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SR-106-005 (2) RMD:EDD:F:\RESOURCE\SHARE\STAFFREPORTS\BDC Service Agreement.doc ~ Council Meeting: October 26, 2004 Santa Monica, California OCT 2 6 2004 Mayor and City Council To: From: City Staff Subject: Recommendation to Authorize the City Manager to Execute a Services Agreement with Bayside District Corporation and for the Council to Approve the Annual Work Plan Introduction This report recommends that the Santa Monica City Council ("Council") authorize the City Manager to execute a Services Agreement with the Bayside District Corporation and approve the Bayside District Corporation's Operations and Marketing Plan and Budget for FY 2004-05. Backaround Third Street Development Corporation incorporated in 1984 for the purpose of revitalizing the area formerly known as the "Third Street Mall". In 1989 it changed its name to the Bayside District Corporation ("BDC") to reflect its mission of serving a broader Downtown constituency. The purpose of BDC is to support the continued economic revitalization of the Downtown through the sponsorship, support and production of programs, projects and services that benefit Santa Monica residents, Downtown merchants, property owners, customers and visitors. In 1998. Council approved the merger of the BDC and the Central Business District, a business improvement area originally formed in 1965. In April 1998, Council authorized the City Manager to negotiate and execute a Services Agreement between the City and BDC. The term of that Agreement plus its one-year 1 ~e OCT 2 (; 2.004 extension expired in April 2001. The City and BDC continued to operate under the terms of the expired Services Agreement while the new Services Agreement was being negotiated. BDC staff and City staff have concluded their negotiations and are presenting a new Services Agreement to supercede the 1998 Agreement. Discussion Bayside Services Aqreement: The purpose of the Bayside Services Agreement is to set forth roles and responsibilities of the City and BDC. BDC's area of responsibility incorporates the area bounded generally by Wilshire Boulevard on the north, the Santa Monica Freeway on the south, Ocean Avenue on the west and Seventh Street on the east. As described in the Services Agreement, BDC's roles and responsibilities are to include the following: . Conduct marketing campaigns and promotions that benefit local residents, customers and visitors; . Provide advice and recommendations to the City regarding long term planning and development strategies; . Assist new businesses by providing information; . Advise the City on operational issues related to the Downtown; . Coordinate with the City filming, photo shoots and special events and collect Film and Special Event Fees, as approved by the City; . Manage the street performer program; . Serve as a liaison to the City and other governmental entities; and . Prepare annually a Work Plan, Annual Report and Audited Financial Statement 2 The Services Agreement calls for the City's roles and responsibilities to include the following: . Maintain, fund and manage the capital improvements; . Review and approve permits and applications; . Negotiate and administer leases and licenses in the City's leasehold spaces; . Appoint members to BDC's Board of Directors; . Advise BDC of matters affecting the Downtown; and . Approve BDC's Annual Work Plan. The differences between the 1998 and 2004 Services Agreements are as follows: . The term of the 1998 Agreement was two years with a one-year option; the term of the 2004 Agreement is three years, with options for renewal of consecutive one-year periods. . The language of the 2004 Agreement clarifies the responsibilities of the BDC to reflect the mandatory or discretionary nature of their responsibilities. . The 2004 Agreement updates insurance requirements to include Directors and Officers Liability, property insurance and non-owned and hired auto liability. . The 2004 Agreement clarifies that BDC's insurance shall be the primary insurance. The City's indemnity obligations are over and above all valid and collectible insurance by the BDC. . Work Plan FY 2004-05 The Services Agreement requires that BDC submit a proposed Work Plan to the City for the City's approval, together with a budget. The Work Plan for FY 2004-05 sets forth the activities and programs BDC intends to undertake during the year. The Work Plan (Attachment No.2), called the "Bayside District Corporation Operations and Market Plan and Budget, Fiscal Year 2004/2005", describes a number of maintenance and capital replacement projects, marketing and promotions efforts through Bayside Beat and hot sheets to the media, production of special events such as Winterlit, Skirball on the 3 Promenade and Scrooge Weekend Event, and management of the street performer program. The document also includes BDC's annual budget. BDC's budget for FY 2004-2005 anticipates revenues in the amount of $898,700. These revenues include $608,700 that the City granted to BDC and $195,000 that the City collected from the Central Downtown Business District Improvement Area. BDC plans to generate additional revenue through special events, filming revenue, interest earnings and donations. BDC's budget is .2% less than the adopted budget for Fiscal Year 2003-2004. BDC's budget allocates expenditures in FY 2004-05 according to the following categories: Personnel Administration Business Development Marketing/Promotions Operations and Maintenance Total 44% 18% 5% 28% 5% 100% BudqetlFinanciallmpact Approval of the Services Agreement and Work Plan impose no additional budget or financial impact on the City. All BDC revenues paid by the City are included in the City's FY 2004-05 Adopted Budget. 4 Recommendation Staff recommends that the City Council: 1. Authorize the City Manager to execute the Services Agreement with the Bayside District Corporation; and 2. Approve the Bayside District Corporation's Operations and Marketing Plan and Budget for FY 2004-05. Prepared by: Jeff Mathieu, Director, Resource Management Department Miriam Mack, Economic Development Manager Attachments: Attachment 1. Services Agreement Bayside District Corporation Attachment 2: Bayside District Corporation Operations and Marketing Plan and Budget for FY 2004-05 5 SERVICES AGREEMENT by and between CITY OF SANTA MONICA a municipal corporation and BAYSIDE DISTRICT CORPORATION a non-profit public benefit corporation ,2004 SECTION 1. D EFINITI ONS. .................................................................................................... V SECTION 2. TERM................................................................................................................... VI SECTION 3. ROLES AND RESPONSIBILITIES................................................................. VI 3.1. BDC ROLES AND RESPONSIBILITIES. .. ................... ..................................... .......... .... ...... VI 3.2. THE CITY'S ROLES AND RESPONSIBILITIES. ................................................................... VII SECTION 4. CENTRAL BUSINESS DISTRICT BUSINESS IMPROVEMENT AREA. .................................................. ......... ....... ... ....... ... ......... .................................................. .......... VIII 4.1. ADMINISTRA TION OF CENTRAL BUSINESS DISTRICT BUSINESS IMPROVEMENT AREA. . VIII 4.2. CITY TO PROVIDE FUNDS. ..................... ........................................................................ VIII 4.3 . ADMINISTRATION OF FUNDS. ............ ..................... ....................................................... VIII SECTION 5. CONSTRUCTION PROJECTS. ....................................................................... IX 5.1. DOWNTOWN URBAN DESIGN PLAN............. .................................................................... IX 5 .2. CAPITAL IMPROVEMENT PROJECTS. ................................................................................ IX SECTION 6. MAINTENANCE AND MANAGEMENT OF PUBLIC AREAS.................. IX 6.1. GENERAL MAINTENANCE MATTERS. .............................................................................. IX 6.2. SECURITy........................................................................................................................ IX 6.3. MANAGEMENT. ................................................................................................................ X SECTION 7. MANAGEMENT OF LEASEHOLD AND LICENSED SPACE.................... X 7.1. MANAGEMENT OF LEASEHOLD SPACE AND LICENSED SPACE.......................................... X 7.2. GENERAL DUTIES AND RESPONSIBILITIES REGARDING LEASES AND LICENSES. .............. X 7.3. LEASE AND LICENSE EXECUTION. .................. .................................................................. X 7.4. MANAGEMENT OF LEASES AND LICENSES. ...................................................................... X 7.5. ENFORCEMENT................................................................................................................. X 7.6. RULES AND REGULATIONS. ....... ...................................................................................... XI 7.7. BDC NOT BROKER! AGENT. ....................... ..................................................................... XI 7.8. OTHER STRUCTURES CONSTRUCTED IN PUBLIC AREAS. ................................................. XI 7.9. VENDING CART OPERATIONS.......................................................................................... XI 7.10. OUTDOOR DINING LICENSE AGREEMENTS. ................................................................. XI SECTION 8. ADVERTISING, PROMOTION, ENTERTAINMENT, AND SPECIAL EVENTS..................................................................................................................................... XII 8.1. BDC PROGRAMS.................... ........................................................................................ XII 8.2. FILMING AND SPECIAL EVENTS. ..................................................................................... XII 8.3. SIGNS AND BANNERS. .................................................................................................... XII 8.4. STREET PERFORMERS..................................................................................................... XII 8.5. FARMERS' MARKET. ................................................ ERROR! BOOKMARK NOT DEFINED. SECTION 9. REPORTING REQUIREMENTS. ................................................................. XII 9 .1. ESTABLISHMENT OF WORK PLAN. ............... ........ .......................................................... XII 9 .2. ApPROVAL OF WORK PLAN... ........... .......................... ................................................... XIII 9.3. ANNUAL REpORT. ......................................................................................................... XIII 9.4. ANNUAL FINANCIAL REpORT. ....................................................................................... XIII - 1 - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Intetnet Files\OLK5\Bayside Services Agreement-Attachment A.doc 9.5. MISCELLANEOUS REpORTS AND INFORMATION. ............................................... ............ XIII SECTION 10. TERMINA TI 0 N. ........................................................................................... XIII 1 0.1. TERMINATION UPON DEFAULT. ................................... ............................................. XIII 1 0.2. TERMINATION WITHOUT CAUSE. .............................................................................. XIV 10.3. REVERSION OF FUNDS AND PROPERTY......................................................................XIV SECTION 11. AVAILABILITY OF CITY INFORMATION. ..........................................XIV SECTION 12. PURCHASING AND OTHER MONETARY OBLIGATIONS FOR OPERA TI ON OF THE DOWNTOWN. ................................................................................ XIV SECTI ON 13 . COMPENSATION. .........................................................................................XV 13.1. ANNUAL BUDGET. ..................................................................................................... XV 13.2. FILMING AND SPECIAL EVENT FEES. .......................................................................... XV SECTION 14. BDC OPERATING STANDARDS. ...............................................................XV 14.1. BY-LAWS. .......................................................................... ........................................ XV 14.2. NONDISCRIMINATION. .............................................................. ............. ...... ....... .... .... xv 14.3. ACCOUNTING PROCEDURES. .................................................................................... XVII SECTION 15. INSURANCE AND INDEMNIFICATION. .............................................. XVII 15.1. INSURANCE COVERAGE...................................................... ...................................... XVII 15.2. INDEMNIFICA TION. ............................................... ERROR! BOOKMARK NOT DEFINED. SECTION 16. MISCELLANEOUS. .................................................................................XX 16.1. ENTIRE AGREEMENT. ..................................................................................:.............. XX 16.2. DELEGATION AND ASSIGNMENT. ............................................................................... XX 16.3. NOTICES..................................................................................................................... XX 16.4. No INTEREST IN PROPERTY. ............................................. .......................................... XX 16.5. OTHER SERVICES. ..................................................................................................... XXI 16.6. ApPROVALS. ............................................................................................................. XXI 16.7. WAIVER. ................................................................................................................... XXI 16.8. GOVERNING LAW...................................................................................................... XXI 16.9. COMPLIANCE WITH ApPLICABLE LAW. ..................................................................... XXI -11- C\Documents and Settings\deena.mecham\Local Settings\Tempofmy Internet Files\OLK5\Bayside Services Agreement-Attachment A.doc SERVICES AGREEMENT This Services Agreement ("Agreement"), entered into this _ day of , 2004, by and between the CITY OF SANTA MONICA, a municipal corporation ("City"), and the BA YSIDE DISTRICT CORPORATION, a non-profit public benefit corporation ("BDC"), is made with reference to the following: R E C I TAL S: A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carryon its business as it is now being conducted under the Statutes of the State of California and the Charter of the City. B. The City seeks to create a strong and vibrant, pedestrian-oriented downtown in order to benefit its residents, customers, and visitors, contribute to the City's economic vitality, and create a community resource which will enhance the quality of life for Santa Monica residents. Toward that end, the City has invested public monies in streetscape and parking improvements, has established assessment districts to fund such improvements and the maintenance thereof, and has adopted various revitalization plans such as the Third Street Mall Specific Plan on August 12, 1986 as amended by the Bayside District Specific Plan on January 23, 1996 ("Bayside District Specific Plan"), and the Downtown Urban Design Plan adopted by City Council on July 22, 1997. C. The BDC has expertise in planning, implementing, sustaining and managing the revitalization goals of the City and has previously sponsored the successful preparation of the "Third Street Mall Specific Plan" as amended and restated by the Bayside District Specific Plan to provide a framework of strategies to revitalize the Bayside District. In furtherance of the goals recited in Recital "B" above, the City desires to use the expertise and services of the BDC to develop, implement, and maintain various programs for the enhanced maintenance, marketing and promotion to support the economic vitality, and provide for the public benefit ofthe entire area of Downtown as more specifically defined in Section 1.1 (a). This Agreement establishes broad guidelines for the BDC's implementation activities in furtherance of the goals and objectives of the Specific Plan and the Downtown Urban Design Plan approved by City on July 22, 1997, as those plans may be revised from time to time by the City. D. The City controls and operates public areas of that area of Santa Monica commonly called the Bayside District ("Bayside") as more specifically defined in Section 1.1 (a). The City recognizes and acknowledges that the Bayside and certain areas and structures adjacent to the Bayside are valuable resources of the City and the City desires to develop, protect and preserve the Bayside for the public benefit and convenience. In furtherance of such goals, the -111- C\Documents and Settings\deena.mecham\Local Settings\Temporary Intel11et Files\OLK5\Bayside Services Agreement-Attachment A doc City desires to use the expertise and services of the BDC to develop, implement and maintain various programs for the continued revitalization of the Bayside and Downtown. E. The City further controls and operates public areas of that area of Downtown as more specifically defined in Section 1.1 (b), in which the City has established a business improvement area pursuant to the provisions of the California Parking and Business Improvement Area Law of 1965. The City recognizes and acknowledges that the Downtown is a valuable resource of the City, and the City desires to develop, protect, revitalize, and preserve the Downtown for the public benefit and convenience. In furtherance of such goals, the parties desire to use the expertise and services of the BDC to develop, implement, and maintain various programs for the general promotion of retail trade activities in the Downtown area in a similar manner as set forth in the contract formerly entered into on June 24, 1998, between the City and the BDC for administration of funds collected under this business improvement area. F. The City further recognizes that in addition to the administration of such duties outlined above, the scope ofBDC's duties may be expanded to cover other duties and activities such as developing, maintaining, and revitalizing the Downtown as may be funded by the City or other agencies through various business improvement areas, assessment districts, or other sources of revenue, and that the BDC may accept such funding or contracts, provided that the purpose of these funds or contracts falls within the general purpose of the continued revitalization and promotion of the Downtown. G. City and BDC entered into that certain Services Agreement dated as of June 24, 1998 ("Prior Agreement"), for the purpose of managing certain functions and programs concerning Downtown. This Agreement is intended to supersede the Prior Agreement. Accordingly, upon the commencement of the term of this Agreement, the Prior Agreement shall terminate and be of no further force or effect. H. City and BDC recognize and acknowledge that the Bayside and Downtown are valuable assets of the City which should be developed, managed and maintained as a public resource. Accordingly, the City desires to assign certain responsibilities to BDC as set forth in this Agreement, and BDC desires to accept such responsibilities, upon the terms and conditions set forth herein. NOW, THEREFORE, it is mutually agreed by and between the parties as follows: - IV - C\Documents and Settings\deena.mecham\Local Settings\Temporary Intel11et Files\OLK5\Bayside Services Agreement-Attachment A.doc AGREEMENT SECTION 1. DEFINITIONS. 1.1. The following words, terms and phrases shall have the following meaning in this Agreement: a. "Bayside" means and refers to that certain area bounded by the center line of the following public streets: Wilshire Boulevard on the north, Fourth Court on the east, Broadway on the south and First Court on the west, and including all existing and future structures, fixtures, and improvements thereon. b. "Downtown" and "Downtown Santa Monica" means and refers to that certain area formerly known as the Central Business District, and defined as an area bounded on the northeasterly side by the center line of Seventh Street, the southeasterly side by the center line of the Santa Monica Freeway, the southwesterly side by the center line of Ocean Avenue, and the northwesterly side by a line 200 feet northwesterly of the center line of Wilshire Boulevard. This area includes the Bayside in its totality. The City has established a business improvement area in the Downtown pursuant to the provisions of the California Parking and Business Improvement Area Law of 1965 under Ordinance No. 725, adopted November 22, 1966, and amended by Ordinance No. 1228, adopted October 13, 1981. c. "The Downtown Urban Design Plan" means and refers to that certain plan adopted on July 22, 1997, by City Council, which is designed to create a strong and vibrant downtown as identified in both the Bayside Specific Plan and the City's General Plan. d. "Fiscal Year" means and refers to the operating year commencing on July 1 and ending on June 30. e. "Leasehold Space" and "Licensed Space" means and refers to those portions of the City-owned public parking structures and Public Areas ofthe Bayside which are leased or licensed by City to third parties. f. "Public Areas" means and refers to those portions of the Downtown located within the physical boundaries thereof which are controlled and operated by the City and made available for the general use, convenience or benefit of the public including, but not limited to, public rights of way, access roads, driveways, alleyways, public restrooms, public parking sites, decking, stairways, and other similar areas. g. "The Specific Plan" means and refers to that certain plan identified more specifically as the "Third Street Mall Specific Plan" adopted on August 12, 1986 by the City Council by Resolution Number 7284 (CCS), as amended by the Bayside District Specific Plan on January 23, 1996. - v- C\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLK5\Bayside Services Agreement-Attachment A.doc SECTION 2. TERM. 2.1. The initial term of this Agreement shall be for a period of three (3) calendar years ("Initial Term"), commencing upon the date that this Agreement is entered into between the parties and subject to renewal or earlier termination as provided herein. Prior to the expiration of the Initial Term, the City shall have an annual option to renew this Agreement for consecutive one (1) year periods ("Renewal Periods") on the same terms and conditions, which shall be subject to annual budgetary approval by the City Council. Exercise of the annual option may be made by the City giving written notice to the BDC at least thirty (30) days prior to expiration of the Initial Term or Renewal Period. This Agreement is subject to earlier termination by the BDC or the City pursuant to Section 10 of this Agreement. SECTION 3. ROLES AND RESPONSIBILITIES. 