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SR-802-011 (11)~_ . . C~ty Counc~l Report ~ City of Santa Monica~ City Council Meeting: October 10, 2006 Agenda Item: ~~ To: Mayor and City Council From: Martin Kennerly, Resource Management Department Subject: Agreement between the City of Santa Monica and Kid's Play to Promote, Book and Monitor Special Events at the Santa Monica Pier Carousel Recommended Action It is recommended that the City Council authorize the City Manager to negotiate and execute a one year service agreement with a one-year option to renew, with Kid's Play to promote, book and supervise special events and filming at the Santa Monica Pier Carousel. Executive Summary Kid's Play has been the City's agent for booking special events at the Carousel on the Santa Monica Pier since 2001. The City's agreement with Kid's Play expired in June 2004, and it has continued operating on a month-to-month hold over provision under their current contract. In September 2005, the City issued a Request for Proposal for a Carousel booking agent and Kid's Play was the only entity to submit a proposal. Staff is recommending that the City renew its Agreement with Kid's Play, under the same terms and conditions as the previous agreement, for a one-year term with a one-year option. Compensation to Kid's Play is based on 50% of the income generated from the rental of the space. 1 Background Designed and constructed in 1916 by Charles Looff, the Looff Hippodrome (the Carousel), with its eclectic Moorish-Byzantine inspired architectural style, and its magnificently restored Carousel, has become a very popular as well as affordable location for children's birthday parties, weddings, holiday parties, non- profit fundraising events for both semi-private and private functions and film shoots The rate charged for the room rental of the Carousel is set by resolution of the City Council and contains graduated rental rates to encourage children, community and non profit events while also making the Carousel available at higher rates for commercial uses such as film and television shoots. A recent survey of rates with other comparable facilities indicated that the Carousel's rates were in line with market conditions, given the level of amenities that are available at this venue. Discussion The booking agent's responsibility is to book and coordinate special events, market the facility to potential clients, and monitor the event. Kid's Play has provided exceptional customer service as evidenced by dozens of letters of appreciation from satisfied Carousel clients. During FY 2005/06, Kid's Play booked 188 children's birthday parties, 38 private parties (e.g. weddings, fundraisers) and four film shoots. Overall the booking agent's background encompasses over thirty years of experience in special events planning. Staff recommends selecting Kid's Play to continue to operate 2 as the Carousel booking agent under a one-year service agreement, with a one-year option to renew. Compensation to the selected booking agent will continue to be a payment of a coordination fee equaling fifty (50%) of the rental fee for special events and filming held at the Carousel, plus reimbursement of custodial fees, pre-approved marketing materials, mailing expenses and supplies. The coordination fee as proposed is reasonable in relationship to the services the contractor is providing and the revenue potential available under rental rates set by Council. Contractor/Consultant Selection In September 2005, staff prepared and issued a Request for Proposals seeking a qualified entity for booking agents to perform a variety of marketing, administrative, and operational activities for the Santa Monica Pier Carousel. The RFP was advertised in the Los Anqeles Times, the City's website and disseminated through direct mailings. The City received four requests for proposal packages, Kid's Play was the only respondent to submit a proposal. Following receipt of only one proposal, staff examined the procedures used to procure this service, and explored alternative ways of managing the Carousel booking activities. At the conclusion of this evaluation, staff determined that the Kid's Play proposal would provide the City with excellent service at a reasonable price. 3 Previous Council Actions Council awarded the current management agreement to Kid's Play on April 22, 2003. Commission Action Staff advised the Pier Restoration Corporation Board of Directors of staff's recommendation to select Kid's Play at its June 7, 2006 meeting. Budqet/Financial Impact During FY 2005/06, Carousel parties and special events generated $109,824 in net room rental revenue. The agent received $54,912. Revenues net of coordination fees are reported in Account Number 30625.402030. Prepared by: Elana Buegoff, Senior Administrative Analyst Approved: Forwarded to Council: Martin Kenne~; Acting Direct r of P a ont Ewell Resource Management anager 4 e erence on rac o. .