SR-906-000 (6)
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Santa f':onica, ca'ornia, December 7,1981
TO.
FRO~1 :
Mayor and Clty Council
f ?JG .- t/tOO
lJ-C
DEe 8 1sat
City Staff
SUBJECT: Crlterla For an RFP For The Use of The Sand & Sea Site
Introduction
This report outllnes a sequence for lease approval, an estlmate of time lnterval for
lease execution, presents the Recreatlon and Parks Commlsslon recommendatlon of criteria
for a Request for Proposal (RFP) fro~ bldders for the use of the site, and staff
recommendations and comments.
Background
The Sand & Sea Cl ub 1 ease, a ten year agreement. expl red on t1ay 31. 1981. It has been
on a month to month tenancy since that time. The Recreatlon and Parks Commlsslon has been
consldering the future uses of thlS site. The State Parks and Recreatlon Commlsslon has
also had this matter before their body.
Staff appeared before the State Park Commlsslon at thelr November meetlng outllning the
CltylS involvement and the procedure the City has been following through the Beach r1aster
Plan as well as the Local Coastal Program preparatlon.
Staff also expressed the desire to
have a cooperatlve approach to developlng cflteria for the Request for Proposal for future
use of thlS slte. The State Parks and Recreatlon Commlsslon, as well as the State
Department of Parks and Recreation staff were pleased at this approach.
Procedures for Execution of the Lease
The followlng is requlred for the execution of the lease:
Approval of the Clty Councll.
Approval of the State.
JJ-G
DEe 8 \981
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TO:
Mayor and City Councll
Santa Monica. California, December 7, 1981
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Staff recommended actlon sequence and estlmated time interval for each sequence
Council establishes RFP criterla and submits to State.
December 1981.
State reviews RFP. January 1982 to July 1982.
Revlew by staff and City Council of State actlon and finallzation
of Purchasing Agent. August 1982.
Staff conducts bidders conference and tour of facllity. August
and September. 1982.
Review bids and recommends successful bidder to Clty Recreatlon and
Parks Commisslon. September 1982.
Recreation and Parks Commisslon reviews Dlrector1s reco~mendatlon
and advises Councll. September 1982.
Staff reVlews bids and recommends successful bidder to Clty Councll.
Requests authorlzatlon to negotiate lease. September. October 1982.
Council reVlews staff negotlated lease and authorlzes award of
contract subject to approval of State. November 1982.
In view of the tlme lnterval noted above prior to enactment of the new lease. the present
Sand and Sea lease wlll continue on a month to month tenancy untll December 31. 1982.
While the process of State review and approval may be speeded up wlth City assistance. the
State tlme lnterval is essentially out of staff's control.
Recreatlon and Parks Commlssion Actlons
The Clty Recreation and Parks CommlSSlon conducted a public study seSSlon on Nov. 19, 1981.
341 lnvltatlons were mailed to the LCP malling 11st and also lnner city groups were
lnvlted to attend
The Commisslon submlts the followlng crlterla for Councll review and action
The Commlssion deslres that the facillty be used as a means
and/or locatlon for beach access for people of all lncomes.
That the facllity presents an opportunity for substantial
revenue that can be used for increased access to the coastllne,
beach improvement and malntenance.
TO:
~1ayor and C1 ty couln
Santa Monica, ca~ornia. December 7, 1981
-3-
That the facility is unique and rare, is coastal dependent and beach
related as defined by the Santa Monica Coastal Program, and should be
preserved unless an innovative and recreat10nal or1ented slte plan is
prescribed. The North House will be preserved no matter what plan evolves.
Access - The B1dder w1ll prov1de a beach access plan that includes an
estimatlon of visltor use hours per year and per season. The faclllty
1S the focal point.
Minimum Offer - The Bldder wlll provlde a minimum fee plus offer a
percentage of the gross. The higher figure will constitute the lease
payment for any glven year. cpr adJustments wlll occur annually and
provlsions will be made for any interested party to bld separately for
the faci 1 itl es.
