TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Linda Robb, Sr. Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Three-Year Memorandum of Understanding with Oceanographic Teaching Stations (OTS) Authorizing the Use of the Roundhouse for Fundraising Events and Approving Alcohol Service (Beer and Wine) for a Special Event on August 28, 2026 (Unbudgeted) (Parks and Recreation Director Leyman).
A) ADOPT RESOLUTION NO. 26-0094
B) APPROVE SERVICE OF ALCOHOL AT NEXT SPECIAL EVENT, CURRENTLY SCHEDULED FOR AUGUST 28, 2026
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-0094, approving a Memorandum of Understanding (MOU) with Oceanographic Teaching Stations (OTS) extending the term of the use of the Roundhouse for fundraising events for three additional years, plus options to extend, and approving alcohol service (beer and wine) for a special event on August 28, 2026.
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FISCAL IMPLICATIONS:
If the agreement is approved, OTS will pay the City 15% of the aggregate amount of all “License Fees” received from the use of the Roundhouse for authorized events. Fees received from OTS will be allocated to the State Pier and Parking Lot Fund. During the previous MOU period, two fundraising events were held. OTS received $3,900 in license fees and paid $585 to the City. Any OTS funds collected will be applied to the ongoing general maintenance and operations of the State Pier and adjacent comfort station and parking lots.
BACKGROUND:
The City and OTS entered into an agreement on December 4, 2018, authorizing the OTS to occupy the Roundhouse to operate the aquarium. See attachment.
On June 16, 2020, City Council approved a six-month pilot program authorizing the use of the Roundhouse for fundraising events. The pilot program was delayed by the COVID-19 pandemic and began in September 2021, running through March 2022. Due to the short pilot time period and small number of events that occurred, staff recommended a one-year license agreement to properly evaluate the program, which was approved by City Council on June 21, 2022.
On June 6, 2023, the City Council approved a three-year agreement (MOU) authorizing the use of the Roundhouse for fundraising events, including a change allowing events from 5:00 PM to 10:00 PM year-round and requiring City Council approval for more than three events per month; and pursuant to the Municipal Code, requiring additional Council authorization if OTS wants to serve alcoholic beverages at any particular event. That MOU expired in June 2026. Thus, staff recommends that the Council approve a new MOU with essentially the same terms as the expired MOU, with a few changes specified below.
DISCUSSION:
MOU Consideration
The attached MOU re-authorizes OTS to license third parties to use the Roundhouse for certain events, to generate revenue for OTS. Permissible activities, including birthday parties, neighborhood dinners, appreciation events, speakers/lectures, and corporate gatherings, are outlined in the attached MOU between the City and OTS.
The attached contract is the same as the version approved in 2023, except for the three following changes:
1. Section 2, which authorizes the City Manager to extend the MOU’s term upon mutual agreement of the parties.
2. Section 5, B, clarifies that if OTS does not receive any license fees for an authorized event, OTS has no obligation to pay the City any sum. For example, if OTS donates an authorized event as an auction item for a non-related organization’s fundraiser and receives no auction proceeds, no amount would be owed to the City. If an authorized event is listed as an auction item at any fundraiser in which OTS receives any auction proceeds, OTS shall pay a Pier Improvement Fund Contribution in the amount of 15% of the winning bid.
3. Section 3, C, changes the advance notice of an event from seven business days to 30 calendar days to allow time for the City Council to consider a request, if any, from OTS for a special permit to serve alcoholic beverages.
The events are subject to the following conditions:
1. OTS shall enter into a license agreement with the event sponsor.
2. Permissible events include birthday parties, neighborhood dinners, appreciation events, speakers/lectures, and corporate gatherings.
3. OTS shall provide at least seven business days advance notice.
4. All events shall occur between the hours of 5:00 PM and 10:30 PM.
5. Maximum Occupancy: 40
6. Private security is required for events of twenty or more people.
7. No event may block access to any part of the Pier at any time without prior written approval from the City.
8. There shall be no driving on the pier, no smoking, no gasoline or other combustibles, no cooking, no animals, nothing may be attached to walls or display tanks, no access to office or lab areas, no use of plastic straws or bags, no tents or pop-ups on the pier, and no feeding of the fish and other sea specimens.
9. The City shall have the right to use the Roundhouse up to ten times per year for special functions. City events shall take precedence over any authorized events.
10. In order to allow alcohol service at events, OTS agrees to maintain liquor liability insurance verified by the City’s Risk Manager. No alcoholic beverages are to be sold during any event.
Staff recommends that the City Council approve the three-year Memorandum of Understanding, which also allows the City Manager to extend the MOU, upon mutual agreement of the parties.
Alcohol Service Consideration for Special Event
Staff has received an application for a fundraising event currently scheduled for August 28, 2026. The proposed event will be a private reception for 18-20 people, from 6:00 p.m. - 9:00 p.m., and falls within the terms and conditions of the MOU. OTS is requesting a permit to allow the service of alcohol (beer and wine) at the event, pursuant to Manhattan Beach Municipal Code Section 4.48.090 - Limited alcoholic beverage use on public property - Special permit.
In accordance with the Police Chief’s recommendation, staff recommends that the City Council approve a special one-time permit to allow for the consumption of alcohol (beer and wine) at the Roundhouse Aquarium on the Manhattan Beach Pier for the private reception to be held on August 28, 2026.
PUBLIC OUTREACH:
The MOU between the City and Oceanographic Teaching Stations, Inc. has been discussed at the City Council meetings on June 16, 2020; June 21, 2022; and June 6, 2023.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0094
2. 2026-2029 Memorandum of Understanding - Oceanographic Teaching Stations, Inc.
3. 2023-2026 Memorandum of Understanding - Oceanographic Teaching Stations, Inc.
4. 2018-2028 OTS Roundhouse Agreement