To:                   Mayor and City Council

From:              City Staff

Subject:          Recommendation to Approve Bayside District Corporation’s Budget and Annual Work Program

 

Introduction

This report recommends that the City Council approve the Bayside District Corporation’s Operations and Marketing Plan and Budget for FY 2005-06.

 

Background

The Bayside Services Agreement dated December 3, 2004, calls for the Bayside District Corporation (BDC) to submit for Council approval a Work Plan and Budget that describes BDC’s planned activities and services, with a corresponding budget for the up-coming fiscal year.  The Operations and Marketing Plan and Budget (“Work Plan”) for Fiscal Year 2005-06 were approved by the BDC Board at its meeting June 23, 2005, and are submitted to Council for its approval.

 

Discussion

The Work Plan for FY 2005-06, Attachment 1, sets forth the activities and programs BDC intends to undertake during the coming year. Some of the programs and projects highlighted in the Work Plan are described below:

 

Operations: Among its various maintenance and capital improvement projects, BDC proposes to install LED tree lighting along the Third Street Promenade, replace art banners, oversee the transition of the vending cart program to a new operator, and replace alley banners with metal branding disks. BDC proposes to research a program for District “ambassadors” to provide additional customer service to Bayside visitors.  Also, BDC will be assisting the City with implementation of Bayside Capital Improvement Projects that are included in the City’s Capital Improvement Budget.

 

Marketing: BDC will initiate a new branded advertising campaign that will expand into cable television, organize and host special events including Winterlit, and outreach to the community through publication of the monthly Bayside Beat and local business “spotlights” produced in cooperation with City TV. There will be special emphasis in support of the grand opening of the new City library, as well as modifications to the Santa Monica Holiday campaign, formerly called Shop Santa Monica.

 

Venue and Performance Management: BDC staff will continue to manage street performance and free speech participants and coordinate special events, promotions, and filming.

 

 

BDC’s budget for FY 2005-2006 anticipates revenues in the amount of $961,900. Revenues include $620,900 granted by the City to BDC for FY 2005-2006, plus $210,000 that the City will collect from the Central Downtown Business District Improvement Area and pass through to BDC for Bayside District marketing.  BDC plans to generate additional revenue through special events, filming revenue, interest earnings and donations. 

 

BDC’s budget is 7% more than the adopted budget for Fiscal Year 2004-2005. The increase can be attributed to an increase in assessments from the Central Downtown Business District, a 2% increase from the City in its basic grant to help cover anticipated increases in BDC’s insurance, and increased revenues from filming and special events permits as a result of the fee increases approved by Council on June 21, 2005.  

 

 BDC’s budget allocates expenditures in FY 2005-06 according to the following categories:

Personnel

42%

Administration

17%

Business Development

5%

Marketing/Promotions

31%

Operations/Maint./Contribution

5%

 

 

Total

100%

 

 

 

Budget/Financial Impact

 

Approval of the Work Plan and Budget imposes no additional budget or financial impact on the City.  City funding for the BDC in the amount of $620,900 is included in the City’s FY 2005-06 Adopted Budget at account # 30625.577070.

 

Recommendation

Staff recommends that the City Council approve the Bayside District Corporation’s Operations and Marketing Plan and Budget for FY 2005-06.

 

 

 

Prepared by: Jeff Mathieu, Director, Resource Management Department

                                    Miriam Mack, Economic Development Manager

    

           

Attachment  A -          Bayside District Corporation Operations and Marketing Plan and Budget  for FY 2005-06