Santa Monica City Council
September 26, 2023

2.1.1. Video Collection
To investigate driver’s usage of the pilot loading zones, a time-lapse video camera was placed to observe the zone and capture video at one frame per second. This camera obtained 29 hours of 5x-speed videos, which covers 145 realtime hours of live actions. The video was collected in late August and early September of 2019, including two complete weekends and three observations for each weekday. The first full week of observations included video from 12:00 pm to 10:30 pm. The final two weeks of observation included video from 5:00 pm to 10:30 pm.

2.1.2. Video Coding
A research assistant then manually reviewed the video and coded timestamped movements, including the time of arrival and departure of every automobile that stopped or parked in the two pilot loading zone spaces (space 1 & 2), the downstreet parking space that retained the pre-pilot 3-hour time limit (space 3), the southbound bike lane and travel lane, as well as the northbound right turn pocket (into a parking structure), as shown in figure 3. The research team recorded both when an automobile stopped in the bike lane and the number of bikeway users who exited the bike lane to pass the stopped automobile. Bikeway users may be on bicycles, electric scooters, skateboards, or other similar rolling devices and automobiles. 8 Item 16.E
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Packet Pg. 1739 Attachment: Written Comments (6023 : Protected bike lanes) Figure 3: Automobile parking/stopping locations
The research team also coded certain behaviors demonstrated by each automobile’s occupants. These behaviors included an occupant’s interaction with a parking meter, apparent CNS activity, and apparent TNC (ridehail) activity.

A recorded meter interaction means an automobile occupant faces the meter within approximately arm’s-length for at least 5 seconds to observe meter restrictions and payment options. The city removed the inner payment equipment from the two pilot zone meters (space 1 & 2) before the observed period, which disallowed any credit card or coin payment during all times of the day.

A recorded apparent CNS activity occurred when researchers observed a driver or other occupant exiting the automobile, cross the nearside curb, and the same individual returning to the automobile with a bag or container. When a passenger entered with a bag, researchers would review if this person earlier exited the automobile to code the activity as CNS and not ridehail activity.

A recorded apparent ridehail activity occurred when researchers observed one or more passengers entering or exiting an automobile, typically without the driver exiting the automobile.

TNC drop-off activities typically last for less than one minute.

The research team also recorded when any stopping activity occurred in the adjacent bike lane. Figure 4 shows a CNS activity in the bike lane. 9 Item 16.E
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Packet Pg. 1740 Attachment: Written Comments (6023 : Protected bike lanes) Figure 5: Typical CNS activity. A driver returns to their automobile with a package typical of a prepared food order. In this case, the automobile was double parked in the bike lane adjacent to the curb management pilot zone.

Researchers also noted when a marked police or traffic enforcement vehicle or traffic enforcement stops in frame for a minimum of one minute and whether enforcement activity is apparent from an officer inputting information and placing an item on an unattended automobile or otherwise interacting with a driver.

A total of 2,258 automobile stopping operations were observed and coded.

2.1.3. Analysis
The research team imported a spreadsheet of vehicle-based observations into a data analysis software environment using the Python programming language (Python Software Foundation 2020), Pandas data analysis library (2020), and a Jupyter notebook (Perez and Granger 2007). The data was then reconstructed as a time and activity-based dataset.

First, a member of the research team classified each activity as a violator or likely non-violator by comparing the time and duration of the activity to the loading zone rules. This time-based approach somewhat undercounts violators as it doesn’t qualify the required loading activity authorized for use in a commercial loading zone, but it was the most consistent method using the data available.

The research team then processed that data into a time-indexed format with one-second resolution. This enables us to calculate various summary statistics and examine conditional relationships between violators and bike lane blocking with varying levels of granularity.
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Packet Pg. 1741 Attachment: Written Comments (6023 : Protected bike lanes) The research team next expanded and re-indexed each activity. For each activity, the script converted the string-formatted start and end times to Numpy (Walt, Colbert, and Varoquaux 2011) datetime64 objects, and generated a datetime64 object for every second contained within that range. Using that datetime64 range as the new index, a dataframe was created with the rest of the activity data duplicated at every second that the activity continued.

This process was then repeated for each activity, merging the results into one final, expanded Pandas dataframe. Using this format, it’s possible to select any range of time and filter to all activities within that interval, with one entry per activity per second.

For purpose of illustration, the below figures show a one-minute resolution and a single “Activity Details” column– the actual dataset has a one-second resolution and several columns for the individual activity parameters.

Table 3: Raw Data Structure from Manual Classification
Start Time End Time Activity Details
Activity A 5:00PM 5:02PM Car, Space 2, CNS, …
Activity B 5:01PM 5:03PM Delivery Van, Space 3,…
Table 4: Time-indexed and Expanded Data for Analysis, With Violator Classification Timestamp Activity Start Time End Time Activity Details Violator? 5:00PM Activity A 5:00PM 5:02PM Delivery Van, Space 3, … No 5:01PM Activity A 5:00PM 5:02PM Delivery Van, Space 3, … No 5:01PM Activity B 5:01PM 6:03PM Car, Space 2, … Yes
5:02PM Activity A 5:00PM 5:02PM Delivery Van, Space 3, … No 5:02PM Activity B 5:01PM 6:03PM Car, Space 2, … Yes
5:03PM Activity B 5:01PM 6:03PM Delivery Van, Space 3, … Yes

3. Results

3.1. Courier Network Services and Transportation Network Company Activity are Complimentary
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Packet Pg. 1742 Attachment: Written Comments (6023 : Protected bike lanes) The resulting analysis observed CNS activity peaking earlier than TNC (ridehail) activity (Figures 6 & 7). This could mean that CNS activity peaks at the beginning of dinnertime, whereas Transportation Network Service activity peaks after dinnertime.

