HomeMy WebLinkAbout15 - Russo & Steele Collector Automobile Auction Bannerr
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CITY OF
NEWPORT BEACH
City Council Staff Report
May 13, 2014
Agenda Item No. 15.
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director- (949) 644 -3330,
dawebb@newportbeachca.gov
Socheata Chhouk, Civil Engineer
949 - 644 -3346
Russo and Steele Collector Automobile Auction Banners - Approval of
Encroachment Permit N2014 -0182
ABSTRACT:
Russo and Steele, LLC (Russo and Steele) is requesting approval to install a maximum of 100
banners on City -owned streetlights along East Coast Highway from Bayside Drive to MacArthur
Boulevard; along Newport Boulevard from Via Lido to Hospital Road; along Jamboree Road
from East Coast Highway to Eastbluff Drive - University Drive; and along MacArthur Boulevard
from East Coast Highway to San Joaquin Hills Road for the Russo and Steele Collector
Automobile Auction.
RECOMMENDATION:
a) Waive the provisions of Council Policy L -16 pertaining to the following: the requirement that
the event is open to the public and free of charge, that the event is conducted by a non - profit
corporation or organization, and that the event is co- sponsored by the City;
b) Conditionally approve Russo and Steele's request to install a maximum of 100 banners
from Friday, May 23, 2014 through Monday, June 23, 2014 for the 2nd annual Russo and
Steele Collector Automobile Auction. Installation will be along East Coast Highway from
Bayside Drive to MacArthur Boulevard; along Newport Boulevard from Via Lido to Hospital
Road; along Jamboree Road from East Coast Highway to Eastbluff Drive - University Drive, and
along MacArthur Boulevard from East Coast Highway to San Joaquin Hills Road; and
c) Authorize a waiver of the Encroachment Permit fee of $1,428.00.
FUNDING REQUIREMENTS:
Minor - loss in revenue of $1,428.
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DISCUSSION:
From Thursday, June 18 through Saturday, June 21, Russo and Steele will host the 2nd annual
Russo and Steele Collector Automobile Auction at the Newport Dunes Resort.
Considered an "automotive lifestyle event," the Russo and Steele Collector Automobile Auction
event activities include a charity gala night benefiting the Children's Hospital of Orange County
(CHOC) before the three -day collector car auction begins. General admission ticket price is $20
for daily admission or $55 for a 3 -day pass.
In 2013, Russo and Steele reports there were 9,000 visitors to the event. They have signed a
10 -year agreement to host the Russo and Steele Collector Automobile Auction event at the
Newport Dunes Resort. They are committed to having a successful annual event.
The event is expected to have a considerable and favorable economic impact on the
community as these visitors are expected to stay in local hotels, dine in local restaurants, shop
in town, and utilize service- related businesses. The Russo and Steele Collector Automobile
Auctions are also held in Scottsdale, Arizona; Monterey, California; and Las Vegas, Nevada.
To help welcome the visitors, Russo and Steele is requesting a maximum of 100 private
banners be installed from Friday, May 23, 2014 through Monday, June 23, 2014 along the
City's major thoroughfares. The banners will be mounted on street light poles in the public
right -of -way along East Coast Highway (28 banners), Newport Boulevard (10 banners),
Jamboree Road (42 banners), and MacArthur Boulevard (20 banners). Attachment A shows
the proposed Russo and Steele banner locations. Attachment B shows the proposed Russo
and Steele banner layout. The banners on Newport Boulevard and portions of East Coast
Highway are within Caltrans right -of -way and will require a Caltrans Standard Encroachment
Permit.
Council Policy L -16 (Temporary Banners Extending Over the Public Right of Way) includes
general provisions for permitting street light banners. Per the Council Policy, banners can be
used to "notify the general public of a community -wide event, open to the general public without
charge, conducted by a non - profit corporation or organization, and co- sponsored by the City of
Newport Beach."
City staff is requesting that the City Council waive some of these provisions and approve the
encroachment permit. The Russo and Steele Collector Automobile Auction will have an
admission cost, is not conducted by a non - profit organization, and is not co- sponsored by the
City of Newport Beach. However, the event will be community -wide and open to the public.
The event activities are within Newport Beach and may generate additional business within the
community and will ultimately produce sales and transient occupancy tax for the City.
In the past, requests for similar events, such as "Barrett- Jackson Collector Car
Auction" (approved May 25, 2010) and "Vizio BCS National Championship" (approved
November 26, 2013), have been approved by the City Council and there were no reported
complaints from members of the public.
Attachment C shows a letter from the applicant describing the event. Russo and Steele is
requesting an Encroachment Permit fee waiver of $1,428.00.
Should the City Council elect to approve the installation of a maximum of 100 private banners in
the City for 30 days, staff recommends the following conditions of approval:
374
1. No banners shall be installed on traffic signal poles or metal streetlight poles.
2. The applicant must provide on -going maintenance of the banners and brackets.
3. The applicant must sign a "Hold Harmless Statement" requiring maintenance of the
banners /brackets and indemnification and hold harmless for any liability associated with the
banners /brackets.
4. The applicant must maintain a minimum of $1,000,000 in liability insurance from a
company with a Best's Key Rating Guide parameter of "A" or better, and a financial size
category of "VIII" or higher.
5. The applicant will obtain an Encroachment Permit (N2014 -0182) from the Public Works
Department.
6. The banners shall conform to City Council Policy L -16 with the exception of these general
provisions— non - profit corporation or organization, open to the public free of charge, and co-
sponsored by the City.
7. All banners and brackets shall be removed by the end of the approved time.
8. All banners and brackets shall comply with the Encroachment Permit conditions
9. If needed, the City may require removal of some of the banners to allow other
organizations to install banners at the same location and during the same time period.
10. The traffic control plans related to lane closures necessary for installation /removal of the
banners shall be prepared in accordance with the Work Area Traffic Control Handbook
(WATCH, latest edition). The traffic control shall be set up per the approved traffic control plans
and WATCH.
11. A minimum of two, 5 -inch wide, half - circle wind slits per banner are required to minimize the
wind load.
12. The Utilities Division shall approve the final banner locations.
13. The banner size shall be limited to 30" wide by 84" tall.
14. A Caltrans Standard Encroachment Permit shall be obtained by the applicant's contractor
for the banners within the Caltrans right -of -way.
It should be noted that Council Policy L -16 was amended on May 14, 2013 and if this request is
approved, subsequent requests for the same event may be approved by the City Manager,
provided that the size, number, location, and banner type (language and graphics) are
unchanged.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental
375
Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the
activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to
the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item).
ATTACHMENTS:
Description
Attachment A - Location Map
Attachment B - Banner Sample
Attachment C - Applicant's Letter
376
'EUROPEAN SPORTS. AMERICAN MUSCtE. HOT RODS AND CUSTOMS "
RUSSO AND Mlrai �
C0LLICCT0i9 AUTOMOBILa AUCTIONS=—.
Map 1: Pacific Coast Highway (28)
Between MacArthur Boulevard & Bayside Drive
Map 2: Newport Boulevard (10)
Between Hospital Road & Via Lido
Map 3: Jamboree Road (42)
Between Bayside Drive & University Drive
Map 4: MacArthur Boulevard (20)
Between Pacific Coast Highway & San Joaquin Hills
RZ,I�
C
ATTACHMENT A
•V
CITY OF NEWPORT BEACH
Russo and Steele Collector Automobile Auction Banners PUBLIC WORKS DEPARTMENT
Location Map Permit No. N2014 -0182 1 05/13/2014
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377
ATTACHMENT B
202235 N. Cave Creeek Road, Suite 104 -240
Phoenix, A% 85024. United States ® Screen Print Art �p p��� ®���
Main: 602.882.2625
Cell: 623.889.1793 Digital Print 04.23.14
info @corydoncustoms.com
Job Information:
City of Newport Beach Pole Banners -100 (one hundred)
Printed both sides, same image @ 720 d.p.i.
3.5 "top /bottom pole pockets- reinforced 3/4" Brass
2- 3/4" brass grommets Grommets
2- 5" wide half circle wind slits
30" (2.5ft) x 84" (7ft) = 17.5 sq. ft.
HD 15 oz. Blackout Vinyl
Approval Signature:
X
i
(Print Name)
3/4" Brass
Grommets
Project: City of Newport Beach Russo and Steele
Date: 4/23/2014
Type: Banner Design and Specifications
This design
a 30"
Pocket seam
3.5" Pole Pocket
5 "Wind Slits
Pocket seam
3.5" Pole Pocket
Corydon, L.L.C. • 202235 N. Cave Creeek Road, Suite 104 -240 • Phoenix, AZ 85024 • Main: 602.882.2625 • Cell: 623.889.1793 • info @corydoncustoms.com
01103
JUNE
19 -21
COLLECTOR
JUNE
19 -21
379
ATTACHMENT C
E U R O P E A N SPORTS. A M E R I C A N M U S C L E . HOT RODS AND CUSTOMS
,FRUOSO AND STaML=�
COLLECTOr� AUTOMOBILE AUCTIONS
Russo and Steele is a world renowned auction house specializing in the sale of classic
and collector automobiles, automobilia and celebrity memorabilia. Russo and Steele
currently holds four events a year, including its annual event in Newport Beach,
California at The Newport Dunes Waterfront Resort. Russo and Steele caters to an
astute, and sophisticated "enthusiast" clientele, and the city of Newport Beach with its
inspiring scenery, world class shopping and restaurants, and wonderful family friendly
environment provides a perfect backdrop.
Russo and Steele's highly successful inaugural Newport Beach event welcomed 9,000
visitors through its gates in 2013. 80% of Russo and Steele's guests identified
themselves as visitors from outside the Newport Beach area. These event patrons fed
directly into revenue streams of local hotels and resorts. They frequented restaurants
and retail establishments. They visited Newport's world class beaches and golfing
facilities, and they participated in nightlife activities. As a byproduct of the auction
event, Russo and Steele's patrons come to Newport Beach with the intention of
enjoying all the wonderful amenities that city is famous for. This in short, means that
Russo and Steele events are great for business, great for the city of Newport Beach and
great for its taxpayers.
2014's festivities kick off on Wednesday June 18th with a preview event, charity gala and
auction benefitting CHOC (Children's Hospital of Orange County). Auctions start on
Thursday June 195h and run through Saturday June 2155. Auction preview will begin daily
at 10:OOAM, with official events beginning at noon.
Russo and Steele has an affinity for the businesses and residents of the city of Newport
Beach. Not only does Russo and Steele look at them as critical contributors to the
creation of a perfect production, but really as partners in a long term recipe for success.
Recently Russo and Steele further demonstrated their commitment to the businesses
and taxpayers of Newport Beach by entering into a ten year arrangement with The
Newport Dunes Waterfront Resort. Russo and Steele looks forward to a long and
successful partnership with the city of Newport Beach, its business community, and
most importantly, it's wonderful and diverse residents.
:o
2013 Russo and Steele Newport Beach Car Auction at the Dunes Resort, Newport Beach, CA
Russo and Steele compiled information taken from a survey of attendees at our 2013 Collector
Automobile Auction that took place in Newport Beach, CA on June 20 -22, 2013. The following is a recap
of some of the information gathered:
Of Russo and Steele's 9,000 2013 Attendees, 80% stated that they came to Newport from outside of the
Newport Beach Metropolitan area.
.- you,Ivw ngon AI,Ming A.— —d Sl—tl h —.,WdW the N.111 Melmlwlllm NeN
70% of Attendees stated that Russo and Steele influenced their decision to come to Newport.
MIS NuI."S1[0l Inlluaneyae c&Ic nto vivl Nv.p n?
381
Of Russo and Steele's 9,000 2013 attendees, 14% (1,200) identified themselves as bidders or consigners
and stated that they visited Russo and Steele's Newport event with the intention of purchasing or selling
a vehicle.
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� eme.M aen -roan
Of attendees that identified themselves as bidders or consigners, 81% indicated they were from out of
the area, the following shows the influence on area hotels and resorts.
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11 you are visi ling, please check where you are slaying:
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Family oc Pnends
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Additionally, of these 81%, the following shows the percentage of the number of days these individuals
stayed during their visit to Newport.
11 yoow si inpnow ma ny n16M11ure you Or,,,Z? (nlene ulnt one)
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Another interesting piece of information garnered from the survey, was the number in the traveling
parties of total Russo and Steele Newport Beach auction attendees:
f:%
Hosv many people in your IF party? (please select one(
a'.
6%
S%
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to 1
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9%
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2%
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4%
9
y%
All Oka Re cases
2%
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Finally, Russo and Steele's 2014 Newport Beach Car Auction at The Dunes Resort features a robust
advertising budget. This not only demonstrates a strong commitment to a successful event, but in turn
to also sings the accolades of the City of Newport Beach to a wide national and international audience.
This year, Russo and Steele has invested $100,000 in promotional media. Below is just a sample of Russo
and Steele's advertising outlets, and the investment involved:
PUBLICATION
INVESTMENT
Direct Mail
$9,700
Hemmings Motor News
$6,000
Sports Car Weekly
$8,100
Old Car Weekly
$4,000
Vintage Motorsports
$2,200
OC Register
$12,300
RM