HomeMy WebLinkAboutRequest for Fee Waiver, Parking Offset Contribution, and In- MpRU✓ED ITS M ,4
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City of Huntington Beach
177
File #: 19-958 MEETING DATE: 9/16/2019
Consider request for fee waiver, parking offset contribution, and in-kind trash collection
services for Code Four, Operator of the Great Pacific Air Show scheduled to take place on
October 4-6, 2019 in the City of Huntington Beach
A) Authorize the City Manager to approve a Specific Event Permit for the 2019 Great Pacific Airshow
that includes a fee waiver of $11,250, parking offset revenues of up to $100,000 contingent on actual
parking revenues, and that utilizes aspects of the City's in-kind contributions via its waste franchise
agreements (estimated at up to $10,000); OR
B) Deny the above requests for the 2019 event; OR
C) Consider alternative options.
City of Huntington Beach Page 1 of 1 Printed on 9/11/2019
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City Council/ AGENDA September 16, 2019
Public Financing Authority
2019-55 (City Manager Employment Agreement) including the inter-fund transfer of$1.58
million from FY 2018/19 General Fund budgetary; transfer request is reflected in
Attachment 1; and,
D) Authorize appropriation and inter-fund transfers in non-General Fund accounts for
expenditures totaling $104,317 as contained in Attachment 1.
Approved 7-0
PUBLIC HEARING
22. 19-940 Public Hearing held; adopted Resolution 2019-69 approving an
Annual Assessment within the Huntington Beach Downtown Business
Improvement District (DTBID) for Fiscal Year 2019-2020; and authorized
appropriation of funds
Recommended Action:
A) Conduct the Public Hearing; and,
B) If protests of 50% are not received, adopt Resolution No. 2019-69, "A Resolution of the
City Council of Huntington Beach Approving an Annual Assessment Within the Huntington
Beach Downtown Business Improvement District for Fiscal Year 2019-2020" and,
C) Appropriate an additional $29,000 for a total of$120,000 into Fund 710 for FY
2019-20.
Speakers- None
Supplemental Communications- (1)
Approved 7-0
ADMINISTRATIVE ITEMS
23. 19-958 Approved request for fee waiver, parking offset contribution, and
in-kind trash collection services for Code Four, Operator of the
Great Pacific Air Show scheduled to take place on October 4-6, 2019
in the City of Huntington Beach
Recommended Action:
A) Authorize the City Manager to approve a Specific Event Permit for the 2019 Great
Pacific Airshow that includes a fee waiver of$11,250, parking offset revenues of up
to $100 000 $110,000 contingent on actual parking revenues, and that utilizes
aspects of the City's in-kind contributions via its waste franchise agreements
(estimated at up to $10,000); OR
B) Depy the abe:o requests for-the 2049 e ,e„t- OR
Approved Item A) as amended 7-0
Administrative Item #19-958
Agenda Date: September 16, 2019
Subject: Consider request for fee waiver, parking offset contribution,
and in-kind trash collection services for Code Four, Operator of the
Great Pacific Air Show scheduled to take place on October 4-6, 2019 in
the City of Huntington Beach
The staff report and any related documents will be published with
Supplemental Communications scheduled for release on Friday,
September 13, 2019 at approximately 3:00 PM.
151
SUPPLEMENTAL
COMMUNICATION Page 1 of 3
Meetng Date: 2116 , -
Agenda Stem No.:
_ CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: September 16, 2019
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Dave Kiff, Interim City Manager
PREPARED BY: Travis Hopkins, Acting Assistant City Manager
SUBJECT: Consider request for fee waiver, parking offset contribution, and in-
kind trash collection services for Code Four, Operator of the Great
Pacific Air Show scheduled to take place on October 4-6, 2019 in
the City of Huntington Beach
Statement of Issue: The City of Huntington Beach was recently contacted by Code Four,
the Operator of the Great Pacific Air Show. Code Four is requesting a fee waiver, a
parking offset contribution and in-kind trash collections services in support of the air show
event on October 4-6, 2019.
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,
should be reimbursed to the City by the event promoter. Code Four has agreed to cover all
associated direct costs other than those they are requesting that the City waive, including
staff time and operational set-up/tear-down expenses for Police, Fire, Marine Safety, Public
Works and Beach Maintenance.
