City Council Meeting: May 23, 2023 Santa Monica, California
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING THE CITY’S SEWER SYSTEM MANAGEMENT PLAN (SSMP) UPDATE
AND CERTIFYING IT IS CONSISTENT WITH STATEWIDE GENERAL WASTE DISCHARGE REQUIREMENTS (WDRs) FOR SANITARY SEWER SYSTEMS WHEREAS, on May 2, 2006, the State Water Resources Control Board (SWRCB) adopted Order No. 2006-003, the Statewide General Waste Discharge Requirements (WDRs) for Sanitary Sewer Systems; and
WHEREAS, these WDRs are the regulatory mechanism for all public agencies that own or operate sanitary sewer collection systems greater than one mile in length and that collect and convey untreated or partially treated wastewater to a publicly owned treatment facility; and
WHEREAS, the Statewide General WDRs for Sanitary Sewer Systems requires the development and implementation of a system-specific Sewer System Management Plan (SSMP); and
WHEREAS, on September 8, 2009, Council adopted the initial SSMP document; and
WHEREAS, on August 13, 2014, and August 8, 2019, the City re-certified the SSMP through the SWRCB’s regulatory database, California Integrated Water Quality System (CIWQS).
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Packet Pg. 362 Attachment: Resolution (5683 : Sanitary Sewer Management Plan)
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Recitals above are incorporated herein by this reference.
SECTION 2. The Sewer System Management Plan Update is consistent with Statewide General Waste Discharge Requirements for Sanitary Sewer Systems.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution of the City Council, 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. 363 Attachment: Resolution (5683 : Sanitary Sewer Management Plan) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.D
1 of 4
To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid to Battery Power, Inc. for Fire Department and Transit Bus Batteries
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #4451 to Battery Power, Inc. to provide heavy-duty low-voltage batteries for use on transit buses and Fire Department heavy-duty apparatus; and
3. Authorize the City Manager to negotiate and execute an agreement with Battery Power, Inc., in an amount not to exceed $675,524, including a $61,411 contingency, and a 2% annual cost escalator, over a five-year period with future year funding contingent on Council budget approval.
Summary
The City’s fleet of transit buses and heavy-duty Fire Department apparatus experience heavy, daily use in service of the Department of Transportation’s and Fire Departments’ core missions. The Big Blue Bus, a division of the Department of Transportation (DOT), operates 195 transit buses running approximately 4.5 million miles across 69 square miles of Santa Monica and western Los Angeles. The Fire Department operates 25 heavy-duty apparatus to support its public safety services. These vehicles require regular replacement of batteries to ensure reliability. Staff recommends that Bid #4451 be awarded to Battery Power, Inc. to provide batteries for transit buses and heavy-duty Fire Department apparatus for a five-year period in an amount not to exceed $675,524.
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Discussion
The City’s fleet of transit buses and heavy-duty Fire Department apparatus require heavy-duty batteries that can withstand extended periods of amperage draw from electronic equipment that continues to operate after the engine has been shut off while retaining enough charge to operate the engine’s starter motor. These batteries power critical electronic systems including onboard surveillance, methane detection, head sign, and farebox systems that continue to draw power after the engine has been shut off. In addition to withstanding the constant amperage draw of these systems, these batteries must also be able to charge quickly once the engine has been started.
DOT has historically identified DEKA and Odyssey batteries as being capable of operating successfully under the heavy-duty cycles placed on transit buses and Fire vehicles. The award of Bid #4451 to Battery Power, Inc. would allow DOT staff to replace bad batteries in a timely manner allowing for the continued operation of transit buses and Fire apparatus.
Vendor Selection
Bidder Recommendation
Best Bidder Battery Power, Inc.
Evaluation Criteria Price: ability, capacity, and skill of bidder to provide Odyssey and DEKA batteries, and experience
Municipal Code SMMC 2.24.180
Bid Data
Date Posted Posted On
Advertised In (City Charter &
SMMC)
Vendors
Downloaded
Date
Publicly
Opened
3/31/2023
City's Online
Bidding Site Santa Monica Daily Press 9 4/19/2023
Submittals Received
Battery Power, Inc. $ 675,524
Advanced Battery Systems, Inc. $ 739,455
Elliot Auto Supply Co Inc. $ 739,611
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Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide service, experience, and capacity to provide reliable service. Staff recommends Battery Power, Inc. as the best bidder based on experience providing heavy-duty vehicle batteries to SMDOT and as the lowest cost bidder.
Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The contract award would address the maintenance responsibilities of existing transit buses, and therefore, it has been determined that the project is categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund and the General Fund to award a purchase order with Battery Power, Inc. for the purchase of heavy-duty vehicle batteries. Funding will be included in the FY 2023-25 Proposed Biennial Budget for Council approval. Future year funding is contingent on Council budget approval.
Purchase Order Request
FY2023-24 Budget
Request Amount
Future Years
Amount Department Account # Total Purchase Order Amount $113,007 $537,517 C6004750.689000 $650,524
$5,000 $20,000 01190001.529470 $25,000
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Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Battery Power Oaks
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Packet Pg. 368 Attachment: Battery Power Oaks (5700 : Award Bid for Fire Department and Transit Bus Batteries) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.E
1 of 4
To: Mayor and City Council
From: Ramon Batista, Police Chief, Police Department
Subject: Approval of Second Modification of Agreement #9798 with DE 100 Wilshire, LLC for Rooftop Space at 100 Wilshire
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a second modification to agreement #9798 in the amount of $409,000 with DE 100 Wilshire, LLC for leasing of rooftop space at 100 Wilshire Boulevard for the Police Department.
This will result in a 15-year amended agreement with a new total amount not to exceed $978,356, with future year funding contingent on Council budget approval.
2. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines.
Summary
The City leases rooftop space at 100 Wilshire Boulevard to house its public safety radio communication infrastructure. This site is a strategic location for the communications equipment due to the building’s height, its centrality within the downtown area, and the building’s existing emergency power equipment. There are no practical alternatives for relocating the equipment presently installed at 100 Wilshire Blvd and the current license agreement runs through June 2023. Staff recommends modifying the existing agreement for an additional five years, through June 30, 2028.
Discussion
The City’s public safety radio communications infrastructure is comprised of equipment located on the rooftop of 100 Wilshire Boulevard and the Mount Olivette Reservoir.
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These two locations were selected during the radio system’s engineering process due to their height and the resulting coverage they provide. The rooftop space located at 100 Wilshire Boulevard is critical to the continued operation of the City’s radio systems.
The building is the ideal height for proper operation of the infrastructure equipment, it is centrally located in the downtown area, and has the appropriate emergency power equipment for operation during an electrical outage.
In September 2013, Council authorized a license agreement with Douglas Emmett 1998, LLC, DBA DE 100 Wilshire, LLC., for a term of five years through June 2018, with an option to extend the agreement for another five years through June 2023. 100 Wilshire continues to be the best location in the City to house the City’s public safety radio communications infrastructure. Relocating the equipment to a different site that does not have the same profile and geographic location would degrade communications for the Police Department, the Fire Department, and the Office of Emergency Management. The process to relocate the equipment to a new location would also require a complete system redesign, potentially costing several million dollars. Staff recommends extending the term of the Rooftop License Agreement for an additional five-years, securing space through June 2028.
Environmental Review
The extension of the license agreement for communication infrastructure is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines. Section 15301 provides Class 1 (existing facilities) exemption for projects that consists of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The license extension would not result in any modifications to existing facilities. The existing communications equipment would be maintained and the extension would not expand or materially change existing facilities or operations.
Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.
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Past Council Actions
Meeting Date Description
09/10/13
(attachment A)
Council authorized a license agreement for rooftop space at 100 Wilshire Boulevard
08/14/18
(attachment B)
Council authorized an extension to the existing license agreement at 100 Wilshire Boulevard, resulting in a 10-year amended agreement with a new total not to exceed $562,156.
03/23/21
(attachment C)
Council authorized a modification to include the utility costs required for the City’s operation of its communication equipment with a new total amount not to exceed $569,356.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase the amount of agreement with DE 100 Wilshire, LLC for rooftop space at 100 Wilshire Boulevard. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2022-23
Budget
Modified
Request
Amount
Future
Years Dept Account #
Total
Revised
Contract
Amount
9798 $569,356 $2,750 $406,250 01180005.524700 $978,356
Prepared By: Jose Arroyo, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Staff Report - September 10, 2013
B. Staff Report - August 14, 2018 (Web Link)
C. Staff Report - March 23, 2021 (Web Link)
D. CT 9798 (Original Agreement)
E. CT 9798 (Renewal Letter)
F. CT 9798 (Modification 1)
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G. DE 100 Wilshire LLC - Oaks Initiative
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2/2/2021 New License Agreement for Rooftop Space at 100 Wilshire Boulevard for Public Safety Radio Communication System Infrastructure - City… https://www.smgov.net/departments/council/agendas/2013/20130910/s2013091003-I.htm 1/3 City Council Meeting: September 10, 2013
Agenda Item: 3-I
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: New License Agreement for Rooftop Space at 100 Wilshire Boulevard for Public Safety Radio Communication System Infrastructure.
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a new License Agreement with Douglas Emmett 1998, LLC, a Delaware company, for lease of rooftop space at 100 Wilshire Boulevard for a five year term, in an amount not to exceed $263,750.
Executive Summary
The City currently occupies rooftop space at 100 Wilshire Boulevard for the Police and Fire Department’s radio communication system infrastructure. The rooftop space has been occupied by the City since 1987 for the purpose of operating the Police and Fire radio systems. The site is a strategic location for the communications equipment due to the building’s height, central location in the downtown area, and emergency power equipment. The new License Agreement would enable the City to continue using the space through June 2018 and would not exceed $263,750 for a five-year period.
Background
In 1987, the City was granted permission to use rooftop space at 100 Wilshire Boulevard for operation of the Police Department’s radio system. Between 1987 and 1999 the City paid an annual rental fee for the space. On March 23, 1999, Council authorized a License Agreement for the rooftop space at 100 Wilshire Boulevard to be used for continued operation of the Police and Fire Department’s radio communication systems. In May 2003, the City executed a First Amendment to the License Agreement extending the term through June 2008. Since then, the City continually occupied the rooftop space and paid rental fees annually via a Purchase Order through FY 2012-13. The parties were otherwise operating under the terms and conditions of the License Agreement. On May 28, 2013, Council authorized a Second Modification to the License Agreement. As the parties were going through the process of executing the Second Modification, and upon further review of the License Agreement, it was determined that because the original Lease Agreement expired in June 2008, although annual rental fees were paid, there was no License
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Packet Pg. 373 Attachment: Staff Report - September 10, 2013 (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) 2/2/2021 New License Agreement for Rooftop Space at 100 Wilshire Boulevard for Public Safety Radio Communication System Infrastructure - City… https://www.smgov.net/departments/council/agendas/2013/20130910/s2013091003-I.htm 2/3 Agreement in effect to modify. Staff has brought the item back to the Council to make this clarification and recommends that the City enter into a new License Agreement.
The original License Agreement was with Douglas Emmett Realty Fund 1998, a California Limited Partnership. That entity is no longer the owner of the property. The successor in interest is Douglas Emmett 1998, LLC. The proposed new License Agreement is with Douglas Emmett 1998, LLC.
Discussion
The rooftop space located at 100 Wilshire Boulevard is critical to the continued operation of the Police Department and Fire Department radio systems. The building is the ideal height for proper operation of the infrastructure equipment, is centrally located in the downtown area and has the appropriate emergency power equipment for operation during an electrical outage.
The Police Department and Fire Department have installed equipment at 100 Wilshire Boulevard as part of their respective radio system infrastructures that is critical to proper operation of their systems. There are no practical alternatives for relocating the equipment presently installed at 100 Wilshire Boulevard. Relocating the equipment to a different building that does not have the same profile and geographic location as 100 Wilshire Boulevard would degrade communications for Police and Fire. In the event a suitable location existed, the process to relocate the equipment to a new location would require a complete system design, potentially costing several million dollars.
The annual license fee established in 1999 was $27,300. Since then, annual increases have ranged between 3% and 4%, as set forth in prior license agreements by the property owner. In fiscal year 2012-13, the annual license fee was $46,822.
The proposed license fee for fiscal year 2013-14 would be $48,695. The new proposed license agreement establishes an annual 4% increase through June 2018.
At this time, staff recommends entering into a License Agreement in order to secure the space through June 2018.
Financial Impacts & Budget Actions
The License Agreement to be awarded to Douglas Emmett 1998, LLC is for an amount not to exceed $263,750. Funds are available in the FY 2013-15 budget in
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Packet Pg. 374 Attachment: Staff Report - September 10, 2013 (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) 2/2/2021 New License Agreement for Rooftop Space at 100 Wilshire Boulevard for Public Safety Radio Communication System Infrastructure - City… https://www.smgov.net/departments/council/agendas/2013/20130910/s2013091003-I.htm 3/3 division 01304. The contract will be charged to account 01304.522620. Budget authority for subsequent budget years will be requested in each budget for Council approval. Future funding is contingent upon Council approval and budget adoption.
Prepared by: Eric Uller, Lead Public Safety Systems Analyst Approved: Forwarded to Council:
Jory Wolf
Chief Information Officer
Rod Gould
City Manager
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Packet Pg. 375 Attachment: Staff Report - September 10, 2013 (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 376 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 377 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 378 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 379 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 380 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 381 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 382 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 383 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 384 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 385 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 386 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 387 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 388 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 389 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 390 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 391 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 392 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 393 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 394 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.d
Packet Pg. 395 Attachment: CT 9798 (Original Agreement) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
5.E.e
Packet Pg. 396 Attachment: CT 9798 (Renewal Letter) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) 1 FIRST MODIFICATION OF
ROOFTOP ANTENNAE LICENSE AGREEMENT NO. 9798 (CCS)
This First Modification of Rooftop Antennae License Agreement Number 9798 (CCS) (“First Modification”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica (“City” or “Licensee”), a California municipal corporation, and DE 100 Wilshire, LLC (“Licensor”), a Delaware limited liability company, as successor-in-interest to Douglas Emmett 1998, LLC, a Delaware limited liability company, is made with reference to the following:
RECITALS
A. On or about November 11, 2013, the City and Douglas Emmett 1998, LLC, a Delaware limited liability company (“Original Licensor”), Licensor’s predecessor-in-interest, entered into that certain Rooftop Antennae License Agreement Number 9798 (CCS) (“Original Agreement”) for the purpose of Licensor granting the City a revocable non-exclusive license to operate the its radio antenna and communications room on a portion of the rooftop space (“License Area”) of the office building owned by Licensor and located at 100 Wilshire Boulevard, Santa Monica, California 90401 (“Building”).
B. On or about October 24, 2018, the City and Original Licensor extended the term of the Original Agreement for a period of five (5) years. The term of the Original Agreement was extended to June 30, 2023.
C. Licensor subsequently acquired all of Original Licensor’ interest, right and title in and to the real property and Building in which the License Area is located, becoming successor-in-interest to Original Licensor and licensor under the Original Agreement.
D. The City and Licensor now desire to modify the Original Agreement to increase the fees paid to Licensor to include the utility costs of City’s operation of its communications equipment in the License Area.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. A new Section 1.7, entitled “Monthly Utility Fee”, shall be added to the Original Agreement. Section 1.7 shall read as follows:
“1.7 Monthly Utility Fee. In addition to the fees described in Section 1.6, Licensee shall also pay to Licensor a monthly utility fee set by DocuSign Envelope ID: DF7864A6-5EE6-4D08-8C08-337242645419 5/22/2021
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Packet Pg. 397 Attachment: CT 9798 (Modification 1) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) 2 Licensor in an amount consistent with Section 2.1(c)(11) below. The monthly utility fee shall be reasonably determined by Licensor and/or as measured by a separate submeter installed by Licensee at its election and sole cost. Said billing shall be calculated on the usage indicated by such submeter, and shall be issued by Licensor at the rates charged for such services by the local public utility furnishing the same, plus any additional expense reasonably incurred by Licensor in providing said billing.”
2. GTP Acquisition Partners III, LLC is no longer serving as Licensor’s manager of the License Area. Accordingly as of the date of this First Modification, Licensor’s notice address shall be amended as follows:
*
If to Licensor:
* DE 100 Wilshire, LLC
c/o Douglas Emmett Management, LLC
Attention: Property Manager
100 Wilshire Boulevard, Suite 150
Santa Monica, California 90401
* With a copy to:
* Douglas Emmett Management, LLC
Attention: Director of Property Management
1299 Ocean Avenue, Suite 1000
Santa Monica, California 90401
3. Except as expressly modified by this First Modification, all other terms and conditions of the Original Agreement shall remain in full force and effect.
DocuSign Envelope ID: DF7864A6-5EE6-4D08-8C08-337242645419
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Packet Pg. 398 Attachment: CT 9798 (Modification 1) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) 3 IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City ClerkENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
GEORGE S. CARDONA
Interim City Attorney DILG
City Attorney
LICENSEE:
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
LANE DILG
Interim City ManagerRICK COLE
City Manager
LICENSOR:
DE 100 WILSHIRE, LLC,
a Delaware limited liability company
By: Douglas Emmett Management, LLC,
a Delaware limited liability company,
its agent and authorized signatory
ABC Corporation
#VENDOR
By: _______________________________
SANDI WINTON
DocuSign Envelope ID: DF7864A6-5EE6-4D08-8C08-337242645419 5/22/2021
5/24/2021
5/28/2021
6/1/2021
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Packet Pg. 399 Attachment: CT 9798 (Modification 1) (5710 : 2nd Mod - Rooftop Lease 100 Wilshire)
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Packet Pg. 400 Attachment: DE 100 Wilshire LLC - Oaks Initiative (5710 : 2nd Mod - Rooftop Lease 100 Wilshire) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.F
1 of 4
To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Approval of Second Modification to Contract with Clean Energy Corporation for Increased Funding for Purchase of Renewable Liquid Natural Gas Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines
2. Authorize the City Manager to negotiate and execute a second modification to agreement #11155 in the amount of $5,899,994 with Clean Energy Corporation to provide Renewable Natural Gas fuel for the Santa Monica Department of Transportation. This will result in an amended agreement with a new total amount not to exceed $11,771,926, with future year funding contingent on Council budget approval, with the original five-year term of the agreement remaining unchanged.
Summary
The Department of Transportation (DOT) supports the City of Santa Monica’s sustainability goals through the purchase of zero-emission transit buses and by purchasing the lowest carbon intensity fuel available for its fleet of existing natural gas buses. DOT’s Big Blue Bus currently has 177 buses powered by Renewable Natural Gas (RLNG) harvested from land-fill methane. Because natural gas is a widely traded commodity, its price can be volatile. The purchase price of DOT’s RLNG fuel is based on the SoCal Border Index price for natural gas and varies monthly. The price of natural gas purchased for use in DOT transit buses has increased since the award of its current contract for fuel purchases resulting in higher-than-expected expenditures. As such, contract purchasing authority will be exhausted by the end of fiscal year 2023. To provide sufficient funding for transit bus fuel purchases through the remaining contract
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period, staff recommends modifying the existing five-year agreement with Clean Energy to increase the total amount by $5,899,994 for a total not-to-exceed amount of $11,771,926.
Discussion
On May 11, 2021, Council awarded bid #4404 to Clean Energy and authorized a contract to provide RLNG fuel to Big Blue Bus for a five-year period with a total amount not to exceed $5,871,932. The current contract expires on June 30, 2026, and fuel purchases to date have exhausted purchasing authority. Staff is currently working to execute a first modification of DOT’s contract for fuel purchases to exercise the contingency approved by Council at its May 11, 2021 meeting. This will provide sufficient funding for fuel purchases through the end of fiscal year 2023.
Fuel expenditures have exceeded staff expectations due to large fluctuations in the cost of natural gas. DOT’s fuel price under its fuel purchases contract is based on the SoCal Border Index natural gas price with added charges to convert the fuel to a liquid form, a delivery fee, and a discount based on Low Carbon Fuel Standards credits received from the State of California. The SoCal Border Index (Index) is broadly representative of natural gas pricing in the Southern California region and is influenced by the broader natural gas market. At the time of the contract award, this index price had averaged $2.5604/Metric Million British Thermal Unit (MMBtu) over the preceding two fiscal years.
Based on the bid pricing, staff had expected fuel costs to fall by 38% over the previous contract pricing provided there were no large fluctuations in the Index price.
The Index price of natural gas began to increase substantially after the award of DOT’s fuel contract resulting in higher-than-anticipated fuel pricing. The average Index price of natural gas was $5.9900/MMBtu the first year of contract #11155 and $11.9640/MMBtu in the current contract period representing a 134% and 367% increase over our estimated pricing of $2.5604/MMBtu. These price changes have been observed in the broader natural gas market and are driven by national and global factors, including winter storms and war in Ukraine, creating increased demand for natural gas and disrupting supplies. Staff expect expenditures to decrease in Fiscal Years ending 2025
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and 2026 due to increases in SMDOT’s fleet of zero-emission transit buses. These reductions are included in this modification request. This second modification would provide sufficient funding for fuel purchases through the remainder of contract #11155.
Environmental Review
The contract modification for the purchase of renewable fuels is categorically exempt pursuant to Section 15301 (Class 1 Existing Facilities) of the CEQA State Guidelines.
Section 15301 exempt projects that consists of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The contract modification would not result in any modifications to existing fueling facilities or BBB fleet. Fueling facilities for the BBB fleet currently exist and the contract modification would not expand or materially change existing fueling operations. Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.
Past Council Actions
Meeting Date Description
05/11/2021
(attachment A)
Award Bid #4404 and Enter into Agreement with Clean
Energy Fuels Corporation for purchase of Renewable Liquid Natural Gas.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Big Blue Bus Fund to increase the amount of its contract #11155 with Clean Energy for the purchase of RNLG fuel for its transit bus fleet. Funding will be included in the FY 2023-25 Biennial Budget for Council approval. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY 2023-24
Budget Request
Amount
Future Years
Amount Dept/CIP Account #
Total
Requested
Contract
Amount
11155 $5,871,932 $1,927,131 $3,972,863 60600013.521841 $11,771,926
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Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. CSA 11155 - Staff Report
B. Clean Energy CSA 11155 - Oaks
C. Clean_Energy_Contract__11155
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City Council
Report
City Council Meeting: May 11, 2021
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid #4404 and Enter into Agreement with Clean Energy Fuels Corporation for Purchase of Renewable Liquid Natural Gas Recommended Action
Staff recommends that the City Council:
1. Award Bid #4404 to Clean Energy Corporation to provide Renewable Natural Gas fuel for the Santa Monica Department of Transportation.
2. Authorize the City Manager to negotiate and execute an agreement with Clean Energy Fuels Corporation, in an amount not to exceed $5,871,932 over a fiveyear period, which includes a 15% contingency and a 2.5% annual cost escalator, with future year funding contingent on Council budget approval.
Executive Summary
The Santa Monica Department of Transportation (SaMoDoT) is committed to the City of Santa Monica’s sustainability goals through the purchase of zero-emission transit buses and the purchase of the lowest carbon intensity fuel available for its fleet of existing natural gas buses. SaMoDoT’s Big Blue Bus currently has 177 buses powered by clean-burning Renewable Natural Gas (RLNG) harvested and produced in California in its Big Blue Bus (BBB) fleet. Staff recommends the award of Bid #4404 to Clean Energy Fuels Corporation (Clean Energy) and to negotiate and execute an agreement with Clean Energy for the purchase and delivery of Renewable Bio-Liquid Natural Gas for a five-year period in the amount not to exceed of $1,000,005 for the first year with the total five-year contract amount not to exceed $5,871,932 including a 15% contingency and a 2.5% annual cost escalator.
Discussion
Big Blue Bus has begun transitioning its fleet of transit buses to zero-emission vehicles but will continue to operate natural gas buses for a ten-year period at minimum. BBB currently operates 177 natural gas-powered transit buses fueled by Renewable Bio5.F.a Packet Pg. 405 Attachment: CSA 11155 - Staff Report (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) 2 of 4
Liquid Natural Gas (RLNG). This fuel is 100% domestically produced and is derived from harvested landfill methane.
The use of RLNG significantly reduces harmful greenhouse gas emissions and further reduces the City’s emissions of harmful pollutants. The measure of emissions reduction involves calculating the Low Carbon Fuel Standard (LCFS) credits and greenhouse gas emissions. LCFS promotes the use of greenhouse gas-reducing transportation fuels such as liquid biofuels, renewable natural gas, electricity, and hydrogen through a fuelneutral declining carbon intensity standard, which is administered by the California Air Resources Board. Carbon Intensity (CI) is a measure of the greenhouse gas (GHG) emissions associated with the production, distribution, and consumption of transportation fuels. In order to achieve the GHG reductions at the lowest cost and in the most consumer-responsive manner, the LCFS uses a market-based credit trading system to allow providers to choose how they reduce emissions while responding to consumer demand.
The award of Bid #4404 to Clean Energy would enable the continued use of RLNG to power the City’s fleet of natural gas transit buses and other City vehicles. It also provides the City a share of the LCFS credits from the producer, Clean Energy, as a fixed discount on a per-gallon basis. Clean Energy has provided this service since 2011 with exceptional service meeting all City specifications.
The Environmental Protection Agency sets the Carbon Intensity for each fuel type. The RLNG that BBB uses to power its fleet of natural gas buses has a CI value of 44.31 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) compared to 95.00 for fossil natural gas resulting in an estimated GHG emissions reduction of 11,945 metric tons. Staff recommends the continued use of RLNG as fuel in its fleet of transit buses to minimize BBB’s emissions during its transition to zero-emission buses.
Renewable Bio-Liquefied Natural Gas is non-fracked methane harvested from organic waste in landfills. The process of harvesting and processing RLNG provides a product that has fewer impurities than conventional natural gas and is a cleaner burning fuel
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source. Historically, this gas has been burned off into the atmosphere, but can now be harvested for use as fuel. The gas is collected from landfills and put through a filtration and refining process that removes impurities that are found in conventional natural gas creating a cleaner burning fuel. Operating transit buses on this waste-to-energy source contributes to BBB’s commitment to protecting the environment by using the cleanest transportation fuels available.
Vendor/Consultant Selection
Bidder Recommendation
Best Bidder Clean Energy Fuels
Evaluation Criteria
price, carbon intensity of fuel, quality of fuel provided, capacity to provide sufficient quantity of fuel in a timely manner, compliance with City specification and scope of work
Municipal Code SMMC 2.24.180
Submittals Received
Clean Energy $5,796,855 Element Markets No Bid
Applied LNG Technologies, LLC No Bid
Bid Data
Date
Posted Posted On
Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
2/3/2021
City’s
online
vendor
portal
Santa Monica Daily
Press 11 2/23/2021
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, experience, ability to deliver fuel timely and in quantities required, quality of fuel in both purity and carbon intensity, and ability to comply with City specifications.
Clean Energy can provide Renewable Liquefied Natural Gas (RLNG) that meets all City requirements for Methane purity and delivery temperature. Clean Energy’s bid also provides revenue sharing from LCFS credits on a fixed basis that will lower transit bus fuel costs while minimizing any impacts of volatility in the LCFS credit market. Because Clean Energy is the incumbent bidder, staff compared the pricing in its bid submittal to the City’s current contract for RLNG and found the bid price to be lower than the City’s current contract price. Additionally, all other bidders provided a no-bid response. No-bid responses were submitted by bidders who reviewed the bid specifications, but chose not to submit a bid. One bidder cited unacceptable contract terms and the other did not state the reason for
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submitting a no-bid response. Based on the price, ability to provide RLNG fuel that meets the City’s specifications, ability to provide a share of LCFS credit revenue, and positive history with the bidder’s services, Clean Energy is recommended as the best bidder.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the BBB enterprise fund to award a contract with Clean Energy Fuels to provide Renewable Liquefied Natural Gas fuel for the City’s fleet of transit buses.
Contract/Agreement Request
FY 2021-22 Budget Department/CIP Account
#
Total Contract Amount
Request Amount
$924,928 60600013.521841 $5,871,932
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.
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. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.
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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:
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 # ___________________________ Clean Energy
(949) 437-1000
Chad Lindholm Senior Vice President
February 6, 2023
[email protected]
Andrew J. Littlefair, Mitchell W. Pratt, Robert M. Vreeland, Barclay F. Corbus None
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Contract No. 11155 (CCS)
PURCHASE AGREEMENT FOR
RENEWABLE LIQUEFIED NATURAL GAS PRODUCT
This Purchase Agreement for Renewable Liquefied Natural Gas Product (“Agreement”), entered into as of _________________(“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and CLEAN ENERGY, (“Clean Energy”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. CLEAN ENERGY is qualified to do business, and is doing business, in the State of California. CLEAN ENERGY represents it has the background, knowledge, experience, and expertise necessary to provide the services set forth in this Contract.
C. The City and CLEAN ENERGY desire to enter into an agreement for CLEAN ENERGY to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term. The term of this Agreement shall commence on the Execution Date and shall remain in effect for five years, unless sooner terminated as set forth in this Agreement.
2. Purchase and Sale of Product. Clean Energy shall sell to the City, and the City shall buy from Vendor, on an “as needed” basis the Product as set forth in the Product Specifications of the Scope of Services attached as Exhibit “A” and Clean Energy’s bid proposal attached as exhibit “D.” Clean Energy shall procure Product, at its sole discretion, from a variety of source locations (the “Production Location”) provided that any Product delivered meets the Product Specifications as described in Exhibit A of this Agreement. In the event that Clean Energy cannot provide Product at any time during this Agreement for any reason, Clean Energy shall notify City within 24 hours of the City’s placing of an order that Clean Energy cannot supply. In such event, City shall have the right at its discretion, to procure Product from another supplier until Clean Energy can begin providing Product again.
3. Delivery and Storage Site. At no cost to Clean Energy, City shall furnish an accessible, secure facility satisfactory for delivery and storage of Product at 1660 Seventh Street, Santa Monica, CA 90401 (the “Consuming Location”), including all foundations, lighting, extended fill lines, pipelines, and other equipment necessary for the safe distribution of Product from the Consuming Location. City shall maintain all DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951 7/1/2021
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of the foregoing in good repair and safe operating condition, provide all utility service required for power and lighting, and obtain all licenses and permits required in connection with operations at the Consuming Location.
4. Equipment. It is expressly understood by both parties that all equipment contained at the Consuming Location is sole property and responsibility of the City.
5. Deliveries.
5.1 Clean Energy and the City shall agree upon the times for delivery of Product at the Consuming Location.
5.2 Deliveries requested by the City during a City strike or other labor disturbances shall be at the City’s sole risk and Clean Energy, in its sole discretion, can refuse to make deliveries during a strike or other labor disturbance if Clean Energy determines that such a delivery could pose a risk or harm or danger to Clean Energy or any of its employees or agents. If Clean Energy is unable to deliver Product to the Consuming Location due to a City strike or other labor disturbance, City shall pay actual mileage and labor expenses that Clean Energy incurs for any failed delivery attempt. Clean Energy shall provide all supporting documentation to confirm the actual mileage and labor expenses incurred.
5.3 The normal maximum volume of Product that can be delivered to the Consuming Location in one delivery vehicle is 10,000 gallons. For all deliveries, Clean Energy shall measure the Product at the United States or State of California Department of Transportation weigh station scale nearest to the Consuming Location. Clean Energy shall supply to the City any certificates that result from weighing the Product. Billings for all deliveries will be made in RLNG gallons based on the actual weight delivered.
6. Warranty and Product Specifications. Unless Clean Energy receives written approval from City to adhere to different Product Specifications, the Product delivered under this Agreement shall have a minimum methane number of 75 MN and meet the Product Specifications outlined in Exhibit A.
7. City Services. The City agrees to:
7.1 Make available to CLEAN ENERGY any currently existing documents, data or information required for the performance of the Services.
7.2 Designate a representative authorized to act on behalf of City.
7.3 Promptly examine and render findings on all documents submitted for staff review by CLEAN ENERGY.
8. Compensation. The City will compensate CLEAN ENERGY for the Services performed in an amount not to exceed $5,106,027, as set forth in Exhibit B.
9. Invoices. CLEAN ENERGY will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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10. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
10.1 All notices, demands, requests or approvals to the City:
Big Blue Bus Maintenance division
City of Santa Monica
1660 7th Street
Santa Monica, California 90401
Attention: David Nanjo, Administrative Analyst
Re: Contract No. 11155
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. 11155
10.2 All notices, demands, requests or approvals to CLEAN ENERGY:
CLEAN ENERGY
4675 MacArthur Court
Newport Beach, CA 92660
Attention: Chad Lindholm, VP, Sales
With a copy to: Associate General Counsel
Re: Contract No. 11155
11. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another.
Neither the City nor its officers or employees will have any control over the conduct of CLEAN ENERGY or any of CLEAN ENERGY’s agents, employees, or subconsultants, except as otherwise provided in this Agreement.
12. Allocation of Responsibility.
12.1 In addition to the remedies set forth in Exhibit A and under applicable law, a remedy for any unexcused failure on the part of Clean Energy to deliver Product to the City as required hereunder, whether or not such failure was caused, in whole or in part, by any negligence, shall be to obtain from Clean Energy, at no charge, the quantity of Product equal to the quantity that Clean Energy initially failed to deliver.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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12.2 In addition to the remedies set forth in Exhibit A and under applicable law, a remedy for any unexcused failure to act on the part of Clean Energy whereby Product of a purity less than that stated herein is delivered (unless written approval for a deviance from the stated purity is obtained from the City prior to delivery), whether or not such failure or act was, in whole or in part, negligent, or could be the basis of a claim on the grounds of strict liability, shall be to receive a refund of the aggregate price of the non-conforming Product, or the replacement thereof with Product meeting the required level of purity at no additional charge to the City.
12.3 The City acknowledges that it has (i) full knowledge of the hazards associated with the storage, distribution, and use of Product and the City hereby assumes all responsibility for warning its personnel and any third parties on the Consuming Location of such hazards; (ii) full knowledge that the RLNG provided hereunder will not be stenched or odorized by Clean Energy and that odorization is not required for delivery of the RLNG under this Agreement; and (iii) has read and understands the provisions f this Agreement, including the provisions of this Section. The City shall be responsible for odorizing the Product after delivery in order to comply with any odor standards contained in the applicable regulations.
12.4 It is the responsibility of the City to comply with applicable reporting obligations under the Emergency Planning and Community Right-to-Know Act of 1986 (SRA Title III) and any other applicable statutes and regulations concerning the storage, handling or use of RLNG Product or resulting from the presence of Product supplied under this Agreement. Further, it is the responsibility for the City to warn and protect its employees and others exposed to the hazards posed by the City’s storage and use of Product. By execution of this Agreement, the City acknowledges having on file at the Consuming Location a Materials Safety Data Sheet which describes the Product.
12.5 As between Clean Energy and the City, the City shall be deemed to be in control and possession of any product upon delivery to the Consuming Location.
12.6 The City shall ensure that, prior to taking delivery, all City operators or agent(s) of the City operating equipment on behalf of the City (or third parties retained by the City) shall have been provided appropriate personal protective equipment, including, but not limited to, flame retardant clothing fully covering the arms, legs, and torso, sturdy leather work shoes (not athletic type), apron, hard hat, gloves, splash proof safety goggles and facial shield. Clean Energy reserves the right to deny delivery to the City or any other person observed not using appropriate personal protective equipment but has no obligation to ensure that appropriate personal protective equipment is used.
12.7 The City shall ensure that any employees of the City that accept delivery of Product have received instruction in safe and effective loading procedures prior to taking delivery of Product. The City shall provide extensive training to any DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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employees that work with the Product regarding the hazards of handling Product and the precautions to take to safety load the Product.
13. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and CLEAN ENERGY and approved as to form by the City Attorney.
14. Force Majeure. In the event that Clean Energy is prevented from performing its obligations under this Agreement by circumstances beyond its control, including, without limitation, fire, floods, earthquakes, storms, wind, or other natural calamities or acts of God, explosions, war, acts of terrorism, sabotage, public disorders, strikes or other labor disputes or actions by governmental authorities, interruption or inability to produce Product caused by equipment failure or loss of utility service at any Clean Energy facility or the interruption or cessation of delivery of Product to Clean Energy by any supplier of Product to Clean Energy (any of which is hereinafter referred to as a “Force Majeure”), then Clean Energy shall be excused from its obligations under this Agreement during the period of a Force Majeure (“Force Majeure Period”). If Clean Energy claims Force Majeure, Clean Energy shall notify the City in writing within twenty-four (24) hours after it learns of the existence of a Force Majeure and shall similarly notify the City no later than twenty-four (24) hours after the Force Majeure has terminated. To the extent within its control, Clean Energy shall use commercially reasonable efforts to correct whatever event or circumstances may have caused the Force Majeure. After Clean Energy notifies the City of Force Majeure Period, the City shall have the right to obtain Product from other suppliers until the Force Majeure Period has ended. If the City must obtain Product from other suppliers during any such Force Majeure Period, Clean Energy agrees to be responsible for any increase in the cost of obtaining such Product from other suppliers compared to the Price payable to Clean Energy under this Agreement. Clean Energy shall reimburse the City the cost differential withing fifteen (15) days of receipt of documentation from the City which supports such increase in Product costs.
15. Insurance. Prior to commencing work, CLEAN ENERGY must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by CLEAN ENERGY or CLEAN ENERGY’s agents, representatives, employees or subconsultants for the duration of this Agreement. CLEAN ENERGY must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
16. No Violation of Other Agreements. The City hereby represents and agrees that neither (i) the City entering into this Agreement nor (ii) the City carrying out the DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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provision of this Agreement will violate any other agreement (oral, written or other) to which the City is a party or by which the City is bound.
17. Captions and Heading. The captions and paragraph headings used in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof.
18. Defense and Indemnification.
18.1 CLEAN ENERGY agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of CLEAN ENERGY, or CLEAN ENERGY’s employees, agents, officers, and subconsultants. CLEAN ENERGY’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of CLEAN ENERGY, its employees, agents or officers, or subconsultants; provided, however, that CLEAN ENERGY’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding CLEAN ENERGY’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from CLEAN ENERGY, if City chooses to do so.
18.2 Enforcement Costs. CLEAN ENERGY agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 18.1.
19. Prohibition Against Transfers.
19.1 CLEAN ENERGY may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
19.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of CLEAN ENERGY or of any general partner or joint venturer or syndicate member of CLEAN ENERGY, if a partnership or joint venture or syndicate exists, which results in changing the control of CLEAN ENERGY, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 416 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) - 7 -
20. Permits and Licenses. CLEAN ENERGY, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
21. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
22. Default and Termination.
22.1 If CLEAN ENERGY fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to CLEAN ENERGY.
22.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to CLEAN ENERGY. Upon termination of this Agreement, City will pay CLEAN ENERGY any compensation earned and unpaid up to the effective date of termination.
23. Compliance with Law. CLEAN ENERGY must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.
24. Discrimination. CLEAN ENERGY may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
25. Nuisance. CLEAN ENERGY may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
26. Records.
26.1 CLEAN ENERGY must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. CLEAN ENERGY must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
26.2 CLEAN ENERGY must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles. CLEAN ENERGY must clearly identify all records and make them readily accessible to the City. At the City’s request, CLEAN ENERGY must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 417 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) - 8 -
26.3 CLEAN ENERGY must allow the City to have free access to CLEAN ENERGY’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit CLEAN ENERGY’s records, and CLEAN ENERGY agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by CLEAN ENERGY, CLEAN ENERGY agrees to pay the cost of the City’s audit computed on the basis of two times the direct payroll of the audit staff completing the audit and audit report.
27. Work Product; Reports.
27.1 Any work product prepared or caused to be prepared by CLEAN ENERGY or any subconsultant for this Agreement will be the exclusive property of City. No work product given to or prepared by CLEAN ENERGY or any subconsultant pursuant to this Agreement may be made available to any individual or organization by CLEAN ENERGY without prior written approval by City.
27.2 At the City’s request, CLEAN ENERGY must furnish reports concerning the status of the Services.
28. Standard of Care. CLEAN ENERGY agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of CLEAN ENERGY’s profession currently practicing in the same locality under similar conditions.
29. Subconsultants.
29.1 If CLEAN ENERGY proposes to have any subconsultant perform any part of the Services, CLEAN ENERGY must submit a request for approval in writing (email to suffice), describing the scope of work to be subcontracted and the name of the proposed subconsultant. The City will grant or deny the request, such granting of the request not to be unreasonably withheld or denied.
29.2 CLEAN ENERGY will be responsible for the quality of any subconsultant’s work. Every subcontract or agreement of any kind entered into between CLEAN ENERGY and any subconsultant (or between any subconsultant and others) after the Execution Date must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 11155 (CCS) entered into between the City of Santa Monica and CLEAN ENERGY
on^^____________________.
30. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
31. Venue and Jurisdiction. The City and CLEAN ENERGY agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951 7/1/2021
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Packet Pg. 418 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) - 9 -
only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
32. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
33. Exhibits. The following exhibits are incorporated by reference into this Contract as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
Exhibit D Clean Energy Bid
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
CLEAN ENERGY Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951 Interim City Attorney
6/30/2021
George S. Cardona
Chief Operating Officer & Corp. Secretary
Mitchell W. Pratt
CLEAN ENERGY
7/1/2021
7/1/2021
John Jalili
Interim City Manager
Nikima Newsome
Assistant City Clerk
7/6/2021
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Packet Pg. 419 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Exhibit A
Scope of Services
1. CITY FACILITIES AND VEHICLES
The City’s RLNG/RCNG fueling station is located at 1620 6th Street, Santa Monica, CA 90401. The station is used to dispense both RLNG and RCNG to transit coaches as well as medium and light duty vehicles. The operation of the station is 24/7, and also has a RCNG 2-hose dispenser located at the corner of Olympic and 5th Avenue.
The City’s station is comprised of the following major components:
two horizontal 30,000 gallon storage vessels;
two single function RLNG pumps;
two RLNG conditioning heat exchangers; one dedicated RLNG offloading pump module; two RLNG dispensers;
two dispenser control units;
two RL/CNG pumps;
six RCNG storage tubes (12,000 scf capacity each @ 5,000 psi); two RL/CNG pump control panels; one natural gas odorizer; two RL/CNG ambient air heat exchangers;
two single hose transit type dispensers;
two dual hose RCNG dispensers; one flame & combustible gas detection system; and an EAM Fuel Focus fuel management card reading system.
Currently, the Big Blue Bus operates 76 RLNG powered transit coaches, and 124 RCNG powered transit coaches for a total of 200 transit coaches powered by RNG. In addition, the RLNG supplies the RCNG fueling station for the City’s service vehicles.
2. DELIVERY REQUIREMENTS AND PRODUCT SPECIFICATIONS
A. DELIVERY REQUIREMENTS
All RLNG fuel deliveries shall meet minimum product specifications set forth in Section B, below.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 420 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Contractor shall provide a steady and consistent supply of RLNG to the City of Santa Monica’s Big Blue Bus. The quantity is approximately 310,000 gallons per month. The City currently anticipates 6 deliveries per week, with 24 hours’ notice from order to delivery. The City reserves the right to increase or decrease deliveries based on operational needs.
All deliveries shall be made to the City’s fueling station located at 1620 6th Street, Santa Monica, CA 90401. The City shall contact Clean Energy to schedule (at least 24 hours in advance) and receive deliveries as frequently as needed and in sufficient quantities such that fuel is available seven (7) days per week, 365 days a year (including all holidays). All deliveries shall be made between the hours of 6am and 10am. Any deviation from this time window must be approved in advance by the Big Blue Bus Transit Maintenance Officer or designee. All orders must be pre-approved by the City.
The City if responsible for monitoring the RLNG tank levels and contacting Clean Energy to schedule deliveries as needed. The successful bidder(s) may be required to install a remote monitoring system to track RLNG tank levels at the property and is responsible for scheduling and making deliveries based on the new monitoring system if installed. If the City requests Clean Energy install such system, City shall compensate Clean Energy for procurement and installation of the remote monitoring system through an amendment to this Agreement with mutually agreed upon price. Further, notwithstanding anything to the contrary, Clean Energy shall own and retain title to, and all intellectual property rights to, such system during the term and will remove such system upon the termination or expiration of this Agreement. The Big Blue Bus has two 30,000 gallon tanks and a minimum 40,000 gallons of RLNG fuel must be maintained at all times. If bidder is unable to meet this requirement, notification shall be given immediately and shall include the reasons for any possible delays and the steps being taken to remedy any such problems.
Contractor, its agents or employees, must notify the Big Blue Bus Transit Maintenance Manager or designee upon delivery of RLNG fuel, as all fuel deliveries to the Big Blue Bus bulk storage tanks must be approved and signed for by the Big Blue Bus Transit Maintenance Manager or designee.
Contractor shall weigh RLNG deliveries at the nearest approved weighing location to the property and use the weigh ticket as a means to calculate the amount of RLNG delivered.
Upon delivery of the RLNG fuel to the City of Santa Monica, Contractor shall submit to the Big Blue Bus, along with the bill of lading (which must include weights) or other accompanying documentations, before/after pressure and fuel gauge reading taken from the delivery truck and Big Blue Bus storage tanks.
RLNG delivered to the property shall have a head pressure no greater than 15 psi saturated. If head pressure exceeds 15 psi saturated, the fuel delivery shall be rejected and DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 421 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) not be allowed to offload. Trailer tanks may not be vented down prior to, during, or after offloading RLNG fuel into the onsite vessels. In the event trailer tanks have to be vented prior to offloading, the venting may not take place within Santa Monica city limits.
All RLNG tanker trucks making deliveries shall be properly certified by the State of California including but not limited to Vehicle Tank Measurement Certificates, and in accordance with Federal Department of Transportation regulations, policies, and procedures. The City reserves the right to request copies of such certificates. If requested, Contractor shall provide copies of requested certificates within three (3) days after notification is received.
All drivers making deliveries of RLNG fuel to the City of Santa Monica shall have Hazardous Materials Endorsements on their Commercial Driver’s license, and such other Endorsements as may be required by relevant laws and/or regulations.
Contractor shall provide vapor return to the tanker from the RLNG storage tanks.
Minimum amount of vapor shall be released after vessel loading is completed. This amount shall not be more than the full liquid amount within the transfer hose.
B. PRODUCT SPECIFICATIONS
The RLNG sold and delivered to the City shall have a minimum methane number of 75MN, which is the minimum as outlined by Cummins Westport on their ‘Fuel Quality Calculator’ website currently maintained at https://www.cumminswestport.com/fuelquality-calculator.
The City of Santa Monica reserves the right to periodically request a written laboratory report (within five days of request), at contractor’s expense, containing the specifications of the RLNG contained in the contractor’s bulk storage tank from which Big Blue Bus’s supply is drawn.
3. QUALIFICATIONS
A. Minimum Requirements
1) Bidders shall provide written proof of ability to furnish and deliver RLNG produced from biogas generated from landfills, municipal wastewater treatment facility digesters, agricultural digesters, or separated municipal solid waste digesters. Bidders shall identify the location and type of biogas generation or capture facility or facilities, the amount of RLNG produced per day at each facility, and the location of each liquefaction facility, including miles from liquefaction plant to drop point at BBB. In order to maintain the lowest carbon footprint possible, vendors with liquefaction plants in closest proximity to the City will receive preference. Bidders shall provide a current RLNG fuel supply and delivery contract with another public agency.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 422 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) 2) Bidders shall provide a carbon intensity value for the proposed RLNG pathway(s) using a methodology approved by the California Air Resources Board (“CARB”) under the Low Carbon Fuel Standard program. Bidders shall submit with bids unredacted versions of any pending or approved application(s) to generate LCFS or RIN credits under the pathway or pathways proposed to supply the City of Santa Monica. In addition, Bidders shall estimate the operational greenhouse gas emissions from a typical delivery vehicle traveling a roundtrip from the liquefaction facility to the delivery point. The lowest possible greenhouse gas intensity is preferred.
3) Bidders shall provide a minimum guaranteed biomass or biogenic content for the supplied RLNG (biogas mass as a percentage of total mass) AND/OR a supplier-specific emission rate for the biogas calculated in accordance with The Climate Registry's General Reporting Protocol or The World Resources Institute's GHG Protocol. 4) Bidders shall provide full documentation for any and all credits or certificates generated as a result of this contract under the California Air Resources Board's Low-Carbon Fuel Standard (LCFS) program, the US EPA's Renewable Fuel Program, or applicable credits from any successor program designed to reduce the carbon intensity of transportation fuels. Bidders shall propose a revenue share of applicable credits sold through arms-length transactions. Bidders who offer the greatest share of applicable credits will receive preference.
5) Bidders shall provide the emission factors (kg CO2 per gallon or gallon-equivalent or standard cubic foot; grams CH4 and grams NO2 per mile driven) of proposed RLNG.
The emission factor data of point of liquefaction to point of delivery in Santa Monica, will be used in the evaluation of the bid with lower emission factors receiving preference.
Bidders shall provide an analysis of the potential greenhouse gas emissions reduction compared to use of virgin natural gas; the estimated quantity of 310,000 gallons/month may be used. Bidders may provide any additional documentation that will support reporting of greenhouse gas emissions per the Climate Registry’s Local Government Protocol.
