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Home My WebLink About2008/07/22 Item 13 CITY COUNCIL AGENDA STATEMENT j~- ~(~ CIIT OF ~ --- (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: JUL Y 22, 2008, Item I'::: RECONSIDERATION FOR CHARGING XR PROMOTIONS, LLC FOR CHAMPIONSHIP OFF-ROAD R.."'-CING FULL COST RECOVERY FOR THE CHAivjPIONSHIP OFF ROAD RACING (CORR) RACE EVENTS RESOLUTION OF THE CITY COlJNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO WAIVE THE FULL COST RECOVERY RATE FOR POLICE SERVICES FOR THE CHAivlPIONSHIP OFF ROAD RACING (CORR) RACE EVENTS, AUTHORIZING AN ALTERNATIVE R.."'-TE OF COST RECOVERY OF OVERTIME PLUS 20%, AJ'ID APPROPRIATING $27,859 TO THE POLICE DEPARTMENT FISCAL YEAR 2008/2009 PERSON'NEL SERVICES BUDGET FOR OVERTIME COSTS (4/5THS VOTE RE<flUIRED) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO WAIVE THE FULL COST RECOVERY R..i\TE FOR FIRE AND EMERGENCY MEDICAL SERVICES FOR THE CHAJYIPIONSHIP OFF ROAD RACING (CORR) RACE EVENTS, AUTHORIZING AN ALTERNATIVE RATE OF COST RECOVERY OF OVERTIME PLUS 20%, AND APPROPRIATING $33,567 TO THE FIRE DEPARTi\tlENT FISCAL YEAR 2008/2009 PERSONNEL SERVICES BUDGET FOR OVERTIME COSTS (4/5THS VOTE REQUIRED) /l ~ INTERIM FIRE~~- POLICE CHIEF ~ CITY tvli\NAGE t 4/5THS VOTE: YES ~ NO D 13-1 it") July 22, 2008, ltem~ Page 2 of3 SUMMARY At the July 8, 2008 City Council meeting, XR Promotions, LLC for Championship Off- Road Racing (CORR) applied for and Council approved a two-year temporary Conditional Use Permit (CUP) for three off-road race events scheduled for 2008 and three similar race events in 2009. Council also approved a Mitigated Negative Declaration. Resolutions B and C proposed by the Police and Fire Departments, recommending approval of an "overtime plus 20-percent" charge for public safety services rather than Full Cost Recovery and appropriating $27,859 and $33,567 respectively, to offset the costs were not approved. Due to his absence from the July 8, 2008 Council meeting, Councilmember Castaneda has requested these resolutions be brought back for discussion. . ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activIty for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines because it involves an intention to levy and collect assessments for existing activities in the Community Facilities Districts and does not involve any new activities, therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That either Council confirm the decision made July 8, 2008 to charge full cost recovery, or consider adoption of the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. , , DISCUSSION Charges for Public Service: Current policy is to charge entitIes that wish to utilize non-City sponsored services, including Police and Fire services, the Full Cost Recovery (FCR) rate delineated in the FCR Schedule. Throughout the years, these fees were either reduced or waived for a variety of events. However, since the current fiscal crisis has put discretionary expenditures on hold, staff has been directed to charge FCR for all events, and to take any exceptions to Council for approval. Since the first CORR race was held in Chula Vista in 2005, the City has waived the FCR rate and agreed to charge the same rate for Police services that are currently contracted with Cricket Wireless Amphitheatre for the eight previous CORR events. This reduced rate is calculated at actual overtime costs plus an additional 20-percent to cover basic overhead costs such as vehicles, supervision, etc. The table below outlines the difference in revenues per day based upon the FCR rate and the reduced "overtime plus 20-percent rate. It Because of the significant exposure that the CORR events bring to Chula Vista (this year's race events will be broadcast live on NBC), and the desire to keep these races located in Chula Vista, staff recommended waiving the FCR rate for this event and authorizing the "overtime plus 20-percent" calculation for Police and Fire Prevention and Emergency Medical Services. Council, however. at the July 8. 2008 meetinQ. with Councilmember Castaneda absent, did not approve the requested waivers. -- 13-2 ../l July 22, 2008, Item~ Page 3 of 3 DECISION M.~R CO~'FLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property that is subject to this action. FISCAL IMPACT Approval of resolutions will amend the General fund budget for fiscal year 2008/2009, appropriating an additional $61,426 in overtime expenditures to the Police and Fire Department budgets ($27,859 and $33,567 respectively). These additional appropriations would be offset by reimbursement from the Applicant, resulting in no net impact to the General fund. Approval of the resolutions will also waive the Council's full cost recovery policy for a total of SIX CORR events, occurring over a period of two fiscal years (three events per year). The Applicant would instead reimburse the City at "overtime plus 20-percent". Waiver of full cost recovery results in a net reduction in overhead reimbursement of $55,336 