Recommendation to receive and file a presentation by the City Manager’s Office on the status of recent initiatives by the Aquarium of the Pacific.  (Citywide)
Thank you. Let's take the next item please. Erm which I believe is the current presentation, I repeat the 1990. Report from City Manager Recommendation to receive and file a presentation by the City Manager's Office on the status of recent initiatives by the Aquarium of the Pacific Citywide. Good evening. Mayor and city council members. This is a presentation to from the aquarium of the Pacific. That facility is one of the city's most valued and recognized assets. It attracts millions of visitors to the city each year. And the city has maintained a strong partnership with the board of directors and the executive staff at the aquarium who operate and manage it on a day to day basis. Consistent with this partnership, the Aquarium team periodically provides an update on their program initiatives and their overall financial status to this body and to that tonight. That's the nature of this presentation. So I would like to introduce Peter Cava. He is the aquarium CEO and he will kick off this presentation. Thank you, Peter. Okay. Start again. I don't know. Mayor and vice mayor and distinguished councilmembers. Thank you for the opportunity to speak with you this evening. My name is Peter Cribb and I'm the CEO and president of the Aquarium of Pacific has it. With me this evening is Edgefield, the Aquarium of Pacifics board chair, and Anthony Brown, the aquarium's chief financial officer. We come before you to thank the city for its ongoing support. Your support uplifted our staff. Your support enabled us to not only survive the last two pandemic years, it allowed us to thrive. And so, in addition to thanking you, we want to share some of our new programs and we want to share our financial results. Next slide. Starting with the programs when the pandemic hit. Suddenly, there were no more yellow school busses parked outside the aquarium. Nonetheless, we found ways to connect with our youth. We developed online education programs that reached over 200,000 students who were stuck at home. We mastered that new short form of communication tik-tok and built a global following of 2.5 million. Yes, 2.5 million tik-tok followers. Learning about our otters, learning about our sharks, our penguins. And so much more. Next slide. This next new program is my personal favorite. And let's hear from Anthony Brown, as he describes it. Thank you, Peter. In 2020, we developed the idea of an African-American scholar program. After raising sourcing over $100,000 in early 2021, we awarded scholarships to ten college students with studies in the areas related to the field of aquarium. Each scholar received $10,000 and ongoing engagement with the aquarium. And I'm pleased to announce that our second cohort. Of 11 students. Have been identified. Our scholarship committee has identified these students and we will acknowledge them. As the newest class of scholars at our African American Festival on February 26. While the monetary award has certainly been meaningful to these scholars, these students have communicated that the community building, the networking, the support by the aquarium has been invaluable towards their future. Next slide. Picking up from Anthony. In the last few months, we have created an American Indian Fellowship. It may be one of the. Only once in the nation and a Hispanic fellowship program. These programs bring young people to the aquarium to participate in meaningful mission related work and to learn important professional skills. Finally, another new initiative we are introducing is the opportunity for students to gain transferable college credit courses in marine conservation and science from our facility. This is free to high school students and could be a gateway to STEM fields. Next slide. Then there is conservation. During the pandemic. Our specially trained staff have been out along the shoreline, rescuing and recovering our precious wildlife. You see some of them here in protective gear. Sea turtles, elegant terns and oiled seabirds. We are also developing a sea otter surrogacy program that will foster baby otters to release back into the wild. We are becoming a leader in California conservation. Next slide. And I now I'd like to turn it over to Anthony. Thank you again, Peter. So the aquarium, the Pacific, operates and runs its financials on a calendar fiscal year. And what I have here is an illustration of the last three years. In 2019 pre-pandemic, the aquarium enjoyed its best year ever with its major expansion, complete and total operating revenue reaching a historical high of 41 million. And of course, in 2020, with the pandemic and the aquarium was only fully open for 91 days. We were fully closed for more than two months and partially opened with outdoor only access for the majority of the year. We suffered tremendously. You can see a net loss of nearly 13 million and earnings. I'm pleased to report, though, in 2021, with pent up visitor demand and record level spending in retail and annual memberships, we achieved 43 million in total operating revenues. Operating expenses were offset significantly by a 10 million federal grant that the aquarium was able to switch to get awarded. And so favorable revenue and expenses resulted in a net earnings finishing at a historic high of 22 million. Next slide, please. This allowed the aquarium to focus on recovery and growth. We work