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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 1 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 2 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 3 Forwarded to Council: Reference Contract No. 8973 (CCS)