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SR 07-12-2016 3F City Council Report City Council Meeting: July 12, 2016 Agenda Item: 3.F To: Mayor and City Council From: Rod Merl, Pier Manager, Public Works, Pier Management Subject: Santa Monica Pier Corporation FY 2016/17 Budget and Work Plan Recommended Action Staff recommends that the City Council approve the Santa Monica Pier Corporation Executive Summary Staff is presenting to Council for approval the proposed Santa Monica Pier Corporation (SMPC) Budget and Work Plan for FY 2016/17. The Work Plan summarizes the activities, projects and programs SMPC intends to carry out during the Fiscal Year. The 17 total revenues are projected to be $2,177,217, which include City funding of $713,217, and total expenditures are projected to be $2,147,500 (Attachment A). Background The Santa Monica Pier Restoration Corporation (PRC) was originally formed in 1983 for the purpose of assisting the City in restoring a Pier devastated by winter storms. In 2012, the SMPC was reconstituted, renamed and refocused on event production, marketing, sponsorships, and community engagement. In addition, Council tasked the SMPC to assist the City with the development and revision of Pier policies and guidelines for Council approval. th The Pier enters its 107 d destination. To underscore this achievement, the Santa Monica Pier was nominated as one of USA as one of the top 10 most Instagrammed locations in the world. The Services Agreement between the City and SMPC approved by Council on July 14, 1 of 4 2015 requires the preparation of an annual budget and work plan. In accordance with the Services Agreement, SMPC is submitting its FY 2016/17 budget and work plan for Council review and approval. Discussion Santa Monica Pier Corporation is a 501(c)(3) non-profit organization that is under contract with the City to oversee event management and production, marketing, and sponsorships, as well as to assist the City with seeking public input on the formulation of policies and guidelines concerning the Pier. Guidelines for the Pier include leasing, sponsorship and marketing standards. In anticipation of the arrival of Expo light rail, the completion of Colorado Esplanade, as well as the upcoming replacement of the existing Pier Bridge, SMPC has also completed a series of public workshops that resulted in the preparation of a Pier Use and Access Study with recommendations on how to support promote improved fiscal and environmental sustainabilitywill be presented to Council at a future date. The Pier Access and Use Study and recommendations will also be presented to Council in the future. FY 2016-17 Budget SMPC projects total revenues for FY 2016-17 in the amount of $2,177,217 and expenditures in the amount of $2,147,500 (Attachment A). Budgeted revenues include nd production of the Twilight Concert Series now in its 32 season. Non-City funded revenue sources account for an additional $1,464,000 in anticipated revenue generated from event deck rentals, film permits, carousel rentals, corporate promotions, and arts and lifestyle programing. Expenditures related to the management of carousel and pier deck rentals, and the establishment and operation of the visitor center are projected to be $246,500. Costs 2 of 4 related to staff salaries including benefits and insurance will be $798,000. Expenditures related to programming including the Twilight Concert Series, other annually recurring events and new programming opportunities are projected to be $1,103,000. The SMPC presents a balanced budget for FY 2016/17 with a projected surplus of $29,717 which will be earmarked for public community events. FY 2016-17 Work Plan The stated goal of the FY 2016- strategy to accomplish this goal is presented in the attached work plan for FY 2016/17 (Attachment B). The work plan focuses on the following four areas: 1. Develop a Pier Access & Use Study implementation plan, 2. Evaluate the impacts of the Expo Line on Pier traffic and safety, 3. 