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Home My WebLink AboutOB 1 GRAND PRIX KART 03-21-88 · .-::= OLD BUSINESS ,-.'-.-%.. ~':~ '.~ ~ '~ ~ ~ NO. 1 DATE: MARCH 21, 1988 ~ TO: Fi~DM: ~BJECT: HONORABLE MAYOR AND MEMBERS OF THE CIT~ COUNCIL WILLIAM HUSTON, CITY MANAGER GRAND PRIX KART RACING PROPOSAL RECOFAMENDATION Pleasure of the City Council. BACKGROUND The City Council at their meeting of March 7th reviewed a request from the Championship Kart Racing Association {CKRA) for the City to host a mini Grand Prix Kart Race to be held over the Fourth of July weekend on a City street course of approximately 1/2 mile. While the Council indicated that they were ~-upportive of hosting a karting event,-they also requested that representatives Championship Kart Racing Association meet with City staff to di.scuss their c'oncerns prior to making a commitment to the event including: ° The proposed route and location of closure of City streets. ° · The impact on bringing 7,500 to 13,000 people into the City. °: Police and other City staffing needs for event. ° The timing of the proposed event. o Insurance coverage. The City Manager and City Department heads met with representatives of the C.hampionship Kart Racing Association and the Boy's and Girl's Club of Tustin to discuss the above issues. Timing of the Proposed Event- Staff expressed their concern with timing of the proposed event on the Fourth of July weekend and the current staffing commitments and overtime already anticipated for this weekend. Mr. Kinder from CKRA indicated that the event would generate approximately $70,000 more in revenue on the Fourth of July weekend. In addition, he felt that the holiday weekend would guarantee spectators and community involvement, greater corporate sponsorship and increased media coverage. He indicated that if they could not do the event on the Fourth of July weekend they would take the event to another ci ry. City Council Report March 21, 1988 CKRA Page two Proposed Event Locatton .- Closure of Ctty Streets- CKRA have requested a proposed location for the event which would result in closure of First Street, "C" Street, Second Street and E1 Camino Real (See Attachment prepared by CKRA). While they have attempted to contact a number of businesses in the area to obtain support for the proposed route, staff had the following'concerns: Access - First Street is one of only three major connecting East-West streets into the City of Tustin. This could represent a significant impediment to other holiday traffic coming into and out of the City which will have to be diverted, There is also an existing bus route which uses First Street. In addition, except for an alley, First Street provides the only point of access to residents who live on "C" Street north of First Street. Parking - CKRA have indicated that' they can secure use of vacant lots in' Old Town for parking as .well as allowing spectators to park in surrounding neighborhoods. The use of Boy's Club vans would carry spectators to the central activity areas. Noise Control - Staff have concerns about the possible noise associated with the event particularly to those residential areas in Old Town adjacent: to or in close proximity.to the proposed event location. Noise complaints have been received when the City hosts concerts in Peppertree Park. CKRA indicated that karts would generate 100 dBa's at 100 feet. They feel that this would not represent a noise impact since a majority of the track was along First Street and there were generally businesses along this stretch to buffer residences from the noise. Alternate Location - Staff, given concerns above, suggested that the proponents for the event should seriously consider an alternate event location. It was mentioned that they might wish to explore an event location in the Irvine Industrial Park at the southeast portion of the City. Insurance Coverage - The City has contacted the Orange County Cities Risk Management Authority (OCCRMA) to determine whether excess insurance for such an event would be made available. The City is a member of OCCRMA which administers the self insurance pool for its members and provides risk management and · *underwriter services. We have been told that OCCRMA will