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SR-120908-8A~~ ~;,yo, City Council Report Santa Monica City Council Meeting: @8~ Agenda Item: =m ~- }'~ To: Mayor and City Council From: Barbara Stinchfield, Community and Cultural Services Director Subject: Proposed modification to policies and guidelines for licensing of extended commercial events in the 1550 beach parking lot Recommended Action Staff recommends that the City Council approve revisions to the policy regarding extended commercial use of the beach parking lot at 1550 Pacific Coast Highway (PCH) to provide more flexibility in event selection, approve extended commercial event selection guidelines, and authorize the award of license agreements in accordance with the approved guidelines. Executive Summary There continues to be heavy demand for use of the beach parking lot at 1550 PCH for extended commercial events during non-peak use periods. These events have the potential to generate significant revenue for the Beach Fund as well as address community demand for local cultural events as prioritized in the City's long-range cultural plan, Creative Capital. To facilitate issuance of licenses for these events, staff recommends an on-going process be established to allow continuous application from event producers. Staff recommends that applications be reviewed by an inter- departmental staff committee that also includes representatives of other key groups, such as the Pier Restoration Corporation and the Santa Monica Convention and Visitors Bureau. It is proposed that licensing awards be made based on a flexible set of guidelines. These guidelines are based on a review of previous extended events and input from the Pier Restoration Corporation and Pier lessees. Background In 2004, Council approved a policy to allow extended commercial events in the 1550 beach parking lot during the winter season. The intent of this policy was to generate substantial net revenue to the Beach Fund by licensing part of the parking lot for entertainment and cultural shows when parking demand is seasonally low. The policy was also designed so as not to adversely impact those wishing to utilize this lot for 1 permitted community events. The guidelines specified among other things the maximum amount of space available for use, the maximum duration of events, and the fees required for such use. In 2005, Council approved revisions to the policy modifying the permissible time frame of events and the amount of space available for use. At that time, staff committed to returning to Council with an evaluation of the success of the revised policy. This report provides that analysis and makes recommendations for further policy revisions. Discussion The purpose of allowing extended commercial events in the 1550 lot is three-fold. Extended events: 1. Provide much needed revenue to the Beach Fund to support ongoing operations as well as capital improvements. 2. Meet the community's demand for increased cultural offerings, an articulated goal of the City's Creative Capital plan. 3. Provide economic benefits to the cultural tourism sectors of the community including hotels, restaurants, and retail, particularly those located on or adjacent to the Pier. Ashes and Snow Following the 2005 revision to the policy, the Ashes and Snow photographic exhibition was held from January 14 -May 14, 2006 with a total attendance of 409,000 people. A survey, funded by the Santa Monica Convention and Visitor's Bureau, was conducted during May to estimate the economic impact of attendees on Pier businesses. Key findings of this survey were (1) sales on the Pier were up over the same period the previous year, and (2) the event attracted a new demographic segment that spent an estimated $1.2 million at the Pier over the four month period, resulting in an estimated $7,200 in revenue to the City from related food, beverage, and retail sales taxes. 2 In addition, the survey found that specific aspects of the Ashes and Snow exhibit made it more beneficial to Pier businesses than other types of extended commercial events previously held in the lot. In particular, the survey concluded the following: • Because Ashes and Snow was an "exhibit" style event with no specific start and end time, it attracted visitors throughout the day; resulting in more manageable parking and traffic impacts than "performance" style events and ample time for visitors to visit the Pier before or after viewing the exhibit. • Ashes and Snow was limited to only two U.S. venues, thereby creating a unique market demand. • Ashes and Snow sold no food or beverages, encouraging attendees to visit Pier and other City businesses for these goods and services. • Ashes and Snow utilized marketing efforts that promoted the City in general. Ashes and Snow was relatively affordable, attracting a different audience to Santa Monica than previous events. Increasing Demand In addition to the demand of Santa Monica residents for increased cultural offerings, the City continues to receive requests for extended commercial use of the lot from a wide variety of cultural and entertainment producers. In many cases, these proposals include tremendous public benefit in terms of their cultural value to the community, promotional value to the City's tourism industry, and economic value to the City's Beach Fund, as well as benefits to the hotel, food and retail businesses throughout the City. However, in some cases, these events fail to meet one or more of the criteria outlined in the current policy. Limitations of the Current Policy The current policy was designed to allow for extended commercial use of the lot while maximizing public coastal access, minimizing residential impacts, and both preserving 3 parking for Pier customers and limited use of the lot for expressive activities. However, due to the stringency of the current policy, the City has been unable to accommodate a number of potential events even if the event provides the benefits identified through the Ashes and Snow survey and/or provides extensive plans and funding to address community impacts or other concerns. For example, currently the event period is from November 1 to Memorial Day providing inadequate