3.1. BDC Roles and Responsibilities. The BDC shall be dedicated to promoting the continued economic revitalization of the Downtown through the sponsorship, support and production of programs, projects and services that benefit Santa Monica residents, Downtown merchants, property owners, customers and visitors. Without limiting the generality of the foregoing, and to the extent these duties are funded by the various business improvement areas, contracts, and other sources of funding received, the BDC shall be responsible for: a. Organizing, advising, and/or conducting marketing and advertising campaigns and concierge programs for the benefit of the Downtown; b. Organizing, advising, and/or conducting promotions and special events that attract and benefit local residents, customers, and visitors to the Downtown; c. Assisting the City in helping to coordinate the provision of supplemental maintenance and repair activities for the streetscape, public areas and other public improvements in the Downtown; d. Providing advice and recommendations to the City regarding long-term planning and zoning issues, preferred retail mix, streetscape and capital improvement projects, public parking projects, signage, specific discretionary planning and zoning cases, and developmental strategies in order to enhance the economic vitality of the Downtown: e. Assisting new businesses by providing real estate and other economic information, identifying sites, and providing information about the development process. f. Providing advice to the City about the management of a Downtown vending cart license program; g. Advising the City on operational issues related to the Downtown on City's request, from time to time; - VI- C\Documents and Settings\deena,mecham\Local Settings\Temporary lntemet Files\OLK5\Bayside Services Agreement-Attachment A.doc h. Organizing and facilitating filming and special events in the Downtown; 1. Organizing and managing a street performer monitoring program in the Bayside; j. Advising merchants, property owners, and others having a business interest in the Downtown on common matters of interest; k. Serving as a liaison with City on behalf of merchants, property owners, and the general public on issues affecting the continued vitality of the Downtown; 1. Providing information and cooperating with other local governments and professional organizations regarding development or current operations of the Downtown; m. Upon request of merchants, property owners, or residents within the Downtown, making recommendations to the City about additional services needed in the Downtown and methods for funding, that are not provided for by the assessment districts and business improvement areas in place as of the date of this contract; and n. Administering or providing services and activities for the Downtown as set forth in the approved Work Plan pursuant to Sections 9.1 and 9.2, below. The expected level of service to be provided within the Bayside, the Downtown, will be defined annually in the Work Plan as further described in Section 9, below. The BDC shall have no obligation to provide services to any area outside of the Downtown area except as specifically requested by or approved by the City in writing. 3.2. The City's Roles and Responsibilities. The City shall support the BDC in its stated role and responsibilities, and shall be responsible for: a. Maintenance of public areas, capital improvements in public areas, and other municipal services; b. Funding of approved projects and programs for the Downtown, in such amounts as the City in it sole discretion determines necessary and appropriate; c. Management of capital projects; d. Review of governmental permit applications and approval of appropriate applications; e. In its role as property manager, negotiating and administering the leases and licenses for the City's Leasehold and Licensed Space within the Downtown; - VB - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLK5\Bayside Services AgreementMAttachment Adoc f. Seeking advice from the BDC on those items identified in Section 3.1 above so that the City may avail itself of the knowledge and expertise ofBDC in its advisory role on behalf of the Downtown; g. Provide written notification to BDC when applications are sought for various private activities within the Downtown, including, but not limited to filming, special events, and for projects requiring Planning Commission review, Architectural Review Board applications, and certain construction-related projects which may have an impact on the Downtown, such as construction for exterior work, public works, and other street use projects or activities; and h. Payment to the BDC of all funds received pursuant to Ordinance No. 725 (CCS) establishing the Central Business District Business Improvement Area, save and except the sum of five percent (5%) thereof, which shall be retained by the City to cover costs of collection. SECTION 4. CENTRAL BUSINESS DISTRICT BUSINESS IMPROVEMENT AREA. 4.1. Administration of Central Business District Business Improvement Area. The BDC will and does hereby undertake responsibility for the general promotion of retail trade activities as specified by Section 3 of Ordinance No. 725 (CCS), and amended by Ordinance No. 1228, which established the Central Business District Business Improvement Area and as may be amended by subsequent ordinances. In this connection, the BDC shall seek the advice and recommendations of an advisory committee of business license holders in the area who are subject to the special business license tax commonly referred to the Central Business District Assessment. The advisory committee shall be appointed by the BDC. These promotional activities and their related costs shall be segregated in the Work Plan from other activities of the BDC. 4.2. City to Provide Funds. City will provide to BDC all funds received pursuant to said Ordinance No. 725 (CCS), as amended by Ordinance No. 1228, or as may be amended hereafter, save and except the sum of five percent (5%) thereof which shall be retained by City to cover costs of collection and administration. 4.3. Administration of Funds. The BDC agrees that all funds received from the City for implementation of this Section shall be subject to separate accounting and shall comply with the requirements of Section 14 of this Agreement. All funds received pursuant to this Section shall be exclusively expended for the general promotion of retail trade activities which benefit the entire Downtown, save and except the sum of 20% thereof, which shall be retained by the BDC for administrative overhead. The BDC shall render a full and accurate accounting for the expenditures periodically, but not less than semi-annually. The BDC shall be liable to the City for any and all expenditure of funds contrary to this Agreement. - V111 - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Inte111et Files\OLK5\Bayside Services Agreement-Attachment Adoc SECTION 5. CONSTRUCTION PROJECTS. 5.1. Downtown Urban Design Plan. The BDC may gather public input and make recommendations to the City on the design and implementation of the Downtown Urban Design Plan. 5.2. Capital Improvement Projects. The BDC may make recommendations to the City for capital improvements to be constructed in the Downtown. SECTION 6. MAINTENANCE AND MANAGEMENT OF PUBLIC AREAS. 6.1. General Maintenance Matters. The BDC shall report to the City any maintenance and repair problems falling within the City's jurisdiction which BDC becomes aware of or observes. The City shall undertake any regular maintenance and repair work it deems necessary at its discretion. The City shall undertake to advise the BDC, where possible, of any non-routine maintenance projects so that the BDC may assist in the coordination of such proj ects with the day-to-day operation of the Downtown. The BDC may directly provide supplemental maintenance services throughout the Downtown to the extent funded by City or other revenue sources for this purpose. Such additional maintenance services shall be coordinated with City to avoid operational conflicts with City maintenance services. The BDC may retain vendors or contractors for such supplemental maintenance services. 6.2. Security. The BDC shall advise the City with respect to any safety or security issues within the Downtown. The BDC may directly provide street performer monitors and concierge services for the benefit of Downtown visitors to the extent funded by City or other revenue sources for these purposes. Such street performer monitors and concierge services shall be coordinated with the City to avoid operational conflicts with other City public safety services. During special events, the BDC may also hire personnel to serve as ushers or monitors with prior written approval of the Police Department of City. Such ushers or monitors may be in uniform and carry radio communication equipment, but shall not carry weapons of any type, and shall not hold themselves out to be agents or employees of the City, nor wear uniforms which might give such impression. - IX - C\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLK5\Bayside Services Agreement-Attachment A.doc 6.3. Management. BDC shall assist in and make recommendations to City for the day-to-day management, operation and programming of the Public Areas. SECTION 7. MANAGEMENT OF LEASEHOLD AND LICENSED SPACE. 7.1. Management of Leasehold Space and Licensed Space. BDC may advise the City regarding uses and operations of prospective or existing tenant or licensees in Leasehold Space or License Space. All recommendations from BDC to the City on leases and licenses shall follow the guidelines set forth in the Specific Plan, the Downtown Urban Design Plan, and Leasing Guidelines approved by the BDC and City. Upon finalization of any agreement, the BDC shall advise and assist the tenant and the City with any future leasing issues as they arise. 7.2. General Duties and Responsibilities Regarding Leases and Licenses. BDC may advise the City regarding recruitment of new tenants for any available Leasehold space or License space within Bayside. BDC may assist the City on an as-needed basis in the monitoring of conditions of the lease or license. As requested by the City, BDC may serve as a liaison between the City and the tenants and licensees with respect to resolution of disputes. 7.3. Lease and License Execution. City shall review with BDC the uses, terms and conditions of any new or amended lease or license for any City-owned property or Public Areas within the Downtown. Upon finalization of the drafting of any new or amended lease or license for any City-owned property or Public Areas within the Downtown, all leases and licenses shall be entered into by the City pursuant to the execution procedures set forth in Santa Monica Municipal Code 92.32.030 et seq. 7.4. Management of Leases and Licenses. The City shall maintain the original signed leases and licenses in the Clerk's Office with duplicate originals forwarded to the BDC. 7.5. Enforcement. City shall have complete authority and responsibility in the enforcement of all leases and licenses in the Downtown. Such enforcement shall include, but not be limited to, collection of rental amounts owed to the City, enforcement of other lease or license requirements, declarations of any default, termination, and bringing or defending any litigation arising from a lease or license dispute. - x- C\Documents and Settings\deena.mecham\Local Settings\Temporary Inte11let Files\OLK5\Bayside Services Agreement-Attachment Adoc 7.6. Rules and Regulations. From time to time, the BDC may recommend to the City such rules and regulations or such revisions to Leasing Guidelines with respect to the Leasehold Space and Licensed Space as will provide for the orderly operation of the Bayside consistent with the Work Plan, Specific Plan, and this Agreement, and which will provide for a harmonious relationship between tenants, licensees, City, and BDC. 7.7. BDC Not Broker/Agent. It is specifically understood and agreed that BDC is not acting as a real estate broker or agent. BDC's relationship with City is that of an advisor, planner, and facilitator, and not that of a property manager or any other party who performs any service for which a real estate broker's or salesperson's license is required pursuant to the California Business and Professions Code. 7.8. Other Structures Constructed in Public Areas. Neither the BDC nor any private person or entity shall be entitled to erect structures or improvements on the Public Areas with the exception of tenant or licensee improvements authorized pursuant to a City approved lease or license agreement pertaining to the Leasehold Space or Licensed Space. No alterations may be made to any City-constructed Leasehold Spaces, including the retail pavilion structures on the Third Street Promenade without City's prior written approval. 