The URL can be used to link to this page

Home My WebLink About6/11/2008 - STAFF REPORTS - 5.A. OF PALM So _ R u' c �ILIFOV , City Council Staff Report DATE: June 11, 2008 SUBJECT: DIRECTION TO STAFF ON SUSPENSION OF CERTAIN REGULATORY ORDINANCES TO FACILITATE THE 2008 AMERICAN HEAT - PALM SPRINGS MOTORCYCLE WEEKEND, AND REQUEST FOR SPONSORSHIP FROM: David H. Ready, City Manager BY: Department of Parks and Recreation SUMMARY Road Shows, Inc. has produced the American Heat - Palm Springs Motorcycle Weekend, since 2000. Previously, the event was on Palm Canyon Drive, however, for the last three years, it has been held at the Spa Resort Casino parking lot. Following the 2007 motorcycle weekend, the promoter received notification from Spa Resort Casino staff that the parking lot would not be available for the event's use. In response to a request from the Main Street Executive Board, the promoter is proposing to hold the event on Palm Canyon Drive for three (3) days, from October 10th through October 12th. Palm Canyon Drive would be closed between Alejo and Baristo roads. Additionally, a Resolution is required to temporarily suspend the City's Noise Ordinance, Noise Nuisance, Dance Permits, Zoning Ordinance, and Sign Ordinance. Finally, the promoter is also seeking sponsorship funding assistance to offset the cost for City services. The estimate of subsidy requested is $44,000. RECOMMENDATION: 1. Adopt Resolution No. ,A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUSPENDING CERTAIN REGULATORY ORDINANCES FROM OCTOBER 10 THROUGH OCTOBER 12 TO FACILITATE THE 2008 AMERICAN HEAT - PALM SPRINGS MOTORCYCLE WEEKEND. 2. Provide budget direction to staff regarding promoter's request to cover in-kind services above $24,000; for a total subsidy of approximately $44,000 (Note: Given the potential budget deficit from the Governor's decision to withhold Special Distribution Funds for Gaming impact mitigation for the 08/09 fiscal year, the City Manager's recommendation is to ask RSI to provide full funding for City services). 06/11/08 ADDITIONAL MATERIAL Item 5.A. 2008 American Heat - Palm 6prings Motorcycle & Hoto ee en Page Two STAFF ANALYSIS: Road Shows, Inc. (RSI) is a fully-licensed entertainment booking agency and event production company based in Reno, Nevada. RSI produces several well-known motorcycle and hot rod events throughout the country. The 2007 event was held at the Spa Resort Casino parking lot. The Spa Resort Casino gave notice to the promoter last year, following the event, that its property would no longer be available for the event. The promoter has been meeting with various parties to secure a location for the 2008 American Heat weekend. The Main Street Executive Board is in full support of placing American Heat- Palm Springs Motorcycle Weekend on Palm Canyon Drive and has been working with the promoter on this move. The new location on Palm Canyon will require a street closure in the downtown for three days. The setup and load-in for the event will begin at 8:00 a.m. on Friday, October 12, and Palm Canyon will remain closed through Sunday, October 14, until approximately 9:00 p.m. Arrangements will be coordinated through Main Street to allow for merchant product deliveries, U.S. Postal Service, Fed EX, UPS, DHL and other mail delivery services. Main Street representatives and the Downtown Administrator will work directly with the promoter to handle any merchant issues or complaints that arise as a result of the closure both prior to and onsite during the event. The event layout will include entertainment stages, bike parking, and vendors. In coordination with Main Street, the promoter has agreed that no food vendors will be permitted. All vendors will be set up in the center of Palm Canyon Drive, with emergency access provided on the east and west sides of the street. The layout has been approved by the Palm Springs Fire Department (PSFD) with specific conditions for the street closure listed in the Event Promotion Agreement. For the 2007 event, the Council allocated $40,000 for in-kind services and the promoter was paid $24,000 toward those expenses. Actual expenses were approximately $14,000 related to the event site and $20,600 for extra coverage by the Police Department in the downtown area and on main thoroughfares throughout Palm Springs due to the influx of bikers. Additionally, PSPD received free supplemental assistance and support from the California Highway Patrol, California Department of Justice, Riverside County Regional Gang Task Force Unit, Bureau of Alcohol, Tobacco and Firearms, Riverside County Sheriff, San Bernardino County Sheriff and other southern California law enforcement agencies at no cost to the City. Although these agencies have participated in the Bike Weekend event for the past eight years, at this early date, it is not known whether these law enforcement agencies will continue to provide such services at no cost to the City. The value of the outside law enforcement support for 2007 is estimated at $84,000. 