SR-091608-1O~;,yo, City Council Report
Santa Monica
City Council Meeting: September 9, 2008
Agenda Item: I ' ~
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Seasonal Ice Skating Rink
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a License Agreement with the Bayside District Corporation (BDC), for use of
City-owned property at 1324 and 1326 5th Street, for a seasonal ice skating program,
from October 1, 2008 through Jariuary 19, 2009 and to contribute $25,000 to assist with
the cost of providing electrical service to the site.
Executive Summary
Last year BDC transformed a portion of the City's property located at 5tt' Street and
Arizona Avenue, into an ice skating rink as part of its Winterlit holiday celebration. The
event attracted approximately 30,000 skaters over 47 days. This year, BDC is again
requesting a license from the City to use the property from October 1, 2008 through
January 19, 2009. The ice skating rink would be open to the public beginning
November 7, 2008. The BDC is negotiating a management and operating services
contract with last year's operator, Frozen Water; L. P., which will include the insurance
amounts required by the City's Risk Manager. BDC has also requested $25,000 to
assist with the cost of providing electrical service to the property. The financial impact
to the City would be approximately $21,000 in foregone parking revenue, as well as the
expenditure of $25,000 for electrical service to the site.
Discussion
BDC is negotiating with Frozen Water, L.P. to provide aturn-key operation for an ice
rink during BDC's upcoming Winterlit celebration this winter. The ice rink would be
located at 1324 5th Street, from October 1, 2008 through January 19, 2009 in a slightly
larger foot print than last year. Skating would begin on November 7, 2008, operating
from 10 am to 10 pm daily. BDC expects to serve over 40,000 skaters with a program
that includes casual skating, skating lessons, skating-related souvenirs and
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merchandise, food and drinks and entertainment. BDC is negotiating to offer special
rates for the Santa Monica Boys and Girls Club, PAL, YMCA, and other community
groups
Because last year was the first year of operation, a generator provided electricity to the
chiller. Over the last several months, staff from the City and BDC has been exploring
alternate ways to provide electrical service to the site, including biodiesel generation,
diesel generation and electrical service. Securing electrical. service to the site was
deemed to be cost-effective, practical and environmentally responsible, as it allows for
the purchase of green energy. BDC staff secured three proposals and proposes to
select a .contractor who would install a new electrical service including meter,
transformer, concrete pad, and all of the necessary cables, hookups and barricades for
a cost of $58,000. The equipment and service will need to be permitted by Southern
California Edison and the City. BDC has requested that the City contribute $25,000
toward the cost of establishing the electrical service. BDC proposes to pay for the
electrical usage-costs and plans to purchase green power.
Currently, Parking Valet Services manages the parking on the site and pays the City
monthly rent of $6,000 under amonth-to month license agreement. The company will
be given notice to vacate the site 30 days in advance so that it can make other
arrangements with those who park on the lot.
In accordance with Section 3 of the Services Agreement between the City of Santa
Monica and Bayside District Corporation, executed December 3, 2004, the BDC is
responsible for promoting and continued economic revitalization of the Downtown as
well as programs, projects, and services that benefit Santa Monica residents, Downtown
merchants, property owners, customers and visitors. The management of the ice
skating rink program is consistent with the roles and responsibilities of the BDC.
Financial Impacts & Budget Actions
The City will forego approximately $21,000 in revenue from the parking operator during .
the term of the license. Sufficient funds in the amount of $25,000 are available in
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Account Number 01263.533220 to pay a portion of the cost of installing electrical
service to the site for the ice rink operation:
Prepared by:
Donna Rickman
Senior Administrative Analyst
Approved:
Andy Agle, Director (~
Housing and Economic Development
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Forwarded to Council:
Reference Contract No.
8973 (CCS)