SR 08-28-2018 13C 13.C
August 28, 2018
Council Meeting: August 28, 2018 Santa Monica, California
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CITY CLERK’S OFFICE - MEMORANDUM
To: Mayor and City Council
From: Denise Anderson-Warren, City Clerk, Records & Elections Services
Department
Date: August 28, 2018
13.C Request of Councilmembers McKeown, Himmelrich, and Mayor Winterer
that the Council support a request from the Santa Monica Pier Lessees’
Association (SMPLA) to allocate an amount not to exceed $27,000 of
Council contingency funds for a feasibility study to explore improvement
district options at the Santa Monica Pier. The feasibility study would be
produced by Progressive Urban Management Associates, managed by the
Office of Pier Management on behalf of SMPLA.
August 9, 2018
Elana Buegoff
Pier Administrator
Economic Development Division
City of Santa Monica
Dear Elana:
On behalf of Progressive Urban Management Associates (P.U.M.A.), I am pleased to submit this
consulting proposal in response to the City of Santa Monica’s interest to complete a feasibility
study to determine management and improvement district options for the Santa Monica Pier.
P.U.M.A.
Progressive Urban Management Associates (P.U.M.A) is a national real estate economics and
planning consultancy offering management, marketing and financial expertise to advance
downtown and community development. In the past 25 years, P.U.M.A. has assisted more than
250 clients in 36 states, Canada and the Caribbean. A firm profile and additional information is
available at www.pumaworldhq.com.
P.U.M.A. offers experience in strategic planning, organizational development and business
improvement district formation and renewal. Nationally, we have helped to form or renew
nearly 80 urban improvement districts that collectively are generating more than $100 million
to support enhanced services and improvements. We bring a 13-year track record in Santa
Monica, having assisted the City and downtown stakeholders to develop the downtown
property-based assessment district (PBAD). We later helped the City and Downtown Santa
Monica Inc. in efforts to form the north Lincoln Boulevard and Colorado Overlay districts. We
are currently under contract to determine the feasibility for establishing an improvement
district along the remainder of the Lincoln Boulevard corridor.
Our team for the Santa Monica Pier will include the following:
Brad Segal, president of P.U.M.A. and project manager for the Santa Monica Pier feasibility
study, has more than 30 years of experience in the downtown and community development
field. Prior to establishing P.U.M.A., Brad served as the senior director of the Downtown
Denver Partnership, managing its economic development and marketing programs.
Acknowledged as a national expert in downtown trends, development and management, Brad
has completed four terms on the board of the International Downtown Association.
Brad will be supported by Erin Lyng, P.U.M.A.’s associate vice president and lead support for
many of our recent strategic planning efforts. Erin is currently the project manager for a similar
assignment in Burlington, Vermont, where P.U.M.A. is developing several options for a new
improvement district model. Erin has been at P.U.M.A. for five years.
Kristin Lowell of Sacramento-based Kristin Lowell, Inc. will serve as the certified engineer for
the project providing counsel to evaluate the pros and cons of various improvement district
mechanisms that might best fit the needs of the Pier.
Elana Buegoff
August 9, 2018
Page 2.
Project Understanding
The Santa Monica Pier is an iconic destination that readily identifies Santa Monica and the Los
Angeles Basin to the world. The Pier is also a critical economic asset for Santa Monica,
attracting millions of visitors annually. Despite its prominence, the Pier is challenged to
maintain and build upon its success.
Daily visitation has increased since the opening of the downtown Santa Monica Metro Rail
station. Also increasing are nuisances that include illegal vending and an inability to properly
maintain the Pier during peak periods. Inappropriate behaviors from transients and other
populations have intensified and the Pier lacks the Ambassador approach that is provided in
downtown. These challenges are not limited to the Pier and are affecting neighboring parking
lots, beaches and commercial properties.
P.U.M.A.’s consulting approach would assist the City of Santa Monica, Pier merchants and
other stakeholders to design and create an improvement district and/or community
development strategy focused on clean and safe services and tailored to the unique needs and
real estate dynamics of the Santa Monica Pier. Specific project objectives include:
• Assess current and future market influences affecting the Santa Monica Pier.
• Engage a variety of Pier stakeholders, including merchants, the City and the Pier
Corporation in a participatory process to develop the study.
• Evaluate a variety of revenue options that collectively could fund enhanced services and
improvements.
