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Home My WebLink AboutCity Councilmember Item - Mayor Pro Tem Posey and Councilmem CITY OF HUNTINGTON BEACH COMMUNITY SERVICES DEPARTMENT INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To: Honorable Mayor and City Council Members From: Patrick Brenden, City Council Mem er P& Mike Posey, Mayor Pro Tern 1V Date: August 14, 2017 Subject: CITY COUNCIL MEMBER ITEM FOR THE AUGUST 21, 2017, CITY COUNCIL MEETING — DEVELOP A PLAN TO PROVIDE ADDITIONAL CITY SUPPORT FOR THE "2017 BREITLING HUNTINGTON BEACH AIR SHOW" STATEMENT OF ISSUE: The City of Huntington Beach will be hosting the Second Annual "Breitling Huntington Beach Air Show" event on September 30 and October 1, 2017, with fly-by practices on September 28 and a full choreographed practice day on September 29. For the 2017 Air Show, event organizers conservatively estimate the total production costs are close to $975,000. At this time, revenue estimates are approximately $625,000. If these estimates are realized, the 2017 event would have a funding gap of approximately $350,000. The projected deficit for the 2017 air show event, together with the $395,000 in losses from the 2016 event, have created significant financial challenges. Given overwhelming support for this event, combined with its value to the community, we believe that the City Council should consider providing financial support for the 2017 event. City Staff has advised us that costs for City services, including Police, Fire, and Marine Safety have increased from $194,915 in 2016 to an estimated $222,058 in 2017. In addition, the estimated cost for contracted services required from partner agencies such as the County of Orange Sheriff at $25,773 and the State of California at $29,800, as well as the cost of required event security services, are looming close to $40,000. Due to the size and scope of the multi-agency coordination required to produce this community event, and the associated substantial overhead costs, we have been advised it will be a challenge to continue this event in future years. In an effort to assist with the longevity and ongoing success of the Air Show, the City of Huntington Beach would like to consider providing additional financial support to the event. Assistance could include but is not limited to delaying the required payment for City Services, generating off-setting parking/camping revenue, creating a Public Safety "billing cap" at no more than a 50% Safety Cost recovery or by advocating partner agencies for their financial support for this very important event. RECOMMENDED ACTION: Direct the City Manager to develop a plan outlining options for the City of Huntington Beach to provide additional financial support for the "2017 Breitling Huntington Beach Air Show." Include the above-listed options and return to City Council at the September 18, 2017, City Council Meeting. xc: Fred Wilson, City Manager; Robin Estanislau, City Clerk 19Ppr6VeA-., 5- 6- 41 C )Connell- Esparza, Patty From: Judy Gustafson Dudygustafson@verizon.net] Sent: Monday, August 21, 2017 7:20 AM To: Agenda Comment Cc: Fikes, Cathy; CITY COUNCIL Subject: The Airshow: We Should Not Pay for This AGENDA COMMENT The city should not divert any funding to help pay for the airshow. If the airshow can't fund itself, we should not step in to help cover it. Judy 6ustafson judygustafsonCc)-verizon.net SUPPLEMENTAL COMMUNICATION Meeting Date:_ -2 l - 17 Agenda Item No., 2 i STATE CAPITOL DISTRICT OFFICE P.O.BOX 942849 �Q �'j 1503 SOUTH COAST DRIVE,SUITE 205 SACRAMENTO,CA 94249-0074 Yam' COSTA MESA,CA 92626 (916)319-2074 . (714)668-2100 FAX(916)319-2174 rt �l� t j Q � � �`Q FAX(714)668-2104 h MATTHEW HARPER ASSEMBLYMEMBER SEVENTY-FOURTH DISTRICT August 21,2017 Dear Huntington Beach City Couneilmembers: I am writing to you today to ask for increased support for the annual Huntington Beach Airshow. As you know, the Airshow is poised to add another dimension, and the Aerospace Education Foundation has brought to my attention the need for the City to increase its support. This needed support is the cost of the City supplied services that allow the Airshow to operate, which are projected to grow to about$220,000 this year. I urge you to work to cover these costs from sources associated with