SR 06-25-2019 3K
City Council
Report
City Council Meeting: June 25, 2019
Agenda Item: 3.K
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Santa Monica Pier Corporation Fiscal Year 2019-20 Budget and Work Plan
Recommended Action
Staff recommends that the City Council approve the Santa Monica Pier Corporation
Fiscal Year 2019-20 Budget and Work Plan.
Summary
The Santa Monica Pier is an iconic local, regional, and international landmark that
draws millions of visitors per year. While Pier maintenance and leasing is directly
conducted by the City, the City contracts with the Santa Monica Pier Corporation
(SMPC), through a Services Agreement, to manage programs, services, and operations
at the Pier. Staff recommends that Council approve the SMPC FY 2019-20 budget and
work plan describing the activities and programs SMPC plans to undertake in the
upcoming fiscal year.
Discussion
Santa Monica Pier Corporation’s (SMPC) mission is to preserve and enhance the Pier
experience for people of all ages and for future generation s. Established by the City with
a board appointed by the City Council, under the terms of the current Services
Agreement between SMPC and the City, SMPC is charged with the development of
programs and activities for the Santa Monica Pier including: community event
production; marketing and promotion of the Pier; management of sponsorship and
licensing programs; development of leasing, events, and marketing guidelines for
approval by Council; and preparation of an annual budget and work plan setting forth
goals and objectives. In accordance with the Services Agreement, SMPC has prepared
an operating budget and work plan for FY 2019-20, subject to Council approval.
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Budget: SMPC’s FY 2019-20 Budget (Attachment A) projects total revenues in the
amount of $2,586,402 and estimated total expenditures in the amount of $2,545,500,
resulting in a projected net income of $40,902.
Anticipated revenues include: funding from the City in the amount of $746,402 which
consists of a base grant of $546,402 plus a $200,000 grant enhancement to support the
2019 Twilight on the Pier concert series; facility rental revenues (deck, carousel, filming,
corporate promotions, and gift shop/merchandising) in the amount of $1,020,000;
partnership revenues in the amount of $725,000, and other miscellaneous revenues
(food/beverage, licensing, and registration fees) in the amount of $95,000.
Projected expenditures include: $1,058,000 for personnel expenses comprised of
salaries, benefits, supplies and services; $910,000 for Pier-Corp produced programming
(Twilight, ROGA, Pier 360, Wonderland, PRIDE, etc.); $377,500 for costs associated
with facility rentals; $80,000 for marketing; and $120,000 for planning contingency.
Work Plan: The attached FY 2019-20 Work Plan (Attachment B) describes in detail the
following six strategic priorities and the associated activities SMPC plans to perform
during the fiscal year: Revenue Stream Development; Programing and Curation
Refinement; Pier Brand Positioning and Opportunities; Pier Campaign Development;
Organizational Growth; and Development of City-Wide Programs.
Commission Action: The SMPC Board of Directors approved the FY 2019-20 Budget
and Work Plan on May 20, 2019.
Past Council Actions
2/12/2019
(Attachment C)
Following a recap of the 2018 Twilight Season, Council approved
modifications and funding enhancements for 2019 Twilight Season
7/14/2015
(Attachment D)
Council authorized Services Agreement with the SMPC
Financial Impacts and Budget Actions
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Funds of $746,402 for the Services Agreement with the Santa Monica Pier
Corporation are included in the proposed FY 2019-20 budget in the Housing and
Economic Development Department at account 53160001.540150. There is no
additional financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Elana Buegoff, Pier Administrator
Approved
Forwarded to Council
Attachments:
A. SMPC FY2019-2020 Budget
B. SMPC FY 2019-2020 Work Plan
C. Staff Report 2/12/2019
D. Staff Report 7/14/2015
Santa Monica Pier Corporation Annual Budget
2019‐2020
Proposed Proposed
FY2018/2019 2019/2020
Expenses
Facilities ‐ City Refund ‐ Merry Go‐Round $50,000 $55,000
Facilities ‐ City Refund ‐ Pier Deck $175,000 $245,000
Facilities ‐ Event Staffing, Security & Supplies $45,000 $60,000
Facilities ‐ Pier Shop Ongoing Expenses $30,000 $17,500
People ‐ Wages & Salaries $785,000 $785,000
People ‐ Benefits $110,000 $198,000
People: Meetings, Office Supplies, Retreat $25,000
People ‐ Services, Audit, Insurance,$75,000 $50,000
Marketing Creative $30,000
Marketing Promotions $70,000 $50,000
Pier Produced Programming: Twilight, ROGA, Pier 360, Wonderland,
PRIDE, Wake up with the Waves, Pier Tours $1,041,000 $910,000
Planning Contingency $125,000 $120,000
Total Expense $2,506,000 $2,545,500