Preliminary analysis (emphasizing "preliminary" in that costs are finalized after the event,
and can fluctuate from estimates depending on the event days' circumstances) indicates
that the estimated 2019 staffing costs for Police, Fire, Marine Safety, Public Works and
Beach Operations for this two- day event will total approximately $ 201,960 as follows:
Department/ Division Amount
Fire/ EMS $ 33,000
Fire/ Marine Safety $ 71,560
Police $ 87,900
Public Works/Beach Maintenance 9,500
Total (estimated) $ 201,960
In addition to these direct staffing costs, Code Four will also be required to pay all costs
associated for event support required by Huntington State Beach, Orange County Harbor
Patrol, US Coast Guard as well as any other attributable costs. These costs will be
Page 2 of 3
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.
Recommended Action:
A) Authorize the City Manager to, for the 2019 Air Show event only: (1) waive the
related event application fees $450, the Daily Set-up/take-dawn fee of$6,750, the Permit
fee of$4,050, the per space parking fee of$10 per day used for up to 200 spaces which
will average to be $25,000 this year, (totaling $36,2510 in fee-related waivers); (2) provide
parking offset revenues of up to $110,000, (3) utilize aspects of the City's in-kind
contributions via its waste franchise agreements for the 2019 event only (estimated at up to
$9,600); and require Code Four to provide a professional economic Impact Study to the
City prior to February 1, 2020; OR
B) Deny the above requests for the 2019 event; OR
C) Consider alternative options.
Analysis:
History of the Great Pacific Air Show
2019 will be the fourth year of an Air Show in Huntington Beach. This will be the second
year that Code Four will be the operator of the event. Each year of the Air Show the event
operator has requested that the City waive related permit fees and provide parking offset
revenue to assist with their event costs. To date the City has waived and estimated
$86,425 in permit related fees and provided $296,094 in parking offset revenues. This
includes up to 200 parking spaces provided each year no cost to utilize for both their set-up
and staging area as well as event related VIP and staff parking. In 2017 the City Council
asked the operator to provide economic impact data to support their request for the fee
waivers and parking offset revenues (see Attachment#1).
The Code Four team has been working with the City's Specific Events Committee on the
layout and design of every aspect of this year's air show. All of the City's major events are
approved through this interdepartmental Specific Event review process. This event in
particular is the most staff intensive due to the scope of the event as well as the necessary
safety aspects that require evaluation and implementation.
In the first two years, this event has had a major title sponsor to offset some of the costs,
but a sponsor of that level has not been secured as of the date of this staff report. Code
Four argues that the event has significant economic benefits to the Huntington Beach
community, is a destination air show for people who know (and fly in) air shows, and is
worthy of the City's financial support in this instance. Staff anticipates that Code Four will
present a letter that reflects these assertions.
In this case, City support of up to $155,850,00 would come in the form of:
1. About $11,250 in waived fees associated with the event's application fees, fees for daily
impact on the public beach, and more.
Page 3 of 3
2. Waiver of the $10 per parking space per day use fee which is estimated this year to be
$25,000.
3. Up to $110,000 in a transfer of event-related parking revenues to offset the event's
costs (staff refers to this as a "parking offset".) In this case, beach and related parking
fees during the event are raised from $15 to $30.00 per day. The event would receive
the incremental difference between parking revenues at the impacted lots on a typical
October weekend and the actual parking revenue taken in during the event at those
same lots. (See Attachment#2).
4. Use of"in-kind" waste collection services that the City of Huntington Beach is otherwise
entitled to via its waste collection franchise with Republic/Rainbow. This could become
a cost item if the City ha_s overall annual in-kind use above the franchise provided
amount. Currently staff estimates that the city will be within the Franchise provided
services limit with this request. We estimate the requested services cost at up to
$9,600.00.
Visit Huntington Beach is a supporter of this event, both as a sponsor and having indicated
VHB's willingness to fund and to contract for a more detailed fiscal impact analysis of the
2019 Air Show and its effects on the local economy. Staff anticipates that this will be
available to decision-makers in the coming months should a similar request for City support
occur in 2020.
