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SR-02-26-1980-11CM Santa Monica, California February 6, 1980 FEB 2 6 1984 TO: Mayor and City Council FROM: City Staff SUBJECT: Request for approval in concept and authorization of a trial period for a miniature railroad on Santa Monica Pier Introduction This report concerns a request for approval of a miniature railroad to operate on the Santa Monica Pier to function as a people mover. It analyses a proposal, and the specifi- cations as required by the City and recommends City Council approve the proposal in concept and agree to a trial period of six months. Background Mr. Quentin B. Jervis has approached. the City Staff with a proposal to build a one -third scale model replica of the Pacific Electric Red Cars to act as a people mover on the Santa Monica Pier. The system would utilize propane which leaves no oil residue upon the ground nor emits any soot or smoke into the air. Each car would carry passengers at 254 each from the Carousel Park area adjacent to the water slide through the archway across from the Boathouse Restaurant, along the center of the existing roadway to the Harbor. The trial car would operate on pneumatic tires and not involve any structural chancre of the Pier. Mr. Jervis will provide insurance in the amount of $2,000,000. is FEB 2 6 1980 -2- The entire installation would be at Mr. Jervis' expense with no tax dollars being required from the City. A rental of 10% of gross sales would be paid each month to the City. No recapture of investment is requested by Mr. Jervis, and upon his death, he will donate the entire operation to the City for the enjoyment of the people. Although this request for approval in concept with a trial period is for the Pier only, City Staff wishes to draw the attention of the Council to his entire proposal of which the Pier operation is only the first phase. In his overall concept Mr. Jervis plans a phased development, as indicated in his proposal, subject to the step -by -step approval of the Council. These phases would include a north and south line along the Promenade, replacing the rubber - wheeled trolleys that used to operate between Pacific Ocean Park and the Santa Monica Pier. Another line would operate along Main Street attracting patrons from Main Street to the Pier and from the Pier to Main Street. Recommendation It is the recommendation of City Staff that the City Council give its approval for a people mover of the type discussed in this report, authorize City Staff to negotiate a six month trial period with instructions to Staff to return to Council for its approval of a final lease as negotiated by Staff. Exhibit "A" Proposal of Mr. Quentin B. Jervis Prepared by: Gary Ferguson Peter Kipp BOA' HOURS //a ME 737 WEST CHANNEL ST SAN PEDRO, CA. 90731 213 - 833.5227 Mr. Garry Ferguson Santa Monica Civic Auditorium Santa Monica, California 90404 Re: Proposed Concession Agreement Dear Mr. Ferguson: Overfair Corporation, a California corporation proposes to operate self propelled rubber tired tram cars on the Santa Monica Pier and adjacent areas. 1. DESCRIPTION: The tram cars are replicas of Paces Electric street cars and will operate daily during normal pier business hours. 2. RENT: Passenger Fare will be $.25 of which T07o of the gross revenue will be remitted to the city. 3. TERM: Minimum six months with a renewable option convertabal to a long term agreement. 4. LEGAL OBLIGATION: Overfair Corporation shall comply with all unicipal, County, State and Federal requirements applicable to the operation. 5. INSURANCE: Overfair Corporation will provide a certificate of Insurance for the term of the agreement. The amounts of public liability and property damage coverage will be as specified by the city. If the foregoing is acceptable to the City of Santa Monica, we would appreciate an immediate response. With your prompt affirmative response we will begin operation on or before May 16th 1980. �j Mr. Garry Ferguson Re: Proposed Concession Agreement Sincerely, OV AI COR.PORATI6 I "" ,/ uentin B. Jervis AGREED AND ACCEPTED: CITY OF SANTA MONICA LOW DATE: 1i- Re: Proposed Concession Agreement Sincerely, OV AI COR.PORATI6 I "" ,/ uentin B. Jervis AGREED AND ACCEPTED: CITY OF SANTA MONICA LOW DATE: 'Agenda Item 11 -C: Presented for consideration at this time was a recommendation regarding a temporary agreement for a trial tram operation on the pier for a period not to exceed six months. A staff report was received. Mayor Pro Tempore Yannatta Goldway moved to authorize staff 'to- appi'bve "'t -lie sta YL 'reconunen anon 'toenter i�it 'a negotiation for the lease subject to approval of the Coastal Commission. Second by Council - ,member Jennings. Council Vote: Unanimously approved 6 -0 Absent: Councilmember van den Steenhoven CITY COUNCIL MEETING - March 4, 1980