Report Prepared by: Steven S. Carrigan, City Manager
Title
SUBJECT: Council Direction Concerning Hosting Stage 2 of the 2020 Amgen Tour of California Which May Include Proceeding with a Letter of Intent to Host Stage 2 of the 2020 Amgen Tour of California
REPORT IN BRIEF
Council to discuss whether or not the City of Merced will direct staff to commit funds, staff, and other resources to host Stage 2 of the 2020 Amgen Tour of California through a Letter of Intent.
RECOMMENDATION
Provide staff direction on the 2020 Amgen Tour.
Body
ALTERNATIVES
1. Direct staff to proceed with a Letter of Intent to Host Stage 2 of the 2020 Amgen Tour of California; or,
2. Direct staff not to proceed with a Letter of Intent to Host Stage 2 of the 2020 Amgen Tour of California; or,
3. Direct staff to shadow an Amgen 2020 Host community with the intent of submitting a bid for Amgen Tour of California 2021
4. Refer back to staff for reconsideration of specific items as requested by the Council.
AUTHORITY
Charter of the City of Merced, Section 200
CITY COUNCIL PRIORITIES
On October 7, 2019, the City Council provided staff direction to begin evaluating the Stage 2 of the 2020 Amgen Tour of California event.
DISCUSSION
The developers of the El Capitan Hotel, Hotel Tioga, and Mainzer Theater reached out to the City, asking staff to consider hosting the men’s Stage 2 of the 2020 Amgen Tour of California (ATOC). After speaking with the developers, the City reached out to the organizers, AEG Sports, of the ATOC to learn more of what entails hosting the Stage 2 ATOC event. The City of Merced hosted Stage 4 of the 2009 ATOC as a Start City, with the race finishing in the City of Clovis.
The ATOC organizers are requesting a response from the City of Merced since the time is getting near to announce the Host Cities and respective routes for the 2020 ATOC. Should Council decide to proceed with ATOC, then staff will submit a Letter of Intent to the AEG Sports (Attachment 1.)
Previous Experience
Amgen TOC: Amgen Tour of California is an annual professional cycling event that is the only men’s cycling event in the U.S. on the Union Cycliste Internationale (UCI) WorldTour calendar, and attracts some of the most renowned cyclists and teams in the world. The race generally runs seven days covering more than 700 miles throughout the State. In 2020, ATOC will organize the 15th edition of the race. In 2019, nineteen international cycling teams started the race with seven members on each team.
According to the AEG Sports representatives, hosting an ATOC Stage provides a platform for communities to gain worldwide exposure, create economic benefit, and provide invaluable experiences for local residents.
The lead sponsor AMGEN, is a biotechnology company in the race to dramatically improve patients’ lives, and the vehicle to bring mindfulness to their efforts is the Amgen Tour of California. To raise awareness around two of the world's most serious illnesses, title sponsor Amgen founded Breakaway from Cancer® and Breakaway from Heart Disease™.
Spectators: As a whole, ATOC estimates that approximately 1.5 million international viewers follow the duration of the race, and the event generates over a $100 million economic benefit to the State of California. During the 2009 ATOC staged in Merced, staff estimated that 20,000 spectators lined the streets of Downtown Merced, Bear Creek Drive, and other parts of the County eventually with an end in Clovis.
In 2009, AMGEN hosted a Lifestyle Festival and Dignity Health sponsored the Cancer Awareness Village. Prior to the event, youth of all ages were invited to participate in the Merced Mall Fun Ride. Riders signed autographs for their fans in Rider Signature Alley. As the day of race approached in 2009, colorful banners and decorations draped the Downtown Merced. With the backdrop of the Merced Historic Courthouse Park, Center Stage was located on N Street between W. 19th Street and W. 18th Street.
Host City: The developers of the downtown projects reached out to AEG Sports representatives inquiring if the company would consider the City of Merced as an ATOC host City. Subsequently, City staff spoke with the AEG Sports representatives. The representatives asked the City of Merced to consider hosting Stage 2 of the 2020 ATOC. The event is scheduled on Monday, May 11, 2020. Other stages of the ATOC involve a Host Start City and a Host Finish City. Stage 2 of the race would start and finish in Merced.
The Host City is responsible for executing the Agreement with AEG Sports and assuming all costs related to the respective ATOC Stage which is part of a bid package. Details of the services provided by the ATOC Committee and requirements of the Host City are contained in Attachment 2.