Staff recommends that, if the Council wishes to provide the described level of support for
the 2019 Show, the Council also ask that there be some recognition of the City's support in
marketing and other materials, banners, and day of promotional announcements
(understanding that some of this may only be in a digital-only format given the calendar
proximity to the 2019 event). The Council may also wish to make clear via this action or its
comments under what circumstances the City would entertain further support for 2020 and
beyond.
Environmental Status: Not applicable.
Strategic Plan Goal
Improve quality of life.
Attachment(s):
#1 - 2017 Airshow High Level Fiscal Impact Report
#2 - Parking Offset Information
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Attachment#2
Parking Offset Information
2016-2018 average beach parking gate revenue for 1st weekend in Oct.
Beach Revenue $3,955 $14,200 $9,460 $27,615
MPPS Revenue $2,185 $7,483 $4845 $14,513
Beach Revenue $6,120 $26,380 $7,145 $39,645
MPPS Revenue $2,705 $4,505 $4,008 $11,218
Beach Revenue $3560 $9,715 $6,300 $19,575
MPPS Revenue $2,600 $4,617 $3,423 $10,640
Beach Parking Gate Average =$28,945
MPPS (Main Promenade Parking Structure)Average= $12,124
Total Average = $41,069
If approved,Great Pacific Air Show would receive a credit towards the payment due to the City for
fees and services from parking revenues received over the three day period of October 4, 5 and 6
2019 in the amount that is the difference between $41,070 and up to$110,000.
TI�eGxeat Pacific Airshow
PACIFIC 5252 Bolsa Avenue
AI R S H OW Huntington Beach, CA 92649
. :�G�11AIIIA www.pacificairshow.com
(888) 648-TGPA
September 16, 2019
Dear Council Members:
I am writing this letter to formally request the Council approve continued accommodation of
the Pacific Airshow, consistent with the terms that have been established in previous years.
We request that the City continue to provide a parking offset of public safety fees as well a
waiver of permit fees, application fees, and daily set-up and take-down fees. Additionally, we
request that the City provide in-kind contributions via its waste franchise agreement.
Regarding the parking offset, the premise for the resolution on parking and RV fee increases
was that they were done "in support of the event" (as referenced multiple times in the
resolution). Given support of the event as the basis for the multitude of council action(s) and
ultimate permanent amendments to the master fee schedule, it was anticipated that this
support would continue in to the future. It should be noted that Pacific Airshow has
undertaken efforts to market and maximize the revenue generated by parking and premium RV
camping experiences in order to assist with offsetting public safety cost.
The Pacific Airshow team, myself included, were given assurances that this support would be
part of our permit with the City and have built our event budgets around this assurance.
As the Council is aware the Pacific Airshow is a great economic engine for our community
including our local businesses, small and large. Pacific Airshow has worked extremely hard to
maximize its positive contrition to our community by sourcing all of our professional services,
manufactured goods, merchandise manufacturing and much more right here in Huntington
Beach. We have partnered with our local hotels to put over 1,500 room nights in our City for
the 2019 edition alone. The economic benefit to Huntington Beach is in multi-millions.
We are proud to have an impeccable safety record with zero incidents or arrests attributed to
the event despite the large crowds that it draws. Huntington Beach should be proud to play
host to this extremely patriotic, family-friendly event that improves upon itself year-over-year.
SUPPLEMENTAL.
COMMUNICATION
Meetling Date: 1�_
Agenda Re„ No.: gs
As of last week we have announced the addition of the US Air Force Thunderbirds to our lineup
which is sure to draw even larger crowds and even greater exposure to the City of Huntington
Beach. This addition makes Huntington Beach the only venue in North America to host 3 jet
teams during the 2019 Airshow season. This is all great for Huntington Beach!
Not only is the Pacific Airshow team is working tirelessly to build the best Airshow in the world,
but we are working to do it in a productive and constructive way for our Community. We are
actively building partnerships (large and small) and developing the commercial viability of
hosting a largely "free" public-facing event here in Huntington Beach. Our trajectory is sent to
become the largest event in Orange County and one of the most attended outdoor events in
the Country.
It is for all of these reasons and more, I request that you continue to accommodate this great
event as our team works to continue to develop it.
Very Truly Yours,
Kevin Elliott
Airshow Director
The Great Pacific Airshow