the Airshow. The revenue generated, in both occupancy and sales taxes, will offset the increased investment. In fact, the number of attendees for this year's Airshow could easily be double the 500,000 from last year. As a former Mayor and City Councilmembcr, I recognize that the Airshow has significant benefits for Huntington Beach and all of Orange County, and I strongly support doing all we can to make the 2017 Huntington Beach Airshow a world-class event. Thank you for your consideration and if I can ever be of assistance in any way, please don't hesitate to contact my office again at(714) 668-2100. Sincerely, SUPPLEMENTAL Matthew Harper COMMUNICATION Assemblymember, 74t" District Mee"Deb: Agenda Item No.•* Printed on Recycled Paper 8/19/17 To The Honorable Huntington Beach City Council: The Huntington Beach Downtown Business Improvement District is in favor of keeping the Huntington Beach Airshow in Surf City. We support the action of the AEFHB and the effort to work with the City to retain this wonderful family event. Regards, The Board of the HBDBID SUPPLEMENTAL COMMUNICATION Steve Daniel Matt Peterson M90VDeb: a/- /7 Brett Barnes AgwWa bem No.: STATE CAPITOL S IX) C4 959 141 6)65 1.4Q34 17AX t9 16 651 4934 i f i t H L:1 H GAP.DEN GROVE BLVD SENATOR SUITF P ETERArT_, GARDEN GRCI)E,CA 02.9-13 JANET NGUYEN TEI 1714,741 1 0'4 _40VERIJUR S M1111�Py C':)UNICIL FA,1711,741 10,11 THIRTY-FOURTH SENATE DISTRICT SFATE ALLOCATiON'DOaPC-) t A ear vkL3�:` V August 21 , 2017 The Honorable Barbara Delgleize Mayor City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Honorable Mayor and Members of the Huntington Beach City Council, As Senator ofCalifoi-nia's Thirty-Fourth District, I am writing to express my Support for the Annual .Huntington Beach Airshow and to urge the City of Huntington Beach to work with the the Aerospace Education Foundation of Huntington Beach to ensure that this 3-day event returns to Surf City, USA. Last year, I had the privilege of attending the Airshow and saw first-hand how this community event brought together thousands of spectators eager to celebrate the City's rich aerospace and aviation history. Beyond its community building feat, the Airshow was a magnet lOr tOLIriSI11, generating a significant intILIX of visitors. In addition to highlighting the City Of Huntington Beach, this Airshow benefited the Aerospace Foundation of Huntington Beach, which I.1inds grants and ZD scholarships for local Students pLII'SLIII1g careers in aerospace and aviation, thereby inspiring the next generation of'leaders In this Industry. Given the benefits generated by the Airshow it is important for the City of Huntington Beach to play a central role in the realization of this event. Therefore, I respectfully encourage YOU to COIISIder providing additional financial support for the 2017 Airshow. Your increased investment would not only help ensure that this event is a success but Would further enhance your City's reputation as a pi-effliel, destination. FOUNTAIN VALLEY GARDEN GROVE. LOS ALAMITOS.SANTA ANA,SEAL BEACH,WESTMINSTER.THE INCORPORATED CCMMILINITIES OF MIDWAY CITY AND ROSSMOOR.AND PORTIONS OF ANAHEIM,HUNT!NGTOM BEACH. LONG BEAC-1-1 aND ORANGE f=,or the abovementioned reasons, I urge your vote in favor of Agenda Item 225 to Continue this Important conversation and to ensure the I'etL11'11 Of this COnl III Lill]ty asset. If you have any questions please feel free to contact me at jallet.l]guyen c-c�,sen.ca.gov or (714) 741-1034. Sincerely, JAN T NGUV N Senator, Thirty-Fourth District California State Legislature CC: Mayor Pro Tempore Mike Posey Council Member Patrick Brenden Council Member Jill Hardv Council Member Billy O'Connell Council Member Erik Peterson COL1nC1I Member Lyn Semeta Switzer, Donna From: Surf City Pipeline [noreply@ user.govoutreach.corn] Sent: Monday, August 28, 2017 8:37 AM To: Pipeline Clerk Agenda Subject: Surf City Pipeline: You have been assigned a new Request* 30831 Request#30831 from the Government Outreach System has been assigned to you. Request type: Problem Request area: City Council - Agenda&Public Hearing Comments Citizen name: Irena Guilmette Description: I am a homeowner and business owner in 92649. I demand that not one penny of my tax dollars go to fund the 2017 Air Show. Our streets need to be repaired. We have financial liabilities with our city services and it would be fiscally irresponsible to fund an Air Show that we can not afford. It would be unwise to fund an air show that seems to be so poorly planned at the 1 Ith hour. Thank you for your time. Tracy Barden 4651 Minuet Drive Huntington Beach, Ca 92649 Owner: Core Pilates Center 16400 PCH #221 Huntington Beach, Ca 92649 Expected Close Date: September 7, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. 