Income
City Funding $746,402 $746,402
Facilities ‐ Event Deck Rental $450,000 $550,000
Facilities ‐ Film Permits $175,000 $175,000
Facilities ‐ Merry Go‐Round Rental $110,000 $110,000
Facilities ‐ Corporate Promotions $100,000 $170,000
Facilities ‐ Pier Shop and Merchandising $42,000 $15,000
Partnerships $900,000 $725,000
Food and Beverage Sales $40,000 $40,000
Licensing and New Revenue $30,000 $40,000
Registration Fees $15,000 $15,000
Total Income $2,608,402 $2,586,402
Net Income $102,402 $40,902
2019/2020 Work Plan
This document lays out our strategic work plan for Fiscal Year 2019-2020, the results of which
will continue the Santa Monica Pier’s reputation as an iconic public destination in Southern
California. By creating world-class free and open to the public programming, amplifying our
efforts through key partnerships locally and globally, and investing in daily operations,
sustainability and infrastructure, we will continue to strengthen and solidify the Pier’s future.
The Pier is approximately the size of a 3 block city street - it houses a theme park, an aquarium, a
trapeze school, an arcade, 8 restaurants, 6 stores, 13 vendor carts, fishing, a 97-year-old merry
go-round and 20+ street performers that rotate four times a day. Add to this year-round
free-and-open-to-the-public programming, major branded activations, art installations and more,
and it’s easy to see why the Pier is home to approximately 10-12 million tourists a year, and why
it’s needs are unique and specialized.
To successfully serve all of the above, we’ll be focused on the following strategic priorities:
1.Revenue Stream Development
2.Programming and Curation Refinement
3.Pier Brand Positioning and Opportunities
4.Pier Campaign Development
5.Organizational Growth
6.Development of City-Wide Programs
This document serves to act as a high level blueprint for the above priorities, breaking them
down into goals and action items.
2018-2019 was a highly successful year for the Santa Monica Pier Corporation, which was heavily
steered by our team (many of whom were new to the organization), and our new board. We were
able to navigate through our vulnerabilities by identifying our weaknesses and swiftly focusing on
solutions that put our work in the right direction. It was a record year for many of our revenue
goals, Twilight on the Pier was successfully reimagined, and new city-wide campaigns were born.
If last year was about short term solutions that got the Pier on the right track, then this year is
about following that track through and charging ahead to our long-term goals.
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Board Members
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SMPC Organization Chart
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STRATEGIC PRIORITIES
1.Revenue Stream Development
GOAL: To diversify and develop our revenue streams so that we can sustainably grow our
operations and programming without relying heavily on one-off corporate partnerships and city
grants.
This will be achieved by:
a.Multi-Year/Campaign-Wide Corporate Partnerships: Increase our sponsorship efforts on
partners who sign multi-year deals, or who can partner on campaign-focused programs
like PRIDE, Wonderland by the Water, Valentines Day, and more. This lessens the
pressure on a single event to deliver all the ROI and creates a deeper relationship
between SMPC and our partners.
b.Growing our Rental Business by 25%: Last fiscal year, we refocused our efforts around
our rental business by giving our staff clear goals, customer service guidelines, and
exploring the expansion of our rental offerings (specifically the West End of the Pier and
the Merry Go-Round Deck.) We developed a rental handbook in the final fiscal quarter,
which will be heavily employed during 2019-2020. We’ll also be investing in more rental
marketing materials, conferences with potential clients and sales personnel who can
multiply our efforts.
c.Creating Passive Revenue Streams: We’re currently working with top immersive game
designers to develop a game-ified, app-based tour of the Santa Monica Pier, set to launch
on our 110th anniversary. The revenue potential of this program could have a huge impact
on our budgets in the next 1-3 years. Additionally, with the growth of our social media and
newsletter base, we’ve expanded our marketing-only offerings for clients, which our team
can service quickly and with minimal effort.
d.Explore Alternative models with City of Santa Monica: We have begun discussing what
alternative models of partnership between SMPC and the City of Santa Monica could look
like (examples: taking on more leasable space, re-evaluating our revenue splits with the
city, streamlining permit processes, etc). This fiscal year we’ll continue to explore how the
SMPC can grow into a fully sustainable and thriving organization befitting today’s needs.
