City Council
Report
City Council Meeting: June 23, 2026
Agenda Item: 4.I
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To: Mayor and City Council
From: Oliver Chi, City Manager, Office of Economic Development Subject: Approval of the Pier Corporation Fiscal Year 2026-27 Budget and Work Plan and Authorization to Execute a Seventh Modification to Services Agreement between the City and Santa Monica Pier Corporation
Recommended Action
Staff recommend that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Approve the Santa Monica Pier Corporation Fiscal Year 2026-27 Budget and Work Plan; and
3. Authorize the City Manager to execute a seventh modification to extend Services Agreement No. 10101 between the City and the Santa Monica Pier Corporation through June 30, 2027.
Executive Summary
The Santa Monica Pier is an iconic landmark drawing millions of visitors each year to enjoy one-of-a-kind experiences while strolling above the ocean waves. The City contracts with the Santa Monica Pier Corporation (SMPC) through a Services Agreement to manage certain programs and services at the Pier including marketing, production of community programming such as the highly popular Locals’ Night series, as well as coordination of filming and private event rentals and proctoring the daily street performer lotteries.
The SMPC is required to prepare an annual budget and business work plan to set forth its goals and objectives for the ensuing fiscal year. In accordance with the Services Agreement, the SMPC submits its FY 2026-27 work plan and budget to Council for its 2 of 5
review and approval. If approved, the SMPC’s Services Agreement will be extended to June 30, 2027.
Discussion
The SMPC FY 2026-27 Budget (Attachment A) and Work Plan (Attachment B) describe in detail the activities and programs SMPC will undertake in the upcoming fiscal year.
SMPC Budget
The SMPC presents a balanced budget of $2.53M for the 2026-27 Fiscal Year. The main sources of income are event deck rental, film permits, corporate promotions and partnerships, followed by the City’s annual grant. SMPC’s FY 2026-27 Budget projects total revenues in the amount of $2,530,000 is summarized in the first table below and estimated total expenditures in the amount of $2,524,925 is summarized in the second table below. The projected surplus is $5,075 for the 2026-27 Fiscal Year. (Attachment A)
Revenues
Event Deck Rental, Film Permits, Corporate Promotions, Partnerships $2,115,000 City’s Annual Fund $150,000
Licensing, Guided Tours, Registration Fees, F&B Sales, Merchandise Sales, Advertising
$65,000
Donations and Other Grants $200,000
Total Income $2,530,000
Expenditures
Personnel Expenses - salaries, benefits and related services $1,195,000 Facility charges including Pier Deck and Carousel rentals and payments to the City
$537,000
Pier programming: Pier 360, Locals' Night, Wellness & Waves, Dia de Los Muertos, Save the Pier Play, Samo PRIDE, annual PIERfect Benefit Gala $580,000
Marketing $183,925
Merchandise $5,000
Depreciation $3,000
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Contingency <3% $21,000
Total Expenses $2,524,925
SMPC Work Plan
The attached FY 2026-27 Work Plan describes SMPC’s accomplishments for the prior fiscal year and details the new and continuing activities SMPC plans to perform during the new fiscal year.
For the 2026-27 Fiscal Year, the SMPC’s focus will be on providing support for the City’s efforts to expand large-scale event opportunities at the pier and beach; producing and building upon the Pier Corporation’s own year-round schedule of free event programming; and enhancing the organization’s fiscal sustainability through the inaugural annual fundraising gala, and the creation of a “Friends of the Santa Monica Pier” to solicit donations and raise funds to support the SMPC’s activities.
Extension of Service Agreement
The Services Agreement between the City and SMPC (Agreement #10101 CCS) will expire on June 30, 2026. Staff seek authorization to extend the Services Agreement term through June 30, 2027, to coincide with the 2026-27 Fiscal Year. (Attachment C) Clarification of City and Pier Corporation Roles for Pier Deck Events As part of the FY 2026-27 budget process, staff recommends approving the seventh modification to the Pier Corporation Agreement #10101. Pier Corp's success in promoting the Pier has made it a premier event destination, and the scale of demand now requires the City to directly manage major event intake, scheduling, agreements, permits, fees, and revenue. The City and Pier Corp are currently working to clarify their respective roles in Pier deck programming and special events; a subsequent service agreement between the City (represented by the Economic Development Department) and Pier Corp. will formalize those roles.
Under the proposed approach, the City, through the Major Events Division and collaborating departments, would be responsible for intake, review, evaluation, calendar 4 of 5
clearance, negotiation, fee setting, contracting, permitting, and revenue administration for all Pier deck events, including major and special events early in the fiscal year. As a critical City partner, the Pier Corp would continue to develop and propose event concepts, refer event opportunities to the City, provide Pier-specific operational input, and, upon City approval, support implementation, marketing, and promotion consistent with City direction, applicable community guidelines, and adopted special event requirements. Pier Corp would also continue to produce its own City-approved community programming, including free public events consistent with its role in curating the visitor experience and celebrating the Pier's historic, cultural, and recreational significance (e.g. Pier 360, Locals’ Night). All special events would remain subject to applicable City ordinances, regulations, permit requirements, and Special Event Guidelines, and none may proceed without prior written City approval.
Because the current Pier Corp financial model includes event-related revenue, future agreement modifications will also need to address related budget and funding adjustments. The FY 2026-27 budget will proceed on the current schedule; staff will return with further recommendations as part of the broader Pier governance review and contract update process anticipated to come to Council early winter.
Commission Action
The SMPC Board of Directors approved the FY 2026-27 budget and Work Plan on May 18, 2026.
Environmental Review
The approval of the SMPC FY 2026-27 budget and work plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The work plan provides activities and programs that would not result in a significant adverse physical impact on the environment, and therefore, is exempt from CEQA.
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Financial Impacts and Budget Actions
Staff seeks authority to extend Agreement #10101 through June 30, 2027. The available funding from the Pier Fund for the Services Agreement with the SMPC is included in the FY 2026-27 Proposed Budget in the City Manager’s Office. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement FY 2026-27Amount Account Number Annual Agreement Amount 10101 $150,000 53200003.540150 $150,000
Prepared By: Wendy Siao, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. Attachment A: SMPC Budget FY 2026-27
B. Attachment B: SMPC FY2026-27 Work Plan
C. Attachment C: 2026-27 Seventh Modication to Service Agreement 10101 D. Attachment D: July 8, 2025 Staff Report for SMPC 2025-26 Budget, Work Plan and Service Agreement