1 Switzer, Donna From: rf City Pipeline Sent: Monday, August 28, 17 11:42 AM To: genda Subject: Surf City Pipeline: You have been assigned a new Request#: 30835 Request#30835 from the Government Outreach System has been assigned to you. Request type: Problem Request area: City Council - Agenda& Public Hearing Comments Citizen name: Richard Hart Description: I am opposed to using city funds to finance the deficit in the Breitling Huntington Beach Air Show. This is a bad precedent to set for something that the producers will probably request annually. This is a private venture that went bad. It is bad pubic policy to use public funds to finance over a 30 percent deficit in a million dollar private venturet. Why should the public be the deep pockets to bad business decisions. The $300,000 plus in public funds that are being sought could be put to much better use for police, fire, public works, libraries, recreations, etc. If you take the Blue Angels out of the equasion I doubt you would give this a second thought to say no. Of the 20 air shows that the production company puts on nationally, how many cities finance 30 percent of production costs. I bet Huntington Beach would be the only city dumb enough to do it. Who benefits from this project: *The production company and consultants covers costs including salaries of who knows how much. While the production company says its a nonprofit, there are lots of ways to bury expense and hide profits. *Hundreds of thousands of spectators, mostly residents from outside HB, will enjoy the show and consume city services for which they did not pay a dime. *Downtown businesses, including bars, restaurants and hotels. *The HB council members will make new friends that maybe they can count on for campaign contributions. You might even receive a few of those few expensive $199 tickets for free. Who loses: *The residents of HB lose big time. We all love the Blue Angels but $300,000 can pay for a lot of critical city services. *The credibility of the city manager and city council the next time they claim the city does not have funds for critical city services. *Possibly the seat of incumbent council members at the next election. Do the right thing and do not use public funds to finance bad private sector business decisions. You're suppose to represent the people of Huntington Beach, not a production company that makes a business of putting on air shows. Thank you, Richard Hart 5842 Raphael Dr. Huntington Beach, CAlif. rwkkhart a,aol.com Expected Close Date: September 8, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. z Switzer, Donna From: Surf City Pipeline [noreply@user.govoutreach.com] Sent: Monday August 28. 2017 11:42 AM_ To: Pipeline Clerk Agenda Subject: Surf City Pipeline: You have been assigned a new Request#: 30833 Request #30833 from the Government Outreach System has been assigned to you. Request type: Problem Request area: City Council - Agenda& Public Hearing Comments Citizen name: Anonymous Description: Please cancel the airshow... It was noisy brought trash and traffic....and now they want money.....you dont even have enough money to fix problems....if there is so much money...please pay me for picking up trash on the beach and in the residential community's... Since you just want to increase tourism without protecting families who live here from such tourists...graffiti...vulgar language pissing in public...ect.. Expected Close Date: September 5, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. i �I Switzer, Donna From: Surf City Pipeline [noreply@user.govoutreach.com] Sent: Monday, August 28, 2017 11:4'AM To: Pipelme er genda Subject: Surf City Pipeline: You have been assigned a new Request* 30827 Request#30827 from the Government Outreach System has been assigned to you. Request type: Problem Request area: City Council - Agenda& Public Hearing Comments Citizen name: Jeff Young Description: Hi, My name is Jeff Young. Concerning the cancellation of the air show,please! Don't cancel it. This event is one of the few in Huntington Beach enjoyed by adults and children. Most of the events in Huntington Beach are geared toward teenagers The air show takes place 12:00 pm to 4pm there should be no need for $220,000 for extra police and fire security. A normal busy summer Saturday, Sunday staffing should be enough. Please reconsider, thank you Expected Close Date: September 7, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. 