Figure 6: CNS activity duration & time distribution before, during, and after curb management pilot loading zone restriction (6pm to 10pm)
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Packet Pg. 1743 Attachment: Written Comments (6023 : Protected bike lanes) Figure 7: CNS activity count by time distribution before, during, and after curb management pilot loading zone restriction (6pm to 10pm)
Additionally, the observed duration of stay for TNC automobiles is low, with the median automobile staying for 24 seconds. The median observed length of stay for a CNS activity was 3 minutes, 3 seconds. Four percent of CNS automobiles stayed longer than the posted 15 minute limit. Table 5 below displays summary statistics and figure 8 shows the distribution of length of stay by activity type.

Table 5: Duration of Stay for Transportation Network Company and Courier Network Service Vehicles
Transportation
Network Company
Courier Network
Service
Number of observations 527 772
Percentile observation Duration (mm:ss) Duration (mm:ss) 50th percentile 00:24 03:03
75th percentile 00:45 05:29
90th percentile 01:36 09:29
95th percentile 02:10 12:55
Standard Deviation 1:03 4:20
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Packet Pg. 1744 Attachment: Written Comments (6023 : Protected bike lanes) Figure 8: Distribution of TNC and CNS activity duration

3.2. A Few Violators Have an Outsized Impact on the Zone The two-space zone was vacant 4.8% of the time. Compliance rates, the percentage of all automobiles stopping in the two-space zone that stayed less than the posted 15-minute limit, was 90%. However, because each non-compliant automobile stays for a longer duration, non-compliant vehicles were present 60% of the time!
Observed enforcement rates, as a percentage of non-compliant activity that resulted in enforcement action were low, at 1.1%. Table 6 and Figure 9 below display these statistics by automobile activity and violation status.

Table 6: Percentage of Time and Automobiles By Activity and Violation Status During Loading Zone Active Hours
% of time % of automobiles
All violators 60.19% 10.05%
Non violator, non

CNS/TNC

14.38% 34.16%
Non violator, TNC 1.43% 13.73%
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Packet Pg. 1745 Attachment: Written Comments (6023 : Protected bike lanes) Non violator, CNS 19.14% 42.05%
Vacant 4.86% N/A
Figure 9: Percent Time and Percent of Automobiles by Activity and Violation Status

3.3. Violators Cause Double Parking and Displace Bikeway Users The bike lane was blocked for 17% of the observed period in which the pilot was active.

This led to 308 bike lane users being displaced from the bike lane, at a rate of 25.7 bikeway users per hour of bike lane blockage. Out of the 717 minutes the bike lane was blocked, a violator was present in the loading zone for 646 minutes (90% of the time!). At a finer scale, bike lane blocking appears to vary dramatically day to day and hour to hour in relation to the number of violators. Figure 10 below shows a visualization of these effects.

A two-space loading zone could accommodate observed demand and substantially reduce bike lane blockage under a perfect-compliance scenario. A full 96% of the time that the bike lane was blocked during our study period, there would have been room for the blocking automobiles at the curb if no violators were present in the two-space curb pilot zone.

The loading zone could be expanded as a strategy to ensure space availability and reduce double-parking and bike lane blocking. A maximum of 4 vehicles blocked the bike lane at the same time during the observation period. However, assuming that the same compliance rate observed in existing spaces would apply to any number of new loading zone spaces, the authors modeled that it would actually require 9 additional spaces to meet 100% of observed maximum demand. Alternatively, it would require 3 additional spaces at observed compliance rates, for a total of 5 spaces, to meet the observed 95th percentile demand. 15 Item 16.E
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Packet Pg. 1746 Attachment: Written Comments (6023 : Protected bike lanes) Figure 10: Displaced bikeway users on two dates of observations Figure 11. Example of double parked automobile displacing a bike way user 16 Item 16.E
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Packet Pg. 1747 Attachment: Written Comments (6023 : Protected bike lanes)

4. Discussion and Conclusions
The City’s motivation for the curb management pilot project was the constant presence of cars engaging in CNS and TNC activity double-parked in the southbound bike lane (Pauker 2019). This is consistent with McClintock’s (1925) view that an effective curb management zone is one with the ordered objectives of 1) safety, 2) traffic flow, and 3) access to adjacent uses, which minimizes double parking activity while maximizing space utilization for “live parking”.

This study did not systematically observe a control period prior to implementation of the pilot, and can make no inference on the pilot’s effectiveness versus the status quo. However, the study shows that the actions of a relatively small number of drivers made the loading zone pilot ineffective.

In the Santa Monica pilot, the combination of low rate of enforcement (percentage of non-compliant activity that resulted in enforcement action) and confusion with an inability to pay the meter may have led to lower rates of compliance (percentage of all activity that was compliant) for this pilot versus others under consideration.

The effectiveness of such a zone is a function of the compliance rate, number of automobiles the zone accommodates, and the demand for the zone, both the number of automobiles and the distribution of their lengths of stay. For lower rates of compliance, the zone capacity must be increased to remain effective. In the Santa Monica 2nd Street pilot with a 90% compliance rate vehicles violating posted time limits occupied the space 60% of the time. While the 2 spaces in the pilot zone would have satisfied 96% of observed demand with perfect (100%) compliance, at the observed 90% compliance rate the required zone capacity to meet the 95th percentile demand would have been 5 spaces.

