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HomeMy WebLinkAboutAirSupport LLC - 2016-04-18 (3)Dept ID CA 16-004 Page 1 of 3 Meeting Date 4/18/2016 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 4/18/2016 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Janeen Laudenback, Director of Community Services SUBJECT: Approve and authorize execution of a three-year agreement between the City and AlrSupport LLC to promote and manage the air show above Huntington City Beach, authorize staff to work with AlrSupport LLC to permit the air show through the Specific Event permitting process and approve waiver of $3,425 in Specific Event fees, authorize the Finance Director to approve an increase in appropriations and projected revenues cover staffing costs, and approve a $10 00 daily parking surcharge for the inaugural vear Statement of Issue The City of Huntington Beach was contacted by AlrSupport LLC with a proposal to become an open-air beach venue for a premier Air Show in the fall of 2016 The City of Huntington Beach, in partnership with AirSupport LLC, has an outstanding opportunity to host an aviation event over the coastal waters of Huntington Beach In an effort to position Huntington Beach to accommodate such a high profile event, there is a need to approve a multi -year agreement with AlrSupport LLC (Attachment 1) for the production of the Surf City USA Air Show and to adjust select parking fees to allow for City in -kind support for this event in its inaugural year Financial Impact Per Section 13 54 of the Municipal Code relating to Specific Events, all direct costs for the event, including staffing and operational set-up/tear-down costs associated with the event day, should be reimbursed by the event promoter AlrSupport LLC has agreed to make an initial investment into the inaugural year of this proposed annual event and has agreed to cover all of the associated direct costs, including staff time and operational set-up/tear-down expenses for Police, Fire, Marine Safety, and Beach Maintenance Preliminary analysis indicates that the staffing costs for Police, Fire, Marine Safety and Beach Operations for this two-day event will total approximately $194,915 as follows Department/Division Amount Fire/EMS $61,225 Fire/Marine Safety $56,960 Police $73,405 Community Services/Beach Maintenance $3,325 Total (Estimated) $194,915 Item 14. - 1 HB -676- Dept ID CA 16-004 Page 2 of 3 Meeting Date 4/18/2016 In addition to these direct staffing costs, AlrSupport LLC will also be required to pay all costs associated for event support required by Huntington State Beach, County Harbor Patrol, US Coast Guard as well as any other attributable costs These costs will be determined by the Individual agencies and, if needed, the Specific Events process will be able to assist with the coordination of service by these various agencies In an effort to assist AlrSupport LLC with some of the direct costs for the event, Staff is proposing that a portion of these costs be covered through an increase to day -of -event parking rates by $10 00 per vehicle at the south beach lots, Pier Plaza lots, and the Main Promenade Parking Structure (MPPS) This would increase the daily parking rates in the south beach lots and Pier Plaza to $25 00 and the MPPS daily rate to $27 00, as is currently done for the Fourth of July celebration Staff estimates that this increase would generate approximately $32,000 per day in additional revenue that could be earmarked to pay for a portion of the direct staffing costs itemized above Assuming a two-day event, plus a full rehearsal the day before the event, the potential parking revenue could be as much as $96,000, thereby reducing the estimated costs for direct City services to be paid by AlrSupport LLC from $194,915 00 to $98,915 In addition to this in kind support, AlrSupport LLC is requesting that the City waive $3,425 in Specific Event application and permit fees for the inaugural year of the Surf City USA Air Show Recommended Action A) Authorize the Mayor and City Clerk to execute a three-year "Agreement Between the City of Huntington Beach and AlrSupport LLC to Promote and Manage the Air Show in Huntington City Beach," and, B) Authorize staff to work with AlrSupport LLC by appropriately permitting the Surf City USA Air Show through the Specific Events permitting process, and, C) Approve the City's support of the Surf City USA Air Show for 2016, and approve a $10 00 surcharge to the daily parking rates for the Main Promenade Parking Structure, south beach lots, and Pier Plaza lots for the inaugural year, and, D) Authorize staff to collect and deposit the day -of -event $10 00 surcharge into Fund 101, Specific Events parking accounts to offset the various staffing costs that will be charged to this fund, and, E) Approve the waiver of $3,425 in Specific Event application and permit fees for the inaugural year of the Surf City USA Air Show, and, F) Authorize the Finance Director to approve an increase of $194,915 in appropriations and $96,000 in projected revenues in the FY16/17 budget, Fund 101 budget to cover Fire, Marine Safety, Police, and Beach Maintenance staffing costs in their respective business units Alternative Action(s) Do not approve agreement and direct staff not to pursue a "Surf City USA Air Show" Analysis The City of Huntington Beach was contacted by AlrSupport LLC to discuss the possibility of becoming a venue for an air show in the fall of 2016 The attached proposal was provided (Attachment 2) AlrSupport LLC is a full -service air show and aviation event management, planning, and production company Founded in 1,995, the company's primary mission is to provide aviation event services that allow its customers to enjoy a professional, profitable, and safe air show This event presents an outstanding opportunity for a premiere aviation experience over the water in Huntington Beach Initial discussions with the AlrSupport Team have generated a great deal of interest, both from the air show community and local partners HB -677- Item 14. - 2 Dept ID CA 16-004 Page 3 of 3 Meeting Date 4/18/2016 The AirSupport Team draws on decades of combined experience and offers a wide range of services Including preliminary consultation, site selection and evaluation, show planning, and complete on -site management They will work together to provide the City's Specific Events team with important information about site availability, event logistics, crowd management, safety and security They will also take the lead in the recruitment and acquisition of military demonstration and static display aircraft to provide an interesting and professional event line up A well -organized and comprehensive layout strategy will be planned by the AlrSupport Team, and will provide for quality customer service, sponsorship, and event safety Site design including aircraft positioning and movement, placement of emergency services, vendor and sponsor location and public parking will be presented through the Specific Events process The AlrSupport Team will also provide for staging and movement of aircraft before, during and after the air show as well as assistance with selection of performers and other industry professionals The AlrSupport Team has been working with the City's Specific Events Committee on the layout and design of every aspect of the air show The Specific Events Committee is well versed in developing requirements for various complex events such as the US Open of Surfing and the Fourth of July Celebration The committee is comprised of representatives from City Departments, including, but not limited to, Police, Fire, Community Services, and Public Works as required per Chapter 13 54 of the Huntington Beach Municipal Code All of the City's major events are approved through this interdepartmental Specific Event review process However, due to the scope of the proposed event and potential overhead costs, Staff is seeking City Council approval for the Agreement between the City of Huntington Beach and AlrSupport LLC as well as the authorization of parking surcharges The show of support generated by the recommended City Council action will provide AlrSupport LLC with additional leverage needed to pursue and secure event sponsors and partners as well as the direction needed to continue through the Specific Events Application process Environmental Status Not applicable Strategic Plan Goal Improve quality of life Attachment(s) 1) Agreement between the City of Huntington Beach and AlrSupport LLC to promote and manage the air show above Huntington City Beach 2) AlrShow LLC Proposal Item 14. - 3 xB -678- TA #1 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND AIRSUPPORT LLC TO PROMOTE AND MANAGE THE AIR SHOW IN HUNTINGTON CITY BEACH THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and AIRSUPPORT LLC, a New York limited liability company, hereinafter referred to as "AirSupport LLC " WHEREAS, CITY wishes to host a premier air show on the City's Beach (hereinafter "EVENT"), and AirSupport LLC has indicated its willingness to promote such EVENT and desires to manage such EVENT on C1ty's behalf, and CITY will receive financial and other benefits from the EVENT and desires to continue to conduct the EVENT for the years 2016, 2017, and 2018 and provides for an extension upon mutual agreement, for an additional three (3) years and 2019, 2020, and 2021, and It is in the best interest of both parties to set forth the general terms and conditions which will be applicable to the EVENT, NOW, THEREFORE, CITY and AirSupport LLC agree to the following terms and conditions AUTHORITY AirSupport LLC shall conduct the EVENT on the weekend (Friday. Saturday, and Sunday) of October 21-23, 2016, October 20-22, 2017 and October 19-21, 2018, (or a date mutually agreed to by the parties), using CITY's Beach as the EVENT site under the general terms and conditions contamed in this Agreement This Agreement is subject to Huntington Beach Mumcipal Code, Chapter 13 54 Specific Events, which requires among other things. for AirSupport LLC to apply for and process an annual permit for the EVENT Application to the Specific Events Committee may be made at any time throughout the year, but not later than ninety (90) days prior to each year's EVENT Specific guidelines and conditions, including specific location for each EVENT will be developed each year, depending upon alterations to the EVENT In addition to successfully obtaining a City of Huntington Beach Specific Event permit each year, the promoter must also meet all requirements