1-SOW 4 25 1 RECEIVED Dear Councilmembers, 2011 AUG 29 PM 3` 30 This communication concerns the so-called "Breitling Huntington Beach Air Show". I am a downtown HB resident, and I am strongly opposed to the city subsidizing the 10 1wlm opposed to the show, even if it could pay its way. HUNTINGTON BE A C�` These things are often murky for those of us who are not city hall insiders, but I believe the air show was initially brought to the city through Mayor Katapodis. I don't know who sells these event ideas to city council members and how these pitches are made, but there should be more transparency in these matters. In any case, during the first air show, those of us who live downtown had a weekend ruined because our windows were rattling and we had conversation interrupting, cringe inducing jet engines overhead for the better part of a day or two—thank goodness,the weather did not permit a full show. In this first show's aftermath, I watched a city council meeting during which despite information to the contrary, Mayor Katapodis and others on the council declared the show a success.There was even the suggestion that it was somehow patriotic to have the airshow. Really? It was just sad to see the then mayor and council patting themselves on the back about the questionable event.To be fair, Councilwoman Hardy did faintly try to give voice to citizen concerns, but the groupthink was too strong. I'm not sure how success is measured, but I have yet to see any revenue figures which would justify a repeat of this nuisance. There are only so many weekends in the year. We city residents who live downtown are as entitled to the quiet enjoyment of our homes as any other city residents. I think it is wrong of the city council to subsidize or even permit an event that causes such a weekend-long nuisance--our homes become uninhabitable for the duration of the show. If people want to experience window rattling jets overhead and conversation-interrupting, ear-shattering noise, they can go down to the San Diego neighborhood of the Marine Corps Air Station anytime they are flying there. I honestly don't see the benefit to the city of the airshow, especially if we are paying for it. I strongly urge you not to support any subsidizing of the air show, and I also strongly urge you not to support the continuation of this public nuisance that is so disruptive to the lives of those of us who live downtown. Thank you for your consideration. Stefan Hanson P.S. I wanted to mention that this air show boondoggle reminds me of the paint ball on the beach competition of a few years past. You may recall the paintball also. For that, a particular council person supported that event and was able to get the city to permit it.Then the city went through a lot of troubles to wind up with very little to show for it—the organizers didn't even clean up the beaches after the event. And with the paint ball event at least the hotels had some revenue out of it. I'm not sure the air show provides even that. Finally,the paint ball debacle faded away, let's let this airshow boondoggle do the same. C �4 7 30 0 CT 01 IN 2016, ITS VERY FIRST YEAR, THE BREITLING HUNTINGTON BEACH AIRSHOW SOARED TO BE ONE OF THE TOP AIRSHOWS IN THE U .S. 8/29/2017 2016 SURPASSED All EXPECTATIONS All 560K+ ATTENDANCE f i 12mm EARNED MEDIA 200mm+ MEDIASOCIALIMPRESSIONS TRADITIONAL • Public safety estimates over 560,000 people to the beach over 3 days in 2016. • A great venue was created for a wholesome, family-friendly, patriotic celebration! • More than 50,000 veterans in attendance in 2016. • Hundreds of community volunteers engaged in supporting the Airshow. • Overwhelming positive feedback from the community—people loved the event! • Great show of support from OC Board of Supervisors and State Senator Janet Nguyen. • Estimated B-10 million in increased year over year economic impact to Huntington Beach as ',, compared to the same time period in previous years (without the show). • Created a tremendous activation opportunity for local and downtown businesses, hotels, retail centers, merchants, restaurants, agencies and visitor groups to get involved and show their support for this great community event! The impact to our community has . . 