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SR-07-24-1979-11ASanta Monica, California TO: Mayor and City Council FROM: City Staff July 13, 1979 SUBJECT: S.M. Pier Lease Addendum, Gladstone's 4 Fish Introduction JUL 2 4 1979 This report concerns a change in the terms of the lease for Gladstone's 4 Fish, (to be built on the S.M. Pier) discusses the reasons for the change, and recommends the City Council approve the lease addendum. Background On July 11, 1978, the City Council approved a lease for a restaurant dba Gladstone's 4 Fish to be located on the Santa Monica Pier. This restaurant is presently located in the Santa Monica Canyon, and would bring an existing clientele to the Pier. The location is to be at the western end of the parking lot on the Pier, a location not used by the public for many years since the advanced state of deterioration of the pilings and decking has required this portion of the Pier to be closed to the public. Normally, the responsibility for the repair of the Pier from the decking down including the pilings rests with the City, Section 7.1 of the Standard Pier Lease. However, in so far as possible, City staff has endeavored to shift these costs -2- to the lessee, as in this case. Both the lessee and the City staff relied upon the estimate of the cost of repair by the Meek Construction Company (see Exhibit "A ") which was $95,000 and upon the Koebig & Koebig Structural Survey of the Pier. (See Exhibit "B ") Upon a thorough inspec- tion by the City Engineering personnel, both above the water line and below, many more of the pilings have been found to be in need of replacement than was at first realized. (See Exhibit "C ") Lessee Request for an Addendum In view of the above, the lessee, Mr. Robert Morris, has requested a one year moritorium of payment of the minimum annual rental, $50,000, in order to more quickly recapture his increased investment, which in turn would shorten the time when the City would participate in his increased business. Under Mr. Morris' request, after the first year the minimum annual rental will be paid. As soon as all costs of the pilings and substructure are recaptured, the City will participate in business, in addition to the minimum, at a rate of four percent of sales. Subsequently, when a maximum of $300,000 has been recaptured by the lessee, or when six years have elapsed, the City will -3- be paid a rental of the minimum, against eight percent of sales. At present the restaurant is reported to be enjoying annual sales of two million dollars. Recommendation It is the recommendation of the City staff that the City Council approve the attached lease addendum with Mr. Robert Morris dba Gladstone's 4 Fish, and authorize the City Manager to execute the appropriate documents. Prepared by: Gary Ferguson Peter Kipp Exhibit "A" Meek Construction Letter "B" Koebig & Koebig Survey "C" Pier Piling Replacement Memo "D" Revised Revenue Projections "E" Lease Addendum EXHI13IT "A" OHN L MEEK CONSTRUCTION CO., 1032 WEST "C" STREET WILMINGTON, CALIFORNIA 90744 JOHN L. MEEK PRESIDENT December 1, 1977 City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: Don Arnett 12 13) 830 -4323 D. B. PUGH VICE PRESIDENT Re: Proposal to acquire interest in condemned Fishing Pier, Santa Monica Pier. Gentlemen: 775 -7297 C. O <' rrl 1l � 0 rr _. The John L. Meek Construction Co. wishes to acquire the lease on the condemned fishing pier at the south easterly end of the parking lot on the Santa Monica Pier. (See drawing, attachment #1. Our company intends to: a) Refurbish the fishing pier with new piling, caps, stringers and decking as necessary, and b) Install a building to serve as a fresh fish market with an out -door patio area with tables for eating if desired. We would, apply for a beer and wine license. If we could commence our repair work on the fishing pier while construction equipment is available on the pier as it is now, the fish market would be in operation within fifteen months. This type of facility would be an asset to the pier area, complementing all existing businesses. The location, with the ocean on three sides is ideal. The fishing pier area is 60' x 90' (5400 sq. ft.). The fish market and outdoor patio area would utilize approximately 4000 sq. ft. leaving 1400 sq. ft. around the perimeter of the fishing pier for strolling and fishing. With the repair of the parking