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2019 Amgen Tour of California - Submit Letter of Intent As Host City

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2019 Amgen Tour of California - Submit Letter of Intent As Host City CITY OFVENTURA f\DMIN1STRATIV£ REPORT Date: September 24, 2018 Agenda Item No.: 12B. Council Action Date: October 29, 2018 To: Honorable Mayor and City Council From: Don Penman, Interim City Manager Jeffrey Lambert, Community Development Director Nancy O'Connor, Parks, Recreation and Community Partnerships Director Subject: 2019 Amgen Tour of California - Submit Letter of Intent as Host City RECOMMENDATION It is recommended that City Council: a. Authorize the City Manager to submit a letter of intent to Amgen Tour of California indicating the City of Ventura's commitment to be a host for the men's stage finish and women's overall start and finish for the annual Amgen Tour of California cycling race on May 16, 2019, and; b. Authorize the Director of Finance and Technology to adjust existing citywide General Fund appropriations as necessary to ensure costs can be absorbed in the Non­ Departmental General Fund budget; not to exceed $177,492. PREVIOUS COUNCIL ACTION September 25, 2017 - City Council authorized the City Manager to submit a letter of intent to Amgen Tour of California indicating the City of Ventura's intention to be a host start city for stage two of the annual Amgen Tour of California cycling race on May 14, 2018, and authorized Finance and Technology, as necessary, to transfer General Fund Contingency funds not-to-exceed $75,000 to the impacted departments(s). April 23, 2018 - City Council approved the proposed Amgen Tour of California Cycling Race Contract and authorized the Interim City Manager to execute the Agreement on behalf of the City, for the 2018 race. 1 0123456789 Administrative Report October 29 2018 Page 2 SUMMARY The Amgen Tour of California (Amgen TOC), America's largest road cycling race, will bring the drama and excitement of professional cycling to California for the 14th consecutive year in 2019. This year's tour de France-style seven-stage men's and women's event created and presented by AEG Worldwide (AEG), will challenge the world's top professional cycling teams to compete along a demanding course from May 12-19, 2019. Known as America's most successful and prestigious cycling race, this event is the largest annual spectator sporting event in California and the largest cycling event in North America. The Amgen TOC features a world-class field of riders representing dozens of countries and attracting more than 16 million spectators annually. Last year, the City of Ventura successfully hosted the Stage 2 Amgen Tour of California on May 14, 2018. Several thousand Venturan's lined the streets of Ventura to cheer on the racers as they made their way through downtown. The event created positive publicity and an economic boost for the city; the race was seen live daily for 2-hours on NBCSN and NBC sports on the final Saturday and the race was broadcast to over 200 countries and territories worldwide in partnership with Amaury Sport Organization (ASO), and many spectators and participants rented hotel rooms, purchased meal? and went shopping in Ventura's local downtown shops. In addition, last year the City successfully raised $25,000 in sponsorship money to offset the approximate $27,000 ( excludes fire department, event coordinator expenses and staff time) cost of hosting the event and over 175 volunteers eagerly participated in the event. The actual cost of the 2018 event was significantly less than the $75,000 (excludes staff time) anticipated expense of hosting the event. DISCUSSION City staff met with Amgen Tour of California organizers, the Ventura Visitors and Convention Bureau (VVCB), and the Downtown Ventura Partners (DVP) to discuss a potential collaboration where, for the first time in Amgen TOC history, the City of Ventura (City) would be a host city for a Men's Stage Finish and a Women's Overall Start. It is anticipated the race start and finish activities would take place at the Ventura County Fairgrounds. The Fairgrounds has provided preliminary approval to use their facilities as required, subject to detailed negotiations and budget discussions. This type of event is a much larger production than last year's and would include more expansive police services for additional and longer road closures, increased hotel accommodations and food requirements. Other additional expenses that were not part of last year's event include auxiliary rooms for the media, medical office, race headquarters and other rooms; internet services to support media; and other miscellaneous expenses such as massage linens. See Attachment A for a list of Host City Requirements. The City of Ventura's participation as an Amgen TOC host city is consistent with City Council's priority of boosting economic development. In addition, this event aligns with the goals and objectives of the City's Economic Development Strategy in increasing Ventura's footprint in the sports