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SR 07-26-2016 3D City Council Report City Council Meeting: July 26, 2016 Agenda Item: 3.D To: Mayor and City Council From: Karen Ginsberg, Director, Community & Cultural Services Subject: License Agreement with Film Independent for use of a portion of the 1550 Beach Parking Lot for the Independent Spirit Awards and Revision to the 1550 Lot Cultural/Entertainment Event Policy Guidelines Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a license agreement with Film Independent to use a portion of the 1550 lot for the Independent Spirit Awards from February 15 to March 1, 2017. 2. Approve a revision to the 1550 PCH Lot Cultural/Entertainment Event Policy Guidelines to allow for soliciting multi-year event proposals. Executive Summary In accordance with the 1550 PCH Parking Lot Cultural/Entertainment Event Policy (1550 Lot Event Policy), staff recommends holding the Independent Spirit Awards (ISA) in the 1550 lot on February 25, 2017. Last year marked ISA's relocation to the 1550 lot after 20 years in the 2030 Ocean Avenue beach lot following the implementation of changes to the Community Events Guidelines that closed the south beach lots as event venues. The proposed rental fee to the Beach Fund for the portion of the 1550 lot for this period is $93,795 and is included in the FY 2016-17 revenue projections for the Beach Fund. Based on the success of the ISA in the 1550 lot and the minimal impacts to the Pier and surrounding neighborhood, it is expected that the ISA will apply to return on an annual basis. Staff recommends that 1550 Lot Event Policy guidelines be revised to allow for the solicitation of multi-year event proposals for up to a period of three years. Background Council first approved a policy to allow commercial events in the 1550 PCH parking lot (1550 lot) on September 14, 2004 (see attachment A). The policy has been modified over time to provide greater flexibility in the review process and evaluation criteria, and to incorporate concerns of the Santa Monica Pier Corporation (SMPC). The policy has been used primarily to bring performances and exhibitions, such as Cirque du Soleil and Ashes and Snow, which take up a large footprint or occupy the lot for a longer time than 1 of 6 is allowed under the Community Events Ordinance. The Independent Spirit Awards (ISA) had been held in the 2030 Ocean Avenue beach lot for the past 20 years until it was relocated to the 1550 lot for the 2016 award show. This is a one day awards show that is held in a large tent and requires about two weeks to set up and strike. The move to the 1550 lot was necessary when changes were made to the Community Events Site Guidelines to close the south beach lots as event venues. Council approved a license agreement with Film Independent to stage the 2016 ISA on a portion of the 1550 lot on August 25, 2015 (see Attachment B). The event was held on February 27, 2016 and ISA occupied the site from February 18 to March 2, 2016. Since this was a new venue, Film Independent staff worked closely with City departments to ensure a smooth and successful run. Overall, the event was very successful and had minimal impacts on the Pier and beach neighborhood. Discussion Vendor Selection On September 3, 2015, staff issued a Request for Proposals (RFP) for the FY 2016-17 Event Season for entertainment or cultural events that extend beyond the three day -scale single day events that exceed the allowable space in the beach lot. The RFP was posted on -line bidding website in accordance with the City Charter and Municipal Code provisions. Four hundred and ninety-two vendors were notified, fifty-two vendors downloaded the RFP. Two firms responded. Proposals were received from Film Independent for the 2017 ISA and from Firefly Field. The Firefly Field proposal was incomplete and did not include a site plan of the proposed event, which was to include circus acts. Further discussions with the Firefly Field proposal team revealed that this was a new venture and that neither the funding nor the event itself had been fully developed and the proposal was subsequently withdrawn. Based on the success of the 2016 ISA and follow up discussions with the 2 of 6 SMPC and Pier lessees, staff is recommending that ISA return for 2017. Film Independent Proposal for 2017 Highlights of the Film Independent proposal are as follows: Independent Spirit Awards would take place on Saturday, February 25, 2017 The Occupation Period would run from February 15 to March 1, 2017 ISA would occupy approximately 142,000 square feet of the lot, using 526 of the 1,173 spaces in the 1550 lot. The rental for the site is $93,795 for the two week period. ISA would work with the SMPC and Pier tenants to build on marketing efforts that began last year and continue to provide meals to ISA staff during the two week period, ISA would continue to work with local hotels to host sponsors, nominees, and talent; ISA booked 350 rooms in 2016. ISA would address the suggested improvements listed below that were raised during the de-briefing session with City departments and representatives of the Pier and Pier tenants 2016 ISA Debrief Meeting Suggestions Following the ISA, staff met with representatives from the many departments and divisions involved in monitoring large scale events, including Police, Fire, Transportation, Parking, as well as representatives from the Pier and Pier tenants to review the event and provide suggestions for future improvements. Overall, the event was judged to be successful, with few issues and minimal impacts to the Pier tenants. ISA worked with Santa Monica Travel and Tourism (SMTT) and the SMPC to develop a at the Wyndham Santa Monica Pier, and gift certificates to three Pier businesses. ISA the businesses on the Pier. The major concern expressed by the SMPC and Pier tenants was the need for better planning and communication to manage employee parking on the day of the event. Other observations and suggestions include the following: No