To: Mayor and City Council
From: City Staff
Subject: Recommendation
to Approve a Corporate Bylaw Revision and the Annual Plan of Work for Fiscal
Year 2002-03 submitted by the Santa Monica Pier Restoration Corporation
This
report recommends that the City Council approve a corporate bylaw revision and
the Annual Plan of Work for Fiscal Year 2002-03 submitted by the Santa Monica
Pier Restoration Corporation (PRC), contingent on the availability of City
funding in the budget to be considered in June.
In
November 1983 City Council created the PRC as a non-profit, public benefit
corporation to oversee the reconstruction and revitalization of Santa Monica
Pier following severe storm damage to the Pier during the preceding
winter. The responsibilities and
authority of the PRC were broadened and formalized in December 1985, with City
Council approval of a Services Agreement with the PRC. Council oversight and review of PRC
activities arose through its appointment of members to the PRC Board of
Directors, and through annual review and approval of the PRC Business Plan and
Budget. Each annual Business Plan set
forth goals and objectives of the PRC for the fiscal year with a companion
budget stating income from all sources and anticipated expenses necessary to
implement the Plan.
A
new Services Agreement between the City and the PRC was approved by City
Council in December 2000, which fundamentally revised the responsibilities of
the parties. Council also approved
amended corporate bylaws for the PRC in December 2000, setting forth the
structure and practices by which the PRC would conduct its business
activities. City staff, with the legal
assistance of the Office of the City Attorney, is responsible under the new
Services Agreement for implementing the PRC’s goals and objectives for use of
commercial opportunity space on the Pier deck by directly negotiating and
administering Pier leases and licenses.
The PRC remains responsible for development and implementation of programs
and activities for promotion and marketing of the Pier; management of
sponsorship and licensing programs generating revenue to support its
activities; preparing and submitting to the City for approval an annual
business plan setting forth the goals and objectives of the PRC for each
ensuing fiscal year; and for review and approval of leases and licenses for use
of the Pier consistent with the Council approved business plan and leasing
guidelines.
At
its meeting held March 6, 2002, the PRC Board of Directors approved an annual
budget for Fiscal Year 2002 – 03 and a proposed new corporate bylaw. At its meeting held April 3, 2002, the PRC
Board of Directors also approved the Annual Plan of Work for Fiscal Year 2002-03
setting forth its goals and objectives during the ensuing year. These actions are subject to approval by
City Council.
The
PRC Board has established various committees and has appointed members to those
committees. Situations have arisen in
which members of the Board who are not committee members wish to attend and
participate at a committee meeting. The
City Attorney has advised the Board that attendance and participation by a
non-committee Board member could violate the Brown Act if such attendance would
result in a quorum of the Board being present.
The
Board has also been advised that two alternative circumstances would permit
attendance by a non-committee Board member.
First, if the committee meeting is not noticed as a joint meeting of the
committee and a special meeting of the Board, such additional non-committee
Board members may attend a committee meeting but may not participate in the
discussion. Second, if the committee
meeting is noticed as a joint meeting of the committee and a special meeting of
the Board, such additional non-committee Board members may attend a committee
meeting and may participate.
At
its meeting held March 6, 2002, the PRC Board approved the following revision
to Section 15 of its bylaws to allow members of the Board to attend committee
meetings and participate:
When
a joint meeting of a Committee and a special meeting of the Board are held
together, and a vote is taken at such meeting, the vote shall be considered to
be only a Committee vote, and shall need to go to a regular or special (but
non-joint) meeting of the Board to be considered adopted as a policy of the
Board.
The
Board will recommend to Committee chairs or other persons running meetings that
they announce this bylaw at the beginning and end of the joint meeting so as to
avoid confusing the public and media into thinking that the Board has acted.
Section
4.2 of the Services Agreement obligates the PRC to prepare and submit for City
Council approval a pro forma operating budget and forecast of income and
expenses for performance of activities for which the PRC is responsible. Alternative proposed budgets for Fiscal Year
2002-03 submitted by the PRC Executive Director and Budget Committee were
reviewed by the PRC Board at its meeting held March 6, 2002. The adopted budget of $603,840 represents a
$209,360 (25.7%) reduction from the Fiscal Year 2001-02 budget, consistent with
the change in PRC priorities reflected in the proposed Annual Plan of
Work. Projected primary sources of
income are City funding in the amount of $467,200 (8% reduction from FY’02),
$30,000 event sponsorship revenue (74% reduction), and $24,000 promotional
income (33% reduction). The revenue
category of non-cash, value-in-kind sponsorship income, which represented
$75,000 in event promotions and advertising during FY’02, has been eliminated
although donated advertising and other value-in-kind sponsorships may still be
received.
Projected
expenses for Fiscal Year 2002-03 are also reduced by $209,360 from Fiscal Year
2001-02, primarily through the elimination of one full time marketing manager
position, reduction in expenses associated with securing sponsorships, and
reallocation of staff resources to fulfill the proposed Annual Plan of
Work. Anticipated marketing
expenditures will be refocused on development of a community outreach program
and creation of additional local events on the Pier. City support for the PRC will be considered by the City Council
during adoption of the City’s FY 02/03 budget in June.
