Recommendation to authorize City Manager, or designee to execute any and all documents necessary for an Amended and Restated Agreement with the Grand Prix Association of Long Beach, LLC, a Delaware limited liability company.  (District 2)
So let's go ahead and do item 35, which is the Grand Prix item. Want to be respectful of all these folks that are here. So if we can do item 35. Report from Economic Development Recommendation to execute all documents necessary for an amended and restated agreement with the Grand Prix Association of Long Beach District two. Okay. I'm going to let's turn over to Steph. John Keisler, director of Economic Development. Honorable Mayor and members of the city council. I'm very excited to bring back to you tonight a process that we began last year to evaluate the next generation of Grand Prix operators. This was a process that on August 8th of this year, the City Council authorized staff to enter into an exclusive negotiating period with the Grand Prix Long Beach to establish a five year agreement with one option for renewal to operate the Grand Prix race between the period of 2019 and 2023. And tonight, we're coming back with the terms and conditions of that agreement and a recommendation to approve that agreement with the Grand Prix language. The key terms that the City Council had recommended or directed staff to negotiate with Grand Prix, Long Beach included the term that I just described as well as the time period for construction of the race course. I'm happy to report that Jim McCallion and Grand Prix Long Beach have been excellent partners in addressing these concerns and have proposed to reduce from 60 days to 53 days the time it takes to construct the race course, as well as to reduce the time period in front of some of our businesses and our aquarium to two weeks before the race. We've also as part of this agreement, we had asked for the Grand Prix Long Beach to conduct an economic impact study, which not only did they agree to do as part of the new agreement, but they began that process in advance and have already begun the process of engaging a consultant Beacon Economics, to develop the impact study and believe that it will be completed before our race in 2018. The Association has also agreed to be responsible for reasonable cost of repair, for damage to any city property owned, operated or leased as part of the race course. Additionally, they've agreed to pay permit fee and administration administrative cost reimbursement fee in the amounts of $91,000 757 and $47,524 adjusted annually by our CPI. Additionally, the Association has agreed to reimburse the city for extraordinary expenses, including incremental city services. These are costs for public safety as well as public works and other related costs to to operate the event. And these expenses will be adjusted annually, which is a new term and adjusted by the CPI. And the Association has also agreed to prepare a community access program for outreach to disadvantaged youth, as well as a marketing and promotion package for the city. And finally, one of the key terms as part of the agreement is that if the city is has an opportunity to explore development in the area, that the Grand Prix Association will be willing to terminate the agreement as needed or to restructure the race courses needed to accommodate for those developments. So with that, we're very excited that we've addressed what we think are the deal points that the council authorized staff to negotiate. Our partners at Grand Prix Long Beach have been extremely good partners in considering the request from the Council. And with with that, I'll conclude my report. We do have Jim Mickelson here tonight from Grand Prix Long Beach to also say a few words in preparation for next year's race. And with that, I'll conclude my report and answer any questions. Thank you. Did you want to? But I'm not sure Mr. Castle was part of your report hearing from Mr. McMillian or we're just going to go to the council? Yeah, I think Mr. McCallion would be happy to give his report now as part of the staff. That's part of the staff report. That's my question. Okay. Mr. McMillan. Thank you much. Mayor Garcia, members of the City Council, city staff. John, thank you very much and for the opportunity to come here tonight. You know, for 43 years, there's been a unique partnership between the city of Long Beach and the Grand Prix Association. During that time, Long Beach has grown into a city with a tremendous amount of potential and growth and opportunity, and the Grand Prix has become the largest street race in the world. But not only have we met our commitment with regard to bringing thousands of people here every year, we brought 183,000 plus this last year and also to. Provide the opportunity for the city to be broadcast on national television with 10 hours of first time programing, with the city in the backdrop and the port and the marina and the skyline. But also, this event has continue to be a community event. We are committed to making sure that we are integrated into this community. We are part of the fabric of this community. Let me just give you a few examples that a lot of you are probably familiar with. We've consistently made sure that our pricing for our product is very affordable. Children 12 and under are admitted for free. We've committed with the King Taco to provide a thousand tickets Sunday Reserved seat tickets, which are distributed to the Long Beach Boys and Girls clubs, to underprivileged youth in this area. And it's been in operation for 12 years. 