HomeMy WebLinkAbout2022.11.28 Council Workshop DPDA Submission from Thomas Granbois i l � Z�'s� Z��ZZ�
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Downtown Pasco Development
� Authority
2022 Cinco de Mayo Report
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As the Downtown Development Authority(DPDA)started planning the 2022 Cinco de Mayo Festival
(CDM)at their regular board meeting in January 2o22, an informal committee of DPDA staff and any
board members who were interested was formed that included Board Members Granbois, Iniguez&
Estrada, City of Pasco's Mike Gonzalez,and DPDA Staff Oscar Martinez(Interim Directorj and Eric
"Chuco" Herrera {Event Coordinator).At the CDM committee meeting on February 1, 2022 the budget
was discussed for this year's festival according to notes taken at the meeting(Exhibit A).A budget of
$30k was agreed upon after a$100k budget was asked for by Oscar.At the March 17,2022 regular
Board Meeting a more formal call for CDM co-chairs was voted on and Gabriel Portugal and Alexia
Estrada were voted on to co-ehair the event.
As CDM started to be planned, by DPDA staff and the planning committee,Oscar entered into a verbal
agreement with JT Entertainment(Jose Torres)without a written contract unbeknownst to the planning
, committee and board.JT Entertainment was to produce the entertainment, provide a stage with lights,
sound, and backline for 2 days of the festival(Saturday&Sunday).The board was told by Oscar there
was a written contract with JT Entertainment, but after months of asking for this agreement to be
produced it was finally revealed right before the festival that there was no written contract 1T
Entertainment and they only verbally agreed to terms. `
,: �� Per the'terms of the verbal agreement JT Entertainment would be in charge of providing specifically:
• The band La Mafia -$35,000
, • Airfare, hotel,and per diem rates for La Mafia to be agreed upon later
• Los Cadetes de Linares-$3,500
- � Sonora Differente-$3,500
� • Mercedes Castro-$6,500
C-
• Stage&Sound, and backline for all three days-$19,500
• In Total: $68,000+airfare, hotel, & per diem '
i�`;, � The planning committee and board were not told the financial cost of this verbal agreement with JT
���+ Entertainment,until after a deposit was made. By then DPDA had provided a 50%deposit($33,500)for
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""�� �''� tl�e cost of bands;stage &�ound, and back line with checks issued from February 16, 2022 to March 9,
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, 2022 to JT Entertainment:as:reflected in the Exhibit B:The Board and planning committee did not find
rt �� � i ".out how rrtuch had been paid to JT Entertainment in total, until the week of Cinco de Mayo($88,457).A
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majority of the checks issue�l w�re solely signed by Oscar who did not inform'fhe Chair of�the cost and � '
need for a second signature�as they were all over$2,000 each.The amoun��of:mortey issued to�JT
Entertainment was well over the budget of$30,000 the planning committee.h,�d decided on back in � r
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The City of PascQ sent a letter,on April 5t"(1 month prior to the date of the festivai).asking DPDA to .
include the Latin Business Association (LBA) in the events of Cinco de Mayo as noted in Exhibit C. DPDA
and City of Pasco represer�tatives met on April 7t''with LBA to talk about their possible participation in �
CDM.At the conclusion of that meeting it was determined that DPDA would try their best to inclUde '
them in the festiyal.On an April 11t''follow up meeting with the same attendees;farther discussion was
had about how LBA could be.involved in t�e festivities and it was determined fhat DPDA would take
steps to try and make this happen by having LBA plan events on Sunday of the�festivaf weekend.
Before April 14t" DPDA asked JT Entertainment if he could make changes to the events on Sunday in
order to accommodate LBA's participation. It would require LBA's use af the stage and sound for what
they had planned since th�ere was not enough time to take down the stage for L�A to start at 3pm on
Sunday after the already booked DPDA entertainers. However, if all performances booked by JT
Entertainment were cancelled for Sunday by DPDA in order to let LBA have the entire day for their
talent, instead of starting at 3pm,JT Entertainment demanded cancellation fees of$23,000. It was then
revealed by Oscar and Chuco to the�co-chairs of CDM and eventually.the board, on April 15th that lesse
Torres was not willing to wor'ftwith LBA due to a personal dispute with LBA's Executive Director. He
verbally shared this with the DPDA staff and subsequently provided a letter so ther.e was something in
writing.This letter is attached as Exhibit D.This meant DPDA could not keep the talent booked for
Sunday and have LBA start at 3pm either due to the personal conflict between the two.
o .