placed upon them by outside agencies having logistical responsibility for the air show 2 PERMIT FEES AND DIRECT COSTS a) All costs, fees and conditions that apply to each year's EVENT will be determined at the time of review through the Specific Events Committee These may include, but are not limited to, specific event permit fees, police 16-5133/132256 2 costs, fire department permits and costs, public works costs for road closure and traffic control plans, business license, parking and parking lot use AirSupport LLC is responsible for paying all associated CITY costs and fees 30 days in advance of the EVENT b) The CITY will make every effort to notify AirSupport LLC of any activity planned on or adjacent to the Huntington City Beach that may inhibit or otherwise disrupt the use of the beach during the EVENT within three (3) months of the event 3 TERM, EXTENSION This Agreement shall apply to the EVENT for the years 2016 through 2018, and shall remain in effect until November 1, 2018 This Agreement may be extended, upon mutual agreement of the parties in writing, for an additional three year period, to include the years 2019, 2020, and 2021 This Agreement may be terminated by either party with eleven (11) months prior written notice to the other party, or within eleven (11) months of the next EVENT date if both parties mutually agree on conditions of termination However, CITY may also terminate this Agreement upon thirty days prior written notice to AirSupport LLC if a) AirSupport LLC fails to comply with the conditions of approval for the EVENT, or b) AirSupport LLC fails to pay assigned fees in advance of the event, as set forth each year by the Specific Events Committee, or c) After review by the Specific Events Committee and subsequent evaluation by the City Council, AirSupport LLC's performance is determined to be below the standards consistent with the management of a first class professional air show event Factors to be considered in any such determination may include, but are not limited to compliance with the conditions of approval for the EVENT as set forth by the Specific Events Committee, timely payment of fees, compliance with all health and safety requirements, d) AirSupport LLC fails to meet all requirements placed upon them by outside agencies that are impacted by the air show, and successful response to community access Issues 4 EVENT LOCATION The specific location of the EVENT, staging and parking will be vetted annually through the Specific Events process through the terms of this Agreement AirSupport LLC agrees and understands that the beach and parking facilities north of the pier are owned by the State of California and CITY operates this area under the terms of an operation agreement Use of this area is subject to review and approval by the State of California Department of Parks and Recreation 16-5133/132256 2 2 and subject to any and all conditions of the Operating Agreement between the State of California and CITY AirSupport LLC agrees and understands that the beach and parking facilities south of Beach Boulevard and north of Seapomt Street are owned by the State of California Use of this area is subject to review and approval by the State of California Department of Parks and Recreation 5 EXCLUSIVITY For the term of this Agreement the sole, exclusive and only recognized air show on public property in CITY shall be conducted by AirSupport LLC If AirSupport LLC or CITY desires to conduct additional event(s), either party shall have ten (10) calendar days (the "Acceptance Period") to accept or reject the offer Any offer not accepted by, written notice to AirSupport LLC or from AirSupport LLC to the Director of Community Services within the Acceptance Period shall be deemed rejected 6 EVENT PARKING Taking into consideration other beach uses and programs, CITY will make available use of certain parking lots and areas within the City beach lots, including the Huntington City Beach for EVENT parking Specific lots, fees, and areas will be determined as part of the annual Specific Event process 7 HOLD HARMLESS AirSupport LLC shall protect, defend, indemnify and save and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages; losses, expenses, judgments, demands and defense costs (including. without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with AirSupport LLC's performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by AirSupport LLC, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY AirSupport LLC will conduct all defense at its sole cost and expense and CITY shall approve selection of AirSupport LLC's counsel This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable The policy limits do not act as limitation upon the amount of indemnification to be provided by AirSupport LLC 8 WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to California Labor Code Section 1861, AirSupport LLC acknowledges awareness of Section 3700 et seq of said Code, which requires every employer to be insured against liability for workers' compensation, AirSupport LLC covenants that it will comply with such provisions prior to commencing performance of the work hereunder 16-5133/132256 2 3 Unless AirSupport LLC files with CITY an approved, signed Declaration of Non -Employer Status, AirSupport LLC shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits AirSupport LLC shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees AirSupport LLC shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and AirSupport LLC shall similarly require all subcontractors to waive subrogation. 