together with city leaders in Treasury, Financial Management and the city manager's office to achieve the following results. We reestablished our operating and operating reserve account. We created with the city a financial model that uses the surplus that I talked about to secure rent obligation of 2.2 million per year that we pay for more than four years. And also, it allocates the same amount, 2.2 million a year for four plus years towards a capital account to improve the city's facility. During the pandemic, the city allowed the aquarium to pay off our $10 million loan early. This loan was granted in 2017 by the city to help the aquarium with the timing of construction payments versus the contribution for our capital campaign. And most notably, our our 2021 financial results were achieved without the need to exercise the option to use the two loans the City Council had previously approved. The $2.2 million in 2020 we thought we might need to fulfill our rent covenant. And then also in early 2021, we had our four or $5 million loan option to pay for rent and to cover operating expenses if we remained close. Never. We never needed to exercise those loans. And so the results that you saw on the earlier slide reflect the hard work and commitment of the staff here and now. I would like to introduce our newly elected board chair, MPO, who will conclude this presentation. Thank you, Anthony. Next slide, please. In closing, we thank the city for its support of the aquarium during the period of our shutdown. With the support of the city and that of our members and donors and the significant efforts of the aquarium staff, the aquarium has come into 2020 to an excellent financial condition. We believe the Aquarium of the Pacific is a wonderful resource for the students and citizens of Long Beach and adds to the reputation of the city as a leader in marine sciences. The staff and board of the aquarium value the continuing strong partnership with the city and look forward to future collaboration on important issues related to education, the environment and the city itself. Thank you. So that concludes the the presentation by the aquarium staff is available to answer any questions you might have. Let me go to Councilwoman Zendejas. Thank you. Thank you, Mayor. I motion to set this presentation. Thank you very much. I just want to say thank you to the aquarium for being such fantastic partners. I think it's amazing all of the things that you are doing for so many of us here in. Here in Long Beach. I fallen in love with the Aquarium of the Pacific since before it was built, which was a long, long, long time ago. And you have just come through over and over again. So I'm very, very thankful to have you. You're one of our true gems here in the city. Thank you for providing this presentation and thank you for truly highlighting the beauty of our amazing aquarium. It is mesmerizing to learn all about the work that you continue to do in our aquarium, even though times have been difficult. You still seem to push through and push forward and on to gain that many followers. That is that may seem to be an aquarium and actually you know be able to. Just to capture that big of an audience. I know. I love watching your take pass on the face again, you guys. That I mean I'll give you some details. You guys are pretty, pretty creative. So I just have to give you an applause for that. I also want to thank you for the opportunity that I had when you asked me and invited me to be a judge for your Tai Chi film festival, which was geared towards high school students all over that competed in this unique film festival where they were able to betray their relationship with the ocean, with the with the animals in the ocean through film. And that was just such a great experience to watch all of these. Fantastic. You've come forward with some amazing ideas and be able to showcase them and be able to have a red carpet event for them, which is what you had when you announced the winners. And I just was so honored to be part of this, along with Councilwoman Allen. And I just want to thank you for all the wonderful work that you do. And I just want to remind you what a valuable asset you are here to our city of Long Beach. And thank you for all you do for not only our community, but especially our children. You always have programs that focus on them. And I just want you to know that I will keep supporting in any way that I can. And also thank you again for also hosting the Human Ability Festival that happens every year. That was back this year. That is a very special event for me, very close to my heart. And it's super, super special to be to be having that big solarium. So, again, thank you so much. Thank you, Councilwoman Allen. I thank you, Mayor. And I agree with everything that Councilwoman De has just said. Thank you, Dr. Riva, for the wonderful presentation. You are absolutely a wonderful person and just such a great partner in our city and our region. I love hearing about all of your your tip top and just all of your engagement during COVID. I think you and your team, you guys are just, you know, innovative and resourceful. So congratulations on all of that success. I also love seeing the African American Scholar program, the American Indian Fellowship Program, the Expanded Fellowship Program, the Festival of Human Ability. And so I you know, equity is really equity and access is is very important to me. And and I know it's important to you, too, with all the conversations