Prior research suggests that conversion of curb metered parking spaces to short-term loading zones may be justified if adjacent businesses perceive benefit from high-turnover curb activity. This dynamic may lead more jurisdictions to consider such changes. Those implementing curb management zones must be aware of demand and prospective compliance rates when designing zones. Whether local planners and engineers plan to use curb paint and posted signs for static curb zone management, or a technology-based tool to dynamically manage high-turnover curb zones, minimizing the length of occupancy by non-compliant vehicles is a prerequisite to effective curb-zone management. If compliance is low because enforcement is low, then new technology to dynamically reserve, assign, and pay for curb space will be rendered less effective by violators.

Those designing zones should also emphasize the type of vehicle and length of stay over the permitted activities (passenger loading versus goods loading). Based on the short duration of stay and the somewhat complementary arrival times of CNS and TNCs, the authors find that the zone can be used for both.

Finally, further research is needed to understand how to increase compliance rates. This may include future studies of pilot zones in areas where compliance rates are higher, or intercept surveys of compliant and non-compliant drivers to understand factors that drive 17 Item 16.E
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Packet Pg. 1748 Attachment: Written Comments (6023 : Protected bike lanes) non-compliance. Future research may also be needed to increase enforcement rates and the effectiveness of enforcement activities.

5. Author contributions
The authors confirm contributions to the paper as follows: study conception, research design, project management, and data collection: JM; review and input of video data: TD; data analysis and interpretation of results: ED; draft manuscript preparation: JM, ED. All authors reviewed the results and approved of the final version of the manuscript.

6. Reference
City of West Hollywood. 2018. “The Drop.” 2018.
https://www.weho.org/city-government/city-departments/facilities-and-recreation-services/pa rking-services/the-drop.

Crist, Phillippe, Luis Martinez, and Sergio Grosso. 2018. “The Shared-Use City: Managing the Curb.” Organization for Economic Co-operation and Development/International Transport Forum.
https://www.itf-oecd.org/sites/default/files/docs/shared-use-city-managing-curb_3.pdf.

Dalla Chiara, Giacomo, and Anne Goodchild. 2020. “Do Commercial Vehicles Cruise for Parking? Empirical Evidence from Seattle.” Transport Policy 97 (October): 26–36.

Dillon, John F. 1912. Commentaries on the Law of Municipal Corporations. Vol. 10. Boston, MA:

Little, Brown, and Company.

Girón-Valderrama, Gabriela del Carmen, José Luis Machado-León, and Anne Goodchild. 2019. “Commercial Vehicle Parking in Downtown Seattle: Insights on the Battle for the Curb.” Transportation Research Record, June, 0361198119849062.

Giuliano, G., and K. A. Small. 1991. “Subcenters in the Los Angeles Region.” https://escholarship.org/uc/item/6ts0t95w.

Gordon, Peter, and Harry W. Richardson. 1996. “Beyond Polycentricity: The Dispersed Metropolis, Los Angeles, 1970-1990.” Journal of the American Planning Association 62 (3):
289–95.

Hensher, David A., and Jenny King. 2001. “Parking Demand and Responsiveness to Supply, Pricing and Location in the Sydney Central Business District.” Transportation Research Part A: Policy and Practice 35 (3): 177–96.

Littke, Hélène. 2016. “Revisiting the San Francisco Parklets Problematizing Publicness, Parks, and Transferability.” Urban Forestry & Urban Greening 15 (January): 165–73.

Lu, Ryland. 2018. “Pushed from the Curb: Optimizing the Use of Curb Space by Ride-Sourcing Vehicles.” UCLA. https://escholarship.org/uc/item/25p966dh.

McClintock, Miller. 1925. Street Traffic Control. McGraw-Hill Book Company.

Mitman, Meghan, Steve Davis, Ingrid Ballús-Armet, and Evan Knopf. 2018. “Curbside Management Practitioners Guide.” Institute of Transportation Engineers. https://www.ite.org/technical-resources/topics/complete-streets/curbside-management-reso urces/.

Pandas Development Team. 2020. “Pandas.” Zenodo 21: 1–9.

Pauker, Madeleine. 2019. “Downtown to Establish Delivery-Only Parking - Santa Monica Daily 18 Item 16.E
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Packet Pg. 1749 Attachment: Written Comments (6023 : Protected bike lanes) Press.” Santa Monica Daily Press. April 19, 2019.
https://www.smdp.com/downtown-to-establish-delivery-only-parking/174411.

Perez, F., and B. E. Granger. 2007. “IPython: A System for Interactive Scientific Computing.” Computing in Science Engineering 9 (3): 21–29.

Porter, Jon. 2019. “Amazon’s Restaurants Delivery Service Is Shutting down.” The Verge. The Verge. June 11, 2019.
https://www.theverge.com/2019/6/11/18661240/amazon-restaurants-discontinued-usa-ubereats-deliveroo-food-delivery.

Python Software Foundation. 2020. Python (version 3.8.0). https://www.python.org.

Rieck, Kathryn Roethel. 2019. “Which Company Is Winning the Food Delivery War? - Second Measure.” Second Measure. July 19, 2019.
https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordashpostmates/.

Roe, Matthew, and Craig Toocheck. 2017. “Curb Appeal: Curbside Management Strategies for Improving Transit Reliability.” National Association of City Transportation Officials. https://nacto.org/tsdg/curb-appeal-whitepaper/.