6) Notwithstanding anything to the contrary in this Agreement, City is not entitled to any payment for LCFS Credits or RINs that may be generated by or attributed to the RLNG supplied by Clean Energy other than the discount per RLNG Gallon as described in Exhibit B. City shall provide Clean Energy with reasonable cooperation with respect to the requirements for the generation of RINs under the EPA renewable fuels standard and LCFS Credits under the California Air Resources Board Low Carbon Fuel Standard. This reasonable cooperation shall include providing Clean Energy with signed and notarized affidavits at any time reasonably requested by Clean Energy, which certify that all RLNG supplied by Clean Energy under this Agreement was sold as a vehicle fuel. “Low Carbon Fuel Standard Credits” or “LCFS Credits” shall mean credits generated and traded under DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 423 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) the California Air Resources Board Low Carbon Fuel Standard. “Renewable Identification Number” or “RIN” is a number generated to represent a volume of renewable fuel as set forth in Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel Standard Program, 75 Fed. Reg. 16484 (March 26, 2010) (codified at 40 C.F.R. § 80.1425 (2011); 40 C.F.R. § 80.1426 (2012).).
For all RLNG supplied to City under this Agreement, Clean Energy shall retain the rights to any: (a) environmental attributes and credits (including, without limitation, VETC (if available and allowed)) associated with the reduction in or avoidance of Greenhouse Gas emissions with respect to the sale or use of the fuel; and (b) emission reduction credits, LCFS Credits, any renewable fuel incentives, including but not limited to RINs generated under the EPA RFS, verified emission reductions, voluntary emission reductions, offsets, allowances, voluntary carbon units, avoided compliance costs, emission rights and authorizations and CO2 reduction and sequestration. “VETC” means federal or state tax credits associated with the collection, production, transfer, sale or use of LNG and/or LCNG fuel allowed under Internal Revenue Code Sections 6426 and 6427. 7) Bidders must be able to provide RLNG that has a saturation pressure of no greater than 15 PSI. Bidders shall include in bid response Bidder’s experience with delivering RLNG with less than 15 PSI of head pressure to transit agencies in California. Bidders shall provide a current client list of transit clients that they provide RLNG that has less than 15 PSI of head pressure. Failure to provide a transit client list with reference names and contact information shall disqualify bid.
8) Bidders shall include a description of the Bidder’s background and experience in supplying RLNG fuel to other transit customers. Contractor must a minimum of three years in providing RLNG to California municipal or transit agencies. 9) Bidders shall provide the City with proof of compliance, upon request, of relevant local, state, and federal laws/regulations. The successful Bidder shall also notify the City of any changes, amendments, and modifications in relevant regulations, laws, statues and policies. In addition, the successful Bidder shall meet all required codes and regulations, as exampled by federal, state, city, and fire codes as they pertain to the transport, delivery and dispensing of RLNG fuel throughout the term of any contract awarded pursuant to this Notice Inviting Bids.
10) Bidders shall submit with bid a full analysis of their responsibilities under AB32 as a result of their RLNG delivery to BBB. Bidders shall also submit a description of who bears the AB32 compliance obligations, and any associated costs (if any), under AB32 based on delivery of RLNG. The City prefers the highest amount of LCFS credits with the lowest price and the closest proximity to the City. Failure to supply detailed analysis and DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 424 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) description of who bears the AB32 compliance obligations shall result in disqualification of bid.
11) Bidder shall include in their bid written detail how they shall provide RLNG fuel should their primary source of RLNG fuel become unavailable. Within this detail, provide the names of primary and secondary sources of RLNG fuel as designated City of Santa Monica fuel sources. It is understood that a Force Majeure shall only occur if both of these sources of supply cannot provide RLNG fuel.
B. Restrictions
1) No subcontracting, farming-out, or trading services will be allowed on this contract unless specifically approved in writing and in advance by Big Blue Bus.
4. COST
The Contractor shall be responsible to provide as part of this Notice Inviting Bids:
• The price of RLNG fuel per RLNG gallon delivered to the station. • Percentage of LCFS credits shared with the City of Santa Monica. o The City of Santa Monica is requesting pricing for both fixed and variable LCFS sharing where a variable model would be based on the LCFS credit price for each month and a fixed model would be fixed to a contracted amount.
• A cost breakdown of the RLNG price including freight and weighing charges, and any charges for delivery delay. Bidders shall use the monthly adjusted Natural Gas Price Index based upon the So. Cal Border price.
• Bidders may also bid the fuel supply commodity as a fixed price for two years. • Pricing shall be based on an estimated annual usage of 310,000 LNG Gallons/Year.
5. TERM
The term of this contract will be for a five year period, to be exercised in the City’s sole discretion.
6. REPORTING
Contractor shall provide quarterly reports to the City of the RLNG fuel delivered and the GHG emissions reductions resulting from the fuel use.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 425 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Contractor to provide monthly reports of RLNG chemical makeup. RLNG delivered to the City shall meet the Product Specifications described in the Exhibit A Scope of Services.
7. LIQUIDATED DAMAGES
Contractor shall provide a steady and consistent supply of RLNG to the City of Santa Monica’s Big Blue Bus with typically 6 deliveries per week, with twenty-four (24) hours’ notice from order to delivery. Failure to deliver RLNG to the City within twenty-four (24) hours of a delivery request that causes Santa Monica’s Big Blue Bus to miss the day’s pull out requirement shall result in liquidated damages being assessed in the amount of $300 per bus per day. Estimated associated costs include, but are not limited to, loss in revenue, loss of goodwill, required community outreach, loss and or repairs to fuel system(s) attributed to not providing fuel, damages to the fuel system caused by delivery of fuel, costs associated in seeking a secondary fuel source including staff time and additional fuel costs. These damages shall be deducted from any monies due, or which may thereafter become due, to Contractor under this Contract on a per day, per bus basis. For the avoidance of any doubt, liquidated damages shall not be assessed against Clean Energy if the failure to deliver RLNG is based on a Force Majeure event affecting Clean Energy.
8. HISTORICAL PURCHASE QUANTITIES
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 426 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Exhibit B
Budget
Contract Period Contract Amount
Contract Year 1 $ 869,569
Contract Year 2 $ 944,782
Contract Year 3 $ 1,020,593
Contract Year 4 $ 1,097,016
Contract Year 5 $ 1,174,067
Total Contract Amount $ 5,106,027
Clean Energy shall invoice the City after each delivery. Sales Tax in this table is an estimated for reference purposes only. Clean Energy shall charge the City the actual applicable sales tax, as determined by the selling price, for fuel sold or used under this agreement.
Cost description Unit of Measure Cost - Yr. 1 Cost - Yr. 2 Cost - Yr. 3
Cost -
Yr. 4
Cost -
Yr. 5
SoCal Monthly Index - July
2020
$/Mmbtu $ 1.73 $ 1.73 $ 1.73 $ 1.73 $ 1.73
RLNG Gallon Conversion
12.1Mmbtu/Gallon
12.10 12.10 12.10 12.10 12.10
Price per RLNG Gallon $/RLNG Gallon $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 Liquefaction Cost $/RLNG Gallon $ 0.255 $ 0.261 $
0.268
$
0.275
$
0.281
Markup/Discount $/RLNG Gallon $ - $ - $ - $ - $ -
Delivery Fee $/RLNG Gallon $ 0.185 $ 0.190 $
0.194
$
0.199
$
0.204
Total Cost before taxes $/RLNG Gallon $ 0.58 $ 0.59 $ 0.61 $ 0.62 $ 0.63 Sales Tax - $/RLNG Gallon $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 After Tax Unit Price $/RLNG Gallon $ 0.62 $ 0.64 $ 0.65 $ 0.66 $ 0.67 LCFS Credit - Fixed $/RLNG Gallon $ (0.200) $ (0.175) $ (0.150)
$
(0.125)
$
(0.100)
Total Unit Cost after
Revenue Sharing
$/RLNG Gallon $ 0.42 $ 0.46 $ 0.50 $ 0.53 $ 0.57
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 427 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Coverage at least as broad as Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If the Contractor maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 428 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85).
b. Primary Coverage: For any claims related to this Agreement, the Contractor’s insurance shall be primary coverage as least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Contractor may acquire against the City of Santa Monica by virtue of payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Contractor to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the name insured or the City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 429 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.
The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Contractor resulting from said breach.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does not have employees. The Contractor must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
DocuSign Envelope ID: 8C7FE0F3-BB13-4C65-92B7-5CC5CA3A6951
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Packet Pg. 430 Attachment: Clean_Energy_Contract__11155 (5711 : Approve Increased Funding for Purchase of Renewable Liquid Natural Gas) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.G
1 of 4
To: Mayor and City Council
From: David Martin, Director, Building & Safety
Subject: Approval of Second Modification to Professional Services Agreement with Selectron Technologies for Software Maintenance and Support Services Recommended Action
Staff recommends that the City Council:
1. Adopt a CEQA finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second modification to agreement #9745 (CCS) in the amount of $105,405 with Selectron Technologies, Inc. for software maintenance and support services for the Community Development Department. This will result in a 13-year amended agreement with a new total amount not to exceed $357,310, with future year funding contingent on Council budget approval.
Summary
The City currently uses Selectron Technologies (Selectron) Integrated Voice Response (IVR) and Integrated Web Response (IWR) systems to enable the public to conveniently schedule building permit inspections via phone or online. These systems are integrated with the City’s permitting system, Accela Automation, and share important inspection data between the systems without requiring redundant manual data entry. The City is currently in the Request for Proposal (RFP) process to seek bids for a new permitting and land management system that could also provide inspection scheduling services, which would make Selectron’s systems unnecessary. Staff recommends modifying the software maintenance agreement with Selectron to extend the term for one year, with two options to extend the agreement for an additional year. This would provide time for a replacement system to be procured and implemented while allowing termination of the
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contract. The proposed modification would result in a total contract amount not to exceed $357,310.
Discussion
On October 14, 1997, following a solicitation process, Council approved the purchase of the Selectron IVR system (Attachment A) to enable customers to request building inspections themselves without having to speak with a staff member. In 2006, the City upgraded the Selectron software to include IWR. On June 11, 2013, Council approved a sole source agreement with Selectron in the amount of $89,060 to cover software maintenance and support for an additional five years, extending the term to June 30, 2018 (Attachment B). On May 8, 2018, Council approved a first modification to the software and maintenance agreement for an additional five years, extending the term to June 30, 2023 (Attachment C).
The City is currently engaged in an RFP process to identify vendors for a new permitting and land management system. It is expected that any new system will provide inspection scheduling services, and thus will render Selectron’s systems unnecessary.
Therefore, staff recommends using the prior sole source approval to extend the term of this contract by up to three years. This term extension provides City staff with time to select a vendor and identify the scope of improvements of a new permitting system, which will then inform the length of time necessary to retain an agreement with Selectron. This will ensure no loss of inspection scheduling functionality prior to the new system’s implementation.
Past Council Actions
Meeting Date Description
10/17/97 (attachment
A)
Original bid and award of agreement with Selectron for
inspection scheduling services
06/11/13 (attachment
B)
Original sole source approval and maintenance agreement with Selectron
05/08/18 (attachment
C)
First modification to maintenance agreement with Selectron Environmental Review
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The proposed contract modification is exempt from the provision of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). 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 any adverse physical environmental effects as it encompasses software systems and services. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to increase the amount of agreement 9745 (CCS) with Selectron Technologies for permit scheduling services. Funds are included in the FY 2023-25 Proposed Biennial Budget.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2023-24
Request
Amount
Future Years
Request
Amount
Dept. Account #
Total Revised
Contract
Amount
9745 (CCS) $251,905 $34,395 $71,010 01700004.529230 $357,310 Future year funding is contingent on Council budget approval.
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Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council
Attachments:
A. October 14, 1997 Staff Report (Web Link)
B. June 11, 2013 Staff Report (Web Link)
C. May 8, 2018 Staff Report (Web Link)
D. Selectron - Oaks Disclosure
E. Selectron - Living Wage
F. Original Agreement
G. First Modificaton to Agreement
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Attachment: Selectron - Oaks Disclosure (5720 : Second Modification to PSA with Selectron)
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Attachment: Selectron - Living Wage (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 437 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 438 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 439 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 440 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 441 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 442 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 443 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 444 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 446 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 447 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 448 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 449 Attachment: Original Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 450 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 451 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 452 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 453 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 454 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron)
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Packet Pg. 455 Attachment: First Modificaton to Agreement (5720 : Second Modification to PSA with Selectron) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.H
1 of 6
To: Mayor and City Council
From: Danielle Noble, Acting Director, Community Services Department, Community Recreation
Subject: Award RFP #346 to Downtown Santa Monica, Inc. (DTSM) for Park Ambassador services at Palisades, Reed and Tongva Parks Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Award RFP #346 to Downtown Santa Monica, Inc. (DTSM) for Park Ambassador services at Palisades, Reed and Tongva Parks.
3. Authorize the City Manager to negotiate and execute an agreement with DTSM, in the amount not to exceed $8,257,945 for five years with future year funding contingent on Council budget approval.
Executive Summary
The City invited proposals from qualified entities interested in providing contractual services for park ambassadors at various City-owned and City-maintained parks. Staff recommends entering into an agreement with Downtown Santa Monica, Inc. (DTSM) to provide park ambassador services at Reed, Tongva and Palisades Park at an annual cost of $1,494,480.
The goal of the City of Santa Monica park ambassador program is to enhance the visitor experience in some of Santa Monica’s most visited parks. Ambassadors are visible, mobile, and responsive hospitality and customer service professionals. They are friendly, personable, approachable, knowledgeable, and trained to handle situations
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involving conflict. Ambassadors greet and welcome visitors, advise visitors of park rules and local laws related to appropriate behavior, as well as provide directions and other hospitality services as needed. They are the eyes and ears of the parks – reporting problems to the appropriate authorities, ensuring that parks are safe, inviting places for all. After reviewing proposals submitted to the City, staff recommends contracting with DTSM due to their proposed deployment schedule, staffing and training model, and level of experience providing such services.
Discussion
DTSM Park Ambassador Program
DTSM launched its hospitality and maintenance ambassador program in 2009 following the establishment of the Downtown Santa Monica Property-Based Assessment District (PBAD) in which property owners voted to fund supplemental and enhanced services to benefit the downtown area through a special assessment. Ambassadors are uniformed concierge trained to assist those seeking information about Santa Monica, report maintenance or other public safety issues to the appropriate parties and provide a welcoming presence for all visitors to the area.
The City has invested in a variety of site- specific strategies to help all people feel welcome and safe in public spaces, including City parks. As part of that effort, in late 2016 the City partnered with DTSM to provide park ambassador services in Palisades and Tongva Park, which began on January 1, 2017. In June 2019 Council approved the expansion of ambassador services to Reed Park for a six-month pilot program. The pilot program was deemed successful and ambassador services continue at all three park locations.
Ambassadors have received excellent reviews and ratings from visitors, residents, and businesses for their customer service, responsiveness, and knowledge of businesses, services, and amenities. Tongva Park, Palisades Park, and Reed Park have been impacted by the regional increases in homelessness, greater use by street performers, and reported illegal activity and anti-social behavior. DTSM’s ambassador program
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provides hospitality services and restroom monitoring at both Palisades and Tongva parks, and hospitality services, restroom monitoring and outreach/quality of life services at Reed Park. Hospitality ambassadors help maintain a welcoming and safe environment by engaging visitors; offering directions, recommendations, escorts, and other customer service assistance; providing visual and audio observation to public landscape staff; monitoring and reporting anti-social behaviors; and providing minor maintenance assistance when needed. In addition, restroom ambassadors are stationed near the public restrooms in all three parks to discourage anti-social behaviors, conduct intermittent restroom cleanings, and check and stock restroom supplies. Outreach/quality of life ambassadors stationed in Reed Park possess California Guard card and advanced mental health training. These ambassadors focus on social service outreach discourage antisocial behaviors and track public safety incidents in an incident management system.
DTSM contracts with Block by Block for operation of the ambassador program as an extension of the Downtown Ambassador program. Since 2009, Block by Block has provided the management, staffing and support to the Downtown Santa Monica Hospitality and Maintenance Ambassadors. Their management team provides the guidance to frontline personnel every day, thereby allowing DTSM staff to focus on the bigger picture needs of serving the stakeholders of Downtown.
Ambassadors maintain a close working relationship with the Santa Monica Police Department (SMPD), receive regular training from SMPD, and communicate frequently with SMPD and parks personnel on the behaviors and conditions that they encounter and observe. The ambassadors are trained on the applicable provisions of the Santa Monica Municipal Code pertaining to the use of public space, constantly monitor for criminal behavior, illegal vending, and other illegal activity, advise park users if an infraction is taking place and alert SMPD if they witness any illegal or dangerous activity. Ambassadors may not enforce municipal codes. However, they often work in concert with local service providers and SMPD’s Homeless Liaison Program (HLP) Team to offer service referrals when appropriate and maintain close communication and
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coordination with patrol officers and Public Safety Officers who also regularly visit the park.
Staff solicited proposals for ambassador services at Palisades, Reed, Tongva and Memorial parks. Over the past year there has been an increase in complaints about the misuse and vandalism of the outdoor restrooms at Memorial Park. Due to staffing and budget cuts, the Memorial Park gym, fitness room, and indoor restrooms do not open until 12 p.m. during the week. Tennis, pickleball, playground, and field users must use the outdoor restrooms in the morning. Given the positive changes that occurred by adding restroom ambassadors to Palisades, Tongva, and Reed parks, the RFP asked respondents to propose deploying restroom ambassadors within Memorial Park.
However, at this time funding has not been identified for ambassadors at Memorial Park. Therefore, staff is recommending continued services in Palisades, Tongva and Reed only. Should additional funding be identified, ambassador services may be deployed to Memorial Park.
DTSM’s proposed program budget for the first full year is $557,939 for services at Palisades, $378,602 for services at Tongva Park and $557,939 for services at Reed Park, with an annual total program cost of $1,494,480. DTSM would pay staff at or above the City’s living wage standard, with annual escalation of up to 5% to cover increased operational costs such as changes to insurance or wages.
Staff recommends entering a contract with DTSM for five years. A services agreement to contract ambassador services with DTSM is required because the parks are located outside of DTSM’s assessment district boundaries and the services would be paid for entirely by the City. Preparing for a maximum annual increase of 5% to fees, the not to exceed amount for the total five-year contract is $8,257,945.
Board Action
DTSM, Inc. Board of Directors directed staff to enter into an agreement with the City of Santa Monica to provide parks attendant services at their April 11th Board meeting.
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Vendor Selection
Bidder Recommendation
Best Qualified Firm Downtown Santa Monica, Inc.
Evaluation Criteria Bids evaluated on their experience, references, staffing and deployment schedule and cost.
Municipal Code SMMC 2.24.180
RFPs Received
Downtown Santa
Monica, Inc.
Alltech Industries
Inc.
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
02/13/2023 City's Online
Bidding Site Santa Monica Daily Press 2 03/17/2023
Justification to Award
Based on the evaluation criteria listed above and the criteria in SMMC 2.24.180, staff recommends Downtown Santa Monica, Inc. as the best qualified firm to provide Park Ambassador services based on previous experience working with the City, their ability to deliver quality services, the proposed schedule deployment, their compliance with all City specifications, and fair pricing.
Past Council Actions
Meeting Date Description
Attachment A 2023 Signed Oaks Initiative Form
Environmental Review
This contract for ambassador services is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant
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effect on the environment. The ambassador services is an administrative program that provide visitor support services to the City, and would not result in physical effects.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a Services Agreement with DTSM for park ambassador services. Funding, which is within the maintenance of effort budget amount, will be included in the FY 2023-25 Proposed Biennial Budget.
Agreement Request
FY 2023-24
Budget
Request
Amount
Future Years
Amount Account # Total Contract Amount
$936,541 $4,238,438 01800004.550010 $5,174,979
$557,939 $2,525,027 01800004.550250 (Reed) $3,082,966
$1,494,480 $6,763,465 Total $8,257,945
Future year funding is contingent on Council budget approval.
Prepared By: Jeanette Gant, Community Recreation Manager Approved Forwarded to Council
Attachments:
A. Oaks Initiative Disclosure Form
B. Written Comments
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Packet Pg. 462 Attachment: Oaks Initiative Disclosure Form (5722 : Award Bid for Park Ambassador Services) Board Directory
(Effective April 3rd, 2023)
Name(s) of person of entities receiving public benefit:
n/a
Name(s) of trustees, directors, partners, and officers:
Board Chair Eric Sedman
Treasurer Barry Snell
Vice Chair Michele Aronson
Vice Chair Peter Trinh
Vice Chair Joshua Gilman
Vice Chair Julia Ladd
Board Member Anuj Gupta
Board Member Ericka Lesley
Board Member Leo Pustilnikov
Board members Luke Cain
Board members Bruce Fairty
Board members Lucian Tudor
Board members Lora Vrastil
Name(s) of person with more than a 10% equity, participations, revenue interest:
n/a
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Packet Pg. 463 Attachment: Oaks Initiative Disclosure Form (5722 : Award Bid for Park Ambassador Services) 1 Xavier Mota
From: Ellen Hannan <[email protected]>
Sent: Wednesday, May 17, 2023 3:03 PM
To: Council Mailbox; councilmtgitems; Clerk Mailbox
Subject: Consent item H Downtown Inc
EXTERNAL
Please pull item H for discussion of the Ambassador Program for Reed Park. Is this band aid approach the best the City can offer the residents of the area Lincoln. This has resulted in unknown deaths at St Monica's property and 1231 Lincoln Blvd.
The SMPD Chief of Police has no answer for this matter. Chief Batista has not read the West Hollywood Vacant Building Ordinance so he is unaware of the highest standards in present day code enforcement. His officers patrol daily and remove the same individuals daily
.
City manager David White has made no progress in promoting a new vacant building ordinance. I suggest he copy the West Hollywood Ordinance and submit it to all his department heads for review and feedback. This is a multi department problem. I expect he should have a group meeting and to council a written plan by Jul 15. Without a deadline this will not be done.
Commission like Housing, Parks and Recreation, Public Works, Landmarks as well as the Planning Department and City Attorney Office need to have input.
Of course the Neighborhood Associations, Landlord Association and general public have a right to input BEFORE an ordinance is presented in a final form for adoption by the City Council.
Please give this matter your urgent attention. I don't need another dead body on a vacant site on my block of 1200 9th St.
Ellen Hannan
1218 9th St #6
Santa Monica CA 90401
ITEM 5.H.
MAY 23, 2023
ITEM 5.H.
MAY 23, 2023
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Packet Pg. 464 Attachment: Written Comments (5722 : Award Bid for Park Ambassador Services) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.I
1 of 4
To: Mayor and City Council
From: David Martin, Director, Code Enforcement
Subject: Approval of Fourth Modification to Contract with California Panther Security for Pier Related Security
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a fourth modification to Agreement 11259 (CCS)[formerly #4865] in the amount of $327,969 with A.G.
Coast, Inc. d/b/a CA Panther, for security services on and around the Santa Monica Pier for the Community Development Department. This would result in a six-month amended agreement with a new total amount not to exceed $1,059,969, future year funding contingent on Council budget approval.
Summary
The Pier Task Force was created to address concerns over safety, public health, and the environment related to unpermitted vending. Based on the success of the Task Force, now known as DaRT (Directed Action Response Team), Council directed staff to continue the program through June 30, 2023. Contract security services provided by A.
G. Coast, Inc. (dba CA Panther) continue to be instrumental in assisting DaRT in reducing unpermitted vending on and around the Santa Monica Pier. Staff recommends that the City modify its agreement with CA Panther to continue contract security services through December 31, 2023, while staff completes a Request for Proposal process. This would ensure that DaRT has the contract security services needed to continue to address unpermitted vending and its associated public safety, public health, and environmental risks.
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Discussion
In January 2022, the City contracted with CA Panther to provide security services on and around the Santa Monica Pier through June 30, 2022, for an amount not to exceed $250,000 under the City Manager’s authority pursuant to Santa Monica Municipal Code (SMMC) 2.24.070. A first modification of the agreement was executed on January 25, 2022, to modify the scope of work including days and work hours. In February 2022, the City Council held a study session to discuss the issue of unpermitted vending on and around the Pier and to consider the future of the Pier Task Force (now known as DaRT). At that time, Council directed staff to extend security services at the Pier through June 30, 2023. The contract has since been amended three times to fund this extension and other technical modifications in services required to support DaRT.
On March 11, 2023, the Council held a workshop to select Council priorities and provide direction on the Fiscal Year 2023-25 budget. Council affirmed the Priority of Addressing Homelessness and Clean and Safe and allocations of Measure CS funds, including continuation of DaRT beyond June 30, 2023. Therefore, staff is preparing a Request for Proposal for security services on and around the Pier and will return to Council for approval of a new five-year Contractual Services Agreement effective January 1, 2024.
In order to prevent a disruption of services, staff recommends that Council authorize a fourth modification to Agreement 11259 with CA Panther to add one additional unarmed security officer working a twelve-hour shift and extend the contract through December 31, 2023, in the amount of $327,969 for a new total not to exceed $1,059.969.
Past Council Actions
4/9/2019 Comprehensive Sidewalk Vending Program and Emergency Ordinance
2/22/2022 Citywide Response to Sidewalk Vending Study Session 4/26/2022 Award Contract with CA Panther Security to Provide Security Services Related to Pier Vending
3/11/2023 Council Workshop to Select Council Priorities and Provide Direction on Fiscal year 2023-2025 Budget
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Environmental Review
This contract modification for additional security is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The provision of additional security services on and around the Santa Monica Pier is an administrative program to ensure public safety in the City and would not result in physical effects.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase the amount of the agreement with A. G. Coast, Inc. (dba CA Panther) for security services on and around the Santa Monica Pier. Future year funding is included in the FY 2023-25 Proposed Biennial Budget and contingent on Council budget approval.
Contract Modification Request: A.G. Coast, Inc
Agreement # Current
Authorized
Amount
FY 2022-23
Request
Amount
Future
Years
Dept Account # Total Revised
Contract Amount
11259[formerly
4865]
$732,000 $56,392 $271,577 01700005.550010 $1,059,969
TOTAL $1,059,969
Prepared By: Cheryl Shavers, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Original Agreement #4865 CA Panther
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B. First Modification of Agreement No. 4865
C. Second Modification to Agreement #11259
D. Third Modification to Agreement #11259
E. Oaks Initiative
F. Comprehensive Sidewalk Vending Program and Emergency Ordinance (Web Link)
G. Citywide Response to Sidewalk Vending (Web Link)
H. Approval of Contract Modification CA Panther Security to Provide Security Services Related to Pier Vending (Web Link)
I. 2023 Council Workshop to Select Council Priorities and Provide Direction on the Fiscal Year 2023-2025 Budget (Web Link)
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Contract No. 4865 (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Contract”), entered into as of January 6, 2022 (“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and A.G. Coast Corporation, a California corporation, d/b/a California Panther Security (“CA Panther”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. CA Panther is qualified to do business, and is doing business, in the State of California. CA Panther represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Contract.
C. The City and CA Panther desire to enter into an agreement for the CA Panther to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term. This Agreement begins on the Execution Date and terminates on June 30, 2022, unless sooner terminated in accordance with Section 15.
2. CA Panther Services. CA Panther will perform all of the services (“Services”) described in Exhibit A, Scope of Services. CA Panther will complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
3.1 Make available to CA Panther any currently existing documents, data or information required for the performance of the Services.
3.2 Designate a representative authorized to act on behalf of City.
3.3 Promptly examine and render findings on all documents submitted for staff review by CA Panther.
4. Compensation. The City will compensate CA Panther for the Services performed in an amount not to exceed $250,000.00, as set forth in Exhibit B.
5. Invoices. CA Panther will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB 1/7/2022
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by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Code Enforcement
City of Santa Monica
1685 Main Street, Room 111
Santa Monica, California 90401
Attention: Sharon Guidry
Re: Contract No. <Number>
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. <Number>
6.2 All notices, demands, requests or approvals to CA Panther:
CA Panther
5777 West Century Blvd, #1601
Los Angeles, CA 90045
Attention: Delia Rosales or Akin Peters
(310) 641-5555
Re: Contract No. <Number>
7. Relationship Of The Parties/Independent Contractor.
7.1 CA Panther enters into this Agreement as, and shall continue to be, an independent contractor for purposes of federal, state, and local laws, including but not limited to, the California Labor Code, California Unemployment Insurance Code, and wage orders of the Industrial Welfare Commission. Under no circumstances shall CA Panther or CA Panther’s employees, subcontractors, volunteers, agents, or representatives look to City as his/her/its employer, or as a partner, agent, or principal. CA Panther and CA Panther’s employees, subcontractors, volunteers, agents, or representatives shall not be entitled to any City paid benefits accorded to City employees including workers’ compensation, disability insurance, vacation or sick pay.
7.2 CA Panther shall pay, when and as due, any and all taxes incurred as a result of CA Panther’s compensation, including estimated taxes, and shall provide City with proof of payment on demand.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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7.3 CA Panther agrees to indemnify, defend, and hold harmless City for any claims, losses, costs, fees, liabilities, damages or injuries suffered by City arising out of CA Panther’s breach of this Section.
8. CA Panther’s Representations.
8.1 CA Panther represents that CA Panther and all of CA Panther’s employees, subcontractors, volunteers, agents, and representatives who will provide the Services, possess the qualifications and ability to perform the Services in a professional manner, without the advice, control, direction, or supervision of City. Performance of the Services in a professional manner includes meeting the requirements of the program under which CA Panther is obligated to provide Services, and failure to do so shall constitute a material breach of this Agreement.
8.2 CA Panther represents that it has all the training and special skills necessary to provide the Services. CA Panther understands that it shall be solely responsible for the professional performance of the Services, and shall receive no assistance, direction, or control from City. CA Panther shall have sole discretion and control of CA Panther’s Services and the manner in which they are performed.
8.3 CA Panther represents that it maintains a business location that is separate from the location(s) where CA Panther will provide Services.
8.4 CA Panther represents that CA Panther is engaged in an independently established business of the same nature as that involved in the Services that CA Panther will perform under this Agreement.
8.5 CA Panther represents that CA Panther advertises and holds itself out to the public as available to perform, does perform for others, and maintains its own clientele for the same or similar services as the Services that CA Panther will perform under this Agreement.
9. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and CA Panther, and approved as to form by the City Attorney.
10. Insurance. Prior to commencing work, CA Panther must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by CA Panther or CA Panther’s agents, representatives, employees or subconsultants for the duration of this Agreement. CA Panther must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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11. Defense and Indemnification.
11.1 CA Panther agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of CA Panther, or CA Panther’s employees, agents, officers, and subconsultants. CA Panther’s responsibilities under this Section
11.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of CA Panther, its employees, agents or officers, or subconsultants; provided, however, that CA Panther’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City.
Notwithstanding CA Panther’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from CA Panther, if City chooses to do so.
11.2 Enforcement Costs. CA Panther agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 11.1.
12. Prohibition Against Transfers.
12.1 CA Panther may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
12.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of CA Panther or of any general partner or joint venturer or syndicate member of CA Panther, if a partnership or joint venture or syndicate exists, which results in changing the control of CA Panther, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
13. Permits and Licenses. CA Panther, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
14. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
15. Default and Termination.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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15.1 If CA Panther fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to CA Panther.
15.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to CA Panther. Upon termination of this Agreement, City will pay CA Panther any compensation earned and unpaid up to the effective date of termination.
16. Compliance with Law. CA Panther must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.
17. Discrimination. CA Panther may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
18. Nuisance. CA Panther may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
19. Records.
19.1 CA Panther must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. CA Panther must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
19.2 CA Panther must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles.
CA Panther must clearly identify all records and make them readily accessible to the City. At the City’s request, CA Panther must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
19.3 CA Panther must allow the City to have free access to CA Panther’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit CA Panther’s records, and CA Panther agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by CA Panther, CA Panther agrees to pay the cost of the City’s audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 473 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related - 6 -
20. Work Product; Reports.
20.1 Any work product prepared or caused to be prepared by CA Panther or any subconsultant for this Agreement will be the exclusive property of City. No work product given to or prepared by CA Panther or any subconsultant pursuant to this Agreement may be made available to any individual or organization by CA Panther without prior written approval by City.
20.2 At the City’s request, CA Panther must furnish reports concerning the status of the Services.
21. Standard of Care. CA Panther agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of CA Panther’s profession currently practicing in the same locality under similar conditions.
22. Subconsultants.
22.1 If CA Panther proposes to have any subconsultant perform any part of the Services, CA Panther must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subconsultant, and the total price or hourly rates used in preparing an estimated cost for the subconsultant’s services. The City, in its sole discretion, may grant or deny the request.
22.2 CA Panther will be responsible for the quality of any subconsultant’s work.
Every subcontract or agreement of any kind entered into between CA Panther and any subconsultant (or between any subconsultant and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 4865 (CCS) entered into between the City of Santa Monica and CA Panther on^^January 6, 2022.
23. COVID-19 Vaccinations. CA Panther agrees that all personnel assigned to perform the Services who will either visit or work in City facilities or interact with either City employees or City residents in the course of performing said Services shall be fully vaccinated, as defined in the City’s COVID-19 Vaccination Policy, a copy of which is attached as Exhibit D and incorporated herein by reference. CA Panther shall provide the City with an attestation that CA Panther has confirmed the personnel assigned to perform the Services are fully vaccinated and that such personnel have produced to CA Panther one of the forms of documentation set forth in the City’s COVID-19 Vaccination Policy. CA Panther shall maintain the underlying documentation establishing that the personnel are fully vaccinated and supporting the attestation for the term of this Agreement. CA Panther shall make such documentation available to the City for inspection on demand. CA Panther’s failure to comply with the City’s COVID-19 Vaccination Policy or to permit the City to inspect the documentation to DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB 1/7/2022
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verify compliance with the City’s COVID-19 Vaccination Policy within 10 days after the City’s written request for such documentation shall constitute a breach of this Agreement.
24. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
25. Venue and Jurisdiction. The City and CA Panther agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
26. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
27. Exhibits. The following exhibits are incorporated by reference into this Contract as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
Exhibit D COVID Vaccination Policy
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
JOSEPH LAWRENCE
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
DAVID WHITE
City Manager
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB Joseph Lawrence
1/7/2022
Interim City Attorney
City Manager
1/7/2022
David White
1/10/2022
Denise Anderson-Warren
City Clerk
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Packet Pg. 475 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related -
8-
Interim City Attorney
A.G. Coast Corporation, a California
corporation, d/b/a California Panther
Security
By: ________________________________
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB Vice President
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Packet Pg. 476 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related Exhibit A
Scope of Services
1. The City requires the services of seven (7) unarmed security officers and one (1) supervisor (collectively referred to herein as “security officers”) to work two shifts as set forth in Paragraph 7 below to secure and monitor points of entry onto the Santa Monica Pier by being stationed at one or more ingress post(s) on the Pier as identified by the City to (1) prevent sidewalk vendors, as defined by Santa Monica Municipal Code section 6.36.020, from gaining entry to the Pier and (2) report any other unusual activity on the Pier.
1.1 The security officers will cooperate with the City’s Code Enforcement Officers, the Santa Monica Police Department, and any other law enforcement agencies that have authority to act on the Pier. Such cooperation includes filing reports of incidents and calling in Code Enforcement or the Santa Monica Police Department for incidents or events requiring assistance from or intervention by a code or law enforcement officer.
1.2 The Services will be performed in a professional manner and in a manner that is courteous and polite to the public to the extent possible under the circumstances.
1.3 As to the sidewalk vendors, the security officers will inform the sidewalk vendors that they are not allowed to gain entry to the Pier. If the sidewalk vendors continue onto the Pier, the security officers will report the entry to either the City’s Code Enforcement Officers or the Santa Monica Police Department.
1.4 If the security officers observe other usual activity on the Pier, the security officers will report such activity to either the City’s Code Enforcement Officers or the Santa Monica Police Department.
2. CA Panther will provide the security officers, at its own expense, with all equipment necessary for the security officers to perform the Services; except, however, the City may issue 2-way radios, which are proprietary to the City and are necessary to perform the Services, to the security officers.
3. CA Panther shall commence providing the Services no later than 21 days after the Execution Date, which will provide CA Panther sufficient time to retain the necessary security officers. CA Panther shall maintain a sufficient pool of security officers that meet the requirements set forth in Paragraph 4 such that if, for any reason, the scheduled security officer does not report for duty or must be replaced, CA Panther can provide a replacement security officer within two hours after notification of the need for a replacement.
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Packet Pg. 477 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related
4. The security officers assigned to perform the Services shall be competent, qualified, properly trained and licensed to perform all duties or tasks associated with the Services in a manner consistent with the highest industry practices and standards, and proficient in the English language. Prior to assigning the security officer to perform the Services, CA Panther will perform a thorough background check on all security officers and shall not assign any security officers to perform the Services if any information disclosed in such background check reveals a criminal conviction or otherwise indicates that such person, in any way, might not perform the Services in accordance with the standards applicable under this Agreement.
5. In addition to the requirements set forth in Paragraph 4, the supervisor assigned to perform the Services must possess a minimum of seven years of prior law enforcement experience and at least one year of such experience in a supervisory capacity. The supervisor will be on site to perform the Services. The duties of the supervisor include overseeing the performance of the Services, scheduling of security officers to work according to the shifts described in Paragraph 7 below, coordinating lunch and other breaks of security officers to ensure maximum coverage on ingress points is maintained, ensuring that security officers do not vacate their assigned ingress point unless relieved by the supervisor or the next shift, , ensuring that the security officers do not engage in personal activities (such as, but not limited to, texting, personal phone calls, reading magazines, visiting with friends, family, or acquaintances, etc.) while performing the Service; ensuring security officers are complying with the Services , and providing any reports the City may require from time to time.
6. No security officer will be armed with firearms or other lethal weapons.
7. CA Panther will staff security officers to work two shifts on Saturday and Sunday as follows:
7.1 Shift 1 between 8:00 a.m. to 4:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor; and
7.2 Shift 2 between 2:00 p.m. to 10:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor.
8. In addition to the shifts described in Paragraph 7 above, on each day between Monday, February 7, 2022 and Friday, February 11, 2022, CA Panther will staff security officers to work the following shifts:
8.1 Shift 1 between 8:00 a.m. to 4:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor; and
8.2 Shift 2 between 2:00 p.m. to 10:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor.
9. CA Panther shall ensure that the security officers report for their shifts at the time and place specified in these Services.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 478 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related
10. The regular, overtime, and holiday hourly rates for the Services are set forth in Exhibit B. The overtime rates shall apply if a security officer works more than 8 hours a day.
Holiday hourly rates shall apply to the following federal holidays: New Year’s Day, Martin Luther King Day, Washington’s Birthday, Memorial Day, Juneteenth Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 479 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related Exhibit B
Budget
CA Panther will provide security officers to perform the Services, as set forth in Exhibit A.
CA Panther will invoice and the City shall pay CA Panther for the hours worked by the security officers at the following hourly rates
Position Regular
Hourly Rate
Holiday and
Overtime Hourly Rate
Unarmed Security Officer $27.00 $40.50
Unarmed Security Supervisor $29.00 $43.50
The foregoing rates are effective from the Execution Date through June 30, 2022. The total payment for the Services shall not exceed $250,000.00 DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 480 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related Exhibit C
Insurance Requirements
CA Panther shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by CA Panther, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if CA Panther has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If CA Panther maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits maintained by CA Panther. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of CA Panther including materials, parts, or equipment DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 481 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to CA Panther’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37).
b. Primary Coverage: For any claims related to this Agreement, CA Panther’s insurance shall be primary coverage as least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of CA Panther’s insurance and shall not contribute with it.
c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: CA Panther hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said CA Panther may acquire against the City of Santa Monica by virtue of payment of any loss. CA Panther agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by CA Panther, its employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica.
The City of Santa Monica may require CA Panther to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the name insured or the City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 482 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related CA Panther shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive CA Panther’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If CA Panther, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from CA Panther resulting from said breach.
Subcontractors
CA Panther shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if CA Panther does not have employees. CA Panther must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 483 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related Exhibit D
COVID Vaccination Policy
COVID-19 VACCINATION POLICY
1. Purpose
COVID-19 VACCINATION POLICY
The purpose of this policy is to provide City employees with a safe work environment and to protect the health and safety of both City employees and the public we serve, during the ongoing local emergency occasioned by the threat to public health and safety posed by COVID-19. To achieve that purpose, the City is requiring that City employees, volunteers (including interns or externs), members of City Boards, Commissions, and Task Forces, and certain contractors be vaccinated for COVID-19.
2. Preamble
The City Manager first declared a state of local emergency on March 13, 2020. Since then, the City Council has ratified the declaration of a local emergency on multiple occasions, the most recent of which was July 13, 2021.
In addition, the states of emergency declared at the county, state, and national level because of COVID-19 all remain in place.
Over the course of the emergency, the Los Angeles County Department of Public Health has issued a series of health orders imposing risk reduction measures to address the COVID-19 emergency. The most recent, issued August 16, 2021, recognizes, among other things:
• Since June 15, 2021, when many restrictions imposed by the state and County were lifted, “community transmission of COVID-19 in Los Angeles County has rapidly increased from Low to High.”
• COVID-19 daily cases are now increasing; on August 13, 2021 alone, Los Angeles County reported 3,810 new cases. As of August 6, 2021, Los Angeles County is DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 484 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related also reporting a 7-day daily average case rate of 29.1 cases per 100,000 people, without a 7-day lag. The test positivity rate and number of hospitalizations have also dramatically increased. This indicates a continued and high risk of COVID19 infection for the unvaccinated. This also means that community transmission of COVID-19 within Los Angeles County is highly likely to increase during the coming days and weeks.
• Currently, the Delta variant is predominant in Los Angeles County. The Delta variant is two times more contagious than earlier COVID-19 variants and continues to lead to increased infections.
• At this time, the current COVID-19 vaccines (the Moderna two-dose and Johnson & Johnson single-dose vaccines approved under the Food and Drug Administration’s (“FDA”) Emergency Use Authorization (“EUA”) approval process and the Pfizer- BioNTech two-dose vaccine approved under the FDA’s Biologics License Application (i.e., general use) (“BLA”) approval process) are effective at helping to reduce the risk of getting and spreading the infection and also of getting seriously ill, even if a fully vaccinated person gets COVID-19, and even against the current variants of the virus that causes COVID-19. Although no vaccine is 100% effective at preventing illness in vaccinated people, the currently authorized COVID-19 vaccines remain the best form of protection against COVID-19.
On August 12, 2021, the Los Angeles County Department of Public Health issued a health order requiring vaccination of health case workers. This order recognizes, among other things:
• The spread of COVID-19 remains a substantial danger to the public. • The Delta variant has become the dominant strain of COVID-19 virus in the County and is much more contagious that previous strains of COVID-19. • Vaccination against COVID-19 is the most effective means of preventing infection with the COVID-19 virus, with the risk of infection reduced by 70% to 95%.
Vaccination also appears to reduce the chance of transmission by an infected vaccinated person by 40% to 60%.
• Unvaccinated persons are more likely to get infected and spread the virus. Over 90% of current hospitalizations and deaths are among unvaccinated persons.
Since July 30, 2021, COVID-19 cases and hospitalizations in Los Angeles County have continued to increase. For a recent reporting period, the weekly case average was 3,455 (a
58.6% increase over the last reporting period) and the number of hospitalizations was 1,503 (a 68.6% increase).
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 485 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related In response to the continuing rapid increase in COVID-19 transmission, including that due to the Delta variant, many public employers have adopted mandatory vaccination policies. Among the local public employers implementing such policies are: Los Angeles County, which requires all County employees to be vaccinated by October 1, 2021; the University of California and the California State University systems, both of which require all employees and students to be fully vaccinated; and the City of Pasadena, which is requiring all city employees to be fully vaccinated by no later than September 17, 2021.
Furthermore, on August 12, 2021, the Los Angeles County Department of Public Health issued an order requiring health care workers, including doctors and medical assistants, dentists and dental assistants, pharmacists, EMTS, EMT-paramedics, and home health aides to be fully vaccinated by September 30, 2021.
A continued increase in the vaccination rate is paramount to stem the continuing rapid increase in COVID-19 transmission. Currently authorized vaccines have proven effective at preventing severe outcomes from the virus causing COVID-19, including the Delta variant. COVID-19 vaccines are free, safe, and widely available. Getting vaccinated is one of the most important ways to help stop COVID-19 spread.
Currently, approximately 88% of Santa Monicans 12-17 years of age and 81% of Santa Monicans 16 years of age or older are vaccinated. The percentage of City employees who are vaccinated falls well below this, with only approximately 60% of employees having selfreported vaccination, and only approximately 36% having submitted documentation of vaccination.
3. Vaccination Requirement
To ensure that the City fulfills its primary function of protecting the health and safety of the Santa Monica community, while also meeting its obligation to provide a safe and healthy workplace for employees, all Covered Persons must: (a) receive at least one dose of a COVID-19 vaccine, or request an exemption, no later than September 17, 2021; and (b) in the absence of an exemption, be fully vaccinated for COVID-19 by no later than October 29, 2021.
4. Reporting Vaccination Status and Documentation
a) All Covered Persons must report their vaccination status no later than 5:00 p.m. on September 17, 2021. Covered persons must use the process and form designated by the City for this purpose, and include supporting documentation proving their vaccination status. Covered Persons will certify that they are:
i. Fully vaccinated for COVID-19 (no request for exemption required)
ii. Partially vaccinated for COVID-19 (no request for exemption required)
iii. Unvaccinated for COVID-19 (request an exemption due to medical/disability or sincerely held religious belief, practice, or observance)
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 486 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related Covered Persons will certify that the information they provide regarding vaccination status is true and accurate.
b) All Covered Persons who certified that they were partially vaccinated for COVID-19 as of September 17, 2021, must certify that they are fully vaccinated for COVID-19 by no later than 5:00 pm on October 29, 2021. c) All Covered Persons who requested but were denied an exemption, must certify that they are fully vaccinated for COVID-19 by no later than 5:00 pm on October 29, 2021, or such later date as may be specified in the denial of the exemption.
d) Covered Persons are required to provide the City with proof of vaccination status within the relevant time frames set forth above. Proof of vaccination status may include any of the following documents:
i. A screen shot of the digital vaccination record, which is available free and instantly from the state of California, https:// myvaccinerecord.cdph.ca.gov/
ii. A photo of the CDC COVID-19 vaccination record card iii. Documentation by the employee's Health Care provider
5. Requests for Exemptions
The City will review requests for medical/disability and religious exemptions on a case -bycase basis consistent with procedures for reasonable accommodation requests. a) Medical/Disability Exemption: Covered Persons with a medical condition, disability, or other medical restriction that affects their ability to safely receive a COVID-19 vaccine, as verified by their Health Care provider, may request a reasonable accommodation to be exempted from this vaccination requirement.
Requests for medical/disability exemption must be submitted to the Human Resources Department using a process and form designated by the City no later than September 17, 2021 at 5:00 p.m. Covered Persons requesting a medical/disability exemption will be required to obtain a completed Certification from their Health Care Provider on a form to be provided by the City.
b) Requests for Religious Exemption: Covered Persons with a sincerely held religious belief, practice, or observance that prohibits them from receiving a DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
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Packet Pg. 487 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related vaccine may request a reasonable accommodation to be exempted from this vaccination requirement.
Requests for religious exemption must be submitted to the Human Resources Department using a process and form designated by the City no later than 5:00 p.m. on September 17, 2021. If the City possesses an objective basis for questioning the nature or sincerity of the religious belief, practice, or observance, the City may request that the Covered Person produce additional information to support their request for exemption.
6. Confidentiality of Vaccination Status and Records
The City will maintain the confidentiality of documentation and information regarding a Covered Person’s vaccination status and any request for exemption. The City will limit access to such documentation and information to those employed or retained by the City, such as the City’s Human Resources staff and individual employees’ immediate supervisors, with a need to know as provided by the American with Disabilities Act, the Confidentiality of Medical Information Act, California Civil Code section 56.20 (c), and other applicable local, state, or federal laws.
7. Definitions
a) “Covered Persons”: Covered Persons are all City employees and volunteers (including interns or externs); all members of City Boards, Commissions, and Task Forces; and all contractors with whom the City, after the effective date of this policy, enters into contracts that will require them to visit or work in City facilities or interact with City residents or employees, b) COVID-19 Vaccine: A COVID-19 vaccine satisfies the requirement of this policy if the FDA has approved the vaccine’s use under either the EUA or BLA approval processes. Vaccines that currently meet this requirement include Moderna or Pfizer- BioNTech (two-dose COVID-19 vaccine series) and Johnson & Johnson/Janssen (a single-dose COVID-19 vaccine). c) "Fully Vaccinated": A Covered Person is fully vaccinated if 14 days or more have passed from the date the Covered Person received the final dose of a twodose COVID-19 vaccine series (Moderna or Pfizer- BioNTech) or a single-dose COVID-19 vaccine (Johnson & Johnson/Janssen). This definition may be expanded should booster shots for the COVID-19 vaccines be required in accordance with guidance provided by the U.S. Centers for Disease Control (CDC), FDA, California Department of Public Health, or Los Angeles County Department of Public Health.
d) "Partially Vaccinated": A Covered Person is partially vaccinated if they have received at least one dose of a COVID-19 vaccine but do not meet the definition of fully vaccinated.