4. Sustain core programing. Commission Action The Pier Corporation Board of Directors approved the FY 2016/17 Budget and Work Plan on April 25, 2016. Financial Impacts and Budget Actions Funds in the amount of $713,217 for the Santa Monica Pier Corporation are available in the FY 2016/17 Budget in the Public Works Department at account 30454.577300. Approval of the work plan and budget for FY 2016/17 has no additional budget or financial impact on the City. Prepared by : Elana Buegoff, Sr. Development Analyst Attachment A. Santa Monica Pier Corp FY 2016/17 Budget Attachment B. Santa Monica Pier Corp FY 2016/17 Work Plan 3 of 4 Prepared By: Elana Buegoff, Senior Development Analyst Approved Forwarded to Council Attachments: A. SMPC WORKPLAN 16-17 B. SMPC BUDGET FY16_17 FINAL REVISED 4 of 4 SantaMonicaPierCorporation 20162017WorkPlan ToelevatethevisitorexperienceofthePierforallaudiences Fiscalyear20152016wasmarkedbyongoingconstructionandimprovementprojects aswellthecollaborativedevelopmentofthePierAccess&UseStudy,anoutlineof enhancementrecommendationscoauthoredbythePierBoard,CityStaffandROMA consultants. Infiscalyear20162017theBoardandstaffwillevaluatefeasibleactionstepsforthe PierAccess&UseStudyandproposeanimplementationplan.Onceagainweexpect thistobeacollaborativeprocesswithCityStaffthatincorporatestheinterestsofPier stakeholders.Anotherpivotaldocumentaffectingthe0¨¤±Ȍ²futureistheupdatetothe LocalCoastalPlan.SincetheLocalCoastalPlanaffectsfutureopportunitiesforPier enhancements¨³Ȍ²imperativethatthe0¨¤±Ȍ²interestsarerepresentedduringthe draftingoftheupdate.HopefullyaBoardstudygroupcantrytoparallelpaththis processwiththePierAccess&UseStudyimplementationplan. UpgradestotheentranceofthePier,theEsplanade,theCaliforniaInclineandthe openingofEXPOwillcoincidewithournewfiscalyear.OneoftheBoardand²³ ¥¥Ȍ² biggesttaskswillbeanalyzingtheireffectsandadaptingstrategiestoensurethebest visitorexperience.Potentialareasofconcernarewayfinding,trafficflow,traffic volume,publicsafetyandaccessingeneral. Access&UseStudyImplementationPlan ToensurethemomentumandcollaborativespiritembodiedinthePierAccess&Use Study£®¤²Ȍ³wane,thePierBoard,alongwithCityandPierBoardstaff,willdevelopa setoffeasibleshorttermactionstepsandcommenceimplementation.Stepswill dependonareasofgreatestnecessity,financing,theoutcomeoftheLocalCoastalPlan, impactstoPierstakeholders,Citycooperationandgreatestbenefittothevisitor experience. EvaluateimpactsofEXPO TheimpactsandridershipoftheEXPOlinetothePierandbroadercommunitywillnot befullyrealizedformonthsafteritsopening.ThePierCorpneedstobevigilantabout monitoringimpactsanddevelopingstrategiesthataddressissuesforthePier community.WeexpectEXPOtobeapositiveforceindeliveringnewandexisting visitorstothePierandprovidingalternatetransportationinthehopesofreducing trafficandparkingconcerns. Clarityofwayfinding Pedestrianflowandaccessissues PublicSafety Communicationsabouttransportationoptions StreetPerformerimpacts RepresentationinLocalCoastalPlanupdate SustainingCoreProgramming WiththePierareainaconstantstateofconstructionoverthepastfewyears, maintainingconsistentandhighqualityprogramminghasbeenparamountthePier brand.Programmingisoneexperiencethatwecanensureconsistently,andwiththe openingoftheEXPOline,¨³Ȍ²anopportunitytoexposenewvisitorstothePierasan historicplatformforcontemporaryculture. Music TwilightConcertSeries Film FrontPorchCinema(5year) th ActiveLifestyle PaddleboardRace&OceanFestival(7year) th ROGA(4 th year) Education:STEAMMachines WakeUpWithTheWaves(10year) th PierHistoryPlay(2year)ȟ nd Misc OnGoing ThePier#®±¯Ȍ²servicesagreementwiththeCityoutlinesanumberofspecific responsibilitiesthatthePierCorpmanageseachyear.Inadditiontothecontracted servicesstatedbelow,thePierCorpworkstogetherwiththelesseesandPier stakeholderstoelevatethePierbrandandpromotethehighestlevelofvisitor experience.Belowisabriefsummaryoftheservicesagreement: Communityeventdevelopmentandproduction Privateeventmanagementandfacilityrental Filmshootcoordination Marketing,advertisingandpromotions Licensing Sponsorshipsandfundraising Pierstreetperformerlotteryadministration Communityoutreachandvolunteerprograms SANTAMONICAPIERCORP FY2016/2017Budget RevisedBudget ProposedBudget%Changefrom 2015/16 FY16/17 PreviousYear Income CityFunding$703,000$713,217 1% FacilitiesEventDeckRental$289,000$250,000 13% FacilitiesFilmPermits$113,114$115,000 2% FacilitiesCarouselRental$99,000$100,000 1% FacilitiesCorporatePromotions$25,000$30,000 20% FacilitiesPierShop&VisitorCenter$21,000$24,000 14% ProgrammingMusic$422,548$690,000 63% ProgrammingFilm$113,090$75,000 34% ProgrammingActiveLifestyle$150,000$150,000 0% ProgrammingEducation$24,000$30,000 25% 11% TotalIncome$1,959,752$2,177,217 Expenses FacilitiesCityRefundCarousel$38,500$38,500 0% FacilitiesCityRefundPierDeck$125,300$115,000 8% Facilitiesstaffing,security,&supplies$45,000$70,000 56% FacilitiesVisitorCenterongoingcosts$20,000$23,000 15% PeopleWages&Salaries$588,000$575,000 2% PeopleBenefits$128,000$143,000 12% PeopleOfficeSupplies,Services,Audit,Insurance$76,750$80,000 4% MarketingOutreach,PR,Advertising$32,000$50,000 56% ProgrammingMusic$545,863$690,000 26% ProgrammingFilm$66,919$80,000 20% ProgrammingActiveLifestyle$150,000$150,000 0% ProgrammingEducation$40,000$43,000 8% ProgrammingArts$0$40,000 PlanningContingency$0$50,000 TotalExpense$1,856,332$2,147,500 16% NetIncome$103,420$29,717