SR-06101986-6F~.~1
JUN 10 1lBi
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Council Meeting: 6/10/86 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Execute
an Agreement with Ray Cammack Shows for the Operation
of the Santa Monica Pier Carousel
Introduction
This report requests that Council authorize the City Manager to
execute an agreement with Ray Cammack Shows for the operation of
the Santa Monica Pier Carousel for a three-month period (June 16
through September 15, 1986). During this three-month period,
staff will seek a permanent operator. The report also requests
that Council authorize the City Manager to modify the Services
Agreement with the Pier Restoration Corporation (PRC) with regard
to the management of the Carousel by deleting reference to a
specific operator.
Background
At its September 17, 1985 meeting, Council approved the selection
of Dan Horenberger, dba Brass Ring Entertainment, as Carousel
Operator and authorized the City Manager to negotiate and execute
an Agreement for operation of the Carousel. This recommendation
was made to Council following an extensive search and selection
process for a qualified Carousel operator. The execution of the
contract with Mr. Horenberger has not been completed as the
contractor has been unable to fulfill the liability insurance
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requirement. Mr. Horenberger has been unable to obtain liability
insurance from any of the amusement business insurance carriers.
Mr. Horenberger has operated the Carousel under a purchase order
arrangement during this time. On May 15, 1986, Mr. Horenberger
terminated his contractual arrangement as Carousel Operator and
indicated that he was unable to secure the necessary insurance
under the terms of the contract.
Given the timing of Mr. Horenberger's departure in relation to
the commencement of the daily summer operating schedule for the
Carousel, the City is fortunate to have the services of Ray
Cammack Shows available at this time. Ray Cammack Shows is a
highly respected amusement company based in Phoenix, Arizona. In
April, 1986, the PRC had selected Ray Cammack Shows to operate
five (5) children's amusement rides on the deck area south of the
Carousel for the three-month 1986 summer season. This operation
is scheduled to coincide with the opening of the Carousel Park on
June 6, 1986. The PRC had sent an informal request for proposals
to twelve (12) amusement companies. Due to the restrictiveness
of the project (e.g., short-term operation, space and load
limitations) and the capital outlay for the amusement rides
required by the operator, only three (3) of the companies
contacted indicated an interest. The PRC selected Ray Cammack
Shows based upon the high quality of the rides to be provided,
the rental offer, insurance coverage, and the firm's ability to
be operational by June 1, 1986. The ride operation is covered by
a License Agreement between the City and Ray Cammack Shows which
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will be managed by the PRC pursuant to the terms of the PRC
Services Agreement with the City.
Ray Cammack Shows has been in business for twenty-five (25) years
providing travelling amusement shows to cities and counties
across the country. The firm services and maintains seventy-five
(75) different kinds of rides, including a carousel. The firm
has extensive experience in all aspects of carousel operation.
Cammack has an outstanding safety record and has won several
awards for the high quality of the operation including the 1986
safety award of the American Recreational Equipment Association.
The Los Angeles County Fair Association had selected Cammack in
1985 following an extensive search and the Association has
renewed the contract with Cammack for 1986. In light of the
prior search for a qualified Carousel Operator in 1985, staff
believes that the ready services of a highly professional
amusement company with a proven track record are indeed welcome
and fortuitous.
Terms of the Agreement
Staff is recommending that a License Agreement, similar to the
Agreement for the operation of the children's rides, be approved
for a three-month period beginning June 16, 1986. The Agreement
will provide for a month-to-month continuation following the
initial three months. The Agreement is structured this way to
provide for the operation of 'the Carousel during the busy summer
season; there is not sufficient time to negotiate a more
long-term arrangement now. The PRC and City staff will analyze
the best arrangement for a more permanent operation of the
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Carousel over the next several months. The three-month operation
of both the rides and the Carousel will also provide a testing
time for Cammack.
Under the terms of the Agreement, Cammack will operate and
maintain the Carousel, coordinate and manage private rental of
the Carousel, and sell approved gifts and novelties. The hours
and days of operation will remain as currently set, or as
otherwise approved by the City.
Under this Agreement, the current practice of the City receiving
all revenues and reimbursing the Operator for all salaries and
expenses will be continued. The City will receive all revenues
derived from the operation of the Carousel and private rental of
the building, and ten percent (10~) of gross sales from
novelties. The City will pay a monthly management fee of $1,200
and reimburse Cammack for eligible salaries, supplies and
expenses for the operation and maintenance of the Carousel. The
License Agreement sets forth limits for the reimbursable
expenses. The salaries, management fee and reimbursable expense
limits are consistent with the previously approved contract with
Brass Ring Entertainment.
Management by the PRC
One of the areas of responsibility of the PRC is the management
of the operation of the Carousel. It is intended that the PRC
will administer the Agreement with Ray Cammack Shows. The
Services Agreement between the City and PRC currently specifies
Brass Ring Entertainment as Carousel Operator. Staff recommends
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that the City Manager be authorized to modify the Services
Agreement to delete reference to a specific Carousel Operator.
Budget/Financial Impact
The recommended action does not have an impact on the 1985-86
budget or the proposed 1986-87 budget. There are sufficient
funds in Account 30-500-625-000-724 to cover expenses for the
remainder of the fiscal year. The proposed 1986-87 budget
request for Account 30-500-625-000-724 is $122,103. This amount
is sufficient to cover the three-month operation of the Carousel
under Ray Cammack Shows as well as the remaining nine (9) months
of expenditures under the terms of the License Agreement if
month-to-month continuation occurs.
Recommendation
Staff respectfully recommends that Council:
(1) Authorize the City Manager to execute an agreement with Ray
Cammack Shows for the operation of the Santa Monica Pier
Carousel.
(2) Authorize the City Manager to modify the Services Agreement
with the Pier Restoration Corporation to delete the
reference to a specific Carousel Operator.
Prepared by: Stan Scholl, Director of General Services
Judith Meister, Pier Manager
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Reference Contract
No. 4692 (CCS).