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
5.I.a
Packet Pg. 488 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related e) "Unvaccinated": A Covered Person is unvaccinated if they have not received any doses of COVID-19 vaccine or if their vaccination status is unknown. 8-23-21
John Jalili Date
Interim City Manager
DocuSign Envelope ID: 994141D8-4942-4E6F-B44B-3B951D4C22DB
5.I.a
Packet Pg. 489 Attachment: Original Agreement #4865 CA Panther (5732 : 4th Modification to Contract with California Panther Security for Pier Related 1 FIRST MODIFICATION OF AGREEMENT NO. 4865 (CCS)
This First Modification of Agreement Number 4865 (CCS) (“First Modification”), entered into as of (“Execution Date”), by and between the City of Santa Monica, a municipal corporation (“City”), and A.G. Coast Corporation, a California corporation, d/b/a California Panther Security (“CA Panther”) is made with reference to the following:
RECITALS
A. On or about January 6, 2022, the City and CA Panther entered into Agreement Number 4865 (CCS) (“Original Agreement”) for the services of unarmed security officers to secure and monitor points of entry onto the Santa Monica Pier.
B. City and CA Panther desire to modify the Original Agreement to include additional services to be performed by CA Panther.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Paragraph 7 of Exhibit A, Scope of Services, of the Original Agreement shall be deleted in its entirety and replaced with the following paragraph:
7. The work shifts shall be as follows:
7.1. CA Panther will staff security officers to work two shifts on Friday, Saturday, and Sunday as follows:
7.1.1. Shift 1 between 8:00 a.m. to 4:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor; and
7.1.2. Shift 2 between 2:00 p.m. to 10:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor.
7.2. In addition to the shifts described in Paragraph 7.1 above, on each day between Monday, February 7, 2022, and Thursday, February 10, 2022, CA Panther will staff security officers to work the following shifts:
7.2.1. Shift 1 between 8:00 a.m. to 4:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor; and
7.2.2. Shift 2 between 2:00 p.m. to 10:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor.
DocuSign Envelope ID: 63BA8256-A866-4B34-8103-470C5C80DBBF 1/25/2022
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Packet Pg. 490 Attachment: First Modification of Agreement No. 4865 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 2 7.3. With seven (7) days’ prior written notice to CA Panther, the City may modify the work shifts set forth in Paragraphs 7.1 and
7.2, including the days on which Services are to be provided and the time shifts commence or end. Unless agreed to in writing by both parties, however, the City may not reduce the work shifts in Paragraph 7.1. to less than two work shifts of 8.5 hours each for a two-day period.
2. Paragraph 8 of Exhibit A, Scope of Services, of the Original Agreement shall be deleted in its entirety and replaced with the following paragraph:
8. With seven (7) days’ prior written notice to CA Panther, the City may increase the number of unarmed security officers that are required to perform the work shifts set forth in Paragraph 7.
3. Except as expressly modified by this First Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
JOSEPH LAWRENCE
Interim City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
DAVID WHITE
City Manager
A.G. Coast Corporation, a California
corporation, d/b/a California Panther
Security
By: _______________________________
DocuSign Envelope ID: 63BA8256-A866-4B34-8103-470C5C80DBBF Joseph Lawrence
Interim City Attorney
1/21/2022
Vice President
1/25/2022
David White
City Manager
Denise Anderson-Warren
City Clerk
1/25/2022
5.I.b
Packet Pg. 491 Attachment: First Modification of Agreement No. 4865 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 1 SECOND MODIFICATION OF AGREEMENT NO. 4865 (CCS)
This Second Modification of Agreement Number 4865 (CCS) (“Second Modification”), entered into as of ____________________, by and between the City of Santa Monica, a municipal corporation (“City”), and A.G. Coast Corporation, a California corporation, d/b/a California Panther Security (“CA Panther”) is made with reference to the following:
RECITALS
A. On or about January 6, 2022, the City and CA Panther entered into Agreement Number 4865 (CCS) (“Original Agreement”) for the services of unarmed security officers to secure and monitor points of entry onto the Santa Monica Pier.
B. On or about January 25, 2022, the City and CA Panther entered into the First Modification of Agreement Number 4865 (CCS) (“First Modification”) to include additional services to be performed by CA Panther. The Original Agreement and First Modification may be referred to collectively herein as “the Agreement.” C. City and CA Panther desire to modify the Agreement to extend the term, increase the total compensation, and modify the services to be performed by CA Panther, as set forth herein.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Section 1 of the Original Agreement entitled “Term” shall be deleted in its entirety and replaced with the following:
Term. This agreement begins on the Execution Date and terminates on June 30, 2023, unless sooner terminated in accordance with Section 15 or extended by the parties in writing.
2. Section 4 of the Original Agreement entitled “Compensation” shall be deleted in its entirety and replaced with the following:
Compensation. The City will compensate CA Panther for the Services performed in an amount not to exceed $732,000.00, as set forth in Exhibit B.
3. The second paragraph of Exhibit B, Budget, commencing with “The foregoing rates…”, shall be deleted in its entirety and replaced with the following paragraph:
The foregoing rates are effective from the Execution Date through June 30, 2023. The total payment for the Services shall not exceed $732,000.00.
DocuSign Envelope ID: C362FF26-22C9-4D5B-8FD1-F13C31AEBACF
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Packet Pg. 492 Attachment: Second Modification to Agreement #11259 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 2 4. Paragraph 7 of Exhibit A, Scope of Services, of the Original Agreement, as modified by Section 1 of the First Modification, shall be deleted in its entirety and replaced with the following paragraph:
7. CA Panther will staff security officers to work one (1) shift on Fridays, Saturdays, and Sundays as follows:
7.1. Between 9:30 a.m. to 10:30 p.m.: Seven (7) unarmed security officers and one (1) supervisor.
7.2. The eight (8) hours of each such shift will be at regular pay, there will be one (1) hour unpaid lunch break, and the
remaining four (4) hours of each shift will be at overtime pay.
5. Paragraph 8 of Exhibit A, Scope of Services, of the Original Agreement, as modified by Section 2 of the First Modification, shall be deleted in its entirety and replaced with the following paragraph:
8. With seven (7) days’ prior written notice to CA Panther, the City may modify the work shifts set forth in Paragraph 7, including the days on which Services are to be provided and the time shifts commence or end.
6. Execution in Counterparts. This Second Modification may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification. Any signature to this Second Modification transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature). / / /
/ / /
/ / /
/ / /
/ / /
/ / /
/ / /
/ / /
DocuSign Envelope ID: C362FF26-22C9-4D5B-8FD1-F13C31AEBACF
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Packet Pg. 493 Attachment: Second Modification to Agreement #11259 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 3 7. Except as expressly modified by this Second Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Second Modification as of the date and year first written above.
ATTEST:
______________________________
APPROVED AS TO FORM:
______________________________
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
A.G. Coast Corporation, a California
corporation, d/b/a California Panther
Security
By: _______________________________
DocuSign Envelope ID: C362FF26-22C9-4D5B-8FD1-F13C31AEBACF Susan Cola
Interim City Attorney
5/12/2022
Moe Galal California Panther
5/12/2022
Vice President
5/14/2022
David White
City Clerk City Manager
6/1/2022
Denise Anderson-Warren
5.I.c
Packet Pg. 494 Attachment: Second Modification to Agreement #11259 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 1 THIRD MODIFICATION OF AGREEMENT NO. 4865 (CCS)
This Third Modification of Agreement Number 4865 (CCS) (“Third Modification”), entered into as of ____________________, by and between the City of Santa Monica, a municipal corporation (“City”), and A.G. Coast Corporation, a California corporation, d/b/a California Panther Security (“CA Panther”) is made with reference to the following:
RECITALS
A. On or about January 6, 2022, the City and CA Panther entered into Agreement Number 4865 (CCS) (“Original Agreement”) for the services of unarmed security officers to secure and monitor points of entry onto the Santa Monica Pier.
B. On or about January 25, 2022, the City and CA Panther entered into the First Modification of Agreement Number 4865 (CCS) (“First Modification”) to include additional services to be performed by CA Panther. The Original Agreement and First Modification may be referred to collectively herein as “the Agreement.” C. On or about May 12, 2022, the City and CA Panther entered into the Second Modification of Agreement Number 4865 (CCS) (“Second Modification”) to include an extension of the term and increase in compensation. The Original Agreement, First Modification, and Second Modification may be referred to collectively herein as “the Agreement.”
D. City and CA Panther desire to modify the Agreement to extend the term, increase the total compensation, and modify the services to be performed by CA Panther, as set forth herein.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Exhibit B “Budget” of the Original Agreement shall be deleted in its entirety and replaced with the following:
CA Panther will provide security officers to perform the Services as modified by Section 4 of the Second Modification. CA Panther will invoice, and the City shall pay CA Panther for the hours worked by the security officers at the following hourly rates beginning July 1, 2022:
Position Regular Hourly Rate Holiday and Overtime
Hourly Rate
Unarmed Security Officer $27.85 $41.78
Unarmed Security
Supervisor
$29.85 $44.78
DocuSign Envelope ID: 812F3370-3515-410F-ADA1-D4084E0648B1 9/6/2022
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Packet Pg. 495 Attachment: Third Modification to Agreement #11259 (5732 : 4th Modification to Contract with California Panther Security for Pier Related 2 The foregoing rates are effective from July 1, 2022, through June 30, 2023. The total payment for services shall not exceed $732,000.
2. Execution in Counterparts. This Third Modification may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification. Any signature to this Third Modification transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
3. Except as expressly modified by this Third Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Third Modification as of the date and year first written above.
ATTEST:
______________________________
APPROVED AS TO FORM:
______________________________
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
A.G. Coast Corporation, a California
corporation, d/b/a California Panther
Security
By: _______________________________
DocuSign Envelope ID: 812F3370-3515-410F-ADA1-D4084E0648B1
DOUGLAS SLOAN
9/6/2022
City Attorney
Vice President
9/9/2022
Moe Galal California Panther
David White
City Manager
11/24/2022
Denise Anderson-Warren
City Clerk
12/6/2022
5.I.d
Packet Pg. 496 Attachment: Third Modification to Agreement #11259 (5732 : 4th Modification to Contract with California Panther Security for Pier Related
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.
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. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.
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Packet Pg. 497 Attachment: Oaks Initiative (5732 : 4th Modification to Contract with California Panther Security for Pier Related Security)
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:
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 # ___________________________
5.I.e
Packet Pg. 498 Attachment: Oaks Initiative (5732 : 4th Modification to Contract with California Panther Security for Pier Related Security) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.J
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Adoption of a Resolution Authorizing the Application for Grant Funds from the State of California Department of Parks and Recreation Land and Water Conservation Fund Grant Funding
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Statutory Exemption pursuant to Section 15061(b)(3)(Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines that the grant application will have no possibility of significant effects.
2. Adopt the attached resolution authorizing the application for grant funds in the amount of $6 million from the California Department of Parks and Recreation Land and Water Conservation Fund Grant Program for the Memorial Park Expansion Project in the Public Works Department.
3. Authorize the City Manager to execute all necessary documents to apply for the grant, accept the grant, if awarded, and accept all grant renewals, if awarded.
Summary
Staff recommends that the City apply for $6 million in Land and Water Conservation Fund (LWCF) funding to move forward with the Memorial Park Expansion Project phase 1 at an estimated cost of $26 million. Expanding Memorial Park is a longstanding priority project for Santa Monica residents. Through multiple planning processes, staff has developed an actionable initial scope of work that would begin to address expressed community needs for this area. Santa Monica can access up to $20 million for phase I of the Memorial Park Expansion project through a 2016 Santa Monica College (SMC) bond measure (Measure V) and continues to seek additional funds, including through grants, to support this project in the context of limited local resources.
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The LWCF is a federal funding source established to assist states in planning, acquisition, and development of recreation lands. The California Department of Parks and Recreation (DPR) administers LWCF funds at the state level. The LWCF program is a competitive grant open to state and local agencies throughout California. In 2022, the agency awarded $45 million to fund 16 projects out of a total of $116 million in applications. In early 2023, the DPR Office of Grants and Local Services (OGALS) announced $30 million in LWCF funding for California state and local agencies. Local agencies can request up to $6 million for development or acquisition of land that either creates or expands existing parks. The granting agency will announce initial awards around December 2023, with approximate project start dates from late 2024 to late 2025 following post-award federal requirements. The LWCF grant application requires an authorizing resolution from the local governing body.
Background
The City of Santa Monica parks system includes 32 parks encompassing more than 130 acres. Memorial Park was established in the 1950s and is geographically located in the center of the City. It is important to the overall park system, serving as the primary park for baseball and softball, offering a space for pickleball and tennis and being the home of the City’s only public gymnasium and skate park.
The Memorial Park Redevelopment and Expansion Project would combine the existing
10.3-acre Memorial Park with the former Fisher Lumber site – a City-owned, 2.9-acre property adjacent to the existing park – into a 13.2-acre newly renovated and expanded community park that meets the increasing demand for recreational activities. An extensive community outreach process guided the development of a master plan layout and park program with an estimated cost of $100-$116 million, for the future renovation and expansion of Memorial Park that would include additional diamond sports fields and other highly desired community amenities.
In 2019, following master plan approval, staff coordinated with SMC and SMMUSD to develop a phase 1 of the project at an estimated cost of $30 million, with proposed funding of $20 million from SMC Measure V funds, and $5 million each from SMMUSD
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Measure SMS bonds and City of Santa Monica Capital Improvement Program (CIP) budget funds, conditioned on programmed joint use of the completed facilities. The City moved forward with a design-build contract award in February 2020, but suspended the project later that year due to the Covid-19 pandemic.
Staff returned to Council in fall 2022 for a study session to consider next steps for the Memorial Park Expansion Project. Staff presented a reduced scope of work for Phase 1 in consideration of limited funding and increased construction costs. Of the previously identified $30 million, only the $20 million dedicated to park redevelopment from the SMC bond measure remained available. Council directed staff to proceed with the proposed revised scope and to return with next steps, to reengage SMC and SMMUSD in negotiations for potential fiscal and use agreements, and to present a recommended alternative site for the temporary relocation of the Public Landscape Division’s operations yard.
In March 2023, City staff identified LWCF grant funding as a potential new resource to move the project forward.
Discussion
The National Park Services apportions LWCF funds to states for the planning, acquisition, and development of recreation lands. The California Department of Parks and Recreation Office of Grants and Local Services (OGALS) administers California’s funding allocation and will evaluate proposed projects across seven areas: 1) Unmet need (identified through level of priority for the community and alignment with Statewide Comprehensive Outdoor Recreation Plan (SCORP) goals); 2) Type of project (either new or existing park land acquisition or development); 3) New acreage placed under LWCF protection (project would add new land for recreational use); 4) Park deficient or economically disadvantaged area (identified by access to parks and availability of parkland for the impacted community); 5) Population served (identified as providing recreational opportunities for older adults, at-risk youth; and/ or persons with disabilities); 6) Public input (whether the proposed project reflects community input);
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and 7) Project readiness. Local agencies can request up to $6 million per project with a required 50% local match.
The proposed $6 million grant would contribute to the Memorial Park Redevelopment and Expansion Project reduced phase 1, which would convert an additional two acres of the northern parcel (formerly the Fisher Lumber site) into public park land. The reduced phase 1 as presented to Council in September 2022 includes:
Sports Fields
A combination field would use synthetic turf to create adaptable play space for baseball and softball groups of all ages. It is designed for flexibility. The combination field could accommodate a single regulation high school baseball game, adult softball game or collegiate softball game. Additionally, the field could be divided with temporary fencing to accommodate two youth baseball, or two youth fast pitch softball games played simultaneously. The field would feature covered dugouts, shaded spectator seating, and LED sports lighting. A batting cage for shared use sits adjacent to the combo field.
Amenities such as pitchers’ bullpens and additional batting cages would be considered in the design phase and in coordination with the fiscal and use agreements with SMC and SMMUSD.
Pickleball/Tennis Courts
Sixteen pickleball courts with overlapping striping for four tennis courts would be elevated over the new on-site surface parking lot and would include stairs and an elevator. The courts would feature LED sports lighting, wide perimeter clearance spaces, and dedicated equipment storage immediately adjacent to the play area.
Parking
The covered parking lot would increase parking inventory to be used exclusively by park patrons and would include a safe and convenient passenger loading zone and turnaround area. The parking lot’s central location would make it easily accessible from all areas of the park.
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Mobility and Streetscape Improvements
Mobility and streetscape improvements on 14th Street and Colorado Avenue would be included to the extent the budget allows. The proposed master plan includes 4’-wide planted areas that would provide a buffer between generous 8’-wide perimeter sidewalks and field activity within the park. Street trees and parkway planters would create a sense of comfort for pedestrians walking along the street and a shared use bike path completely separated from the street along the Colorado Avenue park frontage (Class I bike path) would allow for future connection to the Exposition Corridor Bike Path.
Staff believes that the proposed Memorial Park Expansion Project reduced phase 1 closely aligns with grant criteria and would be a competitive project for funding. Staff intends to propose the SMC bond Measure V funds as a grant match, so that receiving the grant would not require committing any additional City resources.
Environmental Review
Application for the LWCF grant is exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense Exemption) in that application of the grant would have no possibility of significant effects. If awarded the grant, necessary environmental review for the Memorial Park Redevelopment and Expansion Project reduced phase 1 would be completed in compliance with CEQA prior to the award of final design and construction contract. Furthermore, as specified in the grant application, the applying agency must complete an environmental review either at the time of application (June 1, 2023 for this grant application); within 60 days of the application deadline; or provide the granting agency with the status of environmental review and the applying agency’s plan to complete this process. The grant requires the following documentation:
• A Notice of Exemption End filed with, and stamped by, the county clerk, OR • An Initial Study with a Negative Declaration and a copy of the Notice of Determination filed with, and stamped by, the county clerk, OR
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• An Initial Study and an Environmental Impact Report and a copy of the Notice of Determination filed with, and stamped by, the county clerk.
AND:
• The CEQA Compliance Certification Form
• A State Clearinghouse Filing Receipt
Staff will complete all environmental review in compliance with CEQA and prior to receipt of grant funding.
Past Council Actions
Meeting Date Description
01/23/18 (Attachment A) Award of Design Agreement for the Memorial Park Feasibility Study and Master Plan
10/15/19 (Attachment B) Memorial Park Redevelopment and Expansion Master Plan Review
02/11/20 (Attachment C) Design-Build Contract for Memorial Park Expansion 09/27/22 (Attachment D) Memorial Plan Expansion Study Session Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. The grant requires a 50% project match which will come from Santa Monica College funding set aside for Memorial Park expansion. The grant is reimbursement-based. Staff would return to Council with budget changes if the grant is awarded.
Prepared By: Amelia Feichtner, Senior Architect
Approved Forwarded to Council
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Attachments:
A. January 23, 2018 Memorial Park Feasibility Study and Master Plan Design Agreement (Web Link)
B. October 15, 2019 Memorial Park Redevelopment and Expansion Master Plan Review (Web Link)
C. February 11, 2020 Design-Build Contract for Memorial Park Expansion (Web Link)
D. September 27, 2022 Memorial Plan Expansion Study Session (Web Link) E. Grant Resolution - Approving the Application for the Land and Water Conservation Fund Memorial Park Expansion Project
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1 City Council Meeting May 23, 2023 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROVING THE APPLICATION FOR THE LAND AND WATER
CONSERVATION FUND MEMORIAL PARK EXPANSION PROJECT
WHEREAS, the Congress under Public Law 88-578 has authorized the establishment of a federal Land and Water Conservation Fund Grant-In-Aid program, providing matching funds to the State of California and its political subdivisions for acquiring lands and developing Facilities for public outdoor recreation purposes; and WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing applications by local agencies under the program; and WHEREAS, the City of Santa Monica (City) must certify by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council approves the filing of an application for Land and Water Conservation Fund assistance for the proposed Memorial Park Expansion Project (Project).
SECTION 2. The City has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide.
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Packet Pg. 506 Attachment: Grant Resolution - Approving the Application for the Land and Water Conservation Fund Memorial Park Expansion Project 2 SECTION 3. The City to abide by 54 U.S.C. §200305(f)(3) which requires, “No property acquired or developed with assistance under this section shall, without the approval of the National Secretary of the Interior (Secretary), be converted to other than public outdoor recreation uses. The Secretary shall approve such conversion only if they find it to be in accord with the then existing comprehensive statewide outdoor recreation plan and only upon such conditions as he deems necessary to assure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”
SECTION 4. The City certifies that the City has matching funds from eligible source(s) and can finance 100 percent of the project, which up to half may be reimbursed SECTION 5. The City agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines for the Project.
SECTION 6. The City Appoints authorizes the City Manager, or designee, as the City’s agent to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the Project.
SECTION 7.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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Report
City Council Meeting: May 23, 2023
Agenda Item: 5.K
1 of 7
To: Mayor and City Council
From: Danny Alvarez, Fire Chief, Fire Department
Joseph Cevetello, Chief Information Officer, Information Services Department Subject: Approval of Urban Area Security Initiative 2021 and 2022 Grant Acceptance Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to accept two grants with a total awarded amount of $2,120,000 from the 2021 and 2022 Urban Area Security Initiative (UASI) for homeland security projects in the Fire and Information Services Departments, and to accept all associated grant renewals.
2. Authorize the City Manager to execute all necessary documents to accept the grant, grant modifications, and all associated grant renewals.
3. Authorize the City Manager to negotiate and execute a second modification to Contractual Services Agreement #10967 with Advanced Problem Solving, LLC, (APS) a California-based company, in an amount not to exceed $850,000 and on the same terms and conditions. This will result in a five-year amended agreement with a new total contract amount not to exceed $4,870,000 over a five-year period.
4. Adopt a finding of categorical exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines and a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption) CEQA Guidelines.
5. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Summary
Each year, the Federal government allocates grant funding to enhance regional preparedness for disasters, emergencies, and other threats to homeland security. The Los Angeles Mayor’s office awarded an additional $150,000 from UASI 2021 grant funds for the region to assist in a national emergency management exercise. Santa
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Monica Fire will host these funds on behalf of the region and the training modules will be completed by Advanced Problem Solving (APS).
In the UASI 2022 grant cycle, $1,970,000 was awarded to the City of Santa Monica Fire Department and the Information Services Department as a part of the U.S. Department of Homeland Security, Federal Emergency Management Agency's Urban Area Security Initiative grant:
• The Fire Department was awarded funding in the amount of $200,000 to be used for Hazardous Materials (HazMat) Training and Equipment, Urban Search and Rescue (USAR) Training and Equipment, and consumables for the Training Center.
• Santa Monica Fire will allocate $650,000 on behalf of the Los Angeles Area Fire Chiefs’ Association Regional Training Group (LAAFCA RTG) for training programs.
• The grant will use $750,000 to provide a secure cloud-based mapping portal for the operational area to be used for all hazard operational situational awareness, incident management, pre-planning, and reporting/analytics. The project mitigates threats to communications continuity and supports resiliency by allowing the region to purchase software that allows agencies to share data through the system as a redundant solution in case of a cyber-attack. • The Information Services Department was awarded funding totaling $370,000 to select consultants who will work with regional partners to identify current software platforms and road map implementation plan to ensure new software will meet the needs of the cybersecurity priority.
Staff recommends that Council authorize acceptance of the 2022 UASI grant funds and execution of a subrecipient agreement with the City of Los Angeles for a performance period of September 1, 2022, to May 31, 2025. The City of Los Angeles administers the UASI grant on behalf of the Los Angeles-Long Beach Urban Area, which includes Santa Monica.
Discussion
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The UASI program’s focus is on enhancing regional preparedness and capabilities in major metropolitan areas. The Santa Monica Fire Department requested funds to send staff to trainings that support its core public safety missions as well as regional homeland security goals. The following are the four major regional homeland security focus areas of the UASI grant program, known as Investment Justifications:
1. Strengthen interoperable and communications capabilities;
2. Strengthen information sharing, collaboration capabilities, and law enforcement investigations;
3. Protection of critical infrastructure and key resources; and
4. Catastrophic incident planning response and recovery.
The Fire Department proposes to use $175,000 in grant funds to send members to training to support the City’s Type I Urban Search and Rescue and specialized Hazardous Materials CBRNE training. Funding in the amount of $650,000 would be used to host the LAAFCA’s RTG training delivery model, which creates and disseminates regional training. There are no direct staffing costs associated with the LAAFCA RTG funds. Santa Monica Fire and all other fire agencies in Los Angeles County have access to the training delivery modules and learning content provided under the grant funding. The remaining $25,000 funding would be used to support equipment purchases and consumables for the Fire Department’s Training Center.
There are no additional ongoing costs associated with Fire’s grant funding and any equipment will be replaced with ongoing grant funding at the end of the equipment’s useful life.
The Fire Department was also able to secure $370,000 from this year’s grant for use by the Information Services Department (ISD) to fund the City’s ongoing cybersecurity program. This funding will assist the information security team with applying enhancement measures to strengthen identity management, safeguard City data stored with cloud-based vendors and provide greater cybersecurity risk prioritization to aid in cyberattack prevention. The purchase of the requested measures will require an equipment and software subscription renewal in subsequent years, beginning in Fiscal Year 2023-24. Staff has secured UASI 2022 funds to cover the subscription costs in FY
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2023-24. While ongoing funding for these tools has not been secured, staff believes the City will benefit from the enhanced cyber security tools for at least two years. Staff will pursue additional grant funding opportunities for future funding. If future grant funds are not available for the ongoing subscription expenses thereafter, staff will discontinue its use of these tools. Procurement for projects funded by the UASI grant will follow Santa Monica’s policies regarding competitive procurement processes.
The UASI program directly supports the national priority of expanding regional collaboration within the National Preparedness Goal, which defines what it means for the whole community to be prepared for all types of disasters and emergencies. The UASI grant is intended to assist participating jurisdictions in developing integrated regional systems for prevention, protection, response, and recovery from natural or human-made disasters. These funds cannot be used for general purposes and must be specified at the time of application. Homeland security purchases must be preapproved by the state and align with grant guidelines.
The UASI grant program is 100% federally funded from the Department of Homeland Security and managed through the State of California's Office of Emergency Services.
The City of Santa Monica has received over $20 million in homeland security grant funding since 2003. These funds have been used to purchase necessary interoperable communication and infrastructure equipment, supplies, and training in direct support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.
There are no ongoing costs related to the Fire Department’s grant funding. Future grant funding will be requested to fund any equipment replacement at the end of its useful life.
Information Services Department’s staff plans to utilize future UASI funds to support the on-going operational costs for the cybersecurity solutions. If future grant funds are not allocated to the City to cover the costs of the subscription renewals, staff will discontinue its use of these tools.
Environmental Review
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The use of grant funds to fund emergency preparedness equipment is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 (Class 1 Existing Facilities) of the CEQA Guidelines. Section 15301 exempts projects that consists of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. Grant funding will be used to replace equipment at the end of the equipment’s useful life as previously stated. Furthermore, the use of grant funds for cybersecurity, programs, equipment, supplies, and training would have no possibility of significant effect on the environment, and therefore, is also exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. Grant funds would support the administration of programs to ensure regional preparedness and would not result in physical effects on the environment.
Past Council Actions
Meeting Date Description
5/10/2022
(Attachment A)
Authorization to accept the 2021 Urban Area Security Initiative (UASI) Grant Funds for Homeland Security Projects and enter into a Subrecipient agreement with the City of Los Angeles
10/13/2020
(Attachment B)
Acceptance of 2019 Measure B Grant and increase to the Agreement with Advanced Problem Solving, LLC for the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG) Training Delivery Model 11/12/2019
(Attachment C)
Award of agreement with Advanced Problem Solving for video and curriculum development services for the Los Angeles Area Fire Chiefs Regional Training Group
Attachment D Original Contractual Agreement
Attachment E Modification 1
Attachment F Renewal 1
Financial Impacts and Budget Actions
Staff seeks authority to accept a grant totaling $1,970,000 from the U.S. Department of Homeland Security, Federal Emergency Management Agency for the 2022 UASI program to fund training and equipment in direct support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.
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Staff also seeks authority to accept a grant totaling $150,000 from the U.S. Department of Homeland Security, Federal Emergency Management Agency for the 2021 UASI program. This is in addition to the $1,177,692 previously awarded from the 2021 UASI program.
FY 2022-23 Grant Budget Changes
Establish Revenue
Budget
Amount Appropriate Funds Amount
20190001.40428F $150,000 20190001.55518F $150,000
20140001.40428G $370,000 20140001.55518G $370,000
20190001.40428G $1,600,000 20190001.55518G $1,600,000
Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified
Request
Amount
Account Number Total Amount
10967 $850,000 - 20190001.55518F $3,000,000
10967 Mod 1 $1,020,000 - 20190001.556530 $4,020,000
10967 Mod 2 - $200,000 20190001.55518F $200,000
10967 Mod 2 - $650,000 20190001.55518G $650,000
Total Revised Contract Amount $4,870,000
Prepared By: Deanna Kendall, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Staff Report May 10, 2022 - UASI 2021
B. Staff Report October 13, 2020 - APS Mod #1
C. Staff Report November 12, 2019 - APS Award
D. CSA 10967 expires 12-05-22
E. CSA First Modification with APS 10967
F. CSA APS through 12.5.23 Renewal
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G. 07 APS Oaks
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City Council
Report
City Council Meeting: May 10, 2022
Agenda Item: 3.B
1 of 5
To: Mayor and City Council
From: Danny Alvarez, Fire Chief, Fire Department
Subject: Authorization to accept the 2021 Urban Area Security Initiative (UASI) Grant Funds for Homeland Security Projects and enter into a Subrecipient agreement with the City of Los Angeles
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to accept a grant awarded in the amount of $1,869,845 from the 2021 Urban Area Security Initiative (UASI) for homeland security projects in the Fire and Information Services Departments, and for authority to accept all associated grant renewals.
2. Authorize the City Manager to execute all necessary documents to accept the grant, grant modifications, and all associated grant renewals.
3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Summary
Each year, the Federal government allocates grant funding to enhance regional preparedness for disasters, emergencies, and other threats to homeland security. In 2021, $1,869,845 was awarded to the City of Santa Monica Fire Department and the Information Services Department as a part of the U.S. Department of Homeland Security (DHS), Federal Emergency Management Agency's Urban Area Security Initiative (UASI) grant:
• The Fire Department was awarded funding totaling $1,177,692 to be used for Chemical, Biological, Radiological, Nuclear and Explosives (CBRNE) Equipment, Hazardous Materials (HazMat) Training and Equipment, Urban Search and Rescue (USAR) Training and Equipment, Tactical Emergency Medical Support
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(TEMS) equipment, equipment and props for the Training Center, and programs on behalf of the Los Angeles Area Fire Chiefs’ Association Regional Training Group (LAAFCA RTG).
• The Information Services Department was awarded funding totaling $692,153 to be used on cybersecurity program enhancements. These enhancements include implementing solutions that provide adequate means to monitor and safeguard City’s data stored with cloud-based providers, strengthen identity management, and provide greater cybersecurity risk prioritization to aid in cyberattack prevention.
Staff recommends that Council authorize acceptance of the 2021 UASI grant funds and execution of a subrecipient agreement with the City of Los Angeles for a performance period of September 1, 2021 to May 31, 2024. The City of Los Angeles administers the UASI grant on behalf of the Los Angeles-Long Beach Urban Area, which includes Santa Monica.
Discussion
The UASI program’s focus is on enhancing regional preparedness and capabilities in major metropolitan areas. The Santa Monica Fire Department requested funds to send staff to trainings that support its core public safety missions as well as regional homeland security goals. The following are the four major regional homeland security focus areas of the UASI grant program, known as Investment Justifications:
1. Strengthen interoperable and communications capabilities;
2. Strengthen information sharing, collaboration capabilities, and law enforcement investigations;
3. Protection of critical infrastructure and key resources; and
4. Catastrophic incident planning response and recovery.
The Fire Department proposes to use $277,692 in grant funds to send members to training to support the City’s Type I USAR and HazMat teams and specialized Hazardous Materials CBRNE training. Funding in the amount of $900,000 would be
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Packet Pg. 516 Attachment: Staff Report May 10, 2022 - UASI 2021 (5741 : UASI 2021 and 2022 Grant Acceptance) 3 of 5
used to host the LAAFCA’s RTG training delivery model, which creates and disseminates regional training. There are no direct staffing costs associated with the LAAFCA RTG funds. Santa Monica Fire and all other fire agencies in Los Angeles County have access to the training delivery modules and learning content provided under the grant funding. The remaining funding would be used to support equipment purchases for the TEMS program and new equipment and props for the Fire Department’s Training Center. There are no additional ongoing costs associated with Fire’s grant funding and any equipment will be replaced with ongoing grant funding at the end of the equipment’s useful life.
The Fire Department was also able to secure $692,153 from this year’s grant for use by the Information Services Department (ISD) to fund the City’s ongoing cybersecurity program. This funding will assist the information security team with applying enhancement measures to strengthen identity management, safeguard City data stored with cloud-based vendors and provide greater cybersecurity risk prioritization to aid in cyberattack prevention. The purchase of the requested measures will require an equipment and software subscription renewal in subsequent years, beginning in Fiscal Year 2023-24. Staff has secured UASI 2022 funds to cover the subscription costs in FY 2023-24. While ongoing funding for these tools has not been secured, staff believes the City will benefit from the enhanced cyber security tools for at least two years. Staff will pursue additional grant funding opportunities for future funding. If future grant funds are not available for the ongoing subscription expenses thereafter, staff will discontinue its use of these tools. Procurement for projects funded by the UASI grant will follow Santa Monica’s policies regarding competitive procurement processes.
The UASI program directly supports the national priority of expanding regional collaboration within the National Preparedness Goal, which defines what it means for the whole community to be prepared for all types of disasters and emergencies. The UASI grant is intended to assist participating jurisdictions in developing integrated regional systems for prevention, protection, response, and recovery from natural or human-made disasters. These funds can not be used for general purposes and must be specified at the time of application. Homeland security purchases must be pre5.K.a Packet Pg. 517 Attachment: Staff Report May 10, 2022 - UASI 2021 (5741 : UASI 2021 and 2022 Grant Acceptance) 4 of 5
approved by the state and align with grant guidelines.
The UASI grant program is 100% federally funded from the Department of Homeland Security and managed through the State of California's Office of Emergency Services.
The City of Santa Monica has received over $20 million in homeland security grant funding since 2003. These funds have been used to purchase necessary interoperable communication and infrastructure equipment, supplies, and training in direct support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.
Financial Impacts
Staff seeks authority to accept a grant totaling $1,869,845 from the U.S. Department of Homeland Security, Federal Emergency Management Agency for the 2021 UASI program to fund training and equipment in direct support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.
There are no ongoing costs related to the Fire Department’s grant funding. Future grant funding will be requested to fund any equipment replacement at the end of its useful life.
Staff plans to utilize future UASI funds to support the on-going operational costs for the cybersecurity solutions. If future grant funds are not allocated to the City to cover the costs of the subscription renewals, staff will discontinue its use of these tools.
FY 2021-22 Grant Budget Changes
Establish Revenue Budget Amount Appropriate Funds Amount 20140001.40428F $692,153 20140001.55518F $692,153
20190001.40428F $1,177,692 20190001.55518F $1,177,692
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Prepared By: Terese Toomey, Principal Administrative Analyst Approved Forwarded to Council
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Packet Pg. 519 Attachment: Staff Report May 10, 2022 - UASI 2021 (5741 : UASI 2021 and 2022 Grant Acceptance) City Council
Report
City Council Meeting: October 13, 2020
Agenda Item: 3.D
1 of 5
To: Mayor and City Council
From: Bill Walker, Fire Chief, Fire Department
Subject: Acceptance of 2019 Measure B Grant and increase to the Agreement with Advanced Problem Solving, LLC for the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG) Training Delivery Model Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to accept a grant awarded in the amount of $1,322,000 from Los Angeles County 2019 Measure B for bioterrorism training projects for the Fire Department on behalf of the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG); and to accept all grant renewals.
2. Authorize the City Manager to execute all necessary documents to accept the grant and all grant renewals.
3. Authorize the City Manager to negotiate and execute a first modification to Contractual Services Agreement #10967 with Advanced Problem Solving, LLC, (APS) a California-based company, in an amount not to exceed $1,020,000 on the same terms and conditions for a total amount not to exceed $4,020,000 over a five-year period, with future year funding contingent on Council budget approval and contingent upon the Fire Department securing the associated grant funding.
4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Summary
The Los Angeles Area Fire Chief’s Association (LAAFCA) is comprised of thirty-one fire chiefs throughout Los Angeles County. The Regional Training Group (RTG) is responsible for providing training through the Federal Homeland Security Grant Programs. The RTG recently applied for and was awarded $1,322,000 from a Measure B grant from Los Angeles County to develop the necessary Training Delivery Model
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(TDM) to support the Los Angeles region in responding to a bioterrorist emergency.
Measure B funds will expire June 30, 2021 unless extended by the County.
SMFD has accepted a request by LAAFCA to coordinate and host the grant funding for the RTG TDM including the development and delivery of the Haz Mat specialty courses.
Sponsorship of RTG TDM ensures that the City of Santa Monica remains a regional stakeholder and participant in upcoming training programming. The RTG will be responsible for direct administration of the grant with SMFD oversight.
Discussion
SMFD has received Federal Homeland Security Grant funds to facilitate the training delivery model to support the region’s core public safety missions as well as regional homeland security goals. The grant programs directly support the national priority of expanding regional collaboration, which defines what it means for the whole community to be prepared for all types of disasters and emergencies. In addition to the Homeland Security Grant funds, the additional Measure B grant funds will be used to develop and deliver mission-specific training courses to improve the all-hazards readiness of Los Angeles-area emergency response personnel in responding to a bioterrorist emergency.
The funding will be used to collaboratively develop and deliver a comprehensive bioterrorism training program targeted for first responders, public health officers, healthcare workers, and emergency managers to improve the all-hazards readiness in Los Angeles County. The funding also includes the development and delivery of mission-specific training courses to improve the specialty bioterrorism readiness and response of the county’s 14 regional fire agencies Hazardous Materials Teams. The grant funds will cover the costs of the Fire Department’s facilitation of the RTG TDM and to collaboratively develop and deliver a comprehensive bioterrorism training program.
In November 2019, Council approved an Agreement with Advanced Problem Solving (APS), LLC for video and curriculum development services for the Los Angeles Area Fire Chiefs Regional Training Group, Training Delivery Model after a competitive process. The not to exceed amount of the five-year agreement with APS was
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$3,000,000. The Fire Department will use $1,020,000 of the $1,322,000 new Measure B grant to fund the increased contract with APS for video and curriculum development services of the county-wide multi-disciplinary bioterrorism content. The remaining $302,000 will be used for the development of specialty first-responder hazardous materials curriculum for the Los Angeles Area Fire Chiefs Regional Training Group.
SMFD will return to Council to award these funds once a competitive process has been completed.
The LAAFCA RTG facilitates and provides training videos and curriculum development to fire departments within Los Angeles County. Centralized regional training effectiveness requires continuing education with new curriculum and with streamlined, compatible technology. Utilizing the RTG’s contract with APS, the team has developed and presented curriculum on the following: Mutual Threat Zone, Operational Risk Assessment, Rapid Intervention Crew, May Day Calls, Marine Firefighting, Coordinated Wildland Response, COVID-19 Response, Cyber Security, COVID-19 Safety Stand Down, Firefighter Safety Stand Down, Firefighter Safety Stand Down: Leadership and Behavioral Wellness, Firefighter Safety Stand Down: Maintaining Cohesion in Times of Stress, and Operational Risk Management. The RTG will now facilitate the new bioterrorism curriculum utilizing the Measure B funding. The RTG staff will be responsible for the direct delivery of the training. SMFD staffing will not be impacted by the delivery of the grant. SMFD will benefit for the training courses to improve the specialty bioterrorism readiness and response as one of the county’s fourteen regional fire agencies Hazardous Materials Teams.
Past Council Actions
Meeting Date Description
11/12/2019
(Attachment A)
Award of agreement with Advanced Problem Solving for
video and curriculum development services for the Los
Angeles Area Fire Chiefs Regional Training Group
Financial Impacts and Budget Actions
Staff seeks authority to accept a grant from Los Angeles County 2019 Measure B funds for an amount of up to $1,322,000. SMFD will manage the contract with APS on behalf
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of the RTG. The RTG is responsible for the development and delivery of the necessary training to support the Los Angeles region in responding to a bioterrorism emergency and appropriate funds.
Staff seeks authority to increase the amount of the contract #10967 with Advanced Problem Solving for video and curriculum development services for the Los Angeles Area Fire Chiefs Regional Training Group. The remaining $302,000 will be used to contract with a different vendor for the development of the fire-specific hazardous materials curriculum for the RTG. SMFD will return to Council to award these funds once a competitive process has been completed. Future year funding is contingent upon SMFD being awarded annual federal homeland security grant funds and on Council budget approval. If SMFD is not awarded additional grant funds, SMFD is not obligated to fulfil the LAAFCA RTG Training Delivery Model Contract.
FY 2020-21 Grant Budget Changes
Establish Revenue Budget Appropriate Funds
Account Number Amount Account Number Amount
20190001.405720 $1,322,000 20190001.556530 $1,322,000
Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified
Request
Amount Account Number Total Amount
10967
$1,950,000 - 20190001.555177 $1,950,000
$1,050,000 - 20190001.55518C $1,050,000
- $1,020,000 20190001.556530 $1,020,000
Total Revised Contract Amount $4,020,000
Prepared By: Terese Toomey, Principal Administrative Analyst Approved Forwarded to Council
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Attachments:
A. Attachment A Staff Report Advanced Problem Solving Item 3 B 11.19.19 B. APS Oaks expires 6-18-21
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Report
City Council Meeting: November 12, 2019
Agenda Item: 3.B
1 of 5
To: Mayor and City Council
From: Bill Walker, Fire Chief, Fire Department
Subject: Award Request for Proposal and enter into Agreement with Advanced Problem Solving, LLC for the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG) Training Delivery Model
Staff recommends that the City Council:
1. Award RFP# 210 to Advanced Problem Solving, LLC a California-based company for video and curriculum development services for the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG);
2. Authorize the City Manager to negotiate and execute an agreement with Advanced Problem Solving, LLC, in an amount not to exceed $1,800,000 for three years, with two-additional one-year renewal options in the amount of $1,200,000, on the same terms and conditions for a total amount not to exceed $3,000,000 over a five-year period, with future year funding contingent on Council budget approval and contingent upon the Fire Department securing the associated grant funding.
Summary
The Los Angeles Area Fire Chief’s Association (LAAFCA) is comprised of thirty-one (31) fire chiefs throughout Los Angeles County. The Regional Training Group (RTG) is responsible for providing training through the Federal Homeland Security Grant Programs. In 2018, the City of Santa Monica Fire Department (SMFD) was awarded $600,000 from the State Homeland Security Grant Program (SHSGP) and Urban Area Security Initiative (UASI) grants. The Fire Department was awarded funding to be used for facilitation of a Training Delivery Model (TDM) encompassing Chemical, Biological, Radiological, Nuclear and Explosives (CBRNE) Training, for Hazardous Materials Training (HazMat), and for Urban Search and Rescue Training (USAR). The grant funds will cover the costs of the Fire Department’s facilitation of the RTG TDM;
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continued facilitation in future years will be contingent on the receipt of additional grant funds.
The LAAFCA RTG facilitates and provides training videos and curriculum development to fire departments within Los Angeles County. Centralized regional training effectiveness requires continuing education with new curriculum and with streamlined, compatible technology. Local fire agencies are eligible to be awarded grant funding to achieve regional homeland security goals. SMFD has accepted a request by LAAFCA to coordinate and host the grant funding for the Regional Training Group Training Delivery Model (RTG TDM). Sponsorship of RTG TDM ensures that the City of Santa Monica remains a regional stakeholder and participant in upcoming training programming.
Discussion
The SHSGP and UASI programs focus on enhancing regional preparedness and capabilities in major metropolitan areas. SMFD received funds to facilitate the training delivery model to support the region’s core public safety missions as well as regional homeland security goals.
The grant programs directly support the national priority of expanding regional collaboration within the National Preparedness Goal, which defines what it means for the whole community to be prepared for all types of disasters and emergencies. The grants are intended to assist participating jurisdictions in developing integrated regional systems for prevention, protection, response, and recovery from natural or man-made disasters.
The SHSGP and UASI programs fund projects in 29 high-threat, high density areas selected by DHS. The UASI grant program was created to support large, "core" cities and those other cities with contiguous borders to the core city. The City of Los Angeles is the region's core city for the UASI grant and allocates funds to the City of Santa Monica. A regional working group and approval authority, made up of UASI stakeholders from throughout the Los Angeles-Long Beach Urban Area, are the
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governance bodies that determine which regional projects to submit to DHS for grant funding.
The Fire Department would use $600,000 in funds to host Regional Training Group’s Training Delivery Model to provide a regional training platform. The grant programs are 100% federally funded by DHS and managed through the State of California's Office of Emergency Services. The City of Santa Monica has received over $12 million in DHS funding since 2003. These funds have been used to purchase necessary interoperable communication and infrastructure equipment, supplies, and training in direct support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.
The regional training platform’s online training content for use on a Learning Management System (LMS) is in support of the RTG’s TDM project. Advanced Problem Solving, LLC (APS) will produce six (6) online 30–60-minute training lessons annually that provide training on topics that contain CBRNE, HazMat, and USAR related content. In addition, APS will provide a LMS platform for delivering the online training content to those LAAFCA agencies electing to use the LMS. The online training content will be provided via the Sharable Content Object Reference Model format to upload into existing systems for those LAAFCA agencies electing not to use APS LMS.
Furthermore, APS will provide professional project support which includes, but is not limited to, a video producer and video production team as well as an LMS administrator and LMS support team. Lastly, APS will fulfill other general requirements, as required.
Vendor Selection
Bidder Recommendation
Best Bidder Advanced Problem Solving, LLC
Evaluation Criteria Credentials/experience, competence/skill, capacity/ability to perform services promptly, sufficiency of financial/other resources, character/reputation, ability to provide future services as needed and price.
Municipal Code SMMC 2.24.180
RFPs Received
Advanced Problem
Solving, LLC
MySafeLA Focus EduVation Film Crafter
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Packet Pg. 527 Attachment: Staff Report November 12, 2019 - APS Award (5741 : UASI 2021 and 2022 Grant Acceptance) 4 of 5
Blue Ridge Fire Starter Picture Business Mudturtle
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/11/2019 City's Online
Bidding Site Santa Monica Daily Press 58 03/27/2019
Justification to Award
An evaluation panel of five interagency representatives reviewed and ranked all eight of the proposals using the criteria set out in the RFP. Based on this criteria and criteria in SMMC 2.24.180, staff recommends Advanced Problem Solving, LLC (APS) as the best bidder to provide fire department video and curriculum services. As an industry leader in technology-driven training courses developed in conjunction with subject matter experts, APS offers the ability to fulfill project tasks and to submit a product in a userfriendly format.
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Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Miscellaneous Grant Fund to award an agreement with Advanced Problem Solving, LLC.
Professional Services Agreement Request
FY 2019-20
Request Amount Account #
Future Year
Requests Total Amount
$390,000 20190001.555177 (2018 SHSGP) $1,560,000 $1,950,000 $210,000 20190001.55518C (2018 UASI) $840,000 $1,050,000 Total Contract Amount $3,000,000
Future year funding is contingent on Council budget approval. Future year expenditures are also contingent on SMFD being awarded either SHSGP or UASI annual grant funds in the amount of $600,000 annually between the 2018 and 2022 grant funding cycles. If SMFD is not awarded these regional grant funds, SMFD is not obligated to fulfil the LAAFCA RTG Training Delivery Model contract. Staff is not requesting a budget appropriation at this time and staff will return to Council to formally accept the grant once the official agreement is received.
Prepared By: Terese Toomey, Principal Administrative Analyst Approved Forwarded to Council
Attachments:
A. APS Oaks expires 6-5-20
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Packet Pg. 529 Attachment: Staff Report November 12, 2019 - APS Award (5741 : UASI 2021 and 2022 Grant Acceptance) Contract No. 10967 (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Contract”), entered into as of _________________(“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and Advanced Problem Solving LLC (“APS” or “Consultant”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the Constitution of the State of California and the Charter of the City.
B. APS is qualified to do business, and is doing business, in the State of California. APS represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Contract.
C. The City and APS desire to enter into an agreement for the APS to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term. This Agreement shall commence on the Execution Date and have an initial term of three (3) years. The City, at its option, may extend the term of this Agreement for two (2) additional one-year periods (“Option Years”) which, if exercised, shall run consecutively. The City shall give APS no less than thirty (30) days written notice of its intent to exercise its option to extend the term of this Agreement. This Agreement shall terminate upon the expiration of its term unless sooner terminated in accordance with Section 14. The term of this Agreement, including all Option Years, may not exceed five (5) years, and in no case shall last past June 30, 2024, upon which time the Agreement shall automatically terminate.