lot area (Phase 1 and Phase 2 Santa Monica Pier Repair) adequate parking will be available. r. 7 PILEDRIVING FOUNDATIONS MARINE AND GENERAL CONSTRUCTION Agenda Item 11 -A: Presented at this time was a recommendation for approval of a lease addendum for a restaurant on Santa Monica Pier dba Gladstone's 4 Fish. Member of the public Walter Schwartz spoke in regard to charging lease rates competitive with public enterprise. Following discussion, Councilmember Yannatta moved to approve a lease addendum with Robert Morris dba Gla stone's 4 Fish, a restaurant on Santa Monica Pier, by award of Contract No. 3377(CCS), and authorizing the City Manager to execute the appropriate documents. Second by Mayor Pro Tempore Reed. The motion was approved by the following vote: Council Vote: Affirmative: Councilmembers Bambrick, Jennings, Swink, Yannatta, Mayor Pro Tempore Reed and Mayor van den Steenhoven Negative: Councilmember Scott City Council Meeting July 24, 1979 I / - I'v 14/ EXHIBIT "B" STRUCTURAL SURVEY OF THE SANTA MONICA MUNICIPAL AND NEWCOMB PIERS Prepared for the City of Santa Monica December, 1973 Prepared by KOEBIG & KOEBIG, INC. Engineering - Architecture- Planning Los Angeles, California 0 G. Structural Adequacy - Newcomb Pier The structural analysis contained in Appendix III is based on the assumption that the recommended repairs have been made, and all timber and steel hard- ware connections are reasonable sound. The 1973 Edition of the Uniform Building Code has been used as the reference for loading and stress criteria. Results of the structural analysis are as follows: 1. The 3" x 12" deck stringers (joists) were analyzed for live load and the dead load of 2" decking and 2" asphalt paving. The analysis indicates that these stringers are not adequate to support the live load _ v of 100 pounds per square foot required for "public assembly areas ". The live load capacity of these stringers is 50 pounds per square foot, which is the U.B.C. loading for parking structures. 2. The 3" x 12" stringers will support the dead load plus a truck live load of 2.5 tons or a concentrated wheel load of 2000 pounds. 3. The typical 12" x 12" bent cap is supported on piles at approxi- mately 10 feet on centers. Analysis of the caps indicates they too are inadequate to support the U.B.C. load required for public assembly areas. Horizontal shear stresses limit their capacity to 60 psf live load. Considering the 2.5 ton truck loading, stresses are approximately 50 percent of the allowable values. The bent caps are therefore adequate to support the live load and truck loading of the 3" x 12" stringers. H 1 -27- E IV. RECOMMENDATIONS It is the City's wish to determine the cost of remedial work necessary to upgrade the .pier structures for an estimated 20 -year life. As in most piers, the piling represent the largest problem from the standpoint of cost and maintenance. As indicated previously, many of the piles are deteriorated to various degrees, primarily as a result of attack by marine borers. These piles must either be replaced, repaired, or pro- tected against further infestation and attack, depending upon the degree No of deterioration. Severely deteriorated piles can be replaced by piles ego 4. A seismic analysis was made for conditions of seismic loading utilizing dead loads as the pier is now constructed. Various bents were investigated, using an average pile diameter of 11 inches at the sand line. All pile groups were found to be adequate to sustain seismic and vertical dead and live loads. The dead load contribution of buildings at _ the most critical bent (with longest piles) is not sufficient to overstress the piles. This analysis included an investigation of the amount of deterioration which could be tolerated without structural repair or replacement. On the basis of this investigation, it was concluded that; 1) piles with more than r 65 percent deterioration should be replaced; 2) piles deteriorated 40 percent but less than 65 percent can be encased with concrete; and 3) - piles with less than 40 percent deterioration do not require encasement, but should be protected against further loss of pile section. IV. RECOMMENDATIONS It is the City's wish to determine the cost of remedial work necessary to upgrade the .pier structures for an estimated 20 -year life. As in most piers, the piling represent the largest problem from