SR-06-24-2014-3KCity Council Meeting: 24 June 2014
Agenda Item: -°°
To: Mayor and City Council
From: Rod Merl, Pier Manager
Subject: Santa Monica Pier Corporation (SMPC) FY 2014/15 Work Plan and
Budget
Recommended Action
Staff recommends that the City Council approve the Santa Monica Pier Corporation
(SMPC) Work Plan and Budget for FY 2014/15.
Executive Summary
Staff is presenting to the Council for approval the proposed SMPC work plan and
budget which summarize the operations and activities to be undertaken during FY
2014/15. The proposed budget includes City funding of $494,257 for operations as well
as a one -time grant of $200,000 approved and added to the Pier budget in FY 2013/14
to support the production of the 2014 Twilight Concert Series.
Background
The Services Agreement approved by Council on February 28, 2012 requires the
preparation of an annual work plan and budget. The Santa Monica Pier Corporation
Board of Directors approved the FY 2014/15 Budget and Work Plan on April 21, 2014.In
accordance with the Services Agreement the SMPC is submitting its FY 2014/15 work
plan and budget for Council review and approval.
Discussion
The attached Work Plan describes the activities the SMPC plans to implement in the
current fiscal year (Attachment A). This work plan concentrates on five areas:
Sustaining Core Programing; Preparing for EXPO; Working with City on area
infrastructure projects; Promoting upgrades to the Pier; Developing enhancement
strategies and a longer -term vision.
1
® Sustaining Core Programing focuses SMPC efforts on maintaining its
established community oriented events rather than pursuing additional
programing per City instructions to reduce occupancy capacity to ensure safety
and limit sponsorship signage for special events on the Pier to confirm to local
law. The SMPC work plan acknowledges the City's subsidy for the Twilight
Concert Series and states that the SMPC and City are to work together "to
evaluate this new model and gauge its revenue potential..." The programing
scheduled to return to the Pier include the Twilight Concert Series, Newport Folk
Festival, Front Porch Cinema, Paddleboard Race, and Wake Up With the Waves.
The SMPC also proposes to continue to supplement arts programing through
relationships with outside producers such as the West -End Theatre and LA
Opera.
® Preparing for Expo calls for SMPC staff to work closely with the City and
stakeholders on mitigating traffic impacts, establishing way- finding systems,
maintaining public safety, and on marketing efforts to encourage Expo riders to
visit the Pier.
® Working with City on area infrastructure projects calls for SMPC staff to
coordinate with the City on a number of public works projects that may impact
access to the Pier such as the Colorado Esplanade, California Incline, Expo Light
Rail Terminus, PCH sewer upgrade, and Pier CIP projects including additions
and repairs to Pier access stairs, Pier deck substructure repairs and
development of a west end emergency exiting system.
® Promoting upgrades to the Pier addresses the SMPC's efforts to publicize and
promote through its media networks the City and merchant upgrades and
investments on the Pier. SMPC plans to initiate a volunteer docent program,
promote the completion of the Pier Renewal Project, the upcoming automation of
the Pier parking lot with pay on foot machines, and co- promote recent and
2
forthcoming renovations and upgrades to Pier businesses such as Ristorante Al
Mare, The Albright, Pacific Park and Rusty's Surf Ranch.
® Developing enhancement strategies and a longer -term vision is described in
the work plan as "working within existing resources, and drawing on available
expertise, the Board will develop enhancement strategies and recommend to the
City a longer -term vision for the Pier."
Budget FY2014/15:
SMPC presents a nearly balanced budget for FY 2014/15 with total revenues in the
amount of $1,689,257, and expenditures in the amount of $1,670,487, resulting in a
projected net surplus of $18,770 (Attachment B).
Budgeted revenues include City's base grant funding of $494,257 plus an additional
one -time City grant of $200,000 to support the production of the Twilight Concert Series
representing a total of $694,257 in City funding. Revenue from non -City from event deck
rental, film permits, carousel rental, corporate promotions, Pier shop /visitor center and
program sponsorships is projected to be $995,000 and will help fund SMPC events,
programming and marketing activities.
