The Sealy City Council has recently been engrossed in critical discussions surrounding the future of the annual Fantasy of Lights festival, a beloved local tradition that has been a cornerstone of community engagement since its inception in 1982. As the festival has grown into a multi-day event that attracts visitors from near and far, the challenges of organizing it have also expanded. During meetings on August 6 and August 13, 2024, council members grappled with significant insurance and financial obstacles that threaten the continuation of this cherished celebration. With local vendors hesitant to meet new insurance requirements and the city’s budget strained by the costs of sponsorship, the council faces a complex balancing act between safeguarding the eventโ€™s future and maintaining fiscal responsibility. The following article delves into the detailed deliberations and potential solutions discussed by the council as they work to ensure that the Fantasy of Lights festival can proceed as planned, bringing holiday cheer to the community once again.

August 6, 2024 City Council Meeting

At the Sealy City Council meeting on August 6, 2024, council members engaged in a detailed discussion about the upcoming Fantasy of Lights festival, a beloved annual tradition that began in 1982. The event, which has grown from a simple Saturday night parade into a full weekend celebration, faces significant challenges this year due to insurance requirements that could impact vendor participation.

The Fantasy of Lights festival, scheduled for December 5-7, 2024, is set to feature a variety of activities, including the Vendor Blender, the Jingle Bell Fun Run, the Kids Fantasy, and the main parade. These events, organized with the help of the Sealy Chamber of Commerce, are staples of the local holiday season, drawing crowds from Sealy and beyond. However, the future of this yearโ€™s festival hangs in the balance as organizers grapple with complex insurance issues.

During the meeting, City Manager Kimbra Hill and other city officials outlined the primary concern: for vendors to participate in the festival, they must name the City of Sealy as an additional insured on their liability policies. This stipulation, required by the Texas Municipal League (TML), is intended to shield the city from potential liability in the event of accidents or injuries during the festival. While this might seem like a standard precaution, it has become a sticking point for some vendors.

 

 

Chelsea Humes, Director of the Sealy Chamber of Commerce and interim director of the Sealy Visitors and Convention Bureau, outlined the challenges the Chamber has faced with the city’s insurance requirement. She explained that when she started as Director two years ago, the city asked the Chamber to take over organizing the Fantasy of Lights festival to streamline the process, which had previously involved multiple entities. While larger vendors, such as those providing carnival rides, have complied with the city’s insurance mandate, smaller local vendorsโ€”many of whom donate their services for freeโ€”have been hesitant. These vendors, although fully insured, have encountered difficulties with their insurance providers when asked to list the city as an additional insured.

Humes shared that the Chamber’s board has allowed her to continue organizing the event, but only if the insurance issue is resolved. They also made it clear that the Chamber would not participate if they couldn’t include local businesses. This concern prompted the Chamber to reach out to the city over a year ago to address the issue.
Councilmember Chris Noack voiced his frustration with the situation, questioning why the insurance requirement was necessary if vendors were already insured. City Attorney Tim Kerwin clarified that the additional insured clause is crucial because it ensures that the vendor’s insurance would be the first line of defense in the event of a claim, thereby reducing the city’s financial exposure.

Despite understanding the legal necessity of the insurance requirement, the council acknowledged the challenges it poses. Councilmember Dee Anne Lerma suggested that the city explore alternative solutions, such as offering to assist vendors with the insurance process or even sponsoring the insurance on behalf of the vendors. However, these ideas require further exploration and discussion.

As the meeting progressed, it became clear that the council was committed to finding a solution that would allow the Fantasy of Lights festival to proceed without excluding local vendors. Councilmember Noack even volunteered to personally oversee the event’s organization if necessary, underscoring the council’s dedication to ensuring the festival’s continuation.
Ultimately, the council voted to table the issue, giving themselves additional time to explore potential solutions before making a final decision. The meeting concluded with a sense of urgency, as council members recognized the importance of the festival to the community and the need to resolve the insurance challenges quickly.

The council is expected to revisit the issue at their next meeting, scheduled for August 13, 2024, where they hope to have more information and possibly a resolution to the insurance dilemma. In the meantime, the fate of the Fantasy of Lights festival remains uncertain, leaving the community eager for a resolution that will allow the holiday festivities to proceed as planned.

You can watch the deliberation starting at the 00:09:07 mark of the video below:

 

 

August 13, 2024 City Council Meeting

The Sealy City Council convened on August 13, 2024, to discuss and deliberate the details of their sponsorship for the upcoming Fantasy of Lights event, a cherished local tradition that has evolved into a multi-day celebration aimed at boosting tourism and community engagement. The event, which includes activities such as the Fantasy of Lights parade, a fun run, and a softball tournament, has been a fixture in the Sealy community, but recent discussions highlighted the financial and logistical complexities involved in hosting it.

City Manager Kimbra Hill provided a detailed overview of the sponsorship, noting that while certain costs associated with the event would be reimbursable through the Hotel Occupancy Tax (H.O.T.) funds, the city would still bear approximately $12,000 in expenses. This figure primarily covers janitorial services, lighting, additional advertising, and parade-related costs, which are not fully reimbursable under the H.O.T. funds guidelines. Hill emphasized that the council needed to decide whether to proceed with the sponsorship, given that these expenses would directly impact the cityโ€™s budget and, by extension, the taxpayers.

The council engaged in a thorough discussion about the implications of sponsoring the event. Mayor Carolyn Bilski raised concerns about setting a precedent by waiving fees or providing extensive financial support for community events, which could lead to similar expectations from other organizations in the future. Councilmember Dee Anne Lerma, who also serves as Mayor Pro Tem, argued that since the city initiated the partnership with the Sealy Chamber of Commerce to organize the event, it should take responsibility for its success. She pointed out that the city had historically played a significant role in organizing and funding the event, and this year should be no different, especially given the eventโ€™s value to the community.

Councilmember Edward Zapalac clarified that while the cityโ€™s role as a sponsor was crucial, it did not necessarily mean covering all the costs. He noted that in past years, sub-events like the fun run and softball tournament had been self-sustaining through participant fees and sponsorships. However, this year, the city was more directly involved in organizing these activities, which complicated the financial dynamics.

The council also discussed the use of H.O.T. funds and their limitations. While these funds could cover expenses related to the softball tournament, which attracts out-of-town participants, other elements like the fun run were less likely to qualify for reimbursement due to their primarily local draw. The council acknowledged the importance of the H.O.T. funds but also recognized that relying solely on them would not be feasible for covering all the eventโ€™s costs.

 

 

Another critical point of discussion was the potential impact on the cityโ€™s budget. Mayor Bilski expressed concerns about the financial strain on the city, especially in a year where budgeting was tight. She suggested that the city explore alternative funding sources, including corporate sponsorships, to alleviate the burden on taxpayers. The council agreed to pursue this option, with Bilski and Sealy Economic Development Corporation (EDC) Director Bill Atkinson tasked with identifying potential sponsors.

Despite the financial challenges, the council was unanimous in its support for continuing the Fantasy of Lights event. They recognized its significance to the community and the role it plays in promoting tourism and local businesses. The EDC had already pledged $10,000 toward the event, which would cover some of the costs, but the council acknowledged that additional funds would be necessary to fully support the event without overextending the cityโ€™s budget.

The council also discussed logistical aspects of the event, including the use of city facilities and the need for insurance coverage. They agreed to move forward with the event planning, authorizing the necessary advertising and facility arrangements while continuing to seek additional funding to cover the remaining costs.

You can watch the discussion starting at the 00:04:08 mark of the video below:

 

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