sr-052378-11dT0:
:4'POM:
SUBJECT:
Introduction
Santa Pionica, Cal rnia, May 11, 1978
Mayor and Gity Council
City Staff
Carnival -- June 28 - July 11
/1
MAY 2 3 1978
This report contains the terms and conditions of a contract that
would be executed with Carnival Time Shows, Inc., for a carnival
to be staged on the 1550 beach parking lot.
Background
Carnival Time Shows, Inc. has requested to enter into a conditional
contract to present a midway type carnival on the 1550 beach parking
lot. This lot is immediately north of the Santa Monica Pier. The
dates requested are a 14 day period from June 23 to July 11 inclusive.
The conditional aspect is the provision of giving Carnival Time Shows
first refusal rights for any carnival at this site for three additional
years on terms of the present agreement 90 days prior to the above
time oeriod.
The operator will guarantee a minimum of $50,000 against the following
percentage payments: 25% gross of all rides and shows for the first
$25,000 so grossed, 30% of the next $12,000, 35°!° of the next $12,500,
40% of all gross receipts over $50,000, and 25% of all concession
rentals, said rental to be at least $25 per front foot concession.
Gross receipts are to be determined by the sale of consecutively
numbered tickets. The City's percentage of the gross is to be based
upon the operator deducting the cost of public liability and property
MAY 2 3 1978
T0: bSayor and Cic Jouncil
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May 11, 1978
damage insurance from the gross in an amount not to exceed 8% of
gross sales. This means that the City's gross will be based on
92% of total sales instead of 100%. The amount of insurance will
be $1,000,000 with an excess of $4,000,000; total $5,000,.000.
Internal security is to be provided by the operator with no less
than two of his personnel, .Overnight security is again the respon-
sibility of the operator.
Clean-up and trash removal is the responsibility of the operator and
is to be accomplished daily.
The carnival will consist of no less than 20 rides and shows.
Economic Imnact
The three beach parking lots affected most by the carnival's place-
ment are the 1440, 1500, and 1550 lots, totaling 1,046 parking spaces.
Last year during the same time period these lots produced $20,000
in gross revenue or approximately $20 per space. The contract
guarantees a minimum of $50,000 for this time period.
The carnival will occupy approximately 120,000 square feet,
eliminating approximately 350 parking spaces, which is equivalent
to $7,500 in revenue. It is estimated that the extra parking uses
generated during nighttime operation of the carnival will at least
compensate for that loss., The lot is normally operated until 7:00 p.m.
During this period it will be operated. at least until 11:00 p.m, since
the carnival will operate until midnight.
T0: Mayor and Cit ;ouncil
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May 11, 1978
The remaining spaces (696) will gross approximately $13,920 from
June 28 to July 11 bringing the total revenue to a minimum of
$63,920.
The operator will pay the guarantee as follows:
510,000 by June 15, 1978
$15,000 by June 30, 1978
$25,000 by July 3, 1978
Final accounting will be by noon July 10, 1978.
Alternatives
1. Council may authorize the Gity Manager to enter into the agree-
ment for the terms established in the attached contract.
2. Council may modify contract and establish their conditions.
3. Council may disapprove the carnival and/or site.
Recommendation
Staff recommends Alternative 1 authorizing the City Manager to enter
into the attached contract.
Prepared by
DTA:pp
Donald T. Arnett, Director
Recreation and Parks
Attachment