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SR-800-001 > -- . . .. . . . - -~ - - -"'--. f --"~"----"-'-7__ -.--,..,~~=""--"'-~~~ - -- tf?it?-~t7/ -8 - -"- -.-: .~~~ ~~~- Pier Restoration COrporation AnnUal Report 1989 .. 1990 . ~fi4ua.- Pier Restoration Corporation . Dear Mayor Zane and City Council Members: . The pier Restoration Corporation and the Pier continued in the development phase in FY 1989/90. The long and arduous negotiation process with developers began this year and leases were executed. Two new annual events were added Pier's burgeoning repertoire drawing many new visitors. construction of the Municipal pier completed, the Santa Pier is finally whole once again. six new to the With Monica . . Construction work will begin in October 1990 on the Municipal Pier Cafe and facilities, renovation of the Billiards Building and reconstruction of the Playland Arcade. All of these projects have estimated completion dates of Spring 1990. . The corporation has also made great strides in providing quality entertainment and events for Pier visitors. In FY 89/90, the pier hosted a very successful Cinco de Mayo celebration as well as the first annual Great Southern California Duck Race. We hope to expand our event schedule in FY 90/91 with the addition of several large scale events. . The Corporation's agenda in the coming year is focussed primarily on completing the lease negotiation process for Sinbad's, the Fun Zone and the Central Plaza and the continued implementation of the development program. We will also continue to manage existing leases, promote the Pier and advise the City on maintenance, security and capital construction projects. We look forward to another year of working closely with the City to achieve a fully revitalized Pier. . . Sin~ere~y ~~urs,/ If' ,- '- ... " ! . (- '^, / / /' {_/~ /_ L ,~. "" ----...... i~ 'f ./ / ~" , - ,x:::~ ..... _ (,;-''-<.. ,,'- C-,/ Ruth Y. Goldway Chair r ~ f! daLuJ ,~ohn E. Gi~~~--~ ~ ~Executive Director . . 201 Santa MoniCa Pler. Santa Momca. Califorma 90401 · (213) 458~8900 . ANNUAL REPORT FY 1989 - 90 . XNTRODUCTXON . The Santa Monica pier Restoration Corporation, a non-profit public benefit corporation created by the Santa Monica City Council in 1983, made tremendous strides in the redevelopment and leasing of the Santa Monica Pier in fiscal year 1989-90. Highlights of the Corporation's activities over the past year include the negotiation and execution of leases with Pacific Fare, Inc., Crown and Anchor, seaview Seafood, Jack's, Playland Arcade, Westside Arts Center: completion of the plan approval process for the Billiards Building, the Municipal Pier Cafe and Playland Arcade; continued negotiations with the Fun zone, Sinbadts and Central Plaza developers: repair and repainting of the Carousel horses; demolition of Jack's and reconstruction of a temporary building: production of a successful special events program consisting of Senior Day on the Pier, the spring kite festival, the rededication of the Municipal Pier, Earth Day, Cinco de Mayo, the Great Southern California Duck Race, Kids Day, Fourth of July and the ever-popular Twilight Dance Series. The Corporation also assisted the City in the development of parking alternatives for the Pier, the planning and presentation of the Municipal Pier opening and the coordination of numerous capital projects. . . . PIER DEVELOPMENT AND LEASING . Throughout FY 89/90, Corporation staff worked diligently on drafting and negotiating new leases for the Pier and responsibly managing existing leases. The PRC Board of Directors approved the following leases this year: . . Pacific Fare, Inc. Crown and Anchor, Inc. Westside Arts Center, Inc. Lee & Choi dba Jack's Yong & Haeju Kim dba Seaview Seafood George Gordon Enterprises, Inc. dba Playland Arcade with these leases approved, staff began the plan approval process with city and State Boards and Commissions. In the case of Pacific Fare, Inc., the City is building the structure and is proceeding with gaining approvals from the various local and . . - 1 - . . state agencies. Construction is expected to begin in November 1990 with an estimated opening date of May 1991. The restaurant will seat 320 including inside and outside patios. The design for the Crown & Anchor and Seaview Seafood, both tenants in the Billiards Building, was approved by the Board. The entire exterior of the building will be renovated as will both of the tenants' interior spaces. The minimum initial investment for the Crown & Anchor is $600,000. Seaview Seafood will be investing $300,000 in initial improvements which include a major reconfiguration of the fish market and dining areas. In October 1989, the Corporation issued a Request for proposals seeking a qualified local public benefit user to lease the Carousel Park Commercial Facility on an interim basis. The Wests ide Arts Center was then selected based upon their ability to provide the services and their financial capability to undertake a $40,000 renovation. Renovations were completed and in July 1990 classes for