Expenditures related to the management of facilities and activities including carousel
parties, pier deck rentals, and the operation of the Pier Shop /Visitor Center are
projected to be $267,000 which represents a 50 percent increase from the previous
year's budget primarily due to increased costs relating to staffing and security.
Personnel expenditures are projected to be $743,487 and represent a 2 percent
increase from the previous year's budget. Expenditures for programming including the
Twilight Concert Series, and other events and programming are projected to be
$660,000 and represent an 11 percent increase from the previous year's budget.
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Financial Impacts & Budget Actions
Funds in the amount of $494,257 for the SMPC are included in the FY 2014 -15
proposed budget. Following rollover of the FY 2013 -14 one -time $200,000 allocation to
support the Twilight Concert Series, the budget will include $694,257 at account
30209.577300.
Prepared by: Elana Buegoff, Sr. Development Analyst
Approved:
Rod Merl
Pier Manager
Attachments:
A. SMPC FY 2014/15 Work Plan
B. SMPC FY 2014/15 Budget
C!
Forwarded to Council:
Rod Gould
City Manager
ATTACHMENT A.
Santa Monica Pier Corporation
2014 -2015 Work Plan
Goal of the SMPC
To elevate the visitor experience of the Pier for all audiences
Goal of the 2014 -2015 Work Plan
The 2014 -15 year will be marked by several area construction and development
projects that require coordination with City departments and communications plans
for Pier visitors. At the same time, the Pier Corp faces challenges to funding programs,
which will necessitate a financially conservative approach to ensure that key tent -pole
programs can continue.
Upgrades to the Pier will be a key source of coin munication, including the Pier Renewal
reopening, parking automation and tenant upgrades. The EXPO line will also be
nearing completion by the end of the year, and will require developing communications,
logistics and marketing plans.
In addition to addressing these shorter -term exigencies, the Board will also work within
existing resources to develop enhancement strategies and a longer -term vision for
consideration by the city.
Areas of Focus
1. Sustaining Core Programming
2. Preparing for EXPO
3. Working with City on area infrastructure projects
4. Promoting upgrades to the Pier
S. Developing enhancement strategies and a longer -term vision
SMPC Areas of Focus
Sustaining Core Programming
With both the reduction in capacity at the Pier, limitations on sign age for sponsors and
area construction impacts, the Pier Corp faces new challenges in securing funding for
free programming. As we work with City staff to evaluate this new model and gauge its
revenue potential with the support of the City subsidy for Twilight Concerts, we will
focus efforts on sustaining long -held core programs versus developing new ones.
1. Music: Twilight Concert Series (301h year) -Our community's favorite summer
tradition. Newport Folk Festival (2nd year) - The Pier Corp invested heavily in
getting this famous festival to the Pier with its rich history, cultural cache and
family- friendly content.
2. Film: Front Porch Cinema (3rd year) - Fall movies are another community
tradition that takes advantage of our amazing weather and venue.
3. Active Lifestyle: Paddleboard Race & Ocean Festival (5d' year) - A celebration
of surf history and beach culture with a message of preservation. ROGA (2nd
year) -Saturday morning run and yoga group for locals. If funds are available,
we may develop one additional fitness series since they are low -cost and
serve locals.
4. Education: STEAM Machines (2nd year) - The Pier's commitment to S.T.E.M.
education and home of the regional Rube Goldberg science contest for kids.
Wake Up With The Waves (8th year) - A children's concert series that teaches
kids to interact and learn about music.
S. Arts: Since we have not yet found a sustainable model of arts programming,
we will continue to encourage outside producers to develop programming,
e.g. West -End Theater and LA Opera.
Preparing for EXPO
As construction winds down on EXPO in mid 2015 and enters its testing - phase, the Pier
Corp will need to work closely with City Departments and stakeholders in preparing for
the impact.
1. Traffic & Way- finding: Coordinate with City staff on traffic impacts and way -
finding systems to channel new and existing visitors efficiently to the Pier and
its attractions.
2. Public Safety: Coordinate with Police and Fire on crowd management for
increased crowds.
3. Tenant Impacts: Advise tenants on potential impacts as well as
opportunities to market to a regional audience.
