Agenda - City of Santa Monica

October 28, 2014 Council Agenda - City of Santa Monica

AGENDAS   CITY OF SANTA MONICA   REGULAR CITY COUNCIL MEETING AND A   SPECIAL JOINT MEETING WITH CITY COUNCIL, THE SANTA MONICA   REDEVELOPMENT SUCCESSOR AGENCY, HOUSING AUTHORITY   AND PARKING AUTHORITY   CITY HALL COUNCIL CHAMBERS - 1685 MAIN STREET   TUESDAY, OCTOBER 28, 2014   MEETING BEGINS AT 5:30 P.M.   CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL   (Please note that Agenda Items may be reordered during the Council meeting at the discretion of the City Council.)   1.   CLOSED SESSIONS:   1-A:     Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1):  Devermont v. City of Santa Monica, et al., United States District Court Case No. CV 12-6772 DDP (MRWx)   1-B:     Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1): Redden et al. v. City of Santa Monica, Los Angeles Superior Court Case Number BC 545 191    1-C:     Conference with Labor Negotiator. City Negotiator:     Donna Peter, Director of Human Resources             Bargaining Units:  United Transportation Union (UTU)                                                 Coalition of Santa Monica City Employees   1-D:     Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1): Harris v. City of Santa Monica, Los Angeles Superior Court Case Number BC 520 427   1-E:     Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to the Government Code Section 54956.9(d)(1): Craig R. Miller et al. v. City of Santa Monica, Los Angeles Superior Court Case No. BC 492 621  

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October 28, 2014 Council Agenda - City of Santa Monica

1-F:     Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9(d)(1): United States of America, ex rel Mark Baird, Individually, Justin Frith, Individually, Rick Jerome Larson, Individually, and David Moran, Individually v. City of Santa Monica and Gerber Ambulance Company, Inc., United States District Court, Central Division Case Number CV11-06632 RSWL (CWX)   1-G:     Conference with Legal Counsel – Anticipated Litigation:  Anticipate significant exposure to litigation pursuant to Government Code Section 54956.9 (d)(2) – 1 case: 402 Colorado Avenue, Santa Monica, California 90401     The following is the order of business for items to be heard no earlier than 6:30 p.m.    2.  SPECIAL AGENDA ITEMS:   2-A:     Presentation of Graduating Class of The People’s Academy   2-B:     Proclamation regarding “Start by Believing” Public Awareness Campaign   3.  CONSENT CALENDAR:  (All items will be considered and approved in one motion unless removed by a Councilmember for discussion.)   3-A:     Approval of minutes of October 14, 2014 City Council meeting.   MINUTES   3-B:     Incorporation of a Non-Profit Organization – recommendation that the City Council approve the proposal to incorporate a non-profit entity to partner with the Santa Monica Animal Shelter, direct staff to establish articles of incorporation and bylaws, and nominate a board.   STAFF REPORT   3-C:     Big Blue Bus Short Range Transit Plan and Applications for Funds – recommendation to authorize the City Manager to file the Fiscal Year 2015-2017 Short Range Transit Plan with the Los Angeles County Metropolitan Transportation Authority (Metro); and adopt a resolution authorizing the City Manager to apply for and to execute grant agreements and to execute related Certifications and Assurances with the Federal Transit Administration, Metro, or other federal, regional or local agencies; and, enter into agreements for transit funds for the pass-through of funds and agreements for planning, programming and implementing transit services and capital projects during FY 2015 through FY 2017.   STAFF REPORT   3-D:     Adopt resolutions authorizing the City Manager to negotiate and execute Historic Property Preservation Agreements (Mills Act Contracts) between the City of Santa Monica and the property owners of five designated City Landmarks at 1602 Georgina Avenue, 1047 9th Street, 225 Santa Monica Boulevard, 947-953 11th Street and 401 25th Street

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October 28, 2014 Council Agenda - City of Santa Monica

  STAFF REPORT   3-E:     Award Construction Management Agreement for the FY 2013-14 Water Main Replacement Project – recommendation to authorize the City Manager to negotiate and execute a contract with SA Associates for construction management and inspection services for the FY 2013-14 Water Main Replacement Project in an amount not to exceed $356,400; and authorize the issuance of change orders to complete additional work.   STAFF REPORT   3-F:     First Modification to Professional Services Agreements #2590 with Cotton, Shires & Associates, Inc. and Professional Services Agreement #2591 with Koury Geotechnical Services, Inc. to provide geotechnical engineering services to the Building and Safety Division – recommendation to authorize the City Manager to negotiate and execute: 1)  a first modification to Professional Services Agreement #2590 with Cotton, Shires & Associates, Inc., to provide geotechnical review services, in the amount of $135,000, and to extend the term of the agreement by two years, resulting in a five year amended agreement with a new total amount not to exceed $205,000; and 2) A first modification to Professional Services Agreement #2591 with Koury Geotechnical Services, Inc. to provide geotechnical review services, in the amount of $135,000, and to extend the term of the agreement by two years, resulting in a five year amended agreement with a new total amount not to exceed $205,000.   STAFF REPORT   3-G:     2013 and 2014 Bulletproof Vest Partnership Grants – recommendation to authorize the City Manager to accept a grant awarded in the amount of $23,372 from the US Department of Justice (DOJ) 2013 Bulletproof Vest Partnership (BVP) Award; accept a grant awarded in the amount of $30,152 from the US DOJ 2014 BVP Award, and authorize budget changes.   STAFF REPORT   3-H:     Amend Purchase Order for One Additional Ford Transit Connect Vehicle for the Animal Control Unit – recommendation to approve a change order to Purchase Order 383429-OP in the amount of $65,665 with South Bay Ford Lincoln, for the purchase and delivery of one additional Ford Transit Connect vehicle for the Santa Monica Police Department Animal Control Unit, resulting in an amended purchase order with a new total amount not to exceed $262,658.   STAFF REPORT   3-I:       Award Bid for Police Department Vehicle Up-fitting Services – recommendation to award Bid #4158 to Airwave Communications Enterprises to provide labor and equipment associated with upfitting Police Department vehicles; and authorize the City Manager to negotiate and execute a contractual services agreement with Airwave Communications Enterprises in an amount not to exceed $792,000 for one year, with two additional one-year renewal options in the amount of $792,000, on the same terms and conditions for a total amount not to exceed $2,376,000 over a three year period, with future year funding contingent upon Council budget approval.   STAFF REPORT   SPECIAL JOINT MEETING OF THE CITY COUNCIL, THE REDEVELOPMENT SUCCESSOR AGENCY, file:///S|/2014/20141028/a20141028.htm[10/24/2014 3:47:00 PM]

October 28, 2014 Council Agenda - City of Santa Monica

THE HOUSING AUTHORITY, AND THE PARKING AUTHORITY:   ROLL CALL   3-J:      Approval of minutes of various meetings of the Redevelopment Successor Agency, Housing Authority, and Parking Authority in 2014.   MINUTES   ADJOURNMENT OF JOINT MEETING   7.  ORDINANCES:  (Public comment is permitted on ordinances for introduction and first reading.  No public discussion is permitted on ordinances for second reading and adoption.)   7-A:     Second reading and adoption of an Ordinance adding Section 4.08.810 to the Santa Monica Municipal Code Prohibiting Selling, Leasing or Reserving for Compensation Public Spaces in the City   STAFF REPORT   7-B:     Second reading and adoption of an Ordinance Adding Disability to the List of Classes Protected Against Housing Discrimination by Local Law   STAFF REPORT   7-C:     Second reading and adoption of an Ordinance adding Section 4.08.098 to the Santa Monica Municipal Code Restricting Presence in Hospital Emergency Room Waiting Areas Except for Medical Services   STAFF REPORT   8. STAFF ADMINISTRATIVE ITEMS:   8-A:     Downtown Parking Structure Advertising Program Update – recommendation that the City Council authorize the continuation of the advertising and signage project with the expansion of the program to include 28 additional signs on the upper floors of parking structures 1-8 through August 31, 2018, and appropriate budget increases.   STAFF REPORT   Please note that Items 8-B and 8-C may be heard together.   8-B:     Stage 2 Water Supply Shortage Implementation – recommendation that City Council: review and comment on the proposed updates to the Water Supply Shortage Plan (WSRP) Water Use Allowances; review and comment on a proposed drought surcharge; review and comment on staff’s proposed outreach plan; direct staff to return with a revised WSRP for adoption incorporating Council

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October 28, 2014 Council Agenda - City of Santa Monica

directives; and review and comment on proposed changes to the Municipal Code and direct staff to return with related ordinances.   STAFF REPORT   8-C:     Sustainable Water Master Plan Status Update, Presentation of Rate Analyses, and Discussion of Proposed Rate Options – recommendation that the City Council: review and comment on the proposed rates studies and recommendation; direct staff to proceed with rate structure Option 3 which provides full funding for proposed capital and conservation programs in support of the Sustainable Water Master Plan; direct staff to outreach to the community and proceed with steps necessary for rate consideration and adoption; and adopt the Sustainable Water Master Plan pursuant to the categorical exemption at CEQA Guideline section 15307 and 15308.   STAFF REPORT   SPECIAL JOINT MEETING OF THE CITY COUNCIL, THE REDEVELOPMENT SUCCESSOR AGENCY, AND THE HOUSING AUTHORITY:   ROLL CALL   8-D:     FY 2013-14 Year-End Budget Changes; FY 2014-15 Budget, Position and Compensation Changes; and Rate Changes for the Rental of the Santa Monica Pier Carousel – recommendation that City Council, Housing Authority, and Successor Agency to the Santa Monica Redevelopment Agency approve changes to the Fiscal Year 2013-14 Revised Budget as detailed in Attachment A1 to the item, and approve changes to the Fiscal Year 2014-15 Adopted Budget as detailed in Attachment A2; and that City Council review the City’s year-end financial status, adopt a Resolution establishing classification and salary rates for various positions detailed in Attachment B to the item; approve the position and classification changes detailed in Attachment C to the item; and adopt a resolution of the City of Santa Monica revising the rate schedule for the rental of the Santa Monica Pier Carousel detailed in Attachment D to the item.   STAFF REPORT   ADJOURNMENT OF JOINT MEETING   13.  COUNCILMEMBER DISCUSSION ITEMS:   13-A:   Appointment to two unscheduled vacancies on the Arts Commission for terms ending on June 30, 2016. 13-B:   Annual Appointment for one seat to the Convention and Visitors Bureau for a term ending June 30, 2018.  (Continued from October 14, 2014)   13-C:  Request of Councilmember McKeown that Council direct staff either to relocate events

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October 28, 2014 Council Agenda - City of Santa Monica

scheduled for beach lots near residences to other locations where they will be less disruptive, effective immediately, or take other immediate action sufficient to protect residents against unacceptable impacts; and return to Council in timely fashion with permanent revised guidelines that will limit use of our beach lots such as to eliminate unacceptable impacts on residents and protect the quietude of adjacent neighborhoods.   13-D:  Request of Councilmembers McKeown, Vazquez, and Winterer that the Council, because the current draft zoning ordinance does not yet include updates to our landmarks ordinance, and pending property sales of buildings in the San Vicente garden apartment neighborhood may indicate development pressure on these singular historic and community resources, direct staff to immediately evaluate and return with options for better protecting historic resources in the potential preservation district of courtyard garden apartments between Ocean Avenue and 7th Street along San Vicente Boulevard.   13-E:   Request of Mayor O'Connor and Councilmember Davis that the Landmarks Commission review criteria for historic districts and make recommendations regarding options for districts including recommendations regarding thresholds of owner approvals, if any, for historic districts.   13-F:   Request of Councilmembers Davis and Winterer that the City Council allocate $5000 in discretionary funds to sponsor the Westside Ballet of Santa Monica (a 501(c)3 nonprofit) and its collaboration with the Santa Monica-Malibu School District, Santa Monica College and the Santa Monica Community Orchestra to produce The Nutcracker at the Broad Stage and to provide free admission to SMMUSD classes. This program will enhance the SMMUSD arts curriculum by providing the opportunity to see a full-length ballet with a live orchestra and students will have the chance to interact with both dancers and musicians.   13-G:  Request of Mayor Pro Tem O’Day that the city take the LA Waterkeeper "Dirty Car Pledge" to not wash its cars for 60 days to help raise awareness about water conservation.  This would apply to city-operated vehicles.  Staff would return to council with an information item updating the city about number of vehicles and public promotion and announcements.   14.  PUBLIC INPUT:  (Public comment is permitted only on items not on the agenda that are within the subject matter jurisdiction of the City.  State law prohibits the City Council from taking any action on items not listed on the agenda, including issues raised under this agenda item.)   ADJOURNMENT.   Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available at the City Clerk's Counter located at City Hall, 1685 Main Street, Santa Monica, and at the City’s public libraries during normal business hours.  Documents are also available at http://www.smgov.net/departments/clerk/agendas.aspx.   For a free subscription to City Council Agendas sign up at http://www01.smgov.net/win or call the City Clerk’s Office at (310) 458-8211.   Any member of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA  90401.  Comments may also be e-mailed to:  [email protected]   Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con file:///S|/2014/20141028/a20141028.htm[10/24/2014 3:47:00 PM]

October 28, 2014 Council Agenda - City of Santa Monica

Esterlina Lugo.   City Hall and the Council Chamber is wheelchair accessible.  If you require any special disability related accommodations (i.e. sign language interpreting, access to an amplified sound system, etc.), please contact the City Clerk’s Office at (310) 458-8211 or TDD: (310) 917-6626 at least 3 days prior to the scheduled meeting.  This agenda is available in alternate format upon request by calling the City Clerk’s Office.   Parking is available in front of City Hall and on Olympic Drive and in the Civic Center Parking Structure (validation free).

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Item 3-A 10/28/14 (NOT APPROVED) CITY OF SANTA MONICA CITY COUNCIL MINUTES OCTOBER 14, 2014 A regular meeting of the Santa Monica City Council was called to order by Mayor O’Connor at 5:36 p.m., on Tuesday, October 14, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Mayor Pam O’Connor Mayor Pro Tem Terry O’Day Councilmember Gleam Davis Councilmember Robert T. Holbrook Councilmember Kevin McKeown Councilmember Tony Vazquez Councilmember Ted Winterer

Also Present:

City Manager Rod Gould City Attorney Marsha Jones Moutrie City Clerk Sarah P. Gorman

CONVENE/PLEDGE

On order of the Mayor, the City Council convened at 5:36 p.m., with all members present. Councilmember Holbrook led the assemblage in the Pledge of Allegiance.

CLOSED SESSIONS

Member of the public Denise Barton commented closed sessions. On order of the Mayor, the City Council recessed at 5:41p.m., to consider closed sessions and returned at 7:16 p.m., with all members present, to report the following: 1-A:

Public Employee Evaluation: Title of Employee: City Clerk

The City Attorney advised this matter was not heard. 1-B: Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9(d)(1): Riel v. City of Santa Monica, United States District Court, Central District, Western Division Case Number 2:14CV-04692 The City Attorney advised this matter was heard with no reportable action taken.

1-C: Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1): Redden et al. v. City of Santa Monica, Los Angeles Superior Court Case Number BC 545 191 The City Attorney advised this matter was heard with no reportable action taken. 1-D: Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1): Devermont v. City of Santa Monica, et al., United States District Court Case No. CV 12-6772 DDP (MRWx) The City Attorney advised this matter was heard with no reportable action taken. 1-E: Conference with Legal Counsel – Anticipated Litigation Anticipate significant exposure to litigation pursuant to Government Code Section 54956.9 (d)(2) – 1 case: 713 Ashland Avenue The City Attorney advised this item is a matter arising from affordable housing fees not paid by an owner/occupant of a rebuilt single family house. The City Attorney recommended settlement in the amount of approximately $24,000 in affordable housing fees, including $14,000 owed in 2003 plus five percent annual compounded interest, and will pay appropriate building permit renewal and inspection fees, and will pay business license fees. In return, the City will waive the requirement that the owner/occupant reapply for now-expired planning approvals, and will allow the 2003 building code standards to apply, and will forgo balance on affordable housing fees. Motion by Councilmember McKeown, seconded by Councilmember Davis, to approve Settlement No. 9977 (CCS), as recommended by the City Attorney. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None 1-F: Conference with Legal Counsel – Potential Litigation Consideration of whether to initiate litigation pursuant to Government Code Section 54956.9 (d)(4) – 1 case The City Attorney advised that this item is a matter arising from the builder of Downtown market rate housing not providing 15 two bedroom units 2

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offsite affordable to very low income households. The City Attorney recommended settlement with Prudential in the amount of $5,250,000, which is $350,000 per unit. Motion by Councilmember Vazquez, seconded by Councilmember Winterer, to approve Settlement No. 9978 (CCS), as recommended by the City Attorney. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Winterer, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None 1-G:

Conference with Labor Negotiator. City Negotiator: Donna Peter, Director of Human Resources Bargaining Units: Municipal Employees Association (MEA) California Teamsters Local 911 (Teamsters) United Transportation Union (UTU) Coalition of Santa Monica City Employees

The City Attorney advised this matter was heard with no reportable action taken. 1-H: Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to the Government Code Section 54956.9(d)(1): Craig R. Miller et al. v. City of Santa Monica, Los Angeles Superior Court Case No. BC 492 621 The City Attorney advised this matter was heard with no reportable action taken. 1-I: Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Government Code Section 54956.9 (d)(1): New Cingular v. City of Alameda, et al., Los Angeles Superior Court Case Number BC 462 270 The City Attorney advised this matter was heard with no reportable action taken. CONSENT CALENDAR:

All items were considered and approved in one motion unless removed by a Councilmember for discussion. Member of the public Denise Barton commented on various Consent Calendar items. Motion by Councilmember Winterer, seconded by Mayor Pro Tem O’Day, to approve the Consent Calendar items 3-A through 3-F, reading 3

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resolutions by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None MINUTES

3-A: The minutes of September 23, 2014 City Council meeting, were approved.

CHARNOCK WELL FIELD

3-B: Operations, Maintenance, and Management Services (OMMS) for the Charnock Well Field – recommendation to authorize the City Manager to negotiate and execute contractual services Agreement No. 9973 (CCS) with Evoqua Water Technologies, LLC, in the amount of $278,024 to provide operations, maintenance, and management services for the Charnock Well Field for one year, with two additional one-year renewal options for $278,024 per year for a total amount not to exceed $834,072 over a three-year period, with funding contingent upon Council budget approval, was approved.

RESOURCE RECOVERY & RECYCLING RATE STUDY

3-C: Professional Service Agreement for Phase II of the Resource Recovery & Recycling (RRR) Rate Study – recommendation to authorize the City Manager to negotiate and execute professional service Agreement No. 9974 (CCS) with HF&H Consultants, LLC, in an amount not to exceed $50,000 to conduct Phase II of the RRR rate study, with the cumulative amount for phases I and II not exceeding $115,000, was approved.

SOFTWARE LICENSES

3-D: Purchase of Microsoft Software Licenses – recommendation to authorize the City Manager to negotiate and execute Professional Services Agreement No. 9975 (CCS) with Insight Public Sector, for the purchase of Microsoft software licenses, software license upgrades, and license tracking services in an amount not to exceed $402,450 for one year, with four additional one year renewal option(s) in the amount of $1,609,800 on the same terms and conditions for a total amount not to exceed $2,012,250 over a five year period with future year funding contingent on Council budget approval, was approved.

PUBLIC SAFETY SOFTWARE

3-E: Public Safety Software Maintenance and Support Agreement Modification – recommendation to authorize the City Manager to negotiate and execute a first modification to the Software Maintenance and Support Agreement #9087-CCS, in the amount of $693,390 with Public Safety Systems, Inc., to provide software maintenance and support for the public safety dispatch, records management and mobile data systems, resulting in a 10 year amended Software Maintenance and Support Agreement with a new total amount not to exceed $1,217,945, with future year funding contingent on Council budget approval, was approved.

MOBILE COMMAND

3-F:

Purchase of a Mobile Command Center for the Police 4

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CENTER

Department – recommendation to authorize the City Manager to negotiate and execute contractual service Agreement No. 9976 (CCS) with LDV, Inc., for the purchase of a Mobile Command Center in an amount not to exceed $657,509, was approved.

ORDINANCES: AFFORDABLE HOUSING

7-A: Second reading and adoption of Ordinance No. 2468 (CCS) entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.56.050 TO ESTABLISH MINIMUM OCCUPANCY STANDARDS FOR AFFORDABLE HOUSING UNITS,”was presented. Motion by Councilmember McKeown, seconded by Councilmember Winterer, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None ELECTRONIC SMOKING DEVICES

7-B: Second reading and adoption of Ordinance No. 2469 (CCS) entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING CHAPTERS 4.44 AND 4.45 OF THE SANTA MONICA MUNICIPAL CODE ON SMOKING TO REGULATE ELECTRONIC SMOKING DEVICES SIMILARLY TO TOBACCO PRODUCTS”, was presented. Motion by Councilmember Davis, seconded by Councilmember Winterer, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None

AFFORDABLE HOUSING FEE

7-C: Second reading and adoption of Ordinance No. 2470 (CCS) entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 9.74 TO THE SANTA MONICA MUNICIPAL CODE ESTABLISHING THE AFFORDABLE HOUSING COMMERCIAL LINKAGE FEE PROGRAM, THE AFFORDABLE HOUSING COMMERCIAL LINKAGE FEE, AND ESTABLISHING AN ADJUSTMENT AND WAIVER PROVISION”, was presented. Motion by Councilmember Davis, seconded by Councilmember Winterer, to adopt the ordinance, reading by title only and waiving further reading 5

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thereof. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, Mayor Pro Tem O’Day, Mayor O’Connor NOES: Councilmember McKeown ABSENT: None

Councilmember McKeown stated that he voted no on this item because that while he is a very strong advocate of affordable housing, the no vote reflects the conviction that this fee is being set too low and letting those who wish to develop commercial buildings in Santa Monica pay less than their fair share, underfunding the residents’ needs for affordable housing, because the fee was set too low. PARKS AND RECREATION FEE

7-D: Second reading and adoption of Ordinance No. 2471 (CCS) entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 9.75 TO THE SANTA MONICA MUNICIPAL CODE ESTABLISHING THE PARKS AND RECREATION DEVELOPMENT IMPACT FEE PROGRAM, THE PARKS AND RECREATION DEVELOPMENT IMPACT FEES, AND ESTABLISHING AN ADJUSTMENT AND WAIVER PROVISION”, was presented. Motion by Councilmember Davis, seconded by Councilmember McKeown, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None HOUSING DISCRIMINATION

7-E: Introduction and First Reading of an Ordinance Adding Disability to the List of Classes Protected Against Housing Discrimination by Local Law, was presented. Members of the public Jerry Rubin and Neal Richman spoke generally in favor of the recommended action. Members of the public Denise Barton spoke generally in opposition to the recommended action. Motion by Councilmember McKeown, seconded by Councilmember Winterer, to introduce and hold first reading of the ordinance reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor 6

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NOES: None ABSENT: None EMERGENCY ROOM WAITING AREAS

7-F: Introduction and First Reading of an Ordinance Restricting Presence in Hospital Emergency Room Waiting Areas, was presented. No members of the public spoke on this item. Motion by Councilmember Davis, seconded by Councilmember Holbrook, to introduce and hold first reading of the ordinance reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None PUBLIC PARKING SPACES

7-G: Introduction and First Reading of an Ordinance adding Section 4.08.810 to the Santa Monica Municipal Code Prohibiting Selling, Leasing or Reserving for Compensation Public Spaces in the City, was presented. Member of the public Jerry Rubin, spoke generally in favor of the recommended action. Motion by Councilmember Winterer, seconded by Councilmember Davis, to introduce and hold first reading of the ordinance reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None STAFF ADMINISTRATIVE ITEMS: 500 BROADWAY

8-A: Float-up discussion of Concept Plans for a proposed Development Agreement at 500 Broadway – recommendation to review the applicant’s Development Agreement proposal for a 7-story, 330,344 square foot mixed-use development project consisting of approximately 39,600 square feet of ground floor commercial area, 262 residential units, and 577 parking spaces within a four-level subterranean parking garage and provide direction regarding the appropriateness of the site development and potential community benefits; and direct staff to initiate the Development Agreement negotiation and review process between the City and DK Broadway, LLC, was presented. Members of the public Jason Kerwin, Mohamed Sharif, Natalya Zernitskaya, Frank Gruber, Brian Derro, Michael Rolonis, Michael 7

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Mastroianni, Jason Bohle, Carl Hansen, Michael Anthony Naddour, Jerry Rubin, Maegan Pearson, Kathleen Rawson, Lou Moench, Susan McCarty, Neal Richman, Ryan Holman, Carol Lemlein, Albin Gielicz, Judy Abdo, Juan Matute, George Minardos, and Zoe Muntaner spoke generally in favor of the recommended action. Considerable discussion ensued on topics including, but not limited to, an affordable grocery store, open space, parking, curb cuts, local hiring, affordable housing, availability of late hours for market, importance of a grocery store, importance of the affordable housing meeting the needs of the seniors and the disabled, market rate priority for first responders, project floor area density, arts component, on site vs off site affordable housing, traffic circulation and one way streets, parking unbundling, bike showers, traffic electric circulators, and Downtown Specific Plan compliance. Motion by Mayor Pro Tem O’Day, seconded by Councilmember Vazquez, to adopt the staff recommendation. The motion was approved by the following vote: AYES: NOES: ABSENT: COUNCILMEMBER DISCUSSION ITEMS: SOCIAL SERVICES COMMISSION

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor None None

13-A: Appointment to one unscheduled vacancy on the Social Services Commission for a term ending on June 30, 2016, was presented. No members of the public spoke on the item. On order of the Mayor, the floor was opened for nominations. Councilmember McKeown nominated Sabrina Fields. Ms. Fields was appointed by acclamation with a unanimous voice vote, with all members present.

ANNUAL APPOINTMENTS

13-B: Annual Commissions:

Appointments

Boards/Commission

to

the

following

No. Appts. Architectural Review Board 2 Arts Commission 2 Commission for the Senior 3 Community Convention and Visitors Bureau 3 Disabilities Commission 3 Downtown Santa Monica, Inc. 3 Landmarks Commission 3 8

Boards

and

of Term Ending 6/30/2018 6/30/2018 6/30/2018 6/30/2018 6/30/2018 6/30/2018 6/30/2018 October 14, 2014

Library Board Planning Commission Recreation & Parks Commission Social Services Commission

2 1 2 2

6/30/2018 6/30/2018 6/30/2018 6/30/2018

No members of the public spoke on the item. On order of the Mayor, the floor was opened for 2 appointments to the Architectural Review Board. Councilmember McKeown nominated Margaret Griffin. Ms. Griffin was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember McKeown nominated Maegan Pearson. Ms. Pearson was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 2 appointments to the Arts Commission. Councilmember Winterer nominated Linda Jassim. Ms. Jassim was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember McKeown nominated Frederick Fiddmont. Mr. Fiddmont was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 3 appointments to the Commission for the Senior Community. Councilmember Winterer nominated Paula Fern. Ms. Fern was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember Winterer nominated Elizabeth Wilson. Ms. Wilson was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember Winterer nominated Kathryn Keitzman. Ms. Keitzman was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 3 appointments to the Convention and Visitors Bureau. Councilmember Winterer nominated Raphael Lunetta. Mr. Lunetta was appointed by acclamation with a unanimous voice vote, with all members present. 9

October 14, 2014

Councilmember McKeown nominated Rosemary Regalbuto. Ms. Regalbuto was appointed by acclamation with a unanimous voice vote, with all members present. One appointment was not made. On order of the Mayor, the floor was opened for 3 appointments to the Disabilities Commission. Councilmember Winterer nominated Thomas Hill. Mr. Hill was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember McKeown nominated Marielle Kriesel for the position with the self-identified disability. Ms. Kriesel was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember McKeown nominated Neil McLean. Mr. McLean was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 3 appointments to the Downtown Santa Monica, Inc. Councilmember Davis nominated Rob Rader. Mr. Rader was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember Davis nominated Johannes Van Tilburg. Mr. Van Tilburg was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember Davis nominated Juan Matute. Councilmember McKeown nominated West Hooker. Mr. Matute was appointed by the following vote: Matute: Councilmembers Vazquez, Davis, Winterer, Mayor Pro Tem O’Day, Mayor O’Connor Hooker: Councilmembers Holbrook, McKeown Councilmember McKeown changed his vote to Juan Matute. On order of the Mayor, the floor was opened for 3 appointments to the Landmarks Commission. Councilmember McKeown nominated Margaret Bach to be reappointed, but in the local historian position. Ms. Bach was appointed by acclamation 10

October 14, 2014

with a unanimous voice vote, with all members present. Councilmember McKeown nominated Nels Youngboro to the architectural historian position. Councilmember Winterer nominated Laura O’Neill to the position. Ms. O’Neill was appointed to the architectural historian position by the following vote: O’Neill: Councilmembers Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor Youngboro: Councilmember McKeown Mayor O’Connor nominated Nels Youngboro. Councilmember Winterer nominated Dolores Sloan. Ms. Sloan was appointed by the following vote: Sloan: Councilmembers McKeown, Holbrook, Winterer, Vazquez Youngboro: Councilmember Davis, Mayor Pro Tem O’Day, Mayor O’Connor On order of the Mayor, the floor was opened for nominations to the Library Board. Councilmember Winterer nominated Marc Morgenstern. Mr. Morgenstern was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember Winterer nominated Anne Pearson. Ms. Pearson was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for nominations to the Planning Commission. Councilmember McKeown nominated Jennifer Kennedy. Ms. Kennedy was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 2 appointments to the Recreation and Parks Commission. Councilmember Davis nominated Kurt Schwengel. Mr. Schwengel was appointed by acclamation with a unanimous voice vote, with all members present. 11

October 14, 2014

Councilmember McKeown nominated John Smith. Mr. Smith was appointed by acclamation with a unanimous voice vote, with all members present. On order of the Mayor, the floor was opened for 2 appointments to the Social Services Commission. Councilmember McKeown nominated Pedro Fuentes. Mr. Fuentes was appointed by acclamation with a unanimous voice vote, with all members present. Councilmember McKeown nominated Jacqueline Kalish. Ms. Kalish was appointed by acclamation with a unanimous voice vote, with all members present. ARTS COMMISSION

13-C: Appointment to one unscheduled vacancy on the Arts Commission for a term ending on June 30, 2015, was presented. No members of the public spoke on this item. On order of the Mayor, the floor was opened for nominations. Councilmember Winterer nominated Corin Kahn. Ms. Kahn was appointed by acclamation with a unanimous voice vote, with all members present.

COMMISSION FOR THE SENIOR COMMUNITY

13-D: Appointment to one unscheduled vacancy on the Commission for the Senior Community for a term ending on June 30, 2015, was presented. No members of the public spoke on the item. On order of the Mayor, the floor was opened for nominations. Councilmember Winterer nominated Leigh Brumberg. Ms. Brumberg was appointed by acclamation with a unanimous voice vote, with all members present.

RECREATION AND PARKS COMMISSION

13-E: Recommendation to accept Jenna Linnekens’ resignation from the Recreation and Parks Commission and authorize the City Clerk to publish the vacancy, was presented. No members of the public spoke on the item. Motion by Mayor O’Connor, to accept the resignation with regrets. The motion was approved by a unanimous voice vote, with all members present.

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October 14, 2014

DISABILITIES COMMISSION

13-F: Recommendation to accept Christopher Knauf’s resignation from the Disabilities Commission and authorize the City Clerk to publish the vacancy, was presented. No members of the public spoke on the item. Motion by Mayor O’Connor to accept the resignation with regrets. The motion was approved by a unanimous voice vote, with all members present.

BIG BLUE BUS

13-G: Request of Mayor Pro Tem O'Day and Councilmember Davis that staff agendize for a future council meeting a discussion of Big Blue Bus advertising policy and that staff include in its report for the item possible policy modifications that would allow non-profit corporations to advertise on the Big Blue Bus, was presented. Members of the public Craig Miller and Zoe Muntaner, spoke generally in favor of the recommended action. Motion by Councilmember Davis, seconded by Mayor Pro Tem O’Day, to approve the recommendation with direction to staff bring back the item at the earliest possible meeting. The motion was approved by a unanimous voice vote, with all members present.

PUBLIC INPUT:

Members of the public Denise Barton, Robert Navarro, Art Casillas, Zoe Muntaner (donated time by Joe Dean), Bobby Shriver, and Johnathan Foster commented on various local issues.

ADJOURNMENT

On order of the Mayor, the City Council meeting was adjourned at 11:25 p.m. in memory of Maynard Ostrow, John M. Bohn and John Sturges.

ATTEST:

APPROVED:

Sarah P. Gorman City Clerk

Pam O’Connor Mayor

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October 14, 2014

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-B To:

Mayor and City Council

From:

Jacqueline A. Seabrooks, Chief of Police

Subject:

Incorporation of a Non-Profit Organization

Recommended Action Staff recommends that the City Council approve the proposal to incorporate a non-profit entity to partner with the Santa Monica Animal Shelter and direct staff to establish articles of incorporation and bylaws as well as to nominate a board. Executive Summary Staff seeks authorization to establish a non-profit 501c3 entity to partner with the Santa Monica Animal Shelter. This partnership would create the ability for the Animal Shelter to solicit and receive donations on behalf of the animals while providing tax benefits to incentivize donors. Funds and services resulting from this action could be utilized for shelter programs, equipment, and comfort items for housed animals as well as sustainability for the Police Department’s Mounted Unit and K-9 programs. There would be a one-time cost of $850 associated with the creation of the non-profit partnership entity; this cost will be funded by existing funds. Background The Santa Monica Animal Shelter is operated by the Police Department. The Shelter houses lost or stray animals, animal victims of injury or abuse, confiscated stolen animals, animal evidence in criminal investigations, and occasionally City-owned Police K-9’s and Police Horses. Paid staff, supplemented by a volunteer corps, feed, clean, vaccinate, medicate, microchip, and exercise the animals as well as facilitate animal adoptions. The Animal Shelter is also responsible for the care and shelter of animals displaced during a natural or manmade disaster. The quality and quantity of services provided at the Shelter are currently limited to the funds provided by the City budget and some donated funds and services described below.

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Animal Control Officers respond to a myriad of animal related incidents involving dog licensing, use of the City’s dog parks, vicious or dangerous animals, and injured/deceased animal pick-up including ocean wildlife found on Santa Monica beaches. Animal Control Officers and Animal Care Attendants also are committed to increasing public awareness and participating in public education by giving Shelter tours and speaking at schools, libraries, parks, and at Police and City events.

Veterinary and some animal care services provided at the Shelter are the result of a team of Shelter volunteers and financial donors. Currently, when donations are received, these funds are deposited into a donation account; however, the donor receives no tax benefit. Donations represent less than one percent of available funds for the care of the animals and are applied to veterinary procedures that would otherwise be cost-prohibitive as well as animal comfort items and equipment. At present, one veterinarian donates eight hours of time one day per week. Staff anticipates that donated funds and services would increase with the tax incentives and partnership development that a non-profit entity could offer. This in turn would increase the level of services provided at the Santa Monica Animal Shelter.

Individuals and businesses seeking to donate money, goods, and services to improve the quality of life for animals regularly contact the Shelter. Currently, there is no mechanism for a potential donor to receive a tax deduction for donations; therefore the majority of these potential donors decide to give elsewhere. As a result, the Santa Monica Animal Shelter loses the opportunity to utilize donated funds, goods, and services to benefit the animals it serves. There are a number of additional services the Animal Shelter would provide if additional funds existed to support those services, including lower cost spay and neuter surgeries for adopted animals, microchips, animal adoption starter kits, and animal emergency preparedness kits equipped with individual transport kennels.

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Other cities take a variety of approaches to support their city-operated animal shelters, including contracting with SPCA’s and Humane Societies, setting up special funds, and creating non-profit organizations to work with municipalities. The City of Los Angeles operates its own Zoo facility which has a non-profit partner, the Greater Los Angeles Zoo Association, to support the Zoo’s mission, and the City of Los Angeles Animal Services Department has set up a number of special funds to enhance the quality of life for shelter animals in the city’s care.

In Santa Monica, the Animal Shelter non-profit entity would be made up of a Board whose primary role would be fundraising. The six-member Board would include five voting members as well as one non-voting Police Department representative to play an advisory role to the voting members. The Animal Shelter Administrator would serve as the liaison between the Board and Animal Shelter staff as well as the City. The Administrator’s role would be to provide input to the Board and make recommendations on how to utilize funding for the betterment of the Animal Shelter. This would be similar to the relationship between Santa Monica City’s Police Activities League (PAL) and its non-profit board.

Discussion The creation of a non-profit entity would increase donation opportunities through fundraising and development of community partnerships by the non-profit. Targeted donation areas of interest include: equipment specific to an Animal Emergency Management Response Plan (an emergency sheltering inventory similar to that for humans in the City’s Emergency Management Plan); a mobile veterinary clinic to be used at the Shelter by volunteer veterinarians for minor surgeries and veterinary procedures (spays, neuters, hernias, and disease treatment); and other items necessary for the care, comfort, and control of lost, sick, and injured shelter animals.

