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HomeMy WebLinkAbout15 - Russo & Steele Collector Automobile Auction Bannerr TO: FROM: PREPARED BY: PHONE: TITLE: 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. 373 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 li 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. Nryoua LIJAr,w— nn,— ,PU—in,an-M.,- pur,furJ, a—hldl i Md. � 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. 4LI 11 you are visi ling, please check where you are slaying: IWI F?;7 Htv.9pt 9MOrt ux moral L—W k -ce P,00ne, Ateu,I Family oc Pnends 382 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) a 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% KI:Iti to 1 �2 9% J �a �9 �6 2% 1111111 ; �8 4% 9 y% All Oka Re cases 2% KI:Iti 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