Additional Beach Access Strategies - The Bidder will agree to contrlbute
to the funding of the blke path for the portion ln front of the facillty.
Strategies and Site Plan - The Bidder will not demolish the North House.
The North House may become a restaurant or museum open to the general
publlC. A site plan that lndicates either new construction or
renovation of eXlstlng structures shall be presented by the Bidder
An analysls of proposed amenitles will be included. The structure
now inhablted by the Ocean House restaurant may be expanded as a
restaurant.
Marketing - The Bidder will provlde a marketlng plan that 1ndlcates a
strategy for lncreasing public access and making the public use aspects
of the facility known to the general public and community based groups,
and wlll avall the public of existlng trans1t systems for access to the
beach.
Membership - Should a membership club bid, there will be a SlX (6) year
membershlp, changlng one-thlrd of the membership every two years on a
lottery bas 1 s.
Cabanas - A portion of the cabanas would be open to the publlC on a dally
basis, wlth the remainder ava11able as a rental by club members, should
they so deslre.
Term of Lease - The term of the lease is not to be more than twenty-five
(25) years ln length.
Staff Recommendatlons
Staff has reviewed the actlons of the Comm1ssion and concurs w1th lts general dlrection.
However, staff wishes to modlfy some of the crlteria and to suggest additional lmportant
bld crlterla. Suggested modlflcatlons are:
Minimum Offer - The bidder should propose a mlnimum rental rate. In
addltion. the bidder should also propose a percentage of gross income
amount WhlCh wlll be paid annually based upon liquor sales, restaurant
sales, club memberships, day use fees, and cabana rentals. The City
would recelve the greater of the flxed and variable fee.
TO:
.
Mayor and City Council
.
Santa Monica, California. December 7, 1981
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Memberships - If bidder lS proposlng a membershlp organlzation, the
applicatlon should state a membership polley. In accord with the
criterla for open access, the membershlp plan should provide for a
hlgh degree of access for Santa Monlca residents. It is desirable
that memberships be selected by lottery and be of no greater than
annual duration. However. the bidder may wish to provlde alternatlves
compatable wlth the lntent of the CltylS goal of open access and also
provlde for a reasonable continuity of memberships.
Cabanas - Cabanas should be rented to club members and not avallable
for dally use rentals. Llmltations on the duration of cabana rentals
lS desirable.
In additlon to these modifications. the staff wlshes to propose addltional consideratlons.
Affirmatlve Aetlon - Employment - The bldder shall submit an
Affirmatlve Actlon and Employment Plan. Favorable consideratlon
wlll be glven to plans which represent the bldders best effort to
implement an aggressive and creatlve affirmative actlon and
employment program. Bldder will also comply with the Minority
Buslness Enterprlse Program of the Clty.
Compliance Schedule - The Clty is concerned about tlmely executlon
of any commitments by proposed bidders The bidders shall suggest
a means of lnsurlng speedy lmplementation of any agreed upon development
program. At a minimum, the bldder shall post a Performance Bond equal
to one year1s annual rent to guarantee the compllanee to a submitted
schedule for the establlshment of the following lf appropriate to the
enterprlse: Marketlng program, beach access plan. lottery, dally
use, fee schedule, restaurant construction, extension of bike path
and any other actlvities crltical to the implementatlon lncluding
but not limlted to capital renovations.
Special Populations - Bidder will submit plans which provlde for
access to beach facilities for special populatlons (ie handicapped,
senior cltlzens)
Organlzed Recreation Groups - Plans shall provide for regularly
scheduled access to the faCllity by recreation groups from Santa Monica
and surroundlng communlties.
Summary
Staff is asklng the Councll to vote on the following:
1. The Commission desires that the facility be used as a means and/or
location for beach access for people of all lncomes.