The creation of a non-profit organization that can proactively outreach to would-be donors of goods, funding, and services and also incentivize these donors via tax 3

benefits would bring new, much needed resources to the table and ensure the Shelter continues to provide the highest quality of care and services to all Santa Monica animals. Next Steps 1. The articles of incorporation and by-laws of the non-profit will be submitted to City Council at a later date. Staff will draft these in collaboration with the City Attorney’s office. Part of putting together the bylaws will be setting forth the board makeup and qualifications for board members; therefore, these governing documents will need to be in place prior to setting up the board. 2. Appointment of initial board members will be brought to Council at a later date. Prospective board members will be notified of the opportunity to become board members via the City’s standard process of publicly posting vacancies for positions so that all interested parties may apply. The Animal Shelter Administrator, Police Department Command Staff and the Chief of Police shall nominate the initial board. Prospective members will be asked to complete a letter of interest and resume, to assist in giving the Council and staff an understanding of their qualifications and suitability for board membership.

Financial Impacts & Budget Actions Implementing this recommendation will result in a one-time cost in the amount of $850.00 to apply for a Federal Tax Exemption status with the IRS via a form 1023. Funds are available in FY 2014-15 budget in division 01306. The amount will be charged to account 01306.544390.

Prepared by: Nicole Dibling-Moore, Senior Administrative Analyst Approved:

Forwarded to Council:

Jacqueline A. Seabrooks Chief of Police

Rod Gould City Manager

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City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-C

To:

Mayor and City Council

From:

Edward F. King, Director of Transit Services

Subject:

Short Range Transit Plan, Applications for Funds

Recommended Action Staff recommends the City Council: 1) Authorize the City Manager to file the Fiscal Year 2015-2017 Short Range Transit Plan (SRTP) with the Los Angeles County Metropolitan Transportation Authority (Metro). 2) Adopt the attached resolution authorizing the City Manager to: • Apply for and to execute grant agreements and to execute related Certifications and Assurances with the Federal Transit Administration (FTA), Metro, or other federal, regional or local agencies. • Enter into agreements for transit funds for the pass-through of funds and agreements for planning, programming and implementing transit services and capital projects during FY 2015 through FY 2017. Executive Summary Council authorization is requested to file the FY 2015-2017 Short Range Transit Plan (SRTP) with Metro. For the past 30 years, filing of this report has been required by Metro, the Regional Planning Authority, and allows Santa Monica’s Big Blue Bus (BBB) to continue its eligibility as a recipient of federal and state transit funds. The SRTP is a planning document that summarizes recent accomplishments and provides a three-year action plan for service and capital improvements and the corresponding estimated values for planning purposes. Council action is also requested to approve and provide the necessary authorization to file grant applications, execute grant agreements and to enter into agreements associated with the funding, planning, programming and implementation of transit services and capital projects.

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Discussion Short Range Transit Plan Big Blue Bus is required by the Transportation Development Act (TDA) of 1971 to file an SRTP to remain eligible for federal, state and regional transit funding. The SRTP is a planning document that evaluates accomplishments over the past year and provides a three-year action plan for capital improvements, including fleet replacement, facility improvements, equipment modernization and other infrastructure needs. The SRTP also serves as a tool to assist staff to plan for service improvements and establish route performance standards, service planning guidelines, as well as to evaluate the system and monitor route performance. The document identifies the projected operating revenue and expenses required to accomplish the plan.

Furthermore, the document provides a high level overview of staff’s efforts during the last 18 months on the proposed plan to integrate BBB service with Expo Light Rail in 2016 with an emphasis on first-last mile connectivity to the 7 new rail stations in the BBB service area, improving accessibility to BBB service on the City’s north-south corridors where service is currently non-existent, and overall system enhancements. The Expo Service Integration Plan provides detailed recommendations and budget implications for BBB’s plan to restructure the entire system next year. Staff will provide details of this plan at a December 2014 Study Session with Council and corresponding adjustments to BBB’s operating budget will be included in our next biennial request.

The proposed SRTP financial forecast is based on a combination of the share of Metro county-wide formula-based allocation of transit funds and BBB’s projected operational needs. For FY 2014-2015, the estimated formula allocation of operating funds (TDA, State Transportation Agency (STA), Prop A 40%, Measure R 20%, Prop C-Security, Foothill Mitigation and BSIP) is $44.3 million, and non-formula allocation (Proposition A and Measure R Local Return) is $1.4 million. Local operating revenues (passenger fares, advertising, interest, lease, and special transit services revenues) are estimated at $19.0 million. 2

Resolution The report requests that Council authorize the City Manager to file grant applications as transit-related funding opportunities become available. If funds are approved, the City Manager would have the authority to execute grant agreements to accept federal, state, regional and local transit or transit-related funds, as approved or programmed. Authority would also be given to the City Manager to execute and file certifications and assurances as they relate to grant programs, compliance and project implementation. These authorities would allow the City to expedite its annual grant applications and participate in unanticipated one-time grant opportunities. Potential funding agencies include, but are not limited to, the Federal Transit Administration (FTA) and other federal agencies, Metro, the South Air Quality Management District (SCAQMD), State Department of Homeland Security, and California Department of Transportation (Caltrans) and other state and regional agencies.

Staff is also requesting that the City Manager be authorized to enter into agreements including but not limited to, Memorandums of Understanding (MOUs), Letters of Agreement (LOAs), Cooperative Procurement Agreements, sub-grantee agreements for transit funds and for the pass-through of funds. Agreements may include, but are not limited to, agreements by and between the City of Santa Monica and Metro, SCAQMD, FTA, the Southern California Association of Governments (SCAG), the University of California, Los Angeles (UCLA), the Santa Monica College (SMC), Playa Vista, non-profits, and other federal, state, local and regional entities for the purposes of planning, programming funds and implementing transit services and capital projects for the residents of the City of Santa Monica and greater Los Angeles area.

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Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. The SRTP is a working document with estimated values for planning purposes. Provision for the proposed capital improvements and recommended service changes will be made each budget year with available allocations of transit revenues. The FY 2014-2015 improvements are fully funded in the City budget with local operating and transit subsidy funds.

Prepared by: Enny Chung Graham, Senior Administrative Analyst

Approved:

Forwarded to Council:

Edward F. King Director of Transit Services

Rod Gould City Manager

Attachments: Short Range Transit Plan Resolution

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SRTP Cover Page

TABLE OF CONTENTS Introduction Background SYSTEM UPDATE Service Area Route Information Significant Improvements Ongoing Capital Improvements Communication Improvements via Technology Policy Improvements Service Planning Preliminary Alternatives for High Capacity Short Distance Transit Connections with Expo Light Rail Recent Service Improvements Reducing Passenger Travel Time On-Time Performance Improvements Transit Demand Partnerships Planned Improvements Capital Improvements Service Changes Service Improvements

SECTION I 1 1 1-4 1-3 3 3-4 4-8 4-6 6-7 7 7-8 8 8-10 8-9 9 9-10

Proposition 1B

10

Safety & Security

10

Americans with Disabilities Act (ADA)

11

Limited English Proficiency (LEP)

11

Ongoing Initiatives

11-17

Regional Coordination

11

BBB Digital Communications

12

Community Outreach

12-13

Customer Information

13-14

Passenger Travel Time

14

Passenger Travel Experience

14

Efficiently Track Resources

14

Bus Stop Program Real-Time Transit Information Transit Information Redesign (Target & Eyelevels)

14-16 16 16-17

Implementation of Universal Fare System

17

Government Advocacy

17

Motor Coach Operators Identification

17

FINANCIAL AND OPERATIONAL TABLES Table L - 1

Current Fare Structure

Table L - 2

Fleet Inventory

Table L - 3

Historical and Projected Fleet Characteristics

Table L - 4

Historical and Projected Financial Status

Table L - 5

Performance Measurement Program Reporting Forms

Table L - 6

Performance Audit Follow - Up

Table L - 7

Summary of Capital Projects

Table L - 8

Transportation Improvement Plan Project List

EXHIBITS

SECTION II

SECTION III

Exhibit A

Route Schedules

Exhibit B

Draft Expo Integration Study Plan

INTRODUCTION The Short Range Transit Plan update is prepared in accordance with the Los Angeles County Metropolitan Transportation Authority (Metro) and Federal Transit Administration (FTA) planning requirements. BACKGROUND Big Blue Bus (BBB) is a line department of the City of Santa Monica and is governed by the City’s seven-member City Council. The City of Santa Monica has historically taken an aggressive approach to providing Santa Monica and West Los Angeles area residents with public transit services. In 1928, the Santa Monica City Council initiated bus service under powers granted by Article 11, Section 9 of the Constitution of the State of California 1. The first Santa Monica bus service provided a transit link between the rapidly growing West Los Angeles-Santa Monica area and Central Los Angeles with a 12-mile bus line linking the Santa Monica Civic Center and beach area with the Pico-Rimpau terminal of the Los Angeles Railway, via Pico Blvd. The depression years and World War II prompted expansion of bus services with new routes and additional services. In 1951, the City Council purchased the Bay Cities Transit Company, a private transit company that had provided local transit services in the West Los Angeles-Santa Monica Bay Area. Originally, the City of Santa Monica transit service was called the “Santa Monica Municipal Bus Lines,” but customers usually referred to their transit service as “the Big Blue Bus,” and in 1997 the City of Santa Monica formally changed the name of the bus service to Santa Monica’s “Big Blue Bus.” Bus service continues to be operated under the City’s governance and is popularly known as the Big Blue Bus.

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"A municipal corporation may establish, purchase and operate public works to furnish its inhabitants with light, water, power, heat, transportation, or means of communication. It may furnish these services outside its boundaries except within another municipal corporation which furnishes the same service and does not consent."

SECTION I SYSTEM UPDATE

SERVICE AREA Big Blue Bus (BBB) is the primary local fixed-route transit operator serving the City of Santa Monica and adjacent Westside communities including: Pacific Palisades, West Los Angeles, Brentwood, Westwood, University of California Los Angeles (UCLA), Cheviot Hills, south Robertson, Mid-City, Westchester, Marina del Rey, Venice, and Playa Vista. BBB provides regional connections to the Los Angeles International Airport, the Metro Blue, Red, Purple, Gold, Green and Expo Line rail stations, Union Station, Metrolink, and Amtrak inter-city rail services. Since its inception, BBB has followed a policy of continuous service modifications to keep pace with changing travel patterns in the service area, which now comprises approximately 51 square miles, well in excess of the 8.6 square-mile area of the City of Santa Monica. ROUTE INFORMATION There are 20 Big Blue Bus fixed routes transporting passengers throughout the Westside and metropolitan Los Angeles County. They are categorized as follows: • Traditional local transit service with designated pickup and drop off at stops spaced approximately every 0.2 miles on a specified route, typically on avenues and major boulevards. • Limited stop service – Rapid 3 along Lincoln Blvd., connecting Santa Monica with Los Angeles International Airport and the Metro Rail Green Line; Rapid 7 on Pico Blvd.; Rapid 10, connecting Santa Monica to downtown Los Angeles; and Rapid 12, terminating at UCLA. See Exhibit A for routes and current schedules. SIGNIFICANT IMPROVEMENTS Ongoing Capital Improvements BBB will continue to replace buses in accordance with the fleet management plan and as funds become fully available. A contract was awarded in June 2014 to purchase up to 11 natural gas 40-foot buses with Gillig, LLC. Buses have been and continue to be delivered on schedule. BBB anticipates ordering seven 60-foot articulated buses with New Flyer Industries in early November 2014. The BBB fleet now operates fully on gas alternative fuel: liquefied natural gas (LNG), compressed natural gas (CNG), and electric/gas hybrid technology. Implementation of the Bus Stop Improvement Program is a multi-phased project that has included updating the Big Blue Bus brand, designing a new form of eyelevel for bus stops, and designing and installing bus shelters and amenities. A contract for 1

fabrication and installation of the shelters and amenities was awarded on June 25, 2013 to West Valley Investment Group, Inc. The program will include street furniture, trash cans, real-time transit information at up to 35 locations, and other customer amenities. System-wide implementation of improved bus stops and customer information at the nearly 1,000 bus stops both inside and outside the City of Santa Monica is anticipated over the next two years. Big Blue Bus expects to improve approximately two-thirds of its stops within the City of Santa Monica during Phase 1. At the start of construction, BBB reduced the scope of Phase 1 and focused solely on improving stops that it expected to continue serving even after restructuring its service to align with the Expo Line. The total number of stops to be built in Phase 1 will be solidified in February 2015, when BBB expects the Santa Monica City Council to finalize the service changes it proposes. As of this writing, BBB is confident it will build 143 of the following types of stops: • 1 Very High Stop • 44 High Volume Stops • 35 Medium Volume Stops • 63 Low Volume Stops BBB will make a determination on an additional 61 stops within Santa Monica after February 2015. Construction of the first six stops began Monday, March 31. With the ongoing installation of the new bus stops, BBB has heard from customers and constituents concerns about seating capacity, shade, rider and driver line of site visibility, and functionality for elderly riders and riders with physical challenges. BBB researched and vetted these concerns and true to the iterative community engagement process, BBB is modifying the design of the new bus stops to address these concerns. Bus stop design modifications will include additional seating, and additional or expanded canopies at low volume stops, features allowing greater ease of use for riders requiring support to lift themselves up from a seated position, and repositioning the seating such that the sightline for riders and drivers alike are not obstructed. Where feasible, BBB will convert “low volume” stops currently designed to host two seats and a single canopy to “medium volume” stops, adding seating as well as canopies. In addition, BBB is investigating modifying the existing seat design to improve the seating comfort and support, potentially through wider seats and higher backs. Big Blue Bus is committed to joining the regional Transit Access Pass (TAP) program, in conjunction with the launch of BBB’s own new automated fare collection system. The TAP program allows seamless fare payment for passengers to ride multiple transit systems with a single fare medium utilizing smart card technology. Issuing unique

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electronic passes will provide enhanced convenience and security to passengers and allow for more accurate reporting of travel patterns in the region. Communication Improvements via Technology In an effort to improve and expand customer information access and dissemination, BBB launched the following initiatives: • Open publishing of General Transit Feed Specification (GTFS) data in October 2013, allowing for scheduled timetable information to be available to third party app developers. • Use of Quick Response (QR) codes on marketing collateral such as bus stop schedules, bus exterior ads, and brochures initiated in 2013. • Opening and publishing real-time bus information through the General Transit Feed Specification-Real Time (GTFS-RT) format, providing trip updates, service alerts and vehicle positioning information in a standardized format. BBB anticipates completing this initiative mid-2015. • Deployment of real-time bus information via a mobile website, hosted by a software vendor named NextBus, that will provide customers with trip planning data optimized for the fastest loading and clearest display via Internet-enabled mobile phones. BBB anticipates completing this initiative mid-2015. Policy Improvements The Santa Monica City Council adopted BBB’s first ever Service, Design, Performance and Evaluation Guidelines in September 2013. The service design standards delineate how Big Blue Bus service should be designed and operated, for existing as well as new services. The service performance standards describe how BBB analyzes its routes to ensure the highest possible levels of performance in terms of service effectiveness, efficiency and quality for customers. The service evaluation process displays BBB’s strategy for analyzing, updating and communicating its service plans to ensure it provides service that stays relevant to the needs of the City and its residents, employees and visitors. The service design guidelines include the definition of route categories and factors to be taken into account when designing routes, such as directness, use of arterial streets, and moving to a more grid-based system with Expo Light Rail line providing a frequent east-west trunk service. The guidelines also set standards on route spacing based on density, connectivity and existence of parallel or duplicative services. The service design guidelines further specify the span, service frequency and minimum stop spacing based on route types, the span of service for route types, the type of bus equipment to be assigned, and the level of bus stop amenities. The service evaluation standards include a Composite Index of Measures (Index) to use when evaluating the relative performance of services to be measured on an ongoing basis. The four Key Performance Indicator (KPI) factors used to make up the 3

Index are as follows: Passengers per Revenue Hour, Passengers per Revenue Mile, Farebox Recovery Ratio, and Cost per Passenger Boarding. Additional service quality factors to be considered when evaluating route performance include load factors and on-time performance measurements with a system wide goal of 74% on-time performance. In September of 2013, Council adopted the BBB “Service Design Performance Evaluation Guidelines” for identifying service design standards and service performance criteria to evaluate BBB service annually. All routes are measured based on the guidelines and KPI’s provided annually, as well as reviewed by staff quarterly to make service adjustments. The first KPI Performance Report was completed for Fiscal Year (FY) 2014. SERVICE PLANNING Preliminary Alternatives for High Capacity Short Distance Transit Connections with Expo Light Rail Phase II of the Metro Expo Line consists of a seven-mile rail extension from the current terminal in Culver City to 4 th St. in Santa Monica. All seven of the new stations will be in the Big Blue Bus service area. Construction began in late 2011 and completion is anticipated for early 2016. In the fall of 2013, BBB embarked on a comprehensive study of BBB integration with the eight stations on the Expo Line that will be in the BBB service area. They include the already opened Venice/Robertson station in Culver City, and the following stations, which are all slated for completion by the time the Expo Line goes into service: Palms, Westwood, Sepulveda, Bundy, Bergamot, 17th Street-Memorial Park-SMC, and Downtown Santa Monica stations. As part of this study, Big Blue Bus examined existing conditions with regard to bus service, feeder routes for all stations, bus rail interface at or near each station, key destinations, best practices review for bus/rail integration, and pending new developments. This study includes a substantial stakeholder and public participation process, a Title VI review of proposals, and a follow-up study one year after implementation. Goals of the study are the effective integration of first and last mile trips from Expo, elimination of low performing or duplicative services, integration with Expo and other intermodal connections, development of a service plan limited to an operating budget increase between 2% and 9% for all scenarios, and adjustment of the predominant east-west orientation of the Big Blue Bus system to one more balanced with the new transit needs present after the arrival of the Expo Line. Corresponding adjustments to BBB’s operating budget will be included in the next biennial budget cycle. 4

The Expo planning process included a great deal of public outreach and community input. The first round of meetings occurred in February 2013 to gain initial input from the public and key stakeholders needed to formulate the initial plan. The draft study was completed in May 2014 and was presented to the public and stakeholders in a set of meetings in July 2014. The comment period for the plan opened July 1st and closed October 12th in order to allow the greatest possible amount of public feedback. Over 4,000 comments and suggestions have been received as of this report writing through a community online survey and through the overall process and many more are expected in the final tally upon closure of the public comment period. The draft study plan completed in May 2014 is attached as an Exhibit B. Once the comments are tabulated and analyzed, the plan will be revised and presented to City Council at a workshop in December 2014. The Public Hearing on the finalized plan will be held in late February 2015 in order to allow time for implementation of the final plan to meet the expected opening of the Expo Line in early 2016. Big Blue Bus is also an active participant in a series of land use and zoning studies being conducted around various stations. Given that many of the stations along Phase II are built with little to no parking, and few, if any bus berths, much of the bus/rail integration will take place outside of the immediate area of the station footprint, and is part of a larger effort to create intermodal facilities adjacent to the stations on other parcels or on the street. In early 2013, a study of 43 candidate corridors of LA County Metropolitan Transportation Authority was conducted to further develop recommendations for an effective county-wide Bus Rapid Transit (BRT) system and to narrow the field of corridors for further study to 12 or 15. Four of the BBB corridors were examined in this analysis; Lincoln, Olympic, Pico and Westwood. Routes were evaluated based on network connectivity, existing ridership and ridership potential. When all factors were considered with equal weight, the corridors ranked as follows; Lincoln-27th, Olympic7th, Pico-6th, and Westwood-19th. While Pico and Olympic were ranked for potential further study on their merit, Westwood and Lincoln were not. Of these two corridors, Lincoln carries a much larger number of passengers, and also suffers from greater on-time performance issues. It also carries the second highest number of passengers in the BBB system behind the Pico corridor. The City of Santa Monica approved a limited BRT treatment for their portion of the Lincoln corridor, which has not been implemented in light of the fact that the Los Angeles portion of the corridor is not currently intended for BRT treatment. With the opening of Expo, the continued steady ridership increases on both the Rapid and local routes on the Lincoln corridor, and the fact that the corridor will soon connect the Green Line, Expo Line and the airport, BBB will advocate for the inclusion of the Lincoln corridor for further study along with the Pico route.

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Recent Service Improvements Route 1 – Route 1 was modified in June 2014 and completely rescheduled in August 2014 with additional service hours and operator recovery time at the end of routes to improve on-time performance and to match service with demand on Weekdays, Saturdays and Sundays. Some low productivity trips and pull-out trips were adjusted or eliminated where ridership was extremely low. Route 3, Route 3M & Rapid 3 – Route 3 was split into two (2) routes for the August 2014 service change after receiving more resources to improve on-time performance and reduce overcrowding during the year. The split occurs in Downtown Santa Monica. The new Route 3 operates from Arizona/5th to the Metro Green Line Station at Aviation and I-105 freeway. The northern portion of the former Route 3, now designated as Route 3M, operates from the 7th and Olympic Terminal to UCLA, Monday through Saturday and to Gorham and San Vicente on Sundays. Each route was rescheduled to meet passenger demand and to improve on-time performance. It is expected that both routes will have significant on-time performance improvements as a result of breaking up the former 15-mile Route 3. The Rapid 3 was rescheduled in order to operate between the local Route 3 as much as possible. Both routes had earlier trips added to meet early morning trains at the Aviation/I-105 Metro Green Line Station. Route 5 – the route terminal was changed to end the route close to the Downtown Santa Monica Expo Rail Line Station at 7th and Olympic and to provide adequate layover area for buses to stage due to the lack of curb space in downtown Santa Monica. Many bus layovers and transfers are planned to occur at this location with the opening of the Expo Rail Line. Route 7 and Rapid 7 – Five (5) stop pairs close to each other were eliminated on Route 7 and one pair eliminated on the Rapid 7 in February 2014. This change was made due to the stops being excessively close in order to speed up the service and to move towards the goal of creating an average stop spacing of 1,000 to 1,300 feet on local routes and one-half mile between stops on Rapid routes as defined in the Big Blue Bus Service Standards. Route 9 – Route 9 was interlined with Route 4 to provide better on-time performance for both routes seven days per week in June 2014. The terminal for Routes 4 and 9 was moved from Olympic Drive and Avenida Mazatlan to a new location on Main Street next to the Civic Auditorium in August 2014 at the request of the City’s Traffic Engineer to allow for improved through traffic in the peak periods along this corridor. Route 11 – discontinued in February 2014, as this route duplicates Route 1 and there is sufficient capacity on Route 1 to handle the passengers shifted from Route 11. Additionally, removing this peak-hour only service is a step toward the creation of a more grid-like system as noted in the attached Expo Integration Study Draft alternatives. 6

UCLA – the evening and weekend Ackerman bus terminal at UCLA closed in July 2013 for two years for the completion of a hotel across the street. BBB operations continue at the temporary facility located on Charles E. Young Drive in front of Parking Structure 2 for the duration of the construction. Low performing individual trips were eliminated in August 2013 on Routes 1, 2, 3, 4, 5, 7, 9, 12, 14, and Rapid 20 due to low ridership and the need to shift resources to more productive service. Reducing Passenger Travel Time On January 2, 2014, BBB eliminated its local transfer (between BBB routes). The intent was to encourage customers to use Day Passes or other pre-paid media, as well as reduce the dwell time at each bus stop. BBB is a stakeholder and active in the Lincoln Blvd Re-Visioning Study along Lincoln Blvd within the City of Santa Monica, which among other recommendations seeks to implement peak-hour bus only lanes along this productive, but highly congested corridor. BBB is one of the stakeholders in the MTA Wilshire bus lane project and is monitoring the results of this project for use in creating its own bus lanes. The City of Santa Monica maintains its own traffic management center through its Traffic Engineering Office. One of the aspects of the project is to use traffic signal prioritization for emergency services and to provide signal priority for late buses on major Santa Monica arterials. This will be an ongoing project. On-Time Performance Improvements BBB staff made a concerted effort to improve on-time performance during FY 2014. Planning staff worked with the software vendor to make sure the system is accurately recording timepoint departures and that the settings were correct in making Big Blue Bus a departure-time based system. Additionally, staff made reports to Operations highlighting those drivers leaving timepoints early and those who were chronically late so they could be counseled. BBB routes carrying the most passengers and needing the most equipment were rescheduled to improve on-time performance. These were Routes 1, 3, Rapid 3, 7, and Rapid 7. In addition, Route 3, which was the second longest route in the BBB system, was split into two (2) routes in order to improve the on-time performance of both routes as well as reflect the differing passenger loads of each segment. Historically, Route 3 had one 7

of the lowest on-time performances due to the length of the route coupled with multiple traffic bottleneck points. The changes noted above resulted in an improvement of on-time performance from 62% to 70% in FY 2014. Planning staff will continue analysis of system data to monitor operational performance and to reschedule routes where necessary. This work is expected to continue in order to meet an on-time performance goal of 85% as stated in the Service, Design, Performance and Evaluation Guidelines. A number of low-ridership trips were trimmed during FY 2014 using the data from the APC Gateway and Plan systems. Transit Demand Management Partnerships Santa Monica College (SMC) Partnership: In May 2014, BBB and SMC renewed the “Any Line Anytime” transit pass program through June 30, 2017. The new agreement increased BBB revenue 10% over the 2014 agreement. SMC now accounts for 16 percent of all BBB ridership. University of California, Los Angeles (UCLA) Partnership: BBB and UCLA renewed the unlimited travel “BruinGo!” transit pass program through December 31, 2014. UCLA riders now constitute 8 percent of all BBB ridership. PLANNED IMPROVEMENTS Fiscal Year 2014 Capital Improvements Big Blue Bus continues to be involved with the regional Transit Access Pass (TAP) program in conjunction with procurement of a replacement fare collection system. The TAP program allows seamless fare payment for passengers to ride multiple transit systems with a single fare medium utilizing smart card technology. Issuing unique electronic passes will provide enhanced convenience and security to passengers and allow for more accurate reporting of travel patterns in the region. BBB is proceeding with the procurement of a business intelligence tool that will permit the collection and reporting of data across multiple software systems. The objective of this tool is to provide comprehensive metrics on key operating performance measures. The BBB website received a new look, offering improved functionality and software upgrades in 2012. The former site was more than eight years old. The upgrades offer online transit information and the ability to purchase fare media online with a credit card. The next website enhancement, an improved web-based Trip Planner, is currently being tested for launch by the end of the calendar year includes the provision of real-time bus information.

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BBB staff is focused on determining alternatives for providing economical, efficient, dependable, frequent and direct services to and from current and new generators to the seven rail stations for the Expo Light Rail. BBB has engaged Nelson/Nygaard to assist with the planning effort which includes: • Developing an approach to providing mobility management to the 4 th Street Terminus and circulation in downtown Santa Monica; • Modifying the current fixed-route system to enhance service to all seven new rail stations; • Providing more north-south service on corridors that will serve the seven new rail stations in Expo Phase II (Palms, Westwood, Sepulveda, Bundy, Bergamot, 17th Street-Memorial Park-SMC, and Downtown Santa Monica stations); and, • Focusing on first and last mile connectivity to and from Expo to BBB. Service Changes in FY 2015 Minimal service changes are planned in FY 2015, as the Expo Rail Integration Plan is slated for implementation starting in FY 2016. BBB will continue its incremental approach to reducing overcrowding by eliminating low ridership trips and moving resources to routes that routinely experience overcrowding with added trips or increased frequency. In July 2013, BBB added the APC Gateway and PLAN modules from Trapeze, giving the agency greater ability to accurately assess running times and to improve on-time performance. BBB will continue using this data, as well as working with the software manufacturer to improve the measurement reliability and reports. Service Improvements beyond 2015 With the projected arrival of the Expo Light Rail in early 2016, service improvements for the immediate future will focus on how to best provide connectivity to the rail line, and how these new routing needs will affect the rest of the BBB system. Several new corridors were examined for their potential to assist in connectivity, and key area destinations were examined individually. Three entirely new routes and modifications to most of the remaining BBB service have been defined and are in the attached Draft Service Plan. There has been extensive preliminary work done in this area, and yet, as the project grows near, new stakeholders are emerging and making their needs clear. The comprehensive integration study and extended comment period through October 12, 2014, will help clarify which services will have the greatest potential to generate new ridership, and how the BBB system can operate those services. The plan is focused on a data-driven strategy to create new high performance corridors that connect key destinations to all seven new stations. The plan seeks to use existing operating funding to create these new corridors, which may mean difficult tradeoffs as non-productive services are trimmed or eliminated. The plan uses industry best practices to approach this inquiry, seeking a reduction in duplication and redundancy wherever possible to help free up resources.

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Proposition 1B California voters approved Proposition 1B in the November 2006 general election. Proposition 1B enacts the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 to authorize up to $19.925 billion in State general obligation bonds over the next six years. These funds include $3.6 billion statewide to the Public Transportation Modernization, Improvement and Service Enhancement Account (PTMISEA). These funds are available to transit operators over the next four years for eligible transit capital projects. Final appropriations are dependent on the State Legislature’s approval and the State’s issuance of bonds. Since 2008, BBB received over $12.4 million and it is anticipated Santa Monica’s Big Blue Bus will receive approximately $3.5 million over the next four years. Funds from PTMISEA will be used toward transit bus replacements and other bus related capital projects. BBB anticipates approximately $267,000 each year to be available for transit security capital improvements. Safety and Security is further discussed below. Safety & Security The Department of Homeland Security (DHS) has identified BBB as a Tier 1 Agency, having mid-level risk. Through DHS, BBB can seek funds for training, planning, and capital projects. Capital project funding will be sought to implement and enhance security in and around the BBB campus and its facilities as well as at major transit interface locations, such as the downtown Santa Monica transit mall and other locations where BBB connects with other transit operators. A Threat and Vulnerability Assessment (TVA) was conducted in 2011. The TVA assisted BBB in identifying areas to improve security of its assets and ensure that front-line employees are equipped to handle such incidents and emergencies. BBB continues to coordinate its security activities with the City’s police department and Los Angeles County transit operators through the Regional Transit Security Working Group. With the Proposition 1B Security Funds, BBB has upgraded the employee visitor access system with automatic vehicular gates complete with security cameras. In addition, BBB will upgrade its aging onboard video surveillance system to a new technology that will permit automating the digital video recording (DVR) download process. The new system will reduce the amount of labor hours required to retrieve video as current staff is required to visit each vehicle and retrieve data manually. Lastly, BBB will continue to provide security training for its front-line employees. AMERICANS WITH DISABILITIES ACT (ADA) Based on the FY 2011 FTA Triennial Review, BBB was in compliance with all Americans with Disabilities Act (ADA) requirements. All vehicles are ADA compliant with kneeling low floor capability, ramps, wheelchair securement locations, and appropriate signage. All vehicles have voice annunciators to assist visually challenged riders. Automated voice announcements are made at all stops; announcements can be heard inside the

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bus and by passengers waiting at stops outside the bus. All new and replacement vehicles will be ADA compliant. Big Blue Bus is a member agency of Access Services, Inc., the county-wide ADA-mandated complementary paratransit service within Los Angeles County. BBB also contracts additional paratransit services for its residents. In FY 2008, the City purchased six vehicles, with funding from Metro to support the ongoing operations of this service. The City of Santa Monica Dial-A-Ride serves both the senior and disabled community within the county. LIMITED ENGLISH PROFICIENCY Big Blue Bus is committed to ensuring that all parts of the Limited English Proficiency (LEP) Plan are implemented. As part of these efforts, BBB secured language translation services in over 200 languages and rolled out customer information in the top seven LEP languages identified in the BBB service area. Public information pieces promoting the new language service as well as general Title VI policy guidelines can be found in bus interiors. A special contact card promoting language services is available for all motor coach operators to distribute to non-English speaking customers. ONGOING INITIATIVES Big Blue Bus is committed to regional coordination working with Metro and the other municipal transit operators in delivering transit services. BBB’s activities continue to support the regional initiatives to improve passenger travel time, customer information, and efficient tracking of resources through the implementation of the following local and regional programs and projects: Regional Coordination BBB continues to participate and support the following regional programs: • Bus Rapid Transit Service • Lincoln Blvd Re-Visioning Process • Rapid Shelter Program • Metro Transit Security Working Group • Metro Bus Operations Subcommittee • Metro Technical Advisory Committee • Transit Access Pass (TAP) Committee • Coordinated Real Time Transit Information Program • Coordinated Transit Signal Priority System • Metro Wilshire BRT Lane Project

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BBB Digital Communications To improve the availability, clarity and sustainability of information provided to customers, BBB launched new styles and modes of customer communication this year. In alignment with the City’s sustainability plan, BBB has been shifting customer information to digital platforms instead of print. Big Blue Bus began opening its data formatted per the General Transit Feed Specification (GTFS) on GitHub, an open-source repository, for use by third party web and smartphone application developers. Openly publishing its GTFS data allows BBB to expand its reach via new technological avenues. The prominent use of Quick Response (QR) codes on marketing collateral such as bus stop schedules, bus exterior ads, and brochures, has also expanded BBB’s digital toolbox. Upcoming enhancements include real-time bus information and deployment of real-time bus information via a mobile website that will provide customers with trip planning data optimized for the fastest loading and clearest display via Internet-enabled mobile phones in mid-2015. Community Outreach BBB continues its community outreach efforts to engage and inform neighborhood, business, education, media and development partners in operational decisions and the planning of future initiatives. BBB developed tools including online surveys, an interactive online planning exercise, and the launch of a project specific website for the Expo Integration Study. The online surveys have generated thousands of responses from the public and captured input form non-traditional community stakeholders. BBB expanded its social media outreach over the last year via Facebook and Instagram accounts. Additionally, BBB uses Twitter as a customer service tool and to disseminate service alerts in a timely manner. BBB also uses Facebook as means to share transit related articles, provide destination suggestions, to inform fans of new initiatives and as a customer service tool. Finally, BBB uses the photo sharing application, Instagram, primarily used to promote ridership. Government and Community Relations staff continues to facilitate presentations about the Expo Planning Project and to obtain feedback on the new Expo Service Plan. When the survey closes on October 12, 2014, input will be reviewed and a revised plan will be available to the public early in 2015, prior to a City Council Public Hearing in February or March 2015. In addition to six community and stakeholder meetings in late July 2014, presentations to the following groups have been made: neighborhood associations, business improvement districts, local government Commissions (Senior and Disability Commission) and community planning meetings (Downtown Santa Monica parking and circulation committee meetings, Santa Monica Chamber of Commerce’s Board and the Government Affairs Committee, Santa Monica College Transportation Committee, UCLA Events & Transportation, Santa Monica High School, etc.). Additional meetings have also been held with a variety of transportation planning partners at local regional levels, large employers, other government agencies, and business groups. 12

In addition to Expo service planning informational presentations, staff also continues to attend community events, such as the Santa Monica Festival, Back to School Night at Santa Monica High School, and student welcome events at Santa Monica College and Loyola Marymount University. Customer Information In FY 2014, BBB began re-evaluating its role in disseminating rider information to customers, especially data about bus whereabouts in an electronic format. Instead of being a retailer of information, BBB considered becoming a wholesaler. In October 2013, as a critical first step toward becoming a wholesaler of information, BBB published its GTFS data on GitHub. This dataset included printed schedule information and bus stop information. Immediately after BBB opened up its data, third-party application developers began integrating BBB data into their existing transit planningrelated smartphone and web apps, which already included data from other transit providers in the Los Angeles area. The next step was to begin opening bus arrival information in a standard format useful to third-party app developers. In FY 2014, BBB began working on two paths simultaneously to accomplish this goal. The first path is to make this information available in the General Transit Feed Specification-Real Time (GTFS-RT) format. GTFS-RT is an extension of GTFS and is an open data format that allows transit agencies to provide trip updates, service alerts and vehicle positioning information in a standardized format, regardless of whatever software they use to manage their operations. BBB is working with its operations software vendor, Trapeze, to enter into a contract to use its GTFS-RT exporter module. This would allow BBB to automate the process of opening and publishing its live data to Google and third-party developers. These developers will then be able to integrate the data into a wide range of uses that extends beyond what BBB alone can do. The second path is to make its information available through the Open Application Programming Interface (Open API) provided by a software vendor named NextBus. Metro, the largest transit operator in Los Angeles County, is already a NextBus client, an indication that a substantial portion of BBB’s customer base expects access to realtime bus arrival information through a mobile application (either NextBus’ or a thirdparty’s) which uses their phone’s GPS signal to auto-detect their location. Making BBB data available in this format increases the usefulness of these apps and removes the immediate obligation for BBB to maintain a cutting edge proprietary mobile application. BBB is still considering launching several customer information products built by Trapeze. To date, BBB has tested and provided feedback for the launch of the following products:

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• • •

COM-Web – a web-based form that automatically loads feedback that customers submit from the BBB website into BBB’s customer relationship management system. Info-Web – a stripped-down, mobile-web responsive version of BBB’s website which contains the trip planner and allows customers to enter a bus stop number to obtain arrival predictions. Info-Web Application for iPhone and Android – similar to the InfoWeb except that it would be readily accessible through a downloaded application on a smartphone. At this time, BBB has tested the iPhone version of the product and is waiting for the vendor to provide access to the Android version.