According to Oscar&Chuco,JT Entertainment then threatened to pull out of the entire weekend,due to
LBA's involvement,which would leave DPDA without any entertainment a few weeks shy of the event.
On April 15xh a few DPDA board members met to try and determine what to do about the inclusion of
LBA and the promoter's threats to pull out of the entire event. It was decided.to not include LBA in the
CDM events in 2022 and the Chair Gabriel Portugal notified all representatives of DPDA's decision via
email and a copy is attached as Exhibit E.
In all the chaos of whether performers were being cancelled or not,JT Entertainment informed DPDA
that he had in fact actually cancelled the Sunday performers and then re-booked them once DPDA was
able to confirm LBA was not going to be involved in the festival.This incurred more fees in the amount
of$19,100 on top of the$23,000 he was already paid for"cancellation fees". One important note about
the communication up to this point was everything the board and planning committee was being told
Jesse Torres was saying and requesting money for came via Oscar and Chuco.They were relaying Jesse's
demands,threats, and monetary claims to the committee and board this entire time.
As of mi-April, DPDA was able to confirm with JT Entertainment that the talent,stage,and sound were
back on track due to LBA no longer being involved in the festival. At this time the board and planning
committee were still unaware of how much 1T Entertainment had been paid in total.The weekend of
the festival,Jesse Torres did not show up, so DPDA paid the remainder of all band fees to La Mafia, Los
Cadetes de Linares,and Mercedes Castro directly.After the event DPDA found out from Oscar that he
had agreed with Jesse to pay him as a stage manager for the 2-day event in lieu of a commission.They
had not discussed, nor agreed upon,what that amount would be.
As the vendorJT Entertainment procured,Samurai Sound,was setting up the stage and sound on Friday
it was determined that it would not be adequate for the event.Throughout the investigation that
concludes with this report it was never found out exactly who told DPDA the stage was not adequate.
Some said it was a representative from La Mafia,others stated it was a L&I Inspector, someone heard
that another vendor who provides stage and sound for large events, Riverside Dave,told them it would
not be adequate. Regardless, DPDA staff informed the board they were t�ld this and the solution to get
an adequate stage was to have Riverside Dave provide it.This vendor agreed and started to assemble
another stage for the event.
After the struggle with the stage,the entertainment actually went quite well for Saturday&Sunday.
One of the performers,Sonora Differente, did not show up,so their deposit($1,750)which was paid to
JT Entertainment back in February should be returned to DPDA.According to DPDA financial accounts,
Jesse Torres was paid $88,457 and DPDA paid remaining vendors and entertainer deposits in the
amount of$45,852.78.
In attached Exhibit F,JT Entertainment provided a breakdown of what costs he states he actually
incurred in the amount of$76,450.According to JT Entertainment all costs listed did not include a
commission for himself for the promoter work due to the agreement that Jesse Torres would be the
stage manager.Since Jesse did not show up for the festival and DPDA did end up using the
entertainment that Jesse procured,a commission of$13,600 was agreed upon which is 20%of the
original$68,000 agreement cost.
This leaves an overpayment of$12,007 owed DPDA by JT Entertainment. Due to other half of the
deposit to Samurai Sound not being paid and having no clear determination of how their stage and
sound could not be used,the amount due to Samurai Sound of$10,250 would be taken from this
overpayment and 1T Entertainment would be the one to pay Samurai Sound.This leaves$1,750 due
back to DPDA plus the return of our deposit ($1,750)to Sonora Differente for their no show.Total due
to DPDA from JT Entertainment is$3,507 and the invoice states it will be paid within 3 months of the
date of the invoice.
The entire board has many takeaways from this experience as four us were new to the board and this
was our first Cinco de Mayo. At every monthly meeting the board is reviewing an expenditures report
from the previous month that is generated directly from the bookkeeping software. Providing this report
allows us to catch transactions we have questions about and intervene if needed. Both of the DPDA staff
members,Oscar&Chuco,are no longer with the organization.At the first retreat with the new DPDA
director it was impressed upon him that all events need to have contracts with vendors that will be
selling items,and vendors we are expected to pay for services or in-kind contributions.
