BY MANDY BOLEN

Citizen Staff

Old City Hall was a Who's Who of special event groups Thursday evening during a public workshop about who should pay for what during festivals that bring tourists - and their wallets - to the Southernmost City.

Key West city officials, with an eye to controlling costs, have been looking closely at how much the city pays during street festivals and other events to provide police and fire protection, off-hour and weekend garbage collection, providing street barricades and other services. For several years, the city has not been collecting enough money from event organizers to cover such expenses, and officials want that to change.

A proposal several months ago would have had event organizers pay for the services in advance, based on an estimate of what those services cost the city.

Commissioners at the beginning of Thursday's workshop assuaged serious concerns and opposition from event organizers by announcing that that proposal would not be implemented. They acknowledged that most organizations, many of them non-profit charities, do not have the up-front money for such an expense.

The well-attended and light-hearted workshop included comments from several organizers who emphasized their willingness to partner with the city, but reminded city officials of the revenue events bring to the city coffers and the local economy.

Linda O'Brien, owner of The Market Share Company, and director of Fantasy Fest, reminded commissioners that more than 30 years ago, "Key West had dairy farms and raised pineapples. Now we raise tourists, and events are this city's economic engine."

She also reminded officials that the money tourists spend in hotels also go into the county's Tourist Development Council coffers, which fund beach cleaning and renourishment, along with other projects such as the U.S.S. Vandenberg artificial reef project.

But Commissioner Dan Kolhage countered that the city receives only an "infinitesimal" amount of the sales tax revenue paid to hotels, bars and restaurants.

For instance, he said, Fantasy Fest may have generated $24 million citywide, but the actual city government received only about $84,000 of that from sales tax.

He emphasized the importance of partnerships between the city and organizations, but said they have to be equal partnerships.

Lou Hernandez, executive director of HelpLine's 24-hour suicide and assistance hotline, added that many of the local charities that hold special events are providing crucial services that, "quite frankly, the city couldn't afford to provide to its citizens," Hernandez said.

Such "freebie" services, Hernandez said, include HIV and AIDS rent assistance, testing and medication, the suicide hotline and many recreational and educational programs for children.

Commissioners listened to each comment, and then asked the heads of city departments to review a proposed fee schedule for special events based on actual costs to the departments.

"Instructions were for department heads to develop proposed fees to reflect actual costs," Assistant City Manager David Fernandez said. "The intent is not to increase revenue for the city, but we do recommend going to full-cost recovery except in the case of charities."

Currently, the city waives a $1,000 event fee for non-profit organizations hosting an event. Commissioners Thursday supported the continuation of that waiver.

But Commissioner Barry Gibson asked that the city clarify exactly what constitutes a charity that to better determine who qualifies for the waiver.

Representatives from the police, fire, public works and transportation departments described what their staff does during events and how much it costs. They also reminded commissioners how events vary in size and location, from small picnics at Bayview Park to Fantasy Fest and powerboat races.

For example, Greg Veliz, director of community services, said it costs his department $800 per block for street closures during festivals. That amount includes maintenance workers, additional trash cans and collection, barricades, vehicles to transport the barricades and workers and the cost of additional trash disposal.

Following the department presentations, commissioners voiced their own questions and concerns, but made no final decisions. The meeting was a workshop, and Mayor Morgan McPherson said the next step would be for the commission to approve a new ordinance that includes an official fee schedule and other financial specifics.

McPherson spoke in support of the taxpayers and event organizers.

"Other organizations can't provide police and fire protection, but there is an expectation that comes with paying taxes when a family goes to an event at Bayview Park or on Duval Street," McPherson said.

Gibson also said he understood both sides of the equation, and said he wants to see a specific breakdown of how a new fee schedule will affect various events and their organizers before he votes on a new ordinance.

mbolen@keysnews.com