Agenda packet — Santa Monica City Council, October 25, 2022 (part 2 of 4)

Big Blue Bus will evaluate the results of the monitoring program to determine if a disparate impact exists as a result of prior policy actions and decision-making. Big Blue Bus will take steps to remedy any potential disparity where the monitored service fails to meet the established service standards or policies.

The results of the monitoring program will be submitted to the Santa Monica City Council and the FTA as part of the triennial Title VI Program submittal.

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Service and Fare Equity Policies
In accordance with FTA Circular 4702.1B, “Title VI Requirements and Guidelines for Federal Transit Administration Recipients,” effective October 1, 2012, transit providers, operating 50 or more fixed route vehicles during peak service and serving a population of 200,000 or greater, must evaluate prior to implementation, any and all proposed changes that exceed the transit provider’s major service change threshold to determine whether those changes will have a discriminatory impact.

To comply with this requirement, transit providers must adopt the following three policies:
 Major Service Change Policy
 Disparate Impact Policy
 Disproportionate Burden Policy
The Major Service Change Policy defines what actions constitute a major change and are therefore subject to a service or fare equity analysis. The Disparate Impact Policy establishes a threshold for determining when adverse impacts of a proposed change are borne disproportionately by the minority population. The Disproportionate Burden Policy establishes a threshold for determining when adverse impacts of a proposed change are borne disproportionately by the low-income population.

The low-income population is defined as all persons living at or below the U.S. Federal Poverty Guidelines as established annually by the U.S. Department of Health & Human Services. Big Blue Bus intends to use rider demographic data rather than Census data for this calculation because the percent low-income population in the service area is close to the fifteen percent (15%) threshold established in the Disproportionate Burden Policy.

Major Service and Fare Change Policy
Proposed changes that qualify as a major service change include changes to existing routes that result in an increase or decrease in route revenue miles or route miles that are equal to or greater than twenty-five percent (25%) of the existing service, as happening one-time or cumulatively throughout the year. A major service change also includes the introduction of a new route and the elimination of an existing route.

All fare and fare media changes will be subject to a fare equity analysis which will include an analysis of adverse impacts.

Changes that are exempt from this policy include the introduction or elimination of a limited-term route that will be, or has been, operated for no more than twelve (12) months, promotional or temporary fare reductions lasting no longer than six (6) months, and occasional “free ride” days.

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Disparate Impact Policy
A disparate impact occurs when the percent minority population adversely impacted by a major service change is fifteen percent (15%) higher than the average minority population of the Big Blue Bus service area, or when the percent non-minority population beneficially impacted by a major service change is fifteen percent (15%) higher than the average non-minority population of the Big Blue Bus service area.

A disparate impact analysis on routes with a major service change will be examined on a cumulative basis by evaluating all route changes together.

Disproportionate Burden Policy
A disproportionate burden occurs when the percent low-income population adversely impacted by a major service change is fifteen percent (15%) higher than the average low-income population of the Big Blue Bus service area, or when the percent non-low-income population beneficially impacted by a major service change is fifteen percent (15%) higher than the average non-lowincome population of the Big Blue Bus service area.

A disproportionate burden analysis on routes with a major service change will be examined on a cumulative basis by evaluating all route changes together.

If a disproportionate burden exists as a result of the proposed changes, Big Blue Bus may take steps to avoid, minimize, or mitigate the impact of the proposed change on the low-income population.

Public Input & Review
A major service change will be subject to a public hearing and adoption by the Santa Monica City Council. Public input will be actively sought in regard to the proposed changes prior to the public hearing. Customers, stakeholders, and the general public will be invited to provide comment through at least one of the following methods: the Big Blue Bus website, public meetings, through surveys, or at public hearings with the Santa Monica City Council.

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Public Notification
When required, the public comment process will begin with the publishing of a legal notice seven (7) calendar days in advance of the public hearing date in the local newspapers of general circulation. This notice will set a specific place, date, and time for one or more public hearings.

Written comments will also be accepted on the proposed changes seven (7) calendar days beyond initial publishing of the legal notice. Legal notices will inform the public of the proposed actions that initiated the public comment process. Press releases will also be prepared and sent to the local media.

In addition to the public hearing process, Big Blue Bus employs various outreach methods including:
 Publication on website
 Information posted on buses
 Public meetings in various parts of the Big Blue Bus service area  Notices to public officials, key stakeholders, and community groups  Targeted surveys to riders of affected services
 E-communications to self-identified Big Blue Bus passengers (those who provide contact information)
 “Ambassador” personnel stationed at key bus stops and transit hubs to discuss service changes with customers
Scheduling Public Hearings
The public hearing(s) will be scheduled and conducted by the City of Santa Monica City Council at a time, date, and place to be designated. The facility utilized for public hearings will be accessible to persons with disabilities. Special arrangements will be made for vision or hearing impaired persons if requested at least three days prior to the meeting.

Procedure for Conducting Public Hearing
Forms will be available to attendees to register their presence and desire to speak. Public hearings will begin with a reading of the public notice, purpose, and proposed action that necessitated the public hearing. After an explanation of the proposed action is completed, the public will be invited to offer their comments. The City Council will determine the amount of time the public has to comment during the public hearing. After all registered persons have commented, a final opportunity will be offered for any additional public comment. This offering will precede the close of the public hearing.

Documentation of Public Hearing
Official records of public hearings on service or fare adjustments will be generated by:
 Affidavits of newspaper publications of public notices

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 Press releases conveying information on upcoming public hearings  Tape recordings and transcripts of proceedings
Addressing Public Comments Received
All relevant comments received verbally or in writing at a public hearing, or as otherwise conveyed to Big Blue Bus prior to the established deadline, will be entered into the public record of the comment process. Subsequent to the public comment period, staff will evaluate and analyze all relevant comments received and prepare a written report for consideration by the Santa Monica City Council.

City Council Notification
The City Council will be notified by the City Manager of all written public comment solicitations in advance of all scheduled public hearings on fare and service adjustments. A summary of public feedback received will be provided to the City Council along with staff recommendation for final disposition of the issues. Upon review by the City Council, the City Manager will be directed accordingly to proceed with or amend the recommended service and/or fare adjustments.

Conclusion
Big Blue Bus is committed to the enforcement of USDOT’s Title VI regulations and will provide the most effective and efficient transit service possible, with full accountability to those it serves.

Through the use of the established service standards and policies, Big Blue Bus will ensure that no person or group of persons shall be discriminated against with regard to the routing, scheduling, or quality of transit service on the basis of race, color, or national origin.

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6.7 Appendix G
Big Blue Bus Public Participation Plan and Hearing Procedures for Major Service or Fare Changes

1. Background
Santa Monica’s Big Blue Bus (BBB) is required by the Federal Transit Act, as amended through 1992, to establish a policy which defines a process to solicit and consider public comment prior to raising fares or implementing a major change of transit services.

2. BBB Policy
a. It shall be the BBB’s policy that public comments be solicited prior to:
i. Any permanent fare or fare media change.
ii. A twenty-five percent (25%) or more change in the number of daily transit revenue vehicles miles of a route; i.e., the total number of miles operated by all vehicles in revenue service for a particular day of the week on an individual route.
iii. A twenty-five percent (25%) or more change in the number of transit route miles of a route, i.e., the total mileage covered during one round trip by a vehicle in revenue service on a particular route.
iv. Proposed introduction or elimination of a new route that will be, or has been, operated for more than twelve (12) months. b. It shall be the BBB’s policy that the following shall be exempt from public comment and public hearing:
i. A minor change in fare or service. Examples would be temporarily reduced, experimental or promotional fares, minor reroutes or minor temporary reroutes due to street
construction(s) or minor schedule changes.
ii. Experimental, seasonal or emergency fare changes expected to exist fewer than six (6) months in service. If these changes ultimately continue to remain in effect for more than six (6) months, they will be the subject of public comment and public hearing.

3. Public Notification
When required, the public comment process will begin with the publishing of a legal notice seven (7) calendar days in advance of the public hearing date in the local newspapers of general circulation. This notice will set a specific place, date,

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In addition to the public hearing process, Big Blue Bus employs various outreach methods including:
 Publication on website
 Information posted on buses
 Public meetings in various parts of the Big Blue Bus service area  Notices to public officials, key stakeholders, and community groups  Targeted surveys to riders of affected services
 E-communications to self-identified Big Blue Bus passengers (those who provide contact information)
 “Ambassador” personnel stationed at key bus stops and transit hubs to discuss service changes with customers
All printed public information is bilingual at minimum which includes anything related to service (major and minor) changes, fare changes, policy updates, promotions, etc. All information on board our buses and at our bus stops is bilingual, including schedules and maps found in the Little Blue Book and System Map, maps and info at bus stops.

All notifications for public meetings are bilingual and ensure that language services are available upon request. Bilingual staff are present at the event in case the need arises. In addition, trained customer service staff is bilingual and language translation services are available to accommodate any other languages.

4. Scheduling Public Hearings
The public hearing(s) will be scheduled and conducted by the City of Santa Monica City Council at a time, date, and place to be designated. The facility utilized for public hearings will be accessible to persons with disabilities. Special arrangements will be made for vision or hearing impaired persons if requested at least three days prior to the meeting.

5. Procedure for Conducting Public Hearing
Forms will be available to attendees to register their presence and desire to speak.

Public hearings will begin with a reading of the public notice, purpose, and proposed action that necessitated the public hearing. After an explanation of the proposed

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Packet Pg. 511 Attachment: Big Blue Bus_Title VI Report_9.26.22 draft FINAL [Revision 2] (5363 : Adoption of Title VI Program) action is completed, the public will be invited to offer their comments. The City Council will determine the amount of time the public has to comment during the public hearing. After all registered persons have commented, a final opportunity will be offered for any additional public comment. This offering will precede the close of the public hearing.

6. Documentation of Public Hearings
Official records of public hearings on service or fare adjustments will be generated by:
 Affidavits of newspaper publications of public notices  Press releases conveying information on upcoming public hearings  Tape recordings and transcripts of proceedings

7. Addressing Public Comments Received
All relevant comments received verbally or in writing at a public hearing, or as otherwise conveyed to Big Blue Bus prior to the established deadline, will be entered into the public record of the comment process. Subsequent to the public comment period, staff will evaluate and analyze all relevant comments received and prepare a written report for consideration by the Santa Monica City Council.

8. City Council
The City Council will be notified by the City Manager of all written public comment solicitations in advance of all scheduled public hearings on fare and service adjustments. A summary of public feedback received will be provided to the City Council along with staff recommendation for final disposition of the issues. Upon review by the City Council, the City Manager will be directed accordingly to proceed with or amend the recommended service and/or fare adjustments.

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6.8 Appendix H
Community Outreach
Big Blue Bus hosted the following Public Hearings in February 2022, on proposed fare adjustments:

Thursday, February 10 | 5:30-7:30pm
Santa Monica Main Library
Martin Luther King Jr. Auditorium
601 Santa Monica Blvd.

Santa Monica, 90401
All printed public information is bilingual at minimum which includes anything related to service (major and minor) changes, fare changes, policy updates, promotions, etc. All information on board our buses and at our bus stops is bilingual, including schedules and maps found in the Little Blue Book and System Map, maps and info at bus stops.

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6.10 Appendix J
Fare Equity Analysis

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Title VI Fare Equity Analysis
Elimination of on-board cash fares and
magnetic fare cards
July 2021
July 2021

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Table of Contents
Table of Contents..........................................................................................................................................1 Purpose .........................................................................................................................................................2 Executive Summary.......................................................................................................................................2 Background ...................................................................................................................................................3 Fare Structure ...............................................................................................................................................3 Fare Utilization..............................................................................................................................................4 Proposed Fare Media Changes.....................................................................................................................5 Methodology.................................................................................................................................................5 Data Sources.............................................................................................................................................5 Definitions.................................................................................................................................................6 Title VI Policies..........................................................................................................................................6 Fare Equity Disparate Impact Policy .....................................................................................................6 Fare Equity Disproportionate Burden Policy ........................................................................................6 Fare Equity Analysis......................................................................................................................................7 Disparate Impact Analysis.........................................................................................................................7 Disparate Impact Findings.....................................................................................................................7 Disparate Impact Conclusion ................................................................................................................8 Disproportionate Burden Analysis............................................................................................................8 Disproportionate Burden Findings........................................................................................................8 Disproportionate Burden Conclusion ...................................................................................................9 Conclusion.....................................................................................................................................................9 Further Actions ...........................................................................................................................................10 Appendix .....................................................................................................................................................11

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Purpose
In the summer of 2021, Big Blue Bus (BBB) will pilot the introduction of a purely contactless fare system.

As a result, BBB is proposing a fare media change that will result in the elimination of on-board cash fares and the elimination of magnetic fare cards. During this pilot period, riders will only be able to pay their fare using either the regional TAP fare payment system or mobile ticketing. Cash and magnetic fare cards will no longer be accepted on-board. Riders will have a variety of options for obtaining TAP fares, and cash paying customers who are unbanked or underbanked will be able to replenish their TAP balances using ticket vending machines, available along every BBB bus route, or at the nearly 900 retail TAP vendor locations located across Los Angeles County. Smartphone users will be able to choose between TAP or mobile ticketing, depending on their preferences. The Contactless Fare Pilot is set to begin on July 5, 2021 and will run for six months ending on January 5, 2022.

The proposed fare media change is subject to a fare equity analysis as defined by BBB’s Major Service and Fare Change Policy. The fare equity analysis, contained herein, is required to ensure compliance with the Federal Transit Administration (FTA) Title VI regulations as defined by FTA Circular 4702.1B. The purpose of this analysis is to determine whether the proposed changes result in a disparate impact on the basis of race, ethnicity, or national origin, or a disproportionate burden on the defined low-income population.

Executive Summary
Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, or national origin in any program or activity that receives Federal funds or other Federal financial assistance. In compliance with this law, Big Blue Bus has conducted a Title VI analysis on the proposed fare media changes. The following analysis has found that the proposed changes will not result in an disparate impact on the minority population, or a disproportionate burden on the low-income population, as the changes do not exceed the adopted fifteen percent (15%) threshold as defined by Big Blue Bus policy.

While the impacts of the proposed changes do not exceed the established thresholds, BBB has and will continue to take action to lessen the challenges of adaptation to contactless fares. For example, BBB has hired a designated Contactless Fare Pilot Customer Service Associate on a one-year limited term appointment to coordinate the efforts to assist people in the transition to contactless fares. BBB has also embarked on an extensive communications effort on contactless fares, including how to get them, and promoting the benefits to passengers which include lower fares, faster boarding and travel times, and the opportunity to bypass cash and the associated risks to health.

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Background
Prior to 2015, all BBB customers paid their fare with either cash or magnetic fare cards. These two fare systems have significant downsides for both customers and BBB. Cash fare payment is much slower, on average, than other fare payment methods, due to the time required to physically insert the necessary bills and coins into the farebox. Over the course of 40 people boarding a bus, and using cash to pay their fare, the trip can require up to 13 additional minutes dedicated exclusively to the cash payment process.

The resulting delay in service has a substantial negative impact on rider experience, on-time performance, and operating costs across the system making transit a less attractive mode of transportation.

Contactless fare payment options have several benefits. They can reduce dwell times, improve on-time performance, and will ultimately result in faster travel times for passengers riding the bus. They also operate separately from the farebox and are, therefore, not susceptible to farebox malfunctions which result in lost revenue.

Additionally, cash and the farebox are known vectors for disease transmission, not only for passengers, but also for the driver, and staff that are assigned to count and process cash. While magnetic fare cards are significantly faster than cash, and eliminate the process of counting cash, passengers are still required to touch the farebox when paying. Magnetic fare cards also possess two additional negative qualities which are a high failure rate and the inability to integrate them into the regional fare card system for Los Angeles County.

Due to the pandemic, BBB suspended fare collection on March 20, 2020 to slow the spread of disease.

This led BBB staff to reexamine strategies for shifting more passengers to contactless fare media and a goal was set to pilot the elimination of on-board cash fares and magnetic fare cards soon after the fare collection resumed on February 14, 2021.

Fare Structure
BBB fares vary based on rider classification and fare category. Rider classifications include: Regular (age 19-61), Youth (age 5-18), Senior (age 62+)/Disabled/Medicare, and Child (age 4 and under). Fare categories include: Single Trip, Day Pass, 7-Day Pass, 13 Ride Pass, 30-Day Pass, Annual Pass, and EZ Pass.

Fares can be paid either on-board with cash or prior to boarding with TAP or mobile ticketing. Fare prices vary based on rider classification, fare category, and method of payment. Customers with a valid Access ID and children ages 4 and under ride for free.

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Fare Category
Regular Fares S/D/M Fares
On-Board
Cash Fare
TAP & Mobile
Ticket Fare
On-Board
Cash Fare
TAP & Mobile
Ticket Fare
Single Trip $1.25 $1.00 $0.50 $0.40
Day Pass - $4.00 - $1.50
7-Day Pass - $14.00 - -
13 Rides Pass - $14.00 - $6.00
30-Day Pass - $50.00 - $24.00
Annual Pass - $500.00 - -
EZ Pass - $110.00 - $42.00
Interagency Transfer - $0.50 - $0.25
Youth 30-Day Pass - $19.00 - -
Figure 1: Existing BBB Fare Structure as of March 2021
Fare Utilization
During the period of COVID-19 fare suspension, BBB took several measures to further attract, and encourage, riders to use contactless fare payment options when fare collection resumed in the future.

BBB worked closely with Santa Monica College (SMC) to shift their riders from magnetic fare cards to contactless fares, moving 12.2% of pre-COVID ridership to contactless fares in the process. BBB further reduced the base fare on TAP and mobile ticketing from $1.10 to $1.00 and introduced a new low Senior/Disabled/Medicare (S/D/M) fare on TAP and mobile ticketing of $0.40 (versus $0.50 cash S/D/M fare). BBB also enabled S/D/M riders to self-declare eligibility for a mobile ticket reduced fare, rather than having to go to the store to certify eligibility prior to obtaining the discount.

BBB also began offering Low Income Fare is Easy (LIFE) applications at the Transit Store. The LIFE program provides free fares to low-income riders using contactless fares (TAP). Lastly, in preparation for the contactless fare pilot, BBB hired a Customer Service Associate to work specifically on assisting vulnerable populations in adapting to contactless fares.

When fare collection resumed on February 14, 2021, cash ridership, as a percentage of total ridership, was significantly higher than it was before fare collection was suspended. Ridership on UCLA and SMC passes previously made up 23% of the total systemwide ridership. It was determined that in the absence of those rider populations, at institutions closed due to the pandemic, a large number of contactless fare riders had been removed from the system, leaving behind a majority of cash riders. Additionally, surveying completed in March 2021 showed that 74% of the new riders that began to use the system in the last year were using cash to pay their fare versus 52% of the riders who had been riding longer.

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Fare Media Type FY 2019-2020 March 2021 Survey Difference Cash on Bus 32.8% 56.9% 24.1%
Magnetic Fare Card 15.2% 0.0% -15.2%
Smartphone App 1.5% 1.5% 0.0%
TAP Card 44.8% 35.8% -9.0%
Other (UCLA, SMC, Access) 5.7% 5.8% 0.1%
Figure 2: Fare Utilization Comparison
As of March 2021, fare payment by contactless fare media had sunk from 46.3% prior to the COVID-19 suspension of fares to 37.3% after fare collection resume in February 2021. During this same period, cash usage increased from 32.8% to 56.9%. The customer profile is now more low-income and more minority, compared to pre-COVID ridership, and these groups are more likely to use cash as their fare payment option.

Proposed Fare Media Changes
The proposed fare media changes include: 1) the elimination of on-board cash fares and, 2) the elimination of magnetic fare cards. The proposed changes are expected to shift riders to pre-paid, contactless fare media options, which include TAP cards and mobile ticketing apps. Increased contactless fare adoption will benefit all BBB riders through reduced dwell times, improved on-time performance, and faster travel times.

Methodology
Data Sources
The fare equity analysis was completed using passenger survey data collected from the March 2021 Big Blue Bus Passenger Survey.

The following information was obtained from the passenger survey for use in the fare equity analysis:
• Method of fare payment
• Fare category
• Rider race/ethnicity
• Household income
• Household size
Rider demographics were combined with the method of fare payment to determine the systemwide, minority, and low-income fare utilization for all methods of payment. The resulting comparison of fare utilization between minority and non-minority riders, and low-income and non-low-income riders, will establish whether the proposed changes result in a disparate impact or disproportionate burden as defined by BBB’s adopted policies.

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Definitions
In performing the fare equity analysis, minority riders are defined as survey respondents who completed the race/ethnicity question and marked any category besides White-alone. Low-income riders are defined as survey respondents who completed the household income and household size questions and are deemed eligible to participate in the Low-Income Fare is Easy (LIFE) program.

The household income limits established by the LIFE program are the same guidelines that BBB uses to determine which riders define the low-income population.

Low-Income Fare is Easy (LIFE)
Household Income Limits
Persons per
Household Annual Income
1 $39,450 or less
2 $45,050 or less
3 $50,700 or less
4 $56,300 or less
5 $60,850 or less
6 $65,350 or less
Figure 3: 2021 LIFE Household Income Limits
Title VI Policies
As required by the FTA Title VI regulations, the public was engaged in the development of BBB’s disparate impact and disproportionate burden policies. These two policies will determine if the proposed fare media changes result in a disparate impact or disproportionate burden.

Fare Equity Disparate Impact Policy:
“A disparate impact occurs when the percent minority population adversely impacted by a major service change is fifteen percent (15%) higher than the average minority population of the Big Blue Bus service area, or when the percent non-minority population beneficially impacted by a major service change is fifteen percent (15%) higher than the average non-minority population of the Big Blue Bus service area.

If a disparate impact exists as a result of the proposed changes, Big Blue Bus will determine whether there are alternatives that would serve the same legitimate objectives but with less disparate impact on the minority population. If there are no viable alternatives, Big Blue Bus must have a substantial legitimate justification for making the proposed change.”
Fare Equity Disproportionate Burden Policy:
“A disproportionate burden occurs when the percent low-income population adversely impacted by a major service change is fifteen percent (15%) higher than the average low-income population of the Big Blue Bus service area, or when the percent non-low-income population beneficially impacted by a major service change is fifteen percent (15%) higher than the average non-low-income population of the Big Blue Bus service area.

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If a disproportionate burden exists as a result of the proposed changes, Big Blue Bus may take steps to avoid, minimize, or mitigate the impact of the proposed change on the low-income population.” Fare Equity Analysis
The proposed fare media changes represent an adverse change to current cash or magnetic fare card riders. As such, the following analyses, disparate impact and disproportionate burden, must determine whether the minority and low-income populations will be unfairly impacted by the proposed changes by 15% or greater compared with the non-minority and non-low-income populations.

Disparate Impact Analysis
There were 550 respondents that completed the race/ethnicity question in the March 2021 survey. Of these responses, 84% of all riders were identified as minority riders (riders that selected a race other than White-alone).

Figure 4: Systemwide Ridership by Race
Disparate Impact Findings
• Minority riders comprise 84% of systemwide riders
• On-board cash fares account for 49.6% of all boardings making it the most popular fare choice amongst minority (59.2%) and non-minority (44.9%) riders • The next most popular fare choice is TAP, which accounts for 29.5% of all boardings • Minority riders are 14.3% more likely to use cash compared with non-minority riders • Minority riders are 0.1% less likely to use magnetic fare cards compared with non-minority riders Fare Media Type
Non-Minority
Riders
Minority
Riders
Non-Minority
Percent
Minority
Percent
Difference
Access TAP Card 12 20 13.5% 4.3% -9.1%
Cash on Bus 40 273 44.9% 59.2% 14.3%
Smartphone App 2 6 2.2% 1.3% -0.9%
TAP Card 35 162 39.3% 35.1% -4.2%
Figure 5: Fare Utilization Comparison by Race
84%
16%
0% 20% 40% 60% 80% 100%
Minority Riders
Non-Minority Riders
Percent of All Riders
2021 Passenger Survey - Ridership by Race

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Fare Media Type
(pre-COVID)
Non-Minority
Riders
Minority
Riders
Non-Minority
Percent
Minority
Percent Difference
Magnetic Fare
Card 2 11 3.1% 3.0% -0.1%
Other Fare
Media 63 358 96.9% 97.0% 0.1%
Figure 6: Fare Breakdown by Race
Disparate Impact Conclusion
Based on the 15% threshold, established in the Disparate Impact Policy, minority riders would not experience a disparate impact as a result of the proposed fare media change. Minority riders are 14.3% more likely to use on-board cash fares and 0.1% less likely to use magnetic fare cards compared with nonminority riders. Although adversely impacted by the change, the impact does not exceed the 15% threshold as established by BBB's Disparate Impact Policy.

Disproportionate Burden Analysis
There were 382 respondents that completed the household income and household size questions in the March 2021 survey. Of these total responses, 87% of all riders were identified as low-income riders(riders whose reported household income met the established thresholds of the LIFE program).

Figure 7: Systemwide Ridership by Income
Disproportionate Burden Findings
• Low-income riders comprise 87% of systemwide riders
• On-board cash fare is the most popular fare choice amongst low-income riders (48.2%) • TAP card is the most popular fare choice amongst non-low-income riders (47.1%) • Low-income riders are 14.4% more likely to use cash compared with non-low-income riders • Low-income riders are 3.3% less likely to use magnetic fare cards compared with non-low-income riders
87%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Low-Income Riders
Non-Low-Income Riders
Percent of All Riders
2021 Passenger Survey - Ridership by Income

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Fare Media Type Non-Low-Income
Riders
Low-Income
Riders
Non-Low-Income
Percent
Low-Income
Percent Difference
Access TAP Card 3 22 5.9% 6.6% 0.8%
Cash on Bus 21 184 41.2% 55.6% 14.4%
Smartphone App 3 4 5.9% 1.2% -4.7%
TAP Card 24 121 47.1% 36.6% -10.5%
Figure 8: Fare Utilization Comparison by Income
Fare Media Type
(pre-COVID)
Non-Low-Income
Riders
Low-Income
Riders
Non-Low-Income
Percent
Low-Income
Percent Difference
Magnetic Fare Card 2 7 5.9% 2.6% -3.3%
Other Fare Media 32 263 94.1% 97.4% 3.3%
Figure 9: Fare Breakdown by Income
Disproportionate Burden Conclusion
Based on the 15% threshold, set in the Disproportionate Burden Policy, low-income riders would not experience a disproportionate burden as a result of the proposed fare media change. Low-income riders are 14.4% more likely to use on-board cash fares and 3.3% less likely to use magnetic fare cards compared with non-low-income riders. Although adversely impacted by the change, the impact does not exceed the 15% threshold as established by BBB's Disproportionate Burden Policy.

Conclusion
Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, or national origin in any program or activity that receives Federal funds or other Federal financial assistance. In compliance with this law, Big Blue Bus has conducted a Title VI analysis on the proposed fare media changes. This analysis has found that, based on the adopted 15% threshold, the proposed changes will not result in a disparate impact on the minority population or a disproportionate burden on the low-income population.

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Further Actions
While the impacts of the proposed changes do not exceed the established 15% threshold, there are some opportunities to lessen the challenges of adaptation to contactless fares, and to empower riders to make the shift on their own, prior to the start of the pilot project.

Encouraging most customers to convert to contactless fares before the start of the pilot rather than when the pilot begins will mitigate some of the impacts. In support of this goal, BBB has hired a designated Contactless Fare Pilot Customer Service Associate on a one-year limited term appointment to coordinate the efforts to assist people in the transition to contactless fares. BBB has also embarked on an extensive communications effort on contactless fares, including how to get them, and promoting the benefits to passengers.

In order to convert the greatest number of customers to contactless fares, beginning April 19, 2021, BBB began to distribute free 30-Day passesto customers. These passes are available on a free TAP card through the Transit Store and on mobile ticketing through the Token Transit and Transit App mobile ticketing platforms. There is a limit of one pass per customer and they are available only through July 15, 2021.

There is no cost to participate and no one is excluded.

The introduction of this program is an opportunity to educate BBB customers on the benefits of contactless fare options, and to address any concerns or questions that they may have.

Using the information gleaned from this Title VI analysis, BBB will continue to work with vulnerable populations to address concerns, remove barriers, craft communication, and create programs that empower riders to embrace contactless fares. With over 1,000 TAP reload locations, online options, unbanked options, and opportunities to participate in contactless fares on an anonymous basis, BBB is intent on making contactless fares work for all customers. The savings in travel time will be of significant benefit to all riders, and the opportunity to bypass cash and the associated risks to health will be a benefit to both customers and staff.

BBB is committed to caring for the most vulnerable through this process and learning as we go, to ensure a fair and equitable system that benefits everyone. For a list of communication and outreach efforts to encourage the use of contactless fares, see Appendix 2.1 - Communication & Outreach Timeline.

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Appendix

1.1 Big Blue Bus – March 2021 Passenger Survey Results

1. Enter Survey Invitation Code____________

2. Are you at least 14 years old?
a. Yes >> 550 of 550 (100%)
b. No >> 0 of 550

3. How many days a week do you ride on BBB buses?
a. Less than 1 day/week >> 81 of 550 (14.7%)
b. 1 to 3 days >> 196 of 550 (35.6%)
c. 4 to 5 days >> 158 of 550 (28.7%)
d. 6 days or more >> 115 of 550 (20.9%)

4. BBB route(s) you ride on a weekly basis
(Select All That Apply)
a. 1 Santa Monica Blvd. >> 204 of 550 (37.1%)
b. 2 Wilshire Blvd. >> 59 of 550 (10.7%)
c. 3 Lincoln Blvd. >> 212 of 550 (38.5%)
d. 5 Olympic Blvd. >> 11 of 550 (2.0%)
e. 7 Pico Blvd. >> 203 of 550 (36.9%)
f. 7 Rapid Pico Blvd. >> 75 of 550 (13.6%)
g. 8 Ocean Park >> 31 of 550 (5.6%)
h. 9 Pacific Palisades >> 143 of 550 (26.0%)
i. 10 Rapid Downtown LA >> 6 of 550 (1.0%)
j. 12 Westwood/UCLA/Culver City >> 18 of 550 (3.3%)
k. 14 Bundy Dr. >> 30 of 550 (5.5%)
l. 15 Barrington Ave. >> 2 of 550 (0.3%)
m. 17 UCLA - VA Medical – Palms >> 18 of 550 (3.3%)
n. 18 UCLA - Abbot Kinney >> 63 of 550 (11.5%)
o. 41 - 17th St. - SMC – Montana >> 5 of 550 (0.9%)
p. 43 - 26th St. & San Vicente Blvd. >> 6 of 550 (1.0%)

5. Did you ride BBB before the COVID-19 pandemic?
a. Yes, started riding before March 20th, 2020. >> 434 of 550 (78.9%) b. No, started riding after March 20th, 2020. >> 116 of 550 (21.1%)

6. Before the COVID-19 pandemic, How did you USUALLY pay for your BBB fare? a. Cash on the bus >> 220 of 434 (50.7%)
b. BBB Paper Pass (magnetic) >> 6 of 434 (1.4%)
c. TAP card >> 165 of 434 (38.0%)
d. Access TAP card >> 30 of 434 (6.9%)
e. 7-Day BBB Paper Pass >> 7 of 434 (1.6%)

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f. Santa Monica College Pass >> 2 of 434 (0.5%)
g. UCLA Pass >> 2 of 434 (0.5%)
h. Smartphone app (Transit app, Token Transit app) >> 2 of 434 (0.5%) i. BBB employee/retiree/dependent pass >> 0 of 434

7. Before the COVID-19 pandemic, where did you usually purchase your Paper Pass? a. On the bus >> 3 of 13 (23.1%)
b. BBB Transit Store >> 9 of 13 (69.2%)
c. Santa Monica public library >> 1 of 13 (7.7%)

8. How do you usually pay for your BBB fare now?
a. Cash on the bus >> 313 of 550 (57.0%)
b. TAP card >> 197 of 550 (35.8%)
c. Smartphone app (Tap, Transit app, Token Transit app) >> 8 of 550 (1.5%) d. Access TAP card >> 32 of 550 (5.8%)
e. BBB employee/retiree/dependent pass >> 0 of 550
f. Paper pass that I had left over. >> 0 of 550

9. Which Smartphone App do you usually use to pay your BBB fare? a. TAP app >> 3 of 8 (37.5%)
b. Transit app >> 2 of 8 (25.0%)
c. Token Transit App >> 2 of 8 (25.0%)
d. Other >> 1 of 8 (12.5%)

10. Where do you typically get your BBB fare products (tickets/passes)? (Select All That Apply)
a. A ticket vending machine (TAP Stored Value) >> 43 of 119 (36.1%) b. TAP website or TAP call center >> 10 of 119 (8.4%)
c. TAP retail location (Ralph’s, 7-Eleven, etc.) >> 3 of 119 (2.5%) d. TAP app >> 7 of 119 (5.9%)
e. BBB Transit Store >> 15 of 119 (12.6%)
f. Smartphone app (Token Transit app, Transit app) >> 6 of 119 (5.0%) g. Pass is provided by Employer or School >> 0 of 119
h. Pass is provided by Access or Social Service Agency >> 35 of 119 (29.4%) i. No answer provided >> 128 of 237

11. Do you usually pay your fare with a Senior, Disabled or Medicare discount? a. Yes >> 117 of 544 (21.5%)
b. No >> 427 of 544 (78.5%)
c. No answer provided >> 6 of 550

12. Which fare(s) do you normally choose now (only for S/D/M riders)? (Choose One or Two)
a. TAP Single Ride >> 18 of 63 (28.6%)
b. Day Pass >> 5 of 63 (7.9%)

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c. 13-Rides Pass >> 1 of 63 (1.6%)
d. 30-Day Pass >> 18 of 63 (28.6%)
e. EZ Pass >> 27 of 63 (42.9%)
f. Cash (S/D/M) >> 54 of 117

13. Which fare(s) do you normally choose now (only for non-S/D/M)? (Choose One or Two)
a. TAP Single Ride >> 60 of 174 (34.5%)
b. Day Pass >> 8 of 174 (4.6%)
c. 7-Day Pass >> 30 of 174 (12.2%)
d. 13-Rides Pass >> 7 of 174 (4.0%)
e. 30-Day Pass >> 31 of 174 (17.8%)
f. EZ Pass >> 19 of 174 (10.9%)
g. Youth 30-Day Pass >> 3 of 174 (1.7%)
h. BBB Annual Pass >> 1 of 174 (0.6%)
i. Blue to Business Pass >> 0 of 174
j. Access TAP Card >> 11 of 174 (6.3%)
k. TAP Interagency Transfer >> 1 of 174 (0.6%)
l. UCLA Pass >> 7 of 174 (4.0%)
m. SMC Pass >> 0 of 174
n. TAP U-Pass >> 1 of 174 (0.6%)
o. TAP E-Pass >> 2 of 174 (1.1%)
p. Cash (regular) >> 259 of 433

14. Thinking about one-way trips on the Big Blue Bus, how often do you transfer to or from Big Blue Bus from or to another bus or rail provider?
a. Never >> 272 of 550 (49.5%)
b. Rarely >> 80 of 550 (14.5%)
c. Sometimes >> 105 of 550 (19.1%)
d. Usually >> 48 of 550 (8.7%)
e. Always >> 45 of 550 (8.2%)

15. When you transfer to other transit providers (not BBB), do you use TAP Stored Value to purchase the discounted $0.50 Interagency Transfer?
a. Yes >> 61 of 278 (21.9%)
b. No >> 217 of 278 (78.1%)

16. Do you have a smartphone?
a. Yes >> 487 of 550 (88.5%)
b. No >> 63 of 550 (11.5%)

17. Does your phone have a data plan to access the internet? a. Yes >> 462 of 487 (94.9%)
b. No >> 25 of 487 (5.1%)

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18. Do you access the Internet on your phone using Wi-Fi? a. Yes >> 5 of 25 (20.0%)
b. No >> 20 of 25 (80.0%)

19. Do you have a credit card, bank debit card, or pre-paid card to make purchases? a. Yes >> 371 of 550 (67.5%)
b. No >> 179 of 550 (32.5%)

20. Are you eligible for reduced bus fares under any of the categories below? (Select All That Apply)
a. Senior >> 115 of 567 (20.3%)
b. Disabled >> 34 of 567 (6.0%)
c. Medicare recipient >> 4 of 567 (0.7%)
d. Youth (5 to 18 years of age) >> 1 of 567 (0.2%)
e. No – Not Eligible for discounts >> 413 of 567 (72.8%)

21. What is your gender?
a. Female >> 342 of 550 (62.2%)
b. Male >> 206 of 550 (37.5%)
c. Non-binary >> 2 of 550 (0.4%)

22. In which age category do you belong?
a. 16-17 years >> 4 of 550 (0.7%)
b. 18-24 >> 49 of 550 (8.9%)
c. 25-34 >> 106 of 550 (19.3%)
d. 35-44 >> 105 of 550 (19.1%)
e. 45-54 >> 117 of 550 (21.3%)
f. 55-61 >> 86 of 550 (15.6%)
g. 62 and Older >> 83 of 550 (15.1%)

23. Select the group(s) that best describe you.
(Select All That Apply)
a. Hispanic/Latino/Latinx >> 328 of 550 (59.6%)
b. White >> 108 of 550 (19.6%)
c. Black/African American >> 96 of 550 (17.4%)
d. Asian/Pacific Islander >> 28 of 550 (5.1%)
e. Native American >> 13 of 550 (2.4%)
f. Other >> 9 of 550 (1.6%)

24. How many people currently live in your home (including you)? _____________ a. 1 >> 140 of 545 (25.7%)
b. 2 >> 122 of 545 (22.4%)
c. 3 >> 109 of 545 (20.0%)
d. 4 >> 95 of 545 (17.4%)
e. 5 >> 56 of 545 (10.3%)

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f. 6 >> 15 of 545 (2.8%)
g. 7 >> 5 of 545 (0.9%)
h. 8 >> 1 of 545 (0.2%)
i. 9 >> 1 of 545 (0.2%)
j. 10 >> 1 of 545 (0.2%)

25. Thinking about all the people who earn money in your home – If their annual incomes were combined, approximately how much money is earned per year (i.e., annual household income)? a. Less than $20,000 >> 156 of 380 (41.0%)
b. $20,000 – $39,999 >> 142 of 380 (37.4%)
c. $40,000 – $59,999 >> 56 of 380 (14.7%)
d. $60,000 – $79,999 >> 20 of 380 (5.3%)
e. $80,000 – $99,999 >> 4 of 380 (1.0%)
f. More than $100,000 >> 4 of 380 (1.0%)
g. No answer provided >> 170 of 550

26. How proficient are you in English?
a. I speak little to no English >> 80 of 549 (14.6%)
b. I speak some English >> 142 of 549 (25.9%)
c. I speak English very well >> 327 of 549 (59.5%)
d. No answer provided >> 1 of 550

27. What is your home zip code? __________________
(Top five shown below)
a. 90405 – Sunset Park SM >> 48 of 545 (8.8%)
b. 90011 – Historic South-Central LA >> 32 of 545 (5.9%) c. 90401 – Downtown SM >> 28 of 545 (5.1%)
d. 90019 – Rimpau LA >> 24 of 545 (4.4%)
e. 90404 – Mid-City SM >> 23 of 545 (4.2%)
f. No answer provided >> 5 of 550

2.1 Communication & Outreach Timeline
General Ongoing Contactless Payment Promotion (BBB Customers)

1. English & Spanish Contactless Landing Page (bigbluebus.com/contactless) – 2/1 and updated 4/5

2. English & Spanish Contactless Extended Car Cards on Buses – 2/1

3. GTFS-RT Message – 2/1 and updated 4/5

4. Real-time Sign Message – 2/1 and updated 4/5

5. English & Spanish Contactless Digital Screen Ads at GoSaMo Center – 2/1 and updated 4/5

6. English & Spanish Onboard Audio Announcements for Contactless Payments – 4/11

7. English & Spanish Onboard Headsign Ads for Contactless Payments – 4/11

8. English & Spanish Social Media Posts – 2/1 and 4/5

9. LIFE Program Application Distribution English & Spanish at Transit Store – 3/29

10. English On-Hold Audio Announcements for BBB Call Center – 4/30

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Free 30-Day Pass Promotion Soft-Launch (Existing Mobile Ticket Customers)

1. English & Spanish Transit App Banner – 4/19

2. English & Spanish Transit App Landing Page – 4/19

3. Token Transit Email & Push Notification – 4/19

4. English & Spanish Senior TAP Card Applications on Buses – 4/22

5. English & Spanish Onboard Audio Announcement for Senior TAP Card Applications – 4/25 Free 30-Day Pass Promotion Hard-Launch (TAP & New Mobile Ticket Customers)

1. English & Spanish Promotion Landing Page (bigbluebus.com/quitcash) – 5/10

2. Email Blast #1 to MODE Members – 5/10

3. English & Spanish CSA Verbal Notification at Transit Store – 5/10

4. Walk-in & Appointment Only Decals at Transit Store – 5/10

5. Provide one-on-one education in English & Spanish at Transit Store – 5/10

6. Virtual Presentation to WISE Members – 5/12

7. English & Spanish Letter to MODE Members (Batch #1) – 5/12

8. English & Spanish Transit App Banner – 5/12

9. Token Transit Push Notification – 5/12

10. English & Spanish SMS to Swiftly Real-Time Subscribers – 5/12

11. Email Blast #1 to BBB Customers – 5/17

12. English & Spanish Digital Screen Ads at GoSaMo Center – 5/17

13. English & Spanish Letter to MODE Members (Batch #2) – 5/17

14. Phone Greeting for BBB & MODE Call Center – 5/17

15. English & Spanish GTFS-RT Message – 5/17

16. Real-time Sign Message – 5/17

17. English & Spanish Letter to MODE Members (Batch #3) – 5/24

18. English & Spanish Bilingual Flyer on Buses – 5/24

19. English & Spanish Extended Car Cards on Buses (Pass Promotion) – 5/24

20. English & Spanish Car Cards on Buses (LIFE) – 5/24*

21. English & Spanish Audio Announcements – 5/24

22. English & Spanish Bilingual Farebox Slot Sign – 5/24

23. English & Spanish Headsigns – 5/24

24. Press Release – 5/24

25. Community Partner/Stakeholder Notification – 5/24

26. English & Spanish Paid and Organic Social Media Posts – 5/24

27. English & Spanish Website Homepage Graphics – 5/24
Contactless Payment Ongoing Communication

1. Upgrade TAP vendor location digital map (75 new locations) – May 2021

2. Create English & Spanish print version of BBB-specific TAP vendor directory (100 locations) – June 2021

3. Partner with WISE and Healthy Aging for monthly Senior Workshops – May 2021 – ongoing

4. Partner with Santa Monica Public Library on Appy Hour Workshops – TBD

5. Develop next phase of contactless messaging in anticipation of July 5 transition – May-June 2021

6. Outreach at High-Volume Bus Stops – May-July 2021

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Title VI Fare Equity Analysis
Simplified fare structure
December 2021

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Table of Contents
Table of Contents..........................................................................................................................................1 Purpose .........................................................................................................................................................2 Executive Summary.......................................................................................................................................2 Background ...................................................................................................................................................3 Fare Structure ...............................................................................................................................................3 Fare Utilization..............................................................................................................................................4 Proposed Fare Media Changes.....................................................................................................................4 Methodology.................................................................................................................................................5 Data Sources.............................................................................................................................................5 Definitions.................................................................................................................................................6 Title VI Policies..............................................................................................................................................6 Fare Equity Disparate Impact Policy .....................................................................................................6 Fare Equity Disproportionate Burden Policy ........................................................................................7 Fare Equity Analysis......................................................................................................................................7 Disparate Impact Analysis.........................................................................................................................7 Disparate Impact Findings.....................................................................................................................7 Disparate Impact Conclusion ................................................................................................................8 Disproportionate Burden Analysis............................................................................................................9 Disproportionate Burden Findings........................................................................................................9 Disproportionate Burden Conclusion .................................................................................................10 Conclusion...................................................................................................................................................11 Appendix .....................................................................................................................................................12

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Purpose
In the summer of 2021, Big Blue Bus implemented a purely contactless fare system as part of a six-month pilot program. As a result, BBB eliminated all on-board cash fares and BBB magnetic fare cards. During this pilot period, riders have only been able to pay their fare using either the regional TAP fare payment system or mobile ticketing. Cash and magnetic fare cards are no longer accepted on-board. Six-months later, BBB is now planning to fully adopt the changes made during the contactless pilot and is also proposing new changes to simplify the existing fare structure.

The newly proposed changes are subject to a fare equity analysis as defined by BBB’s Major Service and Fare Change Policy. The fare equity analysis, contained herein, is required to ensure compliance with the Federal Transit Administration (FTA) Title VI regulations as defined by FTA Circular 4702.1B. The purpose of this analysis is to determine whether the proposed changes result in a disparate impact on the basis of race, ethnicity, or national origin, or a disproportionate burden on the defined low-income population.

This analysis found that some of the proposed changes exceed BBB’s disparate impact and disproportionate burden thresholds and, as such, require additional analysis to determine how the minority and low-income populations will be impacted by the changes. This additional analysis found that most of the proposed changes will benefit the minority and low-income populations. Only one proposed change, the elimination of the existing 13 Ride Pass, would result in a disparate impact. As a result, BBB has proposed a new 10 Ride Pass, as a replacement fare product for the existing 13 Ride pass, to mitigate the impact.

As defined by BBB policy, the changes being proposed will not result in a disparate impact on the minority population or a disproportionate burden on the low-income population.

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Background
Due to COVID-19, BBB suspended fare collection on March 20, 2020 to slow the spread of disease. This led BBB staff to reexamine strategies for shifting more passengers to contactless fare media. Contactless fare payment options have several benefits. They can reduce dwell times, improve on-time performance, and will ultimately result in faster travel timesfor passengers riding the bus. Contactless fares also operate separately from the on-board farebox and are, therefore, not susceptible to farebox malfunctions which result in lost revenue. A goal was set to pilot the elimination of on-board cash fares and the elimination of magnetic fare cards soon after the fare collection resumed on February 14, 2021. On July 12, 2021, BBB eliminated on-board cash fares and magnetic fare cards as part of a six-month pilot program.

A follow-up passenger survey was conducted in September 2021 to gauge customer reaction to the contactless pilot program, the results of which can be found in the “Appendix” section of this report. Of all surveyed riders, only 13.8% indicted that the contactless fare program affected them either “Negatively” or “Somewhat negatively”. The majority of riders, 79.1%, selected the neutral option that the program affected them “Neither negative nor Positive”. While 64.4% of riders wanted BBB to return to accepting cash fare payments, 64.2% would not use cash again, 27.4% would use cash for some trips, and 8.4% would use cash for most trips. As such, BBB does not intend to return to collecting on-board cash fares and plans to fully adopt the changes made during the contactless pilot.

With the information gained through the contactless fare pilot and corresponding passenger surveys, BBB is now planning to simplify the existing fare structure through several proposed changes. These changes seek to: 1) reduce the number of available fare options through the elimination of existing fare products, 2) adjust pricing to encourage a higher rate of adoption of BBB’s pass products.

Fare Structure
BBB fares vary based on rider classification and fare category. Rider classifications include: Regular (age 19-61), Youth (age 5-18), Senior 62+/Disabled/Medicare (shown as S/D/M), and Child (age 4 and under).

Current fare categories include: Single Trip, Day Pass, 7-Day Pass, 13 Ride Pass, 30-Day Pass, and Annual Pass. Fare prices vary based on rider classification and fare category. Customers with a valid Access ID ride for free and children ages 4 and under ride for free as well, which will expand to age 5 and under in the proposed changes.

Fare Category Regular Fare S/D/M Fare
Single Trip $1.10 $0.50
Day Pass $4.00 $1.50
7-Day Pass $14.00 -
13 Ride Pass $14.00 $6.00
30-Day Pass $50.00 $24.00
Annual Pass $500.00 -
Youth 30-Day Pass $19.00 -
Figure 1: Existing BBB Fare Pricing as of December 2021

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Fare Utilization
When fare collection resumed on February 14, 2021, cash ridership, as a percentage of total ridership, was significantly higher than it was before fare collection was suspended. Ridership on UCLA and SMC passes previously made up 23% of the total systemwide ridership. In the absence of those rider populations, at institutions closed due to the pandemic, a large number of contactless fare riders had been removed from the system, leaving behind a majority of cash riders. When BBB conducted the March 2021 Passenger Survey, 57.0% of riders indicted that they used cash to pay their fares on-board. BBB subsequently eliminated on-board cash fares as part of the contactless fare pilot program and cash riders had to migrate to one of BBB’s alternative fare payment options. The most popular fares, according to the recent September 2021 Passenger Survey, are the Single Trip fare, “Other” fares (UCLA, SMC, ACCESS), and the 30-Day Pass, in that order.

Fare Category Number of Riders Percent of All Riders
Single Trip 283 46.7%
Day Pass 33 5.5%
7-Day Pass 50 8.2%
13 Ride Pass 15 2.5%
30-Day Pass 76 12.5%
Annual Pass 0 0%
Youth 30-Day Pass 35 5.8%
Metro EZ Pass 15 2.5%
Other 99 16.3%
Total 606 100%
Figure 2: BBB Fare Utilization Comparison from September 2021 Survey Proposed Fare Media Changes
The newly proposed fare changes include: 1) the elimination of the Day Pass, 7-Day Pass, and Annual Pass, 2) the elimination and replacement of the 13 Ride Pass with a new 10 Ride Pass, 3) an decrease of $0.10 for the Single Trip (Regular) fare, 4) a decrease of $20.00 for the 30-Day Pass (Regular), 5) a decrease of $4.00 for the 30-Day Pass (S/D/M), 6) the introduction and acceptance of the Metro Day Pass, 7) the introduction of free BBB-to-BBB transfers for riders using the Single Trip fare or 10 Ride Pass.

The proposed changes are intended to simplify the existing fare structure through the elimination of underutilized fare products. The Day Pass, 7-Day Pass, and Annual Pass, which are proposed for elimination, account for 13.7% of all rides. These riders are expected to shift to the existing Single Ride fare, 30-Day Pass, or BBB’s new 10 Ride Pass. Simplifying the fare structure will reduce customer confusion and makes it easier for customers to select the fare best suited to their transportation needs. Other proposed changes include price changes for certain fares and the introduction of two new fare products.

These changes will align prices across the fare product spectrum and expand BBB’s current offerings for customers that transfer between BBB-to-BBB buses or BBB-to-Metro buses or trains.

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Fare Category
Regular Fares S/D/M Fares
On-Board
Cash Fare
TAP & Mobile
Ticket Fare
On-Board
Cash Fare
TAP & Mobile
Ticket Fare
Single Trip Eliminated
July 2021
Decrease $0.10
($1.00)
Eliminated
July 2021
No Change
($0.50)
Day Pass -
Eliminated
($4.00) -
Eliminated
($1.50)
7-Day Pass -
Eliminated
($14.00) - -
10 Ride Pass -
New
($9.00) -
New
($4.50)
13 Ride Pass -
Eliminated
($14.00) -
Eliminated
($6.00)
30-Day Pass -
Decrease $20.00
($30.00) -
Decrease $4.00
($20.00)
Annual Pass -
Eliminated
($500.00) - -
Youth 30-Day Pass -
No change
($19.00) - -
Metro Day Pass -
New
($7.00) -
New
($2.50)
Metro EZ Pass -
No change
($110.00) -
No change
($42.00)
Interagency Transfer -
No change
($0.50) -
No change
($0.25)
BBB to BBB Transfer -
New
(Free with fare) -
New
(Free with fare)
Figure 3: Proposed Changes to BBB Fare Structure (change in red / new price in parentheses) Methodology
Data Sources
The following fare equity analysis was completed using passenger survey data collected from the September 2021 Passenger Survey.

