SR-10-22-2013-3CCity Council Meeting: October 22, 2013
Agenda Item 3-C
To: Mayor and City Council
From: Rod Merl, Pier Manager
Subject: Operation and Maintenance of the Santa Monica Pier Carousel
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a two -year agreement with Roth Management, a California -based company, in
an amount not to exceed $489,413, for the operation and maintenance of the Santa
Monica Pier Carousel. The City may extend the agreement for three additional one -year
renewals with the management fee subject to an annual increase based on the
Consumer Price Index. Future year funding would be contingent on Council budget
approval.
Executive Summary
Roth Management has operated and maintained the 91 year old, vintage Santa Monica
Pier Carousel on behalf of the City since 2001. Its current contract expires February 1,
2014. Staff recommends the City enter a new two -year management agreement. The
management fee and reimbursement to the contractor for staff salaries and related
expenses would not exceed $241,090 for the first year and $248,322 for the second
year, for a total not to exceed $489,413. The City may extend the agreement for three
additional one -year renewals with the management fee subject to an annual increase
based on the Consumer Price Index. Operating expenses for each renewal year would
be increased by the annual Living Wage adjustment.
Background
The Santa Monica Pier carousel was built in 1922 by the Philadelphia Toboggan Co.
and is housed within the Looff Hippodrome, a designated National Historic Landmark.
The City purchased the Looff Hippodrome and Carousel in 1977 and has maintained
operations for residents and visitors for over 35 years. Day to day operation,
maintenance and restoration of the carousel has been provided through management
contracts with vendors that specialize in proper maintenance, repair and restoration of
vintage wooden carousels.
1
Discussion
The carousel operator is required to manage all aspects of the carousel's day to day
operation including providing trained employees, maintaining safety records and
permits, and depositing ticket revenue with the City. In addition the operator is required
to perform specialized services relating to paint restoration, carving repair of damaged
pieces, and performing inspections, basic repairs and preventative maintenance of the
carousel mechanism.
Contractor Selection
In May 2013, the City issued a Request for Proposal (RFP). The RFP was posted on
the City's on -line bidding website and advertised on the Office of Pier Management
website. Nine potential bidders downloaded the RFP from the City's on -line bidding site,
however Roth Management was the only respondent to submit a proposal. Staff
evaluated the proposal based on the criteria set forth in the RFP, which included
experience, qualifications and managerial capability to maintain all aspects of the
operation. Staff determined Roth Management's proposal to be highly responsive to the
RFP criteria. Roth Management is experienced in the operation and restoration of
carousels and has managed and maintained the Santa Monica Pier Carousel since
2001 in an excellent manner. Recent restoration projects include the 1924 Dentzel
carousel located in the Please Touch Museum in Philadelphia, and the B &B Carousell
on Coney Island.
The City receives annual ticket revenues that average $181,000 which partially offset
annual operating costs.
Roth Management's management fee and reimbursement to the contractor for staff
salaries and related expenses would not exceed $241,090.20 for the first year and
$248,322.91 for the second year. The City may extend the agreement for three
additional one -year renewals with the management fee subject to an annual increase
E
based on the Consumer Price Index and operating expenses subject to annual
increases to the Living Wage.
Financial Impacts & Budget Actions
The contract to be awarded to Roth Management is for an amount not to exceed
$241,090 in FY 2013 -14. Funds are available in the FY 2013 -14 budget in division
30209. The contract will be charged to account 30209.577240. Budget authority for
subsequent budget years will be requested in each budget for Council approval. Future
funding is contingent upon Council approval and budget adoption.
Prepared by: Elana Buegoff, Sr. Development Analyst
Approved:
Rod Merl, Pier �f anager
Office of Pier Management
3
Forwarded to Council:
Rod Gould
City Manager
Reference:
Agreement No. 9813
(CCS)