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2. Programming and Curation Refinement
GOAL: To re-invest in key cornerstone programs with high ROI and build major followings and
brands for all Pier-produced and Co-produced events.
This will be achieved by:
a.Cutting one-off programs with low ROI: this year, we’ll be saying goodbye to
Pier-produced programs like Front Porch Cinema, ProCon and Steam Machines. Though
these programs served their small communities well, they were extremely difficult to find
sponsorships for, needed high touch-efforts from our team and spread our marketing
efforts too thin.
b.Reinvesting in Pier-produced Programs that Work: Our star events: ROGA, Pier 360,
Twilight on the Pier, Smorgasburg and Wake up with the Waves have built strong
followings and were all fully funded by partners in 2018-2019. We will reinvest the money
from our cut programs into the above by expanding them, adding more targeted
marketing, and refining aesthetics so they can fit within our developing masterbrand.
c.Partnering with Regionally Recognized Events: 2019-2020 will see the return of events
like Unique LA, LA Opera, Jacob Jonas Dance Company, Happy Hour Agency and more.
Our team is currently courting many new events like these to make their home at the
Santa Monica Pier, which both eases the burden of programming on our small team while
raising the profile and brand of the Pier.
d.Beautification and Historic Displays: We are working with partners and vendors to provide
more sculptures that can be repainted and placed during seasonal campaigns, as well as
developing more opportunities for the Merry Go-Round window painting, murals, historic
displays, aesthetically pleasing recycling programs, and more.
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3. Brand Positioning and Opportunities
GOAL: Take the Pier brand from regionally recognized to nationally recognized with a strong
message, visuals, and more.
This will be achieved by:
a.Create a brand bible that is widely implemented: our current brand has organically
developed over the last few years, but now it is time to gather all of our best visual assets
and do a brand audit, which will lead to the creation of a relevant brand bible. This will be
used by our digital team, producers, vendors, and more to create a cohesive and
recognizable masterbrand aesthetic and cohesive messaging through our marketing and
events.
b.More Offsite Engagements: we’ll be exploring ways to activate at other relevant events
nationwide, creating movable experiences that educate and excite new audiences about
the Santa Monica Pier and our offerings. We’ll also be positioning the leaders in our team
to speak on panels, do interviews, and more at other events to encourage new producers,
sponsors, media partners and more to engage.
c.Streamline our Digital Content: last year was all about content gathering, this year it’s
about telling a cohesive story through the content. We’re working with agencies like
Department 4 to create evergreen, unique branded content such as “A Day at the Pier”
which captures the energy and breadth of opportunity on the Pier on any single day.
We’re also working to create curated digital guides that fit the needs of different
demographics (Foodies Guide to the Pier, Family Guide to the Pier, etc.)
d.Digital Marketing Investment: we’ve taken a hard look at our marketing spends from
year’s past (SMDP guides, trailers at the Laemmle theaters, etc) , and have decided to
reallocate the bulk of our 2019-2020 marketing spend on digital platforms that can reach
a targeted, measurable audience with the exact messages we want to send. We’re also
working on large annual media trades with brands like Los Angeles Magazine, Los
Angeles Times, LA Metro and more, moving away from the event-by-event spend.
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4. Pier Campaign Development
GOAL: 2018-2019 introduced Wonderland by the Water for the Holidays, Dear Pier for Valentines
Day, and SaMo PRIDE. It is our goal to expand these programs and create sustainable funding
around these campaigns, and add one more: Halloween on the Pier.
This will be achieved by:
a.Tenant and Community participation: Now that our tenants have experienced the first
round of what these campaigns look and feel like, there is a strong interest in participating
and amplifying our efforts. We’re also working with organizations like Downtown Santa
Monica, Santa Monica Travel and Tourism, Cultural Affairs and more to participate and
further the reach of the campaign, the end product of which will be a unified Santa Monica
experience for locals and tourists.
b.Accurately Measuring our Growth and Success for Each Campaign: In order to receive
funding, we need to be able to measure the campaign’s digital and physical presence.