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between minority and non-minority riders, and low-income and non-low-income riders, will establish whether the proposed changes result in a disparate impact or disproportionate burden as defined by BBB’s adopted policies.

The household income limits established by the LIFE program are the same guidelines that BBB uses to determine which riders define the low-income population.

Low-Income Fare is Easy (LIFE)
Household Income Limits
Persons per
Household Annual Income
1 $39,450 or less
2 $45,050 or less
3 $50,700 or less
4 $56,300 or less
5 $60,850 or less
6 $65,350 or less
Figure 4: 2021 LIFE Household Income Limits
Title VI Policies
As required by the FTA Title VI regulations, the public was engaged in the development of BBB’s disparate impact and disproportionate burden policies. These two policies will determine if the proposed fare media changes result in a disparate impact or disproportionate burden.

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Fare Equity Disproportionate Burden Policy:
“A disproportionate burden occurs when the percent low-income population adversely impacted by a major service change is fifteen percent (15%) higher than the average low-income population of the Big Blue Bus service area, or when the percent non-low-income population beneficially impacted by a major service change is fifteen percent (15%) higher than the average non-low-income population of the Big Blue Bus service area.

If a disproportionate burden exists as a result of the proposed changes, Big Blue Bus may take steps to avoid, minimize, or mitigate the impact of the proposed change on the low-income population.” Fare Equity Analysis
The fare equity analysis will determine whether the minority and low-income populations will be unfairly impacted by the proposed changes. Changes that result in a 15% difference between the impacted minority and low-income populations and their corresponding systemwide percentages will require further analysis to determine if there is a disparate impact or disproportionate burden.

Disparate Impact Analysis
There were 592 respondents that completed the race/ethnicity question in the September 2021 survey.

Of these total responses, 74.5% of all riders were identified as minority riders.

Figure 5: Systemwide Ridership by Race
Disparate Impact Findings
• Minority riders comprise 74.5% of all systemwide riders • The elimination of the 13 Ride Pass exceeds the 15% Disparate Impact threshold • The decreased price of the 30-Day Pass (S/D/M) exceeds the 15% Disparate Impact threshold • All other proposed changes are below the 15% threshold

74.5%

25.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Minority Riders
Non-Minority Riders
Percent of All Riders
September 2021 Survey - Ridership by Race

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Fare Media Type
Proposed
Change
NonMinority
Riders
Minority
Riders
NonMinority
Percent
Minority
Percent
Minority
vs. NonMinority
Difference
Minority vs.

Systemwide
Difference
Day Pass Eliminate 10 23 30.3% 69.7% +39.4% -4.8%
7-Day Pass Eliminate 12 38 24.0% 76.0% +52.0% +1.5%
Annual Pass Eliminate 0 0 0% 0% 0% 0%
13 Ride Pass Replace 1 14 6.7% 93.3% +86.6% +18.8%
Single Ride
(Regular)
Decrease
of $0.10 54 188 22.3% 77.7% +55.4% +3.2%
30-Day Pass
(Regular)
Decrease
of $20.00 12 53 18.5% 81.5% +63.0% +7.0%
30-Day Pass
(S/D/M)
Decrease
of $4.00 6 5 54.4% 45.5% -8.9% -29.0%
Figure 6: Fare Utilization Comparison by Race
Disparate Impact Conclusion
Based on the 15% threshold, established in the Disparate Impact Policy, the elimination of the 13 Ride Pass would result in a disparate impact. Minority riders constitute 93.3% of all riders using the 13 Ride Pass, a difference of +18.8% compared with the systemwide minority percentage. To mitigate this impact, BBB will introduce a new 10 Ride Pass as a replacement for the 13 Ride Pass. The 10 Ride Pass will be priced at $9.00 (Regular) and $4.50 (S/D/M) and will have a price per ride of $0.90 (Regular) and $0.45 (S/D/M). This pricing is considered a beneficial change over the existing 13 Ride Pass which had a price per ride of $1.08 (Regular) and $0.46 (S/D/M). All riders using the 10 Ride Pass will pay less per ride compared with the 13 Ride Pass. The introduction of the 10 Ride Pass will benefit minority riders to a higher degree than non-minority riders and is considered an adequate measure to mitigate the disparate impact finding.

The only other proposed change that exceeds the 15% threshold is the decreased price for the 30-Day Pass (S/D/M). Minority riders constitute 45.5% of all riders using the 30-Day Pass (S/D/M), a difference of -29.0% compared with the systemwide minority percentage. Since this proposed change results in a price decrease, it is considered a beneficial change that benefits non-minority riders to a higher degree than minority riders. However, the 30-Day Pass (S/D/M) accounts for only 1.8% of total BBB rides and, given that both non-minority and minority riders will benefit from the price decrease, the proposed change is not considered a disparate impact on the minority population.

The introduction and acceptance of the Metro Day Pass on BBB buses is considered a new fare product.

The Metro Day Pass is priced at $7.00 (Regular) and $2.50 (S/D/M). While BBB is planning to eliminate the BBB Day Pass, the Metro Day Pass is not considered a direct replacement for that fare product. Instead, the Metro Day Pass is targeted to infrequent riders, such as tourists, who might purchase this pass from one of Metro’s ticket vending machines. Acceptance of the Metro Day Pass will prevent BBB from turning away these potential riders that may not have access to BBB’s fare products. Since this is a new fare product, its introduction will not result in a disparate impact on the minority population.

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The introduction of free BBB-to-BBB transfers with paid fare is also a new fare product. Current riders must pay the full Single Trip fare when transferring from one BBB bus to a second BBB bus. Customers using any of BBB’s current pass products (Day Pass, 7-Day Pass, 30-Day Pass, Annual Pass) do not pay an additional fee to transfer buses since the pass products provide unlimited riding within their allotted time period. Enabling free BBB-to-BBB transfers will benefit Single Trip and 10 Ride Pass riders that transfer between two BBB routes on a one-way journey as those riders will no longer pay an additional fare to ride a second BBB bus. Minority riders make up 77.7% of all Single Trip (Regular) riders and 72.7% of all Single Trip (S/D/M) riders, which is +5.0% higher and -1.8% lower, respectively, than the systemwide minority percentage of 74.5%. Of the 264 riders that selected the Single Trip fare, 118 indicated that they transfer from one BBB bus to another BBB bus “Sometimes”, “Usually”, or “Always”. Of these 118 riders, 96 are minority riders or 81.4%, which is +6.9% higher than the systemwide minority percentage. As such, the introduction of free BBB-to-BBB transfers will benefit minority riders to a higher degree than non-minority riders and will not result in a disparate impact on the minority population.

All other proposed changes are below the 15% threshold and will not result in a disparate impact.

Disproportionate Burden Analysis
There were 385 respondents that completed the household income and household size questions in the September 2021 survey. Of these total responses, 86.5% of all riders were identified as low-income riders (riders whose reported household income met the established thresholds of the LIFE program).

Figure 7: Systemwide Ridership by Income
Disproportionate Burden Findings
• Low-income riders comprise 86.5% of systemwide riders • The decreased price of the 30-Day Pass (Regular) exceeds the 15% Disproportionate Burden threshold
• All other proposed changes are below the 15% threshold

86.5%

13.5%
0% 20% 40% 60% 80% 100%
Low-Income Riders
Non-Low-Income Riders
Percent of All Riders
Septmeber 2021 Survey - Ridership by Income

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Fare Media Type
Proposed
Change
NonLowIncome
Riders
LowIncome
Riders
Non-LowIncome
Percent
LowIncome
Percent
Low
Income vs.

Non-LowIncome
Difference
Low-Income
vs.

Systemwide
Difference
Day Pass Eliminate 4 16 20.0% 80.0% +60.0% -6.5%
7-Day Pass Eliminate 5 35 12.5% 87.5% +75.0% +1.0%
Annual Pass Eliminate 0 0 0% 0% 0% 0%
13 Ride Pass Replace 1 9 10.0% 90.0% +80.0% +3.5%
Single Ride
(Regular)
Decrease
of $0.10 17 144 10.6% 89.4% +78.8% +2.9%
30-Day Pass
(Regular)
Decrease
of $20.00 12 30 28.6% 71.4% +42.8% -15.1%
30-Day Pass
(S/D/M)
Decrease
of $4.00 0 7 0% 100% +100% +13.5%
Figure 8: Fare Utilization Comparison by Income
Disproportionate Burden Conclusion
The only proposed change that exceeds the 15% threshold is the decreased price for the 30-Day Pass (Regular). Low-income riders constitute 71.4% of all riders using the 30-Day Pass (Regular), a difference of -15.1% compared with the systemwide low-income percentage. Since this proposed change results in a price decrease, it is considered a beneficial change that will benefit non-low-income riders to a higher degree than low-income riders. Given that both non-low-income and low-income riders will benefit from the price decrease, the proposed change is not considered a disproportionate burden on the low-income population.

As stated in the Disparate Impact analysis, the introduction and acceptance of the Metro Day Pass on BBB buses is considered a new fare product. The Metro Day Pass is priced at $7.00 (Regular) and $2.50 (S/D/M).

While BBB is planning to eliminate the BBB Day Pass, the Metro Day Pass is not considered a direct replacement for that fare product. Instead, the Metro Day Pass is targeted to infrequent riders, such as tourists, who might purchase this pass from one of Metro’s ticket vending machines. Acceptance of the Metro Day Pass will prevent BBB from turning away these potential riders that may not have access to BBB’s fare products. Since this is a new fare product, its introduction will not result in a disproportionate burden on the low-income population.

As also stated in the Disparate Impact analysis, the introduction of free BBB-to-BBB transfers with paid fare is also a new fare product. Current riders must pay the full Single Trip fare when transferring from one BBB bus to another. Customers using any of BBB’s current pass products (Day Pass, 7-Day Pass, 30- Day Pass, Annual Pass) do not pay an additional fee to transfer buses since the pass products provide unlimited riding within their allotted time period. Enabling free BBB-to-BBB transfers will benefit Single Trip and 10 Ride Pass riders that transfer between two BBB routes on a one-way journey. Low-income riders make up 89.4% of all Single Trip (Regular) and 100% of all Single Trip (S/D/M) riders, which is +2.9% higher and +10.6% higher, respectively, than the systemwide low-income percentage of 86.5%.

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Of the 179 riders that answered the income question and selected the Single Trip fare, 89 indicated that they transfer from one BBB bus to another BBB bus “Sometimes”, “Usually”, or “Always”. Of these 89 riders, 82 are low-income riders or 92.1%, which is +5.6% higher than the systemwide low-income percentage. As such, the introduction of free BBB-to-BBB transfers will benefit low-income riders to a higher degree than non-low-income riders and will not result in a disproportionate burden on the lowincome population.

All other proposed changes are below the 15% threshold and will not result in a disproportionate burden.

Conclusion
Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, or national origin in any program or activity that receives Federal funds or other Federal financial assistance. In compliance with this law, Big Blue Bus has conducted a Title VI analysis on the proposed fare changes. This analysis has found that the proposed changes will not result in a disparate impact on the minority population or a disproportionate burden on the low-income population.

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Appendix

1.1 Big Blue Bus – September 2021 Passenger Survey Results

1. Are you at least 14 years old?
a. Yes >> 592 of 592 (100%)
b. No >> 0 of 592

2. How many days a week do you ride on BBB buses?
a. Occasionally (less than 1 day per week) >> 50 of 592 (8.5%) b. 1 to 3 days >> 211 of 592 (35.6%)
c. 4 or 5 days >> 289 of 592 (48.8%)
d. 6 or more days >> 42 of 592 (7.1%)

3. BBB route you ride on a weekly basis
(Select all that apply)
a. 1 Santa Monica Blvd. >> 164 of 1,060 (15.5%)
b. 2 Wilshire Blvd. >> 70 of 1,060 (6.6%)
c. 3 Lincoln Blvd. >> 143 of 1,060 (13.5%)
d. Rapid 3 Lincoln Blvd. >> 47 of 1,060 (4.4%)
e. 5 Olympic Blvd. >> 9 of 1,060 (0.8%)
f. 7 Pico Blvd. >> 175 of 1,060 (16.5%)
g. Rapid 7 Pico Blvd. >> 76 of 1,060 (7.2%)
h. Express 7 Pico Blvd. >> 23 of 1,060 (2.2%)
i. 8 Ocean Park >> 24 of 1,060 (2.3%)
j. 9 Palisades >> 136 of 1,060 (12.8%)
k. Rapid 10 Downtown Express >> 5 of 1,060 (0.5%)
l. Rapid 12 Westwood Blvd. >> 37 of 1,060 (3.5%)
m. 14 Bundy Dr. – Centinela Ave. >> 32 of 1,060 (3.0%)
n. 15 Barrington Ave. >> 4 of 1,060 (0.4%)
o. 16 Marina del Rey >> 8 of 1,060 (0.8%)
p. 17 UCLA – VA >> 21 of 1,060 (2.0%)
q. 18 Abbott Kinney >> 59 of 1,060 (5.6%)
r. 41 17th St. >> 17 of 1,060 (1.6%)
s. 43 26th St. >> 10 of 1,060 (0.9%)
t. 44 SMC Bundy Campus >> 0 of 1,060
--FARE PURCHASE AND PAYMENT METHODS--

4. Before BBB stopped accepting cash and tokens (July 12th, 2021), how did you normally pay for your BBB fare?
(Rank top two)
a. Paid cash on the bus >> 178 of 670 (26.6%)
b. TAP card (Regular, Reduced Fare, ACCESS, UCLA or SMC TAP cards) >> 388 of 670 (57.9%)
c. TAP App on a mobile device (smartphone or Apple Watch) >> 62 of 670 (9.3%) d. Smartphone App (Transit app, Token Transit app) >> 31 of 670 (4.6%) e. Paper pass Bought on the bus >> 2 of 670 (0.3%)
f. Paper Pass Bought at the BBB Transit Store >> 9 of 670 (1.3%)

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g. BBB employee/retiree/dependent pass >> 0 of 670

5. Now, how do you usually pay for your BBB fare?
a. TAP card (Regular, Reduced Fare, ACCESS, UCLA or SMC TAP cards) >> 432 of 592 (73.0%)
b. TAP app on a mobile device (smartphone or Apple Watch) >> 114 of 592 (19.3%) c. Smartphone app (Transit app, Token Transit app) >> 43 of 592 (7.3%) d. I usually don’t pay >> 3 of 592 (0.5%)

6. Why don’t you usually pay the fare on BBB?
(Select all that apply)
a. I don’t have a TAP card >> 1 of 3
b. I don’t have a smartphone >> 0 of 3
c. I don’t have a credit card >> 0 of 3
d. Because I can ride without paying >> 1 of 3
e. Other >> 1 of 3

7. Where do you typically obtain your BBB fare products? (Select all that apply)
a. TAP - Ticket Vending Machine >> 259 of 761 (34.0%)
b. TAP - Website or call center >> 48 of 761 (6.3%)
c. TAP - Retail location (Ralph’s, 7-11, CVS, Walgreens, Check Cashing, etc.) >> 100 of 761 (13.1%)
d. BBB Transit Store >> 81 of 761 (10.6%)
e. Smartphone app (Token Transit app, Transit app) >> 43 of 761 (5.7%) f. TAP app on a mobile device (smartphone or Apple Watch) >> 168 of 761 (22.1%) g. My pass is provided by my employer or school >> 34 of 761 (4.5%) h. My pass is provided by Access or another social service agency >> 28 of 761 (3.7%)

8. Which BBB fare(s) do you normally choose now?
(Select one or two)
a. TAP (stored value) single ride >> 264 of 606 (43.6%) b. TAP UCLA BruinGo! quarterly pass >> 4 of 606 (0.7%)
c. TAP UCLA Co-pay Pass >> 14 of 606 (2.3%)
d. TAP E-Pass >> 8 of 606 (1.3%)
e. TAP U-Pass >> 11 of 606 (1.8%)
f. TAP Interagency Transfer >> 3 of 606 (0.5%)
g. Access TAP Card >> 48 of 606 (7.9%)
h. Single ride on mobile phone >> 19 of 606 (3.1%)
i. 1 Day Pass >> 33 of 606 (5.4%)
j. 7-Day Pass >> 50 of 606 (8.3%)
k. 30-Day Pass >> 76 of 606 (12.5%)
l. 13 Rides Pass >> 15 of 606 (2.5%)
m. Youth 30-Day Pass >> 35 of 606 (5.8%)
n. BBB Annual Pass >> 0 of 606
o. EZ Pass >> 15 of 606 (2.5%)
p. Employer-provided pass >> 2 of 606 (0.3%)
q. Santa Monica College pass >> 9 of 606 (1.5%)

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--TRANSFER TRIPS WITHIN BBB AND TO/FROM BBB—

9. Thinking about 1-way trips on the Big Blue Bus, how often do you transfer from Big Blue Bus to another Big Blue Bus (Blue to Blue)?
a. Never >> 223 of 592 (37.7%)
b. Rarely >> 92 of 592 (15.5%)
c. Sometimes >> 143 of 592 (24.2%)
d. Usually >> 86 of 592 (14.5%)
e. Always >> 48 of 592 (8.1%)

10. Thinking about 1-way trips on the Big Blue Bus, how often do you transfer to or from Big Blue Bus to another bus or rail systems (Blue to/from Orange LA Metro Bus, Green Culver CityBus, etc.)]
a. Never >> 201 of 592 (34.0%)
b. Rarely >> 98 of 592 (16.6%)
c. Sometimes >> 133 of 592 (22.5%)
d. Usually >> 104 of 592 (17.6%)
e. Always >> 56 of 592 (9.5%)

11. When you transfer to other transit providers (not BBB), do you use TAP Stored Value to purchase the discounted $0.50 Regular or $0.25 Senior/Disabled Interagency Transfer?
a. Yes >> 307 of 592 (51.9%)
b. No >> 84 of 592 (14.2%)
c. Don’t transfer >> 201 of 592 (34.0%)

12. What is the main reason you don’t use TAP Stored Value to pay for your transfer? a. Not aware of the transfer discount >> 29 of 84 (34.5%) b. I pay with a pass or passes on BBB and other transit agencies >> 44 of 84 (52.4%) c. Because Metro isn’t charging a fare currently >> 9 of 84 (10.7%) d. Because I don’t use TAP to pay my fare >> 2 of 84 (2.4%)

13. Are you aware that single rides cost less when using TAP or a mobile ticket than they did when using cash?
a. Yes >> 459 of 592 (77.5%)
b. No >> 133 of 592 (22.5%)
--CONTACTLESS FARE PERCEPTIONS--

14. How has the contactless fare program (no cash use on board) affected you? a. Negatively >> 28 of 592 (4.7%)
b. Somewhat negatively >> 54 of 592 (9.1%)
c. Neither negative nor Positive >> 468 of 592 (79.1%)
d. Somewhat positively >> 23 of 592 (3.9%)
e. Positively >> 19 of 592 (3.2%)

15. Please describe any positive or negative impacts you have experienced as a result of the contactless fare program?

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16. The goal of contactless payments on buses is to move buses faster, make fare payment more sanitary, and reduce the fare price for each ride. Understanding these goals, should BBB return to accepting cash fare payments?
a. Yes >> 381 of 592 (64.4%)
b. No >> 142 of 592 (24.0%)
c. I don’t know >> 69 of 592 (11.6%)

17. If BBB goes back to accepting cash, will you start using cash again? a. Yes, for most trips >> 50 of 592 (8.4%)
b. Yes, for some trips >> 162 of 592 (27.4%)
c. No >> 380 of 592 (64.2%)

18. What can BBB do to improve the contactless fare program? --SMARTPHONE AND CREDIT ACCESS--

19. Do you have a smartphone?
a. Yes >> 512 of 592 (86.5%)
b. No >> 80 of 592 (13.5%)

20. Does your phone have a data plan?
a. Yes >> 498 of 592 (84.1%)
b. No >> 14 of 592 (2.4%)
c. No smartphone >> 80 of 592 (13.5%)

21. If your phone does not have a data plan, do you access the Internet on your phone using Wi-Fi? a. Yes >> 10 of 14 (71.4%)
b. No >> 4 of 14 (28.6%)

22. Do you have a credit, debit, or pre-paid card to make purchases? a. Yes >> 530 of 592 (89.5%)
b. No >> 62 of 592 (10.5%)

23. Would you be interested in using mobile ticketing (smartphone app) if you could load value to your phone at the BBB Transit Store using cash?
a. Yes >> 363 of 592 (61.3%)
b. No >> 135 of 592 (22.8%)
c. No answer >> 94 of 592 (15.9%)
--REDUCED FARE OPTIONS--

24. Are you aware that there are reduced fares available for seniors (62+), people with Disabilities, Medicare recipients, and/or youth?
a. Yes >> 519 of 592 (87.7%)
b. No >> 73 of 592 (12.3%)

25. Which of the reduced fares are you receiving, if any? (Select all that apply)
a. Senior (62+) >> 66 of 550 (12.0%)

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b. Disabled/Medicare recipient >> 37 of 550 (6.7%)
c. Youth (5-18 years of age) >> 40 of 550 (7.3%)
d. Low-Income (LIFE) >> 8 of 550 (1.5%)
e. Not Receiving a discount >> 384 of 550 (69.8%)
f. I don’t know >> 15 of 550 (2.7%)

26. What reduced fares might you qualify for?
(Select all that apply)
a. Senior (62+) >> 6 of 457 (1.3%)
b. Disabled/Medicare recipient >> 2 of 457 (0.4%)
c. Youth (5-18 years of age) >> 4 of 457 (0.9%)
d. Low-Income (LIFE) >> 0 of 457
e. None of the above >> 423 of 457 (92.6%)
f. I don’t know >> 22 of 457 (4.8%)

27. Before BBB stopped accepting cash and tokens, did you receive the senior or disabled/Medicare reduced fare by paying $0.50 with cash? a. Yes >> 95 of 109 (87.2%)
b. No >> 14 of 109 (12.8%)
--LIFE PROGRAM--

28. Are you aware of the free or reduced fare available for low-income riders through the LIFE program?
a. Yes >> 110 of 592 (18.6%)
b. No >> 481 of 592 (81.3%)
c. No answer >> 1 of 592 (0.2%)

29. Are you currently receiving the LIFE program reduced fare? a. Yes >> 29 of 592 (4.9%)
b. No >> 77 of 592 (13.0%)
c. I don’t know >> 4 of 592 (0.7%)
d. No answer >> 482 of 592 (81.4%)

30. Are you eligible for reduced fares based on household income? a. Yes >> 121 of 592 (20.4%)
b. No >> 440 of 592 (74.3%)
c. I don’t know >> 30 of 592 (5.1%)
d. No answer >> 1 of 592 (0.2%)
--DEMOGRAPHICS--

31. What is your gender?
a. Male >> 230 of 592 (38.9%)
b. Female >> 360 of 592 (60.8%)
c. Non-binary >> 2 of 592 (0.3%)

32. In which age category do you belong?
a. 14-17 >> 44 of 592 (7.4%)

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b. 18 to 24 >> 87 of 592 (14.7%)
c. 25-34 >> 106 of 592 (17.9%)
d. 35-44 >> 121 of 592 (20.4%)
e. 45-54 >> 117 of 592 (19.8%)
f. 55-61 >> 38 of 592 (6.4%)
g. 62 and Older >> 79 of 592 (13.3%)

33. Select the group(s) that best describe you
(Select all that apply)
a. Hispanic/Latino/Latinx >> 284 of 604 (47.0%)
b. White >> 148 of 604 (24.5%)
c. Black/African-American >> 103 of 604 (17.1%)
d. Asian/Pacific Islander >> 58 of 604 (9.6%)
e. Native American >> 0 of 604
f. Other >> 11 of 604 (1.8%)

34. How many people currently reside in your household?

35. What is your annual household income?
a. Less than $25,000 >> 98 of 592 (16.6%)
b. $25,000 – $34,999 >> 129 of 592 (21.8%)
c. $35,000 – $49,999 >> 112 of 592 (18.9%)
d. $50,000 – $74,999 >> 36 of 592 (6.1%)
e. $75,000 – $99,999 >> 8 of 592 (1.4%)
f. More than $100,000 >> 2 of 592 (0.3%)
g. Decline >> 207 of 592 (35.0%)

36. How proficient are you in English?
a. I speak little to no English >> 20 of 592 (3.4%)
b. I speak some English >> 153 of 592 (25.8%)
c. I speak English very well >> 419 of 592 (70.8%)

37. What is your home zip code?

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Packet Pg. 549 Attachment: Big Blue Bus_Title VI Report_9.26.22 draft FINAL [Revision 2] (5363 : Adoption of Title VI Program) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.J
1 of 4
To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Adoption of a Resolution Approving Final Parcel Map No. 83173 for 1311 Third Street Promenade
Recommended Action
Staff recommends that the City Council adopt the attached resolution approving Final Parcel Map No. 83173 for a three-unit subdivision of an existing mixed-use building located at 1311 Third Street Promenade, which includes existing residential units, office space, and retail space to be separately leased, financed, or sold.

Summary
This report transmits for City Council approval a Final Parcel Map for a three-lot airspace subdivision of an existing mixed-use building located at 1311 Third Street Promenade for the purposes of separately leasing and financing the residential and commercial components of the building. All procedural steps have been followed and Council’s approval of the Final Map is the final step in the subdivision process.

PARCEL MAP ADDRESS SUBDIVIDER UNITS
83173 1311-1313 3rd Street Prom Chris Jones, KPFF 3
The following table provides a brief summary of the project:

Zoning District Downtown Community Plan – Bayside
Conservation (BC)
Parcel Area 22,509 SF
Parcel Dimensions 150‘ W x 150‘ D
Existing On-Site Improvements (Year Built) 70,224 SF, 3-Story Mixed-Use Building (1924)
Rent Control Status 32 Controlled Units

5.J
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Historic Resources Inventory Status The Criterion Theater and Apartments is listed as eligible for listing as a Santa
Monica Landmark (5S3)
AHPP Compliance N/A
Background
On February 3, 2021, the Planning Commission approved the Vesting Tentative Parcel Map. In accordance with Santa Monica Municipal Code (“SMMC”) Section

9.54.070(G)(2), the Planning Commission’s decision could have been appealed to the City Council within 10 days; however, the City did not receive an appeal within that time frame. Additionally, pursuant to SMMC Section 9.39.020, no additional land use entitlements were required from the Planning Commission to approve the project.

A timely filing of the Final Map was made to the County or City prior to the Map’s expiration date. According to Section 66452.6(d) of the Subdivision Map Act, once a timely filing is made to the County or City, subsequent actions of the local agency, but not limited to, processing, approving, and recording of a map, may lawfully occur after the map’s expiration date.

Discussion
The site is currently developed with a 3-story mixed-use building with a basement built in 1924 and consisting of residential and commercial uses. On November 9, 2012, an Administrative Approval was granted to allow for a remodel and a 7,490 SF addition to the existing building for general retail use.

On December 23, 2020, the applicant submitted a Vesting Tentative Parcel Map application (20ENT-0314) to the City Planning Division, to create three air space parcels on one land lot improved with a mixed-used building located at 1311 Third Street Promenade in the Downtown Community Plan’s Bayside Conservation Zoning District.

The purpose of the subdivision was to allow the residential and commercial components of the buildings to be separately leased or financed. The three airspace parcels would consist of the residential units, the office area, and the retail space. The 32 rent5.J Packet Pg. 551
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controlled residential units would not be affected by the creation of the residential airspace parcel as its only purpose is to allow the residential component to be separately leased or financed. On February 3, 2021, after a public hearing and careful review of the record, including comments received and staff recommendations, the Planning Commission approved a Tentative Parcel Map for the property. The action of the Planning Commission to approve the Vesting Tentative Parcel Map was based on its findings that the proposed subdivision will have no significant environmental impact and is in conformance with all state and local laws and regulations, and applicable General Plan Elements. No appeal was filed to the City Council within the ten-day appeal period in accordance with SMMC 9.54.070(G)(2).

The Final Map conforms to the Tentative Map. As a Vesting Tentative Parcel Map application, its associate approval confers a vested right to proceed with development in substantial compliance with the ordinances, policies, and standards in effect at the time the vesting map is deemed complete by the City. In this case, the application was deemed complete on January 4, 2021, and, therefore, the development is subject to the development standards of the Zoning Ordinance (as amended) in effect at that time.

The Final Map has been approved by the Los Angeles County Engineer’s office and certified by the City Engineer for conformance with the Tentative Map and conditions thereon, the Subdivision Map Act and local ordinance. The City Engineer’s office indicates that there are no required off-site public improvements. The City Attorney’s office has approved the Covenants, Conditions, and Restrictions for the Final Map as complying with the conditions of the Tentative Map and applicable laws.

Finance Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.

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Prepared By: Becky Cho, Associate Planner
Approved Forwarded to Council
Attachments:

A. CCD - Reso - Final Parcel Map 1311 Third Street Promenade (No. 83173) - 102522

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City Council Meeting: October 25, 2022 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA

ACCEPTING AND APPROVING THE FINAL SUBDIVISION MAP FOR PARCEL NO. 83173 TO SUBDIVIDE A PROPERTY AT 1311 THIRD STREET

PROMENADE
WHEREAS, on February 3, 2021, the Santa Monica Planning Commission approved a vesting tentative parcel map to create a three-unit subdivision of an existing mixed-use building located at 1311 Third Street Promenade, which includes existing residential units, office space and retail space to be separately leased, financed, or sold; and
WHEREAS, a timely filing of a final parcel map was made to the County of Los Angeles prior to expiration of the vesting tentative parcel map; and WHEREAS, pursuant to Section 66452.6(d) of the Government Code, if a timely filing of a final map is made to the City or County, then the City may process, approve, and record a final map after the expiration of the vesting tentative map; and WHEREAS, the final parcel map conforms to the vesting tentative parcel map; and WHEREAS, the City Council finds that the proposed subdivision is consistent with the applicable general and specific plans.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:

SECTION 1. That the Final Map for Parcel No. 83173 in the City of Santa Monica is hereby accepted and approved.

SECTION 2. That the City Clerk hereby is authorized and directed to endorse

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Packet Pg. 554 Attachment: CCD - Reso - Final Parcel Map 1311 Third Street Promenade (No. 83173) - 102522 [Revision 1] (5381 : Final Map for 1311 Third upon the face of said Map this order authenticated by the Seal of the City of Santa Monica.

SECTION 3. That 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:
_________________________

DOUGLAS SLOAN
City Attorney

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Packet Pg. 555 Attachment: CCD - Reso - Final Parcel Map 1311 Third Street Promenade (No. 83173) - 102522 [Revision 1] (5381 : Final Map for 1311 Third City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.K
1 of 4
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Fifth Modification to Allan D. Kotin & Associates Professional Services Agreement for Real Estate Advisory Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a fifth modification to Professional Services Agreement (PSA) #9543 (CCS) with Allan D. Kotin & Associates for continuation of real estate advisory services related to the Santa Monica Pier and other City projects. This modification will extend the term by one year. This will result in a 12-year amended agreement with no increase to the current authorized amount of $340,000, with future year funding contingent on Council budget approval.

Summary
The City has an extensive real estate portfolio with prominent assets such as the Santa Monica Pier, Civic Auditorium and Bergamot Station Arts Center, as well as other commercial properties at the beach and in the downtown area. As a best practice, the City retains advisory services specializing in economic and real estate analysis to inform and assist the City with valuations and negotiations. Allan D. Kotin & Associates is a consultant used by the City for such services. The City uses the firm’s consulting services to evaluate the feasibility and business terms associated with leases and licenses of several City-owned properties such as Pacific Park, the Civic Auditorium, beach concessions and other public-private partnerships. To ensure continuity, staff recommends modifying the existing professional services agreement with Allan D. Kotin & Associates (Kotin & Associates), who are supporting the City in current negotiations.

In some instances, requiring outside consultant services, the City has been able to be reimbursed for its consultant fees. Recently, the City has been in lease negotiations with

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the operators of Pacific Park and is being reimbursed for Kotin & Associates’ consultant fees through the reimbursement agreement with SM Park Holdings, LLC d/b/a Pacific Park.

Discussion
For complex projects, the City, through its Economic Development Division, engages highly specialized real estate advisory services. One of the consultants that the City currently contracts with, Kotin & Associates, was selected following a Request for Qualifications (RFQ) process in 2011 and Council approved on January 24, 2012 (Attachment A). Due to the complexity and duration of significant real estate transactions which can take many years to evaluate and negotiate, Kotin & Associates’ contract has been modified to extend the original term and increase the original budget as summarized in the Past Council Actions table below. Lease negotiations between the Santa Monica Pier tenant, Pacific Park, and the City have been ongoing; the complex lease negotiations have been conducted with the support of Kotin & Associates. To ensure continuity, staff recommends extending the term by one-year. The costs associated with the Pacific Park lease negotiations are being reimbursed through a cost reimbursement agreement with the subtenant operators of Pacific Park, the amusement park on the Santa Monica Pier. The Economic Development Division is in the process of finalizing a RFQ and expects to have a list of qualified consultants within Fiscal Year 2022-23.

Vendor/Consultant Selection
The services of Kotin & Associates were procured through a RFQ process in 2011. This firm was selected based on its qualifications and extensive financial and development advisory experience consulting for public agencies throughout the state. The City will be issuing a new RFQ for professional services in Fiscal Year 2022-23 to help identify additional professional service providers to assist the City with real estate needs.

However, due to potential ongoing requirements associated with Pacific Park, staff wanted to ensure Kotin was still under contract to provide continuity with this project.

Due to the COVID-19 pandemic, the shutdown of the Pier, and staff workload, the

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negotiations with Pacific Park and the solicitation for additional consultants were delayed.

Past Council Actions
Meeting Date Description
01/24/12 (attachment A) Original award of PSA # 9543 (CCS) authorizing Allan D. Kotin & Associates to provide real estate economic and financial advisory services in an amount not to exceed $70,000. A first modification was executed on June 26, 2014 to extend the term to June 30, 2016. At its June 23, 2015 meeting, Council authorized a second modification to the extend the term through December 31, 2019 and increase the contract by $130,000 for a total amount not-toexceed $200,000. 06/27/17 (attachment B) Council authorized a third modification to increase contract authority by $100,000 for a total amount not to exceed $300,000 11/12/19 (attachment C) Council authorized a fourth modification to increase contract authority by $40,000 for a total amount not to exceed $340,000 and to extend the term by three one-year options.

Financial Impacts and 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. Funding for the agreement has been budgeted for the 2022-23 fiscal year and the City is reimbursed for the consultant costs associated with the Pacific Park lease negotiations by SM Park Holdings, LLC. The remaining contract authority is $60,330 and is sufficient to complete the project.

Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council
Attachments:

A. 2012. 01.24 Kotin Council Report

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B. 2017. 06.27 Kotin Council Report
C. 2019. 11-12 Kotin Council Report
D. Kotin OAKS INITIATIVE 2021-2022

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Report
City Council Meeting: June 27, 2017
Agenda Item: 3.F
1 of 3
To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic Development Division
Subject: Modification to Professional Services Agreement for Real Estate and Economic Development Consultant
Recommended Action
Staff recommends that Council authorize the City Manager to negotiate and execute a third modification to Professional Services Agreement Number 9543 in the amount of $100,000 with Allan D. Kotin & Associates, a California-based company, for economic consulting and financial analysis. The proposed modification would result in a five-year amended agreement with a new total amount not to exceed $300,000, with future-year funding contingent on Council budget approval.

Executive Summary
Allan D. Kotin & Associates has been the real estate and economic development consultant to the City on a variety of projects including the Civic Center Sports Field and Fourth Street Cinema. Staff recommends modifying the professional services agreement with Allan D. Kotin & Associates to increase its contract authority by $100,000, for a total amount not to exceed $300,000, in order to continue to provide analytical support for City projects and endeavors.

Background
The City of Santa Monica Housing and Economic Development Department’s Economic Development Division periodically requires specialized real estate and financial consulting services to advise staff and Council on complex property transactions involving leasing, development, and the formulation of public/private development partnerships. Examples include the Civic Center sports field, Downtown cinema development, and Civic Auditorium renovation.

In December 2011, staff issued a Request for Qualifications (RFQ) from economic and financial consulting teams that could advise staff on complex real estate transactions such as redevelopment of the Fourth Street at Arizona Avenue site, revitalization of

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Bergamot Station Arts Center, and renovation of the Civic Auditorium. The real estate and economic consulting firm of Allan D. Kotin & Associates was recommended because of its extensive experience with providing economic and financial solutions to both the public and private sectors.

On January 24, 2012 (Attachment A), Council authorized staff to execute professional services agreement number 9543 with Allan D. Kotin & Associates in the amount of $70,000. A first modification was executed on June 26, 2014 to extend the term to June 30, 2016. At its June 23, 2015 meeting (Attachment B), Council authorized a second modification to the existing professional services agreement number 9543 to extend the term to December 31, 2019, and increase its contract authority by $130,000 for a total amount not to exceed $200,000.

Discussion
Allan D. Kotin & Associates has provided real estate financial analysis and economic development advice to the City on a variety of complex property transactions and development proposals including the Civic Center Sports Field and Fourth Street Cinema.

A third modification to the existing professional services agreement number 9543 is proposed to enable the firm to continue its economic and financial advisory services to the City in order to assist in the review of the upcoming solicitation of proposals for the renovation of the Civic Auditorium and other real estate analysis as required.

Staff seeks authorization to modify the professional services agreement to increase the contract amount by $100,000 for a total budget authority not to exceed $300,000.

Vendor/Consultant Selection
The firm, Allan D. Kotin & Associates, was chosen through an RFQ process in 2011.

The firm was selected based on its extensive economic development experience consulting for both the public and private sectors. The firm’s advice and analysis have been extremely helpful in assisting the City in structuring business terms that protect the City’s interests while yielding the greatest economic benefit.

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Financial Impacts and Budget Actions
The contract modification to be awarded to Allan D. Kotin & Associates is $100,000, for an amended contract total not to exceed $300,000. Funds are included in the FY 2017-18 Proposed Budget in the Housing and Economic Development Department.

The contract will be charged to account 012681.555060. Future-year funding is contingent on Council budget approval.

Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council
Attachments:

A. Council Report 1/24/2012
B. Council Report 6/23/2015
C. Oaks Initiative Allan D. Kotin & Assoc.

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Packet Pg. 565 Attachment: 2017. 06.27 Kotin Council Report (5389 : Amend and Extend the Professional Services Agreement Real Estate & Financial City Council
Report
City Council Meeting: November 12, 2019
Agenda Item: 3.H
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic Development Division
Subject: Modifications to Professional Services Agreements for Real Estate and Economic Advisory Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute:

1. A third modification to Professional Services Agreement # 9539 (CCS) with Keyser Marston Associates to increase the compensation by $200,000 and to extend the term by five additional one-year options for services related to the Fourth Street and Arizona project, Bergamot Station Arts Center project, and affordable housing projects. The proposed modification would result in a 14-year amended agreement with a new total not to exceed $480,000, with future-year funding contingent on Council budget approval; and,

2. A fourth modification to Professional Services Agreement # 9543 (CCS) with Allan D. Kotin & Associates to increase compensation by $40,000 and to extend the term by three additional one-year options for services related to the Santa Monica Pier, Beach, and Civic Auditorium. The proposed modification would result in an 11-year amended agreement with a new total not to exceed $340,000, with future-year funding contingent on Council budget approval; and,

3. A reimbursement agreement with SM Park Holdings, LLC, doing business as Pacific Park, or designee, related to the City’s expenses in evaluating proposed changes to the subtenant’s interest on the Pier.

Summary
The City has an extensive real estate portfolio with prominent assets such as the Santa Monica Pier, Civic Auditorium, and Bergamot Station Arts Center, as well as other commercial properties at the beach and downtown. As a best practice, the City retains advisory services specializing in economic and real estate analysis to inform and assist the City with valuations and negotiations. Keyser Marston Associates, Inc. is currently assisting the City with analysis and negotiations of the business terms associated with the proposed public/private partnerships at Fourth Street and Arizona and Bergamot Station Arts Center, as well as numerous affordable housing projects. Allan D. Kotin &

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Associates is currently evaluating the feasibility and business terms associated with leases and licenses of several City-owned properties including the Civic Auditorium, beach concessions, and Pacific Park. In order to support continuity for existing negotiations, staff recommends modifying the existing professional service agreements with Keyser Marston Associates, Inc. and Allan D. Kotin & Associates. In cases requiring outside consultant services, the City seeks reimbursement for its consultant fees. As the operators of Pacific Park have recently proposed potential modifications to their existing lease, staff seeks authorization to enter into a reimbursement agreement with SM Park Holdings, LLC, d/b/a Pacific Park Discussion
For complex development projects, the City, through its Housing and Economic Development Department, engages highly specialized real estate advisory services.

The City currently contracts with two consultants to perform such services, Keyser Marston Associates, Inc. (KMA) and Allan D. Kotin & Associates (Kotin & Associates).

Both consultants were selected following a Request for Qualifications (RFQ) process in 2011 and Council approval on January 24, 2012 (Attachment A). Due to the complexity and duration of significant real estate transactions that can take many years to evaluate and negotiate, the consultant contracts have been modified to extend the original term and increase the original budget as summarized in the Past Council Actions table below. As negotiations on several complex public/private partnership development projects are ongoing (Fourth Street and Arizona project, Bergamot Station Arts Center, the Civic Auditorium) and the Santa Monica Pier tenant operating Pacific Park has requested to modify their lease agreement, further modifications of the consultant agreements are recommended.

KMA currently provides real estate financial analysis and economic development consulting services for the Fourth Street and Arizona and Bergamot Station Arts Center projects, including assisting the City with negotiating business terms associated with proposed disposition and development agreements and long-term ground leases for the projects, as well as conducting economic modeling of alternative development scenarios and assisting in analyzing affordable housing projects. The fees charged by

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KMA are reimbursed by the respective development proponents through two separate cost-recovery agreements. To ensure that the economic analysis and negotiations are completed for the two projects, staff recommends modifying PSA # 9539 (CCS) with KMA to increase the compensation by $200,000 and to include five additional one-year options to extend the term, resulting in a total contract amount of $480,000 and a fourteen-year term.

Kotin & Associates is currently working on a variety of complex real estate transactions providing financial analysis and economic considerations for beach concessions, reuse of the Civic Auditorium, and lease negotiations for Pacific Park. To ensure consistency in the financial analysis and negotiations, staff recommends modifying PSA # 9543 (CCS) with Kotin & Associates to increase the compensation by $40,000 and to include three additional one-year options to extend the term, resulting in a total contract amount of $340,000 and an eleven-year term. The costs associated with the Pacific Park lease negotiations are proposed to be reimbursed through a cost reimbursement agreement with the subtenant operators of Pacific Park, the amusement park on Santa Monica Pier.

Vendor/Consultant Selection
The services of KMA and Kotin & Associates were procured through an RFQ process in 2011. Both firms were selected based on their qualifications and extensive financial and development advisory experience consulting for public agencies throughout the state.

Past Council Actions
Meeting Date Description
January 24, 2012
(Attachment A)
KMA. Original award of PSA # 9539 (CCS) authorizing KMA to provide professional real estate and economic development consultant services in an amount not to exceed $80,000. A first modification was executed on June 25, 2014 that extended the term through June 30, 2015.

Kotin. Original award of PSA # 9543 (CCS) authorizing Allan D.

Kotin and Associates to provide real estate economic and financial advisory services in amount not to exceed $70,000. A

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first modification was executed on June 26, 2014 to extend the term to June 30, 2016. At its June 23, 2015 meeting, Council authorized a second modification to the PSA 9543 to extend the term through December 31, 2019 and increase contract by $130,000 for a total amount not-to-exceed $200,000.

May 12, 2015
(Attachment B)
KMA. Council authorized a second modification to KMA’s PSA # 9539 (CCS) to extend the term to June 30, 2018, with three, oneyear options to extend and increase its contract authority by $200,000 for a total amount not to exceed $280,000.

June 27, 2017
(Attachment C)
Kotin. Council authorized a third modification to Kotin & Associates PSA to increase of contract authority by $100,000 for a total amount not to exceed $300,000.

Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to increase the amount of the agreements with Keyser Marston Associates, Inc. and Allan D. Kotin & Associates to continue to provide real estate consulting services. The City will be reimbursed for consultant costs by the development teams for the Fourth Street and Arizona and Bergamot Station Arts Center projects, and from SM Park Holdings, LLC for Pacific Park lease negotiations.

Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2019-20
Request
Future Year
Requests Account Number
Total Revised
Contract
Amount
9543 (CCS) $ 300,000 $ 20,000 $ 20,000 01160004.552010 $ 340,000 9539 (CCS) $ 280,000 $ 20,000 $ 130,000 01160004.552010 $ 430,000 $ 0 $ 50,000 $ 0 01160002.552010 $ 50,000
Total $ 480,000
Future-year funding is contingent on Council budget approval.

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Prepared By: Ramandeep Kaur, Management Fellow
Approved Forwarded to Council
Attachments:

A. Attachment A - Council Report January 24, 2012
B. Attachment B - Council Report May 12, 2015
C. Attachment C - Council Report June 27, 2017
D. Attachment D - Oaks Initiative Form Kayser Marston Associates Inc.

E. Attachment E - Oaks Initiative Form Allan D. Kotin & Associates

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CITY OF SANTA MONICA

OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Allan D. Kotin & Associates
Name(s) of trustees, directors, partners, and officers:

Allan D. Kotin
Name(s) of persons with more than a 10% equity, participation, or revenue interest: Allan D. Kotin
Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY:

Bid/PO/Contract # ____________________________ Permit # ___________________________ Jenn Miller Business Manager
12/1/2021
[email protected] (310) 873-5248

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Report
City Council Meeting: October 25, 2022
Agenda Item: 5.L
1 of 3
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of Agreement with Otis Elevator Company for Parking Structure #5 Elevator Repair
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Otis Elevator Company (Otis) for repairs to the Parking Structure 5 elevator for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.240 (a1, b, c, d3) and 2.24.250 (b) and is for a total amount not to exceed $503,000.

Summary
In 2014, the City executed a project to replace all the elevators in parking structures 2, 4 and 5. These new elevators were manufactured and installed by Otis Elevator, a proprietary product.

In fall of 2021, one of the elevators in Parking Structure 5 was set on fire with an accelerant and the damage was extensive to the cab and equipment, with unknown damage to the equipment in the shaft. This made the elevator unsafe to use. Staff received pricing from the elevator manufacturer to repair the elevator cab and equipment to make the elevator operable again. Staff recommends moving forward with Otis Elevator to make the required emergency repairs.

Discussion
Otis Elevator is the only company certified to work on their proprietary elevator systems.

Allowing a different vendor to repair the elevator would void the City’s current manufacturer’s warranty. After several months of investigation, Otis provided a quote for

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the initial repairs needed to make the elevator operational. The proposal to repair the elevator cab and equipment in the elevator control room only, is $303,000 (including 10% contingency). Damage to the elevator shaft, and the equipment in the shaft, cannot yet be investigated because the area cannot be safely accessed until the initial cab repairs are completed. Once it is safe to do so, Otis will provide an additional proposal to make the necessary final repairs. While the exact extent of the damage cannot yet be quantified, staff anticipate requiring an additional $200,000, making the total estimated cost not to exceed $503,000.

Staff recommends Otis Elevator Company to furnish and provide material and labor to repair the fire damaged elevator in Parking Structure 5 as an exception to competitive bidding per Muni Code 2.24.240 Procedures for Emergency Needs (a.1, b, c, and d.3) and 2.24.250 (b) Exemptions to the Competitive Process. The existing elevator was manufactured and installed by Otis in 2014 and must be repaired by Otis to achieve optimum performance and maintain the original warranty. The scope of work included in this contract is an urgent repair due to unforeseen events and must be repaired to meet building codes.

The Risk Management division has submitted an insurance claim to fund the repairs and the claim has been approved. The City is responsible for a $100,000 deductible.

The insurance company will reimburse the City for applicable expenses after the deductible is met.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Self-insurance Fund to award a contract with Otis Elevator for elevator repair services.

Construction Service Agreement
FY2022-23 Amount Account # Total Amount
$503,000 72800002.534500 $503,000

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Prepared By: Alex Parry, Senior Architect
Approved Forwarded to Council
Attachments:

A. Otis_Oaks_6-27-22

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CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
ty
Nata Monlea
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a "public benefit." If the "public benefit" is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of$25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax "abatement, exception, or benefit" of a value in excess of $5,000 in any 12- month period; or

7. Payment of "cash or specie" of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Otis Elevator Company
Name(s) of trustees, directors, partners, and officers:

Judy Marks, CEO & President
Alex Reznik, CFO Americas
Jim Cramer, President Otis Americas
Name(s) of persons with more than a 10% equity, participation, or revenue interest:

N/A
Ross Peare Regional Sales Manager
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Email: [email protected] Phone: 323-342-4500
FOR CITY USE ONLY:

Bid/PO/Contract# _ Permit# _

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Packet Pg. 575 Attachment: Otis_Oaks_6-27-22 (5315 : Parking Structure #5 Elevator Repair) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.M
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Housing and Human Services
Subject: Adoption of Resolutions for Affordable Housing Production Program Fees Recommended Action
Staff recommends that the City Council:

1. Adopt the attached Resolution increasing the Affordable Housing Unit Base Fee by 10.2 percent for new market-rate apartments and condominiums (Attachment A).

2. Adopt the attached Resolution increasing the Affordable Housing Unit Development Cost by 10.2 percent (Attachment B).

Summary
A key element of Santa Monica’s strategy to increase housing affordability is requiring market-rate housing developers to assist with creating affordable housing. Developers must either construct residences that are affordable to low- and moderate-income households or pay a fee, which is used to subsidize affordable housing built by nonprofit developers. The City calculates and publishes adjustments to the Affordable Housing Unit Base Fee and Affordable Housing Unit Development Cost on an annual basis, to keep pace with changes in land and construction costs.

The calculation methodology approved by City Council uses a combination of the annual change in median condominium sale prices in Santa Monica as a proxy measure for land cost changes and the change in construction costs based upon the Engineering News Record’s (ENR) Construction Cost Index specific to the Los Angeles area. The land cost and construction cost factors are weighted based on development cost data

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for the two most recently completed or under construction multi-family affordable developments financed by the City.

Based on 2021 sales data compiled by DQNews using Los Angeles County Assessor and Recorder data, the weighted change for the City in median condominium sale prices from 2020 to end of year 2021 was positive 10.6 percent. Condominium sale prices in Santa Monica had decreased in 2020 by 10.5 percent, so the 2021 increase represents a rebound in sale prices from the nadir of the pandemic.

The ENR Construction Cost Index increased 10.1 percent between March 2021 and March 2022. Recent increases in construction costs began in May of 2021 and are captured in this year’s data whereas last year’s increase was only 0.6 percent. A land cost inflation weight of 29.2 percent and construction cost inflation weight of 70.8 percent results in a 10.2 percent increase. The table below summarizes the annual adjustment formula calculation.

The new Affordable Housing Unit Base Fee and Affordable Housing Unit Development Cost would be 10.2 percent higher than the existing amounts. The new amounts would become effective December 1, 2022, if approved. The table below summarizes the adjustments in previous years.

Historical Annual Adjustment Rate
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.8% 7.2% 4.9% 3.6% 5.0% 5.0% 2.2% 0.0% -2.7% 10.2%
Discussion
The Affordable Housing Production Program (AHPP), Chapter 9.64 of the City’s Municipal Code, implements Proposition R, which establishes that not less than thirty percent of all newly constructed multi-family housing in the City annually must be affordable to low- and moderate-income households for at least 55 years. The AHPP requires developers of new market-rate multi-family housing to contribute to affordable housing goals by designating a portion of a development’s total residences as

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affordable housing, constructing affordable housing off-site, designating land for affordable housing development, or paying an affordable housing fee, in accordance with the following formulas:

1. Affordable housing unit base fee x floor area of multi-family project;

2. Multi-family projects with fractional affordable housing units of less than 0.75 based upon the formulas established in Section 9.64.050: Affordable Housing Unit Development cost x fractional percentage.