2008 American Heat - Palm Springs Motorcycle & Hot Rod Weekend Page Three For the proposed 2008 event, City services are expected to increase due to the venue being changed back to Palm Canyon Drive. RSI is again requesting that their fees for services be capped at $24,000, with the City participating as a sponsor to cover the remaining in-kind costs. The City service expenditure estimates are as follows: Parks Division —Trash management and event clean up $ 8,000 Public Works — Street closures & monitoring, signage, traffic control $ 4,400 Fire Department— First aid, fire inspection, on-duty Fire Marshal $ 5,300 Special Events staff— Oversight $ 1,200 Police Department — Public safety 49 100 Total $68,000 FISCAL IMPACT: The request to supplement in-kind City services is approximately $44,000 ($68,000 minus $24,000 from RSI). Mr. Randy Burke, RSI owner, will be present at the Council Meeting to discuss the anticipated "return on investment" to the City, in terms of anticipated hotel rooms, economic impact, etc. In the alternative, RSI is may consider a two day event. City expenses would be approximately $12,800 less. Sharon Heider, Director Thomas Wilson, Assistant City Manager Department of Parks and Recreation Development Services David H. Ready, City A4anagei--�^ Attachments: 1. Resolution Suspending Certain Regulatory Ordinances 2. Letter of Request from Road Shows, Inc. City of Palm Springs 2008-2009 General Fund Budget Update Proposed Positive I Proposed Budget (Negative) Budget as of June 4th Changes June 11th Revenue $75,6233895 $0 $7516231895 Transfers In 600,000 0 600,000 Transfers Out (854315971 ) (73500) (8,4397471) Appropriations (679458,246) 0 (6734583246) Surplus/(Deficit) $3339678 ($7,500)F $326,178 SDF_Loss Spendin_g Plan, Proposed Budget as of June 11th Surplus/(Deficit) $3269178 Indian Gaming Special Distribution $ loss ($1 ,331 ,655) Surplus/(Deficit) After loan to SDF ($1 ,0051477) Identified Offsets: Positions - reorg & budgeted but frozen $225e 000 Capital Projects - budgeted but frozen 471 ,000 696,000 Revised Operations Surplus/(Deficit) ($309,477) 6/9/2008 Data for Budget Presentation (6-11-2008)7 11:00 AM 001108 ADDITIONAL MATERIAL Item 4.A. SPECIAL EVENTS & CONTRIBUTIONS FY 07-08 & FY 08-09 FY 07-08 FY 08-09 BUDGETED PROPOSED TITLE /EXPENDED BUDGET Unallocated Grant Budget 125,650 100,000 Mid-Year Allocations: Ague Caliente Museum 2,500 Agua Caliente Silver Sponsorship 5,000 Black History Parade 539 Desert Aids Project 25,000 Nabisco Tournament 26,000 26,000 Palm Springs Pride Parade 12,422 Tahquitz Creek Guest Golf Rounds 480 Tour De Palm Springs 17,863 United Way-Oktobertest 768 Walk of Stars 25,000 Subtotal 115,572 26,000 Bike Weekend 40,000 0 Black History Parade 12,500 12,500 Bob Hope Chrysler Classic 250,000 350,000 Community Concerts 22,000 0 Date Festival 5,000 5,000 Holiday Decorations 25,000 25,000 Int'I Film Festival 350,000 400,000 July 4th Celebration 51,327 50,000 Modernism Week 20,000 0 Mounted Police Contribution 9,600 9,600 Opera In The Park 3,850 3,850 Parade for the Festival of Lights 38,000 40,000 Parades of Palm Springs 40,000 40,000 PSHS Homecoming Parade 4,000 4,000 Printing &Publishing 5,000 5,000 Senior Center Contribution 52,880 52,880 Senior Inspiration Award 2,500 2,500 Trauma Intervention Program 5,125 0 Veteran's Day Parade 28,000 35,000 Total Events&Contrib. before Hope cut 1,090,432 1,135,330 Bob Hope Chrysler-- Budget Cut 0 (360,000) Total Events&Contrib. after Cuts 1,090,432 785,330 6/10/2008 09 SPECIAL EVENTS &CONTRI6UTIONSvs3 3:67 PM 5.A. SUSPENSION OF CERTAIN REGULATORY ORDINANCES TO FACILITATE THE 2008 AMERICAN HEAT PALM SPRINGS MOTORCYCLE WEEKEND: RECOMMENDATION: 1) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUSPENDING CERTAIN REGULATORY ORDINANCES FROM OCTOBER 10 THROUGH OCTOBER 12, 2008, TO FACILITATE THE 2008 AMERICAN HEAT PALM SPRINGS MOTORCYCLE WEEKEND;" and 2) Discuss the event sponsorship request and direct staff as appropriate. MATERIALS TO FOLLOW Item No. 5 . A •