SR-802-011 (9)
RMD:EDD:EB:F:\RESOURCE\SHARE\STAFFREPORTS\Rothmgmt.doc
Council Meeting: April 22, 2003 Santa Monica, CA
To: Mayor and City Council
From: City Staff
Subject: Agreement between the City of Santa Monica and Roth Management for
Operation of the Santa Monica Pier Carousel.
INTRODUCTION:
This report recommends that the City Council authorize the City Manager to negotiate
and execute a two-year agreement with Roth Management for operation and routine
maintenance of the Santa Monica Pier Carousel.
BACKGROUND:
The Looff Hippodrome, built in 1916, is one of the few remaining original carousel
buildings, and the last remaining one on the west coast. The carousel housed in the
hippodrome was built in 1922 by the Philadelphia Toboggan Co. and has become one
of Santa Monica's most popular attractions. The carousel recently underwent
extensive mechanical and cosmetic renovations, which restored the machine to a
near-perfect operating condition. Open year-round, Carousel rides are 50 cents for
children and $1.00 for adults, with children under 5 years of age free with a ticketed
adult. For fiscal year 03/04, revenue generated from ticket sales, special event rental
and filming are anticipated to be $136,000 offsetting in part the projected costs of
management contracts.
The most recent carousel operating agreement expired June 30, 2002 and contains a
month-to- month holdover provision, currently in effect. In December 2002, staff
prepared and issued a Request for Proposals seeking a qualified entity for a two-year
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management services agreement to operate and maintain the carousel. The City will
pay the selected operator a management fee and reimburse the operator pre-
approved costs associated with the hours of operation. The RFP was advertised in
the Los Angeles Times, the City?s website and disseminated through direct mailings to
persons on the City?s interested-parties waiting list.
DISCUSSION:
The City received only one proposal, from Roth Management the current carousel
operator.
A selection committee comprised of Economic Development Division staff reviewed
and evaluated the proposal in accordance with the published criteria and determined
that Roth Management was responsive to the terms and conditions set forth in the
Request for Proposal. Roth Management received a high overall evaluation score
based on their extensive experience in the carousel industry, exemplary service in
operating and maintaining the Santa Monica Pier Carousel, ability to provide high
quality staff and service to the public. The proposed contract term will be from July 1,
2003 through June 30, 2005.
The annual management fee of $82,000, plus the reimbursement of estimated staff
salaries and maintenance costs at an aggregate cost of $98,000 are predicated on a
six-day per week operation from mid March through the end of August (closed
Tuesdays), and a five-day per week operation (closed Tuesdays and Wednesdays)
from September through the second week of March (see Attachment A - Carousel
Schedule Hours of Operation).
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A recommendation to proceed with selection of Roth Management Company was
approved by the Pier Restoration Corporation Board of Directors at its March 5, 2003
meeting.
BUDGET/FINANCIAL IMPACT:
Funds of $180,000 are included in the proposed budget for fiscal year 03/04 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 two-year period commencing July 1, 2003 as
summarized above.
Prepared by: Jeff Mathieu, Director of Resource Management
Mark Richter, Economic Development Manager
Elana Buegoff, Senior Administrative Analyst
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