To support the move to digital communications for riders who might not always have access to the internet, BBB will also be launching a new 24/7 Voice Activated Customer Phone Service early 2015. Passenger Travel Time The AFMS system has been instrumental in improving customer access to transit and service information. Implementation of the following activities will further improve passenger travel time: • Implementation of TAP mobile validators. • Installation of signal priority systems in the City of Santa Monica and on-going updates of schedules for the MTA-funded signal priority systems on major routes in the City of Los Angeles. Passenger Travel Experience The Government & Community Relations Division of BBB is developing a highly visible and branded bus shelter and bus stop information system so customers can easily identify the system, the bus route and information about the service. The following projects are the major components of BBB’s efforts to improve the passenger travel experience: • Bus Stop & Shelter (Rapid & Local) Improvement Program • Real Time Transit Information • Transit Information Redesign (Targets & Eyelevels) • Implement Universal Fare System • Government Advocacy • Motor Coach Operator Identification

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Efficiently Track Resources Big Blue Bus Advanced Fleet Management System (AFMS) allows the Big Blue Bus to track the location of its vehicles. Big Blue Bus also uses Enterprise Asset Management (EAM) software program to track maintenance and fueling of all City of Santa Monica vehicles. The program is used to determine the total cost per mile of maintaining and fueling each City vehicle. Staff is currently working with these software programs to improve tracking of assets and status of bus stops: • Bus Advanced Fleet Management System program • EAM software program • Bus Stop Asset Management Software • Fleet Management Plan • Preventative Maintenance Systems Bus Stop Improvement Program BBB began construction of Phase 1 of the Bus Stop Improvement Project (BSIP) in March 2014. Phase 1 focuses on improving 143 bus stops within the City of Santa Monica, down from 321 stops. BBB removed stops it does not anticipate serving after Phase 2 of the Expo Line opens and stops that BBB no longer serves from the project scope. The stops to be improved include one very high-volume stop, 44 high-volume stops, 35 medium-volume stops, and 63 low-volume stops. Shortly after the installation of the first set of bus stops under Phase 1, BBB received feedback on the form and function of the newly designed stops. Based on customer and constituent feedback regarding concerns about seating capacity, shade, rider and driver line of site visibility, and functionality for elderly riders and riders with physical challenges, BBB is modifying the design of the new bus stops to address these concerns. Bus stop design modifications will include additional seating, and additional or expanded canopies at low volume stops, features allowing greater ease of use for riders requiring support to lift themselves up from a seated position, and repositioning the seating such that the sightline for riders and drivers alike are not obstructed. Where feasible, BBB will convert “low volume” stops currently designed to host two seats and a single canopy to “medium volume” stops, adding seating as well as canopies. In addition, BBB is investigating modifying the existing seat design to improve the seating comfort and support, potentially through wider seats and higher backs. At stops in Phase 1, BBB is installing new sign units with redesigned route information that includes an easy-to-read, simplified route map, canopies to provide shade during peak boarding periods, seating (on a space permitting basis) and trash and recycling cans. Additionally, BBB is installing signage which displays real-time information at 35 locations. To date, the project is 29% complete; 56 stops within the City of Santa Monica have been upgraded and returned to service. BBB expects to construct 123 new bus 15

shelters during FY15, and anticipates it will be approximately 82% to completion by June 30, 2015. BBB anticipates installing new target signs and eyelevel holders outside of City of Santa Monica limits as part of Phase 2 of BSIP over the next three years. Real-Time Transit Information With the funding allocated for the Bus Stop Improvement Project, BBB is installing 35 real-time arrival information digital signs within the City of Santa Monica. To date, BBB has installed signs at two stops serving Santa Monica College. BBB expects to install 28 of the 35 real time signs during FY15. The purpose of the real time signs is to provide customers with information about when the next bus is expected to arrive. Making bus arrival information available to customers mitigates some of the uncertainty that is associated with riding public, fixedroute transit. The signs that BBB is installing as part of BSIP will display arrival information for up to four upcoming arriving buses. The sign displays the route number, the direction the bus is headed, and information about its arrival time. Transit Information Redesign (Targets and Eyelevels) In November 2013, as part of the Bus Stop Improvement Project, BBB began developing a new format for “eyelevel” route information at bus stops. The redesign was necessitated in part by the increased eyelevel display dimensions of the new BSIP sign units and the need to downsize to one eyelevel per route because of limited space inside of these kiosks. Traditionally, BBB stops displayed up to four eyelevels per route at each stop. Through the redesign, BBB sought to enhance both the map aesthetic and clarity of information. BBB developed five concepts to demonstrate how information could be conveyed with different levels of detail. They varied from a highly detailed depiction of routing, streets and the cityscape, to a “spider diagram” that reduced the map to its most integral parts. The objective was to convey Big Blue Bus’ dynamic travel paths (north, south, east and west), key intersections and points of interest for riders, while maintaining a simple, flexible design that would easily accommodate future route changes. The final design is a hybrid of moderate street detail with a simplified bus route path. For the first service change in FY15 (August 2014), the approved diagram-style design was applied to all routes in the system at eyelevels at each stop in both the City of Santa Monica and City of Los Angeles. The exteriors of the BSIP sign units are heavily branded. A bright white BBB logo sits against playful dark blue bubbles, creating a high contrast beacon for riders and sense

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of place. The interior of the units houses wider eyelevel displays, a poster for public information campaigns, and stop ID plaques with customer service information. Low-volume BSIP stops can accommodate up to three eyelevels and medium- and high-level stops can accommodate up to six. These eyelevel dimensions differ from the current displays at non-BSIP stops. BBB will standardize these eyelevel display sizes through off-the-shelf eyelevel holders to create signage consistency and improve rider way-finding. These stops will also receive newly branded target signs and a stop ID plaque with customer service information. Collectively, the new system will accommodate varying levels of information, be flexible for future service changes and simplify maintenance over time. BBB began work on the second phase of the eyelevel redesign to consolidate schedule information into frequency based tables in order to combine both map and schedule information into one easy-to-read panel. Currently, BSIP eyelevels in Santa Monica include a QR code in the schedule portion of the design. This QR code points web browsers to up-to-date Routes & Schedules information via the BBB website. Non-BSIP stops in Santa Monica and City of Los Angeles stops still house multiple eyelevel panels with full timetable information which will transition to the larger display and fewer panels with BSIP Phase II. Implementation of Universal Fare System Coordination with Metro has begun in anticipation of BBB’s launch of the TAP card program in early 2015. BBB customers will have the opportunity to conveniently load Metro’s EZ Pass, which is good throughout the entire Los Angeles region, BBB fare media and add value to cards using a “cash purse” option that allows customers to pre-pay a cash amount to be used on any transit agency. With the launch of TAP mobile validators on BBB buses, every municipal agency in LA County will be on the TAP system. A pilot program equipping 20 buses with TAP light validators will be conducted in January of 2015. Government Advocacy BBB supported Assembly Bill 2707, a change in state law allowing four additional inches of clearance in addition to the existing 36” clearance legally allowed in order to install three-bicycle capacity racks on buses. Several other California transit operators have this legal allowance in effect now. BBB has cases where several consecutive trips on busy routes can have full bicycle racks, thus stopping new passengers with bicycles from boarding buses. On September 9, 2014, Governor Jerry Brown signed Assembly Bill 2707 into law. Motor Coach Operator Identification Big Blue Bus’ Operations Division has started requiring drivers to post their badge number on each bus so patrons can more readily identify individual drivers for compliments and feedback regarding service. 17

SECTION II FINANCIAL & OPERATIONAL TABLES

Table L-1 Santa Monica's Big Blue Bus FARE STRUCTURE FY 2015

FARE CATEGORIES

TYPES OF FIXED ROUTE SERVICE

Local

Express

Individual Fares Regular/Student Senior (62 yrs. +)/Disabled/Medicare

$1.00 $0.50

$2.00 $1.00

Day Pass Regular/Student Senior (62 yrs. +)/Disabled/Medicare

$4.00 $1.50

$4.00 $1.50

13 Rides Regular/Student Senior (62 yrs. +)/Disabled/Medicare

$12.00 + $0.50 transfer $6.00 + $0.25 transfer

$12.00 + $1.00 upgrade $6.00 + $0.50 upgrade

30 Day Pass Regular Senior (62 yrs. +)/Disabled/Medicare Student (5-18)

$60.00 $24.00 $40.00

$80.00 $40.00 $40.00 + $1.00 upgrade

NOTES: 1. There is no fare differential between peak and off-peak periods. 2. Children age 4 and under ride free with a paying adult (up to two children per adult). 3. The Big Blue Bus participates in the inter-agency EZ Transit Pass Program. The monthly cost for an EZ transit pass for local service is $84 (regular) and $35 (senior/disabled/Medicare).

Table L-2 Santa Monica's Big Blue Bus FLEET INVENTORY AS OF JUNE 30, 2014

Year Built

Make

Model

2013

Gillig

G27D102N4

39

40

2011

El Dorado

EZ Rider

29

2011

NABI

40LFW

2011

NABI

2010

NUMBER OF VEHICLES Fixed-Route Paratransit Active With Major Emergency Pre Service Service Service Rehab Contingency ADA

Projected Year of ADA Replacement

Fuel

Owned/ Leased

102

CNG

58

58

58

58

2025

30

102

CNG

10

10

8

10

2021

38

40

102

CNG

9

9

9

9

2023

60BRT

53

60

102

21

21

21

21

2023

El Dorado

EZ Rider

29

30

102

CNG UNLEADED Gasoline

5

5

5

5

2020

2006

New Flyer

O40LF

40

40

102

LNG

10

10

10

10

2018

2004

New Flyer

O40LF

40

40

102

LNG

52

52

52

52

2016

2002

NABI

40LFW-23

38

40

102

LNG

36

36

36

36

2014

201

201

199

201

TOTAL VEHICLES

Seats Length Width

--

Table L - 3 Santa Monica's Big Blue Bus HISTORICAL AND PROJECTED FLEET CHARACTERISTICS FY 2014-2016

FLEET CHARACTERISTICS

FY 2014 Audited

SYSTEM TOTAL FY 2015 FY 2016 Estimated Planned

Peak hour fleet

152

157

157

Spare for maintenance

47

32

32

31%

20%

20%

2

0

0

201

189

189

0

0

18

Spare Ratio (Line 2 divided by Line 1) Emergency Contingency Reserve

Inactive Fleet: Vehicles Not Serviceable Total Vehicles (Sum Lines 1,2,4, & 5) New Replacement Vehicles Delivered (2016)*

*anticipates delivery of 40-foot and 60-foot CNG buses to replace 2002 LNG buses in FY2016

Table 4 (A) HISTORICAL AND PROJECTED FINANCIAL STATUS SOURCES AND APPLICATIONS OF CAPITAL FUNDS BY YEAR OF EXPENDITURE ($000)

MODE: Bus

SOURCES OF CAPITAL FUNDS:

FY 2013 Audited

FY 2014 Actual

FY 2015 Planned

FEDERAL CAPITAL GRANTS FTA Sec. 5309 (Sec. 3) FTA Sect 5307 (Sec. 9) Econ Stimulus Other Federal (CMAQ) STATE CAPITAL GRANTS AND SUBVENTIONS TDA (ART 4) current from unallocated TDA from prior year reserves STA current from unallocated STA from prior years reserve Other State LOCAL CAPITAL GRANTS Prop A Local Return Prop A Discretionary Prop C Local Return Prop C 5% Security Prop C 40% Disc. Prop C MOSIP Measure R Clean Fuels Measure R 15% Local Return Prop 1B PTMISEA Bridge Funds Prop 1B Transit Security Bridge Funds Other Local TOTAL CAPITAL REVENUE TOTAL CAPITAL EXPENSES

11,744

1,783 15,213

9,541

7,202

7,158

9,452

22

13

2

267

275

20

1,483 764

0.2 343 928

21,492 21,974

267

1,558 249

1,558 269

27,532 28,827

21,087 19,378

TABLE L - 4 (B) HISTORICAL AND PROJECTED FINANCIAL STATUS SOURCES AND APPLICATION OF OPERATING FUNDS BY YEAR OF EXPENDITURE ($000) FY 2013 Audited

FY 2014 Actual

FY 2015 Planned

SOURCES OF OPERATING FUNDS: FEDERAL GRANTS AND REIMBURSEMENTS FTA Sec. 5307 (Sec.) Operating CMAQ (Operating ) STATE GRANTS AND REIMBURSEMENTS TDA Current from Unallocated STA Current from Unallocated LOCAL CASH GRANTS & REIMBURSEMENTS Passenger Fares Special Transit Services Charter service Revenues Auxiliary Transportation Revenue Non-transportation Revenue Prop A. 40% Discretionary Prop A. Local Return Prop A Interest Measure R Local Return Measure R 20% Prop C. 5% Security Prop C Local Return Prop C. Other (BSIP & Foothill Mitigation) Other Local SUBTOTAL OPERATING REVENUES TOTAL OPERATING EXPENSES

15,529 4,318

18,519 3,479

19,329 2,425

14,091 0 1 1,653 8,110 11,598 358 890 3,315 1,026 1,194 612

13,609 0 2,439 3,621 11,988 351 871 11,139 1,214 1,308 656

14,413 0 1,663 2,249 12,229 399 992 7,861 1,168 1,298 1,019

62,695 62,695

69,194 69,194

65,045 65,045

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY TPM REPORT FORM Fiscal Year : Agency Name:

Santa Monica's Big Blue Bus

Status:

FAP Funded TDA, STA & Proposition A Discretionary 1 Sub-total Local Express Dial-A-Ride

Annual Totals

Measure R

Proposition C 40% Discretionary Base TSE BSIP MOSIP Restructuring

FAP Total

Total MTA Funded

Other Codes 2

2013 Audited

System Total

Total Vehicle Miles

4,526

526

5,052

531

5,583

64

5,647

5,647

Vehicle Service Miles

4,085

485

4,570

481

5,051

58

5,109

5,109

Total Vehicle Hours

434

37

471

50

520

6

526

526

Vehicle Service Hours

415

35

450

47

497

6

503

503

Unlinked Passengers

16,911

372

17,283

1,818

19,101

219

19,319

19,319

Linked Passengers

15,120

333

15,453

1,625

17,078

195

17,273

17,273

Passenger Revenue

11,883

723

12,606

1,326

13,932

159

14,091

14,091

6,446

6,446

6,019

63,241

724

63,964

63,964

Aux. Rev/Local Subs.

5,826

620

6,446

Op. Cost Less Depr.

52,184

5,038

57,222

6,446

Full Time Equiv Employees

430

Active Vehicles

167

11

178

12

190

2

192

192

Peak Vehicles

123

11

134

16

150

2

152

152

-

-

DAR Seat Capacity

-

Base Fare

1.00

-

2.00

Effective Date 1

"Included Dial-A-Ride" only includes operations that historically have been included in the FAP calculations.

2

Please Describe:

Locally funded charter service. No federal funds are budgeted to support this service. Vehicle miles and hours are not included in the NTD totals.

EZ Pass Data included above: Revenue Unlinked Passengers

Prepared by: Enny Chung $1,012,696 1,223,153

3/4/2014 Date

Approved by: Ed King

TABLE L - 6 PERFORMANCE AUDIT FOLLOW-UP OF DRAFT RECOMMENDATIONS FROM THE LAST COMPLETED PERFORMANCE AUDIT PERFORMANCE AUDIT

OPERATOR PROGRESS

RECOMMENDED ACTIONS

TO DATE

1. Full-Time Equivalent (FTE) data reported to the State Controller has not been calculated by dividing all employees’ hours by 2,000 or does not include contractor hours.

Staff ensures all FTE data is reported by dividing all employees’ hours by 2,000 and including contractor hours.

TABLE - 7 Santa Monica Big Blue Bus Summary of Capital Projects - 2014-2016 FY 2013-14 Project Name Bus Components Replacement Program Yard Improvements Technology Equipment Advanced Fleet Management System Bus Stop Amenities Service Vehicles Downtown Transit Mall Bus Replacement Program Shop Equipment Facility Upgrades & Renovations Campus Expansion Telecommunication Services Transit Center Project Farebox System Universal Fare System Radio Tower Equipment Safey & Security Prop 1B Safety and Security Transit Oriented Development Dial-A-Ride Vehicles Expo Light Rail

Total Request 6,725,588 0 1,294,036 0 10,000 400,000 60,000 11,165,374 260,000 0 0 51,250 0 0 0 80,000 0 267,091 0 25,000 550,000

TOTAL

$20,888,339

FY 2014-15 Project Name Bus Components Replacement Program Yard Improvements Technology Equipment Advanced Fleet Management System Bus Stop Amenities Service Vehicles Downtown Transit Mall Bus Replacement Program Shop Equipment Facility Upgrades & Renovations Campus Expansion Telecommunication Services Transit Center Project Farebox System Universal Fare System Radio Tower Equipment Safey & Security Prop 1B Safety and Security Transit Oriented Development Dial-A-Ride Vehicles Expo Light Rail System Implementation TOTAL

Total Request 4,847,925 0 834,018 0 1,169,200 0 0 9,754,862 0 1,752,000 0 52,531 0 100,000 0 80,000 0 516,483 0 275,000 70,000 400,000 $19,852,019

FY 2015-16 Project Name Bus Components Replacement Program Yard Improvements Technology Equipment Advanced Fleet Management System Bus Stop Amenities Service Vehicles Downtown Transit Mall Bus Replacement Program Shop Equipment Facility Upgrades & Renovations Campus Expansion Telecommunication Services Transit Center Project Farebox System Universal Fare System Radio Tower Equipment Safey & Security Prop 1B Safety and Security Transit Oriented Development Dial-A-Ride Vehicles Expo Light Rail System Implementation TOTAL

Total Request 6,446,000 190,000 1,086,620 0 116,000 250,000 50,000 5,558,334 250,000 3,510,000 0 54,107 0 200,000 0 580,000 0 267,091 430,000 0 0 100,000 $19,088,152

Table L - 8 Transportation Improvement Plan 2015 TIP (SRTP 2015-2017) TIP ID

Project

LAE0172

Purchase 21 Replacement Buses for Santa Monica's BBB Transit Service

LA57110

TIP Programmed

Federal

Local

20,992,000

17,268,000

3,724,000

Bus Replacement (5) 30-Foot & (10) 40-Foot

11,500,000

6,780,000

4,720,000

LA0F022

Bus Shelter Program

10,553,000

5,885,000

4,668,000

LA973503

Downtown Transit Mall Enhancements/ Transit Customer Svc. Center

2,261,000

1,773,000

488,000

LA990313

Universal Fare System Program

3,945,000

2,649,000

1,296,000

LA0F093

Replace 30 New Flyer Diesel Vehicles with CNG

58,018,000

47,947,000

10,071,000

LA0F094

Replacement of 10 Thomas Buses (Diesel with CNG

8,061,000

8,061,000

0

LAE0364

Santa Monica's Big Blue Bus/Santa Monica College Transit Services Bus Improvements near Campus

2,000,000

836,000

1,164,000

LA963580

Radio System, Dispatch System, AFMS

10,300,000

5,600,000

4,700,000

LA0G548

Streetcar Study/Alternative Analysis

1,000,000

800,000

200,000

LAF5406

Replace 40-foot bus with Alternative Fuel

12,345,000

9,876,000

2,469,000

LA0G939

Expo Planning

550,000

440,000

110,000

LA0G856

Transit Capital - Fuel

244,000

244,000

0

141,769,000

108,159,000

33,610,000

TOTAL PROGRAMMED

SECTION III EXHIBITS

EXHIBIT A ROUTE DESCRIPTONS AND SCHEDULES

EXHIBIT B DRAFT EXPO INTEGRATION STUDY PLAN

City Council Meeting: October 28, 2014

Santa Monica, California

RESOLUTION NUMBER _________ (CCS) (City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AUTHORIZE THE CITY MANAGER TO FILE THE FY 2015-2017 SHORT RANGE TRANSIT PLAN, TO SUBMIT GRANT APPLICATIONS AND TO NEGOTIATE AND EXECUTE GRANT AGREEMENTS IN FURTHERANCE OF THE SHORT RANGE TRANSIT PLAN. WHEREAS, Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7 of the California Government Code authorizes the City Council to file a Short Range Transit Plan; and WHEREAS, the City Council is authorized to submit grant applications and execute grant agreements; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Manager is authorized to file the FY 2015-2017 Short Range Transit Plan with the Los Angeles County Metropolitan Transportation Authority. SECTION 2. The City Manager is authorized to file grant applications and to negotiate and execute grant agreements to accept federal, state, regional and local transit assistance consistent with the FY 2015-2017 Short Range Transit Plan, including, but not limited to, the Federal Transit Administration, Los Angeles County 1

Metropolitan Transportation Authority, South Coast Air Quality Management District, State Department

of

Homeland Security,

and the California Department

of

Transportation. SECTION 3. The City Manager is also authorized to negotiate and execute grant agreements with subgrantees for the pass-through of grant funds consistent with the terms of the applicable grant and the FY 2015-2017 Short Range Transit Plan. SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM:

_________________________ MARSHA JONES MOUTRIE City Attorney

2

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-D

To:

Mayor and City Council

From:

David Martin, Director, Planning & Community Development

Subject:

New Mills Act Contracts at 1602 Georgina Avenue, 1047 9th Street, 225 Santa Monica Boulevard, 947-953 11th Street and 401 25th Street.

Recommended Action Staff recommends that the City Council adopt the attached resolutions authorizing the City Manager to negotiate and execute Historic Property Preservation Agreements (Mills Act Contracts) between the City of Santa Monica and the property owners of five designated City Landmarks at 1602 Georgina Avenue, 1047 9th Street, 225 Santa Monica Boulevard, 947-953 11th Street and 401 25th Street. Executive Summary The Mills Act is a state law that enables local governments to enter into contracts with owners of qualified historic properties to authorize a property tax reduction. The Mills Act is one of the few financial incentives available to owners of historic properties, and is an important tool for implementing the City’s Historic Preservation Element goals: to promote the designation and long-term preservation of historic resources through the provision of incentives and technical assistance. The City requires Mills Act Contract applicants to provide a report prepared by a qualified architect describing the condition of the structure and its restoration and maintenance needs in order to ensure the resource’s historic integrity and structural stability. The recommendations in the architect’s report are reflected in the proposed ten-year rehabilitation/restoration and maintenance plan which becomes an attachment to the Mills Act Contract entered into between the City of Santa Monica and the property owners. Staff verifies the information contained in the report and may identify additional restoration and maintenance items as necessary. Execution of the pending Mills Act Contracts will result in reduced property tax revenue to the City estimated at $45,493 total for the 2014-2015 fiscal year and a similar amount annually thereafter.

1

Background In 1991, as part of a comprehensive revision to the City’s Landmarks Ordinance, the City Council authorized designated Structures of Merit, Landmarks, and contributing structures located in designated Historic Districts to be considered qualified historic properties eligible for historic property contracts submitted pursuant to the provisions of California Government Code Sections 50280-50290. As a result, property owners of such designated historic properties may file a Mills Act Contract application.

Once approved, a Mills Act contract requires the County Tax Assessor’s office to determine the value of the historic property based upon its current net operating income, rather than upon the traditional assessed valuation method resulting, in most cases, in a property tax reduction. For residential or commercial structures that are rented, the net operating income is determined based on actual rents received. For residential and commercial structures that are owner-occupied, the net operating income is determined by the income the property would produce if rented. In exchange for a property tax reduction, the owner agrees to protect, maintain and, if necessary, restore the historic property.

Under the traditional method of determining property taxes, properties are reassessed when sold. However, since Mills Act contracts run with the property, subsequent owners may realize greater tax benefits, as the assessed property value typically increases when the property is sold, resulting in an even greater difference between the property taxes under the assessed valuation method versus the property tax calculation permitted by the Mills Act contract. This can be a significant marketing feature for the property in terms of future sales and is considered an important historic preservation incentive because the property will be maintained. Similarly, the obligations and property tax reduction benefits associated with the Mills Act contract are also binding upon successive property owners during the contract term.

2

The initial Mills Act contract term is a minimum 10-year period. Each year on the anniversary of the effective date of the agreement, also known as the renewal date, a year is automatically added to the initial 10-year term of the agreement. This effectively makes the term of the contract at least 10 years, but possibly indefinite unless the owner or City submits a notice of non-renewal. A notice of non-renewal could be initiated by the City if the property owner is not fulfilling the obligations (i.e. scheduled improvements or maintenance) specified within their contract with the City. If such a notice of non-renewal were submitted, the contract would remain in effect for the balance of the term remaining, either from its original date of execution if within the initial 10-year term, or from the date of the last one-year renewal of the agreement.

Alternatively, the owner may petition the City to initiate an immediate cancellation, which would result in payment of a penalty equal to 12.5% of the property’s assessed current fair market value, as determined by the County Assessor as though the property were free of the contractual restriction. The City may also cancel the contract in the event of a breach of contract conditions, whereby the property owner would be subject to pay the same 12.5% penalty.

The terms of the contract also state that the agreement may be amended, in whole or in part, if both the owner and the City agree to execute a recorded document to memorialize the contract amendment.

Discussion Santa Monica Mills Act Contracts On July 8, 2014, the Council passed an Ordinance that revised the City’s Mills Act Program by narrowing contract eligibility requirements and expanding applicant submittals.

Although the effective date of these revisions would not affect current

applicants, staff encouraged all applicants during this Mills Act cycle to comply with the new requirements.

3

Mills Act contracts are time-sensitive and must be recorded by the end of the 2014 calendar year in order to take effect the following year. The County Assessor will make a final determination of the taxes due when the approved Contract is submitted and recorded, and will continue to conduct property tax assessments on an annual basis.

Los Angeles County Assessor’s Office data showed that for the 2012-2013 tax year, property value assessments for the 57 Santa Monica historic properties with executed Mills Acts contracts have been reduced between 11% and 82%, with the average reduction being 52%, when compared to their “Proposition 13” values. From these Mills Act contract property value assessments, correspondingly lower taxes have been levied on these properties. Each year, the County Assessor reassesses taxes due for properties with Mills Act Contracts.

Staff estimates that the five new contracts will result in property tax reductions equating to 73.4 percent for 1602 Georgina Avenue, 62.3 percent for 1047 9th Street, 40.2 percent for 225 Santa Monica Boulevard, 62.3 percent for 947-953 11th Street and 81.3 percent for 401 25th Street.

Property owners are required to obtain all applicable entitlements such as a Certificate of Appropriateness, and all associated building permits, for work proposed in the 10year restoration/maintenance plan. Furthermore, all work proposed in the 10-year restoration/maintenance plan must comply with “The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings” (Weeks & Grimmer, 1995).

Property owners are also required to submit a report to the City on a biennial basis to demonstrate compliance with contract terms. In January 2015, staff will initiate its latest contract monitoring effort for all 57 of the City’s existing contracts, to ensure that contractual terms and obligations are being fulfilled and the properties are appropriately maintained.

4

Analysis There are five new applications for consideration in 2014: •

a Spanish Colonial Revival residence designed by architect John Byers at 1602 Georgina Avenue;

•

a cluster of Pacific Ready-Cut kit houses located at 1047 9th Street;

•

the Bay Cities Guaranty Building (a.k.a. Clock Tower building), an iconic 12story Art Deco style downtown building at 225 Santa Monica Boulevard;

•

a Streamline Moderne courtyard apartment complex located at 947-953 11th Street; and

•

an American Colonial Revival single-family residence located at 401 25th Street.

In addition to any specific rehabilitation or restoration tasks included in the contract for each individual property, each Mills Act Contract includes a standard requirement for ordinary maintenance and upkeep throughout the Contract’s term for work such as roof, plumbing, and electrical systems maintenance.

1602 Georgina Avenue A Mills Act Contract application was filed on August 12, 2014, for the single family residence located at the southeast corner of 16th Street and Georgina Avenue. The residence is an excellent example of Mexican Spanish Colonial Revival Style designed by local architect, John Byers.

The low-profile “hacienda” residence reflects an

excellent example of a John Byers’ “Adobe” designed buildings from the 1920s and 1930s. The parcel and residence were designated as a City Landmark on June 9, 2014, based on its unique representative architectural style and association with a notable architect.

5

1602 Georgina Avenue – A Spanish Colonial Revival residence, designed by John Byers.

As part of the Mills Act application, an architect’s report was prepared by Kaplan Chen Kaplan Architects. The report assesses the condition of the single family residential structure and identifies repair and maintenance needs (Attachment A) along with a general schedule for completion of work. As discussed more fully in Attachment A, the exterior of the residence and prominent features are generally in good condition. A full inventory

of

proposed

work

items

is

included

in

the

10-year

Restoration/Rehabilitation/Maintenance Plan. In addition to the general maintenance of building elements such as painting and monitoring, the recommended repairs involve reattachment of clay roof tiles, mold damage to plaster walls, foundation work, and waterproofing.

Attachment A also contains the estimated financial analysis for the property at 1602 Georgina Avenue, which describes the projected benefit to be realized by the property owners and fiscal impact to the City. 1047 9th Street A Mills Act Contract application was filed on August 12, 2014 for three detached residential bungalows located on a single parcel at 1047 9th Street. The three structures

6

were constructed in 1923 using the prefabricated building system developed by Pacific Ready-Cut homes.

The trio of kit homes were designated as City Landmarks on

December 14, 2009 based on their embodiment of the American Colonial Revival architectural style, significant representation of bungalow court housing for Santa Monica’s work force and the property’s example of unmodified prefabricated kit homes depicted in Pacific Ready-Cut catalogues. The buildings are situated on the east side of 9th Street, between California Avenue and Washington Avenue. The buildings appear to be in relatively good condition, having undergone rehabilitation in the past year.

Catalogue Images: Pacific Ready-Cut kit house “Style 44” and “Style 84” th

1047 9 Street, designated City Landmark in 2010

As part of the Mills Act application, an architect’s report was prepared by Kaplan Chen Kaplan Architects. The report assesses the condition of the building and details repair, restoration/rehabilitation and maintenance needs (Attachment B) along with a general schedule for completion of work. Overall, the exterior is noted as being in good condition with the property’s recent rehabilitation work involving repairs and system (electrical, plumbing and heating) upgrades to all three bungalow structures. With the exception of replacing the roofing and refinishing the entry porches, the bungalows generally require routine maintenance such as painting, cleaning and monitoring of the buildings’ features.

7

Attachment B also contains the financial analysis estimate for the property at 1047 9th Street.

225 Santa Monica Boulevard

A Mills Act Contract application was filed on August 14, 2014 for the 12-story Clock Tower building, an Art Deco retail/office building located at 225 Santa Monica Boulevard in Downtown.

The building was designated a City Landmark in 2004.

Originally

constructed in 1930, the building is a strong symbol of Downtown’s commercial development; is an excellent example of the Art Deco design principles; has a strong association with numerous Santa Monica professionals and community leaders; and has a strong presence in Santa Monica’s downtown skyline.

Bay Cities Guaranty Building, gracing the Downtown skyline since 1930.

As part of the Mills Act application, an architect’s report was prepared by Architectural Resources Group. The report assesses the condition of the Art Deco commercial/office tower

and

identifies

repair,

restoration/rehabilitation

8

and

maintenance

needs

(Attachment C) along with a general schedule for completion of work. As discussed more fully in Attachment C, the Bay Cities Guaranty Building is described as being in generally good condition with areas of minor deterioration, particularly at the steel windows, where corrosion is evident and restoration and repair is necessary.

Attachment C also contains the financial analysis estimate for the property at 225 Santa Monica Boulevard. 947-953 11th Street A Mills Act Contract application was filed on August 14, 2014 for the two-story Streamline Moderne apartments located at 947-53 11th Street.

The complex was

designated a City Landmark in June 2014. Originally constructed in 1937, the building is representative of the Streamline Moderne architectural style as applied to a multifamily apartment court in the 1930s.

th

947-953 11 Street – a representative example of courtyard design, styled in Streamline Moderne. Designated a City Landmark in 2014.

As part of the Mills Act application, an architect’s report was prepared by Roberta Weiser. The report assesses the condition of the buildings and identifies repair, restoration/rehabilitation and maintenance needs (Attachment D) along with a general schedule for completion of work.

As discussed more fully in Attachment D, the

apartment complex is described as being in a state of deferred maintenance. Although

9

the new ownership has already undertaken a substantial number of improvement projects, and has expended considerable funds to complete this work (approximately $305,000), much remains to be completed including electrical upgrades, replacement of stairs, asbestos testing and abatement, window and door repairs and plumbing upgrades and improvements. Attachment D also contains the financial analysis estimate for the property at 947-953 11th Street. 401 25th Street A Mills Act Contract application was filed on August 14, 2014 for the two-story American Colonial Revival residence located at 401 25th Street in the northeast portion of the City.

The residence was designated a City Landmark in May 2014.

Originally

constructed in 1913, the building is significant for its association with early Santa Monica residential development, the American Colonial Revival architectural style and Thomas and May Bundy, prominent members of the community and renowned tennis professional.

th

The Bundy House at 401 25 Street.

As part of the Mills Act application, an architect’s report was prepared by Chattel Architecture. The report assesses the condition of the primary residence and identifies repair, restoration/rehabilitation and maintenance needs (Attachment E) along with a general schedule for completion of work. As discussed more fully in Attachment E, the

10

residence is described as being in generally good condition, with extensive maintenance required for appropriate preservation. The existing wood windows will require rehabilitation and a new roof is anticipated. Electrical and other systems work may also be necessary based on further evaluation. Attachment E also contains the financial analysis estimate for the property at 401 25th Street.

Commission Action The Landmarks Commission reviewed three of the proposed Mills Act Contract requests (225 Santa Monica Boulevard, 947-953 11th Street and 401 25th Street) at its September 8, 2014 meeting and directed staff to forward recommendations to the Council in support of these new applications. During its discussion, the Commission appreciated the thoroughness of each application and the quality of the associated architectural reports. The two remaining application requests (1602 Georgina Avenue and 1047 9th Street) were not able to be forwarded to the Landmarks Commission for recommendation due to a Commissioner conflict that disabled the Commission from reviewing and making a recommendation.

11

Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Execution of these Mills Act Contracts would result in a reduction in annual property tax revenue to the City in the amount of $45,493.

A summary financial

analysis table is included as Attachment F.

Prepared by:

Grace Page, Associate Planner

Approved:

Forwarded to Council:

David Martin Director, Planning and Community Development

Rod Gould City Manager

Attachments: A.

1602 Georgina Avenue: Draft Mills Act Resolution and Contract, Architect’s Report and Financial Analysis

B.

1047 9th Street: Draft Mills Act Resolution and Contract, Architect’s Report and Financial Analysis

C.

225 Santa Monica Boulevard: Draft Mills Act Resolution and Contract, Architect’s Report and Financial Analysis

D.

947-953 11th Street: Draft Mills Act Resolution and Contract, Architect’s Report and Financial Analysis

E.

401 25th Street: Draft Mills Act Resolution and Contract, Architect’s Report and Financial Analysis

F.

Summary Financial Analysis

12

City Council Meeting: 10/28/2014

Santa Monica, California

RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 1602 GEORGINA AVENUE, SANTA MONICA

WHEREAS, Government Code Sections 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 1602 Georgina Avenue is a designated City Landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 1602 Georgina Avenue.

1

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 1602 Georgina Avenue, Santa Monica, California in accordance with Government Code Sections 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

______________________________ MARSHA JONES MOUTRIE City Attorney

2

City Council Meeting: 10/28/2014

Santa Monica, California

RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 947-953 11TH STREET, SANTA MONICA

WHEREAS, Government Code Sections 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 947-953 11th Street is a designated City Landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the Landmarks Commission reviewed the owner’s application at its September 8, 2014 meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and

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WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 947953 11th Street.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 947-953 11th Street, Santa Monica, California in accordance with Government Code Sections 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

______________________________ MARSHA JONES MOUTRIE City Attorney

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Recording Requested By: City of Santa Monica

Contract No. XXXX (CCS)

When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383

HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 28th day of October, 2014 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Blau Family, LLC (hereinafter referred to as the "Owner").

R E C I T A L S:

A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 947-953 11th Street, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On June 9, 2014, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 28, 2014 the City Council of the City of Santa Monica approved Resolution Number ____ authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 947-953 11th Street; and

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E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2015 and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of nonrenewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement. Upon receipt by the Owner of a notice of nonrenewal, Owner may make a written protest of the notice of nonrenewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal. If either City or Owner serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the applicant and approved by the City Council, attached as Exhibit "C", and incorporated herein by this reference. c. In any restoration or rehabilitation of the property required by subsections (a) and (b) of this Section 3, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable.

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d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. e. Before undertaking the property maintenance required by subsection (a) of this Section 3 and the home improvements required by subsection (b) of this Section 3, Owner shall obtain all necessary building and planning permits to the extent required by local law, including but not limited to, a Certificate of Appropriateness 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement on an annual basis. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) of this Agreement), or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, the City shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of Owner default if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in Santa Monica Municipal Code Chapters 9.36 and 9.40 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property.

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9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City:

City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention:

To Owner:

Department of Planning and Community Development

Blau Family, LLC Attn: Carl Blau P.O. Box 260710 Encino, CA 91426

10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state.

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15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation,

By:_____________________________ ROD GOULD City Manager

APPROVED AS TO FORM:

OWNER:

_____________________________ MARSHA JONES MOUTRIE City Attorney

By:_____________________________ Carl Blau Blau Family, LLC

ATTEST: ______________________________ SARAH GORMAN City Clerk

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STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 947-953 11th Street 5, plus Exhibits A, B, and C

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STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 947-953 11th Street 5, plus Exhibits A, B, and C

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STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared Rod Gould, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 947-953 11th Street 5, plus Exhibits A, B, and C

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EXHIBIT "A" LEGAL DESCRIPTION

LOTS N AND O IN BLOCK 40 OF TOWN OF SANTA MONICA TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGES 80 AND 81, IN BOOK 39, PAGE 45 ET SEQ., OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 4281-022-017 APN: 4281-022-018

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EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1.

Facades which may fall and injure members of the public or property.

2.

Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports.

3.

Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration.

4.

Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors.

5.

Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering.

6.

Any fault or defect in the building which renders it not properly watertight or structurally unsafe.

In addition, the following maintenance measures are also required for the subject property: 1.

Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

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EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 947-953 11th Street over the initial ten (10) year term of the contract. Item 1 2 3 4 5

Year/timing Annual Annual Annual Annual Annual

6 7 8 9 10 11

2015 2015-2016 2015-2016 2015 2015 2017-2021

12 13 14 15

2015-2020 2015-2024 2015-2024 2015-2024

Task Maintenance Tasks Roof maintenance; new seals at penetrations HVAC maintenance Window, door, wood trim maintenance Landscape maintenance. Inspect window glazing/screening, repair when necessary Rehabilitation/Restoration Tasks Electrical system upgrade; rewire units Replace all exterior wood stairs Replace all garage doors, frames, operating mechanisms Repair, patch/paint roof overhangs (in courtyard locations) Patch/paint/seal exterior plaster/stucco Install new landscaping and low voltage lighting, rebuild freestanding planter in central courtyard Restore mailboxes Repair/restore door and window frames as necessary Repipe plumbing, as necessary Replace HVAC units as needed

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

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ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 947 11th Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $15,058 (estimate only **) $180,690

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$54,207 $5,421 $59,628

$121,063

4.00% 2% 1% 5.0% 12.00%

$1,008,855 $10,443 $27,677 $17,234 $2,757

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 953 11th Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $13,069 (estimate only **) $156,829

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$47,049 $4,705 $51,754

$105,076

4.00% 2% 1% 5.0% 12.00%

$875,631 $9,064 $24,221 $15,157 $2,425

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

City Council Meeting: 10/28/2014

Santa Monica, California

RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 401 25TH STREET, SANTA MONICA

WHEREAS, Government Code Sections 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 401 25th Street is a designated City Landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the Landmarks Commission reviewed the owner’s application at its September 8, 2014 meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and

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WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 401 25th Street.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 401 25th Street, Santa Monica, California in accordance with Government Code Sections 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

______________________________ MARSHA JONES MOUTRIE City Attorney

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Recording Requested By: City of Santa Monica

Contract No. XXXX (CCS)

When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383

HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 28th day of October, 2014 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Thomas Smuts and Meredith Stiehm (hereinafter referred to as the "Owner").

R E C I T A L S:

A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 401 25th Street, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On May 12, 2014, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 28, 2014 the City Council of the City of Santa Monica approved Resolution Number ____ authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 401 25th Street; and

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E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2015 and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of nonrenewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement. Upon receipt by the Owner of a notice of nonrenewal, Owner may make a written protest of the notice of nonrenewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal. If either City or Owner serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the applicant and approved by the City Council, attached as Exhibit "C", and incorporated herein by this reference. c. In any restoration or rehabilitation of the property required by subsections (a) and (b) of this Section 3, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable.

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d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. e. Before undertaking the property maintenance required by subsection (a) of this Section 3 and the home improvements required by subsection (b) of this Section 3, Owner shall obtain all necessary building and planning permits to the extent required by local law, including but not limited to, a Certificate of Appropriateness 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement on an annual basis. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) of this Agreement), or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, the City shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of Owner default if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in Santa Monica Municipal Code Chapters 9.36 and 9.40 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property.

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9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City:

City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention:

To Owner:

Department of Planning and Community Development

Thomas Smuts and Meredith Stiehm 401 25th Street Santa Monica, CA 90402

10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15.

Recordation.

Within 20 days of execution, the parties shall cause this

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Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation,

By:_____________________________ ROD GOULD City Manager

APPROVED AS TO FORM:

OWNER:

_____________________________ MARSHA JONES MOUTRIE City Attorney

By:_____________________________ Thomas Smuts

By:_____________________________ Meredith Stiehm

ATTEST: ______________________________ SARAH GORMAN City Clerk

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STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 401 25th Street 5, plus Exhibits A, B, and C

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STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 401 25th Street 5, plus Exhibits A, B, and C

7

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared Rod Gould, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 401 25th Street 5, plus Exhibits A, B, and C

8

EXHIBIT "A" LEGAL DESCRIPTION

LOTS 14 AND 15 IN BLOCK “C” OF TRACT NO 1676, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 21, PAGES 102 AND 103 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

9

EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1.

Facades which may fall and injure members of the public or property.

2.

Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports.

3.

Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration.

4.

Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors.

5.

Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering.

6.

Any fault or defect in the building which renders it not properly watertight or structurally unsafe.

In addition, the following maintenance measures are also required for the subject property: 1.

Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

10

EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 401 25th Street over the initial ten (10) year term of the contract. Item

Year/timing

1 As needed 2 As needed

3 4 5 6 7 8

As needed As needed As needed As needed As needed As needed

9 As needed

10 2015 11 2015-2017

12 2015-2017 13 14 15 16 17

2021-2024 2015-2017 2017-2021 2017-2021 2021-2024

18 2021-2024 19 2015 20 2017-2021 21 2021-2024

Task Maintenance Tasks Maintain painted finish of fencing and site features, repair deteriorated wood elements at portico Maintenance of landscaping. Ensure soil slopes away from buildings; trim trees/plants overhanging roof and away from building. Window repair/maintenance Wood siding/element repair/maintenance. Maintain elastomeric finish on deck Maintain exterior paint finishes Termite/pest control Maintain systems (i.e. electrical, mechanical, structural and plumbing) Maintain interior painted and stained finishes Rehabilitation/Restoration Tasks Engage structural engineer to evaluate retaining wall strength; implement any recommended actions. Engage landscape architect to develop plan for removal of dense foliage; add gravel and French drain system along building perimeter; implement any recommending actions. Patch/repair/repaint deteriorated wood at perimeter fencing portico Replace contemporary handrails with compatible alternative Rehabilitate wood sash windows Add appropriate flashing at stoops Resolve wood siding contact with soil issue at chimney Replace roofing; consider use of wood shakes, if permitted and appropriate. Replace spark arrestors on chimneys Evaluate gutter and down spout systems expert; implement any recommended actions. Reactivate passive attic cooling system including new ridge vents Add insulation to perimeter walls

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

11

ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 401 25th Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $25,000 (estimate only **) $300,000

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$75,000 $9,000 $84,000

$216,000

4.00% 4% 1% 5.0% 14%

$1,542,857 $15,971 $85,312 $69,341 $11,095

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

Attachm ent F 2014 -- SUM M ARY OF ESTIM ATE FINANCIAL ANALY SIS FOR M ILLS ACT CONTRACTS** Property Address

Est. Assessed Value (MILLS ACT)

Current Tax (Prop. 13)

Est. Tax (MILLS ACT)

Est. Mills Act Tax as a % of Current Tax

Est. Reduction in Property Tax

City Revenue (Prop. 13)

City Revenue (MILLS ACT)

City Revenue Reduction

1602 Georgina Ave

$1,234,286

$48,064

$12,777

26.6%

$35,288

$7,690

$2,044

($5,646)

401 25th Street 1047 9th Street 947 11th Street 953 11th Street 225 Santa Monica Bl

$1,542,857 $1,008,855 $737,000 $875,631 $14,111,406

$85,312 $27,677 $20,050 $24,221 $244,116

$15,971 $10,443 $7,629 $9,064 $146,074

18.72% 37.7% 38.1% 37.4% 59.8%

$69,341 $17,234 $12,421 $15,157 $98,042

$13,650 $4,428 $3,208 $3,875 $39,059

$2,555 $1,671 $1,221 $1,450 $23,372

($11,094.59) ($2,757) ($1,987) ($2,425) ($15,687)

Recording Requested By: City of Santa Monica

Contract No. XXXX (CCS)

When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383

HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 28th day of October, 2014 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Rochelle Huppin (hereinafter referred to as the "Owner").

R E C I T A L S:

A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 1602 Georgina Avenue, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On June 9, 2014, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 28, 2014 the City Council of the City of Santa Monica approved Resolution Number ____ authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 1602 Georgina Avenue; and

1

E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2015 and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of nonrenewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement. Upon receipt by the Owner of a notice of nonrenewal, Owner may make a written protest of the notice of nonrenewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal. If either City or Owner serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the applicant and approved by the City Council, attached as Exhibit "C", and incorporated herein by this reference. c. In any restoration or rehabilitation of the property required by subsections (a) and (b) of this Section 3, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable.

2

d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. e. Before undertaking the property maintenance required by subsection (a) of this Section 3 and the home improvements required by subsection (b) of this Section 3, Owner shall obtain all necessary building and planning permits to the extent required by local law, including but not limited to, a Certificate of Appropriateness 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement on an annual basis. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) of this Agreement), or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, the City shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of Owner default if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in Santa Monica Municipal Code Chapters 9.36 and 9.40 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property.

3

9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City:

City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention:

To Owner:

Department of Planning and Community Development

Rochelle Huppin 1602 Georgina Avenue Santa Monica, CA 90402

10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15.

Recordation.

Within 20 days of execution, the parties shall cause this

4

Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation,

By:_____________________________ ROD GOULD City Manager

APPROVED AS TO FORM:

OWNER:

_____________________________ MARSHA JONES MOUTRIE City Attorney

By:_____________________________ Rochelle Huppin

ATTEST: ______________________________ SARAH GORMAN City Clerk

5

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1602 Georgina Avenue 5, plus Exhibits A, B, and C

6

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1602 Georgina Avenue 5, plus Exhibits A, B, and C

7

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared Rod Gould, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1602 Georgina Avenue 5, plus Exhibits A, B, and C

8

EXHIBIT "A" LEGAL DESCRIPTION

LOT 125 OF TRACT NO 5859, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 62 PAGES 30 AND 31 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

9

EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1.

Facades which may fall and injure members of the public or property.

2.

Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports.

3.

Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration.

4.

Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors.

5.

Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering.

6.

Any fault or defect in the building which renders it not properly watertight or structurally unsafe.

In addition, the following maintenance measures are also required for the subject property: 1.

Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

10

EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 1602 Georgina Avenue over the initial ten (10) year term of the contract. Item 1 2 3 4 5 6 7 8 9

Year/timing Annually Annually Annually Annually Annually Annually Annually Annually Annually

10 2015-2020 11 2015-2020 12 2015-2025 13 2015-2020 14 2015-2020 15 2015-2020

Task Maintenance Tasks Maintain clay tile walk Maintenance and pruning of landscape Maintain and exterior plaster Maintain clay tile roof Maintain chimney, gutters & downspouts Maintain and paint wood doors Maintain wood overhangs, windows and doors Maintain interior plaster finish, paint and stained finishes Maintain decorative woodwork, including wood rails Maintain metalwork, grills, balconets & rails Rehabilitation/Restoration Tasks Repair/repoint brick paving/steps Painting of exterior plaster Engineer to review foundation, framing and basement walls including possible waterproofing Reattach/repair clay roof tiles Painting and maintenance of wood overhangs, corbels Interior plaster repair at mold areas

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

11

ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 1602 Georgina Avenue REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $20,000 (estimate only **) $240,000

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$60,000 $7,200 $67,200

$172,800

4.00% 4% 1% 5.0% 14%

$1,234,286 $12,777 $48,064 $35,288 $5,646

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

City Council Meeting: 10/28/2014

Santa Monica, California

RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 1047 9th STREET, SANTA MONICA

WHEREAS, Government Code Sections 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 1047 9th Street is a designated City Landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 1047 9th Street.

1

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 1047 9th Street, Santa Monica, California in accordance with Government Code Sections 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

______________________________ MARSHA JONES MOUTRIE City Attorney

2

Recording Requested By: City of Santa Monica

Contract No. XXXX (CCS)

When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383

HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 28th day of October, 2014 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Mark Tabit (hereinafter referred to as the "Owner").

R E C I T A L S:

A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 1047 Ninth Street, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On December 14, 2009, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 28, 2014 the City Council of the City of Santa Monica approved Resolution Number ____ authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 1047 Ninth Street; and

1

E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2015 and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of nonrenewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement. Upon receipt by the Owner of a notice of nonrenewal, Owner may make a written protest of the notice of nonrenewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal. If either City or Owner serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the applicant and approved by the City Council, attached as Exhibit "C", and incorporated herein by this reference. c. In any restoration or rehabilitation of the property required by subsections (a) and (b) of this Section 3, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable.

2

d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. e. Before undertaking the property maintenance required by subsection (a) of this Section 3 and the home improvements required by subsection (b) of this Section 3, Owner shall obtain all necessary building and planning permits to the extent required by local law, including but not limited to, a Certificate of Appropriateness 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement on an annual basis. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) of this Agreement), or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, the City shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of Owner default if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in Santa Monica Municipal Code Chapters 9.36 and 9.40 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property.

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9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City:

City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention:

To Owner:

Department of Planning and Community Development

Mark Tabit 100 Wilshire Boulevard, Suite 300 Santa Monica, CA 90401

10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15.

Recordation.

Within 20 days of execution, the parties shall cause this

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Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation,

By:_____________________________ ROD GOULD City Manager

APPROVED AS TO FORM:

OWNER:

_____________________________ MARSHA JONES MOUTRIE City Attorney

By:_____________________________ Mark Tabit

ATTEST: ______________________________ SARAH GORMAN City Clerk

5

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1047 Ninth Street 5, plus Exhibits A, B, and C

6

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1047 Ninth Street 5, plus Exhibits A, B, and C

7

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared Rod Gould, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 1047 Ninth Street 5, plus Exhibits A, B, and C

8

EXHIBIT "A" LEGAL DESCRIPTION

LOT O, BLOCK 57 OF C-TRACT NO 51303, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1196 PAGES 56 AND 57 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

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EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1.

Facades which may fall and injure members of the public or property.

2.

Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports.

3.

Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration.

4.

Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors.

5.

Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering.

6.

Any fault or defect in the building which renders it not properly watertight or structurally unsafe.

In addition, the following maintenance measures are also required for the subject property: 1.

Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

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EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 1047 Ninth Street over the initial ten (10) year term of the contract. Item

Year/timing

1 Annually 2 Annually 3 5 years 4 5 6 7 8

Annually Annually 5 years 5 years 5 years

9 Annually

10 2015-2025 11 2015-2025 12 2015-2025

Task Maintenance Tasks Maintain front entry gate/walk and north entry path Maintain entry trim, wood siding/windows/fascia/trim/doors and exterior metal work Paint entry trim, wood siding/windows/fascia/trim/doors and exterior metal work Maintain exterior light fixtures Maintain wood thresholds Maintain interior wood floor without damage to original Prep & paint, repair/refurbish hardware of built-in cabinets Maintain original plaster, prep & paint of interior panel doors and trim and interior window trim Maintain plumbing, electrical and heating systems throughout Rehabilitation/Restoration Tasks New roofing and flashing Possible re-finish and new rails to entry porch stairs Structural work at top of foundation, added tie-downs

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

11

ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 1047 9th Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $11,000 (estimate only **) $132,000

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$39,600 $3,960 $43,560

$88,440

4.00% 2% 1% 5.0% 12.00%

$737,000 $7,629 $20,050 $12,421 $1,987

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

City Council Meeting: 10/28/2014

Santa Monica, California

RESOLUTION NUMBER ___ (CCS) (City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 225 SANTA MONICA BOULEVARD, SANTA MONICA

WHEREAS, Government Code Sections 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 225 Santa Monica Boulevard is a designated City Landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and

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WHEREAS, the Landmarks Commission reviewed the owner’s application at its September 8, 2014 meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 225 Santa Monica Boulevard.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 225 Santa Monica Boulevard, Santa Monica, California in accordance with Government Code Sections 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

______________________________ MARSHA JONES MOUTRIE City Attorney

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Recording Requested By: City of Santa Monica

Contract No. XXXX (CCS)

When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383

HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 28th day of October, 2014 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Sorgente Group of America (hereinafter referred to as the "Owner").

R E C I T A L S:

A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 225 Santa Monica Boulevard, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On December 13, 2004, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 28, 2014 the City Council of the City of Santa Monica approved Resolution Number ____ authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 225 Santa Monica Boulevard; and

1

E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2015 and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of nonrenewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement. Upon receipt by the Owner of a notice of nonrenewal, Owner may make a written protest of the notice of nonrenewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal. If either City or Owner serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the applicant and approved by the City Council, attached as Exhibit "C", and incorporated herein by this reference. c. In any restoration or rehabilitation of the property required by subsections (a) and (b) of this Section 3, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable.

2

d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. e. Before undertaking the property maintenance required by subsection (a) of this Section 3 and the home improvements required by subsection (b) of this Section 3, Owner shall obtain all necessary building and planning permits to the extent required by local law, including but not limited to, a Certificate of Appropriateness 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement on an annual basis. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) of this Agreement), or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, the City shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of Owner default if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in Santa Monica Municipal Code Chapters 9.36 and 9.40 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property.

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9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City:

City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention:

To Owner:

Department of Planning and Community Development

Sorgente Group of America Attn: Remko Schuh 805 3rd Avenue, 18th Floor New York, NY 10022

10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state.

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15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation,

By:_____________________________ ROD GOULD City Manager

APPROVED AS TO FORM:

OWNER:

_____________________________ MARSHA JONES MOUTRIE City Attorney

By:_____________________________ Remko Schuh Sorgente Group of America

ATTEST: ______________________________ SARAH GORMAN City Clerk

5

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 225 Santa Monica Boulevard 5, plus Exhibits A, B, and C

6

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 225 Santa Monica Boulevard 5, plus Exhibits A, B, and C

7

STATE OF CALIFORNIA COUNTY OF LOS ANGELES

) ) ss. )

On __________________before me, _______________________________ personally appeared Rod Gould, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SEAL

_______________________________ Notary Public in and for said State

Description of Instrument Title: Property location: Number of Pages:

Historic Property Preservation Agreement 225 Santa Monica Boulevard 5, plus Exhibits A, B, and C

8

EXHIBIT "A" LEGAL DESCRIPTION

LOTS “K” AND “L” IN BLOCK 147 OF THE TOWN OF SANTA MONICA, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGES 80 AND 81 OF MISCELLANEOUS RECORDS, AND IN BOOK 39, PAGE 45 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT FOR THE NORTHEASTERLY 100 FEET OF SAID LOTS “K” AND “L”.

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EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1.

Facades which may fall and injure members of the public or property.

2.

Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports.

3.

Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration.

4.

Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors.

5.

Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering.

6.

Any fault or defect in the building which renders it not properly watertight or structurally unsafe.

In addition, the following maintenance measures are also required for the subject property: 1.

Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

10

EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 225 Santa Monica Boulevard over the initial ten (10) year term of the contract. Item

Year/timing

1 Every three years 2 Three times per year 3 Bi-Annual 4 Quarterly 5 Quarterly 6 Annually

7 2015 8 2017-2020 9 2021-2025

Task Maintenance Tasks Repaint chiller enclosure screen on roof and alley equipment. Wash all exterior windows. Maintain operation of clock. HVAC system maintenance. Plumbing repairs and maintenance. Maintenance of roof coating membrane.

Rehabilitation/Restoration Tasks Add Title 24 reflective roof coating membrane to current roof surface. Restore corroded steel windows, returning to full function, and repaint. Repair exterior concrete where areas of deterioration are noted and repaint as needed.

**The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.**

11

ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT** 225 Santa Monica Boulevard REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income

Current $210,618 (estimate only **) $2,527,416

ANNUAL EXPENSES Gen. Expenses: 25% SFD, Others 30% Vacancy loss 3% 8) Total Expenses

NET OPERATING INCOME (NOI) (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 10) Historic Property Risk (2%, or 4% for SFD) 11) Property Tax Component 12) Amortization Component 13) Capitalization Rate (Sum Line 9 - 12) TAXES 14) Mills Act Assessment (NOI/ Line 13) 15) Tax Under Mills Act (Line 14 X .01035146) 16) Current Tax 17) Tax Savings (Line 16 - Line 15) 18) Annual Costs to City (Line 17 X 16%)

$758,225 $75,822 $834,047

$1,693,369

4.00% 2% 1% 5.0% 12.00%

$14,111,406 $146,074 $244,116 $98,042 $15,687

**This worksheet provides only an estimate analysis. The County of Los Angeles Office of the Assessor is responsible for calculating official Mills Act property tax assessments each year.

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-E To:

Mayor and City Council

From:

Martin Pastucha, Director of Public Works

Subject: Award Construction Management Contract for the FY 2013-14 Water Main Replacement Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a contract with SA Associates, a California-based company, in an amount not to exceed $356,400 (including a 10% contingency) for construction management and inspection services for the FY 2013-14 Water Main Replacement Project. 2. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. Executive Summary The Annual Water Main Replacement Project will replace and construct approximately 11,500 feet of water distribution pipelines at various locations to ensure an adequate and reliable supply of water to customers. Staff recommends SA Associates to provide construction management and inspection services during construction of the Annual Water Main Replacement Project in an amount not to exceed $356,400. Construction commenced in September 2014 and is scheduled to be completed in summer of 2015. Background On June 24, 2014, Council approved a construction award contract for the FY 2013-14 Water Main Replacement Project to Environmental Assessment and Remediation Management, Inc. dba EAR Engineering, Construction and Support Services in the amount of $4,132,341.

This project will construct improvements and replace

approximately 11,500 feet of aged water main distribution pipelines at various locations throughout the City based on a long-term replacement/upgrade plan for water mains due to age, condition, and capacity demands. This project will also relocate water and treated urban runoff water mains for the future Colorado Esplanade project.

1

Discussion Water main construction projects require full time inspections and construction management services to administer the contract. The annual water main project entails work both during the day and at night.

There is a need to hire a consultant to

supplement and aid the City with full time daily and nightly inspections for this project. Construction management services include: conduct weekly progress meetings; coordination between inspector, designer, and contractor; record management and document control; review and process requests for information; and interpretation of contract

documents,

submittals,

contract

schedule,

change

order

proposals,

maintenance of field logs, as-built verification, and labor compliance. The role of an inspector entails quality control, observing excavations, traffic control, daily reports, water outages, public outreach and coordination of construction activities.

The proposed Water Main Replacement project consists of three segments as outlined below.

Segment 1 would construct approximately 2,000 linear feet of new 12-inch diameter water main along Olympic Boulevard between 26th Street and Stewart Avenue. The new water main would complete a loop, improving pressure along the segment and would provide five new fire hydrants along the future EXPO Light Rail Bergamot Station as part of the agreement with Los Angeles County Metropolitan Transit Authority.

Segment 2 would replace old cast iron water mains and construct approximately 8,300 linear feet of new Polyvinyl chloride (PVC) type water mains; replace and construct new valves; and renew residential and commercial water meters. Pipelines in Project 2 were installed in the 1920's and the 1940's are reaching the end of their 100-year useful lifespan. Segement 2 includes the following locations: •

Olympic Boulevard from 12th Court to Lincoln Boulevard

•

Lincoln Court from Olympic Boulevard to Colorado Avenue

•

Olympic Boulevard (north side) from 17th Street to 19th Street

•

Olympic Boulevard (south side) from 17th Street to 20th Street 2

•

17th Court from Olympic Boulevard to I-10 Freeway

•

18th Court from Olympic Boulevard to I-10 Freeway

•

Pennsylvania Avenue from 20th Street to 22nd Street

•

Euclid Court from California Avenue to Wilshire Boulevard

•

16th Court from Broadway to Santa Monica Boulevard

•

20th Court from Wilshire Boulevard to Arizona Avenue

•

Ocean Avenue from California Avenue to Wilshire Boulevard (southbound parking lane)

Segment 3 would relocate approximately 1,200 linear feet of treated urban runoff water main and 200 feet of water main to facilitate the tight construction schedule for the future Colorado Esplanade project.

Construction Schedule Construction work began September 2, 2014 and completion is estimated by February 2015.

Construction Management Selection In May 2014, the City requested Statements of Qualifications for construction management and inspection services for upcoming construction projects throughout the City. The request for Statements of Qualifications was advertised on the City’s online bidding website. Fifteen firms submitted Statements of Qualifications for this project which were reviewed and rated by Public Works staff.

Selection criteria included

technical competence, staffing capability, project approach, past performance, dispute resolution, quality control, cost control, management services, customer service and the ability to meet required time frames. The top firms were invited to interview with Public Works staff in July 2014: GK & Associates, SA Associates, and Willdan Engineering. SA Associates is recommended as the best firm to provide construction management and inspection services based on their competitive prices and their direct experience working on water main projects for the City of Santa Monica. Services provided by SA Associates would include construction management, and continuous inspection of the 3

contractor’s work. Staff contacted reference agencies and all respondents reported that SA Associates provided exceptional construction management and inspection services.

Financial Impacts and Budget Actions The contract to be awarded to SA Associates is for an amount not to exceed $356,400. Funds are available in the FY 2014-15 Capital Improvement Program budget in account C250136.589000. Prepared By: Carlos Rosales, Civil Engineering Associate

Approved:

Forwarded to Council:

Martin Pastucha Director of Public Works

Rod Gould City Manager

4

City Council Report City Council Meeting: Date Agenda Item: 3-F To:

Mayor and City Council

From:

David Martin, Planning and Community Development Department Director

Subject:

First Modification to Professional Services Agreement #2590 with Cotton, Shires & Associates, Inc. and Professional Services Agreement #2591 with Koury Geotechnical Services, Inc.

Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Professional Services Agreements #2590 in the amount of $135,000 with Cotton, Shires & Associates, Inc., a California-based company, to provide geotechnical review services, and to extend the term of the agreement by two years. This will result in a five year amended agreement with a new total amount not to exceed $205,000. Staff also recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Professional Services Agreements #2591 in the amount of $135,000 with Koury Geotechnical Services, Inc., a California-based company, to provide geotechnical review services, and to extend the term of the agreement by two years. This will result in a five year amended agreement with a new total amount not to exceed $205,000. Executive Summary Cotton, Shires & Associates and Koury Geotechnical Services provide geotechnical engineering services to the Building and Safety Division. They review Soils Reports that are submitted as part of the Plan Check process. Due to an unforeseen increase in the volume of Soils Reports, staff recommends increasing the contract amounts for both firms in order to meet the new demand levels. Staff recommends increasing both overall contract amounts by $135,000, for a not to exceed total of $205,000 for each. Staff also recommends extending the contract terms for both firms by two years for a final termination date of June 30, 2017. Discussion The Building and Safety Division originally went to bid in 2012 and contracted with both Cotton, Shires & Associates and Koury Geotechnical Services to perform Soils Report reviews. The contract amount for both firms is $70,000 each, which was below the threshold for Council approval at the time the contracts were created. Both contracts 1

are set to end on June 30, 2015. Since the contracts were executed in 2012, the volume of Plan Checks received by the Building and Safety Division has been higher than originally estimated, which has concurrently driven up the volume of soils reports in need of review.

This is mainly a result of changes in building codes, which drove

customers to get their projects submitted for plan check before the new codes took effect. As a result of this increased volume, the allotted budget has been expended faster than anticipated. For this reason, staff recommends an increase to both contract amounts.

This will allow Building and Safety to continue utilizing both of these

consultants to perform geotechnical reviews of soils reports, which is a necessary facet of the Plan Check process. Staff recommends increasing the term of both contracts at this time to allow Building and Safety to continue using their services through June 30, 2017. Consultant Selection In February 2012, the City published Request for Proposals (RFP) to provide geotechnical review services to the Building and Safety Division in accordance with City specifications. The RFP was posted on the City’s on-line bidding site in accordance with City Charter and Municipal Code provisions. 23 responses were received on February 16, 2012 and proposals were evaluated based on the criteria in SMMC 2.24.072. The respondents were ranked based on these evaluations and the top firms were interviewed.

After considering the proposals and subsequent interviews, evaluators

selected the top three firms based on overall qualifications. These firms were (in rank order, from first to third): Cotton, Shires & Associates, Fugro Consultants, and Koury Geotechnical Services. All three companies specialize in geotechnical services and excel in at least three of the four major evaluation criteria: engineering experience, staff qualifications, record of success with past clients, and fee proposal. The Building and Safety Division entered into Professional Service Agreements with all three firms, but staff is only recommending extending the term of these agreements with Cotton, Shires & Associates and Koury Geotechnical Services.

Both companies will review soils

reports submitted to the Building and Safety Division as part of the Plan Check process.

2

Financial Impacts & Budget Actions The agreement modification to be awarded to Cotton, Shires & Associates, Inc. is $135,000, for an amended agreement total not to exceed $205,000. Funds are available in the FY 2014-15 budget in division 01321; the agreement will be charged to account 01321.555060. The agreement modification to be awarded to Koury Geotechnical Services is $135,000, for an amended agreement total not to exceed $205,000. Funds are available in the FY 2014-15 budget in division 01321; the agreement will be charged to account 01321.555060. Prepared by: Orville Sabado, Plan Check Supervisor

Approved:

Forwarded to Council:

David Martin Director, Planning and Community Development Department

Rod Gould City Manager

3

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-G To:

Mayor and City Council

From:

Jacqueline A. Seabrooks, Chief of Police

Subject:

2013 and 2014 Bulletproof Vest Partnership Grants

Recommended Actions Staff recommends that the City Council: 1. Authorize the City Manager to accept a grant awarded in the amount of $23,372 from the US Department of Justice (DOJ) 2013 Bulletproof Vest Partnership (BVP) Award. 2. Authorize the City Manager to accept a grant awarded in the amount of $30,152 from the US DOJ 2014 BVP Award. 3. Authorize budget changes as outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary In 2013 and 2014 the City of Santa Monica Police Department (SMPD) has been awarded two, two-year grants of $23,372 and $30,152, respectively, from the US DOJ, Bureau of Justice Administration (BJA). The DOJ, BJA will reimburse SMPD 50 percent of the cost of each vest purchased. The grant funds will allow SMPD to purchase National Institute for Justice compliant armored vests for police officers. Discussion The Bulletproof Vest Partnership (BVP), created by the Bulletproof Vest Partnership Grant Act of 1998, is a unique US Department of Justice initiative designed to provide a critical resource to state and local law enforcement.

Since 1999, over 13,000 jurisdictions have participated in the BVP Program, with over $375 million in federal funds committed to support the purchase of an estimated 1.1 million bulletproof vests. The Office of Justice Programs BJA administers the BVP Program. 1

The City has been a recipient of grant funding previously in 2006 and 2010 with total previous grant funding awarded in the amount of $103,333. The 2013 and 2014 grant program funding will provide funding for approximately 140 replacement vests. Bulletproof vests are on a three year replacement cycle because the degradation of the Kevlar from repetitive use and body moisture reduces the vest’s ability to maintain the threat level guaranteed which voids the warranty. The current grant awards of $23,372 and $30,152 will support the purchase of vests through August 2016. 2013 BVP funds must be spent by August 31, 2015 and 2014 BVP funds must be spent by August 31, 2016.

Financial Impacts & Budget Actions Award of a $23,372 and a $30,152 grant from the US Department of Justice Bulletproof Vest Partnership requires the following FY 2014-15 budget changes: 1. Establish a revenue budget at account 20304.403632 in the amount of $23,372. 2. Establish a revenue budget at account 20304.403751 in the amount of $30,152. 3. Appropriate the following expenditures to reflect receipt of the US Department of Justice

Bulletproof

Vest

Partnership

Grant:

$23,372

at

account

number

20304.578837. 4. Appropriate the following expenditures to reflect receipt of the US Department of Justice

Bulletproof

Vest

Partnership

Grant:

$30,152

at

20304.578851. Prepared by: Nicole Dibling-Moore, Senior Administrative Analyst Approved:

Forwarded to Council:

Jacqueline A. Seabrooks Chief of Police

Rod Gould City Manager

2

account

number

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-H To:

Mayor and City Council

From:

Martin Pastucha, Director of Public Works

Subject:

Amend Purchase Order for One Additional Ford Transit Connect Vehicle for the Animal Control Unit

Recommended Action Staff recommends that the City Council approve a change order to Purchase Order 383429-OP in the amount of $65,665 with South Bay Ford Lincoln, a California-based company, for the purchase and delivery of one additional Ford Transit Connect vehicle for the Santa Monica Police Department Animal Control Unit. This would result in an amended purchase order with a new total amount not to exceed $262,658. Executive Summary On June 24, 2014 the City awarded Bid #4130 to South Bay Ford Lincoln for the purchase and delivery of four Ford Transit Connect vehicles for the Santa Monica Police Department Animal Control Unit in the amount of $196,993. At the time of awarding the purchase order, staff discovered it made an error and that the cost for the fourth vehicle was not included in the amount approved by Council. Staff recommends a change order to Purchase Order 383429-OP in the amount $65,665 for the cost of the fourth Ford Transit Connect vehicle, resulting in an amended purchase order amount not to exceed $262,660. Discussion The City replaces vehicles that have reached the end of their useful life through the vehicle replacement program. On June 24, 2014 the City awarded Bid #4130 for the purchase and delivery of four Ford Transit Connect vehicles for the Santa Monica Police Department Animal Control Unit in the amount of $196,993. At the time of awarding the purchase order, staff discovered it made an error and that the amount approved by Council was only for three vehicles, not four.

Purchase order 383429-OP has been issued for the first three vehicles and delivery is anticipated in May 2015. Staff recommends a change order in the amount of $65,665 1

for the purchase and delivery of one additional Ford Transit Connect vehicle for the Santa Monica Police Department Animal Control Unit.

Financial Impacts & Budget Actions The change order to be awarded to South Bay Ford Lincoln is $65,665, for an amended purchase order total not to exceed $262,658. Funds are available in the FY 2014-15 Capital Improvement Program budget in account C540167.589200. Prepared by: Heidi Said, Administrative Analyst

Approved:

Forwarded to Council:

Martin Pastucha Director of Public Works

Rod Gould City Manager

2

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 3-I To:

Mayor and City Council

From:

Martin Pastucha, Director of Public Works

Subject:

Award Bid for Police Department Vehicle Up-fitting Services

Recommended Action Staff recommends that the City Council: 1. Award Bid #4158 to Airwave Communications Enterprises, a California-based company, to provide labor and equipment associated with up-fitting Police Department vehicles. 2. Authorize the City Manager to negotiate and execute a contractual services agreement with Airwave Communications Enterprises, in an amount not to exceed $792,000 for one year, with two additional one-year renewal options in the amount of $792,000, on the same terms and conditions for a total amount not to exceed $2,376,000 over a three-year period, with future year funding contingent upon Council budget approval. Executive Summary The City replaces vehicles that have reached the end of their useful life through the Equipment Replacement Program. Potentially, 176 Police Department vehicles would be replaced during the next three years at approximately $13,500 per vehicle in upfitting costs based on the bids received. Each vehicle would be equipped with various standardized and specialized equipment. In June 2014, the City solicited bids to provide labor and equipment associated with up-fitting Police Department vehicles. After reviewing the two bids received, staff recommends Airwave Communications Enterprises as the best bidder to provide labor and equipment associated with up-fitting Police Department vehicles for a total amount not to exceed $792,000 for FY 2014-15. Background The City replaces vehicles that have reached the end of their useful life through the vehicle replacement program. As a part of this program, the Police Department could potentially replace 176 vehicles during the next three years. Each vehicle would be equipped with emergency lighting and warning equipment and a police radio. Some vehicles would be equipped with prisoner transport systems and additional equipment 1

such as a mobile computer and camera system.

The equipment installed in each

vehicle varies depending on the purpose of the vehicle.

Equipment from existing

vehicles would be transferred to new vehicles when possible.

The process of equipping police vehicles is complex since there is significant equipment that must be installed to manufacturer specifications in order to operate properly in a rigorous mobile environment.

Sensitive computer and camera equipment must be

installed in a highly specialized manner in order to properly operate and last throughout its scheduled life cycle. Staff recommends contracting vehicle up-fitting services for the following reasons: •

If this service were to be provided by in-house staff, three full-time mechanics would need to be hired to complete the current level of up-fitting services provided for Police Department vehicles per year. Up-fitting services are required on a continuous basis, as older vehicles reach the end of their useful life. An average of 59 new vehicles per year would be purchased which would require up-fitting services. The life cycles for Police Department vehicles are between 48 years.

•

An additional 1,200 square feet of work space per mechanic would be required to perform up-fitting services safely and efficiently, which includes 500 square feet for lifts and vehicle service area and 700 square feet for service equipment and storage of internal vehicle components during the up-fitting process.

•

This service requires installation equipment that is not available within City facilities and would cost approximately $61,780 to purchase and maintain.

•

The warranty on all equipment is only valid if it has been installed to manufacturer specifications by a certified technician. City staff does not have the necessary certifications to install Motorola, Panasonic or LoJack equipment. Five mechanics would need to complete a 16-hour training course per manufacturer to obtain certifications which would cost approximately $3,200 per mechanic, per manufacturer for an estimated total of $48,000. As new equipment models are released, additional training would be required to maintain certification.

Over the last three fiscal years, $288,932 was spent on contractor labor (4,698 hours at $61.50 per hour) to up-fit Police Department vehicles and $459,787 for parts (39% labor and 61% parts) for a total of $748,719. The equivalent cost of labor to up-fit Police Department vehicles in-house would have been $699,720 and the cost of parts would 2

have been similar, approximately $459,787 for a total of $1,159,507. Contracted services are 35% more cost effective than in-house labor.

Discussion Vendor Selection In June 2014, the City published Notices Inviting Bids to provide labor and equipment associated with up-fitting Police Department vehicles, as required by the Police Department and Fleet Management Division, in accordance with City specifications. The bid was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 343 vendors were notified and 19 vendors downloaded the bid. Two bids were received and publicly opened on June 18, 2014 per Attachment A.

Bids were evaluated on the criteria in SMMC 2.24.072, including price, ability to deliver, completeness of bid response, past experience, and quality of product. Airwave Communications Enterprises was the only bidder to provide a complete bid response including pricing for both labor and equipment as requested in the bid.