When the formula calculation for required affordable residences results in a fraction of less than 0.75, the obligation can be satisfied by payment of a fee based upon the Affordable Housing Unit Development Cost. For example, if a development is required to provide 4.7 units of affordable housing, the developer is required to designate four affordable residences and pay 0.7 times the Affordable Housing Unit Development Cost to satisfy the requirement associated with the fraction.

Annual Fee Adjustments
Section 9.64.070 of the AHPP provides that the Affordable Housing Unit Base Fee and the Affordable Housing Unit Development Cost shall be adjusted annually by Council resolution based on changes in construction and land costs. The fee adjustment methodology is detailed in Section 2 of the AHPP Administrative Guidelines (Attachment C) and reflects the methodology approved by Council in 2006. The fees are adjusted based on two factors: 1) changes in construction costs as measured by the Engineering News Records Construction Cost Index, and 2) changes in land costs measured by using the proxy of change in median condominium sales prices.

The table below summarizes the changes in these two factors since 2021, and the calculation results in a 10.2 percent increase in 2022.

Fee Description
2021
Amount
2022
Amount
%
Change

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Affordable Housing Unit Base Fee –
Apartments (per square foot)
$35.50 $39.12 10.2%
Affordable Housing Unit Base Fee –
Condominiums (per square foot)
$41.47 $45.70 10.2%
Affordable Housing Unit Development
Cost
$372,460 $410,451 10.2%
The proposed Resolutions, Attachments A and B, would adjust the fees accordingly, effective December 1, 2022. Details of the calculations prepared by staff for the Affordable Housing Unit Base Fee and the Affordable Housing Unit Development Cost are provided in Attachment D and Attachment E. The revenue implications resulting from the proposed fees adjustment are anticipated to be minimal, as fee revenues depend on development activity in any given year.

On September 26, 2022, the City published notice in the Santa Monica Daily Press of this hearing and the availability of the staff analyses. The City republished this notice on October 3, 2022. Copies of these analyses have been available in the City Clerk's Office for public review since September 26, 2022.

Past Council Actions
August 24, 2021
(Attachment F)
The previous annual adjustment decreasing the fees by 2.7 percent.

June 13, 2006
(Attachment G)
City Council approved the methodology for ascertaining changes in these costs and thereby calculating the adjustment.

July 21, 1998
(Attachment H)
The AHPP was adopted by the City Council and has been
periodically amended, as necessary.

Financial Impacts & Budget Actions
The proposed rate change in the Affordable Housing Unit Base Fee and Unit Development Cost is expected to increase annual revenues by approximately $30,600 per year depending on development activity levels. Revenues will be deposited in account 10400001.415300.

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Prepared By: Nigel Wallace, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Resolution Automatically Adjusting the Affordable Housing Unit Base Fee B. Resolution Automatically Adjusting the Affordable Housing Unit Development Cost
C. AHPP Administrative Guidelines
D. Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee
E. Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost
F. August 24, 2021 Staff Report
G. June 13, 2006 Staff Report (Web Link)
H. July 21, 1998 Staff Report (Web Link)

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Attachment A
1 City Council Meeting: 10-25-2022 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MONICA AUTOMATICALLY ADJUSTING

THE AFFORDABLE HOUSING UNIT BASE FEE FOR

NEW MARKET-RATE MULTIFAMILY DEVELOPMENT PURSUANT TO
SANTA MONICA MUNICIPAL CODE SECTION 9.64.070(B) BASED ON

CHANGES IN CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on November 8, 2005, the City Council amended Santa Monica Municipal Code Section 9.56.070, now renumbered Section 9.64.070, to provide that commencing on July 1, 2006, the Affordable Housing Unit Base Fee shall be automatically adjusted annually by City Council resolution based on changes in construction costs and land costs; and
WHEREAS, in order to implement the Council’s decision, staff formulated a specific method of measuring changes in construction costs and land costs; and WHEREAS, this proposed methodology was detailed in an April 24, 2006 letter prepared by Paul S. Silvern of HR&A Advisors, Inc. (“HR&A”) on behalf of the City and approved by the Council on June 13, 2006; and
WHEREAS, pursuant to this methodology, on June 27, 2006, the City Council adopted Resolution No. 10149 (CCS) which established an affordable housing unit base

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Packet Pg. 581 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
2 fee for condominiums of $28.15 per square foot and an affordable housing unit base fee for apartments of $24.10 per square foot; and
WHEREAS, pursuant to this methodology, on July 24, 2007, the City Council adopted Resolution No. 10229 (CCS) which incrementally adjusted these base fees by $1.41 per square foot for new market rate condominiums and $1.21 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council adopted Resolution No. 10329 (CCS) which incrementally adjusted these base fees by $1.33 per square foot for new market rate condominiums and $1.14 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City Council adopted Resolution No. 10422 (CCS) which incrementally adjusted these base fees by $0.80 per square foot for new market rate condominiums and $0.69 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City Council adopted Resolution No. 10529 (CCS) which incrementally decreased these base fees by $0.41 per square foot for new market rate condominiums and $0.35 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council adopted Resolution No. 10578 (CCS) which incrementally adjusted these base fees by

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Packet Pg. 582 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
3 $0.66 per square foot for new market rate condominiums and $0.56 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 11, 2012, the City Council adopted Resolution No. 10705 (CCS) which incrementally adjusted these base fees by $0.26 per square foot for new market rate condominiums and $0.22 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council adopted Resolution No. 10763 (CCS) which incrementally adjusted these base fees by $0.26 per square foot for new market rate condominiums and $0.22 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council adopted Resolution No. 10833 (CCS) which incrementally adjusted these base fees by $2.34 per square foot for new market rate condominiums and $2.00 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 25, 2015, the City Council adopted Resolution No. 10902 (CCS) which incrementally adjusted these base fees by $1.71 per square foot for new market rate condominiums and $1.46 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 23, 2016, the City Council adopted Resolution No. 10985 (CCS) which incrementally adjusted these base fees by

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Packet Pg. 583 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
4 $1.31 per square foot for new market rate condominiums and $1.13 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council adopted Resolution No. 11069 (CCS) which incrementally adjusted these base fees by $1.89 per square foot for new market rate condominiums and $1.62 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council adopted Resolution No. 11130 (CCS) which incrementally adjusted these base fees by $1.99 per square foot for new market rate condominiums and $1.70 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 13, 2019, the City Council adopted Resolution No. 11191 (CCS) which incrementally adjusted these base fees by $0.92 per square foot for new market rate condominiums and $0.79 per square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 24, 2021, the City Council adopted Resolution No. 11356 (CCS) which incrementally decreased these base fees by $1.15 per square foot for new market rate condominiums and $0.99 per square foot for new market rate apartments; and
WHEREAS, Resolution No. 10149 (CCS), Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529

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Packet Pg. 584 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
5 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), Resolution No. 11191 (CCS), and Resolution No. 11356 (CCS) thereby established an affordable housing unit base fee for condominiums of $41.47 per square foot and an affordable housing unit base fee for apartments of $35.50; and WHEREAS, in accordance with Santa Monica Municipal Code Section 9.64.070 and the City Council’s approved methodology, staff has calculated the required incremental adjustment to these base fees based on the changes to construction costs and land costs that have occurred since the adjustment undertaken last year; and WHEREAS, on September 26, 2022, the City published a notice that at the October 25, 2022 City Council meeting, the City Council would consider a proposed resolution to incrementally adjust the affordable housing fee that private developers pay to the City for the production of affordable housing based on this methodology and that the staff analysis was available for review in the City Clerk’s Office; and WHEREAS, the City republished this notice on October 3, 2022; and WHEREAS, a copy of staff’s analysis has been available in the City Clerk’s Office for public review since September 26, 2022; and
WHEREAS, based on this analysis, an increase in the amount of $3.62 per square foot of the current Affordable Housing Unit Base Fee of $35.50 for apartments

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Packet Pg. 585 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
6 and an increase in the amount of $4.23 per square foot of the current Affordable Housing Unit Base Fee of $41.47 for condominiums would be appropriate,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:

SECTION 1. The current Affordable Housing Unit Base Fee for new market rate condominiums of $41.47 per square foot established by Resolution No. 10149 (CCS), Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), Resolution No. 11191 (CCS), and Resolution No. 111356 (CCS) shall be increased by $4.23 per square foot of floor area.

SECTION 2. The current Affordable Housing Unit Base Fee for new market rate apartment of $35.50 per square foot established by Resolution No. 10149 (CCS), Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), Resolution No. 11191, and Resolution No. 111356 (CCS) shall be increased by $3.62 per square foot of floor area.

SECTION 3. Resolution No. 10149 (CCS), Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529

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Packet Pg. 586 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production Attachment A
7 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), Resolution No. 11191 (CCS), and Resolution No. 11356 (CCS) shall remain in full force and effect and shall not be superseded or altered by this resolution in any way.

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 on December 1, 2022.

APPROVED AS TO FORM:
_________________________
City Attorney

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Packet Pg. 587 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Base Fee [Revision 2] (5378 : Affordable Housing Production 1 City Council Meeting: 10-25-2022 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MONICA AUTOMATICALLY ADJUSTING

THE AFFORDABLE HOUSING UNIT DEVELOPMENT COST PURSUANT
TO SANTA MONICA MUNICIPAL CODE SECTION 9.64.070(C)

BASED ON CHANGES IN CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on June 13, 2006, the City Council amended Santa Monica Municipal Code Section 9.56.070, now renumbered Section 9.64.070, to provide that the City’s affordable housing unit development cost shall be established by resolution and that commencing on July 1, 2007, the affordable housing unit development cost shall be automatically adjusted annually by City Council based on changes in construction costs and land costs; and
WHEREAS, Santa Monica Municipal Code Section 9.64.020 defines “affordable housing unit development cost” as “the City’s average costs to develop a unit of housing affordable to 30% income households, 50% income households, 80% income households or moderate-income households;” and
WHEREAS, in order to implement the Council’s decision that the affordable housing unit development cost be adjusted based on changes in land and construction

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Packet Pg. 588 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing 2 costs, staff formulated a specific method of measuring changes in construction costs and land costs; and
WHEREAS, this proposed methodology was detailed in an April 24, 2006 letter prepared by Paul S. Silvern of HR&A Advisors, Inc. (“HR&A”) on behalf of the City and approved by the Council on June 13, 2006; and
WHEREAS, pursuant to this methodology, on July 24, 2007, the City Council adopted Resolution No. 10230 (CCS) which established an affordable housing unit development cost of $265,632; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council adopted Resolution No. 10330 (CCS) which incrementally adjusted this unit development cost by $11,953; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City Council adopted Resolution No. 10423 (CCS) which incrementally adjusted this unit development cost by $7,217; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City Council adopted Resolution No. 10530 (CCS) which incrementally decreased this unit development cost by $3,702; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council adopted Resolution No. 10579 (CCS) which incrementally adjusted this unit development cost by $5,903; and

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Packet Pg. 589 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing 3 WHEREAS, pursuant to this methodology, on September 11, 2012, the City Council adopted Resolution No. 10706 (CCS) which incrementally adjusted this unit development cost by $2,296; and
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council adopted Resolution No. 10764 (CCS) which incrementally adjusted this unit development cost by $2,314; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council adopted Resolution No. 10834 (CCS) which incrementally adjusted this unit development cost by $20,996; and
WHEREAS, pursuant to this methodology, on August 25, 2015, the City Council adopted Resolution No. 10903 (CCS) which incrementally adjusted this unit development cost by $15,318; and
WHEREAS, pursuant to this methodology, on August 23, 2016, the City Council adopted Resolution No. 10986 (CCS) which incrementally adjusted this unit development cost by $11,805;
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council adopted Resolution No. 11070 (CCS) which incrementally adjusted this unit development cost by $16,987; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council adopted Resolution No. 11131 (CCS) which incrementally adjusted this unit development cost by $17,836; and

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Packet Pg. 590 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing 4 WHEREAS, pursuant to this methodology, on August 13, 2019, the City Council adopted Resolution No. 11192 (CCS) which incrementally adjusted this unit development cost by $8,240; and
WHEREAS, pursuant to this methodology, on August 24, 2021, the City Council adopted Resolution No. 11357 (CCS) which incrementally decreased this unit development cost by $10,335; and
WHEREAS, Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS), Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution No. 11070 (CCS), Resolution No. 11131 (CCS), Resolution No. 11192 (CCS), and Resolution No. 11357 (CCS) thereby established an affordable housing unit development cost of $372,460; and
WHEREAS, in accordance with Santa Monica Municipal Code Section 9.64.070 and the City Council's approved methodology, staff has calculated the required incremental adjustment to the unit development cost based on the changes to construction costs and land costs that have occurred since the adjustment undertaken last year; and
WHEREAS, on September 26, 2022, the City published a notice that at the October 25, 2022 City Council meeting, the City Council would consider a proposed

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Packet Pg. 591 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing 5 resolution to adjust the affordable housing unit development cost that private developers may pay to the City for the production of affordable housing based on this methodology and that the staff analysis was available for review in the City Clerks Office; and WHEREAS, the City republished this notice on October 3, 2022; and WHEREAS, a copy of staff’s analysis has been available in the City Clerk’s Office for public review since September 26, 2022; and
WHEREAS, based on this analysis, an increase in the amount of $37,991 to the current affordable housing development cost of $372,460 would be appropriate,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:

SECTION 1. The current Affordable Housing Unit Development Cost of $372,460 established by Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS), Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution No. 11070 (CCS), Resolution No. 11131 (CCS), Resolution No. 11192 (CCS), and Resolution No. 11357 (CCS) shall be increased by $37,991.

SECTION 2. Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS), Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution

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Packet Pg. 592 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing 6 No. 11070 (CCS), Resolution No. 11131 (CCS), Resolution No. 11192 (CCS), and Resolution No. 11357 (CCS) shall remain in full force and effect and shall not be superseded or altered by this resolution in any way.

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 on December 1, 2022.

APPROVED AS TO FORM:
_________________________
City Attorney

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Packet Pg. 593 Attachment: Resolution Automatically Adjusting the Affordable Housing Unit Development Cost [Revision 2] (5378 : Affordable Housing Administrative Guidelines
Affordable Housing Production Program

AFFORDABLE HOUSING PRODUCTION PROGRAM

ADMINISTRATIVE GUIDELINES

CITY OF SANTA MONICA
(Pursuant to Chapter 9.64 of the Municipal Code)
Prepared by
The City of Santa Monica Housing Division
Approved by City Council April 12, 2016

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Packet Pg. 594 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
i
Table of Contents

1. Introduction ................................................................................................................ 1

2. Fee Methodology........................................................................................................ 2 A. Establishment and Periodic Adjustment of Base Fee............................................. 2 B. Affordable Housing Unit Development Cost ........................................................... 3

3. On-Site Affordable Residence Option ........................................................................ 4

4. Off-Site Affordable Residence Option ........................................................................ 4 A. One-Quarter Mile Radius Maximum....................................................................... 5 B. Exceptions to the One-Quarter Mile Radius Maximum........................................... 5 C. Evidence of Site Control......................................................................................... 6 D. Simultaneous Development of Off-Site Affordable Residences ............................. 7

5. Land Acquisition Option ............................................................................................. 7 A. Eligible Land Parcels.............................................................................................. 7 B. Evidence of Site Control....................................................................................... 10 C. Conveyance of the Site ........................................................................................ 10 D. Simultaneous Conveyance of Land or Option...................................................... 12 E. Eligible Non-Profit Affordable Housing Developer................................................ 12

6. For-Sale Affordable Residence Requirements ......................................................... 13 A. Establishment of the Initial Sales Price ................................................................ 13 B. Re-Sale of an Affordable Residence to a Subsequent Purchaser........................ 15 C. Subordination ………. .......................................................................................... 16 D. Default and Foreclosure....................................................................................... 16 E. Distribution of Insurance and Condemnation Proceeds ....................................... 16

7. Tenant and Purchaser Eligibility Procedures............................................................ 17 A. Priority Households .............................................................................................. 17 B. Persons Ineligible to Occupy an Affordable Residence........................................ 18 C. Establishment, Maintenance, and Update of Income-Qualified Tenants and Purchasers List .................................................................................................... 20 D. Tenant Income Increases, Initial Ineligibility and Advance Notice to City............. 25

8. Adjustments or Waivers ........................................................................................... 28

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Packet Pg. 595 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
ii

ATTACHMENTS
1-A Municipal Code Section 9.64 – Affordable Housing Production Program 1-B AHPP Options Comparison Table
2-A Fee Adjustment Methodology
2-B Current Base Fees for Apartment and Condominium Projects 3-A Affordable Residences Table - Condominium Projects w/4+ Residences in Multifamily Zones
3-B Incentives Table – Affordable Housing Developers
3-C Extremely-Low, Very-Low, Low and Moderate Income Levels 3-D Maximum Allowable Rents
3-E Deed Restriction Sample
4-A Affordable Housing Eligibility List Sample Application 4-B Waiting List Referral Form Sample

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Packet Pg. 596 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
1 1. Introduction
These Administrative Guidelines provide guidance on the implementation of the City’s Affordable Housing Production Program, Chapter 9.64 of the Santa Monica Municipal Code (“AHPP”) (see Attachment 1-A for a complete copy of the AHPP). The AHPP was originally adopted by the City Council on July 21, 1998. It has been amended on several occasions since then. The AHPP gives developers of multi-family housing a variety of options for satisfying the City’s affordable housing requirements. The precise options vary depending on the housing type and location of the housing being produced.

All new multi-family housing developments of two or more residences, including multifamily housing that is part of commercial or other developments, must comply with Chapter 9.64 unless specifically exempted by the terms of Chapter 9.64. See Attachment 1-B for a comparison table on the various options for complying with Chapter 9.64. The AHPP implements Proposition R. Approved by Santa Monica voters in November, 1990, Proposition R requires that not less than 30 percent of all newly constructed multi-family residential housing in the City each year be permanently affordable to, and occupied by, low- and moderate-income households.

Section 2 of these Guidelines describes the Fee Methodology. Section 3 provides information about the number of affordable residences required and the development incentives associated with the On-Site Option. The remaining sections expand upon the AHPP and provide additional requirements regarding the Off-Site Option (Section 4), the Land Dedication Option (Section 5), For-Sale Affordable Residences (Section 6), the Tenant and Purchaser Eligibility Procedures (Section 7) and Adjustments or Waivers (Section 8).

Questions about how a particular multifamily project applicant shall satisfy the affordable housing obligation (pay a fee, build residences onsite or offsite, or provide land dedications) should be directed to either the City Planning Division at (310) 458-8341, or

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Packet Pg. 597 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
2 to the Planning Counter in Room 111 in City Hall. Questions about current maximum rents and sales price calculation, or Tenant Eligibility and Selection Procedures should be directed to staff in the Housing Division at (310) 458-8702.

2. Fee Methodology
One way to satisfy the affordable housing obligation is through payment of the Affordable Housing Unit Base Fee (§ 9.64.070). The amount of the Affordable Housing Unit Base Fee ("Base Fee") is based upon the floor area of the project. The floor area of the project, as defined in the Municipal Code § 9.04.02.030.315, is multiplied by the Base Fee in order to determine the total fee owed by each project. The proceeds from this Base Fee are deposited into a special City Trust Fund and used to facilitate the development of housing affordable to very low-income, low-income and moderate-income households. The Fee Option is not available for ownership projects of four or more residences in the City’s multi-family residential zones.

A. Establishment and Periodic Adjustment of Base Fee
The Base Fee is set by a Resolution of the City Council (See Municipal Code 9.64.070 (b)) and is subject to annual adjustment based on changes in land cost and construction cost. The methodology for making these annual adjustments was established by the City Council in June 2006. More specifically, construction cost inflation is established based on the Engineering News Record’s (ENR) Construction Cost Index, which is updated monthly and is readily available via the Internet. The methodology uses annual change in median condominium purchase prices as a proxy measure for land cost changes. The relative balance between land cost inflation (based on changes in median condo prices) and construction cost inflation (based on a construction cost index) is determined based on current development cost data for recently completed or construction-in-progress multi-family affordable developments assisted by the City. A detailed explanation of the annual adjustment methodology is provided in Attachment 2-A.

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Packet Pg. 598 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
3 There are different base fees for condominiums and apartment projects. Attachment 2- B contains the current Base Fee amounts for apartment and condominium projects.

B. Affordable Housing Unit Development Cost
The Affordable Housing Unit Development Cost is set by a Resolution of the City Council (See Municipal Code 9.64.070(C)) and is subject to annual adjustment based on changes in land cost and construction cost. The methodology for making these annual adjustments was established by the City Council in June 2006 and is the same methodology used in adjusting the Affordable Housing Unit Base Fee described in Section (3)(A). The Affordable Housing Unit Development Cost is the average cost to the City to develop a residence of housing affordable to low- and moderate-income households. The Affordable Housing Production Program provides that when developers of market rate multi-family housing are providing affordable residences on- or off-site, and the calculation of the number of affordable residences required results in a fractional residence, these developers are eligible to pay a fee equal to the cost of producing that fractional residence based on the Affordable Housing Unit Development Cost if that fraction is less than 0.75. See Attachment 2-A.

Example (6-residence condominium project)
6 X .20 = 1.2 affordable housing residences
1 residence would be constructed on-site
Fee payment of 0.2 X $327,927 = $65,585.40

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4 3. On-Site Affordable Residence Option
Another way to satisfy the affordable housing requirements of Chapter §9.64 is by constructing affordable residences on the same site as the proposed new multi-family project (See § 9.64.050). Ownership projects or 4 or more residences in multifamily zones must provide affordable residences either onsite or offsite (See § 9.64.040). All housing developments that provide onsite affordable residences in accordance with the AHPP are entitled to a bonus over the maximum allowable number of residences on the site (i.e., density bonus) or a development bonus (commercial/industrial zones) and incentives (See Section 9.64.050[I] and Section 9.22). This includes all residences for sale or rent such as:
• Substantial remodel and conversion of commercial buildings to residential residences
• Substantial remodel of residential buildings
• Condos and apartments
Attachment 3-A provides a table indicating the minimum number of affordable residences required in an ownership project in a multifamily zone and the fractional portion of a residence that may be paid as a fee. Attachment 3-B provides information on density bonus and other development incentives allowed when providing onsite affordable residences. Attachments 3-C and 3-D provide information on the most current income eligibility and rent limits. Attachment 3-E provides an example of an “Agreement Imposing Restrictions on Real Property” between the City and a developer regarding a project containing affordable housing residences.

4. Off-Site Affordable Residence Option
This section of the Guidelines specifies certain additional requirements concerning the location of the Off-Site Affordable Residences, site control, and concurrent development of the market-rate project and the off-site residences.

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5 A. One-Quarter Mile Radius Maximum
Except as provided below, the alternative site for the Off-Site Affordable Residences shall be located within a one-quarter mile radius of the parcel on which the market rate residences are proposed, and within the boundaries of the City. (SMMC § 9.64.060(C)) The outer limit of this one-quarter mile radius area shall be determined by the Planning and Community Development Department. The Department’s method for so doing shall be similar to the method used for determining the area within which written notice of a pending development permit is given. Specifically, on a map of City parcels, the project applicant shall submit as part of the project application a set of one-quarter mile radii from the corners of the parcel on which the market rate residences will be constructed. Any multi-family parcel or commercial parcel on which multi-family housing is a permitted use, located, in whole or in any part, within these intersecting one-quarter mile radii is an eligible parcel for development of Off-Site Affordable Residences.

B. Exceptions to the One-Quarter Mile Radius Maximum
The maximum one-quarter mile radius requirement may be waived by majority vote of the City Planning Commission (whose decision shall be appealable to the City Council), based upon substantial evidence demonstrating that the location of Off-Site Affordable Residences more than one-quarter mile from the site of the market rate residences, but still within the City limits, better accomplishes the goals of the City’s zoning and planning regulations, including maximizing affordable housing production and dispersing affordable housing throughout the City. (SMMC § 9.64.060(F)) The project applicant shall have the burden of demonstrating why a location for the OffSite Affordable Residences of more than one-quarter mile from the market rate residences better accomplishes the City’s affordable housing objectives. In making its determination, the Planning Commission shall consider the recommendations of the Planning Director and the Housing Manager on the petition. An application for an exception to the one-quarter mile radius shall be submitted as part of the planning

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6 application for any other discretionary approvals on the project that are within the purview of the Planning Commission.

By way of example, but not by limitation, factors that may justify the special exception include:
• No Available Sites. There are no multi-family or suitably zoned non-residential parcels within the strict boundaries of the one-quarter mile radius that can accommodate the required number of Affordable Off-Site Residences. • Dispersal of Affordable Residences. The alternative location makes it possible to locate Off-Site Affordable Residences throughout the City. • More Affordable Residences. The size, price or other characteristics of the alternative site results in a project that yields more affordable residences than the project would yield if it were located within the strict limits of the one-quarter mile radius.
• Deeper Level of Affordability. The size, price or other characteristics of the alternative location makes it possible to offer the Off-Site Affordable Residences to households at a lower household income level than would be possible within the strict limits of the one-quarter mile radius.

In no event, however, shall the Off-Site Affordable Residences be located outside a radius of one mile from the market rate residences. No more than five project exceptions to the one-quarter mile radius shall be approved in any one City fiscal year.

C. Evidence of Site Control
In order to exercise the Off-Site Affordable Residence Option, the applicant must provide evidence that the site is owned in fee or that an option to purchase, subject to City project approval, has been secured. (SMMC § 9.64.060(B)) Evidence of such site control (e.g.,

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7 copies of purchase or option agreements) shall be provided to the City as part of the project application package.

D. Simultaneous Development of Off-Site Affordable Residences All affordable housing residences in a multi-family project or a phase of a multi-family project shall be constructed concurrently with the construction of market rate residences in the multi-family project or phase of that project. No building permit for the market rate residences shall be issued until a building permit has been issued for the Off-Site Affordable Residences, and no final City construction permit sign-off or occupancy permit shall be granted for the market rate residences until final construction permit sign-off or occupancy permit has been granted for the Off-Site Affordable Residences. Off-Site Affordable Residences shall be offered for rent or sale, as applicable, prior to or concurrently with rental or sale of the market rate residences.

5. Land Acquisition Option
This section of the Guidelines specifies additional requirements for exercising the Land Acquisition Option.

A. Eligible Land Parcels
Only land parcels meeting the following minimum characteristics shall be eligible under the Land Acquisition Option:

1. Zoning
Land parcels eligible for conveyance to the City, or an eligible non-profit affordable housing developer, shall be located in a City multi-family housing, commercial or industrial district in which multi-family housing is a permitted use.

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8 2. Minimum Land Value
For sites dedicated to the City, or an eligible non-profit affordable housing developer, the fair market value of the parcel(s) shall be at least equal to the amount of the Affordable Housing Production Fee that would otherwise apply were the market rate project applicant to elect that option under Chapter 9.64 instead of the Land Acquisition Option. The fair market value of the parcels proposed under this Option shall be supported by an estimate of value prepared by a qualified real estate appraiser, subject to the City’s reasonable review of the appraisal. For situations involving option payments, rather than conveyance of land in fee, see below. For below market rate sales, or option transfers, see below.

3. Site Characteristics
The parcel shall satisfy the following minimum criteria:
- 6,000 square feet
- Can be developed with at least 4 dwelling units
- Free of characteristics that would make it difficult or impossible to develop in a timely manner (i.e., irregular shape, excessive sloping, soil or other contamination, adjacent to incompatible land use)
A Phase I environmental evaluation report shall be required before any parcel can be considered for conveyance.

4. One-Quarter Mile Radius Maximum
Except as provided below, the land parcel(s) proposed to be conveyed to the City, or an eligible non-profit affordable housing developer, shall be located within a onequarter mile radius of the parcel on which the market rate residences are proposed and within the City limits. (SMMC § 9.64.080) The outer limits of this one-quarter mile radius area shall be determined by the Planning and Community Development Department. The Department’s method for so doing shall be similar to the method used for determining the area within which written notice of a pending development permit is given. Specifically, on a map of City parcels, the project applicant shall

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Packet Pg. 604 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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9 draw a set of one-quarter mile radii from the corners of the parcel on which the market rate residences will be constructed. Any multi-family parcels located, in whole or in any part, within these intersecting one-quarter mile radii is an eligible parcel for the Land Acquisition option.

5. Exceptions to the One-Quarter Mile Radius Maximum
The maximum one-quarter mile radius requirement may be waived by majority vote of the City Planning Commission (whose decision shall be appealable to the City Council), based upon substantial evidence demonstrating that the location of land more than one-quarter mile from the site of the market rate residences better accomplishes the goals of the City’s zoning and planning regulations, including maximizing affordable housing production and dispersing affordable housing throughout the City. (SMMC § 9.64.080)
The project applicant shall have the burden of demonstrating why a proposed site more than one-quarter mile from the market rate residences (but still within the City limits) better accomplishes the City’s affordable housing objectives. In making its determination, the Planning Commission shall consider the recommendations of the Planning Director, the Housing Manager, and the Housing Commission. An application for an exception to the one-quarter mile radius shall be processed simultaneously with any other discretionary approvals on the project that are within the purview of the Planning Commission.

By way of example, but not by limitation, factors that may justify the special exception include:
 No Available Sites. There are no multi-family parcels within the strict boundaries of the one-quarter mile radius that are suitable for multi-family development.  Dispersal of Affordable Residences. The alternative location makes it possible to locate affordable housing throughout the City.

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10  More Affordable Residences. The size, price or other characteristics of the alternative site could result in an affordable housing project that yields more affordable residences than would otherwise be required under the On-Site Affordable Residences option or the Off-Site Affordable Residences option in Ordinance 1918.
 Deeper Level of Affordability. The size, price or other characteristics of the alternative location makes it possible to offer affordable residences to households at a lower household income level than would be possible within the strict limits of the one-quarter mile radius.

In no event, however, shall the Land Acquisition Option apply to a site located outside a radius of one mile from the market rate residences. No more than five project exceptions to the one-quarter mile radius maximum shall be approved in any one City fiscal year.

B. Evidence of Site Control
In order to exercise the Land Acquisition Option, the market rate multi-family project applicant shall provide evidence, subject to reasonable City approval, that the site to be conveyed to the City, or an eligible non-profit affordable housing developer, is owned in fee by the applicant, or that an option to purchase has been secured. Evidence of such site control, including a current title report, and a copy of the option or lease agreement, if applicable, shall be included as part of the application for the market rate project.

C. Conveyance of the Site
An eligible site, or option to purchase an eligible site, shall be conveyed to the City, or an eligible non-profit affordable housing developer, as follows:

1. Fee Title Transfer
The site shall be sold or dedicated to the City or to a qualified non-profit housing developer free of any encumbrances, contractual, physical or financial, that would

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11 prevent it from being developed in a timely way by the City, or a qualified non-profit housing developer, for affordable multi-family housing.

If the site is dedicated to the City, or to an eligible non-profit affordable housing developer at no cost, the City shall provide reasonable cooperation as may be requested to help the applicant secure any state or federal tax credit for which such a dedication may be eligible.

If the site is sold to the City, or to an eligible non-profit affordable housing developer at below market rate, the difference between the fair market value and the below market sale price must be at least equal to the amount of the Affordable Housing Production Fee otherwise due, if that option had been selected by the project applicant.

2. Option to Purchase
If the market rate project applicant secures an option for another site to fulfill the Land Acquisition Option, the option must have a minimum term of six months and clearly state that the option may be transferred to a third party, such as the City or a qualified non-profit housing developer, under the same terms and conditions, including the agreed upon purchase price. A copy of the option agreement and a current title report shall be included with the application for the market rate project.

Any costs incurred by applicant to maintain the option from the date of project application through successful transfer of the option to the City or to a qualified non-profit developer shall be the responsibility of the applicant. If the sum of the applicant’s out-of-pocket option-related expenses, from date of project application through conveyance of the option, is less than the amount of the Affordable Housing Production Fee Option, these costs will be treated as a credit against the Affordable Housing Production Fee that would otherwise be due the City under that Chapter 9.64 option. The applicant shall pay any difference to the City as a reduced Affordable Housing Production Fee. The applicant shall provide the City a full accounting of all option payments and out-of-pocket option-related costs

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12 eligible for offset against the Affordable Housing Production Fee amount, which accounting shall be subject to reasonable City review and approval.

The land offered for option must have the following minimum site characteristics:
- 6,000 square feet
- Can be developed with at least 4 dwelling units
- Free of characteristics that would make it difficult or impossible to develop (i.e., irregular shape, excessive sloping, soil or other contamination, adjacent to incompatible land use)
A Phase I environmental evaluation report shall be required before any parcel can be considered for option.

The City shall exercise reasonable discretion in considering the option. The land option must be consistent with all City funding requirements, including the Consolidated Rental Housing Trust Fund Guidelines.

D. Simultaneous Conveyance of Land or Option
Conveyance of land or an option to purchase land to the City or an eligible non-profit affordable housing developer, pursuant to Chapter 9.64, shall be completed prior to the City’s final sign-off on construction permits for the market rate residences, or issuance of a certificate of occupancy, whichever occurs first.

E. Eligible Non-Profit Affordable Housing Developer
Dedication of land, below market rate sale of land or transfer of an option to purchase may be made either to the City or an “eligible non-profit affordable housing developer.” For purposes of the Land Acquisition Option of Chapter 9.64, an eligible not-profit affordable housing developer is a private, non-profit corporation with: (1) a current exemption under Section 501(c)(3) of the U.S. Internal Revenue Code; (2) a certificate of good standing from the Secretary of State in which the organization is incorporated; (3) has the development of housing affordable to low-income households as one of its

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Packet Pg. 608 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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13 principle missions; and (4) has been approved by the City Housing Manager, based on reasonable review of the organization’s record of performance developing multi-family housing affordable to low-income households. The non-profit affordable housing developer intended as the recipient of land pursuant the Land Acquisition Option must be identified as part of the project application.

6. For-Sale Affordable Residence Requirements
In the event that the affordable residences required under either the On-Site Affordable Residence Option or the Off-Site Affordable Residence Option are intended to be for-sale residences, rather than rentals, the following rules shall apply.

A. Establishment of the Initial Sales Price
The developer shall establish the initial sales price for the affordable residence so that the Total Monthly Housing Costs for the purchaser do not exceed the following formula:

Area Median Income x 110% x Bedroom Adjustment x 35% / 12. Total Housing Cost includes mortgage principal and interest, property taxes, property insurance, homeowners’ association dues and mortgage insurance, if applicable Area Median Income is defined in SMMC Section 9.64.020(K) and determined periodically by the United States Department of Housing and Urban Development for the Los Angeles area.

The Bedroom Adjustment Factors are:
0 Bedroom 0.7 3 Bedrooms 1.0
1 Bedroom 0.8 4 Bedrooms 1.08
2 Bedrooms 0.9

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14 The conventional financing shall conform to all of the following terms:

Loan Term: 30 Years
Interest Rate: Fixed
Minimum Down payment: 5%
Maximum Front End Debt-to-Income Ratio1: 38%
Maximum Back End Debt-to-Income Ratio2: 41%
The buyer must be income-qualified pursuant to Santa Monica Municipal Code Chapter

9.64 and this Agreement.

The actual price of the affordable residence will be a combination of the bank loan amount a buyer qualifies for plus the down payment provided by the buyer (consistent with the total monthly housing costs and the financing terms listed above). The lending criteria used by the private lender must be reasonable and customary and shall be subject to review and approval by the City Housing Division prior to completion of the purchase transaction. Moreover, any purchase price for an affordable residence underwritten with a back-end ratio of more than 41 percent (the maximum generally required by the secondary mortgage market) will also require review and reasonable approval by the City prior to completion of the purchase transaction.

1. Front End Ratio: ratio of total monthly housing costs (including mortgage principal and interest, property taxes, property insurance, homeowners’ association dues and mortgage insurance, if applicable) to total gross household income.

2. Back End Ratio: ratio of total monthly housing costs (including mortgage principal and interest, property taxes, property insurance, homeowners’ association dues and mortgage insurance, if applicable) plus other monthly payments on long-term household debt to gross household income.

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15 B. Re-Sale of an Affordable Residence to a Subsequent Purchaser

1. First Right of Refusal to the City
Throughout the 55-year period of the Agreement Imposing Restrictions on Real Property, the City shall have the first opportunity to purchase affordable for-sale residences created pursuant to the On-Site Affordable Residence Option or the Off-Site Affordable Residence Option (“Option to Purchase”). Owners wishing to sell their residences shall notify the City in writing at least 60 days before the residence is offered for sale to another qualifying party. The seller shall ensure that the residence is clean, in good repair and is available to be shown to prospective buyers. Any Option-related time periods in favor of the City shall be tolled until these conditions are met to the City’s reasonable satisfaction.

The City shall have 60 days to notify the seller of its intent to exercise the Option to Purchase, either by City purchase, by its designee (e.g., a non-profit affordable housing developer), or by referral of a qualified moderate-income buyer. (See below for the method for calculating the subsequent purchase price.) In the event that the City does not exercise the Option to Purchase, or an offer to purchase by the City or a qualified buyer is not accepted by the seller, the Option shall terminate and the owner may sell the residence to any income qualifying buyer at a price consistent with Section 6(B)(2) of these Guidelines. Seller shall only accept an offer by an income qualified buyer at a price consistent with Section 6(B)(2) of these Guidelines. Closing costs shall be divided between seller and buyer as is customary for like real estate transactions in Santa Monica at the time that escrow is opened.

2. Maximum Subsequent Selling Price
The resale price restriction will provide that the price for resale of the affordable residence shall be calculated using the same formula and factors set forth in Section 6(A).

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16 3. Continuous Use as a Primary Residence
Each purchaser of an affordable residence shall certify, prior to the close of escrow, in a form acceptable to the City that the residence is being purchased and shall be maintained as the purchaser’s primary residence. Failure of the purchaser to maintain eligibility for a homeowner’s exemption from property tax shall be construed as evidence that the residence is not the primary residence of the purchaser.

C. Subordination
At the request of the qualifying household’s lender, the City may subordinate the foregoing income eligibility and resale price restrictions to a first Deed of Trust at the time of purchase, provided that the Deed of Trust does not exceed the purchase price of the residence.

D. Default and Foreclosure
A Request for Notice of Default shall be recorded along with the Agreement Imposing Restrictions on Real Property. The Agreement will provide that any Notice of Default will constitute an owner’s Notice of Intent to Sell, and that the City may exercise its Option to Purchase. In the event that the City does not exercise its Option and the residence is foreclosed upon, proceeds of the foreclosure sale shall be used first to satisfy the lender’s lien(s), and any surplus proceeds, up to the amount that the owner would have received had there been no foreclosure, shall be paid to the owner. The remaining balance of any surplus shall be paid to the City for deposit into the Citywide Affordable Housing Trust Fund.

E. Distribution of Insurance and Condemnation Proceeds
In the event that the residence is destroyed and insurance proceeds are distributed to the low-income household owner instead of being used to rebuild, or in the event of liquidation of the homeowners’ association and distribution of the assets of the association to the members, including the owner, any surplus remaining after payment of encumbrances shall be distributed as set forth above with respect to default and foreclosure.

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17 7. Tenant and Purchaser Eligibility Procedures
Per Chapter 9.64, multi-family project applicants who have opted to satisfy the affordable housing obligation through the on-site or off-site option are required to fill vacant affordable residences by selecting income-eligible tenants from a City-developed list of income-qualified households, except if there are no qualified households on the Citydeveloped list or if the project applicant is developing ownership projects of four or more residences in the City's multi-family residential zones. Under these exceptions, the project applicant may choose themselves to select income-qualified households which shall be subject to eligibility certification by the City.

This section establishes priorities for eligibility to occupy On-Site Affordable Residences, describes categories of persons ineligible to occupy On-Site Affordable Residences, and outlines the procedures whereby the City Housing Division shall establish, maintain, and update the list of eligible tenants.

A. Priority Households
In establishing the list of households eligible to occupy affordable residences, the Housing Division shall adhere to the following priorities:
1) First Priority
Persons who have been permanently displaced or face permanent displacement from their housing residences in Santa Monica as a result of any of the following:
a) Ellis Act, owner-occupancy, or removal permit eviction b) Earthquake, fire, flood, or other natural disaster
c) Funding reductions in Santa Monica housing voucher assistance programs

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18 d) Governmental Action, such as Code enforcement
e) Closure of a mobile home park
2) Second Priority
Persons who are:
a) Residents of Santa Monica
b) Working in Santa Monica at least 36 hours per week
B. Persons Ineligible to Occupy an Affordable Residence Section 9.64 of the Municipal Code (see § 9.64.110(B)) specifically disqualifies the following categories of persons from occupying Affordable Residences:
- All employees and officials of the City or its agencies, authorities, or commissions who have, by virtue of their position, policy-making authority or influence over the implementation of the Affordable Housing Production Program, as well as the immediate relatives of employees of such City employees and officials. - The immediate relatives of the applicant or owner, including a spouse, child, parent, grandparent, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law.

Other parties disqualified from occupying affordable residences include:
- Tenants for whom the affordable residence will not be their sole residence.

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19 - Employees of the owner or the owner’s agents, including but not limited to employees of the property management company, except as required by law. An example of an exception would be a 100 percent affordable building that is required by law to provide onsite management, and must therefore use an affordable residence.
- Employees of any corporation or other entities where the owner has more than a 10 percent equity, participation, revenue, or ownership interest. - Immediate relatives, including a spouse, child, parent, grandparent, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law, of any other individual or entity with a financial interest in the property.
- Households where all adults are full-time students unless all members of the household meet all of the following criteria:
- Twenty-four years of age or older,
- Have lived separate from their parents for at least one year, - Are not claimed as a dependent pursuant to IRS regulations on any tax return for the most recent tax year, and
- The head of household provides written certification of all outside financial assistance.
- and at least one member of the household meets one of the following criteria:
- A veteran or active duty member of the U.S. military, - Have one or more legal dependents other than a spouse, - Live with a recognized disability,
- Be a graduate or professional student,
- Be married, or
- Have been an orphan or ward of the court through age 18.

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20 C. Establishment, Maintenance, and Update of Income-Qualified Tenants and Purchasers List
The Santa Monica Housing Division shall be responsible for preparing and maintaining an Eligibility List for this program and shall follow these Guidelines for preparing, maintaining, and updating the Eligibility List. Subject to the requirements below, the establishment, maintenance and update of the Eligibility List shall be generally modeled after the Housing Authority Administrative Plan with the Housing Division retaining the authority to adjust these protocols as appropriate for this local program.
1) Public Noticing Procedures
To create the Eligibility List, the Housing Division shall publish notices in newspapers circulated widely in Santa Monica, including newspapers that reach minority communities, at a minimum. At least one notice shall be published in a Spanish-language newspaper of general circulation. Examples of appropriate newspapers include the Santa Monica Daily Press, L.A. Times, La Opinion, and The Sentinel. The notices should briefly explain what affordable housing is, state the applicable income requirements, indicate how to apply for the Eligibility List, state when the application period opens and closes, indicate priorities for eligible occupants, and provide a telephone number for questions.

Applications may require name, address, telephone number, household size, income, date of birth, information relevant to program priorities, and applicant’s signature.
2) Creating the Eligibility List
The Housing Division shall create an Eligibility List using the information provided on the applications received, including name, household size, income, age, residency, place of employment (if applicable), priority status, and

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21 any other relevant information. Additionally, the Eligibility List will include households on any existing waiting list who indicated their intent to be included in the Eligibility List after being contacted by the Housing Division. Households will be drawn from the Eligibility List as affordable residences become available or in anticipation of affordable residences becoming available in the near future and shall be income qualified for use in referrals for available affordable residences.
3) Eligibility List and Referral Process
Each time affordable residences become available for occupancy, the owner and the Housing Division shall follow these procedures:
a) At least 90 days prior to issuance of a Certificate of Occupancy by the City for newly developed residences, or within 5 business days of notice of tenant vacation in existing developments, owners shall notify the City of the number and type (affordability level, number of bedrooms, ownership or rental) of residences available.
b) Within 20 business days of notice by the owner, the City shall provide the owner with a Referral Form, for each household drawn from the Eligibility List, and provide at least five names for each residence available.

Additional names may be provided to the owner upon request, subject to availability.
c) Owners shall directly contact the persons on the Referral Forms provided by the City. Owners shall give applicants at least 5 business days to submit a completed application. Owners who are not able to fill vacant residences from the Referral Forms provided may request additional names from the City. Additional names will be provided within 5 business days, subject to availability.

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22 d) Owners shall conduct all further screening and selection of applicants. All applicable State Fair Housing laws must be observed.
e) Candidates on the City’s Eligibility List may be referred up to a maximum of five times, except in cases involving a reasonable accommodation. After the fifth referral, candidate names will be removed from the Eligibility List. 4) Updating the Eligibility List
a) Periodic Update: The Eligibility List shall be periodically updated at least every two years. Letters shall be sent to all households on the Eligibility List requesting verification of all information, including name, address, place of residency, place of employment (if applicable), and continued interest in staying on the list. Eligibility List households shall be given two weeks to respond. At the end of the two week period, the names of households who have failed to respond shall be taken off the Eligibility List. The Eligibility List shall also be updated to incorporate any changes in status (place of residency, eligibility for priority status, etc.) for each applicant. b) Emergency Additions to Eligibility List: At any time, even if the Eligibility List is closed, persons displaced from Santa Monica housing as set forth in Section 7(A)(1) of these Guidelines (i.e., “first-priority” households) will result in the automatic addition of that household to the Eligibility List with the applicable priority.
c) The City will provide a Referral Form to the owner for each household selected from the Eligibility List. The owner shall complete the Referral Form indicating whether a residence was offered to the household and whether the residence was accepted or refused. A sample Referral Form is provided in Attachment 4-B. If a residence was not offered because of a poor credit history or for any other reason, the owner will note this as well.

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23 The City will incorporate this information into the Eligibility List, but not disclose such information to other owners.
d) Households on the City’s Eligibility List will be referred only for those residences for which they qualify. For example, moderate income households will only be referred for vacancies in moderate income residences. Households on the City’s Eligibility List must report any changes to address, household size, Santa Monica residency, employment in Santa Monica, and/or, income to the Housing Division within 10 days of the change.
5) Persons Dependent Upon Income from Other Sources
Households on the City’s Eligibility List must report income from all sources.

Any households on the City’s Eligibility List receiving support, including tuition payments, rent payments, and/or, regular gifts, and/or any household who appears as a dependent upon the tax return of another individual must so disclose. In these cases, the income of the other party will be considered along with the income of the applicant/tenant household in determining eligibility. 6) Automatic Removal from Eligibility List
Applicant names will be removed immediately from the Eligibility List for:
a) Failure to appear for a scheduled qualification interview or prior to the interview time contact the Housing Division to arrange an alternate time or date, or
b) More than two refusals of offered residences, or
c) Misrepresentative statements on eligibility documentation, in qualification interview(s), or Informal Review, or
d) Failure to disclose dependent status or receipt of substantial support, or

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24 e) Acceptance of an affordable residence stemming from a Referral.

Households whose names are removed from the Eligibility List will also have their names removed from the Referral Form upon which their names appear.

Households whose names are removed from the Eligibility List shall be notified by mail at the address which they have supplied to the City. The reason for removal will be specified as part of the notification.
7) Appeal Process
a) Right to Appeal
The decision by the City to remove a name from the Eligibility List or from a Referral Form may be appealed. All appeals must be in writing and delivered to the Housing Division in person or by first class mail, by the close of the business day, no later than 10 business days from the date of the Housing Division’s notification of removal from the Eligibility List. b) Scheduling an Informal Review
Upon receipt of an appeal in writing, the Housing Division shall conduct an Informal Review. The Housing Division will schedule an Informal Review to take place within 10 days of receipt of the appeal. Once the Informal Review date is set, the appellant may reschedule only upon showing "good cause," which is defined as an unavoidable conflict seriously affecting the health, safety or welfare of the Appellant or his/her family.
c) Failure of Appellant to Appear for Informal Review
If the appellant does not appear at a scheduled Informal Review and has not rescheduled the Informal Review in advance, the appellant must contact the Housing Division within two working days. The Housing Division shall reschedule the Informal Review only if the appellant's absence was caused by medical emergency or incarceration. In this event, the Informal Review may be rescheduled only once.

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25 d) Conduct of the Informal Review
The informal review must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. The Appellant must be provided an opportunity to present written or oral objections to the decision to remove them from the Eligibility List and both the Appellant and the Housing Division have a right to present any information pertinent to the issue of the Informal Review. e) Notification of the Informal Review Decision
The Housing Division must notify the Appellant within 14 days of the decision regarding the Informal Review, including an explanation of the decision and the associated findings. This decision shall be final and not subject to further administrative review.

D. Tenant Income Increases, Initial Ineligibility and Advance Notice to City This subsection of the Guidelines provides protocols for changes in tenant income during occupancy, property owner and tenant responsibilities when tenant was not income eligible at the time of initial occupancy, and advance notice to the City regarding rent increases.
1) Tenant Income Increases
The published Maximum Allowable Income applies to the household from the day the tenant moves in through the first year of occupancy or the first annual recertification, whichever comes first. If after the first year of occupancy in an affordable apartment, or during the first annual recertification, the household income is found to exceed the maximum allowable income limit for the apartment, the tenant(s) may remain in the apartment as long as the household income does not exceed 140 percent of the income limit for the residence.

However, if the tenant’s income exceeds 140 percent of the income limit for the apartment, the following shall apply:

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26 a) If there is a vacant affordable apartment in the same building for which the household qualifies, the household will be offered that apartment, providing the move does not violate any other provisions of the law, including minimum occupancy requirements. If the relevant “Agreement Imposing Restrictions on Real Property” allows it, the property owner may also switch the affordability levels of the two apartments to prevent the household from having to move their belongings. The rent will then be adjusted to reflect the higher level of affordability.

If the household refuses to move to the higher affordability level apartment for which they qualify, or refuses to pay the higher rent, they will be provided with a one-year notice to vacate the apartment.

If, before the term of the notice has passed, the tenant recertifies the household income and they again qualify for the apartment, the one year notice to vacate will be rescinded.
b) If the previous section does not apply, and there is a vacant market-rate apartment of equal accommodations in the same building, the owner may designate the market-rate apartment as the affordable apartment. The rent in the formerly affordable apartment may then be raised to the market-rate for the apartment. However, this option cannot be chosen if the relevant “Agreement Imposing Restrictions on Real Property” specifically enumerates which apartments in the building are designated as the affordable apartments.
c) If neither of the two previous sections apply, the household will be provided with a one-year notice to vacate the apartment.
i) If, before the term of the notice has passed, a market-rate apartment becomes vacant in the same building, the tenant under notice to

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27 move will have first right of refusal to lease the market-rate apartment.
ii) If, before the term of the notice has passed, the tenant recertifies the household income and they again qualify for the apartment, the oneyear notice to vacate will be rescinded. 2) Initial Tenant Ineligibility
If during compliance monitoring by the City, or the property owner, it is determined that the tenant’s income exceeded the income limit for the residence at the time the tenant initially moved into the residence, the tenant shall be given a 90-day notice to vacate the residence. Notwithstanding the above, if the tenant would qualify for an affordable apartment targeted to a higher affordability level and such a vacant residence is available within the subject property, then the tenant may be allowed to move to that vacant residence, subject to Section 7(D)(3) below. 3) Property Owner to Pay for Relocation
When it is determined that a tenant’s income exceeded the income limit for an affordable residence at initial occupancy, then it shall be the property owner’s responsibility to pay the costs directly associated with relocating the tenant to another residence within Santa Monica or adjacent area, unless the tenant misrepresented pertinent information to obtain the residence. Such costs would include packing/unpacking, moving/movers and utility connection fees, but would not include the differential in rent between the affordable (AHPP) residence and new residence.
4) Notice to City of Rent Increases
A property owner must provide a 30-day advanced written notice to the City before issuing a rent increase notice to a tenant. The information provided in the property owner’s notice to the City shall include the residence identification, tenant name, affordability level of the residence (i.e., extremely low-, very low-, low- or moderateincome) current rent, amenities included in rent (e.g., parking, water, trash),

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28 proposed rent, and proposed rent start date. The City will have 30-days upon which to review the proposed rent increase and notify the property owner of any objections before the property owner may issue a rent increase notice to a tenant.