2 OVERALL8/29/2017 ' ' ' ECONOMIC IMPACT 2016 Based on exif apwailu� w r0aA receipts as provided by'Visft Huntington Beach 11 J F MDRE THAN ONE MILLION VISITORS ARE EXPECTED TO ATTEND! Y . i li 8/29/2O17 Improvemen -1 Highlights I • Moving show 3,000 feet to the North due to FAA requirements means the show is closer to _ downtown businesses including restaurants,retail centers,hotels and more! More efficient use of space and monetary resources while delivering improved experience for all who attend. • Addition of"Airshow Plaza"to take over pier plaza as a great place for the community to learn about aviation. Airshow Plaza to include many STEM related exhibitors and activities. IN Tremendous lineup including the US Navy Blue Angels,Canadian Snowbirds,F35 Viper f Demo,F16,The Flying Horsemen(P51 Mustangs),FedEx 757 and MANY more! US NAVY LCAC to make an appearance to open show as well as a 2n4 vessel on static display on the North side of the pier. _ Weart media will have a custom app station I live radio broadcast so everyone,even those at home or at sea,can enjoy the show! A, • BID involvement with the closure of Main Street and addition of military static displays. $f.0 REGARDING PUBLIC-PRIVATE PRECEDENT All municipal services provided at no cost to event All municipal services provided at no cost to event All municipal services provided at no cost to event+ $100,000 BID funding City,County&State grants totaling$385,000 All public-private funding precident is founded on the idea that the supported event(s)generate a net positive cash result for the host Cities. In all instances.the Cities recieve substantial gains through increased TOT,sales tax,name identification,community goodwill. etc. 5 J 8/29/2017 � III y v w: THE AIRSHOW NEEDS YOU, THE COMMUNITY! . _ _ ...;,:::.,•.,off�.:: _ . _ ..,. 3016 2017 Ertim @l INCOM w J El nw ip hpwknas 5 11"": o s 25025sA .00 F■■■ ■L■■ 1 SWnwMip $ In,J010] $ 350p60.0] BUDGET PROJECTION M. Twl�m f :4W $ 32 W Munw"Il rvkn $ 16;615.°] $ 3]),63L. pl!m i S T.kn, 5 36,]0°m s 3a,500.00 I.� I 6°yf 9 5 $OO=.W S Bs,W.W Tr ,w Wn 5 -.p .00 5 65,M= • Projected revenues up in all income categories ,°,I/°I, $ 9F lw $ 16100000 % Ud= $ 179.3 n S 17S.M.00 • Projected year over year revenue increase > 50% M, pn5 s 90.M $ 5.000.05 FveMSbMM&Support S 15°,(pp.0] $ 150p00.UU • Production expenses flat or reduced in most pkMp„ gwrt s ].=,W $ 9OW categories with increased costs in municipal InnnM. s 11762.W $ lip9 W services& lodging. o p&9 5z 3IMM 5 :e000.00 profeubnal5etwiry $ ]3.3W.W 5 lS,lltl.p] • Airshow is projected to lose $350,000 without $ 7,500.W community support. Mh C 6N % $ 30, w Ta ,Eq 5 B05,m.n 5 9n1631W MRI°mne $ 1393,6]LM$ (35°alm) 6 8/29/2017 THE AIRSHOW IS IN JEOPARDY The Airshow team has made a significant investment to bring and build this show in Huntington Beach but cannot sustain the current projected losses for 2017. KEY POINTS • Events of this nature rarely make money in the first 3-5 years. • Most events of this nature receive substantial support from their host cities and visitor and convention bureaus, particularly in the early years. • The City of Huntington Beach continues to receive substantial name identification and is recognized as the host of one of the top 3 airshows in the United States land soon to be#1). • National brands are showing significant interest, waiting on sidelines until the Airshow can prove it has established metrics (typically 3-4 years). • The Airshow has commitments from the USAF Thunderbirds to return for 2018. • Brands such as Breitling, FedEx and others have committed for 2018 and beyondl jton Beach Ai . should be seen as a lone im pay dividends over the lifetime of the event. 1 I 5 � 1 1 � 1 � 7 ~ � a 30 01