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Enclosed Exhibits:
A:CDM Planning Meeting Notes,�dated February 1 '
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B: DPDA's Accounting�ofJT Entertainrrrent
C: Dave Zabell letter date�April` � � �, �
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D:Jesse Torres letter dated April 18 ' � '
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E:GabriePs email dated April�5 � ' � `
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F:JT Entertainment Invoice , "
G: Cinco de Mayo 2022 Profit&Loss ;
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ElCHI�IT A
Fwd: Cinco de M�yo C4mm�ttee Update
1 me age
�r�,�7, 2022 at 4:fl8 PM
Begin forwarded message:
From Jo e Iniguez
�ate; February 2. 2 - a �.� - _,:� �:�
To:Oscar!l�lartinez Chu�
Cc:TFaoa�as Gra�bois E e onza.ez
u �ec : e: mca e ayo Committee U�da#e
C)ear Niike,
t have to agree wi#1�you on the budget of 30,00�.
This needs to be lean but an event that is cancen3cated ir�t�e.i�westment of 6 m�lla+on tha#was done to the
Pt�-
Oscar and Chuco.
I appreaate your dream of b�rag�n�g in Ramon�,yala fur exar�np�e arad+other bi�acts bu�you hawe to be
reaii tic on where we are a# With a$30,t�D�budg�et you hou�d be able to r�ake an e�rerat aro�nd ttue ptaza
happen. I am alsa worried o�br�rag�ng in Bus�s med�a�+hen all t�ey want is to charge us with no help ara
{�nding sponsars. (Chuco) I have to teI!you�at i think yau are btinded a bit by pleasing Sus#os rather than
focusirrg on Dpda and#he aty of pasco resider�ts. in speaking with Mike toclay-Eag�e rr�edia is wi�ling to
partner to help u find pcx� ar a well a work with you arxi O car on devekoping a mu ic prograr�that
would frt our budget and wiil not c�ar.ge us for t�e ads. 1 want you guy�to ask yourself v+rhhy�sra"t that good
enough?
You cannot think that Marc�and,�pril are going ta be the mont�s yo�go out to sel���s ara��xpect to get
sponsors witi�out a partner that is already worlcan�g wi�businesses r,vha are 800k�ng to sportsor some#hing.
If you can te�l me that Bu ta ha tho e bu dne e wai�rag�tren cor�ect me plea e I n�en�ioraed to O car
ti�a#a lot o#eyes are on Dpda to make a great ever�t that runs sr�noott�ly anc�it does r�ot have�o be grand
scale event but just sorraediir�g.tha#s�ows the cu�ture of Pascm. Please�n+ork wi�fiolks that are g�rag�o
aileviate your s#ress on this and not jus#think that you hawe h�ge amour�t�f money�o spend on j�as�ane
event Find the parfier that care about your bud�e't not j� t omeone that wa�t you ta perui it all and
v�rho cares about the rest of#he year.
We need to get this�fone t#�is week so that ne��n+eek t�e packages�r�be rraade and caf8s can begin ara
fil{ing i9�ose spons+ar packages. As I saici we wait Mart�it will be toa lat�e.
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Regards `��. : , �X����T JQ1
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�QS�E�k1t�UP.z '� -.� . � . . .�. ,. . � �,
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Fror�: �ike Ganzalez ' � .
D�te: V�ec�nesda�, Fe�ruarV , a � •
To: T�omas Gr�nb�i� >
. as� nig�ez uco
f��car Ma mez
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Se�bject: Cin�o de a}ra ,.��rrrr,�a .ee , � a e
Team, t � �` �' •
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1 wante�to g�ve an update on t�e nates that i've been �aki�g dur�ng our meetings. I'd
like to welcome 111�ar�in Vil�an��va tc�t�e gro�p. t�e is the President of Eag�e N�ed�a.
�agle is a powerfu� Span�sh ra�io group based i�the Trr-Cities.-Nlarti�wilt �ar�dle sa�es
a�d rnarke#ir�g for the s�aw and work e�oseEy wifh Oscar and Eric ir�'th€s endeavo�. I'm
co�f�de�# Eagle will deliver a great product. Myself, Oscar and Er�c met wFth Eagle th6s
r�o�ing for several haurs anc�we've come to an agr�ement on�how we'll �andle sa�es.
I �ave created a recur��ng rr�eeting for ya�r cale�dars for every Tuesday morning_ If you
didn'�reeeive that.let me knaw� There is a Zoor� 16�k provided.
I"tl see yo�r �ext Tuesday mor�ing±
l�li�Ce �
CINCC? D� IVIAY� CC�M�JIITTEE MEETII�G
2/1122
,. Rales for �vent �iKe G��zalez Coordinator for Ci�y of
Pascor fJscar tWAartinez Martager of S�row, Eric Ma�KetFng &�and recru�tment,
�iAartin Villanueva Di�ectar of Saies
EXHIBIT A
2. BUUget Oscar originally talked about having a budget of 100,000 dollars.
We decided to start with a 30,000 budget. This money has come from a grant
from Group Health Foundation.