In the absence of any other, more stringent, rent increase limitations on the property, the rent of an affordable apartment shall not be increased by more than five percent in any twelve month period, up to the published maximum allowable rent.

8. Adjustments or Waivers
The AHPP authorizes a project applicant to request an adjustment or waiver of the AHPP based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.

To receive an adjustment or waiver, the applicant must submit an application to the Director of Housing and Economic Development, or his/her designee, at the time the applicant files a multi-family project application. The applicant bears the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation.

In making a determination on an application to adjust or waive the requirements of this Chapter, the Director of Housing and Economic Development, or City Council on appeal, may assume each of the following when applicable:
(1) The applicant is subject to the affordable housing requirement of this Chapter; (2) The applicant will benefit from the inclusionary incentives set forth in this Chapter and the City’s Municipal Code;

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29 (3) The applicant will be obligated to provide the most economical affordable housing residences feasible in terms of construction, design, location and tenure.

The Director of Housing and Economic Development must make a written decision within ninety days after a complete application is filed. The Director’s decision may be appealed to the City Council if such appeal is filed within fourteen consecutive calendar days from the date of the decision.

If the Director of Housing and Economic Development, or City Council responding to an appeal of the Director’s decision, determines that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If an adjustment or waiver is granted, any change in the use within the project shall invalidate the adjustment or waiver. If the Director, or City Council on appeal, determines that no violation of the United States or California Constitutions would occur through the application of this Chapter, the requirements of this Chapter shall remain fully applicable.

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30 ATTACHMENTS
1-A Municipal Code Chapter 9.64 (Subject to Amendments) 1-B AHPP Options Comparison Table
2-A Fee Adjustment Methodology
2-B Current Base Fees for Apartment and Condominium Projects (Adjusted Annually) 3-A Affordable Residences Table - Condominium Projects w/4+ Residences in Multifamily Zones
3-B Development Incentives Table
3-C Very Low, Low and Moderate Income Levels (Adjusted Annually) 3-D Maximum Rents (Adjusted Annually)
3-E Sample of Deed Restrictions
4-A Sample Application for Affordable Housing Waiting List 4-B Referral Status Form

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ATTACHMENT 1-A
Municipal Code Chapter 9.64
Chapter 9.64 AFFORDABLE HOUSING PRODUCTION PROGRAM

9.64.010 Findings and Purpose
The City’s affordable housing production program requires developers of market rate multifamily developments to contribute to affordable housing production and thereby help the City meet its affordable housing need. As detailed in the findings supporting the ordinance codified in this Chapter, the requirements of this Chapter are based on a number of factors including, but not limited to, the City’s long-standing commitment to economic diversity; the serious need for affordable housing as reflected in local, state, and federal housing regulations and policies; the demand for affordable housing created by market rate development; the depletion of potential affordable housing sites by market-rate development; and the impact that the lack of affordable housing production has on the health, safety, and welfare of the City’s residents including its impacts on traffic, transit and related air quality impacts, and the demands placed on the regional transportation infrastructure. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.020 Definitions
The following words or phrases as used in this Chapter shall have the following meanings:

A. 30% Income Household means a household whose gross income does not exceed the 30% income limits applicable to the Los Angeles-Long Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD.

B. 50% Income Household means a household whose gross income does not exceed 50% of the area median income, adjusted for household size, as published and periodically updated by HUD. 50% income households include 30% income households.

C.80% Income Household means a household whose gross income does not exceed 80% of the area median income, adjusted for household size, as published and periodically updated by HUD. 80% income households include 50% income households.

D.Adjusted for Household Size means 70% adjustment for a household of one person, 80% adjustment for a household of two persons, 90% adjustment for a household of three persons, 100% adjustment for a household of four persons, 108% adjustment for a household of five persons, 116% adjustment for a household of six persons, 124% adjustment for a household of seven persons, 132% adjustment for a household size of eight persons. For households of more than eight persons, adjustments shall be made in accordance with applicable HUD regulations.

E. Adjusted for Household Size Appropriate for the Unit means for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three

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persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit.

F. Affordable Housing Fee means a fee paid to the City by a multi-family project applicant pursuant to Section 9.64.070 of this Chapter to assist the City in the production of housing affordable to 30% income households, 50% income households, 80% income households, and moderate-income households.

G.Affordable Housing Unit means a housing unit developed by a multi-family project applicant pursuant to Section 9.64.050 or 9.64.060 of this Chapter which will be affordable to 30% income households, 50% income households, 80% income households, or moderate-income households.

H.Affordable Housing Unit Development Cost means the City’s average cost to develop a unit of housing affordable to 30% income households, 50% income households, 80% income households or moderate income households.

I. Affordable Ownership Housing Cost. Affordable ownership housing cost means: For moderate income households whose gross incomes exceed the maximum income limits for 80% income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 110 percent of the area median income adjusted for household size appropriate for the unit.

J. Affordable Rent. Affordable rent means:

1. For 30% income households, the product of 30 percent times 30 percent of the area median income adjusted for household size appropriate for the unit.

2. For 50% income households, the product of 30 percent times 50 percent of the area median income adjusted for household size appropriate for the unit.

3. For 80% income households whose gross incomes exceed the maximum incomes for 50% income households, the product of 30 percent times 60 percent of the area median income adjusted for household size appropriate for the unit.

4. For moderate income households, the product of 30 percent times 110 percent of the area median income adjusted for household size appropriate for the unit.

For purposes herein, affordable rent shall be adjusted as necessary to be consistent with pertinent Federal or State statutes and regulations governing Federal or State assisted housing.

K. Area Median Income or AMI. Area median income or AMI means the median family income published from time to time by HUD for the Los Angeles-Long Beach Metropolitan Statistical Area.

L. Dwelling Unit. One or more rooms, designed, occupied or intended for occupancy as separate living quarters, with full cooking, sleeping and bathroom facilities for the exclusive use of a single household. Dwelling unit shall also include single-room occupancy units as defined in Santa Monica Municipal Code Section 9.52.020 or any successor thereto.

M. Floor Area. Floor area as defined in Santa Monica Municipal Code Section 9.52.020 or any successor thereto.

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N.Gross Income. Gross income has the same meaning as provided in Title 25, Section 6914 of the California Code of Regulations, as amended from time to time, in accordance with law.

O.HCD. The California Department of Housing and Community Development or its successor.

P. Housing Cost. Housing cost has the same meaning as provided in Title 25, Section 6920 of the California Code of Regulations, as amended from time to time in accordance with law.

Q.HUD. The United States Department of Housing and Urban Development or its successor.

R.Income Eligibility. Income eligibility is based upon the gross income of the household, including the income of all wage earners, elderly or disabled family members, and all other sources of household income.

S. Market Rate Unit. A dwelling unit as to which the rental rate or sales price is not restricted by this Chapter.

T. Moderate Income Household means a household whose gross income exceeds the maximum income for an 80% income household and whose gross income does not exceed the lesser of: (i) 120% of the area median income, adjusted for household size, as published and periodically updated by HCD or (ii) twice the income limit for 50% income households, adjusted for household size, as published and periodically updated by HUD.

U.Multi-family Project. A multi-family residential development, including but not limited to apartments, condominiums, townhouses or the multi-family residential component of a mixed use project, for which City permits and approvals are sought.

V. Multi-family Project Applicant. Any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks City development permits or approvals to develop a multi-family project.

W. Multi-family Residential District. Any district designated in the Santa Monica Zoning Ordinance as a multi-family residential district.

X.Parcel. Parcel as defined in Santa Monica Municipal Code Section 9.52.020 or any successor thereto.

Y. Rent. Rent has the same meaning as provided in Title 25, Section 6918 of the California Code of Regulations, as amended from time to time in accordance with law.

Z. Vacant Parcel. A parcel in a multi-family residential district that has no residential structure located on it as of August 20, 1998 or which had a residential structure located on it on that date which was subsequently demolished pursuant to a demolition order of the City. No demolition of structures shall be permitted except in accordance with Santa Monica Municipal Code Chapter 9.25 et seq. or any successor thereto. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

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9.64.030 Applicability of Chapter
A.The obligations established by this Chapter shall apply to each multi-family project involving the construction of two or more multi-family units, which project has not received its ministerial or discretionary planning approvals including, without limitation: variances, conditional use permits, administrative approvals, development review permits, and development agreement ordinances which have not yet become effective (collectively, “Approvals”) on or before July 26, 2013. No building permit shall be issued for any multifamily project unless such construction has been approved in accordance with the standards and procedures provided for by this Chapter. Notwithstanding the above, a multifamily rental housing project that will be developed by a nonprofit housing provider receiving financial assistance through one of the City’s housing trust fund programs shall not be subject to the requirements of this Chapter so long as the project is an affordable housing project meeting the requirements of Santa Monica Municipal Code Section

9.52.020 or any successor thereto and the project’s affordability obligations will be secured by a regulatory agreement, memorandum of agreement, or recorded covenant with the City for a minimum period of fifty-five years.

B. Multi-family projects which have received Approvals prior to the effective date of this ordinance shall be subject to the provisions of Santa Monica Municipal Code Section

9.64.010 et seq., as they existed on the date of their approvals, except that pricing requirements for affordable housing units shall be published by the City on an annual basis instead of adoption by resolution of the City Council.

C.A designated landmark building or contributing structure to an adopted Historic District that is retained and preserved on-site as part of a multi-family project shall not be considered or included in assessing any of the requirements under this Chapter. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.040 Affordable Housing Obligation
A.Except as provided in Section 9.23.030(A), all multi-family project applicants shall comply with the requirements of this Chapter in the following manner:

1. Multi-family project applicants for multi-family ownership projects of four or more units in multi-family residential districts shall choose one of the two following options:
a. Providing affordable housing units on-site in accordance with Section

9.64.050;
b. Providing affordable housing units off-site in accordance with Section

9.64.060.

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2. In addition to the options established in subsections (1)(a) and (b), all other multifamily project applicants may also choose one of the following options:
a. Paying an affordable housing fee in accordance with Section 9.64.070; b. Acquiring land for affordable housing in accordance with Section

9.64.080.

B.A multi-family project application will not be determined complete until the applicant has submitted a written proposal which demonstrates the manner in which the requirements of this Chapter will be met. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.050 On-Site Option
The following requirements must be met to satisfy the on-site provisions of this Chapter:

A.For ownership projects of at least four units but not more than fifteen units in multi-family residential districts, the multi-family project applicant agrees to construct at least: (1) twenty percent of the total units as ownership units for moderate-income households, or as an alternative; (2) twenty percent of the total units as rental units for 80% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2); (3) ten percent of the total units as rental units for 50% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2); or (4) five percent of the total units as rental units for 30% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2).

B.For ownership projects of sixteen units or more in multi-family residential districts, the multi-family project applicant agrees to construct at least: (1) twenty-five percent of the total units as ownership units for moderate-income households, or as an alternative; (2) twentyfive percent of the total units as rental units for 80% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2); fifteen percent of the total units as rental units for 50% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2); or (4) ten percent of the total units as rental units for 30% income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2).

C.For all other multi-family applicants, the multi-family project applicant agrees to construct at least:

1. Five percent of the total units of the project for 30% income households;

2. Ten percent of the total units of the project for 50% income households;

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3. Twenty percent of the total units of the project for 80% income households; or

4. One hundred percent of the total units of a project for moderate income households.

D.Except as provided in Section 9.23.030(A), any fractional affordable housing unit that results from the formulas of this Section that is 0.75 or more shall be treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.75 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9.64.070(A)(4) or by constructing all the mandatory on-site affordable units with three or more bedrooms.

The City shall make available a list of income levels for 30% income households, 50% income households, 80% income households, and moderate income households, adjusted for household size, the corresponding maximum affordable rents adjusted by household size appropriate for the unit, and the minimum number of units required for 30% income households, 50% income households, or 80% income households required for typical sizes of multi-family projects, which list shall be updated periodically.

E.The multi-family project applicant may reduce either the size or interior amenities of the affordable housing units as long as there are not significant identifiable differences between affordable housing units and market rate units visible from the exterior of the dwelling units; provided, that all dwelling units conform to the requirements of the applicable Building and Housing Codes. However, except as provided in Section

9.23.030(A), each affordable housing unit provided shall have at least two bedrooms unless:

1. The proposed project comprises at least ninety-five percent one bedroom units, excluding the manager’s unit, in which case the affordable housing units may be one bedroom;

2. The proposed project comprises at least ninety-five percent zero bedroom units, excluding the manager’s unit, in which case the affordable housing units may be zero bedroom units;

3. The proposed project comprises zero and one bedroom units, excluding the manager’s unit, in which case the affordable housing units must be at least one bedroom units; or

4. The multi-family project applicant has elected not to pay the affordable housing fee pursuant to Section 9.64.070(A)(4), in which case the affordable housing units must be at least three bedroom units. The design of the affordable housing units shall

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be reasonably consistent with the market rate units in the project. An affordable housing unit shall have a minimum total floor area, depending upon the number of bedrooms provided, no less than the following:
0 bedrooms 500 square feet 1 occupant
1 bedroom 600 square feet 1 occupant
2 bedrooms 850 square feet 2 occupants
3 bedrooms 1,080 square feet 3 occupants
4 bedrooms 1,200 square feet 5 occupants
Affordable housing units in multi-family projects of one hundred units or more must be evenly disbursed throughout the multi-family project to prevent undue concentrations of affordable housing units.

F. All affordable housing units in a multi-family project or a phase of a multi-family project shall be constructed concurrently with the construction of market rate units in the multifamily project or phase of that project.

G.On-site affordable housing units must be rental units in rental projects. In ownership projects, these affordable housing units may be either rental units or ownership units.

H.Each multi-family project applicant, or his or her successor, shall submit an annual report to the City identifying which units are affordable units, the monthly rent (or total housing cost if an ownership unit), vacancy information for each affordable unit for the prior year, verification of income of the household occupying each affordable unit throughout the prior year, and such other information as may be required by City staff.

I. A multi-family project applicant in a residential district who meets the requirements of this Section shall be entitled to the density bonuses and incentives provided by Section

9.22.020 or any successor thereto and Section 9.22.030 or any successor thereto and the waiver/modification of development standards provided by Section 9.22.040 or any successor thereto. A multi-family project applicant in a commercial or industrial district shall be entitled to the development bonuses and incentives provided in the Land Use and Circulation Element and implementing ordinances.

J. All residential developments providing affordable housing on-site pursuant to the provisions of this Section shall receive priority building department plan check processing by which housing developments shall have plan check review in advance of other pending developments to the extent authorized by law.

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K.The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are being initially rented or sold, when the required annual reports are submitted to the City, and when the units are being re-sold or re-leased. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.060 Off-Site Option
The following requirements must be met to satisfy the off-site option of this Chapter:

A.The multi-family project applicant for ownership projects of four or more units in multifamily residential districts shall agree to construct twenty-five percent more affordable housing units than number of affordable housing units required by Section 9.64.050(A) and (B).

B.For all other multi-family project applicants, the applicant shall agree to construct the same number of affordable housing units as specified in Section 9.64.050(C).

C.The multi-family project applicant shall identify an alternate site suitable for residential housing which the project applicant either owns or has site control over (e.g., purchase agreement, option to purchase, lease) subject to City review to ensure that the proposed development is consistent with the City’s housing objectives and projects.

D.The off-site units shall be located within a one-quarter mile radius of the market rate units.

E.The off-site units shall satisfy the requirements of subsections (D) through (J) of Section

9.64.050.

F. The off-site units shall not count towards the satisfaction of any affordable housing obligation that development of the alternative site with market rate units would otherwise be subject to pursuant to this Chapter.

G.Exceptions to the location of the off-site units specified in this Section may be granted by the Planning Commission on a case-by-case basis upon a showing by the multi-family project applicant, based upon substantial evidence, that the location of off-site units in a location different from that specified in this Section better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City.

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H.The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are initially being rented or sold, when the required annual reports are submitted to the City, and when the units are being re-sold or re-leased. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.070 Affordable Housing Fee
A multi-family project applicant eligible to meet the affordable housing obligations established by this Chapter by paying an affordable housing fee shall pay the fee in accordance with the following requirements:

A.An affordable housing fee may be paid in accordance with the following formulas:

1. Affordable housing unit base fee x floor area of multi-family project;

2. Multi-family projects with fractional affordable housing units of less than 0.75 based on the formula established in Section 9.64.050:
(City’s affordable housing unit development cost) x (fractional percentage) B.For purposes of this Section, the affordable housing unit base fee shall be established by resolution of the City Council. Commencing on July 1, 2006 and on July 1st of each fiscal year thereafter, the affordable housing unit base fee shall be adjusted based on changes in construction costs and land costs. The amount of the affordable housing fee that the multi-family project applicant must pay shall be based on the affordable housing unit base fee resolution in effect at the time that the affordable housing fee is paid to the City.

C.For purposes of this Section, the City’s affordable housing unit development cost shall be established by resolution of the City Council. Commencing on July 1, 2007 and on July 1st of each fiscal year thereafter, the City’s affordable housing unit development cost shall be adjusted based on changes in construction costs and land costs. The affordable housing fee that the multi-family project applicant must pay shall be based on the affordable housing unit development cost resolution in effect at the time of payment to the City.

D.The amount of the affordable housing unit base fee may vary by product type (apartment or condominium) and shall reflect, among other factors, the relationship between new market rate multi-family development and the need for affordable housing.

E.The affordable housing fee shall be paid in full to the City prior to the City granting any approval for the occupancy of the project, but no earlier than the time of building permit issuance.

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F. The City shall deposit any payment made pursuant to this Section in a reserve account separate from the General Fund to be used only for development of affordable housing, administrative costs related to the production of this housing, and monitoring and evaluation of this affordable housing production program. Any monies collected and interest accrued pursuant to this Chapter shall be committed within five years after the payment of such fees or the approval of the multi-family project, whichever occurs later.

Funds that have not been appropriated within this five-year period shall be refunded on a pro rata share to those multi-family project applicants who have paid fees during the period. Expenditures and commitments of funds shall be reported to the City Council annually as part of the City budget process.

G.An affordable housing fee payment pursuant to this Section shall not be considered provision of affordable housing units for purposes of determining whether the multi-family project qualifies for a density bonus pursuant to Government Code Section 65915. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.080 Land Acquisition
A.A multi-family project applicant may meet the affordable housing obligations established by this Chapter by making an irrevocable offer:

1. Dedicating land to the City or a non-profit housing provider;

2. Selling of land to the City or a non-profit housing provider at below market value; or

3. Optioning of land on behalf of the City or a non-profit housing provider.

Each of these options must be for a value at least equivalent to the affordable housing obligation otherwise required pursuant to this Section.

B.The multi-family project applicant must identify the land at the time that the development application is filed with the City. Any land offered pursuant to this Section must be located within one-quarter mile radius of the market rate units unless the multi-family project applicant demonstrates that locating the land outside of this radius better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. The City may approve, conditionally approve or reject such offers subject to administrative guidelines to be prepared by the City Manager or designee. If the City rejects such offer, the multi-family project applicant shall be required to meet the affordable housing obligation by other means set forth in this Chapter. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

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9.64.090 Fee Waivers
The Condominium and Cooperative Tax described in Section 6.76.010 of the Santa Monica Municipal Code or any successor thereto and the Park and Recreation Facilities Tax established in Chapter 6.80 of Article 6 of the Santa Monica Municipal Code or any successor thereto, the Transportation Impact Fee required by Chapter 9.66, or any successor thereto, the Open Space Fee required by Chapter 9.67, or any successor thereto, and the Childcare Linkage Fee required by Chapter 9.65, or any successor thereto, shall be waived for required affordable housing units and for 30%, 50%, 80% and moderate-income dwelling units developed by the City or its designee using affordable housing fee. However, any multi-family project applicant who elects to pay an affordable housing fee shall not be eligible for any fee waiver under this Section. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.100 Pricing Requirements for Affordable Housing Units The City shall publish, on an annual basis, the 30%, 50%, 80%, and moderate income household levels, and affordable rents for affordable housing units, adjusted for household size appropriate for the unit. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.110 Eligibility Requirements
A.Only 30%, 50%, 80% and moderate-income households shall be eligible to occupy or own and occupy affordable housing units. The City shall develop a list of income-qualified households. Multi-family project applicants shall be required to select households from the City-developed list of income-qualified households, except applicants of ownership projects of four or more units in the City’s multi-family residential zones may themselves select income-qualified households which shall be subject to eligibility certification by the City.

B.The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable housing unit:

1. All employees and officials of the City of Santa Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy-making authority or influence over the implementation of this Chapter and the immediate relatives and employees of such City employees and officials;

2. The immediate relatives of the applicant or owner, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.120 Relation to Units Required by Rent Control Board 30%, 50%, 80% and moderate-income dwelling units developed as part of a market rate project, pursuant to replacement requirements of the Santa Monica Rent Control Board,

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shall count towards the satisfaction of this Chapter if they otherwise meet applicable requirements for this Chapter including, but not limited to, the income eligibility requirements, deed restriction requirements, and pricing requirements. New inclusionary units required by the Rent Control Board which meet the standards of this Chapter shall count towards the satisfaction of this Chapter. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.130 Deed Restrictions
Prior to issuance of a building permit for a project meeting the requirements of this Chapter by providing affordable units on-site or off-site, the multi-family project applicant shall submit deed restrictions or other legal instruments setting forth the obligation of the applicant under this Chapter for City review and approval. Such restrictions shall be effective for at least fifty-five years. In addition to the administrative guidelines specifically required by other provisions of this Chapter, the City Manager or designee shall be the designated authority to enter into recorded agreements with multi-family project applicants. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.140 Enforcement
No building permit or occupancy permit shall be issued, nor any development approval granted, for a project which is not exempt and does not meet the requirement of this Chapter. All affordable housing units shall be rented or owned in accordance with this Chapter. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.150 Annual Report
The City Manager or designee, shall submit a report to the City Council on an annual basis which shall contain information concerning the implementation of this Chapter. This report shall also detail the projects that have received planning approval during the previous year and the manner in which the provisions of this Chapter were satisfied. This report shall further assess whether the provisions of Proposition R have been met and whether changes to this Chapter or its implementation procedures are warranted. In the event the provisions of Proposition R have not been met, the City Council shall take such action as is necessary to ensure that the provisions will be met in the future. This action may include, but not be limited to, amending the provisions of this Chapter or its implementation. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

9.64.160 Principles and Guidelines
The City Manager or designee, shall develop guidelines to implement this chapter, which guidelines shall be subject to approval of the City Council. The guidelines shall include, but not be limited to, the methodology for the establishment and periodic adjustment of the base fee and the affordable housing unit development cost; for-sale affordable unit requirements, tenant and purchaser eligibility procedures; and additional requirements for exercise of the off-site option and land acquisition option. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

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9.64.170 Adjustments or Waivers
A.A multi-family project applicant may request that the requirements of this Chapter be adjusted or waived based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.

B.To receive an adjustment or waiver, the applicant must submit an application to the City Manager or designee, at the time the applicant files a multi-family project application. The applicant shall bear the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation.

C.In making a determination on an application to adjust or waive the requirements of this Chapter, the City Manager or designee, or City Council on appeal, may assume each of the following when applicable:

1. The applicant is subject to the affordable housing requirement of this Chapter;

2. The applicant will benefit from the inclusionary incentives set forth in this Chapter and the City’s Municipal Code;

3. The applicant will be obligated to provide the most economical affordable housing units feasible in terms of construction, design, location and tenure.

D.The City Manager or designee shall render a written decision within ninety days after a complete application is filed. The City Manager’s or designee’s decision may be appealed to the City Council if such appeal is filed within fourteen consecutive calendar days from the date that the decision is made in the manner provided in Chapter 9.37 Common Procedures of this Code or any successor thereto.

E. If the City Manager or designee, or City Council on appeal, upon legal advice provided by or at the behest of the City Attorney, determines that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If an adjustment or waiver is granted, any change in the use within the project shall invalidate the adjustment or waiver. If the City Manager or designee, or City Council on appeal, determines that no violation of the United States or California Constitutions would occur through application of this Chapter, the requirements of this Chapter remain fully applicable. (Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)

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Packet Pg. 639 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attachment 1-B
ATTACHMENT 1-B
AHPP Options Comparison Table
Project Type: Rental Ownership Ownership Ownership Ownership Project Size: 2+ Apartments 2-3 Units 4-15 Units 16+ Units 2+ Units Zoning: Any Multifamily Multifamily Multifamily Not Multifamily Developer Chooses
One Option Below:

1. Construct Units
Onsite:

Moderate Income
Units1 100% 100% 20% 25% 100%
80% Income
Household Rental 20% 20% 20% 25% 20%
50% Income
Household Rental 10% 10% 10% 15% 10%
30% Income
Household Rental 5% 5% 5% 10% 5%

2. Construct Units
Offsite:

Same as
Onsite Options
Same as
Onsite Options
Onsite
Options +25%
Onsite
Options +25%
Same as Onsite
Options

3. Pay Affordable
Housing Fee: $31.25/Sq.Ft. $36.51/Sq.Ft. Not Applicable Not Applicable $36.51/Sq.Ft.

4. Acquire and Donate
Land
See SMMC

9.64.080
See SMMC

9.64.080 Not Applicable Not Applicable See SMMC 9.64.080 Note 1: Moderate-Income residences in this row are the same as the Project Type in terms of owner versus renter.

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Attachment 2-A: Page 1
ATTACHMENT 2-A
Fee Adjustment Methodology
Table 1 – Affordable Housing Unit Base Fee

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Attachment 2-A: Page 2
ATTACHMENT 2-A
Fee Adjustment Methodology
Table 2 – Affordable Housing Unit Development Cost

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Packet Pg. 642 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attachment 2-B
ATTACHMENT 2-B
Current Base Fees for Apartment and Condominium Projects

FEE FOR APARTMENT PROJECTS
Current Fee: $31.25 (Effective November 1, 2015)

FEE FOR CONDOMINIUM PROJECTS
Current Fee: $36.25 (Effective November 1, 2015)

TIMING OF FEE PAYMENT
Base Fee is due prior to completion of project, but not before building permit issuance, and the amount of fee due is based on fee amount in effect at time of payment.

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Packet Pg. 643 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attachment 3-A
ATTACHMENT 3-A
Affordable Housing Table for 4+ Ownership Residences
in Multi-Family Zones
Number of
residences
in project before
density bonus
Number of
affordable
residences to be
provided**
FRACTIONS***
Fraction eligible
for fee payment
Fractional cost of
developing a residence
ON-SITE OPTION*
[# RESIDENCES X 20%]
2 On-site or off-site residences are not mandatory.
3 May pay affordable housing fee.
4 1.00 0.00 $0.00
5 1.00 0.00 $0.00
6 1.00 0.20 $65,585.40
7 1.00 0.40 $131,170.80
8 1.00 0.60 $196,756.20
9 2.00 0.00 $0.00
10 2.00 0.00 $0.00
11 2.00 0.20 $65,585.40
12 2.00 0.40 $131,170.80
13 2.00 0.60 $196,756.20
14 3.00 0.00 $0.00
15 3.00 0.00 $0.00
16+ [# residences x
25%] [fraction < 0.75] [fraction x unit development cost] OFF-SITE OPTION*
[# RESIDENCES X 25%]
2 On-site or off-site residences required are not mandatory 3 May pay affordable housing fee.
4 1.00 0.00 $0.00
5 1.00 0.25 $81,981.75
6 1.00 0.50 $163,963.50
7 2.00 0.00 $0.00
8 2.00 0.00 $0.00
9 2.00 0.25 $81,981.75
10 2.00 0.50 $163,963.50
11 3.00 0.00 $0.00
12 3.00 0.00 $0.00
13 3.00 0.25 $81,981.75
14 3.00 0.50 $163,963.50
15 4.00 0.00 $0.00
etc. etc. [fraction < 0.75] [fraction x unit development cost] *Ownership residences must be available for very low, low, or moderate income households *Rental residences must be available for very low or low income households **For fractions of 0.75 or more - round up to next whole number ***For fractions less than 0.75 - there are 2 options:
1) Pay the fractional cost of developing the unit based on affordable housing unit development cost ($327,927 per residence)
2) Construct all mandatory affordable residences with 3+ bedrooms

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Attachment 3-B: Page 1
ATTACHMENT 3-B
Development Incentives
Density Bonus Table for Housing Developments in Residential Zones * See Santa Monica Municipal Code Section 9.22 for more information.

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Packet Pg. 645 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attachment 3-C
ATTACHMENT 3-C
Extremely-Low, Very-Low, Low- and Moderate Income Levels 2015 Income Limits

MAXIMUM ALLOWABLE INCOME (ANNUAL)
Household
Size
Extremely
Low (30%)
Very Low
(50%)
Low
(80%)
Moderate
(120%)
1 $17,950 $29,900 $47,850 $54,450
2 $20,500 $34,200 $54,650 $62,200
3 $23,050 $38,450 $61,500 $70,000
4 $25,600 $42,700 $68,300 $77,750
5 $28,410 $46,150 $73,800 $83,950
6 $32,570 $49,550 $79,250 $90,200
7 $36,730 $52,950 $84,700 $96,400
8 $40,890 $56,400 $90,200 $102,650

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Packet Pg. 646 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attachment 3-D
ATTACHMENT 3-D
Maximum Allowable Rents
2015 Maximum Allowable Rent Limits

MAXIMUM ALLOWABLE RENTS
(Based on 30% Affordability Standard)
Residence
Type
Extremely
Low (30%)
Very
Low
(50%)
Low
(80%)
Moderate
(120%)
0-Bdrm $340 $567 $680 $1,247
1-Bdrm $389 $648 $778 $1,426
2-Bdrm $437 $729 $875 $1,604
3-Bdrm $486 $810 $972 $1,782
4-Bdrm $525 $875 $1,050 $1,925
Rents: Median Income for 4-person household x Income Level x Bedroom Adjustment x Affordability Standard (30%) / 12. (Ref: CA H&SC 50053, H&SC 50052.5(h), SMMC 9.64.020(D)) * Rents limits reflect a hold-harmless approach and are therefore held at their highpoint reached in 2011.

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Attachment 3-E
ATTACHMENT 3-E
Sample Deed Restriction

AGREEMENT IMPOSING RESTRICTIONS

ON RENTS & OCCUPANCY OF REAL PROPERTY

THIS AGREEMENT IMPOSING RESTRICTIONS ON RENTS & OCCUPANCY OF REAL PROPERTY, entered into this [____] day of [month, 20--], by and between the CITY OF SANTA MONICA, a Municipal Corporation (hereinafter the "City"), and [name of applicant], a [California Limited Liability Company] (hereinafter the "Developer"), is made with reference to the following:

R E C I T A L S:

A. Developer is the owner of certain real property located at [address] in the City of Santa Monica, in the County of Los Angeles, California (hereinafter referred to as the "Subject Property"). The Subject Property is more particularly described in Exhibit "A" which is attached hereto and incorporated herein by this reference.

B. Developer wishes to construct a [project description include # stories, building square footage, form of ownership apt/condo] a (hereinafter referred to as the "Project"). The City has approved [type of application #AA, DR, VAR etc.] for the Project. The City approved the [type of application] subject to the conditions of this Agreement, which are imposed for the benefit of the City, the public and surrounding landowners and without which the [type of application] would not be approved.

C. The Project is subject to the requirements of the City's Affordable Housing Production Program, Santa Monica Municipal Code Chapter 9.64, and the Administrative Guidelines for Chapter 9.64, as they may be amended from time to time (all collectively, referenced herein as "Affordability Restrictions"). The Developer has agreed to satisfy the Affordability Restrictions by fully complying with this Agreement.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

1. RECITALS.

The Recitals stated above, are hereby incorporated by reference into this Agreement and adopted by the parties to this Agreement as true and correct.

2. DEFINITIONS.

2.1 “Affordable Units” means dwelling units within the Project that are

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Attachment 3-E
available to and occupied by Fifty Percent Income Households and Eighty Percent Income Households at Affordable Rent.

2.2 “Affordable Rent” means:
(a) For thirty percent income households, the product of thirty percent times thirty percent of the area median income adjusted for household size appropriate for the unit.
(b) For fifty percent income households, the product of thirty percent times fifty percent of the area median income adjusted for household size appropriate for the unit. (c) For eighty percent income households whose gross incomes exceed the maximum incomes for fifty percent income households, the product of thirty percent times sixty percent of the area median income adjusted for household size appropriate for the unit.

2.3 “Area Median Income or AMI” means the median family income published from time to time by the United States Department of Housing and Urban Development ("HUD") for the Los Angeles-Long Beach Metropolitan Statistical Area.

2.4 “Eighty Percent Income Household” means a household whose gross income does not exceed the eighty percent income limits applicable to the Los AngelesLong Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD. Eighty Percent Income Households include Fifty Percent Income Households.

2.5 “Fifty Percent Income Household” means a household whose gross income does not exceed the fifty percent income limits applicable to the Los AngelesLong Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD. Fifty percent income households include Thirty Percent Income Households.

2.6 “Life of the Project” shall mean a period commencing on the date of Certificate of Occupancy is issued for the Project and ending on the date which is fiftyfive (55) years from Certificate of Occupancy for the Project; provided, however, that if the Project is damaged or destroyed and cannot be rebuilt in accordance with the development standards permitted in this Agreement, then the Life of the Project shall be deemed to have ended as of the date of such damage or destruction.

2.7 “Rent” has the same meaning as provided in title 25, section 6918 of the California Code of Regulations, as amended from time to time in accordance with law.

2.8 “Thirty Percent Income Household” means a household whose gross income does not exceed the thirty percent income limits applicable to the Los AngelesLong Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD.

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3. CONTRACT WITH CITY.

Developer hereby acknowledges that in issuing the [type of application] for the Project, the City is reducing or modifying development standards otherwise applicable to the Project such as increasing unit density, reducing parking and other property development standards, and/or waiving fees. In exchange for such forms of assistance from the City, which are of financial benefit to the Developer, Developer has entered into this contract with this City and agreed to the other conditions of the [type of permit see above], including the requirement included in this Agreement to provide and maintain [#] Affordable Units on the Subject Property for occupancy by qualified households who meet the requirements specified in this Agreement. The parties agree and acknowledge that this is a contract providing forms of assistance to the Developer within the meaning of Civil Code Section 1954.52 (b) and Government Code Section 65915 et seq.

4. DEVELOPER TO PROVIDE AND MAINTAIN [Total # deed restricted units] Example: TEN (10) AFFORDABLE UNITS.
(a) Upon issuance of a Certificate of Occupancy for the Project, Developer shall provide and maintain [#] Affordable Units on the Subject Property, as follows:
[# and type of unit] Example: Ten (10) one-bedroom Affordable Units shall be available to and occupied by [insert affordability level] Example: Fifty Percent Income Households at Affordable Rent.

Developer shall submit plans to the City's Building Official, identifying the unit numbers and exact locations of all of the Affordable Units. The submittal of these plans with the required identification of Affordable Units shall be a condition precedent to Developer's obtaining a building permit for the Project. (b) The Affordable Units shall be rental units and the maximum rent shall be calculated pursuant to the formula set forth in Section 5 of this Agreement. (c) The City shall issue a Certificate of Occupancy for the Project ("Certificate") expressly contingent upon compliance with the terms of this Agreement. A valid Certificate shall be required at all times to continue to use or occupy the Project. A breach of this Agreement shall be grounds for revoking the Certificate. The City shall provide reasonable notice and an opportunity to cure any breach of this Agreement prior to revoking the Certificate.

5. TERMS FOR THE RENTAL OF THE AFFORDABLE UNITS.

The maximum Affordable Rent for the [#] Affordable Units on the Subject Property shall be as follows:

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(a) If the household is receiving a rental housing subsidy, the maximum allowable rent shall be the lesser of the Affordable Rent calculated under subparagraph (b) of this Section 5 or the payment standard authorized by the Santa Monica Housing Authority.
(b) If the household is not receiving federal rental assistance as defined above, the maximum allowable rent for the unit shall be calculated as follows:

For Fifty Percent Income Households
Area Median Income x 50% x Bedroom Adjustment Factor x 30% = Maximum Affordable Rent (Annual).

For Eighty Percent Income Households
Area Median Income x 60% x Bedroom Adjustment Factor x 30% = Maximum Affordable Rent (Annual).

The Maximum Allowable Rent figures must be divided by twelve to determine the maximum allowable monthly rent.

The formula for the calculation of rents as of the date of this Agreement is as follows:
(c) Area Median Income - As periodically published by HUD, currently $64,800 (for a family of four).
(d) Bedroom Adjustment Factors
0 Bedroom .7 3 Bedrooms 1.00
1 Bedroom .8 4 Bedrooms 1.08
2 Bedroom .90
(e) Affordable Rents 2015, to be updated annually3
Studio 1-BR 2-BR 3BR
Fifty Percent Income Household $567 $648 $729 $810
Eighty Percent Income Household $680 $778 $875 $972
(f) In the event the standards for establishing the monthly rental rate of the Affordable Units set forth in Section 5 cease to exist, the parties shall substitute a similar

3 These numbers include the utility allowance adopted by the City's Housing Authority for 2015, and is adjusted annually thereafter.

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standard established by HUD or its successor governmental agency. If the parties are unable to agree upon a substitute standard, the parties shall refer the choice of the substitute standard to binding arbitration in accordance with the rules of the American Arbitration Association.
(g) Minimum Occupancy Requirements
0 bedroom 1 occupant
1 bedroom 1 occupants
2 bedroom 2 occupants
3 bedrooms 3 occupants
4 bedrooms 5 occupants

6. HOUSEHOLD ADJUSTMENT FACTORS.

The Household Adjustment Factors are as follows:
1 person 0.7
2 persons 0.8
3 persons 0.9
4 persons 1.0
5 persons 1.08
6 persons 1.16
7 persons 1.24
8 persons 1.32
During the duration of this agreement, developer agrees to make reasonable efforts to rent vacant Affordable Units within sixty days.

7. TENANT SELECTION.

Developer shall select households from the City-developed list of income qualified households. Only households selected from the City-developed list of income qualified households shall occupy any of the Affordable Units.

8. CITY APPROVAL OF DOCUMENTS.

The Conditions, Covenants and Restrictions (CC&R's), if any, for the Subject Property shall include reference to all applicable obligations and duties of the parties created by this Agreement. The City Attorney of the City of Santa Monica shall approve as to form the CC&R's prior to recordation of the final subdivision or parcel map for the Subject Property.

Developer shall rent the Affordable Units pursuant to the terms and conditions of

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a lease or rental agreement approved by the City. At least ninety days prior to the expected completion date, Developer shall submit to the City Housing Division for review a copy of the lease agreement to be used. In addition to any other provision required by the City to ensure compliance with Chapter 9.64 and the Administrative Guidelines for Chapter 9.64, as they may be amended from time to time, said lease or rental agreement shall contain a provision prohibiting subleasing of the Affordable Units or revising the composition of the household without Developer's permission. Developer shall not approve any change that renders the Affordable Units in noncompliance with the household income requirements of this Agreement. The addition to the household of minor children, a spouse, or registered domestic partner shall not be deemed a change in the household requiring Developer's prior approval pursuant to this Section.

Developer shall lease the Affordable Units concurrently with all other units in the Project so as to avoid prolonged vacancy of the Affordable Units during lease-up of the Project.

9. 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.

10. APPOINTMENT OF OTHER AGENCIES.

The City may designate, appoint or contract with any other public agency to perform City's obligations under this Agreement.

11. 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 of competent jurisdiction, the remaining portions of this Agreement shall, nevertheless, be and remain in full force and effect.

12. NOTICES.

All notices required under this Agreement shall be sent by certified mail, return receipt requested, to the following addresses:

TO THE CITY OF SANTA MONICA: City of Santa Monica
Planning and Community Development
Department
1685 Main Street, Room 212
Santa Monica, California 90401

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Packet Pg. 653 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
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Attention: Director, Planning and
Community Development Department
TO THE DEVELOPER: [enter developer name/address]
Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above.

13. HOLD HARMLESS.

As between the City and the Developer, the Developer is deemed to assume responsibility and liability for, and the Developer 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 act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Developer or any of Developer's officers, agents, servants, employees or subcontractors in his or their performance hereunder.

14. 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 City, the public and surrounding landowners, until terminated in accordance with the provisions hereof. Developer shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the Subject Property.

15. SALE OR CONVERSION OF PROPERTY.

In the event of sale or conversion of the subject property, any Conditions, Covenants and Restrictions (CC&R's) for the property, shall incorporate by reference all obligations and duties of the parties created by this Agreement. Reporting obligations set forth in Section 24 below, shall be set forth in the CC&R's if any, for the project.

16. PROHIBITION AGAINST DISCRIMINATION.

Developer agrees not to discriminate against any actual or potential occupant of the subject property on the basis of sex, race, color, religion, ancestry, national origin, sexual orientation, age, pregnancy, marital status, handicap, HIV, family composition, source of income, the use of a rental subsidy voucher, or the potential or actual occupancy of minor children. Developer further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons.

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Packet Pg. 654 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 3-E

17. STANDING TO ENFORCE AGREEMENT.

Violation of this Agreement may be enjoined, abated or remedied by appropriate legal proceeding in a court of competent jurisdiction by any aggrieved party, including but not limited to, the parties hereto, or their respective successors, heirs and assigns.

The right to specific performance of this Agreement shall be an appropriate remedy for a breach of this Agreement because of the uniqueness of the Property and the inherent difficulty in calculating adequate damages.

18. INTEGRATED AGREEMENT.

This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto.

19. 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.

20. CITY AUTHORITY TO ENFORCE LAW
The obligation of the Owner pursuant to this Agreement are in addition to, and in no way limit, the authority of the City to enforce all laws and regulation applicable to the Subject Property. Nothing in this Agreement shall limit the authority of the City to take appropriate action to enforce the terms of any permit issued by the City relating to the Subject Property.

21. DURATION OF AGREEMENT.

This Agreement shall terminate and become null and void fifty-five (55) years from issuance of the Certificate of Occupancy.

22. AMENDMENT OF AGREEMENT.

This Agreement, and any Section, subsection, or covenant contained herein, may be terminated or amended only upon the written consent of all parties hereto.

23. RECORDING OF AGREEMENT.

The parties hereto shall cause this Agreement to be recorded in the Official

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Packet Pg. 655 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 3-E
Records of the County of Los Angeles.

24. YEARLY REPORT.

Developer shall issue a written report to City on an annual basis commencing one year from the date of issuance of the Certificate of Occupancy and continuing thereafter throughout the term of the Agreement. The report shall state the rent level then being charged for the Affordable Units, whether the occupants are assisted by a rental housing subsidy program, the number of occupants in the household, whether there have been any changes in the composition of the household, whether any vacancies have occurred during the reporting year, any changes in income of the residents of the affordable units, and such other information as may be required by City staff.

25. COMPLIANCE MONITORING.

Pursuant to City of Santa Monica Resolution 10635 (CCS) and Santa Monica Municipal Code Sections 9.64.050 and 9.64.060, Developer shall pay the reasonable regulatory costs of ensuring compliance with this Agreement through a Compliance Monitoring Fee, adopted and approved on November 22, 2011 and administratively revised on an annual basis.
\\\

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Packet Pg. 656 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 3-E

26. AUTHORITY TO EXECUTE.

The undersigned declare they have full authority to execute this Agreement on behalf of Developer, and bind Developer to all the terms and conditions contained herein. [Note: document text needs to be part of signature page; set hard page breaks when necessary]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

ATTEST: “CITY”

CITY OF SANTA MONICA
a Municipal Corporation
___________________________
Denise Anderson-Warren
City Clerk By: ____________________________
Rick Cole
APPROVED AS TO FORM: City Manager

SANTA MONICA CITY ATTORNEY
__________________________

MARSHA JONES MOUTRIE
City Attorney “DEVELOPER”
[Name], LLC
a California limited liability company
By_______________________
[name, and title, i.e. Manager, trustee,
owner etc]
Prepared by: Planner Name
Reference Number: XXDED-XXX

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Packet Pg. 657 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 3-E

EXHIBIT A

LOT -----------, BLOCK ---------, TRACT ------------ IN THE CITY OF SANTA MONICA,

COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN

BOOK XX PAGE XXX, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
(Insert Complete Legal Description)
APN ___________
Commonly Known As: [Street Address]

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Packet Pg. 658 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 3-E
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

ACKNOWLEDGMENT
STATE OF __________________ }ss:

COUNTY OF ________________
On before me, , a Notary Public,
(insert name and title of the officer)
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 the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of _______________________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

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Packet Pg. 659 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 4-A
ATTACHMENT 4-A (Updated for 2016 AHPP Guidelines Update) Sample Application for Affordable Housing Eligibility List

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Packet Pg. 660 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 4-A

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Packet Pg. 661 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Administrative Guidelines
Affordable Housing Production Program
Attachment 4-B
ATTACHMENT 4-B (Updated for 2016 AHPP Guidelines Update) Property Address
Owner/Manager Name
Phone #/Email
Residence #
Name and Phone Number
Referral #1:

Was #1
Offered the
Residence?
Yes No
Comments:

Did #1
Accept the
Residence?
Yes No
Comments:

Name and Phone Number
Referral #2:

Was #2
Offered the
Residence?
Yes No
Comments:

Did #2
Accept the
Residence?
Yes No
Comments:

Name and Phone Number
Referral #3:

Was #3
Offered the
Residence?
Yes No
Comments:

Did #3
Accept the
Residence?
Yes No
Comments:

Housing Division
Waiting List Referral Form

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Packet Pg. 662 Attachment: AHPP Administrative Guidelines (5378 : Affordable Housing Production Program Fees) Memorandum
To: City Council
From: Andy Agle, Director, Community Services Department RE: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee
This memo summarizes the results of applying the annual adjustment calculation methodology adopted by the City to establish the Affordable Housing Unit Base Fee pursuant to Santa Monica Municipal Code Section 9.64.070.B (“the affordable housing unit base fee shall be adjusted [annually] based on changes in constructions costs and land costs.”). This methodology was approved by the Santa Monica City Council at a public hearing on June 13, 2006, based on the recommendation of HR&A in a letter to City staff dated April 24, 2006. A copy of the April 24, 2006 letter is included for reference as Attachment A hereto. The City Council approved the last annual increase for FY 2021-22 using this methodology when it adopted Resolution No. 111356(CCS) on August 24, 2021.

For the construction cost inflation component of the calculation approach, the Engineering News Record’s (ENR) Construction Cost Index specific to the Los Angeles metro area is utilized, because it is updated monthly and is readily available via the Internet by subscription. The applicable index change was 10.1 percent measured between March 2022 (the current budget adoption year) and March 2021, as compared with a 0.6 percent change between March 2021 and March2020.

Although there is no comparable index for inflation in land cost, the City-adopted method uses the weighted average annual change in median condominium sale prices, by ZIP Code, as a proxy measure for land cost changes measured for the immediately preceding calendar year. Based on our analysis of 2021 sales data

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Packet Pg. 663 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee [Revision 2] (5378 :
compiled by Dataquick from Los Angeles County Assessorrecords, the weighted average change for the City during 2021 was 10.6 percent, as compared with a negative 10.5 percent decrease during 2020.

The relative balance between land cost inflation (based on changes in median condo prices) and constructioncostinflation(basedonaconstructioncostindex) continues to be based on development cost data for the two most recently completed and/or under-construction multi-family affordable developments assisted by the City. For the current analysis, the two City-assisted projects are 1819 Pico Boulevard and 1834-1848 14th Street. The City-adopted calculation approach uses a simple average of the ratio between land purchase price and the sum of land cost and hard construction cost to derive the land value percentage (29.2%). The inverse of the land value percentage is the construction cost share (70.8%).

Table 1, on the following page, presents the annual adjustment calculation establishing the Affordable Housing Unit Base Fee for FY 2022-23. It shows that a weighted average inflation index using this City Council-approved approach results in a 10.2percent annual increase(as compared with a negative 2.7percent adjustment for FY 2021-22):
▪ $39.12 per square foot for apartment developments (an increase of $3.62 per square foot from the FY 2021-22 Fee).
▪ $45.70 per square foot for condominium developments (an increase of $4.23 per square foot from the FY 2021-22 Fee); and
The results of the calculations shown in Table 1 will be the basis for a Resolution changing the Affordable Housing Base Fee for FY 2022-23.

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Packet Pg. 664 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee [Revision 2] (5378 :

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Packet Pg. 665 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee [Revision 2] (5378 :

ATTACHMENT A
April 24, 2006 HR&A Letter re: Annual Adjustment
Methodology

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Packet Pg. 670 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Base Fee [Revision 2] (5378 :

Memorandum
To: City Council
From: Andy Agle, Director, Community Services Department Re: Proposed FY 2022-23 Annual Adjustment for the Affordable Housing Unit Development Cost
This memo summarizes the results of applying an annual adjustment to the Affordable Housing Unit Development Cost pursuant to Santa Monica Municipal Code (SMMC) Section 9.64.070.C (“. . . Commencing on July 1, 2007 and on July 1st of each fiscal year thereafter, the City’s affordable housing unit development cost shall be adjusted based on changes in construction costs and land costs . . .”). The inflation methodology is the same as that used to produce annual adjustments for the Affordable Housing Unit Base Fee, pursuant to SMMC Section

9.64.070.B. That methodology was approved by the Santa Monica City Council at a public hearing on June 13, 2006, based on the recommendation of HR&A in a letter to City staff dated April 24, 2006. A copy of the April 24, 2006 letter is included for reference as Attachment A hereto.

SMMC Section 9.64.070.A.2 provides that developers of market rate multi-family housing are eligible to pay a fee equal to a fraction of an affordable unit when the number of units otherwise required by Section 9.64.050.D is less than 0.75. In such cases, the amount of the fee is equal to the City’s Affordable Housing Unit Development Cost multiplied by the fractional unit. The City’s AffordableHousing DevelopmentUnitCostisdefinedas theaveragecosttotheCity todevelopa unit of housing affordable to low- and moderate-income households. The Affordable Housing Unit Development Cost was originally estimated to be $239,949, as contained in the nexus study prepared by HR&A in 20051 to support the imposition of the Affordable Housing Unit Base Fee. The amount of the 1 Hamilton, Rabinovitz & Alschuler, Inc., The Nexus Between New Market Rate Multi-Family Developments in the City of Santa Monica and the Need for Affordable Housing, 2005 Update, July 1, 2005, prepared for the City of Santa Monica.

5.M.e
Packet Pg. 671 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] Affordable Housing Unit Development Cost is equal to the City’s total cost to developaunitofaffordablehousing(i.e., land,construction,professionalfeesand other “soft” costs and financing costs) minus the amount of construction loan that can be supported by the net operating income derived from operating a typical City-assisted affordable housing development. A 2005-2007 cumulative inflation increase forthe Affordable Housing Unit Development Cost to $265,632 using the approved methodology was adopted by the City Council when it approved Resolution No. 10230 (CCS) on July 24, 2007. The City Council approved the last annual increase for FY 2021-22 using this methodology when it adopted Resolution No. 111357 (CCS) on August 24, 2021.

10.1 percent measured between March 2022 (the current budget adoption year) and March 2021, as compared with a 0.6 percent change between March 2021 and March 2020.

Although there is no comparable index for inflation in land cost, the City-adopted calculation method uses the weighted average annual change in median condominiumsaleprices,byZIPCode, as a proxy measure forland cost changes measuredfortheimmediatelyprecedingcalendar year. Basedonouranalysisof 2021 salesdatacompiledbyDQNews fromLosAngelesCountyAssessor records, the weighted average change for the City during 2021 was 10.6 percent, as compared with a 10.5 percent decrease during 2020.

The relative balance between land cost inflation (based on changes in median condo prices) and construction cost inflation (based on a construction cost index)continuestobebasedondevelopment cost data for the two most recently completed and/or under-construction multi-family affordable developments assisted by the City. For the current analysis, the two City-assisted projects are 1819 Pico Boulevard and 1834-1848 14th Street. The City-adopted calculation approach uses a simple average of the ratio between land purchase price and the sum of land cost and hard construction cost to derive the land value percentage (29.2%). The inverse of the land value percentage is the construction cost share (70.8%).

Table 1, on the following page, presents the annual adjustment calculation establishing the Affordable Housing Unit Development Cost for FY 2022-23. It shows that a weighted average inflation index using the City Council-approved approach results in a 10.2 percent annual increase (comparedwitha2.7percent decrease for FY 2021-22),to $410,451, which is a $37,991 increase compared with

5.M.e
Packet Pg. 672 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] the FY 2021-22 Housing Unit Cost.

The results of the calculations shown in Table 1 will be the basis for a Resolution changing the Affordable Housing Unit Development Cost for FY 2022-23.

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Packet Pg. 673 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2]

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Packet Pg. 674 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2]

ATTACHMENT A
April 24, 2006 HR&A Letter re: Annual Adjustment
Methodology

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Packet Pg. 675 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] HR&A Advisors, Inc. FY 2017
-18 Affordable Housing Unit Development Cost| 5

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Packet Pg. 676 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] HR&A Advisors, Inc. FY 2017
-18 Affordable Housing Unit Development Cost| 6

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Packet Pg. 677 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] HR&A Advisors, Inc. FY 2017
-18 Affordable Housing Unit Development Cost| 7

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Packet Pg. 678 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] HR&A Advisors, Inc. FY 2017
-18 Affordable Housing Unit Development Cost| 8

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Packet Pg. 679 Attachment: Staff Analysis: Proposed FY 2022-23 Annual Automatic Adjustment for the Affordable Housing Unit Development Cost [Revision 2] City Council
Report
City Council Meeting: August 24, 2021
Agenda Item: 3.E
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Housing and Human Services
Subject: Adoption of Resolutions for Affordable Housing Production Program Fees Recommended Action
Staff recommends that the City Council:

1. Adopt the attached Resolution decreasing the Affordable Housing Unit Base Fee by 2.7 percent for new market-rate apartments and condominiums (Attachment A); and

2. Adopt the attached Resolution decreasing the Affordable Housing Unit Development Cost by 2.7 percent (Attachment B).

The calculation methodology approved by City Council uses a combination of the annual change in median condominium sale prices in Santa Monica as a proxy measure for land cost changes and the change in construction costs based upon the Engineering News Record’s (ENR) Construction Cost Index specific to the Los Angeles area (Attachment C). The land cost and construction cost factors are weighted based on development cost data for the two most recently completed or under construction multifamily affordable developments financed by the City.

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Packet Pg. 680 Attachment: August 24, 2021 Staff Report (5378 : Affordable Housing Production Program Fees) 2 of 5
Based on 2020 sales data compiled by DQNews using Los Angeles County Assessor and Recorder data, the weighted change for the City in median condominium sale prices from 2019 to end of year 2020 was negative 10.5 percent. Condominium sale prices in Santa Monica have since increased from 2020 levels, however these increases will not be captured until next year’s calculation and adjustment.

The ENR Construction Cost Index increased 0.6 percent between March 2020 and March 2021. Recent increases in construction costs began in May of 2021 and will be captured in next year’s calculation. A land cost inflation weight of 29.2 percent and construction cost inflation weight of 70.8 percent results in a 2.7 percent decrease. The table below on page 3 summarizes the annual adjustment formula calculation.

The new Affordable Housing Unit Base Fee and Affordable Housing Unit Development Cost would be 2.7 percent lower than the existing amounts. The new amounts would become effective November 1, 2021, if approved. The table below summarizes the adjustments in previous years.

Historical Annual Adjustment Rate
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -1.2% 2.1% 0.8% 0.8% 7.2% 4.9% 3.6% 5.0% 5.0% 2.2% 0.0% -2.7% Discussion
The Affordable Housing Production Program (AHPP), Chapter 9.64 of the City’s Municipal Code, implements Proposition R, which establishes that not less than thirty percent of all newly constructed multi-family housing in the City annually must be affordable to low- and moderate-income households for at least 55 years. The AHPP requires developers of new market-rate multi-family housing to contribute to affordable housing goals by designating a portion of a development’s total residences as affordable housing, constructing affordable housing off-site, designating land for affordable housing development, or paying an affordable housing fee, in accordance with the following formulas:

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Packet Pg. 681 Attachment: August 24, 2021 Staff Report (5378 : Affordable Housing Production Program Fees) 3 of 5

1. Affordable housing unit base fee x floor area of multi-family project;

Annual Fee Adjustments
Section 9.64.070 of the AHPP provides that the Affordable Housing Unit Base Fee and the Affordable Housing Unit Development Cost shall be adjusted annually by Council resolution based on changes in construction and land costs. The fee adjustment methodology is detailed in Section 2 of the AHPP Administrative Guidelines (Attachment D) and reflects the methodology approved by Council in 2006. The fees are adjusted based on two factors: 1) changes in construction costs as measured by the Engineering News Records Construction Cost Index, and 2) changes in land costs measured by using the proxy of change in median condominium sales prices.

The table below summarizes the changes in these two factors since 2020, and the calculation results in a 2.7 percent decrease in 2021.

Inflation Factor Derivation
Inflation
Volume Weight
Weighted
Average
Land Value Inflation -10.5% 29.2% -3.1%
Construction Cost Inflation 0.6% 79.8% 0.4%
-2.7%
Unit Base Fee and Unit Development Cost, which would decrease by 2.7 percent based on this year’s changes in land and construction costs.

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Packet Pg. 682 Attachment: August 24, 2021 Staff Report (5378 : Affordable Housing Production Program Fees) 4 of 5
The table below summarizes this year’s proposed adjustment to the Affordable Housing.

Fee Description 2020
Amount
2021
Amount
%
Change
Affordable Housing Unit Base Fee –
Apartments (per square foot) $36.49 $35.50 -2.7%
Affordable Housing Unit Base Fee –
Condominiums (per square foot) $42.62 $41.47 -2.7%
Affordable Housing Unit Development
Cost $382,795 $372,460 -2.7%
The proposed Resolutions, Attachments A and B, would adjust the fees accordingly, effective November 1, 2021. Details of the calculations prepared by staff for the Affordable Housing Unit Base Fee and the Affordable Housing Unit Development Cost are provided in Attachment E and Attachment F. The revenue implications resulting from the proposed fees adjustment are anticipated to be minimal, as fee revenues depend on development activity in any given year.

On August 2, 2021, the City published notice in the Santa Monica Daily Press of this hearing and the availability of the staff analyses. The City republished this notice on August 9, 2021. Copies of these analyses have been available in the City Clerk's Office for public review since August 2, 2021.

Past Council Actions
August 13, 2019
(Attachment G)
The previous annual adjustment increasing the fees by five percent.

June 13, 2006
(Attachment H)
City Council approved the methodology for ascertaining
changes in these costs and thereby calculating the adjustment.

July 21, 1998
(Attachment I)
The AHPP was adopted by the City Council and has been
periodically amended, as necessary.

Council resolutions were not necessary in 2020 because the calculation resulted in no adjustments to the Affordable Housing Unit Base Fee and the Affordable Housing Unit Development Cost. The November 12, 2020 Info Item (Attachment J) outlines the changes in the factors that resulted in no adjustments.

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Packet Pg. 683 Attachment: August 24, 2021 Staff Report (5378 : Affordable Housing Production Program Fees) 5 of 5
Financial Impacts & Budget Actions
The proposed rate change in the Affordable Housing Unit Base Fee and Unit Development Cost is expected to decrease annual revenues by approximately $8,100 per year depending on development activity levels. The proposed rate change is not anticipated to impact the development of affordable housing in the City. Revenues are recorded in account 10400001.415300.

Prepared By: Nigel Wallace, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Proposed Resolution: Base Fee
B. Proposed Resolution: Development Cost
C. Land and Construction Cost Inflation Source Data
D. AHPP Administrative Guidelines
E. Staff Analysis: Proposed FY2021-22 Unit Base Fee Adjustment Memo F. Staff Analysis: Proposed FY2021-22 Development Cost Adjustment Memo G. August 13, 2019 Staff Report
H. June 13, 2006 Staff Report (Web Link)
I. July 21, 1998 Staff Report (Web Link)
J. November 19, 2020 Info Item

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Packet Pg. 684 Attachment: August 24, 2021 Staff Report (5378 : Affordable Housing Production Program Fees) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.N
1 of 3
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Award Bid to Arakelian Enterprises, Inc., dba Athens Services, for Construction and Demolition Materials Processing
Recommended Action
Staff recommends that the City Council:

1. Award RFP# 312 to Arakelian Enterprises, Inc., dba Athens Services for construction and demolition material processing and recycling services for the Public Works Department; and

2. Authorize the City Manager to negotiate and execute an agreement with Arakelian Enterprises, Inc., dba Athens Services, in an amount not to exceed $617,000 (including a 15% contingency) for two years, with three additional oneyear renewal options in the amount of $1,020,000 on the same terms and conditions for a total amount not to exceed $1,637,000 over a five-year period, with future year funding contingent on Council budget approval.

Summary
The City’s Capital Improvement Program (CIP) projects generate several thousand tons of construction and demolition (C&D) materials annually. These materials need to be sent to an approved C&D recycling facility for recycling, processing, and proper disposal. Following a competitive Request for Proposals process, staff recommends Arakelian Enterprises, Inc., dba Athens Services as the best contractor to provide C&D material processing and recycling services for the City.

Discussion
The City’s CIP projects, such as street paving and water infrastructure improvements, generate thousands of tons of C&D debris annually. These materials, such as concrete,

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wood, metal, and glass need to be processed and recycled in an effort to reduce landfill disposal and work towards the City’s zero waste goals. Pursuant to the Santa Monica Municipal Code (SMMC Section 8.108.150), all public or private residential and commercial C&D projects in the City must recycle a minimum of 70% of the C&D materials generated by sending the materials to an approved C&D recycling facility.

Historically, the City’s CIP projects generated an average of 3,283 tons per year. In March 2022, the City sought proposals from permitted and experienced C&D recycling facilities to assist with the construction generated waste. The actual cost of this contract is dependent upon the amount of C&D materials generated and collected from City CIP projects. The contract budget is estimated based on an analysis of the City’s average historical C&D tonnage plus a 15% contingency.

Vendor Selection
Pre-Qualified Vendors
Arakelian Enterprises, Inc., dba Athens Services
Selection Criteria
Evaluation Criteria The training, credentials and experience of the person or firm; the demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the sufficiency of the person’s or firm’s financial and other resources; and the character, integrity, reputation and judgment of the person or firm; the ability of the person or firm to provide such future service as may be needed; and the price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above.

The City is not required to select the proposal with the lowest price.

Municipal Code SMMC 2.24.190
RFQ Data
Date Posted Posted On Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
3/30/22 City's Online
Bidding Site
Santa Monica Daily Press 4 5/4/22
Justification to Short-List
Staff recommends Arakelian Enterprises, Inc., dba Athens Services, as the best proposer based on the company’s price, experience, and satisfactory customer service and performance as the City’s current organics material processor.

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Athens’ proposal offers the lowest price per ton. Athens will utilize one of its own facilities, Crown Recycling, to accept, receive, process, and recycle C&D materials.

Finally, Crown Recycling had the highest reported recycling rate for C&D materials in Los Angeles County as of 2020, at 89.4%. Based on these criteria, the vendors are recommended as best qualified persons or firms.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Resource Recovery and Recycling Fund to award a contractual services agreement with Arakelian Enterprises, Inc., dba Athens Services for C&D processing and recycling services as follows:

Contract Request
FY 2022-23
Request Amount
Future Years Amount Department Account # Total Contract Amount
$226,500 $1,410,500 54500002.523010 $1,637,000
Future year funding is contingent on Council budget approval.

Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Athens Services Oaks Form

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20 CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12- month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY:

Bid/PO/Contract # ____________________________ Permit # ___________________________ Arakelian Enterprises, Inc. dba Athens Services
Ron J. Arakelian, Jr. - President & CEO
Michael R. Arakelian - Secretary
Ron J. Arakelian, III - Executive Officer
Adam Arakelian - Executive Officer
Greg Loughnane - Executive Director
Cord Laule - Chief Financial Officer
Gary Clifford - Executive Vice President
Ron Arakelian, Jr., Owner/Officer
Michael Arakelian, Owner/Officer
Ron Arakelian III, Owner/Officer
Greg Loughnane Executive Director
[email protected] (626) 336-3636
Jan. 6, 2022

5.N.a
Packet Pg. 688 Attachment: Athens Services Oaks Form (5306 : Award Bid for Construction & Demolition Materials Processing) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.O
1 of 4
To: Mayor and City Council
From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Adoption of Salary Resolution for New and Existing Job Classifications and Approval of Position Changes
Recommended Action
Staff recommends that the City Council:

1. Adopt a resolution of the City of Santa Monica establishing new classifications, revising classification titles, and establishing salary rates for new or existing classifications (Attachment A).

2. Approve the position and classification changes (Attachment B).

Summary
This report presents staffing adjustments needed to address ongoing operational changes and implement recommended changes to positions stemming from completed position classification studies. The report also includes a salary resolution proposing the establishment of new classifications, revising classification titles, and establishing salary rates for new and existing classifications.

Discussion
Human Resources Department staff routinely conducts classification and compensation studies to ensure positions are classified and compensated appropriately. Associated recommendations impacting changes in position classification, classification title, or salary require Council approval and are presented in this report. Additionally, this report presents department-initiated organization adjustments (add/delete positions) that were reviewed by the Human Resources Department.

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Attachment A is a salary resolution presenting for approval new classifications, changes in classification titles, and new or revised salary rates. Attachment B details staffing adjustments to reflect ongoing operational changes and results of classification and compensation studies. The actions presented in Attachment B are described below.

The fiscal impact associated with these changes will be absorbed within departments’ existing budgets. Below are details about specific position changes. The remaining items in Attachment B are only for the purpose of revising classification titles and have no fiscal impact.
• The proposed deletion of a Community Liaison position and addition of a Paralegal position will better address the legal workload of the City Attorney’s Office.
• The proposed deletion of a Legal Operations Coordinator position and establishment of a Principal Legal Analyst position in the City Attorney's Office reflects the department’s intent to appropriately classify the position based on the currently assigned duties. The CAO is promoting a long-term, dedicated employee who has been working out of class in the existing Legal Operations Coordinator classification into the new Principal Legal Analyst position. At a highlevel, duties associated with this position are unique and varied for the CAO, including Council Agenda management, CAO-specific IT management, legal support, and back-up management for the Office Administrator. Establishing this new classification will bring the position to the correct level for the current employee’s continued service to the City.
• The proposed deletion of an Assistant Administrative Analyst position and addition of an Administrative Analyst position will more appropriately resource the Procurement Division of the Finance Department to focus on ongoing strategic initiatives. In addition, there is a growing need to conduct continued process improvements and staff training on procurement procedures. • The proposed deletion of a Safety Officer position and addition of a Safety Administrator position in the Finance Department allows for the appropriate

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assignment of duties to the subject position. The higher-level position provides for organizing and administering the activities and operations of the City’s safety, occupational health, injury prevention and loss control programs, which is not representative of the current Safety Officer position.
• The proposed deletion of a Human Resources Fiscal Technician position and establishment of a Human Resources Technician position better aligns with the current needs of the operation and provides for the appropriate assignment of responsibilities to the future incumbent in the position. • The proposed deletion of a Communications and Marketing Coordinator position and addition of a User Experience Designer position in the Information Services Department follows the conclusion of a position classification study in which the Human Resources Department staff determined that the current employee in this position has been working out of classification. The establishment of the User Experience Designer classification allows for the appropriate assignment of duties. The employee will be reclassified with this position. • The proposed deletion of a vacant Custodian I position, and addition of a CIP Project Manager position is being included in order to reconcile an operational adjustment made during the City’s organizational restructuring. The CIP Project Manager position will continue to address the delivery of Council’s ongoing and new capital priorities without delaying ongoing approved and funded projects that support critical infrastructure needs or preserve public health and safety. This change will not impact City’s current custodial operations.

Financial Impacts and Budget Actions
No budget action is necessary as a result of the recommended actions in this report.

The aggregate cost in FY 2022-23 for the classifications identified in this report is approximately $131,000 ($112,000 in the General Fund; $19,000 in the Risk Management Fund) and will be absorbed within existing budgets. The annual cost for the changes identified in this report is approximately $196,000 ($168,000 in the General

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Fund; $28,000 in the Risk Management Fund). Future year funding is contingent on Council budget approval.

Prepared By: Ericka Reinke, Senior HR Analyst
Approved Forwarded to Council
Attachments:

A. Attachment A - Salary Resolution for October 25 2022 B. Attachment B - Position and Classification Changes for 10 25 2022

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ATTACHMENT A
City Council Meeting: October 25, 2022 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 THE FOLLOWING NEW OR EXISTING CLASSIFICATIONS: LEAD PARKING METER

TECHNICIAN, LEAD TRAFFIC SIGNAL TECHNICIAN, PRINCIPAL LEGAL ANALYST,

SAFETY ADMINISTRATOR, TRAFFIC OPERATIONS SUPERVISOR, TRAFFIC

SIGNAL TECHNICIAN, TRANSIT SAFETY OFFICER, TRANSIT TRAINING

SUPERVISOR, TRANSPORTATION MARKETING COORDINATOR, AND USER EXPERIENCE DESIGNER.

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 November 6, 2022, for the indicated permanent classifications:

Classification Salary Reason
Lead Parking Meter Technician $79,356/annual; Step 5 Change of classification title; no change in salary
Lead Traffic Signal Technician $99,708/annual; Step 5 Equity adjustment Principal Legal Analyst $134,388/annual; Step 5 New classification Safety Administrator $155,052/annual; Step 5 New classification Traffic Operations Supervisor $109,704/annual; Step 5 Equity adjustment Traffic Signal Technician $90,648/annual; Step 5 Equity adjustment Transit Safety Officer $122,136 /annual; Step 5 Change of classification title; no change in salary
Transit Training Supervisor $105,528/annual; Step 5 Change of classification title; no change in salary
Transportation Marketing
Coordinator
$101,004/annual; Step 5 Change of classification title; no change in salary
User Experience Designer $135,564/annual; Step 5 New classification 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:

Douglas T. Sloan
City Attorney

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Packet Pg. 693 Attachment: Attachment A - Salary Resolution for October 25 2022 (5400 : Adoption of Salary Resolution and Approval of Position Changes)

POSITION AND CLASSIFICATION CHANGES

ATTACHMENT B

FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE 01 CAO 1.0 Community Liaison 01 CAO 1.0 Paralegal 1 Add/Delete - - - 01 CAO 1.0 Legal Operations Coordinator 01 CAO 1.0 Principal Legal Analyst 2 Add/Delete - 12,787 19,182 01 DOT 1.0 Parking Meter Crew Leader 01 DOT 1.0 Lead Parking Meter Technician 1 title change only - - -
60 DOT 1.0 Transit Marketing Coordinator 60 DOT 1.0 Transportation Marketing Coordinator 1 title change only - - -
60 DOT 1.0 Transit Safety and Security Officer 60 DOT 1.0 Transit Safety Officer 1 title change only - - -
60 DOT 1.0 Safety and Training Supervisor 60 DOT 1.0 Transit Training Supervisor 1 title change only - - -
01 Finance 1.0 Assistant Administrative Analyst 01 Finance 1.0 Administrative Analyst 2 Add/Delete - 7,344 11,017 75 Finance 1.0 Safety Officer 75 Finance 1.0 Safety Administrator 2 Add/Delete - 18,823 28,234 01 HR 1.0 Human Resources Fiscal
Technician 01 HR 1.0 Human Resources Technician 1 Add/Delete - - - 01 ISD 1.0 Communications & Marketing
Coordinator 01 ISD 1.0 User Experience Designer 2
reclassification - 5,754 8,632
01 PW 1.0 Custodian I 01 PW 1.0 CIP Project Manager 2 Add/Delete - 68,280 102,418 PERMANENT EMPLOYEES TOTAL 0.0 FTE $ 112,988 $ 169,483
EQUITY ADJUSTMENTS IN ATTACHMENT A 0.0 FTE 17,680 26,520 GRAND TOTAL 0.0 FTE $ 130,668 $ 196,003

DELETE ADD

REASON NET FTE
CHANGE
FY 2022-23
COST
(SALARIES &

BENEFITS)

FULL YEAR
COST
(SALARIES &

BENEFITS)
October 25, 2022

5.O.b
Packet Pg. 694 Attachment: Attachment B - Position and Classification Changes for 10 25 2022 (5400 : Adoption of 1 October 11, 2022
(NOT APPROVED)

CITY OF SANTA MONICA

CITY COUNCIL MINUTES
OCTOBER 11, 2022
A regular meeting of the Santa Monica City Council was called to order by Mayor Himmelrich at 5:33 p.m., on Tuesday, October 11, 2022, at City Council Chambers, 1685 Main Street, Santa Monica, CA.

Roll Call: Present: Mayor Sue Himmelrich
Councilmember Phil Brock
Councilmember Gleam Davis
Councilmember Lana Negrete
Councilmember Oscar de la Torre (arrived at 5:36 p.m.)
Councilmember Christine Parra

Absent: Mayor Pro Tem Kristin McCowan
Also Present: City Manager David White
City Attorney Douglas Sloan
City Clerk Denise Anderson-Warren
CONVENE/PLEDGE On order of the Mayor, the City Council convened at 5:33 p.m., with all members present except Mayor Pro Tem McCowan and Councilmember de la Torre. Councilmember Negrete led the assemblage in the Pledge of Allegiance.

GENERAL PUBLIC
INPUT:

Councilmember de la Torre
arrived at 5:36 p.m.

Members of the public Denise Barton, Bradley Green, Olga Zurawska, and Jonathan Foster commented on various local issues.

PUBLIC INPUT FOR

SPECIAL AGENDA

ITEMS AND CONSENT
CALENDAR ONLY:

Member of the public Denise Barton commented on special agenda items.

Member of the public Denise Barton commented on consent calendar items.

PROCLAMATIONS/

COMMENDATIONS

4.A. Proclamation: October 2022 as Filipino-American History Month, was presented.

RECESS On order of the Mayor, the City Council recessed at 6:02 p.m., and returned at 7:07 p.m., with Mayor Pro Tem McCowan absent.

SPECIAL AGENDA
ITEMS:

4.B. City Manager Report, was presented.

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AGENDA

MANAGEMENT
On order of the Mayor, the board and commission appointment, Item 16.A. was continued to the October 25th meeting, where a full Council will be present.

REPORT ON COUNCIL
TRAVEL
Councilmember Brock reported that he traveled to Redondo Beach for the installation of the new board members for the Independent Cities Association.

CONSENT CALENDAR: All items were considered and approved in one motion unless removed by a Councilmember for discussion.

At the request of Councilmember Brock, Item 5.A. was removed from the Consent Calendar.

Motion by Councilmember Brock, seconded by Councilmember Davis, to approve the Consent Calendar except for Item 5.A., reading resolutions by title only and waiving further reading thereof. The motion was approved by the following vote:

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
AB 361

TELECONFERENCE

MEETINGS

5.B. Adoption of Resolution No. 11467 (CCS) entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA MAKING FINDINGS AS REQUIRED BY AB 361

TO PERMIT COUNCIL AND CITY BOARD, COMMISSION, AND

TASK FORCE MEETINGS TO CONTINUE TO BE CONDUCTED BY
TELECONFERENCE WHILE THE COVID-19 EMERGENCY
REMAINS IN PLACE”, was adopted.

Recommended Action
Staff recommends that Council adopt a resolution making the findings required by AB 361 to continue teleconference meetings of the City Council and City Boards, Commissions, and Task Forces through November 10, 2022.

POLICE DEPARTMENT

SOFTWARE

5.C. Award Bid and Enter into Agreement No. 11318 (CCS) with Vigilant Solutions, LLC, was approved.

Recommended Action
Staff recommends that the City Council:

1. Award Bid #4423, in part, to Vigilant Solutions, LLC., a subsidiary of Motorola Solutions, Inc., to expand the ALPR (Automatic License Plate Recognition) capabilities of the Santa Monica Police

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Department and to provide enhanced critical infrastructure protection to the area of the Santa Monica Pier and Downtown area.

2. Authorize the City Manager to negotiate and execute Contract No. 11318 (CCS) with Vigilant Solutions, LLC., a subsidiary of Motorola Solutions, Inc., for the ALPR expansion project in an amount not to exceed $291,432. This sum includes the purchase of ALPR cameras and all equipment and 3 years of service, with future year funding contingent on Council budget approval.

3. Award Bid #4423, in part, to Fortel Traffic to expand the ALPR (Automatic License Plate Recognition) capabilities of the Santa Monica Police Department and to provide enhanced critical infrastructure protection to the area of the Santa Monica Pier and Downtown area.

4. Authorize the City Manager to negotiate and execute a purchase order with Fortel Traffic for the purchase of four digital message board trailers and related equipment in an amount not to exceed $79,600.PO

FIRE DEPARTMENT

SOFTWARE

5.D. Award RFP 311 to Digital EMS for Electronic Patient Care Reporting for the Fire Department, was approved.

Recommended Action
Staff recommends that the City Council:

1. Award the contract for RFP 311 to Digital EMS Solutions Incorporated for an electronic Patient Care Report (ePCR) system for use by the Fire Department

2. Authorize the City Manager to negotiate and execute Agreement No. 11319 (CCS) with Digital EMS for a total amount not to exceed $250,000 and for a five-year term, with future years funding contingent on Council budget approval.

FINANCE DEPARTMENT

SOFTWARE

5.E. Award RFP for Enterprise Procurement Lifecycle Management Solution, was approved.

Recommended Action
Staff recommends that the City Council:

1. Award RFP PRJ0011599 to OpenGov, Inc. for an enterprise Procurement Lifecycle Management Solution (PLMS) for the Finance Department;

2. Authorize the City Manager to negotiate and execute Agreement No. 11320 (CCS) with OpenGov, Inc. for annual subscription costs related to OpenGov’s enterprise PLMS, which includes solicitation builder and online bidding capabilities, in an amount not to exceed $392,805 (including a 10% contingency of approximately $35,700) for five years with future year funding contingent on Council budget approval; and,

3. Authorize the City Manager to negotiate and execute a second

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modification to Agreement No. 11321 (CCS) in the amount of $17,600 with OpenGov, Inc. to continue to use and pay the subscription costs for their solicitation builder and online bidding system through December 2022, while the new agreement
associated with award of RFP PRJ0011599 is finalized.

MINUTES 5.F. Minutes for the City Council - Regular Meeting - July 26, 2022, were approved.

MINUTES 5.G. Minutes for the City Council - Special Meeting - August 3, 2022, were approved.

DOWNTOWN SANTA
MONICA, INC.

5.A. Approval of Downtown Santa Monica, Inc. FY2022-23 Budget and Work Plan, was presented.

Recommended Action
Staff recommends that the City Council:

1. Approve the Downtown Santa Monica, Inc. Fiscal Year 2022-23 Budget and Work Plan;

2. Authorize the City Manager to execute the Eleventh Modification of the Maintenance Services Agreement to extend the term of the Maintenance  Services Agreement (Contract No. 9626) for an additional one-year period;

3. Authorize the City Manager to negotiate and execute Memorandum of Understanding No. 11322 (CCS) between the City and Downtown Santa Monica, Inc. for Fourth Court Alley improvements, in an amount not to exceed $110,000, over a three-year term;

4. Authorize the City Manager to negotiate and execute amended License Agreement No. 11323 (CCS) to allow Downtown Santa Monica, Inc. (DTSM) to install and operate a temporary ice-skating rink and ancillary activities consistent with DTSM’s roles and responsibilities under the Services Agreement with four additional, one-year renewal options with an expiration date of 2026; and

5. Authorize the City Manager to negotiate and extend the Ocean Avenue Pilot License Agreement No. 11324 (CCS) to allow DTSM to provide pedestrian-oriented services and amenities within a portion of the approximately 4,000 square feet of pedestrian right-ofway along the eastern side of Ocean Avenue, between Colorado Avenue and the northwest entrance of Tongva Park, for an initial term of one year with four, one-year renewal options.

This item was pulled by Councilmember Brock to express that an ice rink in the middle of Santa Monica is not a good use of our electric and water resources, and instead would like Downtown Santa Monica to consider installing a roller rink in that same area to set a good example of reserving our resources. If it’s not possible to install a roller rink this winter, maybe consider installing one during the summer months.

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Motion by Councilmember Brock, seconded by Councilmember Negrete, to approve the recommended action. The motion was approved by the following vote:

AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan

PUBLIC INPUT ON

REMAINING AGENDA

ITEMS (EXCEPT ITEM

12.A):

Members of the public Denise Barton and Olga Zurawska commented on the remainder of the agenda.

ORDINANCES:

BUILDING CODE

10.A. Second reading and adoption of Ordinance No. 2722 (CCS) entitled “AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA MONICA AMENDING THE SANTA MONICA MUNICIPAL
CODE BY ADDING CHAPTER 8.38 ENTITLED,
“ZERO EMISSION BUILDING CODE” AND AMEND SECTION

8.08.040(a) TO ALLOW THE BUILDING AND FIRE LIFE SAFETY

COMMISSION TO HEAR APPEALS RELATED TO THE ZERO
EMISSION BUILDING CODE, was presented.

Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

Motion by Councilmember Davis, seconded by Councilmember Negrete, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote:

AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
EV CHARGING 10.B. Second reading and adoption of Ordinance No. 2723 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA AMENDING ARTICLE VIII OF THE SANTA

MONICA MUNICIPAL CODE TO ADOPT LOCAL AMENDMENTS
TO THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE

RELATING TO ELECTRIC VEHICLE PARKING
REQUIREMENTS FOR NEWLY CONSTRUCTED BUILDINGS”, was
presented.

Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

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Motion by Councilmember Brock, seconded by Councilmember Negrete, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote:

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
ZONING 10.C. Introduction and Adoption of Emergency Interim Zoning Ordinance No. 2724 (CCS) entitled “AN EMERGENCY INTERIM

ZONING ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SANTA MONICA EXTENDING INTERIM ZONING

REGULATIONS ESTABLISHED BY EMERGENCY INTERIM
ZONING ORDINANCE NUMBER 2674 (CCS) AND EXTENDED AND

AMENDED BY EMERGENCY INTERIM ZONING ORDINANCES
2678 AND 2704 (CCS) AUTHORIZING TEMPORARY USE OF
PRIVATE OUTDOOR SPACE; TEMPORARY PERMITTED USES FOR

EMERGENCY SHELTERS, PUBLIC SAFETY FACILITIES, AND
DRIVE THROUGH FACILITIES FOR COVID-19 TESTING AND
VACCINATION PURPOSES; AND FLEXIBILITY INISSUANCE OF

TEMPORARY USE PERMITS AND ALCOHOLIC BEVERAGE
SALES”, was presented.

Recommended Action
Staff recommends that the City Council introduce and adopt an Emergency Interim Zoning Ordinance extending interim zoning regulations established by Emergency Interim Zoning Ordinance Number 2674 (CCS) and extended and amended by Emergency Interim Zoning Ordinances 2678 and 2704 (CCS) authorizing temporary outdoor use of private outdoor space; temporary permitted uses for emergency shelters, public safety facilities, and drive-through facilities for COVID-19 testing and vaccination purposes; flexibility in issuance of temporary use permits and alcoholic beverage sales; and zoning changes necessary for continued emergency response and economic recovery.

Motion by Councilmember Negrete, seconded by Councilmember Brock, 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 Parra, Davis, Negrete, Brock, de la Torre, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan

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ECONOMIC RECOVERY 10.D. Introduction and First Reading of Ordinance to Amend the Text of the City's Ordinance Related to Economic Recovery in (1) the City's Downtown, Mixed Use and Commercial, Employment,
Oceanfront, and Public and Semi-Public Districts, Excluding the Area Including and Immediately Adjacent to the Third Street Promenade; and (2) the Area Including and Immediately Adjacent to the Third Street Promenade, was presented.

Recommended Action
Staff recommends that the City Council introduce for first reading an ordinance related to economic recovery efforts in:

1. City’s Downtown, Mixed-Use and Commercial, Employment, Oceanfront and Public and Semi-Public Districts, excluding the Third Street Promenade and the area immediately adjacent thereto; and

2. The area including the Third Street Promenade and immediately adjacent thereto, bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north.

Panning staff provided a correction to the proposed ordinance Attachment A on Page 30.

Questions asked and answered of staff included: has having parklets hampered people’s ability to park in the downtown area, and in other parts of the city have residents complained about parking; have there been any negative effects from reducing the alcohol requirements; what types of complaints are received as a result of the reduced requirements; how are things running, and what can be done to make things better; are there any repeat complaints about the same offenders; overall has this program been a benefit to the businesses and residents; is there data to show if some of the city has been more impacted than other parts of the city during COVID; for economic recovery, is it a matter of staffing as the reason it’s taking businesses a long time to get permitted; how comparable is this city’s permitting process compared to the next five closer cities; and, what are the difference between what the staff recommended versus what the Planning Commission recommended.

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan

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BUILDING CODE 10.E. Introduction and First Reading of an Ordinance Approving the 2022 Building Code Update and Adoption of Resolution No. 11468 (CCS) entitled “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MONICA MAKING FINDINGS REGARDING

LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHICAL

CONDITIONS PURSUANT TO HEALTH AND SAFETY CODE
SECTIONS 17958.5, 17958.7 and 18941.5”, was presented.

Recommended Action
Staff recommends that the City Council:

1. Adopt the attached resolution making findings of local climatic, geological and topographical conditions, as required by California Health & Safety Code, to adopt local amendments to the California Building Standards Code.

2. Introduce for first reading the attached ordinance to adopt the 2022 California Building Standards Code, and Santa Monica local amendments to the 2022 California Building Standards Code, excluding the 2022 California Green Building Code.

3. Instruct staff to file the adopted resolution and ordinance with the California Building Standards Commission following the second reading of the ordinance, but at least 30 days before the effective date of the Codes.

Questions asked and answered of staff included: was this prepared before it was released that there is a new earthquake fault and will there be any reevaluation in light of that knowledge; and, when the earthquake standards are adjusted on the state level, do we adjust our standard as well.

Motion by Councilmember Brock, seconded by Councilmember Davis, to introduce and hold first reading of the ordinance reading by title only and waiving further reading thereof, and approve the recommended action. The motion was approved by the following vote:

AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
STAFF

ADMINISTRATIVE
ITEMS:

HOUSING ELEMENT

11.A. Adoption of Resolution No. 11469 (CCS) entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ADOPTING AN AMENDED 6TH CYCLE (2021-2029) HOU”,
was presented.

Recommended Action
Staff recommends that the City Council:

1. Review, approve, and adopt the Addendum to the 6th Cycle Housing Element Environmental Impact Report (SCH No.

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20212269242021); and

2. Adopt a Resolution adopting an Amended 6th Cycle (2021-2029) Housing Element of the City’s General Plan.

Member of the public Theresa Marasco, spoke to the recommended action.

Questions asked and answered of staff included: what are the penalties if the City Council decides to protest and votes no on this resolution; what is a “builders remedy” project mean; has Housing and Community Development (HCD) told us that the city has to allow the current builders remedy projects that have already submitted their original applications; once HCD certifies our revised Housing Element, will the city be able to slightly adjust projects submitted; what is the track record for other cities that have sued the state; is the Regional Housing Needs Allocation (RHNA) number still 8,895 units or is it now higher; are all cities expected to have a 53% buffer or is that something we as a city decided to do; how does a city address issues that may be impacted as a result of the amount of housing that the RHNA is requesting; at what point does the city lobby to the state to address the infrastructure issues that may arise as a result of all of the additional units being built; do we get credit for any of the units that are currently being built; how many units are vacant outside of the thousand that have been permitted since October 2021; when will the city be able to set parameters on the size of the units; will conversion of office space count towards the RHNA numbers; did HCD say that if there is a conflict in the zoning code, our Land Use Circulation Element (LUCE) would be followed; can more people living here increase revenues that could potentially assist with the infrastructure and other issues that may arise from the additional housing; if we’re serious about impacting climate change, couldn’t building more housing reduce our emissions because more people could live closer to their jobs and not have to use vehicles to get to work; is it typical to have a 4 to 5 percent vacancy rate; when is it expected for the Council to see the upzoning indicated in the Housing Element; will the governor’s new bills make building in commercial zones easier; and, when the Accessory Dwelling Unit (ADU) permit metric was set, were the 47 units restricted to just rentable units.

Considerable discussion ensued on topics including, but not limited to:
reason to vote yes on this item are 1) it is important that we begin this journey, so that we are not subject to the penalties; 2) if we don’t adopt the Housing element, we delay the upzoning process; and, 3) belief that HCD is not affirmatively in favor of promoting affordable housing.

Motion by Councilmember Davis, seconded by Councilmember Parra, to adopt the staff recommendation.

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The motion was approved by the following vote:

AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
PUBLIC HEARINGS:

WATER REPORT

12.A. Approval of 2022 Report on Water Quality and Public Health Goals, was presented.

Recommended Action
Staff recommends that the City Council:

1. Hold a public hearing, receive public comments, and approve the attached 2022 City of Santa Monica Water Quality Report Relative to the Public Health Goals.

2. Adopt the determination that the City’s 2022 Water Quality Report Relative to the Public Health Goals is exempt from review pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) and pursuant to categorical exemption under Section 15308.

There were no members of the public present to speak on this item.

Questions asked and answered of staff included: does the city test water at water fountains throughout the city; does the city still put fluoride in our water; is there any data that shows the impact of fluoride in the water; and does the city have any lead pipes still being used in the city.

Motion by Councilmember Negrete, seconded by Councilmember de la Torre, to adopt the staff recommendation. The motion was approved by the following vote:

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
RESOLUTIONS:

SURPLUS PROPERTY

14.A. Adoption of Resolution No. 11470 (CCS) entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA, CALIFORNIA, DECLARING PURSUANT TO

THE SURPLUS LAND ACT THAT CERTAIN REAL PROPERTY
OWNED BY THE CITY LOCATED AT 1855 MAIN STREET, 1636
5th STREET, AND THE EXPO LINE PARKING LOT IS SURPLUS
LAND NOT NECESSARY FOR THE CITY’S USE; FINDING THAT

SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL

REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT; AND TAKING RELATED ACTIONS”, was

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presented.

Recommended Action
Staff recommends that the City Council:

1. Declare the City-owned properties located at 1855 Main Street (APN 4290-013-901), 1636 5th Street (APNs 4290-011-903, 4290-011-904, 4290-011-905) and Expo Line Parking Lot (APN 4290-011-909) as “surplus land” within the meaning of the Surplus Land Act (“SLA”);

2. Adopt a Resolution declaring the City-owned properties at 1855 Main Street (APN 4290-013-901) (“Civic Auditorium”), 1636 5th Street (APNs 4290-011-903, 4290-011-904, 4290-011-905) (“Apple Building”) and Expo Line Parking Lot (APN 4290-011-909) as surplus lands, if required; and authorize the City Manager or designee to take implementing actions necessary to comply with the SLA; and

3. Authorize the City Manager or designee to initiate lease negotiations for the City’s existing commercial buildings without complying with the noticing procedures under the SLA if the State Department of Housing and Community Development (HCD) determines that the SLA does not apply to proposed leasing of existing non-residential buildings without demolition.

Questions asked and answered of staff included: is the letter being sent for the Civic strictly for cultural uses, or will it allow other uses; is the declaration of property a first step in selling off these properties; how would the city provide funding in a private/public partnership; do we actively go out and engage, or do offers come in on their own; and, how would affordable housing work at the Civic.

Motion by Councilmember Brock, seconded by Councilmember Negrete, to adopt the staff recommendation. The motion was approved by the following vote:

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan

COUNCILMEMBER
DISCUSSION ITEMS:

DISABILITIES

COMMISSION

16.A. Appointment to one unscheduled vacancy on the Disabilities Commission for a term ending on 06/30/2025, was continued to October 25th.

COUNCIL MEETINGS 16.B. Request by Councilmember De la Torre that: 1) The City Attorney commit to actively monitor City Council meetings for City Council adherence to Robert's Rules of Order as required by Res 11360 and intervene as often as necessary to ensure that adherence, in

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Packet Pg. 705 Minutes Acceptance: Minutes of Oct 11, 2022 5:30 PM (CONSENT CALENDAR) 12 October 11, 2022
order to facilitate effective, efficient, and fair City Council meetings; 2) The City Manager or City Attorney arrange for all Councilmembers to receive a crash course of training in Robert's Rules of Order by a professional parliamentarian within 30 days, in a public forum that is broadcast live by video and remains available for future viewing, so everyone—including the public and current and future city officials— can learn from it, was presented.

Considerable discussion ensued on topics including, but not limited to:
modify timeline for the training to the first two weeks of January 2023, include Brown Act training and Council rules; and, handle this in-house instead of hiring an outside Parliamentarian.

Motion by Councilmember de la Torre, seconded by Councilmember Brock, to adopt the recommendation. The motion was unanimously approved by voice vote, by all members present.

SISTER CITIES SUMMIT 16.C. Request of Councilmember De la Torre that the City Council authorize use of his travel funds to attend the Sister Cities International US-Mexico Mayors’ Community Summit from October 11-13 2022 in San Diego, CA and Tijuana, Mexico, was presented.

Motion by Councilmember Negrete, seconded by Councilmember Brock, to adopt the recommendation. The motion was approved by the following vote:

AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra, Mayor Himmelrich
NOES: None
ABSENT: Mayor Pro Tem McCowan
ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 10:30 p.m. in memory of Samuel Himmelrich Sr.

ATTEST: APPROVED:

Denise Anderson-Warren Sue Himmelrich
City Clerk Mayor

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Packet Pg. 706 Minutes Acceptance: Minutes of Oct 11, 2022 5:30 PM (CONSENT CALENDAR) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 8.A
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Appointment to one unscheduled vacancy on the Disabilities Commission for a term ending on 06/30/2025. Continued from October 11, 2022 Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:

A. Applicant List_Disabilities Commission

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Revised 9/19/22 at 12:30pm
City of Santa Monica
Boards and Commissions Applicants
Disabilities Commission
Name Application Date
Matthew B. Sussman 8/22/2022
TOTAL APPLICANTS: 0
*Identified person with a disability
*Incumbents listed in red

8.A.a
Packet Pg. 708 Attachment: Applicant List_Disabilities Commission (5427 : 8.A. Appointment: Disabilities Commission (5 mins)) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 10.A
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Second Reading and Adoption of an Ordinance modifying section 3.36.150 formally declaring First Court Promenade as a pedestrian mall and prohibiting vehicular traffic thereon
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

Executive Summary
At its meeting on September 27, 2022, the City Council introduced for first reading an Ordinance modifying Santa Monica Municipal Code section 3.36.150 formally declaring First Court Promenade as a pedestrian mall and prohibiting vehicular traffic thereon.

The ordinance is now presented to the City Council for adoption.

Prepared By: Bradley Michaud, Legal Operations Coordinator Approved Forwarded to Council
Attachments:

A. CD-ord-First Court Ped Mall

10.A
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1 City Council Meeting: October 25, 2022 Santa Monica, California ORDINANCE NO. ____ (CCS)
(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MODIFYING SECTION 3.36.150 OF CHAPTER 3 OF THE SANTA MONICA

MUNICIPAL CODE, TO ESTABLISH THE FIRST COURT PROMENADE ON A

PORTION OF FIRST COURT BETWEEN SANTA MONICA BOULEVARD AND

ARIZONA AVENUE, IN THE CITY OF SANTA MONICA, CALIFORNIA AS A PEDESTRIAN MALL; AND PROHIBIT VEHICULAR TRAFFIC THEREON WHEREAS, the Pedestrian Mall Law of 1960, California Streets and Highways Code Sections 11000 et seq. (the “Pedestrian Mall Law”), authorizes municipalities to close streets to vehicular traffic and to establish pedestrian malls; and WHEREAS, the City of Santa Monica (“City”) established the Third Street Mall in 1963 to create a pedestrian zone that has added to the vitality and vibrancy of Downtown Santa Monica and which has served the public interest and not unduly inconvenienced vehicular traffic; and
WHEREAS, the City’s Land Use and Circulation Element of its General Plan (the “LUCE”) designates the properties located in Santa Monica’s Downtown District on the north side of Santa Monica Boulevard between Ocean Avenue and Second Street commonly known as 101 Santa Monica Boulevard, 1337 Ocean Avenue, 1333 Ocean Avenue, 1327 Ocean Avenue and 129 Santa Monica Boulevard (the “Project Site”) as a site to focus new investment given its accessibility to transit and ability to accommodate mixed-use development, contribute to the pedestrian-oriented environment, and support substantial community benefits (LUCE Policy D1.5); and

10.A.a
Packet Pg. 710 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 2 WHEREAS, the LUCE states to “[p]rioritize pedestrian environment above all other modes” in the Downtown District (LUCE, p. 4.0-18) and LUCE Policy B4.14 is to “discourage north-south alley access to Santa Monica Boulevard and explore alternative routing;” and
WHEREAS, LUCE Policy D9.6 is to “improve the aesthetic appearance of the alleys, and where appropriate incorporate the alleys into the pedestrian system;” and WHEREAS, the City’s Downtown Community Plan (“DCP”), a specific plan governing the Downtown District, designates the Project Site as one of three Established Large Sites that have the potential to accommodate significant new development and provide significant community benefits (DCP p. 30 and Illustration 4.1 Downtown Districts, p. 174); and
WHEREAS, BELLE VUE PLAZA, a California limited partnership, and OCEAN AVENUE PARTNERS, LLC, a Delaware limited liability company, collectively the owners of the Project Site (“Project Developer”) has proposed to develop the Project Site with a mixed-use housing, hotel, cultural uses, and retail/restaurant project, which incorporates two City-designated landmark and includes publicly-accessible open space (the “Project”); and
WHEREAS, the Project Site is located on both the west and east side of First Court, an approximately 20’-wide, north-south public alley connecting Arizona Avenue (on the north) to Santa Monica Boulevard (on the south) that currently allows for oneway vehicular travel southbound from Arizona Avenue to Santa Monica Boulevard; and WHEREAS, the Project proposes to re-route southbound vehicular travel on First Court to Second Street (rather than Santa Monica Boulevard) via a new east-west

10.A.a
Packet Pg. 711 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 3 public alley to be located on the northern portion of the Project Site, (the “Re-Routed First Court”) pursuant to the terms of a Development Agreement for the Project and an easement agreement for the Re-Routed First Court public alley; and WHEREAS, in order to facilitate pedestrian access in the public right-of-way adjacent to the Project Site, on May 24, 2022, the City council declared its intention to establish a new pedestrian mall on a portion of First Court adjacent to the Project Site, between Santa Monica Boulevard and Arizona Avenue, as shown on Exhibits A and B (the “First Court Promenade”); and
WHEREAS, on July 26, 2022, the City Council approved the Development Agreement for the Project; and
WHEREAS, consistent with LUCE and DCP policies, the First Court Promenade will (a) allow for uninterrupted pedestrian access on the north sidewalk along Santa Monica Boulevard between Second Street and Ocean Avenue and (b) connect to a publicly-accessible pedestrian paseo in the Project providing pedestrian access through the Project between Ocean Avenue and Santa Monica Boulevard as well to the elevators for the publicly-accessible observation deck pursuant to the terms of the Development Agreement for the Project; and
WHEREAS, east-west through traffic on both Santa Monica Boulevard and Arizona Avenue will be maintained; and
WHEREAS, the City of Santa Monica does not intend to form an assessment district to pay for the proposed improvements and instead will require the Project Developer to improve and maintain the proposed First Court Promenade pursuant to the

10.A.a
Packet Pg. 712 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 4 terms of a Development Agreement for the Project and an associated maintenance agreement for the Pedestrian Mall; and
WHEREAS, on September 27, 2022, the City Council held a duly noticed public hearing as set forth below to hear protests and objections to the establishment of the proposed First Court Promenade and to review any claims of damages from those holding any legal or equitable interest in any real property which might suffer legal damage by reason of the establishment of the proposed First Court Promenade; and WHEREAS, after considering all protests and objections, if any, the City Council adopted Resolution No. 11466 (CCS), establishing the First Court Promenade.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. Section 3.36.150 of the Santa Monica Municipal Code is amended, as follows:

3.36.150 Pedestrian mall.

A. The Council does hereby declare and determine that a pedestrian mall, known as the Third Street Promenade, is finally established under the Pedestrian Mall Law of 1960, and that a general description of said pedestrian mall is as follows:

Third Street between the southeasterly line of Wilshire Boulevard and the northwesterly line of Arizona Avenue, and between the southeasterly line of Arizona Avenue and the northwesterly line of Santa Monica Boulevard and between the southeasterly line of Santa Monica Boulevard and the northwesterly line of Broadway.

10.A.a
Packet Pg. 713 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 5 B. The Council does hereby declare and determine that a pedestrian mall, known as the First Court Promenade, is finally established under the Pedestrian Mall Law of 1960, and that a general description of said pedestrian mall is as follows:

First Court between the northwesterly line of Santa Monica Boulevard and a parallel line approximately 160 feet northwesterly and 20 feet wide; and an area of approximately 20 ft south of the northwesterly line of Santa Monica Boulevard 30 feet wide.

C. No vehicles shall be permitted on the First Court Promenade, except for emergency, utility, and/or maintenance/service vehicles.

SECTION 3. 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 4. 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 5. 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

10.A.a
Packet Pg. 714 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 6 official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption.

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

10.A.a
Packet Pg. 715 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 7 EXHIBIT A

LEGAL DESCRIPTION OF PROPOSED FIRST COURT PROMENADE

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Packet Pg. 717 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 9 EXHIBIT B

MAP OF PROPOSED FIRST COURT PROMENADE

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Packet Pg. 718 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) 10 10.A.a
Packet Pg. 719 Attachment: CD-ord-First Court Ped Mall (5413 : Pedestrian Mall - Second Reading) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 10.B
1 of 4
To: Mayor and City Council
From: David Martin, Director, Building & Safety
Subject: Introduce for First Reading an Ordinance to Amend Santa Monica Municipal Code 8.08.060 to Extend Building Permit Application Expiration Dates for Projects Requiring a Coastal Development Permit
Recommended Action
Staff recommends that the City Council:

1. Adopt the CEQA findings in the staff report set forth under “Environmental Review;”

2. Introduce for first reading the attached ordinance to amend Santa Monica Municipal Code Section 8.08.060(h) to extend the building permit application expiration date for projects requiring a Coastal Development Permit.

Summary
City Council is asked to adopt an ordinance amending Santa Monica Municipal Code (“SMMC”) Section 8.08.060(h) to extend the expiration date of building permit applications for projects that require a Coastal Development Permit. Approval of a Coastal Development Permit is a lengthy process that is often difficult to complete within the current prescribed building permit application timeframe of one year. Additionally, many new development projects include a housing component, which is a statewide and local priority; therefore, staff is recommending extending the building permit application expiration date for projects in the Coastal Zone to three years from the date of filing a building permit application, or concurrent with the term of any vesting tentative map for the project (if applicable).

Discussion
Pursuant to SMMC Section 8.08.060(h)(1), a building permit application (i.e., plan

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review) expires if no building permit is issued within one year of the application filing date, except for specific project types, such as demolition permits, which are provided extended expiration dates of up to three years due to the processing times associated with these specific project types. One six-month extension may be granted to these expiration dates. Pursuant to SMMC Section 8.08.060(h)(2), no action may be taken on an application after expiration and applicants shall be required to submit a new permit application, new submittal documents, and be subject to a new plan review fee.