Shoup, Donald C. 2006. “Cruising for Parking.” Transport Policy 13 (6): 479–86.

SMMC 3.12.740. 1980. Santa Monica Municipal Code. Vol. 3.12.740. https://www.qcode.us/codes/santamonica/view.php?topic=3-3_12-3_12_740&frames=off.

Stehlin, John. 2015. “Cycles of Investment: Bicycle Infrastructure, Gentrification, and the Restructuring of the San Francisco Bay Area.” Environment & Planning A 47 (1): 121–37.

Walt, Stéfan van der, S. Chris Colbert, and Gaël Varoquaux. 2011. “The NumPy Array: A Structure for Efficient Numerical Computation.” Computing in Science & Engineering 13 (2):
22–30.
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Public Right-of-Way Zones in City of Seattle
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Google Maps. 2019.

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Packet Pg. 1751 Attachment: Written Comments (6023 : Protected bike lanes) September 12, 2023
Subject: Item 16 C - Oppose, 16 D - Amend, 16 E - Support Dear Santa Monica City Council,
We urge the council to support, rather than oppose, the passage of SB423.

California is in the midst of a severe housing shortage driving high rents and homelessness; we can only solve these problems with a glut of more affordable housing. SB423 expands on SB35, which has streamlined over 18,000 affordable homes. This bill will massively increase the number of affordable homes across the state.

At its core SB423 is a good governance bill; it prevents cities from delaying or denying projects that already comply with local zoning and design standards determined through local governments. SB423 does not upzone or rezone new land; furthermore, the bill only applies to cities that don't have a compliant housing element or are behind on their housing goals. It is in Santa Monica’s best interest to ensure that our neighboring cities are held accountable to build their fair share of housing.

The bill has passed both legislative chambers and is on its way to the Governor’s desk, supported by a broad coalition of labor, environmentalists, pro-housing groups and civic organizations. We think Santa Monica should be a part of that coalition too.

Other Items
Item 16 D (Amend) - Proposed Noise Ordinance Changes
In light of recent studies that demonstrate the negative impact of traffic noise on health, Santa Monica should take proactive steps to enforce vehicle noise limits. Item 16-D needs to be amended to ensure any Noise Ordinance changes do not restrict the right of workers to organize and protest, and should be balanced with concerns

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Packet Pg. 1752 Attachment: Written Comments (6023 : Protected bike lanes) that night-time noise restrictions will delay economic recovery, where nightlife activities have been important in boosting visits to Downtown Santa Monica by locals and tourists.

Item 16 E (Support) Preventing Motor Vehicle Incursions into Bike Lanes Santa Monica Forward also strongly supports the request of Councilmember Zwick, Councilmember Torosis, and Mayor Davis for the city to study and prioritize timely and effective solutions to prevent dangerous vehicle incursions into bike lanes. Every day we see vehicles parked blocking bike lanes which not only puts peoples’ lives unnecessarily at risk, it also discourages people from riding bikes or letting their children do so, which ironically leads to more traffic and demand for car parking. A city that prioritizes bicycle and pedestrian safety, is a better city for all–even including those who need to drive.

Thank you for your consideration.

Sincerely,
Bradley Ewing and Carl Hansen
Co-Chairs, Santa Monica Forward

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Packet Pg. 1753 Attachment: Written Comments (6023 : Protected bike lanes) 1 Vernice Hankins
From: Natalya Zernitskaya <[email protected]>
Sent: Tuesday, September 12, 2023 12:02 PM
To: councilmtgitems
Cc: Gleam Davis; Lana Negrete; Christine Parra; Oscar de la Torre; Phil Brock; Caroline Torosis; Jesse Zwick; David White
Subject: Item 16E-9/12/2023 City Council Agenda- Public Comments

EXTERNAL
Re: Santa Monica City Council Agenda 9/12/2023- Item 16E Dear Mayor Davis, Mayor Pro Tem Negrete, and City Councilmembers, I urge you to support item 16E, requesting that the City Manager study and prioritize timely and effective solutions to prevent dangerous motor vehicle incursions into Santa Monica’s protected and unprotected bike lanes. Specifically, the City Manager should consider enhanced enforcement by parking and traffic officers, photo enforcement to the extent allowable by law, a targeted curb management evaluation and space reallocation to reduce double parking in bike lanes, and the deployment of quick-build infrastructure to protect bike lanes and reorient parking on streets in the City’s existing and planned protected bikeway network whenever feasible.

Reducing our dependence on cars and making alternative methods of mobility safer & easier to access improves our air quality and the health of our community, and has the added benefit of mitigating the drivers of climate change (pun intended).

In addition to the myriad benefits of different mobility options, studying and enforcing our traffic and parking laws shows that we take the issues of public safety and accessibility seriously.

Please vote “yes” on item 16E.

Sincerely,
Natalya Zernitskaya
Natalya Zernitskaya (she/her)
[email protected]

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Packet Pg. 1754 Attachment: Written Comments (6023 : Protected bike lanes) City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 10.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and First Reading of an Interim Zoning Ordinance Extending Interim Zoning Ordinance Number 2754 (CCS) Promoting Economic Recovery in the City’s Downtown Area, including the Third Street Promenade Area and Santa Monica Place, and Providing Other Minor and Clerical Amendments to the Zoning Ordinance Related to Economic Recovery.

Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities) and 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines.