7.9. Vending Cart Operations. BDC may advise and assist City in the management of the vending cart operations in the Downtown, including vending cart operations authorized on the Third Street Promenade and other Downtown vending cart activities authorized under S.M.M.C. Section 6.36.070, vending cart leasing guidelines, if any, and as amended, and agreements approved by the City. City may, at its sole discretion, authorize BDC to directly manage such vending cart operations as the designated Administrator. 7.10. Outdoor Dining License Agreements. The City, through approved License Agreements, may allow licensees to operate outdoor dining areas in the public right-of-way at certain locations within the Downtown in accordance with the Bayside District Specific Plan and other City ordinances. City shall advise BDC of these outdoor license agreements and seek BDC's input. At City's request, BDC may monitor performance of outdoor dining in accordance with the License Agreement. - Xl - C\Documents and Settings\deena.mecham\Local Settings\Temporary Intemet Files\OLK5\Bayside Services Agreement-Attachment Adoc SECTION 8. ADVERTISING, PROMOTION, ENTERTAINMENT, AND SPECIAL EVENTS. 8.1. BDC Programs. The BDC shall be responsible for development and implementation of various advertising, promotional, entertainment, and special event programs which will enhance the pedestrian enjoyment, commercial operation and aesthetic quality of the Downtown, as well as support and enhance the Downtown's commercial, retail and entertainment qualities. 8.2. Filming and Special Events. BDC shall facilitate filming and special event activities in the Downtown. Such filming and special event activities shall be in accordance with City's Community Event Management Plan or other such special event regulations as the City may, from time to time, adopt and shall not be amended without prior written approval of City. The BDC shall establish a schedule of commercially reasonable fees and charges for filming and special events, subject to approval by the City. The City shall consult and coordinate with BDC prior to selecting the Downtown as a venue for a special event, and shall provide BDC with at least thirty (30) days' prior written notice of any such event. 8.3. Signs and Banners. The BDC shall also have the right and authority to display signs or banners or other similar items, as provided in the Specific Plan and in compliance with applicable law, to advertise promotional programs or otherwise generally to promote the Downtown. Any such signs or banners shall be subject to all applicable City ordinances, laws, rules and regulations. The BDC shall have authority to approve all banners installed on banner lines within the Bayside. 8.4. Street Performers. BDC shall advise and make recommendations to City regarding street performers in the Bayside. Such advice and assistance may pertain to the promulgation of regulations governing time, place and manner restrictions for street performers, the administration of street performer regulatory programs, the administration of street performer monitor programs, and enforcement of such street performer regulations that the City may, from time to time, adopt. SECTION 9. REPORTING REQUIREMENTS. 9.1. Establishment of Work Plan. The BDC shall prepare an annual operational, programmatic and development plan (known as the "Work Plan") for implementation of the BDC roles and responsibilities set forth in Section 3 of this Agreement. Such Work Plan shall describe in detail the activities and services to be performed by the BDC, with corresponding expenditure and revenue budget. These - Xll - C\Documents and Settings\deena.mecham\Local Settings\Temporary Intemet Files\OLK5\Bayside Services Agreement-Attachment Adoc programs shall take into account the different funding sources anticipated, and may change from year to year. 9.2. Approval of Work Plan. At least ninety (90) days prior to the commencement of each fiscal year, the BDC shall prepare and submit a proposed Work Plan to the City for the City's approval, together with the BDC budget proposal pursuant to Section 13.1 of this Agreement. The approved Work Plan shall be consistent with the annual BDC budget as adopted by the City Council. BDC may submit to City proposed modifications of the Work Plan as may be necessary from time to time due to changes in circumstances or conditions. 9.3. Annual Report. The BDC shall prepare an Annual Report to City within ninety (90) days of the end of City's fiscal year. The Arumal Report shall include a status discussion concerning (i) the operation of the Downtown and Bayside; (ii) the various programs conducted by the BDC in connection with the Downtown and this Agreement, including reports concerning programs and uses of funds from any business improvement area from which the BDC receives funding such as the CBD; (iii) the accomplishment of objectives contained in the prior year's Work Plan; and (iv) any other matters connected with the Downtown or within the BDC's knowledge which have a material impact on the Downtown or the purposes or performance of this Agreement. 9.4. Annual Financial Report. An audited annual financial report shall be prepared by BDC in such form as required by the City's Director of Finance and shall be submitted within ninety (90) days of the end of BDC's fiscal year. 9.5. Miscellaneous Reports and Information. BDC shall deliver to City copies of all notices, agendas, and minutes ofBDC's Board of Directors meetings, quarterly financial reports of expenditures, annual reports of all programs and promotional activities, and any other information requested by City promptly upon request. In addition, the BDC shall prepare, from time to time, reports on such other matters relating to its responsibilities as City may reasonably request. SECTION 10. TERMINATION. 10.1. Termination Upon Default. In the event the BDC fails or refuses to perform any of its obligations hereunder, at the time and in the manner required by this Agreement, the City shall provide BDC with written notice of default and the steps necessary to cure such default. BDC shall cure such default within thirty (30) days from the date of written notice from the City. If, however, the default cannot reasonably be cured within said thirty (30) days, the City may extend the time for cure. - Xl11 - C:\Documents and Settings\deena.mecham\LocaJ Settings\Ternpormy lntemet Files\OLK5\Bayside Services Agreement-Attachment A.doc In the event BDC fails to cure in a timely manner, the City may exercise any remedies available under law or equity, including but not limited to: (a) Terminate this Agreement immediately by giving the BDC written notice thereof. (b) budget. City may take steps to cure the default and charge the cost thereof against BDC's Exercise of either of the above remedies by City shall in no way limit City's exercise of any other remedies existing at law or in equity. 10.2. Termination Without Cause. Either party may terminate this Agreement without cause at anytime during the term of the Agreement upon six (6) months' written notice to the other party. 10.3. Reversion of Funds and Property. Upon termination of this Agreement, BDC shall immediately convey to City all unspent funds within BDC's possession or control, whether such funds were originally from City or from other sources, together with an accounting of all financial obligations ofBDC at the time of termination. All furniture, equipment and supplies, and all other assets of BDC, shall revert to the City at the termination of this Agreement. SECTION 11. AVAILABILITY OF CITY INFORMATION. Upon reasonable notice, the City will make available to the BDC all public documents at its disposal reasonably required to fulfill the purposes and intent of this Agreement, including census data, property ownership records, copies of maps, studies and professional consultant and City staff reports relevant to the Downtown. In addition, City shall make available to the BDC planning and marketing studies and economic analyses which affect the Downtown. BDC shall have access to public records regarding any proposed development in the Downtown, or any development which would restrict vehicular or pedestrian access to the Downtown or otherwise materially affect the operation or management of the Downtown. Additionally, the City shall, upon reasonable notice, make available to the BDC non-confidential information concerning costs and revenues attributable to Downtown area facilities and programs available to BDC. SECTION 12. PURCHASING AND OTHER MONETARY OBLIGATIONS FOR OPERATION OF THE DOWNTOWN. The BDC shall be solely responsible for costs and expenses incurred in connection with the satisfaction of its obligations under this Agreement, including, but not limited to, salaries, insurance and payroll taxes for its employees. BDC shall also bear all costs for programmatic activities identified in the annual Work Plan and annual Budget, including, but not limited to, marketing, promotions and special events. However, the BDC shall not be responsible for payment of any property taxes, insurance, assessments or other costs associated with the - XIV - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Intemet Files\OLK5\Bayside Services Agreement-Attachment A.doc ownership or operation of real property or the Public Areas of the Downtown, except as may be specifically required to be paid by the BDC pursuant to this Agreement or its annual budget, as approved by the City. SECTION 13. COMPENSATION. 13.1. Annual Budget. City shall fund the BDC each fiscal year through its normal budgetary processes as necessary to perform services pursuant to this Agreement. BDC shall submit a budget request at least ninety (90) days prior to commencement of each fiscal year, consistent with the Work Plan, allowing City staff adequate time to incorporate such request through City's normal budget process. The BDC budget shall set forth all of the BDC's monetary obligations and sources of funds and shall itemize all expenses in performance of this Agreement to the extent reasonably practicable. Nothing herein shall be deemed to obligate the City to fund any specific amount of money for BDC. Consistent with the requirements of local, state and federal laws, as well as BDC's conflict of interest requirements, nothing in this Agreement shall otherwise preclude the BDC from accepting contracts or funding from various business improvement areas, assessment districts, or other sources of revenue. BDC may accept such funding or contracts, provided that the purpose of these funds or contracts falls within the general purpose of the continued revitalization and promotion of the Downtown. City shall also provide to BDC all funds received by City pursuant to Ordinance 725, as amended, as further specified in Section 4.2 of this Agreement. 