2. Consultant Services. APS will perform all of the services (“Services”) described in Exhibit A, Scope of Services. APS will complete the Services in accordance with Exhibit B, Budget. In addition to its obligation to perform all of the Services under this Agreement, APS shall comply with mandated Federal grant reporting guidelines that include:
2.1 Invoicing - The work performed by APS must be listed on the invoices submitted to the City and needs to specifically describe and directly correspond with the project work performed by APS. Invoicing shall provide as much itemized detail of the work performed as possible.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244 12/5/2019
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Packet Pg. 530 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) These include but are not limited to project start date(s), times, major milestones, work performed and project completion.
All invoicing documentation submitted to the City by APS shall conform to the following sample invoice:
Step name Associated documentation Invoicing
Kick-off
meeting
Minutes reflecting meeting date and participants,
identification of lead SME, identification of topic of
TDM, and projected final delivery (go-live) date.
Project outline
meeting
Minutes reflecting meeting date and participants plus
reference to draft project plan. Draft project plan
including name of lead SME, names of additional
(potential) SMEs, names of assigned APS personnel
(project manager, instructional designer, video producer, video director), topic of TDM and likely associated drill, and names of source materials identified by SMEs for
topic.
Project
development
meetings
Draft lesson outline, including the following elements:
draft drill plan, draft lesson summary, and draft media concepts. 25%
Validation
meeting
Minutes reflecting meeting date and participants plus
reference to proposed changes to draft lesson outline.
Post-validation
meeting
revisions
Revised (final, approved) lesson outline.
25%
Media preproduction Media outlines and/or scripts.
Media
production
List of media filming days including featured
crews/personnel for each filming day, or equivalent in
case of other media development.
Media postproduction
(editing)
Completed (final, approved) video files, animation files, or other media files as appropriate. 25%
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 531 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Online lesson
pre-production Storyboards, lesson printout or equivalent.
Online lesson
production SCORM files 25%
2.2 Meetings – all meetings shall include agendas with the reason for the meeting, meeting minutes with attendees, meeting dates and times.
2.3 Files - Provide digital and hard copies of all final projects that include project planning notes, Training Delivery Model (TDM) outlines, video scripts, lesson plans, drill videos and Shareable Content Object Reference Model (SCORM) files.
2.4 All documentation provided by APS shall tie directly to an invoice.
2.5 In the event that federal grant documentation guidelines change, APS agrees to comply with any required documentation request made by the City.
3. City Services. The City agrees to:
3.1 Make available to APS any existing documents, data, or information reasonably necessary for the performance of the Services.
3.2 Designate a representative authorized to act on behalf of City.
3.3 Promptly examine and render findings on all documents submitted for staff review by APS.
4. Compensation. The City will compensate APS for the Services performed in an amount not to exceed $1,800,000 for the term of this agreement in accordance with Budget attached as Exhibit B.
The total amount of compensation for Services Rendered during Original Term and all the Extension Terms, if any, shall not exceed $3,000,000 as set forth in Exhibit B.
5. Invoices. Invoices sent to the City under this Agreement shall conform to the requirements of Section 2.1 of this Agreement. In addition, APS will invoice the City for the Services in accordance with Exhibit B and the City will pay undisputed invoices within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Santa Monica Fire Department
City of Santa Monica
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 532 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) 333 Olympic Drive
Santa Monica, California 90401
Attention: Tom Clemo – Deputy Fire Chief
Re: Contract No. 10967 (CCS)
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. 10967 (CCS)
6.2 All notices, demands, requests or approvals to APS:
ADVANCED PROBLEM SOLVING LLC
Sepulveda Center
3415 South Sepulveda Blvd, Suite 1100
Los Angeles, CA 90034
Attn: Dave Andrews
310-881-2746
Re: Contract No. 10967 (CCS)
7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another. Neither the City nor its officers or employees will have any control over the conduct of APS or any of APS’s agents, employees, or subconsultants, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement. This Agreement may be modified only by written agreement signed by the City and APS and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, APS must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by APS or its agents, representatives, employees or subconsultants for the duration of this Agreement. APS must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 533 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance)
10.1 APS agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of APS or its employees, agents, officers, and subconsultants. APS’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of APS, its employees, agents or officers, or subconsultants; provided, however, that APS’s duty to defend, indemnify, protect and hold harmless the City shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding ADVANCED PROBLEM SOLVING LLC’s obligation to defend the City hereunder, the City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from APS, if City chooses to do so.
10.2 Enforcement Costs. APS agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 10.1.
11. Prohibition Against Transfers.
11.1 APS may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of APS or of any general partner or joint venturer or syndicate member of APS, if a partnership or joint venture or syndicate exists, which results in changing the control of APS, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
12. Permits and Licenses. APS, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
14. Default and Termination.
14.1 If APS fails to perform, or refuses to perform, any of its obligations under this Agreement, and if such default is not cured—nor any efforts commenced by APS to reasonably cure— within a period of five (5) days after the City’s written notice of default specifying the nature DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 534 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) of the default is sent to APS, the City may immediately terminate this Agreement upon written notice to APS.
14.2 Irrespective a default of this Agreement, the City has the option, at its sole discretion and without cause, of terminating this Agreement by giving APS ten days written notice. Upon termination of this Agreement, City will pay APS any compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. APS must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.
16. Discrimination. APS may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
17. Nuisance. APS may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
18. Records.
18.1 APS must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. APS must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
18.2 APS must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles. APS must clearly identify all records and make them readily accessible to the City. At the City’s request, APS must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
18.3 APS must allow the City to have free access to APS’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit APS’s records, and APS agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by APS, APS agrees to pay the cost of the City’s audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.
19. Work Product; Reports.
19.1 Any work product prepared or caused to be prepared by APS or any subconsultant for this Agreement will be the exclusive property of City. No work product given to or prepared by DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 535 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) APS or any subconsultant pursuant to this Agreement may be made available to any individual or organization by APS without prior written approval by City.
19.2 At the City’s request, APS must furnish reports concerning the status of the Services.
20. Standard of Care. APS agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of APS’s profession currently practicing in the same locality under similar conditions.
21. Subconsultants.
21.1 If APS proposes to have any subconsultant perform any part of the Services, APS must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subconsultant, and the total price or hourly rates used in preparing an estimated cost for the subconsultant’s services. The City, in its sole discretion, may grant or deny the request.
21.2 APS will be responsible for the quality of any subconsultant’s work. Every subcontract or agreement of any kind entered into between APS and any subconsultant (or between any subconsultant and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 10967 (CCS) entered into between the City of Santa Monica and APS on^^____________________.
22. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
23. Venue and Jurisdiction. The City and APS agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244 12/5/2019
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25. Exhibits. The following exhibits are incorporated by reference into this Contract as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
ABC Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244 City Attorney
11/26/2019
Lane Dilg
11/27/2019
Sr. Director, Business Development
Advanced Problem Solving LLC (APS).
David Andrews
Rick Cole
12/5/2019
City Manager
12/5/2019
Denise Anderson-Warren
City Clerk
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Packet Pg. 537 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Exhibit A
Scope of Services
Personnel
APS shall make available the following personnel to provide to the City the Services required under this Agreement:
Contractor Project Manager: David Andrews
Lead instructional designer: Jay Bostwick
Video producer: Jessica Ristic
Video director: Eric Jackson
Content developer: Kerrie Dunn
Project Work Plan
The Scope of Work for this Agreement has four sections:
1. Training Content
2. Content Delivery
3. Project Support
4. General Requirements
Requirements for Training Content
APS shall produce six (6) online training lessons annually of approximately 30-60 minutes each on topics with Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) related content, and shall do so using an industry standard Learning Management System (“LMS”). APS shall also develop and make available the following:
A high-quality, fast-paced introductory video showing 'what right looks like.' A high-quality, fast-paced sample drill video showing a company from the Los Angeles Area performing the drill described in the drill plan accompanying the lesson. A high-quality, fast-paced trailer video showing a condensed version of the 'what right looks like' video and the sample drill video.
Videos shall incorporate high-quality graphics and motion graphics as appropriate. Online lessons should be based on the “SCORM” (Sharable Content Object Reference Model) e-learning standard and should provide cognitive instruction on the subject matter.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 538 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Post-lesson tests should also be based on SCORM and should assess the learner's mastery of core concepts covered in the online lesson.
A drill plan outlining Terminal Learning Objectives (“TLO”) and Enabling Learning Objectives (“ELO”) for a hands-on drill associated with the cognitive lesson content covered in the online lesson."
In addition, the City may require either or both of the following in conjunction with each training delivery:
Job aids as directed by the Regional Training Group (“RTG”) for development by the Contractor.
Links to additional pre-existing resources as identified by the RTG.
Furthermore, the first delivery of training content is shall be posted online within 4-6 months of the Execution Date, with subsequent deliveries of training content to be completed and posted at two-month intervals thereafter.
Online lessons shall be designed by professional instructional designers and developed in Articulate's Storyline 360. Storyline 360 should be also be based on the SCORM standard. Any lesson developed with this software should include the functionality of being capable of upload to any modern Learning Management System. Online lessons should generally last between 30 and 60 minutes. Online lessons may include the following topics:
Active Shooter
After Action Reviews
Clandestine Labs
Coordinated Response to Wildland Firefighting
Interoperable Communications
Managing a Hazardous Materials Incident
MCI Communication
MCI Triage
Metro Rail Incident Response
The Risk Management Process
Standards of Command
Synthetic Opioids
Transitional Attack
Wind-Driven Brush Fires
Online lessons should also include the following components when possible:
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 539 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Scenario-based learning exercises, requiring users to apply general principles to real-world situations.
Speed bump questions (sometimes called "knowledge checks"), including detailed feedback depending on the user's response.
Illustrative extracts from the "what right looks like" video. These extracts illustrate key learning points and demonstrate appropriate actions.
Online lessons should use professional voiceover actors for audio content as well as high quality graphics and motion graphics for visual effects.
For each online lesson, APS shall provide the City with SCORM-based post-tests. The post-tests should incorporate the following features:
10 questions randomly selected from test banks of 15-20 questions each. Randomized sequence of responses to each of these questions.
APS shall integrate drill plans for into the lessons with ELOs and TLOs consistent with the guidelines provided by State Fire Training. APS shall also prepare drill plan guidance materials for organizing and conducting drills on assigned topics; and, when applicable, APS shall also provide job aids to accompany the lessons.
The format and substance of the training content requirements may be modified to reflect changing grant requirements and/or changing needs of the RTG. In such cases the Contractor will be required to provide an equivalent work effort to what is described in the Training Content and Content Delivery description of the original RFP
Content Delivery
APS the shall make the first delivery of training content to the City by posting it online within 4-6 months of the Execution Date. Subsequent deliveries of training content by APS shall be posted online every two months starting after the first delivery and until all training content required under this Agreement is completed by APS. APS shall make all reasonable efforts to ensure that the lessons created for the RTG will remain accessible to end users using the latest versions of popular internet web browsers.
APS shall provide an LMS for delivering training content to up to 10,000 end users (firefighters). APS shall also provide SCORM files containing the training content for those agencies electing not to use the LMS. The LMS developed by APS must have a user-friendly interface and should include the following features and functionality:
APS’ LMS be device agnostic and be accessible from PC or Mac, tablet or smartphone.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 540 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) APS' LMS should be able to include additional agency-specific content on each lesson topic to the LMS with content accessible only to those agencies' personnel. APS’ LMS must have the ability to restrict access for certain content based on the end users' level of authorized privileges (e.g., Administration). The LMS should allow for the agency to designate one or more agency representatives as administrators within the agency's portal. APS’ LMS should allow for individual agencies to monitor the performance (access dates, completion rates, post-test scores) of their personnel. Instructors should have the ability to create live calendared training events and manage attendance at those events. APS’ LMS should allow for performance reports to be available for review in real time as well as in the form of either weekly or monthly reports that can be generated and sent by email.
Agency supervisors should be able to mark lessons viewed by their personnel as complete or as partially complete.
APS' LMS should allow end users, upon completion of each course, to print a customized certificate with the name of the course, the end user's own name and agency affiliation, the date of course completion, and a transcript that lists the history of all course enrollments and completions.
APS’ LMS must allow for all lessons and lesson completion records to be accessible for one year from the date that the last lesson is launched on the LMS. APS’ LMS should provide each agency with its own customizable portal that is accessible only to that agency’s personnel and is able to have agency content uploaded to it.
Project Support
In support of the Services provided to the City under this Agreement, APS shall provide the following:
A lead instructional designer and instructional design team. These individuals will work with local Subject Matter Experts (SMEs) under the direction of the RTG Project Manager.
These local SMEs will be identified by the RTG from the 30 agencies in Los Angeles Area Fire Chiefs Association (“LAAFCA”) to assist the Lead Instructional Designer in the development of scripts for the videos and the online lesson as well as other associated materials.
A video producer and video production team. These individuals will produce videos based on video scripts developed by the instructional design team and approved by the RTG. The video producer will work with the RTG Project Manager, or with other personnel assigned by the RTG Project Manager, to coordinate with the LAAFCA agency fire crews that wilt be featured in the videos.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 541 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) A course developer and course development team. These individuals will produce online courses based on lesson scripts or storyboards developed by the instructional design team and incorporating media created by the video production team as well as other team members.
The lessons will be developed in SCORM-based format using Articulate, Captivate, or a similar high-end program for creating online lesson content. An LMS administrator and support team. These individuals will upload courses created under this contract to the Contractor's LMS and ensure that they remain accessible. They shall also provide SCORM-formatted versions of the courses and supporting materials for upload to existing LMS systems for those agencies electing not to use the Contractor's LMS. A project manager as the representative for APS (“APS Project Manager”). This individual will work in collaboration with the RTG Project Manager to ensure that timelines and quality standards are maintained to the RTG's satisfaction.
In addition, the APS Project Manager, lead instructional designer, video producer, course developer and LMS administrator should each be experienced in their respective fields of expertise, with appropriate professional credentials and experience performing identified above or other tasks that are substantially similar for a minimum of 3 years.
General Requirements
APS shall also adhere to, comply with, and fulfill the following requirements of the Services to be provided under this Agreement:
APS shall provide excellent customer service to the RTG as well as to the individual end users that use APS’ LMS.
At the request of the City, APS shall surrender and turn over to the City any and all content, curriculum, videos, training materials, or products related to, or produced by APS in conjunction with, the Services required under this Agreement. Said content and materials shall be the property of the LAAFCA.
If during the provision of the Services under this Agreement APS desires to hire additional and non-local SMEs to assist with the development of lesson content and associated materials, APS shall recruit and hire all non-local SMEs at APS’ own expense. The names and qualifications of all non-local SMEs must be submitted to the RTG Project Manager for review and approval prior to APS engaging the services of the non-local SME. The format and substance of the training content required by this Exhibit A – Scope of Services may be modified to reflect changing grant requirements and/or changing needs of the RTG. In such event APS shall provide an equivalent work product to what is described in this Scope of Services.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 542 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 543 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Exhibit B
Budget
COST PROPOSAL FOR RFP 210
A. Annual cost of providing an LMS for up to 10,000 end users: $72,000 This cost includes the following (per the Scope of Work):
Providing an LMS for delivering the training content to up to 10,000 end users (firefighters) from those LAAFCA agencies electing to use the Contractor’s LMS. Providing SCORM files containing the training content for those agencies electing not to use the Contractor’s LMS.
B. Cost per lesson as described in the Scope of Work: $88,000 C. Total annual fee: A + (B x 6) = $600,000
This per-lesson cost is for each of six (6) online training lessons annually of approximately 30-60 minutes each on topics with CBRNE-related content for delivery via an LMS.
This per-lesson cost will apply regardless of whether the format and/or substance of the training requirements remain as outlined in Exhibit A or are modified to reflect changing grant requirements and/or changing needs of the RTG, and provided that any such changes are limited to an equivalent work product as described in Exhibit A.
The City will compensate Advanced Problem Solving LLC for the Services performed in an amount not to exceed $1,800,000 for the term of this agreement in accordance with Budget attached as Exhibit B. The total amount of compensation for Services Rendered during Original Term and all the Extension Terms, if any, shall not exceed $3,000,000 as set forth in Exhibit B.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 544 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) Exhibit C
Insurance Requirements
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
If the Consultant maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to any broader coverage and higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of a combination of (1) CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and (2) CG 20 37).
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 545 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) b. Primary Coverage: For any claims related to this Agreement, the Consultant’s insurance shall be primary coverage at least as broad as Insurance Services Offices Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica. d. Waiver of Subrogation: Consultant hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Consultant may acquire against the City of Santa Monica by virtue of payment of any loss. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Consultant to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the selfinsured retention may be satisfied by either the named insured or City of Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M.
Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
Consultant shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Consultant, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 546 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) sole option, may terminate this Agreement and obtain damages from the Consultant resulting from said breach.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Consultant does not have employees. The Consultant must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
DocuSign Envelope ID: 467C42ED-FC89-4004-B146-B5A0F60F5244
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Packet Pg. 547 Attachment: CSA 10967 expires 12-05-22 [Revision 2] (5741 : UASI 2021 and 2022 Grant Acceptance) 1 FIRST MODIFICATION OF AGREEMENT NO. 10967 (CCS)
This First Modification of Agreement Number 10967 (CCS) (“First Modification”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica, a municipal corporation (“City”), and Advanced Problem Solving LLS (APS or Contractor) is made with reference to the following:
RECITALS
A. On or about December 5, 2019, the City and APS entered into Agreement Number 10967 (CCS) for Training Delivery Model on behalf of the Los Angeles Area Fire Chiefs Regional Training Group (LAAFCA RTG) (“Original Agreement”).
B. The City and APS desire to modify the Original Agreement to (include additional services to be performed by APS and to increase the contract price to pay for those additional services).
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Section 2 of the Original Agreement entitled “APS Services” shall be modified by adding the following paragraph:
Additional Services. APS will perform all of the additional services (“Additional Services”) described in Exhibit A-1, Scope of Services.
APS will complete the Additional Services in accordance with Exhibit B-1, Budget.
2. Section 4 of the Original Agreement entitled “Compensation” shall be modified by adding the following paragraph:
Compensation. The City will compensate APS for the Additional Services in an amount not to exceed $1,020,000 as set forth in Exhibit B1. The total contract price for services pursuant to the Original Agreement and this First Modification shall not exceed $4,020,000.
3. Exhibit A-1 and Exhibit B-1 are attached hereto incorporated herein by this reference.
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC 11/16/2020
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Packet Pg. 548 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) 2 4. Except as expressly modified by this First Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
APS Corporation
ENDOR
Advanced Problem Solving LLC (APS)
By: _______________________________
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC Interim City Attorney
11/12/2020 George Cardona
Sr. Director, Business Development
David M. Andrews 11/12/2020
Interim City Manager
Denise Anderson-Warren 11/23/2020 Lane Dilg 11/16/2020
City Clerk
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Packet Pg. 549 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) 3 Exhibit A-1
Scope of Services
The additional funding provided by Los Angeles County Measure B funds will be used to collaboratively develop and deliver a comprehensive bioterrorism training program targeted for first responders, public health officers, healthcare workers, and emergency managers to improve the all-hazards readiness in Los Angeles County.
Online Curriculum Development:
Full instructional design support (instructional design services, course development services, quality assurance testing, etc.) for development of a 4-hour online curriculum on bioterrorism, with subject matter experts to be provided by LAAFCA.
Curriculum to be organized into approximately 4 to 8 modules (number to be determined by LAAFCA RTG), with each module developed in Storyline 360 by Articulate.
Curriculum to include:
• Scenario-based learning exercises, requiring users to apply general principles to real-world situations. • One or more “what right looks like” videos demonstrating appropriate assessment and response procedures, with Illustrative extracts from these videos incorporated into lesson modules in order to demonstrate key learning points. • Other video content as appropriate, with total finished video content not to exceed 8 minutes per hour of online content (32 minutes total). • Speed bump questions (sometimes called “knowledge checks”), including detailed feedback depending on the user’s response.
• A post-test consisting of at least 10 questions randomly selected from a test bank of at least 15-20 questions, including randomized sequence of responses to each of these questions.
Video Production Services:
Full video production services for the following products:
• Up to eight (8) different customized versions of a 3-5 minute commercial quality video informing different target audiences about the training efforts being undertaken by personnel from multiple disciplines to provide a coordinated response in the event of bioterrorism attack or incident in the Los Angeles area. • The video will feature leaders from multiple disciplines and/or target audiences; background footage (b-roll) from the greater Los Angeles region, including significant drone footage; and selected stock footage of actual emergency responses as appropriate (after securing necessary copyright permissions).
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 550 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) 4 • Each version of the video will be short (approximately 3-5 minutes long) in order to maximize its impact. Accordingly, not all officials who have been filmed will appear in every version of the video.
• Due to the different versions of the video that will be created, we anticipate approximately 30 minutes of finished video product in total.
This SOW covers all pre-production, production and post-production costs, including the following:
• Project manager overseeing all aspects of this project, including coordination of the video component with the online training component. • Instructional designer/script writer who will work with SMEs provided by the LAARTG to develop the finished script for the product.
• Video producer, director, crew, editors.
• Additional support staff as necessary.
Online Training Platform:
Learning Management System (LMS) standard subscription fee includes all standard APS LMS features (user support, admin support, branded portals, automated enrollment and due date reminder messages, manager reporting capabilities, etc.).
LMS standard subscription for up to 35,000 subscribers.
Implementation will consist of input of first name, last name and email address for each user. No data migration (importation of user information or course histories from any prior Learning Management System) is included as part of this implementation.
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 551 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) 5 Exhibit B-1
Budget
The City will compensate Advanced Problem Solving LLC for the Services performed as noted in Exhibit A-1 in an amount not to exceed $1,020,000 for the term of this agreement.
A. Annual cost of providing an LMS for up to 35,000 end users: $370,000 This cost includes the following per the Scope of Work:
• Providing an LMS for delivering the training content to up to 35,000 end users from all County agencies electing to use the Contractor’s LMS. • Providing SCORM files containing the training content for those agencies electing not to use the Contractor’s LMS.
B. Cost per eight modules $81,250 as described in the Scope of Work for a total of $650,000
C. Total annual fee: A + B = $1,020,000
This per-lesson cost is for each of eight (8) online training lessons of approximately 30-60 minutes each on topics with bioterrorism related content for delivery via an LMS.
This per-lesson cost will apply regardless of whether the format and/or substance of the training requirements remain as outlined in Exhibit A-1 or are modified to reflect changing grant requirements and/or changing needs of the RTG, and provided that any such changes are limited to an equivalent work product as described in Exhibit A-1 DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 552 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) Bioterrorism Training Program Page 1
Agreement No.: ______________
MEMORANDUM OF AGREEMENT
FOR
BIOTERRORISM TRAINING PROGRAM
THIS MEMORANDUM OF AGREEMENT (hereafter "MOA") is made and entered into this _________ day of ________________, 2020,
By and between COUNTY OF LOS ANGELES
(hereafter "County"),
And CITY OF SANTA MONICA ON
BEHALF OF THE SANTA
MONICA FIRE DEPARTMENT
(hereafter "Provider").
Business Address:
333 Olympic Drive
Santa Monica, CA 90401
WHEREAS, pursuant to the authority granted under the Emergency Medical Services and Prehospital Emergency Medical Care Personnel Act (Health & Saf. Code, § 1797, et seq., hereinafter referred to as the "Act"), the County has established and maintains, through the County's Department of Health Services' (DHS) Emergency Medical Services Agency (EMS Agency), an advanced life support (ALS) system for Emergency Paramedic Transportation Services; and
WHEREAS, under the California Health and Safety (H&S) Code, Division 2.5, Chapter 4, Article 1, Section 1797.204 the local EMS Agency shall plan, implement, and evaluate an emergency medical services system, in accordance with the provisions of this part, consisting of an organized pattern of readiness and response services based on public and private agreements and operational procedures; and
WHEREAS, the Santa Monica Fire Department shall host the Los Angeles Area Regional Training Group on behalf of the Los Angeles Area Fire Chief's Association, to collaboratively develop and deliver a comprehensive bioterrorism training program targeted for first responders, public health officers, healthcare workers, and emergency managers to improve the all-hazards readiness in Los Angeles County; and DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 553 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) Bioterrorism Training Program Page 2
WHEREAS, Provider presented a proposal to County's Measure B Advisory Board to fund the development and delivery of mission-specific training courses to improve the all-hazards readiness of Los Angeles-area emergency response personnel using unallocated Measure B funds from Fiscal Year 2019-2020; and
WHEREAS, on February 11, 2020, County's Board of Supervisors approved Measure B funding for an amount of up to $1,322,000 to develop the necessary training to support the Los Angeles region in responding to a bioterrorist emergency.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1.0 SCOPE
1.1 Provider shall develop, and for which County shall reimburse Provider with Measure B funding, mission-specific training courses to improve the all-hazard readiness of Los Angeles-area emergency response personnel.
1.2 Courses shall be designed to teach enhanced skills, including a deeper understanding of bioterrorism incidents.
1.3 Additionally, bioterrorism training will include provision for Train-the-Trainer methods of instruction to allow participant personnel to further support their agencies by serving as instructors, which allows the building of capacity for continuous training of new personnel within the Los Angeles area.
1.4 Program delivery shall be conducted through video, classroom, and online sessions.
2.0 TERM
2.1 The term of this MOA is effective upon the date of execution by the Director of Health Services (Director), or designee. This MOA shall expire on June 30, 2021 unless sooner extended or terminated, in whole or in part, as provided herein.
2.2 In any event, this MOA may be terminated at any time by either party by giving at least thirty (30) calendar days advance written notice to the other party.
3.0 PAYMENT AND INVOICES
3.1 County's maximum reimbursement amount to Provider for the development and delivery of this training shall not exceed One Million, Three Hundred Twenty-Two Thousand Dollars ($1,322,000).
3.2 County shall not reimburse Provider for the delivery of this training to the extent that Provider receives funding from any other grant or third-party DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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source to offset the cost.
3.3 Provider shall submit copies of invoice(s) with proof of payment to the County that clearly reflects and provides details for the purchase. Invoice(s) and proof of vendor payment shall be forwarded to County via United States Postal Service, facsimile transmission [(562) 941-2397], or e-mail transmission ([email protected]) within thirty (30) days after payment to the vendor to the following address:
Department of Health Services
Emergency Medical Services Agency
10100 Pioneer Blvd., Suite 200
Santa Fe Springs, CA 90670
Attn: Kay Fruhwirth, County's Project Director
3.3.1 County Approval of Invoices
All invoices submitted by Provider for payment must have the written approval of the County's Project Director prior to any payment thereof.
In no event shall the County be liable or responsible for any payment prior to such written approval. Approval for payment will not be unreasonably withheld.
3.3.2 County shall reimburse Provider within ninety (90) days of receipt of complete and correct invoice(s), including Provider's purchase order(s) and proof of payment from Provider for allowable service costs.
4.0 COUNTY ADMINISTRATION
4.1 Director shall have the authority to administer this MOA on behalf of the County.
Director retains professional and administrative responsibility for the services rendered under this MOA.
4.2 County's Project Director shall be responsible for ensuring that the objectives of this MOA are met and providing direction to the Provider in the areas relating to County policy, information requirements, and procedural requirements.
County's Project Director is:
Kay Fruhwirth
Department of Health Services
Emergency Medical Services Agency
10100 Pioneer Blvd., Suite 200
Santa Fe Springs, CA 90670
Telephone: (562) 378-1596
E-mail: [email protected]
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 555 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) Bioterrorism Training Program Page 4
4.3 County shall notify Provider in writing of any change in the name of the County's Project Director.
5.0 PROVIDER ADMINISTRATION
5.1 Provider's Project Manager shall be responsible for Provider's day-to-day activities as related to this MOA and shall coordinate with County's Project Director on a regular basis. Provider's Project Manager is:
Tom Clemo
Santa Monica Fire Department
333 Olympic Drive
Santa Monica, CA 90401
Telephone: (310) 458-8652
E-mail: [email protected]
5.2 Provider shall notify County in writing of any change in the name or address of Provider's Project Manager.
6.0 AMENDMENTS
For any change that affects the term or any conditions included under this MOA, an Amendment shall be prepared by County and then executed by Provider and by Director, or designee.
7.0 FACSIMILE AND/OR PORTABLE DOCUMENT FORMAT REPRESENTATIONS County and Provider hereby agree to regard signed Amendments received via facsimile transmission and/or in Portable Document Format (PDF) via e-mail, as representations of original signatures of authorized officers of each party, when appearing in appropriate places on the Amendments prepared pursuant to Sub-paragraph 6.0, and as legally sufficient evidence that such original signatures have been affixed to Amendments to this Agreement, and as such, the parties need not exchange with each other the signed original Amendment(s).
8.0 GOVERNING LAW, JURISDICTION, AND VENUE
This MOA shall be governed by, and construed in accordance with, the laws of the State of California. Provider agrees and consents to the exclusive jurisdiction of the courts of the State of California for all purposes regarding this MOA and further agrees and consents that venue of any action brought hereunder shall be exclusively in the County of Los Angeles.
9.0 INDEPENDENT PROVIDER STATUS
9.1 This MOA is by and between County and Provider and is not intended, and shall not be construed, to create the relationship of agent, servant, employee, DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 556 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) Bioterrorism Training Program Page 5
partnership, joint venture, or association, as between County and Provider. The employees and agents of one party shall not be, or be construed to be, the employees or agents of the other party for any purpose whatsoever.
9.2 Provider shall be solely liable and responsible for providing to, or on behalf of, all persons performing work pursuant to this MOA all compensation and benefits. County shall have no liability or responsibility for the payment of any salaries, wages, unemployment benefits, disability benefits, Federal, State, or local taxes, or other compensation, benefits, or taxes for any personnel provided by or on behalf of Provider.
9.3 Provider understands and agrees that all persons performing work pursuant to this MOA are, for purposes of Workers' Compensation liability, solely employees of Provider and not employees of County. Provider shall be solely liable and responsible for furnishing any and all Workers' Compensation benefits to any person as a result of any injuries arising from or connected with any work performed by or on behalf of Provider pursuant to this MOA.
10.0 INDEMNIFICATION
Provider shall indemnify, defend and hold harmless the County, its Special Districts, elected and appointed officers, employees, agents and volunteers ("County Indemnitees") from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees), arising from or connected with Provider's intentional, willful, or negligent acts and/or omissions arising from and/or relating to this MOA, except as to the sole intentional, willful, or negligent acts and/or omissions of the County Indemnitees.
11.0 NOTICES
All notices or demands required or permitted to be given or made under this MOA shall be in writing and shall be hand delivered with signed receipt or mailed by first-class registered or certified mail, postage prepaid, addressed to the parties as identified in Sub-paragraphs 4.2 and 5.1, and copies to:
Julio C. Alvarado, Director
Contracts and Grants Division
313 North Figueroa Street, 6th Floor East
Los Angeles, California 90012
Addresses may be changed by either party giving ten (10) days' prior written notice thereof to the other party.
/
/
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC
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Packet Pg. 557 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) Bioterrorism Training Program Page 6
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this MOA to be executed by the County's Director of Health Services and Provider has caused this MOA to be executed in its behalf by its duly authorized officer, the day, month, and year first above written.
COUNTY OF LOS ANGELES CITY OF SANTA MONICA
By: _________________________ By: ________________________ Christina R. Ghaly, M.D. Lane Dilg
Director of Health Services Interim City Manager
APPROVED AS TO FORM:
MARY C. WICKHAM
County Counsel
By: __________________________ By: _________________________ Brian T. Chu George S. Cardona
Principal Deputy County Counsel Interim City Attorney
ATTEST TO:
By: _________________________
Denise Anderson-Warren
City Clerk
DocuSign Envelope ID: 686DD18D-FC76-44E9-939F-C1C1DCAEA9DC 11/12/2020
11/16/2020
11/23/2020
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Packet Pg. 558 Attachment: CSA First Modification with APS 10967 (5741 : UASI 2021 and 2022 Grant Acceptance) 1685 Main Street, Suite 209, Santa Monica,
CA 90401 • [email protected]
www.santamonica.gov • @cityofsantamonica • @santamonicacity Date: #CMDate
David M. Andrews
Advanced Problem Solving LLC
411 University Circle
Claremont, CA 91711
Re: Contract No. 10967 Renewal Option Contractual Services Dear Mr. Andrews:
Please accept this letter as the City’s notification of its intent to extend the term of the above-referenced Contractual Services Agreement (the “CSA”) for a period of one (1) year. As noted in Section 1 of the Terms and Conditions of the CSA dated December 5, 2019,the City may extend the term for up to two (2) additional one (1)- year terms. This renewal will extend the term of the CSA commencing on December 6, 2022, and terminating on December 5, 2023. All other terms and conditions of the CSA shall remain the same and in full force and effect.
If you have any questions, please contact Terese Toomey, Project Manager at (310) 434-2621 or [email protected].
Sincerely,
#CM
Enclosure
cc: Terese Toomey, Project Manager
Oscar Santiago, Budget Manager
[email protected] #
DocuSign Envelope ID: A646EA03-74A8-4992-A8CF-E06AD17F468B 11/29/2022
City Manager David White
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Packet Pg. 559 Attachment: CSA APS through 12.5.23 Renewal (5741 : UASI 2021 and 2022 Grant Acceptance) 1685 Main Street, Suite 209, Santa Monica,
CA 90401 • [email protected]
www.santamonica.gov • @cityofsantamonica • @santamonicacity VENDOR
ACKNOWLEDGEMENT OF CONSENT AND AGREEMENT
I, David M. Andrews, designated representative of Advanced Problem Solving LLC, a California based education technology firm, hereby consent and agree to the extension of the term of Contract No. 10967, commencing on December 6,2022 and terminating on December 5, 2023,as set forth in the renewal letter issued by the City of Santa Monica, dated __________.
DocuSign Envelope ID: A646EA03-74A8-4992-A8CF-E06AD17F468B 11/29/2022
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Packet Pg. 560 Attachment: CSA APS through 12.5.23 Renewal (5741 : UASI 2021 and 2022 Grant Acceptance) ' .... la 11.,ai•• II 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:
Advanced Problem Solving LLC
Name(s) of trustees, directors, partners, and officers:
David Andrews
Stephanie Andrews
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
David Andrews
Stephanie Andrews
Prepared by: _o_av_id_A_n_d _e_w_s r ________ Title: Pirncipal Signature: it3 �
Email: [email protected]
FOR CITY USE ONLY:
Bid/PO/Contract# ________ _
Date: \ \ / l'S /'2_o2?_ r I
Phone: 909-241-6403
Permit# ________ _
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Packet Pg. 561 Attachment: 07 APS Oaks (5741 : UASI 2021 and 2022 Grant Acceptance) City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.L
1 of 4
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Approval of First Modification to Agreement with Keystone Medical Resources, Inc for Citywide Employee COVID-19 Contact Tracing and Internal Healthcare Advisement
Recommended Action
Staff recommends that the City Council authorize the City Manager to:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Negotiate and execute a first modification to agreement #11303 in the amount of $195,000 with Keystone Medical Resources, Inc. (Keystone) for City-wide employee COVID-19 contract tracing and internal healthcare advisement. This will result in a two-year and nine-month amended agreement with a new total amount not to exceed $345,000, with future year funding contingent on Council budget approval.
Summary
Contact tracing, a public health practice that involves identifying, assessing, and managing people who have been exposed to a contagious disease, has been an effective tool in preventing further spread of COVID-19. As mandated by regulatory agencies, such as Cal/OSHA, the City must conduct contact tracing for its employees.
Since November 2021, Keystone has provided contact tracing services for the City, which include medical advisement from a registered nurse during and outside of normal business hours. The current agreement with Keystone expires on June 30, 2023.
Keystone has agreed to extend the agreement for two years at the current hourly rate with no year-to-year increases. The extension is necessary given that staff is
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anticipating that the contract tracing requirement will be in place at least through February 2025, a mandate that can be extended further.
Discussion
After the City’s Emergency Operations Center (EOC) was activated in March 2020, staff had to immediately implement COVID-19 contact tracing protocols. For expediency, contact tracing was initially done by a staff person in the EOC and a contracted nurse.
This model, however, proved insufficient for the volume of requests and around-theclock support that was required. The EOC, therefore, sought a contract service provider to perform contact tracing and related medical advisement services. Keystone was selected and contact tracing was transitioned to them in November 2021. Due to the extended emergency, staff secured City Council authority to modify the agreement in August 2022. At the time, FEMA was reimbursing 100% eligible costs incurred through June 30, 2022, and 90% for costs incurred on or after July 1, 2022.
On February 28, 2023, the City’s EOC concluded its COVID-19 emergency response operations in alignment with the sunsetting of the local proclamation. However, the mandate that California employers must conduct contact tracing for its employees is still in place. The updated Cal/OSHA COVID regulations extended the requirement until at least February 3, 2025. The oversight of the City’s contact tracing program has shifted from the EOC to the Risk Management Division. The complexity of the medical advice provided to the employees as part of the contract tracing activities still requires services from trained medical professionals during and outside of normal business hours. The cost of $95 per hour is the same rate originally negotiated in 2021. With the local emergency order no longer in effect, staff cannot seek a reimbursement from FEMA for the cost associated with this contract.
Past Council Actions
Meeting Date Description
August 23, 2022
(attachment A)
Authorize agreement with Keystone Medical Services, Inc. under an exception to the competitive bidding process pursuant to Section 2.24.250 (i).
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Environmental Review
The extension of an agreement for Citywide Employee COVID-19 Contact Tracing and Internal Healthcare Advisement is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Based on the evidence in the record, it can be seen with certainty that there is no possibility that the agreement may have a significant effect on the environment. The agreement would not result in any adverse physical environmental effects as it involves the administration of health-related services. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Self-Insurance, Workers’ Compensation Fund to increase the amount of the agreement with Keystone Medical Services, Inc. for City-wide employee COVID-19 contract tracing and internal healthcare advisement. Funding will be included in the FY 2023-25 Biennial Budget. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified Request
Amount Dept Account # Total Revised Contract Amount
11303 $150,000 $195,000 74800002.552010 $345,000
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Prepared By: Oles Gordeev, Risk Manager
Approved Forwarded to Council
Attachments:
A. 8.23.22 Staff Report
B. Keystone Oaks Form
C. Keystone Original Agreement
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City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.H
1 of 4
To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Authorize the City Manager to negotiate and execute an agreement with Keystone Medical Resources, Inc for Citywide Employee COVID-19 Contact Tracing and Internal Healthcare Advisement
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Keystone Medical Resources, Inc for city-wide, employee COVID-19 contact tracing and internal healthcare advisement. This recommended award is made as an exception to the competitive bidding process pursuant to Section
2.24.250 (i) and is for a total amount not to exceed $150,000 with future year funding contingent on Council budget approval.
Summary
Starting in November 2021 with the COVID-19 Omicron variant outbreak, the Santa Monica Emergency Operations Center, with the administrative direction from the Office of Emergency Management, transitioned COVID-19 contact tracing activities away from City personnel to an existing City vendor, Keystone Medical Resources, due to the specific skills and healthcare training necessary to determine “close contacts”, quarantine, and isolation protocols for City staff as related to COVID-19. The City has approximately 2,000 employees who have access to this emergency service.
Contact tracing was mandated for employees required to work on-site and potentially exposed to COVID-19. The City sought the services of Keystone Medical Resources, Inc to provide professional services related to COVID-19 contact tracing and medical advisement from a registered nurse after business hours, over the weekend, and throughout the work week, as required. Keystone Medical Resources, Inc was a vetted
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vendor through the City’s Risk Division and had previously shown to provide the needed medical support for services requested of the Finance Department.
Staff now seeks authority to enter a professional services contract with Keystone Medical Resources, Inc to provide these ongoing contact tracing services for an amount not to exceed $150,000 through the end of the COVID-19 emergency order. Staff will seek reimbursement from the Federal Emergency Management Administration (FEMA) for all qualifying costs associated with this service.
Discussion
In preparation for a winter 2021 COVID-19 surge, the City’s Emergency Operations Center sought professional services for the implementation of COVID-19 contact tracing and medical advisement services. Under the emergency response model utilized from March 2020 through November 2021, the City utilized as-needed and full-time staff to support contact tracing activities; however, the complexity of the medical care requested required services from trained medical professionals during and outside of normal business hours.
In anticipation of higher call volume and complex contact tracing cases, the City onboarded a temporary vendor to support three months of contact tracing. Under the initial agreement, the staff expected cost to remain under the approved procurement threshold of $25,000; due to the spread of the omicron variant, cases increased and did not return to manageable levels which could be supported by staff internally. In response to this surge, the City instituted enhanced contact tracing to ensure operational continuity of vital City services as well as enhance public trust that accessing such services will be safe.
Due to an expedited timeline, and in alignment with the emergency powers and provisions of the Santa Monica Municipal Code, staff were unable to seek formal proposals; however, staff did negotiate a reasonable cost with the selected vendor for an hourly rate of $95 per hour with a guaranteed minimum of 35 hours of service per month. Staff referenced existing agreements and fee schedules with the selected
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vendor to determine reasonable cost for the professional services. The Risk Management Division conducted an informal evaluation and found the quote provided by the vendor for nursing services was consistent with similar services provided to the City in the area of medical advisement and worker’s compensation. The City provides this emergency contact tracing service solely to City staff and will discontinue this service once the emergency order has been lifted or COVID-19 infections reduce to a level where professional medical services are no longer required.
The cost for these services from November 1, 2021, to date is approximately $55,000 and within the approval authority of the City Manager. Staff anticipates the $150,000 authority will provide contact tracing services through the end of FY 2022-23. The City remains eligible for reimbursement for qualifying expenses from the Federal Emergency Management Administration (FEMA) associated with the COVID-19 emergency. FEMA is currently reimbursing 100 percent of eligible costs through June 30, 2022, and 90 percent for cost incurred on or after July 1, 2022.
Staff will seek reimbursement from FEMA for all qualifying COVID expenditures for as long as permissible. All reimbursements received from the FEMA will be allocated to the City’s General Fund. Timelines associated with receiving reimbursement may be extended and will depend on requests for information and grant operations being conducted by FEMA. The Financial Operations Division with the support of the Office of Emergency Management will immediately track all cost allocated to this project. Upon completion of the project, Staff will submit a project (application) to FEMA with the full cost associated with this project.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with Keystone Medical Resources, Inc. for COVID-19 contact tracing and related services for City employees. Future year funding is contingent on Council budget approval. The City anticipates to recover ninety and one-hundred percent of the cost associated with this contract, as these services are eligible for reimbursement through FEMA under the COVID-19 Presidential Declaration.
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Contract Request
FY 2021-22 FY 2022-23 Department Account # Total Contract Amount $55,000 $95,000 01200014.553150 $150,000
Prepared By: Steven Torrence, Emergency Services Administrator Approved Forwarded to Council
Attachments:
A. 20202 Keystone Oaks Form
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Contract No. 11303 (CCS)
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica (“City”) and Keystone Medical Resources Inc, (“KEYSTONE”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. KEYSTONE is qualified to do business, and is doing business, in the State of California. KEYSTONE represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Agreement.
C. The City and KEYSTONE now desire to enter into an agreement for KEYSTONE to provide professional services to the City.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term. This Agreement begins on the Execution Date and terminates on June 30, 2023, unless sooner terminated in accordance with Section 14.
2. KEYSTONE Services. KEYSTONE will perform all of the services (“Services”) described in Exhibit A, Scope of Services. KEYSTONE will complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
3.1 Make available to KEYSTONE any currently existing documents, data or information required for the performance of the Services.
3.2 Designate a representative authorized to act on behalf of City.
3.3 Promptly examine and render findings on all documents submitted for staff review by KEYSTONE.
4. Compensation. The City will compensate KEYSTONE for the Services performed in an amount not to exceed One Hundred and Fifty Thousand Dollars ($150,000.00), as set forth in Exhibit B.
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04 10/6/2022
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5. Invoices. KEYSTONE will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
6.1 All notices, demands, requests or approvals to the City:
Office of Emergency Management
City of Santa Monica
333 Olympic Drive, 2nd Floor Attention OEM
Santa Monica, California 90401
Attention: Steven Torrence, Office of Emergency Management Re: Contract No. 11303
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: Douglas Sloan, City Attorney
Re: Contract No. 11303
6.2 All notices, demands, requests or approvals to KEYSTONE:
Keystone Medical Resources, Inc.
8941 Atlanta Ave #523
Huntington Beach, California 92646
Attention: Billing / Accounts Receivable
(866) 593-1923
Re: Contract No. 11303
7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another.
Neither the City nor its officers or employees will have any control over the conduct of KEYSTONE or any of KEYSTONE’s agents, employees, or subconsultants, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and KEYSTONE, and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, KEYSTONE must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by KEYSTONE or KEYSTONE’s agents, representatives, employees or subconsultants for the duration of this Agreement. KEYSTONE must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
10.1 Indemnification. As to KEYSTONE’s Services produced under this Agreement, KEYSTONE agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the acts, errors and/or omissions of KEYSTONE, or KEYSTONE’s employees, agents, officers, and subconsultants. KEYSTONE’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of KEYSTONE, its employees, agents or officers, or subconsultants; provided, however, that KEYSTONE’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding KEYSTONE’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from KEYSTONE, if City chooses to do so.
10.2 Enforcement Costs. KEYSTONE agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 10.1.
11. Prohibition Against Transfers.
11.1 KEYSTONE may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecatee or transferee DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 573 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) - 4 -
acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of KEYSTONE or of any general partner or joint venturer or syndicate member of KEYSTONE, if a partnership or joint venture or syndicate exists, which results in changing the control of KEYSTONE, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
12. Permits and Licenses. KEYSTONE, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
14. Default and Termination.
14.1 If KEYSTONE fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to KEYSTONE.
14.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to KEYSTONE. Upon termination of this Agreement, City will pay KEYSTONE any compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. KEYSTONE must comply with all laws of the State of California and the United States, and all ordinances, rules, and regulations enacted or issued by City.
16. Discrimination. KEYSTONE may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
17. Nuisance. KEYSTONE may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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18. Records.
18.1 KEYSTONE must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. KEYSTONE must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
18.2 KEYSTONE must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles. KEYSTONE must clearly identify all records and make them readily accessible to the City. At the City’s request, KEYSTONE must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
18.3 KEYSTONE must allow the City to have free access to KEYSTONE’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit KEYSTONE’s records, and KEYSTONE agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by KEYSTONE, KEYSTONE agrees to pay the cost of the City’s audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.
19. Work Product; Reports.
19.1 Any work product prepared or caused to be prepared by KEYSTONE or any subconsultant for this Agreement will be the exclusive property of City. No work product given to or prepared by KEYSTONE or any subconsultant pursuant to this Agreement may be made available to any individual or organization by KEYSTONE without prior written approval by City.
19.2 At the City’s request, KEYSTONE must furnish reports concerning the status of the Services.
20. Standard of Care. KEYSTONE agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of KEYSTONE’s profession currently practicing in the same locality under similar conditions.
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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21. Subconsultants.
21.1 If KEYSTONE proposes to have any subconsultant perform any part of the Services, KEYSTONE must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subconsultant, and the total price or hourly rates used in preparing an estimated cost for the subconsultant’s services. The City, in its sole discretion, may grant or deny the request.
21.2 KEYSTONE will be responsible for the quality of any subconsultant’s work.
Every subcontract or agreement of any kind entered into between KEYSTONE and any subconsultant (or between any subconsultant and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 11303 (CCS) entered into between the City of Santa Monica and KEYSTONE
on^^____________________.
22. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
23. Venue and Jurisdiction. The City and KEYSTONE agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
25. Execution in Counterparts. This Agreement may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification. Any signature to this Agreement transmitted electronically through DocuSign or PDF shall be deemed an DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04 10/6/2022
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original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
26. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON- WARREN
City Clerk
DENISE ANDERSON-WARREN
City
City Clerk
APPROVED AS TO FORM:
______________________________
Douglas Sloan
City Attorney
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
DAVID WHITE
City Manager
RICK COLE
City Manager
Vendor: KEYSTONE
Ellen Burkhart, President
KEYSTONE Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04 10/6/2022 10/6/2022
10/6/2022 10/10/2022
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Packet Pg. 577 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) Exhibit A
Scope of Services
The Office of Emergency Management has been delegated the task of implementing the City’s COVID—19 contact tracing operation which is mandated by regulatory agencies such as CalOSHA or the Los Angeles County Department of Public Health. Through this emergency procurement contract, the Office of Emergency Management on behalf of the City will coordinate with the vendor, KEYSTONE, to conduct routine contact tracing for City of Santa Monica staff members in accordance with recommended contacting tracing guidelines and/or local Health Officer Orders.
The scope of work described within this contract is limited to the personnel who are employees of the City of Santa Monica, and these services may not be utilized to conduct contact tracing members of the public. Services rendered by vendor may be extended to personnel who are close contact at the discretion of the Emergency Operations Center / Office of Emergency Management or where the City of Santa Monica is required to provide contact tracing.
