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SR 02-12-2019 3A City Council Report City Council Meeting: February 12, 2019 Agenda Item: 3.A 1 of 7 To: Mayor and City Council From: Andy Agle, Director, Housing and Economic Development, Office of Pier Management Subject: Twilight Concert Series 2018 Season Recap and Proposed Adjustments for 2019 Season Recommended Action Staff recommends that the City Council: 1. Receive the following assessment of the reimagined 2018 ‘Twilight on the Pier’ concert series; and 2. Approve the Santa Monica Pier Corporation’s request for the 2019 concert series to include two concerts before Labor Day; and 3. Affirm the City’s financial support for the 2019 concert series of up to $400,000 for public safety and beach maintenance costs and a $200,000 grant to the Pier Corporation. Summary The Council–directed reimagining of the 2018 Pier concert series shifted the popular concerts from Thursday evenings before Labor Day to Wednesday evenings after Labor Day. The changes were effective in addressing the primary goal of alleviating many of the serious public safety concerns created by excessive crowds drawn to the beach. The changes were also effective in reducing negative impacts to the beach, congestion in the downtown, and rising costs. The 2018 concert series drew manageable crowds, averaging 8,000 people per evening, with no significant public safety incidents reported. The favorable response from City departments, the largely positive feedback received from residents, concert attendees, and Pier businesses, and the reduced costs suggest that the rescaling of the series successfully achieved the stated goals. The Santa Monica Pier Corporation (Pier Corp), the producer of the series, proposes to employ the same format and curatorial style for the 2019 season , with one substantive change. The Pier Corp seeks Council’s approval to move the start date of the series to 2 of 7 the third Wednesday in August, in advance of Labor Day. The Pier Corp estimates the shift could increase attendance by approximately 30 percent and would help the organization secure sponsorships to underwrite costs associated with the concerts. Staff recommends that Council approve the Pier Corp’s requested change in order to help the concert series become more financially self-sustaining, with the expectation that the increase in attendance remains manageable. Discussion On December 12, 2017 (Attachment A), Council directed implementation of several significant changes for the 2018 concert season in an effort to scale down the Thursday evening crowds that overtaxed the Pier and beach, congested nearby streets, raised concerns for the safety of those attending the concerts, and significantly escalated costs to the City. The following changes were implemented for 2018 :  The concert series day of the week was changed from Thursdays to Wednesdays;  The number of concerts was reduced from eight to six;  The series was rescheduled to begin after Labor Day;  Speakers projecting towards the beach were removed;  The stage was relocated and the venue was partially screened so that it was less visible from the beach; and  The series was rebranded to reinforce the event as a smaller, Pier-focused series with a curation strategy that booked niche performers with audience draws better in line with the venue size. Additional adjustments to the concert series included using the entire Pier as an event zone by distributing three stages around the Pier to encourage attendees’ movement and a festival-like atmosphere, rather than congregating attendees in a single area. Entry to the Pier was managed by security personnel who conducted bag check and magnetometer screenings and provided an accurate attendance count to ensure compliance with occupancy limits. 3 of 7 Council also capped the expenditures for public safety costs at $400,000 for the 2018 series, with a stipulation to suspend the concert series once the budget was exhausted . For the reimagined 2018 series, the Police and Fire Departments’ costs fell well below the cap, with police and fire staffing costs of approximately $240,000, which reflects a 71 percent reduction from the previous year’s public safety expenditure of $83 7,600. An interdepartmental committee comprised of representatives from Police and Fire (Public Safety), Office of Pier Management, Traffic Management, Beach Maintenance, the City Manager’s Office, and the City Attorney’s Office met regularly with the Pier Corp staff as they developed the new format and closely monitored the 2018 season. Each concert night drew approximately 5,000 to 10,000 attendees, versus the previous year which drew crowds as large as 35,000 attendees. Public Safety reported no significant safety incidents and confirmed that security staff present were able to effectively manage the visitors to the Pier. Traffic Management reported moderate traffic conditions with no major congestion throughout the City. Beach Maintenance reported minimal overflow of concertgoers on the beach. The City and Pier Corp received several complaints from attendees upset with the changes, particularly the loss of the connectivity between the beach and the Pier, as views of the stage were screened to encourage beachgoers to come onto the Pier. Pier Corp Proposal for 2019 The Pier Corp requests that Council authorize one change to the previous directive, which required the series to start after Labor Day. The Pier Corp would like to start the 2019 concert season in mid-August, two weeks prior to Labor Day. The proposed concert dates would be August 21st, August 28th, September 4th, September 11th, September 18th, and September 25th. The Pier Corp believes an earlier start date, paired with the new Pier-focused, community-oriented format on Wednesday nights, would increase attendance by about 4 of 7 30 percent, or an additional 1,500 to 3,000 attendees per evening. The increased attendance could be accommodated on the Pier and is not expected to result in significant beach attendance and safety challenges that occurred with the pr evious iteration of the Thursday night summer series. Additionally, Snap Inc., a major sponsor of the concert series, notified the Pier Corp that it would not be returning as a partner following the 2018 season. An earlier start date would provide greater visibility and better appeal to potential sponsors, as sponsorship is necessary to help underwrite the cost of the series. Furthermore, shifting the series into August and out of October wou ld enable the Pier Corp’s use of the Pier deck in October for other events and community programming such as LA Opera, Front Porch Cinema, and Halloween-themed activities, as well as private rentals. City Considerations Public Safety Concerns: Shifting the start of the concert series to August 21, two weeks prior to Labor Day, would likely require additional support from the City to manage the increase in attendance and associated impacts. The two free concerts prior to