children began. In February 1990, the City issued a 30-day notice of lease termination to Jae Lee, the owner of Jack's, after inspections revealed that the substructure of the building was unsafe. Staff worked with Mr. Lee to design and get approvals for a temporary location for his business at the west end of the Pleasure Pier. The temporary building, owned by the tenant, is situated in close proximity to the west end restrooms to facilitate retaining the beer and wine license. The temporary building will remain in operation until the Central Plaza is completed. Plans for the renovation of the P1ayland Arcade were approved in FY 89/90. The existing arcade building will be demolished in October 1990 because it has exceeded its useful life and does not conform to current building and fire codes. The new building will occupy the same footprint, dimensions and location as that of the existing building. It will include new arcade games as well as gift shop space. The new building is estimated to open in May 1991. During the construction period, the tenant, George Gordon Enterprises, will operate his business from a temporary structure located west of Jack's. A new long-term lease for the Arcade was approved by the Board in April 1990 and executed on July 1, 1990. . . . . . . . Corporation staff continued negotiations with pier Fun Zone, Inc. on the development of an amusement area on the Pier. While there had been delays during the preceeding year, the developers maintain that they are ready and anxious to proceed with the program. Pier Fun Zone, Inc.'s architects have prepared concept drawings and site plans of the area and negotiations with ride manufacturers are continuing. Proposed rides include an . . - 2 - . . eleven-story Ferris wheel, a 65 foot high roller coaster, a wave swinger, childrens rides and games. Staff will continue working with the developer on design, agency approvals and negotiation of the lease during the next fiscal year. The estimated opening of the Fun Zone is summer 1992. . staff continued to work with KBL & Associates to accomplish a feasible project for the Central Plaza. This included detailed construction estimates of project costs and costs to the city related to the project, evaluation of potential sub-tenants and the impact both these factors have on the project design. The Central Plaza is being analyzed in conjunction with the Pier parking system in determining the business terms for the master lease agreement. Lease negotiations will continue into FY 90/91. Negotiations on sinbad's continued with Long Walk, Ltd. During the year, there was considerable discussion regarding eXClusivity, changes in use and the size of the entertainment space. The current proposal includes a staged development of a three story westward addition to the building with an initial more modest outdoor patio use of the same area. Sinbad's will provide full restaurant facilities and a showroom for live musical entertainment. Changes in use for Sinbad's during the term of the lease will be considered, however, they will require landlord approval. Staff began preliminary lease negotiations with Long Walk, Ltd. during FY 89/90 and will continue these negotiations as well as finalization of design in FY 90/91. The estimated opening of Sinbad's is summer 1992. . . . . Once again this summer, the Corporation entered into a License Agreement for the operation of the Fun Zone amusement area adjacent to the carousel. This year an agreement was entered into with Trafton and Associates. Thaxter Trafton was associated with Ray Cammack Shows and purchased the ride package from Cammack. The rides and terms of the agreement were essentially the same as in previous summers. The operation included seven children's rides, a Cyclone and a Ferris wheel. . . The Fun Zone opened on April 6, 1990 and will remain open until September 3, 1990. Last summer, the Fun Zone generated $535,320 in sales and paid the City $89,630 in rent during the 5.5 month period. This year, Trafton collected $577,035 in sales and paid the City $104,308 in rent for the same period. At this point, the estimated opening of the permanent Fun Zone is Spring 1992 so it seems likely that Trafton and Associates will be invited to return to the Pier to operate the Fun Zone for the summer of 1991. . . - 3 - . . In July 1989, The Board of Directors terminated the license agreement with Barbara McCoy for management of the Carousel as a result of her move to Colorado. Debra Mandelkorn, Barabra's assistant, continued operating the Carousel during an interim period. After issuing a Request for Proposals in October and receiving six responses, staff recommended and the Board approved continuing the operation of the Carousel under a license agreement with Debra Mandelkorn. During this fiscal year, the Carousel generated $105,371 in ride revenue and $66,487 in private rental. Private rental was down 14% from last year. This reduction can be attributed to an overall slump in private rentals throughout the Los Angeles area. In March 1990, Corporation