3. �7pOI�SOrS Up to this point we don't have any sponsors. Oscar is working
on sales packet Martin will also have input on this packet Eric is working on
finding bands for the entertainment. Bands can be ve.ry expensive. In some
cases, up to 100,000 dollars.
a. Eag�e IVledla �nVO�Vement Eagle will be exclusive radio
station for the festival They will be the exclusive sales team for the festival This
means no other radio station in the market can sell sponsorship packages. Eagle
media will sell and produce commercials leading up to the event They will work
their best to attract as many people as they can to the show. Eagle has a agreed
to a commission of 40 percent.
s. El�te�all�lYlel�t 3 areas of entertainment including: Main music stage,
kids carnival, amateur boxing match, car show, vendors on Lewis street.
s. Perm�t$ Oscar is working on special events permits.
7. Marketi ng lead i ng u p to event -Eric will work with Mike
on vendor showcases in segments branded "Discover powntown Pasco" using
the DPDA's new video and audio studio Martin will also promote the event on his
3 radio stations.
s. �e�et�ng ��d �/eb$�te — Eric is calling the marketing company
that created the website and it should be an easy process to delete. Mike
Gonzalez has already called the owner and he is waiting for DPDA to call him to
take care of. He's willing to help as much as he can
9. Schedule of events TBD
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EXHIBIT. C
Cincc�dc Mayo Participation
Uave Zabell
Tue 4/S12022 1 t:S4 AiN
Gabriel and Oscar,
I think we can all agree,that Pasco Cincc�de Mayo is a si�nature event far our con�anuniiy aand
should be a catalyst for bringing all of downtown togethcr—which is ri�;ht in li�►e wi#h one�f the
primary purpQse oFDPDA. I am writing tv pass on some ctsncerns frt�m City C.ouncilmembers
and myself about the DPDA efforts related ic�C�r�co de Mayo, specifically,the inclusion c�f LI3A
aild David Cortinas to assist in some rxxeaningful way w°ith the event.
Council f rmly believes that success in our downtowr�meat�s success for all. I:BA is part of
downtown,and there are a numbez pf downtown merchants that ic�entify with the LBA and put a
great deal of faith in David�ortinas. I spoke v�rith David this txao�-rsing and he advised me that he
has called DPDA multiple times to lend his assistar�ce,and he has r�ot hea�rd hack. LBA,is part
of our downio��n,if they are part of Ginco they will get behind.it, if they do nat feel a pa�t,they
won't participate,and it will be that much harder to bring tl�em inta the DPI)A fold later.
I understand that yau are both feeling thc wsigh#oFputtin�;on a successful evcnt,and I certainly
understand the difficuity in welco.ming someone under the tent w���has disappointed us in the
past, for whatever reason. In my experie�ce with thesc kinds o�'situations,when��u have
control of the event,you bring those yt�u might�aave reserv�tion�abaut in but be thoughtful
about giving t�em something they can do independentiy,and be pari of the success. It makes for
a bi�ger t�nt and it avoids the hard feelings created when people feel they are being agnored or
are unwanted. DPDA exists in large�art to uraify dowr�to�i, a rale for LBA f�rthers that cause.
Qn a related matter,i a�n expectin�a formal ask by C)scar today tc�r additiona�fir�ancial s�pport
from the City,I do not know the exact amount o�the request,b�t�wiil share w-ith you now that a
condition of tl�e City's additional��ancial contribution;beyc�nd tY�e annual amount DPDA is
already provided, and all�f the in-�Cind support the City will be proaidin�ta help make this event
success, will be that it is an inclusive event where all of businesses within t�ie Public
Development Authority boundaries,and those prnximate,are made to feel welcome�y DP�A.
Dave
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_ EXHIBIT D
7�y�rhnm td!�ta� c'c?n��rn: .