Labor Day may again result in people choosing to congregate on the beach, even with the views of the stage screened. For the 2018 series, the Santa Monica Police Department (SMPD) employed assistance from the Los Angeles County Sheriff's Department and other allied agencies for the first concert, but based on the reduced crowd size, was able to scale back deployment and only use SMPD officers for the rest of the concerts. SMPD anticipates that allowing the two concerts in August may necessitate contracting with allied public safety agencies for additional personnel to ensure appropriate levels of public safety are provided, which could exceed the approximately $240,000 spent on public safety for the 2018 series. Beach Maintenance Concerns: Shifting the commencement of the series prior to Labo r Day may draw a larger number of concertgoers to the beach, which could require more resources including rental of portable restrooms, as well as additional beach maintenance resources to remove litter and groom the sand for the summer beachgoers the following morning. During the 2017 season, which saw the highest levels of beach 5 of 7 attendance for the concert series, Beach Maintenance costs were an additional $28,000. However, for the 2018 season with its steep drop in concert attendees on the beach, there were no additional expenditures for restroom rentals or supplemental beach maintenance. Funding Considerations Pier Corp Cost to Produce the Series: The 2018 concert series was essentially a break- even endeavor for the Pier Corp. The concert series cost the Pier Corp $659,711 and brought in revenues of $661,174, netting the Pier Corp $1,463. Corporate sponsors underwrote over two-thirds of the concert series costs, with the remaining one-third from City grant-funding (described below) and revenues from beverage sales. Pier Corp expenses were comprised of artist booking, production services, security, rentals, marketing, labor, traffic management costs, and governmental permits, fees, and licenses. Traffic management was approximately $40,000 and other City and governmental agency fees paid by the Pier Corp came to approximately $23,000. City Funding: The City’s budget traditionally includes funding for the Pier Corp’s operational costs. Over the past four years, the funding has been enhanced with an additional annual allocation of $200,000 to support the summer concert series. In FY 2017-18, the Pier Corp repaid the enhancement to the City to help offset a portion of the City’s public safety costs. For FY 2018-19, due to the sweeping changes made to the series, repayment of the $200,000 grant enhancement was not required. Additionally, the City has allocated funding for public safety costs associated with the concert series. Those costs escalated to over $800,000 in FY 17-18. Public safety funding for FY 18-19 was approved at an amount not to exceed $400,000. If Council approves the Pier Corporation’s request to move the start of the concert series to August, staff assumes that the 2019-20 General Fund budget would continue to support up to $400,000 for public safety and beach maintenance costs related to the 6 of 7 2019 concert series, as well as the $200,000 General Fund enhancement to the Pier Corp grant for the production of the concert series, without expectation of repayment. Alternatives for Council Consideration The Council could consider the following alternatives to the recommended action: 1. Deny the Pier Corp’s request to begin the concert series before Labor Day, with direction that the City’s funding of support services not exceed $250,000, slightly above the amount spent during the previous season. 2. Approve or deny the Pier Corp’s request for the 2019 season, alongside instructions that the Council expects the concert series to achieve full cost- recovery for the 2020 season, including all public safety and beach maintenance costs, as well as the additional City grant, which would put the concert series on par with all other non-City-sponsored events. Past Council Actions Meeting Date Description 12/12/17 (attachment A) Evaluation of TCS 2017 Season determined changes were not effective enough at reducing crowd-size, traffic congestion and other public safety concerns. Council directed significant changes for 2018 Season including changing the day of the week to Wednesday, moving the series to the fall, and additional measures to prioritize the safety of the public. 3/28/17 (attachment B) Update to Council on proposed changes to be implemented for 2017 concert season. 1/14/14 (attachments C-1 staff report and C-2 supplemental staff report) Discussion of concerns related to growing crowds on the beach and related public safety challenges. Council directed modifications to reposition the series as a community-focused Pier event, with minimal beach overflow, and directed staff to continue to work with the Pier Corp to right-size the event, ensure public safety, and conform to existing law. 7 of 7 Financial Impacts and Budget Actions With Council approval, budget authority of up to $400,000 for public safety and beach maintenance costs and $200,000 for an enhan cement to the Pier Corp operating grant would be proposed as part of the upcoming biennial budget. Prepared By: Elana Buegoff, Pier Administrator Approved Forwarded to Council Attachments: A. Attachment A. 12/12/2017 (Web Link) B. Attachment B. 3/28/2017 (Web Link) C. Attachment C-1. 1/14/2014 (Web Link) D. Attachment C-2. 1/14/2014 supplemental rpt (Web Link) E. Written Comments 1 Thania Montoya From:The SEO Doctors <theseodoctors@gmail.com> Sent:Monday, February 11, 2019 8:35 PM To:Clerk Mailbox Subject:Council 2/12/19 - Item 3A Follow Up Flag:Follow up Flag Status:Flagged 2018 Twilight Series recap, proposed adjustments. What if we charged people for cabanas or upscale VIP arrangements to the concerts, and still broadcast the concert on the mega-screen ? We could use the revenues to fund the cleanup and security. We've had some pretty big artists come through, I think we could recover some of the costs in this fashion. We could also do this through taxing merchandise sales ? Or parking ? I'm trying to think of some other creative ways people would be interested in paying for. Drinks and food are always something people wish they had after they're already laying their stomach on the sand. People take the train or drive all the way to the beach. Convenience and souvenir items to remind them of their experience. Event should still be free, but it should be like the freemium model. Everything else, all the up-sells cost something. Some free stuff would be cool though, like free waters or candy or something to the first 500 that show up or something. But then everyone else is upsold (Like, where's the homies with the rolling coolers? ) Also we should put more trash cans on those days so that people are more likely to throw things away. Korie Schmidt (310)600-2278 TheSEODoctors@gmail.com Item 3-A 02/12/2019 1 of 1 Item 3-A 02/12/2019