The primary point of contact for this contract will be the Office of Emergency Management – Emergency Services and Preparedness Division who will be implementing the testing under the Emergency Operations Center organization. Whereas contact tracing of City employees will be overseen by multiple City departments, KEYSTONE will coordinate primarily with the Office of Emergency Management, as the primary management body of the Emergency Operations Center, who will subsequently coordinate with proper secondary stakeholders.
Upon execution of this contract KEYSTONE will support all professional services, coordinate nursing / clinical staff, implement reporting files, conduct notifications to City staff and supervisors, and support the infrastructure necessary to accept and document contact tracing calls.
KEYSTONE will add relevant data to a spreadsheet supplied by the City. The spreadsheet will be accessible by designated, HIPPA trained City personnel which will document the persons contacted, date of call, test results or case summary, and the reporting tool shall match invoices submitted to the City. The reporting tool shall allow for the exporting and download of all data required for the City to manage a compliance program and maintain call logs beyond the incident timeframe.
KEYSTONE will notify all persons tested via the contact information provided during patient intake. KEYSTONE shall make notification to the employee within 24-72 hours of a voicemail. Exceptions to this reporting period are approved if, DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 578 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) (1) Contact information is inaccurate for the persons contacted, (2) Inconclusive or incomplete contact tracing or,
(3) Delays deemed acceptable by the Office of Emergency Management.
The City and KEYSTONE will coordinate for scheduling of COVID-19 contact tracing hours and days. The City shall give KEYSTONE 24-hours’ notice for the implementation of new contact tracing timeframes. This window may be reduced if both parties agree to implement testing during a shortened timeframe. Testing schedules shall be agreed to in advance by KEYSTONE and the City, and be maintained unless the City A wind down period of no less than 7 days must be provided by one or both parties to terminate contact tracing operations.
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 579 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) Exhibit B
Budget
The total compensation paid by the City to KEYSTONE under this Agreement shall not exceed One Hundred and Fifty Thousand Dollars ($150,000.00). The City shall compensate KEYSTONE for the professional services and reporting provided under this Agreement, notwithstanding modifications to the specific times and dates allotted for testing which are hereby agreed to by all parties. The terms of this budget do not require the City to expend all cost appropriated within this professional services agreement to KEYSTONE; yet the budget details provide a cap on the expenses which the City may expend with KEYSTONE for COVID-19 contact tracing services.
The City will compensate KEYSTONE upon receipt and approval of itemized invoices, which shall be sent to the City at least once per month. Invoices shall detail the number of calls conducted each day and include a breakdown of clinical staff hours required to support the monthly operation. The City will send payment in accordance with purchasing and procurement guidelines approved by the Department of Finance.
KEYSTONE’s compensation will be commensurate with the $95 per hour fee schedule provided by KEYSTONE specifically for the City of Santa Monica. Changes to the fee schedule shall be sent to the Office of Emergency Management in writing prior to modifications. Modifications to the number of hours performed by the medical staff must be approved by the Office of Emergency Management or designated Risk personnel prior to increasing or decreasing hours.
Further documentation of the proposed budget is herein described on the attached Proposal for Contact Tracing from Keystone Medical Resources, Inc.
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 580 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 581 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) Exhibit C
Insurance Requirements and Verifications
Professional Liability Insurance Required
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
4. Professional Liability: Insurance appropriate to the Consultant’s profession with limits of no less than $1,000,000 per occurrence or claim/$2,000,000 in the annual aggregate.
If the Consultant maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to any broader coverage and higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 582 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of a combination of (1) CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and (2) CG 20 37).
b. Primary Coverage: For any claims related to this Agreement, the Consultant’s insurance shall be primary coverage at least as broad as Insurance Services Offices Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: Consultant hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Consultant may acquire against the City of Santa Monica by virtue of payment of any loss. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Consultant to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Santa Monica.
Acceptability of Insurers
DocuSign Envelope ID: FBFCD5C4-F538-44AD-9C56-A3EE4AE34B04
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Packet Pg. 583 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Claims Made Policies
1. If the Professional Liability policy provides “claims made” coverage:
a. The Retroactive Date must be shown and must be before the date of this Agreement or the start of work.
b. The insurance must be maintained, and evidence of insurance must be provided for at least 5 years after completion of work.
c. If the policy is cancelled or not renewed, and not replaced with another “claims made” policy form with a Retroactive Date prior to the effective Agreement date, the Consultant must purchase “extended reporting” coverage for a minimum of 5 years after completion of work.
Verification of Coverage
Consultant shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them.
The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Consultant, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Consultant resulting from said breach.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Consultant does not have employees. The Consultant must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
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Packet Pg. 584 Attachment: Keystone Original Agreement (5743 : COVID-19 Contact Tracing Agreement) 1 April 11, 2023
(NOT APPROVED)
CITY OF SANTA MONICA
CITY COUNCIL MINUTES
APRIL 11, 2023
A regular meeting of the Santa Monica City Council was called to order by Mayor Davis at 5:34 p.m., on Tuesday, April 11, 2023, at City Council Chambers, 1685 Main Street, Santa Monica, CA.
Roll Call: Present: Mayor Gleam Davis
Mayor Pro Tem Lana Negrete
Councilmember Phil Brock
Councilmember Oscar de la Torre
Councilmember Caroline Torosis (arrived at 5:53 p.m.)
Councilmember Jesse Zwick (arrived at 5:35 p.m.)
Absent: Councilmember Christine Parra
Also Present: City Manager David White
City Attorney Douglas Sloan
Acting City Clerk Maria Dacanay
CONVENE/PLEDGE On order of the Mayor, the City Council convened at 5:34 p.m., with all members present except Councilmember Parra. Anuj Gupta led the assemblage in the Pledge of Allegiance.
GENERAL PUBLIC
INPUT:
Members of the public Joe Fuchs, Jerry Berry, Neil Gitnick, Patricia McPherson, Eleanor Pearson, Sophia Lowe, Kathy Knight, Johnathan Foster, Zoë Muntaner, Hannah Winger, Howard Bryan Chapmick and Jerry Rubin commented on various local issues.
PUBLIC INPUT FOR
CLOSED SESSION,
SPECIAL AGENDA
ITEMS AND CONSENT
CALENDAR ONLY:
Members of the public Hajar Muqtasid, Robbie Jones, Ann Hoover (time donated by Jaleh Mirhashemi), Tara Barauskas, and Ericka Lesley commented on items 3.J. and 3.K.
Member of the public Corey Robinson commented on item 3.K.
Member of the public Denise Barton commented on item 5.C.
CLOSED SESSIONS On order of the Mayor, the City Council recessed at 6:30 p.m., to consider closed sessions and returned at 8:36 p.m., with all members present except Councilmember Parra, to report the following:
3.A. Conference with Legal Counsel – Existing Litigation –
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Councilmember de la Torre
recused himself at 6:55 p.m.
and returned at 7:02 p.m.
Government Code Section 54956.9(d)(1): Leon Gurvin v. City of Santa Monica; LASC Case No. 21STCV41297
The City Attorney advised this matter was heard with no reportable action taken.
3.B. Conference with Legal Counsel – Existing Litigation – Government Code Section 54956.9(d)(1): Zachary Thomas Hoevet v.
City of Santa Monica; LASC Case No. 21STCV30547
The City Attorney advised this matter was heard with no reportable action taken.
3.C. Conference with Legal Counsel – Existing Litigation – Government Code Section 54956.9(d)(1): Pirouz Mousheshirazi v. City of Santa Monica; LASC Case No. 20STCV34094
The City Attorney advised this matter was heard with no reportable action taken.
3.D. Conference with Legal Counsel – Existing Litigation – Government Code Section 54956.9(d)(1): Jerrid Powell v. City of Santa Monica, et al.; LASC Case No. 20STCV15438
The City Attorney advised this matter was heard with no reportable action taken.
3.E. Conference with Legal Counsel – Existing Litigation – Government Code Section 54956.9(d)(1): Mavis Soloway v. City of Santa Monica, et al.; LASC Case No. 20STCV47478
The City Attorney advised this matter was heard with no reportable action taken.
3.F. Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Gov. Code Section 54956.9(d)(1): John VMA Doe, et al. v. City of Santa Monica, et al., Case No. 22STCV30598; John TAU Doe, et al. v. Santa Monica PAL, et al., Case No. 22STCV19401; John Doe 1-4 v. Does 1-50, Case No. 21STCV34537; John Doe 5 and John Doe 6 v. Does 1-50, Case No. 22STCV08765; John JH Doe v. Police Activities League, et al., Case No. 21STCV24491; John Doe (D.C.) v. Santa Monica Police Activities League, et al., Case No. 21STCV47551; John Doe (MU) v. Santa Monica PAL, et al., Case No. 22STCV17022; John Doe #1, John Doe #2 and John Doe #3 v. Santa Monica PAL, et al., Case No. 22STCV03113; John Doe 142 v. Doe 1, Doe 2, and Doe 3, Case No. 22STCV01268; Jose
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Villaseñor v. City of Santa Monica, et al., Case No. 22STCV17835 The City Attorney advised this matter was heard with no reportable action taken.
3.G. Conference with Legal Counsel – Existing Litigation – Litigation has been initiated formally pursuant to Gov. Code Section 54956.9(d)(1): City of Santa Monica v. Insurance Company of the State of Pennsylvania, et al., Orange County Superior Court, Case No. 30- 2022-01261243
The City Attorney advised this matter was heard with no reportable action taken.
3.H. Conference with Real Estate Negotiator pursuant to Government Code Section 54956.8: Properties: 1636 5th Street, Santa Monica California (Parking Lot 29) (APNs 4290-011-903, 4290-011- 904, 4290-011-905), 1636 5th Street, Santa Monica, California (Apple Building) (APN 4290-011-906), Expo Terminus Line Parking Lot, Santa Monica, California (APNs 4290-011-909, 4290-011-902, & 4290- 011-901); City Negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Senior Development Analyst; Owner of Record: City of Santa Monica; Persons to be negotiated with: Frank B.
Chang, Vice President of Acquisitions, AMCAL Multi-Housing, Inc.; Under negotiation: Price and Terms of Payment for Sale
The City Attorney advised this matter was heard with no reportable action taken.
3.I. Conference with Real Estate Negotiator pursuant to Government Code Section 54956.8: Properties: 1636 5th Street, Santa Monica California (Parking Lot 29) (APNs 4290-011-903, 4290-011- 904, 4290-011-905), 1636 5th Street, Santa Monica, California (Apple Building) (APN 4290-011-906), Expo Terminus Line Parking Lot, Santa Monica, California (APNs 4290-011-909, 4290-011-902, & 4290- 011-901); City Negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Senior Development Analyst; Owner of Record: City of Santa Monica; Persons to be negotiated with: Aaron Sorochinsky, AVP, Investments, Cypress Equity; Under negotiation:
Price and Terms of Payment for Sale
The City Attorney advised this matter was heard with no reportable action taken.
3.J. Conference with Real Estate Negotiator pursuant to Government Code Section 54956.8: Property: 1855 Main Street, Santa
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Monica, California (Civic Auditorium) (APN 4290-013-901); City Negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang; Owner of Record: City of Santa Monica; Persons to be negotiated with: Cary Upton, Chief Operations Officer, Santa Monica Malibu Unified School District; Under negotiation: Price and Terms of Payment for Sale
The City Attorney advised this matter was heard with no reportable action taken.
3.K. Conference with Real Estate Negotiator pursuant to Government Code Section 54956.8: Property: 1855 Main Street, Santa Monica, California (Civic Auditorium) (APN 4290-013-901); City Negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Senior Development Analyst; Owner of Record: City of Santa Monica; Persons to be negotiated with: Jesus Hernandez, Director of Housing Development, Community Corporation of Santa Monica; Under negotiation: Price and Terms of Payment for Sale The City Attorney advised this matter was heard with no reportable action taken.
AGENDA
MANAGEMENT
Motion by Mayor Davis, seconded by Councilmember Brock, to continue items 8.A. and 16.A to the May 9, 2023 meeting. The motion was unanimously approved by voice vote, with Councilmember Parra absent.
SPECIAL AGENDA
ITEMS:
4.A. City Manager Report: Santa Monica Travel and Tourism and the Experience Management Plan, was presented. The City Manager provided local updates, and Misty Kerns and Trevor Cartwright presented on behalf of the Santa Monica Travel and Tourism.
REPORT ON COUNCIL
TRAVEL
Councilmembers de la Torre and Brock, Mayor Pro Tem Negrete and Mayor Davis reported that they traveled to Washington D.C. for the National League of Cities Annual Conference.
Also, Mayor Davis reported that she met with City and County officials about homelessness, and Councilmember Brock attended a Southern California Association of Governments (SCAG) Energy and Environment Committee meeting but City funds were not used to attend these meetings.
CONSENT CALENDAR: All items were considered and approved in one motion unless removed by a Councilmember for discussion. Staff noted that the incorrect Salary Schedule (Attachment B) was posted for item 5.J and the correct version was submitted as part of the public record.
At the request of Councilmember de la Torre, Item 5.C was removed from
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the Consent Calendar.
Motion by Mayor Pro Tem Negrete, seconded by Councilmember Zwick, to approve the Consent Calendar, with the amendment to Attachment B for Item 5.J. and, except for Item 5.C, reading resolutions by title only and waiving further reading thereof. The motion was approved by the following roll call vote:
AYES: Councilmembers Zwick, Brock, Torosis, de la Torre, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
CLOVERFIELD
BOULEVARD PROJECT
5.A. Award Construction Contract No. 11375 (CCS) for Cloverfield Boulevard Recycled Water Main Installation Project, was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Statutory Exemption pursuant to Section 21080.21 of the California Environmental Quality Act (CEQA);
2. Award Bid #SP2667 to Blois Construction Inc., for the construction of Cloverfield Boulevard Recycled Water Main Installation Project for the Public Works Department;
3. Authorize the City Manager to negotiate and execute an agreement with Blois Construction Inc, in an amount not to exceed $2,063,022 (including a $269,090 contingency); and
4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority;
5. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
STREET LIGHT
SUPPLIES
5.B. Award Purchase Order to One Source Distributors for Street Light Electrical Supplies, was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #SP2685-1 to One Source Distributors, a Delaware Corporation, for the purchase and delivery of streetlight electrical supplies for the Public Works Department; and
3. Authorize the Procurement Manager to issue a purchase order with One Source Distributors for Streetlight Electrical Supplies in the amount not to exceed $500,000 (for one year, with four additional
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one-year renewal options to extend at increases between 6% to 20%) for a total amount not to exceed $2,500,000, with future year funding contingent on Council budget approval.
SANTA MONICA BASIN
GROUNDWATER
SUSTAINABILITY
AGENCY
5.D. Adoption of Resolution No. 11516 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AUTHORIZING THE CITY MANAGER TO APPOINT THE
CITY’S ALTERNATE REPRESENTATIVE TO SERVE ON THE
BOARD OF DIRECTORS FOR THE SANTA MONICA BASIN
GROUNDWATER SUSTAINABILITY AGENCY”, was approved and
adopted.
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to appoint a second Alternate Representative, acting in the capacity of Board Member, to serve on the Board for the Santa Monica Basin Groundwater Sustainability Agency;
2. Adopt the Resolution authorizing the City Manager to appoint a second Alternate Representative to represent the City on the Board for the Santa Monica Basin Groundwater Sustainability Agency; and
3. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
BUSES 5.E. Award Bid to Uniserve Facilities Service Corporation for Detail Cleaning of Transit Buses, was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #4440 to Uniserve Facilities Service Corporation for detail cleaning of Santa Monica Department of Transportation’s fleet of transit buses; and
3. Authorize the City Manager to negotiate and execute Agreement No. 11376 (CCS) with Uniserve, in an amount not to exceed $695,076, including a $63,189 contingency, and a 3% cost escalator, over a five-year period with future year funding contingent on Council budget approval.
CONFLICT OF
INTEREST CODE
5.F. Adoption of Amended Conflict of Interest Code to Revise the Designated Positions as Required by California Law To File Statements of Economic Interest, was approved.
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Recommended Action
Staff recommends that the City Council update the City’s Conflict of Interest Code by adopting the proposed corrected Exhibit 1 reflecting positions subject to reporting requirements.
HOUSING AUTHORITY 5.G. Adoption of Santa Monica Housing Authority Draft Fiscal Year 2023-24 Annual and Administrative Plans, was moved to Item 12.A.
COUNCIL RULES OF
ORDER
5.H. Adoption of Resolution No. 11517 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AMENDING THE RULES OF ORDER AND PROCEDURE
FOR THE CONDUCT OF CITY COUNCIL MEETINGS AND
REPEALING RESOLUTION NUMBER 11494 (CCS)”, was approved and adopted.
MEDIATION AND
INVESTIGATION
SERVICES
5.I. Award Request for Proposal and enter into Agreement Nos. 11377 (CCS) and 11378 (CCS) with Norman A. Traub & Associates and HRemedy, Inc. for Mediation and Investigation Services, was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Award RFP #298B to Norman A. Traub & Associates, a California based company, for investigation services needs of the Human Resources Department.
3. Award RFP #298B to HRemedy, Inc., a California based company, for mediation services needs of the Human Resources Department.
4. Authorize the City Manager to negotiate and execute a professional services agreement with HRemedy, Inc. for a two-year pilot program in an amount not to exceed $75,000 for two years; and
5. Authorize the City Manager to negotiate and execute a professional services agreement with Norman A. Traub & Associates for a twoyear pilot program in an amount not to exceed $150,000 for two years.
LABOR RELATIONS 5.J. Adoption of Resolution No. 11518 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ACCEPTING THE TENTATIVE AGREEMENT AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A
MEMORANDUM OF UNDERSTANDING WITH THE FIRE
EXECUTIVE MANAGEMENT ASSOCIATION” and Authorizing the
City Manager to Execute a Memoranda of Understanding No. 11379
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(CCS) with the City and the Fire Executive Management Association, was approved and adopted.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines;
2. Adopt the proposed Resolution (Attachment A) accepting the Tentative Agreement (TA) and authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the Fire Executive Management Association;
3. Adopt the salary schedule (Attachment B); and
4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
MINUTES 5.K. Minutes of City Council - Special Meeting - March 21, 2023, were approved.
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
5.C. Presentation of the Annual Comprehensive Financial Report (ACFR) to the Audit Subcommittee, was presented.
Recommended Action
Staff recommends that the City Council:
1. Receive and file the City’s Annual Comprehensive Financial Report (ACFR), the Auditors’ Letter to Council, and the Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards for the City’s financial statements for the fiscal year ended June 30, 2022; and
2. Consider a request by the Audit Subcommittee to instruct staff to increase the amount of disclosure related to Notes Receivables to include the gross amount of loans and amount of allowances, as well as a summary of the accounting principles driving the loan allowances, for inclusion in the ACFR for the fiscal year ending June 30, 2023.
3. Adopt a finding of no significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines
Questions asked and answered of staff included: additional information requested by the Subcommittee about loans issued by City such as a list of borrowers, loan amounts, and repayment obligations that need Councilapproval and whether approving this Council item would grant that approval; and whether staff can readily provide this information or is there any burden
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or barrier to provide it.
Motion by Councilmember de la Torre, seconded by Mayor Pro Tem Negrete to approve item 5.C. to direct staff to fulfill the request of the Subcommittee for additional information on loans issued by City. The motion was approved by the following roll call vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Zwick, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
PUBLIC INPUT ON
REMAINING AGENDA
ITEMS:
Members of the public Denise Barton, Andria McFerson, and Harvey Eder spoke on item 11.A.
Members of the public Denise Barton, Hajar Muqtasid, Theresa Marasco, Michael Louis, Andria McFerson, Courtney Laretano (time donated by Stephanie Speights), Sheila Finley, and Emily Weston spoke on item 11.C.
Members of the public Rafael De La Rosa, Donnie Longino, Dan Hall, Jose Barrera, Nick Rayment, and Ellis Raskin spoke on item 16.B.
Members of the public Ericka Lesley and Ellis Raskin spoke on item 16.C.
Members of the public Vicente Martin and Paula Cortez spoke on item 16.E.
CONTINUED ITEMS:
HUMAN SERVICES
COMMISSION
8.A. Appointment to one open seat on the Human Services Commission for the term ending June 30, 2025, was continued to the May 9, 2023 meeting.
ORDINANCES:
ZONING
10.A. Second Reading and Adoption of Ordinance No. 2741 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AMEND THE TEXT OF THE CITY’S ZONING
ORDINANCE TO ESTABLISH AN OUTDOOR SPACE PROGRAM
ALLOWING COMMERCIAL ACTIVITY ON PRIVATELY-OWNED
PROPERTY AND OTHER AMENDMENTS RELATED TO
EMERGENCY RESPONSE AND ECONOMIC RECOVERY,
INCLUDING, BUT NOT LIMITED TO, EXTENSION OF CERTAIN
PERMIT TIMEFRAMES”, was presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Motion by Councilmember Brock, seconded by Mayor Pro Tem Negrete, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following roll call vote:
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AYES: Councilmembers de la Torre, Torosis, Brock, Zwick, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
ZONING 10.B. Second Reading and Adoption of Ordinance No. 2742 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AMEND THE TEXT OF THE CITY’S ZONING
ORDINANCE FOR CONSISTENCY WITH THE GOALS, POLICIES
AND PROGRAMS OF THE 6TH CYCLE (2021-2029) HOUSING
ELEMENT; FOR CONSISTENCY WITH UPDATES TO STATE LAW
RELATED TO HOUSING PRODUCTION AND MINIMUM PARKING
REQUIREMENTS; AND TO MAKE MINOR CHANGES,
CLARIFICATIONS AND CORRECTIONS, INCLUDING
CORRECTION TO PARCEL COVERAGE LIMITATIONS FOR
EXISTING STRUCTURES IN THE R1 (SINGLE-UNIT RESIDENTIAL)
DISTRICT AND MODIFICATIONS TO STANDARDS FOR
ACCESSORY STRUCTURES”, was presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Motion by Councilmember Zwick, seconded by Councilmember Torosis, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following roll call vote:
AYES: Councilmembers Zwick, Brock, Torosis, de la Torre, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
OFFICIAL DISTRICTING
MAP
10.C. Second Reading and Adoption of Ordinance No. 2743 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING THE OFFICIAL DISTRICTING MAP
FOR CONSISTENT DESIGNATION OF IDENTIFIED PARCELS”, was
presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Motion by Councilmember Brock, seconded by Mayor Pro Tem Negrete, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following roll call vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Zwick,
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Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
SPECIAL JOINT
MEETING OF THE CITY
COUNCIL, HOUSING
AUTHORITY AND
PARKING AUTHORITY
On order of the Mayor, the regular City Council meeting was recessed to convene to a joint meeting with the Housing Authority and the Parking Authority at 10:03 p.m., with all members present, except Councilmember Parra. Housing Authority Board Elizabeth Cochran also joined the Housing Authority on the dais.
REPORT ON MEETING
COMPENSATION
Pursuant to State law, Acting City Clerk Maria Dacanay announced that Council will receive $50 compensation for meeting as the Housing Authority and $50 for meeting as the Parking Authority.
ADDITIONAL SPEAKING
TIME FOR COMMISSION
CHAIR
Motion by Councilmember Brock, seconded by Councilmember de la Torre, to give the Housing Commission Chair 10 minutes to speak on item
11.C. and five minutes on 12.A. The motion was unanimously approved by voice vote by all members, with Councilmember Parra absent.
STAFF
ADMINISTRATIVE
ITEMS:
BUDGET
11.A. Fiscal Year 2022-23 Midyear Budget, was presented.
Recommended Action
Staff recommends that the City Council, Housing Authority and Parking Authority:
1. Appropriate FY 2022-23 midyear revenue and expenditure budget adjustments (Attachment A).
Staff also recommends that the City Council:
1. Adopt Resolution No. 11519 (CCS) entitled “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: BACKGROUND INVESTIGATION
OFFICER, FLEET MAINTENANCE SUPERINTENDENT, FLEET
MAINTENANCE SUPERVISOR, GIS TECHNICIAN,
HAZARDOUS MATERIALS SPECIALIST, INFORMATION
SECURITY ANALYST, INVESTIGATIVE SPECIALIST, LEAD
TRANSIT MECHANIC, MECHANIC I, MECHANIC II, MOTOR
COACH
OPERATOR TRAINEE, SENIOR MECHANIC, SWIM
INSTRUCTOR/POOL LIFEGUARD, TRANSIT MECHANIC I,
TRANSIT MECHANIC II, TRANSIT MECHANIC SUPERVISOR,
TRANSIT VEHICLE MAINTENANCE SUPERINTENDENT,
WASTEWATER COLLECTION WORKER III, WASTEWATER
TREATMENT PLANT OPERATOR-IN-TRAINING,
WASTEWATER TREATMENT PLANT OPERATOR I, AND
WASTEWATER TREATMENT PLANT OPERATOR II”;
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2. Approve the position and classification changes (Attachment C);
3. Adopt attached Resolution No. 11520 (CCS) entitled “A
RESOLUTION OF THE CITY OF SANTA MONICA
APPROVING THE APPLICATION OF GRANT FUNDS FOR
THE SANTA MONICA CITY YARDS MODERNIZATION,
MICROGRID PROJECT”;
4. Adopt attached Resolution No. 11521 (CCS) entitled “A
RESOLUTION OF THE CITY OF SANTA MONICA
AUTHORIZING EXECUTION OF ADMINISTERING AGENCYSTATE MASTER AGREEMENTS FOR STATE AND FEDERALAID FUNDED PROJECTS”;
5. Authorize the City Manager to accept a grant award in the amount of $51,173 from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG) for implementation of the JAG 2022 Project “Overtime Operations to Keep Neighborhoods Safe” and execute all necessary documents to accept the grant and all grant renewals;
6. Authorize the City Manager to accept a grant award in the amount of $34,497 from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant to support the replacement of bulletproof vests and execute all necessary documents to accept the grant and all grant renewals;
7. Authorize staff to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves; and,
8. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Questions asked and answered of staff included but was not limited to:
staffing and program plans for the Childcare Recreation Enrichment Sports Together (CREST) program; budget and funding for the Direct Action Response Team (DART) program; copper wire thefts from streetlights, costs for replacement and police response; status and occurrence of the tenant counseling services pilot-program; City and State funding for the Lincoln Neighborhood Corridor Streetscape LiNC Project; maintenance of the Summer Lunch Program at Virginia Avenue Park (VAP); and staffing and a reopening date for the Police Activities League (PAL) Fitness Center.
Motion by Authority/Councilmember Torosis, seconded by
Authority/Councilmember Brock, to adopt the staff recommendation for the City Council, Housing Authority and Parking Authority. The motion was approved by the following roll call vote:
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AYES: Authority member Cochran, Authority/Councilmembers Zwick, Brock, Torosis, de la Torre, Vice-Chair/Mayor Pro Tem Negrete, Chair/Mayor Davis
NOES: None
ABSENT: Authority/Councilmember Parra
Motion by Councilmember Torosis, seconded by Councilmember Brock, to adopt the eight staff recommendations for the City Council. The motion was approved by the following roll call vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Zwick, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
MINUTES 11.B. Approval of minutes for Housing Authority and Parking Authority meetings, were presented.
Recommended Action
Staff recommends that the Parking Authority and Housing Authority approve the minutes for the following:
1. February 8, 2022 Parking Authority meeting; and
2. April 12, 2022 and September 13, 2022 Housing Authority meetings.
Motion by Authority/Councilmember Torosis, seconded by
Authority/Councilmember Zwick, to approve the minutes. The motion was approved by the following roll call vote:
AYES: Authority member Cochran, Authority/Councilmembers Zwick, Brock, de la Torre, Torosis, Vice-Chair/Mayor Pro Tem Negrete, Chair/Mayor Davis
NOES: None
ABSENT: Authority/Councilmember Parra
ADJOURNMENT OF
SPECIAL PARKING
AUTHORITY MEETING
On order of the Chair/Mayor, the special joint meeting with the Parking Authority was adjourned at 10:52 p.m., and the special joint meeting of the City Council and Housing Authority continued with all members present except Authority/Councilmember Parra.
CLIENT ADVISORY
BOARD
11.C. Introduction and First Reading of an Ordinance Forming a Client Advisory Board, was presented.
Recommended Action
Staff recommends that the Housing Authority Board:
1. Review and provide direction on the proposed approach for the
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creation of the Client Advisory Board (CAB) to replace the current Resident Advisory Board (RAB).
2. Extend the term of the Section 8 Resident Advisory Board (RAB) member on the Housing Authority Board until two CAB members are appointed (at least one a Section 8 voucher holder) by the Housing Authority.
Staff recommends that the City Council:
1. Introduce for First Reading an Ordinance, adding Chapter 2.70 to create the CAB.
After staff’s presentation, Housing Commission Chair Michelle Gray spoke on behalf of the Commission with their recommendations on the creating of the Client Advisory Board (CAB). The Commission also submitted their recommendations in writing and submitted it through their Staff Liaison to be included as part of the public record.
Questions asked and answered of staff included but are not limited to: if the Housing Authority Board (HAB) can make an appointment to the vacant seat at this meeting or if there are other options to fill the vacancy; when staff received the Housing Commission’s written recommendations; whether or not the Commission recommendations align with staff’s recommendations and Federal requirements; which recommendations must the HAB act on at this meeting; clarification on why the Resident Advisory Board (RAB) and Housing Commission were created and their primary responsibilities; if staff anticipates difficulty with the Commission’s recommendations to create a diverse Board with applicants/members who meet certain criteria such as Housing Choice Voucher or Continuum of Care holders, etc.; and the possibility for CAB members to elect two of the members to the HAB vs. the HAB appointing the members.
Questions asked and answered of the Housing Commission Chair included extending member Cochran’s terms, continuing the item, directing staff to meet with the Commission and reporting back with revised recommendations.
Motion by Chair Davis, seconded by Authority member Brock, to continue the item to allow staff and the Housing Commission to review the Commission’s recommendations and return to Council identifying the items where they are in agreement and highlighting the areas where they are in disagreement so that the HAB can resolve them. At the future meeting, staff may also return with an ordinance for first reading. The motion was approved by the following roll call vote:
AYES: Authority members de la Torre, Torosis, Brock, Zwick, Authority Board member Cochran, Vice-Chair Negrete,
Chair Davis
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NOES: None
ABSENT: Authority member Parra
Motion by Chair Davis, seconded by Authority member Brock, to approve the second recommendation for the Housing Authority Board to extend the term of the Section 8 Resident Advisory Board (RAB) member on the Housing Authority Board until two CAB members are appointed (at least one a Section 8 voucher holder) by the Housing Authority. The motion was approved by the following roll call vote:
AYES: Authority member Cochran, Authority members Zwick, Brock, Torosis, de la Torre, Vice-Chair Negrete, Chair Davis
NOES: None
ABSENT: Authority member Parra
MEETING
MANAGEMENT
Motion by Councilmember Brock, seconded by Mayor Pro Tem Negrete, to continue the meeting after 11:00 p.m. and hear the remainder of the agenda.
The motion was unanimously approved by voice vote by all members, with Councilmember Parra absent.
PUBLIC HEARINGS:
HOUSING AUTHORITY
12.A. Adoption of Santa Monica Housing Authority Draft Fiscal Year 2023-24 Annual and Administrative Plans, was presented.
Recommended Action
Staff recommends that following the close of the public hearing the Housing Authority Board:
1. Adopt the FY 2023-24 Santa Monica Housing Authority Annual Plan, provided as Attachment A;
2. Adopt the FY 2023-24 Santa Monica Housing Authority
Administrative Plan, provided as Attachment B;
3. Adopt the New Family Self-Sufficiency Action Plan (Formerly Chapter 18 of the Administrative Plan) as Attachment C; and
4. Authorize the Submission of the FY 2023-24 Annual and Administrative Plans to the United States Department of Housing and Urban Development.
5. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
After staff’s presentation, Housing Commission Chair Michelle Gray spoke on behalf of the Commission with their recommendations on the approval of Santa Monica Housing Authority (SMHA) Plans. The Commission also submitted their recommendations in writing and submitted it through their Staff Liaison to be included as part of the public record.
Members of the public Theresa Marasco, Andria McFerson, Harvey Eder,
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and Denise Barton spoke to the recommended action.
Councilmember Torosis expressed concerns over the City’s eviction prevention efforts and interest in follow-up information on oversight and performance metrics.
Motion by Authority member Torosis, seconded by Chair Davis, to adopt all five staff recommendations. The motion was approved by the following roll call vote:
AYES: Authority member Cochran, Authority members Zwick, Brock, Torosis, Vice-Chair Negrete, Chair Davis
NOES: None
ABSTAIN: Authority member de la Torre
ABSENT: Authority member Parra
ADJOURNMENT OF
SPECIAL JOINT
MEETING
On order of the Chair/Mayor, the special joint meeting was adjourned at 12:36 a.m., and the regular meeting of the City Council was reconvened with all members present except Authority/Councilmember Parra. Authority Board member Cochran left the dais.
COUNCILMEMBER
DISCUSSION ITEMS:
COMMISSION ON
SUSTAINABILITY,
ENVIRONMENTAL
JUSTICE AND THE
ENVIRONMENT
16.A. Appointment to one unscheduled vacancy on the Commission on Sustainability, Environmental Justice and the Environment for the term ending on June 30, 2024, was continued to the May 9, 2023 meeting.
MINIMUM WAGE 16.B. Request of Mayor Davis and Councilmembers Zwick and Brock that the City Council direct the City Manager and City Attorney to study and draft an ordinance that would guarantee healthcare workers a minimum wage in Santa Monica, was presented.
Considerable discussion ensued on topics including, but not limited to: if there will be tiered wages proposed for workers with different skill sets; hardship exemptions for smaller facilities; and impacts on other facilities such as convalescent homes, non-public hospitals and non-profit clinics.
Motion by Mayor Pro Tem Negrete, seconded by Councilmember Brock, to approve the request. The motion was unanimously approved by voice vote, with Councilmember Parra absent.
PICO BRANCH LIBRARY
AND VIRGINIA AVENUE
PARK
16.C. Request of Mayor Davis, Councilmember Torosis, and Councilmember Zwick that, pursuant to the City’s naming policy, the City Council direct the Recreation and Parks Commission and the
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Library Board to consider renaming the Pico Branch Library in honor of longtime resident and activist Lloyd Allen. Council requests that the advisory bodies consider this matter and report back to the Council within 60 days, was presented.
Motion by Councilmember Torosis, seconded by Councilmember Brock, to approve the request.
Councilmember de la Torre proposed a friendly amendment to direct the Recreation and Parks Commission and Library Board to consider either renaming the Pico Branch Library or Virginia Avenue Park in honor of Lloyd Allen and report back in 60 days. The amendment was friendly to the maker and seconder. The motion was unanimously approved by voice vote, with Councilmember Parra absent.
HOME OWNERSHIP 16.D. Request of Councilmembers Torosis and Parra and Mayor Pro Tem Negrete that Council direct the City Manager and City Attorney evaluate and develop recommendations for Council action to regulate fractional ownership of single-family homes and residential condominiums. These recommendations should also include a review of best practices from similarly situated jurisdictions, was presented.
Motion by Mayor Pro Tem Negrete, seconded by Councilmember Torosis, to approve the request. The motion was unanimously approved by voice vote, with Councilmember Parra absent.
SANTA MONICA HIGH
SCHOOL AND
ASSOCIATION OF
MEXICAN AMERICAN
EDUCATORS
16.E. Request of Councilwoman Parra, Councilman Brock and Councilman de la Torre that the City Council allocate $4,000 in discretionary funds to Santa Monica High School to support their Latina/o graduation, was presented.
Councilmember de la Torre made a correction that payment should be made to the non-profit organization “The Association of Mexican American Educators” instead of Santa Monica High School.
Motion by Councilmember de la Torre, seconded by Councilmember Brock, to adopt the recommendation with the correct organization. The motion was approved by the following roll call vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Zwick, Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmember Parra
ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 1:00 a.m.
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ATTEST: APPROVED:
Maria Dacanay Gleam Davis
Acting City Clerk Mayor
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Report
City Council Meeting: May 23, 2023
Agenda Item: 7.A
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department Subject: Five-Year Financial Forecast Update, FY 2023-25 Proposed Biennial Budget, and FY 2023-24 Proposed Capital Improvement Program Budget Recommended Action
Staff recommends that the City Council:
1. Receive the FY 2023-24 through FY 2027-28 May Five-Year Financial Forecast Update;
2. Review and provide direction to staff on the FY 2023-25 Proposed Biennial Budget, including the FY 2023-24 Proposed Exception-Based Capital Improvement Program (CIP) Budget;
3. Review and provide direction to staff on proposed fee changes;
4. Review and comment on the Cultural/Art Organizational Support Program (OSP) funding recommendations for the FY2023-25 funding cycle; and
5. Direct staff to proceed with setting the FY 2023-25 Budget Adoption public hearing on June 27, 2023.
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Executive Summary
The City of Santa Monica’s Fiscal Year 2023-2025 Proposed Biennial Budget builds on the work done in recent years to help our community respond to and recover from the COVID-19 emergency as well as make strategic investments to advance priority areas Council identified at its workshop on March 11, 2023. These priorities are:
• Addressing Homelessness
• Clean and Safe Santa Monica
• Cultivate Economic Recovery and Expand Community and Cultural Offerings • Racial Justice, Equity, and Social Diversity
• Sustainable and Connected Community
This report provides a brief, high level summary to accompany the City of Santa Monica’s FY 2023-25 Proposed Biennial Budget and Capital Improvement Program Budget for FY 2023-24 (Attachment A).
The Citywide Proposed Biennial Budget is $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25, net of reimbursements and transfers. The Budget provides a plan, built upon community-driven priorities, to continue to rebuild, restore and reenergize our community. Looking forward, the City will continue to face and manage challenges, ranging from the economic uncertainty and disruption coming from geopolitical unrest, consumer behavior changes, and trailing impacts of the pandemic.
Despite these challenges, there has been closure on the unprecedented financial blows that the City has weathered over the past three years from the pandemic and the resolution of significant legal liabilities.
The FY 2023-25 Proposed Biennial Budget is posted on the City’s website at santamonica.gov. The document includes:
❖ The City Manager’s budget message, which provides an overview of the investments made to further Council-adopted priorities, using both new and reallocated funding sources, in both English and Spanish ❖ An overview of sources and uses of funds, including a description of employee
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compensation costs
❖ A section describing projected revenue performance in FY 2022-23, FY 2023-24 and FY 2024-25
❖ An overview of fund balances for the General Fund and all other funds ❖ Five-year overviews (spanning FY 2020-21 through FY 2024-25) of Citywide expenditures and revenues by fund and by department
❖ Descriptions of each Department and its mission, individual Division functions, and budget and position allocations by Division, Department, and Fund ❖ A listing of proposed enhancements that have been incorporated in the Budget ❖ The FY 2023-24 Capital Improvement Program (CIP) Budget Addendum, showing individual projects in each fund
❖ The City’s financial policies, which are adopted by the Council along with the budget
❖ A separate line item detail is posted online at https://finance.smgov.net/budgetsreports/annual# In preparing this two-year budget, City staff began with a baseline “maintenance of effort” budget that continues current services addressing Council priorities, basic services, and good governance. To this baseline budget, staff added enhancements that further address Council priorities and strengthen governance. Enhancements are funded using new revenue sources coming from voter approved measures, public and private partnerships, rate adjustments, reallocated funding, and successful grant applications. The Budget is balanced in FY 2023-24 and uses working capital funds, already set aside in the General Fund balance, in FY 2024-25 to maintain service levels while General Fund revenues continue to recover in the short term.
The Proposed Budget is prepared alongside five-year forecasts for all funds, the results of which are included in this report, to ensure the long-term fiscal viability of proposed programs and services. The staff report also includes a preview of proposed new or adjusted fees and the Cultural Affair’s Division’s Organizational Support Program (OSP)
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grant recipient recommendations for Council’s input. The items will be brought back to Council for adoption along with the Adopted Budget on June 27, 2023.
Background
Since the adoption of the FY 2020-21 Budget, which reflected dramatically restructured operations that focused City operations on the delivery of essential services during the COVID-19 pandemic and the ensuing swift and severe economic crisis, each successive budget has included a small amount of service restoration and investments to address critical needs in the areas of public safety, homelessness, and economic recovery. The FY 2022-23 Adopted Budget also addressed cost of living adjustments for staff after years of no pay increases or pay cuts for some employees. The increases have been funded using incremental revenue growth, federal stimulus funds, and onetime reallocations of funds. Increases to each year’s budget have been balanced with an equally important need to rebuild General Fund reserve levels that were drawn down to address the severe revenue shortfalls during the pandemic and to make large settlement payments.
On March 11, 2023, to prepare for the FY 2023-25 Proposed Biennial Budget, Council:
• Reviewed and commented on the FY 2023-24 through FY 2027-28 Five-Year Financial Forecast,
• Set the organizational priorities that will guide the development and implementation of the FY 2023-2025 Biennial Budget,
• Provided direction and preliminary approval for proposed FY 2023-25 budget items, including the allocation of Measure CS funds, the suspension of the unfunded pension liability paydown policy to allow the reallocation of $2.5 million in the General Fund to cover service restoration in key areas, and • Provided approval of the organizational realignment of the Community Service Department to align and focus the City’s work on Council priorities and implementation of newly adopted tax measures, including Measure GS.
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Discussion
General Fund Five-Year Financial Forecast Update
The May 2023 General Fund Five-Year Financial Forecast Update incorporates the FY 2023-25 Proposed Biennial Budget revenues and expenditures. The Five-Year Financial Forecast shows the balance of General Fund revenues less expenditures on an annual basis for the next five fiscal years. The Forecast assumptions and results are the same as those presented in the March 11, 2023 Council Workshop (Attachment B).
As shown, annual revenues would slightly exceed expenditures (in the range of $100,000-$200,000) for the next three years. This positive balance reflects the use of working capital reserves beginning in FY 2024-25. Future projected negative balances of $0.6 and $1.5 million, respectively, in FY 2026-27 and FY 2027-28 represent 0.1% and 0.3% of revenues for those two years. These negative balances are at a level that can be managed over the next three years.
Revenue Projections: Over the next five years, revenues are anticipated to increase by an average of 3.5% a year compared to the 30% increase that occurred over the two years since FY 2020-21. During the Biennial Budget period, revenues are anticipated to grow at a rate of 3.2% and 3.0%, respectively, reflecting a slowing in economic growth. It is anticipated that revenues will not fully recover until FY 2027-28. While the
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City has already seen a loss of nearly $170 million since 2020, revenues will lag behind normal growth by nearly $80 million over the next five years, for a total loss of approximately $250 million over 8 years, as shown in the chart below.
Expenditure Projections: The Forecast includes negotiated and projected cost of living increases, as well as projected pension rates informed by recent portfolio earnings trends, and projected healthcare rates. Also included is the programming of Measure CS funds, new digital kiosk revenues, and the reallocation of funds to new uses.1 Use of Working Capital Reserves: The General Fund will require the use of working capital reserves to fill budget deficits in years FY 2024-27. While the use of reserves to cover ongoing expenditures is not a sustainable financial practice, the circumstances 1 Not included in General Fund projected revenues or expenditures are Measure GS (2022) funds and Measure HMP (2022) funds. Measure GS funds will be received and programmed in the Housing Trust Fund, not the General Fund.
This funding source has not yet been programmed in the Housing Trust Fund as it is difficult to project because it is contingent on the sale of high value properties. Additionally, there is currently a reverse validation action that seeks to invalidate Measure GS. Because there is no pending request to stay the implementation of the tax, the tax will go into effect on March 1, 2023. The lawsuit may take several months to resolve; as a result, any tax collected and spent by the City would be considered a contingent liability until resolution of the lawsuit, including any appeals.
Measure HMP imposes an additional tax on cannabis retailers and other licensed cannabis businesses, further work is required to amend the amend the Municipal Code to allow for an increase of cannabis-related retail establishments and revenues are not anticipated during the upcoming biennial period.
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creating the deficits are in the short term only, including temporary hotel closures to complete renovations, and contractual labor obligations.
Contingency Reserves Gradually Restored: In FY 2023-24 the General Fund budget will be backed by a Rainy Day fund totaling 13% of ongoing expenditures. The Forecast assumes that the City will continue to rebuild its Rainy Day fund, reaching 15% of ongoing expenditures in FY 2026-27. Strong reserves protect our ability to provide essential services and retain jobs during emergencies and economic fluctuations. They are also a signal of a City’s financial health and critical to maintaining the City’s AAA bond rating.
Capital Improvement Program: Prior to the pandemic, the General Fund allocated $21 million a year to its Capital Improvement Program (CIP). This amount was reduced to $7.3 million in FY 2020-21. The Forecast shows funding restored to $21 million in FY 2024-25. Of the $15 million amount set aside for capital projects in FY 2023-24, over three-quarters of the program is budgeted for required ongoing maintenance, vehicle and technology replacement, safety-related repairs and debt service, leaving less than one-quarter of the funding available for community amenities and enhanced services.
The reduction of the CIP over the last four years has resulted in deferred infrastructure, technology and vehicle maintenance or replacement. In addition, over $362 million in projects remain unfunded. More information on General Fund funded and unfunded projects is included in the Capital Improvement Section later in this report and in the CIP Addendum included in the Proposed FY 2023-25 Biennial Budget.
Other Funds Financial Forecast Update
Among the larger funds contributing to the City’s operations, the Water, Wastewater, Big Blue Bus (BBB), Airport and Cemetery Funds have sufficient revenue to cover operational and capital needs during the biennial period. If new rates are approved by Council on June13, 2023, the Resource Recovery and Recycling (RRR) Fund will remain self-sufficient during the biennial period and enhanced services can be offered.
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The Pier and Beach Recreation Funds are projected to require subsidies and advances during the biennial budget period, totaling approximately $8.7 million. Continued revenue constraints, including the partial closure of the Pier Deck parking, and pending plans to adjust beach parking rates, are significantly contributing to the situation.
The Community Broadband (CBB) Fund, which supports CityNet operations, will be merged into the General Fund, allowing for greater efficiencies from a more flexible sharing of resources.
FY 2023-25 Proposed Biennial Budget
The Proposed Biennial Budget for the City of Santa Monica totals $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25, net of reimbursements and transfers. The Proposed Budgets for FY 2023-24 and FY 2024-25 represent year-over-year growth of
3.8% and 0.8%, respectively. The budget spans 30 funds and 15 departments. The General Fund, supported predominantly with tax revenues, provides the majority of municipal services, while enterprise funds such as Water, RRR, BBB and the Airport conduct their operations using rate- or fee-based revenues, and still “Other Funds” receive contributions from all funds to service items such as vehicle and technology needs or insurance needs, or conduct activities covered with grant or other nondiscretionary revenues. The moderated growth in the second year is primarily due to a decrease in programmed capital expenditures in the BBB Fund. Additional capital expenditures commencing in FY 2024-25 will be programmed as part of the FY 2024-26 Biennial Capital Improvement Program budget process.
The chart below shows the breakdown of the Citywide proposed budget for FY 2023-24, net of reimbursements and transfers, the first year of the biennial period. This budget includes both operating and capital expenditures.
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Citywide Budgeted Expenditures - by Fund Type - FY 2023-24 (in millions)
The amounts shown in the chart do not include payments for services between funds to avoid double-counting.
Among the large General Fund payments that do not appear in the $412.4 million amount, are contributions to Workers’ Compensation and Liability self-insurance funds, and transfers to the Fleet and Computer Equipment Replacement Fund.
The proposed General Fund budget (including reimbursements and transfers) is $436.9 million in FY 2023-24 and $458.6 million in FY 2024-25. The budgets represent yearover-year growth of 3.8% and 5.0%, respectively. The charts below show the sources and uses of the General Fund budget for the FY 2023-24 Proposed Budget. These charts, as well as charts showing the breakdown for FY 2024-25 are included in the Budget Overview section of the attached budget document.
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General Fund FY 2023-24 Proposed Budget
In the chart above, Internal Services includes the Offices of the City Manager, City Council and City Attorney, the Records & Election Services Department, and the Finance, Human Resources and Information Services
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Departments. The Office of the City Manager also includes the City’s 3-1-1 and Office of Emergency Management operations.
Changes Included in the FY 2023-25 Proposed Biennial Budget The FY 2023-25 Proposed Biennial Budget includes the most substantial restoration of ongoing services and introduction of enhanced services to date since the 2020 budget restructuring. This is due to a combination of a new voter-approved revenue source, continuing revenue growth, a reallocation of existing funds, new revenues from public and private partnerships, and staff’s ability to expand capacity for cost-covering programs.
As the City enters a period when revenue growth is slowing while factors that drive up expenditures continue to put pressure on available resources, it is imperative to be purposeful and strategic in how funds are spent. Budget enhancements for the most part address the community priorities adopted by Council on March 11, 2023:
- Addressing Homelessness
- Clean & Safe Santa Monica
- Cultivate Economic Recovery & Expand Community & Cultural Offerings - Racial Justice, Equity & Social Diversity
- Sustainable & Connected Community
The following table lists the operating budget enhancements included in the Proposed Biennial Budget. This detail also appears in the Appendix section of the Proposed Biennial Budget.
Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund City Manager Restoration of ongoing funding for the Neighborhood Grant program
- $ 49
General Fund City Manager Resources to support Community Partnerships Program, including the
We Are Santa Monica Fund, the
digital kiosks, LA28 Olympics, film
and event permits, and other publicprivate partnership opportunities
1.0 Permanent
$ 412
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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund Community Development Establishment of ongoing funding for security services program at the Pier
(Measure CS)
- $ 605
General Fund Community Development Restoration of key positions in planning and to enhance economic
recovery work
2.0 Permanent
$ 360
General Fund and
CDBG
Community Development Establishment of a Small Business Assistance and Tenant Improvement
Fund
- $ 150
General Fund Community Development Funding to enhance monitoring and enforcement of the City’s homesharing ordinance (Measure CS) - $ 130
General and All
Enterprise Funds
Finance Position to support payroll operations,
partially funded by enterprise funds
1.0 Permanent
$ 122
Risk Mgmt, Admin Finance Temporary employee hours to
support the Workers' Compensation
program, funded by reallocation of
funds
0.5 Temporary
$ -
General Fund, Misc.
Grants
Fire Dept Changes in the Fire Department to
strengthen Emergency Medical
Services (EMS) delivery. With the
completion of the CRU pilot program,
resources are reallocated to a new
EMS Battalion Chief/Homeless
Liaison, 3 new Captains serving in
the Emergency Incident Technician
role (offset by the deletion of 3
Firefighter positions), a part-time
Logistics position, a contracted case
manager for high users of 9-1-1, and
restoration of a longer Recruit
Academy program that increases the
ability to hire a more diverse
workforce. The enhancement is
partially funded by increased
inspection revenues. (ongoing and
one-time)
(1.0)
Permanent
/0.4
Temporary
$ 235
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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund,
Housing Authority and
Housing Trust
Housing and Human
Services
Recreation and Arts
Positions are added to support the
new Housing and Human Services
Department as the organizational
point for homelessness services and
programs and to manage a larger
voucher program in the Housing
Authority. Positions include the
restoration of a Housing Manager,
Housing Authority Administrator, Staff
Assistant III, and a 0.5 Housing
Inspector, and a new Sr Housing
Specialist and Housing Specialist.
Creation of Recreation and Arts
Department to enhance leadership
around recreational partnership
opportunities. Positions added
include a Director, Administrative
Services Officer and an Executive
Administrative Assistant.
Funding (prorated costs):
General Fund
Housing Authority Fund
Housing Trust Fund
5.5 Permanent
3.0 Permanent
$ 30
$ 452
$ 556
General Fund Housing and Human
Services
Ongoing funding for partial restoration
of the direct service programs of
CREST, PAL, and VAP
- $ 168
General, All
Enterprise Funds
Housing and Human
Services
ADA Coordinator position to oversee
compliance program, partially funded
by enterprise funds
1.0 Permanent
$ 161
General Fund Housing and Human
Services
Expansion of homeless
multidisciplinary outreach teams
(Measure CS)
- $ 460
General Fund Housing and Human
Services
One-time funding for preparation of a
Homelessness Strategic Plan (HSP)
(Measure CS)
- $ 400
General Fund Housing and Human
Services
Redesign of the SAMOSHEL interim
housing program to accommodate
24/7 intakes (Measure CS) (ongoing
and one-time)
- $ 800
General Fund Human Resources Funding for services to administer selection/examination processes to
establish eligibility lists for employee
recruitment
- $ 260
General Fund Human Resources Funding for classification and compensation studies
- $ 140
General Fund Information Services Ongoing funding to maintain previously one-time funded
technology related items
- $ 56
General Fund Information Services Conversion of limited term position to permanent
1.0 Permanent
$ 180
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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund Library & Public Works Restoration of additional service hours at the Main Library on
Saturdays, extending evening hours
at all open locations (M-TH) to 8 pm,
and opening the Main Library one
hour earlier (M-TH) at 10 am. This is
in addition to maintaining services
funded with one-time funds in the
prior budget cycle.
3.0 Permanent
/1.9
Temporary
$ 510
General Fund Non-Departmental Ongoing funding to support the School District’s Playground Club
program
- $ 500
General Fund Non-Departmental Funding for program to offer reduced RRR rates for qualifying low-income
households
- $ 150
General Fund Police Dept Funding to expand security services program at Downtown parking
structures (Measure CS)
- $ 280
General Fund Police Dept Realignment of administrative
positions in the Police Department
- $ (12)
General Fund Police Dept Increase Police Department staffing levels to expand Homeless Liaison
Program (HLP) and to augment
staffing in other areas of need such
as the Downtown Services Unit
(Measure CS)2
7.0 Permanent
$ 2,018
General Fund Public Works Ongoing funding for maintenance of the water features at Ken Genser and
Tongva Parks (Measure CS)
- $ 85
Water Fund Public Works Staffing changes to align positions with operational responsibilities in the
Water Division
- $ 12
General Fund Public Works Funding to increase tree pruning frequencies in high-traffic areas to
improve safety and aesthetics of our
public spaces (Measure CS)
- $ 120
General Fund and
Vehicle Mgmt.
Public Works Funding to establish specialized
public space maintenance team
focusing on waste and debris
generated by people experiencing
homelessness (Measure CS)
3.0 Permanent
$ 440
Wastewater Fund Public Works Staffing to help advance water conservation projects (Water
Resources Protection Specialist and
Sr Water Resources Protection
Specialist)
2.0 Permanent
$ 308
Resource Recovery &
Recycling
Public Works Staffing to enhance alley clearing,
illegal dumping and bulky item pickup
services, bike lane sweeping, comply
with State mandatory organics
recycling, and work towards Zero
Waste goal, funded by new rate
adjustments.
18.0 Permanent
/(2.9)
Temporary
$ 1,723
2 On a one-time basis until positions are filled, resources will support the Directed Action Response Team (DaRT) and be saved to invest in Police technology initiatives.
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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) Airport Fund Public Works Funding to repair and replace aging equipment at airport hangars
- $ 40
Cemetery Fund Public Works Staffing changes to align position with operational responsibilities
0.4 Temporary
$ -
BBB, Water,
Wastewater and
Airport
Public Works and
Transportation
Funding to continue the Trades Intern
Program (TIP), which focuses on
supporting and empowering
vulnerable Santa Monica youth and
adults
5.0 Permanent
$ 373
General Fund Records & Election
Services
Restoration of passport services,
almost entirely funded by new
revenues
1.0 Permanent
$ 103
General Fund Records & Election
Services
Upgrade of Enterprise Content
Management system (ongoing and
one-time funds)
- $ 85
General Fund Recreation and Arts Funding for continuation of the Art of Recovery program
- $ 250
General Fund Recreation and Arts Re-introduction of cost covering Swim Center conference room rental
0.1 Temporary
$ 6
General Fund Recreation and Arts Positions to increase public access to Community Recreation facilities
funded by reallocation of funds.
8.8 Temporary
$ -
Beach Fund Recreation and Arts Restoration of cost covering position to address demand for event rentals
at the Annenberg Community Beach
House
0.5 Permanent
$ 80
General Fund Recreation and Arts Restoration of cost covering access hours at Memorial Park Gym and
Fitness Room and field rentals
1.5 Temporary
$ 81
General Fund Recreation and Arts Creation of a new cost covering Pickleball Program, with dedicated
staff to provide overall program
oversight
1.0 Permanent
/0.6
Temporary
$ 137
General Fund Recreation and Arts Expand cost covering classes at new SaMoHi aquatic facility
0.1 Temporary
$ 5
General Fund
Airport
RES, Library, CMO, PW,
CDD
Funding to support hybrid public
meetings - public comment
- $ 63
Big Blue Bus Transportation Staffing changes to support the BBB’s recruitment and training
efforts, maintenance needs and
security services to restore bus
service to pre-pandemic levels
4.0 Permanent
$ 1,575
Total 58.0
Permanent
/ 11.5
Temporary
$ 14,659
Budgeted Positions
As shown in the detail of enhancements, 69.5 new full-time equivalent positions are proposed to be added to the budget, including 8.5 positions previously added as limited
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term positions that are proposed to be extended or converted to permanent positions.
The Proposed Budget includes a total of 2,097.1 FTE positions, 1,341.8 in the General Fund. When compared to the number of positions in the FY 2019-20 Adopted Budget, the City is still 200.8 positions below its prior levels.
Capital Improvement Program (CIP) Budget
On June 28, 2022, Council adopted the first year and approved the second year of the FY 2022-24 Biennial CIP Budget. The FY 2023-25 Proposed Biennial Budget includes a CIP Budget Addendum outlining proposed revisions to the FY 2023-24 CIP Budget and budget plan amounts for FY 2024-25 through FY 2026-27. The longer-range plan is included as a tool to demonstrate total anticipated capital funding needs. However, project needs will be re-evaluated during each biennial CIP budget cycle to ensure that budgets are adjusted to fall within available funding limits and to best reflect updated City priorities.
The revised FY 2023-24 CIP Budget totals $104.1 million. This represents an increase of $8 million from the originally approved FY 2023-24 CIP Budget. The proposed changes are limited to priority needs that have arisen during the first year of the Biennial Budget and cannot be deferred until the next biennial budget process. Absent new General Fund resources, departments have identified alternative funding options such as grant resources, special revenue funds, Local Return Funds, and Community Development Block Grant resources to fund CIP projects. Total budget amounts represent major project support for Water projects identified in the Sustainable Waster Master Plan, Water and Wastewater Main Replacement projects, Big Blue Bus Fund resources to implement fleet electrification master planning and seismic building improvements and ongoing maintenance projects that protect and maintain City-owned infrastructure.
General Fund CIP Budget Changes
General Fund capital projects total $13.5 million (excluding the amount set aside for debt service) or 13% of the total proposed CIP Budget and approximately $0.5 million of this amount represents an increase for the Reed Park Improvements project and the
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internal services transfer in the Vehicle Replacement Program outlined in the CIP section of Attachment A.
Prior to the pandemic, the General Fund allocated $21 million a year to the CIP Budget.
This amount was reduced to $7.8 million in FY 2020-21 and has increased gradually since then. Without new funding sources, there is no capacity to restore the annual General Fund CIP Budget to $21 million until FY 2024-25 at the earliest. Current amounts allocated to the CIP are not enough to address deferred infrastructure and equipment maintenance, technology/computer and fleet replacement, and a renewed focus on community amenities that were put on hold during the pandemic. Funding for additional new projects is not available; unfunded projects are shown in the Unfunded CIP List.
Non-General Fund Budget Changes
Non-General Fund capital projects total $90.5 million or 87% of the total proposed CIP Budget. The total net increase from the previously approved CIP budget for NonGeneral Fund projects is approximately $7.5 million. All proposed budget increases can be fully supported by enterprise fund balances, grants, alternative funding or a special revenue source.
The FY 2023-24 CIP budget changes include $4.3 million from enterprise Big Blue Bus funding sources for projects necessary to implement the Administration Building seismic improvement project and augmentation of the 7th Street Fencing Upgrade project. The remaining significant Non-General Fund increases are from an appropriation of $1.25 million in Local Return revenues for the new Bus Terminal at PCH and Sunset Blvd and Parking Structure Study, $1.05 million in CDBG Funds for the 19th Street Open Space Project, Virginia Avenue Park Commercial Kitchen and Virginia Avenue Park Basketball Replacement project, and $0.7 million in Special Revenue Funds for the Marine Park Basketball Court Surface Reconstruction and Park Improvement Program projects.
These budget increases as well as smaller changes are outlined in the CIP Budget section of Attachment A.
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Unfunded CIP List
Projects that were eliminated or reduced to help close the City’s funding gap resulting from the pandemic or did not receive funding due to extremely limited resources are listed in the Unfunded Projects table and are tracked for consideration in future funding cycles. City staff will explore opportunities to leverage City funds with external funding.
At this time, a total of $362 million in projects remain unfunded and are tracked for consideration in future funding cycles. Over 93% ($337 million) of the unfunded list is comprised of requests for General Fund resources with the additional 7% ($25 million) comprised of infrastructure requests for Pier Fund resources. The list of unfunded projects includes a complete remodel/seismic retrofit of Parking Structure 1 and other parking structure upgrades, the Memorial Park Expansion project, Lincoln Blvd. (LiNC) improvements, City Hall North building system upgrades, Pier deck and railing upgrades, Fire station facilities, Gandara Park Restoration, the Public Landscape Division relocation and City Yards Modernization improvements along Michigan Ave. A complete list of unfunded projects is included in the CIP section of Attachment A.
Fiscal Policies
The City’s Fiscal Policies, included as an appendix in the Budget, promote transparency, accountability, and a common framework for managing financial resources. At the onset of the COVID-19 closures, the Council temporarily suspended or changed a number of policies to provide greater flexibility in the use of funds. Three years later, the broad disruption that continues to impact economies, along with a protracted recovery horizon, demands a reassessment of these policies. Staff has proposed the following amendments to the Fiscal Policies. Council adopts the Fiscal Policies along with the Adopted Budget.
Paydown of the Unfunded Pension Liability: On April 11, 2023, Council authorized a suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 until FY 2027-28, or later, to restore an array of community services and programs such as expanded hours at the Main Library, restoring Youth Program capacity, and restoring positions in Planning and Economic Development to further economic recovery activities, among other restorations.
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Shift from ten-year to five-year financial forecasts: Before the pandemic, the City had shifted to ten-year forecasting to provide a longer planning window when dealing with capital projects and changes in pension obligations. Due to the persistent uncertainty in many elements impacting economic conditions, from the impacts of remote work, inflation, labor shortages, changes in travel and shopping, and supply chain disruptions, staff is proposing a permanent reversion to five-year forecasts to mitigate the risk of budgeting using unsubstantiated revenue projections. Staff will continue to monitor extraordinary cost trends beyond the five-year forecast period.
Elimination of expenditure control budgeting: Expenditure control budgeting previously allowed General Fund departments to maintain one-third of their non-salary operating budget savings to be used at the department head’s discretion to fulfill the mission of the department. With extremely constrained budgets throughout the City and fund reserves at a low level, it is prudent and necessary to consider the best citywide use of any savings.
General Fund Operating Contingency (Rainy Day Fund): On May 5, 2020, Council authorized staff to lower the General Fund contingency reserve level from 15% of ongoing expenditures to 12.5% to help balance the budget while revenues experienced severe declines. Strong reserves protect our ability to provide essential services and retain jobs during emergencies and economic fluctuations. They are also a signal of a City’s financial health and critical to maintaining the City’s AAA bond rating. The fiscal policy reflects a gradual rebuilding of the Rainy Day Fund, with a minimum 13% reserve level for FY 2023-24, and 13.5% reserve level for FY 2024-25, reaching a 15% reserve level in time for the FY 2027-29 Biennial Budget.
City Fees, Fines and Rates
As part of the annual budget adoption process, staff presents master fee, fine, and parking resolutions to Council for approval. Per the City’s Fiscal Policies, a Citywide fee/cost of services study is conducted at least once every five years. The last study was presented to Council as part of the FY 2021-23 biennial budget. In the years
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between studies, most fees are administratively adjusted by a factor equal to the net change in City salaries and benefits costs for that fiscal year. The administrative adjustment is 4%. Also, staff has undertaken focused reviews of several program areas to propose new fees or revisions to existing fees. Proposed changes are discussed below and listed in Attachment C. The actual final proposed resolutions will be presented for adoption with the Proposed Budget on June 28, 2023.
Community Development
• Architectural Review Board – Administrative Design Approval (New Construction): A fee for new construction projects that are eligible for the streamlined staff-level review process pursuant to the zoning amendments to implement the City’s certified 6 th Cycle Housing Element.
• SB 9 Conformance Review: A fee for the staff-level review of housing development on single-unit dwelling parcels pursuant to SB 9, that requires cities to allow one additional residential unit onto parcels zoned for single-dwelling units by constructing two units on a single lot or the subdivision of one lot into two separate lots. • Carousel Building Rental Fees: Special event rental rates for the Carousel Building have not increased since 2014. In consultation with the Pier Corporation, the entity that handles private rental of the Carousel on behalf of the City, Staff recommends rate increases, which will continue to keep the Carousel as an affordable venue while remaining competitive with other similar venues surveyed. Special event rental of the building helps to offset City expenses for maintaining the Carousel as well as the Pier Corporation’s staff costs for managing bookings.
Recreation and Arts (formerly Community Services)
Staff recommends increases to the hourly rates charged for the Aquatics Program to align with the actual hourly rates paid to staff and ensure that the City recovers the cost for the services provided. In addition, the Beach House recommends the addition of new fees for contractor-instructed activities that are being offered.
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Department of Transportation
The Department of Transportation recommends the addition of ten new fees for the Parking and Mobility Divisions to ensure that the City recovers the costs to install and remove event-specific signage, decal stickers for the Beach Bike Path program, and meter pole removals and installations, as well as the revision of one fee description.
The fees are hourly rates based on the fully burdened cost of the position performing the specific service. The new fees will ensure that the City recovers the cost of services provided.
There are no proposed rate changes to transient and permit parking lots/structures at this time. Staff will include the following changes in the parking resolution to be approved during final budget adoption on June 27, 2023: 1) Extend the downtown discount validation program through June 30, 2024; 2) Increase preferential parking permit fees by 4%; 3) Establish a Pilot Beach Electric Vehicle Parking Permit for Beach Lot 5 South; 4) Establish a Pilot Electric Vehicle Parking Permit for Lots 7, 8, 9, and 11; and 5) Establish a parking rate for City spaces for the 1560 Lincoln Boulevard Structure.
Library
Staff recommends changing the conference or meeting room minimum rental requirement from 3 hours to 2 hours to provide the community with flexibility and provide consistency with rental rates across all locations. The hourly rental rate is unchanged.
Police
Staff recommends deleting the 30-day vehicle impound because it is no longer being charged.
Public Works
Staff recommends the creation of two EV User fees instead of one flat rate to reflect the lower electricity rates during off-peak winter months. Staff also recommends new fees for the Cemetery to establish a pricing list for the new cremation niches that are now available due to the Abandoned Graves Project and property sold back to the
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Cemetery. Staff also recommends adjusting several existing fees to ensure consistency with similar fees.
Urban Runoff In-Lieu Fee
SMMC Chapter 7.10 Urban Runoff Pollution Mitigation allows a building permit applicant for a new development or redevelopment project in the City to pay an Urban Runoff Reduction Fee in-lieu of on-site installation of improvements to mitigate runoff from the project site. The fee proceeds are used to construct improvements on City property that would achieve the same level of runoff mitigation. The municipal code allows for yearly increases to the fee based on actual costs of City projects, but the fee has not been updated since 2010. Staff recommends that the fee increases be phased in over the next five years to ultimately reach actual construction costs. The proposed fee rates are as follows: Year1 (FY 2023/24) $12.27/gal; Year2 (FY 2024/25) $16.93/gal; Year3 (FY 2025/26) $21.60/gal; Year4 (FY 2026-27) $26.26/gal; Year5 (FY 2027/28) $30.92/gal).
Records and Election Services
Staff recommends that Council consider establishing three new election fees. The initiative fee is at the rate allowed by the California Elections Code (Chapter 3, Article 1, Section 9202), although it does not achieve recovery for the cost of administering an initiative process. The statement fees are the rates that Los Angeles County charges the City to ensure that the City recovers the cost of the services provided during the election process.
Council may elect to subsidize these fees partially or fully:
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• Initiative Fee: The proposed fee amount is $200.00.
• Candidate Statement Fee: City Council and Rent Control Board: The proposed fee amount is $1,100.00.
• Candidate Statement Fee: College and School Board: The proposed fee amount is $1,200.00.
Organizational Support Program
The City’s Organizational Support Program (OSP), managed by the Cultural Affairs Division, provides multi-year grants to the City’s resident arts and heritage nonprofits.
OSP funding helps secure Santa Monicans’ access to world-class cultural opportunities by directly supporting organizations’ operational expenses. The OSP application process was re-opened this year for the first time since 2019. Proposals were solicited for the grant period FY2023-25. A request for applications was distributed widely in December 2022; the City received 27 eligible submittals. Applications were reviewed by a diverse jury of arts professionals, including regional experts in each of the artistic/cultural disciplines represented in the applicant pool. Cultural Affairs Division staff reviewed applications for eligibility only; staff did not score applications.
During the last OSP cycle, in 2019, some of the eligibility requirements were eased to allow more organizations to apply, which resulted in an increase of small and mid-size organizations who tend to serve more diverse constituencies. These new grantees received a smaller “starter grant” because of budget limitations. Those limitations are ongoing, and the budget is further strained due to three new applicants entering the program this cycle. OSP funding is intended to provide a stable level of support for grantees year over year; the goal is to provide funding amounts that do not fluctuate wildly. Due to an anticipated flat budget for the program, staff recommends that new applicants begin with “starter grants,” while those who were new in the last cycle receive a slight increase based on the panel scoring, which will step them up toward the more traditional funding levels. Staff is recommending level funding for long-term organizations. This approach balances the critical mandates of equity with the realities of larger organizations, which are also very much in need after three years of pandemic
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closures and restrictions. Together, the 21 cultural agencies recommended for this year’s grantee pool is more diverse than any in the history of the program.
The total funding level for FY2023-24 is $409,925, a 2% increase over 2019. Detailed information about the OSP, individual grant recommendations, and the 2022 Community Assessment which informed the grant process and staff’s recommendations, are detailed in the Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits 2023-25 (Attachment D).
Next Steps
Council will convene a public hearing on June 27, 2023 to consider, receive public comment, make revisions to, and adopt the first year and approve the second year of the Biennial Budget, as well as to adopt the second year of the Capital Improvement Program Biennial Budget.
Members of the public may provide comments on the Proposed Budget by sending an email to [email protected] or by giving public testimony at the May 23, 2023 Council meeting. Public testimony is also welcome at the Budget Adoption hearing on June 27, 2023.
Environmental Review
The FY 2023-25 Proposed Budget is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The Proposed Budget is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Financial Impacts and Budget Actions
The Fiscal Year 2023-2025 Proposed Biennial Budget is:
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• Citywide Expenditures: $740.9 million in FY 2023-2024 and $746.4 million in FY 2024-2025, net of reimbursements and transfers
• Citywide FTEs: 2,097.1 (2,003.2 permanent and 93.9 temporary) • Citywide Revenues: $747.2 million in FY 2023-2024 and $782.0 million in FY 2024-2025, net of reimbursements and transfers
Staff will integrate comments from the Study Session in the preparation of the budget that will come before the Council for adoption on June 27, 2023. At this meeting, staff will recommend adoption of the first year and approval of the second year of the FY 2023-25 Proposed Biennial Budget, as well as the adoption of the second year of the Capital Improvement Program Biennial Budget.
Prepared By: Oscar Santiago, Budget Manager
Approved Forwarded to Council
Attachments:
A. Attachment A - FY 2023-25 Proposed Biennial Budget
B. Attachment B - March 11 Council Workshop (Web Link)
C. Attachment C - Revisions to Fee Schedules FY 23-24 FINAL D. Attachment D - OSP 2023-25
E. Attachment D - OSP 2023 Community Assessment Report FINAL F. Written Comments
G. PowerPoint Presentation
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Proposed
Biennial Budget
FY 2023-25
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Packet Pg. 628 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) ii
CITY COUNCIL
Gleam Davis, Mayor
Lana Negrete, Mayor Pro-Tempore
Phil Brock, Councilmember
Oscar de la Torre, Councilmember
Christine Parra, Councilmember
Caroline Torosis, Councilmember
Jesse Zwick, Councilmember
EXECUTIVE MANAGEMENT
David White, City Manager
Susan Cline, Assistant City Manager
Anuj Gupta, Deputy City Manager
BUDGET PREPARATION
FINANCE STAFF
Gigi Decavalles-Hughes, Director of Finance
David Carr, Assistant City Treasurer
Oscar Santiago, Budget Manager
Jennifer Young, Principal Budget Analyst
Lori Koh, Senior Budget Analyst
Jonathan Tang, Senior Budget Analyst
Laura Perez, Executive Administrative Assistant
CAPITAL IMPROVEMENT PROGRAM STAFF
Rick Valte, Director of Public Works
Sergio Ramirez, Administrative Services Officer
Heidi Duran, Principal Administrative Analyst
Cover Photo Credit: Sean Paul Franget
FY 2023-25 PROPOSED BIENNIAL BUDGET
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Packet Pg. 629 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) iii
FY 2023-25 PROPOSED BIENNIAL BUDGET
TABLE OF CONTENTS
City Manager’s Message1
En Español 15
Santa Monica at a Glance 30
Budget Overview 35
Overall Economic Conditions 35
Citywide Budget Overview 38
Major General Fund Tax Base Projections 46
Fund Balances 49
Classification of Funds 49
Fund Balance Projections 53
Fund Balance Projections (FY 2023-24) 54
Fund Balance Projections (FY 2024-25) 56
Revenues 58
Summary by Category and Fund (FY 2023-24) 58
Summary by Category and Fund (FY 2024-25) 59
Five-Year Revenue Summary 60
Overview 66
Revenue Analysis, General Fund 68
Revenue Analysis, Other Funds 77
Expenditures 92
Expenditure Summary by Fund (FY 2023-24) 92
Expenditure Summary by Fund (FY 2024-25) 93
Five-Year Expenditure Summary 94
Departmental Summaries 102
City Council 102
City Manager 104
City Attorney 106
Records and Election Services (City Clerk) 109
Community Development 112
Finance 116
Fire 119
Housing and Human Services 122
Human Resources 125
Information Services 128
Library 130
Police 133
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Public Works 137
Recreation and Arts 142
Department of Transportation 145
Non-Departmental 151
Personnel and Staffing 154
Organizational Chart 154
Summary of Personnel by Fund 155
Personnel by Department and Division 160
Capital Improvement Program 196
Addendum to FY 2022-24 CIP Budget 196
FY 2023-24 Budget by Fund 213
FY 2023-24 Unfunded Projects 217
Appendix 219
Targeted Budget Enhancements 219
Budget Calendar 222
Fiscal Policies 223
Debt Financing Summary 244
Summary of Long-term Indebtedness 245
Debt Service Schedule 246
Bond Ratings 247
Glossary 248
Acronyms 260
GFOA Award 263
FY 2023-25 PROPOSED BIENNIAL BUDGET
TABLE OF CONTENTS
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Packet Pg. 631 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE
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CITY MANAGER’S MESSAGE
It is my pleasure to present the FY 2023-25 Proposed Biennial Budget for the City of Santa Monica.
The FY 2023-25 Proposed Biennial Budget (Budget) is prepared within the context of our emergence from a period of significant restructuring due to the COVID-19 pandemic while we also have been working to address unprecedented liabilities. Despite these challenges, the City is recovering and rebuilding, as evidenced by the significant new investments throughout our community. In addition, by cultivating new revenue streams through partnership initiatives and voter support for new tax measures, this Budget has the capacity to allocate resources to address City Council and community priorities -- public safety, programs and services to address homelessness, and vital community services for youth, families, and seniors – to ensure the community continues to move forward.
These investments are only part of the story. Santa Monica is a vibrant community and will continue to thrive by looking to the future and advancing projects such as planning for the future of Santa Monica Airport, expanding cultural offerings, centering our work on sustainability, and striving for a community where everyone in Santa Monica has an opportunity to thrive.
The Budget sets forth the City’s management and spending plan for the two years spanning July 1, 2023 through June 30, 2025.
FY 2023-25 is the first biennial budget period for the post-COVID-19 emergency period. This Budget sets forth a plan to rebuild and enhance services against a backdrop of continued economic uncertainty driven by labor shortages, supply chain disruptions, inflation, and global conflicts at the national and international levels, in addition to significant liabilities and mounting deferred maintenance at the local level. To help ensure this Budget focuses the City’s resources where they are most needed, the City Council held a Council Workshop on March 11, 2023, to determine its priorities and provide direction on key budget items. The Budget reflects the outcomes of that Workshop, including restoring key City services and making investments in five priority areas:
• Addressing Homelessness
• Clean & Safe Santa Monica
• Cultivate Economic Recovery & Expand Community & Cultural Offerings • Racial Justice, Equity & Social Diversity
• Sustainable & Connected Community
These priorities continue the necessary work of helping our community recover from the COVID-19 pandemic and its economic and social impacts, but also focuses work on ensuring the long-term resilience and equity of Santa Monica.
The City’s General Fund revenue streams are anticipated to reach their pre-pandemic trajectory in five years.
In the meantime, lower revenue levels are constraining our ability to support a full restoration of services to pre-pandemic levels. Trends in global travel, retail shopping and hybrid and remote work mean Santa Monica must adapt its local economy for the future. The City has taken key steps to adapt zoning and laws to help with
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CITY MANAGER’S MESSAGE
this transition as local businesses make key investments in hotels, hospitals, and housing that will make Santa Monica’s economy resilient in the long-term. The Budget also reflects new revenue sources and partnership opportunities that strengthen Santa Monica.
• Measure CS, adopted in 2022, increases the City’s Transient Occupancy Tax (Hotel Tax) by one percentage point for hotel stays and by three percentage points for homeshare stays. It is anticipated that this tax will generate approximately $5.0 million annually during the biennial period. While this is a general revenue tax, meaning that it is not restricted as to its use, community polling done in anticipation of Council approving the measure for the ballot showed an urgent need for new funds to address the impacts of homelessness and to enhance public safety. The measure itself, which received 73% of the vote, noted the intent for these funds to be spent to address homelessness, improve 911 emergency response times and neighborhood police protection, and improvements to the safety and cleanliness of our public spaces. • Measure GS, adopted in 2022, is a citizen’s initiative ballot measure that enacts a third tier Documentary Transfer Tax of an additional 5% for property sales of $8 million and over, with revenue restricted to fund homelessness prevention, affordable housing projects, and schools. It is anticipated that this measure could generate approximately $50 million annually. The volatile nature of this revenue source, based on sales of very high value properties, and its administration and programming, requires a longer horizon for the programming of these funds. However, planning and organizational adjustments can begin as early as FY 2023-24 for what will likely be a multi-year Measure GS implementation strategy. • Voters also approved in 2022 Measure HMP, which imposes an additional tax on cannabis retailers and other licensed cannabis businesses. Further work is required to amend the Municipal Code to allow for an increase of cannabis-related retail establishments and revenues are not anticipated during the upcoming biennial period.
• The City’s work with private, public and non-profit partners and granting agencies is further contributing to important investments in our community and providing a more diversified approach to leveraging resources during a period of disruption in our traditional revenue streams. • The City recently entered into an agreement with Big Outdoor to install digital wayfinding kiosks in commercial areas that will provide a way for our small businesses to connect with potential customers and will generate additional revenue for the City, including an annual Diversity, Equity and Inclusion (DEI) fund.
• The City is continuing its partnership with the Los Angeles County Department of Mental Health (DMH) to implement a pilot program to launch a Therapeutic Transport Van staffed with DMH personnel in the City of Santa Monica. The Van will co-respond to incoming emergency calls related to, or presumed to involve, non-combative, medically stable individuals experiencing a mental or behavioral health crisis. The program also offers a supportive and expedited alternative to the transportation needs of acute mentally ill clients requiring additional care. The program is designed to relieve first responder resources to focus on other health and safety priorities. In addition, DMH Clinicians work alongside the City’s Homeless Liaison Program teams to locate, identify and provide outreach to people experiencing homelessness.
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Packet Pg. 634 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 3 • The City established the We Are Santa Monica Fund in 2021 to provide an avenue for private donations to support the Santa Monica community, including supporting economic recovery, racial equity and social diversity, healthy neighborhoods, and neighbors in need. The Fund is an important City partner to engage the community and local businesses to provide additional support in these areas.
• With the help of new grants received in the second half of FY 2022-23, work is progressing on the City Yards Modernization MicroGrid program and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects.
Additional significant state and federal grant and development agreement funding received late in FY 2022- 23 will further the City’s work to support behavioral health needs of vulnerable residents and electrification of our buses. And staff continues to apply for grant funds to enhance our services in the areas of affordable housing, homeless services, public safety, parks, libraries and sustainability.
As we continue on our road to recovery, we will build on our use of metrics to manage our work, ensuring that the programs we provide are effectively and efficiently addressing our priorities.
FISCAL CONTEXT
The overall proposed budget for the City of Santa Monica is $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25. This reflects the operating and capital activities of 30 funds across 15 departments and approximately 2,097 permanent and temporary full-time equivalent positions.
The largest component of the budget is in the General Fund, which is funded predominantly with tax revenues and provides services shared equally by all community members and visitors. The General Fund budget is $436.9 million in FY 2023-24 and $458.6 million in FY 2024-25.
The Citywide budget also includes several enterprise and special revenue funds, funds that are for specific uses or based on use of resources by individuals.
• Among the larger funds contributing to the City’s operations, the Water, Wastewater, Big Blue Bus (BBB), Airport and Cemetery Funds have sufficient revenue to cover operational and capital needs during the biennial period. If new rates are approved by Council in June 2023, the Resource Recovery and Recycling (RRR) Fund will remain self-sufficient during the biennial period as well as enhance services offered. • The Pier and Beach Recreation Funds are projected to require subsidies and advances during the biennial budget period totaling approximately $8.7 million. Continued revenue constraints, including the partial closure of the Pier Deck parking, and pending plans to adjust beach parking rates, are significantly contributing to the situation.
• The Community Broadband (CBB) Fund, which supports CityNet operations, will be merged into the General Fund, allowing for greater efficiencies from a more flexible sharing of resources.
The City’s two-year budget approach means that FY 2023-24 represents the exception-based year for our capital improvement program (CIP) Biennial Budget. The CIP budget for FY 2023-24 is $104.1 million, with $13.5 million FY 2023-25 PROPOSED BIENNIAL BUDGET
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Packet Pg. 635 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 4 representing the General Fund portion. Prior to the pandemic, the General Fund allocated $21 million a year to its CIP. This amount was reduced to $7.8 million in FY 2020-21 and has increased gradually since then. Without new funding sources, there is no capacity to restore the annual General Fund CIP budget to $21 million until FY 2024-25 at the earliest. Current amounts allocated to the CIP are not enough to address deferred infrastructure and equipment maintenance, technology/computer and fleet replacement, and a renewed focus on community amenities that were put on hold during the pandemic, although some funds have been programmed to begin the Airport conversion planning process in FY 2023-24. At this time, a total of $362 million in projects remain unfunded and are tracked for consideration in future funding cycles. Over 93% ($337 million) of the unfunded list is comprised of requests for General Fund resources with the additional 7% ($25 million) comprised of infrastructure requests for Pier Fund resources.
FISCAL SUSTAINABILITY
The Budget is informed by, and informs, the Five-Year Financial Forecast. In order to include an ongoing program or service in the Budget, there must be an ability to fund this expense over the long-term using revenues, assigned or restricted reserves, or working capital reserves. The General Fund Forecast shows revenues only slightly exceeding expenditures (by approximately $100,000) on an annual basis during the Budget period. This positive balance reflects the use of working capital reserves beginning in FY 2024-25. Working capital will be needed beyond FY 2024-25, and even with the use of these reserves, staff currently projects negative balances of $0.6 and $1.5 million, respectively, in FY 2026-27 and FY 2027-28. These negative balances represent 0.1% and 0.3% of revenues for those two years and are at a level that can be managed over the next three years.
As of June 30, 2022, General Fund non-restricted reserves amounted to 70% of what they were as of June 30, 2019.1 Strong reserves are necessary to cushion the delivery of services from the impact of emergency expenditures, contingent liabilities, and economic uncertainty. Since 2020, demands on these reserves have been compounded by:
• Delivery of essential services during the COVID-19 Pandemic. • Payments of over $229.8 million in legal settlements over the past three years related to allegations of sexual abuse by a former employee.
Looking ahead, the City is in litigation over a request to transition to district elections. The case is currently waiting to be heard in the California Supreme Court and if the City loses the case, the financial impacts to the City will be high. Finally, the City has significant capital liabilities that must be addressed, including the seismic retrofit of Parking Structure 1 at a cost of at least $13 million. The City has taken many actions to strengthen our financial standing, and the FY 2023-24 General Fund budget is supported by reserves in a Rainy Day Fund that total 13% of ongoing expenditures, but the impacts of these financial liabilities limits the City’s ability to address much needed service and staffing restorations.
1 On April 25, 2023, Council approved settlements with claimants in the amount of $122.5 million to resolve all lawsuits against the city arising out of allegations of sexual abuse by former City employee Eric Uller. A portion of the settlement is covered using General Fund reserves. Adjusting for the reserves drawn down for this payment, nonrestricted reserves would be at 45% of their FY 2018-19 level.
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Packet Pg. 636 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 5 FISCAL POLICIES
The City’s Fiscal Policies, included as an appendix in the Budget, promote transparency, accountability, and a common framework for managing financial resources. At the onset of the COVID-19 closures, the Council temporarily suspended or changed a number of policies to provide greater flexibility in the use of funds. Three years later, the broad disruption that continues to impact economies, along with a protracted recovery horizon, demands a reassessment of these policies.
Paydown of the Unfunded Pension Liability: On April 11, 2023, Council authorized a suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 until FY 2027-28, or later, to restore an array of community services and programs such as expanded hours at the Main Library, restoring Youth Program capacity, and restoring positions in Planning and Economic Development to further economic recovery activities, among other restorations. While paying down unfunded liabilities at an accelerated rate is a prudent fiscal management tool, mitigating future year interest costs, the City needs to weigh this long-term fiscal management tool against the current state of our community services. The prior policy was adopted in 2019, when the City’s programs were operating at full strength, reserves were strong, and the General Fund had the capacity to take on additional payments of $2.5 to $3.5 million a year beyond the annual required pension contribution. To date, the City has made additional paydowns of over $88 million under the umbrella of early paydown policies, making it a leader in this achievement among other members of CalPERS.
Shift from ten-year to five-year financial forecasts: Before the pandemic, the City had shifted to tenyear forecasting to provide a longer planning window when dealing with capital projects and changes in pension obligations. Due to the persistent uncertainty in many elements impacting economic conditions, from the impacts of remote work, inflation, labor shortages, changes in travel and shopping, and supply chain disruptions, staff is proposing a permanent reversion to five-year forecasts to mitigate the risk of budgeting using unsubstantiated revenue projections. Staff will continue to monitor extraordinary cost trends beyond the five-year forecast period.
Elimination of expenditure control budgeting: Expenditure control budgeting previously allowed General Fund departments to maintain one-third of their non-salary operating budget savings to be used at the department head’s discretion to fulfill the mission of the department. With extremely constrained budgets throughout the City and fund reserves at a low level, it is prudent and necessary to consider the best citywide use of any savings.
General Fund Operating Contingency (Rainy Day Fund): On May 5, 2020, Council authorized staff to lower the General Fund contingency reserve level from 15% of ongoing expenditures to 12.5% to help balance the budget while revenues experienced severe declines. Strong reserves protect our ability to provide essential services and retain jobs during emergencies and economic fluctuations. They are also a signal of a City’s financial health and critical to maintaining the City’s AAA bond rating. The fiscal policy reflects a gradual rebuilding of the Rainy Day Fund, with a minimum 13% reserve level for FY 2023-24, and 13.5% reserve level for FY 2024-25, reaching a 15% reserve level in time for the FY 2027-29 Biennial Budget.
COMMUNITY PRIORITIES AND INVESTMENTS
The FY 2023-25 Proposed Biennial Budget incorporates the direction provided by the City Council and community members at the March 11, 2023 Workshop, where Council adopted five priorities to act as the foundation of FY 2023-25 PROPOSED BIENNIAL BUDGET
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Packet Pg. 637 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 6 the Budget. Measures GS and CS are anticipated to generate significant resources to solve hypersensitive and challenging issues. Following Council direction, and in light of community needs and expectations, the Budget reflects the creation of two departments. The two departments will carry forward the Community Services Department’s work to be responsive to the social and economic challenges residents are facing, the need for community healing and recovery, and to provide services and programs that enrich lives and help people thrive:
• The Housing and Human Services Department would become the organization point for homelessness services and programs, which would enable the City to implement programs and services that result from Measures CS and GS, address the recommendations of the internal auditor’s Homelessness Study, and provide core focus and leadership on an array of housing, educational, and social services programs. This department would also administer investments to support vulnerable populations through the management of the Human Services Grants Program (HSGP). Minor changes would be made to existing job specifications to reflect the new department’s name, scope, and structure. A Housing Manager position, which existed prior to 2020, would be restored to oversee housing production and preservation activities funded by the Housing Trust Fund and housing voucher programs and collaborate with the Human Services Manager to develop and implement homelessness prevention initiatives. • The Recreation and Arts Department would create capacity and leadership around recreational partnership opportunities addressing conflicts between demand and capacity for recreational amenities and elevating arts and cultural affairs work in economic revitalization and social equity. The department would enable the ability to focus on the future of the Miles Memorial Playhouse and Camera Obscura buildings, reframing City Hall murals, leveraging the Beach House as a tourist destination and a key element of Santa Monica’s beachfront brand, in addition to managing the Organizational Support Program grants. 3.0 FTEs would be added including a Director, an Administrative Services Officer, and an Executive Administrative Assistant.
Finally, Council provided early direction on a number of proposed General Fund budget restorations and enhancements. Additional enhancements addressing the priorities are included in the Budget. Many of these restorations and enhancements are highlighted below according to the priority they most closely address, although many programs address a number of priorities.
ADDRESSING HOMELESSNESS
Prevent housed Santa Monicans from becoming homeless and increase the supply of affordable housing, address the behavioral health needs of vulnerable individuals and advocate for regional capacity to address homelessness.
On February 14, 2023, the City declared a local emergency on homelessness. In developing this Budget, resources allocated to addressing homelessness are informed by the City’s certified 2021-2029 Housing Element, a recent study performed on the City’s work to address homelessness (the Homelessness Study) that was completed by Moss Adams in late 2022, and the City’s Four Pillar approach to preventing and addressing homelessness that was adopted by City Council in March 2019.
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Packet Pg. 638 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 7 The first step will be the preparation of a Homelessness Strategic Plan (HSP) (Recommendation 1, Homelessness Study). The HSP, which will be funded with Measure CS funds, will build on the City’s Four Pillars framework and lay out a coordinated and systemic vision for the expansion of the homelessness response system, measurable outcomes and goals, and accompanying strategies. The process to develop the HSP will incorporate Santa Monica’s community partners, people with lived experience of homelessness, service providers, city agencies, and public and private sector partners to align around a clear vision, set of outcomes, and investments.
With this plan, the City seeks to increase continuity in an inherently shifting policy environment; improve focus on measurable objectives; and increase internal alignment and regional coordination; all towards the goal of preventing, ending, and addressing homelessness in Santa Monica.
The Budget proposes to restore and enhance staffing in the Housing Authority (using Section 8 Administrative Funding) to manage and administer the expanded size and capacity of Housing Authority voucher programs, which have grown significantly over the last several years. The additional 3.5 FTE positions will have the capacity to undertake eligibility screening of applicants on the tenant-based voucher waitlist, work with a significantly expanded caseload, more efficient use of federal voucher authority and funding, and improved customer service for tenants and housing providers (landlords).
The City continues to invest in Multi-Disciplinary Teams (MDTs) that are managed by The People Concern and include the Homeless Multidisciplinary Street Team (HMST) and City + County + Community Team (C3). The teams are staffed by licensed medical and behavioral health clinicians who can deliver immediate and intensive services to people on the street while they wait for shelter placement. These teams work collaboratively with the SMPD Homeless Liaison Program (HLP) Teams to discuss and address the needs of the City’s most high need people experiencing homelessness (PEH). The wait for housing can be long so we need to provide more services to support PEH where they are and while they wait. In support of this mission, in this Budget, we are proposing to expand this program to include a third team to start in FY 2023-24 (Recommendation 18, Homelessness Study).
The current C3 Team covers the beach and downtown area, and the additional team would cover the balance of the City. The program expansion will be funded with Measure CS funds.
The City will partner with outreach teams from The Salvation Army that will respond to requests from the SMPD HLP Team and others in the field. This will provide another resource to work with clients and connect them immediately to available services. The Salvation Army outreach teams expect to guide and provide support to clients who are in immediate crisis, with the intention to get the client off the street that day, while also working towards a longer term solution. Funding for this program is provided from the Los Angeles County’s Westside Cities Council of Governments’ Innovation Fund.
Measure CS funds, as well as federal appropriation funds, will allow us to move forward on the redesign of the SAMOSHEL interim housing program to accommodate 24/7 intakes, giving additional options for afterhours intake and facilitating SMPD transports for people experiencing homelessness and non-urgent behavioral health issues (Recommendation 15, Homelessness Study).
Using Measure CS funds, we also propose to expand Police Department staffing levels. The total increase of 7 FTE’s – 6 police officers and 1 sergeant – will enable the Police Department to expand its Homeless Liaison Program (HLP) to deploy seven days per week. The program currently operates four days per week (Recommendation 15, Homelessness Study). Anticipating the lengthy recruitment and training period for the FY 2023-25 PROPOSED BIENNIAL BUDGET
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Packet Pg. 639 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 8 new HLP team positions, in the short term, these Measure CS resources will be used to continue the work of the Directed Action Response Team (DaRT), a multi-department team that addresses areas of community concern on the Beach, Pier, and Downtown, and to establish a real-time crime intelligence center.
CLEAN AND SAFE SANTA MONICA
Create an atmosphere marked by clean and safe public spaces and neighborhoods, including parks for recreation and leisure activities.
Measure CS funds will be used to enhance the safety and cleanliness of our open spaces in addition to the service and technology expansions in the Police Department that are noted under the Addressing Homelessness priority (i.e., expansion of the Homeless Liaison Program Team and DaRT). During this budget period, the City will develop plans and strategy to implement a real time crime center, the Santa Monica Analytical Real Time Center (S.M.A.R.T Center), that will gather and synthesize real time data from an array of technologies, including closed circuit television (CCTV) cameras, a video management system, automated license plate readers (ALPRs), unmanned aircraft systems (UAS or drones), Live911, geo-location of SMPD public safety, sworn and professional staff to drive the focus of police resources.
Measure CS funds allow the City to continue and expand Clean and Safe programs previously funded on a onetime basis. These include the expanded security services program at Downtown parking structures and at the Pier, which will transition to be permanent programs, as will maintenance of the water features at Ken Genser and Tongva Parks. In addition, Measure CS funds are allocated to the following efforts:
• Public space maintenance investments will be expanded, including enhancements to ensure higherrisk cleanup activities are performed safely, using an additional, specialized team and higher frequency cleanup efforts focusing on waste and debris generated by people experiencing homelessness (Recommendation 10, Homelessness Study).
• Tree pruning frequencies in high-traffic areas will be increased, ensuring safer conditions for the public and improving the aesthetics of our public spaces.
• Enhanced monitoring and enforcement of the City’s home-sharing ordinance will assist the City in mitigating the impacts these home-shares have on residential neighborhoods and areas not typically subject to the impacts of commercial activities.
The two-year Community Response Unit (CRU) pilot program will conclude at the end of FY 2022-23. Throughout the pilot period, the Santa Monica Fire Department (SMFD) continuously evaluated the CRU's effectiveness and its role in Emergency Medical Services (EMS) delivery, specifically related to PEH and those at risk of becoming homeless. During this evaluation period, the Fire Department identified opportunities to improve the program through a more strategic approach to EMS delivery. To maximize response capabilities of a future CRU and take a more proactive approach to providing care to our most vulnerable populations, the Fire Department proposes to reallocate funds currently dedicated to the CRU to add an EMS Battalion Chief and a contracted case manager:
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Packet Pg. 640 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 9 • The EMS Battalion Chief will address the changing needs of EMS, including community paramedicine, new response protocols, issues with ambulance capacity, increased low acuity calls, and rising ambulance patient offload times that impact units' timely return to service. • A dedicated case manager will work with high utilizers of the 9-1-1 system, including on-scene assistance and navigation to appropriate services. The rapidly growing list of clients and their specialized needs has exceeded firefighters’ capacity and expertise.
The Department of Transportation proposes a Transit Safety Program consisting of unarmed security guards (Transit Safety Officers) who will be assigned to ride onboard buses and conduct foot patrols at BBB bus stops. The TSO’s will be able to support Motor Coach Operators in providing customer service to riders, assist with securityrelated disturbances, serve as a deterrent to crime and unwanted behaviors, and support the City’s efforts in addressing homelessness. This program is funded using Big Blue Bus funds.
New solid waste rates will enable the City to comply with the new statewide mandatory organics recycling law (SB 1383), increase alley clearing frequencies, enhance illegal dumping and bulky item pickup services by moving to a proactive approach, support volunteer organized community cleanups, sweep the City’s increasing inventory of protected bicycle lanes, and continue its sustainability efforts to achieve the City Council’s goal of Zero Waste by 2030. (also addresses Sustainable & Connected Community priority)
CULTIVATE ECONOMIC RECOVERY & EXPAND COMMUNITY & CULTURAL
OFFERINGS
Cultivate economic opportunity and recovery and invest in community and cultural amenities and programs for all community members, focused on expanding opportunities for youth, teens and seniors.
As noted above, a new Recreation and Arts Department would create capacity and leadership to focus on efforts and initiatives that build community and advance an agenda focused on the arts and cultural affairs, which is essential to our economic revitalization.