tourism market. Serving as a men's host stage finish and a women's overall start provides a unique opportunity for the City to be showcased to an international 2 0123456789 Administrative Report October 29 2018 Page3 audience; the City will receive exposure as a world-class destination on both the national and international stage. The tour provides the City the opportunity to boost the local economy by attracting thousands of cyclists and spectators to our downtown corridor and the many tourist-serving businesses throughout the city. It also provides memorable experiences for local residents, supporters, and dignitaries, increasing community partnerships and collaboration. In 2018, the 700-mile route was lined by millions of fans, while a global television audience of 15.92 million fans followed the race on international networks such as NBC (US), Eurosport (Europe), Eurosport Asia Pac (Asia and Pacific), Sportsnet One (Canada), TDN (Central America), Supersport (Subsaharan Africa), and SBS (Australia). On mobile devices, fans watched 112,132 hours of coverage on the Microsoft tour tracker. The creator, owner, and producer of the Amgen TOC is Los Angeles-based AEG, one of the leading sports and entertainment presenters in the world. With AEG' s continued partnership with NBC Sports and the Amaury Sport Organization (ASO), the race was seen live on NBCSN in the U.S. and in more than 200 countries and territories worldwide. In addition to this potential exposure, the City of Ventura will receive a 30-second commercial on national television and a 30-second city feature broadcast on the day of the City's involvement. A full list of host city benefits and opportunities can be found in Attachment B - 2018 Host City Benefits and Opportunities Stage Start. See Attachment C for a list of 2018 Key Metrics. An estimate of the out-of-pocket budget and staff impact to the City of Ventura can be seen in Attachment D - Amgen TOC Ventura Men's Stage Finish and Women's Overall Start Estimated Budget. This budget does not reflect potential sponsorships. For the 2018 race, the City received in excess of $25,000 in local sponsorships. It is anticipated that the sponsorships for the 2019 race will exceed the 2018 total. As referenced in Attachment D, estimates of potential staff time include up to 250 hours of planning ( over a 9-month period and across multiple departments) and 180 hours of staff time on the race day (60 employees serving as race assistants for 3 hours each; assuming 100 volunteers). The financial impact of these planning staff hours and day of race assistance is $24,892 (assuming average staff pay of $57.89/hour). Additional staff time includes Police support and Fire support to provide safe road closures, traffic control, crowd control, enforce no parking zones, and to provide emergency response services; totaling ·$11,000. The total financial impact of all city staff time is $35,892. Staff was able to utilize the City's experience as a pass-through city for the Amgen TOC in 2016 and as a Men's Stage Start Host City in 2018 to come up with a realistic assessment of expenses, required staff time, and potential benefits. One of the challenges in 2016 was closing Ventura Avenue. City staff worked closely with AEG staff to create a route (see Attachment E - Map of 2019 Amgen TOC Tentative Race Route) that not only highlights our coastline and downtown business corridor, but also requires the least amount of road closures, thereby greatly lessening the impact on road closures and required staffing to assist with the race. While staff recognizes that the host city commitment (see Attachment A - Host City Requirements) is a substantial one, it is seven months away, and the City has already 3 0123456789 Administrative Report October 29 2018 Page4 received commitments of support by the VVCB, the DVP, and the Ventura Chamber of Commerce. City Staff has also met with the Fairgrounds who will host the event location and provide the auxiliary rooms. The Fairgrounds has reserved space to host the event subject to detailed discussions. In addition to these partners, the local cycling community has expressed an interest in supporting the event with volunteers, which could lessen race day City staff impact. The City's experience as a pass-through city in 2016 and as a Men's Stage Start in 2018 was overwhelmingly positive, embraced by the community at large, and put Ventura on the map to an international audience. Less than three percent of the 482 cities in our state are selected as stage start/stage finish hosts. Ventura has a unique opportunity to showcase our city and increase our economic development potential. As the City continues to derive exposure from the 2018 event, the timing is ideal to take it to the next level by hosting a Men's Stage Finish and a Women's Overall Start, benefitting from the dedicated publicity given to host cities, and marketing our city as the incredible destination that it is to a global audience of more than 200 countries where the race is broadcast.
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