We’ll be investing in digital and physical surveys for attendees, collecting data-driven
feedback from tenants and community partners, and tracking attendance and
demographics with much greater focus.
c.Adding Event Partners to Each Campaign: The campaigns serve as an umbrella brand to
attract event producers, brands, and activations alike to come create under the brand.
Last year, since it was our first year, we supplemented most of our programming with
Pier-Produced events. Now that we have visuals, press, and some metrics of success,
we’re able to do the outreach needed to build out these campaign seasons and create a
larger impact.
d.Adding Halloween: Every major landmark and entertainment venue in the region activates
for the Halloween season, which we believe is a perfect opportunity for the Pier’s brand.
Pending funding, we’ll be developing a one-of-a-kind experiential installation on and
around our Merry Go-Round Deck, which will serve as the centerpoint for our Halloween
Campaign.
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5. Organizational Growth
GOAL: Our current team is optimized and working with purpose and focus. It is our goal to
expand the responsibilities and capabilities of our office by assisting our team in key ways.
This will be achieved by:
a.Part-Time Assistance: we do not currently have the funding to add full time assistants and
managers for our team just yet, but we do have room for part time contractors to come in
and take some of the busy work off our Director’s desks so they can focus on more
strategic tasks. For example: we will bring on a part time marketing manager who will
handle our PR listings, tenant event participation and sales pipeline.
b.Strengthen Relationships with our Key Vendors and Labor Force: The Pier has developed
some loyal and trustworthy vendors to serve our events and give us the best quality for
the best price. We need to further invest in these relationships while solidifying new ones
so we can have a tighter handle on quality control, budget expectations, and customer
service at our events.
c.Internship Opportunities: We have a high interest from local and UC students who have
new interest in our developing brand and want to participate. We’ll be exploring new
internship opportunities that will benefit the pier during peak season and give invaluable
knowledge to early-career professionals and students.
d.Team and Board Retreats: We held our first team retreat in 10 years in Fall 2018, which
had a profound impact on aligning our team goals, vision, mission and culture. We want to
expand to two annual retreats, one that invites the board to participate as well so we can
further develop staff and Board work flows.
e.Conferences and Learning Opportunities: Some of our team members were able to attend
and/or speak at large regional and national events like SXSW, Immersive Design Summit,
NYTimes Travel Conference and more. Outside of the learning and inspiration that
happens at these events, we’ve been able to form important partnerships and
sponsorships through networking at these events.
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Development of Infastructure and City-Wide Programs
Goal: As the relationship between the pier and our City Partners develops, we see major
opportunities for collaboration that would not only lead to a better pier experience, but to a better
Santa Monica in total.
This will be achieved by:
a.Continuing to work with Parking, Traffic Management, and Santa Monica Police
Department to reorganize how traffic flows at the top and bottom of the pier bridge
(designated pick up and drop off areas, pedestrian safety, and more.)
b.Partner with the City Manager’s Office and other respective departments to create an
“Esplanade Market” - a unique opportunity for street vendors to conduct business in an
organized, marketable way.
c.Unify SMPC staff, Board, SMPLA, and others around critical issues involving safety and
security on the Pier and actively advocate for needs: Increased Fire Department presence
on the Pier, Pier Bridge plan advancement, ambassador programs logistics, street
performer organization, and more.
d.Continue to build strong relationships with Santa Monica Business Improvement Districts,
bringing them into our larger campaigns and goals and learning about their needs so that
we can help strengthen their communities.
e.Create a robust plan around building up the Merry-Go-Round Deck area, especially as
construction on Ocean Front Walk comes to an end and Starbucks Coffee opens. We see
this area as very underdeveloped and deactivated, attracting anti-social behavior and
litter. With a few key investments, this area could be a beautiful and lively space that
could have programming all on its own.
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SMPC PRODUCED/CO-PRODUCED EVENT DESCRIPTIONS:
ROGA: Run + Yoga = ROGA. ROGA is the ultimate lifestyle event for the mind, body and soul. This fitness
combo brings participants together for a warm-up run along the beach and around the Pier followed by
yoga, flowing breath to movement with the sound of the waves. Now offered 18 consecutive Saturdays in
the spring and summer (by popular demand), and with more special programming like live DJs, sound
baths, puppy yoga, mindfulness seminars and more, ROGA is a beloved event that encourages healthy
living for people of all levels.