13.2. Filming and Special Event Fees. BDC shall have the right and authority to collect filming and special event fees in accordance with a fee schedule established by BDC and approved by the City for filming and special events occurring Downtown. BDC shall provide the City with an accounting of all filming and special event fees collected as part of the annual BDC budget. SECTION 14. BDC OPERATING STANDARDS. 14.1. By-Laws. BDC has adopted By-laws approved by City governing its operations, including procedures for amendment of said By-laws. These By-laws may not be amended or repealed without prior written approval of City. A copy of the By-laws is on file in the offices ofBDC. 14.2. Nondiscrimination. BDC certifies and agrees that it will not discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, sex, marital status, - xv- C\Documents and Settings\deena.mecham\Local Settings\Temporruy Intemet FiJes\OLK5\Bayside Services Agreement-Attachment A.doc age, sexual orientation, disability or condition of having AIDS, in accordance with the requirements of local, state and federal law. BDC also agrees that it will provide equal opportunity to all employees and applicants without regard to race, color, religion, national origin, ancestry, sex, marital status, age, sexual orientation, disability or condition of having AIDS, in accordance with requirements oflocal, state and federal law. Such shall include, but not be limited to, the following: a. Employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation; and b. Selection for training, including interns and apprentices. BDC agrees to post notices setting forth the provisions of this Section in conspicuous places in each ofBDC's facilities providing services hereunder, available and open to employees and applicants for employment. BDC shall state, in all solicitations or advertisements for employees placed by or on behalf of BDC, that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, ancestry, sex, marital status, age, sexual orientation, disability or condition of having A.I.D.S., in accordance with requirements oflocal, state and federal law . In accordance with applicable state and federal law, BDC shall allow duly authorized county, state, and federal representatives access to its employment records during regular business hours in order to verify compliance with the nondiscrimination provisions of this Section. BDC shall provide such other information and records as such representatives may require in order to verify compliance with the nondiscrimination provisions of this Section. If City finds that any of the provisions of this Section have been violated, the same shall constitute a material breach of this Agreement upon which City may determine to cancel, terminate, or suspend this Agreement. While City reserves the right to determine independently that the nondiscrimination provisions of this Agreement have been violated, a determination by the California Fair Employment and Housing Commission or the Federal Equal Employment Opportunity Commission that BDC has violated State and Federal nondiscrimination laws shall constitute a finding by City that BDC has violated the nondiscrimination provisions of this Agreement. BDC will provide the City with a copy of its personnel policies manual which sets forth the policies governing transactions between employees and prospective employees and the BDC relating to employment benefits and other personnel-related services. BDC shall not discrimination in any manner in providing the services set forth in this Agreement. All contracts or agreements entered into by BDC shall comply with Title VI of the Civil Rights Act of 1964 (Public Law 88 - 352), as applicable. Any contracts awarded by BDC shall comply with the terms of this Section. - XVI - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLK5\Bayside Services Agreement-Attachment A. doc 14.3. Accounting Procedures. BDC shall maintain its books and records in accordance with generally accepted accounting principles (GAAP), and in such form as will facilitate accurate preparation of necessary fiscal reports and in such form as is otherwise acceptable to the City. BDC may retain the services of a certified public accountant for assistance in this function. City shall have access to all ofBDC's books, records, and accounts, including those records kept pursuant to Section 4.3 of this Agreement, and shall have the right to audit such books, records and accounts upon reasonable notice and during normal working hours. SECTION 15. INSURANCE AND INDEMNIFICATION. 15.1. Insurance Coverage. BDC shall procure and maintain for the duration of this Agreement the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with BDC's services performed under this Agreement. A. Minimum Scope and Limits of Insurance. 1. Commercial General Liability - One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. 2. Non-Profit Directors and Officers Liability - One million dollars ($1,000,000) per occurrence/$1 ,000,000 aggregate. 3. Workers' Compensation and Employer's Liability -limits as required by the Labor Code of the State of Cali fomi a and Employer's Liability limits of one million dollars ($1,000,000) per accident. 4. Crime Coverage - a comprehensive crime coverage policy with a minimum limit of one hundred thousand dollars ($100,000). Coverage to include (i) employee dishonesty (to include employees and board members), (ii) monies and securities coverage both inside and outside premises, and (iii) depositors forgery coverage. 5. Property Insurance - "All Risk" policy in an amount no less than 100% full replacement value ofBDC's contents, inventory and equipment. 6. Non-Owned and Hired Auto Liability - One million dollars ($1,000,000) per occurrence for each accident. B. Other Insurance Provisions (General and Auto Liability Insurance Only) - XVll - C:\Documents and Settings\deena.mecham\Local Settings\Temporary [ntemet Files\OLK5\Bayside Services Agreement-Attachment Adoc The City of Santa Monica, Members of its City Council, Boards and commissions, officers, agents, employees, and volunteers are to be covered as additional insured's as respects liability arising from services provided by BDC under this Agreement. c. All Coverages 1. BDC's insurance coverage shall be primary insurance as respects the City of Santa Monica, members of its City Council, boards and commissions, officers, agents, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees, and volunteers shall be excess of BDC' s insurance and shall not contribute with it. 2. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days prior written notice by mail has been given to the City. D. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. E. Waiver of Subrogation The Insurer (for liability and property and workers' compensation insurance only) shall agree to waive all rights of subrogation against the City, its officers, officials, agents, employees and volunteers for losses arising from activities and operations ofBDC. F. Acceptability of Coverage Insurance is to be placed with insurers admitted to do business in the State of California. If non-admitted insurers are used, they must have an A.M. Best's rating of A:6 or higher. G. Verification of Coverage BDC shall furnish the City with certificates of insurance required by this clause. The certificates are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms provided by the City and are to be received and approved by the City before the Agreement is effective. If the insurance company will not use the City forms, BDC may provide as an alternative, complete copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. H. Modifications to Insurance Requirements The City's Risk Manager must approve any modifications to the scope or amount of insurance required in this section, in writing and in advance. - XVlll - C\Documents and Settings\deena.mecham\Loca\ Settings\Temporary internet Files\OLK5\Bayside Services Agreement-Attachment A.doc I. Notification to Risk Manager In the event the BDC is unable to maintain the minimum insurance required by this Section 15.1 (including, without limitation, the requirement to obtain a waiver of subrogation for liability insurance) due to the unavailability of such insurance (or waiver) or due to significant cost of such insurance (or waiver), the BDC shall notify the City's Risk Manager in writing as soon as feasibly possible upon notice from its insurance carrier and prior to the expiration of the existing coverage. The City shall have the option, but no obligation, to procure replacement coverage. Provided that the BDC complies with this subsection, the failure to maintain the required insurance shall not constitute a default ofthis Agreement. 15.2 Third Party Indemnity Except as otherwise approved in writing by the City, BDC shall require that all written contracts that it enters into require that such third party indemnify and save City, its City Council, its boards and commissions, its agents, representatives, employees, and lenders designated by City, BDC and their respective officers, directors, agents, employees, and affiliates harmless from, and defend them against, all liabilities, losses and claims, and reimburse them for all expenses they incur (including the costs of litigation and reasonable attorneys' fees) on account of personal injury or death to persons and damage to property which occurs in the Downtown, to the extent caused by the misconduct or wrongful or negligent act or omission of such independent contractor, or employees or agents of such independent contractor, arising from or related to the performance of work or services it performs on or about the Downtown, or from such contractor's property. Each independent contractor that BDC employs hereunder shall pay for and defend any and all suits or actions threatened or instituted against BDC or City, its City Council, its boards and commissions, its agents, representatives, employees, and its lenders designated by City, and shall pay all reasonable attorneys' fees, litigation costs and all other expenses in connection therewith, and shall promptly discharge any judgments arising therefrom. These conditions shall also apply to any work or operations subcontracted by such contractors. Such provisions shall expressly survive the expiration of any contracts in which they are contained. 15.3. Indemnity by City. It is understood between the parties that BDC insurance set forth in Section 15.1, above, shall be the primary insurance in connection with the Indemnified Claims defined below. To the extent that BDC insurance does not cover any such Indemnified Claim, the City agrees to indemnify, save, protect, defend and hold harmless BDC and its officers, directors, agents and employees (collectively, the "BDC Indemnitees") from any liability, claim, action, proceeding, loss, damage, cost, expense, or injury to persons or property (collectively, "Indemnified Claim") arising directly or indirectly from or in any manner related to this Agreement or the performance thereof. BDC shall promptly notify the City of any Indemnified Claim and cooperate with the City in connection with the defense of such Indemnified Claim. The BDC Indemnitees must first seek coverage for any defense and indemnity with respect to the Indemnified Claim from BDC's insurer. The City's indemnity obligations set forth in this Section 15.3 shall be over and above all valid and collectible insurance by the BDC. To the extent the indemnity obligations set forth - XIX - C:\Documents and Settings\deena.mecham\Local Settings\Temporary Inte1l1et Files\OLK5\Bayside Services Agreement-Attachment A.doc in this Section 15.3 apply, the City shall defend the BDC Indemnitees from such Indemnified Claim, at the City's sole cost and expense through the Santa Monica City Attorney's Office, subject to any reservation of rights under this Agreement. Notwithstanding the foregoing, the City shall not be required to indemnify any BDC Indemnitee against any Indemnified Claim caused by the gross negligence or willful misconduct on the part of such BDC Indemnitee. SECTION 16. MISCELLANEOUS. 