City Council Meeting Date: June 2, 2020
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Title
Consider Cancellation of 2020 Fireworks Contract
Body
Action Requested:
The Northfield City Council considers a motion to cancel July 4, 2020 fireworks.
Summary Report:
Due to COVID 19 and large gathering restrictions, staff is recommending that Council cancel the July 4, 2020 fireworks. This year’s proposed contract amount is $16,250. The contract allows for cancellation with a 5% penalty ($812.50) if cancelled prior to July 4.
Alternative Options:
1. Postpone the fireworks celebration to 2021. The contract for the fireworks allows for rescheduling one year, with a 20% payment ($3,250) of the contract amount for the reschedule. The contract would be funded with 2020 budget and the remainder in 2021. However, the contract also says that if the City were to cancel altogether within the next 12 months another 30% would be due or $4,875. The total cost incurred in that situation would be 50% or $8,125. We are anticipating the possibility of significant budget revenue shortfalls in 2021 that could impact our city finances. A decision to proceed now would further limit potential savings should cancellation be of interest later.
2. Continue to have the fireworks and recommend groups physically distance. However, this is not currently allowed under the Governor’s Executive Order so is not a legally supported option.
3. There is an option to cancel the contract after July 4. However, 100% of the contract amount would be due. This is not recommended.
Financial Impacts:
See above.
Tentative Timelines:
The contractor is trying to confirm orders so staff is recommending a decision tonight. The School Board is scheduled for a meeting on June 8.