November 1, 2022
HONORABLE MAYOR AND CIT
Y COUNCIL
City of Long Beach
California
RECOMMENDATION:
Recommendation to increase appropriations in the Tidelands Area Fund Group in the Economic Development Department in an amount of $1,000,000, for various re-opening improvements at the Q ueen Mary, offset by Fiscal Year (FY) 22 Special Events and Filming revenues designated for this purpose. (District 1)
DISCUSSION
On June 21, 2022, the City Council authoriz ed a Hotel Management Ag reement (HMA) with Evolution Hospitality, LLC (Evolution) for the reopening and operation of the Queen Mary H otel,
attractions, parking, retail, food and beverage services, and ship related events for a period of five years. The HMA included approximatel y $2,870,500 in estimated pre-opening and re- opening costs in FY 22 in the Tidelands Area Fund Group. This estimate includes $1.6 million pre-opening costs for staffing and other approved costs, $1 million pre-opening improvements for priority visitor-serving projects needed to safely re-open the ship, an 8.5 percent contingency of $195,500 for additional re-opening needs, and $75,000 for reopening service fees.
As of October 20, 2022, Evolution has addr essed plumbing issuesthroughout the ship, reinstituted internet and Wi-Fi across the entirety of the vessel, begun the process of restoring the ship’s handrails, and is actively improving the energy efficiency aboard the ship by installing energy-efficient lightbulbs and fixtur es. In addition, Evolution has initiated the replacement of the ship’s boilers and the repair/installation of the ship’s heat exchangers.
Additional re-opening needs and improvements have since been identified. These needs and improvements will be implement ed on behalf of the City of Long Beach (City) by Evolution under the HMA. City Council appr oval is requested to increase appropriation in the Tidelands Area Fund Group in the Economi c Development Department in the amount of $1 million in support of pre-opening improvement s. The requested funding will continue to aid in the restoration of the Queen Mary Hotel, ensuring that amenities and guest experience are of the highest quality. The additional funding will support pre-opening needs include, but are not limited to:
Linoleum Flooring & Carpet Repair
The replacement of linoleum flooring and carpet is needed to improve the aesthetics of the most accessible portions of the ship while remediating risks caused by trip hazards.
The linoleum and carpet will be replaced with historically accurate furnishings under the Economic Development Department
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6099
NB-44
HONORABLE MAYOR AND CITY COUNCIL
November 1, 2022
guidance of the ship's Historic Resource Officer. The improvements will ensure that as operations begin to resume, common pathwa ys are free of hazards and accessible to all guests.
HVAC/Refrigeration Repairs
To provide a comfortable experience to Queen Mary patrons, improvements and renovations will need to be done to HVAC aboard the ship. Restoration will ensure that proper heating and cooling are a ccessible to all portions of the vessel. The kitchen freezers and coolers will be repaired where possible and replaced where needed to ensure the timely reactivation of food services upon reopening.
Elevator Repairs
Repair and renovations are proposed to severa l existing elevators in an ongoing effort to improve the safety and guest experience at the Queen Mary facility and to maintain multiple options for safe and equitable public access to the ship. The modernization of these elevators will also provide aesthetic improvements, helping ensure a world-class experience for patrons.
Installation of Kitchen Hoods
The replacement of the kitchen hoods is required to obtain compliance and receive certification from the Long Beach Fire Department to resume operations and restore food service provided by the ship’s restaurants.
Replacement of Guest Room Locks
To ensure guest safety, the proposed improvements will replace malfunctioning locks in various rooms to provide security to all aboard the Queen Mary.
In addition to the pre-opening co sts stated above, improvements related to parking will be coordinated with LAZ Parking, the City’s parking operator, and will be brought back to the City Council for review to enhance the parking capab ility, which is one of the major revenue generators for the ship. Special Events and Filming has facilitated activity on board the ship to help generate additional revenue during the ship’s closure. In FY 22, these activities resulted in approximately $1 million in unbudgeted revenues in the Tidelands Area Fund Group. These revenues were designated to offset re-opening im provements to the extent possible and will be used in support of the needed improvements.
This matter was reviewed by Deputy City Attor ney Richard F. Anthony on October 24, 2022, and by Budget Management Officer Nader Kaamoush on October 25, 2022.
HONORABLE MAYOR AND CITY COUNCIL
November 1, 2022
APPROVED:
THOMAS B. MODICA
CITY MANAGER
TIMING CONSIDERATIONS
City Counc
il action is requested on November 1, 2022, so that the re-opening improvements can begin expeditiously.
FISCAL IMPACT
The recommended action will authorize an additional $1,000,000 in estimated re-openin g
costs. An appropriation increas e in the amount of $1,000,000 is requested in the Tidelands Area Fund Group in the Economic Development D epartment, offset by FY 22 Special Events and Filming revenues designated for this purpose.
This recommendation will result in significant staff resources from the Economic Development and is consistent with existing City Council pr iorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
BO MARTINEZ
DIRECTOR OF ECONOMIC DEVELOPMENT
REQUEST TO ADD AGENDA ITEM
Date: October 28, 2022
To: M
onique De La Garza, City Clerk
Fr
om: Thomas B. Modica, City Manager
Subject: Request to Add Agenda Item to Council Agenda of November 1, 2022 P
ursuant to Municipal Code Section 2.03.070 [B], the City Councilmembers signing below request that the attached agenda item (due in the City Clerk Department by Friday, 12:00 Noon) be placed on the City Council agenda via the supplemental agenda.
The agend
a title/recommendation for this item reads as follows:
R
ecommendation to increase appropriations in the Tidelands Area Fund Group in the Economic Development Department in an amount of $1,000,000, for various re- opening improvements at the Queen Mary, offset by FY 22 Special Events and Filming revenues designated for this purpose. (District 1) Council District Authorizing Councilmember Signed by
1 Mary Zendejas (Digital – attached email)
2 Cindy Allen (Digital – attached email)
3 Suzie Price (Digital – attached email