SR-802-007
CED:1>IT:JM:ng
Council Meetlnq:
. 1" tJ?..-t:)O-P-
uly 26, 1983
.
~anta Monlca, Californi~
/1-13
To:
Mayor and Clty Councll
JUl 2 6 \in
From:
Clty Staff
Subject:
Summary of Save The pier Week and
Proposal for On-golng Pier Prowotion
Introduction
As a follOW-Up to lnformatlon presented to Council In the
May 10 pier Staff Report, thls report presents a s~~ary of Save
The Pler Week, May 23-30, 1983, lncludlng a flnanclal state~ent.
The report further analyzes the benefits of contlnulng nromotlonal
efforts for the Santa Honlea Pler and recorrunends that Council ap-
prove a $100,000 Pler ProIDotlon Program to be flnanced from current
proflts from Save The pier Week and future revenues WhlCh have been
ana wlll be placed lD an Agency Account, to be used speclflcally
for Pler Promotlon. In addltlon, thlS renort recowmends that the
Counell authorlze the Clty Manager to enter into a contract with
LOUlse Kleffer for the purpose of plannlng and lmplementina. events
subJect to the avallablllty of funds ln the Agency Account.
Save The Pier Campalgn
A. Purpose
The storms of January 27, 1983 and 11arch 1, 1983 not only
damaged the Pier, but damaged 1tS lMage. r1any people In the
reglon were convlnced that it had elther been totally destroyed or
so badly da~aged that it was permanently closed. Pler lessees re-
port that bU51ness decllned 30-50% In the weeks fo11rnvlng the
second storw. It was declded that some sort of Pler ProIDotlon was
necessary. The Clty'S CjED Department contracted wlth LOUlse
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11- (3
JUL 2 6 19!3
CED:MT :J~1:ng
Councll ~Ieet:Lng:
.r
.
July 26, 1983
Santa ~onlca. Callfornla
K:Leffer, Pler Promotlon ~anaqer for the Santa Mon:Lca Pler Lessees
Assoclat:LOn (SMPLA) to create, organize and produce a speclal
one-week proMotlonal event that would accowolish the followlnc
obJectives:
(1) demonstrate that the Pler was, despite the damage,
stlll here, still open, and stlll a terrlflc place
to spend the day
(2) attract a large and dlverse crowd to the Pler
(3) draw the medla down to the Pler and stlmulate
lntensive coverage, and
(4) prove that the Pler remalns a vltal soclal and
econoffilC cOMwunlty resource
A Steerlng Commlttee representing Clty Staff, SMPLA, Pler
Task Force and Arts CO~mlsslon met regularly wlth t1s. Kleffer and
deterITlned that the prlIDary al~S of Pler promotlonal efforts would
be to raise awareness and stlffiulate communlty partlcloatlon and
support of the Pier.
Ms. Kieffer des:Lgned a uSave The Santa Honica P:Lerfl CaJl1palgn,
beginn:Lng wlth the creatlon of Save The Santa Monlca P:Ler promo-
tlonal products and cllroaxing In a Save The Santa Monlca P:Ler week
at the end of Nay. Cash flow requlrements were to be pald out of
the Clty Emergency D:Lsaster Account and all monles advanced frow
thlS fund would be repald from the proceeds of the Save The Pler
campalgn.
B. Promot:Lonal Products
Ms. Kleffer met with executlves of General Telephone of Call-
forn:La (GTE), and GTE agreed to prov:Lde Save The P:Ler pro~otlonal
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CED:l'1T:JM:ng
counc~l ~1eet~nq ~
.
July 26, 1983
.
Santa ~onica, Callfornla
products, lncludlng a poster. buttons, bumper stlckers, Vlsors,
tee shlrts and a Save The pier Week proaram.
In add~tion, GTE
offered a 810,000 challenge grant to be pald if the pre-Pler Week
campalgn raised $10,000. With the exceptlon of the poster and
program WhlCh were to be dlstrlbuted free, the promotlonal products
were sold wholesale to various outlets around Santa Monlca and con-
tlnue to be sold at a retall prlce from the Save The Pler booth on
the Pler. Ads were sold In the 24-page two-color Droara~ as well.