time for load in for events scheduled for the winter holiday period. In addition, current policy restricts the event footprint to Y4 of the lot which inhibits most cultural events of interest to the community. In addition to limitations of the current criteria, the current process employed for issuing a license (a Request for Proposals or similar bid process for each license) provides for fair and equitable use of the lot, but is labor and time intensive, thereby greatly reducing the financial benefit to the City and at times results in the inability to respond to inquiries by potential event producers in a timely manner. If the City intends to continue to allow extended events in this location, a fair, equitable, and on-going process for application, review, and award that is more efficient and timely should be established. Proposed Process and Policy Staff recommends that the City continue to use the 1550 lot for extended commercial events during non-peak use period (after Labor Day weekend and prior to Memorial Day weekend) as a significant source of revenue to the Beach Fund and as a vital contributor to the City's Creative Capital plan. To better facilitate issuance of a license for these events, staff recommends an on-going process be established to allow continuous application for event producers. Staff recommends that applications be reviewed by a committee made up of City staff and representatives of other key groups such as the Pier Restoration Corporation and the Santa Monica Convention and Visitors Bureau. Licensing awards would be made based on the review guidelines outlined below. 4 Proposals that are received by September 1 for events that would occur in the next year's extended event season will be reviewed atone time to foster a competitive bidding environment. For example, all applications for events proposed during the extended event period beginning in September 2011 through May 2012 that are received by September 1, 2010 will be considered together. In the event there is still event capacity after that deadline, extended event proposals will be accepted, reviewed and awarded on a first-come, first-served basis. No extended event proposals will be accepted any later than six months prior to the proposer's event start date. All dates still not booked will be released. Staff recommends a maximum duration of five months for timed events and a maximum of seven months for exhibition style events such as Ashes and Snow during any event season. To be eligible for review, the proposed event must be entertainment or cultural and offer a unique opportunity to the public. Events that have as a principal component merchandise sales or exhibits, business promotions, or product or .service launches/sampling will not be considered. Staff recommends that the current policy be revised to allow the review committee to consider a flexible set of guidelines when awarding licenses. By providing flexibility in weighing the merits of the proposal, the committee would be able to make allowances for events that provide substantial benefits and/or remediation of event impacts. Accordingly, staff recommends that eligible proposals be evaluated based on the degree to which the event: • Demonstrates clear measurable economic benefit to the City and local businesses. • Contains a rental fee that significantly contributes to the City's Beach Fund. Addresses traffic and parking impacts through the provision of parking shuttles, public transportation or similar mitigations. • Addresses neighborhood impacts such as noise and crowd control. • Includes a neighborhood communications plan that is sensitive to the impacts and information needs of adjacent neighbors. 5 • Promotes sustainability through the use of low-impact products and practices in the production and management of the event. • Limits concessions or services that are in direct competition with adjacent Pier businesses and provides for cross marketing opportunities with local businesses, including Pier lessees. • Provides educational outreach to regional school children. • Provides activities throughout the day (exhibition style events versus timed performances). • Maintains as small a physical footprint as possible to preserve onsite parking, maintain view corridors and sites facilities to minimize neighbor impacts. • Allows for sufficient time to provide for comprehensive plan review and for adequate coordination with City services and stakeholder groups. In addition, staff recommends the following requirements of all licensees: • No extended event licenses shall be granted between Memorial Day and Labor Day weekends annually. • The licensee must pay for all City costs and services associated with the event, including but not limited to, police services for crowd/traffic control, fire safety officers, event licensing/liaison and location supervision, parking staff, utility charges, sanitation services, and custodial/maintenance services. The City division responsible for the service shall determine the costs to be borne by the licensee. • The licensee must meet standard City requirements for insurance, indemnification, security, Police, Building and Safety, Fire Department, recycling, clean-up, waste disposal and accessibility and recive all other necessary governmental approvals. • The event must have aCity-approved traffic and off-site parking plan. 6 Alternatives Council may elect to adhere to the existing criteria, which include limitations on the size and timing of events and may result in the loss of revenue generating and prestigious cultural opportunities that are unable to meet these requirements. Alternatively, Council may rescind the policy and prohibit the use of the 1550 lot for any extended commercial events at all. Public Outreach On February 28, 2008, staff held a public input meeting to solicit input from residents on the potential impact of proposed policy revisions. A press release was issued and notices were posted on the City's website and sent to over 150 residents in the area. The majority of attendees represented business interests. Input from meeting participants focused on restricted coastal access, traffic, and noise control, but showed