staff recommended and the City council approved revision to the fee schedule for rental of the Carousel and Pier. Since the creation of the original fee schedule for filming and private rental in 1984, the types and number of private rental of pier faci1itiies had increased as had the administrative costs of staff time required to facilitate such rentals. The approved fee categories were further differentiated to include private rental of the entire Carousel, private rental of only a portion of the Carousel, business parties and commercial and promotional events. The increased fees reflect the varying amounts of staff time required to plan, set up and clean up. In April 1989, the Corporation was approached by the Aresia Ensemble, a Santa Monica-based theatre group regarding the temporary use of vacant space on the Pier. Aresis requested free use of the unimproved space. The Corporation reviewed the request and approved a month-to-month license agreement for the group's use of the vacant portion of the Billiards Building for $10 per month. since plans for the Billiards Building were still being developed, the Board approved the theatre use temporarily until a commercial tenant could be acquired. The theatre has had a variety of successful performances over the past year garnering good reviews in the press. They have expanded their repertoire to include childrens theatre as well. The Arasis Ensemble will continue to use the space until construction begins on the entire Billiard Building. . . . . . . . Lease management has resulted in a more professional management approach to existing leases through computerization of sales data and frequent individual exchange sessions. On-going lease management activities included insuring that all lease conditions were met such as prompt rental payments, renewal of expired insurance policies, tracking of tenant sales, and adjustments to base rents and security deposits per increases in the CPl. . . - 4 - . . Overall pier revenues to the city were up by 2% this year from FY 88/89. The most significant changes were an 8% decrease in tenant rent to the City, a 36% decrease in vendor rent and a 18% increase in parking revenues. PIER PROMOTION AND EVENTS . . The Corporation continued the implementation of its promotional plan this year as part of its efforts to attract a larger and broader cross-section of people to the Santa Monica Pier. The Corporation has placed particular emphasis on the creation of an annual special events program as a way to promote the Pier and establish it as a center for quality entertainment. There is no question that the santa Monica Pier Twilight Dance Series has become a legitimate entertainment experience in Los Angeles. In its sixth year, the concerts drew, on average, 20,000 per performance. Due to the Corporation's success at attracting corporate sponsors, the calibre of talent booked for the series was greatly increased. Staff estimated that approximately 25,000 people attended the Bo Diddley concert. Corporate contributors in 1990 included: the Santa Monica Pier Lessees Association, SMarts, Loews Santa Monica Beach Hotel, Pepsi, Ben & Jerry's, LA Weekly, KPCC 89.3 FM, IBS TV Channel 62, Janss Foundation and The Tavern on Main. . . . Prior to the opening concert on June 28, 1990, the corporation hosted a reception in the Carousel for corporate sponsors and friends of the Pier. Following the reception, guests strolled down the pier and enjoyed a tremendous performance by nBilly Vera and The Beaters". nJunior Walker and the Allstars" were originally scheduled to open the series but cancelled at the last minute citing personal reasons. The Corporation hired Athena Productions, a corporate sponsorship company, to obtain funding for the 1990 series. Unfortunately, they were only able to bring one new sponsor to the series, Ben & Jerry's Ice Cream. Staff also hired Peggy Clifford to produce a 7-minute video of the concert series that accompanied the sponsorship proposals. The video included highlights from the 1989 series and was narrated by William Scha1lert. On April 6 and 7, the City officially re-opened and dedicated the neWly-constructed Municipal Pier. The Friday dedication ceremony was attended by local, state and national dignitaries. The first annual "Peer of the Pier" award was presented to Joan Crown for her constant support and dedication to the Pier. On Saturday, . . . . - 5 - . . the celebration continued with live jazz, hot dogs and drinks provided by Grand American Fare at 1940's prices and a fireworks salute at dusk. Corporation and city staff worked together to coordinate the two-day event which attracted upwards of 5,000 people over the two days. other special events in FY 89/90 included the continuation of the pier kite festival held in April on the beach north of the Pier. The kite festival has averaged approximately 200 kite flyers and hundreds more observe the spectacle. The fourth annual Santa Monica Kids Day was held on the pier in June. Over 400 kids attended the Pier and partook of the day'S numerous