SR-12-17-2013-8C - 307-002-01City Council Meeting: December 17, 2013
To: Mayor and City Council
From: Karen Ginsberg, Director of Community and Cultural Services
Subject: Resolutions Establishing Interim Uses and Interim Rental Fees for the
Santa Monica Civic Auditorium
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution establishing interim uses for the Santa Monica
Civic Auditorium (Civic);
2. Adopt the attached resolution setting forth interim rental fees for interim use
rentals at the Civic; and
3. Rescind Resolution No. 3579.
Executive Summary
The proposed Resolutions establish interim uses and fees associated with rental of the
Civic, including the authority vested in City staff. An opportunity for the City to host the
media launch of BMW's hybrid vehicle at the Civic in April and May 2014 underscores
the need to establish these policies at this time.
Background
The City suspended regular operation of the Santa Monica Civic Auditorium (Civic) on
June 30, 2013, approximately one year after the loss of redevelopment funds for the
rehabilitation of the facility. Now in its interim use phase, with nominal staff resources
and a significantly reduced budget, the Civic is available for rent on a limited basis. The
regulations and rental fees currently in effect for the Civic, established in 1967 via
Resolution No. 3579, no longer reflect the current circumstances.
n June, .._11,, 2013. Council approved the proposed interim use of the Civic and an
estimated budget. Council approved and modified the Civic operating budget on ,Ame
25, 0 1 3, and October 22, 2012, respectively, for a current FY 2013 -15 operating
budget of $528,742 in expenses and $154,800 in revenue
In November 2013, BMW approached the City regarding the possibility of renting the
Civic venue for five weeks, during April and May 2014, to host an international hybrid
electric vehicle media launch. BMW's rental of the Civic could earn the City substantial
income to offset the Civic's interim operating costs and would positively impact the local
economy. The proposed rental is estimated to generate approximately $300,000 in
unanticipated revenue for the Civic. The Santa Monica Convention and Visitors Bureau
estimates that hosting this media launch in Santa Monica could result in approximately
1,500 hotel room nights from international journalists and generate local restaurant and
retail patronage. Additionally, BMW's hybrid car promotes clean energy and is aligned
with the City's sustainability goals.
Staff is working with BMW to finalize the terms of the agreement. Formally establishing
interim uses and associated rental fees at this time would provide staff with applicable
guidelines to complete a Civic rental permit with BMW.
Discussion
The purpose of the proposed interim use and fee resolutions are to establish an interim
operating model for the Civic that will partially offset the cost of operations while
meeting City, community, and market needs.
Interim Use Resolution
The proposed interim use resolution establishes the Civic's interim operating
management structure, the venue locations of interim events and uses. The Community
and Cultural Services Department would continue to manage the Civic. Subject to the
supervision and oversight of the City Manager and the Department Director, the Cultural
Affairs Manager would serve as the Acting Manager of the Civic Auditorium and would
have the authority to supervise and manage the Civic, its rules, regulations and permits
as defined in the Resolution. Event locations and uses would be as follows:
1. East Wing Meeting Room and Patio: available for City recruitment, meetings and
workshops, film and photo shoots, community, school and non - profit events and
meetings as defined in the resolution.
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2. Main Hall, Stage and Lobby: available for non - public assembly events such as
commercial photography and filming, closed rehearsals, theatrical technical
production work, product displays and demonstrations not open to the general
public and storage or staging associated with other Civic events as in the
resolution.
3. Other Exterior Event Spaces including the Canopy, Front Lawn, East and West
Patios and West Lawn may be available for events in conjunction with and in
support of any authorized rental of either the Main Hall or the East Wing Meeting
Room.
4. Civic Center Surface Parking Lot: given the resources at hand and limited
staffing the parking lot would be available in conjunction with a rental of either the
East Wing Meeting Room or the Main Hall for up to 12 events per year, including
City sponsored or co- sponsored events. Any rental of the parking lot would be
approved by the Acting Manager as well as City staff managing City parking
resources. Policies and fees outlined in this Resolution are applicable to
situations where the parking lot is rented in conjunction with rental of the Civic
and do not apply to stand -alone parking lot rental requests. Staff will return to
Council at a later date so that parameters can be established for stand -alone
parking lot event rentals.
Interim Fee Resolution
For these four identified venue areas, interim rental fees are proposed as described in
Attachment B. The proposed fees are based on initial market research and are
generally lower than previous fees charged by the Civic. Consistent with the existing
Civic operating resolution, the proposed interim fees include special rental rates for non-
profit organizations and the Santa Monica - Malibu Unified School District. Under this
interim operating model, City Departments would not be charged for hosting municipal
events at the Civic. As the interim operating model evolves, staff will assess the number
of municipal events held and the cost- benefits associated with them to determine if
internal fees may be advisable.
BMW Rental
The potential BMW rental includes the following three components: 1) the interior of the
Civic would be used to store and detail vehicles; 2) periodic test drives for journalists
would depart from beneath the canopy and 3) placement of a 1,400 square foot cube
display `pavilion' on the Civic front lawn. As a condition of the rental permit, BMW would
be required to obtain all necessary permits for a temporary structure, such as permits
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from the Building & Safety Division and the Fire Department. A conceptual rendering of
the pavilion and canopy test drive staging area is provided in Attachment C.
Alternatives
Council could decide not to approve these Resolutions. In this case, staff would proceed
with interim operations under the existing policies which, while flexible, may not always
apply to the current operating model. Council could also recommend alternative policies
and fees, which may require additional staff assessment to identify possible operating
and financial impacts. If further assessment is needed, staff would return to Council with
revised recommendations at a later date. BMW is investigating the Civic among other
Southern California venues. Additional time that the City spends devising interim
policies may result in the loss of this potential client.
Financial Impacts & Budget Actions
The proposed rate changes in the Civic interim use rental fees will facilitate staff's ability
to achieve FY 2013 -14 revenue goals. Revenues in the amount of $154,800 have been
included in the FY 2013 -14 adopted budget at 015601.401700.
Prepared by: Jessica Cusick, Cultural Affairs Manager
Approved:
Forwarded to Council:
Karen Ginsber Director Rod Gould
Community and ultura Servi es Director City Manager
Attachments:
A. Resolution Establishing Interim Uses
B. Resolution Establishing Interim Fees
C. BMW Pavilion and Canopy Staging Area Concept
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Attachment C — BMW Pavilion and Canopy Test Drive Staging Area
Placing the pavilion on the Civic lawn is central to BMW's media launch marketing
strategy at this site. The contemporary white structure will mirror the Civic's modernist
architectural style and would include three transparent sides. BMW envisions the
pavilion as a place where the public would view the car and where the company could
brief journalists prior to their test drives. Hybrid vehicles would be parked under the
canopy area and journalists would depart for test drives from this location.
C -1
Reference:
Resolution No. 10791 (CCS) &
Resolution No. 107292 (CCS)