overall support for well-managed events, especially exhibition-style events like Ashes and Snow. In addition, staff presented proposed policy changes to the Pier Restoration Board at its meeting on April 2"d and to the Operations Committee on November 20th. Almost all of the recommendations of the PRC have been incorporated in the above guidelines and requirements. The PRC requested at least twelve months for planning and approval. The proposed application process contemplates a twelve month or more planning time- frame but allows flexibility for a shorter review period provided that there is sufficient time for planning and coordination. The PRC also requested that events be discouraged from having on-site food and alcohol; the above guidelines limit but do not prohibit these services and encourages cross-marketing with Pier lessees and local businesses. Prior to establishing license terms for any specific large extended event, staff will meet with neighbors in order to make sure the terms address neighbor concerns, to the extent possible. This is in addition to the current neighbor notification policy, which 7 provides two weeks' notice to neighbors within 500 feet when the event includes amplified sound and/or significant traffic and parking impacts. Financial Impacts 8~ Budget Actions Event producers will be charged for direct staff time and expenses related to their events. Staff may propose a specific extended event application fee in the context of the FY 2009-10 City Budget. Prepared by: Judith Meister, Special Events Coordinator Approved: Barbara Stinchfield Director, Department Forwarded to Council: 8 ~~ ~ ~ /~ leent6 City of 'ty O/®®Ng /a'~ $ADtR HODIC D~ M®®iA G City Council Meeting: December 9, 2008 Agenda Item: 8A To: Mayor and City Council From: Barbara Stinchfield, Community and Cultural Services Director Subject: Extended Commercial Event Policy -Supplemental Information Recommended Action Staff recommends that the City Council approve revisions to the policy regarding extended commercial use of the beach parking lot at 1550 Pacific Coast Highway (PCH) to provide more flexibility in event selection and approve extended commercial event selection guidelines. Executive Summary This report supplements the staff report recommending proposed revisions to the policy for licensing extended commercial use of the 1550 lot. Supplementary information includes clarification of the review process and additional proposed guidelines which reflect recommendations of the Pier Restoration Corporation (PRC) Operations Committee and Board. The PRC Board approved the revised policy which incorporates these additions at its meeting on December 3, 2008. Discussion In response to the discussion with the PRC Operations Committee on November 20 and its subsequent letter, staff recommends that the process for review of extended events be clarified to include meeting with the PRC and Pier Lessees Association prior to recommending final approval to the City Council. The PRC expressed concern that decisions about extended events need to balance the size of the event footprint with the duration of the event. For example, use of a small portion of the lot might be warranted 1 for a seven month stay while an event that occupies a large portion of the lot might be limited to four months. Proposed Additions to the Guidelines The recommended guidelines for evaluating eligible events are modified from the original report to those listed below. The additions, which reflect the recommendations by the PRC Board on December 3, are underlined. Staff recommends that eligible proposals be evaluated on the degree to which the event: • Offers a unique cultural or entertainment experience. • Demonstrates clear measurable economic benefit to the City and local businesses, including Pier lessees. • Contains a rental fee that significantly contributes to the City's Beach Fund. • Balances the amount of space allocated in the 1550 lot with the duration of the event. • Addresses traffic and parking impacts through the provision of nearby replacement parking, parking shuttles, public transportation, event signage, or similar mitigations. • Addresses neighborhood impacts such as noise and crowd control. • Includes a neighborhood communications plan that is sensitive to the impacts and information needs of adjacent neighbors. • Minimizes environmental impacts and promotes sustainability through the use of low-impact products and practices in the production and management of the event Limits concessions or services that are in direct competition with adjacent Pier businesses and provides for cross marketing opportunities with local businesses, including Pier lessees. 2 • Provides educational outreach to regional school children. • Provides activities throughout the day (exhibition style events versus timed performances). • Maintains as small a physical footprint as possible to preserve onsite parking, maintain view corridors, and sites facilities to minimize neighbor impacts. • Allows for sufficient time to provide for comprehensive plan review and for adequate coordination with City services and stakeholder groups. In addition, staff recommends the following requirements of all licensees: No extended event licenses shall be granted between Memorial Day and Labor Day weekends annually. The licensee must pay for all City costs and services associated with the event, including but not limited to, police services for crowd/traffic control, fire safety officers, event licensing /liaison and location supervision, parking staff, utility charges, sanitation services and custodial/maintenance services. The City division responsible for the service shall determine the costs to be borne by the licensee. The licensee must meet standard City requirements for insurance, indemnification, security, Police, Building and Safety, Fire Department, recycling, clean-up, waste disposal and accessibility and receive all other necessary governmental approvals. The event must have aCity-approved traffic and off-site parking plan. Prepared by: Judith Meister, Special Events Coordinator Approved: Barbara Stinchfield Director, Department Forwarded to Council: P. ont Ewell City Manager 3