2. Introduction and first reading of an Interim Zoning Ordinance extending Interim Zoning Ordinance Number 2754 (CCS) promoting economic recovery in the City’s Downtown area, including the Third Street Promenade Area and Santa Monica Place, and providing other minor and clerical amendments to the Zoning Ordinance related to economic recovery.

Summary
On January 24, 2023, Council held a discussion requesting that the City develop strategies to revitalize the Third Street Promenade that included, but not limited to:
establishing an arts and entertainment district in the 1200 block of the Third Street Promenade, expanding outdoor dining opportunities, promoting available space and development opportunities, Zoning Code amendments to expand allowable uses, and opportunities to partner with Downtown Santa Monica, Inc. (DTSM) on street performers.

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On July 25, 2023, Council adopted Interim Zoning Ordinance Number 2754 (CCS) establishing interim zoning regulations promoting economic recovery in the City’s Downtown, including the Third Street Promenade Area and Santa Monica Place, and also included minor clerical amendments further supporting economic recovery.

The Interim Zoning Ordinance (“IZO”) included proposed zoning changes supporting a variety of potential commercial uses within the Downtown. These changes focus on enabling certain outdoor uses and providing a streamlined review for alcohol permits based on recent inquiries from prospective businesses considering available tenant space within the Promenade area. In summary, the interim zoning changes focus on:
allowing outdoor rooftop commercial uses on Public Parking Structures owned by the City;
1) allowing greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area and Santa Monica Place;
2) expanding Alcohol Exemption (AE) permits to additional uses to further streamline the review of alcohol permits while also correcting and refining existing AE permit conditions;
3) allowing the Director of Planning to consider commercial uses that are not clearly in the Zoning Code; and
4) allowing a longer term for Temporary Use Permits.

The subject interim ordinance became effective on September 22, 2023 and is set to expire on November 22, 2023. Council may extend the interim ordinance through November 22, 2028, allowing the IZO to be effective up to 60 months in accordance with SMMC Section 9.46.090(C).

Staff recommends extending the IZO for the allowable 60 months through November 22, 2028. As the City continues to support local businesses during this next phase of economic recovery following the pandemic, the proposed extension would allow adequate time for staff to further evaluate the 1200 block of the Promenade as a potential arts/entertainment district and evaluate the results of the land use changes included in the IZO. The proposed extension would not preclude Council from revisiting

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the IZO prior to its expiration to potentially amend the provisions or duration of the IZO.

Depending on the circumstances, Council could make amendments to the IZO, elect to make it permanent, or repeal it at any time.

Staff recommends that the Council extend the IZO as adopted by the Council on July 25, 2023, with the exception of a few non-substantive clerical amendments as described in this report.

Background
On October 11, 2022, Council adopted an Ordinance amending the text of the City’s Zoning Ordinance related to economic recovery in commercial districts citywide and in the area including and immediately adjacent to the Third Street Promenade. These zoning changes focused on relaxing barriers that had been shown to create unnecessarily difficult processes for simple changes of use inhibiting the establishment of common neighborhood-serving uses. As part of the amendments, the Third Street Promenade Area was established and described as the area bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north.

Third Street Promenade Area

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Discussion
The subject Interim Zoning Ordinance reflects staff’s ongoing evaluation and simplification of zoning requirements to provide greater flexibility and streamlined review for new potential businesses within the Downtown area including the Santa Monica Place and specifically for the newly established Third Street Promenade Area. Similar to the October 2022 zoning amendments, the proposed IZO continues the City’s ongoing efforts in supporting new and existing Santa Monica businesses following the pandemic.

Below is a summary of the interim zoning changes as adopted by Council on July 25, 2023:
▪ Outdoor Commercial Uses. Allow certain outdoor commercial uses on the toplevel of public parking structures owned by the City, including rooftop cinemas, community assembly, community gardens, and small/large-scale commercial entertainment and recreation facilities. Such outdoor uses would be excluded as floor area, exempt from Floor Area Ratio requirements, and would not be subject to developer linkage or impact fees. For rooftop cinemas, allow additional height projections of supportive structures including cinema screens, concession stands, restroom facilities, storage structures, and shading devices to extend above the height of existing parking structures.
▪ Restaurants with Entertainment. Allow greater flexibility for restaurants with entertainment located within the Third Street Promenade Area and Santa Monica Place by removing certain operational restrictions on ancillary entertainment before a discretionary Conditional Use Permit is required. ▪ Alcohol Exemptions. Expand uses that can obtain an Alcohol Exemption permit to further streamline the review of alcohol permits, establish operational conditions for these added uses, and correct and refine existing operational conditions for restaurants, bars/nightclub, general retail sales, and liquor stores that were recently approved by Council in October 2022. ▪ Land Use Flexibility. Establish greater land use flexibility by allowing the

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Community Development Director to consider land uses that are not clearly defined in the Zoning Code that are similar, consistent with, and no more disturbing or disruptive than uses that are permitted or conditionally permitted within all Downtown Community Plan Districts.
▪ Temporary Use Permits. Extend the approval term of Temporary Use Permits from 45 days to 180 days (6-months), with the ability to administratively extend the permit an additional 180 days (6 months) with Director approval, subject to findings.
▪ Other Minor and Clerical Amendments related to Economic Recovery. Other minor clerical amendments correcting Zoning Code inconsistencies included updating the bar/nightclub/lounge use from being subject to a Conditional Use Permit to a permitted use by-right, adding a limitation to ensure that both bar/nightclub/lounge and liquor store uses are permitted by-right in the Third Street Promenade Area, provided they obtain an administrative Alcohol Exemption permit. Additionally, a clerical amendment to correct an inconsistency in parking exemption for new private outdoor space for commercial businesses as part of the recently adopted Outdoor Space Program as included.