C. Save The Pier Week Events
Save The Pler Week was set for May 23-30 and the baslc ele-
ments lncluded an all-star variety show, a film tr~bute, a crafts
falr, contests, mln~-concerts, and an art exhlblt. A Press Party
was held ln the Carousel on the Pler ln ffild-Aprll ~71th food and
beverages donated by Pler lessees and area wholesalers. Group W.
agreed to underwrlte the cost of a sound system and to contribute
$5.000 l.n cash.
J1m R1ssffilller, a leadlng concert promoter, agreed to produce
the variety show and offered to slgn his $5,000 fee back to the
Save The pier Fund. The flnal 11ne-up for the show conslsted of
emcee Buck Henry, S2ngers Tony Geary, Bllly Burnett, Iiood Indlgo,
Ry Cooder, actor Katherlne Helmond and wrlter-nerformer Lorenzo
MUS1C. There were cartage and sldemen charqes for Burnett and
Cooder, but all others performed free of charge.
Immediately pr10r to Pler Week, the Promotlon Offlce under-
took a medla blltz and the media responded. Euery TV channel lD
the area, wlth the exceptlon of channel 2, was on the Pler at
least once durlng Pler Week, and all ran feature stories once or
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CED: MT : J'\1: ng
councll MeetlDS'!
tlY
26, 1983
.
Santa Honlca, callfornia
twice durlng the week. The openlnq cere~onies of Pler Week,
featurlng remarks by Hayor Ken Edwards and John Alschuler, an
Arabian horse cavalcade, and a balloon release, ~~ere covered by
vlrtually every maJor TV,radlo statlon and newspaper lD the area.
More than twenty bands and street performers entertalned
throughout the week.
Crafts and food vendors' booths stretched
the length of the boardwalk. Though the weather was unusually cold
and grey, the Pler was Ja~ed wlth people all week. The mlnl-
concerts, dance performances, as well as the contests drew large
crowds. Volunteers circulated donatlon cannlsters through the
crowds.
A tent was erected on the Pler for the week and was used as
a staglng area for performers, a hospltallty room for the varlety
show stars, and a fll~ trlbute. Filrr-s were donated by four StudlOS
and the day-long festlval ran the "Stlng", '"InSlde Dalsy Clover'",
111941" and "Elmer Gantry".
The fllw tribute was the only unsuc-
cessful event of the Week, perhaps because lt was held on the day
on WhlCh the sun flnally appeared.
Evaluatlon of Pler Week
The Pler was busy all week.
The crowds were large and dlverse,
spannlng a broad range of aqe, inco~e and lnterests. An estlmated
average of 25,000 people visited the Pler dally, for a total of
180,000 for the week.
Prlor to the storms, the average nu~ber of
vlsltors to the Pler durlns the su~er months, based on parklng
space utlllzatlon, was 6,000 on weekdays and 18,000 on weekends.
Medla coverage, as noted, was extenslve and posltlve, and
deroonstrated that the Pler was open, busy and lively and stlll a
vltal communlty resource.
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ED :!-1T: J!1: ng
Councll Meeting:
.
.
July 26, 1983
Santa Monlca, Callfornla
PLer lessees were enthusLastLc about the campaLgn lD general
and Pler Peek In partlcular. Fourteen lessees responded to a
questlonnalre prepared by the Pler BUSlness Offlce. The ratlngs
for Pier y,leek ~.;ere all wi thln the two highest categorles out of a
posslble four.
86% of those respondlng favored sponsorlno a
serles of regular events and promotlons on the Pler. All those
who responded to the questlon comparing buslness of Pler Week to
the saf[le 1<leek ln 1982 indlcated that business was two to four
tlffies better than for this ?erlod ln the prevlous vear.
Further analysls of sales revenue data, based on Clty Treasury
records of monthly recelpts for each lessee, Ylelds strong con-
fir~atlon of the posltive effect of Pler Week on sales revenues.