public safety problems; plan for extra Police deployment in the future. Create a buffer to keep pedestrians away from the bike path during the red carpet viewing. Review the shuttle route and reduce the number of shuttles from offsite lots; traffic safety officers were effective in keeping the shuttles moving through heavy 3 of 6 traffic between the Civic Auditorium and the 1550 lot. Shift placement of tent to preserve parking along the north edge of the 1550 lot. Add more barricades and affix them in place. Continue to work with Pier on promotions and partnerships such as providing meals for the crew, hosting a viewing party on the Pier, offering the Pier tenants promotional tie-ins. Add bike valet. Improve pedestrian circulation within the 1550 lot to the entrance to the tent. Proposed Revision to the 1550 Beach Parking Lot Cultural/Entertainment Event Policy Guidelines The 1550 Lot Event Policy currently provides for the issuance of an RFP for the upcoming event season (Labor Day through Memorial Day) on an annual basis. This allows for proposals to be viewed at once to foster a competitive bidding process. The guidelines also provide for proposals to be submitted and reviewed on a rolling basis if they are submitted at least six months prior to the start date. With the exception of the 2014 event season, when two proposals were received, this process has generated either one or no proposals since the RFP process was introduced in 2011. While many event producers have expressed interest in the 1550 lot, the high cost of building the event infrastructure and extensive requirements for producing large scale events have resulted in very few feasible proposals. Given the likelihood that ISA will apply to return to the 1550 lot on an annual basis for the near future, staff recommends that the guidelines be revised to provide for consideration of proposals for up to three years. This would allow staff and the producer of an event that occurs on an annual basis to negotiate a license agreement for a three year term. This would provide predictability for City staff, the event producer, and Pier businesses and neighbors, who are most directly impacted by large events, as well as streamline the event planning process. Conditions at the Pier and the beach have changed since the 1550 Lot Event Policy was initiated to enliven the beachfront and attract visitors during the slower times of the year. As year-round act weekends in January and February may be as busy as summer weekend days. The 4 of 6 preferred time period for larger events is January through March. Under the proposed revision, if an event proposal meets the criteria and is approved for a three-year term, this time period would be removed from the Event Season for the three year period, however, proposals for the rest of the Event Season would still be considered through the rolling review process. Public Outreach Staff attended the June 20, 2016 SMPC meeting to review the 2016 ISA event and discuss the 2017 ISA proposal and suggested improvements. Staff also presented the proposed revision to the 1550 Event Policy guidelines to allow for multi-year proposals. The SMPC voted unanimously to welcome ISA back in 2017 and to support the multi- year proposal as a means to ensure predictability and to provide the opportunity to refine practices and procedures. The SMPC also reiterated its support for continuing cross marketing and cross promotions and keeping the loading in and out on a weekday to minimize disruption to operations Environmental Analysis The license Agreement with Film Independent for use of a portion of the 1550 lot is categorically exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines, Section 15304(e), as these actions constitute minor temporary use of land having negligible effects on the environment. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. 5 of 6 Prepared By: Judith Meister, Beach Administrator Approved Forwarded to Council Attachments: A. September 14, 2004 Staff Report (Web Link) B. Staff Report August 25, 2015 (Web Link) 6 of 6 City Council Report City Council Meeting: July 26, 2016 Agenda Item: 3.E To: Mayor and City Council From: Karen Ginsberg, Director, Community & Cultural Services, Cultural Affairs Subject: Award of Bid for Security Services at the Annenberg Community Beach House Recommended Action Staff recommends that the City Council: 1. Award Bid #4243 to DHS Private Security, Inc., a California-based company for security services at the Annenberg Community Beach House; 2. Authorize the City Manager to negotiate and execute an agreement with DHS Private Security, Inc. in an amount not to exceed $165,575 for one year, with four additional one-year renewal options with a 3% annual increase, on the same terms and conditions for a total amount not to exceed $879,060 over a five-year period, with future year funding contingent on Council budget approval. Executive Summary The Annenberg Community Beach House (Beach House) has contracted with a security firm since April 2009, adhering to the conditions of approval adopted by the City Council in May 2006, which require the City to provide on-site personnel year-round, including nighttime security staffing. Staff recommends the award of a bid to DHS Private Security, Inc. for security services at the Annenberg Community Beach House. The estimated expenditure for August 2016 through July 2017 is $165,575. The total estimated expenditure with the optional four one-year renewal options is $879,060. Background The Beach House sits on a five-acre parcel of Santa Monica State Beach. This property, originally developed by William Randolph Hearst for actress Marion Davies in the 1920s, has played an important role in Southern California life. After being known as the Marion Davies Estate, it became an ocean-front luxury hotel, then as a private beach club. The site opened as a public beach facility known as the Annenberg Community Beach House on April 25, 2009. The Beach House combines elements of