These IZO provisions are further detailed in the July 25, 2023 Council staff report.

Non-Substantive Clerical Amendments and Clarifying Language Staff recommends the following non-substantive clerical amendments and clarifying language that correct terms and further clarify certain Alcohol Exemption operational standards currently established in the subject IZO:

1. Ensure that the subject area is correctly identified as the “Third Street Promenade Area” by deleting in some instances any terms or reference to this area as a “District”.

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Purpose: Corrects that the “Third Street Promenade Area” is not a “district”.

2. Alcohol Exemption Operational Standards: Provide greater clarity by adding the following standard for 1) Cultural Facilities and Instructional Services and 2) Commercial Entertainment and Recreation: Small-Scale Facilities and LargeScale Facilities:
- “Service of alcoholic beverages shall be incidental to the primary use”.

Purpose: Further clarifies that alcohol service is not the primary use of the establishment.

3. Alcohol Exemption Operational Standards: Provide greater clarity by amending the following standards for General Retail Sales, Small-Scale and Medium-Scale:
i. The permitted hours of alcoholic beverage sales for off-site consumption and/or on-site tasting shall be 8:00 a.m. to 2:00 a.m. daily.
ii. Sale of alcoholic beverages shall be incidental to the primary use.

Purpose: Clarifies that retail establishments such as wine shops may offer a tasting component during permitted operating hours. Removal of the second provision clarifies/eliminates an inadvertent conflict with such establishment. 1200 Block of the Third Street Promenade: Future Evaluation as an Arts and Entertainment District
As stated in the July 25, 2023 Council report, although this IZO extension does not include changes unique to the 1200 block of the Third Street Promenade for arts and entertainment, the amendments provide a more holistic approach for the Promenade

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area as a whole in providing greater entertainment flexibility by eliminating certain existing entertainment restrictions for new and existing restaurants. Additionally, changes include streamlining the alcohol review for cultural facilities such as interactive museums and instructional services such as art studios with group lessons. These are simple revisions that provide a streamlined review path that will help attract these types of uses to the Promenade while staff continues to evaluate how specifically the 1200 block can evolve into an active arts and entertainment hub.

Future evaluation of the 1200 block as a potential arts and entertaining district will include engaging with a consultant to study how to connect people and activities using the sidewalks and public open space within the block. Staff will continue working with DTSM to identify a consultant and process to explore potential opportunities for additional uses of public space, including but not limited to additional restaurant seating/service area, while also maintaining key public art features and providing for public safety and emergency services access on the Third Street Promenade.

Conclusion
These interim changes reflect short and medium-term policy and procedural changes specific to the evolving economic vitality of the Promenade area and Santa Monica Place. Simple changes would create fewer restrictions for restaurants with entertainment, and broaden the range of outdoor permitted uses, and further streamline alcohol permits for uses that ordinarily do not result in alcohol-related impacts. In coordination with DTSM and the City’s Economic Development staff, continued evaluation of zoning standards for the Promenade area is ongoing. Accordingly, the proposed IZO seeks to provide immediate zoning flexibility in response to feedback from businesses interested in leasing space within the Third Street Promenade Area and Santa Monica Place.

Past Council Actions
Meeting Date Description
May 12, 2020 Council adopted two Emergency Interim Zoning Ordinances establishing interim zoning regulations to support the
economic recovery of local businesses impacted by the

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COVID-19 pandemic.

November 10, 2020 Extended Emergency Interim Zoning Ordinances for both Citywide and Promenade, extended through December 31,
2022.

April 13, 2021 (“IZO
2667”), September 28,
2021 (“IZO 2682”),
and January 25, 2022
(“IZO 2690”)
Subsequent amendments to the “Promenade” IZO.

October 11, 2022 and
October 25, 2022
Council adopted Ordinance 2726 (CCS) approving Zoning
Ordinance amendments for the Third Street Promenade
Area
January 24, 2023 Council held a discussion requesting that the City develop strategies to revitalize the Third Street Promenade.

July 25, 2023 Council adopted Promenade Interim Zoning Ordinance 2754 to Promote Economic Recovery in the City’s Downtown
area, including the Third Street Promenade Area and Santa Monica Place, and Provide Other Minor and Clerical
Amendments to the Zoning Ordinance Related to Economic
Recovery.

Environmental Analysis
The proposed extension of Interim Zoning Ordinance Number 2754 (CCS) promoting economic recovery in the City’s Downtown, including the Third Street Promenade Area and Santa Monica Place, and other minor clarifications and clerical amendments to the Zoning Ordinance related to economic recovery are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 of the CEQA Guidelines.
• Section 15301 of CEQA Guidelines provides (Class 1 Existing Facilities) exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Projects that fall into this class of exemption include alterations to existing streets, sidewalks, gutter, bicycle facilities, and other similar facilities and additions of safety or health protection during for use in conjunction with existing facilities. The proposed amendments would allow for flexibility in land uses for the Downtown and

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associated alterations to existing commercial buildings to accommodate the proposed changes in land uses in the Downtown. Therefore, the proposed amendments qualify under the Class 1 exemption.
• Section 15303 of CEQA Guidelines provides (Class 3 New Construction or Conversion) exemption for the conversion of existing small structures from one use to another where only prior modifications are made to the exterior. The amendments would provide for new minor construction to accommodate the proposed changes in land uses in the Downtown. Therefore, the proposed amendments qualify under the Class 3 exemption.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future.

