as the preferred method in contemplation of the charitable cause, simplicity for both Staff and the Event owner, and the uncertainty of differing interpretations of Florida law. The Event License Agreement currently permits the County to collect 15% of the gross vendor fees charged to the food and merchandise vendors. Pursuant to the new Fairgrounds Policy, the imposition of vendor fees is a negotiable source of revenue for the County but, has yet to be levied upon any applicant. In retrospect, the imposition of a negotiated vendor fee may be more appropriate for events where the primary draw is the vendor marketplace. Alternatively, the marketplace vendors serving this Event are ancillary to the main attractions and, will also be required to purchase a local business tax receipt. F•\Assistant County Administrator\AGENDA ITEMS\2016\BCC 10 OCTOBER 2016\BCCMemo -Second Amendment to Rocktoberfest Festival License Agreement.doc 181