SR-213-002 (9)
RMD:EDD:F:\RESOURCE\USERS\Gwen\STAFFREPORTS\MainStFestivalLights.doc
Council Meeting: September 28, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Authorization to Negotiate an Agreement with the Main Street
Business Improvement Association, Inc. to Create Festival Lighting
on Main Street with Sewer Mitigation Funds.
Introduction
This report recommends that the City Council authorize the City Manager to
negotiate and execute an agreement with the Main Street Business Improvement
Association, Inc. in the amount of $220,000 for the design, installation,
maintenance, and operation of festival lighting on Main Street.
Background:
On November 12, 2002, Council approved various contracts and expenditures for
the Ocean and Main Street Sewer Rehabilitation Project, including $250,000 to
be set aside as construction mitigation for Main Street in anticipation of business
disruption and loss. The Main Street Merchants Association (MSMA), recently
incorporated as the Main Street Business Improvement Association, Inc., and
City staff explored various uses of these funds and determined that the
commercial district would benefit most from using those funds for the installation,
maintenance, and operation of permanent festival street lighting. Such lighting
would enhance the evening atmosphere and business vitality in this unique retail
and restaurant district, which had weathered business disruption during the multi-
year sewer project.
1
Discussion:
The MSMA explored a number of design possibilities for decorative lighting, and
was very interested in a Lumisphere product from England. This light is different
from the standard “twinkle” lights, tube lights, or outside holiday lights, partly for
its substantial appearance, and partly for its durability, as the product is rated to
last five years or longer in a marine environment.
With funds from the CIP reserved for the construction mitigation measures, GRT
& Associates, the City’s consultant, prepared engineering specifications, plans,
and structural calculations based on using these lights on the existing light poles.
Initially, the shift in foreign exchange value of the dollar rendered the Lumisphere
product too expensive, so MSMA decided to consider alternative designs and
lighting products. With assistance from City staff, MSMA prepared and
distributed a Request for Proposals (RFP) from lighting contractors, which
required that the lighting be of a semi-permanent nature, and able to last for a
period of at least five years of nightly illumination with minimal maintenance and
modest electrical usage. The specifications, plans, and structural calculations for
the Lumisphere product were included in the RFP for illustrative purposes, but
the RFP encouraged contractors to suggest alternative concepts. MSMA
received three proposals in response to the RFP, each with a different lighting
2
design and product. In their Board Meeting of August 18, 2004, MSMA approved
the proposal submitted by Associated Group. Associated Group’s bid, at
$205,000, was the lowest bid, and used the Lumisphere product. In accordance
with the RFP, their bid also included the cost of five years’ maintenance on a
quarterly basis.
The proposed agreement will call for MSMA to contract for installation of
decorative lighting and all costs of maintenance and electricity over at least a
five-year period. MSMA will carry insurance at limits satisfactory to the City. The
Agreement will state that the City is not responsible for further funding or
replacement of the decorative lighting system at the end of its useful lifespan.
The total amount set aside for construction mitigation was $250,000. To date, the
CIP fund has expended $26,428.62 for preparation of the electrical
specifications, plans, structural calculations, holiday lighting, and miscellaneous
expenses. The recommended grant amount to MSMA of $220,000 will cover its
contract cost of $205,000 with Associated Group and provide an additional
$15,000 for other operational project costs.
Budget/Financial Impact
The funds are available in CIP Account No. C310842.589000.
3
Recommendation
This report recommends that the City Council authorize the City Manager to
negotiate and execute an Agreement with the Main Street Business Improvement
Association, Inc., for the design, installation, maintenance, and operation of
festival lighting along Main Street, between Pico Boulevard and the southern City
border, as described in this report.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Craig Perkins, Director, Environmental & Public Works
Miriam Mack, Economic Development Division Manager,
Gwen Pentecost, Sr. Admin. Analyst, Economic Development
4