●Spring/Summer 2020
Pier 360: The world-famous Santa Monica Pier presents Pier 360 Ocean Sport and Beach Festival, the
ultimate celebration of SoCal beach life. Formerly known as the Paddleboard Race & Ocean Festival, Pier
360 will continue the tradition of the elite paddleboard races, ocean swim and beach life museum, and
infuse it with beach volleyball, surfing, skating, street art, polynesian dancing and more – creating a
one-of-a-kind festival for the whole family. It’s the ultimate party to kick-off summers in Santa Monica!
●June 2020
Twilight on the Pier: A weekly festival as iconic as the Pier itself. The beloved Twilight on the Pier concert
series is back for the 35th consecutive year! Summer extends through September, continuing the
long-standing tradition of celebrating emerging and established artists across a variety of genres. Twilight
spotlights the best and brightest artists SoCal has to offer and the unique sounds from around the world - a
truly "Local Meets Global" event. The premier, free outdoor concert series is like a festival every week -
complete with immersive art, food offerings, a wine and beer garden, games and interactive activations.
●August/September 2020
Wake up with the Waves: The beloved children’s experience offers an unforgettable Saturday morning
experience and fresh air fun at the Pier. Geared to entertain families and friends with kids ages 2-10, Wake
up with the Waves includes interactive storytime with the Story Pirates, music, dancing, playing and more!
It’s a perfect way to start the day.
●May 2020
Smorgasburg: Smorgasburg is “The Woodstock of Eating” and one of the largest open-air food markets in
the country. With more than 90 food and shopping vendors, a beer garden, live DJs and more,
Smorgasburg welcomes 8-12K guests per week year round at the row in DTLA, and nearly that may when
they come to the Pier twice a year. Smorgasburg kicked off the first-ever SaMo PRIDE month and was a
beloved event during Wonderland by the Water.
●Seasonal
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Campaigns:
Wonderland by the Water: It’s the newest Santa Monica holiday tradition: Wonderland by the Water. We
created a six-week-long campaign full of art, events and holiday magic, featuring a magical “Seadragons
Village” illuminating the windows of our historic Merry Go-Round building and best-in-class programming
throughout the month of December. We invited some of LA’s best event producers to host holiday events
all season long, including Smorgasburg food festival, Unique LA artisan gift market, Bob Baker Marionette
Theater puppet show, story time, photo ops, holiday mermaids and more, making it an unforgettable
experience for locals and tourists alike.
●November/December 2020
Dear Pier: The Pier is for first-loves, best friends, "I Do's" and millions of memories. We celebrate all types
of love with a month of love at the Pier and our Dear Pier campaign. Whether it was a first date watching
sunset at the West End, proposing to the love of your life at the Carousel or sharing an ice cream cone with
a special friend, visitors from around the world have incredible love-on-the-Pier moments to share. These
moments are what give the Pier it’s sense of magic and we compile them for an amazing art installation
that fills our historic Merry-Go-Round windows.
●February 2020
SaMo PRIDE: Santa Monica Pier, Downtown Santa Monica, and Santa Monica Place, in collaboration with
the City of Santa Monica, present the first ever SaMo PRIDE: an entire month of festivities to raise
awareness and celebrate the LGBTQ+ community, individuality, inclusiveness and acceptance.
The Pier, Santa Monica Place, Third-Street Promenade and surrounding businesses will celebrate Pride
month with an incredible light installation that spans miles of city streets and lights up the sky with a
rainbow of colors. The installation, dubbed “Miles of Pride”, will serve as a backdrop for a full calendar of
events that bring together community, families and supporters from around the world. With a focus on
family-friendly art, events and community connection, City partners will host food festivals, happy hours,
story hours, silent discos and so much more to help us celebrate love in every color.
●June 2020
Halloween (New!): The Pier is set to become the ultimate Halloween destination in 2019 with a weeks-long
celebration featuring a pop-up haunted house, ghost stories, costume parade, Dia de Los Muertos event,
and more! We’re taking LA Halloween to a new level of spooky.
●October 15 - 31 2020
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