SR-802-011 (7)
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RMD:EDD:MR:DM:F:RESOURCE/STAFFREPORTS/Carousel Operating Agreement.doc nUl' ( ZIIJ
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To:
Mayor and City Council
From:
City Staff
Subject:
Agreement Between the City of Santa Monica and Roth Management
Company for Operation of the Santa Monica Pier Carousel
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This report recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Roth Management Company for operation and routine
maintenance of the Santa Monica Pier carousel.
Backqround
Santa Monica Pier is one of the few remaining original and is now the oldest amusement
pier in the state. The most important and prominent structure on the Pier is the carousel
building, also known as the Looff Hippodrome, Built by Charles Looff in 1916, the
Hippodrome was architecturally designed to be the centerpiece of the pier amusement
park, and it serves today as the principal stylistic and historic element of Santa Monica
Pier.
The most recent carousel operating agreement expired June 30, 2001. In November
2000, staff prepared and issued a Request for Proposals seeking a qualified entity to
operate and maintain the carousel. The Request for Proposals was subject to the prior
review and approval of the Pier Restoration Corporation board.
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NOV 2 7 .,
Discussion
Proposals were received from five prospective carousel operators, all of whom were
evaluated by a selection committee comprised of City and Pier Restoration Corporation
staff.
Based on the respondents' experience in operating and providing routine maintenance,
relative proximity to the carousel and cost competitiveness, the selection committee
determined that Roth Management Company, located in Long Beach, offered the best
proposal. A recommendation to proceed with selection of Roth Management Company
was approved in by the Pier Restoration Corporation board,
Roth Management Company has extensive experience in providing routine maintenance
and repair of this type and vintage of carousel, and has exhibited an ability to provide high
quality staff service to the public for enjoyment of the carousel. The proposed operating
agreement will pay Roth Management Company an annual fee of $82,000 plus operating
expenses for staff salaries and maintenance in an estimated amount of $70,000 per year.
The contract term is from September 1,2001 through August 31, 2002. Revenues over
the last five years have averaged approximately $106,000 annually, The carousel will be
open longer during peak season and off-season hours than under the previous operating
agreement.
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BudaeVFinanciallmpact
Funds of $152,000 are available in the current fiscal year budget at Account
30625.577240.
Recommendation
It is recommended that the City Council authorize the City manager to negotiate and
execute an agreement with Roth Management Company to operate and maintain the
Santa Monica Pier carousel for a one-year period at an annual fee of $82,000 plus
operating expenses.
Prepared by: Jeff Mathieu, Director of Resource Management
Mark Richter, Economic Development Manager
Elana Buegoff, Senior Administrative Analyst
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