2 That the facility presents an opportunity for substantial revenue
that can be used for increased access to the coastline, beach
improvement and maintenance.
.
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TO:
Mayor and Clty Council
Santa Monica, California, December 7~ 1981
-5-
3. That the facility is unique and rare. is coastal dependent and beach
related as defined by the Santa Monica Coastal Program. and should
be preserved unless an i~novative ana recreational oriented site plan
is prescribed. The North House will be preserved no matter what
plan evolves.
4. Access - The Bidder will provide a beach access plan that includes
an estimation of visitor use hours per year and per season. The
facility will be the focal point.
5. Additional Beach Access Strateqies - The Bidder will agree to
contribute to the fundirg of the bike path for the portion in
front of the facility.
6. Strategies & Site ,Pla~ - The Bidder will not demo11sh the North
House. The North House may become a restaurant or museum open
to the general public. A site plan that indl~ates either new
construction or renovation of existing structures shall be
presented by the Bidder. An analysis of proposed amenities will
be included. The structure now lohabited by the Ocean House
restaurant may be expanded as a ~estaurant.
1. ~arketing - The Bidder w~11 provide a marketing plan that
;ndic~tes a st~ategy for increasing public access and making the
public use aspects of the facillty known to the g~neral publlC
and community based groups~ and ~i11 avail the public of existing
transit systems for access to the beach.
8. Mlnlmum Offer - The Bidder should propo~e a minimum rental rate.
In addition the bidder should a1so propose d percentage of gross
incorre amount which Will be paid dnnudlly based upon liquor sales~
restaurant sales, club membersrips, day use fees, and cabana
rentals. rhe City would receive the greater of the fixed and
variable fee.
9. Membership~ - If bidder is proD0sing a membership organization,
the application should state a membership POllCY. In accord with
the crlterla for open access~ the membership plan should provide
for cl high degree of access for Santa Monica residents. It is
deslJ~able that memberships be selected by lottery and be of no
greuter than apnual duration. However, the bldder may w1sh to
proviJe alternatlves compatable witn the intent of the City's
goal of open access and also provlde for a reasonable continuity
of memberships.
10. Cabanas - Cabanas should be only rented to club members and not
available for daily us~ rentals. Limitations on the duration of
cabana rentals is deslrab1e.
11. AffirMative Action - Emp1oj~ent - The bidder shall submit an
Affirmative Actlon and Emp10yment Plan. favorable consideratlon
will be given to plans whic~ represent the bidders best effort to
implement an aggressive and creative affirmative action and
employment program. Bidder will also comply with the Minority
Business Enterprise Program of the City.
TO:
~
Mayor and Clty Councll
.
Santa Monica, California, December 7, 1981
~-
12. Compliance Schedule - The City is concerned about tlmely executlon
of any commitments by proposed bidders. The bldders shall suggest
a means of insuring speedy implementatlon of any agreed upon
development program. At a minlmum, the bidder shall post a
Performance Bond equal to one year's annual rent to guarantee
the compliance to a submltted schedule for the establishment of
the folloiwng, If approprlate to the enterprise: Marketing program,
beach access plan, lottery, dally use, fee schedule, restaurant
construction, extension of bike path and any other activities
crltical to the implementation including but not limited to capital
renovatlons.
13. Special Populations - Bldder will submit plans which provlde for
access to beach facllitles for speclal populations (le. handicapped,
senior cltlzens).
14. Organized Recreation Groups - Plans shall provide for regularly
scheduled access to the facillty by recreation groups from Santa Monica
and surrounding communities.
Recommendation
1. Staff recommends Council approve items 1 - 14 under the summary for the crlteria to
seek proposals for the use of the Sand and Sea Slte.
2. Staff also recommends that Councll authorize the submlsslon of these criteria to the
State Department of Parks and Recreation for the approval of the State.
Prepared by' John H. Alschuler
City Manager
Donald T. Arnett, Director
Recreation and Parks
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