Total gross revenues for Pler lessees durlno Pler week was $93,583
as compared to a total of $59,074 for these lessees during the
same perlod ln May 1982. ThlS represents a 58% lTICreaSe lTI sales
revenues.
A f~nanclal statement of income and expenses appears In Attach-
ment A. As shown, expenses totalled $34,786 against revenues of
554,156 for a balance of $19,370.
Ongo~ng Pler ?rowotlons
Save The Pler Week was an experlment and lt worked.
It cap-
tured the attentlon of the medla, drew thousands of people to the
Pler, lncludlng many who had never been there before, and generated
much needed buslness for the Pler.
Staff proposes that the City
bUlld on the momentUPl generated by Save The pier "~eek and continue
to create and produce events for the Pler, lncludlng mlnl-concerts,
exhibitlons, performances by dancers and varlety artlsts, sports
competltlons, and speclal events.
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CED:HT:JM:ng
Councl.l Neetlng:
.
July 26, 19B3
.
Santa l1onlca, Callfornla
As noted above, P1er lessees responded favorably to Save The
Pler Week. Durlng June, a wrltten ballot was clrculated a~ong
SMPLA members, with all but one me~ber votlng to unden~rlte the
costs of bUlldlng a slMple stase on the Pier. The groundwork has
been lald by LOUlse Kieffer for sustainlng a year-round pro~otional
cawpaign for the Pler. Ms. Kieffer contlnues In the role of pier
Promotlon ~anager for SMPLA and thlS report presents a reco~menda-
tlon that the C1ty Manager contract wlth LOUl.se Kleffer to implement
an ongoing promotion effort under the dlrection of the C/ED Depart-
mentA
The obJectives of the ongolng promotlonal effort would be to
brlng a broad ~lX of people to the Pler,to generate medla coverage
on a contlDuing basis, to generate com~unity support for the pier
1n general and Pler reconstruction 1TI particular.
In add1tlon, as
events unfold in the process of restoratlon, 1.e. formation of the
Pler Restoration Corporatlon, selectl.on of archltectural/engl.neer~ng
flrw for reconstruction, the promotional effort would serve to alert
the public of progress as ~t 1S Made.
The $lOO,OOO annual promotlonal program would ~nclude the con-
struction of a slmple stage, 20' x 32' x 3', which would be per-
manently located ~n the open area between 11oby' s Dock and the Bumper
Cars. The stage would feature a wlde range of events wh~ch would
be planned and produced to serve dlverse lnterests. For example,
Jugglers and acrobats mlght perform on a regular basls, fashion
shows could be he]d at lunchtlme. and a tent could transform the
stage ~nto a theatre sUltable for muslcals, concerts, or dance.
Corporate sponsors such as Mlller Beer have eXDressed lnterest 1n
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CED:MT:JM:ng ...
Councll Meetlng: ~uly 26, ~983
.
Santa Monlca, Callfornla
underwrlting events and members of Actors' EqUlty have suggested
cooperatlve efforts wlth cowmunlty groups. The budqet, as pre-
sented In Attachment B would cover the costs of planning, pro duc-
lng and promoting an average of four events per month. The alm
would be to have somethlng happenlng on the Pler most weekends.
In addltlon, the Pler Promotlon Offlce would work in concert wlth
SMPLA on proJects that would enhance the vlability of the P1er,
such as a tram syste~. Likew1se, the Arts CO~lSSlon has expressed
interest in the Joint production of cultural events and art exhlbltS.
FlnanClal Analys1s
As the flnanclal statement for Save The Pler Campalqn lndl-
cates, a balance of $19,370 re~a1ns ln the Save The pier Fund. As
has been recommended ln the Flscal Year-end Closeout Staff Report,
the remainlng promotlon revenue ln Account 30-934-208-000-000 1S
to be approprlated to an Agency Account for the purpose of Pler
Promotlon. This ln1t1al aroount of $19,370 ~ill be used to produce
events that will ln turn generate more revenue. All result1nq
revenues will be deposlted in the Agency Account. The proposed
promotlon budget, Attachment B, calls for an annual expenditure of
$100,000 based on the productlon of 4 events per TIonth. Staff
proposes that thlS amount be broken down lnto five modules of
$20,000 each. The program for each module wlll be approved by the
Clty Manaqer, subJect to its appllcabillty to P1er PrOTIotlon efforts
and to the ava11abillty of adequate funds 1n the Agency Account.