16.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto and no variance or modification thereof shall be valid or enforceable, except pursuant to a supplemental written instrument executed by both City and BDC. 16.2. Delegation and Assignment. BDC shall not delegate or assign all or any portion of its rights or duties under this Agreement to any person, firm, or entity, except as may be specifically permitted by this Agreement. 16.3. Notices. All notices, demands, requests, consents, or approvals as may be required or permitted to be given under this Agreement shall be in writing and shall be sent via mail, or hand delivered, to the parties at the addresses set forth below. To BDC: Bayside District Corporation Attention: Executive Director 1351 Third Street Promenade, Suite 301 Santa Monica, California 90401 To City: City of Santa Monica Resource Management Department Attention: Director of Resource Management 3223 Donald Douglas Loop South Santa Monica, California 90405 16.4. No Interest in Property. This Agreement shall not be deemed at any time to be an interest in real property or a lien of any nature against the Downtown, the Third Street Promenade, or the real property upon which the Third St. Promenade improvements are erected. This clause shall be self-operative and no further instrument of subordination shall be required. The relationship of the City and BDC shall not be that of a partnership, joint ventures, or otherwise of co-owners. - xx- C:\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLK5\Bayside Services Agreement-Attachment A.doc 16.5. Other Services. In addition to the services specifically set forth in this Agreement, BDC shall perform from time to time such other services necessary or desirable for the operation, management, restoration, and continued revitalization of the Downtown as the City shall reasonably request and may be practicable within the BDC annual budget. 16.6. Approvals. All approvals requested or required to be given by either party hereto, unless a specific time frame is set forth in this Agreement, shall be given within thirty (30) days following delivery ofthe request for approval. All approvals shall be in writing. 16.7. Waiver. A waiver by City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach ofthe same or any other term, covenant, or condition contained herein whether of the same or a different character. 16.8. Governing Law. This Agreement has been made and shall be construed and interpreted in accordance with the laws of the State of California. - XXI - C\Documents and Settings\deena.mecham\Local Settings\Temporary Internet Files\OLKS\Bayside Services Agreement-Attachment A.doc 16.9. Compliance with Applicable Law. BDC shall perform all of the services set forth in this Agreement in complete accordance with all applicable municipal, state or federal laws, ordinances, rules and regulations. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. CITY OF SANTA MONICA, a municipal corporation By: SUSAN E. McCARTHY City Manager APPROVED AS TO FORM: MARSHA JONES MOUTRIE City Attorney ATTEST: MARIA STEWART City Clerk BAYSIDE DISTRICT CORPORATION, a non-profit public benefit corporation By: WILLIAM TUCKER, Chair - XXll - C\Documents and Settings\deena.mecham\Local Settings\Temponuy Internet Fi1es\OLK5\Bayside Services Agreement-Attachment A. doc Bayside District Corporation Operations and Marketing Plan and Budget Fiscal Year 2004/2005 Table of Contents Bayside District Corporation Mission Statement Roles and Responsibilities Executive Summary Operations Marketing, Promotions and Public Relations Venue and Performance Management Staff and Board of Directors Budget Page 2 3 4 5 9 14 16 Bayside District Corporation Mission Statement On behalf of the City of Santa Monica, to promote economic stability, growth and community life within the Bayside District through responsible planning, development, management, and coordination of programs, projects and services designed to benefit the community as a whole; which includes the District's businesses, property owners, visitors and residents. -2- Bayside District Corporation Roles and Responsibilities The Bayside District Corporation (BDC) is responsible for promoting the continued economic revitalization of the Downtown and for managing programs, projects and services that benefit Santa Monica residents, Downtown merchants, property owners, customers and visitors. This includes: . Organizing, advising and/or conducting marketing and advertising campaigns for the benefit of the Downtown; . Organizing, advising and/or conducting promotions and special events that attract and benefit local residents, customers and visitors to the Downtown; . Advising the City regarding long-term planning and zoning issues, retail mix, streetscape and capital improvement projects, public parking projects, signage, specific discretionary planning and zoning cases, and developmental strategies in order to enhance the economic vitality of the Downtown to benefit local residents and continue as a community resource; . Assisting in the identification, location and development of new businesses III the Downtown that will enhance its economic vitality; . Advising the City on operational issues involved in management of the Downtown, including, but not limited to, leasing and management of City-owned property, maintenance and security concerns, parking operations, vending cart operations, outdoor dining and the City's Farmers' Market program; . Organizing and facilitating filming and special events in the Downtown; . Advising merchants, property owners and others with business interests in the Downtown on private property issues, including, but not limited to, retail mix, merchandising, maintenance and security concerns; . Serving as an advocate on behalf of merchants, property owners, tenants leasing City- owned real estate and the general public on issues affecting the continued vitality of the Downtown; . Serving as liaison with other local governments and professional organizations seeking information on development or current operations of the Downtown; . Upon request of merchants, property owners or residents with the Downtown, advocating various means of providing funding and implementation of additional measures of service in the Downtown that are not covered by the assessment districts and business improvement areas in place as of June 24, 1998; . Administering or providing enhanced services and other activities for the Downtown as determined by the BDC staff and Board of Directors consistent with the Working Plan. -3- Executive Summary Overview Despite a tumultuous economy over the past several years, Downtown Santa Monica has continued a steady and healthy growth. More and more private investment has occurred on Second and Fourth streets, and the influx of housing units in the area has bolstered the livability of the area as a whole. BDC is dedicated to providing a comprehensive maintenance and operational program in partnership with the city of Santa Monica. Struggling with drastically reduced budget has made this effort extremely challenging. Routine maintenance continues, but replacement of larger scale items such as light poles, pavement and directories remains unfunded. Marketing and promotional efforts have been streamlined and updated to make the most of the marketing funds available. As Winterlit holiday promotions enter our third year, we will focus on keeping the activities and decor fresh and new. Extra emphasis will be placed on far-reaching public relations that proves to be fruitful and cost effective. The coordinated street performer and venue management efforts continue to make a substantial, positive impact on the street entertainment for both visitors and performers alike. The Board set its priorities last fall, and will remain dedicated to these main issues as the year progresses: 1. Cleanliness, Safety and Vagrancy 2. Parking and Traffic Issues 3. Mix of Uses in the District 4. Marketing and Promotions. As pressure from existing and planned competition rises, and as our budget remains flat, we will strive to keep to our mission and find creative and alternative methods for financing desperately needed improvements to the Downtown. -4- Operations Overview The BDC and the Maintenance Department's aim is to ensure that the District's levels of maintenance and customer service are met throughout the Downtown district. This goal must be consistent throughout all public facilities for this objective to be met. The BDC Operations Department works in conjunction with these City of Santa Monica maintenance departments to meet our objective. BDC generates work requests for City departments, including Electrical, Plumbing, Open Space Management, Paint Shop and the Carpenter Shop. The BDC also works with the City in its management of vendors contracted to assist the City with maintenance needs. These include vendors for landscaping, vector control and Promenade fountain maintenance. The BDC Operations Department works with The City of Santa Monica Resource Management Division to make certain that targeted improvements and special maintenance projects are completed. This coordination consists of all project phases from conception to completion, including job initiation, qualification, bid requests and all other necessary steps. The BDC also assists the City on projects impacting the Downtown by issuing recommendations for monitoring or managing specific projects. Examples of these projects include the Downtown Transit Mall, the renovation of the 1400 Third Street Kiosk and the selection of a new Promenade fountain maintenance vendor, among other projects. The Operations Department is the chief liaison between all City-owned property and the tenants of these properties. BDC coordinates the repairs of these facilities, using both City departments and independent vendors, and provides guidance to these tenants in their relations with the City. The City and BDC also work together to process and enforce Outdoor Dining Agreements for the Third Street Promenade and the Downtown Transit Mall. Objectives . Create a strong Downtown brand that is recognizable throughout the District. . Make informed recommendations to the City and Bayside Board on major operations projects within the District. . Develop solid, dependable relationships with the City to ensure Bayside Operations Department effectiveness throughout the District in projects relating to maintenance, standards of cleanliness and all other District projects and daily tasks. . Advocate for all merchants and residents within the Downtown District. . Maintain a strict and timely schedule on all repeat projects to ensure the optimal effectiveness of the maintenance cycle. -5- Strate2ies BDC will maintain a healthy relationship with City staff and work in concert with the City to meet our objectives. We must meet the challenges of our environment and budget limitations and succeed in our goals of maintaining high standards of cleanliness, maintenance and customer servIce. Pro i ects The following projects are budgeted and managed through the Bayside