4. Opening Celebration & Marketing: Encourage ridership with a public
information campaign on taking the train to the Pier. Promote trial with an
opening event celebration.
Working with City on area access projects
With a multitude of construction and development projects in the immediate vicinity,
the Pier Corp will have to work closely throughout the year with City departments to
communicate disruptions, alternate routes and scheduling conflicts to visitors and
stakeholders.
1. Esplanade (Oct'14 - Jul'15)
2. Theater at Santa Monica Place (Jul'14 - Jan'15)
3. Hotel projects (Jul '14 - Feb '16)
4. California incline & Moomat Ahiko Way (Aug'14 - Mar'16)
S. EXPO line (in process)
6. PCH sewer upgrade
7. Preparing for Pier Bridge
8. Pier CIPs
Promoting Upgrades to the Pier
In the pastyear, one new restaurant launched and one existing restaurant upgraded,
elevating the experience of the Pier and making its offerings more contemporary and
competitive. The Pier Corp encourages these upgrades and helps create visibility for
them through its media network. The upgrades planned for this year so far include:
1. Upgrade to an existing restaurant business
2. Completion of Pier Renewal Project
3. Parking Automation for easier access
4. Volunteer Docent Program
Developing enhancement strategies and a longer -term vision
Working within existing resources, and drawing on available expertise, the Board will
develop enhancement strategies and recommend to the City a longer -term vision for the
Pier.
ATTACHMENT B.
SANTA MONICA PIER CORP
FY 2014/2015
Income
Approved Budget
FY 13/14
proposed FY14 /15
Change from
Previous
City Funding
$481,983
$494,257
3%
Facilities - City Refund - Pier Deck
$85,000
$125,000
47%
Facilities - Event Deck Rental
$160,000
$250,000
56%
Facilities - Film Permits
$125,000
$125,000
0%
Facilities - Carousel Rental
$90,000
$100,000
11%
Facilities - Corporate Promotions
$40,000
$50,000
25%
Facilities - Pier Shop &Visitor Center
$36,000
$30,000
-17%
FACILITIESTOTAL
$451,000
$555,000
23%
People- Office Supplies, Services, Audit, Insurance
$90,000
$80,000
-11%
Programming - Music*
$400,000
$450,000
13%
Programming - Film
$75,000
$60,000
-20%
Programming - Active Lifestyle
$75,000
$125,000
67%
Programming - Arts
$10,000
$0
-100%
Programming - Education
$10,000
$5,000
-50%
PROGRAMMING TOTAL
$570,000
$640,000
12%
Programming - Film
$75,000
$60,000
-20%
Programming - Active Lifestyle
$75,000
$125,000
677
Total Income
$1,502,9831
$1,689,257
12%
Expenses
Approved Budget
FY 13/14
proposed FY74/15
Change from
Previous
Facilities - City Refund - Carousel
$40,000
$42,000
5%
Facilities - City Refund - Pier Deck
$85,000
$125,000
47%
Facilities - staffing, security, & supplies
$17,500
$75,000
329%
Facilities - Vistitor Center on -going costs
$36,000
$25,000
-31%
FACILITIES TOTAL
$178,500
$267,000
50%
People- Wages & Salaries
$500,000
$510,487
2%
People - Benefits
$100,000
$135,000
35%
People- Office Supplies, Services, Audit, Insurance
$90,000
$80,000
-11%
Marketing- Media Kit & B -to -B outreach
$12,000
$3,000
-75%
Marketing - Web & Communications Update
$20,000
$0
-100%
Marketing - General PR & Advertising
$10,000
- $15,000
50%
MARKETING TOTAL
$732,000
$743,487
2%
Programming - Music
$400,000
$450,000
13%
Programming - Film
$75,000
$60,000
-20%
Programming - Active Lifestyle
$75,000
$125,000
677
Programming -Arts
$20,000
$10,000
-50%
Programming - Education
$20,000
$15,000
-25%
PROGRAMMING TOTAL
$590,000
$660,000
12%
Total Expense
$1,500,500
$1,670,487
11%
Net Income $2,483 $18,770
656%
*music programming Income estimate includes $200k City subsidy for Twilight Concerts