From
Duane Strawn, Assistant Director of Parks Operations
Title
Contract with Carnival Americana, Fort Worth, Texas, for one year with up to four renewal options to provide carnival amusement rides, games and food for the Main Street Fest with commission back to the City estimated at $32,500 annually based on gross revenues collected by vendor of ticket sales totaling $162,500, if all extensions are exercised; authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the estimated revenue
Presenter
Cheryl DeLeon, Director of Parks, Arts and Recreation
Recommended Action
Approve
Analysis
On April 17, 2020, Main Street Fest will kick-off for the nineth year. This festival continues to grow and draws over 10,000 people to downtown Grand Prairie each year. On August 28,2019, bids were received by the City. A total of one complete bid was received, submitted by Carnival Americana with a projected revenue to the City of Grand Prairie in an amount of $32,500, based on total estimated volume of sales. Revenue to the City is based on 20% of ticket sales up to $100,000 and 25% over $100,000. The previous contract was for 15% and 20% respectively.
Carnival Americana does provide a turn-key operation including equipment, portable power and staffing.
Financial Consideration
Carnival Americana has agreed to pay the City 20% of ticket sales up to $100,000 and 25% for ticket sales over $100,000 at Main Street Fest which will be used to offset expenses incurred in the production of the event. Last year's revenue for this contract was $26,126.80.