recreational activities including free Carousel rides, sandsculpting on the beach, gymnastic demonstrations and a City vehicle display. The Pier successfully hosted the second annual "Senior Day" on the pier on september 28, 1989. The corporation, in conjunction with the Commission on Older Americans and the Department of Cultural and Recreation Services, sponsored a day of activities on the pier for area seniors. Transportation to and from the Pier was provided from a variety of locations in the City. A tent was donated by Regal Rents so the event was held out at the west end of the pier. The seniors were served lunch in the tent and were entertained by the Mariachi Nuevo Uclatlan. After lunch was served, Swingstreet Band performed big band music and a dance contest followed. Approximately 400 seniors attended Senior Day at the Pier and look forward to the 1990 event. . . . . . Two new events were held on the pier in FY 89/90 and their successful debut will hopefully ensure their continuation on an annual basis. The first event was Cinco de Mayo, held on sunday May 6th. The corporation issued a Request for proposals for an independent producer to produce a Cinco de Mayo event on the Pier. Richard Vasquez of Vasquez Entertainment, Inc. was selected. The event consisted of musical entertainment throughout the day, ethnic food booths and a beer garden. The day was an overwhelming success. There were over 100,000 people in attendance over the course of the day. Contributing to the overall attendance were thousands of beach-goers who flocked to the beach to escape the city heat. Several issues that arose from the event will be addressed by staff in planning Cinco de Mayo in 1991. The first was the noise level. The amplification system used for the event was very large and was elevated on twenty-foot speaker platforms. A much smaller system will be used next year. Traffic congestion proved to be significant as a result of the event and the warm weather. Staff will work with police and Executive Parking, Inc. to improve traffic circulation. staff will also work with Mr. Vasquez in reducing the amount of pre-event promotion which may, in turn, reduce the size of the crowd. . . . . - 6 - . . The second new event in FY 89/90 was the Great Southern California Duck Race. This event was independently produced by The Donohue Group to raise money for Childrens Hospital Los Angeles. Thousands of numbered rubber ducks were launched off a boat by the breakwater. The ducks rode the waves to the shore and the first to arrive won prizes for their owners. In addition to the actual race, the day started out with a brunch reception at Guest Quarters Hotel followed by a parade down the pier led by Donald Duck, musical entertainment by the Killer Ducks band, and sponsor booths. The Duck Race garnered extensive media coverage and was well- attended by the public. Plans are in the works to combine the Duck Race with Kids Day over a two-day weekend in 1991. Materials continued to be collected for the Pier archive FY 89/90. Peggy Clifford was hired by the Corporation as Pier archivist. Much of the year was spent collecting and cataloguing historic photographs, newspaper and magazine articles, books and memorabilia. Discussions for a permanent installation for the collection and the library are still underway. . . . PIER OPERATIONS . The Corporation continued to work closely with the City of Santa Monica in an advisory capacity on Pier operations. The City retains responsibility for capital projects, the provision of security, the maintenance of the pier platform and all other public areas and oversees the operation of the parking lot. On April 6, 1990, the City opened the neWly-constructed Municipal Pier to the public. The reconstruction of the 45,000 square feet of deck that was destroyed by the storms of 1983 began in January 1989 and was completed in March 1990. The contractor for the project was Kewitt Pacific. Cost for the reconstruction was $6 million. When combined with the 1989 completion of the reconstruction of the damaged Pleasure Pier deck and substructure, the Pier has been restored to its approxiMate form and dimension prior to the 1983 storms. . . . The design development has been completed for the facilities to be located on the west end of the Municipal Pier. The project has been approved by the Corporation, Planning Commission, Landmarks Commission, ARB, and the Coastal Commission. The project includes a 6,525 square foot cafe, a 966 square foot Harbor Office, 625 square feet of restrooms, 180 square feet of utility space, a 1,344 square foot bait shop, a 1,675 square foot observation deck and a 60 square foot ticket booth. . . - 7 - . . Construction is expected to begin in Fall, 1990 and be completed in Spring, 1991. The Corporation, working together with city staff, has developed alternatives to the previously proposed 600+ space centralized parking structure. The decentralized parking schemes will significantly lower construction costs, may diffuse traffic circulation impacts, and eliminate the larger