Requiring a project to resubmit for a new building permit application would significantly delay the overall processing time and may potentially cause a project to jeopardize its land use entitlement from City Planning due to expiration. Typically, land use entitlement approvals for properties in the Coastal Zone expire if a building permit is not issued within two and a half years of the land use entitlement approval.

Santa Monica does not have a certified Coastal Zone Land Use Plan, which requires Coastal Commission approval of a local Land Use Plan and Coastal Zoning Ordinance.

As such, new development on properties within the Coastal Zone require the issuance of a Coastal Development Permit (“CDP”) from the California Coastal Commission before a City building permit can be issued. Projects that require a CDP can experience lengthy processing times from the California Coastal Commission. Most building permit applicants go through the CDP and local building permit processes concurrently, which often make it difficult to complete the City’s plan review process within the currently prescribed one-year timeframe. As such, it would be appropriate to establish an extended building permit application timeframe for developers to complete the plan review process for projects that require a CDP, particularly since the Coastal Commission is an external governmental agency outside the City’s control.

Additionally, housing development is of critical importance in the City and statewide, as evidenced by the State’s declaration of a housing crisis. New development in the City will typically contain a housing component and may include an associated tract map if residential condominiums are proposed. An approved tract map will have a separate expiration date and expires two years from its approval if a building permit is not issued, with an opportunity for additional extensions up to six years pursuant to the Subdivision

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Map Act. Therefore, to further address the needs of the lengthy processing timelines associated with new development that requires a CDP, and to consolidate the varying expiration dates associated with a project, the proposed amendment to SMMC Section

8.08.060(h)(1) would add subsection (D) to read as follows:
(D) An application for a project that requires a Coastal Development Permit shall expire if no building permit is issued within three years of the building permit application filing date; however, if the project includes an approved vesting tentative map, the permit application expiration date shall be extended to be concurrent with the term of the vesting tentative map for the project.

Providing the extended processing timelines for projects that require a CDP and consolidating the varying expiration dates into one expiration date helps minimize confusion. It also helps to more effectively preserve the land use entitlement approvals and avoid potential expiration due to lack of timely building permit issuance.

Environmental Review
The proposed ordinance amendment to extend certain timelines for the processing of building permit applications for projects that require a Coastal Development Permit is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exception). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. The proposal would not result in adverse physical environmental effects as it encompasses only procedural changes. Therefore, no further environmental review under CEQA is required. Projects that have received vesting tentative maps will be required to have undergone their own separate CEQA review.

Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of

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the recommended action.

Prepared By: Ariel Socarras, Building and Safety Manager Approved Forwarded to Council
Attachments:

A. Ordinance Amending SMMC 08.08.060(h)

10.B
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1 City Council Meeting: October 25, 2022 Santa Monica, California ORDINANCE NUMBER _____ (CCS)
(City Council Series)

AN ORDINANCE OF THE SANTA MONICA CITY COUNCIL AMENDING MUNICIPAL CODE SECTION 8.08.060 TO EXTEND THE EXPIRATION DATE OF BUILDING

PERMIT APPLICATIONS FOR PROJECTS REQUIRING A COASTAL

DEVELOPMENT PERMIT
WHEREAS, Santa Monica Municipal Code Section 8.08.060 sets forth timeframes for expiration of building permit applications; and
WHEREAS, after expiration of a building permit application, applicants are required under Section 8.08.060(h)(2) to submit a new permit application, new submittal documents, and be subject to a new plan review fee; and WHEREAS, requiring a project to resubmit for new building permit applications significantly delays the overall processing time and may potentially cause a project to jeopardize its land use entitlement from City Planning due to expiration; and WHEREAS, new development on properties within the Coastal Zone also require the issuance of a Coastal Development Permit (“CDP”) from the California Coastal Commission during the City’s review process, and evidence of an approved CDP is required prior to the issuance of a building permit; and WHEREAS, approval of a CDP is a lengthy process that is often difficult to complete within the currently prescribed building permit application timeframe of one year; and

10.B.a
Packet Pg. 724 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 2 WHEREAS, many new development projects also include a housing component, which is of critical importance to the City and State of California; and WHEREAS, such housing development may also contain an associated tract map, which expires two years from its approval if a building permit is not issued and which may be extended up to six years pursuant to the Subdivision Map Act; and WHEREAS, to address the needs of the lengthy processing timelines associated with new development involving a CDP, and to consolidate the varying expiration dates associated with a project, City Council seeks to extend the building permit application date for projects in the Coastal Zone to three years from the date of filing a building permit application, or concurrent with the term of any vesting tentative map for the project if applicable.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Santa Monica Municipal Code Section 8.08.060 is hereby amended as follows:

8.08.060 Permit application.
(a) Application. To obtain a permit, the applicant shall first file an application in writing on a form furnished by the Building Officer for that purpose. Every such application shall identify and describe the work to be covered by the permit for which each application is made, the responsible party for the work and such other information that the Building Officer may require to show conformance to applicable laws and regulations. When an architect or engineer prepares or is required to prepare submittal documents, the application shall designate the architect and/or engineer of record.

10.B.a
Packet Pg. 725 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 3 (b) Submittal Documents. When required by the Building Officer, plans, specifications, engineering calculations, diagrams, soil investigation reports, sound tests, material tests, Construction Management Plans as required by Chapter 8.98 of this Code, special inspection and structural observation programs and other data shall be submitted with each application for a permit. When an architect or engineer does not prepare such plans, the Building Officer may require the applicant submitting such plans or other data to demonstrate that State law does not require that a licensed architect or engineer prepare the plans before accepting submittal documents or permit application.

Deferral of any submittal items shall require prior approval of the Building Officer.

If the Building Officer approves the deferral of submittals to a time after permit issuance, the approved plans shall list the deferred submittals. The deferred submittal items shall not be installed until the Building Officer has approved their design and submittal documents.
(c) Investigation. Whenever work for which a permit is required by this Chapter has been commenced without first obtaining a permit, a special investigation shall be made before a permit may be issued for such work when so ordered by the Building Officer.
(d) Information on Plans and Specifications. Plans and specifications shall be drawn to scale and shall be of sufficient clarity to indicate the location, nature and extent of the work proposed and show in detail that it will conform to the provisions of all relevant laws, ordinances, rules and regulations.
(e) Special Inspection and Structural Observation Program. When the Building Code requires special inspection and/or structural observation, the architect or

10.B.a
Packet Pg. 726 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 4 engineer of record shall prepare an inspection program which shall be submitted to the Building Officer for approval prior to issuance of the building permit. The inspection program shall designate the portions of the work to have special inspection, the name or names of the individuals or firms who are to perform the special inspections and indicate the duties of the special inspectors, including any required nondestructive testing.

The Building Officer, or when approved by the Building Officer, the owner, the engineer or architect of record, or an agent of the owner, but not the contractor or any other person responsible for the work, shall employ the special inspector. When structural observation is required, the inspection program shall name the individuals or firms who are to perform structural observation and describe the stages of construction at which structural observation is to occur. The inspection program shall include samples of inspection reports and provide time limits for submission of reports. (f) Preconstruction Meetings. The Building Officer may require the permit holder to participate in a preconstruction conference prior to the completion of plan review and permit issuance to review the plans and specifications for adequacy and sufficiency of details and conformance to building standards and interpretations. (g) Change of Architect or Engineer of Record. If the circumstances require, the owner may designate a substitute architect or engineer of record who shall perform all the duties required of the original architect or engineer of record. In such cases, the owner shall notify the Building Officer in writing if the architect or engineer of record is changed or is unable to continue to perform the duties. The architect or engineer of record shall be responsible for reviewing and coordinating all submittal documents prepared by others, including deferred submittal items, for compatibility with the design of the building.

10.B.a
Packet Pg. 727 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 5 (h) Expiration of Application for Permit.
(1) A permit application shall expire if no permit is issued within one year after the date the permit application is filed, except as provided below. (A) An application for a demolition permit for the demolition of residential buildings and structures, which are subject to the replacement project requirements of the City’s Zoning Ordinance, shall expire if no permit is issued within two years following the date the application is filed.
(B) An application for a permit for a project subject to the construction rate program of the City’s Zoning Ordinance shall not expire while that project remains on the waiting list for a building permit.
(C) An application for a demolition permit for a building or structure in which the original permit was issued more than forty years before the date of filing of the demolition permit application shall expire if no permit is issued within three years following the date the application is filed.
(D) An application for a project that requires a Coastal Development Permit shall expire if no building permit is issued within three years of the building permit application filing date; however, if the project includes an approved vesting tentative map, the permit application expiration date shall be extended to be concurrent with the term of the vesting tentative map for the project.
(2) No action may be taken on an application after expiration. Plans and other data submitted for review may thereafter be returned to the applicant or purged by the Building Officer. To obtain a permit, applicants shall submit a new application, new

10.B.a
Packet Pg. 728 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 6 submittal documents and pay a new plan review fee. All applicable standards in effect at the time of the new application shall then apply to the project. (i) Extensions. The Building Officer may grant one six-month extension of the one-year plan check time period set forth in subsection (h)(1) above, if the applicant demonstrates that:
(1) No changes have been made or will be made to the original plans and specifications except as required by the original plan review; and (2) No pertinent laws or ordinances have been amended subsequent to the date the original application was filed which would cause the development project at issue to be inconsistent with such amended provisions; and
(3) Any approvals granted under Article IX of the Municipal Code are still valid and have not expired; and
(4) Circumstances beyond the control of the applicant have prevented the permit from being issued in the authorized time period.

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

10.B.a
Packet Pg. 729 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) 7 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:
_______________________

DOUGLAS SLOAN
City Attorney

10.B.a
Packet Pg. 730 Attachment: Ordinance Amending SMMC 08.08.060(h) (5398 : Amendment to SMMC 8.08.060 Permit application) City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 10.C
1 of 2
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Second Reading and Adoption of an Ordinance to Amend the Text of the City's Ordinance Related to Economic Recovery in (1) the City's Downtown, Mixed Use and Commercial, Employment, Oceanfront, and Public and SemiPublic Districts, Excluding the Area Including and Immediately Adjacent to the Third Street Promenade; and (2) the Area Including and Immediately Adjacent to the Third Street Promenade
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

Executive Summary
At its meeting on October 11, 2022, the City Council introduced for first reading an Ordinance amending the text of the City's Ordinance related to economic recovery in (1) the City's Downtown, Mixed Use and Commercial, Employment, Oceanfront, and Public and Semi-Public Districts, excluding the area including and immediately adjacent to the Third Street Promenade; and (2) the area including and immediately adjacent to the Third Street Promenade. The ordinance is now presented to the City Council for adoption.

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Prepared By: Bradley Michaud, Legal Operations Coordinator Approved Forwarded to Council
Attachments:

A. CDD-Ord-Economic Recovery 2d

10.C
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1 City Council Meeting: October 25, 2022 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA TO AMEND THE TEXT OF THE CITY’S ZONING ORDINANCE RELATED TO ECONOMIC RECOVERY IN (1) THE CITY’S DOWNTOWN, MIXED USE AND COMMERCIAL, EMPLOYMENT, OCEANFRONT, AND PUBLIC AND SEMIPUBLIC DISTRICTS, EXCLUDING THE AREA INCLUDING AND IMMEDIATELY ADJACENT TO THE THIRD STREET PROMENADE; AND (2) THE AREA INCLUDING

AND IMMEDIATELY ADJACENT TO THE THIRD STREET PROMENADE
WHEREAS, on July 6, 2010, the City Council adopted the Land Use and Circulation Element of the City’s General Plan (“LUCE”) which designates the proposed general distribution, location and extent of land uses within the City; and WHEREAS, the City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”), became effective on July 24, 2015; and
WHEREAS, on July 25, 2017, the City Council adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of the Downtown as a high quality, mixeduse district offering opportunities for housing for people across the income spectrum, jobs, arts and culture, local serving retail and community and visitor gathering places; and WHEREAS, the DCP supports activities that enrich the Promenade, including street performances and events that enliven the street and provide memorable experiences for visitors, while also seeking to expand cultural opportunities including live music venues and upgraded state-of-the art cinemas; and

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Packet Pg. 733 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 2 WHEREAS, the DCP acknowledges that the Promenade is an essential component of the Downtown’s economic sustainability and emphasizes the importance of reevaluating and refreshing the Promenade so that it remains attractive and exciting to residents and visitors alike; and
WHEREAS, DCP Goal LU3 contemplates that the Downtown will continue to be the economic center for the City, providing a diverse and flexible mix of uses that can meet future resident, business and visitor demand; and
WHEREAS, the DCP incorporates the provisions of Ordinance Number 2384 (CCS), adopted by the City Council on December, 13, 2011 (“Ordinance 2384”), by allowing alternative fuel automobile/vehicle showrooms, subject to certain limitations; and WHEREAS, in 2018, the City and Downtown Santa Monica, Inc. (“DTSM”) commenced a planning effort, “Promenade 3.0”, to study the future of the Third Street Promenade, and subsequently convened a “Promenade 3.0 Task force” to provide advice to the planning effort; and
WHEREAS, the City, after receiving input from DTSM staff, property owners, leasing agents, and DTSM board members identified a variety of amendments to the City’s zoning ordinances to reduce or eliminate regulations that may impede or delay commencement of tenancies and business operations and increase opportunities for a variety of retail, restaurant, and service uses; and
WHEREAS, the Promenade 3.0 planning effort was organized into three “lanes” of activities, with “Lane 2” focusing on the evaluation of regulatory changes to private property to encourage diverse and engaging businesses; and

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Packet Pg. 734 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 3 WHEREAS, in Spring 2019, City and DTSM staff identified a number of potential revisions to regulations and process that fell within the “Lane 2” category, which included modifications to zoning to increase opportunities for nightlife and entertainment, provide flexibility to divide spaces and change uses to better meet market conditions, and improve the function of alleys, outdoor dining areas, and other ancillary spaces; and WHEREAS, at a Promenade 3.0 study session on November 5, 2019, City Council responded positively to fostering the development of nightlife, cultural, and entertainment uses that encourage patronage of physical establishments and increase pedestrian activity on the Promenade at alternate times of day, supporting private property owners in adapting their spaces to an evolving retail environment and selecting tenants that present the Promenade as unique in the landscape of competitive regional destinations, and delegating review authority to City staff and otherwise codifying adaptability and flexibility to allow for nimble and efficient re-tenanting of vacancies as retail concepts continue to evolve; and
WHEREAS, on March 13, 2020, the City Manager, in his role as the Director of Emergency Services, (“Director of Emergency Services”) proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability of mutual aid and an effective the City’s response to the novel coronavirus (“COVID-19”) and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency to ensure compliance with all digital signature requirements (the “Executive Order”); and
WHEREAS, on March 16, 2020 the Director of Emergency Services issued a Third Supplement to the Executive Order, requiring the closure of a wide range of businesses

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Packet Pg. 735 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 4 including bars, nightclubs, on-premises restaurant service, movie theatres, live performance venues, gyms, fitness centers, spas, hair salons, massage parlors, and nail salons; and
WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued Executive Order N-33-20 directing all residents of the State of California to heed directives issued by the State Health Officer on the same date instructing all Californians to stay home except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and
WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its earlier March 16, 2020, Order, closing all nonessential businesses, and limiting gatherings to 9 people or less; and WHEREAS, since March 19, 2020, the Los Angeles County Department of Public Health, on multiple occasions, amended and modified its Health Officer Order, including on October 14, 2020, issuing a revised Health Officer Order, Reopening Safer at Work and in the Community for Control of COVID-19, recognizing the issues posed by existing community transmission of COVID-19 in Los Angeles County, and in response maintaining public health measures that have, at differing times, included strict limitations on public gatherings, required closures of certain businesses, and strict limitations and protocols for the operations of businesses permitted to remain open; and WHEREAS, the economic impacts of the COVID-19 closures of and limitations on businesses have been devastating to the local Santa Monica economy; and

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Packet Pg. 736 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 5 WHEREAS, the hardest hit sectors in Santa Monica include retail and arts/entertainment/leisure, initially representing the temporary closure of over approximately 1,300 businesses employing approximately 11,000 people; and WHEREAS, the City’s business improvement districts have reported that at least 70 small businesses have permanently closed across many sectors, including retail, leisure, and restaurants; and
WHEREAS, some of the actions that the City has taken during this state of emergency to support local business are: commercial eviction protections; suspension of late fees for City-imposed bills and taxes and parking restrictions in green zones; a website with business resources; and assistance for restaurants and food retailers by allowing sales of alcohol via delivery and takeout, providing flexibility for restaurants to sell groceries, and allowing curbside pickup; and
WHEREAS, the City is also building upon the existing Buy Local program and providing free marketing support through an interactive map showing available essential services providers that are open providing an avenue for Santa Monica residents to support local businesses; and
WHEREAS, on April 14, 2020, the City Council directed that restructuring city services be prioritized on foundational services, emergency response, and economic recovery; and
WHEREAS, the City has continued to engage in an economic recovery strategy involving a multi-pronged approach focusing on five areas: business retention and reopening; business process and permitting; publicity and marketing, community

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Packet Pg. 737 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 6 economic development, re-employment, and local hiring; and federal and state resources; and
WHEREAS, the Promenade’s past success has resulted from the creation of an authentic urban retail, dining, and cinema experience; and WHEREAS, as the commercial and economic landscape evolves, the Promenade’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of unique dining, retail, and entertainment uses; and WHEREAS, it will facilitate economic recovery of the Promenade to extend to the area surrounding the Promenade that is bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north (the “Third Street Promenade Area”), regulatory relief consistent with that provided to the Promenade, including in particular increased flexibility in use for alleys adjacent to the Promenade; and
WHEREAS, remaining portions of the BC (2nd & 4th Street) District are in closer proximity to more concentrated residential uses and the proposed relaxed restrictions could intrude on those uses; and
WHEREAS, on May 12, 2020, the City Council adopted Emergency Interim Zoning Ordinance Number 2637 (CCS) (“Interim Zoning Ordinance 2637”), which established interim zoning regulations to provide immediate relief and regulatory certainty for businesses citywide, excluding the Third Street Promenade Area by taking initial steps towards economic recovery (“citywide interim zoning regulations”) that included:
modifying alcohol exemption conditions in order to streamline process for alcohol service and provide flexibility in operations for eating establishments; relaxing standards related

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Packet Pg. 738 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 7 to legal, nonconforming retail and restaurant uses; relaxing requirements to provide additional parking and new loading spaces for changes of use in existing tenant spaces; eliminating the requirement for Conditional Use Permits for restaurants only due to size; and removing the inflexibility caused by a cap of no more than 5 persons allowed for small yoga studios and gyms; and
WHEREAS, on November 10, 2020, the City Council adopted Emergency Interim Zoning Ordinance Number 2657 (CCS) (“Interim Zoning Ordinance 2657”) to: amend the citywide interim zoning regulations to relax standards for alcohol exemptions for businesses located on the Santa Monica Pier for consistency with businesses in the Third Street Promenade Area and extend the interim zoning regulations to December 31, 2022; and
WHEREAS, on May 12, 2020, the City Council adopted Emergency Interim Zoning Ordinance Number 2636 (CCS) (“Interim Zoning Ordinance 2636”), which established interim zoning regulations to provide immediate relief and regulatory certainty for businesses in the Third Street Promenade Area (the “Promenade interim zoning regulations”) by taking initial steps towards economic recovery that included: minor modifications to land use regulations to provide additional business opportunities and increased flexibility for existing businesses; eliminating the requirement of a Conditional Use Permit for the conversion of eating and drinking establishments to other uses; easing standards related to legal, nonconforming restaurant and retail uses; relaxing Alcohol Exemption conditions and processes; and allowing for alternate compliance with loading standards; and

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Packet Pg. 739 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 8 WHEREAS, on November 10, 2020, the City Council adopted Emergency Interim Zoning Ordinance Number 2658 (CCS) (“Interim Zoning Ordinance 2658”), which amended the Promenade interim zoning regulations to expand eligibility for alternate compliance with loading standards and extend the term of the Promenade interim zoning regulations to December 31, 2022 to allow for additional testing and monitoring of their efficacy and to facilitate the continued economic recovery of local businesses; and WHEREAS, on April 13, 2021, the City Council adopted Emergency Interim Zoning Ordinance 2667, making minor changes, corrections and clarifications to the Promenade interim zoning regulations to: remove the limitation on physical training uses to upper floors and on the ground floor only when the entire tenant space is located at least 50 feet from the front property line along the Promenade within the BC (Promenade) District; clarify that fortunetelling and large scale facilities are permitted, except that large scale facilities operating as fitness centers that exceed 100 linear feet of ground floor frontage must obtain approval by Conditional Use Permit; and incorporate changes made by Ordinance No. 2649 to permit ADUs and JADUs, and Ordinance No. 2661 to prohibit certain fast food restaurants in establishments with frontage along the Third Street Promenade; and
WHEREAS, on or about July 27, 2021, DTSM published a final draft Third Street Promenade Stabilization and Economic Vitality Plan (the “Promenade Vitality Plan”), which sets forth short-term and medium-term recommendations for zoning and regulatory changes designed to provide immediate relief and promote the long-term stabilization and economic vitality of the Promenade; and

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Packet Pg. 740 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 9 WHEREAS, the Plan’s short-term recommendations call for the City to permit additional uses on the Promenade, streamline approval processes for certain uses already allowed on the Promenade by minimizing applicability of Minor Use Permits and Conditional Use Permits, and increase flexibility in development standards for tenant spaces; and
WHEREAS, on August 4, 2021, the Planning Commission reviewed and made recommendations to the City Council on the Promenade Vitality Plan, which, among other things, included support for the proposed short-term changes to permit additional uses, reduce the applicability of discretionary permits, and increase flexibility in development standards; and
WHEREAS, on September 28, 2021, the City Council adopted emergency Interim Zoning Ordinance Number 2682 (CCS) to incorporate the short-term recommendations of the Promenade Vitality Plan into the Promenade interim zoning regulations and to further reduce the applicability of discretionary approvals along the Promenade; and WHEREAS, the ongoing COVID-19 pandemic and subsequent economic recovery has been difficult for many segments of the economy, even in light of economic efforts that are currently underway, the Downtown area is experiencing economic uncertainty, with the vacancy rate along the Promenade recently rising to almost 25%; and WHEREAS, as retail environments across the region and country continue to evolve and recover from the impacts of the COVID-19 pandemic, there is a need to adjust allowed uses and activities to enable economic recovery and provide increased flexibility to minimize vacancies along the Promenade and immediately surrounding areas; and

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Packet Pg. 741 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 10 WHEREAS, since the adoption of Ordinance 2384 in 2011, the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles has increased rapidly, with many manufacturers announcing plans to electrify large portions of their fleets over the next decade; and WHEREAS, on January 25, 2022, the City Council adopted emergency Interim Zoning Ordinance Number 2690 (CCS) to amend the Promenade interim zoning regulations to permit up to six automobile/vehicle showrooms in the Third Street Promenade Area for automobiles/vehicles of any fuel type; and WHEREAS, as the City continues to provide support to local businesses and promote business opportunities Citywide, the interim zoning regulations have shown to be successful in the City’s overall economic recovery efforts; and WHEREAS, the City has an important government interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and
WHEREAS, the ongoing COVID-19 pandemic and subsequent economic recovery has been difficult for many segments of the economy, even in light of economic efforts that are currently underway; and
WHEREAS, as the City continues to provide support to local businesses and promote business opportunities Citywide, the interim zoning regulations have shown to be successful in the City’s overall economic recovery efforts; and WHEREAS, on April 20, 2022, the Planning Commission adopted a Resolution of Intention, Resolution Number 22-008 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend text of the Zoning

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Packet Pg. 742 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 11 Ordinance related to economic recovery in the City’s Downtown, Mixed-Use and Commercial, Employment, Oceanfront and Public and Semi-Public Districts, excluding the area including and immediately adjacent to the Third Street Promenade and a Resolution of Intention, Resolution Number 22-009 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend text of the Zoning Ordinance related to economic recovery in the Third Street Promenade Area; and WHEREAS, on August 17, 2022, the Planning Commission conducted a duly noticed public hearing, and, after considering oral and written testimony regarding the proposed amendments to the text of the Zoning Ordinance, adopted Resolution Number 22-013 (PCS), recommending that the City Council amend the text of the Zoning Ordinance economic recovery in the City’s Downtown, Mixed-Use and Commercial, Employment, Oceanfront and Public and Semi-Public Districts, excluding the Third Street Promenade Area, and Resolution Number 22-014 (PCS) related to economic recovery in the Third Street Promenade Area based on the following findings:

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Packet Pg. 743 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 12 opportunities citywide, addressing needs of the business community and residents. In addition, Policy LU13.4 seeks to reduce regulatory costs on small businesses and for the City to continue exploring ways to streamline the approval process for new and existing businesses. Accordingly, the proposed amendments support small businesses by simplifying land use standards and streamlining review procedures.

The proposed amendments are consistent with the Downtown Community Plan Goal LU3 which states that the Downtown continues to be the economic center for the City, providing a diverse and flexible mix of uses that can meet future resident, business, and visitor demand in that the proposed land use changes include simplified land use standards and streamlined review procedures to encourage and incentivize business reopening in the Third Street Promenade Area.

2. The proposed amendments to the text of the Zoning
Ordinance are consistent with the purpose of the Zoning Ordinance to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, and general welfare in that proposed amendments will provide continued support necessary for the City’s business retention and economic recovery efforts following the current Pandemic.

WHEREAS, the Planning Commission conducted a duly noticed public hearing on October 21, 2020, and, after considering oral and written testimony regarding the proposed amendments to the text of the Zoning Ordinance, adopted Resolution Number

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Packet Pg. 744 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 13 20-017 (PCS), recommending that the City Council amend the text of the Zoning Ordinance to prohibit certain fast food restaurants in establishments with frontage on the Third Street Promenade based on the following findings:

1. The proposed amendments to the text of the Zoning
Ordinance are consistent with the General Plan in that the amendments implement the LUCE policies to adapt to changing conditions and to support small businesses. Specifically, Goal LU9 states to actively monitor and manage land use changes to address community needs, promote citywide sustainability and ensure community livability. In response to the Pandemic, the City’s economic recovery efforts seek to support and allow businesses to adapt to the current health and safety conditions. The proposed Zoning amendments support local business retention and promotes new business opportunities citywide, addressing needs of the business community and residents. In addition, Policy LU13.4 seeks to reduce regulatory costs on small businesses and for the City to continue exploring ways to streamline the approval process for new and existing businesses. Accordingly, the proposed amendments support small businesses by simplifying land use standards and streamlining review procedures.

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Packet Pg. 745 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 14 streamlined review procedures to encourage and incentivize business reopening in the Third Street Promenade Area.

WHEREAS, on October 11, 2022, the City Council conducted a duly noticed hearing to consider the findings and recommendations of the Planning Commission, and desires to adopt the proposed Zoning Ordinance amendments as set forth below.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Based upon the oral and written testimony presented to the City Council at the public hearing on October 11, 2022 regarding the proposed changes to the text of the Zoning Ordinance, the City Council hereby makes the following findings:

1. The proposed amendments to the text of the Zoning
Ordinance are consistent with the General Plan and any applicable Specific Plans in that they will support Downtown’s role as a visitor destination by encouraging uses that appeal to both locals and tourists, including food, retail, entertainment and overnight accommodations and will maintain and

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Packet Pg. 746 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 15 increase locally-based, independent, small retailers that allow residents and employees to meet their daily needs on foot.

2. The proposed amendments to the text of the Zoning
Ordinance are consistent with the purpose of the Zoning Ordinance to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, and general welfare in that the amendments will protect the unique character of the Third Street Promenade, reduce waste generated by disposable tableware and packaging, and allow for planning efforts for the future of the Promenade to continue.

Section 2. Santa Monica Municipal Code Section 9.04.080 is hereby amended to read as follows:

9.04.080 Determining Floor Area
The floor area of a building is the total gross horizontal areas of all floors of a building, including usable basements and all other areas measured from the interior face of the exterior walls or, in the case of a shared wall, from the centerline of a wall separating the 2 buildings. Floor area also includes unenclosed decks, balconies, porches, and platforms used for commercial or restaurant activity. In addition to calculating floor area ratio, floor area shall be used to determine parking requirements and all relevant impact fees, including, but not limited to, affordable housing fees, transportation impact fees, childcare linkage fees, cultural arts fees, and parks and recreation fees.

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Packet Pg. 747 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 16 A. Included in Floor Area. Floor area is deemed to include:

1. The actual floor space of all habitable rooms on all levels and mezzanines, interior balconies, lofts, and closets;

2. Restrooms, lounges, lobbies, kitchens, storage areas, and interior hallways and corridors;

3. Portions of basements that meet Building Code requirements for habitable space;

4. Enclosed and roofed porches and balconies;

5. Interior courtyards, atria, paseos, walkways and corridors that are fully enclosed;

6. Storage and equipment spaces that are roofed and enclosed on all sides; and

7. Covered parking at or above grade.

B. Excluded from Floor Area. Floor area does not include:

1. Stairways and stairwells;

2. Elevators, elevator equipment rooms, and elevator shafts;

3. Ramps to a subterranean or semi-subterranean parking structure or ramps between floors of a parking structure provided the ramp does not accommodate parking;

4. Loading spaces and docks used exclusively for loading and unloading as required by Section 9.28.080;

5. Unenclosed decks, balconies, porches, and platforms not used for commercial or restaurant activity;

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Packet Pg. 748 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 17 6. In the Third Street Promenade Area, unenclosed rooftop areas used for commercial or restaurant activity (“unenclosed rooftop areas”), subject to the following specific standards:
a. Unenclosed rooftop areas shall be surrounded by a barrier not to exceed 42 inches in height with an allowable transparent barrier not to exceed 42 inches in height. The barrier shall be permanently affixed to the rooftop; b. Unenclosed rooftop areas, including barrier, shall be set back a minimum five feet from the edges of the building;
c. Portable restrooms, storage sheds, or other similar temporary structures shall not be permitted on the rooftop;
d. Rooftop features such as sunshades, trellises, or canopies shall not exceed 10 feet in height with a maximum aggregate coverage of 50% of the unenclosed rooftop area;
e. Unenclosed rooftop areas shall not be accessible to the public outside of their normal business operating hours.

7. Covered and uncovered courtyards, arcades, atria, paseos, walkways, and corridors located at or near the street level and are accessible to the general public provided they are not used as sales, display, storage, service, or production areas;

8. Parking areas located below finished grade or finished floor of habitable space where the vertical distance between finished grade and finished floor is 5 feet or less;

9. Semi-subterranean parking areas that meet the following criteria:

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Packet Pg. 749 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 18 a. The parking area is located below finished grade along a minimum of one street frontage,
b. The portions of the parking area located above finished grade are a result of the site’s slope and cannot feasibly be fully subterranean due to geological or physical site constraints, and
c. The facades of any of the visible portions of the parking area located above finished grade are appropriately treated and landscaped;

10. Mechanical equipment rooms, electrical rooms, telecommunication equipment rooms, and similar space located below grade;

11. Enclosures constructed pursuant to Section 9.31.060, Automobile Repair, Major and Minor, for outdoor hoists in existence on the adoption of Ordinance Number 1452 (CCS);

12. Attics;

13. Accessory dwelling units and junior accessory dwelling units established in accordance with Section 9.31.025.

Section 3. Santa Monica Municipal Code Section 9.04.090 is hereby amended to read as follows:

9.04.090 Determining Floor Area Ratio
Floor Area Ratio (FAR) is the ratio of the floor area, excluding the areas described below, of all principal and accessory buildings on a site to the site area. To calculate FAR, floor area is divided by site area, and typically expressed as a decimal. For example, if the floor area of all buildings on a site totals 20,000 square feet, and the site area is 10,000 square feet, the FAR is expressed as 2.0. For parcels containing one or more zoning

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Packet Pg. 750 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 19 designations, only that portion zoned for commercial or industrial use shall be used as parcel area when calculating floor area ratio.

A. Floor Area Ratio Exclusions

1. Floor area devoted to basements.

2. Unenclosed decks, balconies, porches, plazas, outdoor dining areas provided the dining areas have no more than a 42-inch high barrier surrounding the dining area and is visible from the public right-of-way, and other open spaces.

3. In the Third Street Promenade Area, unenclosed rooftop areas used for commercial or restaurant activity (“unenclosed rooftop areas”), subject to the following specific standards:
a. Unenclosed rooftop areas shall be surrounded by a barrier not to exceed 42 inches in height with an allowable transparent barrier not to exceed 42 inches in height. The barrier shall be permanently affixed to the rooftop; b. Unenclosed rooftop areas, including barrier, shall be set back a minimum five feet from the edges of the building;
c. Portable restrooms, storage sheds, or other similar temporary structures shall not be permitted on the rooftop;
d. Rooftop features such as sunshades, trellises, or canopies shall not exceed 10 feet in height with a maximum aggregate coverage of 50% of the unenclosed rooftop area;
e. Unenclosed rooftop areas shall not be accessible to the public outside of their normal business operating hours.

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Packet Pg. 751 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 20 Section 4. Santa Monica Municipal Code Section 9.10.040 is hereby amended to read as follows:

9.10.040 Land Use Regulations
Table 9.10.040 prescribes the land use regulations for Downtown Districts. The regulations for each district are established by letter designations below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review.
“P” designates permitted uses.
“L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.
“MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.
“CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
“—” designates uses that are not permitted.

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Packet Pg. 752 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 21 Land uses are defined in Chapter 9.51 (“Use Classifications”) of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”). Use classifications and sub-classifications not listed in the table are prohibited. Accessory uses are permissible when they are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal uses and which are consistent and not more disturbing or disruptive than permitted uses. The table also notes additional use regulations that apply to various uses. Section numbers in the right-hand column refer to other Sections of this Ordinance.

TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS
Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
Residential Uses
Residential Housing Types See sub-classifications below.

Single Unit Dwelling L(1) L(1) L(1) L(1) L(1) L(1) L(1) Accessory Dwelling Unit P P P P P P P
Section 9.31.025
Accessory Dwelling
Units and Junior
Accessory Dwelling
Units
Junior Accessory Dwelling
Unit P P P P P P P
Section 9.31.025
Accessory Dwelling
Units and Junior
Accessory Dwelling
Units
Duplex P L(3) L(1) L(1) L(1) L(1) L(1)
Multiple-Unit Structure L(1) L(3) L(1) L(1) L(1) L(1) L(1) Senior Citizen Multiple-Unit
Residential L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Single-Room Occupancy
Housing L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Group Residential MUP MUP,
L(3) MUP, L(1) MUP, L(1) MUP MUP MUP
Congregate Housing P MUP,
L(3) L(1) CUP, L(1) MUP MUP MUP
Section 9.31.110,
Congregate and
Transitional
Housing
Senior Group Residential P MUP,
L(3) MUP, L(1) MUP, L(1) MUP, L(1)
MUP,
L(1)
MUP,
L(1)
Section 9.31.310,
Senior Group
Residential
Elderly and Long-Term
Care P L(3) L(1) L(1) L(1) L(1) L(1)
Emergency Shelters L(6)/CUP L(6)/
CUP CUP/L(1) L(1), L(6)/CUP
L(6)/
CUP
L(6)/
CUP
L(6)/
CUP
Family Day Care See sub-classifications below.

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Packet Pg. 753 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 22 TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
Large L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Section 9.31.140,
Family Day Care,
Large
Small L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Residential Facilities See sub-classifications below.

Residential Care, General P L(3) L(1) L(1) P L(1) L(1)
Section 9.31.270,
Residential Care
Facilities
Residential Care, Limited P L(3) L(1) L(1) P L(1) L(1)
Residential Care, Senior P L(3) L(1) L(1) P L(1) L(1)
Hospice, General P L(3) L(1) L(1) P L(1) L(1)
Hospice, Limited P L(3) L(1) L(1) P L(1) L(1)
Supportive Housing P L(3) L(1) L(1) L(1) L(1) L(1)
Transitional Housing P L(3) L(1) L(1) L(1) L(1) L(1)
Public and Semi-Public Uses
Adult Day Care L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Child Care and Early
Education Facilities P P P P P P P
Section 9.31.120,
Child Care and
Early Education
Facilities
Colleges and Trade Schools,
Public or Private CUP L(1) L(1) L(1) L(1) L(1) L(1)
Community Assembly L(7)/CUP CUP L(15) P CUP L(1) L(7)/
CUP
Community Gardens P P - P P P P
Cultural Facilities P P P P P P P
Hospitals and Clinics P P L(1) L(1) P - P
Park and Recreation Facilities,
Public P P P P P P P
Public Safety Facilities P P P P P P P
Schools, Public or Private CUP L(3) L(1) P P - CUP
Social Service Centers P P - P P P P
Section 9.31.350,
Social Service
Centers
Commercial Uses
Animal Care, Sales, and
Services See sub-classifications below.

Grooming and Pet Stores L(5)/CUP L(5)/CU
P P L(5)/CUP L(5)/ CUP
L(5)/
CUP
L(5)/
CUP
No more than 10
dogs or cats can be
kept overnight
Pet Day Care Services MUP MUP - MUP MUP MUP MUP
Veterinary Services MUP MUP - MUP MUP - MUP
Automobile/Vehicle Sales and
Service See sub-classifications below.

Alternative Fuels and
Recharging Facilities
CUP/
L(19)
CUP/
L(19) - -
CUP/
L(19) - -
Automobile Rental L(10) L(10) L(10) L(10) L(10) L(10) L(10) Automobile Storage Use - - - - - - -
New Automobile/Vehicle
Sales and Leasing
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/
CUP
- -
Additions 7,500 sq ft or
less to Automobile/
Vehicle Sales and
Leasing buildings
existing as of 7/06/2010
L(20)/
MUP
- - - - - -
Section 9.31.070
Automobile/Vehicle
Sales, Leasing, and
Storage
Additions larger than
7,500 sq ft to
L(20)/
CUP
- - - - - -

10.C.a
Packet Pg. 754 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 23 TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
Automobile/Vehicle Sales
and Leasing buildings
existing as of 7/06/2010
Automobile/Vehicle Repair,
Major
L(19) - - - - - -
Automobile/Vehicle Service
and Repair, Minor
L(19) - - - - - -
Automobile/Vehicle
Washing
L(19) - - - - - -
Service Station L(19) L(19) - - L(19) - -
Towing and Impound - - - - - - -
Banks and Financial
Institutions
See sub-classifications below.

Banks and Credit Unions L(4)/CUP L(3),
L(5)/CUP
- - L(4)/
CUP
L(4)/
CUP
L(4)/
CUP
Check Cashing Businesses - - - - - - -
Business Services L(5)/CUP L(5)/CUP L(15) L(5)/CUP L(5)/ CUP
L(5)/
CUP
L(5)/
CUP
Commercial Entertainment and
Recreation See sub-classifications below.

Cinemas & Theaters, up to
99 seats
- CUP P P P - -
Cinemas & Theaters, more
than 99 seats
- - P CUP CUP - -
Convention and Conference
Centers

CUP CUP P CUP CUP CUP CUP
Large-Scale Facility L(21)/
CUP
L(21)/
CUP
L(21)/CUP L(21)/ CUP L(21)
/ CUP
L(21)/
CUP
-
Small-Scale Facility L(5)/CUP L(5)/CUP L(5)/CUP L(5)/CUP L(5)/ CUP
L(5)/
CUP
L(5)/
CUP
Section 9.31.340
Small Scale Facility
Fortunetelling P P P P P P P
Eating and Drinking
Establishments See sub-classifications below.

Bars/Nightclubs/Lounges CUP CUP CUP CUP CUP CUP(10
)
-
Restaurants, Full-Service,
Limited Service & Take-Out
(2,500 sq ft and smaller,
including Outdoor Dining
and Seating)
P P L(22) P P P P Section 9.31.040,
Alcoholic Beverage
Sales
Restaurants, Full-Service,
Limited Service & Take-Out
(2,501 – 5,000 sq ft,
including Outdoor Dining
and Seating)
P P L(22) P P P P Section 9.31.280,
Restaurants, Limited
Service, and TakeOut Only
Restaurants, Full-Service,
Limited Service & Take-Out
(greater than 5,000 sq ft,
including Outdoor Dining
and Seating)
Food Hall (up to 175 seats)
CUP
CUP
P
CUP
L(22)
P
P
CUP
P
CUP
P
CUP
CUP
CUP
Section 9.31.200,
Outdoor Dining and
Seating
Equipment Rental - - - - L(5)/ - -

10.C.a
Packet Pg. 755 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 24 TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
CUP
Food and Beverage Sales See sub-classifications below.

Convenience Market CUP L(5)/CUP L(5)/CUP L(5)/CUP L(5)/ CUP
L(5)/
CUP
- Section 9.31.040,
Alcoholic Beverage
Sales
Farmer’s Market CUP P P P P P P
General Market L(12)/
CUP
L(12)/
CUP
L(12)/
CUP
L(12)/ CUP L(12)
/
CUP
L(12)/
CUP
L(12)
/ CUP
Section 9.31.040,
Alcoholic Beverage
Sales
Liquor Stores CUP CUP P CUP CUP CUP -
Funeral Parlors and Mortuaries CUP - - - - - -
Instructional Services L(5)/CUP L(3),
L(5)/CUP
L(1),
L(5)/CUP
L(5)/CUP L(5)/
CUP
L(1),
L(5)/
CUP
L(1),
L(5)/
CUP
Live-Work L(13) L(3)(13) L(1)(13) L(13) L(13) L(1)(13) L(13) Section 9.31.170, Live-Work Units
Lodging See sub-classifications below.

Bed and Breakfast MUP MUP P MUP MUP MUP MUP Section 9.31.090, Bed and Breakfasts
Hotels and Motels CUP CUP P CUP CUP CUP CUP,
L(19)
Maintenance and Repair
Services
L(5)/CUP - - - - - -
Nurseries and Garden Centers L(5)/CUP L(5)/CUP - L(5)/CUP L(5)/ CUP
- L(5)/
CUP
Section 9.31.220,
Outdoor Retail
Display and Sales
Offices See sub-classifications below.

Business and Professional L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Creative L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Medical and Dental L(14)/
CUP
L(3),
L(5)/CUP
P L(1) L(3),
L(5)/
CUP
L(1) L(1)
Walk-In Clientele L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(5)/CUP L(3),
L(5)/
CUP
L(5)/
CUP
L(5)/
CUP
Outdoor Newsstands MUP MUP MUP MUP MUP MUP MUP Section 9.31.210, Outdoor Newsstands
Parking, Public or Private CUP CUP - CUP CUP,
L(11)
- CUP
Personal Services See sub-classifications below.

General Personal Services L(5)/CUP L(5)/CUP P L(5)/CUP L(5)/ CUP
- L(5)/
CUP
Section 9.31.230,
Personal Service
Physical Training L(17),
L(5)/CUP
L(17),
L(5)/CUP
L(17),
L(21)/CU
P
L(17),
L(5)/CUP
L(17)
,
L(5)/
CUP
L(17),
L(5)/
CUP
L(17),
L(5)/
CUP
Tattoo or Body Modification
Parlor
MUP MUP P MUP MUP MUP - Section 9.31.230,
Personal Service
Retail Sales See sub-classifications below.

Building Materials Sales
and Services
P - - - - - - Section 9.31.220,
Outdoor Retail
Display and Sales General Retail Sales, SmallScale
L(5)/CUP L(5)/CUP P L(5)/CUP L(5)/
CUP
L(5)/
CUP
L(5)/
CUP

10.C.a
Packet Pg. 756 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 25 TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
General Retail Sales,
Medium-Scale

CUP CUP P CUP CUP - CUP
General Retail Sales, LargeScale- - - - - - -
Medical Marijuana
Dispensaries
CUP - - - - - - Section 9.31.185,
Medical Marijuana
Dispensaries
Pawn Shops - - - - - - -
Swap Meets - - - - - - -
Industrial Uses
Artist’s Studio P P L(2) L(1) P P P
Commercial Kitchens
Industry, Limited
-
-
-
-
-
L(2),
L(23)
-
-
CUP
-
-
-
-
-
Media Production See sub-classifications below.

Support Facilities L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Transportation, Communication, and Utilities Uses
Bus/Rail Passenger Stations P P P P P - P
City Bike Share Facility P P P P P P P
Communication Facilities See sub-classifications below.

Antennas and Transmission
Towers
- - - - - - -
Equipment within Buildings - - - - - - -
Light Fleet-Based Services - - - - MUP - -
Utilities, Major L(18) - - - - - -
Utilities, Minor P P P P P P P
Specific Limitations:
(1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only. (2) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, exhibitions, displays, demonstrations, or instruction. (3) Between 4th and 4th Court, permitted in mid-block parcels on the ground floor and upper floors. On all other parcels, permitted anywhere on the ground floor if the space has street frontage and was occupied by office on, or is vacant but was occupied by office in the 12 months preceding, the date this Ordinance is effective; otherwise, permitted on upper floors and on the ground floor where the entire tenant space including the primary entry is located at least 50 feet from the front property line.
(4) Permitted except no ground floor tenant space shall exceed 20 linear feet of ground floor street frontage without a Conditional Use Permit.
(5) Permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective. Permitted in new buildings, except:
(a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit. (b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations. (6) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds.
(7) Any community assembly facility abutting a residential district shall require approval of a Conditional Use Permit. (8) Limited to automobile/vehicle dealer showrooms only which must display one alternative fuel automobile/vehicle if such an automobile/vehicle is available in the dealer’s fleet, and limited to six showrooms in the Third Street Promenade Area. (9) (Reserved)
(10) Permitted as an ancillary use to support a primary use.

10.C.a
Packet Pg. 757 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 26 TABLE 9.10.040 LAND USE REGULATIONS—DOWNTOWN DISTRICTS Use Classification LT NV
BC
(Promenade)
and Third
Street
Promenade
Area in BC
(2nd & 4th
Streets)
BC (2nd &
4th Streets)
Excluding
Third Street
Promenade
Area in BC
(2nd and 4th
Streets) TA OT WT
Additional
Regulations
(11) Limited to public parking facilities only.
(12) General markets greater than 15,000 square feet require approval of a Conditional Use Permit, except general markets in the Mixed-Use Boulevard district greater than 25,000 square feet require approval of a Conditional Use Permit. (13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41.

Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from users that generate airborne particulates in a unit with an unenclosed kitchen. (14) All new construction requires approval of a Conditional Use Permit or permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective, except:
(a) New additions of 50% or more additional square footage to an existing building at any one time, or incrementally, after the effective date of the ordinance codified in this Chapter, requires approval of a Conditional Use Permit. (b) No ground floor, street-fronting, non-office or non-media production support facility use, non-medical or non-dental office use tenant space shall be changed into an individual office use or a media production support facility use, or individual medical or dental office use occupying more than 7,500 square feet of floor area and/or exceeding 50 linear feet of street frontage without the approval of a Conditional Use Permit. (15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors. (16) Limited to public parking facilities only.
(17) Youth-serving personal services, physical training requires review and approval of passenger loading and drop-off plan by the Director.
(18) Limited to electric distribution substations.
(19) Limited to legally established existing uses as of the date this Specific Plan is effective. (20) Auto dealerships existing as of July 6, 2010 are considered permitted uses. Expansions to existing dealerships conforming to the urban auto dealership format standards in Section 9.31.070, Automobile/Vehicle Sales, Leasing and Storage are permitted. Expansions to existing dealerships of 7,500 square feet or less that do not conform to the urban auto dealership format standards shall require an MUP. Expansions to existing dealerships larger than 7,500 square feet that do not conform to the urban auto dealership formal standards shall require a CUP. (21) No individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit.
(22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited:
(a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and
(b) Characteristics, including but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. (23) Excludes commercial laundries and dry cleaning plants, monument works, medicinal cannabis, and medicinal cannabis products.

Section 5. Santa Monica Municipal Code Section 9.11.020 is hereby amended to read as follows:

9.11.020 Land Use Regulations
Table 9.11.020 prescribes the land use regulations for Mixed-Use and Commercial Districts. The regulations for each district are established by letter designations below.

10.C.a
Packet Pg. 758 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 27 These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review. “P” designates permitted uses.
“L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.
“MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.
“CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
“—” designates uses that are not permitted.

Land uses are defined in Chapter 9.51 (“Use Classifications”) of Article 9 of the Santa Monica Municipal code (“Zoning Ordinance”). Use classifications and sub-classifications not listed in the table are prohibited. Accessory uses are permissible when they are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal uses and which are consistent and not more disturbing or disruptive than permitted uses. The table also notes additional use regulations that apply to various uses. Section numbers in the right-hand column refer to other Sections of this Ordinance.

TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations Residential Uses
Residential Housing Types See sub-classifications below.

Single Unit Dwelling P P P P
Accessory Dwelling Unit P P P P
Section 9.31.025, Accessory
Dwelling Units and Junior
Accessory Dwelling Units
Junior Accessory Dwelling Unit P P P p
Section 9.31.025, Accessory
Dwelling Units and Junior
Accessory Dwelling Units

10.C.a
Packet Pg. 759 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 28 TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations Duplex P P P P
Multiple-Unit Structure P P P P
Senior Citizen Multiple-Unit Residential P P P P
Single-Room Occupancy Housing P P P P
Group Residential MUP MUP MUP MUP
Congregate Housing P P P P
Senior Group Residential P P P P Section 9.31.310, Senior Group Residential
Elderly and Long-Term Care P P P –
Emergency Shelters L(3)/CUP L(3)/CUP L(3)/CUP L(3)/CUP Section 9.31.130, Emergency Shelters
Family Day Care See sub-classifications below.

Large P P P P Section 9.31.140, Family Day
Care, Large
Small P P P P
Residential Facilities See sub-classifications below.

Residential Care, General P P P P Section 9.31.270, Residential Care Facilities
Residential Care, Limited P P P P Section 9.31.270, Residential Care Facilities
Residential Care, Senior P P P P Section 9.31.270, Residential Care Facilities
Hospice, General P P P P
Hospice, Limited P P P P
Supportive Housing P P P P
Transitional Housing P P P P
Public and Semi-Public Uses
Adult Day Care P P P L(2)/CUP
Child Care and Early Education Facilities P P P L(2)/CUP Section 9.31.120, Child Care and Early Education Facilities
Colleges and Trade Schools, Public or Private CUP CUP P CUP Community Assembly L(18)/CUP L(18)/CUP L(18)/CUP L(18)/CUP Community Gardens P P P P
Cultural Facilities P P P L(2)/CUP
Hospitals and Clinics – P CUP –
Park and Recreation Facilities, Public P P P P
Public Safety Facilities P P P CUP
Schools, Public or Private P CUP CUP P
Social Service Centers P P P P Section 9.31.350, Social Service Centers
Commercial Uses
Animal Care, Sales, and Services See sub-classifications below.

Grooming and Pet Stores L(19)/CUP L(19)/CUP L(19)/CUP L(2)/CUP No more than 10 dogs or cats may be kept overnight
Pet Day Care Services MUP MUP MUP MUP
Veterinary Services MUP MUP MUP MUP
Automobile/Vehicle Sales and Service See sub-classifications below.