District Corporation. . Tree Lights on Third Street Promenade - Twice a year (April, September) the trees on the Promenade are trimmed, and new lights are installed or refurbished. . Back-lit Promenade Directories - Twice each year the backlit directories and maps on the Promenade and in the parking structures are updated and replaced. In addition, replacements are installed for broken or damaged signs. We also perform routine maintenance on the lexan pieces that cover the directories. . Dolphin Change Program - Oversee cash pick-up and processing, as well as repairs to money collection boxes throughout Downtown. . Holiday Decor and Lighting Program - In 2003, the BDC re-installed the holiday decor for the Winterlit program and made some significant changes to the decor. In particular, the overhead lighting system employed over the entire Promenade in 2002 was not re-used in favor of additional tree canopy lighting. The old overhead lighting canopy was refurbished and used in limited fashion over the Santa Monica and Arizona intersections at the Promenade. The following projects are budgeted through the City of Santa Monica Resource Management Department. BDC works in conjunction with this Department to coordinate maintenance projects in the District. The Maintenance and Operations Department typically oversee these efforts. -6- Routine Maintenance Proiects Routine maintenance items are generally ongoing projects that are required to keep the District's high standards intact. Projects in this category may include, but are not limited to, the following: Kiosk cleaning Twice a year Concrete/dinosaurs chemically washed (environmentally sound) Twice year Bayside sidewalk deep cleaning Paint lamp poles and Promenade directories F our times a year Annually Kiosk door maintenance Tree light maintenance, Second and Fourth Annually / as needed Monthly Annually Monthly Decorative tree lights, Second and Fourth Kiosk window washing Awning cleaning, Parking Structure #5 Alley banner repair Twice a year As needed Vector management Monthly / as needed Deep cleaning of Second and Third Court alleys Annually Dinosaur repair As needed Parking structure sign maintenance As needed Deep cleaning of four crosswalks Four times a year Special Maintenance Proiects Special maintenance items are those projects that are longer lasting once repairs or replacement are completed. Several items on this list require immediate attention given the age of the Promenade. . Replacement of all Promenade trashcans. . Explore possibilities for solar power at Second and Fourth streets for tree lighting. . Manage Winterlit 2004 installation. . Paint all Promenade and Second and Third Court light poles and directories. . Replacement of Promenade overhead art banners. . Replacement of Promenade tree grates. . Replacement of Promenade grout (street). -7- Goals for Department . Succeed in addressing key capital improvement projects for the District. . Create a comprehensive capital improvement/replacement list that targets projects, identifies when they will be addressed and forecasts their financial impact in future budgets. · Improve the communicationltimelines for all projects and maintenance occurring within the Downtown. . Create a system that outlines all BDC-generated work requests and follows and updates them from conception to completion. . Create a database that outlines all non-Bayside projects and follows and updates them from conception to completion. . Improve the cleanliness of the Downtown parking structures by working with the City to institute a regular painting and maintenance program. . Continue to expand the BDC operational functions throughout the Downtown, as budget allows. . Increase the BDC budget through City of Santa Monica Resource Management Division. . Maintain the maintenance and cleanliness of the District. -8- Marketing, Promotions and Public Relations Overview The BDC Marketing Department strives to promote Third Street Promenade and Downtown Santa Monica as a world-renowned shopping and entertainment destination. Within this 30- block area, Downtown has many dining choices ranging from casual to elegant. The district is known for its great mix of retail shops and the abundance of entertainment options, including live theatre, clubs and movie theatres - all within walking distance. Obiective The primary objectives of Marketing are to drive local and visitor traffic to the District, provide information to visitors and the community and maintain relations with merchants. Stratef!ies In order to drive traffic to the area, Marketing will execute a combination of advertising, promotions, publicity campaigns and special events. We will continue to advertise the District on a regional and local level through display advertising and co-op campaigns. Special promotions will be created to encourage store/restaurant patronage. The Bayside Beat newsletter will be used to communicate the latest issues and programs to the community. Hot sheets will be provided to the media on a regular basis, and the downtownsm.com Web site will be updated on an ongoing basis. BDC will continue to produce events throughout the year that are beneficial to merchants and the community. Marketing also will secure other events that will enhance visitors' experiences. And in order to build relations with merchants, Marketing will perform weekly store visits. Marketinf! Campaif!n Advertising ... Cooperative (co-op) Co-op advertising opportunities are provided to merchants on a regular basis. BDC funds allow merchants to obtain advertising at a discounted rate. This is a valuable resource to businesses with limited advertising budgets. Co-op opportunities are available annually in the Santa Monica Official Visitors Guide and Los Angeles Magazine and periodically through The Argonaut. Branding BDC Marketing has created a fresh ad campaign that incorporates photos and vivid colors that resonate the ambiance of the area. Display advertising for this new campaign will be placed in monthly and annual publications, including: -9- Where Magazine (circ. 52,000) - a monthly publication targeted to tourists and distributed mostly in regional L.A. hotels. Santa Monica Official Visitors Guide (circ. 90,000) - the official guide that is distributed by the Santa Monica Convention and Visitors Bureau. City Map (circ. 500, 000) - a logo-based map distributed by the Santa Monica Convention and Visitors Bureau. Santa Monica Business - the annual publication of the Santa Monica Chamber of Commerce. Event Advertising BDC-produced events usually are advertised with regional and local papers such as the Santa Monica Daily Press, Santa Monica Mirror, etc. Events also are promoted through over-the- street banners, bus panel ads and through the BDC Web site. Online Advertising A Downtown Santa Monica Web button ad will continue on The Lookout/surfsantamonica.com. Promotions Marketing will continue to create promotions that benefit workers, visitors and merchants. These campaigns are a way to promote business in the District. We will launch the Privileged Visitor Card geared towards tourists and distributed at welcome centers and hotels. The Downtown Employee Discount Program continues to build. Occasionally, special promotions are created for conventions such as the American Film Market. It has been a constant challenge to promote merchants located outside of Third Street Promenade, but Marketing plans to expand the Around the Corner campaign. Around the Corner outdoor signs will be updated annually. Marketing will remain active in the Design Walk that was spearheaded by the new design district group. We also will promote progressive dining experiences through partnerships with SMCVB and by hosting concierge tours. And during the holiday season, Marketing will promote holiday window and storefront displays as part of the campaign. Web Site The official Web site URLs for Bayside District Corporation are www.downtownsm.com. www.thirdstreetpromenade.com and www.baysidedistrict.org. The Web site has been completely redesigned and streamlined to provide information geared towards visitors. Marketing will update event and business listings on an ongoing basis. In the Bayside District section, monthly meeting agendas, press releases and other information also will be updated regularly. Marketing will continue to develop the Web site with plans to add content on the free Downtown Santa Monica Visitor's Guide and the Dolphin Change Program. -10- Public Relations Bayside Beat The Bayside Beat newsletter is a monthly publication that provides a communications outlet for the BDC. Marketing will continue to coordinate stories, photos, design, printing and distribution of the newsletter including any advertising inserts. Current circulation is 2,000, of which 1,850 are mailed, with the balance distributed to local public outlets, such as the Santa Monica Library, Ken Edward Center and Senior Center. Media Coverage BDC continues to strengthen relations with local and regional media. Press releases and hot sheets will be furnished to the local and regional media for coverage on Downtown. Marketing also plans to work with City TV to create a package on the area. Main Library Construction Mitigation BDC will assist the City in mitigation and outreach for the redevelopment of the library construction on Sixth Street. It will be important to maintain communication with merchants and the community in the surrounding area. Public Information Team (PIT Crew) Marketing will represent BDC at City of Santa Monica PIT crew meetings. The meetings are held monthly and provide a roundtable exchange of information and updates from other City departments and districts. Merchant Relations Merchant relations will be developed via personal in-store VISIts, as well as via Email communications. This year we also will organize several general manager lunches to promote open discussions about issues and ideas for the district. Visitor Resources and Information Downtown Santa Monica and Third Street Promenade Visitor's Guide The Downtown Santa Monica and Third Street Promenade Visitor's Guide is a pocket-size resource listing businesses in the area as well as general direction and parking information. This year Marketing will expand the Visitor's Guide with the addition of a foldout map and visitors' card. The print run will be 100,000, with 70,000 distributed by Certified Folder to hotels and visitor centers, and the remaining 30,000 distributed by BDC. Outdoor Directories There are 12 outdoor directories located on Third Street Promenade. One panel features an orientation map with a business directory and general visitor information. The other panel features the Around the Corner campaign piece promoting businesses in the greater Downtown. Annually, marketing oversees the updating, production and installation ofthe outdoor directories. -11- Events BDC Productions Each year, BDC produces a number of events that are beneficial to the community. Marketing oversees the production and promotion of all BDC events and encourages participation from local merchants. Senior Day (May) Senior Day is co-sponsored by BDC and The Commission for the Senior Community. The event is free and draws approximately 300+ senior citizens to the Promenade. The program features entertainment, lunch, dancing and raffle prizes. Halloween Harvest (October) BDC provides free pony rides and a petting zoo for young children in the fall. We plan to expand the event to include arts and crafts. Winterlit Lighting Ceremony (November) BDC will produce the Third Annual Winterlit Lighting Ceremony to usher in the holiday shopping season. The event features an afternoon of family entertainment with a Surfing Santa and prizes. The evening