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SR 11-14-2023 5B City Council Report City Council Meeting: November 14, 2023 Agenda Item: 5.B 1 of 5 To: Mayor and City Council From: David Martin, Director, Administration Subject: Authorization to Enter into License Agreements for Independent Spirit Awards and LA Wine & Food Festival Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15323 (Class 23 Normal Operations of Facilities for Public Gatherings) of the California Environmental Quality Act (CEQA) Guidelines; and 2. Authorize the City Manager to negotiate and execute license agreements with Film Independent (Spirit Awards) and IMG (LA Wine & Food) to use a portion of Lot 1N from February 12, 2024, to March 8, 2024, and again in 2025 during the same time period. Summary In accordance with the 1550 PCH Parking Lot Cultural/Entertainment Event Policy, staff issued a Request for Proposals (RFP) for cultural or entertainment events in Lot 1-North located at 1550 Pacific Coast Highway, the surface parking lot directly north of the Pier. Film Independent submitted a proposal for the Independent Spirit Awards (ISA) to be held on February 25, 2024, and IMG submitted a proposal for LA Wine & Food Festival (LAWFF) to be held over three-days, March 1-3, 2024, using the ISA’s tent and site footprint. The site occupation would last approximately three weeks to accommodate the load-in and construction of the event tent followed by a week of demobilization after the events conclude. The 1550 Lot Event Policy allows for multi-year event proposals, therefore staff also recommends the approval for the ISA and LAWFF to return in 5.B Packet Pg. 27 2 of 5 February and March 2025 (exact dates to be determined) at the City’s sole discretion. The rental fee revenue coming into the Beach Fund would be $173,255 for FY 2023-24. Discussion The 1550 Lot Cultural/Entertainment Event Policy was initiated as a means to enliven the beachfront and attract visitors during the slower times of the year. It was also intended to offer unique cultural and entertainment opportunities to the community and economic benefits for the City and tourism/hospitality sectors. In 2018 the Community Events Site Guidelines were revised to close the 1550 Beach Parking Lot as an event forum and only large events that are approved through the 1550 Lot Event Policy and RFP process are permitted. The City issued a call for proposals in June 2023 and received three responses by the deadline. The evaluation panel consisted of representatives from Santa Monica Travel and Tourism, Santa Monica Pier Corporation, Office of the City Manager, and Office of Pier Management. The evaluation panel reviewed and rated the proposals using the evaluation criteria published in the RFP. The panel recommended the City negotiate a license agreement with the producers of the Independent Spirit Awards and LA Wine & Food Festival. A third proposal from Cirque du Soleil is currently under evaluation by the panel and a recommendation may be brought to Council at a later date. Spirit Awards: For the last 27 years Film Independent’s Spirit Awards has taken place beachside in Santa Monica. The event was initially in beach lot 4-S (2030 Ocean Avenue) and then in beach lot 1-N (1550 PCH) when the Community Events Site Guidelines closed the south beach lots as event venues. The Spirit Awards is the premier awards event that honors the independent film and television community and brings together creatives from throughout the world. The Spirit Awards provides direct economic benefit through the rental fee that includes a square foot fee for the amount of space occupied plus lost parking revenue. In addition, ISA will generate direct revenue to the City from hotel room fees and local sales tax revenue generated from guests attending the event as well as those who are nominated for awards. Additionally, the 5.B Packet Pg. 28 3 of 5 ISA staff will purchase meals on the Pier during the two week set up period and one week demobilization. Film Independent hosts additional nomination events leading up to the awards as well as an after party in Santa Monica and intends to do so again for the 2024 show. LA Wine & Food: IMG is a global event, entertainment and media firm that operates in more than 30 countries. IMG is the owner of Taste Festivals and Frieze Art Festivals. The three-day LAWFF would be a new event from IMG designed to bring together the best of Los Angeles’s dining scene and allow guests to sample dishes and drinks from local culinary