• Create improvement district options for the Pier, providing recommendations for rationale,
boundaries, work program, budget, assessment methodology and governance.
• Engage a variety of district stakeholders (i.e. property owners, businesses, residents, civic
leaders, etc.) in a participatory process to evaluate the improvement district opportunity.
Suggested District Feasibility Approach
To meet the preceding objectives, we propose a three-step process that could be completed
within a four- to six-month timeframe.
To advise the consultant team, and meet the goal of alignment and consensus among a diverse
array of Pier stakeholders, we expect to work in concert with City staff and a project working
group. The role of the working group is to meet with the consultant team during site visits and
participate in a series of creative workshops that will shape expectations, design and execution
of the Feasibility Study.
Step 1: External Environment Assessment
The external environment assessment is intended to understand the myriad economic and
political forces that are currently impacting the Pier. This step will also aim to engage a variety
of Pier stakeholders into the development of the plan. The assessment would include:
Elana Buegoff
August 9, 2018
Page 3.
• On site monitoring of Pier usage during peak and off-peak time periods.
• Review the status of improvement projects and any Pier planning studies or market reports
completed in the past five years.
• An in-depth analysis of revenue sources that are generated and/or impacted by the Pier,
including sales tax and parking revenues.
• A review of existing Pier procedures and fees, including leases, vendor fees, financial and/or
budget reports, existing City service deployment and policies, etc.
• A review of existing services provided by the City.
• One-on-one and small group visits with leaders from key partner organizations (including
the Pier Corporation) and influential businesses and individuals that affect the Pier.
• An initial creative workshop with the project working group to frame project process and
expectations.
Step 2: Feasibility Assessment:
Based upon the findings from the preceding process, the consultant will develop a written
“working paper” assessment with findings from the outreach and information from the
previous step. Options within the working paper will range from “least amount of change”
offering adaptations to existing practices to “most amount of change” that may include a new
management model and revenue sources. For a potential improvement district, options will
include initial recommendations for boundary, service, budget, assessment and governance
options. The working paper will also include the identification of benchmarks that can be used
to track and measure success.
Step 3: Recommendation
Following the completion of the first two steps, the Consultant will work with the stakeholders
to determine:
• Political Feasibility: Is there sufficient stakeholder support and a financial appetite to
support one or more of the recommended improvement district options? From the
stakeholder outreach process, we will determine top priorities for services and a general
level of support for the concept. We will also evaluate the strength of the project working
group and determine their ability to carry out a formation process.
• Recommendation for Moving Forward: The evaluation of the preceding factors will result in
a consultant recommendation to either 1) proceed with forming a preferred improvement
district; 2) proceed with forming an alternative community development organization; or 3)
discontinue the process entirely. The recommendation and its rationale will be reviewed
with the project working group and City staff leadership.
The draft working paper would be distributed to the working group in advance of a final half-
day planning retreat. The retreat would aim to gain consensus on establishing a preferred
option for moving forward. The working paper would be refined into a final Santa Monica Pier
Feasibility Study report following the retreat.
Elana Buegoff
August 9, 2018
Page 4.
This proposal does not include the tasks related to the formation of an improvement district
which includes the preparation of an Improvement District Management Plan and other legal
documentations or resolutions needed to establish a district. If such services are needed a
separate fee proposal will be provided.
Cost of the Feasibility Study
The preceding process can be completed at a cost not to exceed $30,000 including professional
fees and the reimbursement of expenses at cost. This estimate assumes that the City will be
responsible for several administrative tasks associated with the project, including:
• Arranging on-site itineraries, securing rooms, developing contact lists and logistical support
for individual and group meetings.
• Travel expenses, which are billed at cost, can be reduced if the client can obtain on-site
lodging at discounted rates.
Fees are estimated per step as follows:
Step 1: External Assessment $ 10,350
Step 2: Feasibility Assessment $ 6,750
Step 3: Recommendation $ 10,125
Travel and Other Expenses (4 visits Segal/Lyng) $ 2,775
Total $ 30,000
Hourly rates are $225 for P.U.M.A.’s president, $135 for our associate vice president. The fee
estimate is based upon an anticipated 70 hours from P.U.M.A.’s president and 85 from our
associate vice president.
Thank you for the opportunity to submit this proposal for your consideration. Please contact
me at 303-997-8754 or brad@pumaworldhq.com if I can provide any additional information.
Sincerely,
Brad Segal,
President