9 INSURANCE In addition to the workers' compensation and employer's liability insurance and AirSupport LLC's covenant to defend, hold harmless and indemnify CITY, AirSupport LLC shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the EVENT This policy shall indemnify AirSupport LLC, its officers, employees and agents while acting within the scope of their duties. against any and all claims arising out or in connection with the EVENT, and shall provide coverage in not less than the following amount combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of Ten Million Dollars ($10,000,000) per occurrence If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than Ten Million Dollars ($10.000,000) for this EVENT This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the EVENT shall be deemed excess coverage and that AirSupport LLC's insurance shall be primary Under no circumstances shall said above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage 10 CERTIFICATES OF INSURANCE, ADDITIONAL INSURED ENDORSEMENTS No later than 60 days before the start of each year's event, AirSupport LLC shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement, the certificates shall a) provide the name and policy number of each carrier and policy, b) state that the policy is currently in force, and c) promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of CITY 16-5133/132256 2 4 AirSupport LLC shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY The requirement for carrying the foregoing insurance coverages shall not derogate from the AirSupport LLC's defense, hold harmless and indemnification obligations as set forth under this Agreement CITY or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance AirSupport LLC shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required AirSupport LLC shall provide a separate copy of the additional insured endorsement to each of AirSupport LLC's insurance policies, naming CITY, its officers; elected and appointed officials. employees; agents and volunteers as Additional Insureds, to the City Attorney for approval prior to any payment hereunder 11 CITY EMPLOYEES AND OFFICIALS AirSupport LLC shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code 12 ASSIGNING AS BREACH AirSupport LLC shall not encumber, assign or otherwise transfer this Agreement, or any right or interest in this Agreement, without the prior express written consent of CITY A consent by CITY to one assignment or transfer to another person or entity shall not be deemed to be a consent to any subsequent assignment or transfer to another person or entity Any encumbrance, assignment or transfer, without the prior written consent of CITY, whether it be voluntary or involuntary. by operation of law or otherwise. is void and shall, at the option of CITY, terminate this Agreement 13 NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to AirSupport LLC or to CITY's Director of Community Services as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows TO CITY City of Huntington Beach Attn Janeen Laudenback Director of Community Services 2000 Main Street Huntington Beach, CA 92648-2702 (714) 536-5292 TO AirSupport LLC AirSupport LLC Attn Michael C McCabe. President 6470 Powell Hill Road Naples, NY 14512 (585) 393-9000 16-5133/132256 2 5 14 LEGAL SERVICES SUBCONTRACTING PROHIBITED AirSupport LLC and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder AirSupport LLC understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY, and CITY shall not be liable for payment of any legal services expenses incurred by AirSupport LLC 15 ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party 16 ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that parry's behalf, which are not embodied in this Agreement, and that that parry has not executed this Agreement in reliance on any representation. inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement This Agreement, and the attached exhibits, if any, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof 16-5133/132256 2 6 IN WITNESS WHEREOF, the parties hereto hav caused this Agreement to be executed by and through their authorized officers on /L.. 2016 CONSULTANT; CITY OF HUNTINGTON BEACH, COMMUNITY SERVICE PROGRAMS, a municipal corporation of the State of California INC By /? print name ITS (circle one) Chairman/President/Vice President AND By print name ITS (circle one) Secretary/Cluef Financial Officer/Asst Secretary -Treasurer Mayor City Clerk V,��,� INITIATED AND APPROVED Ch (2�L__ 1)4of Community Services REVIE D APPROVED City,,Maga er APPROVE O FO Attorney i 16-5133/132256 2 7 Item 14. - 11 HB -686- a WHAT: Surf City USA Air Show WHERE: Huntington Beach, CA (proposed left/east side of pier) WHEN: Proposed Fall of 2016 or 2017 WHY: The public's long-standing and insatiable fascination with aviation attracts a broad cross section of the consuming public for extended afternoons of safe, wholesome, affordable family entertainment. The