Alternative Fuels and Recharging Facilities CUP CUP CUP CUP Automobile Rental CUP MUP MUP – Section 9.31.050, Automobile Rental
Automobile Storage Use L(4)/CUP – – –

10.C.a
Packet Pg. 760 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 29 TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations New Automobile/Vehicle Sales and Leasing – – CUP(6) –
Section 9.31.070,
Automobile/Vehicle Sales,
Leasing, and Storage
Additions 7,500 square feet or less to
Automobile/Vehicle Sales and Leasing buildings
existing as of 07/06/2010
L(5)/MUP L(5)/MUP L(5)/MUP –
Section 9.31.070,
Automobile/Vehicle Sales,
Leasing, and Storage
Additions larger than 7,500 square feet to
Automobile/
Vehicle Sales and Leasing buildings existing as
of 07/06/2010
CUP (5) CUP (5) CUP (5) –
Section 9.31.070,
Automobile/Vehicle Sales,
Leasing, and Storage
Automobile/Vehicle Repair, Major – – CUP –
Section 9.31.060,
Automobile/Vehicle Repair,
Major and Minor
Automobile/Vehicle Service and Repair, Minor CUP – CUP – Section 9.31.060,
Automobile/Vehicle Repair,
Major and Minor
Automobile/Vehicle Washing – – CUP – Section 9.31.080,
Automobile/Vehicle Washing
Service Station CUP CUP MUP – Section 9.31.320, Service Stations Towing and Impound – – CUP –
Banks and Financial Institutions See sub-classifications below.

Banks and Credit Unions L(2)/CUP L(2)/CUP L(2)/CUP L(2)/CUP Check Cashing Businesses – – – –
Business Services L(19)/CUP L(19)/CUP L(19)/CUP L(2)/CUP Commercial Entertainment and Recreation See sub-classifications below.

Cinemas L(7) – – L(7)
Theaters L(8)/CUP L(8)/CUP L(8)/CUP L(8)/CUP
Convention and Conference Centers – CUP CUP –
Large-Scale Facility CUP CUP CUP -
Small-Scale Facility L(9)/CUP L(9)/CUP L(9)/CUP CUP (16) Section 9.31.340, Small-Scale Facility, Game Arcades
Fortunetelling P P P P
Eating and Drinking Establishments See sub-classifications below.

Bars/Nightclubs/Lounges CUP CUP CUP - Section 9.31.040, Alcoholic Beverage Sales
Restaurants, Full-Service, Limited Service &
Take-Out (2,500 square feet and smaller,
including Outdoor Dining and Seating)

P P P P
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,
Limited Service and Take-Out
Only
Section 9.31.290, Restaurants
With Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Restaurants, Full-Service, Limited Service &
Take-Out (2,501 – 5,000 square feet, including
Outdoor Dining and Seating)

P P P P
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,
Limited Service and Take-Out
Only
Section 9.31.290, Restaurants
With Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Restaurants, Full-Service, Limited Service &
Take-Out (greater than 5,000 square feet,
including Outdoor Dining and Seating)
CUP CUP CUP CUP (10)(11)
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,

10.C.a
Packet Pg. 761 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 30 TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations Limited Service and Take-Out
Only
Section 9.31.290, Restaurants
With Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Food Hall (up to 175 seats) CUP CUP CUP CUP
Equipment Rental – L(19)/CUP L(19)/CUP –
Food and Beverage Sales See sub-classifications below.

Convenience Market CUP CUP CUP CUP Section 9.31.040, Alcoholic Beverage Sales
Farmers Markets CUP CUP CUP CUP
General Market L(12)/CUP L(12)/CUP L(12)/CUP L(12)/CUP Section 9.31.040, Alcoholic Beverage Sales
Liquor Stores CUP CUP CUP CUP Section 9.31.040, Alcoholic Beverage Sales
Funeral Parlors and Mortuaries – CUP CUP –
Instructional Services L(19)/CUP L(19)/CUP L(19)/CUP L(17)/CUP Live-Work L(14) L(14) L(14) L(14) Section 9.31.170, Live-Work Lodging See sub-classifications below.

Bed and Breakfast MUP MUP MUP MUP Section 9.31.090, Bed and Breakfasts
Hotels and Motels CUP CUP CUP –
Maintenance and Repair Services L(19)/CUP L(19)/CUP L(19)/CUP L(2)/CUP Nurseries and Garden Centers L(19)/CUP L(19)/CUP L(19)/CUP L(17)/CUP Section 9.31.220, Outdoor Retail Display and Sales
Offices See sub-classifications below.

Business and Professional L(21)/CUP L(21)/CUP L(21)/CUP L(21)/CUP Creative L(21)/CUP L(21)/CUP L(21)/CUP L(21)/CUP
Medical and Dental L(21)/CUP L(21)/CUP L(21)/CUP L(21)/CUP Walk-In Clientele L(21)/CUP L(21)/CUP L(21)/CUP L(21)/CUP Outdoor Newsstands MUP MUP MUP MUP Section 9.31.210, Outdoor Newsstands
Parking, Public or Private CUP CUP CUP CUP
Personal Services See sub-classifications below.

General Personal Services L(19)/CUP L(19)/CUP L(19)/CUP L(2)/CUP Section 9.31.230, Personal Service
Personal Services, Physical Training L(19)(20) L(19)(20) L(19)(20) L(2)(20)/CUP Tattoo or Body Modification Parlor MUP MUP MUP MUP Section 9.31.230, Personal Service
Retail Sales See sub-classifications below.

Building Materials Sales and Services – – CUP – Section 9.31.220, Outdoor Retail Display and Sales
General Retail Sales, Small-Scale L(19)/CUP L(19)/CUP L(19)/CUP L(2)/CUP Section 9.31.220, Outdoor Retail Display and Sales
General Retail Sales, Medium-Scale CUP CUP L(19)/CUP – Section 9.31.220, Outdoor Retail Display and Sales
General Retail Sales, Large-Scale – – CUP – Section 9.31.220, Outdoor Retail Display and Sales
Medical Marijuana Dispensaries CUP(15) CUP(15) CUP(15) – Section 9.31.185, Medical
Marijuana Dispensaries
Pawn Shops – – – –

10.C.a
Packet Pg. 762 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 31 TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations Swap Meets – – CUP – Section 9.31.360, Swap Meets
Industrial Uses
Artist’s Studio P P P P
Commercial Kitchens – – CUP –
Media Production See sub-classifications below.

Support Facilities L(21)/CUP L(21)/CUP L(21)/CUP L(21)/CUP Transportation, Communication, and Utilities Uses
Bus/Rail Passenger Stations P P P P
City Bikeshare Facility P P P P
Communication Facilities See sub-classifications below.

Antennas and Transmission Towers – – CUP –
Equipment within Buildings – – P –
Light Fleet-Based Services – – CUP –
Utilities, Major – L(13) L(13) –
Utilities, Minor P P P P
Specific Limitations:
(1) Reserved.
(2) Limitation shall only apply to new construction and alterations to existing buildings that result in a combination or enlargement of tenant spaces: Limited to facilities with no more than 7,500 square feet of floor area and/or 40 linear feet of ground floor street frontage; greater area and/or width requires approval of a Conditional Use Permit. (3) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds.
(4) Limited to automobile storage use associated with existing automobile dealerships selling new vehicles; otherwise, requires Conditional Use Permit.
(5) Auto dealerships existing as of July 6, 2010 are considered permitted uses. Expansions to existing dealerships conforming to the Urban Auto Dealership Format standards in Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage are permitted. Expansions to existing dealerships that do not conform to the Urban Auto Dealership Format standards shall require a MUP or CUP.
(6) New auto dealerships may be allowed, subject to approval of a Conditional Use Permit, only on sites with frontage on Santa Monica Boulevard between Lincoln Boulevard and 20th Street on Lincoln Boulevard between Interstate 10 and Santa Monica Boulevard. In other locations, new automobile dealerships are not permitted. (7) Limited to existing cinema buildings. New cinemas are not permitted. (8) Limited to theaters with 75 or fewer seats. Theaters with more than 75 seats require Conditional Use Permit. (9) Limited to exercise facilities (e.g., yoga, Pilates, martial arts, and dance studios) and arts instruction facilities. Other small-scale commercial recreation uses require approval of a Conditional Use Permit. (10) Limited to restaurants with 50 or fewer seats.
(11) Limited to 2 restaurants greater than 5,000 square feet per block along Main Street. A block is defined as both sides of Main Street and the adjacent sides of adjoining side streets. Portions of Main Street to be designated a “block” for the purpose of this Section are as follows:

Block 1: South City limits to Marine Street.

Block 2: Marine Street to Pier Avenue.

Block 3: Pier Avenue to Ashland Avenue.

Block 4: Ashland Avenue to Hill.

Block 5: Hill to Ocean Park Boulevard.

Block 6: Ocean Park Boulevard to Hollister Avenue (total of four restaurants and bars permitted in this block).

Block 7: Hollister Avenue to Strand.

Block 8: Strand to Pacific.

Block 9: Pacific to Bicknell.

Block 10: Bicknell to Bay.

Block 11: Bay to Pico Boulevard.
(12) General markets greater than 15,000 square feet require a Conditional Use Permit. In the Neighborhood Commercial District, establishments shall not exceed 25,000 square feet of floor area. (13) Limited to electric distribution substations.
(14) If the commercial use requires a MUP or CUP, an application shall be required in accordance with Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit.

An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen.

10.C.a
Packet Pg. 763 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 32 TABLE 9.11.020: LAND USE REGULATIONS—COMMERCIAL AND MIXED-USE CORRIDOR DISTRICTS Use Classification MUBL MUB GC NC Additional Regulations (15) Medical marijuana dispensaries are limited to the following locations:
 MUB District along Wilshire Boulevard between Lincoln Boulevard and Centinela Avenue;  GC District along Santa Monica Boulevard between Lincoln Boulevard and 20th Street; and  MUBL District along Santa Monica Boulevard between 23rd Street and Centinela Avenue. (16) Limited to facilities of no more than 3,000 square feet of floor area. (17) Limitation shall only apply to new construction and alterations to existing buildings that result in a combination or enlargement of tenant spaces: No individual tenant space in the NC District shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (18) Any community assembly facility abutting a residential district shall require a Conditional Use Permit. (19) Limitation shall only apply to new construction and alterations to existing buildings that result in a combination or enlargement of tenant spaces: No individual tenant space in the MUBL, MUB, and GC Districts shall occupy more than 12,500 square feet of floor area and/or exceed 75 linear feet of ground floor street frontage without the approval of a Conditional Use Permit.
(20) Youth-serving personal services, physical training requires review and approval of a passenger loading and drop-off plan by the Director.
(21) Permitted if within buildings existing as of July 24, 2015, subject to the active use requirement, except:
 All new construction, including new additions of 50% or more additional square footage to an existing building at any one time, or incrementally, after the effective date of this Ordinance, requires approval of a Conditional Use Permit.  In the NC District, ground floor, street-fronting, tenant space occupied by non-media production, support facility uses shall not be changed to an individual office use or media production, support facility use occupying more than 12,500 square feet of floor area and/or exceeding 75 linear feet of street frontage without the approval of a Conditional Use Permit.  In the NC District, no non-medical or non-dental office use tenant space shall be changed to an individual medical or dental office use anywhere in an existing building occupying more than 7,500 square feet of floor area and/or exceeding 50 linear feet of ground floor street frontage without the approval of a Conditional Use Permit.  In the MUBL, MUB, and GC Districts, no non-medical or non-dental office use tenant space shall be changed to an individual medical or dental office use anywhere in an existing building occupying more than 12,500 square feet of floor area and/or exceeding 75 linear feet of ground floor street frontage without approval of a Conditional Use Permit.

Section 6. Santa Monica Municipal Code Section 9.13.020 is hereby amended to read as follows:

9.13.020 Land Use Regulations
Table 9.13.020 prescribes the land use regulations for the Employment Districts. The regulations for each district are established by letter designations below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review.
“P” designates permitted uses.
“L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.

10.C.a
Packet Pg. 764 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 33 “MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.
“CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
“—” designates uses that are not permitted.

TABLE 9.13.020: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS Use Classification IC OC HMU Additional Regulations
Residential Uses
Residential Housing Types See sub-classifications below.

Single Unit Dwelling – – P
Accessory Dwelling Unit – – P
Section 9.31.025, Accessory
Dwelling Units and Junior
Accessory Dwelling Units
Junior Accessory Dwelling Unit – – P
Section 9.31.025, Accessory
Dwelling Units and Junior
Accessory Dwelling Units
Multiple-Unit Structure – – P
Senior Citizen Multiple-Unit Residential – – P
Single-Room Occupancy Housing – – P
Congregate Housing L (1) L (1) P
Senior Group Residential CUP CUP P Section 9.31.310, Senior Group Residential
Elderly and Long-Term Care – P P
Emergency Shelters L (2)/CUP L (2)/CUP L (2)/CUP Section 9.31.130, Emergency Shelters
Family Day Care See sub-classifications below.

10.C.a
Packet Pg. 765 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 34 TABLE 9.13.020: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS Use Classification IC OC HMU Additional Regulations
Small P P P
Large P P P Section 9.31.140, Family Day Care,
Large
Residential Facilities See sub-classifications below.

Residential Care, Limited P P P Section 9.31.270, Residential Care Facilities
Residential Care, Senior P P P
Hospice, Limited P P P
Supportive Housing P P P
Transitional Housing P P P
Public and Semi-Public Uses
Adult Day Care MUP P P
Child Care and Early Education Facilities MUP P P Section 9.31.120, Child Care and Early Education Facilities
Colleges and Trade Schools, Public or Private – CUP –
Community Assembly CUP CUP CUP
Community Gardens P P P
Cultural Facility – – CUP
Hospitals and Clinics – – P
Park and Recreation Facilities, Public P P P
Public Safety Facilities MUP MUP P
Schools, Public or Private L (3)/CUP L (3)/CUP P
Social Service Centers MUP MUP P Section 9.31.350, Social Service Centers
Commercial Uses
Animal Care, Sales, and Services See sub-classifications below.

Kennels CUP – –
Pet Day Care Services MUP – –
Veterinary Services P – –
Automobile/Vehicle Sales and Service See sub-classifications below.

Alternative Fuels and Recharging
Facilities L (5)/CUP CUP –
Automobile Rental L (4) P –
Section 9.31.050, Automobile
Rental
Automobile Storage Use CUP CUP –
Automobile/Vehicle Sales and Leasing CUP CUP –
Section 9.31.070,
Automobile/Vehicle Sales, Leasing,
and Storage
Automobile/Vehicle Repair, Major L (5)/CUP – –
Section 9.31.060,
Automobile/Vehicle Repair, Major
and Minor
Automobile/Vehicle Service and Repair,
Minor L (5)/CUP – –
Section 9.31.060,
Automobile/Vehicle Repair, Major
and Minor
Automobile/Vehicle Washing CUP – –
Section 9.31.080,
Automobile/Vehicle Washing
Large Vehicle and Equipment Sales,
Service, and Rental CUP – –

10.C.a
Packet Pg. 766 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 35 TABLE 9.13.020: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS Use Classification IC OC HMU Additional Regulations
Service Station L (5)/CUP CUP – Section 9.31.320, Service Stations Towing and Impound L (5)/CUP – –
Banks and Financial Institutions See sub-classifications below.

Banks and Credit Unions – L (6) CUP
Business Services P L (6) P
Commercial Entertainment and Recreation See sub-classifications below.

Cinemas – – –
Theaters L (7)/CUP – –
Convention and Conference Centers – CUP –
Small-Scale Facility L (8)/CUP MUP (6) CUP Section 9.31.340, Small-Scale Facility, Game Arcades
Eating and Drinking Establishments See sub-classifications below.

Restaurants, Full-Service, Limited Service
& Take-Out, With Entertainment, With
Outdoor Eating Areas (2,500 SF and
smaller)
P P P
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,
Limited-Service and Take Out
Section 9.31.290, Restaurants with
Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Restaurants, Full-Service, Limited Service
& Take-Out, With Entertainment, With
Outdoor Eating Areas (2,501 – 5,000 SF)
P P P
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,
Limited-Service and Take Out
Section 9.31.290, Restaurants with
Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Restaurants, Full-Service, Limited Service
& Take-Out, With Entertainment, With
Outdoor Eating Areas (Greater than 5,000
SF)
– CUP (6) P
Section 9.31.040, Alcoholic
Beverage Sales
Section 9.31.280, Restaurants,
Limited-Service and Take Out
Section 9.31.290, Restaurants with
Entertainment
Section 9.31.200, Outdoor Dining
and Seating
Food Hall (up to 175 seats) CUP CUP CUP
Equipment Rental P – P
Food and Beverage Sales See sub-classifications below.

Convenience Markets L (6) L (6) P
Farmers Markets CUP – –
Funeral Parlor and Mortuary – – CUP
Live-Work L (14) CUP L (14) Section 9.31.170, Live-Work Offices See sub-classifications below.

Business and Professional L (9) P P
Creative P P –
Medical and Dental – P P
Walk-In Clientele L (10) L (6) L (10)
Parking, Public or Private CUP CUP CUP
Personal Services See sub-classifications below.

10.C.a
Packet Pg. 767 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 36 TABLE 9.13.020: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS Use Classification IC OC HMU Additional Regulations
General Personal Services – L (6) P
Personal Services, Physical Training – L (6) CUP
Retail Sales See sub-classifications below.

Building Materials Sales and Services P – –
Section 9.31.220, Outdoor Retail
Display and Sales
Firearms and Ammunition Sales – – –
General Retail Sales, Small-Scale CUP (11) MUP (6) P Section 9.31.220, Outdoor Retail Display and Sales
Medical Marijuana Dispensaries – – CUP Section 9.31.185, Medical Marijuana Dispensaries
Industrial Uses
Artist’s Studio P P P
Commercial Kitchens P – –
Industry, General P CUP (12) –
Research and Development P CUP (12) P
Industry, Limited P CUP (12) –
Media Production P P –
Recycling Facility See sub-classifications below.

Recycling Collection Facility P – –
Recycling Processing Facility P – –
Warehousing, Storage, and Distribution See sub-classifications below.

Indoor Warehousing and Storage P – –
Outdoor Storage CUP (13) – –
Personal Storage P CUP – Section 9.31.240, Personal Storage Wholesaling and Distribution P – –
Transportation, Communication, and Utilities Uses
Bus/Rail Passenger Stations P P P
City Bikeshare Facility P P P
Communication Facilities See sub-classifications below.

Antennas and Transmission Towers CUP – CUP Chapter 9.32, Telecommunication Facilities
Facilities within Buildings CUP P CUP
Light Fleet-Based Services CUP – –
Utilities See sub-classifications below.

Utilities, Major P P –
Utilities, Minor P P P

10.C.a
Packet Pg. 768 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 37 TABLE 9.13.020: LAND USE REGULATIONS—EMPLOYMENT DISTRICTS Use Classification IC OC HMU Additional Regulations
Specific Limitations:
(1) Limited to 100% affordable housing projects. For senior citizen multiple-unit residential projects in the Office Campus District that are not 100% affordable approval of a Conditional Use Permit is required. (2) Homeless shelters with less than 55 beds are permitted by right. Homeless shelters with 55 beds or more may be permitted with application for and approval of a Conditional Use Permit. (3) Permitted if existing. New uses require approval of a Conditional Use Permit. (4) Limited to accessory automobile rental facilities located within automobile/vehicle repair use. (5) Permitted if located 100 ft. or more from any residential use or district. Conditional Use Permit required if located within 100 ft. of a residential use or district.
(6) Conditionally permitted as businesses that provide goods and services to employees on the premises. No more than 25% of the total square footage of a development may be devoted to such businesses. (7) Limited to theaters with 99 seats or less and 10,000 sq. ft. or less. Larger theaters require a Conditional Use Permit. (8) Exercise facilities (e.g., yoga, Pilates, martial arts, and dance studios) permitted by right. Other small-scale commercial recreation uses require a Conditional Use Permit.
(9) Permitted if existing or accessory to a primary permitted use on the same site and not exceeding 25 percent of the gross floor area of the primary permitted use.
(10) Permitted if existing. New uses are not permitted. (11) Limited to retail sales of goods manufactured on the premises provided that the floor space devoted to such use does not exceed 20% of the gross floor area of the primary permitted use or 2,000 sq. ft., whichever is less. (12) Such uses must be conducted within an enclosed building or an open enclosure screened from public view. In order to approve a Conditional Use Permit, the review authority must make a finding that proposed uses are compatible with office and advanced technological uses.
(13) Limited to outdoor storage of fleet vehicles if such vehicles are directly related to the primary operation on the site. (14) If the commercial use requires a MUP or CUP, an application shall be required in accordance with Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the Live-Work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen.

Section 7. Santa Monica Municipal Code Section 9.14.020 is hereby amended to read as follows:

9.14.020 Land Use Regulations
Table 9.14.020 prescribes the land use regulations for the Oceanfront District. The regulations for each district are established by letter designations listed below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review.
“P” designates permitted uses.
“L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.

10.C.a
Packet Pg. 769 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 38 “CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
“MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.
“–” designates uses that are not permitted.

Land uses are defined in Chapter 9.51, Use Classifications. Use classifications and subclassifications not listed in the table are prohibited. Accessory uses are permissible when they are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal uses and which are consistent and not more disturbing or disruptive than permitted uses. The table also notes additional use regulations that apply to various uses. Section numbers in the right-hand column refer to other Sections of this Ordinance.

TABLE 9.14.020: LAND USE REGULATIONS—OCEANFRONT DISTRICT Use Classification OF Additional Regulations
Residential Uses
Residential Housing Types See sub-classifications below.

Single Unit Dwelling P
Accessory Dwelling Unit P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units
Junior Accessory Dwelling Unit P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units
Duplex P
Multiple-Unit Dwelling P
Senior Citizen Multiple-Unit
Residential P
Single-Room Occupancy Housing P Section 9.31.330, Single Room Occupancy Uses
Group Residential MUP
Congregate Housing P Section 9.31.110, Congregate and
Transitional Housing
Senior Group Residential P Section 9.31.310, Senior Group Residential Elderly and Long-Term Care P
Emergency Shelters CUP Section 9.31.130, Emergency Shelters Family Day Care See sub-classifications below.

Large P Section 9.31.140, Family Day Care, Large

10.C.a
Packet Pg. 770 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 39 TABLE 9.14.020: LAND USE REGULATIONS—OCEANFRONT DISTRICT Use Classification OF Additional Regulations
Small P
Residential Facilities See sub-classifications below.

Residential Care, General P Section 9.31.270, Residential Care Facilities
Residential Care, Limited P Section 9.31.270, Residential Care Facilities
Residential Care, Senior P Section 9.31.270, Residential Care Facilities
Supportive Housing P
Transitional Housing P
Public and Semi-Public Uses
Adult Day Care CUP
Child Care and Early Education Facilities CUP Section 9.31.120, Child Care and Early Education Facilities
Cultural Facilities CUP
Park and Recreations Facilities, Public P
Schools P
Commercial Uses
Automobile/Vehicle Sales and Service See sub-classifications below.

Automobile Rental MUP Section 9.31.050, Automobile Rental Commercial, Entertainment, and Recreation See sub-classifications below.

Theaters L(1)
Convention and Conference Centers P
Small-Scale Facility P Section 9.31.340, Small-Scale Facility, Game Arcades
Large-Scale Facility L(2)/CUP
Eating and Drinking Establishments See sub-classifications below.

Bars/Nightclubs/Lounges L(3)/CUP Section 9.31.040, Alcoholic Beverage Sales Restaurants, Full-Service including
Outdoor Dining and Seating P
Section 9.31.040, Alcoholic Beverage Sales
Section 9.31.280, Restaurants, Limited
Service and Take-Out Only
Section 9.31.290, Restaurants With
Entertainment
Section 9.31.200, Outdoor Dining and
Seating
Chapter 9.20, Beach Overlay District
Restaurants, Limited Service and TakeOut Only including Outdoor Dining and Seating
P
Section 9.21.040, Alcoholic Beverage Sales
Section 9.31.280, Restaurants, LimitedService and Take Out Only Section 9.31.290, Restaurants With
Entertainment
Section 9.31.200, Outdoor Dining and
Seating
Chapter 9.20, Beach Overlay District
Food Hall (up to 175 seats) CUP
Food and Beverage Sales See sub-classifications below.

Convenience Markets P Section 9.31.040, Alcoholic Beverage Sales Farmers Markets MUP

10.C.a
Packet Pg. 771 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 40 TABLE 9.14.020: LAND USE REGULATIONS—OCEANFRONT DISTRICT Use Classification OF Additional Regulations
General Markets L(4) Section 9.31.040, Alcoholic Beverage Sales Liquor Stores CUP Section 9.31.040, Alcoholic Beverage Sales Lodging See sub-classifications below.

Bed and Breakfast CUP Within Designated Landmarks only.

Section 9.31.090, Bed and Breakfasts
Offices See sub-classifications below.

Business and Professional L(5)/CUP
Creative L(5)/CUP
Walk-In Clientele L(5)/CUP
Parking, Public or Private CUP
General Personal Services MUP
Retail Sales See sub-classifications below.

General Retail Sales, Small-Scale P Section 9.31.220, Outdoor Retail Display and Sales
Transportation, Communication, and Utilities Uses
City Bikeshare Facility P
Specific Limitations:
(1) Limited to theaters for live performances.
(2) Existing large-scale commercial, entertainment, and recreation facilities existing as of the date of this Ordinance are permitted. Any new large-scale commercial, entertainment, and recreation facilities require approval of a Conditional Use Permit.
(3) Bars, nightclubs, and lounges are only permitted on the Pier, on Oceanfront Walk, and within hotels. (4) Limited to establishments with no more than 2,500 sq. ft. of floor area. (5) Office uses on the ground floor street frontage may not exceed 25% of the parcel width or 1,000 sq. ft, whichever is less.

Section 8. Santa Monica Municipal Code Section 9.14.030 is hereby amended to read as follows:

9.14.030 Development Standards
Table 9.14.030 prescribes the development standards for the Oceanfront District.

Additional regulations are denoted with Section numbers in the right-hand column or with individual letters in parentheses. Section numbers refer to other Sections of this Article, while individual letters in parentheses refer to subsections that directly follow the table.

10.C.a
Packet Pg. 772 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 41 TABLE 9.14.030: DEVELOPMENT STANDARDS—OCEANFRONT DISTRICT Standard OF Additional Regulations
Parcel and Intensity Standards
Minimum Parcel Size (sq. ft.) 5,000
Minimum Parcel Width (ft.) 50′
Minimum Parcel Depth (ft.) 100′
Maximum Density; Parcels
along the Pacific Coast Highway
between the Santa Monica Pier
and the north City limits
Parcels 4,000 sq. ft. or more: 1 dwelling unit/1,500 sq. ft.

Parcels less than 4,000 sq. ft.: 1 dwelling unit/parcel if existing, no new dwelling units
No more than 1 dwelling unit
shall be permitted on a parcel 40
ft. or less in width
Maximum FAR Section 9.04.080, Determining
FAR
Tier 1—Base Standard

1.5; 0.5 for parcels located along the Pacific Coast
Highway between the Santa Monica Pier and the north
City limits
Tier 2—With Provision of
Community Benefits 2.0 Chapter 9.23, Community Benefits 100% Affordable Housing
Projects 2.25
Limited to 50 or fewer units;
Chapter 9.64, Affordable
Housing Production Program
Santa Monica Pier Maximum FAR
The Deauville site to the
north, Seaside Terrace to the
south, The Ocean Front
Walk to the west, and Ocean
Avenue to the east, except
parcels fronting on Ocean
Avenue

1.0 Parcels fronting on Ocean
Avenue 0.5
Maximum Parcel Coverage (%) 70; 50 on parcels along the Pacific Coast Highway between the Santa Monica Pier and the north City limits Building Form and Location
Maximum Building Height
(stories/ft.)
One story for newly constructed stand-alone restaurants except for the Santa Monica Pier
Section 9.04.050 Measuring
Height
Tier 1—Base Standard
2/32′;
2/23′ (flat roof) or 2/30′ (pitched roof) for parcels
located along the Pacific Coast Highway between the
Santa Monica Pier and the north City limits
Tier 1—Projects Including
On-Site Affordable Housing
in Compliance with AHPP
3/36′ Chapter 9.64, Affordable
Housing Production Program
100% Affordable Housing
Projects No limit to number of stories/47′
Limited to 50 or fewer units;
Chapter 9.64, Affordable
Housing Production Program
Tier 2—With Provision of
Community Benefits 3/47′ Chapter 9.23, Community Benefits Tier 2—With Provision of
Community Benefits and
100% Residential Above the
Ground Floor
No limit to stories/47′ Chapter 9.23, Community
Benefits
Santa Monica Pier Maximum Building Height (stories/ft.) Section 9.04.050, Measuring Height

10.C.a
Packet Pg. 773 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 42 TABLE 9.14.030: DEVELOPMENT STANDARDS—OCEANFRONT DISTRICT Standard OF Additional Regulations
The Deauville site to the
north, Seaside Terrace to the
south, The Promenade to the
west, and Ocean Avenue to
the east, including parcels
fronting on Ocean Avenue
2/30′
Amusement Rides on the
Santa Monica Pier
85 ft. for one Ferris wheel; 55 ft. for one roller coaster; 45 ft. for all other amusement rides
Street-Facing Façades (ft.)
Minimum Ground Floor
(Floor-to-Floor) Height for
Nonresidential Uses
11′

Maximum Ground Floor
(Floor-to-Floor) Height for
Nonresidential Uses
16′
Active Commercial Design See (A)
Pedestrian Oriented Design See (B)
Exterior Lighting See (D)
Minimum Setbacks (ft., measured from parcel line)
Street Frontage
5 ft. from street fronting parcel line except for 20 ft. on Pacific Coast Highway between northern City limits and
Santa Monica Pier. See (C)
Rear
15 ft. if adjacent to a residential use; 25 ft. for beach rear setback on parcels over 100 ft. in depth located
along the Pacific Coast Highway between the Santa
Monica Pier and the north City limits
Side
If adjacent to a residential use, see (E); for parcels
located along the Pacific Coast Highway between the
Santa Monica Pier and the north City limits, see (E)
Minimum Upper-Story Stepbacks (ft.)—Required Above Maximum Ground Floor Height Street-Facing Façades
At least 30% of the building elevation above the
maximum ground floor height shall provide an
additional 5-foot average setback from the minimum
required front yard setback
Daylight Plane Adjacent to
Residential Use—Interior Side
and Rear Setbacks
See (F) Section 9.21.070, Height
Exceptions
View Corridors See (G)
Standards for Residential Uses
Minimum Outdoor Living Area
(sq. ft./unit)—Sites with 3 or
More Units
100 Section 9.21.090, Outdoor Living
Area
Minimum Amount Provided
as Private Outdoor Living
Area (sq. ft./unit)
60 Additional Standards
Accessory Dwelling Units Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Accessory Food Service Section 9.31.030, Accessory Food Service Accessory Structures Section 9.21.020, Accessory Buildings and Structures Exceptions to Height Limits Section 9.21.060, Height Exceptions

10.C.a
Packet Pg. 774 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 43 TABLE 9.14.030: DEVELOPMENT STANDARDS—OCEANFRONT DISTRICT Standard OF Additional Regulations
Fences and Walls Section 9.21.050, Fences, Walls, and Hedges Home Occupation Section 9.31.160, Home Occupation
Junior Accessory Dwelling Units Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Landscaping Subsection 9.14.030(H), Landscaping; Chapter 9.26, Landscaping Lighting Section 9.21.080, Lighting
Off-Street Parking and Loading Chapter 9.28, Parking, Loading, and Circulation Projections into Required
Setbacks Section 9.21.110, Projections into Required Setbacks Signs Chapter 9.61, Signs
Screening Section 9.21.140, Screening
Solar Energy Systems Section 9.21.150, Solar Energy Systems Trash Screening and Enclosure Section 9.21.130, Resource Recovery and Recycling Standards Section 9. Santa Monica Municipal Code Section 9.15.020 is hereby amended to read as follows:

9.15.020 Land Use Regulations
Table 9.15.020 prescribes the land use regulations for Public and Semi-Public Districts.

The regulations for each district are established by letter designations listed below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review.
“P” designates permitted uses.
“L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.
“CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
“MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.

10.C.a
Packet Pg. 775 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 44 “–” designates uses that are not permitted.

TABLE 9.15.020: LAND USE REGULATIONS—PUBLIC AND SEMI-PUBLIC DISTRICTS Use Classification CC PL OS Additional Regulations
Residential Uses
Residential Housing Types See sub-classifications below.

Multiple-Unit Dwelling L (1) - -
Accessory Dwelling Unit P - - Section 9.31.025, Accessory Dwelling Unit and Junior Accessory Dwelling Units
Senior Citizen Multiple-Unit
Residential L (1) - -
Single Room Occupancy Housing L (1) - -
Group Residential L (1) - -
Congregate Housing L (1) - - Section 9.31.110, Congregate and Transitional Housing
Senior Group Residential L (1) - - Section 9.31.310, Senior Group Residential Emergency Shelters - P - Section 9.31.130, Emergency Shelters Family Day Care See sub-classifications below.

Large P P P Section 9.31.140, Family Day Care, Large
Small P P P
Residential Care Facilities See sub-classifications below.

Residential Care, General L (1) - - Section 9.31.270, Residential Care Facilities Residential Care, Limited L (1) - - Section 9.31.270, Residential Care Facilities Residential Care, Senior L (1) - - Section 9.31.270, Residential Care Facilities
Hospice, General - - -
Hospice, Limited - - -
Supportive Housing L (1) - -
Transitional Housing L (1) - -
Public and Semi-Public Uses
Adult Day Care P P P
Cemetery - P -

10.C.a
Packet Pg. 776 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 45 TABLE 9.15.020: LAND USE REGULATIONS—PUBLIC AND SEMI-PUBLIC DISTRICTS Use Classification CC PL OS Additional Regulations
Child Care and Early Education
Facilities P P P Section 9.31.120, Child Care and Early Education Facilities Colleges and Trade Schools, Public or
Private L (3) P -
Community Assembly P P L (3)
Community Gardens - P P
Cultural Facilities P P P
Park and Recreations Facilities, Public P P P
Public Safety Facilities P P -
Schools, Public or Private L (3) P -
Social Service Centers P P -
Commercial Uses
Banks and Financial Institutions L (1) - -
Business Services L (1) - -
Commercial, Entertainment, and
Recreation See sub-classifications below.

Cinemas/Theaters - - MUP (3)
Convention and Conference
Centers P - -
Large-Scale Facility - - -
Small-Scale Facility - - -
Section 9.31.340, Small-Scale Facility,
Game Arcades
Eating and Drinking Establishments See sub-classifications below.

Restaurants, Full-Service L (1) L (2) L (2) Section 9.31.040, Alcoholic Beverage Sales Restaurants, Limited Service L (1) L (2) L (2) Section 9.31.040, Alcoholic Beverage Sales Restaurants, Take-Out Only L (1) L (2) - Section 9.31.040, Alcoholic Beverage Sales With Outdoor Eating Areas L (1) L (2) L (2) Section 9.31.200, Outdoor Dining and Seating
Food Hall, (up to 175 seats) CUP CUP CUP
Food and Beverage Sales See sub-classifications below.

Convenience Markets L (1) - - Section 9.31.040, Alcoholic Beverage Sales Farmers Markets - P CUP
General Markets L (1) - - Section 9.31.040, Alcoholic Beverage Sales Live-Work L (1) - - Section 9.31.170, Live-Work Units
Lodging See sub-classifications below.

Hotels and Motels CUP - -
Offices See sub-classifications below.

Business and Professional L (4)/CUP L (3) -
Creative L (4)/CUP - -
Walk-In Clientele L (4)/CUP - -
Parking, Public or Private L (3) P L (5)
General Personal Services L (1) - -
Retail Sales See sub-classifications below.

General Retail Sales, Small-Scale L (1) - - Section 9.31.220, Outdoor Retail Display and Sales
Swap Meet MUP MUP MUP Section 9.31.360, Swap Meets

10.C.a
Packet Pg. 777 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 46 TABLE 9.15.020: LAND USE REGULATIONS—PUBLIC AND SEMI-PUBLIC DISTRICTS Use Classification CC PL OS Additional Regulations
Transportation, Communication, and Utilities Uses
Citywide Bikeshare Facility P P P
Communication Facilities See sub-classifications below.

Antennas and Transmission
Towers CUP CUP -
Equipment Within Buildings - P -
Utilities, Major - P -
Utilities, Minor - P -
Specific Limitations:
(1) Permitted as part of a mixed-use development. Residential uses not permitted on ground floor. (2) Permitted only as an accessory to a primary use. Must be located within the same building as a primary use. (3) Limited to public, quasi-public, or nonprofit establishments. (4) Public, quasi-public, and nonprofit offices are permitted. Conditional Use Permit required for private offices. (5) Limited to public parking for beach or park users.

Section 10. Santa Monica Municipal Code Section 9.27.050 is hereby amended to read as follows:

9.27.050 Legal Nonconforming Uses
A legal, nonconforming use may be maintained subject to the following provisions:

A. Change of Ownership. A change of ownership, tenancy, or management of a nonconforming use shall not affect its status as a legal, nonconforming use.

B. Abandonment. If a nonconforming use of a building, structure, or parcel ceases for a continuous period of one year or more, the use shall be considered abandoned, and the building, structure, or parcel shall thereafter be used only in accordance with the regulations for the District in which it is located except as provided below. It is the responsibility of the applicant to provide evidence demonstrating to the satisfaction of the Director that the use was legally established and has not been abandoned.

Notwithstanding the above, no nonconforming residential use shall be considered abandoned regardless of the length of time of non-use unless the Director determines the

10.C.a
Packet Pg. 778 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 47 building is dangerous, unsafe, a health and safety hazard, and/or uninhabitable, and these conditions cannot be remedied.

1. The one-year period to determine that a nonconforming use has been abandoned shall commence when the use ceases and any one of the following occurs:
a. The business license lapses;
b. The site is vacated;
c. The lease is terminated;
d. Utilities are terminated; or
e. A conforming use that meets the applicable requirements of this Ordinance is lawfully established in the space previously occupied by the nonconforming use.

2. Once the one-year period has commenced under subsection (B)(1) that period shall only be terminated if the nonconforming use is fully licensed, permitted, and operational for 60 continuous days. Operational shall mean that the nonconforming use is open for business to the public and provides services typically associated with the nonconforming use during the hours and days that are customary for that nonconforming use.

3. Cessation of use due to remodeling shall not be considered abandonment so long as building permits are active in accordance with Chapter 8.08 of the Municipal Code. However, if the building permit expires before the use resumes, the one-year period under Subsection (B)(1) shall relate back and commence with the cessation of use.

10.C.a
Packet Pg. 779 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 48 4. Except as provided in Subsection (B)(5), no nonconforming use may be resumed, reestablished, or reopened once it has been determined to have been abandoned for one year.

5. If the nonconforming use of a building, structure, or parcel occurred in a City-Designated Historic Resource, the nonconforming use may be resumed, reestablished, or reopened even if that nonconforming use has been abandoned for more than one year and other uses have occurred since that abandonment if a Conditional Use Permit is obtained based on the following findings:
a. The City-Designated Historic Resource was not in residential use as of December 16, 2014;
b. The proposed use is compatible with existing and permissible land uses within the District and the general area in which the proposed use is to be located;
c. The proposed use is compatible with any of the land uses presently on the subject parcel if the land uses are to remain;
d. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood; e. The subject parcel is physically suitable for the type of land use being proposed; and
f. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare.

6. Notwithstanding the foregoing, or anything to the contrary in this Ordinance, the following legal, nonconforming uses may be resumed, reestablished, or reopened,

10.C.a
Packet Pg. 780 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 49 even if that nonconforming use has been abandoned for more than one year, unless a conforming use that meets the applicable requirements of the Zoning Ordinance has been lawfully established in the space previously occupied by the nonconforming use:
a. In areas excluding the Third Street Promenade Area:
i. Restaurant, full service;
ii. Restaurant, limited service and take-out;
iii. Food hall;
iv. General retail sales, small scale; and
v. General retail sales, medium scale.
b. In the Third Street Promenade Area:
i. Bar/nightclub/lounge;
ii. Restaurant, full service
iii. Restaurant, limited service and take-out;
iv. Food hall;
v. General retail sales, small scale; and
vi. General retail sales, medium scale.

C. Conversion to Conforming Use. If a nonconforming use is converted to a conforming use, the nonconforming use may not be resumed except as authorized by subsection (B)(5).

D. Expansion of Nonconforming Use. A nonconforming use of a building or portion of a building that conforms to the development standards of this Chapter shall neither be expanded into any other portion of the building nor changed except to a conforming use.

The nonconforming use of land shall not be expanded or extended in area.

10.C.a
Packet Pg. 781 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 50 E. Intensification of Uses. A nonconforming use shall not be permitted to substantially change in mode or character of operation. A substantial change in mode or character of operation shall include, but is not limited to, addition of uses, a change in operational hours that extends past 11:00 p.m. any night Sunday through Thursday and/or midnight on Friday and/or Saturday or begins before 7:00 a.m., a 5 percent increase in the floor area of the premises, or a 5 percent increase in the number of seats in any restaurant, but in no case shall the increase exceed any established seating limitation in the underlying zoning district.

F. Continuation/Reinstatement. The uses existing in a structure that have been restored pursuant to Section 9.27.040 may be continued/reinstated in the reconstructed/replacement structure so long as no continued/reinstated nonconforming uses are expanded, changed or substituted.

G. Legal, Nonconforming Rent-Controlled Multiple-Unit Properties.

Notwithstanding subsection (D), existing multi-unit residential units in the R1 Single Family Residential District that are presently controlled by Article XVIII of the City Charter may be expanded in area provided such expansion complies with all other applicable Code provisions, including those governing height, number of stories, setbacks, stepbacks, parcel coverage and off-street parking (unless the City’s Parking and Traffic Engineer determines that the provision of parking is not feasible), and the number of housing units on the multi-unit residential property does not increase.

10.C.a
Packet Pg. 782 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 51 Section 11. Santa Monica Municipal Code Section 9.28.020 is hereby amended to read as follows;

9.28.020 Applicability
The requirements of this Chapter apply to the following.

A. New Buildings and Land Uses. On-site parking shall be provided according to the provisions of this Chapter at the time any building or structure is erected or any new land use is established.

B. Addition, Enlargement of Use, and Change of Use of Existing Non-Residential Buildings.

1. Except as provided in subsection (B)(2), a change of use shall provide the difference between the required parking ratio for the proposed use and one automobile parking space per 300 square feet.

2. Changes in use that create an increase of 10 or fewer required parking spaces, calculated in accordance with subsection (B)(1), shall not be required to provide additional on-site automobile parking according to the provisions of this Chapter, except that if the change of use is a restaurant, the calculation shall be based on the square footage of the dining area only, and shall exclude any square footage dedicated to backof-house operations and outdoor dining. Bicycle parking shall be provided in accordance with Section 9.28.140.

3. Existing parking shall be maintained and additional parking shall be required only for such addition, enlargement, or change of use and not for the entire building or site. If the number of existing parking spaces is greater than the requirements for such

10.C.a
Packet Pg. 783 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 52 use, the number of spaces in excess of the prescribed minimum may be counted toward meeting the parking requirements for the addition, enlargement, or change in use.

4. A change in occupancy is not considered a change in use unless the new occupant is a different use than the former occupant.

C. Addition, Enlargement of Use, and Change of Use of Existing Residential Buildings.

1. For any new commercial, cultural, health, industrial, or commercial entertainment and recreation use of an existing residential building, structure including any addition and enlargement of use, parking spaces in the number specified in Section

9.28.060, Required Off-Street Parking, shall be provided for the entire parcel.

2. For any new residential or educational use of an existing residential building or structure such that the new residential or educational use will require a greater number of parking spaces as compared to the previous use, parking spaces in the number specified in Section 9.28.060, Required Off-Street Parking, shall be provided for the new use.

D. Additions and Alterations to Residential Buildings. When an addition or alteration is proposed to a residential building that does not currently provide parking in compliance with this Chapter, the following regulations apply:

1. Multi-Unit Dwellings. Additional parking shall be required for the proposed addition or alteration if it increases the number of bedrooms of existing units.

2. Increased Number of Dwelling Units. The creation of additional dwelling units through the alteration of an existing building or construction of an additional structure or structures requires the provision of on-site parking to serve the new dwelling units in

10.C.a
Packet Pg. 784 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 53 compliance with the provisions of this Chapter. This requirement does not apply when sufficient on-site parking exists to provide the number of spaces required for the existing and new dwelling units in compliance with all applicable requirements.

E. Construction Timing. On-site parking facilities required by this Chapter shall be constructed or installed prior to the issuance of a Certificate of Occupancy for the uses that they serve.

Section 12. Santa Monica Municipal Code Section 9.28.060 is hereby amended to read as follows:

9.28.060 Off-Street Parking
Off-street parking shall be provided in the quantities specified in Table 9.28.060, except as otherwise provided in this Chapter and Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units. If a proposed use is not listed in the table, the Director may determine appropriate parking requirements.

TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
Residential Uses
Single-Unit Dwelling 2 spaces per dwelling unit 2 spaces per dwelling unit, which may be tandem 2 spaces per dwelling unit
Accessory Dwelling
Unit
1 space per dwelling unit 1 space per dwelling unit N/A Junior Accessory
Dwelling Unit N/A N/A N/A
Duplex, MultipleUnit Dwelling
Market Rate Units: Market Rate Units: Market Rate Units:

Guest = 1 space per 5 units Guest = 1 space per 10 units Guest = 1 space per 15 units Studio, no bedrooms = 1 space per
unit
Studio, no bedrooms = 1 space per
unit
Studio, no bedrooms = 0.5 space
per unit
1 bedroom = 1.5 space per unit 1 bedroom = 1 space per unit 1 bedroom = 0.5 space per unit 2 or more bedrooms = 2 spaces per
unit
2 or more bedrooms = 1.5 spaces
per unit
2 or more bedrooms = 1 space per
unit
Deed Restricted Affordable Units: Deed Restricted Affordable Units: Deed Restricted Affordable Units:

Studio, no bedrooms = 0.5 space
per unit
Studio, no bedrooms = 0.5 space
per unit Guest = 1 space per 30 units
1 bedroom = 0.75 space per unit 1 bedroom = 0.5 space per dwelling unit
Studio, no bedrooms = 0.25 space
per unit
2 or more bedrooms = 1 space per
unit
2 or more bedrooms = 1 space per
dwelling unit
1 bedroom = 0.25 space per unit
2 or more bedrooms = 0.5 space

10.C.a
Packet Pg. 785 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 54 TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
per unit
Senior Citizen
Multiple-Unit
Residential

0.5 space per unit 0.5 space per unit 0.5 space per unit Guest = 1 space per 5 units Guest = 1 space per 6 units Guest = 1 space per 6 units Low and moderate income units =

0.25 space per unit
Low and moderate income units =

0.25 space per unit
Single-Room
Occupancy Housing
See Multiple-Unit Dwelling See Multiple-Unit Dwelling See Multiple-Unit Dwelling Group Residential 0.5 space per bed 0.5 space per bed 0.5 space per bed Congregate Housing 1 space per 5 beds 1 space per 5 beds 1 space per 5 beds Senior Group
Residential

0.5 space per unit 0.5 space per unit 0.5 space per unit Guest = 1 space per 5 units Guest = none required Guest = none required Deed restricted affordable = 0.25
space per unit
Deed restricted affordable = 0.25
space per unit
Deed restricted affordable = 0.25
space per unit
Elderly and LongTerm Care0.5 space per bed plus one visitor space per 5 beds 0.2 space per bed 0.2 space per bed
Family Day Care
Large
None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
Small None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
Residential Facilities
Residential Care,
General
If more than 6 residents = 0.5 space
per bed plus 1 visitor space per 5
beds
If more than 6 residents = 0.5 space
per bed plus 1 visitor space per 5
beds
If more than 6 residents = 0.5
space per bed plus 1 visitor space
per 5 beds
Residential Care,
Limited
None required other than what is
required for existing residence
None required other than what is
required for existing residence
None required other than what is
required for existing residence
Residential Care,
Senior
If more than 6 residents = 0.25
space per bed plus 1 visitor space
per 5 beds
If more than 6 residents = 0.25
space per bed plus 1 visitor space
per 5 beds
If more than 6 residents = 0.25
space per bed plus 1 visitor space
per 5 beds
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none
other than what is required for the
existing residence
Hospice, General
If more than 6 residents = 0.25
space per bed plus 1 visitor space
per 5 beds
If more than 6 residents = 1 space
per 5 beds
If more than 6 residents = 1 space
per 5 beds
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none
other than what is required for the
existing residence
Hospice, Limited None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
None required other than what is
required for the existing residence
Supportive Housing
If more than 6 residents = 0.5 space
per bed plus 1 visitor space per 5
beds
If more than 6 residents = 1 space
per 5 beds
If more than 6 residents = 1 space
per 5 beds
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none other
than what is required for the
existing residence
If less than 6 residents = none
other than what is required for the
existing residence
Transitional Housing None other than what is required for residential type
None other than what is required for
residential type
None other than what is required
for residential type
Public and Semi-Public Uses
Adult Day Care 1 space per 500 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

Child Care and Early
Education Facilities 1 space per 500 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

10.C.a
Packet Pg. 786 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 55 TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
Colleges and Trade
Schools, Public or
Private
1 space per 80 sq. ft. of assembly or
classroom area or 1 space per every
4 fixed seats, whichever is greater
1 space per 100 sq. ft. of assembly
or classroom area or 1 space per
every 5 fixed seats, whichever is
greater
1 space per 100 sq. ft. of assembly
or classroom area or 1 space per
every 5 fixed seats, whichever is
greater
Community Assembly 1 space for each 4 seats 1 space for each 6 seats 1 space for each 6 seats Cultural Facilities 1 space per 300 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

Emergency Shelters 1 space per 10 beds 1 space per 10 beds 1 space per 10 beds Hospitals and Clinics 1 space per 250 sq. ft. 1 space per 250 sq. ft. 1 space per 250 sq. ft.

Schools, Public or
Private
Elementary and Middle Schools: Elementary and Middle Schools: Elementary and Middle Schools:
2 spaces per classroom 1.75 spaces per classroom 1.75 spaces per classroom High Schools: High Schools: High Schools:
5 spaces per classroom 4 spaces per classroom 4 spaces per classroom Social Service Centers 1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft.

Commercial Uses
Animal Care, Sales, and Services
Grooming and Pet
Stores
See Retail Sales See Retail Sales See Retail Sales
Kennel 1 space per 1,000 sq. ft. 1 space per 1,000 sq. ft. 1 space per 1,000 sq. ft.

Pet Day Care
Services
1 space per 500 sq. ft. 1 space per 1,000 sq. ft. 1 space per 1,000 sq. ft.

Veterinary Services See Medical Office See Medical Office See Medical Office Automobile/Vehicle Sales and Service
Alternative Fuels and
Recharging Facilities
2 spaces for self-service station 2 spaces for self-service station 2 spaces for self-service station 1 space per 100 sq. ft. of retail 1 space per 100 sq. ft. of retail 1 space per 100 sq. ft. of retail Automobile Rental
1 space per 500 sq. ft. 1 space per 500 sq. ft.
1 space per 1,000 sq. ft. of outdoor N/A
rental storage area
1 space per 1,000 sq. ft. of outdoor
rental storage area
Automobile Storage
Uses
1 space 1 space -
Automobile/Vehicle
Sales and Leasing
1 space per 300 sq. ft. for offices
plus
1 space per 300 sq. ft. for offices
plus
1 space per 300 sq. ft. for offices
plus
1 space per 1,000 sq. ft. of net new
display area and requirements for
automobile repair where applicable
1 space per 1,000 sq. ft. of net new
display area and requirements for
automobile repair where applicable
1 space per 1,000 sq. ft. of net
new display area and requirements
for automobile repair where
applicable
Automobile/Vehicle
Repair, Major and
Minor
1 space per 500 sq. ft. of nonservice bay floor area1 space per 500 sq. ft. of nonservice bay floor area1 space per 500 sq. ft. of nonservice bay floor area 2 spaces per service bay 2 spaces per service bay 2 spaces per service bay Automobile/Vehicle
Washing
2 spaces for each washing stall, not
including the stall
2 spaces for each washing stall, not
including the stall
2 spaces for each washing stall,
not including the stall
Service Station
2 spaces if self-service station 2 spaces if self-service station 2 spaces if self-service station 1 space per 100 sq. ft. of retail 1 space per 100 sq. ft. of retail 1 space per 100 sq. ft. of retail Must follow requirements for repair
where applicable
Must follow requirements for repair
where applicable
Must follow requirements for
repair where applicable
Banks and Financial Institutions
Banks and Credit
Unions
See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office 1 space per 300 sq. ft.