12,000 different individuals had a chance to take advantage of it. And in addition to that, we have had the opportunity to work with many of you in terms of some of the activities in your particular area. We've involved in the and a lot of the parades we were involved up in in Michelle Obama's library opening, and we were involved in the Touch Your Truck activities and the festival, the festival of flight. We want to be an integral part of the community and I think we've carried through on that in a very substantial way . And so that that's an important part of what we tried to do in it. In addition to that, what we have made, it made a significant attempt to do is to be a part and parcel of the activities that go on in this in this area. But with your agreement tonight, as we go forward, what we're looking forward to is even doing better in terms of what we are going to be presenting to the public and to the city in the future years of this agreement. First of all, next year, we're going to be introducing a new race to our weekend activities. It's called the historic Trans-Am. Race should be very exciting. It'll feature the cars that such legends as Dan Gurney and Parnell Lee drove in the past. And we're looking forward to having that on display here. But we're also taking a look down the road at providing some more environmentally sensitive racing activities. As you probably know, with the expansion that's taking place with regard to electric cars, we're looking to see if in the future there might be an electric car race that we could put on here. We'll also we're also looking at autonomous vehicles and how that might factor into some of the activities we're going to be looking to put on here. In addition to that, we are working with the Long Beach Unified School District with Pete Davis over there to bring high school classes here on the Friday of race week to bring them here and to inaugurate them into the activities that take place going into the paddock area and into the when having teams and drivers and and mechanics come and make presentations, then we think we can start a real tradition of bringing high school students in the Long Beach School District here every year to take advantage of the opportunity to have an educational experience, which I think will be very advantageous. And then as as John mentioned, we're committed to the the provisions that we talked about in the agreement, reducing the amount of time that we will be setting up the course and some of the impact it has in the downtown stakeholder areas , and also making sure that we will be removing the tire marks from the track in certain terms so that the city is sort of returned back to the condition it was in when we started. These are all things that we want to do in order to create an environment in which this race and this city excels. So in closing, let me say, first of all, thank you, thank you to all of you and your predecessors for your support over these last 43 years. You know, it has really been a great partnership, and we look forward to continuing that into the future. And we're making a commitment that what we're going to do is make sure that we provide a first class, family friendly event that all of you can be proud of and that we will be able to make that commitment and stay with it. And we very much appreciate your support in helping to make that happen. I would also like to take just a moment, if I could, to thank a couple of people that work on John Stafford, Johnny Vallejo, who was an important part of this negotiation, as well as a gentleman that works for Mr. Park and Rich Anthony, who both of those represented the city very well. And I think we had a very positive dialog and we look forward to being a part of your community in this community for the next six years and hopefully well beyond that. So thank you very much for your support and we look forward to having a great year next year and in the succeeding years. Thank you. Thank you. Councilman Pierce. Thank you. I definitely want to take some time to think staff and thank Mr. McCallion for their efforts on this. When I first came into office, it was probably the biggest topic of discussion outside of parking. And I recall going through the RFP process and the conversations that were had with our restaurants in the aquarium. And I know that this agreement today, this five year agreement, is very different from the five year agreement that you previously had. And so I just want to applaud everybody for their efforts and really trying to make sure that this remains something that the entire city of Long Beach can be proud of. I want to highlight the fact that your commitment to the community is not only going out to those schools, but we've had some conversations around engineering programs and tying it to the race cars, and I think that's really exciting. Also, your commitment to good quality jobs and the fact that you're working with Liuna. If you look through this agreement, everything from including, you know, the increase in CPI after two years, I think is really demonstrates your willingness to to make some changes to be a great fit for our community. And I would be amiss if I didn't mention that I met my dad for the first time this last year. And one of the very first things we talked about was the Grand Prix and he is watching tonight. So