The other

bidder, Adamson Police Products, did not provide pricing for installation/labor. Based on these criteria, Airwave Communications Enterprises is recommended as the best bidder to provide labor and equipment associated with up-fitting Police Department vehicles. Airwave Communications Enterprises provides the level of experience desired, received positive references, and currently provides exemplary labor and equipment associated with up-fitting Police Department vehicles.

The services would be contracted for one-year initial term with options for two-additional one-year renewals that would be evaluated each year. The City would have the option of terminating the agreement within 10-days’ written notice to the contractor.

3

Financial Impacts & Budget Actions The contractual services agreement to be awarded to Airwave Communications Enterprises is for an amount not to exceed $792,000 for FY 2014-15, with two additional one-year renewal options at the same price, terms and conditions, for a total amount not to exceed $2,376,000 over a three-year period. Funds in the amount of $792,000 for the first year are available in the FY 2014-15 Capital Improvement Program budget in account C540167.589200.

Budget authority for subsequent budget years will be

requested in each budget for Council approval. Future funding is contingent upon Council approval and budget adoption. Prepared by: Heidi Duran, Administrative Analyst Approved:

Forwarded to Council:

Martin Pastucha Director of Public Works

Rod Gould City Manager

Attachment: A – Bid Summary

4

Bid No. 4158 Bid Description: Provide labor and equipment associated with upfitting police department vehicles, as required by the Police Department and Fleet Management division.

ATTACHMENT A Airwave Communications Ent.

Adamson Police Products

Commerce, California

Hayward, California

Bid Closing Date: June 18, 2014 Pricing

Response Percent discount off of MFR price list

Price list(s) referenced

Hourly labor rate for installation

Federal signal valor light bar

25%

$2,178.00

3 hours at $65.00

Federal signal smartsiren platinum controller

25%

Federal signal siren amplifier 80K

25%

Federal signal siren speaker (two) and bracket

25%

Brand/ Description

Federal signal richochet power supply

25% (N/A)

Federal signal park kill module

25%

Go-Rhino push bumpers

25%

Motorola APX 650 (City shall furnish radio transceiver and control head- vendor shall furnish and install all cabling, microphones, speakers, clips, etc)

25%

Troy full-size trunk tray and equipment guard

25%

Troy half-trunk organizer box

20%

Troy 14" space saver center console and dual-cup beverage holder

20%

Whelen red/blue mirror lights

25%

Troy 14" space saver center console and dual-cup beverage holder

20%

Talley antennas (three)- UHF, 800MHZ and 2.4 GHZ

25%

Sound- off third brake light with shroud

30%

Sound-off rear window white led lights

30%

Sound-off red/white led dome lights

30%

Santa Cruz large gun lock, small gun lock and fun butt plates

25%

Pro-gard gun lock mounting brackets

25%

Pro- gard P1500F prisoner transport system

25%

Havis shield dash fixed mount for MW800 for Crown Victoria

25%

4 hours at $65.00 per hour 2 hours @ $65.00 $445.00 per hour 1 hour @ $65.00 $279.00/ $33.00 per hour N/A N/A 1 hour @ $65.00 $35.15 per hour 2 hours @ $65.00 $217.00/$276.21 per hour

Response If applicable State labor guides used

$985.00

Installation Kit $375.00

4 hours @ $65.00 per hour

1 hour at $65.00 per hour 1 hour at $65.00 $353.40 per hour 2 hours @ $65.00 $387.00/ $38.00 per hour 2 hours @ $65.00 $68.92 ea per hour 2 hours @ $65.00 $293.00 per hour 1 hour at $65.00 $28.75 ea per hour 1 hour at $65.00 $231.00 per hour 1 hour at $65.00 $72.00 ea per hour 0.5 hour at $65.00 $48.75 per hour SC-1 $74.00 AR1 hour at $65.00 $108.75 1901per hour $26.00 1 hour at $65.00 $46.92 ea x2 per hour 2 hours @ $65.00 $1,850.00 per hour 1 hour at $65.00 $118.87 per hour

N/A

State Brand(s) offered

Percent discount off of MFR price list

Price list(s) referenced

Hourly labor rate for installation

If applicable State labor guides used

State Brand(s) offered

Federal Signal

39%

2014

No Bid

No Bid

As specified

Federal Signal

39%

2014

No Bid

No Bid

As specified

Federal Signal

39%

2014

No Bid

No Bid

As specified

Federal Signal

39%

2014

No Bid

No Bid

As specified

N/A

39%

2014

No Bid

No Bid

As specified

Federal Signal

39%

2014

No Bid

No Bid

As specified

2014

No Bid

No Bid

As specified

Crowing Explorer Motorola installation guidelines

$327.00/ $65.00

N/A

Motorolla

No Bid

2014

No Bid

No Bid

As specified

Troy

30%

2014

No Bid

No Bid

As specified

Troy

30%

2014

No Bid

No Bid

As specified

Troy

30%

2014

No Bid

No Bid

As specified

Federal Signal

41%

2014

No Bid

No Bid

As specified

Troy

30%

2014

No Bid

No Bid

As specified

Antennex

No Bid

2014

No Bid

No Bid

As specified

Sound Off

40%

2014

No Bid

No Bid

As specified

Sound Off

40%

2014

No Bid

No Bid

As specified

Sound Off

40%

2014

No Bid

No Bid

As specified

Santa Cruz Locks

30%

2014

No Bid

No Bid

As specified

Pro-Gard

30%

2014

No Bid

No Bid

As specified

Crow Vic Priced

30%

2014

No Bid

No Bid

As specified

Panasonic Havis

35%

2014

No Bid

No Bid

As specified

Bid No. 4158 Bid Description: Provide labor and equipment associated with upfitting police department vehicles, as required by the Police Department and Fleet Management division.

ATTACHMENT A Airwave Communications Ent.

Adamson Police Products

Commerce, California

Hayward, California

Bid Closing Date: June 18, 2014 Pricing

Response Percent discount off of MFR price list

Price list(s) referenced

Havis shield MW800 mount plate

25%

$38.02

Havis shield quick release for keyboard

25%

$63.47

Havis shield telescoping computer mounting

25%

$103.16

Newmar start guard

25%

$235.00

25%

$675.00

Brand/ Description

Patrol power wiring harness kit for Ford Police interceptor and Ford utility Police inteceptor

Description Pick-up and delivery service one way Pick-up and delivery service round trip Parts and materials mark-up/discount off current MFR's price list for items not listed above

Hourly labor rate for installation

Response If applicable State labor guides used

0.5 hour at $65.00 per hour 0.5 hour at $65.00 per hour 0.5 hour at $65.00 per hour 2 hours @ $65.00 per hour 4 hours @ $65.00 per hour

State Brand(s) offered

Percent discount off of MFR price list

Price list(s) referenced

Hourly labor rate for installation

If applicable State labor guides used

State Brand(s) offered

Panasonic Havis

35%

2014

No Bid

No Bid

As specified

Panasonic Havis

35%

2014

No Bid

No Bid

As specified

Panasonic Havis

35%

2014

No Bid

No Bid

As specified

Newmar

No Bid

2014

No Bid

No Bid

As specified

Son Cell

No Bid

2014

No Bid

No Bid

As specified

Rate

Comments

N/A N/A Mark-up 20% above cost inc. shipping

Contract States not applicable Contract States not applicable

Rate No Bid No Bid

Comments

All cost include shipping and handling

No Bid

Supplemental Questions

Response

Response

Please provide the warranty options for the equipment and services associated with this bid.

All manufacture warranty will apply on all products installed 1 year no cost warranty on all labor and installation parts

5 years on all LED lighting

Do you come into City of Santa Monicto conduct business? Do you deliver parts and/or products in your own company

No No

No No

Can comply

Can comply

Response

Response

Net 30 days Complete Contract is subject to the Living Wage Ordinance No Presence Same price, terms, and conditions offered Same price, terms, and conditions offered

No Presence 10% Increase of previous year's price for all areas or options 10% Increase of previous year's price for all areas or options

Will you be able to comply with the insurance requirements?

Description Payment Terms Oaks Initiative Disclosure Form Living Wage Ordinance Arizona Renewal

Period 2 Period 3

Item 3-J 10/28/14 (NOT APPROVED) CITY OF SANTA MONICA HOUSING AUTHORITY MEETING MINUTES FEBRUARY 11, 2014 A special meeting of the Santa Monica Housing Authority was called to order by Chair O’Connor at 7:25 p.m., on Tuesday, February 11, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pam O’Connor Vice Chair Terry O’Day Commissioner Gleam Davis Commissioner Robert T. Holbrook Commissioner Kevin McKeown Commissioner Tony Vazquez Commissioner Ted Winterer

Also Present:

Secretary Rod Gould Authority Attorney Marsha Jones Moutrie Authority Clerk Sarah P. Gorman

CONVENE

On order of the Chair, the Housing Authority convened to a special joint meeting with the City Council and Redevelopment Successor Agency at 7:25 p.m., with all members present.

STAFF ADMINISTRATIVE ITEMS: SPECIAL JOINT MEETING

8-A: Financial Status Update and FY 2013-14 Midyear Budget -recommendation that the City Council, Housing Authority, and Successor Agency to the Santa Monica Redevelopment Agency: appropriate FY 2013-14 midyear expenditure and revenue budget adjustments and approve corresponding adjustments to the FY 2014-15 budget plan as detailed in Attachment A to the report; recommends that the City Council: receive the FY 2013-14 through FY 2017-18 Financial Status Update; adopt a policy to set aside funds to be used towards payments to CalPERS to reduce the City’s unfunded retirement liability; adopt Resolution No. 10799 (CCS) entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR ADMINISTRATIVE PROJECT MANAGER, AIRPORT MANAGER, ASSISTANT TO THE CITY MANAGER, CHIEF FINANCIAL OFFICER, CODE ENFORCEMENT MANAGER, CODE ENFORCEMENT OFFICER I, CODE ENFORCEMENT OFFICER II, CODE ENFORCEMENT

FINANCIAL STATUS UPDATE

1

February 11, 2014

SPECIALIST, CODE ENFORCEMENT SUPERVISOR, COMMUNICATIONS CENTER ADMINISTRATOR, DEPUTY CITY MANAGER, OFFICE MANAGER TO THE CITY MANAGER, PUBLIC SAFETY DISPATCHER, DIRECTOR OF PUBLIC WORKS/AIRPORT DIRECTOR, FORENSICS SERVICES ADMINISTRATOR, GRAPHIC DESIGN ASSISTANT, JAIL SERVICES ADMINISTRATOR, LEAD ANIMAL CONTROL OFFICER, LEAD CODE ENFORCEMENT OFFICER, LEAD PUBLIC SERVICES OFFICER, LEAD SOFTWARE SYSTEMS ANALYST-PERMITTING, NETWORK CONSTRUCTION ASSISTANT, PARKING MANAGER, POLICE RECORDS ADMINISTRATOR, POLICE SERVICES ADMINISTRATOR, PUBLIC SERVICES OFFICER, PUBLIC SERVICES OFFICER SUPERVISOR, PUBLIC WORKS CONSTRUCTION SPECIALIST, SOFTWARE SYSTEMS ANALYST–PERMITTING, URBAN FOREST CONTRACT SUPERVISOR, WATER PRODUCTION AND TREATMENT PLANT SUPERVISOR, ZERO WASTE ASSISTANT”; approve the position and classification changes detailed in Attachment C; adopt Resolution No. 10800 (CCS) entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REVISING PORTIONS OF THE CITY’S SCHEDULE OF VARIOUS PERMIT AND USER FEES IN THE PLANNING AND COMMUNITY DEVELOPMENT, PUBLIC WORKS, POLICE, FIRE, BIG BLUE BUS, FINANCE, COMMUNITY AND CULTURAL SERVICES, AND LIBRARY DEPARTMENTS” of the City of Santa Monica setting various rates and fees in Attachment D; authorize the City Manager to accept a grant award in the amount of $469,971 from the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the Federal Transportation Administration (FTA) New Freedom Funds for Door Through Door services for older adults and persons with disabilities, and to accept all grant renewals; authorize the City Manager to negotiate and execute grant Agreement No. 9875 (CCS) with WISE & Healthy Aging, a California-based not-for-profit corporation, in an amount not to exceed $30,132 for the provision of New Freedom-funded attendant services for the Door Through Door program with future year funding contingent on Council budget approval; and receive public comment on Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) Program funds, was presented. Member of the public Jerry Rubin spoke generally in favor of the recommended action. Member of the public Denise Barton spoke generally in opposition to the recommended action.

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February 11, 2014

Motion by Council/Agency/Authority member Winterer, seconded by Mayor Pro Tem/Chair Pro Tem/Vice-Chair O’Day, to move the staff recommendation, reading resolutions by title only and waiving further reading thereof, with additional direction to include the $15.50 living hourly wage in requests for interest. Motion to amend by Council/Agency/Authority member McKeown, to leave the unfilled position in the City Clerk’s office as is, and add the half position as needed to the City Manager’s office. The motion was friendly to the maker and the seconder. The motion was approved by the following vote: AYES:

Council/Agency/Authority members Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem/Chair Pro Tem/Vice-Chair O’Day, Chair/Mayor O’Connor NOES: None ABSENT: None ADJOURNMENT:

On order of the Chair, the special Housing Authority meeting was adjourned at 8:13 p.m. ATTEST:

APPROVED:

Sarah P. Gorman Authority Clerk

Pam O’Connor Chair

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February 11, 2014

(NOT APPROVED) CITY OF SANTA MONICA HOUSING AUTHORITY MEETING MINUTES JUNE 24, 2014 A special meeting of the Santa Monica Housing Authority was called to order by Chair O’Connor at 10:36 p.m., on Tuesday, June 24, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pam O’Connor Vice Chair Terry O’Day Commissioner Gleam Davis Commissioner Robert T. Holbrook Commissioner Kevin McKeown Commissioner Tony Vazquez Commissioner Ted Winterer

Also Present:

Secretary Rod Gould Authority Attorney Marsha Jones Moutrie Authority Clerk Sarah P. Gorman

CONVENE

On order of the Chair, the Housing Authority convened to a special joint meeting with the City Council and Parking Authority at 10:36 p.m., with all members present.

REPORT ON MEETING COMPENSATION

Pursuant to State law, Authority Clerk Sarah Gorman announced respectively that Authority Members will receive $50 for meeting with the City Council and Parking Authority.

PUBLIC HEARINGS: 2013-15 BIENNIAL BUDGET

9-A: Adoption of the Second Year of the Fiscal Year (FY) 2013-15 Biennial Budget, Adoption of the First Year and Approval of the Second Year of the FY 2014-16 Biennial Capital Improvement Program Budget, and Approval of FY 2013-14 Year-End Budget Changes – recommendation that the City Council, Housing Authority, and Parking Authority adopt Resolution No. 10815 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; adopt Resolution No. 89 (HAS) entitled, “ A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND 1

June 24, 2014

ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; adopt Resolution No. 254 (PAS) entitled, “A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; and approve certain changes to the FY 2013-14 Revised Budget, as listed in Attachment B2. Staff also recommends that the City Council: adopt Resolution No. 10816 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REVISING PORTIONS OF THE CITY’S SCHEDULE OF VARIOUS PERMIT AND USER FEES IN THE PLANNING AND COMMUNITY DEVELOPMENT, PUBLIC WORKS, POLICE, FIRE, RECORDS AND ELECTION SERVICES, FINANCE, COMMUNITY AND CULTURAL SERVICES, AND LIBRARY DEPARTMENTS”; adopt Resolution No. 10817 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING FORTH THE ADMINISTRATIVE CITATION SCHEDULE OF FINES FOR CERTAIN VIOLATIONS OF THE SANTA MONICA MUNICPAL CODE, SETTING CIVIL PENALTIES FOR PARKING VIOLATIONS AND FOR THE LATE PAYMENT OF PENALTIES, AND SETTING FINES FOR POLICE AND FIRE DEPARTMENT RESPONSES TO EXCESSIVE FALSE FIRE ALARMS”; adopt Resolution No. 10818 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR ADMINISTRATIVE AIDE, ADMINISTRATIVE INTERN, AIRPORT OPERATIONS ANALYST, AIRPORT OPERATIONS SPECIALIST, ASSISTANT CITY TREASURER, ASSOCIATE PLANNER, BROADBAND PROGRAM MANAGER, COMMUNICATIONS CENTER SUPERVISOR, CROSSING GUARD, EXECUTIVE ADMINISTRATOR TO THE CITY MANAGER, FACILITIES ATTENDANT, FARMERS' MARKET ATTENDANT, LABORER TRAINEE, LEAD SYSTEMS ANALYST - PERMITTING SYSTEMS, LIBRARY PAGE, MOTOR COACH OPERATOR TRAINEE, MOTOR COACH OPERATOR (LATERAL TRANSFER), POLICE CADET, PRINCIPAL ADMINISTRATIVE ANALYST - INFORMATION SYSTEMS, PRINCIPAL NETWORK ENGINEER, PRINCIPAL PLANNER, RECYCLING ASSISTANT, SENIOR ADMINISTRATIVE ANALYST - LIBRARY FISCAL SERVICES COORDINATOR, SENIOR PLANNER, SENIOR TRANSIT MAINTENANCE WORKER, SOFTWARE SYSTEMS ANALYST - PERMITTING SYSTEMS, SPECIAL PROJECTS AND COMMUNICATION ADMINISTRATOR, 2

June 24, 2014

TRADES INTERN, TRANSIT FACILITIES MAINTENANCE SUPERVISOR, URBAN FOREST SUPERVISOR, VENUE SERVICES ASSISTANT, VIDEO INTERN, AND VIDEO TECHNICIAN I”; adopt Resolution No. 10819 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2014-15”; approve the Proposed FY 2014-15 Human Services Grants Program (HSGP), incorporating the proposed Fiscal Year 2014-15 funding levels (Attachment G1); approve the Proposed Fiscal Year 2014-15 Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits, incorporating the proposed funding levels (Attachment G2); authorize the City Manager to negotiate and execute Contract No. 9925 (CCS) with Santa Monica Convention & Visitors Bureau, a California-based company, in an amount not to exceed $377,195 to administer a one-year shuttle program with four additional one-year grants in the amount of $272,000, for a total amount not to exceed $649,195 over a five-year period, with future year funding contingent on Council budget approval; accept Federal Supportive Housing Program (SHP) Renewal Grant funds, now known as Continuum of Care (CoC) funds, from the Los Angeles Homeless Services Authority (LAHSA) in the amount of $389,215 for Coordinated Case Management; accept Federal Supportive Housing Program (SHP) Renewal Grant funds from the U.S. Department of Housing and Urban Development (HUD) in the amount of $446,822 for the Serial Inebriate Program; authorize the City Manager to accept a grant awarded in the amount of $398,064 from CalRecycle for a program to improve illegal dumping response time and maintain clean alleys; allocate $190,000 of Council discretionary funds to the Pico Youth and Family Center (PYFC) and authorize the City Manager to negotiate and execute a one year contract with the PYFC, a California non-profit corporation, for the operation of a drop-in and referral center; and allocate $92,688 of Council discretionary funds to Hospitality Training Academy (HTA) and authorize the City Manager to negotiate and execute a one-year contract with HTA, a California non-profit corporation, to provide assessment and employment assistance to 50 program participants, was presented. Members of the public Jerry Rubin and Melanie Luthern spoke generally in favor of the recommended action. Members of the public Denise Barton, Nikohl Vandel, Laura Ceballos, Clinton Clad-Johnson, Monica Ramos, Esteban Ramos, Liliana Ramos, Manuel Bravo,Marcus Tappan, Alyssa Cornejo, Eduardo Martinez, Jazmine Nieto, Marcos Santana, Aouro Santos, Ian Glover, Maria Loya, Ruben Pacheco, Martin Salinas, Silvia Salinas, Laura Wilson, Jessie Morales, Dhruva Aliman, Ronald Frost, Denise Neal, Cheryl Rich, Adina Forman, and Diana M spoke generally in opposition to the recommended 3

June 24, 2014

action. Motion by Council/Authority member Vazquez, seconded by Council/Authority member Winterer, to hear a late submitted speaker card. The motion was approved by the following vote: AYES:

Council/Authority Members Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None Considerable discussion ensued on topics including, but not limited to funding of the Pico Youth & Family Center and use of the Council contingency funds. Motion by Councilmember McKeown, seconded by Mayor O’Connor, to approve the budget as recommended with the council discretionary contingency funds for the Pico Youth and Family Center for $190,000, the Hospitality Training Academy for $92,688, the Safe Routes to Schools for $67,771, adding to the Council workplan to include a review of trees on private property, review of multi modal parking downtown, low income resident parking, and review of situations with properties that have been subject to the Ellis Act. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Mayor/Chair O’Connor, seconded by Council/Authority member Winterer, to adopt a Resolution of the City Council, Housing Authority and Parking Authority of the City of Santa Monica adopting the second year of the Fiscal Year 2013-15 Biennial Budget and adopting the first year and approving the second year of the Fiscal Year 2014-16 Biennial Capital Improvement Program Budget at Attachment A1, as amended by Attachment B1. The motion was approved by the following vote: AYES:

Council/Authority Members McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None

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June 24, 2014

Motion by Council/Authority member Holbrook, seconded by Mayor Pro Tem/Chair Pro Tem O’Day, for the City Council, Housing Authority, and Parking Authority to approve certain changes to the FY 2013-14 Revised Budget, as listed in Attachment B2. The motion was approved by the following vote: AYES:

Council/Authority Members Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to adopt to a Resolution of the City of Santa Monica revising portions of the City’s schedule of various permit and user fees in the Planning and Community Development, Public Works, Police, Fire, Records and Election Services, Finance, Community and Cultural Services, and Library departments (Attachment D1). The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Vazquez, seconded by Mayor Pro Tem O’Day, to adopt a Resolution of the City of Santa Monica setting forth the administrative citation schedule of fines for certain violations of the Santa Monica Municipal Code, setting civil penalties for parking violations and for the late payment of penalties, and setting fines for Police and Fire Department responses to excessive false fire alarms (Attachment D3). The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Holbrook, seconded by Councilmember Winterer, to motion to adopt a Resolution of the City of Santa Monica establishing new classifications and adopting salary rates for various positions detailed in Attachment E1, and approve the position and classification changes detailed in Attachment E2; and adopt a Resolution of the City of Santa Monica establishing the Gann appropriations limit for Fiscal Year 2014-15 (Attachment F). The motion was approved by the 5

June 24, 2014

following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to approve the Proposed FY 2014-15 Human Services Grants Program (HSGP), incorporating the proposed Fiscal Year 2014-15 funding levels (Attachment G1); and the Proposed Fiscal Year 2014-15 Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits, incorporating the proposed funding levels (Attachment G2). The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Mayor Pro Tem O’Day, seconded by Councilmember Vazquez, to authorize the City Manager to negotiate and execute a contract with Santa Monica Convention & Visitors Bureau, a California-based company, in an amount not to exceed $377,195 to administer a one-year shuttle program with four additional one-year grants in the amount of $272,000, for a total amount not to exceed $649,195 over a five-year period, with future year funding contingent on Council budget approval. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Vazquez, seconded by Councilmember Winterer, to accept Federal Supportive Housing Program (SHP) Renewal Grant funds, now known as Continuum of Care (CoC) funds, from the Los Angeles Homeless Services Authority (LAHSA) in the amount of $389,215 for Coordinated Case Management; Federal Supportive Housing Program (SHP) Renewal Grant funds from the U.S. Department of Housing and Urban Development (HUD) in the amount of $446,822 for the Serial Inebriate Program; and a grant awarded in the amount of $398,064 from CalRecycle for a program to improve illegal dumping response time and maintain clean alleys. The motion was approved by the following vote:

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June 24, 2014

AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to allocate $190,000 of Council discretionary funds to the Pico Youth and Family Center (PYFC) and authorize the City Manager to negotiate and execute a one-year contract with the PYFC, a California non-profit corporation, for the operation of a drop-in and referral center. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Vazquez, seconded by Councilmember Winterer, to allocate $92,688 of Council discretionary funds to Hospitality Training Academy (HTA) and authorize the City Manager to negotiate and execute a one-year contract with HTA, a California non-profit corporation, to provide assessment and employment assistance to 50 program participants. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None ADJOURNMENT:

On order of the Chair, the special Housing Authority meeting was adjourned at 12:09 a.m. ATTEST:

APPROVED:

Sarah P. Gorman Authority Clerk

Pam O’Connor Chair

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June 24, 2014

(NOT APPROVED) CITY OF SANTA MONICA PARKING AUTHORITY MEETING MINUTES JUNE 24, 2014 A special meeting of the Santa Monica Parking Authority was called to order by Chair O’Connor at 10:36 p.m., on Tuesday, June 24, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pam O’Connor Chair Pro Tem Terry O’Day Authority Member Gleam Davis Authority Member Robert T. Holbrook Authority Member Kevin McKeown Authority Member Tony Vazquez Authority Member Ted Winterer

Also Present:

Executive Director Rod Gould Authority Attorney Marsha Jones Moutrie Authority Clerk Sarah P. Gorman

CONVENE

On order of the Chair, the Parking Authority convened to a special joint meeting with the City Council and Housing Authority at 10:36 p.m., with all members present.

REPORT ON MEETING COMPENSATION

Pursuant to State law, Authority Clerk Sarah Gorman announced respectively that Authority Members will receive $50 for meeting with the City Council and Parking Authority.

PUBLIC HEARINGS: 2013-15 BIENNIAL BUDGET

9-A: Adoption of the Second Year of the Fiscal Year (FY) 2013-15 Biennial Budget, Adoption of the First Year and Approval of the Second Year of the FY 2014-16 Biennial Capital Improvement Program Budget, and Approval of FY 2013-14 Year-End Budget Changes – recommendation that the City Council, Housing Authority, and Parking Authority adopt Resolution No. 10815 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; adopt Resolution No. 89 (HAS) entitled, “ A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND 1

June 24, 2014

ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; adopt Resolution No. 254 (PAS) entitled, “A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF SANTA MONICA ADOPTING THE SECOND YEAR (FISCAL YEAR 2014-15) OF THE FISCAL YEAR 2013-15 BIENNIAL BUDGET AND ADOPTING ITS CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2014-15 AND APPROVING ITS BUDGET FOR FISCAL YEAR 2015-16”; and approve certain changes to the FY 2013-14 Revised Budget, as listed in Attachment B2. Staff also recommends that the City Council: adopt Resolution No. 10816 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REVISING PORTIONS OF THE CITY’S SCHEDULE OF VARIOUS PERMIT AND USER FEES IN THE PLANNING AND COMMUNITY DEVELOPMENT, PUBLIC WORKS, POLICE, FIRE, RECORDS AND ELECTION SERVICES, FINANCE, COMMUNITY AND CULTURAL SERVICES, AND LIBRARY DEPARTMENTS”; adopt Resolution No. 10817 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING FORTH THE ADMINISTRATIVE CITATION SCHEDULE OF FINES FOR CERTAIN VIOLATIONS OF THE SANTA MONICA MUNICPAL CODE, SETTING CIVIL PENALTIES FOR PARKING VIOLATIONS AND FOR THE LATE PAYMENT OF PENALTIES, AND SETTING FINES FOR POLICE AND FIRE DEPARTMENT RESPONSES TO EXCESSIVE FALSE FIRE ALARMS”; adopt Resolution No. 10818 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR ADMINISTRATIVE AIDE, ADMINISTRATIVE INTERN, AIRPORT OPERATIONS ANALYST, AIRPORT OPERATIONS SPECIALIST, ASSISTANT CITY TREASURER, ASSOCIATE PLANNER, BROADBAND PROGRAM MANAGER, COMMUNICATIONS CENTER SUPERVISOR, CROSSING GUARD, EXECUTIVE ADMINISTRATOR TO THE CITY MANAGER, FACILITIES ATTENDANT, FARMERS' MARKET ATTENDANT, LABORER TRAINEE, LEAD SYSTEMS ANALYST - PERMITTING SYSTEMS, LIBRARY PAGE, MOTOR COACH OPERATOR TRAINEE, MOTOR COACH OPERATOR (LATERAL TRANSFER), POLICE CADET, PRINCIPAL ADMINISTRATIVE ANALYST - INFORMATION SYSTEMS, PRINCIPAL NETWORK ENGINEER, PRINCIPAL PLANNER, RECYCLING ASSISTANT, SENIOR ADMINISTRATIVE ANALYST - LIBRARY FISCAL SERVICES COORDINATOR, SENIOR PLANNER, SENIOR TRANSIT MAINTENANCE WORKER, SOFTWARE SYSTEMS ANALYST - PERMITTING SYSTEMS, 2

June 24, 2014

SPECIAL PROJECTS AND COMMUNICATION ADMINISTRATOR, TRADES INTERN, TRANSIT FACILITIES MAINTENANCE SUPERVISOR, URBAN FOREST SUPERVISOR, VENUE SERVICES ASSISTANT, VIDEO INTERN, AND VIDEO TECHNICIAN I”; adopt Resolution No. 10819 (CCS) entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2014-15”; approve the Proposed FY 2014-15 Human Services Grants Program (HSGP), incorporating the proposed Fiscal Year 2014-15 funding levels (Attachment G1); approve the Proposed Fiscal Year 2014-15 Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits, incorporating the proposed funding levels (Attachment G2); authorize the City Manager to negotiate and execute Contract No. 9925 (CCS) with Santa Monica Convention & Visitors Bureau, a California-based company, in an amount not to exceed $377,195 to administer a one-year shuttle program with four additional one-year grants in the amount of $272,000, for a total amount not to exceed $649,195 over a five-year period, with future year funding contingent on Council budget approval; accept Federal Supportive Housing Program (SHP) Renewal Grant funds, now known as Continuum of Care (CoC) funds, from the Los Angeles Homeless Services Authority (LAHSA) in the amount of $389,215 for Coordinated Case Management; accept Federal Supportive Housing Program (SHP) Renewal Grant funds from the U.S. Department of Housing and Urban Development (HUD) in the amount of $446,822 for the Serial Inebriate Program; authorize the City Manager to accept a grant awarded in the amount of $398,064 from CalRecycle for a program to improve illegal dumping response time and maintain clean alleys; allocate $190,000 of Council discretionary funds to the Pico Youth and Family Center (PYFC) and authorize the City Manager to negotiate and execute a one year contract with the PYFC, a California non-profit corporation, for the operation of a drop-in and referral center; and allocate $92,688 of Council discretionary funds to Hospitality Training Academy (HTA) and authorize the City Manager to negotiate and execute a one-year contract with HTA, a California non-profit corporation, to provide assessment and employment assistance to 50 program participants, was presented. Members of the public Jerry Rubin and Melanie Luthern spoke generally in favor of the recommended action. Members of the public Denise Barton, Nikohl Vandel, Laura Ceballos, Clinton Clad-Johnson, Monica Ramos, Esteban Ramos, Liliana Ramos, Manuel Bravo,Marcus Tappan, Alyssa Cornejo, Eduardo Martinez, Jazmine Nieto, Marcos Santana, Aouro Santos, Ian Glover, Maria Loya, Ruben Pacheco, Martin Salinas, Silvia Salinas, Laura Wilson, Jessie 3

June 24, 2014

Morales, Dhruva Aliman, Ronald Frost, Denise Neal, Cheryl Rich, Adina Forman, and Diana M spoke generally in opposition to the recommended action. Motion by Council/Authority Member Vazquez, seconded by Council/Authority Member Winterer, to hear a late submitted speaker card. The motion was approved by the following vote: AYES:

Council/Authority Members Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None Considerable discussion ensued on topics including, but not limited to funding of the Pico Youth & Family Center and use of the Council contingency funds. Motion by Councilmember McKeown, seconded by Mayor O’Connor, to approve the budget as recommended with the council discretionary contingency funds for the Pico Youth and Family Center for $190,000, the Hospitality Training Academy for $92,688, the Safe Routes to Schools for $67,771, adding to the Council workplan to include a review of trees on private property, review of multi modal parking downtown, low income resident parking, and review of situations with properties that have been subject to the Ellis Act. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Mayor/Chair O’Connor, seconded by Council/Authority Member Winterer, to adopt a Resolution of the City Council, Housing Authority and Parking Authority of the City of Santa Monica adopting the second year of the Fiscal Year 2013-15 Biennial Budget and adopting the first year and approving the second year of the Fiscal Year 2014-16 Biennial Capital Improvement Program Budget at Attachment A1, as amended by Attachment B1. The motion was approved by the following vote:

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June 24, 2014

AYES:

Council/Authority Members McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None Motion by Council/Authority Member Holbrook, seconded by Mayor Pro Tem O’Day, for the City Council, Housing Authority, and Parking Authority to approve certain changes to the FY 2013-14 Revised Budget, as listed in Attachment B2. The motion was approved by the following vote: AYES:

Council/Authority Members Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor/Chair Pro Tem O’Day, Mayor/Chair O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to adopt to a Resolution of the City of Santa Monica revising portions of the City’s schedule of various permit and user fees in the Planning and Community Development, Public Works, Police, Fire, Records and Election Services, Finance, Community and Cultural Services, and Library departments (Attachment D1). The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Vazquez, seconded by Mayor Pro Tem O’Day, to adopt a Resolution of the City of Santa Monica setting forth the administrative citation schedule of fines for certain violations of the Santa Monica Municipal Code, setting civil penalties for parking violations and for the late payment of penalties, and setting fines for Police and Fire Department responses to excessive false fire alarms (Attachment D3). The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None

5

June 24, 2014

Motion by Councilmember Holbrook, seconded by Councilmember Winterer, to motion to adopt a Resolution of the City of Santa Monica establishing new classifications and adopting salary rates for various positions detailed in Attachment E1, and approve the position and classification changes detailed in Attachment E2; and adopt a Resolution of the City of Santa Monica establishing the Gann appropriations limit for Fiscal Year 2014-15 (Attachment F). The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to approve the Proposed FY 2014-15 Human Services Grants Program (HSGP), incorporating the proposed Fiscal Year 2014-15 funding levels (Attachment G1); and the Proposed Fiscal Year 2014-15 Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits, incorporating the proposed funding levels (Attachment G2). The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Mayor Pro Tem O’Day, seconded by Councilmember Vazquez, to authorize the City Manager to negotiate and execute a contract with Santa Monica Convention & Visitors Bureau, a California-based company, in an amount not to exceed $377,195 to administer a one-year shuttle program with four additional one-year grants in the amount of $272,000, for a total amount not to exceed $649,195 over a five-year period, with future year funding contingent on Council budget approval. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None

6

June 24, 2014

Motion by Councilmember Vazquez, seconded by Councilmember Winterer, to accept Federal Supportive Housing Program (SHP) Renewal Grant funds, now known as Continuum of Care (CoC) funds, from the Los Angeles Homeless Services Authority (LAHSA) in the amount of $389,215 for Coordinated Case Management; Federal Supportive Housing Program (SHP) Renewal Grant funds from the U.S. Department of Housing and Urban Development (HUD) in the amount of $446,822 for the Serial Inebriate Program; and a grant awarded in the amount of $398,064 from CalRecycle for a program to improve illegal dumping response time and maintain clean alleys. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember McKeown, seconded by Mayor Pro Tem O’Day, to allocate $190,000 of Council discretionary funds to the Pico Youth and Family Center (PYFC) and authorize the City Manager to negotiate and execute a one-year contract with the PYFC, a California non-profit corporation, for the operation of a drop-in and referral center. The motion was approved by the following vote: AYES:

Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None Motion by Councilmember Vazquez, seconded by Councilmember Winterer, to allocate $92,688 of Council discretionary funds to Hospitality Training Academy (HTA) and authorize the City Manager to negotiate and execute a one-year contract with HTA, a California non-profit corporation, to provide assessment and employment assistance to 50 program participants. The motion was approved by the following vote: AYES:

Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Mayor Pro Tem O’Day, Mayor O’Connor NOES: None ABSENT: None

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June 24, 2014

ADJOURNMENT:

On order of the Chair, the Parking Authority meeting was adjourned at 12:09 a.m. ATTEST:

APPROVED:

Sarah P. Gorman Authority Clerk

Pam O’Connor Chair

8

June 24, 2014

(NOT APPROVED) CITY OF SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY MEETING MINUTES FEBRUARY 11, 2014 A special meeting of the Santa Monica Redevelopment Successor Agency was called to order by Chair O’Connor at 7:20 p.m., on Tuesday, February 11, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pam O’Connor Chair Pro Tem Terry O’Day Agency Member Gleam Davis Agency Member Robert T. Holbrook Agency Member Kevin McKeown Agency Member Tony Vazquez Agency Member Ted Winterer

Also Present: Executive Director Rod Gould Agency Attorney Marsha Jones Moutrie Agency Secretary Sarah P. Gorman CONVENE

On order of the Chair, the Redevelopment Successor Agency convened to a special joint meeting with the City Council at 7:20 p.m., with all members present.

REPORT ON MEETING COMPENSATION

Pursuant to State law, Agency Secretary Sarah Gorman announced respectively that Redevelopment Successor Agency will receive no compensation for meeting with the City Council.

CONSENT CALENDAR:

There being a Consent Calendar each for the Redevelopment Successor Agency and City Council, on order of the Chair, and with consensus of Agency Members, the Agency convened to a joint meeting with the City Council at 7:20 p.m. and the two Consent Calendars were held concurrently. All items were considered and approved in one motion unless removed by an Agency/Council Member for discussion. Members of the public Denise Barton and Marc Abraham commented on various Consent Calendar items.

