ORANGE : Delay Probable for Street Fair Scrip

A controversial plan to use scrip to buy goods from vendors at the Orange International Street Fair may not be implemented this year as expected.

City officials announced Monday that the scrip system, which would replace cash at fair vending stands, will probably be postponed until the economy and attendance at festivals in the area improve.

Fairs and festivals in Orange County are experiencing a drop in attendance and vendor revenue, according to a prepared statement from the fair’s board of directors. A new scrip system cannot be tested fairly and will not be implemented until the economic climate improves, the directors said.

“We still think that going to scrip will be the best thing for the fair,” said Al Ricci, president of the board of directors. “But if the revenues are down, (opponents of the scrip system) will blame it on the scrip.”

Vendors have vehemently argued against the scrip system, claiming that visitors to the fair would be less likely to spend spontaneously if they must first purchase scrip. About a dozen vendors said they would not participate in the fair if scrip is used.

The final decision to postpone scrip implementation will rest with the fair committee, which will consider the issue at its June 17 meeting. An informal poll of committee members by the board shows support for postponement, Ricci said.

Fair officials decided in January to switch to a scrip system, which they said would help organizations compile complete records of attendance and profits. That information is necessary to attract corporate sponsors to the nonprofit event, the officials said.

Recording the amount of scrip used would also give the city a better record of how much sales-tax revenues it should receive from the event, according to Russell Barrios, a vice president of the street fair organization.

Vendors are required to pay sales tax to the state Franchise Tax Board, with a portion of the revenue returned to the city. Fair officials have said there has been no effective system to track sales at the fair.

“It’s about accountability,” Ricci said. “We want to make sure that the revenues are going for nonprofit purposes. When they bring us the scrip for redemption, we’ll only make out the check to a nonprofit organization. Who can argue with accountability?”

Officials of the Phoenix Club, an Anaheim-based club, said Monday that they will not participate in the Labor Day weekend fair even if the scrip implementation is deferred.

“The main reason for us not being there is because of the scrip,” said Paul Gunnemann, president of the club. “We are opening a new club around the same time, and we decided we couldn’t do both.”

A near doubling of the fee for operating a booth at the fair added to the Phoenix Club’s decision against participation, he said.

Ricci said there are still booths available for organizations that want to take part in the fair.