I have to say hi Dad. And he's already bought his plane tickets to come this April to the next Grand Prix. So we're really excited. Again, thank you for being good partners and I look forward to seeing how this impacts our downtown in a positive way. And thank you for being flexible as we as a city try to re-envision what our downtown is yet again, but doing that with some flexibility and with you guys at the heart of that. I really appreciate it. Thank you. Yes. Jim, I want to say thank you as well. You know, we work together and I absolutely love what you're doing, as Councilmember Pearce said, for the community. You're really constantly evolving, taking our feedback, taking everyone's feedback. And that's very appreciative on my end. And thank you to your Grand Prix Association volunteers who have been volunteers for so many years and so want to thank you all for being a great part of that. The gym that we we love to attend every single year. So thank you all and great work to economic development on this. And I'll chime in here. Jim. Fantastic work via the Grand Prix is a staple in our city, right? I remember the first time I've gone and I was just blown away. That had never been before. And I've gone every year since. And it's it's great to see that you guys stepped up John and economic development team. It's great to see that that you stepped up as well. There were a lot there. There was a tall order where you guys were able to do. And I know the amount of concessions that were made and I know that the economics associated with that. But this is an important economic driver. And we all have to make sure that we we make the decisions best for our residents. And I think that this agreement does that. It takes us in that direction. So, you know, in short, let the good times roll. Councilman Ringo. Thank you, Mayor. I want to add my my. Kudos to the Grand Prix Association, to his marketing for his leadership in that. But I want to bring up one point is that it but so understanding that it's a new agreement two or three almost two years ago I think it came before the California Coast Commission and we for the first time. Approved a multiyear permit. For you. To conduct the Grand. Prix in Long Beach, whereas prior to that it was an every year application. So I just want to make sure maybe staff can and researcher look into it, in fact that hopefully this new agreement which will start what, in 2019. Correct. 2020 that that the. Conditions for having to race under the present. Coast coastal. Development permit. Don't change. And that you might not have to reapply to reinforce the. The current permit but in fact will make you eligible for. Keeping that permit so that when you come back for a new course, we do have a permit. We could also do the same in terms of a multiyear permit for. Two that will take you through this. This new application. So just. A. Recommendation that the staff and perhaps yourself follow up with California Coastal Commission to. Ensure that everything is in order and. That you could still run the race going through the next cycle. Thank you and thank you for everything you do for Long Beach. Carrie Fisher I'd like to just take the opportunity to congratulate Jim. You and the Grand Prix Association, the number one street race in America, will continue to be on the streets of Long Beach, and we're very proud of that. I know the RFP process was an easy process for you, but it was one that I think was necessary and one that I think helps the race evolve and and cater to the city of Long Beach even even more than it does. I think it's a it's a real benefit for our city. But but and it's very difficult to quote, to quantify the benefits of those the that that the Grand Prix Association brings and the race brings to the city of Long Beach. But again, I just wanted to weigh in, say thank you very much for for your great years of partnership and look forward to many more ahead. Thank you. Thank you, Councilwoman Mongo. Thank you to the entire team. Thank you for your continued outreach in the community. The kids love the race cars. They talk about it all the time. I was with some Boy Scouts this weekend at the Belmont Shore Parade and they even commented, remember, when that race car was at our school? And so I know that it means a lot to everyone. And I hope that 20, ten years from now, probably, gosh, ten years from now, they'll be the ones buying the tickets and sitting in the stands. So. Thank you, Counselor Supernova. It's a woman, Price. You know, again, I echo the comments of my colleagues. I think it's a great partnership and I want to thank city staff for the work that they put into this. I'm most excited about a few things with the current agreement. One, the shortening of the preparation and setup time, I think that's going to be huge for the businesses in the area to the fact that we have a five year option that allows us to meaningfully consider other options for the city in terms of future possible development and best and highest uses of the property. And I, I appreciate the partnership that you have had and understanding that that's a concern and that that you've heard us on that point and of course, the reimbursement of the extraordinary expenses and the incremental city services that are required for the operation. It is a hugely successful event, a great partnership. It does, you know, tax our resources quite a bit. And so we are grateful that as our partner, you