1

February 11, 2014

RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 2014 –DECEMBER 2014

3-I: Recognized Obligation Payment Schedule: July 2014 through December 2014 and Administrative Budgets – recommendation that the Santa Monica Redevelopment Successor Agency (Agency), adopt Resolution No. 17 (SA) entitled: “A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 2014 – DECEMBER 2014”, and Resolution No. 18 (SA) entitled: “A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY APPROVING AND ADOPTING THE ADMINISTRATIVE BUDGET FOR THE PERIOD JULY 2014 – DECEMBER 2014, INCLUSIVE”, was presented. Motion by Agency/Councilmember McKeown, seconded by Agency/Councilmember Vazquez, to approve the Consent Calendar, reading resolutions by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Agency/Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Chair Pro Tem/Mayor Pro Tem O’Day, Chair/Mayor O’Connor NOES: None ABSENT: None SPECIAL MEETING

The special joint meeting of the Redevelopment Successor Agency and City Council was adjourned at 7:24 p.m., with all members present.

STAFF ADMINISTRATIVE ITEMS: SPECIAL JOINT MEETING

On order of the Chair, the Redevelopment Successor Agency convened to a special joint meeting with the City Council and Housing Authority at 7:25 p.m., with all members present.

FINANCIAL STATUS UPDATE

8-A: Financial Status Update and FY 2013-14 Midyear Budget -recommendation that the City Council, Housing Authority, and Successor Agency to the Santa Monica Redevelopment Agency: appropriate FY 2013-14 midyear expenditure and revenue budget adjustments and approve corresponding adjustments to the FY 2014-15 budget plan as detailed in Attachment A to the report; recommends that the City Council: receive the FY 2013-14 through FY 2017-18 Financial Status Update; adopt a policy to set aside funds to be used towards payments to CalPERS to reduce the City’s unfunded retirement liability; adopt Resolution No. 10799 (CCS) entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING 2

February 11, 2014

SALARY RATES FOR ADMINISTRATIVE PROJECT MANAGER, AIRPORT MANAGER, ASSISTANT TO THE CITY MANAGER, CHIEF FINANCIAL OFFICER, CODE ENFORCEMENT MANAGER, CODE ENFORCEMENT OFFICER I, CODE ENFORCEMENT OFFICER II, CODE ENFORCEMENT SPECIALIST, CODE ENFORCEMENT SUPERVISOR, COMMUNICATIONS CENTER ADMINISTRATOR, DEPUTY CITY MANAGER, OFFICE MANAGER TO THE CITY MANAGER, PUBLIC SAFETY DISPATCHER, DIRECTOR OF PUBLIC WORKS/AIRPORT DIRECTOR, FORENSICS SERVICES ADMINISTRATOR, GRAPHIC DESIGN ASSISTANT, JAIL SERVICES ADMINISTRATOR, LEAD ANIMAL CONTROL OFFICER, LEAD CODE ENFORCEMENT OFFICER, LEAD PUBLIC SERVICES OFFICER, LEAD SOFTWARE SYSTEMS ANALYST-PERMITTING, NETWORK CONSTRUCTION ASSISTANT, PARKING MANAGER, POLICE RECORDS ADMINISTRATOR, POLICE SERVICES ADMINISTRATOR, PUBLIC SERVICES OFFICER, PUBLIC SERVICES OFFICER SUPERVISOR, PUBLIC WORKS CONSTRUCTION SPECIALIST, SOFTWARE SYSTEMS ANALYST–PERMITTING, URBAN FOREST CONTRACT SUPERVISOR, WATER PRODUCTION AND TREATMENT PLANT SUPERVISOR, ZERO WASTE ASSISTANT”; approve the position and classification changes detailed in Attachment C; adopt Resolution No. 10800 (CCS) entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REVISING PORTIONS OF THE CITY’S SCHEDULE OF VARIOUS PERMIT AND USER FEES IN THE PLANNING AND COMMUNITY DEVELOPMENT, PUBLIC WORKS, POLICE, FIRE, BIG BLUE BUS, FINANCE, COMMUNITY AND CULTURAL SERVICES, AND LIBRARY DEPARTMENTS” of the City of Santa Monica setting various rates and fees in Attachment D; authorize the City Manager to accept a grant award in the amount of $469,971 from the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the Federal Transportation Administration (FTA) New Freedom Funds for Door Through Door services for older adults and persons with disabilities, and to accept all grant renewals; authorize the City Manager to negotiate and execute grant Agreement No. 9875 (CCS) with WISE & Healthy Aging, a California-based not-for-profit corporation, in an amount not to exceed $30,132 for the provision of New Freedom-funded attendant services for the Door Through Door program with future year funding contingent on Council budget approval; and receive public comment on Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) Program funds, was presented.

3

February 11, 2014

Member of the public Jerry Rubin spoke generally in favor of the recommended action. Member of the public Denise Barton spoke generally in opposition to the recommended action. Motion by Agency/Councilmember Winterer, seconded by Chair Pro Tem/Mayor Pro Tem O’Day, to move the staff recommendation, reading resolutions by title only and waiving further reading thereof, with additional direction to include the $15.50 living hourly wage in requests for interest. Motion to amend by Agency/Councilmember McKeown, to leave the unfilled position in the City Clerk’s office as is, and add the half position as needed to the City Manager’s office. The motion was friendly to the maker and the seconder. The motion was approved by the following vote: AYES:

Agency/Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Chair Pro Tem/Mayor Pro Tem O’Day, Chair/Mayor O’Connor NOES: None ABSENT: None ADJOURNMENT:

On order of the Chair, the special Redevelopment Successor Agency meeting was adjourned at 8:13 p.m. ATTEST:

APPROVED:

Sarah P. Gorman Agency Secretary

Pam O’Connor Chair

4

February 11, 2014

(NOT APPROVED) CITY OF SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY MEETING MINUTES FEBRUARY 25, 2014 A special meeting of the Santa Monica Redevelopment Successor Agency was called to order by Chair O’Connor at 7:12 p.m., on Tuesday, February 25, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pam O’Connor Chair Pro Tem Terry O’Day Agency Member Gleam Davis Agency Member Robert T. Holbrook Agency Member Kevin McKeown Agency Member Tony Vazquez Agency Member Ted Winterer

Also Present: Executive Director Rod Gould Agency Attorney Marsha Jones Moutrie Agency Secretary Sarah P. Gorman CONVENE

On order of the Chair, the Redevelopment Successor Agency convened to a special joint meeting with the City Council at 7:12 p.m., with all members present.

REPORT ON MEETING COMPENSATION

Pursuant to State law, Agency Secretary Sarah Gorman announced that the Redevelopment Successor Agency will receive no compensation for meeting with the City Council.

CONSENT CALENDAR: JOINT MEETING

There being a Consent Calendar each for the Redevelopment Successor Agency and City Council, the Agency convened to a joint meeting with the City Council at 7:12 p.m., and the two Consent Calendars were heard concurrently, with all members present. All items were considered and approved in one motion unless removed by an Agency/Council member for discussion. Members of the public Joy Fullmer and Christel Andersen commented on various Consent Calendar items.

CITY INVESTMENT POLICY

3-H: Annual Update on City Investment Policy – recommendation that City Council and the Successor Agency Governing Board: Review and approve the City’s revised Investment Policy; Extend investment 1

February 25, 2014

authority to the Director of Finance as the City and Successor Agency Treasurer, from March 1, 2014 through February 28, 2015; and : “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE ESTABLISHMENT AND USE OF BANK AND BROKERAGE ACCOUNTS AND UPDATING THE LIST OF PERSONS AUTHORIZED TO CONDUCT TRANSACTIONS WITH THE STATE LOCAL AGENCY INVESTMENT FUND”, and “A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY AUTHORIZING THE ESTABLISHMENT AND USE OF BANK AND BROKERAGE ACCOUNTS AND UPDATING THE LIST OF PERSONS AUTHORIZED TO CONDUCT TRANSACTIONS WITH THE STATE LOCAL AGENCY INVESTMENT FUND FOR LAIF ACCOUNT NUMBER 6519064”, was presented. Motion by Chair Pro Tem/Mayor Pro Tem O’Day, seconded by Agency/Councilmember Winterer, to approve the Consent Calendar, reading resolutions by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Agency/Councilmembers Vazquez, Davis, Holbrook, Winterer, McKeown, Chair Pro Tem/Mayor Pro Tem O’Day, Chair/Mayor O’Connor NOES: None ABSENT: None ADJOURNMENT:

On order of the Chair, the special Redevelopment Successor Agency meeting was adjourned at 7:24 p.m. ATTEST:

APPROVED:

Sarah P. Gorman Agency Secretary

Pam O’Connor Chair

2

February 25, 2014

(NOT APPROVED) CITY OF SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY MEETING MINUTES SEPTEMBER 9, 2014 A special meeting of the Santa Monica Redevelopment Successor Agency was called to order by Chair Pro Tem O’Day at 6:50 p.m., on Tuesday, September 9, 2014, at City Council Chambers, 1685 Main Street. Roll Call:

Present:

Chair Pro Tem Terry O’Day Agency Member Gleam Davis Agency Member Robert T. Holbrook Agency Member Kevin McKeown Agency Member Tony Vazquez Agency Member Ted Winterer

Absent:

Chair Pam O’Connor

Also Present: Executive Director Rod Gould Agency Attorney Marsha Jones Moutrie Agency Secretary Sarah P. Gorman CONVENE

On order of the Chair Pro Tem, the Redevelopment Successor Agency convened to a special joint meeting with the City Council at 6:50 p.m., with Chair O’Connor absent.

REPORT ON MEETING COMPENSATION

Pursuant to State law, Agency Secretary Sarah Gorman announced that the Redevelopment Successor Agency will receive no compensation for meeting with the City Council.

CONSENT CALENDAR: JOINT MEETING

There being a Consent Calendar each for the City Council and the Redevelopment Successor Agency, the Council convened to a joint meeting with the Redevelopment Successor Agency at 6:50 p.m., and the two Consent Calendars were heard concurrently, with all members present excepting Chair/Mayor O’Connor. All items were considered and approved in one motion unless removed by a Councilmember for discussion. Members of the public William Harder, Sr. (donated time by William Harder Jr.), Denise Barton and Christel Andersen commented on various Consent Calendar items.

1

September 9, 2014

At the request of Agency/Council Member Winterer, Item 3-B was removed from the Consent Calendar. On Item 3-A, Agency Secretary Gorman noted that an amendment was made to page 9 of the minutes, modifying “Virginia Avenue Park” to “Virginia Avenue Complex.” On Item 3-C, Public Words Director Martin Pastucha noted that the correct not to exceed amount for the total contract is $372,957. 3-D: Recognized Obligation Payment Schedule – recommendation RECOGNIZED OBLIGATION PAYMENT that Santa Monica Redevelopment Successor Agency (Agency) adopt Resolution No. 20 (SA) entitled: “A RESOLUTION OF THE SANTA SCHEDULE MONICA REDEVELOPMENT SUCCESSOR AGENCY APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JANUARY 2015 – JUNE 2015,” approving the Agency’s Draft Recognized Obligation Payment Schedule and Resolution No. 21 (SA) entitled: “A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY APPROVING AND ADOPTING THE ADMINISTRATIVE BUDGET FOR THE PERIOD JANUARY 2015 – JUNE 2015, INCLUSIVE”, was presented. Motion by Agency/Council Member Vazquez, seconded by Agency/Council Member Davis, to approve the Consent Calendar except for Item 3-B, reading resolutions by title only and waiving further reading thereof. The motion was approved by the following vote: AYES:

Agency/Councilmembers McKeown, Winterer, Holbrook, Davis, Vazquez, Chair Pro Tem/Mayor Pro Tem O’Day NOES: None ABSENT: Chair/Mayor O’Connor ADJOURNMENT:

On order of the Chair Pro Tem, the Redevelopment Successor Agency meeting was adjourned at 7:02 p.m. ATTEST:

APPROVED:

Sarah P. Gorman Agency Secretary

Terry O’Day Chair Pro Tem

2

September 9, 2014

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 7-A To:

Mayor and City Council

From:

Marsha Jones Moutrie, City Attorney

Subject:

Ordinance Adding Section 4.08.810 of the Santa Monica Municipal Code Prohibiting Selling, Leasing or Reserving for Compensation of Public Spaces in the City

Recommended Action Staff recommends that the City Council adopt the attached ordinance. Executive Summary At its meeting on October 14, 2014, the City Council introduced for first reading an ordinance adding Section 4.08.810 of the Santa Monica Municipal Code prohibiting selling, leasing or reserving for compensation of public spaces in the City. The ordinance is now presented to the City Council for adoption.

Prepared by:

Marsha Jones Moutrie, City Attorney

Approved:

Forwarded to Council:

Marsha Jones Moutrie City Attorney

Rod Gould City Manager

Attachment: Ordinance

1

Council Meeting: October 28, 2014

Santa Monica, California

ORDINANCE NUMBER ____ (CCS) (City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING SECTION 4.08.810 OF THE SANTA MONICA MUNICIPAL CODE PROHIBITING SELLING, LEASING OR RESERVING FOR COMPENSATION OF PUBLIC SPACES IN THE CITY WHEREAS, the City consists of just eight square miles of coastal land which is home to 90,000 residents, the job site of 300,000 workers, and a destination for as many as 500,000 visitors on weekends and holidays; and WHEREAS, the City’s public spaces are often heavily utilized by residents, workers and visitors; and WHEREAS, the City’s unusual density necessitates special efforts to preserve the free and safe flow of pedestrian, bicycle, and vehicular traffic; and WHEREAS, the City has consistently adopted laws and regulations that ensure all members of the public have equal and fair access to use of public streets, public spaces and public properties; and WHEREAS, selling, leasing or reserving for compensation of public streets, public spaces and public properties by private parties, without City authorization, hinders the City’s long standing policy of equal and fair public access to public resources; and

1

WHEREAS, selling, leasing or reserving for compensation of public streets, public spaces and public properties by private parties, without City authorization, can disrupt circulation, creates potentially confrontational situations, and increases the risk of traffic collisions; and WHEREAS, selling, leasing or reserving for compensation of public streets, public spaces and public properties by private parties, without City authorization, also interferes with the City’s authority to establish rental rates and manage public assets in such a manner that best serves the interests of the community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: Section 1.

Section 4.08.810 of the Santa Monica Municipal Code is hereby

added to read as follows: 4.08.810 Prohibition Of Selling, Leasing Or Reserving For Compensation Of Public Streets And Spaces (a)

No person shall sell, lease, or reserve for compensation, or facilitate the

selling, leasing or reserving for compensation, any street, sidewalk, alley, parkway, public parking space, public space or public property, without authorization from the City. (b)

Any person violating this Section shall be guilty of an infraction, which

shall be punishable by a fine not exceeding two hundred fifty dollars, or a misdemeanor, which shall be punishable by a fine not exceeding five hundred dollars per violation, or by imprisonment in the County Jail for a period not exceeding six months, or by both

2

such fine and imprisonment. Any person convicted of violating any provision of this Chapter shall be ordered to reimburse the City its full investigative costs. Section 2.

Any provision of the Santa Monica Municipal Code or appendices

thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 3.

If any section, subsection, sentence, clause, or phrase of this

Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. Section 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption.

APPROVED AS TO FORM:

_________________________ MARSHA JONES MOUTRIE City Attorney 3

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 7-B To:

Mayor and City Council

From:

Marsha Jones Moutrie, City Attorney

Subject:

Ordinance Adding Disability to the List of Classes Protected Against Housing Discrimination by Local Law

Recommended Action Staff recommends that the City Council adopt the attached ordinance. Executive Summary At its meeting on October 14, 2014, the City Council introduced for first reading an ordinance adding disability to the list of classes protected against housing discrimination by local law. The ordinance is now presented to the City Council for adoption.

Prepared by:

Marsha Jones Moutrie, City Attorney

Approved:

Forwarded to Council:

Marsha Jones Moutrie City Attorney

Rod Gould City Manager

Attachment: Ordinance

1

City Council Meeting: October 28, 2014

Santa Monica, California

ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 4.28 TO INCLUDE FAIR HOUSING PROTECTIONS FOR TENANTS WITH DISABILITIES

WHEREAS, federal, state and local law all prohibit housing discrimination; and WHEREAS, the Consumer Protection Division of the City Attorney's Office receives inquiries and complaints about all forms of housing discrimination; and WHEREAS, the largest number of complaints and inquiries relate to disability; and WHEREAS, complaints regarding reasonable accommodations and reasonable modifications for tenants with disabilities in the City have quadrupled in the past three years; and WHEREAS, in many cases, the City Attorney staff is limited by current law from directly enforcing the rights of tenants with disabilities; and WHEREAS, expanding the local prohibition against housing discrimination to include discrimination based on disability will authorize the City Attorney's Office to enforce the rights of tenants with disabilities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

1

SECTION 1. Santa Monica Municipal Code Section 4.28.030 is hereby amended to read as follows: 4.28.030 Prohibited activities. It shall be unlawful for any person offering for rent or lease, renting, leasing, or listing any housing accommodation, or any authorized agent or employee of such person, to do or attempt to do any of the following: (a)

Refuse to rent or lease a housing accommodation, or

access to or use of the common areas and facilities of the housing accommodation, serve a notice of termination of tenancy, commence an unlawful detainer action, or otherwise deny to or withhold from any person or persons, a housing accommodation on the basis of disability, age, parenthood, pregnancy, or the potential or actual occupancy of a minor child. (b)

Represent to any person, on the basis of disability,

age, parenthood, pregnancy, or the potential or actual occupancy of the minor child that a housing accommodation is not available for inspection or rental when such housing accommodation is in fact available for inspection or rental. (c) or

Make, print, or publish, or cause to be made, printed,

published

any

notice,

statement,

sign,

advertisement,

application, or contract with regard to a housing accommodation offered by that person that indicates any preference, limitation, or

2

discrimination

with

respect

to

disability,

age,

parenthood,

pregnancy, or the potential or actual occupancy of a minor child. (d)

Include in any rental agreement or lease for a housing

accommodation a clause providing that as a condition of continued occupancy, the tenants shall remain childless or shall not bear children or otherwise not maintain a household with a person or persons of a certain age. (e)

Threaten

to commence

or

commence

eviction

proceedings against any tenant on the grounds that he or she has breached a rental agreement if the alleged breach arises out of an increase in the number of occupants due to the marriage of the tenant, provided that the occupancy of the spouse and children of the spouse is otherwise lawful. (f)

Threaten

to commence

or

commence

eviction

proceedings against any tenant head of household on the grounds that he or she has violated the provisions of a rental agreement where the violation consists of an increase in the number of occupants arising out of the birth, adoption, or change of legal custody of a minor child of whom the tenant head of household or his or her spouse is the parent or legal guardian, and provided that the occupancy of said minor child is otherwise lawful. (g)

Refuse to make reasonable accommodations in

rules, policies, practices, or services, when such accommodations

3

may be necessary to afford a person with a disability equal opportunity to use and enjoy any dwelling.

(h)

Refuse to allow a person to make reasonable

modifications, alterations or additions to existing premises occupied or to be occupied by a person with a disability that are necessary to make the rental property accessible by persons with disabilities, under the following conditions:

(1) The landlord is not required to pay for the alterations, additions, or restoration unless otherwise required by state or federal law;

(2) The landlord has the right to demand assurances that all modifications will be performed in a professional manner, and in accordance with applicable building codes, permitting requirements and other applicable laws;

(3) The landlord may, where it is reasonable to do so, condition permission for modification on the tenant's agreement to restore the interior of the premises to its pre-existing condition, reasonable wear and tear excepted.

(i) For purposes of this part, “disability” includes, but is not limited to, any physical or mental disability as defined in California Government Code Section 12926.

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SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. effective 30 days from its adoption. APPROVED AS TO FORM:

_________________________ MARSHA JONES MOUTRIE City Attorney

5

This Ordinance shall become

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 8-A To:

Mayor and City Council

From:

David Martin, Director of Planning and Community Development

Subject:

Downtown Parking Structure Advertising Program Update

Recommended Action Staff recommends that City Council: 1. Authorize the continuation of the advertising and signage project with the expansion of the program to include 28 additional signs on the upper floors of parking structures 1-8 through August 31, 2018; 2. Appropriate the budget increases as outlined in the Financial Impact and Budget Action section of the staff report. Executive Summary In November 2010, Council authorized a one-year pilot advertising and signage project within the downtown parking structures. The project was intended to provide locations to promote City and Downtown Santa Monica Inc. (DTSM) events and programs as well as a means to generate revenue to further downtown programs and projects. A total of 24 sign structures have been installed on the lower levels of parking structures 1-5 and 7-8. Revenues from the program have been applied towards projects directly supporting access and parking improvements in the downtown area. Staff recommends continuing the project for an additional four years and expanding the program to allow for 28 additional signs above the second floor of the parking structures. Background Previous Council Actions On November 23, 2010, Council authorized a one-year pilot advertising and signage project within the downtown parking structures.

The request for proposals (RFP) process and selection of the operator was conducted by DTSM in 2011.

After selecting Van Wagner, agreements were executed between

the City and DTSM, the City and Macerich, and DTSM and Van Wagner. Once all 1

agreements were executed, all stakeholders coordinated with the Public Works Department regarding the location and placement of each sign within the parking structures.

The one-year pilot advertising and signage project began on September 1, 2013 and included 24 sign structures on levels one and two of parking structures 1-5 and 7-8. The sign structures consist of 14 wallscape signs and 10 backlight signs.

Parking

structure 6 was included in the initial contract however signs were not installed since the facility was under construction at the beginning of the program. Two signs designated as an additional media outlet for City and DTSM-related initiatives and events were placed in parking structure 9 because it is mostly utilized by residents.

Discussion The program is managed by DTSM with support from Van Wagner Communications, LLC. The majority of the advertisements to-date have been main stream entertainmentrelated, typically movie and television, and are similar to current Big Blue Bus advertisements. While Section 8.4 of the License Agreement between DTSM and Van Wagner clearly prohibits “advertisements promoting alcohol or tobacco products.” All content is approved by City and DTSM staff prior to posting. The program is structured around separate agreements between the City and DTSM, the City and Macerich, and DTSM and Van Wagner. Revenues from parking structures 1-5, and 6 going forward, are split according to an agreement between the City and DTMS as shown in the following table: Van Wagner Communications, LLC.

40%

City of Santa Monica

48%

Downtown Santa Monica, Inc.

12%

Revenues from parking structures 7 & 8 are split according to an agreement between the City and Macerich as shown the following table: 2

Van Wagner Communications, LLC.

40%

Macerich

30%

City of Santa Monica

24%

Downtown Santa Monica, Inc.

6%

On August 28, 2014, the DTSM Board recommended continuation of the program for another four years and expansion to upper floors of the parking structures.

The

expansion will occur above level two of each garage and includes 15 wallscape signs and 15 backlight signs at the following locations: •

Two wallscape and two backlit signs in parking structure 6 to bring that garage in line with the existing program

•

Two additional wallscape and two backlit signs in parking structures 1-6

•

Two additional wallscape signs in parking structures 7 & 8

•

Two backlight signs in parking structure 10 dedicated for City and DTSM-related initiatives and events

Between September 1, 2013 and August 31, 2014, the City received $142,659 from the program. Revenue reports are received from Van Wagner (via DTSM) on a monthly basis. The City then provides copies of the reports to Macerich, along with monthly payments of their portion.

The City’s revenue has been applied towards projects

directly supporting access and parking improvements in the downtown area including elevator repair, installation of the new parking and revenue control system, traffic signal improvements at Wilshire Boulevard and 3rd Street, and this past summer’s “Go With the Flow” program.

Staff supports the DTSM Board decision and recommends

continuing the project for an additional four years to further the initial goals.

Revenue from the existing 24 signs is expected to increase in future years since some months of the pilot program did not receive advertisements. This was due to the startup of the program and advertisers were not yet familiar with the locations. Revenue from the expansion is not anticipated to be proportionate to the existing 24 signs since the 3

new signs will be located on above level two of each garage. The prominence of the existing signs will generate a higher rental rate than the expansion signs. The addition of parking structure 6 and expansion of 28 signs to the upper floors is estimated to generate between $60,000 and $80,000 in additional revenue per year.

In discussions with Van Wagner and DTSM, expansion to other facilities was not recommended at this time given the types of parking uses supported by the Civic Center and Main Library lots. Most Civic Center parking patrons are either long-term City or Downtown employees, or patrons of City Hall or the Superior Court. At the Main Library, the primary parking patrons are library users and long-term Downtown employees. The focus of the program has been on short-term visitors and areas of more frequent parking turnover. The cost for the production and maintenance for each of the panels is managed by DTSM. DTSM will continue to manage the program on behalf of the City and City staff would have access to specified panels for public awareness campaigns, with no cost and minimal impact on staff time.

4

Financial Impacts & Budget Actions The current advertising and signage project with 28 signs on the lower floors of structures 1-8 will generate an estimated net annual revenue amount of $228,632. The addition of 28 new signs on the upper floors of the parking structures 1-8 will generate an additional net annual revenue amount of $42,000.

Approval of the continuation of the advertising and signage project with the expansion of the program to include 28 additional signs on the upper floors of parking structures 1-8 will generate a total net annual revenue amount of $270,632, and requires the following FY 2014-15 budget changes: 1. Establish revenue budget at account 01417.410220 in the amount of $325,326. 2. Appropriate the following expenditures to reflect payment of the license fees: $54,694 to account 01417.522560.

Prepared by: Andrew Maximous, Acting Principal Traffic Engineer

Approved:

Forwarded to Council:

David Martin, Director Planning and Community Development

Rod Gould City Manager

5

City Council Report City Council Meeting: October 28, 2014 Agenda Item: 8-C To:

Mayor and City Council

From:

Martin Pastucha, Director of Public Works

Subject:

Sustainable Water Master Plan Status Update, Presentation of Rate Analyses, and Discussion of Proposed Rate Options

Recommended Action Staff recommends that the City Council: 1. Review and comment on the proposed rates studies and recommendation. 2. Direct staff to proceed with rate structure Option 3 which provides full funding for proposed capital and conservation programs in support of the Sustainable Water Master Plan. 3. Direct staff to outreach to the community and proceed with steps necessary for rate consideration and adoption. 4. Adopt the Sustainable Water Master Plan pursuant to the categorical exemption at CEQA Guideline sections 15307 and 15308.

Executive Summary This report presents an update on the City’s effort to achieve water self-sufficiency through the Sustainable Water Master Plan (SWMP), recent drought response measures, and the findings and analyses of recently conducted financial and rate studies prepared for the Water and Wastewater funds. The report addresses current water and wastewater rates and describes factors which lead to near-term revenue shortfalls in the water fund, and presents five-year rate adjustment options that will generate sufficient revenues to pay for projected operating and capital costs. The options presented include consideration of the impacts for Stage 2 water restrictions recently approved by Council. The cost impacts of the proposed rate adjustments and rate restructuring on various types of customers within each customer group are presented, as is a comparison of the proposed Santa Monica rates with various other comparison cities in the region. Staff recommends rate structure Option 3 which represents an increase in the unit price of water of 9% in year 1 and 13% in years 2 through 5. This increase would be applied at completion of successful rate approval process estimated to be in January 2015.

1

Background In a study session at the March 8, 2011 Council meeting, staff presented the concepts and principles involved in achieving the goal of water self-sufficiency by the year 2020. Following the study session, staff embarked on the development of a Sustainable Water Master Plan (SWMP) in order to achieve this goal. In support of this effort at its March 27, 2012 meeting, Council authorized Kennedy/Jenks Consultants (KJC) to prepare the Sustainable Water Master Plan. In an information item to Council dated November 5, 2012, staff presented an update on the status of the development of a Sustainable Water Master Plan (SWMP).

At the May 14, 2013 Council meeting, staff presented Council with options for proceeding with the SWMP as indicated in Figure 1 below.

Figure 1

2

Council directed staff to proceed with Option1, which would yield 1440 acre feet through conservation programs as indicated in Table 1 below.

Also at the May 14, 2013 meeting Council directed staff to proceed with the water and wastewater rate study. The current water and wastewater rates, which are based on commodity-only rate structures (so named to indicate the absence of a fixed service charge component), were adopted by Council on May 13, 2008. The commodity-only rate structures were approved by Council to promote water efficiency and conservation.

On the demand management side of achieving self-sufficiency, the Council-approved water conservation programs as identified in Table 1 below are proceeding.

As

indicated in Table 1, the enhancement of existing water conservation programs and the development and implementation of new programs will save 1,443 acre feet of water per year as part of the Sustainable Water Master Plan (SWMP) in order to achieve water self-sufficiency.

3

Table 1

HE: High Efficiency; HET: High Efficiency Toilet; WBIC: Weather Based Irrigation Controller

On January 17, 2014 California Governor Jerry Brown proclaimed a Drought State of Emergency, finding under the provisions of section 8558(b) of the California Government Code that conditions of extreme peril to the safety of persons and property exist in California due to water shortage and drought conditions. Among other stipulations in the Governor’s proclamation, all citizens of California were asked to achieve a 20 percent reduction in water consumption. In an information item to Council dated January 29, 2014, staff presented an update to the Water Shortage Advisory in effect since 2009, as well as enhanced conservation efforts aimed at achieving the Governor’s call for a 20 percent reduction in water use.

On July 15, 2014, the State Water Resources Control Board (SWRCB) adopted an Emergency Regulation for Statewide Urban Water Conservation which requires urban 4

retail water agencies, like Santa Monica, to implement all requirements and actions of their water shortage contingency plans that impose mandatory outdoor irrigation restrictions. On August 12, 2014, Council adopted a resolution declaring a Stage 2 Water Supply Shortage requiring mandatory water conservation to achieve a 20% reduction in water use compared to 2013.

This staff report presents water and wastewater rate studies in support of achieving the objectives of the SWMP, and updated information about the status of the Sustainable Water Master Plan and recent drought response activities.

Pursuant to the City's Water Shortage Response Plan Stage 2 adopted by Council in August 2014, single-family, multi-family, and non-residential water customers will be given a water allowance, also called a water budget, for each billing cycle. Customers that exceed their allowance will be subject to surcharges for each hundred cubic feet of excess water used in a billing period. This sends a strong message to conserve water.

Because of the recent adoption of the 20% reduction, staff has estimated a cost of $862,000 in the first year and $592,000 in the second year for implementation and management of drought response efforts. Variances and relief from compliance from water allowances may be granted under certain conditions. Detailed implementation plans for the Stage 2 response of mandatory 20% conservation measures and associated costs will be presented to Council on October 28, 2014.

Discussion The City provides water service to three customer types: single-family, multi-family and non-residential. The current water rate structure was adopted in July 2008 to provide equity between customer types and among customers within a class. The rate structure adopted in 2008 eliminated the bi-monthly fixed service charge so that the water bill became entirely based on actual water usage, thereby improving the water conservation incentive at all levels.

For residential customers, the previously existing three tier

structure was replaced with a four tier structure. 5

For non-residential customers, a

uniform commodity rate was established, applicable to nearly all water use. A second tier for non-residential customers applied at the high end of consumption, in order to provide a strong disincentive for excessive water use. In 1999, a resolution to annually increase rates by the actual Consumer Price Index (CPI) increase was adopted and has been implemented with each annual budget.

A water rate study was initiated for the city by Kennedy Jenks Consultants as part of its contract with the City to prepare the SWMP. The objectives of the analysis include development of a strategy for meeting the utility’s financial obligations for the five year planning period (FY 2014-15 through FY 2019-20) and to assess changes to the rate structure in keeping with the city’s self-sufficiency goals to encourage water conservation and sustainability.

Water Rate Analysis The analysis indicates that the cost to operate the system, replace and upgrade existing facilities, and fund the SWMP conservation and supply augmentation programs will exceed current and projected revenues. Infrastructure rehabilitation, replacement, and upgrade requirements are necessary to maintain an aging water distribution system wherein certain parts are approaching 100 years in age. Ongoing funding of water main replacements at the level necessary to ensure reliability and long term performance are essential to system sustainability. In addition, demands placed on the Water Fund by the need to fund capital programs to accomplish the City’s water self-sufficiency goals, and the reduction in water sales that reduces annual revenues are major components driving the need for a rate adjustment.

Capital projects located in the Olympic sub-basin, including the proposed Olympic basin treatment facility and any new wells proposed in the Olympic sub-basin, would be funded from the Gillette/ Boeing Settlement agreements and are therefore not included in the funding requirements to be supported by water rate revenue.

6

Prior to implementation of the Stage 2 water restrictions, 9% annual rate increases over a five year planning period were envisioned as necessary to meet the goal of maintaining financial reserves at minimally acceptable levels throughout the planning period, meeting the capital and operational needs as required to meet the City’s selfsufficiency goals, and funding the appropriate level of infrastructure replacement and rehabilitation. This included new debt issuance (bonding) in FY 2018-19 in the financial plan to maintain water fund solvency throughout the planning period.

These initial

revenue projections assumed a 10% reduction in water sales at that time.

With the implementation of the Stage 2 water restrictions and the projects required to implement the SWMP, however, a 20% reduction in water use is expected to occur, requiring a rate increase to cover the fixed and increased costs of producing, distributing, and conserving this reduced volume of water. The decrease in water use translates to an increase in the recommended rate increase to 13%. The financial forecast over the five year planning period includes a cash infusion in FY 2018-19.

Financial Strategy Options As an enterprise fund, the City’s water utility is expected to be financially self-sufficient; revenues must match annual expenditures. Three options are presented in Table 1 and further discussed below in consideration of addressing alternate rate scenarios.

Table 1 – Rate Adjustment Options 2015

2016

2017

2018

2019

Option 1

2.5%

2.5%

2.5%

2.5%

2.5%

Option 2

9%

9%

9%

9%

9%

Option 3

9%

13%

13%

13%

13%

Note: Proposed adjustments applied in January of each year

The Fund Balance trends corresponding to the three options are presented in Figure 2 below.

7

Figure 2 – Water Fund Revenue Requirements, Fund balance trends

Option 1 – Status Quo Without an adjustment in the current rates, applying an inflation-only (Consumer Price Index, CPI) rate increase annually over the next five years would result in a negative cash balance (fund balance) in FY 2016-17.

Even complete elimination of capital

expenditure programs would not prevent the negative fund balance from occurring in a few years. This trend is displayed graphically in Figure 2.

Option 2, 9% annual increases years 1-5, modified capital program In Option 2, 9% increases are applied to the unit prices in the present tiers of the pricing structure. These increases would occur in January in each year of the five year planning period (2015 – 2019). As this does not represent the full cost recovery for the reduced projected revenue generated as a result of the Stage 2 Water Shortage Response Plan, some reduction in expenditures from capital improvements and conservation programs will be necessary.

Applying a reduction of approximately $1 million per year in

expenditures, the Water Fund cash balance trend is included in Figure 2. Among the reductions included in the expenditure reductions would be a reduced main replacement 8

program and cutbacks in the ability to fund certain conservation programs. It is also possible that some capital projects envisioned to support the 2020 self-sufficiency goal may be reduced or delayed, resulting in a delay in reaching the self-sufficiency goal by 2020.

Option 3 – 9% year 1, 13% rate increases annually years 2-5; Option 3 comprises a 9% increase in January 2015 and 13% increases each January thereafter through 2019. These percentage increases are applied to the unit prices in the present tiers of the pricing structure. A 13% increase represents the full recovery of the revenue decreases projected to result from the decreased water sales inherent in the mandatory conservation plan. Current capital and conservation programs remain intact. The 2020 self-sufficiency goal remains on target, and infrastructure investment continues in a manner which supports the continued reliability of the water system.

Rate Comparison It is worth noting that Santa Monica has experienced the same pressure for increased water efficiency and conservation over recent years due to drought and climate effects as other regional water agencies. Nevertheless, Santa Monica single family residential rates remain in the lower third of neighboring comparison agencies.

Figure 3 provides a

comparison of proposed Santa Monica Single family Residential (SFR) water rates, including a 13% increase over current rates, with neighboring agency SFR water rates. This 13% increase represents the proposed year 2 increase, following the 9% increase in year 1, as in option 3. The bill comparison is based on a ¾” water meter and 24 HCF of bi-monthly water usage. This represents the water allowance in the Stage 2 Water shortage plan for single family residences. The proposed bi-monthly average charge of $89.30 for Option 3 (13% increase) in year 2 reflects a monetary increase of $16.80 (bimonthly) over the existing charge of $72.50. Even with the proposed 13% increase, residential water bills in Santa Monica will compare favorably with the current average rate of the other communities surveyed. Table 3 provides a summary of average water bills under the presented options for average water use.

9

Figure 3 – Proposed Water Rate Comparison with Neighboring Agencies

(1.) Increases proposed for FY 2014-15 (2.) Culver City serviced by Golden State Water Company, a CPUC regulated utility

A summary of potential bi-monthly water bill impacts for select customer classes at average consumption rates is presented in Tables 3, 4, and 5.

