9/6/2022
HUNTINGTON
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INCORPORATED c00000
Pacific Airshow
Subsidy Request and Deferrec
Payment Schedule for Fees anc
Charges
September 6, 2022
Item #30
SUPPLEMENTAL
COMMUNICATION
Mealing Date: 9/0/2022
#30(22-733
Agendar lism No.
History
2016 - Airshow Inaugural Year - City Council Actions
• Adopted Resolution No. 2016-65, which increased
parking rates to help offset direct staffing costs owed by the event organizer.
• Approved deferral of 75% of fees until 30 days after
the event.
2017 - City Council
• Adopted Resolution No. 2017-44, temporarily raising
parking rates in the south beach lots & the Main
Promenade Parking Structure in support of the event.
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History
2017- City Council (continued)
• Approved the deferral of payment for all public
safety/staff charges to 45 days following the event.
2018 -Economic Development Committee -
Consensus to continue to provide a similar parking
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subsidy due to the transition between the former event
organizer and Code Four
History
2018 - City Council
• Adopted Resolution No. 2018-48, which made the
parking rate modifications in support of the event
permanent.
2019 - Economic Development Committee
• Code Four reported a continued need for support from
the City until a large sponsor could be found.
2019 - City Council
• Unanimously approved a parking subsidy of no more
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History
The 2022 event will be the sixth year the City hosted an airshow and the fourth year that Code Four will be the
organizer of the event.
Each year the event organizer has requested that the
City waive related permit fees and provide a parking
subsidy to reduce their event costs.
To date, the City has waived $86,425 in permit related
fees and provided $296,094 in parking offset revenues.
History
This includes approximately 200+ reserved parking
spaces each year at no cost to utilize for both set-up and staging areas, as well as event related VIP and
production staff parking.
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HUNTNGTON
NCORPORATED
EA
Statement of
Issue
Statement of Issue
The City of Huntington Beach has been contacted by Code Four, the event organizer of the Pacific Airshow requesting:
1. A subsidy be approved as part of the permitting process,
2. A deferred payment schedule for fees and charges due to the City.
Per HBMC Section 13.54 relating to Specific Events, all direct costs for any event, including staffing, operational set-up and tear-down fees, as well as various permit and reserved parking space charges, are to be paid by the
organizer at least 30 days prior to the event date. COUNTY 4 9/6/2022
HUNTGTON
INCORPORATED C00O0a
BEACH VINY
Fiscal Impact
Fiscal Impact
The proposed subsidy could be similar to the past
•City Council approved amount of up to $110,000.
The amount is based on a share of the actual
parking and HB RV Campground revenues collected
during the three-day event and would be used to
offset a portion of the estimated direct event staffing NGTON costs. BEACH
COUNTY
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Fiscal Impact
Preliminary analysis estimates the 2022 airshow direct event staffing costs at $134,366. Note that this amount is an estimate and that final costs may fluctuate based on the actual staffing needs during the event.
Estimated Direct Event Staffing Costs
Police $48,000
Fire $9,876 GTON
Beach Maintenance $5,768
Marine Safety $69,990
Public Works/ Electrician $732
Total $134,366 CALIFO
Fiscal Impact
Code Four Expenses Due To The City
Staffing Costs $134,366
Various Permit Fees $17,797
Estimated Reserved Parking Space Charges used $40,800
for Event Production Staging and VIP Purposes
(240 Spaces X 17 Days X $10)
GTON
Reserved HB RV Campground Sites to be Sold and $64,000
Packaged by the Organizer (40 Sites X$1,600) CITY OF BEACH Total $256,963
CAL
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Fiscal Impact
Approval of a subsidy of up to $110,000 as approved by
City Council in prior years would reduce Code Four's
bottom line costs from $256,963 to $146,963 to be used to offset direct staffing event costs.
Original Amount $256,963 Owed to City by Code Four
Less $110,000 Share of Parking Revenue Subsidy
Adjusted Amount $146,963 Reduced Amount (with Subsidy)
Fiscal Impact
Should the City Council approve the $110,000 maximum
subsidy, the General Fund would lose that same amount
in potential revenue for the three-day event.
However, typical pre-airshow parking revenues during
similar weekends averaged $41,000, so even with the
subsidy, a potential gain of $42,532 could be realized. 2022 Event $193,532 Estimated Event Parking & HB RV Revenues Less $41,000 Average Pre-Airshow Parking
Less $110,000 Maximum Parking Share Subsidy
Balance $42,532 Potential General Fund Gain
7 9/6/2022
HUNTINGTON
NCORPORATED B
Recommended
Action
17, 1909,
00a000
Recommended Action
A) Consider Code Four's request for a subsidy, and based on previous approvals, grant up to $110,000 in parking and camping revenue for the 2022 event to cover a portion of direct staffing expenses and direct staff to transfer said amount; AND/OR,
B) Consider Code Four's request to delay the portion of the fees and charges due related to direct City event staffing and auto parking spaces, to be invoiced to Code Four following
reconciliation of actual costs and due to the City by November 15, 2022. Require payment of the $17,797 in permit fees and $64,000 in HB RV Campground site revenue prior to the event per the Huntington Beach Municipal Code; OR,
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Recommended Action
C) Deny Code Four's subsidy request and direct staff to require full payment of all fees, charges, and HB RV
Campground site revenue in the amount of $256,963
no later than September 23, 2022.
D) Provide any direction City Council deems appropriate regarding financial support of future air show events.
Final Considerations
In conclusion, staff is recommending that at a minimum, Code Four pay the following by September 15, 2022:
: $64,000 in HB RV Campground sites
Under this scenario, the balance of fees and charges will be billed within 30 days after the event and Code Four would be required to pay all final amounts by November 15, 2022. 9 9/6/2022
Final Considerations
The proposed maximum $110,000 shared parking
subsidy, if approved, would be only for the 2022 event.
Should there be a desire to continue to accommodate the Pacific Airshow event, City Council may wish to provide staff with additional direction regarding future financial support per Recommended Action D.
Questions?
10