mass of a central structure. Two alternatives will be analyzed in the Pier Environmental Impact Report (EIR). The first alternative replaces the 471 spaces which existed on the pier prior to the 1983 storms and increases 96 additional spaces. Public parking on the pier would be removed except for 82 valet parking spaces. Remaining parking would be located at 3 adjacent sites: - 1640 Appian Way: a 2-story partially subterranean parking structure (244 spaces) and 5,200 square feet of retail. - 1550 PCH: restripe the existing 706 space lot and pave a residual unpaved area for an increase of III spaces. An outdoor performance stage for special events would be located at the northwest corner of the lot. . . . . - 1590 Appian Way: The Deauville property and the Beach Maintenance Facility lots would be paved to gain 205 net parking spaces. The existing Beach Maintenance Facility would be relocated. . The alternative approach requires an additional structure, and creates 104 more spaces. The difference from the above alternative is a one-level above-grade parking platform (152 spaces) that would be built above the 1550 PCH lot adjacent to the north side of the Pier. This would serve as an event deck for special events and as additional parking otherwise. The event deck and the 1550 lot below would be accessible from the pier bridge, which would remain open to general vehicular traffic. The City pier Maintenance Crew completed the fire wall beneath the Pier along the north and south perimeter to the surf line, the east wall of the bike path, the west wall of the service road, and removed the chain link fence on either side of the bike path. City staff has refined a scope of work for the pier Fire Study which would identify the fire risks to various locations on the Pier, (i.e. public assembly area, buildings, roadway) and analyze the effectiveness of several types of fire resisting systems, including sprinklers, comparting, fire shields, and protection walls. City staff is also in discussion with other . . . . - 8 - . . cities that have wooden piers about joining in the study since much of the information gained would be applicable to conditions on other timber piers. CONCLUSION . Fiscal year 1989/90 saw many accomplishments for the corporation. with the finalization of lease negotiations and the execution of new leases, the Pier is about to realize its long-awaited redevelopment. Over the next year, the Corporation will continue to work with the selected developers to implement their programs. Construction will begin on the Billiards Building, the Municipal pier Cafe and the Arcade. Leases will be executed for the Fun Zone and Sinbad's. Events will continue to flourish, bringing new visitors to the Pier. The Corporation will be considering the creation of several new events to add to the pier's annual roster. . . Over the next several years the Pier will be undergoing a strong resurgence, both as a viable commercial and entertainment entity and as an attractive destination for local residents and visitors alike. . . . . . . - 9 - . PIER RESTORATION CORPORATION . The Santa Monica pier Restoration Corporation was created as a non-profit public benefit corporation in November 1983 by the Santa Monica City Council to manage the Pier and oversee its reconstruction and revitalization. . Chosen trom a large number of applicants, the Board is made up of business and community leaders who not only represent the full range of community interests, but also have the requisite skills, experience and expertise in real estate, development, finance and design. . Members of the Board serve without compensation and are responsible for setting policy and developing plans for the reconstruction and redevelopment of the Pier. . BOARD OF DIRECTORS . Rae Archibald Henry custis Donald Girard Paul Giuntini Ruth Goldway Nancy Greenstein Margaret Henry Barbara JiJi Brad Jones William Spurgin Wayne Wilson CORPORATION STAFF . John E. Gilchrist, Executive Director Susan Maysels, Assistant Director Elaine Mutchnik, Operations Manager Bridget Stermer, Office Administrator . . . . - 10 - . . . . SANTA MONICA PIER RESTORATION CORPORATION FINANCIAL STATEMENTS JUNE 30, 1990 AND 1989 . . . . . . . . . Santa Monica Pier Restoration Corporation Table of Contents . Pa~e Accountant's Report 1 Statement of Assets, Uabitities and Fund Balance, June 30. 1990 and 1989 2 . Statement of Revenue, Expenses and Fund Balance, for the Years Ended June 30, 1990 and 1989 3 Statement of Cash Aow for the Years Ended . June 30. 