talent. The festival will take place in the tent installed by Film Independent for the Spirit Awards show. Upon conclusion of the food festival on March 3, Film Independent would begin demobilization of the site. LAWFF producers have agreed to integrate Santa Monica based chefs, collaborate with the City’s Farmers’ Markets to source produce and look for opportunities to cross promote with Pier businesses. The timing of the LAWFF event would also correspond with Frieze-LA event taking place at the Santa Monica Airport, allowing event producers to tie-in the festivals and promote Santa Monica as destination for both food and art. In addition to the site rental fee, both events will be responsible for the payment of fees for permits, licenses and services required to support their respective events. LAWFF intends to emulate the traffic management plan developed and utilized by the ISA which has attendees and staff parking off site and taking a shuttle to the 1550 lot. RFP Selection Process Bidder Recommendation Best Qualified Person/Firms Film Independent and IMG Evaluation Criteria Unique cultural or entertainment experience, economic benefit, rental fee, balance of space and duration, traffic and parking impact mitigation measures, neighborhood impacts, environmental impacts, limits concessions/services in direct competition with Santa Monica Pier, exhibition style 5.B Packet Pg. 29 4 of 5 vs. timed event, educational outreach, sufficient planning time. Municipal Code SMMC 2.24.180 RFP Received Film Independent (recommended) IMG (recommended) Cirque Du Soleil (under review) RFP DATA Posted On Posted On Advertised in (City Charter & SMMC) Vendors Downloaded RFP Due Date 6/6/2023 City’s Online Bidding Site Santa Monica Daily Press 13 6/30/2023 Justification to Award The Film Independent (ISA) and IMG (LAWFF) proposals were evaluated and ranked based on the degree to which the event offers a unique cultural or entertainment experience; demonstrates clear measurable economic benefit to the City and local businesses, including Pier; and contains a rental fee that significantly contributes to the City’s Beach Fund, among additional criteria outlined in the RFP. Environmental Review The event is categorically exempt pursuant to Section 15323 (Class 23 Normal Operations of Facilities for Public Gatherings) of the California Environmental Quality Act (CEQA) guidelines. Class 23 consists of the normal operations of existing facilities for public gatherings for which the facilities were designed, where there is a past history of the facility being used for the same or similar kind of purpose. The lot 1N (1550 PCH) Parking lot has been previously used for special events, and therefore, the proposed events are categorically exempt from CEQA. Commission Action The ISA and LAWFF event producers met with the Santa Monica Pier Lessees Association (SMPLA) on September 5, 2023, and the Santa Monica Pier Corporation Board of Directors (SMPC) on September 18, 2023. A motion to have the SMPC Board 5.B Packet Pg. 30 5 of 5 express their support for these events moving forward into the planning and development process with the City passed unanimously. Past Council Actions Meeting Date Description May 26, 2020 Award Request for Proposal and enter into Agreement with Film Independent for the Independent Spirit Awards (2021, 2022 and 2023) Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. The City would receive $173,255 in revenues for the use of lot 1N. Revenues will be deposited in Beach Fund Account 11700001.415290. Prepared By: Elana Buegoff, Pier Administrator Approved Forwarded to Council Attachments: A. Film Independent_Signed_OAKS INITIATIVE_2023 B. IMG OAKS INITIATIVE FORM 5.B Packet Pg. 31 5.B.aPacket Pg. 32Attachment: Film Independent_Signed_OAKS INITIATIVE_2023 (6000 : Authorization to Execute a License Agreements with Independent Spirit 5.B.aPacket Pg. 33Attachment: Film Independent_Signed_OAKS INITIATIVE_2023 (6000 : Authorization to Execute a License Agreements with Independent Spirit CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. 5.B.b Packet Pg. 34 Attachment: IMG OAKS INITIATIVE FORM (6000 : Authorization to Execute a License Agreements with Independent Spirit Awards and LA Food CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: Title: Signature: Date: Email: Phone: Permit # FOR CITY USE ONLY: Bid/PO/Contract # 5.B.b Packet Pg. 35 Attachment: IMG OAKS INITIATIVE FORM (6000 : Authorization to Execute a License Agreements with Independent Spirit Awards and LA Food