that I have had. So I just want you to know I can't wait until we have the the district two nights at the aquarium. And I just I just look forward to being able to figure out a date for that. So thank you for your presentation and all the great work that you do. Thank you. Councilwoman Sara. You Mayor. I just want to add to Councilmember Sunday has been Allen's comment that I'm so relieved and happy to hear that you have financially been able to not only exceeded what you were able to generate prior to the pandemic, because I knew that it was concerning when we had to consider how to provide a loan and knew that, you know, that everybody was struggling and so glad to see the creative steps you talk to, making sure that you figure out ways to keep people engaged. I would be honest online with my kids because we have a membership to the Aquarium of the Pacific. We go regularly. I think I'm due for a membership renewal. I'll make sure I do that to continue to support you all and the great work you do. So just really appreciate the team, the board members and all of their hard work and effort to ensure that there's just your you're making sure to reach just such a diverse audience, to engage everyone possible in marine biology and conservation and how to water conservation and all of that. So please keep up the great work and thank you so much for that great update and presentation. Councilwoman Mongo, please. Thank you, Councilman Toro. Thank you. I've been looking forward to this presentation for quite some time. I'm a big fan. My whole family is a big fan of the aquarium. And every time we have out-of-town guests, of course, it's one of our top priorities, the places we take people. It's an educational opportunity. And I love to see the interns that are so enthusiastic and the volunteers and. Just being at the aquarium is such a blessing to have you in our city is such a blessing. And I'm really proud of. The financial changes you've made. I'm excited about that and I look forward to following up. And learning more about. How we turn those Tik-Tok followers into lifetime supporters of the aquarium. Thanks so much. Councilman Price. Thank you, Mr. Mayor. I want to echo the comments of my colleagues, and thank you for the presentation, really, really positive presentation. Great to see that this city asset is thriving and continues to bounce back and in really impressive ways after the pandemic. So I really appreciate the presentation. I tell everyone that I talked to you about the aquarium, that the aquarium has a really special place in our family's heart because we were members when the kids were babies. I think our little one wasn't even lifting his head up yet. We had him and a baby and going to the aquarium. And that was just an activity that we really all enjoyed doing as a family. And now he's. Five foot 11 and much different than those days. But our very first fundraiser for the school was that we purchased tickets to a sleepover at the aquarium. So we took our sleeping bags and we spent the night in one of the exhibit rooms with a lot of other families, and it was just the coolest thing. So I always feel like we have a special connection to the aquarium because of that and always and rooting for its success and to do well. So thank you for the presentation and thank you for giving us something so positive to tell our guests and our friends and our our families about this wonderful city asset. It really does make us proud. And it's one of those city assets, I think that's worth the investment because of the work of the board to ensure that we're not taking risks that are not measured in regards to this specific city asset. And in fact, the investment that we're putting into this asset is is being rewarded in many ways back to us. So thank you very much. Thank you. I have actually that was all of the councilmembers. Do we have any public comment on this. At this time? If there's any members of the public that wish to speak on this item, please use the raise hand feature or press star nine. Our first speakers tie do. I, um, I just wanted to also second Councilwoman Van de Haas's comment about human abilities. I would ask that the museum consider joining the Museums and Zoos for all program, which provides a $3.3 admission price to those holding an ID card. I would like to remind the museum that it's probably the only museum in Long Beach that isn't a part of that program. And I'm certainly well aware that you have a disability day as well as a seniors day. So if you are unable to immediately join the Museum's for all program, I would ask that you at least provide a quarterly free day for those with disabilities. And those over 62 I think is currently what the ages and that is all. Thank you so much. That concludes public comment for this item. Thank you. And as we go to a vote, I just want to, of course, also just thank our aquarium team and great new leadership. One of the best things about our city, this incredible research institution, attraction sanctuary, uh, just so many different roles of different plays in our community and just grateful that it's there, it's expanding, and it welcomes so many amazing families, obviously, in person and and online as well. And so thank you for that presentation. And we're going to roll call Brooklyn's. District one. I district to. My. District three. My District four. I. District five i. District six i. District seven. District eight. All right. District nine. All right. Motion is carried.