City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.E
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To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Approval of the Pier Corporation Fiscal Year 2025-26 Budget and Work Plan; Approval of Updates to Pier Leasing Guidelines; and Authorization to Execute a Sixth Modification to Services Agreement between the City and Santa Monica Pier Corporation
Recommended Action
Staff recommends 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 2025-26 Budget and Work Plan;
3. Approve Updates to Pier Leasing Guidelines: and
4. Authorize the City Manager to execute a sixth modification to Services Agreement No. 10101 between the City and the Santa Monica Pier Corporation.
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 2025-26 work plan and budget to Council 2 of 5
for its review and approval. If approved, the SMPC’s Services Agreement will be extended to June 30, 2026.
Under the Services Agreement, the SMPC board is also charged with the development of policy guidelines pertaining to leasing, events, sponsorship and marketing which are updated from time to time and subject to Council approval. SMPC submits to Council for its review and approval an update of the Leasing Guidelines and will present updates of the events, marketing and sponsorship guidelines, as well as a three-year visioning plan at a future meeting.
Discussion
The SMPC FY 2025-26 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 $2.5M for the 2025-26 Fiscal Year. The SMPC’s main sources of income are event rentals, filming, corporate promotions and partnerships, followed by the City’s annual grant. SMPC’s FY 2025-26 Budget projects total revenues in the amount of $2,532,000 and estimated total expenditures in the amount of $2,523,310. This will result in a projected surplus of $8,690.
The SMPC’s prior Fiscal Year’s budget was projected to close with a $14,000 surplus.
However, SMPC year-end actuals for FY2024-25, projects the budget will end with a surplus of $91,000.
Revenues
Projected revenues include: City funding of $150,000; revenues of $2,080,000 from deck and carousel rentals, filming, corporate promotions and partnerships; $200,000 from donations and grants; and $102,000 from licensing, guided tours, registration fees, food/beverage sales, merchandise sales and advertising. As shown in the budget (Attachment A), the main source of revenue is event deck rentals. In an effort to diversify its income streams, the SMPC strategy has been to grow additional revenue generating initiatives including utilizing its status as a 501c3 nonprofit to seek out donations and grants. Overall, the FY 2025-26 projects a 19% growth in revenue from the prior year’s budget.
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Expenditures
Projected expenses include: $1,120,000 for personnel expenses comprised of salaries, benefits and related services; $587,000 for expenses related to facility charges (e.g.
Pier Deck and Carousel rentals) including payments to the City; $585,000 for SMPCproduced Pier programming such as Pier 360, Locals' Night series, Wellness & Waves, Dia de Los Muertos, Save the Pier play, Samo PRIDE and the debut of an annual PIERfect Benefit fundraising gala; $155,310 for marketing; $10,000 for merchandise; and $60,000 for contingencies.
SMPC Work Plan
The attached FY 2025-26 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 2025-26 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.
Also presented in the Work Plan are the SMPC Board of Directors-approved Mission Statement, Vision Statement and Company Values.
Extension of Service Agreement
The Services Agreement between the City and SMPC (Contract No. 10101 CCS) will expire on June 30, 2025. Staff seek authorization to extend the Services Agreement term through June 30, 2026, to coincide with the 2025-26 Fiscal Year.
Leasing Guidelines
The Santa Monica Pier Leasing Guidelines (Guidelines) set forth the general policy objectives and practices for leasing and licensing of City-owned commercial properties on the Pier. The parameters provided are intended to promote standardized, equitable, 4 of 5
efficient and transparent management of the tenant recruitment, selection and negotiation process, as well as to identify the standards of performance that are expected of Pier tenants. Periodically, the Guidelines are updated to reflect new standards, processes and policies.
Updates to the Guidelines from the previous 2017 version are shown in redline. The proposed revisions are intended to enhance transparency in the tenant selection process.
Commission Action
The SMPC Board of Directors approved the revised Pier Leasing Guidelines on June 16, 2025, and approved the FY 2025-26 budget and Work Plan on April 28, 2025.
Environmental Review
The approval of the SMPC FY 2024-25 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.
Past Council Actions
Meeting Date Description
7/09/2024
(Attachment D)
Approval of FY 2024-25 Budget and Work Plan and
extension of Services Agreement through 6/30/2025
6/13/2023
(Attachment E)
Approval of FY 2023-24 Budget and Work Plan and
extension of Services Agreement through 6/30/2024
6/14/2022
(Attachment F)
Approval of FY 2022-23 Budget and Work Plan and
extension of Services Agreement through 6/30/2023
6/22/2021
(Attachment G)
Approval of FY 2021-22 Budget and Work Plan and
extension of Services Agreement through 6/30/2022
7/14/2020
(Attachment H)
Approval of FY 2020-21 Budget and Work Plan and
extension of Services Agreement through 6/30/2021
7/14/2015
(Attachment I)
Council Authorization of five-year Services Agreement with SMPC. Contract No. 10101 (CCS)
Financial Impacts and Budget Actions
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Staff seeks authority to extend the Services Agreement term by one year. The available funding from the Pier Fund for the Services Agreement with the SMPC is included in the FY 2025-26 Adopted Budget in the Community Development Department. No additional financial impact or budget action is necessary. Future year funding is contingent on Council budget approval.
Annual Services Agreement Extension
Agreement FY 2025-26
Amount
Account Number Annual Agreement
Amount
10101 $150,000 53700002.540150 $150,000
Prepared By: Elana Buegoff, Pier Administrator
Approved Forwarded to Council
Attachments:
A. SMPC Budget 2025-26
B. FY2025-2026 Work Plan
C. 2025_Pier Leasing Guidelines_Redline
D. FY 2024-25 SMPC Budget and Work Plan Staff Rpt (Web Link) E. FY 2023-24 SMPC Budget and Workplan Staff Rpt (Web Link) F. FY 2022-23 SMPC Budget and Work Plan Staff Rpt (Web Link) G. FY 2021-22 SMPC Budget and Work Plan Staff Rpt (Web Link) H. FY 2020-21 SMPC Budget and Work Plan Staff Rpt (Web Link) I. 2015 Authorization of Services Agreement Staff Rpt (Web Link)