the standpoint of cost and maintenance. As indicated previously, many of the piles are deteriorated to various degrees, primarily as a result of attack by marine borers. These piles must either be replaced, repaired, or pro- tected against further infestation and attack, depending upon the degree No of deterioration. Severely deteriorated piles can be replaced by piles ego Of wood, concrete, or steel. Piles not sufficiently deteriorated to re- quire replacement can be protected and strengthened by concrete encase- ment of the damaged area. A current method which has proven successful uses a reinforcing cage positioned around the pile with spacers. A zip- pered nylon bag fabricated to the proper length and diameter is held in place by additional spacers, and becomes the outer form for the encase- ment. The bag is filled with a rich concrete grout to provide a minimum 4 -inch encasement. Piles which are infested with borers but not requiring repair, can be pro- tected against further borer damage by wrapping them with a flexible poly- vinyl chloride (PVC) sheet. The wrap creates an envelope of stagnant . water around the pile, reducing the water oxygen content below the mini- mum limits for survival of the borers. It is recommended that this wrapping being extended to elevation +8 (MLLW). The degree of deterioration for each method of repair was established preliminarily before the field inspection to assist the field party in determining the limits of repair required at each pile. The preliminary values were: 0 -20 percent deterioration - plastic wrap 20 percent - 40 percent deterioration - encasement a More than 40 percent deterioration - replacement -29- plm'47xv /ay. 4t (FLO „J. • ( a 117- 0,-; M 7 Q Bra T.x I '7. J7 Rc. .95 if '33 jz it jo 21 C7 $O' /. A115-41AIG OYEZ SeE S"effri CITY OF SANTA MONICA xax SHEET NO, I - =MUNICIPAL AND NEWCOMB PIER STUDY m" _Lm —m P kC.R PIER PLAN I 11 29'T3 r C. a CIS, 2'/s 14 7 AV —y� :.LZ 74 31 WA.y 61. j 7S -4 plm'47xv /ay. 4t (FLO . • ( a • 1 W/7,V 7Z;- 44ylelm*dZL '7. J7 Rc. .95 if '33 jz it jo 21 C7 $O' /. A115-41AIG OYEZ SeE S"effri plm'47xv /ay. 4t (FLO . • ( a • 1 W/7,V 7Z;- 44ylelm*dZL J7 Rc. .95 if '33 jz it jo 21 C7 $O' /. A115-41AIG OYEZ SeE S"effri CITY OF SANTA MONICA xax SHEET NO, I - =MUNICIPAL AND NEWCOMB PIER STUDY m" _Lm —m P kC.R PIER PLAN I 11 29'T3 r C. a CIS, 4t (FLO J7 Rc. .95 if '33 jz it jo 21 C7 $O' /. A115-41AIG OYEZ SeE S"effri CITY OF SANTA MONICA xax SHEET NO, I - =MUNICIPAL AND NEWCOMB PIER STUDY m" _Lm —m P kC.R PIER PLAN I 11 29'T3 EXHIBIT " CITY OF SANTA MONICA DATE: June 8, 1979 TO: Peter Kipp, Pier Business Manager FROM: Doug McAteer, City Engineer SUBJECT: Pier Piling Replacement -- Gladstones "4" Fish I had a meeting on June 6, 1979 with Jim Mount, his engineer, and John Meek, Jr. I was informed that the loadings for the piling in the area of Gladstones is 14 kips for the interior piling and 33 kips for the exterior piling. Mr. Mount requested, and I agreed, to prepare a written report indicating the number of piling that must be replaced in the area of the proposed restaurant. Following are the facts, assumptions, and criteria that I have used to arrive at my recommendation: Facts: 1. Restaurant Size -- 60' x 125' @ 50 P.S.F. L.L. 2. Public Walkway -- 5.5' @ 100 P.S.F. L.L. 3. Existing Piling Spacing -- 10' x 20' 4. All existing caps, stringers, and decking must be replaced. 5. 49 Piling are within the building site. Assumptions: 1. Sound Existing Bearing Capacity -- 20,000# 2. Exterior Piling Loading -- 33,000# 3. Interior Piling Loading -- 14,0004 Criteria: 1. All exterior piling must be replaced. 2. All interior piling indicating 25% or more of deterioration in cross - section, must be replaced. 3. All interior piling that indicate dry -rot 24- inches or more below the pile butt must be replaced. 4. Interior piling that indicates less than 25% deterioration may be used, but must be tested by a loading method equivalent to 20,000# Any piling failing this test must be replaced. Peter Kipp June 8, 1979 Page Two Recommendation: 1. 24 of the 49 piling must be replaced. 2. All 49 piling shall be protected by wrapping with a 1/4- inch -thick plastic material between 6 feet above and 6 feet below the mean high tide line. 3. Sufficient batter piles shall be installed for lateral resistance. 4. 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