Prepared By: Steve Mizokami, Principal Planner
Approved Forwarded to Council
Attachments:

A. 2023.09.26 - Promenade IZO Extension

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1 City Council Meeting: September 26, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)

AN INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA EXTENDING AND AMENDING REGULATIONS ESTABLISHED BY INTERIM ZONING ORDINANCE NUMBER 2754 (CCS) TO PROMOTE ECONOMIC RECOVERY IN THE CITY’S DOWNTOWN AREA, INCLUDING THE THIRD STREET

PROMENADE AREA AND SANTA MONICA PLACE, AND PROVIDE OTHER MINOR

AND CLERICAL AMENDMENTS TO THE ZONING ORDINANCE RELATED TO

ECONOMIC RECOVERY
WHEREAS, on July 6, 2010, the City Council adopted the Land Use and Circulation Element of the City’s General Plan (“LUCE”), which designates the proposed general distribution, location, and extent of land uses within the City; and WHEREAS, on July 25, 2017, the City Council of the City of Santa Monica (“City Council”) adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of Downtown as a high quality, mixed-use district offering opportunities as a major public space framed by a mix of retail, restaurants, and services that form unique experiences enjoyable to both residents and visitors; and WHEREAS, the DCP supports activities that enrich the Promenade, including street performances and events that enliven the street and provide memorable experiences for visitors, while also seeking to expand cultural opportunities, including live music venues and upgraded state-of-the art cinemas; and WHEREAS, the DCP acknowledges that the Promenade is an essential component of the Downtown’s economic sustainability and emphasizes the importance of reevaluating and refreshing the Promenade so that it remains attractive and exciting to residents and visitors alike; and

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Packet Pg. 1764 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 2 WHEREAS, DCP Goal LU3 contemplates that the Downtown will continue to be the economic center for the City, providing a diverse and flexible mix of uses that can meet future resident, business, and visitor demand; and WHEREAS, on March 13, 2020, the City Manager, as the Director of Emergency Services (“Director of Emergency Services”), proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability of mutual aid and effectuate the City’s response to the novel coronavirus (“COVID-19”), and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency to ensure compliance with all digital signature requirements (the “Executive Order”); and
WHEREAS, on March 16, 2020, the Director of Emergency Services issued a Third Supplement to the Executive Order, requiring the closure of a wide range of businesses including bars, nightclubs, on-premises restaurant service, movie theatres, live performance venues, gyms, fitness centers, spas, hair salons, massage parlors, and nail salons; and
WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued Executive Order N-33-20 directing all residents of the State of California to heed directives issued by the State Health Officer on the same date instructing all Californians to stay home except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and
WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of

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Packet Pg. 1765 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 3 COVID-19, amending and superseding its earlier March 16, 2020 Order, closing all nonessential businesses, and limiting gatherings to 9 people or less; and WHERAS, after March 19, 2020, the Los Angeles Department of Public Health, on multiple occasions, amended and modified its Health Officer Order, recognizing the issues posed by community transmission of COVID-19 in Los Angeles County, and, in response, maintaining public health measures that have, at differing times, included strict limitations on public gatherings, required closures of certain businesses, and strict limitations and protocols for the operations of businesses permitted to remain open; and WHEREAS, as of March 31, 2023, the local, state, and federal COVID-19 emergency declarations have concluded; and
WHEREAS, although the emergency orders have been lifted, the economic impacts of the COVID-19 closures of, and limitations on, businesses have been and continue to be devastating to the local Santa Monica economy; and the Downtown area is continuing to experience economic uncertainty; and
WHEREAS, as the commercial and economic landscape evolves, Downtown’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of unique dining, retail, and entertainment uses; and WHEREAS, as restaurant and entertainment environments across the region and county continue to evolve, there is a need to adjust allowed uses and dining and entertainment options to enable economic recovery and provide increased flexibility to minimize vacancies on the Third Street Promenade and the Downtown areas; and

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Packet Pg. 1766 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 4 WHEREAS, the City has an important governmental interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and
WHEREAS, vacancy rates, in addition to economic impacts that threaten the health, safety, and economic welfare of its citizens and businesses, may lead to public safety impacts, including, but not limited to, increased calls for emergency services, and WHEREAS, on October 25, 2022, City Council adopted an Ordinance amending the text of the City’s Zoning Ordinance related to economic recovery in commercial districts Citywide and in the area including and immediately adjacent to the Third Street Promenade; and
WHEREAS, these zoning changes codified Emergency Interim Zoning Ordinances approved in response to the COVID-19 pandemic and focused on relaxing barriers that had been shown to create unnecessarily difficult processes for simple changes of use, inhibiting the establishing of common neighborhood-servicing uses; and WHEREAS, on January 24, 2023, City Council held a discussion session requesting that the City develop strategies to revitalize the Third Street Promenade that included, but were not limited to, establishing an arts and entertainment district in the 1200 block of the Third Street Promenade, expanding outdoor dining opportunities, promoting available space and development opportunities, Zoning Ordinance amendments to expand allowable uses, and opportunities to partner with Downtown Santa Monica, Inc. on street performances; and
WHEREAS, the proposed Interim Zoning Ordinance includes zoning changes supporting a variety of potential commercial uses within Downtown; and