ends with a "flip the switch" moment performed by a celebrity. Scrooge Event (first weekend in December) BDC will host the Fifth Annual Scrooge Event. The event centers on a Scrooge character that gives away prizes to unsuspecting shoppers. There is also an outdoor main stage featuring musical entertainment throughout the day. General Events Marketing fields hundreds of event requests and helps companies through the event permit process. Once an event is permitted, Marketing oversees the execution of the activity on the Promenade and communicates with Bayside Operations as well as City Police and Fire to ensure a safe event. Several events have become traditions, including the Santa Monica Chamber of Commerce Health Fair, Santa Monica Jaycees Car Show and the Knit Out and Crochet Event. Marketing will continue to encourage companies to hold their events in Downtown because it is beneficial for locals, visitors and merchants. Special Proiects Around the Corner BDC plans to expand the Around the Corner campaign to promote businesses in the greater Downtown area. In addition to the new outdoor signs, marketing will incorporate Around the Corner into ad campaigns. We will encourage more merchants and the community to participate in events such as the Design District Walk and the Holiday Window Contest. Shop Santa Monica Marketing continues to promote the Shop Santa Monica message. BDC assists the City by coordinating the production of street and parking garage banners, shopping bags and bus panels. -12- Santa Monica Marketing Group BDC has spearheaded quarterly meetings with other marketing colleagues in the city. All marketing representatives are welcomed and encouraged to participate in our discussions. The purpose of the Santa Monica Marketing Group is to create opportunities to market Santa Monica as a whole by pooling resources. We hope to make a greater impact on consumers and visitors so that they decide to shop and visit Santa Monica. Holiday 2004 The Marketing Department is actively planning Winter/it Celebration 2004. This year we will continue to develop partnerships in order to subsidize costs and help drive traffic to the Downtown during the holidays. Marketing will pursue the development of a Santa Monica Ice Rink helping to secure a Downtown location and working on cross-promotions with area businesses. We also plan on expanding the holiday window contest by involving more stores and adding a promotional pamphlet that will encourage store visits and community involvement. The holiday season is a very busy time of year, and many events will take place from November to December 2004. Below is a tentative schedule of events: . November 21 - Winterlit Lighting Ceremony... The Winterlit Lighting Celebration is the kick-off event for the holiday season. The event will include a celebrity, radio personalities, musical entertainment and children's entertainment. . December 5 - Skirball on the Promenade ... This will be the third year that Skirball Museum and Cultural Center hosts children's activities to celebrate Hanukah. . December 11 & 12 - Scrooge Weekend Event... BDC and partner Santa Monica Place will host the fifth annual event featuring Scrooge giving away prizes to shoppers. There also will be entertainment featuring theatrical plays, musicians and comedians. . Every Tuesday in December Winterlit Theatre ... Santa Monica Film Festival and BDC will produce the Second Annual Winterlit Theatre. Family friendly movies will be shown outdoors on the Promenade, and studios will provide giveaways. We plan to increase the production of Winterlit Theatre to incorporate cross-promotions with cart vendors and provide a comfortable environment for viewers. Goals for Department . Create more co-operative advertising opportunities for merchants, as budget allows. . Actively build relationships and communication with BDC merchants. . Develop and secure events that will enhance a positive visitor experience. . Send press releases and hot sheets to media for coverage. . Improve and update BDC Web site and marketing tools. . Expand the Around the Corner campaign to promote Bayside and Central Business District businesses. -13- Venue and Performance Management BDC's Venue and Performance Management is responsible for overseeing the Promenade, Transit Malls and central business district during high-impact times, traditionally Fridays through Sundays. This includes managing street performers and free speech activities, coordinating special events and promotions and responding to operational issues that occur during the course of the weekend. In carrying out the various responsibilities, the Venue Manager works with street performers, religious groups, nonprofit entities, marketing and public relations firms, film companies, production companies, event managers, the Santa Monica Police Department (SMPD), the Santa Monica City Attorney's Office and the Promenade's maintenance crew. One of the goals of the Venue Manager is to develop a positive environment for all parties involved in the area - performers, merchants, event operators and visitors alike. In cooperation with the SMPD, we assist in reporting and curtailing the unauthorized use of public space for filming, sales and promotions, graffiti and vandalism, for example. Objectives The four key objectives for Venue and Performance Management are to: . Maintain strong working relationships among BDC, the City of Santa Monica, the Promenade's maintenance crew and the SMPD as they relate to the implementation and continued enforcement of the Performer's Ordinance and attention to the general aesthetics of the Promenade. . Contribute to the early phases of event planning in order to reduce misunderstandings, miscommunication and ultimately the misuse of the Promenade. . Continue to facilitate communications among performers, merchants and the SMPD in order to maintain functional and professional relationships with these core groups. . Foster, support and promote the development ofthe Promenade's talent base. -14- Stratel,!ies As always, Venue and Performance Management faces a fluid, sometimes polarized and often- antagonistic environment on the Promenade. It is essential to be nimble in adjusting to this constantly changing and evolving environment. One way to stay engaged with the audience is through the continued production and distribution of the newsletter, Street Acts, which is directed strictly to the performer community. Recognizing a reduction in the amount of coverage our department is providing - and in an effort to maintain a fair and coherent policy through all the hours of the week - we will meet weekly with the sergeant in charge of the Third Street Bicycle Detail and the Third Street community service officers to compare notes and direct our resources to areas that are deemed problematic. As necessary, we will continue to host street performer meetings to discuss and air ideas from all sides of the street equation. In the past these meetings have been an effective way for performers to vent frustration in a less public location than on the Promenade itself. As well, they have led to some positive changes in how all sides perceive and ultimately work with each other. The Venue Manager will meet weekly with BDC Operations to cover any structural issues that arise during the course of a weekend, such as graffiti, vandalism or wear-and-tear. On a weekly basis too, the Venue Manager will meet with BDC's Marketing Manager to review upcoming events and debrief on prior events. As well, the Venue Manager with work with the Marketing Manager to add street performers to downtownsm.com, as well as to ensure content is always current. The only planned stand-alone performer showcases are during the holiday season. However, we actively are seeking synergies between street performers and the numerous special events hosted on the Promenade on a regular basis. -15 - Bayside District Corporation Staff 2004/2005 Executive Director Operations Manager Marketing Manager Communications Specialist Venue Manager Administrative Assistant Board of Directors 2004 Barbara Bryan Ruth Elwell Patricia Hoffman Henry Lichtman Wally Marks David Martin Rob Rader Bill Tucker J oahnnes Van Tilburg J ohn Warfel Marvin Zeidler - 16- Kathleen Rawson Andrew Thomas Marivi Valcourt Maria Fotopoulos Stephen Bradford Linn Wile BA YSIDE DISTRICT CORPORATION AND CENTRAL BUSINESS DISTRICT 200412005 -- ADOPTED BUDGET SUPPORT & REVENUES 2002/03 2003/04 2003/04 2004/05 Percent Est. Budget Budget Actual Budget Change 40000 City of Santa Monica $608,700 $608,700 $608,700 $608,700 0.0% Central Business District 40100 Assessment $185,000 $195,000 $195,000 $195,000 0.0% 40300 Dolphin Donations $10,000 $10,000 $10,000 $10,000 0.0% 40400 Special Events $40,000 $45,000 $45,000 $45,000 0.0% 40500 Filming Revenue $32,218 $35,000 $37,000 $37,000 5.7% Contract Services / Street Monitor $12,000 $0 $0 $0 41000 Interest $23,000 $3,500 $3,000 $3,000 -14.3% 42000 Other TOTAL INCOME $910,918 $897,200 $898,700 $898,700 0.2% EXPENSES PERSONNEL 60100 Salaries $297,000 $305,278 $298,000 $305,000 -0.1% 60900 Payroll Taxes $26,800 $27,500 $26,800 $27,500 0.0% 60700 Insurance Benefits $40,000 $47,000 $40,000 $47,000 0.0% 60800 Pension $14,500 $13,000 $14,500 $16,000 23.1% TOTAL $378,300 $392,778 $379,300 $395,500 0.7% ADMINISTRATION 60200 Bank Charges $200 $200 $200 $200 0.0% 60300 General Office Supplies $15,000 $13,000 $12,000 $12,000 -7.7% 60400 Occupancy $60,700 $77,320 $75,000 $81,000 4.8% 60500 Telephone/Internet $9,000 $9,500 $9,500 $9,500 0.0% 60600 Printing $3,068 $2,500 $1,000 $1,500 -40.0% 61000 Professional Services $20,000 $22,000 $22,000 $22,000 0.0% 61100 Outside Services $3,000 $1,500 $1,000 $1,000 -33.3% 61200 Equipment Rental $5,000 $4,500 $4,000 $4,000 -11.1% 61300 Taxes & Licenses $50 $50 $50 $50 0.0% 61400 Repairs & Maintenance $2,000 $2,000 $2,000 $2,000 0.0% 61500 Membership & Subscriptions $3,000 $1,500 $1,000 $1,000 -33.3% 61700 Postage $11,500 $11,500 $11,500 $11,500 0.0% 61800 Travel and Auto $300 $200 $200 $200 0.0% 61900 Education & Staff Development $1,500 $1,000 $1,000 $1,000 0.0% 62400 Documentation $1,800 $1,000 $500 $500 -50.0% 62700 Insurance $10,000 $15,000 $10,000 $10,000 -33.3% Parking - not part of 62800 "Occupancy" $23,000 $6,930 $5,000 $4,750 -31.5% 62900 Service Recognition $1,000 $1,000 $500 $500 -50.0% TOTAL $170,118 $170,700 $156,450 $162,700 -4.7% ~.. 2002/03 2003/04 2003/04 2004/05 Percent Est. Budget Budget Actual Budget Change BUSINESS DEVELOPMENT 62000 Meetings $8,000 $4,000 $7,000 $7,000 75.0% 62100 Development $4,500 $4,000 $4,000 $4,000 0.0% 62200 Consultants $50,000 $35,000 $63,000 $35,000 0.0% 62300 Downtown Internet $5,000 $3,000 $3,000 $2,500 -16.7% 61600 Entertainment $0 $0 $0 $0 % TOTAL $67,500 $46,000 $77,000 $48,500 5.4% MARKETING AND PROMOTIONS 63000 Newsletter and Brochures $78,500 $74,000 $74,000 $74,000 0.0% 63100 Community and Merchant $10,000 $3,000 $3,000 $3,000 0.0% 63200 Holiday $70,000 $95,000 $95,000 $97,000 2.1% 63300 Advertising (including co-ops) $84,000 $67,722 $62,000 $65,000 -4.0% Special 63400 Promotions / Dolphin $0 $0 $0 $0 0.0% 63500 Other Events $0 $0 $6,000 $0 0.0% 63600 Directories $13,000 $10,000 $15,000 $15,000 50.0% TOTAL $255,500 $249,722 $255,000 $254,000 1.70;;) OPERATIONS & MAINTENANCE 64000 Banners $8,000 $8,000 $0 $0 -100.0% 64100 Lighting $20,000 $20,000 $28,000 $28,000 40.0% TOTAL $28,000 $28,000 $28,000 $28,000 0.0% Dolphin Security and 66000 Maintenance $1,500 $0 $300 $0 0.0% 66100 Contributions $10,000 $10,000 $10,000 $10,000 0.0% TOTAL $11,500 $10,000 $10,300 $10,000 0.0% TOT AL EXPENDITURES $910,918 $897,200 $906,050 $898,700 0.2% TOT AL INCOME $910,918 $897,200 $898,700 $898,700 0.2% BALANCE $ - $0 -$7,350 $0