the historic Marion Davies Estate with new amenities to create a truly unique community destination that is open to all. The vision of creating a vibrant public space was supported by extensive input from a range of City departments, concessionaires and 1 of 5 contractors, the Recreation Parks Commission and community members. Funding for Beach House operations, as approved by the City Council in June 2008, points to the -responsive programming, quality visitor services and a high level of maintenance and security. The Beach House is operated in adherence to requirements specified in the following governing documents: Statement of Official Action (Attachment A) approved by City Council on May 25, 2006 Settlement Agreement (Attachment B) dated September 13, 2006 Operations Plan (Attachment C) dated February 20, 2009 In accordance with the above-mentioned governing documents, the City is required to provide year-round on-site personnel including nighttime security staffing. Since opening its doors to the public in April 2009, the Beach House has worked with contractors to provide security staffing for evenings, holidays when the site is closed to the public, and other permitted functions as determined by staff. On January 19, 2010 (Attachment D), Council awarded Bid# 2988 to Alltech Protective Services for security guard services from January 2010 through June 2013. On July 23, 2013 (Attachments E & F), Council awarded Bid# 4070 to Eagle Security Services, Inc. for security guard services from August 2013 through June 2016. On August 26, 2014, the City Council directed staff to study the potential of contracted services being performed by in-house staff. Staff identified a total of 43 contracted services with a total annual cost of approximately $24 million, which includes security services for the Beach House, Big Blue Bus and the Library. Staff looked at a number of criteria such as workforce flexibility, specialized/technical expertise, space requirements, capital/equipment requirements, risk, proprietary control and length of time services are needed. Based on the level of training, certification and expertise, and 2 of 5 the advantages of not recommend bringing security services in-house. Discussion Due to the size and accessibility of the Beach House, contracted security personnel provide the level of security required in the governing documents for conditions of approval for the operations of the site. Security personnel patrol the grounds from dusk to dawn 365 days a year, to ensure the safety of employees and visitors, and that facilities and infrastructure are secure and protected from trespassing and vandalism. In addition to observing and reporting, duties for security personnel at the Beach House include: Providing regular roaming patrols at nighttime, checking in at electronic stations throughout the site Securing vehicle entrances to the Beach House parking lots and external doors Staffing property at night and holidays to monitor access, maintaining a high visibility presence, and taking appropriate measures to prevent trespassing, damage, or theft of Beach House property Assisting City of Santa Monica personnel, fire and law enforcement as necessary by providing perimeter access control, traffic direction or by acting as site liaison Enforcing rules and providing support to Beach House staff when hired for private events that may involve alcohol, are youth-focused, or attended by high- visibility individuals. Vendor Selection On May 3, 2016, the City published Notices Inviting Bids to furnish and provide security guard services in accordance with City specifications. The bid was posted on the City's on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four hundred eighteen vendors were notified, fifty-seven vendors downloaded the bid. Twelve bids were received and publicly opened on May 20, 2016 per Attachment G. 3 of 5 Of the twelve bid responses received, one was rejected for vendor's failure to attend the mandatory job walk conducted on May 12, 2016. The eleven remaining bid responses were evaluated based on overall pricing provided. The three vendors with the lowest overall pricing per Attachment H were invited for interviews by a panel comprised of Community & Cultural Services Department and Finance Department staff. DHS Private Security, Inc., Eagle Security Services, Inc. and Alltech Industries, Inc. were evaluated based on the criteria in SMMC 2.24.072, including overall price, previous experience, ability to deliver, quality of service, references, understanding of the scope of service, and compliance with City scope of work and specifications. DHS Private Security, Inc., the lowest bidder, is recommended as the best bidder. This vendor offered the most alignment with the current Beach House scope of work and quality of service desired inclusive of: cost; combined experience in providing site security and private event security working with organizations such as Wiseman Residential and the American Liver Foundation; knowledge, experience and training of its management and field personnel; real-time response and reporting through use of technology; and hands-on responsive management. Financial Impacts and Budget Actions The agreement to be awarded to DHS Private Security, Inc. is for an amount not to exceed $879,060. Funds of $165,575 are available in the FY 2016-17 budget in the Community & Cultural Services Department. The agreement will be charged to account 11523.555010. Future year funding is contingent on Council budget approval. 4 of 5 Prepared By: Nan Friedman, Beach House Venue Manager Approved Forwarded to Council Attachments: A. Attachment A - Statement of Official Action B. Attachment B - Settlement Agreement C. Attachment C - Operations Plan D. Attachment D - 01.19.10 Staff Report E. Attachment E - 07.23.13 Staff Report F. Attachment F - 07.23.13 Staff Report Attchment G. Attachment G - 4243 ACBH Security Bid Results H. Attachment H - 4243 ACBH Shortlist 5 of 5 wĻŅĻƩĻƓĭĻʹ AgreementNo.10344 (CCS)