proposed event would serve to further showcase Huntington Beach's waterfront and the new and existing development which is making Surf City USA a premier resort destination. HOW: AirSupport LLC is a full -service airshow and aviation event management, planning and production company. Founded in 1995, the company's primary mission is to provide professional aviation event services that produce profitable and safe airshows and has done so with a significant history of success. FOR DISCUSSION: AirSupport LLC has been evaluating the feasiblity of presenting an over -water air show at Huntington Beach. Featured performers may include: • The U.S. Navy's Blue Angels or Air Force's Thunderbirds • Military Aircraft Demonstrations - single -ship demos such as the Air Force F-22 Raptor or F-16 Viper, or the Navy's F-18 Super Hornet, as well as other military participation, fly-bys, and demonstrations. • Parachute demonstration — Military, or civilian professional team • Civilian performers — individual performers and/or teams • Warbirds and historic aircraft Also being considered is a water show component which may include performers of local interest. The AirSupport team believes that Huntington Beach and facilities surrounding it provide all the essential elements needed to host a world -class air show. We would appreciate the opportunity to share our vision of this proposed event with the members of the Huntington Beach City Council and to address any questions or concerns. AirSupport LLC (585) 393-9000 Please visit us at www.AirSui)port.com © 2015 AirSupport LLC Item 14. - 13 xB -688- 11S4A.4_-'4y_ �1_ ABOUT AIRSUPPORT LLC AirSupport LLC is a full -service airshow and aviation event management, planning and production company. Founded in 1995, the company's primary mission is to provide aviation event services that allow its customers to enjoy a professional, profitable and safe airshow. The AirSupport Team draws on decades of combined experience and offers a wide range of services including: preliminary consultation, site selection and evaluation, show planning, public relations and media management as well as complete on -site management. Some of the pinnacle events AirSupport has assisted with include the 2007, 2008 Kennedy Space Center World Space Expo airshow, the DAV Flight team (our 13th year), the 2009 Indianapolis 500 Flyby, five groundbreaking flagship events for the U.S. Navy to commemorate the War of 1812 and most recently the Culpeper Air Fest and their award winning Potomac Flight over the skies of Washington D.C. honoring Disabled American Veterans. For further information, please visit www.AirSupport.com. 'IOU AirSupport LLC 6470 Powell Hill Road, Naples, NY 14512 www.airsupport.com HB -689- Item 14. - 14 HUNTINGTON BEACH AIRSHOW City Council Administrative Item April 18, 2016 STATEMENT OF ISSUE • The City of Huntington Beach was contacted by AirSupport LLC with a proposal to become the venue for a premier Airshow in the fall of 2016 There is a need to approve a multi -year agreement with AirSupport LLC for the production of the Huntington Beach Airshow • Adjust select parking fees to allow for City in -kind support for this event in its inaugural year ABOUT AIRSUPPORT LLC AirSupport LLC is a full -service air show and aviation event management, planning and production company, Founded in 1995 • MISSION: To provide professional aviation event services to produce profitable and safe aviation events ABOUT AIRSUPPORT LLC The AirSupport Team offers a wide range of services including: • Preliminary Consultation • Site Selection and Evaluation • Show Planning • Public Relations & Media Management • On -site Management CITY/STATE AIR BOX The airshow/aerobatic box is centered near Beach Boulevard and extends parallel of both City and State Beaches FEATURED PERFORMERS Featured performers may r: include: • Air Force Thunderbirds • Breithng jet Team • Military Demonstrations • Parachute Demonstrations • Civilian performers individuals and/or teams • War -birds & historic aircraft FINANCIAL IMPACTS Per Section 13.54 of the Municipal Code - Specific Events: • All direct costs for the event should be reimbursed by the event promoter. • AirSupport LLC will cover all of the associated direct costs, including staff time and operational set-up/tear-down expenses for Police, Fire, Marine Safety, Public Works and Beach Maintenance. PRELIMINARY STAFFING COSTS BEACH PARKING PROPOSAL • Staff is proposing an increase of day -of - event parking rates by $10.00 per vehicle at the south beach lots, Pier Plaza lots, and the Main Promenade parking Structure Staff estimates that this increase would generate approximately $32, 000 per day in additional revenue that could be earmarked to pay for a portion of the direct staffing costs SPONSORSHIPSIPARTNERSHIPS City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk April 28, 2016 AirSupport LLC ATTN: Michael C. McCabe, President 6470 Powell Hill Road Naples, NY 14512 Dear Mr. McCabe: Enclosed for your records is a copy of the fully executed "Agreement Between the City of Huntington Beach and AirSupport LLC to Promote and Manage the Air Show in Huntington Beach". Sincerely, Joan L. Flynn, CIVIC City Clerk JF:pe Enclosure Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand