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Home My WebLink About21 - Corona del Mar Car Classic��tiWPOQT CITY OF NEWPORT PORT !1 EACH City Council Staff Report Agenda Item No. 21 February 28, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager APPROVED:LC� 1C /1A i v � TITLE: Reconsideration: CdM Coastline Classic: Waiver of Parking Fees @ Big Corona ABSTRACT: The Corona del Mar Chamber of Commerce (CdM Chamber) has asked to enter into an agreement with the City of Newport Beach to pay a reduced parking rate for the Chamber's use of the CdM Parking Lot for its Coastline Car Classic event. The fee waiver exceeds $1,000 and requires Council's consideration and approval. This request was presented to, and approved with modifications, by the Council on January 24. A motion for reconsideration was approved on February 14 as Council found the item ambiguous as presented and thus desired further clarification. RECOMMENDATION: 1. Approve a parking fee of $503 for the 2011 Coastline Car Classic, constituting a fee waiver of approximately $6,997. 2. Authorize the City Manager to enter into a three -year agreement with the CdM Chamber that would charge the Chamber a "rolling average" for its use of the Big Corona parking lot in 2012 and 2013 (should the Chamber choose to do so and should a special event permit be issued for the Coastline Car Classic). 3. Approve parking fee waivers for 2012 and 2013 in advance, provided that the amount waived is not above $10,000 and is consistent with the approach described in Recommended Action #2. FUNDING REQUIREMENTS: There is no specific funding associated with this item, but the item attempts to project (and charge) a revenue amount that would compensate the City for estimated "lost" use Reconsideration: CdM Coastline Classic: Waiver of Parking Fees @ Big Corona February 28, 2012 Page 2 of the Big Corona Parking Lot as if the Coastline Car Classic did not occur and did not take up uncompensated parking spaces. DISCUSSION: Background The CdM Chamber of Commerce sponsors the Coastline Car Classic every year on a Sunday in September at Big Corona State Beach. The CdM Chamber asked to enter into an agreement with the City to pay a reduced parking rate for use of the City's parking lot for its event. This request was first considered by the Council on January 24 (staff report attached). Though Council approved a waiver, a motion for reconsideration was approved on February 14 as Council and staff sought further clarification on whether a one -year fee waiver was approved or a three -year agreement to reduce parking fees was approved. This item is intended to provide further information on three components of the request — the amount of the fee waiver and how it could be calculated, the time period encompassed by the proposed agreement, and the Special Events Advisory Committee process. Fee Waiver & Calculation The Corona del Mar Parking Lot year -round rate of $15 per vehicle per day was approved by the City Council in May 2010 and is in line with what some nearby private property owners and public agencies in neighboring jurisdictions charge for parking. Each September, the Chamber reserves 500 spaces at Big Corona during the weekend of the car show (200 spaces on Saturday and 300 spaces on Sunday). The "market value" of those spaces is approximately $7,500 (based on rate of $15 per vehicle per day, no'turnover of spaces). Any fee collected other than that amount constitutes a waiver of the Council- approved rates for this parking lot. After several concepts were debated, the City Manager's Office met with CdM Chamber representatives and suggested the following four -step process: A. Every year, the City would calculate the revenue collected at the parking lot during the Car Show weekend (Weekend #1) and the weekend immediately following the Coastline Car Classic (Weekend #2). B. Over two consecutive years, the year past (Year #1) and the current year (Year #2), the Weekend #2 revenues would be averaged together. C. In the current year, the City would calculate the difference between the amount collected on Weekend #1 and Item B above. 0 Reconsideration: CdM Coastline Classic: Waiver of Parking Fees @ Big Corona February 28, 2012 Page 3 D. The Chamber would owe the City either: a. $0; or b. The Weekend #2 Two -Year Average less the Actual Revenue collected in Weekend #1 (whichever is higher). The table below demonstrates how the suggested reduced fee could have been calculated for 2011. BigCoronaStateBeach Car Weekend Show I, weekend After the Car '' Rolling Average Weekend 2 -year - 2009 $ Show After Car Show_ E 2012 - Estimate tExample ONLY Amount Owed for 2011, EXAMPLE ONLY Payable in 2012 Payoble in 2013 $ 503 AmountOwedfor2012, EXAMPLE ONLY Payoble in 2013 $ 393 Since the Council- approved parking rate ($15 per vehicle per day) for those 500 spaces is approximately $7,500, the fee waiver created by charging only $503 is $6.,997. This amount exceeds the City Manager's authority for approving fee waivers ($1,000) and therefore must be reviewed and considered by the Council. Note: The January 24, 2012 staff report for this item used a slightly different formula — one that averaged two years of the Car Show Weekend revenues. At second review, staff believes that a more appropriate rolling average base is the "Weekend After the Car Show" rolling average: This change results in a lower 2011 fee for the Chamber of $503 versus $880. Time Period During its meeting with the Chamber representatives., staff suggested entering into a three -year agreement that would encompass the 2011, 2012 and 2013 Coastline Car Classic events. A multi -year agreement would assist the Chamber in its yearly Reconsideration: CdM Coastline Classic: Waiver of Parking Fees @ Big Corona February 28, 2012 Page 4 budgeting efforts. To further assist the Chamber, staff has agreed that the amount due each year for the event parking costs would be the previous year's amount (i.e., the Chamber would pay the 2011 amount as it pays its 2012 event fees). Special Events Advisory Committee (SEAC) Process At the January 24 meeting, there was brief discussion as to whether the CdM Chamber should submit future requests for Coastline Car Classic financial assistance through the SEAC process. That process is conducted once each year, in concert with the City's budget development cycle. Applications for the FY 13 funding cycle were due on February 15. At its last meeting Council agreed to allow the CdM Chamber to submit a late application if the Council only approves the 2011 waiver this evening. The CdM Chamber has asserted that they are requesting a parking "fee agreement" rather than a waiver and that this request should be considered separately from the SEAC process. SEAC grant agreements include specific language that requires each applicant to provide detailed financial statements associated with event operations, and to allow the City to audit the event financials if needed, to assure that grant monies are spent according to their approved use. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental 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). Submitted by: 7- Dave Kiff, City Manager Attachments: A. January 24, 2012 Staff Report q CITY OF NEWPORT BEACH P City Council Staff Report Agenda Item No. C14Q %� January 24, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Tracy McCraner, Director 949- 644 -3123, tmccraner @newportbeachca.gov PREPARED BY: Tracy McCraner, Finance Director APPROVED: TITLE: Corona del Mar (CDM) Coastline Car Classic: Waiver of Parking Fees @ CDM Parking Lot ABSTRACT: The Corona del Mar (CDM) Chamber of Commerce sponsors a classic car show every September at Big Corona State Beach. The coastline car classic is a time - honored event held in CDM for family, friends and car enthusiasts. The CDM Chamber has requested to enter into an agreement with the City of Newport Beach to pay a reduced rate for parking that would equate to a comparable rate earned for use of the CDM parking lot during a non -peak season event. The City Manager would like to provide this discount, which would not lower expected revenues in the lot, but does require a waiver of the $15 per vehicle flat rate as approved by Council in May, 2010. The car show requests approximately 200 spaces on Saturday and 300 spaces on Sunday. The waiver would be approximately $7,500. RECOMMENDATION: Staff recommends that Council approve the waiver of approximately $7,500, as the event is held in September, after our peak summer season. FUNDING REQUIREMENTS: CDM Chamber would agree to pay a reduced rate for the lot, one that would equate to a similar value to the City. DISCUSSION: The CDM Chamber hosts the coastline car classic in September each year. This motorsport event showcases the elegance, craftsmanship, and beauty of the most distinguished and unique automobiles in Southern California, and is attended by 5 Corona del Mar (CDM) Coastline Car Classic: Waiver of Parking Fees @ CDM Parking Lot January 24, 2012 Page 2 thousands of visitors and residents each year. The City has been working with the CDM Chamber to identify a reduced rate for use of the CDM parking lot during the car show weekend. The Council- approved cost to use the parking lot is $15 /day per vehicle. However, the event is held during the third weekend in September which occurs after our peak busy summer season. The City Manager has negotiated a reduced rate for the lot as identified in a side letter agreement and discussed below. "The Corona del Mar (CdM) Chamber of Commerce hereby agrees to payment of fees for the two -day (Saturday and Sunday) use of a portion (described by the number of parking spaces) of the City's Corona del Mar State Beach parking lot for its annual Classic Car Show held during September. Fees shall be calculated by charging an amount equal to the revenue collected by the City during a two -day (Saturday and Sunday) time period one week after the date of the Car Show of the prior year. The City agrees to waive its standard fee of $15 per parking space in lieu of the formula above." ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQK) 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, Califomia 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). Submitted by: �- c \ C Tracy Mc r`aner Finance l ' ctor/Treasurer 1