Thus, the C1ty would be assured that promotlonal efforts were pay-
lng for themselves. The reason for the modular approach 15 to
prevent potentlal llablllty to the General Fund and to safeguard
agalnst a negat1ve cash flow.
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CED;MT:JM:ng
Counc1l Meet1ng;
.
.
July 26, 1983
Santa ~on1ca, Cal1fornia
In order to adminlster the promotion contract, an account will
be estab11shed 1n the P1er Development D1V1Slon operatlng budget
aga1nst wh1ch promotion expenses ~~i11 be charged. ThlS account
30-400-626-000-251 wlll be flnanced by Agency Account revenue.
Recomrrended Act10ns
Staff respectfully recommends that the Councll
1) Appropr1ate the balance of funds in Account
30-934-208-000-000 to an AGency Account to
be used solely for P1er Pro~otlon.
2) Approprlate $100,000 to Account 30-400-626-000-251.
3} Authorlze the Clty Manaqer to enter lnto a contract
wlth LOUlse K1effer, dba Flfth Buslness, to lmp1e-
ment the Pler Promotlon budget of $100,000. The
contract wll1 speclfy that the $IOO,OOO promot1on
budget w111 be broken down 1nto f1ve $20,000
modules and lmplementat10n of each $20,000 module
wlll be approved by the City Manager subject to
1ts appllcab11lty to P1er Promotlon, and subject
to the avallab1llty of adequate funds In the Agency
Account.
Prepared by:
JUdlth Me1ster, P1er Developrr-ent 11anager
Attachments:
A - Flnanclal Statewent for Save The Pier Carpalgn
B Pler Promot1on Budget, 1983-84
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Revenue
Expel!ses
E
.
ATTACHMENT A
.
SAVE THE PIER FINANCIAL STATEMENT
Donation Booth
Promotional Product Sales
Save the Pier Week Donations
(cannister collect1ons)
Program Ad Sales
Vendor Booth Rental
GTE Grant
Group H Cable
Seafood Broiler
Rand Parking Lot Donatlons
Jim Rlssmiller
Salarles
Office suppl1.es
Printing
Graphics
Advertlsing
Equipment rental (tent,
mOVle screen, stage)
Banners
Performers Cartage & Sidemen
Producer RlssIDlller
TOTAL REVENUE
TOTAL EXPENSES
NET PROFIT
~54,156
-$34,786
$19,370
7,912
9,040
6,000
2,025
4,400
10,000
5,000
2,754
2,025
5,000
$ 54,156
12,701
481
743
4,908
3,128
3,185
1,920
2,720
5,000
$ 34,786
.
.
ATTACHMENT B
PIER PROMOTION BUDGET 1983-84
Operating Expenses
Eve nts
Average Event Cost ~ $886
(lncludes equlpment rental, perforMers,
expenses, overt1me for Pler Crew)
4 events per month = $3,544 x 12 42,528
Promotlon Off1ce Expenses
Salarl es
Offlce expenses (supplles,
prlnt1ng, telephone
Advertlslng (lncludes brochure)
21,000
8,340
17,200
$89,068
Capltal Expenses
Construction of stage
Purchase of Tent
Purchase of 300 cha1rs
3,500
5,000
3,000
$11,500
ProJected Income
Less Annual Expenses
Projected Endlng Balance
19,370
13,000
12,000
83,000
3,500
$130,870
SlOO,568
$30,302
Beg1nnlng balance
Product Sales
Donatlons
Event Revenue (corporate
sponsorsh1p, admlss1on)
SMPLA contrlbutlon for stage