10

Table 3 Example of Proposed Bi-Monthly Bill – No Surcharge Included Single Family Residential, ¾-inch meter, 30 HCF current average use Year 1

Year 2

Current Bill, $90.63 without conservation (1.) Option 1 $72.50 $74.31 Current Rates, with 20% conservation(24HCF) (2.) Option 2 , 9% increase in unit prices, with 20% conservation $79.03 $86.14 (3.) Option 3 , 13% increase in unit prices, with 20% conservation $79.03 $89.30 (1.) CPI Increase only in all years, effective January 1 (2.) 9% increase effective January 1 each year (3.) 13% increase effective years 2 through 5, 9% increase year 1

Year 3

Year 4

Year 5

$76.17

$78.07

$80.03

$93.90

$102.35 $111.56

$100.91 $114.03 $128.86

Table 4 Example of Proposed Bi-Monthly Bill – No Surcharge Included Multi-Family Residential, 1 ½ - inch meter, 77 HCF current average use Year 1 Year 2 Year 3 Year 4 Current Bill, $342.30 without conservation (1.) Option 1 $273.84 $280.69 Current Rates, with 20% conservation (62HCF) (2.) Option 2 , $298.49 $325.35 9% increase in unit prices, with 20% conservation (3.) Option 3 , $298.49 $337.29 13% increase in unit prices, with 20% conservation (1.) CPI Increase only in all years, effective January 1 (2.) 9% increase effective January 1 each year (3.) 13% increase effective years 2 through 5, 9% increase year 1

$287.70 $294.90 $302.27 $354.64 $386.55 $421.34 $381.14 $430.69 $486.68

Table 5 Example of Proposed Bi-Monthly Bill – No Surcharge Included Non- Residential, 2- inch meter, 192 HCF current average use Year 1 Year 2 Year 3 Current Bill, $687.23 without conservation (1.) Option 1 $549.78 $563.52 Current Rates, with 20% conservation (154 HCF) (2.) Option 2 , $599.26 $653.19 9% increase in unit prices, with 20% conservation (3.) Option 3 , $599.26 $677.16 13% increase in unit prices, with 20% conservation (1.) CPI Increase only in all years, effective January 1 (2.) 9% increase effective January 1 each year (3.) 13% increase effective years 2 through 5, 9% increase year 1

11

Year 5

Year 4

Year 5

$577.61 $592.05 $606.85 $711.98 $776.07 $845.90 $765.20 $864.67 $977.08

Summary and Recommended Option Prior to the mandatory water reductions in the Stage 2 water restrictions, the rate analyses initially suggested a water rate increase of approximately 9% per year for each year of the five year planning period based on projected water sales reflective of the water selfsufficiency and Urban Water Management Plan targets. This 9% increase includes the annual CPI adjustment. When taking into account the added water conservation resulting from the Stage 2 restrictions and the SWMP, and the added loss of revenue, a revenue increase of 13% would be required in order to keep the Water Fund balance positive throughout the five year planning period and fund necessary capital improvements and conservation programs. Rate increases are driven equally by the need to fund capital programs to accomplish the City’s water self-sufficiency goals, the need to invest in infrastructure rehabilitation and replacement, and the reduction in water sales that reduces annual revenues.

Option 1 is presented as an indication of the status quo, or the result of non-action relative to rates, other than an annual CPI increase. This option is unsustainable, as continuing on this course would result in a negative fund balance by FY 2016-17.

Option 2 includes an across-the-board 9% increase on all tiers of the existing unit prices. This option is included to indicate the effect of utilizing a single digit rate increase. As might be expected, a lower percentage rate increase results in lower revenue generation. Accordingly, expenditure reductions are required to accommodate the lower rate increase. This may be achieved through modifications in capital programs such as main replacements, valve rehabilitation, automatic meter infrastructure development, or some conservation programs. The consequence of cuts to these programs may result in a delay in reaching the self-sufficiency goal by 2020.

Staff recommends Option 3, which fully funds the projected capital programs, infrastructure investments, and conservation programs over the five year planning period. Because the first rate increase in the five year planning period is proposed to take effect in 12

January 2015 only a 9% increase is required for the first year (i.e., half of FY 2014/2015 would be subject to the rate increase). In subsequent fiscal years, a 13% increase would take effect July 1. This approach keeps progress on track toward achieving the City’s 2020 self-sufficiency goal.

Due to the conservation effect of the water budget rate

structure inherent in the Stage 2 water shortage plan, water bill increases are somewhat offset by the reduction in water use which is anticipated from each customer. As indicated in Figure 3, residential water bills remain competitive with comparison cities after a 13% rate increase.

Proposition 218 Compliance Proposition 218 requires a public notice of proposed changes to rates be made to all property owners in the affected area. A 45 day notice/ response period will be in effect from the date of approval of new rates (with a few days allowance for mailing). The notices to be mailed to all property owners will include a description of the need for a rate adjustment, and explain the protest process for the public to follow if they wish to oppose the proposed rates. Absent a majority protest, City Council may then approve the final adoption of the rates at a public hearing.

As indicated in Council staff report item 8B on the October 28, 2014 Council agenda, a drought surcharge is proposed for customers that exceed their bi-monthly Water Use Allowance. The proposed drought surcharge is intended to recover the cost of service associated with the implementation of measures to address the Stage 2 Water Supply Shortage, including but not limited to costs of water conservation rebates, enforcement of water conservation ordinances, and outreach. These proposed measures are not recovered through the City's existing and proposed water rate structure. These drought surcharges are subject to Prop 218 requirements and would be noticed in conjunction with the appropriate notice given for the rate adjustments.

Community Outreach Pending the direction provided by Council regarding the information provided in this report, outreach efforts will commence to engage the community in discussions relative 13

to proposed rate adjustments, the Sustainable Water Master Plan (SWMP), and the Water Shortage Response Plan (item 8B on this agenda). Staff from Public Works and the Office of Sustainability and the Environment (OSE) will schedule and at least 2 community forums, in addition to meetings with the Chamber of Commerce, apartment owners, hotel management staff, and school district and SMC staff.

This would

commence in November following the direction provided by Council relative to this report and continue through formal adoption of rates in January. Staff will provide at that time a summary of comments received during these sessions as well as a summary of correspondence received from the Proposition 218 notices.

Wastewater Rate Analysis Present day wastewater rates were established in 2008, concurrent with the last water rate adjustments. Consistent with the adopted water rates at the time, wastewater rates were also established as a commodity-only rate structure, based upon estimated wastewater flows during the bi-monthly billing period. A discharge factor is applied to the metered water consumption to represent the portion of water usage returned to the wastewater system. The discharge factors range from 51% for single family residential accounts, to 95% for multi-family residential accounts with more than 4 units. All nonresidential customers are assigned a discharge factor of 89%. Commodity charges for non-residential customers vary depending on sewage strength (as represented by biochemical oxygen demand and suspended solids) for each class.

On May 13, 2014, Council approved redemption of all outstanding Wastewater Enterprise Revenue Bonds. This action will save the Wastewater Fund approximately $600,000 over the next four years (bond maturity was January 1, 2018). Coupled with a remaining healthy fund balance, an increase in wastewater rates, other than an annual CPI adjustment, will not be required over the five year planning period considered in this analysis.

14

Reserve Fund Levels A review of the reserve fund policies for both water and wastewater, adopted in 2008, conducted in conjunction with the Finance Department indicates an adjustment is appropriate to reflect more modest funding of these reserves and reduce pressure on rates. Council approved the revised reserve levels as part of the FY 2014-15 operating budget.

Water Fund (Fund 25) The revised reserve levels include the following: •

An Operating reserve equivalent to 50% of the MWD purchases (3 year running average) budget, with a minimum level of $3 million.

•

A Capital reserve of 50% of annual capital program expenditure, with a minimum level of $3 million.

•

A Rate Stabilization reserve of $1 million (unchanged).

Wastewater Fund (Fund 31) As with the Water Fund, a change in the Wastewater Fund reserve policy is recommended as below: •

An Operating reserve equivalent to 50% of the Hyperion treatment expenses (3 year running average) budget, with a minimum level of $3 million.

•

A Capital reserve of 50% of annual capital program expenditures except Hyperion Capital Payment, with a minimum of $3 million.

•

A Rate Stabilization reserve of $1 million (unchanged).

Sustainable Water Master Plan The Sustainable Water Master Plan has been defined as to its content and objectives to meet water self-sufficiency by the year 2020. The executive summary of the report is attached herewith. Staff recommends Council approve the SWMP.

Based on the approach approved by Council on May 14, 2013, conservation and supply augmentation programs are underway.

Furthermore, given the drought response

required to meet the State’s call for a mandatory 20% conservation level, some 15

programs described in Table 1 of this report are being accelerated in order to meet the mandate. These include the high-efficiency toilet direct install program, Laundromat retrofit rebate, landscape rebate, SMMUSD water audit and retrofit program, adding funds to Metropolitan Water District’s rebate program, St. John’s retrofit program. On the supply side, testing to determine the operating parameters and design criteria for the new Olympic Basin Treatment Facility has begun, and planning for a new well in the Olympic basin has been initiated. As a longer term approach to augmenting supplies, staff is investigating grant funding opportunities for a potential Santa Monica Urban Runoff Recycling Facility (SMURRF) rehabilitation/expansion for the addition of reverse osmosis treatment capability. This would potentially allow for the treatment of other sources of water, such as captured stormwater, and increase supply to the plant.

Staff continues to work in partnership with the SWMP Advisory Committee to further develop and implement these programs. Communications with the committee have occurred over the last year via group meetings, emails and conference calls.

The

advisory committee comprises Mark Gold, Chair of the City’s Environmental Task Force, Associate Director UCLA Institute of the Environment and Sustainability; Andy Lipkis, Tree People Founder and President; Conner Everts, Southern California Watershed Alliance Executive Director; Ed Osann, Natural Resources Defense Council Senior Policy Analyst, Water Program; Judy Abdo, Santa Monica representative on the MWD Board of Directors, former Santa Monica Mayor and Councilmember; Caryn Mandelbaum, Environment Now Freshwater Program Director, Staff Attorney; and Tracy Quinn, Natural Resources Defense Council Policy Analyst, Water Program. The committee members have provided valuable input and counsel during the course of developing the SWMP.

CEQA Compliance The Sustainable Water Master Plan qualifies for

a categorical exemption from the

provisions of the California Environmental Quality Act pursuant to CEQA Guideline Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of the Environment). To the 16

extent specific demand management, water supply augmentation or other projects identified in the SWMP are pursued in the future, additional CEQA review will occur in compliance with CEQA.

Next Steps Following direction from Council regarding a preferred rate alternative, staff will continue with community outreach to discuss drought actions and financial planning efforts. Staff will return to Council with a recommendation of formal approval of rate adjustments in November 2014, after which the Proposition 218 public notices will be mailed to every property owner in the City. Following the required 45 day notice period, staff will return to Council with a summary of community responses and a formal recommendation to adopt new rates. Final adoption of rates can be made at a meeting in January 2015. It should be noted that delaying action on rates beyond this time frame will result in adverse impacts on the financial forecasts and rates.

Financial Impacts & Budget Actions Future budget and financial impact will be contingent upon Council direction. Impacts will be reflected in a future rates adoption staff report.

Prepared by: Gil Borboa, P.E., Water Resources Manager Approved:

Forwarded to Council:

Martin Pastucha Director of Public Works

Rod Gould City Manager

Attachment: A – Sustainable Water Master Plan Executive Summary

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ATTACHMENT A Sustainable Water Master Plan Executive Summary

Executive Summary The City of Santa Monica (City) supplies imported and local water to approximately 91,000 residents covering an area of approximately 8 square miles. Looking to its future, the City hopes to eliminate its reliability on imported water by addressing the challenge of existing groundwater quality, identifying new sources of local water supply, and more effectively reduce and manage its water demands. With an adopted goal of water self-sufficiency achieved by eliminating reliance on MWD supply by 2020, the City of Santa Monica retained Kennedy/Jenks Consultants to develop an integrated Sustainable Water Master Plan. This Master Plan combines relevant components of existing plans with an evaluation of a broad range of water supply and demand management options to assist the City in meeting its goals. This plan has been prepared with the objective of developing a comprehensive document to define supply and demand management options to cost effectively reduce future water demands and enhance local water supply production capabilities.

Goals and Purpose The purpose of this planning effort is to provide an up-to-date, comprehensive look at the City’s water system using recent planning information and the newly-developed distribution system hydraulic model to assess the City’s water system infrastructure needs. In a March 2011 study session with the City Council, staff presented concepts and principles that would be involved in achieving water self-sufficiency goal by the year 2020. Since that time, the City has embarked on the development of a sustainable and proactive plan to accomplish this goal. This Sustainable Water Master Plan (SWMP) includes an evaluation of expanded demand management measures and a variety of water supply alternatives including recycled water, storm water collection and treatment, rainwater harvesting, gray-water applications, and other water rights, supply and exchange opportunities to align with the above goal. A decision modeling approach was used to package these programs and projects into Supply-Demand Portfolios, where criteria were developed to provide portfolio ranking, economic analysis and ultimately, strategic direction. This plan illustrates projected water supply and demand scenarios, and characterizes the approximate magnitude of supply deficits or unpredictability that needs to be addressed to meet the City’s self-sufficiency objectives by 2020. The recommendations resulting from this SWMP are designed to provide a roadmap of phased projects and programs to guide the City’s water utility towards self-sufficiency. Implementation of the SWMP is further supported through the conduct of financial planning services. These services, prepared and documented under a separate cover, included an evaluation of water and wastewater rates, rate structures for conservation support and financial stability, and an update to the City’s water and wastewater facility capacity charges.

Santa Monica – Draft Sustainable Water Master Plan

Page ES-1

As discussed above, the development of a Sustainable Water Master Plan (SWMP) entails a multi-faceted approach to address the City’s goal of achieving water selfsufficiency by the year 2020. With the City’s current capability to meet approximately 70% of its water demand from local groundwater sources, the objective is to develop strategies to close the “gap” represented by the current purchase of imported water. Through a combination of demand management approaches and water supply augmentation tactics, various portfolios were developed to represent permutations and combinations of options that best meet the program objectives and continue to support the City’s Sustainability Plan. The SWMP documents the mix of strategies that could be undertaken to achieve water self-sufficiency by 2020, and recommends a portfolio of conservation/supply programs and capital projects to meet these self-sufficiency goals. A summary of the primary goals of this project include: • Perform a water demand analysis and generate water demand projections, which incorporate the most current information regarding population, land use and LUCE information for the City’s service area projected to the year 2035. The water demand projections consider the effects of weather and economic conditions on future water demand in order to increase defensibility in a time of increased pressure to reduce potable water demands in response to State legislation, • Conduct a rigorous evaluation of the City’s current and future Supply Alternatives and Demand Management Options to be able to build strategic Portfolios of for future, • Develop a comprehensive potable water system hydraulic model development, including calibration, and perform a hydraulic analysis under various system conditions, • Perform an evaluation of infrastructure improvements to accommodate existing requirements and meet future needs, including an evaluation of system infrastructure fire flow (FF) requirements, and an updated capital improvement program to support the City's short and long-range capital improvement requirements, • Perform a comprehensive financial evaluation of the City’s water and wastewater utilities and associated rates and rate structures, and • Prepare and submit two separate reports documenting the findings and recommendations of the Sustainable Water Master Plan and the Water and Wastewater Rate and Revenue Study.

Service Area Description Santa Monica is a beachfront city in western Los Angeles County. It is situated on the Santa Monica Bay, and is surrounded by the city of Los Angeles on the Northeast, the Pacific Ocean on the west, Mar Vista on the east and Venice on the southeast. The

Santa Monica – Draft Sustainable Water Master Plan

Page ES-2

City’s service area consists entirely of the City of Santa Monica with limited service in the City of Los Angeles. The City occupies 8.3 square miles (5,312 acres) of land. Figure ES-1 shows the Santa Monica City boundary and the vicinity areas. Figure ES-1 Santa Monica Boundary and Vicinity Map

Santa Monica – Draft Sustainable Water Master Plan

Page ES-3

The City of Santa Monica (City) provides water service to approximately 91,000 residents through a combination of local and imported water supplies. In recent years the City has relied heavily upon Metropolitan Water District (MWD) water (referred as imported water in this report) due to the presence of contamination in its groundwater supply, necessitating additional local groundwater treatment. Due to recent studies and efforts to mitigate this contamination, the City has started bringing wells back online and pumping more groundwater, which is helping create a more robust, reliable supply of water. The City has also continued to collect and recycle dry-weather urban runoff for use as a treated non-potable water source. In terms of land use classification, single family and multi-family residential are the City’s predominant user type. In addition to the residential land-use, the City also has centralized business, a commercial district, and institutional and industrial areas. Figure ES-2 below shows the current land-use map of the City. It is expected that future changes in growth and land-use type will result from re-development of the existing parcels since almost all of the City’s area is at near built-out conditions. Figure ES-2 Santa Monica Landuse Map

Santa Monica – Draft Sustainable Water Master Plan

Page ES-4

Growth in Santa Monica Given the near build-out condition, population growth in the City’s service area is projected to be minimal, less than 1 percent per year. As a major commercial center for the region, the City experiences daytime populations of up to 200,000 due, in large part, to the number of businesses and attractions located within the City. This increase in population along with general non-residential growth rate will increase the City’s water demands for indoor and outdoor use in future years. Table ES-1 below shows the City’s projected population through the 2035 planning period. Table ES-1 Projected Population Year Projected Population

2015

2020

2025

2030

2035

91,243 91,487 91,716 91,926 92,124

Source: 2010 Urban Water Management Plan.

Historical Water Demands Since 2005, water demands within the City have ranged from 13,000 AF to 15,000 AF with an average annual demand of approximately 13, 930 AF (Table ES-2). The decrease in demands that began in 2008 corresponds with statewide drought conditions promoting the need to conserve water resources and depressed economic conditions.. Overall, the City’s water use has been steadily declining since the early 1990’s as a result of its successful water conservation programs. Table ES-2 Historic Water Use Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Average

Demand (AF) (a) 14,917 15,061 15,112 14,491 13,855 13,065 13,142 13,874 14,020 13,934

(a) Source of data for years 2005-2009: City’s 2010 UWMP. Source of data for years 2010-2013: City’s Department of Water Resources Public Water System Statistics report.

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The City provides water service through over 18,000 metered service connections to a variety of customer types. These include: residential, commercial, institutional, and landscape customers. Approximately 80 percent of the City’s total service connections are used to serve the City’s residential customers. Commercial and institutional accounts account for approximately 12 percent of the service connections. Landscape irrigation, fire line services and various “other” accounts make up the remaining 8 percent of the City’s water customers. Among the “other” accounts is a very small set of customers receiving recycled water from the Santa Monica Urban Runoff Recycling Facility (SMURRF). A graphical summary of the water usage by customer type is shown in Figure ES-3. Figure ES-3 Service Connections by Customer Type

0%

0% 3%

6% Single Family Residential

13%

Multi Family Residential 50%

Commercial/Institutional Industrial Landscape/Irrigation Agriculture

28%

Other Services

Source: City utility billing data; calendar year 2013

As expected, the majority of the City’s water use occurs within the residential sector (Table ES-3). As shown, residential usage accounts for approximately 61 percent of the City’s total consumption.

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Table ES-3 Historic Water Demand by Customer Type (AF) Customer Type Single Family Residential Multi-Family Residential Commercial/Institutional Landscape Irrigation(a) Unaccounted for Water(b) Total Water Use(c)

2005 2006 2007 2008 2009 2010 2011 2012 2013 3,322 3,645 3,752 3,529 3,195 2,862 2,798 3,113 3,143 5,843 5,866 5,784 5,575 5,408 5,100 5,517 5,503 5,431 3,325 3,774 3,745 3,549 3,374 3,003 3,512 3,544 3,718 573 626 728 698 652 538 606 604 606 1,854 1,150 1,103 1,140 1,226 1,562 709 1,110 1,122 14,917 15,061 15,112 14,491 13,855 13,065 13,142 13,874 14,020

(a) Includes recycled water produced by the SMURRF. (b) Unaccounted water for 2012 and 2013 based on average of unaccounted water from 2005 to 2011 (c) Source of data for years 2005-2009: City’s 2010 UWMP. Source of data for years 2010 and 2011: City’s Department of Water Resources Public Water System Statistics report (“Total water into the system,” including recycled water).

Water Demand Analysis and Projected Future Demands To achieve water self-sufficiency by the year 2020, the City must have a clear understanding of its future water needs, or demands. The total amount of local water supplies needed to meet the City’s sustainability goal includes water supplied to customers as well as an allowance for system water loss, and water lost through the water treatment process referred to as brine or production loss. The City’s initial estimate of the volume of water needed to meet the sustainability goal was approximately 3,700 acre-feet (AF); however, that estimate was based on the assumption that water demand would not increase in the future beyond current levels and did not consider the effects that economic activity and weather may have on historical and future water demands. While the extent of these effects may vary based on local conditions, there is a general increase in demands with increased economic activity and hotter, drier weather conditions. These effects were not incorporated in the demand projections available in current planning documents, including the 2010 Land Use and Circulation Element (LUCE). To plan for future water supply needs, a comprehensive demand analysis was performed that reconciled prior demand projections with actual water usage in the last several years, and were adjusted for the potential effects of weather and economic activity applicable to Santa Monica. First, a new baseline demand projection was developed. This baseline demand projection begins with current actual demands of approximately 13,500 AF in 2012 and grows at the same rate as the water demand projection found in the LUCE. LUCE annual growth rates were used since it was developed based on the City's best estimates of demographic and development projections used in the City’s General Plan and other planning documents. Figure ES-4 compares the water demand projection found in the LUCE with the new baseline demand projection.

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Figure ES-4 LUCE and Baseline Water Demand Projections

15,900 15,300

14,100 13,500

Next, the effects of weather and economic conditions on the City’s water demand were explored. Regression analyses were performed to evaluate the correlation between water use for various customer categories (single family, multi-family, commercial, institutional and landscape irrigation) and weather and economic (unemployment rate) factors. Data from the regression analyses indicated that there was no significant correlation observed with weather related parameters for the City. However, a better correlation was found between the City’s unemployment rate and the water use of single family, multi-family and landscape irrigation customer classes. A decrease in the unemployment rate resulted in an increase in water use among these customers. The analysis suggests that an element of the City’s reduction in water usage was due to the recent recession and higher unemployment rate. Accordingly, the baseline water demand was adjusted to project future water demands under good economic conditions, as shown in Figure ES-5. The “good economy” demand projection is approximately 10 percent higher than the baseline water demand projection. Given that the City’s existing local water supply capacity is approximately 9,000 AF, the demand analysis suggests that the gap between available local water supply from the Arcadia Water Treatment Plant, and the volume of water required to meet the City’s sustainability goal in 2020 is actually closer to 6,500 AFY, rather than 3,700 AFY.

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Figure ES-5 Comparison of Alternative Demand Projections

15,900 15,300

15,490

14,800 14,100 13,500

Water Conservation Analysis and Effect on Future Demands Water conservation modeling and analysis was performed to better define the City's opportunities to reduce the projected water demands described above through the implementation of water conservation programs. Following the completion of a detailed billing and historical conservation program and policy analysis, a comprehensive list of water conservation programs was developed and modeled using the Alliance for Water Efficiency’s Water Conservation Tracking Tool. This model allows users to analyze the water savings potential and implementation costs of a collection of water conservation programs. The model also uses local demographic and housing characteristics to estimate water savings that could be attributable to enhanced efficiency requirements in State plumbing codes and water fixture usage standards, and predict reductions in demand from other applicable programs. The suite of programs selected for analysis address each of the City’s water customer sectors (single-family, multi-family, commercial, institutional, and landscape) with an emphasis on water users that shows opportunity for additional conservation. Since 1988, the City has invested millions of dollars in resources to retrofit nearly every indoor plumbing fixture in commercial, single-family and multi-family buildings with water saving products. As a result, water usage in the City has declined even though the City’s population and non-residential development have increased.

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Results of the billing analysis indicated that the greatest remaining potential for water conservation exists among the City’s commercial and institutional customers, as well as in landscape water use. Two specific large water users, St. John’s Medical Center, the Santa Monica-Malibu Unified School District, and laundry facilities, were identified by City staff as customers with a high potential for additional water savings and programs were developed to target those potential water saving opportunities. Implementation levels for each water conservation program modeled were based on analyses of saturation rate of existing water saving plumbing fixtures and landscapes, customer surveys, staff knowledge of the City’s customers and their willingness to implement these programs, and products that will have long-term water savings that are not dependent on significant changes in the customer’s behavior. The goal was to develop a diverse selection of programs that aggressively pursued demand reduction through retrofitting existing indoor plumbing with plumbing fixtures that save about twenty percent more water in addition to retrofitting landscape customers’ with plants and irrigation approaches that can save up to eighty percent more water, compared to existing landscapes. The resulting suite of conservation programs, shown in Table ES-4, is projected to save approximately 775 AFY of water in the year 2020. An additional 418 AFY of savings is expected in 2020 as a result of State plumbing and building code standards that require higher water saving fixtures. In addition, a reduction in system-wide leaks and nonrevenue water through capital investment in the system is projected to save another 250 AFY of water for a total demand reduction of approximately 1,443 AFY in 2020. Table ES-4 Water Conservation Programs

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Figure ES-6 shows the potential effect of implementing the recommended water conservation programs on the City’s projected water demand assuming the “good economy” water demand projection previously described. Implementation of the recommended water conservation programs reduces the volume of additional water the City must produce to meet its self-sufficiency goals from approximately 6,500 AF to approximately 5,000 AF. While water conservation alone will not enable the City to meet its water self-sufficiency goal, it can significantly reduce the volume of additional water supply required. Figure ES-6 Demand Reduction from Recommended Conservation Programs

While conservation programs are often less expensive than physically constructing and operating new water supply or treatment facilities, the noted reductions in projected water demand are not without a cost. For the City of Santa Monica, these costs include the cost of the actual conservation program, increased staff and public outreach costs associated with new program implementation and management, and the associated loss in water sales revenues (this latter component is partially offset by reduced water supply production costs). Based on the City's current demands and water revenues, it is estimated that the total cost for the recommended water conservation program reflected in Table ES-6 is approximately $7.2 million through 2020.

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Water Supply Analysis Given the City’s projected water supply demand conditions, a multi-faceted water supply portfolio is needed to meet the City’s water self-sufficiency goal. This portfolio is projected to include both demand reduction measures through the implementation of water conservation programs, as well as new supply and water treatment options. New water supply options may include additional groundwater capacity, rainwater harvesting and stormwater capture, and additional recycled water sources. These current and future supply options are explored in greater detail herein. Current Water Supply The City’s existing water supply consists of groundwater, purchased imported water, and a small amount of recycled dry weather urban runoff. Historically, groundwater made up the majority of the City’s water supply portfolio; however, in 1995 when methyl tertiary butyl ether (MTBE) contamination was discovered in the Charnock Sub-basin, a sub-basin of the Santa Monica Basin, the City was forced to shut down five groundwater wells and purchase the majority of its water supply from MWD. In addition to local groundwater and purchased imported water, the City treats a small volume of dry weather urban runoff, yielding a source of recycled water that can be used for landscape irrigation and other approved uses, such as toilet flushing. Imported Water In recent years the main source of potable water supply for the City has been imported water purchased from MWD. MWD receives a negotiated allotment of water from the Colorado River and the San Joaquin River Delta. These allotments are then distributed among its 26 member agencies – a cooperative of municipalities and water agencies located throughout southern California. The City has a current Tier 1 rate allocation of 11,515 AFY of water through MWD. Tier 1 water corresponds to the amount of water the City is entitled to purchase at the Tier 1 rate. MWD Tier 2 water is also normally available to the City; however, the cost per acre-foot is higher and there is less availability and reliability of Tier 2 water in periods of drought. The City has routinely exceeded its Tier 1 entitlement in recent years due to inactivity of many of its wells. Prior to the recent reactivation of its groundwater production, imported water represented approximately 85 percent of the City’s total water supply. Table ES-5 shows the City’s imported water purchases since 2005.

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Table ES-5 Historical Imported Water Supply Year 2005 2006 2007 2008 2009 2010 2011 2012 2013

Purchases (AF) 12,671 13,216 13,017 12,323 11,685 9,812 6,388 6,550 5,833

Source: City of Santa Monica Water Resources

The City maintains two separate connections with MWD for its supply of imported water. These two connections are shown in Table ES-6. Table ES-6 City of Santa Monica's MWD Connection Capacities Description

SM-1

SM-2

Capacity (AFY)

21,720

18,100

Total Capacity 39,820

Local Groundwater Local groundwater represents both an existing source of potable water as well as a potential source of future potable water supply. Local groundwater has, until recently, been underutilized due to the shutdown of five Charnock wells that reported MTBE contamination in 1995. Due to the completion of MTBE remediation efforts in February of 2011, the City has been able to bring the five Charnock wells back online. The City obtains its groundwater supply from the Santa Monica Basin (Basin). The Basin is located in western Los Angeles County and overlies the entire City of Santa Monica, Culver City, Beverly Hills, and portions of western Los Angeles. The Basin has a surface area of 50.2 square miles and consists mostly of flat to mildly hilly terrain. The basin is bounded by impermeable rocks of the Santa Monica Mountains to the north, the Ballona Escarpment (Bluffs) to the south, the Newport-Inglewood fault to the East, and the Pacific Ocean to the West. Extensive faulting within the Basin separates it into five subbasins as shown in Figure ES-7 below.

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Figure ES-7 Local Groundwater Basins and Subbasins

Groundwater in the Basin is replenished by percolation from precipitation, receiving an average annual precipitation of about 14 inches, and by surface runoff from the Santa Monica Mountains. Since the basin is mostly urbanized and soil surfaces have been paved to construct roads, buildings, and flood channels, only a small portion of basin soils are capable of transmitting water to the water-bearing formations below. The City has historically pumped annual volumes of groundwater ranging between 11 and 10,038 AF, with a long-term average volume of 4,277 AFY. The combined capacity of the City’s five wells located in the Charnock Sub-basin is 9,000 GPM. An additional five wells, two in the Arcadia Sub-basin and 3 in the Olympic Sub-basin, remained online when the Charnock wells were shut down, and have the ability to produce 3,300 GPM. These five wells have been responsible for approximately 1,950 AFY, or 13 percent of the City’s water supply. In total, the City currently has the ability to pump groundwater at a rate of approximately 10,600 GPM. Table ES-7 shows the capacity of each of the City’s groundwater wells.

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Table ES-7 Groundwater Well Capacities Well Name/No. Charnock 13 Charnock 16 Charnock 18 Charnock 19 Charnock 20 Arcadia 4 Arcadia 5 Santa Monica 1 Santa Monica 3 Santa Monica 4

Subbasin Charnock Charnock Charnock Charnock Charnock Arcadia Arcadia Arcadia Olympic Olympic Total Capacity

Capacity (gpm) 1,800 1,675 1,675 1,840 1,330 250 180 250 820 800 10,632

Source: City of Santa Monica Water Resources. Capacities are average values and vary over time.

Non Potable Water To protect the Santa Monica Bay from contamination caused by pollutants found in dry weather urban runoff the City built the Santa Monica Urban Runoff Recycling Facility (SMURRF). The SMURRF project produces a small volume of high-quality recycled water that is used to offset potable water demands for landscape irrigation and indoor plumbing. Designed to routinely treat 0.5 MGD, with a peak treatment capacity of 0.75 MGD, the SMURRF removes urban contaminants and treats the influent water to Title 22 state standards for tertiary water. The water is then pumped through a separate water distribution system to serve a number of parks, medians, Woodlawn Cemetery and some dual-plumbed buildings. The SMURRF has allowed the City to slightly reduce its reliance upon MWD water at a time when the City relied heavily upon imported water due to the lack of production from groundwater wells. However, since dry weather urban runoff is an unstable supply, the focus of this facility has been predominantly water quality improvements to Santa Monica Bay. Historically, SMURRF has had an average production of 154 AFY, with a high of 354 AF and a low of 94 AF.

Future Opportunities and Portfolio Development Additional Local Groundwater Opportunities In addition to implementing the water conservation programs previously described, the City is also desirous of expanding use of its local groundwater resources. Currently, the City obtains local groundwater from the Arcadia Olympic Sub - basins via five wells. These wells can produce approximately 3,000 acre feet per year (AFY). Additionally, there are five wells located outside of the City limits in the Charnock Sub-basin with a combined average production capacity of approximately 6,000 AFY. From 1995 to 2010, the City purchased most of its annual water supply needs from the Metropolitan Water District (MWD) as the Charnock well field was shut down due to methyl tertiary butyl ether (MTBE) contamination. The total average groundwater production capacity

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from these sub-basins for local treatment at the Arcadia Water Treatment Plant is approximately 9,000 AFY. Another study of the groundwater basin was recently performed by Richard C. Slade and Associates, LLC (RCS). The study suggests the City may have additional local groundwater opportunities within the Olympic, Charnock and Coastal Sub-basins. The Coastal sub-basin has not been utilized as a groundwater source to date due to salt water intrusion; additional treatment would be required to utilize water from this basin. Additional efforts are needed to assess potential sites and derive the potential quality and quantity of additional well production for the City's supply portfolio. Incorporating the RCS study with the SWMP’s evaluations and discussions, has led to the following preliminary recommendations for additional local groundwater production and treatment facilities. These preliminary recommendations are: •

Expansion of the existing Arcadia Water Treatment Plant

•

Design and construct the new Olympic Water Treatment Plant (Gillette/Boeing Settlement Project)

•

Rehabilitate old wells and drill additional new wells in the Olympic, Charnock and Coastal Sub-basins

•

Develop and implement improvements in treatment efficiency to reduce the amount of water lost to brine disposal during treatment (reduction of brine water losses from 18% to 9%)

While additional engineering and hydrogeologic studies will be required to determine a realistic production capacity for these wells, it is believed that the City could attain as much as an additional 6,000 AFY of local water if all of these strategies were implemented. Of course, an equivalent increase in local water treatment capacity is required to deliver this water to the City's customers, requiring an increase in the capacity of the Arcadia Water Treatment Plant and/or using settlement funds and other sources to construct a new water treatment plant (currently referred to as the Olympic Water Treatment Plant as it is designed to focus on treating water from the Olympic sub-basin). The current approach for siting some of these future water supplies is reflected graphically on Figure ES-8.

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Figure ES-8 Groundwater Basins and Facilities

Beyond the additional local groundwater opportunities described above, potential exists for joint-development of nearby under-utilized groundwater basins, including the Hollywood and Central Basins. These are multi-jurisdictional opportunities that will require coordination between the City and the Los Angeles Department of Water and Power and/or the City of Beverly Hills. Given the nature of institutional-related projects, these opportunities are considered as more long-term water supply options and are not included in the list of potential new groundwater opportunities available to the City to meet its self-sufficiency goal by 2020. Rainwater Harvesting and Stormwater Capture Given Santa Monica’s Mediterranean climate, rainwater harvesting (the capture and onsite use of rainwater for landscape irrigation purposes) offers limited opportunity as a significant additional water supply within the City. However, to quantify the potential benefit of this resource, an analysis was performed to compare the potential for rainwater harvesting based on average monthly precipitation data and monthly landscape water demand for residential and commercial customers.

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Results of the above analysis indicate that the potential for rainwater harvesting as a supply option in Santa Monica is limited by the large size of individual property owner cisterns required, and customers’ motivation to install them. Historically, residential cistern installation, even with a rebate of $1,000 per cistern, has been minimally accepted by the City’s customers. Accordingly, it is estimated that the rainwater harvesting incentive program may provide only 1-2 AF per year. Similarly, a City-wide stormwater capture program offers a seasonal, unreliable additional water supply option for the City. A scenario was developed in which stormwater captured through the City’s storm drain system would be routed to the Santa Monica Urban Runoff Recycling Facility (SMURRF) for distribution to landscape irrigation customers. It is estimated that a City-wide stormwater capture program may be able to generate an additional 160 AF of supply per year. Recycled Water Currently, the City distributes approximately 85 AFY of recycled urban runoff to customers for landscape irrigation and indoor commercial use through the SMURRF and associated distribution system. The City does not operate a wastewater treatment plant and thus does not have a local source for additional recycled water supplies. However, the City could partner with adjacent agencies that currently produce recycled water in order to bring additional recycled water supplies to its customers. The West Basin Municipal Water District (WBMWD) operates a recycled water system that terminates near Marina Del Rey, which may provide the City with a potentially feasible source for recycled water. The Los Angeles Department of Water and Power (LADWP) also looked into utilizing this source and has prepared a master plan that suggests a potential for connection at this same location. A recycled water market study was performed to estimate the potential for recycled water use within the City. Results of this study indicate that 350 AF of recycled water could be used by the City’s dedicated landscape irrigation customers that reside along some key corridors into the City. Figure ES-9 provides a potential recycled water distribution system that focuses on delivering year-round recycled water to the City and serves a number of customers along the corridor of pipeline facilities.

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Figure ES-9 Potential Local Recycled Water Supply System

In this potential system, the City may be able to partner with LADWP to jointly fund a new transmission and pumping system that connects to the WBMWD pipeline and bring recycled water to the southeast side of Santa Monica. The project would require approximately 5 miles of pipeline from its current point of termination. Establishing the partnerships and agreements necessary to make this type of inter-agency program a Santa Monica – Draft Sustainable Water Master Plan

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reality will require time, and this option should be considered a long-range strategy for the City. It is unlikely that the City could deliver additional recycled water to its customers before 2020.

Portfolio Development As shown in Figure ES-10, implementation of the strategies described herein suggest that the City can meet its self-sufficiency goal through a combination of water conservation programs, additional local groundwater production and additional supplies from rainwater harvesting and City-wide stormwater capture. In the future, the City may also be able to establish additional recycled water supplies through inter-agency partnerships with adjacent water agencies and municipalities. Figure ES-10 Water Supply and Demand Comparison Including New Supply Opportunities

Figure ES-11 presents three different options for obtaining water self-sufficiency. These three portfolios were developed and presented to the City Council on May 14, 2013. At that meeting, Council directed staff to proceed with the Sustainable Water Master Plan and further develop the demand management approaches and water supply augmentation tactics associated with Option 1 to support the City’s sustainable plan goals and objectives. The primary elements of this plan include:

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•

Implement the identified demand management measures to promote additional water use efficiency,

•

Expand groundwater extraction capacity to produce more local groundwater,

•

Expand the existing Arcadia Water Treatment Plant capacity and construct the new Olympic Water Treatment Plant to treat the additional supply of local groundwater, and

•

Augment these core supply demand programs with other non-potable reuse opportunities to reduce potable water usage.