The Budget proposes restoration of service hours at our libraries and a continuation of the hours restored last year using one-time funds. The additional hours would activate the Main Library on Saturdays, extending evening hours at all open locations (Monday through Thursday) to 8 pm, and opening the Main Library one hour earlier (Monday through Thursday) at 10 am. There will also be expanded programming for seniors and families at the Main Library and branch locations. Additional staff will not only be able to provide the customer service and research expertise for our visitors, but it will expand the creativity and volume of new and treasured programs, such as story times, technology help, and literary events. Funding for the additional hours is made possible by reallocating funds from the accelerated unfunded pension liability paydown initiative.
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Packet Pg. 641 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 10 Partial restoration of the direct service programs of CREST, the Police Activities League (PAL), and Virginia Avenue Park (VAP) will stabilize and ensure a consistent staffing structure in all youth programs that serve the most vulnerable populations in the community, including the Summer Lunch Program. The City’s direct service programs provide structured out-of-school time programming, such as enrichment activities and academic support, as an extension of the school day and well into the evening hours in support of low income and working families.
After school programs are an essential service to the community and provide rent burdened families with needed childcare and supervision. With this partial restoration, direct service programs can increase enrollments by 480 to 500 youth for a projected total participation of over 2,200 youth served. Funding for this restoration results from suspending the paydown of the City’s unfunded pension liability.
Continuation of the City’s financial support for the School District’s Playground Club program run by a nonprofit partner offering supervised afterschool play time on elementary schoolyards, using resources generated by suspending the paydown of the City’s unfunded pension liability.
The continuation of the Art of Recovery program which supports the production of free public art and cultural programming and events. Under this model, artists, arts organizations and community groups receive funding and support to produce public events. The events drive economic recovery, serve community groups across the City and provide financial support to a diverse group of artists, cultural producers, and community partners. The resources for this program result from suspending the paydown of the City’s unfunded pension liability.
Creation of a new cost covering Pickleball Program, with dedicated staff who will organize programming and open-play, provide policy and fee recommendations and provide overall program oversight.
Restoration of 15 more hours per week at the Memorial Park Gym and Fitness Room and additional 20 hours per week of field rentals, with costs covered by additional program revenue. This will provide indoor restroom access on weekday mornings for park users. And reintroduction of the highly requested Swim center Conference Room to community members and permit groups.
The introduction of cost covering specialty programs including lifeguard certification classes, at the new Santa Monica High School aquatic facility will offer classes aimed at developing the water skills of participants who aspire to become lifeguards and will serve as a feeder program for Santa Monica Aquatics and future lifeguards.
Permanent restoration of the Neighborhood Grant program, using funds reallocated from the paydown of the City’s unfunded pension liability, which will provide a $7,000 grant to each of the City’s seven neighborhood groups.
Establish a Small Business Assistance and Tenant Improvement Fund that will provide revolving loans or grants and technical assistance to highest need businesses. The Fund will include an ongoing $100,000 allocation from the General Fund (from reallocated unfunded pension liability paydown funds) and a one-time $50,000 amount from the City’s Community Development Block Grant (CDBG) allocation.
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Packet Pg. 642 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 11 Restoration of key positions in the Community Development Department will enhance economic recovery work. A Senior Planner will work on streamlining permitting processes and clarifying permitting requirements on the City’s website, leading the Local Coastal Program Update which will further streamline permitting, and serving as the City’s liaison to the California Coastal Commission in order to resolve complex permit applications.
An Economic Development Administrator will focus on the City’s real estate portfolio to maximize revenues, streamline leasing guidelines, and provide support to deliver on the City’s economic recovery projects including the VAP Community Kitchen incubator, local hire initiatives, small business support and entrepreneurship pathways for ethnic minority businesses. These investments will be funded with reallocated paydown funds.
Staff will undertake a strategic modernization of the City’s Business License Tax program and bring an updated ordinance to the City’s voters in 2024 that would aim to encourage investment and innovation, assist Santa Monica businesses in rebounding, and position the City to equitably and fairly tax existing and emerging businesses to support essential services. It would also institute improvements that would promote business growth and align with the City’s priority to cultivate equitable and inclusive economic opportunities for traditionally underserved communities including minority owned businesses and microenterprises. (also addresses Racial Justice, Equity & Social Diversity priority)
The City will implement a program offering reduced Resource, Recycling and Recovery rates for qualifying lowincome households with the adoption of new solid waste rates, using reallocated paydown funds. (also addresses Racial Justice, Equity & Social Diversity priority)
RACIAL JUSTICE, EQUITY & SOCIAL DIVERSITY
The City of Santa Monica acknowledges the effects of generational and institutional racism and discrimination, and its consequences that continue to impact our residents and businesses. These lessons of our history cannot be ignored. The City is committed to advancing racial equity and social diversity to improve the wellbeing of people who live, work, learn, play, and do business in our City and create a community where differences in life outcomes cannot be predicted by race, class, gender, disability or other identities. Everyone in Santa Monica must have an opportunity to thrive.
The City has integrated diversity, equity, justice and inclusion into its work throughout all departments. The City’s Sustainable City Plan includes metrics around social diversity and equity and the City’s Wellbeing Project initiated the City’s work with the Government Alliance on Race and Equity (GARE) and undertook key projects and trainings to help close the equity gap. Disrupted by the COVID-19 pandemic and City restructuring, the City’s Diversity, Equity and Inclusion Team seeks to pick up these efforts, engage different communities, and work to close equity gaps in economic property, education, health and wellness, and other areas that impact the quality of everyone’s wellbeing.
As part of the Out of Home Wayfinding franchise agreement, the franchisee, Big Outdoor, has agreed to return two percent of their earnings to the City. At the March 11 Workshop, staff received direction to allocate this portion of funding (approximately $100,000-$250,000 per year starting in FY 2025-2026) to an Equity Fund that can be used to support the City’s work to advance equity.
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Packet Pg. 643 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 12 Work is also continuing in the following areas:
• Language Access – implementation of the Language Access Administrative Instruction, expansion of the City’s real-time translation services, and purchase of hearing assistance equipment for public meetings. • Reframe – Continuation of the City’s project to recontextualize the murals as well as an effort to develop a land acknowledgement for Santa Monica in partnership with local Native American communities. • Racial Equity Committee – Using existing resources to support the professional development of our Equity and Inclusion Officers in the areas of diversity, equity and inclusion as the principles of public administration to help them make a greater impact in their work and develop future leaders with an integral understanding of how DEI informs their work.
The Budget includes the continuation of the Trades Intern Program (TIP). This is a program reaching across many of the city’s operations that focuses on supporting and empowering vulnerable Santa Monica youth and adults who face barriers to employment, which may include involvement with the criminal justice system, exiting probation or parole, or not having obtained a high school diploma or GED. In particular, TIP has served youth of color, with African American (33%) and Latino (63%) youth comprising 96 percent of participants since 2015. For many participants, the program has become a vehicle towards personal, social, and economic stability. Since 2015, a total of 27 trades interns have participated in the program. 19 TIP graduates have successfully attained full-time employment in the trades, with 10 acquiring full-time, permanent positions within the City.
The Budget includes the funds to allow for a hybrid public meeting option for meetings that take place in Council Chambers and the Santa Monica Institute (SMI) conference room in the Civic Center Parking Structure.
This model leverages changes in meeting structure that would allow for all public comment and public hearings to occur early in the meeting to keep additional staffing costs to a minimum. The cost is covered using reallocated paydown funds.
The addition of an ADA Coordinator will provide one point of contact for requests for accommodations and questions from the public and lead City initiatives to ensure that facilities comply with the regulations of the Americans with Disabilities Act (ADA).
To ensure that all vendors and service providers have significant practicable opportunities to compete for and participate in the City’s procurement of goods and services, the City will conduct a disparity study to explore current barriers to equity and inclusion of the City’s procurement and contracting practices, design a plan to implement changes responding to disparity study findings, and create a structural framework for vendor education, outreach, and support.
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Packet Pg. 644 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 13 SUSTAINABLE & CONNECTED COMMUNITY
Ensure that City policies and programs enhance our resources, prevent and remedy harm to the natural environment and human health, and benefit the social and economic wellbeing of the community for the sake of current and future generations.
Sustainable practices are integrated into programs, policies and operations across the City. A significant portion of the City’s work addressing the Sustainability priority is funded by the City’s Enterprise Funds, including the Water, Wastewater, Resource Recovery and Recycling, and Big Blue Bus Funds, which have all made strategic investments and operational changes to advance sustainability outcomes.
Council established meaningful sustainability goals for both municipal operations and the community with the adoption of the Sustainable City Plan and the Climate Action and Adaptation Plan. The updated Sustainable City Plan reflects best practices for data informed decision making and municipal sustainability. Council also adopted aggressive goals to improve sustainability and resiliency by committing to achieve Water Self-Sufficiency by 2023, Zero Waste by 2030 and Carbon Neutrality by 2050 or sooner. The Sustainable Water Master Plan, Zero Waste Strategic Plan, Bike Action Plan, and Electric Vehicle Action Plan outline strategies to integrate sustainable practices and achieve Council adopted outcomes. These plans and the associated goals have led to investments in water recycling and sourcing local water supplies, enhanced food waste collection programs, procurement of green power, a successful transition to an electric bus fleet, efforts to electrify buildings and the expansion of electric vehicle charging infrastructure.
Council also emphasized the importance of sustainability in planning for the future of the Santa Monica Airport following its expected closure in early 2029.
The Budget includes staffing enhancements to support additional compliance and testing requirements for the Sustainable Water Requirement permit to support water recycling and groundwater recharge operations, enforce urban runoff policies, and to enhance water conservation activities, and programs and operational changes to achieve zero waste. (also addresses the Clean & Safe priority) Staff is also added to support the BBB’s recruitment and training efforts to restore bus service to pre-pandemic levels in order to provide transit services to the community. This is critical as the department as well as other transit agencies nationally are facing a shortage of Motor Coach Operators.
FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE
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The COVID-19 pandemic impacted the City and City operations in unimaginable ways. The rapid loss of revenues resulted in drastic reductions in programs and services that are still being felt to this day. In a highly constrained environment, this Budget harnesses newly adopted tax measures and reallocates existing resources to expand existing programs to achieve vital restorations that will not only nurture our economic recovery but ensure that programs serving our youth, families, and seniors are expanded to meet community need. Investments proposed in this Budget not only align with City Council priorities but are filtered through an equity lens to ensure that resources are directed to where they are most needed and serving vulnerable populations. Even though we continue to be in a state of recovery, it is moderating as reflected in this Budget, demonstrating a tremendous amount of work ahead and positive steps forward in advancing City Council’s priorities addressing community needs and stabilizing the organization.
Respectfully submitted,
David White
City Manager
FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE
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Tengo el placer de presentar el Presupuesto Bienal Propuesto para el año fiscal 2023-25 de la ciudad de Santa Mónica.
El presupuesto bienal propuesto para el año fiscal 2023-25 (el Presupuesto) se prepara en el contexto de nuestra salida de un período de reestructuración significativa debido a la pandemia de COVID-19, mientras que también hemos estado trabajando para abordar pasivos sin precedentes. A pesar de estos retos, la ciudad se está recuperando y reconstruyendo, como demuestran las importantes nuevas inversiones en toda nuestra comunidad.
Además, mediante el cultivo de nuevas fuentes de ingresos a través de iniciativas de asociación y el apoyo de los votantes a nuevas medidas fiscales, este Presupuesto tiene la capacidad de asignar recursos para abordar las prioridades del Consejo de la Ciudad y de la comunidad -seguridad pública, programas y servicios para hacer frente a la falta de vivienda y servicios comunitarios vitales para los jóvenes, las familias y las personas mayorespara garantizar que la comunidad siga avanzando.
Estas inversiones son sólo una parte de la historia. Santa Mónica es una comunidad vibrante y seguirá prosperando mirando hacia el futuro y avanzando en proyectos como la planificación del futuro del aeropuerto de Santa Mónica, ampliando la oferta cultural, centrando nuestro trabajo en la sostenibilidad y esforzándonos por conseguir una comunidad en la que todos en Santa Mónica tengan la oportunidad de prosperar.
El Presupuesto establece el plan de gestión y de gastos de la Ciudad para los dos años que van del 1 de julio de 2023 al 30 de junio de 2025.
El año fiscal 2023-25 es el primer período presupuestario bienal para el período de emergencia después de COVID-19. Este Presupuesto establece un plan para reconstruir y mejorar los servicios en un contexto de continua incertidumbre económica impulsada por la escasez de mano de obra, las interrupciones en la cadena de suministro, la inflación y los conflictos mundiales a nivel nacional e internacional, además de los importantes pasivos y el creciente mantenimiento aplazado a nivel local. Para ayudar a garantizar que este Presupuesto concentra los recursos de la Ciudad donde más se necesitan, el Consejo Municipal celebró un Taller del Consejo el 11 de marzo de 2023 para determinar sus prioridades y proporcionar orientación sobre las partidas presupuestarias clave. El Presupuesto refleja los resultados de ese Taller, incluyendo la restauración de servicios clave de la Ciudad y la realización de inversiones en cinco áreas prioritarias:
• Hacer frente a la falta de vivienda.
• Limpieza y seguridad en Santa Mónica
• Cultivar la recuperación económica, ampliar la oferta cultural y para la comunidad • Justicia racial, equidad y diversidad social
• Comunidad sostenible y conectada
Estas prioridades continúan la necesaria labor de ayudar a nuestra comunidad a recuperarse de la pandemia de COVID-19 y de sus repercusiones económicas y sociales, pero también centran el trabajo en garantizar la resiliencia y la equidad de Santa Mónica a largo plazo.
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Se prevé que los flujos de ingresos del Fondo General de la Ciudad alcancen su trayectoria anterior a la pandemia en cinco años. Mientras tanto, los menores niveles de ingresos están limitando nuestra capacidad para apoyar un restablecimiento completo de los servicios a los niveles anteriores a la pandemia. Las tendencias de los viajes globales, las compras al por menor y el trabajo híbrido y a distancia hacen que Santa Mónica deba adaptar su economía local para el futuro. La ciudad ha dado pasos clave para adaptar la zonificación y las leyes para ayudar en esta transición mientras las empresas locales realizan inversiones clave en hoteles, hospitales y viviendas que harán que la economía de Santa Mónica sea resistente a largo plazo. El Presupuesto también refleja nuevas fuentes de ingresos y oportunidades de asociación que fortalecen Santa Mónica. • La Medida CS, adoptada en 2022, aumenta el Impuesto de Ocupación Transitoria de la Ciudad (Impuesto Hotelero) en un punto porcentual para las estadías en hoteles y en tres puntos porcentuales para las estadías en casas compartidas. Se prevé que este impuesto genere aproximadamente 5,0 millones de dólares anuales durante el periodo bienal. Aunque se trata de un impuesto de ingresos generales, lo que significa que no está restringido en cuanto al uso del mismo, el sondeo comunitario realizado en previsión de que el Consejo aprobara la medida para la votación mostró una necesidad urgente que tenemos de nuevos fondos para hacer frente a los impactos de la falta de vivienda y para mejorar la seguridad pública. La propia medida, que recibió el 73% de los votos, señalaba la intención de que estos fondos se destinaran a abordar el problema de las personas sin hogar, a mejorar los tiempos de respuesta a las emergencias del 911 y la protección policial de los vecindarios así como a mejorar la seguridad y la limpieza de nuestros espacios públicos. • La Medida GS, adoptada en 2022, es una medida electoral de iniciativa ciudadana que promulga un Impuesto de Transferencia Documental de tercer nivel de un 5% adicional para las ventas de propiedades de 8 millones de dólares o más, con ingresos restringidos para financiar la prevención de la falta de vivienda, proyectos de viviendas asequibles y escuelas. Se prevé que esta medida podría generar aproximadamente 50 millones de dólares anuales. La naturaleza volátil de esta fuente de ingresos, basada en las ventas de propiedades de muy alto valor, y su administración y programación, requieren un horizonte más largo para la programación de estos fondos. A pesar de eso, la planificación y los ajustes organizativos pueden comenzar ya en el año fiscal 2023-24 para lo que probablemente será una estrategia de aplicación plurianual de la Medida GS. • Los votantes también aprobaron en 2022 la Medida HMP, que impone un impuesto adicional a los minoristas de cannabis y otros negocios de cannabis con licencia. Es necesario seguir trabajando para enmendar el Código Municipal para permitir un aumento de los establecimientos minoristas relacionados con el cannabis y no se prevén ingresos durante el próximo periodo bienal.
• El trabajo de la ciudad con socios privados, públicos y sin fines de lucro, así como con agencias que conceden subvenciones, está contribuyendo aún más a importantes inversiones en nuestra comunidad y proporcionando un enfoque más diversificado para aprovechar los recursos durante un periodo de interrupción de nuestras fuentes tradicionales de ingresos.
• La ciudad ha firmado recientemente un acuerdo con Big Outdoor para instalar quioscos digitales de orientación en zonas comerciales que proporcionarán a nuestras pequeñas empresas una forma de conectar con clientes potenciales y generarán ingresos adicionales para la ciudad, incluido un fondo anual de Diversidad, Equidad e Inclusión (DEI).
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• La ciudad prosigue su colaboración con el Departamento de Salud Mental (DMH) del condado de Los Ángeles para poner en marcha un programa piloto de lanzamiento de una camioneta de transporte terapéutico dotada de personal del DMH en la ciudad de Santa Mónica. La camioneta responderá conjuntamente a las llamadas de emergencia entrantes relacionadas con, o se presume que involucran, personas no combativas y médicamente estables que experimentan una crisis de salud mental o conductual. El programa también ofrece una alternativa de apoyo y acelerada a las necesidades de transporte de los clientes con enfermedades mentales agudas que requieren cuidados adicionales. El programa está diseñado para aliviar los recursos del personal de emergencias para que se centren en otras prioridades de salud y seguridad. Además, los profesionales clínicos del DMH trabajan junto con los equipos del Programa de Enlace para Personas sin Hogar de la ciudad para localizar, identificar y proporcionar ayuda a las personas sin hogar.
• La ciudad estableció We Are Santa Monica Fund en 2021 para proporcionar una vía para las donaciones privadas destinadas a apoyar a la comunidad de Santa Mónica, incluido el apoyo a la recuperación económica, la equidad racial y la diversidad social, los vecindarios saludables y los vecinos necesitados. El Fondo es un socio importante de la ciudad para involucrar a la comunidad y a las empresas locales en la prestación de apoyo adicional en estas áreas. • Con la ayuda de las nuevas subvenciones recibidas en la segunda mitad del año fiscal 2022-23, los trabajos avanzan en el programa MicroGrid de modernización de City Yards y en los proyectos Streetscape del corredor del vecindario de Lincoln (LiNC). Los fondos adicionales significativos de subvenciones estatales y federales y los acuerdos de desarrollo recibidos a fines del año fiscal 2022-23 promoverán el trabajo de la Ciudad para apoyar las necesidades de salud conductual de los residentes vulnerables y la electrificación de nuestros autobuses. Y el personal sigue solicitando subvenciones para mejorar nuestros servicios en los ámbitos de la vivienda asequible, los servicios para personas sin hogar, la seguridad pública, los parques, las bibliotecas y la sostenibilidad.
A medida que vayamos avanzando en nuestro camino hacia la recuperación, nos basaremos en el uso de criterios para gestionar nuestro trabajo, asegurándonos de que los programas que ofrecemos abordan de forma eficaz y eficiente nuestras prioridades.
CONTEXTO FISCAL
El presupuesto global propuesto para la ciudad de Santa Mónica es de 740,9 millones de dólares en el año fiscal 2023-24, y de 746,4 millones en el año fiscal 2024-25. Esto refleja las actividades operativas y de capital de 30 fondos a través de 15 departamentos y aproximadamente 2.097 puestos permanentes y temporales equivalentes a tiempo completo.
El mayor componente del presupuesto corresponde al Fondo General, que se financia principalmente con ingresos fiscales y presta servicios compartidos por igual por todos los miembros de la comunidad y los visitantes. El presupuesto del Fondo General asciende a 436,9 millones de dólares en el año fiscal 2023-24, y a 458,6 millones de dólares en 2024-25.
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El presupuesto de toda la ciudad incluye también varios fondos empresariales y de ingresos especiales, fondos que se destinan a usos específicos o que se basan en la utilización de recursos por parte de particulares. • Entre los fondos más importantes que contribuyen a las operaciones de la ciudad, los Fondos de Agua, Aguas Residuales, Big Blue Bus (BBB), Aeropuerto y Cementerio cuentan con ingresos suficientes para cubrir las necesidades operativas y de capital durante el periodo bienal. Si el Consejo aprueba las nuevas tasas en junio de 2023, el fondo de Recuperación y Reciclaje de Recursos (RRR) seguirá siendo autosuficiente durante el periodo bienal, además de mejorar los servicios ofrecidos. • Se prevé que los Fondos Recreativos del Muelle y de la Playa requieran subvenciones y anticipos durante el periodo presupuestario bienal por un total aproximado de 8,7 millones de dólares. Las continuas restricciones de ingresos, incluido el cierre parcial del estacionamiento de Pier Deck, y los planes pendientes para ajustar las tarifas de estacionamiento en la playa, están contribuyendo significativamente a la situación. • El Fondo Comunitario de Banda Ancha (CBB), que apoya las operaciones de CityNet, se fusionará con el Fondo General, lo que permitirá una mayor eficacia gracias a un reparto más flexible de los recursos.
El enfoque presupuestario bienal de la ciudad significa que el año fiscal 2023-24 representa el año de excepción para nuestro presupuesto bienal del programa de mejoras de capital (CIP). El presupuesto del CIP para el año fiscal 2023-24 asciende a 104,1 millones de dólares, de los que 13,5 millones representan la parte correspondiente al Fondo General. Antes de la pandemia, el Fondo General asignaba 21 millones de dólares anuales a su CIP. Esta cantidad se redujo a 7,8 millones de dólares en 2020-21 y ha aumentado gradualmente desde entonces. Sin nuevas fuentes de fondos, no hay capacidad para restaurar el presupuesto anual del CIP del Fondo General a 21 millones de dólares hasta el año fiscal 2024-25 como muy pronto. Las cantidades actuales asignadas al CIP no son suficientes para abordar el mantenimiento aplazado de infraestructuras y equipos, la sustitución de tecnología/informática y de la flota, y un enfoque renovado de los servicios comunitarios que se tuvieron que interrumpir en la pandemia, aunque se han programado algunos fondos para iniciar el proceso de planificación de la conversión del aeropuerto en el año fiscal 2023-24. En este momento, un total de 362 millones de dólares en proyectos permanecen sin fondos, y son objeto de seguimiento para su consideración en futuros ciclos de financiamiento. Más del 93% (337 millones de dólares) de la lista de proyectos sin fondos corresponde a solicitudes de recursos del Fondo General, mientras que el 7% adicional (25 millones de dólares) corresponde a solicitudes de infraestructuras para recursos del Fondo del Muelle.
SOSTENIBILIDAD FISCAL
El Presupuesto se nutre de las Previsiones Financieras Quinquenales e informa sobre ellas. Para incluir un programa o servicio en curso en el Presupuesto, debe existir la capacidad de financiar este gasto a largo plazo utilizando ingresos, reservas asignadas o restringidas, o reservas de capital circulante. La previsión del Fondo General muestra unos ingresos que sólo superan ligeramente a los gastos (en aproximadamente 100.000 dólares) sobre una base anual durante el periodo presupuestario. Este saldo positivo refleja la utilización de las reservas de capital circulante a partir del año fiscal 2024-25. Se necesitará capital circulante más allá del año fiscal 2024-25, e incluso con el uso de estas reservas, el personal proyecta actualmente saldos negativos de 0,6 y 1,5 millones de dólares, respectivamente, en 2026-27 y 2027-28. Estos saldos negativos representan el 0,1% y el 0,3% de los ingresos de esos dos años y se sitúan en un nivel que puede gestionarse durante los próximos tres años.
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A 30 de junio de 2022, las reservas no restringidas del Fondo General ascendían al 70% de lo que eran a 30 de junio de 2019.1 Unas reservas sólidas son necesarias para amortiguar la prestación de servicios del impacto de los gastos de emergencia, los pasivos contingentes y la incertidumbre económica. Desde 2020, las demandas sobre estas reservas se han visto agravadas por:
• Prestación de servicios esenciales durante la pandemia de COVID-19. • Pagos de más de 229,8 millones de dólares en acuerdos legales durante los últimos tres años relacionados con acusaciones de abuso sexual por parte de un antiguo empleado.
Pensando en el futuro, la ciudad se encuentra en litigio por una solicitud de transición a las elecciones de distrito. El caso está actualmente a la espera de ser visto en el Tribunal Supremo de California, y si la Ciudad pierde el caso, los impactos financieros para la Ciudad serán elevados. Por último, la Ciudad tiene importantes pasivos de capital que deben ser abordados, incluyendo el reequipamiento sísmico de la Estructura de Estacionamiento 1 con un costo de al menos 13 millones de dólares. La Ciudad ha tomado muchas medidas para reforzar nuestra situación financiera, y el presupuesto del Fondo General para el año fiscal 2023-24 está respaldado por las reservas de un Fondo Pluvial que ascienden al 13% de los gastos corrientes, pero el impacto de estos pasivos financieros limita la capacidad de la Ciudad para hacer frente a las muy necesarias restauraciones de servicios y personal.
POLÍTICAS FISCALES
Las Políticas Fiscales de la Ciudad, incluidas como apéndice en el Presupuesto, promueven la transparencia, la responsabilidad y un marco común para la gestión de los recursos financieros. Al inicio de los cierres de COVID-19, el Consejo suspendió temporalmente o modificó una serie de políticas para proporcionar una mayor flexibilidad en el uso de los fondos. Tres años después, la amplia perturbación que sigue afectando a las economías, junto con un horizonte de recuperación prolongado, exigen una reevaluación de estas políticas.
Pago del pasivo por pensiones no financiado: El 11 de abril de 2023, el Consejo autorizó la suspensión del pago acelerado del pasivo por pensiones no financiado de la Ciudad desde el año fiscal 2022-23 hasta el año fiscal 2027-28, o más tarde, para restaurar una serie de servicios y programas comunitarios como la ampliación del horario de la Biblioteca Principal, la restauración de la capacidad del Programa Juvenil y la restauración de puestos en Planificación y Desarrollo Económico para impulsar las actividades de recuperación económica, entre otras restauraciones. Aunque el pago acelerado de los pasivos no financiados es una herramienta de gestión fiscal prudente, que mitiga los costos de los intereses de los años futuros, la ciudad debe sopesar esta herramienta de gestión fiscal a largo plazo con el estado actual de nuestros servicios comunitarios. La política anterior se adoptó en 2019, cuando los programas de la Ciudad funcionaban a pleno rendimiento, las reservas eran sólidas y el Fondo General tenía capacidad para asumir pagos adicionales de entre 2,5 y 3,5 millones de dólares al año más allá de la contribución anual obligatoria a las pensiones. Hasta ahora, la Ciudad ha realizado pagos adicionales por valor de más de 88 millones de dólares bajo el paraguas de las políticas de pago anticipado, lo que la convierte en líder en este logro entre otros miembros de CalPERS.
1 El 25 de abril de 2023, el Consejo de la Ciudad aprobó acuerdos con los demandantes por un monto de 122,5 millones de dólares para resolver todas las demandas contra la ciudad que surgieron de denuncias de abuso sexual por parte del exempleado municipal Eric Uller. Una parte del acuerdo se cubre con las reservas del Fondo General. Con el ajuste de las reservas utilizadas para este pago, las reservas no restringidas estarían en el 45% de su nivel en el año fiscal 2018-19.
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Paso de previsiones financieras a diez años a previsiones financieras a cinco años: Antes de la pandemia, la Ciudad había pasado a una previsión a diez años para disponer de una ventana de planificación más larga a la hora de abordar proyectos de capital y cambios en las obligaciones de pensiones. Debido a la persistente incertidumbre en muchos elementos que influyen en las condiciones económicas, desde las repercusiones del trabajo a distancia, la inflación, la escasez de mano de obra, los cambios en los viajes y las compras y las interrupciones de la cadena de suministro, el personal propone una reversión permanente a las previsiones quinquenales para mitigar el riesgo de presupuestar utilizando proyecciones de ingresos sin fundamento. El personal seguirá vigilando las tendencias de los costos extraordinarios más allá del periodo de previsión de cinco años.
Eliminación del presupuesto de control de gastos: La presupuestación con control de gastos permitía anteriormente a los departamentos del Fondo General mantener un tercio de los ahorros de su presupuesto operativo no salarial para utilizarlos a discreción del jefe de departamento para cumplir la misión del departamento. Con unos presupuestos extremadamente restringidos en toda la ciudad y las reservas de fondos en un nivel bajo, es prudente y necesario considerar el mejor uso para toda la ciudad de cualquier ahorro.
Contingencia operativa del Fondo General (Fondo de reserva): El 5 de mayo de 2020, el Consejo autorizó al personal a rebajar el nivel de la reserva para imprevistos del Fondo General del 15% de los gastos corrientes al 12,5% para ayudar a equilibrar el presupuesto mientras los ingresos experimentaban graves descensos. Unas reservas sólidas protegen nuestra capacidad para prestar servicios esenciales y conservar los puestos de trabajo durante las emergencias y las fluctuaciones económicas. También son una señal de la salud financiera de la ciudad y fundamentales para mantener la calificación AAA de los bonos de la ciudad. La política fiscal refleja una reconstrucción gradual del Fondo de Reserva, con un nivel de reserva mínimo del 13% para el año fiscal 2023-24, y del 13,5% para el año fiscal 2024-25, alcanzando un nivel de reserva del 15% a tiempo para el Presupuesto Bienal del año fiscal 2027-29.
PRIORIDADES E INVERSIONES COMUNITARIAS
El Presupuesto Bienal Propuesto para el año fiscal 2023-25 incorpora la dirección proporcionada por el Consejo de la Ciudad y los miembros de la comunidad en el Taller del 11 de marzo de 2023, donde el Consejo adoptó cinco prioridades para actuar como base del Presupuesto. Se prevé que las medidas GS y CS generen importantes recursos para resolver problemas hipersensibles y desafiantes. Siguiendo las indicaciones del Consejo, y a la luz de las necesidades y expectativas de la comunidad, el Presupuesto refleja la creación de dos departamentos. Los dos departamentos llevarán adelante la labor del Departamento de Servicios Comunitarios de responder a los retos sociales y económicos a los que se enfrentan los residentes, a la necesidad de sanación y recuperación de la comunidad, y de proporcionar servicios y programas que enriquezcan la vida y ayuden a la gente a prosperar:
• El Departamento de Vivienda y Servicios Humanos se convertiría en el punto de organización de los servicios y programas para personas sin hogar, lo que permitiría a la ciudad poner en marcha los programas y servicios resultantes de las Medidas CS y GS, abordar las recomendaciones del Estudio sobre Personas sin Hogar del auditor interno y proporcionar un enfoque central y liderazgo en una serie de programas de vivienda, educación y servicios sociales. Este departamento también administraría las inversiones para apoyar a las poblaciones vulnerables a través de la gestión del Programa de Subvenciones para Servicios Humanos
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(HSGP). Se realizarían cambios menores en las especificaciones de los puestos de trabajo existentes para reflejar el nombre, el alcance y la estructura del nuevo departamento. Se restablecería un puesto de Gestor de Vivienda, que existía antes de 2020, para supervisar las actividades de producción y conservación de viviendas financiadas por el Fondo Fiduciario de Vivienda y los programas de vales de vivienda y colaborar con el Gestor de Servicios Humanos para desarrollar y aplicar iniciativas de prevención de la falta de vivienda. • El Departamento de Recreación y Artes crearía capacidad y liderazgo sobre las oportunidades de asociación recreativa abordando los conflictos entre la demanda y la capacidad de las instalaciones recreativas y elevando el trabajo de las artes y los asuntos culturales en la revitalización económica y la equidad social. El departamento permitiría centrarse en el futuro de los edificios Miles Memorial Playhouse y Camera Obscura, replantear los murales del Consejo de la Ciudad, potenciar la Beach House como destino turístico y elemento clave de la marca frente al mar de Santa Mónica, además de gestionar las subvenciones del Programa de Apoyo Organizativo. Se añadirían 3,0 ETC incluyendo un Director, un Oficial de Servicios Administrativos y un Asistente Administrativo Ejecutivo.
Por último, el Consejo proporcionó una primera orientación sobre una serie de propuestas de restablecimiento y mejora del presupuesto del Fondo General. En el presupuesto se incluyen mejoras adicionales que abordan las prioridades. Muchas de estas restauraciones y mejoras se destacan a continuación según la prioridad a la que más se refieran, aunque muchos programas abordan varias prioridades.
HACER FRENTE A LA FALTA DE VIVIENDA
Evitar que los habitantes de Santa Mónica que tienen una vivienda se queden sin ella y aumentar la oferta de viviendas asequibles, abordar las necesidades de salud conductual de las personas vulnerables y abogar por la capacidad regional para abordar el problema de la falta de vivienda.
El 14 de febrero de 2023, la ciudad declaró una emergencia local en materia de personas sin hogar. En el desarrollo de este Presupuesto, los recursos asignados para abordar el problema de la falta de vivienda están informados por el Elemento de Vivienda 2021-2029 certificado por la Ciudad, un estudio reciente sobre el trabajo de la ciudad para abordar el problema de personas sin hogar (el Estudio sobre personas sin hogar) que fue completado por Moss Adams a finales de 2022, y el enfoque de los Cuatro Pilares de la ciudad para prevenir y abordar el problema de la falta de vivienda que adoptó el Consejo de la Ciudad en marzo de 2019.
El primer paso será la preparación de un Plan Estratégico para Personas sin Hogar (HSP) (Recomendación 1, Estudio sobre Personas sin Hogar). El HSP, que se financiará con fondos de la Medida CS, se basará en el marco de los Cuatro Pilares de la ciudad y establecerá una visión coordinada y sistémica para la ampliación del sistema de respuesta a las personas sin hogar, unos resultados y objetivos mensurables y unas estrategias de acompañamiento.
El proceso para desarrollar el HSP incorporará a los socios comunitarios de Santa Mónica, personas con experiencia vivida de falta de vivienda, proveedores de servicios, agencias de la ciudad y socios de los sectores público y privado para alinearse en torno a una visión clara, un conjunto de resultados e inversiones. Con este plan, la ciudad pretende aumentar la continuidad en un entorno político inherentemente cambiante; mejorar el enfoque en objetivos mensurables; y aumentar la alineación interna y la coordinación regional; todo ello hacia el objetivo de prevenir, acabar y abordar el problema de las personas sin hogar en Santa Mónica.
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El Presupuesto propone restablecer y mejorar la dotación de personal de la Autoridad de la Vivienda (utilizando la Financiación Administrativa de la Sección 8) para gestionar y administrar el mayor tamaño y capacidad de los programas de vales de la Autoridad de la Vivienda, que han crecido significativamente en los últimos años. Los 3,5 puestos ETC adicionales tendrán capacidad para llevar a cabo la comprobación de la elegibilidad de los solicitantes en la lista de espera de vales para inquilinos, trabajar con un número de casos significativamente mayor, hacer un uso más eficiente de la autoridad y el financiamiento federal de vales y mejorar el servicio al cliente para inquilinos y proveedores de vivienda (propietarios).
La Ciudad sigue invirtiendo en Equipos Multidisciplinares (EMD) que son gestionados por The People Concern e incluyen el Equipo Multidisciplinar de Personas Sin Hogar en la Calle (HMST) y el Equipo Ciudad + Condado + Comunidad (C3). Los equipos están formados por médicos y profesionales de la salud conductual autorizados que pueden prestar servicios inmediatos e intensivos a las personas que se encuentran en la calle mientras esperan a que se les ubique en un refugio. Estos equipos trabajan en colaboración con los equipos del Programa de Enlace para Personas sin Hogar (HLP) del SMPD para debatir y abordar las necesidades de las personas sin hogar (PEH) más necesitadas de la ciudad. La espera para conseguir una vivienda puede ser larga, por lo que necesitamos ofrecer más servicios para apoyar a las PEH allí donde se encuentren y mientras esperan. En apoyo de esta misión, en este Presupuesto proponemos ampliar este programa para incluir un tercer equipo que se iniciará en el año fiscal 2023-24 (Recomendación 18, Estudio sobre las personas sin hogar). El actual equipo C3 cubre la playa y el centro de la ciudad, y el equipo adicional cubriría el resto de la ciudad. La ampliación del programa se financiará con fondos de la Medida CS.
La ciudad se asociará con equipos de divulgación del Salvation Army que responderán a las solicitudes del equipo HLP del SMPD y otros sobre el terreno. Esto proporcionará otro recurso para trabajar con los clientes y conectarlos inmediatamente con los servicios disponibles. Los equipos de extensión del Ejército de Salvación esperan orientar y proporcionar apoyo a los clientes que se encuentran en una crisis inmediata, con la intención de sacar al cliente de la calle ese mismo día, al tiempo que trabajan para encontrar una solución a más largo plazo. El financiamiento de este programa procede del Fondo de Innovación del Consejo de Gobiernos de las Ciudades del Lado Oeste del Condado de Los Ángeles.
Los fondos de la Medida CS, así como los fondos de la asignación federal, nos permitirán avanzar en el rediseño del programa de viviendas provisionales SAMOSHEL para dar cabida a las admisiones las 24 horas, dando opciones adicionales para la admisión fuera de horario y facilitando los transportes de SMPD para las personas que experimentan la falta de vivienda y los problemas de salud conductual no urgentes (Recomendación 15, Estudio sobre la falta de vivienda).
Utilizando los fondos de la Medida CS, también proponemos ampliar la plantilla del Departamento de Policía. El aumento total de 7 ETC -6 oficiales de policía y 1 sargento- permitirá al Departamento de Policía ampliar su Programa de Enlace con Personas sin Hogar (HLP) para desplegarse siete días a la semana. El programa funciona actualmente cuatro días a la semana (Recomendación 15, Estudio sobre Personas sin Hogar). Anticipando el largo periodo de contratación y formación para los nuevos puestos del equipo HLP, a corto plazo, estos recursos de la Medida CS se utilizarán para continuar el trabajo del Equipo de Respuesta de Acción Dirigida (DaRT), un equipo multidepartamental que abordaes áreas de preocupación comunitaria en la Playa, el Muelle y el Centro de la ciudad, y para establecer un centro de inteligencia criminal en tiempo real.
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LIMPIEZA Y SEGURIDAD EN SANTA MÓNICA
Crear un ambiente caracterizado por espacios públicos y barrios limpios y seguros, incluidos parques para actividades recreativas y de ocio.
Los fondos de la Medida CS se utilizarán para mejorar la seguridad y la limpieza de nuestros espacios abiertos, además de las ampliaciones de servicios y tecnología en el Departamento de Policía que se señalan en la prioridad "Hacer frente a la falta de vivienda" (es decir, la ampliación del Equipo del Programa de Enlace con las Personas sin Hogar y DaRT). Durante este periodo presupuestario, la Ciudad desarrollará planes y una estrategia para poner en marcha un centro de delincuencia en tiempo real, el Centro Analítico en Tiempo Real de Santa Mónica (S.M.A.R.T Center), que recopilará y sintetizará datos en tiempo real de una serie de tecnologías, incluidas las cámaras de circuito cerrado de televisión (CCTV), un sistema de gestión de video, lectores automáticos de placas (ALPR), sistemas aéreos no tripulados (UAS o drones), Live911, geolocalización de la seguridad pública del SMPD, personal jurado y profesional para dirigir el enfoque de los recursos policiales.
Los fondos de la Medida CS permiten a la Ciudad continuar y ampliar los programas de Limpieza y Seguridad financiados anteriormente de forma puntual. Entre ellos se incluye el programa ampliado de servicios de seguridad en las estructuras de estacionamiento del centro y en el muelle, que pasarán a ser programas permanentes, al igual que el mantenimiento de los elementos de los parques Ken Genser y Tongva. Además, los fondos de la Medida CS se destinan a los siguientes esfuerzos:
• Se ampliarán las inversiones en mantenimiento de espacios públicos, incluyendo mejoras para garantizar que las actividades de limpieza de mayor riesgo se realizan de forma segura, utilizando un equipo adicional, especializado y esfuerzos de limpieza de mayor frecuencia centrados en los desechos y escombros generados por personas sin hogar (Recomendación 10, Estudio sobre las Personas sin Hogar).
• Se aumentarán las frecuencias de poda de en zonas de mucho tráfico, lo que garantizará unas condiciones más seguras para el público y mejorará la estética de nuestros espacios públicos. • La mejora de la supervisión y la aplicación de la ordenanza de viviendas compartidas de la ciudad ayudará a mitigar los impactos que tales viviendas tienen en los vecindarios residenciales y en las zonas que no suelen estar sujetas a los impactos de las actividades comerciales.
El programa piloto de dos años de la Unidad de Respuesta Comunitaria (CRU) concluirá a finales del año fiscal 2022-
23. A lo largo del periodo piloto, el Departamento de Bomberos de Santa Mónica (SMFD) evaluó continuamente la eficacia de la CRU y su papel en la prestación de Servicios Médicos de Emergencia (EMS) específicamente relacionados con los PEH y las personas en riesgo de quedarse sin hogar. Durante este periodo de evaluación, el Cuerpo de Bomberos identificó oportunidades para mejorar el programa a través de un enfoque más estratégico de la prestación de EMS. Para maximizar la capacidad de respuesta de una futura CRU y adoptar un enfoque más proactivo en la atención a nuestras poblaciones más vulnerables, el Cuerpo de Bomberos propone reasignar los fondos dedicados actualmente a la CRU para añadir un Jefe de Batallón de EMS y un gestor de casos contratado:
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• El Jefe de Batallón de EMS abordará las necesidades cambiantes de EMS, incluida la paramédica comunitaria, los nuevos protocolos de respuesta, los problemas con la capacidad de las ambulancias, el aumento de las llamadas de baja agudeza y el incremento de los tiempos de descarga de los pacientes de las ambulancias que repercuten en el retorno puntual de las unidades al servicio. • Un gestor de casos especializado trabajará con las personas que más utilizan el sistema de 9-1-1, incluida la asistencia en el lugar de los hechos y la navegación hasta los servicios adecuados. La creciente lista de clientes y sus necesidades especializadas ha superado la capacidad y los conocimientos de los bomberos.
El Departamento de Transporte propone un Programa de Seguridad en el Tránsito consistente en guardias de seguridad desarmados (Oficiales de Seguridad en el Tránsito) que serán asignados para viajar a bordo de los autobuses y realizar patrullas a pie en las paradas de autobús de BBB. Los TSO podrán apoyar a los operadores de autocares en la prestación de servicios de atención al cliente a los pasajeros, ayudar con los disturbios relacionados con la seguridad, servir como elemento disuasorio de la delincuencia y los comportamientos no deseados, y apoyar los esfuerzos de la ciudad para hacer frente a la falta de vivienda. Este programa se financia con fondos del Big Blue Bus.
Las nuevas tasas de residuos sólidos permitirán a la Ciudad cumplir con la nueva ley estatal de reciclaje obligatorio de orgánicos (SB 1383), aumentar las frecuencias de limpieza de callejones, mejorar los servicios de vertido ilegal y recogida de artículos voluminosos adoptando un enfoque proactivo, apoyar las limpiezas comunitarias organizadas por voluntarios, barrer el creciente inventario de carriles protegidos para bicicletas de la Ciudad y continuar con sus esfuerzos de sostenibilidad para alcanzar el objetivo del Consejo de la Ciudad de Cero Residuos para 2030. (también aborda la prioridad de Comunidad Sostenible y Conectada) CULTIVAR LA RECUPERACIÓN ECONÓMICA, AMPLIAR LA OFERTA CULTURAL
Y PARA LA COMUNIDAD
Cultivar las oportunidades y la recuperación económicas e invertir en servicios y programas comunitarios y culturales para todos los miembros de la comunidad, centrándose en ampliar las oportunidades para los jóvenes, los adolescentes y las personas mayores.
Como se ha señalado anteriormente, un nuevo Departamento de Ocio y Artes crearía capacidad y liderazgo para centrarse en esfuerzos e iniciativas que construyan comunidad y hagan avanzar una agenda centrada en las artes y los asuntos culturales, que es esencial para nuestra revitalización económica.
El Presupuesto propone el restablecimiento de las horas de servicio en nuestras bibliotecas y la continuación de las horas restablecidas el año pasado con fondos únicos. Las horas adicionales activarían la Biblioteca Principal los sábados, ampliarían el horario nocturno en todas las sedes abiertas (de lunes a jueves) hasta las 8 p.m., y abrirían la Biblioteca Principal una hora antes (de lunes a jueves) a las 10.00 a.m. También se ampliará la programación para mayores y familias en la Biblioteca Principal y en las sucursales. El personal adicional no sólo podrá proporcionar el servicio de atención al cliente y la experiencia en investigación para nuestros visitantes, sino que ampliará la
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creatividad y el volumen de nuevos y preciados programas, como las horas del cuento, la ayuda tecnológica y los eventos literarios. Los fondos de horas adicionales son posibles gracias a la reasignación de fondos de la iniciativa de pago acelerado del pasivo por pensiones no financiadas.
El restablecimiento parcial de los programas de servicios directos de CREST, la Liga de Actividades Policiales (PAL) y el Parque de la Avenida Virginia (VAP) estabilizará y garantizará una estructura de personal coherente en todos los programas juveniles que atienden a las poblaciones más vulnerables de la comunidad, incluido el Programa de Almuerzos de Verano. Los programas de servicios directos de la ciudad ofrecen una programación estructurada fuera del horario escolar, como actividades de enriquecimiento y apoyo académico, como prolongación de la jornada escolar y hasta bien entrada la noche en apoyo de las familias trabajadoras y con bajos ingresos. Los programas después de la escuela son un servicio esencial para la comunidad y proporcionan a las familias cargadas de alquiler el cuidado y la supervisión necesarios para los niños. Con este restablecimiento parcial, los programas de servicios directos pueden aumentar las inscripciones entre 480 y 500 jóvenes para una participación total prevista de más de 2.200 jóvenes atendidos. El financiamiento de esta restauración resulta de la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.
Continuación del apoyo financiero de la Ciudad al programa Club de patio de recreo del distrito escolar dirigido por un socio sin fines de lucro que ofrece tiempo de juego supervisado después de la escuela en los patios de las escuelas primarias, utilizando los recursos generados por la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.
La continuación del programa El arte de la recuperación que apoya la producción de arte público gratuito y la programación y eventos culturales. Según este modelo, los artistas, las organizaciones artísticas y los grupos comunitarios reciben financiamiento y apoyo para producir actos públicos. Los eventos impulsan la recuperación económica, sirven a grupos comunitarios de toda la ciudad y proporcionan apoyo financiero a un grupo diverso de artistas, productores culturales y socios comunitarios. Los recursos para este programa proceden de la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.
Creación de un nuevo costo que cubra el Programa de Pickleball, con personal dedicado que organizará la programación y el juego abierto, proporcionará recomendaciones sobre políticas y tarifas y se encargará de la supervisión general del programa.
Restauración de 15 horas semanales más en el Gimnasio y Sala de Fitness del Parque Memorial y 20 horas semanales adicionales de alquiler de campos, con los costos cubiertos por los ingresos adicionales del programa.
Esto proporcionará a los usuarios del parque acceso a los baños interiores durante las mañanas de los días laborables.
Y la reintroducción de la muy solicitada Sala de Conferencias del Centro de Natación para los miembros de la comunidad y los grupos de permisos.
La introducción de programas especializados que cubren los costos, incluidas las clases de certificación de socorristas, en la nueva instalación acuática de la escuela preparatoria de Santa Mónica ofrecerá clases destinadas a desarrollar las habilidades acuáticas de los participantes que aspiran a convertirse en socorristas y servirá como programa de alimentación para Santa Monica Aquatics y los futuros socorristas.
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Restauración permanente de la Programa de subvenciones vecinales, utilizando fondos reasignados del pago del pasivo de pensiones no financiado de la Ciudad, que proporcionará una subvención de 7.000 dólares a cada uno de los siete grupos vecinales de la Ciudad.
Establecer un Fondo de ayuda a las pequeñas empresas y de mejora de los arrendatarios que proporcionará préstamos renovables o subvenciones y asistencia técnica a las empresas más necesitadas. El Fondo incluirá una asignación continua de 100.000 dólares del Fondo General (procedentes de fondos reasignados para el pago de obligaciones de pensiones no financiadas) y una cantidad única de 50.000 dólares procedentes de la asignación de la Subvención en Bloque para el Desarrollo Comunitario (CDBG) de la ciudad.
