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

 

Introduction

 

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.

 

Background

 

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 PRCís 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 Ė 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.

 

Discussion

 

Proposed Bylaw

 

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.

 

Fiscal Year 2002-03 Budget

 

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 FYí02), $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 FYí02, 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 Cityís FY 02/03 budget in June.

 

 

 

Annual Plan of Work for Fiscal Year 2002-03

 

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 PRCís 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.

 

Budget/Financial Impact

 

The PRCís proposed budget and the required City support will be considered by the

 

City Council during budget adoption in June.

 

Recommendation

 

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