in the current fiscal year, for a total impact of approximately $110,672 over the two fiscal years. Calculation of the General fund impact of wai ving full cost recovery for the three events in fiscal year 2008/2009 is detailed below. Fiscal Year 2008/2009 Impact Calculatioll Police Department Fire Department TOTAL Full Cost Recovery $ 75,665 $ 53.382 $129,047 OT + 20% $33,43 i $40.280 $73,711 Waiver Impact ($42,234) ($13.102) ($55,336) The Applicant will also reimburse the City, via deposit account, for all costs incurred preparing the reports and resolutions for these discretionary applications. ATTACHMENTS None. 13-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COu'NCIL OF THE CITY OF CHULA 'lIST A AUTHORIZING THE CHY J'vL'\NAGER TO WANE THE FULL COST RECOVERY ~A.. TE FOR POLICE SERVICES FOR THE CHA..MPIONSHIP OFF ROAD RA.CING (CORR) RACE EVENTS, AUTHORIZING Ac'l ALTERNATIVE RATE OF COST RECOVERY OF OVERTIlvrE PLUS 20%, AND APPROPRl.A. TING $27,859 TO THE POLICE DEPAR.Tj\;fENi FISCAL YEAR 2008/2009 PERSON'NEL SERVICES BUDGET FOR OVERTIME COSTS WHEREAS, the Police Department received a request from representatives of Championship Off Road Racing (CORR) to reduce the fee for fire and emergency medical services for the racing cup season that includes tbree racing \veekends per year from 2008 tbrough 2009; and \v1{EREAS, since 2005, the City has historically lowered the fees for public safety related services from the "Full Cost Recovery Rate" to "Overtime plus 20%"; and \v'HEREAS, police services are required for the purpose of ensuring the safety of participants and those in who will be attending these events; and , , WHEREAS, the CORR events bring signifIcant positive publicity to the City of Chula Vista; and WHEREAS, the "Overtime plus 20%" rate will completdy offset rhe direct costs to provide police services for the race event; and WHEREAS, an appropriation of $27,859 will need to be made to the fiscal year 2009 Police Department Personnel Services budget for overtime costs which will be completely offset by the event fees. NOW, THEREFORE, BE IT RESOL YED by the Cief Council of the City of Chub Vista as follows: 1. That it authorizes the City Manager to waive the full cost recovery rate for police services for the Championship Off Road Racing (CORR) season from 2008 through 2009 for three racing weekends per year. 2. That it authorizes an alternative rate of cost recovery of overtime plus 20%. 13-4 Page 2, Item: Meeting Date: 3. That it appropriates $27,859 to the Police Department Fiscal Year 2008/2009 Personnel Services budget for overtime costs. jjE: Rlchard P. Emerson Police Chief Approved as to form by: ~ , /] '--f! J ,L/'..'....!-" ~( / G'-'~~c~ ;f--r--' Bart Miesfeld t./ Interim City Attorney J:\Attomey\ELiSA\RESOS\CORR 2008 police cost reO:;Qvery.doc 13-5 RESOLUTION NO. 2008- RESOLUTION Of THE C1TY COuNCIL Of THE CITY OF CHULA VISTA AiJTHORIZING THE CITY M.A..1~AGER TO WAIVE THE FULL COST RECOVERY R.."'.. TE FOR FIRE MID ENlERGENCY MEDICAL SERVICES FOR THE CHA..:.v{P10NSh'IP OFF ROAD R.."'..CING (CORR) R..A.CE EVENTS, AUTHORIZING AN ALTEfu'\[ATIVE RATE OF COST RECOVERY OF OVERTIivlE PLUS 20%, A1'.m APPROPRIATING $33,567 TO THE FIRE DEPARTME~l FISCAL YEAR 2008/2009 PERSONNEL SERVICES BUDGET FOR OVERTINIE COSTS WHEREAS, the Fire Department received a request from representatives of Championship Off Road Racing (CORR) to reduce the fee for tire and emergency medical services for the racirig cup season that includes three racing weekends per year from 2008 through 2009; and WHEREAS, since 2005, the City has historically lowered the fees for public safety related services from the "full Cost Recovery Rate" to "Overtime pillS 20%"; and WHEREAS, fire and emergency medical services are required for the purpose of ensuring the safety of participants and those in who will be attending these events; and , , WHEREAS, the CORR events bring significant positive publicity to the City of Chula Vista; and WHEREAS, the "Overtime plus 20%" rate will completely offset the direct costs to provide tIre and emergency medical services for the race event; and WHEREAS, art appropriation of $33,567 will need to be made to the fiscal year 2008/2009 Fire Department Personnel Services bi.tdget for overtime costs which will be completely offset by the event fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as follows: 1. That it authorizes the City Manager to waive the full cost recovery rate for fire and emergency medical services for the Championship Off Road Racing (CORR) season from 2008 through 2009 for three racing weekends per year. 2. That it authorizes an alternative rate of cost recovery of overtime plus 20?;~. 13-6 3. That it appropriates $33,567 to the Fire Department Fiscal Year 2008/2009 Personnel Services budget for overtime costs. Presented by: Approved as to form by: ~/~ rames S. Geerfng Interim Fire Chief \--(J~vl2 /f: ~ ~'-- Bart Miesfeld. rf . Interim City Attorney , , J:\Anomey\ELISA\RESOS\CORR 2008 tire cast recovery.doc 13-7