Check Cashing
Businesses
See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office N/A
Business Services
See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office
Commercial Entertainment and Recreation
Cinemas 1 space per 4 seats 1 space per 4 seats Up to 99 seats = 1 space for every

10.C.a
Packet Pg. 787 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 56 TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
8 fixed seats
> 99 seats = 1 space for every 5
fixed seats
Theaters 1 space per 4 seats 1 space per 4 seats See Cinemas Convention and
Conference Centers 1 space per 80 sq. ft. 1 space per 100 sq. ft. 1 space per 100 sq. ft.

Large-Scale
Facilities 1 space per 80 sq. ft. 1 space per 100 sq. ft. 1 space per 100 sq. ft.

Small-Scale
Facilities, less than
1,500 sq. ft.
1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft.

Small-Scale
Facilities, 1,500 sq.
ft. and more
1 space per 80 sq. ft. 1 space per 100 sq. ft. 1 space per 500 sq. ft.

Instructional Services See Retail Sales See Retail Sales See Retail Sales Eating and Drinking Establishments
Bars/Nightclubs/
Lounges
1 space per 50 sq. ft. 1 space per 50 sq. ft. 1 space per 500 sq. ft.

Restaurants, less than
2,500 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

Restaurants, 2,500 –
5,000 sq. ft. 1 space per 200 sq. ft. 1 space per 200 sq. ft. 1 space per 500 sq. ft.

Restaurants, 5,000+
sq. ft. 1 space per 125 sq. ft. 1 space per 125 sq. ft. 1 space per 300 sq. ft.

Restaurant Outdoor
Eating Areas, less
than 200 sq. ft.

None None None
Restaurant Outdoor
Eating Areas, 200 sq.
ft. and more
Food Hall
Same as required for restaurant type
1 space per 300 sq. ft.

Same as required for restaurant type
1 space per 500 sq. ft.

Outdoor eating areas less than 500
sq. ft. = no additional parking.

Outdoor eating areas 500 sq. ft.
and more = same as required for
restaurant type.
1 space per 500 sq. ft.

Equipment Rental See Retail Sales See Retail Sales See Retail Sales Food and Beverage Sales
Convenience Market See Retail Sales See Retail Sales See General Market General Market less
than 2,500 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

General Market
2,500-5,000 sq. ft. 1 space per 250 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft.

General Market
5,000+ sq. ft. 1 space per 250 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft.

Liquor Stores See Retail Sales See Retail Sales See General Market Funeral Parlors and
Mortuaries
1 space per 80 sq. ft. or 1 space per
4 seats, whichever is higher
1 space per 100 sq. ft. or 1 space per
6 seats, whichever is higher
1 space per 100 sq. ft. or 1 space
per 6 seats, whichever is higher
Live-Work 1 space per unit plus 1 space per unit plus 1 space per 500 sq.ft. 1 guest space per unit 1 guest space per unit
Lodging
Bed and Breakfast 1 space per room plus parking
required for dwelling unit 1 space per room 1 space per room Hotels and Motels
1 space per room plus 1 space per
200 sq. ft. of meeting and banquet
space

0.75 space per room plus 1 space
per 250 sq. ft. of meeting and
banquet space

0.5 space per guest room plus 1
space for each 250 sq. ft. used for
meetings and banquets.

10.C.a
Packet Pg. 788 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 57 TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
Other uses such as bars,
restaurants, retail and services
which are open to the general
public shall provide parking as
required for the use at a rate ½ the
individual use.

Maintenance and
Repair Services
See Retail Sales See Retail Sales See Retail Sales
Nurseries and
Garden Centers
Interior spaces see Retail Sales, plus Interior space see Retail Sales, plus Interior space see Retail Sales, plus
1 space per 1,000 sq. ft. of outdoor
display and storage area
1 space per 1,000 sq. ft. of outdoor
display and storage area
1 space per 1,000 sq. ft. of outdoor
display and storage area
Offices
Business,
Professional,
Creative, less than
2,500 sq. ft.
1 space per 300 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

Business,
Professional,
Creative, 2,500+ sq.
ft.
1 space per 300 sq. ft. 1 space per 450 sq. ft. 1 space per 500 sq. ft.

Medical and Dental,
less than 1,000 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft.

Medical and Dental,
1,000+ sq. ft. 1 space per 250 sq. ft. 1 space per 250 sq. ft. 1 space per 300 sq. ft.

Walk-In Clientele See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office
See Business, Professional, and
Creative Office
Personal Services
General Personal
Services
See Retail Sales See Retail Sales See Retail Sales
Tattoo or Body
Modification Parlor See Retail Sales See Retail Sales See Retail Sales Physical Training See Retail Sales See Retail Sales See Retail Sales Retail Sales
Retail, less than
2,500 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft. 1 space per 500 sq. ft.

Retail, 2,500 – 5,000
sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 500 sq. ft.

Retail, 5,000 sq. ft. or
more
1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft.

Industrial Uses
Artist’s Studio 1 space per 400 sq. ft. 1 space per 400 sq. ft. 1 space per 1,000 sq. ft.

Commercial Kitchens 1 space per 300 sq. ft. 1 space per 300 sq. ft. 1 space per 300 sq. ft.

Industry, General 1 space per 400 sq. ft. 1 space per 400 sq. ft. N/A Industry, Limited 1 space per 400 sq. ft. 1 space per 1,000 sq. ft. N/A Media Production
1 space per 400 sq. ft. of studio
space
1 space per 400 sq. ft. 1 space per 500 sq. ft. 1 space per 300 sq. ft. of editing space
1 space per 300 sq. ft. of
administrative space
Research and
Development 1 space per 300 sq. ft. 1 space per 1,000 sq. ft. N/A

10.C.a
Packet Pg. 789 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 58 TABLE 9.28.060: PARKING REGULATIONS BY USE AND LOCATION Land Use
Classification
Citywide (Excluding Parking
Overlay Area 1, Downtown
Community Plan Area, and
Bergamot Area Plan Area) Parking Overlay Area 1
Downtown Community Plan
Area (maximum parking
allowed)
Warehousing, Storage, and Distribution
Indoor Warehousing
and Storage 1 space per 1,000 sq. ft. 1 space per 1,000 sq. ft. N/A Personal Storage 1 space per 4,000 sq. ft. 1 space per 4,000 sq. ft. N/A Wholesaling and
Distribution 1 space per 1,000 sq. ft. 1 space per 1,000 sq. ft. N/A Section 13. Santa Monica Municipal Code Section 9.28.080 is hereby amended to read as follows:

9.28.080 Loading Spaces
A. Purpose. Loading spaces are required to ensure adequate areas for loading purposes for all on-site uses so that commercial and passenger loading activities will be conducted without negatively affecting traffic safety or the quality of abutting public streets for people walking, bicycling, or driving. Loading spaces also facilitate low-car-use lifestyles by supporting shared delivery and passenger transportation services.

B. Applicability. The regulations in this Section shall apply to existing and proposed projects with new buildings, additions, or changes of use, and shall govern design of both required and non-required loading areas, except as provided in 9.28.080(C), Parking and Loading Operations Plan.

C. Parking and Loading Operations Plan.

1. Except as provided in paragraph 2, below, no building permit shall be issued for a change of use of up to 5,000 square feet unless the Director has reviewed and approved a parking and loading operations plan for the proposed project. The Director may, in accordance with the requirements of this Section 9.28.080, approve a parking

10.C.a
Packet Pg. 790 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 59 and loading operations plan that results in a waiver or reduction in the number and/or dimensions of loading areas and spaces otherwise required under this Section 9.28.080.

2. Notwithstanding the provisions of paragraph 1, above, no building permit shall be issued for a new building, addition, enlargement of use, or change in use within the Downtown Community Plan Area, excluding the Ocean Transition (OT) District, which shall be subject to the provisions of paragraph, 1, above, unless the Director has reviewed and approved a parking and loading operations plan for the proposed project. The Director may, in accordance with the requirements of this Section 9.28.080, approve a parking and loading operations plan that results in a waiver or reduction in the number and/or dimensions of loading areas and spaces otherwise required under this Section

9.28.080.

3. Review Procedure. The parking and loading operations plan shall include information as deemed appropriate by the Director for approval, including, but not limited to, plans, prior uses, easements, and other items necessary or relevant to describe existing conditions and the proposed project. The Director may approve a parking and loading operations plan upon a determination that the plan is not in conflict with other project operations and impacts to the public right-of-way, which may include, but not be limited to, impacts to resource, recovery and recycling operations, noise impacts, and public safety concerns. When determining whether to grant a waiver of a loading requirement, the Director shall consider existing site conditions, including the location of existing improvements, and whether the abutting rights-of way can accommodate loading without disruption to traffic circulation, public health and safety services (e.g. police, fire,

10.C.a
Packet Pg. 791 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 60 etc.), and public infrastructure and utilities. No waiver shall be granted for a semi-tractor trailer loading space.

D. Submittal of Loading Plan. As part of the application for all applicable projects, a loading plan shall be submitted. The plan shall include a site plan dimensioning all required and non-required loading spaces and indicating the path of travel to the space and the path of travel for the goods or passengers from the loading space. The approved loading plan shall be retained on-site at all times and shall be made available to all site users.

E. Loading Space Dimensions. Loading spaces shall comply with the following standards, as required in this Section. Loading spaces shall not count as parking spaces.

1. A standard loading space shall be at least 30 feet long, 12 feet wide, and have a clearance of 14 feet.

2. A semi-tractor trailer loading space shall be at least 65 feet long, 15 feet wide, and have a clearance of 14 feet.

3. A passenger loading space shall be at least 18 feet long and 10 feet wide.

Design should not reduce pedestrian orientation of the site or increase the number of curb-cuts and shall not require pedestrians to cross a driveway, parking aisle, alley, or street in order to reach the building entrance. The spaces must be accessible without a key or access card and located as close as practicable to the building entrance or passenger elevator.

F. Number of Loading Spaces Required. Projects shall provide loading spaces as follows:

10.C.a
Packet Pg. 792 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 61 1. Residential Only.
a. Projects with more than 50 units shall be required to provide 1 standard loading space.

2. Commercial Only.
a. Projects with 2,500 or less square feet of floor area shall not be required to provide loading.
b. Projects with 2,501 to 7,500 square feet of floor area shall provide 1 passenger loading space at grade.
c. Projects with 7,501 to 50,000 square feet of floor area shall provide 1 standard loading space; however, if the use includes a market, restaurant, or other food sales and service of more than 5,000 square feet of floor area, the required loading space shall be a semi-tractor trailer loading space. d. Projects with 50,000 or more square feet of floor area shall provide 1 passenger loading space and one standard loading space; however, if the use includes a market, restaurant, or other food sales and service of more than 5,000 square feet of floor area, the required loading space shall be a semi-tractor trailer loading space.

3. Mixed-Use Projects. Mixed-use projects shall provide the required loading spaces for the use that requires the greater number of loading spaces. If the number of required loading spaces for the residential and commercial uses is equal, the loading space with the greater dimensional requirements shall be required.

4. Schools and Day Care Centers. Schools and day care centers shall provide loading spaces based on enrollment as follows:

10.C.a
Packet Pg. 793 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 62 Table 9.28.080.E.4: SCHOOLS AND DAY CARE CENTER LOADING SPACES Enrollment (students) Loading Requirement
1-20 2 Passenger
21-60 4 Passenger
61-299 6 Passenger
1 Standard
300 and over 8 Passenger
1 Standard
In addition, uses of this type with less than 61 students and an on-site cafeteria or similar food service shall provide one standard loading space.

5. All projects with more than 100,000 square feet of Commercial Use floor area: The Director may require additional loading spaces based on the project’s needs and site feasibility.

G. Location of Loading Spaces. Loading areas shall be located as follows:

1. All loading facilities shall be provided off-street and within the subject property. The Director may authorize up to one required on-street passenger loading space along a frontage curb for certain designated times for schools and Child Care and Early Education Facilities.

2. Loading spaces shall be located adjacent to building door openings.

3. Loading spaces shall be situated to minimize interference with automobile, pedestrian, and bicycle paths of travel.

4. Loading spaces shall be situated to avoid adverse impacts upon neighboring properties, including noise pollution.

5. Loading spaces shall be accessible from an alley, or if no alley is adjacent to the site, a minor roadway.

10.C.a
Packet Pg. 794 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 63 6. Loading spaces shall be located in the required rear setback provided that it is not located in any required landscaped area and provided that no portion of a street or alley is counted as part of the required loading area.

H. Design of Loading Spaces.

1. Screening. Loading areas adjacent to residential uses or public streets or alleys shall be screened or a design shall be provided for approval by the Director.

2. Identification. Loading areas shall be designed, laid out, and clearly marked as being distinct from required parking spaces and aisles, unless the City approves the use of the parking area as an undesignated overlay loading area during non-business hours.

3. Obstructions Prohibited. No walkway, mechanical equipment, utility, waste collection/disposal receptacle, or other equipment or fixture may be placed in any loading area.

I. Loading Space(s) Driveways and Maneuvering Areas. Each on-site loading space required by this Chapter shall be provided with driveways for ingress and egress and maneuvering space of the same type and meeting the same criteria required for onsite parking spaces. Truck-maneuvering areas shall not encroach into required parking areas, travelways, or street rights-of-way. This requirement may be modified upon a finding by the Director that sufficient space is provided so that truck-maneuvering areas will not interfere with vehicle and pedestrian circulation.

J. Exceptions for Buildings under 10,000 Square Feet. Notwithstanding the requirements of this Chapter, a waiver or reduction in the number and/or dimensions of loading areas and spaces may be permitted by the Director for projects that will result in

10.C.a
Packet Pg. 795 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 64 a total of less than 10,000 square feet on the property if it is determined that the only feasible location for a loading zone within the project boundaries will detract from the project’s pedestrian orientation and thereby not meet the City’s intent to create active, lively streetscapes.

K. Exceptions to Providing Semi-Tractor Trailer Loading. Notwithstanding the requirements of this Chapter, if a project is adjacent to an alley and the Director determines that the provision of parking for a semi-tractor trailer is not feasible, a 10-foot by 50-foot area parallel and adjacent to the alley may be dedicated for loading and unloading. No projections may be permitted if they would otherwise render the area inadequate for loading.

Section 14. Santa Monica Municipal Code Section 9.31.040 is hereby amended to read as follows:

9.31.040 Alcoholic Beverage Sales
A. Purpose.

1. To limit the potential for community problems such as public drunkenness, drunk driving, traffic accidents, violent crime, noise, and nuisance from an overabundance or overconcentration of the availability of alcohol and its consumption. To regulate traditional alcohol outlets, including bars, restaurants, liquor stores, and supermarkets, as well as new types of alcohol outlets, to ensure that public health, safety, and welfare are not threatened.

2. To establish control measures that will permit the City to review and approve new alcohol outlets on a case-by-case basis and to condition that approval based on the specific type of alcohol outlet, neighborhood location, and potential problems involved.

10.C.a
Packet Pg. 796 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 65 B. Conditional Use Permit Required. No person shall dispense for sale or other consideration, alcoholic beverages, including beer, wine, malt beverages, and distilled spirits, for on-site or off-site consumption without first obtaining a Conditional Use Permit unless the proposed use has received an Alcohol Exemption Zoning Conformance Permit in accordance with subsection D or is otherwise determined to be exempt after a Zoning Conformance Review in accordance with subsection E.

C. Findings for Approval of Conditional Use Permit. The Planning Commission, or the City Council on appeal, may approve the dispensing, for sale or other consideration, alcoholic beverages, including beer, wine, malt beverages, and distilled spirits for on-site or off-site consumption only if, in addition to the required findings for Conditional Use Permits contained in Section 9.41.060, Required Findings (for a Conditional Use Permit), all of the following findings can be made in an affirmative manner:

1. The proposed alcohol sales will not adversely affect the welfare of neighborhood residents in a significant manner;

2. The proposed alcohol sales will not contribute to an undue concentration of alcohol outlets in the area;

3. The proposed alcohol sales will not detrimentally affect nearby neighborhoods, considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets; and

4. The sale of alcohol will not increase traffic congestion or generate a demand for parking that will adversely affect surrounding businesses and residents.

D. Alcohol Exemption Zoning Conformance Permit.

10.C.a
Packet Pg. 797 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 66 1. Citywide Excluding Third Street Promenade Area and Santa Monica Pier.

Except as provided in subsections 2 and 3, below, limited and full-service restaurants that offer alcoholic beverages incidental to meal service shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons, and the counter area shall not function as a separate bar area;
b. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted;
c. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The establishment shall serve food to patrons during all hours the establishment is open for customers; d. The premises shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises;
e. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license;
f. No video or other amusement games shall be permitted on the premises;
g. Entertainment may only be permitted in the manner set forth in Section 9.31.290, Restaurants with Entertainment;

10.C.a
Packet Pg. 798 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 67 h. The primary use of any outdoor dining area shall be for seated meal service. Patrons who are standing in the outdoor seating area shall not be served; i. The operation shall at all times be conducted in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator shall control noisy patrons leaving the restaurant; j. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 12:00 a.m. with complete closure and all employees vacated from the building by 1:00 a.m. All alcoholic beverages must be removed from the outdoor dining area no later than 11:00 p.m. Sunday through Thursday. No after-hours operation is permitted;
k. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer. All food items shall be available from the premises’ full service menu;
l. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted.

There shall not be any age limitation imposed restricting access to any portion of the restaurant;

10.C.a
Packet Pg. 799 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 68 m. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the restaurant; n. Establishments with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code; o. Prior to occupancy, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues;
p. Prior to occupancy, the operator shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABCsponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator shall provide the City with an annual report regarding compliance with this requirement. The operator shall be subject to any future Citywide alcohol awareness training program affecting similar establishments;

10.C.a
Packet Pg. 800 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 69 q. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the State ABC;
r. Prior to occupancy, the operator shall submit a plan describing the establishment’s designated driver program, which shall be offered by the operator to the establishment’s patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic drink for every party of 2 or more ordering alcoholic beverages;
s. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to please not litter or block driveways in the neighborhood;
t. Employees of the establishment shall walk a 100-foot radius from the facility at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons; and u. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director.
v. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

10.C.a
Packet Pg. 801 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 70 2. Third Street Promenade Area. Notwithstanding the provisions of paragraph 1, above, in the Third Street Promenade Area, limited and full-service restaurants, food halls, bars/nightclubs/lounges, and small and medium scale general retail sales shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
b. From 8:00 am until at least 10:00 p.m., food service shall be available at all times when alcohol is being served.
c. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
d. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
e. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups.
f. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.

10.C.a
Packet Pg. 802 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 71 g. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless food service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer.
h. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the premises.
i. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. j. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
k. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall

10.C.a
Packet Pg. 803 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 72 require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
l. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
m. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. n. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
o. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons.

10.C.a
Packet Pg. 804 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 73 p. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director.
q. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

3. Santa Monica Pier. Notwithstanding the provisions of paragraph 1, above, limited and full service restaurants, bars/nightclubs/lounges, food halls, and small and medium scale general retail sales on the Santa Monica Pier shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
b. From 8:00 am until at least 10:00 p.m., food service shall be available at all times when alcohol is being served.
c. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
d. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.

10.C.a
Packet Pg. 805 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 74 e. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups.
f. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
g. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless food service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer.
h. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the premises.
i. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. j. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.

10.C.a
Packet Pg. 806 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 75 k. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
l. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
m. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will

10.C.a
Packet Pg. 807 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 76 inform patrons of the program, such as by offering on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. n. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
o. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. p. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director.
q. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

4. With respect to the Director’s decision for Alcohol Exemption Zoning Conformance Permits for restaurants with over 50 seats, within 2 business days from the date when the determination has been made concerning the application and posted on the City’s website, the Director shall transmit a notice of determination that summarizes the determination and provides a website link to the Statement of Official Action to the applicant at the address shown on the application and to all property owners and residential and commercial tenants

10.C.a
Packet Pg. 808 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 77 within a radius of 750 feet from the exterior boundaries of the property involved in the application.

E. Zoning Conformance Review.

1. When an existing alcohol outlet without a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review in accordance with the following:
a. Except as provided in paragraph b, below, an existing alcohol outlet that was lawfully established and is nonconforming solely due to the lack of an approved Conditional Use Permit is exempt from the requirements of this Section if the licensed premises have remained in continuous operation without substantial change in mode or character of operation. Approval of a Conditional Use Permit shall be required for a change in the licensed classification. The operation of an existing nonconforming alcohol outlet shall be considered lapsed and a Conditional Use Permit shall be required where operations have been discontinued for a period of over 1 year.
i. The 1-year period to determine that a nonconforming alcohol outlet has been abandoned shall commence when the use ceases and any one of the following occurs:
(1) The business license lapses;
(2) The site is vacated;
(3) The lease is terminated;
(4) Utilities are terminated; or

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Packet Pg. 809 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 78 (5) A conforming use that meets the applicable
requirements of this Article is lawfully established in the space previously occupied by the nonconforming alcohol outlet. ii. Once the 1-year period has commenced under Subsection (E)(1)(a)(i) that period shall only be terminated if the nonconforming alcohol outlet is fully licensed, permitted, and operational for 60 continuous days.

Operational shall mean that the nonconforming alcohol outlet is open for business to the public and provides services typically associated with the nonconforming alcohol outlet during the hours and days that are customary for that nonconforming alcohol outlet.
iii. Cessation of use due to remodeling shall not be considered abandonment so long as building permits are active in accordance with Chapter 8.08 of the Municipal Code. However, if the building permit expires before the use resumes, the 1-year period under Subsection (E)(1)(a)(i) shall relate back and commence with the cessation of use. iv. Any existing premises where operations have been
discontinued for these time periods shall be required to obtain a Conditional Use Permit prior to resuming business whether or not a Conditional Use Permit was obtained in the past for the premises.
v. A substantial change in mode or character of operation shall include, but is not limited to, a change in operational hours that extends past 11:00 p.m. Sunday through Thursday and midnight on Friday and Saturday, a 5 percent increase in the floor area of the premises, a 10 percent increase

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Packet Pg. 810 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 79 in the shelf area used for the display of alcoholic beverages, queuing outside the establishment, age requirements for entry, checking identification at the door, implementing a cover charge, offering bottle service, or a 5 percent increase in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district. (1) Bottle service shall mean the service of any full bottle of liquor, wine, or beer, of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer.
(2) Cover charge shall mean requiring payment of customers before they may enter the establishment.
b. Notwithstanding the provisions of paragraph a, above, when an existing alcohol outlet (i) located within the Third Street Promenade Area and (ii) without a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to confirm consistency with current operations, except that an existing alcohol outlet that was lawfully established and is nonconforming solely due to the lack of an approved Conditional Use Permit shall not be subject to a zoning conformance review if the licensed premises have remained in continuous operation without substantial change in mode or character of operation. As used in this paragraph, a substantial change in mode or character of operation shall include, but is not limited to: a 5 percent increase in the floor

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Packet Pg. 811 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 80 area of the premises; a 10 percent increase in the shelf area used for the display of alcoholic beverages; implementing a cover charge, that is, requiring payment from customers before they may enter the premises; or a 5 percent increase in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district.

2. When an existing alcohol outlet with a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to ensure compliance with the existing CUP.

Section 15. Santa Monica Municipal Code Section 9.51.030 is hereby amended to read as follows:

9.51.030 Nonresidential Use Classifications
A. Public and Semi-Public Use Classifications.

1. Adult Day Care. Establishments providing non-medical care for persons 18 years of age or older on a less than 24-hour basis licensed by the State of California.

2. Cemetery. Establishments primarily engaged in operating sites or structures reserved for the interment of human or animal remains, including mausoleums, burial places, and memorial gardens.

3. Child Care and Early Education Facility. Establishments providing nonmedical care for persons less than 18 years of age on a less than 24-hour basis other than family day care (small and large). This classification includes commercial and nonprofit nursery schools, preschools, day care facilities for children, and any other day

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Packet Pg. 812 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 81 care facility licensed by the State of California. See Division 3, Section 9.31.120, Child Care and Early Education Facilities, for further details.

4. College and Trade School. Institutions of higher education providing curricula of a general, religious or professional nature, typically granting recognized degrees, including conference centers and academic retreats associated with such institutions. This classification includes junior colleges, business and computer schools, management training, technical and trade schools, but excludes personal instructional services such as music lessons.

5. Community Assembly. A facility for public or private meetings including community centers, banquet centers, religious assembly facilities, civic auditoriums, union halls, meeting halls for clubs and other membership organizations. This classification includes functionally related facilities for the use of members and attendees such as kitchens, multi-purpose rooms, and storage. It does not include gymnasiums or other sports facilities, convention centers, or facilities, such as day care centers and schools that are separately classified and regulated. See Division 3, Section 9.31.100, Community Assembly, for further details.

6. Community Garden. An area of land managed and maintained by a public or non-profit organization or a group of individuals to grow and harvest food crops and/or ornamental crops, such as flowers, for personal or group use, consumption, or donation.

Community gardens may be divided into separate plots for cultivation by 1 or more individuals or may be farmed collectively by members of the group and may include common areas maintained and used by group members. Community gardens may be accessory to public or institutional uses such as parks, schools, community centers, or

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Packet Pg. 813 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 82 religious assembly uses. This classification does not include gardens that are on a property in residential use when access is limited to those who reside on the property.

Community gardens do not include medical marijuana collectives.

7. Cultural Facility. Facilities engaged in activities to serve and promote aesthetic and educational interest in the community that are open to the public on a regular basis. This classification includes performing arts centers for theater, music, dance, and events; spaces for display or preservation of objects of interest in the arts or sciences; libraries; museums; historical sites; aquariums; art galleries; and zoos and botanical gardens. It does not include schools or institutions of higher education providing curricula of a general nature.

8. Hospitals and Clinics. State-licensed public, private, and non-profit facilities providing medical, surgical, mental health, or emergency medical services. This classification includes facilities for inpatient or outpatient treatment, including substanceabuse programs, as well as training, research, and administrative services for patients and employees. This classification excludes veterinary services and animal hospitals (see Animal Care, Sales, and Services).
a. Hospital. A facility providing medical, surgical, mental health, or services primarily on an in-patient basis, and including ancillary facilities for outpatient and emergency treatment, diagnostic services, training, research, administration, and services to patients, employees, or visitors. b. Clinic. A facility providing medical, mental health, or surgical services exclusively on an out-patient basis, including emergency treatment, diagnostic services, administration, and related services to patients who are not lodged

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Packet Pg. 814 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 83 overnight. Services may be available without a prior appointment. This classification includes licensed facilities offering substance abuse treatment, blood banks, plasma, dialysis centers, and emergency medical services offered exclusively on an out-patient basis. This classification does not include private medical and dental offices that typically require appointments and are usually smaller scale (see Offices, Medical and Dental).

9. Park and Recreation Facility. Parks, playgrounds, recreation facilities, trails, wildlife preserves, and related open spaces, which are open to the general public.

This classification also includes playing fields, courts, gymnasiums, swimming pools, picnic facilities, tennis courts, golf courses, and botanical gardens, as well as related food concessions or community centers within the facilities and restrooms within a primary structure or in an accessory structure on the same site.

10. Public Safety Facility. Facilities providing public-safety and emergency services, including police and fire protection and emergency medical services, with incidental storage, training and maintenance facilities.

11. School. Facilities for primary or secondary education, including public schools, charter schools, and private and parochial schools.

12. Social Service Center. Facilities providing a variety of supportive services for disabled and homeless individuals and other targeted groups on a less than 24-hour basis. Examples of services provided are counseling, meal programs, personal storage lockers, showers, instructional programs, television rooms, and meeting spaces. This classification is distinguished from licensed day care centers (see Adult Day Care and

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Packet Pg. 815 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 84 Child Care and Early Education Facility), clinics (see Clinic), and emergency shelters providing 24-hour or overnight care (see Emergency Shelter).

B. Commercial Use Classifications.

1. Adult-Oriented Business. See Sexually-Oriented Businesses.

2. Animal Care, Sales and Services. Retail sales and services related to the boarding, grooming, and care of household pets, including:
a. Grooming and Pet Store. Retail sales of animals and/or services, including grooming, for animals on a commercial basis. Typical uses include dog bathing and clipping salons, pet grooming shops, and pet stores and shops. This classification excludes dog walking and similar pet care services not carried out at a fixed location, and excludes pet supply stores that do not sell animals or provide on-site animal services (see General Retail Sales).
b. Kennel. A commercial, non-profit, or governmental facility for keeping, boarding, training, breeding or maintaining 4 or more dogs, cats, or other household pets not owned by the kennel owner or operator on a 24-hour basis.

This classification includes animal shelters and animal hospitals that provide boarding-only services for animals not receiving services on the site but excludes the provision by shops and hospitals of 24-hour accommodation of animals receiving medical services on site. This classification also includes kennels that, in addition to 24-hour accommodation, provide pet care for periods of less than 24 hours but it does not include facilities that provide pet day care exclusively or predominantly.

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Packet Pg. 816 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 85 c. Pet Day Care Service. A commercial, non-profit, or governmental facility for keeping 4 or more dogs, cats, or other household pets not owned by the kennel owner or operator primarily for periods of less than 24 hours. d. Veterinary Service. Veterinary services for domesticated animals.

This classification allows 24-hour accommodation of animals receiving medical services but does not include kennels.

3. Automobile/Vehicle Sales and Services. Retail or wholesale businesses that sell, rent, and/or repair automobiles, boats, recreational vehicles, trucks, vans, trailers, and motorcycles, including the following:
a. Alternative Fuels and Recharging Facility. A facility offering motor vehicle fuels not customarily offered by commercial refueling stations (e.g., LPG) as well as equipment to recharge electric-powered vehicles. This classification does not include facilities within public garages or other stations that are accessory to a permitted use.
b. Automobile Rental. Rental of automobiles. Typical uses include car rental agencies. See Division 3, Section 9.31.050, Automobile Rental, for further details.
c. Automobile Storage Parcel. Any property used for short- or long-term parking of vehicles for sale or lease at an automobile dealership or rental agency on a separate parcel from such agency or dealership.
d. Automobile/Vehicle Sales and Leasing. Sale or lease, retail or wholesale, of new or used automobiles, light trucks, motorcycles, motor homes, and trailers, together with associated repair services and parts sales for vehicles

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Packet Pg. 817 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 86 sold or leased by the manufacturer associated with the dealership. (For auto repair, see Automobile/Vehicle Service and Repair, Major and Minor.) This classification includes on-site facilities for maintaining an inventory of vehicles for sale or lease but excludes buildings and property on a separate site that are used for storing vehicles (see Automobile Storage Parcel). Typical uses include automobile dealers and recreational vehicle sales agencies. This classification also includes minor on-site preparation, washing, buffing, waxing, and detailing of vehicles for sale or vehicles repaired at the facility. Any outdoor preparation, washing, buffing, waxing, and detailing of vehicles shall comply with the standards of Section

9.31.080(C), (D), (M), (N), (P), and (Q). This classification does not include automobile brokerage and other establishments that solely provide services of arranging, negotiating, assisting, or effectuating the purchase of automobiles for others. See Division 3, Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage, for further details.
e. Automobile/Vehicle Repair, Major. Repair of automobiles, trucks, motorcycles, motor homes, boats and recreational vehicles, including the incidental sale, installation, and servicing of related equipment and parts. This classification includes auto repair shops, body and fender shops, transmission shops, wheel and brake shops, auto glass services, vehicle painting, tire sales and installation, and installation of car alarms, sound, telecommunications, and navigation systems, but excludes vehicle dismantling or salvaging and tire retreading or recapping. See Division 3, Section 9.31.060, Automobile/Vehicle Repair, Major and Minor, for further details.

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Packet Pg. 818 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 87 f. Automobile/Vehicle Service and Repair, Minor. The service and repair of automobiles, light-duty trucks, boats, and motorcycles, including the incidental sale, installation, and servicing of related equipment and parts. This classification includes the replacement of small automotive parts and liquids as an accessory use to a gasoline sales station or automotive accessories and supply store, as well as smog check quick-service oil, tune-up and brake and muffler shops where repairs are made or service provided in enclosed bays and no vehicles are stored overnight. This classification excludes disassembly, removal or replacement of major components such as engines, drive trains, transmissions or axles; automotive body and fender work, vehicle painting or other operations that generate excessive noise, objectionable odors or hazardous materials, and towing services. It also excludes repair of heavy trucks, limousines or construction vehicles. See Division 3, Section 9.31.060, Automobile/Vehicle Repair, Major and Minor, for further details.
g. Automobile/Vehicle Washing. Washing, waxing, or cleaning of automobiles or similar light vehicles, that are the principal use of a building, structure, or site, including self-serve washing facilities. See Division 3, Section

9.31.080, Automobile/Vehicle Washing, for further details. h. Large Vehicle and Equipment Sales, Service, and Rental. Sales, servicing, rental, fueling, and washing of large trucks, trailers, tractors, and other equipment used for construction, moving, agricultural, or landscape gardening activities. Includes large vehicle operation training facilities.

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Packet Pg. 819 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 88 i. Service Station. Establishments primarily engaged in retailing automotive fuels or retailing these fuels in combination with activities, such as providing minor automobile/vehicle repair services; selling automotive oils, replacement parts, and accessories; and/or providing accessory food and retail services. See Division 3, Section 9.31.320, Service Stations, for further details. j. Towing and Impound. Establishments primarily engaged in towing light or heavy motor vehicles, both local and long distance. These establishments may provide incidental services, such as vehicle storage and emergency road repair services (for automobile dismantling, see Salvage and Wrecking). This classification includes parcels used for storage of impounded vehicles.

4. Banks and Financial Institutions.
a. Bank and Credit Union. Financial institutions providing retail banking services. This classification includes only those institutions engaged in the on-site circulation of money, including credit unions, but excluding check-cashing businesses. For administration, headquarters, or other offices of banks and credit unions without retail banking services/on-site circulation of money (see Offices, Business and Professional).
b. Check Cashing Business. Establishments that, for compensation, engage in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose. This classification also includes the business of deferred deposits, whereby the check casher refrains from depositing a personal check written by a customer until a specific date pursuant to a written agreement as provided in Civil Code 1789.33. Check Cashing Businesses do not

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Packet Pg. 820 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 89 include State or Federally chartered banks, savings associations, credit unions, or industrial loan companies. They also do not include retail sellers engaged primarily in the business of selling consumer goods, such as consumables to retail buyers that cash checks or issue money orders incidental to their main purpose or business.

5. Bar. See Eating and Drinking Establishments.

6. Business Service. Establishments providing goods and services to other businesses on a fee or contract basis, including printing and copying, blueprint services, mailbox services, equipment rental and leasing, office security, custodial services, film processing, model building, and delivery services with 2 or fewer fleet vehicles on-site. (For 3 or more fleet vehicles, see Light Fleet-Based Services.)

7. Commercial Entertainment and Recreation. Provision of participant or spectator entertainment. This classification may include restaurants, snack bars, and other incidental food and beverage services to patrons. a. Cinema. Facilities for indoor display of films and motion pictures. b. Theater. Facilities designed and used for entertainment, including plays, comedy, and music, which typically contain a stage upon which movable scenery and theatrical appliances or musical instruments and equipment are used. c. Convention and Conference Centers. Facilities designed and used for conventions, conferences, seminars, trade shows, product displays, and other events in which groups gather to promote and share common interests.

Convention centers typically have at least one auditorium and may also contain concert halls, lecture halls, meeting rooms, and conference rooms, as well as

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Packet Pg. 821 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 90 accessory uses such as facilities for food preparation and serving and administrative offices. For conference facilities accessory to hotels, see Hotel and Motel.
d. Large-Scale Facility. This classification includes large outdoor facilities such as amusement and theme parks, sports stadiums and arenas, racetracks, amphitheaters, drive-in theaters, driving ranges, and golf courses. It also includes indoor facilities with 5,000 square feet or more in building area such as fitness centers, gymnasiums, handball, racquetball, or large tennis club facilities; ice or roller skating rinks; swimming or wave pools; miniature golf courses; bowling alleys; archery or indoor shooting ranges; and riding stables. e. Small-Scale Facility. This classification includes small, generally indoor facilities that occupy less than 5,000 square feet of building area, such as billiard parlors, card rooms, game arcades, dance halls, small tennis club facilities, poolrooms, and amusement arcades.
f. Fortunetelling. An establishment where a person or persons provide fortunetelling services and demand or receive, directly or indirectly, a fee or reward, or accept any donation for the exercise or exhibition of fortunetelling services, or give an exhibition of fortunetelling services at any place where a fee, donation or reward is charged or received, directly or indirectly as a condition of entry. Fortunetelling services shall include, but not be limited to, the telling of fortunes, forecasting of futures, or furnishing of any information not otherwise obtainable by the ordinary process of knowledge, by means of any occult or psychic power, faculty or force, psychic reading, occult reading, clairvoyance,

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Packet Pg. 822 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 91 clairaudience, cartomancy, psychometry, phrenology, spirits, mediumship, seership, prophecy, augury, astrology, palmistry, necromancy, mindreading, tarot card readings, tea leaves, telepathy or other craft, art, science, cards, talisman, charm, potion, magnetism, magnetized article or substance, crystal gazing, or magic of any kind or nature.

8. Eating and Drinking Establishments. Businesses primarily engaged in selling and serving prepared food and/or beverages for consumption on or off the premises.
a. Bar/Night Club/Lounge. Businesses that are licensed by the State to serve alcoholic beverages, including beer, wine and mixed drinks for consumption on the premises from a liquor service facility that is physically separate from the dining area and may be operated during hours when food is not served. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details. b. Restaurant, Full-Service. Restaurants providing food and beverage services to patrons who order and are served while seated and pay after eating.

Takeout service may also be provided. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, where applicable, for further details.
c. Restaurant, Limited-Service and Take-Out. Establishments where food and beverages may be consumed on the premises, taken out, or delivered.

This classification includes cafes, cafeterias, coffee shops, delicatessens, fastfood restaurants, sandwich shops, limited-service pizza parlors, self-service restaurants, ice cream and frozen yogurt shops, and snack bars with indoor or outdoor seating for customers. This classification includes bakeries that have

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Packet Pg. 823 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 92 tables for on-site consumption of products. It excludes catering services that do not sell food or beverages for on-site consumption (see Commercial Kitchen). See Division 3, Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.280, Restaurants, Limited Service and Take Out Only, where applicable, for further details.
d. Food Hall. Establishments consisting of three or more individuallylicensed businesses within an enclosed building where food and beverages may be consumed on the premises, taken out, or delivered, and may also include small retail venues. Patrons may be served while seated and pay after eating, or orders may be made at a walk-up window, counter, machine, or remotely, and payment made prior to food consumption. Characteristics of food halls include but are not limited to: shared entrance/lobby areas, compartmentalized spaces for individually licensed businesses, shared eating areas, shared restrooms, and shared “back of house” areas (e.g., storage, dishwashing, food preparation). Each compartmentalized space may have access to the exterior of the building, along with outdoor dining and seating areas, which may be shared with other businesses within the establishment.
e. With Drive-Through Facility. Establishments providing food and beverage services to patrons remaining in automobiles. Includes drive-up service. f. With Outdoor Dining and Seating Area. Provision of outdoor dining facilities on the same property or in the adjacent public right-of-way. See Division 3, Section 9.31.200, Outdoor Dining and Seating, for further details.

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Packet Pg. 824 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 93 9. Equipment Rental. Establishments whose primary activity is the rental of equipment, such as medical and party equipment, to individuals and business, and whose activities may include storage and delivery of items to customers.

10. Food and Beverage Sales. Retail sales of food and beverages for off-site preparation and consumption. Typical uses include food markets, groceries, and liquor stores.
a. Convenience Market. Retail establishments that sell a limited line of groceries, prepackaged food items, tobacco, magazines, and other household goods, primarily for off-premises consumption. These establishments typically have long or late hours of operation and occupy a relatively small building. This classification includes small retail stores located on the same parcel as or operated in conjunction with a Service Station but does not include delicatessens or specialty food shops. It excludes establishments that offer a sizeable assortment of fresh fruits and vegetables or fresh-cut meat (see General Market). See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details. b. Farmers Market. A location where the primary activity is the sale of agricultural products by producers and certified producers. Sales of ancillary products may occur at the location. An open air farmers market may only be operated by a local government agency.
c. General Market. Retail food markets of food and grocery items primarily for offsite preparation and consumption. Typical uses include supermarkets and specialty food stores such as retail bakeries; candy, nuts and confectionary stores; meat or produce markets; vitamin and health food stores;

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Packet Pg. 825 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 94 cheese stores; and delicatessens. This classification may include small-scale specialty food production with retail sales such as pasta shops. See Division 3, Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.150, General Markets in Residential Districts, where applicable, for further details. d. Liquor Store. Establishments primarily engaged in selling packaged alcoholic beverages for off-site consumption. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details.

11. Funeral Parlor and Mortuary. An establishment primarily engaged in the provision of services involving the care, preparation, or disposition of human remains and conducting memorial services. Typical uses include a crematory, columbarium, mausoleum, or mortuary.

12. Home Occupation. A use that is incidental and secondary to the primary residential use of a dwelling and compatible with surrounding residential uses. These uses include business, professional, and creative offices, food production, limited personal services, and urban agriculture. See Division 3, Section 9.31.160, Home Occupations for further details.

13. Instructional Services. Establishments that offer specialized programs in personal growth and development, typically in a classroom setting. Typical uses include classes or instruction in music, health, athletics, art, or academics. Instructional Services may include rehearsal studios as an accessory use. This use type excludes Colleges and Trade Schools and facilities that offer instructional services (see General Personal Services). This use type also excludes gyms, exercise clubs, or studios offering

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Packet Pg. 826 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 95 performing arts, martial arts, physical exercise, or yoga training and similar types of instruction. See Personal Services-Physical Training.

14. Live-Work. A unit that combines a work space and incidental residential space occupied and used by a single household in a structure that has been constructed for such use or converted from commercial or industrial use and structurally modified to accommodate residential occupancy and work activity in compliance with the Building Code. The working space is reserved for and regularly used by 1 or more occupants of the unit. See Division 3, Section 9.31.170, Live-Work Units, for further details.

15. Lodging. An establishment providing overnight accommodations to transient patrons who maintain a permanent place of residence elsewhere for payment for periods of 30 consecutive calendar days or less.
a. Bed and Breakfast. A residential structure that is in residential use in which the property owner or manager lives on site and within which up to 4 bedrooms are rented for overnight lodging and where meals may be provided. See Division 3, Section 9.31.090, Bed and Breakfasts, for further details. b. Hotel and Motel. An establishment providing temporary lodging to transient patrons. These establishments may provide additional services, such as conference and meeting rooms, restaurants, bars, or recreation facilities available to guests or to the general public. This use classification includes motor lodges, motels, apartment hotels, hostels and tourist courts, but does not include rooming houses, boarding houses, or private residential clubs, single-room occupancy housing, or bed and breakfast establishments within a single-unit residence.

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Packet Pg. 827 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 96 c. Vacation Rental. A property with a dwelling unit or guest house intended for permanent occupancy that is available for rent or hire for any person other than the primary owner for transient use for 30 days or less or is otherwise occupied or utilized on a transient basis for 30 days or less. Vacation rental does not include a Bed and Breakfast as defined above.

16. Maintenance and Repair Service. Establishments engaged in the maintenance or repair of office machines, household appliances, furniture, and similar items. This classification excludes maintenance and repair of motor vehicles or boats (see Automotive/Vehicle Sales and Services) and personal apparel (see Personal Services).

17. Mobile Food Truck Off-Street Venue. A location where the commercial vending of food occurs from parked vehicles.

18. Nursery and Garden Center. Establishments primarily engaged in retailing nursery and garden products—such as trees, shrubs, plants, seeds, bulbs, and sod—that are predominantly grown elsewhere. These establishments may sell a limited amount of a product they grow themselves. Fertilizer and soil products are stored and sold in packaged form only.

19. Offices. Offices of firms, organizations (for-profit and non-profit), and public agencies providing professional, executive, management, administrative or design services, such as accounting, architectural, computer software design, engineering, graphic design, interior design, investment, insurance, and legal offices, excluding banks and savings and loan associations with retail banking services (see Banks and Financial Institutions). This classification also includes offices where medical and dental services are provided by physicians, dentists, chiropractors, acupuncturists, optometrists, and

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Packet Pg. 828 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 97 similar medical professionals, including medical/dental laboratories within medical office buildings but excluding clinics or independent research laboratory facilities (see Research and Development) and hospitals (see Hospital and Clinic). a. Business and Professional. Offices of firms, organizations, or agencies providing professional, executive, management, administrative, financial, accounting, or legal services, but excluding those that primarily provide direct services to patrons that visit the office (see Offices, Walk-In Clientele). b. Creative. Offices, production spaces, and work spaces of establishments that are in the business of the development, publishing, production, or distribution of creative property, including, but not limited to, advertising, architectural services, broadcasting, communications, computer software design, media content, entertainment, engineering, fashion design, film distribution, graphic design, interior design, internet content, landscape design, photography, and similar uses.
c. Medical and Dental. Offices providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors and dentists; medical and dental laboratories that see patients; and similar practitioners of medical and healing arts for humans licensed for such practice by the State of California. Incidental medical and/or dental research within the office is considered part of the office use if it supports the on-site patient services. d. Walk-In Clientele. Offices predominantly providing direct services to patrons or clients and do not require appointments. This use classification includes employment agencies, insurance agent offices, real estate offices, travel agencies,

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Packet Pg. 829 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 98 utility company offices, and offices for elected officials. It does not include banks or check-cashing facilities, which are separately classified and regulated (see Banks and Financial Institutions).

20. Parking, Public or Private. Structures and surface lots offering parking for a fee when such use is not incidental to another on-site activity.

21. Personal Service.
a. General Personal Services. Provision of recurrently needed services of a personal nature. This classification includes barber shops and beauty salons, seamstresses, tailors, dry cleaning agents (excluding large-scale bulk cleaning plants), shoe repair shops, self-service laundries, video rental stores, photocopying and photo finishing services, and travel agencies mainly intended for the consumer. This classification also includes massage establishments that are in full compliance with the applicable provisions of Chapter 6.104, Massage Regulations, of the Santa Monica Municipal Code, and in which all persons engaged in the practice of massage are certified pursuant to the California Business and Professions Code Section 4612. This classification does not include gyms, exercise clubs, or studios offering performing arts, martial arts, physical exercise, or yoga training and similar types of instruction. See Division 3, Section

9.31.230, Personal Service, for further details.
b. Personal Services, Physical Training. Gyms, exercise clubs, or studios less than 5,000 square feet offering martial arts, physical exercise, yoga training and similar types of instruction to classes and groups. This classification also includes exclusively youth-serving studios of less than 3,000 square feet

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Packet Pg. 830 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 99 offering performing arts, dance, martial arts, physical exercise, and similar types of instruction to classes and groups of more than 5 persons. c. Tattoo or Body Modification Parlor. An establishment whose principal business activity is one or more of the following: (i) using ink or other substances that result in the permanent coloration of the skin through the use of needles or other instruments designed to contact or puncture the skin; or (ii) creation of an opening in the body of a person for the purpose of inserting jewelry or other decoration. See Division 3, Section 9.31.230, Personal Service, for further details.

22. Retail Sales.
a. Building Materials and Services. Retail sales or rental of building supplies or equipment. This classification includes lumberyards, tool and equipment sales or rental establishments, and includes establishments devoted principally to taxable retail sales to individuals for their own use. This definition does not include Construction and Material Yards, hardware stores less than 10,000 square feet or establishments engaged in the business of selling, leasing, or otherwise transferring any firearm or ammunitions.
b. General Retail Sales, Small-Scale. The retail sale or rental of merchandise not specifically listed under another use classification. This classification includes retail establishments with 25,000 square feet or less of sales area; including department stores, clothing stores, furniture stores, pet supply stores, small hardware and garden supply/nurseries stores (with 10,000 square feet or less of floor area), and businesses retailing goods including, but not limited to, the following: toys, hobby materials, handcrafted items, jewelry, cameras,

10.C.a
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photographic supplies and services (including portraiture and retail photo processing), medical supplies and equipment, pharmacies, electronic equipment, sporting goods, kitchen utensils, hardware, appliances, antiques, art galleries, art supplies and services, paint and wallpaper, carpeting and floor covering, office supplies, bicycles, video rental, and new automotive parts and accessories (excluding vehicle service and installation). Retail sales may be combined with other services such as office machine, computer, electronics, and similar smallitem repairs. See Division 3, Sections 9.31.210, Outdoor Newsstands, and

9.31.220, Outdoor Retail Display and Sales, where applicable, for further details. c. General Retail Sales, Medium-Scale. The retail sale or rental of merchandise not specifically listed under another use classification. This classification includes retail establishments with more than 25,000 square feet but not more than 80,000 square feet of sales area.
d. General Retail Sales, Large-Scale. Retail establishments with over 80,000 square feet of sales area that sell merchandise and bulk goods for individual consumption, including membership warehouse clubs, where sales of grocery items do not occupy more than 25 percent of the floor area. e. Medical Marijuana Dispensary. Any facility, building, structure, or fixed location where 1 or more qualified patients and/or persons with identification cards and/or primary caregivers cultivate, distribute, sell, dispense, transmit, process, exchange, give away, or otherwise make available marijuana for medical purposes. The terms “primary caregiver,” “qualified patient,” and “person with an

10.C.a
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identification card” shall be as defined in California Health and Safety Code Section 11362.5 et seq.
i. A medical marijuana dispensary shall not include the following uses, as long as the location of such uses are otherwise regulated by applicable law and as long as any such use complies strictly with applicable law, including, but not limited to, California Health and Safety Code Section 11362.5 et seq.:
(1) A clinic licensed pursuant to Chapter 1 of Division 2 of the California Health and Safety Code.
(2) A health care facility licensed pursuant to Chapter 2 of Division 2 of the California Health and Safety Code.
(3) A residential care facility for persons with chronic lifethreatening illness licensed pursuant to Chapter 3.01 of Division 2 of the California Health and Safety Code.
(4) A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the California Health and Safety Code.
(5) A residential hospice, or a home health agency
licensed pursuant to Chapter 8 of the California Health and Safety Code.
ii. A medical marijuana dispensary shall also not include any dwelling unit where qualified patients or persons with an identification card permanently reside and collectively or cooperatively cultivate marijuana on10.C.a Packet Pg. 833 Attachment: CDD-Ord-Economic Recovery 2d (5431 : IZO - Second Reading) 102
site for their own personal medical use and does not include the provision, cultivation, or distribution of medical marijuana at this dwelling unit by primary caregivers for the personal medical use of the qualified patients or persons with an identification card who have designated the individual(s) as a primary caregiver, in accordance with California Health and Safety Code Sections 11362.5 and 11362.7 et seq.
f. Pawn Shop. Establishments engaged in the buying or selling of new or secondhand merchandise and offering loans in exchange for personal property. g. Swap Meet. Any indoor or outdoor place, in an approved location, or for an approved activity where new or used goods or secondhand personal property is offered for sale or exchange to the general public by a multitude of individual licensed vendors, usually in compartmentalized spaces. The term swap meet is interchangeable with and applicable to: flea markets, auctions, open air markets, outdoor sales activities, or other similarly named or labeled activities; but does not include supermarket or department store retail operations. See Division 3, Sections 9.31.360, Swap Meets, and 9.31.220, Outdoor Retail Display and Sales, for further details.

Santa Monica City CouncilOctober 25, 2022

Santa Monica City Council
October 25, 2022