SR-6G (18)
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RMD:EDD:IPM:EGM aa sr913.word.pIer Santa Momca, CalIfornIa
CIty Council Meetmg' September 13, 1994 SEP 1 3 1994
To: Mayor and CIty CouncIl
From' CIty Staff
Subject: Recommendation to Approve LIcense Agreement for Santa Monica
PIer Carousel Operator
IntroductIOn
ThIS report requests the City CouncIl to authonze the CIty Manager to negotIate and execute a
LIcense Agreement in the amount of $150,152 WIth Trafton & ASSocIates for the operatIOn of
the Santa Momca PIer Carousel and to reVIse the FY 94/95 CIty Budget accordmgly,
Background f-
In January 1994, the PIer RestoratIOn CorporatIOn (PRC) Issued a Request for Proposals for a
Carousel operator. FIve proposals were receIved. The proposals were reVIewed with regard
to such factors as carousel expenence, finanCIal strength, references from prevIOUS clIents and
techmcal expertIse In May 1994, the PRC Board of DIrectors ranked Trafton & Assocmtes
first because of theIr past expenence as ode and retaIl operators and theIr famIlIanty WIth the
Santa MOllIca PIer Trafton & ASSOCIates currently operates the small chIldren's Fun Zone
under a LIcense Agreement WIth the CIty.
Because the Carousel begms Its extenSIve summer hours of operation on Memonal Day, an
mteom LIcense Agreement was entered mto between Trafton & Associates and the CIty of
Santa MOllIca so that the Carousel could be open to the publIc dunng the summer season,
SE'P , 3 1994
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Concurrently, PRC staff and the CIty Attorney's staff prepared the LIcense Agreement to be
submItted to the CouncIl for approval
DIScussIon
The LIcense Agreement WIth Trafton & assocIates proVIdes for the complete operation of the
Carousel IncludIng staffing for publIc hours, pnvate rental, filmIng and maIntenance. The
LIcense Agreement mcludes a management fee for servIces proVIded by Trafton & AssocIates
as well as all operatmg and mamtenance expenses for the Carousel. Trafton wIll also operate a
retall store In the buildmg, sellmg Carousel-related items and memorabIlIa. The proposed
agreement has a two year term and can be termInated by eIther party upon thirty days notIce.
Budgetary/FmancIal Impact
AppropnatlOn authonty for thIS LIcense Agreement IS m the FY 94/95 CIty Budget account
number 30-620-625-00000-7724-00000 m the amount of $144,281. At the time the budget
was adopted, a defimtive budget and operatIng plan for the Carousel had not been developed.
The budget of 5144,281 was staff's best estImate of expenditures for the operation. SInce
then, a comprehensIVe budget has been prepared and approved by the PRC m the amount of
$150,152. The $5,871 vanance IS attnbuted to a promotIon fund and a $1.50 an hour salary
mcrease for the aSSIstant manager. Revenue estImates for the Carousel are antICIpated to
exceed thIS expendIture. It IS requested that the appropnatlOn to expendIture account number
30-620-625-00000-7724-00000 be Increased by 55,871. Smce thIS LIcense Agreement has a
two year term, appropnatIon for the Agreement WIll be made In the same account in the FY
95/96 CIty Budget.
RecommendatIOn
Authonze CIty Manager to negotIate and execute a LIcense Agreement In the amount of
$150,152 with Trafton & ASSOCIates for the operatIon of the Santa Momca PIer Carousel and
to revIse the FY 94/95 City Budget expendIture account number 30-620-625-00000-7724-
00000 to reflect the $5,871 budget Increase.
Prepared by: Jeffrey P MathIeu, DIrector of Resource Management
Elame G. Mutchmk, PRC OperatIons Manager
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CITY OF SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE September 14, 1994
TO Jeffrey P MathIeu, Director of Resource Management
FROM RIta Thompson. CIty Clerk's Office
SUBJECT' Contract Nos 7078
On September 13, 1994, the City Council awarded Contract No 7078 to Trafton &
ASsocIates m the amount of $150,152 for the operatIon of The Santa Moruca Pier Carousel
Item 6-G on the 9/13/94 agenda
Please provIde the CIty Clerk's OffIce WIth a fully executed copy of the contract