not cover this type of event. CKRA indicated that similar events have been insured in other communities like La Verne and Redlands for the amount of $1,000,000 liability overage. OCCRMA has indicated that $1,000,000 coverage would not be sufficient. This is the minimum coverage the City currently requires for use of the Community Center. OCCRMA has recommended that the minimum liability coverage be ten million dollars. The City would also need to obtain a City Council Report March 21, 1988 CKRA Page three complete policy, not just a certificate of insurance, to ensure that the City is not subject to any exclusions that would increase its exposure to liability. Over and above any policy provided by CKRA, OCCRMA has recommended that the City attempt to obtain a spectator insurance policy. In review of the proposed route location, there should be specific requirements"so that there could be no grandstands on curves or corners and that the City would have to provide policing/crowd control at these curves/corners. We would not recommend any final commitments to the proposed event until actual insurance coverage is determined to be satisfactory. It could take 30-60 days for CKRA to obtain insurance. (~tt7 (Costs - St~fftn0 - The initial proposal submitted by CKRA requested that the City commit to cover the expense of fencing and barricades, crowd control, grandstands, trash containers and portable toilets. CKRA subsequently indicated ~t would provide some of these items through the. use of volunteers and Jonations. A budget (copy attached) by CKRA indicates that some of the expenses will be covered by the event revenue. The Public Works and Police Departments have reviewed their staffing and overtime needs for the proposed event. Traffic control, street closure, crowd control, and maintenance {street closing, etc.) would represent the loll owing additional costs to the City. Public Works - The Public Works Department has estimated that their maintenance and street sweeping personnel and equipment costs for the event would be approximately $1,000. Police - Even with maximum volunteer security and use of volunteer time by Police Explorers, the Police Department has indicated that they would incur approximately $14,880 in additional overtime costs for the proposed event. The CKRA budget indicates that the event is for profit. The City Council could request that CKRA cover the City.'s costs incurred in connection with the event. William A. Huston City Manager 'AH:pef Attachment: Map of Proposed Route CKRA Budget (~® _l C£RA/AHERICAN GRAND PRIX OF £ARTING PROFORNA BUDGETS INCOME Race Entry fees - Pro Am (75) Race Crews - Pro Am (190) Race Entry fees - Amateur (275) Race Crews fees - Amateur (965) Corporate Sponsors - Class "A" Corporate Sponsors - Class "B" Corporate Sponsors - Class "C" Corporate Sponsors - Class "D" Commercial Time Sponsors Promotions Grand Stand Seats "A" CKRA - Concession/Refreshments Total Projected Revenue: 1988 1989 1990 ,, ,,, $ 4,875 $ 5,600 4,125 4,750 8,575 10,000 14,475 16,750 32,500 37,375 13,500 15,500 146,875 175,000 5,875 6,750 34,475 40,000 37,500 43,125 30,000 34,500 5,000 5,750 6,750 5,700 12,000 20,100 46,875 19,500 235,000 8,100 80,000 65,000 69,000 6,900 $337,775 $395,100 $574 ,925 DESCRIPTION ~ .orion/Marketing Purse Fund Contributions: Just Say No I Boys & Girls Club i City Donation In.surance (All Parties) Triack'Layout Concession Cost Promotional Items Cost S'ponsor Cost Racing Staff Printing Paramedics/Ambulance Grand Stands Postage/Telephone Legal/Consulting Charities - Other Than Tear Down/Clean Up Trash/Portable Toilets Management/Staf~ CKRA Host Kart Clubs Miscellaneous Host Unforeseen. T 1 Projected Expense: Projected Surplus: EXPENSES 1988 .1989 $ 16,'500 $ 19,000 10,000 15,000 4,000 5,000 15,000 17,250 4,0OO 5,OOO 12,000 15,000 8,375 9,000 1,500 2,0OO 22,500 25,875 lb,OOO 15,000 5,ooo 7,5oo 10,000 12,500 600 1,200 17,500 20,500 5,00o 7,5o0 2,500 4,500 8,500 10,000 1,500 1,750 1,250 1,500 75,000 85,000 16,888 17,500 10,00.0 12,500 1990 $ 22,800 25,000 6,000 .34,500 6,000 20,000 11,500 2,500 39,000 20,000 10,000 15,000 1,500 25,000 10,000 6,500 12,500 2,500 2,000 100,000 20,000 20.0OO $257,613 S310,075 S412.300 $ 80,162 $ 85,025 $162,625 -6-