understand those concerns and that you are genuinely doing what it is you always say you do, which is looking out for the best interests of the city, not just this race. And I think that's something we really appreciate. Looking forward, I hope to follow the economic impact studies that we receive to see how racing trends are changing and how our opportunities as a city might change to accommodate that. So thank you very much for being flexible and understanding as we exercise our prudence with our resources. Thank you. Councilman Hooper, now. Thank you. And Jim, you mentioned your community involvement. I think you mentioned touch a truck in the third district and the festival of flight in the fifth. We missed you last Friday at Jojo's annual Lighting of the Antlers. So maybe next year. But seriously, Mike did arrange for a race car to go around town, and that was one of our stops. So that was a great event. So thank you. Well, thank you. Obviously, I think this is just a great opportunity once again for the city to have this amazing event that we all love and enjoy so much. It's great for economic development. It's great to bring visitors into the city. So I would say just, Jim, to you and the team, to all of the incredible supporters of the Grand Prix, we appreciate all the hard work. Couple of clarification points. I think it's good for just for the public, just. Mr. Keiser if you can just confirm for for us, the first is that this is a little bit to Councilman Price's point. But if because there is a lot of conversation right now around development in the downtown, obviously we have the Olympics that are coming up and a bunch of other things that we are developing over the next few years. This this does give the city the ability and flexibility to move forward if we so choose on any sort of development projects that may occur, that could impact the race. Is that correct. Mr. Mayor? That is correct. I want to make sure, obviously, we would never move forward and or on anything that wasn't a partnership so that we can ensure that that the race could be successful. But I think it's important to think for the city to have all of its options available to us. If there is some sort of a master development project that comes down the pipeline or some sort of other opportunity that could impact the race. So. So you're you're you're you're stating to me that the that if that happens in this contract, we have that flexibility. That is correct. Grand Prix Long Beach is is is willing to work with us as a partner so that if the city needs to adjust or terminate the agreement, that is an option for us. Yes. Okay. And it gives it gives the city the ability to to to make those decisions. That is correct. Mr. City Attorney, can you confirm that for me? That is correct, yes. Okay. Yeah, I won't actually have Councilman Price, you follow up and I'm going to go back to me. Okay. So I just have a follow up on that because John used a term that has some legal significance to me. The people are the the city can exit the contract if we need to or if we want to at our discretion. Yeah, I can actually I can ask the city attorney if you'd like to clarify the that that term or if you don't. Yeah. So, so correct. There there is language in the new agreement that that refers to the ability to terminate the agreement if the city so chooses. Okay. So it's not need with an N, it's it's it's our discretion. If I could. I don't have the contract in front of me right now. We could certainly provide a memo to the mayor and council on the termination clause, and we will give you an explanation on our partnership and how that could be exercised. That would be fantastic. Thank you. I apologize. But I'm taking what you're saying is the city does have that flexibility to do so. So. Okay, great. Also, I do want to just commend city staff for working and and really for the Grand Prix to. For stepping up to ensure that we had as minimum of an impact to the business businesses prior to the race. I know that the amount of time that the set up and take down is happening is shrinking, which I think is really important. I know that in some cases it's shrinking pretty dramatically in some areas that are that are impacted from a business point of view. Is that correct, Mr. Kessler? Yeah, that is correct. In the new in this new negotiated agreement, Grand Prix Long Beach has has given special attention to those areas in front of the businesses, the aquarium. So to limit the impact. The K rail, the grandstands won't be installed in those specific areas earlier than two weeks. So that is a significant improvement. And we're very grateful for for that partnership. Thank you. And then also, if you can, please, on review and mentioned one of the issues I know that was important to public work staff and other folks was ensuring that the condition of the streets were left in every year in good order. And I know that in the past we have had some issues with tire tracks and markings and some other issues they know have concern some of the public works folks. And so can you please explain how this is changing, moving forward? Mr. Mayor. Yes. The the annual removal of tire marks resulting from the race in key turns and along the race circuit are actually called out in this agreement. And so there's there's much more specificity which allows for us to work with Grand Prix Long Beach to make sure that all those issues are codified and denoted up front . And