El restablecimiento de puestos clave en el Departamento de Desarrollo Comunitario reforzará la labor de recuperación económica. Un planificador de experiencia trabajará en la agilización de los procesos de concesión de permisos y en la aclaración de los requisitos para obtenerlos en el sitio web de la ciudad, dirigirá la actualización del Programa Costero Local, que agilizará aún más la concesión de permisos, y actuará como enlace de la ciudad con la Comisión Costera de California para resolver solicitudes de permisos complejas. Un administrador de desarrollo económico se centrará en la cartera inmobiliaria de la ciudad para maximizar los ingresos, racionalizar las directrices de arrendamiento y proporcionar apoyo para llevar a cabo los proyectos de recuperación económica de la ciudad, incluida la incubadora de la cocina comunitaria de VAP, las iniciativas de contratación local, el apoyo a las pequeñas empresas y las vías de emprendimiento para las empresas de minorías étnicas. Estas inversiones se financiarán con fondos de amortización reasignados.
El personal emprenderá una modernización estratégica del programa del Impuesto sobre Licencias Comerciales de la ciudad y presentará una ordenanza actualizada a los votantes de la ciudad en 2024 con el objetivo de fomentar la inversión y la innovación, ayudar a las empresas de Santa Mónica a repuntar y posicionar a la ciudad para gravar de forma equitativa y justa a las empresas existentes y emergentes para apoyar los servicios esenciales. También instituiría mejoras que promoverían el crecimiento empresarial y se alinearían con la prioridad de la ciudad de cultivar oportunidades económicas equitativas e inclusivas para las comunidades tradicionalmente desatendidas, incluidos los negocios propiedad de minorías y las microempresas (also addresses Racial Justice, Equity & Social Diversity priority)
La Ciudad pondrá en marcha un programa que ofrezca tarifas reducidas de Recursos, Reciclaje y Recuperación para los hogares con bajos ingresos que cumplan los requisitos con la adopción de nuevas tarifas de residuos sólidos, utilizando fondos de amortización reasignados (también aborda la prioridad de Justicia Racial, Equidad y Diversidad Social)
JUSTICIA RACIAL, EQUIDAD Y DIVERSIDAD SOCIAL
La ciudad de Santa Mónica reconoce los efectos del racismo y la discriminación generacionales e institucionales, y sus consecuencias, que siguen afectando a nuestros residentes y empresas. Estas lecciones de nuestra historia no pueden ser ignoradas. La ciudad está comprometida con el avance de la equidad racial y la diversidad social para mejorar el bienestar de las personas que viven, trabajan, aprenden, juegan y hacen negocios en nuestra ciudad y crear una comunidad donde las diferencias en los resultados de la vida no puedan predecirse por raza, clase, género, discapacidad u otras identidades. Todos en Santa Mónica deben tener la oportunidad de prosperar.
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La Ciudad ha integrado la diversidad, la equidad, la justicia y la inclusión en su trabajo en todos los departamentos.
El Plan de Ciudad Sostenible de la ciudad incluye métricas en torno a la diversidad social y la equidad y el Proyecto de Bienestar de la Ciudad inició el trabajo de la ciudad con la Alianza Gubernamental sobre Raza y Equidad (GARE) y emprendió proyectos y formaciones clave para ayudar a cerrar la brecha de la equidad. Interrumpido por la pandemia de COVID-19 y la reestructuración de la ciudad, el Equipo de Diversidad, Equidad e Inclusión de la ciudad trata de retomar estos esfuerzos, involucrar a las diferentes comunidades y trabajar para cerrar las brechas de equidad en la propiedad económica, la educación, la salud y el bienestar y otras áreas que afectan a la calidad del bienestar de todos.
Como parte del acuerdo de franquicia de Out of Home Wayfinding, el franquiciado, Big Outdoor, ha acordado devolver el dos por ciento de sus ganancias a la Ciudad. En el taller del 11 de marzo, el personal recibió instrucciones para asignar esta parte de los fondos (aproximadamente entre 100.000 y 250.000 dólares al año a partir del año fiscal 2025-2026) a un Fondo de equidad que pueda utilizarse para apoyar el trabajo de la ciudad en favor de la equidad.
También se sigue trabajando en las siguientes áreas:
• Language Access – aplicación de la Instrucción Administrativa de Language Access, ampliación de los servicios de traducción en tiempo real de la ciudad y adquisición de equipos de asistencia auditiva para las reuniones públicas.
• Reframe – Continuación del proyecto de la ciudad para recontextualizar los murales, así como un esfuerzo para desarrollar un reconocimiento de la tierra de Santa Mónica en colaboración con las comunidades nativas americanas locales.
• Comité de Equidad Racial – Utilizar los recursos existentes para apoyar el desarrollo profesional de nuestros Responsables de Equidad e Inclusión en las áreas de diversidad, equidad e inclusión como principios de la administración pública para ayudarles a tener un mayor impacto en su trabajo y desarrollar futuros líderes con una comprensión integral de cómo la DEI informa su trabajo.
El Presupuesto incluye la continuación del Programa de becarios de oficios (TIP). Se trata de un programa que abarca muchas de las operaciones de la ciudad y que se centra en apoyar y capacitar a los jóvenes y adultos vulnerables de Santa Mónica que se enfrentan a barreras para el empleo, que pueden incluir la implicación con el sistema de justicia penal, la salida de la libertad condicional, o no haber obtenido un diploma de escuela preparatoria o GED. En particular, TIP ha atendido a jóvenes de color, siendo los jóvenes afroamericanos (33%) y latinos (63%) el 96% de los participantes desde 2015. Para muchos participantes, el programa se ha convertido en un vehículo hacia la estabilidad personal, social y económica. Desde 2015, un total de 27 becarios de oficios han participado en el programa. 19 graduados del TIP han conseguido con éxito un empleo a tiempo completo en los oficios, y 10 de ellos han adquirido puestos permanentes a tiempo completo en la ciudad.
El Presupuesto incluye los fondos para permitir una opción de reunión pública híbrida para las reuniones que tengan lugar en las Cámaras del Consejo y en la sala de conferencias del Instituto Santa Mónica (SMI) en la Estructura de Estacionamiento del Centro Cívico. Este modelo aprovecha los cambios en la estructura de las reuniones que permitirían que todos los comentarios del público y las audiencias públicas se produjeran al principio de la reunión para mantener al mínimo los costos adicionales de personal. El costo se cubre con fondos de pago reasignados.
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MENSAJE DEL ADMINISTRADOR MUNICIPAL
proporcionará un punto de contacto para las solicitudes de adaptaciones y las preguntas del público y dirigirá las iniciativas de la Ciudad para garantizar que las instalaciones cumplen la normativa de la Ley sobre Estadounidenses con Discapacidades (ADA).
Para garantizar que todos los vendedores y proveedores de servicios tengan oportunidades viables significativas de competir y participar en la adquisición de bienes y servicios por parte de la ciudad, esta llevará a cabo un estudio de disparidad para explorar las barreras actuales a la equidad e inclusión de las prácticas de adquisición y contratación de la ciudad, diseñará un plan para implementar cambios que respondan a los hallazgos del estudio de disparidad y creará un marco estructural para la educación, divulgación y apoyo a los vendedores.
COMUNIDAD SOSTENIBLE Y CONECTADA
Garantizar que las políticas y los programas de la Ciudad mejoren nuestros recursos, prevengan y remedien los daños al entorno natural y a la salud humana, y beneficien el bienestar social y económico de la comunidad por el bien de las generaciones actuales y futuras.
Las prácticas sostenibles están integradas en los programas, políticas y operaciones de toda la ciudad. Una parte significativa del trabajo de la ciudad que aborda la prioridad de Sostenibilidad está financiada por los Fondos Empresariales de la ciudad, incluidos los Fondos de Agua, Aguas Residuales, Recuperación de Recursos y Reciclaje y Big Blue Bus, que han realizado inversiones estratégicas y cambios operativos para avanzar en los resultados de sostenibilidad.
El Consejo estableció objetivos de sostenibilidad significativos tanto para las operaciones municipales como para la comunidad con la adopción del Plan de Ciudad Sostenible y el Plan de Acción y Adaptación Climática. El Plan de Ciudad Sostenible actualizado refleja las mejores prácticas para la toma de decisiones basada en datos y la sostenibilidad municipal. El Consejo también adoptó objetivos agresivos para mejorar la sostenibilidad y la capacidad de recuperación comprometiéndose a lograr la Autosuficiencia Hídrica para 2023, Cero Residuos para 2030 y la Neutralidad de Carbono para 2050 o antes. El Plan Maestro de Agua Sostenible, el Plan Estratégico de Residuos Cero, el Plan de Acción para la Bicicleta, y el Plan de Acción para el Vehículo Eléctrico detallan estrategias para integrar prácticas sostenibles y lograr los resultados adoptados por el Consejo. Estos planes y los objetivos asociados han dado lugar a inversiones en el reciclaje del agua y el abastecimiento de agua local, la mejora de los programas de recogida de residuos alimentarios, la adquisición de energía verde, una transición exitosa a una flota de autobuses eléctricos, esfuerzos para electrificar los edificios y la ampliación de la infraestructura de recarga de vehículos eléctricos.
El Consejo también hizo hincapié en la importancia de la sostenibilidad a la hora de planificar el futuro del aeropuerto de Santa Mónica tras su cierre previsto para principios de 2029.
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Packet Pg. 660 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 29 El presupuesto incluye mejoras en la dotación de personal para apoyar el cumplimiento adicional y los requisitos de ensayo del permiso de Requisito de Agua Sostenible para apoyar las operaciones de reciclaje de agua y recarga de aguas subterráneas, hacer cumplir las políticas de escorrentía urbana y mejorar las actividades de conservación del agua, así como programas y cambios operativos para lograr un nivel cero de residuos. (también aborda la prioridad de limpieza y seguridad)
También se añade personal para apoyar los esfuerzos de contratación y formación del BBB para restablecer el servicio de autobuses a los niveles anteriores a la pandemia con el fin de proporcionar servicios de tránsito a la comunidad.
Esto es crucial, ya que el departamento, así como otras agencias de tránsito a nivel nacional, se enfrentan a una escasez de operadores de autocares.
CONCLUSIÓN
La pandemia de COVID-19 impactó en la Ciudad y en las operaciones de la Ciudad de formas inimaginables. La rápida pérdida de ingresos se tradujo en drásticas reducciones de programas y servicios que aún hoy se dejan sentir.
En un entorno altamente restringido, este Presupuesto aprovecha las medidas fiscales recientemente adoptadas y reasigna los recursos existentes para ampliar los programas existentes con el fin de lograr restauraciones vitales que no sólo alimentarán nuestra recuperación económica, sino que garantizarán que los programas que atienden a nuestros jóvenes, familias y ancianos se amplíen para satisfacer las necesidades de la comunidad. Las inversiones propuestas en este Presupuesto no sólo se alinean con las prioridades del Consejo de la Ciudad, sino que se filtran a través de una lente de equidad para garantizar que los recursos se dirigen allí donde son más necesarios y atienden a las poblaciones vulnerables. Aunque seguimos en un estado de recuperación, esta se está moderando, como refleja este Presupuesto que demuestra una enorme cantidad de trabajo por delante y pasos positivos para avanzar en las prioridades del Consejo de la Ciudad que abordan las necesidades de la comunidad y estabilizan la organización.
Respetuosamente presentado,
David White
Administrador municipal
FY 2023-25 PRESUPUESTO BIENAL PROPUESTO
MENSAJE DEL ADMINISTRADOR MUNICIPAL
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Packet Pg. 661 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
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Packet Pg. 662 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 30 FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
Santa Monica: Populus Felix In Urbe Felici (Fortunate people in a fortunate place) Santa Monica is a beautiful beachside community of 8.3 square miles, situated on the westside of Los Angeles County, about 16 miles from Downtown Los Angeles. It is bordered by the City of Los Angeles on three sides and the Pacific Ocean on the west.
HISTORIC TIMELINE
Santa Monica is home to a mix of commercial districts, residential communities, and recreational and art venues.
Each of Santa Monica’s character-rich neighborhoods – Pico, Wilshire Montana, Ocean Park, Downtown, Sunset Park, North of Montana, and Northeast – has a unique vibe. Recently named by National Geographic as one of the Top "10 Beach Cities in the World" and by TIME as one of the "Best Places to Live," Santa Monica features three miles of Pacific Ocean beaches and the Santa Monica Pier. High-profile global technology and entertainment companies, small entrepreneurial start-ups, restaurants and retail businesses call the City home.
Santa Monica is a full-service city. City departments provide police, fire, a regional transportation network, water, refuse and recycling, streets, parking, planning, building, engineering, free public Wi-Fi, a high-speed fiber optic network, parks, affordable housing, economic development, library, rent control, recreational, cultural, and educational services to the community.
B.C.E. 1542 1769 1790 1821 1875 1886 1909 1917 1945 1979 1989 1994 2016 2017 2020 2020 Indigenous
peoples lived
here for
millennia,
and their
descendants
continue to
inhabit the
area.*
Area called
“Santa
Monica” by
Father Juan
Crespi with
the Gaspar
de Portola
expedition.
Mexico sold
three large land
grants, creating
private ownership
of the local
parcels: Rancho
La Ballona,
Rancho Boca de
Santa Monica,
and Rancho San
Vicente y Santa
Monica.
Santa Monica
Pier was built.
The City of
Santa Monica is
incorporated.
Rent
control
adopted by
voters.
Santa Monica
adopts its
City Charter.
The City
joins the
Governmental
Alliance on
Racial Equity
(GARE)
Local
Emergency
declared in
response to
COVID-19.
City Council
approves
formation of the
Racial Equity
Committee
Juan Rodriguez
Cabrillo drops
anchor in Santa
Monica Bay.
Tongva
relocated
to Mission
San Gabriel
where they
were forced
into labor and
converted to
Christianity.
Col. Robert S.
Baker & Senator
John P. Jones
record a map
for the town of
Santa Monica
and the first lot
was sold for
$300.
Clover Field
airstrip was
established.
In the 1940s,
it housed the
Douglas Aircraft
factory, which
manufactured
military aircraft
for World War II.
Santa Monica
was one of
the first cities
to adopt a
Sustainable
City Plan with
targets.
Third Street
Promenade
opens.
Metro Expo
light rail opens
three new
stations in
Santa Monica.
*Gabrieleno/Gabrielino Tongva and Kizh. In addition, Fernandeño Tataviam, Ventureño/Chumash, Acjachemen (Juaneño), Payómkawichum (Luiseño), and Nicoleño are the names of other groups and tribes of this region.
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Packet Pg. 663 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 31 FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
QUICK FACTS
POPULATION IN SANTA MONICA
AGE DISTRIBUTION IN 2021
1980
80,000 82,000 84,000 86,000 88,000 90,000 92,000 94,000 1990
2000
2010
2021
88,314
86,905
84,084
89,736
91,103
Source: U.S. Census Bureau, Census 2021 American Community Survey
AGE GROUP
0-4 3,365 (3.7%)
5-19 11,239 (12.3%)
20-64 61,490 (67.5%)
65+ 15,009 (16.5%)
Educational Attainment: 71% Bachelor’s Degree or higher Median Household Income: $94,906
Percentage of Homeowners: 31.4%
Percentage of Renters: 68.6%
Households: 45,541
Median Gross Rent: $2,157
Person per Household: 1.96
Median Value of Owner Occupied Housing: $1,582,300
Source: U.S. Census Bureau, 2021 American Community Survey
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Packet Pg. 664 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 32 LOCAL ECONOMY
The City’s economy continues the path to recovery in the aftermath of the COVID-19 global pandemic. The community has made proactive investments to support local businesses, workers, and residents through actions that include adopting permanent outdoor dining and zoning changes to keep businesses open and workers employed; welcoming 14 new business developments planned for downtown; supporting free public art and cultural programming and events through the Art of Recovery program; and adding Planning and Economic Development staffing to support economic development.
While the challenges have been real, Santa Monica has a very robust and diverse economy. Known as “Silicon Beach,” Santa Monica’s businesses are at the leading edge of the nation’s creative economy and startup scene.
People are coming from all over the world to work at companies like Activision, Red Bull, and Snap. From entertainment leaders like Universal Music Group and Lionsgate to startup successes like GoodRx, Truecar, and Beautycounter, Santa Monica is a home for creativity and business innovation. Renowned healthcare providers like UCLA Medical Center, Providence St. John’s Health Center and Kaiser Permanente also call Santa Monica home and have played a pivotal role in the community’s care over the past three years. Santa Monica offers Class A office space with access to sun, surf, and a highly skilled workforce along with a nationally recognized high-speed fiber optic network. Principal local employers are in the fields of education, municipal government, technology, fintech, health care, policy, and research. Santa Monica’s leading industry sectors are Information Technology, Professional, Scientific and Technical Services, Accommodation and Food Services, and Health Care and Social Assistance (by employment).
FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
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Packet Pg. 665 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 33 Employers and employees are drawn to the area’s cultural, artistic, and recreational amenities. Unbeatable yearround sunshine and warm weather helps too! Tourism is an important driver of the local economy. In 2021, Santa Monica welcomed over 3.5 million visitors who spent $750 million in Santa Monica, generating significant retail sales and transient occupancy tax revenues for the City. The City is making progress to once more attract over 8 million visitors as it did in pre-covid times.
5,747 jobs are supported by the tourism industry. The City’s 41 hotels typically operate with high occupancy rates year-round, apart from the recent dip due to COVID-19 and international travel restrictions.
Retail plays a major role in Santa Monica’s economy. Santa Monica is home to a number of distinctive shopping districts. In the heart of Downtown, the Santa Monica Pier, Third Street Promenade, and Santa Monica Place draw locals and visitors alike. South of the Civic Center are the Main Street and Pico Boulevard districts, with eclectic shops, art, performance venues, and fine dining. On the north end of town, numerous boutiques and trendy restaurants line Montana Avenue, and Wilshire Boulevard provides an important thoroughfare throughout the City.
While our streets have had some quiet days over the last few years, residents, businesses, and workers are reemerging, and on an average day, tourists, shoppers, and employees significantly boost the daytime population to an estimated 250,000 people. The streets are now more vibrant than ever with the addition of outdoor dining activations throughout the City.
GOVERNMENT AND ADMINISTRATION
The City of Santa Monica was incorporated on
November 30, 1886 and subsequently adopted a
City Charter in 1945. In 1947, a Council-Manager
form of government was established following a
vote of the City’s residents and approval by the
California legislature.
The City Council consists of seven members elected
by the community at large to four-year terms.
Elections are held every two years, at which time
either three or four Council members are elected.
The Council selects the Mayor and Mayor Pro
Tempore. City Council appoints a City Manager
to administer the City, a City Attorney and a City
Clerk. The City Council also serves as the governing
bodies for the Santa Monica Redevelopment
Successor Agency, the Housing and Parking
Authorities, and the Public Financing Authority.
FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
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Packet Pg. 666 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 34 SCHOOLS
The highly rated Santa Monica-Malibu Unified School District serves both Santa Monica and Malibu residents.
There are ten elementary schools, two middle schools, three high schools, and an alternative K-8 school in the district. The City of Santa Monica provides $28 million in funding support to SMMUSD annually.
Santa Monica College (SMC), one of the state’s top two-year community colleges, serves over 30,000 full-time and part-time students on several campuses and offers more than 300 new courses in 58 subject areas. For 29 years, the college has ranked #1 in transferring students to the University of California, University of Southern California, and other four-year campuses.
FY 2023-25 PROPOSED BIENNIAL BUDGET
SANTA MONICA AT A GLANCE
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Packet Pg. 667 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW
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Packet Pg. 668 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 35 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS
NATIONAL ECONOMY
The U.S. economy rebounded strongly in 2021
and 2022 from the pandemic-induced recession
of 2020. However, high inflation, lingering
supply chain issues, high interest rates, labor
shortages, and the war in Ukraine are all
contributing to a softening of the economy
and uncertainty about the future course of the
economy. The most recent Bloomberg survey
of leading economists projects tepid economic
growth, as measured by GDP, of just 1% in
both 2023 and 2024, and predicts a 65%
chance of a recession sometime in the next 12
months. Consumer spending and the housing
market, which helped propel the economy, are
showing signs of weakness. While unemployment remains near historic lows (below 4%), the rate is expected to grow slightly over the next two years as the economy cools, and a number of companies, particularly in the technology sector, have announced large layoffs. While inflation has begun to moderate, CPI is still running nearly 15% above the level of two years ago.
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: Bloomberg
Real GDP Growth vs. Unemployment
Real GDP Unemployment
The amount of funding recommended for programs and services is driven by available resources. Economic conditions at the national, state and local levels affect the level of revenue available to the City each year. This section identifies the existing economic conditions that influenced the development of the annual budget. The section includes summary charts for Citywide budgeted revenues and expenditures, including an overview of retirement expenditures and employee contributions. The section also presents summary information regarding the major tax revenues and their impact on the General Fund revenue forecasting, and revenue analysis for each fund.
7.A.a
Packet Pg. 669 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 36 STATE ECONOMY
The future course of the State economy reflects
the same uncertainty as the Nation. The
March 2023 UCLA Forecast for the Nation
and California does anticipate that the State
economy will outperform the national economy
regardless of whether or not a recession occurs.
The state’s economy will be helped by a strong
construction sector, a still sufficient State
budget rainy-day fund, and increasing demand
in California for things such as defense goods,
labor-saving equipment and software. This
is expected to help keep unemployment at
relatively low levels despite the layoffs in the
technology sector.
\
On the consumer side, inflation-adjusted
personal income is expected to remain flat or
even fall slightly for the remainder of 2023
before relatively mild increases in 2024 and
2025. The UCLA Forecast also projects that
strong demand for the limited housing stock,
as well as new laws permitting accessory
dwelling units to be built in neighborhoods
zoned for single family homes, should lead to
increased homebuilding through 2025. This
increase will be partially mitigated by the
impact of high mortgage rates.
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS
0 50
100
150
200
$-
$200
$400
$600
$800
$1,000
2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: UCLA Forecast for the Nation and California March 2023 California Housing Market
Taxable Sales in Billions Res Bldg Permits in Thousands $0
$100
$200
$300
$400
$500
0 2
4 6
8 2017 2018 2019 2020 2021 2022 2023 2024
Source: National Association of Realtors
U.S. Existing Home Sales
Home Sales in Millions Median Price in Thousands
7.A.a
Packet Pg. 670 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 37 LOCAL ECONOMY
Santa Monica has historically benefited from a more diversified tax base with less reliance on Sales and Property Taxes than most other cities. While these tax revenues are important for Santa Monica, the local economy is also highly dependent on tourism and the hospitality industry, both of which have recovered strongly since the depths of the pandemic. Transient Occupancy Taxes (TOT), Sales Taxes, and parking-related revenues (including Parking Facility Taxes) together accounted for nearly 50% of General Fund revenues pre-COVID-19. TOT and Sales Taxes have essentially returned to pre-COVID levels despite the fact that the recovery in international tourism and business travel is still lagging. Parking-related revenues have recovered somewhat, but are not expected to reach pre-COVID levels until at least FY 2027-28.
Property taxes have remained
positive as assessed value
increases continued during the
pandemic. These increases
are expected to continue, but
at a slower pace for the next
two years, reflecting a slight
softening in the real estate
market. The number of property
transfers year-to-date (through
February) is down nearly 37%
in FY 2022-23 after strong
increases the prior two years,
however, the average transfer
value has continued to increase.
Business License taxes have begun to recover from the pandemic, but are not expected to return to pre-COVID levels until FY 2026-27. TOT and Documentary Transfer Tax revenues will also be bolstered by voter-approved measures increasing the TOT rate (Measure CS) from 14% to 15% (to 17% for homeshares) and adding a third tier to the City’s Documentary Transfer Tax (Measure GS) of $56 per $1,000 transfer value for transfers of $8 million and over. Due to the extreme volatility in this account, no revenue estimate will be included until the FY 2023-24 Midyear report, and these revenues will be included in the Special Revenue Sources Fund rather than the General Fund due to the restrictions of the measure. The voters also approved Measure HMP establishing business license tax rates for cannabis businesses, but no revenue from these sources is anticipated before FY 2025-26.
A more detailed discussion of local taxes follows the Citywide Budget overview.
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
0 500
1,000
1,500
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 City of Santa Monica Property Transfers
Number of Transfers Average Tax Per Transfer
Source: County of Los Angeles Registrar Recorder
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Packet Pg. 671 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 38 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
TOTAL FY 2023-24 CITY REVENUES: $747.2 MILLION
Total projected City revenues for FY 2023-24
are $747.2 million, net of reimbursements and
transfers. This represents a $15.5 million or 2.1%
increase from the FY 2022-23 revised budget. The
increase reflects greater General Fund revenues
primarily from Transient Occupancy and Property
taxes, revenues from the merge of the Community
Broadband Fund to the General Fund, anticipated
developer payments and advertising revenue from
the City’s new Digital Wayfinding Kiosk program. In
the other funds, revenues reflect increased capital
project funding, adjustments reflecting the timing
of estimated reimbursements from grant expenses,
scheduled water and wastewater rate adjustments,
anticipated solid waste rate adjustments, and
estimated funding allocations from various other
government agencies. Revenue details and
projections for the next two fiscal years for all City
funds are detailed in the Revenue Analysis section.
TOTAL FY 2024-25 CITY REVENUES: $782.0 MILLION
Revenues in FY 2024-25 are projected to be
$782.0 million, net of reimbursements and
transfers. This represents a $34.8 million or
4.7% increase from FY 2023-24, primarily driven
by greater General Fund revenues reflecting
continued recovery from the pandemic-induced
economic downturn. In the other funds, changes
are driven by various items, as in FY 2023-24,
including increased capital project funding,
adjustments reflecting the timing of estimated
reimbursements from grant expenses, scheduled
water and wastewater rate adjustments,
anticipated solid waste rate adjustments, and
estimated funding allocations from various other
government agencies. Revenue details and
projections for the next two fiscal years for all
City funds are detailed in the Revenue Analysis
section.
Citywide Revenues by Category
Citywide Revenues by Category
Charges for Services
Property Taxes
10.7%
Sales Taxes
21.5%
Other Taxes
3.5%
Transient
Occupancy
Taxes
8.9%
Charges for
Services
26.2%
Utilities Users
Taxes
4.6%
Business License
Taxes
4.1%
Licenses &
Permits
4.8%
Other
6.3%
intergovernmental
& Grants
9.4%
Property Taxes
10.9%
Sales Taxes
22%
Other Taxes
3.4%
Transient
Occupancy
Taxes
9.4%
Charges for
Services
25.5%
Utilities Users
Taxes
4.7%
Business License
Taxes
4.3%
Licenses &
Permits
4.9%
Other
6%
intergovernmental
& Grants
8.9%
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Packet Pg. 672 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 39 TOTAL FY 2023-24 CITYWIDE EXPENDITURE BUDGET: $740.9 MILLION The FY 2023-24 budget includes $740.9 million in
expenditures, net of reimbursements and transfers, for
all funds. This amount represents a 3.8% increase over
the revised budget for FY 2022-23, primarily reflecting maintenance of effort increases in the operating budget for compensation and operating expenditures, the allocation of new resources to address City Council and community
priorities, subsidies and loans to the Pier Fund and
Beach Fund, and adjustments for estimated grant funded
operating and capital project expenditures.
TOTAL FY 2024-25 CITYWIDE EXPENDITURE BUDGET: $746.4 MILLION The FY 2024-25 budget includes $746.4 million in
expenditures, net of reimbursements and transfers, for all funds. This amount represents a net increase of 0.8% from FY 2023-24, primarily due to a decrease in programmed
capital expenditures in the Big Blue Bus Fund. Additional capital expenditures commencing in FY 2024-25 will be
programmed in the Big Blue Bus Fund as part of the FY
2024-26 Biennial Capital Improvement Program budget
process. Operating expenditures continue to reflect impacts of annual cost of living increases on employee compensation and benefits and operating expenditures, the allocation of resources to address City Council and community priorities, and subsidies and loans to the Pier Fund and Beach Fund.
The difference between Citywide revenues and expenditures is due to disparities in timing between revenues and
expenditures for capital projects, as well as the use of working capital reserves to cover expenditures in the
General Fund.
The City continues to comply with its policy to fund ongoing costs using ongoing revenues. As in previous years, City revenues are subject to changes in economic conditions, State budget actions, and legislative changes.
Citywide Expenditures by Fund
(in millions)
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Citywide Expenditures by Fund
(in millions)
Enterprise Funds
$251
34%
General Fund
$412.4
56%
Other Funds
$77.5
10%
Enterprise Funds
$245
34%
General Fund
$433.4
58%
Other Funds
$68
9%
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Packet Pg. 673 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 40 FY 2023-24 GENERAL FUND REVENUES: $438.7 MILLION;
EXPENDITURES: $436.9 MILLION
Total FY 2023-24 General Fund revenues are projected to be $438.7 million, which is $13.4 million (3.2%) greater than the FY 2022-23 revised budget. The General Fund Operating Expenditure Budget for FY 2023-24 is $423.4 million and Capital Improvement Projects add an additional $13.5 million, for a total General Fund budget of $436.9 million. Operating expenditures increase $16.1 million, or 4.0% from the FY 2022-23 revised budget. The increase is primarily related to operating expenditures, which reflect impacts of annual cost of living increases on employee compensation and benefits and projected increases for operating expenditures (including insurance, gas and utilities), the allocation of new resources to address City Council and community priorities, and subsidies and loans to the Pier Fund and Beach Fund.
Where does the money come from in FY 2023-24?
Where does the money go?
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Local Taxes
72.5%
Charges for
Services
12.2%
Fines / Licenses /
Permits
11.4%
investments /
Rents
2.5%
All Other
1.4%
Public Safety
(Fire/Police)
38%
Public
Works
11.8%
Non-Departmental
13%
internal
Services
14.2%
Capital
improvements
3.1%
Community
Development
4.3%
Housing &
Community
Services
7.5%
Library
2.5%
Mobility &
Parking
5.6%
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Packet Pg. 674 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 41 FY 2024-25 GENERAL FUND REVENUES: $451.9 MILLION;
EXPENDITURES: $458.6 MILLION
Total FY 2024-25 General Fund revenues are projected to be $451.9 million, which is $13.2 million, or 3.0% more than in FY 2023-24. The General Fund Operating Expenditure Budget for FY 2024-25 is $443.6 million and Capital Improvement Projects add $15.0 million, for a total General Fund budget of $458.6 million. Operating expenditures increase $20.2 million, or 4.8% over the FY 2023-24 budget. The increase primarily reflects annual cost of living increases on employee compensation and benefits and projected increases for operating expenditures (including insurance, gas and utilities), and subsidies and loans to the Pier Fund and Beach Fund. Funds set-aside in the General Fund reserve as working capital will be used to close the gap between revenues and expenditures. The gap is due to short-term hotel closures impacting transient occupancy taxes, as well as some short-term economic weakness that is impacting revenue recovery.
Where does the money come from in FY 2024-25?
Where does the money go?
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Local Taxes
71.9%
Fines /
Licenses /
Permits
11.2%
investments /
Rents
2.7%
Charges for
Services
12.1%
All Other
2.1%
Public Safety
(Fire/Police)
37.6%
Public Works
12%
internal
Services
14.3%
Capital
improvements
3.3%
Community
Development
4.2%
Housing &
Community
Services
7.3%
Library
Mobility & 2.5%
Parking
5.6%
Non-Departmental
13.2%
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Packet Pg. 675 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 42 OTHER FUNDS
In addition to the General Fund, the City budget includes a number of funds that are either self-sustaining or require assistance (subsidies or loans) from the General Fund, as projected upon completion of five-year financial forecasts for all funds.
The Water and Wastewater Funds will maintain positive balances through the five-year forecast period.
With Council-approved outside financing, these funds are making progress on a number of projects that will increase locally sourced water supply and reduce the City’s reliance on imported water. The projects support Groundwater Well Improvements, Advanced Metering Infrastructure (AMI), and the Arcadia Water Treatment Plant Expansion Project in the Water Fund and the Sustainable Water Infrastructure Project (SWIP) in the Wastewater Fund. Historically, imported water has cost as much as 30% more than local water. By continuing to invest in local water supply, the City diversifies and enhances its drought resiliency and provides long-term cost savings and cost certainty for the community. Per best practices, staff will conduct the regular 5-year Water and Wastewater rate study in FY 2023-24 to align rates with the projected costs to provide water service. Rate adjustment recommendations will be presented to Council at the conclusion of the study.
The Resource Recovery and Recycling (RRR) Fund will remain self-sufficient through FY 2023-24, partially attributed to the infusion of one-time funds from the closeout of old construction and demolition projects.
Subject to proposed rate increases being adopted by the City Council, the proposed FY 2023-25 Biennial Budget includes the addition of 15.12 FTE permanent positions to address service gaps in the collection of solid waste, street sweeping, and compliance with the State’s Short-Lived Pollutants Act SB 1383 and the City’s corresponding mandatory organics ordinance adopted in November 2021. To maintain a balanced budget and address operational and capital needs, the Fund would require rate increases as recommended to Council on February 28, 2023, with the new rates anticipated to be approved and adopted on June 13, 2023, and effective in August 2023.
If approved, the recommended rate adjustments would generate sufficient revenues to maintain a positive fund balance throughout the forecast period and allow the fund to rebuild reserves.
The Department of Transportation’s (DOT) Big Blue Bus (BBB) Fund biennial budget reflects the department’s commitment and proactive response to the ever-changing transportation landscape. Over the biennial period, the department will continue to make intentional and strategic investments which include the restoration of service to pre-pandemic levels, increasing system-wide safety for transit riders and front-line staff and enhancing recruitment and retention efforts in response to the national shortage of Motor Coach Operators. The department will also engage in a comprehensive operational analysis to ensure improvements to Big Blue Bus routes and service delivery to the public. DOT will make notable progress in the electrification of its fleet by procuring fifteen battery electric buses which will expand its zero-emissions buses to 17.4% of the total fleet. BBB will continue to maintain a balanced budget over the forecast period through the use of one-time federal stimulus funds allocated to transit operators in response to the adverse impact of the pandemic on ridership and transit operations.
The Airport Fund will generate adequate revenues to sustain its operations throughout the five-year forecast period. The biennial budget includes several capital improvement projects planned for FY 2023-24 and FY 2024-25, including Parking and Airfield pavement maintenance and building and facility improvements to enhance lease revenue opportunities. By the vote of the City Council, Airport closure is planned for all aircraft operations after December 31, 2028.
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
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Packet Pg. 676 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 43 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
The Community Broadband Fund will be incorporated into the General Fund, effective July 1, 2023.
The Beach Recreation Fund which supports Beach and Beach House operations, is projecting a structural deficit during the forecast period. The fund was impacted by pandemic closures and required prior year advances from the General Fund and a loan from the Special Revenue Source Fund. The primary revenue source for the Beach Fund is parking revenues, which returned to pre-COVID levels in FY 2021-22. However, growth in parking revenues are projected to remain relatively flat through the forecast period as future parking rate increases are dependent on California Coastal Commission (CCC) approvals, a pre-requisite for implementing rate increases. Staff continues to seek efficiencies and revenue generating opportunities to support unfunded capital expenditures and address the structural deficit. However, over $5 million in identified capital projects remain unfunded and it is projected that the fund will require General Fund loans of $14.4 million over the forecast period if a parking rate increase is not implemented. Furthermore, while exact impacts are not yet fully known, Beach parking revenues will be further impacted beginning in FY 2025-26 for construction staging related to the Pier Bridge Replacement project; up to one-third of the adjacent Beach parking lot may be impacted for two years. Every effort will be made to minimize the extent of the impact.
The Cemetery Fund will maintain a positive fund balance throughout the five-year forecast period. Although the inventory for plots is expected to be depleted by FY 2029-30, staff continues to assess overall Cemetery operations, projected plot sales, and reconfiguration and development of the Cemetery area in order to extend inventory and maintain fiscal sustainability.
The Housing Authority Fund is stable and will maintain a positive fund balance throughout the forecast period.
The additional administrative funding provided through the CARES Act for the Santa Monica Housing Authority in FY 2021-22 supplemented traditional Section 8 administrative funding. This allowed the fund to build an administrative cash reserve and to ensure a positive fiscal outlook through the five-year forecast window.
The Pier Fund was severely impacted by the pandemic and is reliant on General Fund subsidies to maintain a positive fund balance. The primary revenue sources for the Pier Fund are lease payments and parking income. The forecast reflects recovery to pre-pandemic levels for lease revenues as of FY 2022-23. The Pier Deck parking lot closed to vehicles in the Spring of 2020 and did not re-open until December 2022 for Monday through Thursday only. In the first four months that the Pier Deck parking lot has been open, it has generated approximately onethird of the revenues that it generated for the same period pre-pandemic. Given the uncertainty of full reopening and the limited data currently available, it is difficult to project when parking revenues will return to previous levels. Additionally, the City is in the planning stages of the Pier Bridge Replacement (funded through the Caltrans Highway Bridge Program), which will impact parking revenues once construction begins in FY 2026-27, as access to the Pier Deck parking lot will be impacted. Staff continues to seek efficiencies and revenue generating opportunities to support unfunded capital expenditures and address the structural deficit. However, the Capital Budget includes over $20 million in unfunded Pier projects and it is projected that the fund will require General Fund subsidies of $5-10 million over the forecast period depending on how quickly parking revenues return to prepandemic levels.
The Stormwater Management Fund receives revenues primarily from user fees and the Special Revenue Source Fund receives revenue from various sources, which are restricted and committed for specific uses. Both of these funds will generate adequate revenues to remain sustainable throughout the forecast period.
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Packet Pg. 677 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 44 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
The Vehicle Management Fund and Information Technology Replacement & Services Fund will maintain positive balances through the forecast period. However, to maintain a positive balance, the Funds have had to defer scheduled replacement and maintenance of equipment, primarily due to a two-year suspension/ reduction in FY 2020-21 and FY 2021-22 in funding from the General Fund associated with revenue shortfalls from the pandemic. In the Vehicle Management Fund, the suspension totaled $8.8 million and resulted in the majority of the 227 vehicles scheduled for replacement to be deferred to FY 2022-23 and beyond. In the Information Technology Replacement & Services Fund, the suspension totaled $3.4 million and resulted in the deferment of all computer equipment replacements for two years beyond their scheduled replacement. This is not sustainable, and funding needs to be restored. As General Fund revenues continue to gradually improve, funds are being earmarked to immediately address areas that cannot withstand the replacement timing lag and to gradually resume the replacement schedules. The General Fund will begin partial repayment to the Information Technology Replacement & Services Fund over three years beginning in FY 2025-26.
CITYWIDE TOTAL COMPENSATION
When determining total compensation, the City includes employee salaries, pension contributions, health care and workers’ compensation costs. These items make up approximately 56% of the City’s overall operating budget, and approximately 68% of the General Fund operating budget. Healthcare costs make up approximately 10% of the total budgeted compensation. Pension costs make up 19% of the total budgeted compensation. Workers’ compensation costs, which are not a negotiated benefit but are largely driven by State mandates, make up 3% of total budgeted compensation. Further discussion of pension costs follows. To accommodate healthcare, pension, and workers’ compensation costs, cost of living adjustments (COLA) for employees consider the total compensation package and not just salary.
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Packet Pg. 678 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 45 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
PENSION CONTRIBUTIONS
The City’s defined benefit pension plan, Santa Monica Public Employees’ Retirement Plan, provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. The plan is part of the Public Agency portion of the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. Active full-time employees in the plan reimburse the City for a portion of the costs. The overall level of annual contributions by City employees, using negotiated contribution levels as of June 30, 2022, is approximately 24% of the total annual cost of pensions, while the percent contributed varies by plan (Police sworn, Fire sworn, Miscellaneous employee) and the length of time an employee has been with the City (Miscellaneous employees hired before July 2012 and public safety employees hired before January 2013 receive a higher benefit but pay between 18%-26% of the pension cost, while all other employees receive a lower pension benefit and pay 18%- 21% of the annual pension cost).
Detail of gross projected pension plan costs for FY 2023-24, offset by employee reimbursements, is outlined below.
FY 2023-24
Budget
(in millions)
% of Operating
Budget
FY 2024-25
Budget Plan (in
millions)
% of Operating
Budget
General Fund
Gross Pension Cost $76.0 $76.8
Employee Contributions 17.7 14.4
Net Pension Cost to the City $58.3 13.8% $62.4 14.1%
All Other Funds
Gross Pension Cost $21.1 $22.5
Employee Contributions 5.2 5.4
Net Pension Cost to the City $15.8 5.6% $17.1 5.9%
Total Gross Pension Cost $97.1 $99.3
Total Employee Contributions 22.9 19.8
Total Net Pension Cost to the City $74.1 10.5% $79.5 10.8%
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Packet Pg. 679 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 46 FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS Local taxes represent approximately 73% of projected General Fund revenues for FY 2023-24. Five of these tax sources, Transient Occupancy Taxes (TOT), Sales Taxes, Property
Taxes, Utility Users Taxes (UUT), and Business License Taxes, account for $296 million out of the $318 million in local taxes projected to be received in the next fiscal year. The remaining tax revenues are from Parking Facility Taxes, Real Property Transfer Taxes, Vehicle License Fees, and Condominium Taxes.
The projections reflect a prudent approach to forecasting using standard methodologies such as trend analysis, known extraordinary circumstances, fiscal impacts of legislative changes, outside consultant forecasts, and professional judgment. The projections reflect a strong recovery from the devastating economic impact of the COVID-19 pandemic.
Overall, General Fund revenues returned to pre-pandemic levels by the end of FY 2021-22, quicker than anticipated. However, an uncertain economic outlook due to high inflation, continuing supply chain disruptions, and the impact of the continuing war in Ukraine is reflected in a softening of tax revenue projections over the next two years. Additionally, as is always the case, other unknown variables such as the depth of the expected economic downturn and unforeseen state legislative changes could affect the ultimate amount of taxes received.
PROPERTY TAXES — 19% OF GENERAL FUND REVENUES
Total assessed values in the City increased 6.1% in FY 2022-23, essentially the same as the annual average increase over the last five years. At this point, it appears that the pandemic did not have a significant impact on assessed values in Santa Monica. However, it is projected that assessed value increases will slow, particularly over the next two years (about 2.7% annually) before returning to a more moderate level of about 4% annually.
Revenue from unsecured property taxes (personal property and airplanes) is projected to remain relatively flat throughout the next few years, as are delinquent tax receipts. Supplemental taxes peaked in FY 2020-21 and are expected to moderate in future years. Additionally, the City will continue to receive residual and pass-through payments from Redevelopment Property Tax Trust Funds (RPTTF) due to the dissolution of Redevelopment over ten years ago.
All Other Non-Tax
27%
Property Taxes
Sales and 19%
Use Taxes
18%
Transient Occupancy
Taxes
16%
Utility Users
Taxes
8%
Business
License Taxes
7%
Parking
Facility Taxes
3%
Real Property
Transfer Taxes
2%
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Packet Pg. 680 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 47 SALES TAXES — 18% OF GENERAL FUND REVENUES
Total sales taxes include the standard “Bradley Burns” 1% allocation of taxable sales that all cities receive as well as the Transaction and Use Tax (TUT), approved at one-half percent by Santa Monica voters in 2010 (Measure Y) and increased to 1% in November 2016 per ballot Measure GSH. Half of the TUT is paid to the Santa Monica/ Malibu Unified School District per a Master Facility Use agreement, following advisory measures approved by Santa Monica voters in 2010 and 2016, and another 25% is set aside for affordable housing uses following the 2016 advisory measure. However, this housing set aside was temporarily suspended during the pandemic-induced economic downturn. Sales tax revenues recovered faster than anticipated largely due to strength in the auto and hospitality sectors of the economy, and essentially returned to pre-COVID levels by FY 2021-22. However, a softening economy is anticipated to result in revenues showing essentially no growth in FY 2023-24 before resuming a more normal growth pattern of about 3% annually beginning in FY 2024-25.
TRANSIENT OCCUPANCY TAXES — 16% OF GENERAL FUND REVENUES Forecasts for Transient Occupancy Taxes (TOT) have been developed in coordination with Santa Monica Travel and Tourism. Tourism has experienced a strong recovery after being devastated by the pandemic when taxes fell by nearly 70%. While occupancy rates are still below pre-pandemic levels as international and business travel recovery is lagging the recovery in domestic travel, room rates have exceeded pre-COVID rates resulting in revenues returning to pre-pandemic levels. Additionally, Measure CS, passed by Santa Monica voters in November 2022, increased the tax rate from 14% for all lodging types to 15% for hotels/motels and 17% for homeshares effective March 1, 2023. This is expected to generate approximately $5 million annually in additional taxes.
Although the recovery is expected to continue, revenues are being impacted by the temporary closure of several major hotels for renovations over the next several years, and a slowing economy might also have an impact.
UTILITY USERS TAXES — 8% OF GENERAL FUND REVENUES
Tax revenue growth from electric, gas, and cable television utilities is primarily driven by rate changes by Southern California Edison, Southern California Gas Company, Spectrum, and Frontier Communications, respectively. Taxes from water and wastewater services reflect Council-approved utility rates as well as anticipated consumption patterns. Taxes from electricity and natural gas, after spiking in FY 2022-23 due to sharp increases in energy costs, are expected to flatten or decrease beginning in FY 2023-24. Overall, Utility Users Taxes are projected to increase just under 2% annually as increases from water and wastewater scheduled rate increases are projected to be partially offset by continuing decreases in taxes from hardwire and wireless telecommunications services, reflecting a shift of consumer use to more internet-based, non-taxable services. Taxes from other utilities are expected to remain relatively flat after the slight decrease in FY 2023-24.
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS
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Packet Pg. 681 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 48 BUSINESS LICENSE TAXES — 7% OF GENERAL FUND REVENUES Due to the reporting period for Business License Taxes, fiscal year revenues are based on businesses’ prior calendar year gross receipts. Therefore, the major impact from the pandemic was realized in FY 2021-22 when a decrease of over 13% from pre-COVID highs was realized. The strong rebound in economic activity from pandemic lows resulted in an estimated increase in FY 2022-23 revenues of 7.5%. However, the expected economic softening is projected to result in lower growth rates over the next two years, and, revenues, while approaching historical trend growth rates thereafter, are not expected to exceed pre-pandemic levels until FY 2026-27.
PARKING FACILITY TAXES — 3% OF GENERAL FUND REVENUES
Parking revenues were among the hardest hit City revenue sources during the pandemic, and while they have recovered strongly, the recovery has not been as rapid as is the case for most other revenue sources. While parking taxes are projected to increase over the next two years, pre-pandemic levels are not expected to be reached in the foreseeable future. The current revenue projections do not include the impact of any potential parking rate increases.
REAL PROPERTY (DOCUMENTARY) TRANSFER TAXES — 2% OF GENERAL FUND
REVENUES
Real Property (Documentary) Transfer Tax revenues are very volatile, economy driven and can be skewed by very large-value transfers. The real estate market continued to exhibit strength during the pandemic as the number of annual property transfers, after dipping slightly at the onset of the pandemic, increased sharply the last two fiscal years. However, consistent with the softening economy, the volume of transfers has dropped sharply, down 37% through the first eight months of FY 2022-23, and tax receipts have shown a similar pattern, down 24% over the same time period. The impact of Measure GS, approved by the voters in November 2022, added a third tier of the tax at $56 per $1,000 sale value for transfers $8 million and above and cannot be determined at this time.
The new tier went into effect March 1, 2023, and revenues from the increase will be deposited into the Special Revenue Source Fund as they are restricted as to use.
FY 2023-25 PROPOSED BIENNIAL BUDGET
BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS
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Packet Pg. 682 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET
FUND BALANCES
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Packet Pg. 683 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5224 : FY 2023-2025 Biennial Budget Study Session) 49 FY 2023-25 PROPOSED BIENNIAL BUDGET
FUND BALANCES - CLASSIFICATION OF FUNDS
The financial operations of the City are organized into funds for which budgets are prepared.
These funds are grouped into three major categories: General, Special Revenue, and Proprietary.
This section includes a description of the funds and their fund balance projections for the two budget years.
THE GENERAL FUND
The General Fund is used to account for all financial resources necessary to carry out basic governmental activities of the City that are not accounted for in another fund. The General Fund supports essential City services such as police and fire protection, street maintenance, libraries, parks, and open space management. Most of the General Fund is financed from tax revenues.
CAPITAL PROJECTS AND SPECIAL REVENUE FUNDS
Capital Projects and Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
• Asset Seizure Fund (21) — To account for the receipt and expenditure of federal and state asset forfeiture funds from equitable sharing programs. The federal guideline disallows a grantee to supplant its budget with asset seizure funds.
• Beach Recreation Fund (11) — To account for beach parking, concession, and beach house revenues and expenditures related to beach maintenance and recreation activities. • Citizens Option for Public Safety (COPS) Fund (22) — To account for the receipt and expenditure of the Citizens Option for Public Safety program established by AB3229 of 1996. In addition to disallowing a grantee to use the funds to supplant its budget, the State guideline requires a public hearing for the use of funds. Appropriations are recommended to the Council by a separate staff report after the hearing is conducted.
• Clean Beaches and Ocean Parcel Tax Fund (16) — To account for activity related to implementation of Watershed Management Plan and the passage of Measure V in November 2006. • Community Development Block Grant (CDBG) Fund (19) — To account for Federal entitlements under the Housing and Community Development Act of 1974, as amended. The City Council annually allocates CDBG funds to various programs.
• Gas Tax Fund (26) — To account for State and County gasoline tax allocations and any Federal funds provided to the City for street-related purposes.