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Council approves one‑year MOU with Cherries of the Past Foundation for Cherry Festival, requires annual audit
Summary
After debating insurance, cleanup timing and the foundation's finances, council approved a one‑year memorandum of understanding with the Cherries of the Past Foundation to co‑sponsor the 2026 Cherry Festival, adding a requirement for an annual audit and removing automatic multi‑year renewals.
The City Council voted Dec. 16 to approve a one‑year memorandum of understanding (MOU) with the Cherries of the Past Foundation to co‑sponsor the 2026 Cherry Festival, but the council required two specific changes: limit the MOU to a single year (staff recommended automatic extensions but council declined) and require an annual financial audit from the foundation.
Staff presented the draft MOU that would make the foundation the primary operator of event vendor and beer garden activities, obtain applicable permits and carry primary insurance; the city would provide public safety, traffic management, shuttle and parking support and would be secondarily insured on event policies. Staff estimated the city's public‑safety and event costs were similar to last year (about $258,000 including a prior $100,000 entertainment donation).
Council members raised questions about three specific foundation requests to remove certain MOU provisions: (1) detailed beer/wine safety measures that staff said should remain in the MOU in addition to ABC licensing, (2) removal of explicit language assigning cleanup and maintenance to the foundation rather than city staff, and (3) changing the 36‑hour cleanup requirement to a specified time frame. Staff recommended keeping the protections in place. Council also discussed the foundation's recent operating losses and whether the city would be exposed as a "deep pocket" co‑sponsor; several council members requested stronger safeguards and more transparency on the foundation's finances and fundraising.
After extended discussion council moved to approve the MOU with the two changes (1‑year term and an annual audit requirement). The motion passed unanimously by roll call. Staff said the foundation would remain responsible for cleanup, vendor and beer‑garden operations under city conditions and that the city would continue to coordinate public‑safety support. Council also directed staff to pursue sponsorship and promotion strategies to increase event revenue and reduce city subsidy over time.