then ultimately we'll work together to make sure that those are removed and the cost for the removal that cost these what we call extraordinary costs that come up will be covered by Grand Prix Long Beach. And this was different. This was not in the former contract, correct? Correct. Correct. There's much more specificity in this agreement and in terms of making sure that the council's direction of total cost recovery so that this doesn't come as a cost to the city is specifically called out. Thank you. Appreciate that. And, you know, this is, again, just a gem and the team just thank you for working with us and really come up with a new contract that I think is good for everyone. So really appreciate your hard work as a public comment on this item. Very good. I moved in here in May of 1978, Grand Prix Day in 1977. I fully support it. Some reflections and comments on the issue, the program itself. One of the things we will not have to deal with, if all things go well, you'll not will not have to worry about the Coastal Commission. If Governor Brown initiates and follows up on the effort, the good Governor Deukmejian realized needed to be done, i.e. dismantling that roving band of of corruption. We will not have to have that so forth. And hopefully the governor is going to move forward with on that starting in about 90 days. One of the things I've always suggested thought about and as a. Others are going to have to evaluate it also as long as we have the course. Is there any way that we can set up a nice little course for those people who are in wheelchairs and or the motorized ones? And I realize that's pretty you know, motorized wheelchairs are a necessity for people that are having them and so forth. So we don't want to obviously any crashes, but set up some type of thing where there are people that are in those might be able to use that course is longer to set up and I think that's about it. It's a great event and as they say, we won't. Fortunately, I don't think we're going to have to deal with the Coastal Commission very much longer. So you won't have to worry about that. Thank you. Thank you. Next speaker, please. Banana to Jesus. My name is Robert Pete. Okay, I wasn't going to say anything on this issue, but then it really struck me how my man said he wanted to be more involved with the city and everything. I'm addressing you, but I got to address him because he said it. So I want you to and you need to see what's going on in this town. You mentioned Michelle Obama, which we've had a drag queen in that library recently teaching itty bitty kids. And this is part of this because he said he wants to be involved and to. Make sure you address the body. Okay. I'm going to thank you. The body represents the people. He's here. I wish I could see him because. Okay, I look over here, but I'm talking to you, okay? So and as I go out there and talk to people, you know, it's kind of funny. That's not a Republican or Democrat issue no more when when we surprised and we weren't told a drag queen was in. I know you say this has got. To be with the Grand Prix. This is the Grand Prix because continue. Hey, I'm a no I'm rebelling what he said. Okay, so that is part of this. So don't burn my time. He wants to be more involved and I want to be more involved and he has money and power. I want him to be able to stop people like you, Mayor, because you allowed that right under our noses. So so the thing is, is appreciate if you get involved and deal with people like in almost a Fidel Castro over here. So, you know, so we don't want drag queens in Michelle Obama like we don't even know if that's a woman. Maybe that's why they sent a drag queen to that library, you know, so. Got to talk about the Grand Prix. So we need more Grand Prix. And less drag. Queens, more good, good events. It's a real good event. You move the skid marks in the streets of the boys, can see what they want to do, do donuts and stuff like the Dodge Brothers, not put a dress on and be like La Cosa fo, you know. So we want. More drag racing, less drag queen. More drag. Race, less drag queen. Now, what the hell is up with them horns, man? So anyway, so all the answers, you want to be more involved, you're capitalist because that's money involved. Let's help. Help me get rid of this Karl Marx over there. Can you please can you please address address the building, your address through. You get it and you need. To be around. He can see me talking to him, but he can't. So I want him to see me talking to him. So help me get rid of this Karl Marx. Over the help. We got to get rid of her so we can make you more money. Everybody more money. Take care of the kids. Get him into the racing. Get him into drag races. Get away from drag queens. We like you, drag race. We're not drag racing, but we can't stand drag. And that's Democrats and Republicans about to come in here. I mean, the churches are pissed off. I know he's pissed off. He probably likes it. But anyway. So anyway, that's all I got to say. Thank you very much, Mr.. You appreciate it. There is no other public comment, so members is going to cast your vote. Councilman Andrews? Yes, ma'am. Motion carries. Congratulations. Thank you, guys. Thank you all for coming out to appreciate it. I'm looking forward to a great race this next year. So. Good luck. Okay. We're going back to the regular agenda. We're going we're going to be doing public comment first. And then we have the item on tech infrastructure.