Loading...
HomeMy WebLinkAboutF-9a - Status of the Balboa Pier Concession ProjectCITY OF NEWPORT BEACH C3� ) OFFICE OF THE CITY MANAGER COUNCIL AGENDA August 9, 1982 N0, F -9(a) TO: MAYOR AND CITY COUNCIL FROM: Assistant to the City Manager SUBJECT: STATUS OF THE BALBOA PIER CONCESSION PROJECT AUG 09 1982 By f113 L%II'Y C:OUivC:IL Background CITY OF WEWPORT RACH In March 1982 the City Council approved execution of an agree- ment with Mr. Douglas Cavanaugh and Mr. Ralph Kosmides for refurbishment and operation of the concession at the end of the Balboa Pier. The approved concession proposal called for the restoration of the existing facility and its operation as a food, live bait and tackle concession serving both fishermen and pier foot traffic. In terms of refurbishing the dilapidated building, the agreement called for the concessionaire to provide extensive interior renovation, including plumbing, electrical wiring and the installa- tion of all necessary kitchen equipment and associated fixtures. The estimated cost to the concessionaire for these tasks was $52,000. The agreement also called for the City to contribute a total of $25,000 to assist the concessionaire in placing the facility into operation. These funds were to provide mainly exterior renovation and the installation of a gas line and sewage holding tank. In terms of a monetary consideration for the privilege of operating the concession, the agreement called for the payment to the City of $4,000 in base rent per year, plus 5.5% of all gross monthly receipts. Progress to Date and Current Status of the Project At the commencement of the project the concessionaires appear to have been overly optimistic in projecting the opening of the concession facility. The need for obtaining a coastal permit by itself resulted in a delay in commencing construction until the first part of May. Added to this were reported delays caused by the need for custom ordering many of the pre -fabricated fixtures for this renovation project. Attached to this staff report is a letter from the concessionaire, Mr. Cavanaugh. In the letter it is noted that as of July 29, 1982, the project is 90% completed. The balance of work remaining to be done consists of finishing, kitchen equipment installation, and assembling of the cooking and service staff. An opening date of the first week in September is established in the letter. TO: MAYOR AND CITY COUNCIL - Page 2 In his letter Mr. Cavanaugh requests permission to retain the existing temporary fence which blocks the southerly 80 feet of the pier, until the concession is opened for business. As noted, this request is made in an effort to prevent vandalism, which is an ongoing problem on the pier, until the building is actually ready for occupancy. The concessionaires continue to make the fish cleaning tables and sinks available to all the fisherman during the day. The Balboa Pier concession building has been closed since 1977. The City made several unsuccessful attempts between its closure and the awarding of the current agreement to obtain a concession- aire. The estimated cost to the concessionaire and the amount of work required to bring the building up to code and place it into operation are undoubtedly reasons for this lack of prospective concessionaires. It is felt that the delays which have occurred are mainly the result of unanticipated problems generated by a renovation pro- ject of this type and that the concessionaires should not be penalized for being overly optimistic in projecting the estimated opening date. The establishment of the concession facility will be a benefit to the public and will remove an unsightly nuisance from the pier. Recommendation It is recommended that the City Council officially receive this report for information. Additionally, concurrent with receiving this report, the Council would be approving the concessionaire's request to retain the temporary fence until their September opening. Staff will, following Council review and official receipt of this report, proceed to notify the concessionaires of the Council's concurrence. With respect to a date for fence removal, a final date of September 10, 1982, with no further extensions, will be established. Assuan,p t6 -the City Manager GJB; mm attachm nt Dougiss S, Cavanaugh 114 Garnet St, Balboa Island, Calif, 92662 July 29, 1982 Mr. Gerry J. Bolint Assistant to the City Manager 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92663-3884 Dear Gerry: Pursuant to your request for a progress report on the renovation and operation of the Balboa Pier Concession we have prepared this letter which hopefully will answer all of your questions. As of this date the building itself is 90% complete. The balance of the work remaining on the building is mostly trim work. Specifically the work remaining to be done is as follows: finish painting, finish plumbing, finish electrical, finish flooring, booth and counter instal- lation and kitchen equipment installation. The time required to com- plete the above mentioned items and to assemble our cooking and service staff will take approximately one month giving us an opening date some- where in the first week in September. We realize that this opening date is substantially later than the first opening date represented to the city. We apologize for this and hope the city understands that we have encountered many delays with various sub -contractors and material suppliers. Since this is a renovation project where we are trying to preserve and maintain the 1940's flavor of the building it required many of the materials to be special ordered or custom made. We hope that when the city views the finished product they will approve of the additional time and effort that has gone into this building which will make it a facility they can truly be proud of. Of the $25,000 the city has earmarked for the project $21,600 has been expended. This money has been used for exterior improvements which have all been inspected by city building inspectors. Approximately $28,000 of our $52,000 budget has been spent. The balance will go toward finish items, counters, booths, and kitchen equipment. The temporary fence that blocks the southerly 80 feet of the pier which was to be removed July 15th is still in place. The deadline, which we honestly forgot, came at a time when the building could not be secured. Since most vandalism occurs on buildings which are unfinished or unoc- cupied we are requesting to leave the fence erected until we are open for business. 1 SOON Douglas S, Cavanaugh 114 Garnet St. Balboa Island, Calif. 92662 We have a good rapport with the fishermen and have had no complaints from them regarding the fence. They all seem very happy that :the facility will be reopened. During the day (7 a.m. - 7 p.m.) we make the fish cleaning tables and sinks available to all fishermen. Please understand that we are doing everything we can to get Ruby's open as soon as possible. If you have any questions please do not hesitate to contact me. Sine rely, Dou s S. Cavanau DSC/r Page 2 of 2 pages