�pnt i N.�U�' � '
Ih=�p��'c.:al'ttiis Irtrer ib t�y ie�t:�an,ti+�+�t '�4� (`�,rtit►:+s�+�ul t ir� ��:tst c�c:at�fi:�t��; accrrked to�ethes
inpr•?viJiit�.�nuri"•ftilf�lCfiC Ellt`ti��4i1 E.4C'Ilt�l'+I!lE�1�]GCSf)t,l 11C�i��'lt1�SCEI:S�„ric��.z::a�ift'seultics. I cannot �
�ut�'�ritt nilt tiw��r�` ceitk�L'�r4ttt ,
I totd hini I I�avc[�+:�n hirc�:i h��k n��na Srct��6ekn w��nst�co �me Y�'Ei w�s�try n�to r thrc�
,�ys�tartirt�Fridag,4�turda.,
acrnmm:,d:+T��►i�l h; :3ltcrin��thr!►uurs tor Sti�J:�}�show.`fl�i�aci��:istrnent wov�ld have a
nega��'e dorninc��t'�e=ct in my line of rt��¢�rk when dctirte���ith less than 30 days. I brin�tatens not
unl; t�Tri-Cyiti�s�ut atso t�v=uiaus citi.es in itY�state af t��ashington.l schedui�musicat�;resups
to p�rfvr�rn"rct mutvplc citi�s.'i"h�musical groups an� 1 haf�e expenses tu cov�c,an�i we neetl to
m�l:e sur�the grou��perfarrn in more tl�an twc�lacations t4 he able�o pay ev�ryc�ne involved_
'�Sr�nda}adjust�ient made me lose ne�rl�• $40 thc�usand dallars as had ta had to.searrange
tli�hts and lodgin�far the rnusic�l groups.
Yesrerda��,C�rtu�ns appraached m�e and acted like notlung h�d happ�ned b�tween him and I.He
began te2Iireg me we do not have a prc�hlem novv. I responded tn himx why da you aet like nothin�,
happ�ed?I slso added some expietiv�s i�ause af o�-past d�ais. Carti�as musE thinit I am
sensefess c�r rhat I fargat the thausands of dollars he had made mc los�.
I had ta stay�caimed�nd told hicn 1 wark for l?PI�A and that was the end. Cortinas coatinue to
sa;y tha DPDA does not�a�e the final deeision and the City of Pasca was not going give th�
S2SK I�k�t)A K>as askin�for the Cinco de M�.ya.
At the end,Cortinas sa�ci h�t�as s�.aeciiicali�� irtvite8 h�� Dave "Lab�li and Mik� Gon�alez a�d tk�at
we did not nr�d to go i�tl�DP�t�f hecause t�i:e citw•was thi�cing t�dissol�e thc DPDA. I
cantinu�d t�sa�rhat nP�t1 hire�m�art�t�t���>as tfl keep my word and da r�hat I said 1 w�s
�4Fng�dn.Cortinas,����c:� rn�,hai��-n�ch is i��c�ing [o ta��co dc�this?I s�id�cannot do this.
e�s �vf-�_ -
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E�HI�IT E
From Gabriel Portugai
Sent: Friday,April 15,2
To:Mike Gonzalez �. Dave Zabel! :Thot�nas
Granbois : gaG Pncic feli�e ; Dav�d Corttinas
i e i er car a �aez
>;Alexia s r�
u aec ; �nco e aya
[�IOTIC�: This message originated ourtsitl�flf Ci�y of Pasco—�o�►DT ctICK on�inks+or open attach�ents
unless you are sure the cora�erot is safe.�
�-li Ali,
When DPDA was approached by the City of Pasco and La�ir�o Bus�ness Assoaation(LBA)in the beginr�ing
o#Aprii 2022{1 month prior to the event)to add LBAs pa�cipation to#he Cinco de Mayo�estivaf i�was
initially agreeci up�on to welcome�eir participado�on the Sunday�of the event�n order to:be inclusMe.
lJnknown to the Boar+d at the�me,the promoter that DPD�#had alreacly fiired for�e even�to ecure talent,
provide stagi�g&a sound systern was not re�p#ive to LB�#s particapatiora.As a result,�PDA was unable
ta come to an agreement where the prornoter's equipment co�ald be�sed after 3pm,during LBA's�meslot
on Sunciay.The prornater was possibly going t�o n�eed to p�afi+oud of the eratire everat due ta the changes on
Sunday.
Due to�e imrreenss arrrourat of e�art a�ready put�rsto p�anning tF�e�stiva�,funds that had already bee►i
expensed,and the short timeframe of when ttte event takes pEace,the Board mad�f�e decision to cance{
LBA participation in the fe tival thi year and we Ifloic�orva+ard ta having iheir participat�on for ne t year
event and hapefulEy earlier in the planning proces�s
Sincerefy,
Gabriel Po�tugal, Chai�man
Dow�town �asco Deve9opmer�t Au�h�rity
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