SR-410-000-01 (4)
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SEP 2 2 1987
C/ED:EDD:PC:JPM:ds
council Meeting: September 22, 1987
Santa Monica, California
TO:
Mayor and City Council
FROM:
City staff
SUBJECT: Recommendation to Authorize the city Manager to Execute
the Third Street Development Corporation services
Agreement
INTRODUCTION
This report transmits the Third Street Development corporation
services Agreement for city Council review and requests
authorization for the City Manager to execute this agreement.
BACKGROUND
since the inception of the Third street Development Corporation
(TSDC) in 1983, the City has funded the TSDC by entering annual
agreements.
To better facilitate delivery of services and
improve effectiveness in operating programs within the Third
Street Mall Assessment District, the TSDC requested City
consideration of a multi-year service agreement. Subsequent to
this request, City staff and the TSDC negotiated several drafts
of a comprehensive service agreement which resulted in the
attached five year Services Agreement.
The Services Agreement
establishes broad guidelines for the TSDC's implementation
activities in furtherance of the goals and objectives of the
Third Street Mall Specific Plan and the more specific goals and
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SEP 2 2 1987
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objectives of operating, developing, maintaining and revitalizing
the Mall.
It should be noted that the TSDC Board of Directors approved
execution of the attached Services Agreement at its meeting of
August 27, 1987. The attached Services Agreement was executed
and submitted to the City on September 3, 1987.
DISCUSSION
The attached Services Agreement recognizes that the TSDC's role
in managing Mall District activities has evolved into
responsibilities significantly different from those contained
within the scope of the former annual agreements. The upcoming
Mall Improvement project will result in a more diverse, active
and complex set of management issues in the areas of leasing,
marketing and mall maintenance. The attached Service Agreement
delineates the role and responsibilities regarding the
aforementioned activities and provides for establishment of a
Working Plan to clearly define the services to be rendered by the
TSDC. In the meantime, while the Working Plan is being
developed, the TSDC will begin work on all of these activities.
LEASING
Upon completion of the Mall Improvement project, additional
retail spaces will be created along the Fourth Street frontage of
City Parking Structure #5. Furthermore, the approved Conceptual
Design for the Mall includes retail pavilion islands within the
center areas of Third Street and license space opportunities for
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vending carts and kiosks in other common areas. These new
opportunities for leasehold space and licensing necessitates the
TSDC's coordination and management. Ul timately, the TSDC will
have responsibility to negotiate or renegotiate directly with any
prospective or existing tenant or licensee concerning any portion
of the leasehold or license space within the Mall area. Upon
finalization of any lease or license negotiated by the TSDC, the
TSDC will submit the proposed lease or license to the City
Manager for approval and execution.
MARKETING
The TSDC will identify an overall operation, use and marketing
strategy for these services in the Working Plan to be approved by
the City in the spring of 1988.
Responsibilities for developing and implementing various
promotional, entertainment and event programs will require more
advance planning and organization than the TSDC can currently
manage through annual agreements with the city. The longer term
Services Agreement will allow the TSDC to provide higher quality
and better planned programs which further highlight the Mall's
public leisure areas, retail and restaurant businesses and future
development potential.
INSURANCE
The other significant new provision contained in the attached
Services Agreement is indemnification coverage. Previous annual
agreements required the TSDC to indemnify and hold the City
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harmless from all liability and damages. Increased premiums,
changes in state law and recognition of the TSDC's relationship
to City programs and services suggest that provision of this
coverage by the City was more efficient and prudent.
MAINTENANCE AND SECURITY
The City will continue to be responsible for the provision of
primary maintenance and security services for the Mall District.
However, the attached Services Agreement allows the TSDC the
opportunity to retain private contractors to provide minor
supplemental services. occasional minor maintenance services
such as litter pick-up would be representative of such
supplemental maintenance. Supplemental security services could
include uniformed radio communication equipped security personnel
similar to the ranger program which currently provides an
authoritative presence in palisades Park.
BUDGET/FISCAL IMPACT
Funds for the Third Street Development Corporation were approved
by the City Council as a part of the FY 87-88 budget. Therefore,
no additional budgetary action is necessary at this time.
RECOMMENDATION
It is respectfully recommended that the City Council authorize
the City Manager to execute the attached Third street Development
Corporation Service Agreement.
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Prepared by: Lynne Barrette, Assistant City Manager
Peggy Curran, Director
Community and Economic Development Department
Jeffrey P. Mathieu, Manager
Economic Development Division
Community and Economic Development Department
Attachment: Services Agreement By and Between the City of Santa
Monica a Municipal Corporation and Third Street
Development Corporation
staff 02
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