The
proposed PRC Annual Plan of Work for Fiscal Year 2002-03 was prepared in accordance
with Section 4.1 of the Services Agreement as the statement of the PRC’s
overall operational and business plan for activities to be implemented at the
Pier during the year, and incorporates a Mission Statement to preserve and
enhance the pleasure pier experience for people of all ages and for future
generations. The plan was approved by
the PRC Board at its meeting held April 3, 2002.
Annual
work plans in prior years devoted significant PRC staff time and resources to
the development and implementation of cash and value-in-kind corporate
sponsorship programs as a budget-relieving means to derive additional income
necessary to enhance event hosting, advertising and promotions for the
Pier. Budget resources were also
expended on the creation of a Pier logo and corporate licensing program, which
is now complete. Core activities have
continued to include the Twilight Dance Series, now entering its 18th
consecutive year, Winter Holiday events, support for the Sunday Concerts on the
Pier, street performer monitoring, accommodation of filming and sponsored
events on the Pier, and advocacy for City programs and capital projects
benefiting and promoting the Pier as a public recreational and entertainment
venue.
The
proposed Annual Plan of Work for Fiscal Year 2002-03 continues PRC sponsorship
and management of the Twilight Dance Series, Winter Holiday events and Sunday
Concerts, and adds strategies to create additional local and community-based
programs and events attracting Santa Monica residents to the Pier during
off-peak periods. The PRC will reduce
its efforts in pursuit of sponsorships, but will continue to accept cash and
value-in-kind partnering to support planned events and will continue to
implement its licensing program in conjunction with City staff leasehold
development programs. The Board will
also continue to provide guidelines and direction to its staff regarding
filming and sponsored events, and to City staff regarding commercial use of the
Pier, and advocacy with respect to capital projects and improvements affecting
the Pier.
The
proposed Annual Plan of Work includes the PRC Board of Directors specific
objectives to:
The PRC will focus on building local support and local patronage of the Pier by better serving its Santa Monica constituency through development of a volunteer liaison program. In concept, volunteer liaisons will assist the PRC staff and Board in hosting and managing events on the Pier, and provide informational and other assistance to visitors to the Pier. Public relations efforts will also create links with local business and community organizations to create and/or participate in Pier events through direct contact with the organizations and by distribution of media releases for special events.
·
Promote activities,
events and programs to increase public use and enjoyment of the Pier, inclusive
of Pier advertising, film management and event promotion.
The PRC proposes to continuing hosting and supporting
the Twilight Dance Series, Winter Holiday promotions and events, and Sunday
Concerts on the Pier. Additional off-peak
season events such as Cinco de Mayo Celebration and community-based concerts
and features will be developed through the outreach program and as event
sponsorships are created. Filming and
other media activity will be promoted as a means to enhance the positive
exposure of the Pier to the general public and as a means to generate revenue
supporting events and programs.
·
Recommend to the City
strategies to address traffic, vehicular and pedestrian circulation, parking,
safety and community concerns arising in the vicinity of the Pier.
The PRC advocates the widening of the Pier bridge and
vehicular ramp to the 1550 PCH beach parking lot as a traffic and public safety
priority. The PRC will also continue to
manage the Pier street performer monitor program, and continue to work closely
with SMPD, Harbor Guards and tenant security personnel to enhance public safety
on the Pier.
·
Recommend to the City
specific development plans and capital improvements affecting the Pier, and
levels of City staffing for performance of City responsibilities related to
maintenance, repair and leasehold management.
The PRC proposes the enhancement of public restrooms
as a City priority, and advocates for allocation of sufficient City resources
to appropriately maintain the Pier and complete its directory signage, Carousel
improvement and commercial leasing and licensing program.
·
Continue the
implementation of product and/or service sponsorship programs, and advertising
and marketing activities to promote the Pier as a year-round attraction.
The PRC will secure cash and value-in-kind
sponsorships to fiscally support Pier events and activities, and further
develop and implement the Pier licensing program to enhance commercial exposure
of the Pier and to generate additional revenue.
The
proposed PRC Annual Plan of Work for Fiscal Year 2002-03 represents a change in
focus and emphasis from previous years.
Efforts of the PRC commencing in Fiscal Year 1997-98 through Fiscal Year
2001-02, in addition to fulfilling its other responsibilities, have emphasized
creation and implementation of corporate sponsorships and licensing as a means
to enhance revenue to the PRC for use in support of public events and
activities on the Pier. The Annual Plan
of Work now approved by the PRC Board of Directors proposes to shift additional
PRC staff and budgetary resources toward community-based marketing and
development of additional programs and events highlighting the Pier. Sponsorship and licensing activities would
similarly be redirected from attraction of annual corporate sponsors towards
development of event sponsorships securing cash and in-kind revenue that will
be used to support specific Pier programs and events.
The PRC’s proposed budget
and the required City support will be considered by the
City Council during budget
adoption in June.
Staff
recommends that the City Council approve the proposed corporate bylaw, and the proposed
PRC Annual Plan of Work for Fiscal Year 2002-03, contingent on the availability
of City funding in the budget to be adopted by the City Council in June.
Attachments: Revised
PRC Draft By-law
PRC Budget for Fiscal
Year 2002-03
PRC Annual Plan of Work for Fiscal Year 2002-03
Prepared by: Jeff
Mathieu, Director of Resource Management
Mark
Richter, Economic Development Manager
Elana
Buegoff, Senior Administrative Analyst