Local Organizing Committee: A Local Organizing Committee (LOC) is formed with specific designated tasks to successfully carryout the Host City Requirements. In 2009 when Merced hosted the ATOC as a Start City, the LOC was made up of the following
Director Units:
|
Chairperson |
Operations Director |
|
Sponsorship Director |
Finance Director |
|
Media and Public Relations Director |
Marketing/Community Outreach Director |
|
Technical Director & Medical EMT Coordinators |
Volunteer Director |
|
VIP/Hospitality Director |
School Outreach Director |
|
Ancillary Events/Lifestyle Festival Director |
|
In some cases, Co-Directors were needed to complete the tasks for each unit. Once all was said and done, the LOC was made up of approximately 15 persons not including all the staff required to plan, carryout, and close the event. The composition of the LOC Directors included staff from the City of Merced, other government organizations, non-profit organizations, and the private sector. Local cycling experts provided ATOC with the race route in 2009, and have volunteered to do the same for 2020.
As a Host City, the LOC is responsible for providing support and assume all related costs as part of the bid requirements such as:
|
Police Services |
Public Works and Road Services |
|
Race Route/Circuits |
Permit Services |
|
EMT/EMS Services |
Resident/Business Notification |
|
Portable Toilets |
Waste Management |
|
Lifestyle Festival |
Hotel Accommodations |
|
Team, Media, Caravan, Start Crew, and Finish Crew Meals |
Parking |
|
Team Massage Linens |
Media Office/Work Room |
|
Press Conference Room |
Parking Requirements |
IMPACT ON CITY RESOURCES
Stage 2 Host City Costs: AEG provided an estimate of what it may cost to host Stage 2 of the ATOC. The estimated cost is $318,435.00. The majority of the costs are generated in providing 1660 hotel rooms, meals for teams, media, start line crews, finish line crews, and caravan crews, and City services. The list below illustrates a sample of items responsible for by the Host City.
|
HOTEL |
|
Sleeping Rooms (1600) |
|
Parking |
|
Security |
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Meeting Space |
|
Site Visit Rooms (60) June 1, 2019 - May 31, 2020 |
|
|
|
CITY/COUNTY SERVICES |
|
Police/DOT (both days included) |
|
Public Works/Road Services |
|
EMT/ EMS Services |
|
Resident Notifications |
|
Portable Toilets |
|
Waste Management/Recycling |
|
Permitting |
|
Heavy Equipment Rental |
|
|
|
MEALS |
|
Team Dinner (2 total dinners, 350 people) |
|
Team Breakfast (2 total breakfasts, 350 people) |
|
Start Line coffee and continental breakfast (30 people) |
|
Media Lunch (75 people) |
|
Media Dinner (75 people) |
|
Caravan Boxed Lunches (590 lunches) |
|
Start Crew Breakfast (30 people) |
|
Finish Crew Breakfast (40 people) |
The City of Merced FY 19-20 Adopted Budget did not provide an allocation for hosting the 2020 ATOC. In 2009, the City relied on sponsorships and donations to pay for the ATOC expenses. The Main Street developers have expressed a willingness to sponsor a portion of the ATOC Host City costs, but have not submitted a formal financial commitment letter to the City.
It should be noted that all Host City costs are ultimately the responsibility of the City of Merced.
Organizational Capacity: Staff that may be involved in organizing the ATOC are working diligently on projects, developments, and other day to day activities. For example, the City is on pace to break issued building permits records. Currently, commercial projects are under construction, breaking ground, or being planned, and street and infrastructure projects are moving ahead meeting critical deadlines. Long-term projects including High Speed Rail and the ACE Train projects are at a turning point, and Downtown Station Planning efforts will need to resume. Other projects underway with long-term implications include the Police Headquarters, Sewer Master Plan, North Merced Annexation Study, and the formation of Downtown special districts.
Should Council decide to proceed with hosting the Amgen TOC, there is a potential that progress on projects, developments, and studies may be effected. We are particularly sensitive to this concern since our task is to “finish what we have started.” Extra attention will have to be given on how staff resources are allocated to work on the ATOC, and which personnel are assigned to serve on the LOC.
LEARN FROM OTHERS
Host Community Shadowing: Ten years have passed since the City last hosted an ATOC Stage. To get a better understanding of what is required of an ATOC Host City under today’s requirements, it may be beneficial for the City to send staff members to shadow a 2020 ATOC Host City. Based on a meeting with the City of Sacramento’s City Manager and Visitor Bureau’s Director, both would welcome Merced staff shadowing their 2020 ATOC planning efforts.
ATTACHMENT
1. Letter of Intent
2. Host City Requirements
3. Proposed Race Routes