Figure ES-11 Potential Supply/Demand Management Portfolios

Hydraulic System Analysis To evaluate the potable water system, a computerized hydraulic model was developed using the City’s Geographic Information System (GIS) data, facility information, operational controls, system demand curves, and water utility customer billing data. Following completion of the importing of all of the elements of the City’s water distribution system into the hydraulic model databases, calibration of the hydraulic model was performed.

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The goal of calibration was to develop a hydraulic model which reasonably represents actual conditions in the distribution system. Two phases of calibration were conducted: Steady State and Extended Period Simulation. Steady state simulation calibration involved the process of simulating fire hydrant flow tests with the model so that it provides a reasonable match with the field generated findings. Extended period simulation modeling is associated with modifying the model until it simulates the operations of a specific day or multiple days with relative accuracy. Upon completion of this task, the City’s model was populated with projections of future water demands throughout the system, and used to reliably evaluate the performance of the City’s water system under both current and future demand conditions. This modeling tool is now available to be used by the City to perform additional “what if” asneeded water system analysis activities. System Pressure Zones and Facilities The following pressure zone and system configuration was used to represent the City’s hydraulic model. The City’s system is divided into three pressure zones to regulate pressures in the water system. These pressure zones include: the 500, 350 and 250 foot zones. Each zone has its own primary sources of supply and facilities and is also hydraulically connected to the zone below it. A description of these zones and facilities follows.

500 Foot Pressure Zone The 500 foot pressure zone lies at the northern most edge of the City and is the City’s smallest zone. The 500 zone serves primarily single family, low density residential land uses. Since the 500 zone is both the smallest and lowest density zone in the system, it also serves the smallest demand of three zones. The 500 foot zone is entirely developed, and due to the prohibitively high cost of acquiring land, storage was never built to serve this zone. To compensate for this condition, the 500 zone is served by both a direct connection to MWD which directly feeds the 500 zone and the San Vicente Booster Station which provides additional flow and pressure when conditions warrant. The supply from MWD that serves the 500 zone typically exceeds the demands present in this zone. This excess supply is normally relieved to the 350 foot zone where it serves as supply or goes into storage. The City normally uses the MWD connection to meet the storage needs of the 350 zone that are not satisfied by the output of the Arcadia Booster Station.

350 Foot Pressure Zone The 350 foot pressure zone is the largest of the three zones in the City and spans from the eastern most point in the City to the western most point. This zone serves low and high density single-family dwellings, commercial, industrial, and educational customers, and the Santa Monica Airport. It encompasses 57% of the City’s land area and is supplied its water primarily from the Arcadia Water Treatment Plant (Arcadia WTP). Finished produced water from the Arcadia WTP is delivered to the Arcadia Booster Pump Station for final distribution to the customers in this zone.

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The 350 foot zone has four storage reservoirs which provide 40 MG of storage capacity. In order of descending size, the 350 zone is served by the Riviera, San Vicente, Mt. Olivette, and Arcadia reservoirs, which have 25.0, 5.0, 5.0 and 5.0 MG capacities, respectively.

250 Foot Pressure Zone The 250 foot pressure zone spans the length of the coastline within the City boundary and occupies the majority of the southwest corner of the City. It, like the 350 zone, contains a variety of land uses, most notably the Santa Monica downtown area and pier. Given the characteristics of the customers in this zone, this zone exhibits the largest ratio of water consumption per acre of land in the City. The 250 foot zone is served primarily by a direct connection to the Arcadia WTP. The 250 zone is also served by two pressure relief/sustaining valves from the 350 zone, one each at the north and south ends of the zone. These valves supply the 250 zone if pressure in the 350 zone becomes too high and are used to sustain the pressure in the 250 zone should it drop too low. Similar to the 500 foot zone, the 250 zone also contains no direct storage. It does however, have indirect access to the storage in the 350 zone by way of the two pressure sustaining valves which connect the two zones.

Summary of Water System Improvements As discussed herein, the City’s water system was evaluated under both current and future conditions with an overall focus of developing those programs and facilities needed to meet the City’s water self-sufficiency and water use efficiency goals and objectives. To this end, a comprehensive demand analysis was performed to better understand the implications of the economy and weather on water demands over the last decade and incorporate this finding in a robust demand projection. This projection formed a basis of planning for the City’s water use efficiency targets and the water supply and infrastructure needs related to a self-sufficient supply. To achieve both of these goals by 2020, a diverse set of water supply augmentation projects and demand management measures were derived and approved by City Council for further development and potential implementation. In addition to these programs and projects, the Sustainable Water Master Plan also evaluated and developed programs and projects related to storing and distributing water to the City’s customers. These identified improvements are typically prioritized into a capital improvement program (CIP) based on the assessment of a wide variety of factors. These factors include: capacity considerations under current and future demand conditions, system reliability and performance, and support for the City’s sustainability and self-sufficiency goals and objectives. A summary discussion of the City’s water system storage and piping recommendations follows.

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Water System Storage As discussed, dedicated water system storage is generally isolated to only one of the City’s three pressure zones, zone 350. This finding suggests a general need to increase the volume of available storage in various areas of the City to meet emergency and outage conditions and improve the resiliency of the City’s water system. To this end, the City has performed various studies over the years to assess the potential siting of additional storage to mitigate this condition. At this time, it is believed that additional storage associated with the new Olympic Water Treatment Plant may be the most viable location for improving water storage and system resiliency. Water System Pipelines Water system pipeline improvements generally fall into two categories – Improvements related to increased capacity or increased reliability. •

Capacity-related improvements were identified through the use of the newly developed water system hydraulic model. With the model, pipelines that did not meet a set of system performance or design criteria under either existing or future demand conditions were identified for replacement with larger diameter facilities.

•

Reliability-related improvements were derived in this study based primarily on pipeline age and other asset condition and management related factors. Age information was attained through the City’s water system GIS platform, while other condition and reliability information was attained through the City’s water asset management system. To simplify the process and discussion in this Executive Summary, pipeline age is used herein to represent the potential reliability and vulnerability to condition-related service outages.

Figure ES-12 is developed to show the age distribution of the pipelines in the City’s water distribution network. As shown, approximately forty five percent of the City’s total pipeline network was installed prior to 1970, and approximately 25% of the system is over 65 years old. With a planning-level useful life of 50 to 70 years, the City should plan for the repair/replacement of many of the pipelines in the next 10 to 20 years.

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Figure ES-12: Age Distribution of City Water System Pipelines

Source: City water system GIS data for underground pipelines.

It should be noted that the City has developed an asset management system of its underground water pipelines and has budgeted for the methodical replacement of underground infrastructure for many years. Unfortunately, since underground pipelines are “out of sight and out of mind” improvements, this line item has historically been underfunded, increasing the risk of significant water main breaks and system losses similar to the ones experienced by the City of Los Angeles in recent months. To fully fund the replacement of all of these facilities would require an investment of approximately $80-$90 Million, or $4-$5 Million per year for a 20-year replacement plan. The current level of annual funding for this line item is approximately $2 Million, down from the original annual budget level of $3.8 Million to minimize the impacts on water rates at this time. The work with the City to conduct this Sustainable Water Master Plan (SWMP) has supported the development and use of the City’s current water system five-year Capital Improvement Plan. These programs and projects address the full range of capacity, reliability, sustainability, and self-sufficiency improvements. They are phased for implementation to support the methodical implementation of the SWMP to meet the needs of the City’s needs while minimizing the financial impacts on its customers.

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City Council, Housing Authority and Redevelopment Successor Agency Report City Council Meeting: October 28, 2014 Agenda Item: 8-D To:

Mayor and City Council Chairperson and Housing Authority Members Chairperson and Redevelopment Successor Agency Members

From:

Gigi Decavalles-Hughes, Director of Finance Martin Pastucha, Director of Public Works Donna Peter, Director of Human Resources

Subject:

FY 2013-14 Year-End Budget Changes; FY 2014-15 Budget, Position and Compensation Changes; and Rate Changes for the Rental of the Santa Monica Pier Carousel

Recommended Action Staff recommends that the City Council, Housing Authority and Successor Agency to the Santa Monica Redevelopment Agency: 1. Approve changes to the Fiscal Year 2013-14 Revised Budget as detailed in Attachment A1; and 2. Approve changes to the Fiscal Year 2014-15 Adopted Budget as detailed in Attachment A2. Staff also recommends that the City Council: 1. Review the City’s year-end financial status; 2. Adopt a Resolution establishing classification and salary rates for various positions detailed in Attachment B; 3. Approve the position and classification changes detailed in Attachment C; and 4. Adopt a resolution of the City of Santa Monica revising the rate schedule for the rental of the Santa Monica Pier Carousel detailed in Attachment D.

Executive Summary Staff recommends various changes to the FY 2013-14 Revised Budget to reflect significant events, to adjust Capital Improvement Program budgets, and to revise rental rates for the Santa Monica Pier Carousel to reflect comparable venues. Finally, staff 1

recommends changes to the FY 2014-15 Adopted Budget for General Fund expenditure control savings allocations and for position and classification changes based on changes in operations. Including the changes recommended in this report, the General Fund ended FY 2013-14 with revenues $17.3 million greater than estimated actuals, and operating expenditures $5 million below budget, for a net $22.3 million positive impact compared to projections. These reflect unaudited year-end results. These surplus funds, the majority of which are one-time, will be used for expenditure control budgeting, the new Enterprise Resource Planning (ERP) system to be purchased in FY 2014-15, increased contributions to the Workers’ Compensation Self Insurance Fund in order to maintain an appropriate funding level to cover liabilities, and to prefund and paydown the City’s retirement benefit liabilities. Including the changes recommended in this report, Non-General funds ended the year with operating expenditures $3.5 million below budget, and revenues $2.6 million greater than estimated actuals, for a $6.1 million positive impact compared to budget. These funds will be used to build reserves, fund ongoing operations, and support future capital projects. In this report, staff recommends $0.03 million in total expenditure adjustments for FY 2013-14: $0.02 million in the General Fund and $0.01 million in other funds. The changes are related to the Summer Go with the Flow program. The staff report also recommends $6.8 million in expenditure adjustments in FY 2014-15, $4.1 million in the General Fund, and $2.7 million in other funds. These changes make staffing and classification-related adjustments and allocate expenditure control budget amounts.

Background On June 25, 2013, Council adopted the FY 2013-14 Budget as the first year of the FY 2013-15 Biennial Budget; and adopted the second year of the FY 2012-14 Capital Improvement Program Budget. On October 22, 2013 and February 11, 2014, Council approved certain revisions to the FY 2013-14 Revised Budget that adjusted revenues, expenditures and staffing.

Changes included in this staff report represent the final

modifications to FY 2013-14.

On June 24, 2014, Council adopted the FY 2014-15 Budget as the second year of the FY 2013-15 Biennial Budget; and adopted the first year and approved the second year 2

of the FY 2014-16 Biennial Capital Improvement Program Budget. Staffing changes, Water Conservation Unit funding, and expenditure control savings allocations are the first modifications to this budget.

Discussion The year-end report provides Council with an overview of the City’s financial performance as compared to budget, and aligns budgets with significant operational shifts whose impacts were not known until the last half of FY 2013-14. The information gathered during staff’s review of year-end budget performance will inform the upcoming financial status update, to be presented to Council in January 2015, as well as the FY 2015-17 biennial budget process that will be completed in June 2015.

Fiscal Year 2013-14 Budget Year-End Status The City ended the year with greater revenues and lower expenditures than budgeted. General Fund revenues were $17.3 million, or 5.1%, greater than the FY 2013-14 estimated actual amount.

Approximately $6.9 million of the increase is anticipated to

be on-going, including $1.9 million in fees and charges; $1.4 million from local taxes, $1.1 million from parking revenues, $1 million from parking citations, and $1.5 million from various other sources.

The remaining $10.4 million of the increase is from

one-time sources that will be used to support one-time costs. These include greater than anticipated residual property tax and Successor Agency reimbursements of City costs related to RDA dissolution ($4.6 million); year-end financial reporting adjustments to investment income ($2.6 million); and $3.2 million in various other one-time revenues.

Including the adjustments in this report, General Fund expenditures were $5 million, or 1.8%, below budget. This amount includes $8.3 million from Department savings, offset primarily by the appropriation of one-third of the savings back to the departments as part of the expenditure control budgeting program. Over 69% of Department savings was due to 116 vacant positions. Remaining supplies and expenses savings indicate

3

more efficient energy use, decreased reliance on consultants, lower than projected training needs, and conservative spending on ongoing operations.

Including adjustments recommended in this staff report, other funds ended the fiscal year with revenues $2.6 million, or 1.0%, above estimated actual receipts, and expenditures $3.5 million or 1.7%, below budget, for a net positive impact of $6.1 million.

As projected, the Housing Authority Fund required a General Fund

operating subsidy, included in the FY 2013-14 Revised Budget.

Funds historically

requiring General Fund support, including the Pier, Airport, and Beach Funds, ended the year with a positive balance.

Non-General Fund one-time operating savings of $6.1 million will contribute towards enterprise and internal service reserves (Water, Wastewater, Resource Recovery and Recycling, Big Blue Bus, Vehicle Management and Self-Insurance funds); and support future capital projects (Airport, Beach, Pier funds). These savings are offset by revenue gaps in grant funds (Community Development Block grants and Miscellaneous Grants funds) related to project expenditure and reimbursement timing.

On May 27, 2014, staff presented Council with the General Fund Financial Status Update that showed the five year forecast holding relatively steady, with a slightly improved outlook that anticipates a manageable structural deficit that is less than 1% of the General Fund budget at its worst. FY 2013-14 year-end results are better than projected, but are not sufficient to indicate a change in forecasting at this time. Staff anticipates that the entire $22.3 million FY 2013-14 savings will be set aside for expenditure control budgeting, the new ERP system to be purchased in FY 2014-15, increased contributions to the Workers’ Compensation Self Insurance Fund in order to maintain an appropriate funding level to cover liabilities, and to prefund and paydown the City’s retirement benefit liabilities.

4

Fiscal Year 2013-14 Operating Budget Changes Recommended changes include a net $0.03 million in adjustments: a net $0.02 million increase in the General Fund and a $0.01 million increase in other funds.

These

operating budget adjustments reflect appropriations for the Summer Go with the Flow program and one of four equal $14 million payments to the Los Angeles County Auditor Controller per the stipulated judgment with the State Department of Finance and the State Controller’s Office on October 28, 2013 ("Stipulated Judgment") regarding the dissolution of the City’s Redevelopment Agency. The funds to cover this payment were previously Redevelopment funds and had been set-aside for this purpose. Pier Carousel The City makes the Santa Monica Pier Carousel (the “Carousel”) available for private and semi-private uses, including special event rental and filming with revenues used to support the operation and maintenance of the Carousel.

The attached resolution

proposes private and semi-private uses as well as rental rates for the Carousel. The Santa Monica Pier Corporation, under a Services Agreement with the City last renewed by Council on July 23, 2013, is responsible for the management of Carousel rentals and receives compensation of fifty percent of the rental rate. Rental rates were last updated in 2002. The proposed rental rates have been adjusted from their 2002 amounts to reflect comparable venue rental rates. The resolution also proposes that the Carousel be rented out for private events held during regular business hours. These events would be limited to six (6) per year and require prior consent of the City. The proposed rate schedule preserves discounts for non-profit groups and midweek and off-season event rentals. Depending on the type of rental and number of guests, the proposed rates would increase between 9% and 25% from the rates set in 2002. Revenue to the City under the proposed rate schedule is estimated to increase by $10,000.

Fiscal Year 2014-15 Operating Budget Changes Recommended changes include a $4.1 million increase to the General Fund.

The

budget adjustments reflect personnel changes, appropriations to fund the Water

5

Conservation Unit, and expenditure control budgets. These changes are detailed in Attachment A2. Personnel Changes This report includes staffing adjustments to reflect ongoing operational changes, and the results of classification and compensation studies. The primary reason for each change is listed in Attachment C. These changes result in a 4.5 Full Time Equivalent (FTE) employee increase. Together, position changes result in an estimated $485,372 General Fund increase in FY 2014-15, of which $392,850 will be reimbursed by the Water Fund.

Water Conservation Unit California is in an unprecedented drought; the City has made a commitment to achieving water self-sufficiency by 2020. Reducing water use now is both a droughtmanagement strategy and a means towards long-term water self-sufficiency and water reliability. On August 12, 2014, Council adopted a resolution declaring a Stage 2 Water Supply Shortage and directed staff to return with a detailed Stage 2 Water Supply Shortage implementation plan.

The City’s strategy for citywide water conservation

policies, conservation programs, enforcement, and plans for community outreach and education is included in Item 8-B on the Council’s October 28, 2014 agenda. The scale of effort needed requires the creation of a new six-person Water Conservation Unit in the Office of Sustainability and the Environment (OSE) and a citywide education and outreach campaign. Four new limited-term positions are included in the salary and position changes detailed in Attachment C. One add-delete is recommended to create a unit lead. One existing permanent OSE staff member who is currently responsible for such projects would also be part of the unit. In addition to limited term staff and the outreach campaign ($605,000), staff is requesting $257,000 to house and support new positions, and to implement water conservation programs. This unit would work collaboratively throughout the implementation of the Stage 2 Water Shortage to ensure that it is effectively and efficiently administered. Once the drought is over, the unit would be scaled back or disbanded. 6

Consolidated Public Safety Communications Center The FY 2014-15 Adopted Budget includes the transfer of funds from the Police and Fire departments to the Office of Emergency Management for the collocated Public Safety Communications Center.

Due to a delay in hiring a Communications Center

Administrator, the Police and Fire communications centers have not yet migrated to joint police and fire dispatching. At this time, staff recommends a transfer of six months of funding from the Office of Emergency Management to the Police and Fire departments for staffing the Police and Fire communication centers. Staff anticipates the transition process to begin at midyear.

Expenditure Control Budgeting On February 8, 2011, Council authorized staff to implement expenditure control budgeting, a cost-saving strategy that provides an incentive for departments to save budget appropriations.

This process continues to yield benefits as General Fund

departments saved a total of $8.3 million in FY 2013-14 operating expenses. One-third of the savings, or $2.8 million, will go back to departments to spend on activities furthering each department’s mission. This $2.8 million appropriation makes up close to 70% of the report’s recommended FY 2014-15 General Fund appropriations. Fiscal Year 2014-15 Capital Improvement Program (CIP) Budget Changes Requested changes to the CIP budget include a $2.6 million increase in other funds. The changes reflect: •

Correcting a capital project for affordable housing activities.

•

Establishing a capital budget for the Pier Safety Barrier project.

•

Establishing a capital budget for a Fleet Tenant Improvement project.

The entire list of changes and adjustments to the CIP budget is shown in Attachment A2.

7

Next Steps As the final step in the close of FY 2013-14, Council will receive the Comprehensive Annual Financial Report later this fiscal year. Staff will consider impacts of year-end results and any other significant budget adjustments with its regular six month financial status update to Council in January 2015. Financial Impacts & Budget Actions The budget changes recommended for FY 2013-14 result in a $0.03 million, or 0.01%, net increase over the FY 2013-14 General Fund Revised Budget.

Detail for these

changes is in Attachment A1. Recommended FY 2014-15 expenditure changes result in a $6.8 million or 1.2% increase over the expenditure budget. Detail for FY 2014-15 changes is in Attachment A2. Prepared by: Susan Lai, Budget Manager Approved:

Forwarded to Council:

Gigi Decavalles-Hughes Director of Finance

Rod Gould City Manager

Donna Peter Director of Human Resources

Martin Pastucha Director of Public Works Attachments: A1: FY 2013-14 Budget Adjustments A2: FY 2014-15 Budget Adjustments B: Resolution for Position Changes C: Position and Classification Changes FY 2014-15 Quarter 1 D: Rate Resolution 8

ATTACHMENT  A1

REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS REVISIONS:  FY 2013‐14

Fund/Department/Division

 FY 2013‐14  Increase /  (Decrease) 

Description

Expenditure Budget Adjustments ($ in thousands) GENERAL FUND (01) Community and Cultural Services Reflects appropriation from funds set aside for Civic Auditorium interim use and  program development.

                          80.0 $                       80.0

Public Works Reflects appropriation from reserve to fund Federal Aviation Administration legal  costs.                        555.3 Reflects appropriation for summer Go With the Flow program expenditures.

                          22.9 $                     578.2

Non Departmental Transfers

Reflects Redevelopment Agency related settlement payment issued in FY 2013‐14                   14,196.1 $               14,196.1 TOTAL GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS $               14,854.3

FUND BALANCE RELEASE

General Fund Reserve ‐ RDA

Reflects Redevelopment Agency related settlement payment issued in FY 2013‐14                  (14,196.1)

General Fund Reserve ‐ Airport  Litigation

Reflects appropriation from reserve to fund Federal Aviation Administration legal  costs.                       (555.3)

General Fund Reserve ‐ Civic  Auditorium

Reflects appropriation from funds set aside for Civic Auditorium interim use and  program development.

                        (80.0) $              (14,831.4)

TOTAL GENERAL FUND FUND BALANCE ADJUSTMENTS $              (14,831.4) TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS $                       22.9 NON‐GENERAL FUNDS PIER FUND (30)

Capital Improvement Program

Reflects appropriation to correct FY 2013‐14 expenditure overage.                           0.01 TOTAL 30 FUND EXPENDITURE ADJUSTMENTS $                       0.01

FLEET MANAGEMENT (54)

Public Works

Reflects appropriation for summer Go With the Flow program expenditures.                           10.9 TOTAL 54 FUND EXPENDITURE ADJUSTMENTS $                       10.9 TOTAL NON‐GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS $                       10.9 GRAND TOTAL FY 2014‐15 ALL FUNDS EXPENDITURE ADJUSTMENTS $                       33.8

Page 1 of 1

ATTACHMENT A2

REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS REVISIONS:  FY 2014‐15

Fund/Department/Division

 FY 2014‐15  Increase /  (Decrease) 

Description

Expenditure Budget Adjustments ($ in thousands) GENERAL FUND (01) City Manager Community and Government  Relations Office of Sustainability and the  Environment

Office of Emergency  Management

Reflects correction to fully fund 1.0 FTE Community Relations Coordinator.

                          70.1

Reflects staffing additions for the Water Conservation Unit.

                       405.0

Reflects additional expenses to support the Water Conservation Unit.  Further  detail is in Council Agenda Item 8‐B, Stage 2 Water Supply Shortage  Implementation.

                       457.0

Reflects reallocation of OEM staffing budget to Police and Fire pending joint  operations center launch. Reflects reappropriation of one‐time training and equipment supplies unpent in  FY 2013‐14.

                   (1,764.4)                        400.0 $                    (432.3)

Finance Reflects personnel classification changes, to align positions with responsibilities.

                        (30.4) $                      (30.4)

City Attorney Reflects staffing changes to convert a Legal Administrative Staff Assistant to  Executive Assistant to the City Attorney, and to add a 0.5 FTE Community Liaision  for the Tenant Harassment Program.                           66.9 $                       66.9 Human Resources Reflects staffing changes.

                            0.1 $                         0.1

Police Reflects reallocation of OEM staffing budget to Police pending joint operations  center launch. Reflects staffing adjustments.

                    1,171.0                         (14.1) $                  1,156.9

Fire Reflects reallocation of OEM staffing budget to Fire pending joint operations  center launch.

                       593.4 $                     593.4

TOTAL GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS $                  1,354.6 Expenditure Control Savings Expenditure Control

Represents one‐third of General Fund Department savings, for one‐time projects  associated with each Department's mission.                     2,772.6 $                  2,772.6

Page 1 of 2

ATTACHMENT A2

REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS REVISIONS:  FY 2014‐15

Fund/Department/Division

 FY 2014‐15  Increase /  (Decrease) 

Description

Capital Improvement Program Bergamot Transit Village Memorial Park Plan Open Data Capital Project

To reallocate funds reflecting changes in project name and scope. To reallocate funds reflecting changes in project name and scope. Reflects increase to fund City's Open Data project

Expenditure Control

Reflects Department expenditure control contributions to the City's Open Data  project.

                      (116.0)                        116.0                           55.0                         (55.0) $                         ‐

TOTAL GENERAL FUND CAPITAL EXPENDITURE ADJUSTMENTS $                         ‐ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS $                  4,127.2 NON‐GENERAL FUNDS Capital Improvement Program SPECIAL REVENUE SOURCE (04) FUND Low / Moderate Income  Housing

Reflects correction to FY 2014‐15 Capital Improvement Program budget.                     2,296.7 TOTAL 04 FUND EXPENDITURE ADJUSTMENTS $                  2,296.7

PIER (30) Pier Safety Barrier

Funds to construct a barrier to address safety needs.

Pier West End Emergency  Escape

Funds released to reflect revised project timing and requirements.  Adjustment  offsets Pier Safety Barrier expenditures                         (35.0) TOTAL 30 FUND EXPENDITURE ADJUSTMENTS $                       80.0

                       115.0

FLEET MANAGEMENT (54) Fleet Tenant Improvement

Funds Fleet Tenant Improvements from available fund balance.                         292.0 TOTAL 54 FUND EXPENDITURE ADJUSTMENTS $                     292.0 TOTAL NON‐GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS $                  2,668.7 GRAND TOTAL FY 2014‐15 ALL FUNDS EXPENDITURE ADJUSTMENTS $                  6,795.9

Page 2 of 2

ATTACHMENT B City Council Meeting: October 28, 2014

Santa Monica, California

RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR ACCOUNTING MANAGER, AQUATICS PROGRAM COORDINATOR (AS-NEEDED), CHIEF ADMINISTRATIVE OFFICER, COMMUNITY LIAISON, EXECUTIVE ASSISTANT TO THE CITY ATTORNEY, HUMAN RESOURCES ASSISTANT, HUMAN RESOURCES INFORMATION SYSTEMS ANALYST, HUMAN SERVICES ADMINISTRATOR – FISCAL, PAYROLL SYSTEMS ANALYST, POLICE CHIEF, PRINCIPAL TREASURY ANALYST, REVENUE AND COLLECTIONS MANAGER, SENIOR TRANSPORTATION PLANNER – BICYCLE AND PEDESTRIAN, SUSTAINABILITY OUTREACH COORDINATOR, WATER RESOURCES SPECIALIST, AND YOUTH AND FAMILY SUPPORT SERVICES COORDINATOR. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The following salary levels are hereby established, effective July 1, 2014, for the indicated permanent classifications: ACCOUNTING MANAGER

$12,693/month, Step 5

CHIEF ADMINISTRATIVE OFFICER

$14,707/month, Step 5

COMMUNITY LIAISON

$7,732/month, Step 5

EXECUTIVE ASSISTANT TO THE CITY ATTORNEY

$9,024/month, Step 5

HUMAN RESOURCES ASSISTANT

$4,992/month, Step 5

HUMAN RESOURCES INFORMATION SYSTEMS ANALYST

$9,916/month, Step 5

HUMAN SERVICES ADMINISTRATOR – FISCAL

$10,118/month, Step 5

1

PAYROLL SYSTEMS ANALYST

$9,024/month, Step 5

POLICE CHIEF

$24,426/month, Step 5

PRINCIPAL TREASURY ANALYST

$9,929/month, Step 5

REVENUE AND COLLECTIONS MANAGER

$12,693/month, Step 5

SENIOR TRANSPORTATION PLANNER – BICYCLE AND PEDESTRIAN

$10,215/month, Step 5

SUSTAINABILITY OUTREACH COORDINATOR

$7,609/month, Step 5

WATER RESOURCES SPECIALIST

$6,921/month, Step 5

YOUTH AND FAMILY SERVICES SUPPORT COORDINATOR

$7,210/month, Step 5

SECTION 2. The following salary levels are hereby established, effective July 1, 2014, for the indicated as-needed classifications: AQUATICS PROGRAM COORDINATOR

$24.48/hour Step 1

SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM:

Marsha Jones Moutrie City Attorney

2

ATTACHMENT C

POSITION AND CLASSIFICATION CHANGES DELETE FUND

01

Dept

Division

CAO

2310 - City Attorney

Delete (#FTE)

1.0

ADD POSITION TITLE

Legal Administrative Staff Assistant

FUND

Dept

Division

REASON Add (#FTE)

POSITION TITLE

PRIMARY REASON

01

CAO

2310 - City Attorney

1.0

Executive Assistant to the City Attorney

Title change - salary increase

01

CAO

2310 - City Attorney

0.5

Community Liaison

New position

SUBTOTALS NET FTE CHANGE

NET SAL CHANGE

-

4,672

0.5

62,195

01

CCS

2621 - Administration (CCS Human Services)

1.0

Human Services Administrator

01

CCS

2621 - Administration (CCS Human Services)

1.0

Human Services Administrator - Fiscal

Title change - no salary change

-

-

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Sustainability Analyst

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Senior Sustainability Analyst

Title change - salary increase

-

3,056

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Sustainable Outreach Coordinator

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Sustainability Outreach Coordinator

Title change - no salary change

-

-

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Sustainability Analyst (LIMITED TERM)

New position

1.0

106,102

01

CMO

2260 - Office of Sustainability & the Environment

2.0

Water Resources Specialist (LIMITED TERM)

New position

2.0

198,990

01

CMO

2260 - Office of Sustainability & the Environment

1.0

Project Support Assistant (LIMITED TERM)

New position

1.0

84,702 4,725

01

Finance

2080 - Budget

1.0

Assistant Administrative Analyst

01

Finance

2080 - Budget

1.0

Administrative Analyst

Operational change

-

01

Finance

2210 - Administration (Finance)

1.0

Principal Budget Analyst

01

Finance

2210 - Administration (Finance)

1.0

Principal Treasury Analyst

Title change - no salary change

-

-

01

Finance

2220 - Financial Operations

1.0

Financial Operations Manager

01

Finance

2220 - Financial Operations

1.0

Accounting Manager

Operational change

-

(18,026)

01

Finance

2220 - Financial Operations

1.0

Financial Systems Analyst

01

Finance

2220 - Financial Operations

1.0

Payroll Systems Analyst

Title change - no salary change

-

-

01

Finance

2240 - Business & Revenue Operations

1.0

Staff Assistant III

01

Finance

2240 - Business & Revenue Operations

1.0

Staff Assistant II

Operational change

-

(17,057)

01

HR

2520 - Employee Relations and Benefits

1.0

HR Systems Employer Employee Relations Analyst

01

HR

2520 - Employee Relations and Benefits

1.0

Human Resources Information Systems Analyst

Title change - no salary change

-

-

01

HR

2520 - Employee Relations and Benefits

1.0

Human Resources Assistant

01

HR

2520 - Employee Relations and Benefits

1.0

Human Resources Assistant

Equity Adjustment

-

73

01

PCD

2670 - Strategic and Transportation Planning

1.0

Deputy Director - Special Projects

01

PCD

2670 - Strategic and Transportation Planning

1.0

Senior Transportation Planner - Bicycle and Pedestrian

Reclassification

-

-

01

Police

3040 - Administrative Services (Police)

1.0

Police Chief

01

Police

3040 - Administrative Services (Police)

1.0

Police Chief

Equity Adjustment

-

9,963

01

Police

3070 - Criminal Investigation

1.0

Youth Services Counselor

01

Police

3070 - Criminal Investigation

1.0

Youth and Family Services Support Coordinator

Title change - salary decrease

TOTAL

-

(24,079)

4.5 FTE

415,316

ATTACHMENT D

City Council Meeting: October 28, 2014

Santa Monica, California

RESOLUTION NUMBER _________ (CCS) (City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING PRIVATE AND SEMI-PRIVATE USES AND RENTAL RATES FOR THE SANTA MONICA PIER CAROUSEL WHEREAS, the Santa Monica Pier (the “Pier”) has been in existence since 1908; and WHEREAS, the Pier is a very successful entertainment center with restaurants, arcades, retail establishments, fishing and observation decks, an aquarium, Pacific Park, an amusement park, and a historic carousel (the “Carousel”); and WHEREAS, the Pier has historically attracted large crowds, and the vehicular and pedestrian traffic has increased significantly since the opening of Pacific Park; and WHEREAS, the Pier has special events year round that attract thousands of visitors; and WHEREAS, on July 24, 2001, the City Council of the City of Santa Monica (the “City Council”) adopted Resolution Number 9704 (CCS) (“Resolution No. 9704”) which established three permitted zones for street performers and persons, including vendors, 1

utilizing tables or carts for the purpose of displaying or distributing merchandise, goods, written materials or food on the Pier; and WHEREAS, Resolution No. 9704 designates the area located east of and adjacent to the Carousel as a permitted zone; and WHEREAS, on or about June 28, 2012, the City of Santa Monica (the “City”) and the Santa Monica Pier Corporation (the “Pier Corporation”) entered into an Amended and Restated Services Agreement, Agreement Number 9566 (CCS) (the “Services Agreement”) for purposes of governing certain operational and management functions concerning the Pier; and WHEREAS, pursuant to the Services Agreement, the Pier Corporation has agreed to provide services to develop, implement and maintain certain programs and functions in connection with the Santa Monica Pier; and WHEREAS, the City, in order to support the operation and maintenance of the Carousel, permits the Carousel and building to be made available for private and semiprivate uses, including special events and filming on a rental basis; and WHEREAS, pursuant to the Services Agreement, the Pier Corporation is responsible for booking, promoting, and scheduling of rentals of the Carousel based on rental rates set by the City; and WHEREAS, on or about August 13, 2002, the City Council adopted Resolution 9789 (CCS) establishing rates for event and filming rental of the Carousel; and

2

WHEREAS, pursuant to Section 2.72.010 of the Santa Monica Municipal Code, the City has the authority to establish and set the amount of fees or charges for the private commercial use of public property; and WHEREAS, the City has the authority to charge market rates for private use of public resources, including the Carousel; and WHEREAS, the City has analyzed the current rental rates and proposes that the rental rates set forth in Resolution 9789 be adjusted to more closely reflect rental rates of comparable venues; and WHEREAS, the City desires to establish certain private and semi-private uses and rental rates for the Carousel. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The Carousel shall be available for private and semi-private uses in accordance with the terms and conditions of this Resolution and the Services Agreement as follows: A.

The Carousel shall be available for private events held after regular

operating hours; private events held during regular operating hours; semi-private events; and filming. B.

The Carousel may be available for private events held during regular

operating hours and before 5 p.m. no more than six (6) times per year. Any rental of the Carousel during regular operating hours and before 5 p.m. requires prior consent of the

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City. Applications for private events held before 5 p.m. during regular operating hours may be denied if there is a conflict with a pre-existing activity. C.

The Carousel’s East Deck may be available in conjunction with rental of

the Carousel for private events held after regular operating hours no more than twenty (20) times per year. Applications for such events may be denied if: 1) there is a conflict with a pre-existing activity; or 2) the Pier’s other permitted zones are unavailable due to a conflicting use, including, but not limited to, construction, a community event, or other designated City use. SECTION 2. Effective November 1, 2014, the Santa Monica Pier Carousel Rental Rate Schedule for private and semi-private uses of the Carousel shall be as follows: Private Events Held After Regular Operating Hours # of Guests Rental per Hour *20% Discount **35% Discount 1-99 $250 $200 $163 100-199 $350 $280 $228 200-299 $400 $320 $260 300-350 $450 $360 $293 East Deck – Half $65 $52 $42 East Deck – Full $100 $80 $65 * Discount given to midweek and off-season parties. ** Discount given to midweek alcohol-free parties hosted by nonprofit groups. Only nonprofit groups with documented tax-exempt status shall be eligible for discount. Private Events Held During Regular Operating Hours # of Guests Rental per Hour 1-99 $600 100-199 $800 200-299 $900 300-350 $1,000

Semi-Private Event # of Guests 1-99 100-199 200-299

Rental per Hour $75 $100 $125

***25% Discount $56 $75 $94

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*** Discount given to nonprofit groups and to mid-week parties. Only nonprofit groups with documented tax-exempt status shall be eligible for discount.

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Children's Party Specials (Semi-Private) # of Guests Flat Rate (three hours) Up to 30 $250 Up to 60 $350 Up to 90 (expand area) $550 Additional half-hour $25

$5 per additional person $5 per additional person

Filming Type Rental per Hour ***35% Discount Commercial Film $400 $260 Commercial Stills $300 $195 (In addition to facility rental fee, a film permit is required. Carousel Operators must be hired at additional charge.) ****Discount given to nonprofit and student groups. Only nonprofit groups with documented tax-exempt status shall be eligible for discount.

SECTION 3. The Pier Corporation may charge additional fees for services above and beyond the facility rental fees, including, but not limited to, table and chair rentals, referral fees, commissions, advertising fees, and sales of merchandise, party favors and memorabilia, as set forth in the Services Agreement. SECTION 4. Resolution 9789 (CCS) is hereby repealed in its entirety. SECTION 5. If there are any conflicts between the provisions of this Resolution and the provisions of any prior Resolution, the provisions of this Resolution shall control. If there are any conflicts between the rental rates set forth in this Resolution and any prior rental rate schedule, the rental rate schedule set forth in this Resolution shall control. SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM:

_________________________ MARSHA JONES MOUTRIE City Attorney 6