Many cities enter into operating agreements with the state, according to Ron Schafer, State Parks supervisor of the Angeles District, which covers Santa Monica State Beach.
Doing so allows local governments to have more flexibility and input in the decision-making process, and it makes it easier for cities to qualify for capital improvement grants. The state has ultimate authority over the beach, but the city can make recommendations that carry weight, Schafer said.
“But all that aside, it really just boils down to having access to their own beach,” he said.
City Hall pays for beach upkeep with revenue generated by parking fees, concessions and special events, as well as federal, state and private grants. All money generated or received is invested back into the beach, said Steve Stark, City Hall finance director.
Because some years offer more favorable beach weather than others, meaning more visitors and increased revenues, money coming into the beach fund fluctuates. This makes it difficult to determine if City Hall operates the beach at a loss, Stark said.
“This year, we estimated $6.18 million in revenues and expect to spend $5.9 million,” Stark said. “I know we are planning to have some renovations of pier restrooms and at a few lifeguard stations, so there are needs that arise. There may be one year when we spend more than we take in depending on capital needs, but in the end, all the money goes towards the beach.”
Santa Monica is in a unique position when compared to other cities. The pier and superior water quality of the Santa Monica Bay attract more than 3 million visitors a year, according to city officials, which translates into millions in revenue. Other city-operated beaches may not be as popular and, therefore, can prove to be a financial drain.
In Long Beach, the city operates its beach at a loss, said Mark Sandoval, manager of marinas and beaches for Long Beach.
“We are definitely losing money, but we’ve been doing this forever,” he said. “It’s a service that we provide and our residents have come to demand the best.”
Cities in Los Angeles County first entered into operating agreements in the 1950s, Schafer said. During that time, there was a major push to acquire and protect the coast, but many cities did not have the money to purchase beaches. The state stepped in and has offered cities the option of running the beaches ever since.
There are some downsides, including increased exposure and liability, which has led to lawsuits and monetary judgments against City Hall.
But losing money hasn’t deterred elected officials past and present from maintaining control over the prized assets.
“This city is definitely defined by the beach, so it is important for us to maintain it and operate it at the level that meets our needs,” said Elaine Polachek, the City Hall’s open space manager. “We work hard at that and I think the public appreciates that every time they visit.”
Originally published in the Santa Monica Daily Press print edition on March 4, 2006. Read the original PDF.