Report Prepared by: Jennifer Flachman, Senior Management Analyst, Public Information Officer
Title
SUBJECT: Approval of a Supplemental Appropriation from the General Fund not to Exceed $48,000 to Host the Second Annual Gran Fondo Hincapie Cycling Event on March 14 -15, 2025, Approval of a Participation Agreement with Hincapie Events, LLC, and Authorization to Accept Donations of $30,000 or More in the General Fund
REPORT IN BRIEF
Considers approving a supplemental appropriation from the General Fund not to exceed $48,000 to host the second annual Gran Fondo Hincapie Merced Bike Event, Family Festival & Expo on March 15, 2025, approve participation agreement with Hincapie Events, LLC, and authorize acceptance of donations of $30,000 or more in the General Fund.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Supplemental Appropriation from the unreserved, unencumbered fund balance of the General Fund in the amount of $48,000 to host the Second Annual Gran Fondo Hincapie Cycling Event; and,
B. Approving the participation agreement with Hincapie Events, LLC.; and,
C. Authorizing acceptance of donations of $30,000 or more in the General Fund for the Gran Fondo Hincapie to offset the Supplemental Appropriation of $48,000; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments; and,
E. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as conditioned by Council; or,
3. Deny the request completely; or,
4. Refer back to staff for reconsideration of specific items as requested by Council; or,
5. Continue item to a future Council meeting (date and time to be specified in City Council motion).
AUTHORITY
Charter of the City of Merced, Section 200
CITY COUNCIL PRIORITIES
Council Goals and Priorities for Economic Development Promoting Tourism
DISCUSSION
The Hincapie Gran Fondo gravel bicycle event was a success in its inaugural year in Merced, attracting nearly 500 registered participants from across the United States, even drawing cyclists from Canada. This event has put Merced on the map for cycling enthusiasts, showcasing our region’s beautiful, varied terrain, and creating economic activity for local businesses.
Given the positive reception and the success of last year's event, coordinators anticipate an increase in participation for the second annual event, with estimated projections doubling the number of registered cyclists. This event offers an opportunity to continue building on Merced’s growing reputation for hosting outdoor events.
Staff requests approval for the 2nd Annual Hincapie Gran Fondo Gravel Bicycle Event, which will promote physical activity, tourism, and community engagement, while delivering economic benefits to the city.
As is customary with previous bike racing events, the City of Merced has been asked to provide both in-kind support and a monetary contribution to the event. The Participation Agreement requires $40,000 payment to Hincapie Events, LLC. The additional $8,000 is to rent portable toilets ($5,000) and refuse service ($3,000). Below is a summary of the in-kind support requested:
Police Services - local police services, in collaboration with the Merced County Sheriff and California Highway Patrol, to provide safe rolling road closures, traffic control, and Festival & Expo security.
Public Works & Street Services - detour set up and materials, refuse services, traffic control services, notices to local businesses and residents of route closures.
Fire/EMT Services - a local team of medical professionals at the site festival, a rapid response vehicle, and full-service ambulance
IMPACT ON CITY RESOURCES
We are requesting approval of a supplemental appropriation from the General Fund not to exceed $48,000 to host the second annual Gran Fondo Hincapie Merced Bike Event, Family Festival & Expo on March 15, 2025, approval of a participation agreement with Hincapie Events, LLC, and authorization to accept donations of $30,000 or more.
A portion of the $30,000 donations will be used to rent portable toilets, estimated at $5,000, and pay for City refuse services, estimated at $3,000. City refuse services must be paid from the donations as Proposition 218 disallows the City to provide free refuse service. The in-kind services for all other support will be borne by the respective departments. This includes, but not limited to, salaries, food or drink for staff working the event, and electrical supplies.
After deducting $8,000 for port-o-let and refuse services, $22,000 in donations will abate to the city’s $48,000 commitment, leaving a remaining $18,000 to be covered by the General Fund. Any additional donations will further reduce the city's contribution.
This will require an affirmative vote of 5 Council Members to pass.
ATTACHMENT
1. Hincapie Agreement