1990 and 1989 4 Notes to Financial Statements 5 . . . . . . . fi~ :: : =1 [Il:i HOLLANDER, FREEDMAN, HARRISON & FINE CERTIFIED PUBLIC ACCOUNTANTS 11620 WILSHIRE BOULEVARD, SUITE 700, LOS ANGELES, CALIFORNIA 90025 TELEPHONE (213) 473-2001 FAX (213) 4n-4355 . Board of Directors Santa Monica Pier Restoration Corporation Santa Monica, California . Ladies and Gentlemen: We have reviewed the accompanying statement of assets, nabilities and fund balance of Santa Monica Pier Restoration Corporation as of June 30, 1990 and 1989, and the related statements of revenue, expenses and fund balance and ca~h flow for the years then ended in accordance with standards established by the American Institute of Certified Public Accountants. All information included in these financial statements are the representations of the management of Santa Monica Pier Restoration Corporation. A review consists principally of inquiries of company personnel and analytical procedures appned to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarcfang the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financiaf statemefi~ in order for them to be in conformity with generally accepted accounting principles. . . . .' ~"\~~~~ HoOander, Freedman, Harrison & Fine Certified Public Accountants . Los Angeles, California August 3. 1990 . 1 . ./ - .. Santa Monica Pier Restoration Corporation Statement of Assets, Uabirlties and Fund Bafance June 30. 1990 and 1989 Assets .. 1990 1989 - Current Assets Cash $ 44,630 $ 10,274 Prepaid expenses 93,404 56&99~ Total current assets 138,034 01.269 . Furniture and fixtures - at cost. less accumulated depreciation (Note 3) 2.864 6.896 . Other assets Organization costs. less accumulated amortization of $14,061 , 140.89& , 741165 . Liabifrties and Fund Balance Current liabilities Accrued expenses $ 37,176 $ 33.533 Accrued vacation 6,768 3,689 . Total current liabilities 43.944 37.n? Fund balance 96,954 , 1401898 36.943 , 741165 . . J Unaucflted See Accountant's Review Report 2 . Santa Monica Pier Restoration Corporation Statement of Revenue. Expenses and Fund Balance - For the Years Ended June 30. 1990 and 1989 - 1990 1989 Funding - City of Santa Monica $ 520.841 $ 363.464 . Operating expenses Salaries 224.228 199.418 Payroll taxes 14.165 15.268 Insurance - employee retated 14.853 13.130 Employee reJocation 5.200 1.576 . Office supprses and postage 10.457 15,614 Advernsing 1.010 4.964 Equipment rental 4,530 5.604 Automobile 206 74 Conference and travel 2,376 2,603 Dues. subsaiption and memberships 1.232 1.760 . Insurance - business 5.006 8.263 SMPLA Matching funds 15.007 15.692 Brochures and pubrlC information 15.677 19.511 Special evef.\i. - costs 72,145 60,615 Special events - revenues (76.138) (13,522) Professional services . Accounting 5.700 4.450 Legal 65.990 14.226 Promotion 39,506 38.239 Lease aucfds ~115 Police services 15,000 Economic services 1.800 4.472 . Development services 23,077 37.602 Market research 15.500 Depreciation and amortization 4.034 7.833 Total operating expenses 465,059 475,007 . Excess of funding over expenditures 55.782 (111.543) Interest and other income 4.229 4.070 Excess funding and other revenues over expenditures 60.011 (107,473) . Fund balance, beginning 36.943 144,416 Fund balance, ending ~ 961954 , 36,943 . Unaudited See Accountant's Review Report 3 .1 - - Santa Monica Pier Restoration Corporation Statement of Cash Flow For the Years Ended June 30, 1990 and 1989 1990 1989 Cash flow from operating activities: . Excess of funding and other revenues ($ 107,473) over expenditures $ 60,011 Non-cash items incfuded in excess of funding and other revenues over expenditures: Depreciation and amortization 4,032 7.833 . Increase in prepaid expenses (36,409) (22,686) Increase in accrued expenses 6.722 19tOO4 Cash flow provided (used) by (103,322) operating acbvities 34,356 . Cash Flow from Investing Activities: Acquisition of furniture and equipment (2,781) Cash Flow from Financing Activities: None . Net increase (decrease) in cash 34,356 (106,103) Cash at beginning of year ., 0.274 116.3n Cash at end of year ~ 44,630 ~ 10.274 . . Unaudited See Accountant's Review Report 4 .. .. Santa Monica Pier Restoration Corporation Notes to FU13r1CiaJ Statements June 30. 1990 . . Note 1. Orqanization Santa MOnica Pier Restoration Corporation was formed on November 21, 1983. as a non-profit public benefit corporation. The primary funding source for the corporation is from the City of Santa Monica. This funding is pursuant to a five (5) year agreement with the City of Santa Monica commencing on July 1. 1985. This agreement provides for automatic one year renewals after the expiration of the initial term with provisions for termination with appropriate notice and agreement. . Note 2. Siqnificant Accountinq Pofice!! A Furniture and fixtures are stated at cost Depreciation is being provided on a straight-line basis based upon the estimated useful life of the respective assets. B. The corporation quaflfied as a non-profit public benefit corporation which is exempt from federal and state income taxes. Accordingly. no provision for income taxes has been recorded on the finandal statements. . . Note 3. Furniture and Fixtures Furniture and fixtures, accumulated depreciation and estimated usefuj fIVes at June 30 are as follows: . . Fumiture and fixtures Accumulated depreciation ____t~ $ 31.789 28.925 $ 2.864 1~ $ 31.789 24.893 $ 6f896 Estimated Usefut ute 5 years . . Unaudited See Accountant's Review Report 5 -,-,...~_... - -=~~..,. ~::?Ji"""-~~~-::;. ,- .... -. -. - . . . . . . ~".....- -~--. ~=:- .;-_.._~,.~~--