SR 12-18-2018 3M
City Council
Report
City Council Meeting: December 18, 2018
Agenda Item: 3.M
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Operation and Maintenance of the Santa Monica Pier Carousel
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 197 to Roth Management, a California-based company, for the
operation and maintenance of the Santa Monica Pier Carousel;
2. Authorize the City Manager to negotiate and execute a three-year agreement
with Roth Management, in an amount not to exceed $783,348 ($253,437 for the
first year, with annual CPI increases of one to three percent thereafter), with two
additional one-year renewal options on the same terms and conditions, for a total
contract amount not to exceed $1,345,531 over a five-year period, with future-
year funding contingent on Council budget approval.
Summary
Day-to-day operation, maintenance, and restoration of the Santa Monica Pier Carousel
is provided through management contracts with vendors that specialize in the operation,
maintenance, repair, and restoration of vintage wooden carousels. Roth Management
has operated and maintained the Carousel on behalf of the City since 2001. Its current
contract expires February 1, 2019. Staff recommends entering into a new contract with
Roth Management for the operation and maintenance of the Santa Monica Pier
Carousel for up to five years.
Discussion
The Santa Monica Pier Carousel was built in 1922 by the Philadelphia Toboggan Co.
and is housed within the 102-year-old Looff Hippodrome, a designated National Historic
Landmark. The City purchased the Looff Hippodrome and Carousel in 1977. A carousel
operator is responsible for managing all aspects of the Carousel’s day-to-day operation,
including providing trained employees, maintaining safety records and permits, and
depositing ticket revenue with the City. In addition, the operator is required to perform
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specialized services relating to paint restoration, carving repair of damaged pieces, and
performing inspections, basic repairs, and preventative maintenance of the carousel
mechanism. Costs for the operation of the carousel include a management fee and
reimbursement of staffing costs, insurance, and related expenses. The proposed three-
year management agreement would cost $783,348 ($253,437 for the first year, with
annual CPI increases of one to three percent thereafter), with two additional one-year
renewal options on the same terms and conditions, for a total contract amount not to
exceed $1,345,531. The table below lists the annual maximum amount of the proposed
agreement. Annual adjustments would be based on CPI of no less than one percent
and no greater than three percent:
Contract Term Maximum CPI Increase Maximum Amount
Year 1 - $253,437
Year 2 3% $261,040
Year 3 3% $268,871
Year 4 3% $276,937
Year 5 3% $285,246
Total Not To Exceed $1,345,531
Vendor Selection
RFP Data
RFP Posting
Date
RFP Posted
On
RFP Advertised in
(City Charter &
Municipal Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
10/4/2018
City's
Online
Bidding Site
Santa Monica
Daily Press 10 1 11/1/2018
RFPs Received Selection Criteria
Vendor
1
Roth
Management Municipal Code SMMC 2.24.072
Evaluation Criteria Price, previous experience, ability
to deliver, quality of product, and
compliance with City
specifications.
Justification to Award
On October 4, 2018, the City issued a Request for Proposals (RFP). The RFP was
posted on the City's on-line bidding website. Ten potential bidders downloaded the RFP
from the City; however, Roth Management was the only respondent to submit a proposal.
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One prospective bidder informed staff that they would not submit a proposal because
their business model did not align with the scope of services specified in the RFP. Staff
evaluated the proposal based on the criteria set forth in the RFP, which included
experience, qualifications, and managerial capability to maintain all aspects of the
operation. Although only one bid was received, staff believes the price is appropriate for
the scope of services to be provided and that Roth Management’s proposal is highly
responsive to the RFP criteria. Roth Management is experienced in the operation and
restoration of carousels and has managed and maintained the Santa Monica Pier
Carousel since 2001 in an excellent manner.
Past Council Actions
Meeting Date Description
10/22/2013 (Attachment A) Council Authorized Management Agreement with Roth
Management for a term of up to five years.
Financial Impacts and Budget Actions
Staff seeks authority to award a Management Agreement with Roth Management for the
operation and maintenance of the Santa Monica Pier Carousel. In FY 2017-18 the
Carousel generated $238,586 in revenue and cost $232,530 to operate including the
management fee, salaries, insurance and one-time costs for ADA upgrades. In the
event costs exceed revenues a general fund subsidy will be required. Future-year
funding is contingent on Council budget approval.
FY 2018-19 Request
Estimated Amount
FY 2018-19 Budget Finance
Department/Account #
Total Estimated Contract
Amount
$253,437 53160001.550160 $1,345,531
Prepared By: Elana Buegoff, Pier Administrator
Approved
Forwarded to Council
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Attachments:
A. Roth Management Authorization - October 22, 2013 Council Mtg Staff Report
(Web Link)
B. Roth Oaks 2018-19
REFERENCE:
Agreement No. 10790
(CCS)