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Packet Pg. 1767 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 5 WHEREAS, the proposed changes focus on enabling additional outdoor uses and providing streamlined review for alcohol permits based on recent discussions with prospective businesses considering available tenant space within the Promenade areas; and
WHEREAS, pre-COVID-19, the City began discussions on the concept and feasibility of a utilizing the top levels of City-owned parking structures in the Downtown area for new uses, including a rooftop cinema, but such discussions ceased due to the pandemic commencing in March 2020; and
WHEREAS, as a part of the City’s economic recovery measures post-COVID-19, Downtown Santa Monica, Inc., City staff, and a potential rooftop cinema operator have reengaged discussions on the concept;
WHEREAS, these public parking structures are the most appropriate locations to allow for certain uses, including the proposed rooftop cinema, due to their locations, structural capacity, and size; and
WHEREAS, allowing eligible businesses the flexibility to engage in new uses will facilitate business recovery and generate increased sales tax revenue for the City; and WHEREAS, on July 25, 2023, due to the continued economic uncertainty arising out of the COVID-19 pandemic, and the high vacancy rate along the Promenade in the Downtown area, the City Council adopted Interim Zoning Ordinance No. 2754, which: (1) provides greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area District; (2) expands Alcohol Exemption (AE) permits to additional uses to further streamline the review of alcohol permits while also correcting and refining existing AE permit condition; (3) enables the Director of Planning to consider commercial

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Packet Pg. 1768 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 6 uses that are not clearly defined in the Zoning Code; (4) extends terms for Temporary Use Permits; and (5) allows outdoor rooftop commercial uses on public parking structures owned by the City; and
WHEREAS, Interim Zoning Ordinance No. 2754 became effective September 22, 2023 and is set to expire on November 22, 2023;
WHEREAS, the City Council now desires to extend Interim Zoning Ordinance No. 2754 for the full 60 months in accordance with SMMC 9.46.090(C), with a new expiration date of November 22, 2028;
WHEREAS, as the City continues to support local businesses during this next phase of economic recovery following the pandemic, the proposed extension would allow adequate time for staff to further evaluate the 1200 block of the Promenade as a potential arts/entertainment district and evaluate the results of the land use changes included in the Interim Zoning Ordinance;
WHEREAS, the proposed extension would not preclude Council from revisiting the Interim Zoning Ordinance prior to its expiration to potentially amend the provisions or duration thereof where necessary;
WHEREAS, the City Council would also like to make other non-substantive clerical amendments and clarifying language to the Interim Zoning Ordinance, including the following: (1) ensuring the subject area is correctly identified as the “Third Street Promenade Area” by deleting any terms or reference to this area as a “District;” (2) providing greater clarity by noting that “[s]ervice of alcoholic beverages shall be incidental to the primary use” for Cultural Facilities and Instructional Services and for Commercial Entertainment and Recreation to ensure that alcohol service is not the primary use of

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Packet Pg. 1769 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 7 those establishments; and (3) providing greater clarity to the alcohol exemption operational standards for General Retail Sales, Small-Scale and Medium-Scale by: (a) clarifying that retail establishments such as wine shops may offer a tasting component during permitted hours, and (b) removing the requirement that sale of alcoholic beverages be incidental to use, in order to eliminate an inadvertent conflict with such establishment; WHEREAS, the extension of and amendments to the interim zoning regulations set forth in Interim Zoning Ordinance No. 2754 support local business retention and promote new business opportunities within the Downtown, addressing the needs of the business community and residents and supporting small businesses by simplifying land use standards and streamlining review procedures; and
WHEREAS, the City Council finds and declares that a current and immediate threat to the public health, safety, and general welfare exists due to the devastating impact the COVID-19-mandated closures and limitations have had on the local economy, including, but not limited to, the high vacancy rate in the Third Street Promenade Area, and that the approval of additional use permits, variances, building permits or any other applicable entitlement for use which is required in order to comply with the current regulations would result in a threat to public health, safety, and welfare;

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

SECTION 1. Interim Zoning Regulations. (A) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.04.080 to the contrary, the following regulations related to Determining Floor Area shall apply:

9.04.080 Determining Floor Area

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Packet Pg. 1770 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 8 A. Excluded from Floor Area. Floor area does not include:

1. Stairways and stairwells;

2. Elevators, elevator equipment rooms, and elevator shafts;

3. Ramps to a subterranean or semi-subterranean parking structure or ramps between floors of a parking structure provided the ramp does not accommodate parking;

4. Loading spaces and docks used exclusively for loading and unloading as required by Section 9.28.080;

5. Unenclosed decks, balconies, porches, and platforms not used for commercial or restaurant activity;

6. In the Third Street Promenade Area, unenclosed rooftop areas used for commercial or restaurant activity (“unenclosed rooftop areas”), subject to the following specific standards:
a. Unenclosed rooftop areas shall be surrounded by a barrier not to exceed 42 inches in height with an allowable transparent barrier not to exceed 42 inches in height. The barrier shall be permanently affixed to the rooftop; b. Unenclosed rooftop areas, including barrier, shall be set back a minimum five feet from the edges of the building;
c. Portable restrooms, storage sheds, or other similar temporary structures shall not be permitted on the rooftop;
d. Rooftop features such as sunshades, trellises, or canopies shall not exceed 10 feet in height with a maximum aggregate coverage of 50% of the unenclosed rooftop area;
e. Unenclosed rooftop areas shall not be accessible to the public

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Packet Pg. 1771 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 9 outside of their normal business operating hours.

7. Covered and uncovered courtyards, arcades, atria, paseos, walkways, and corridors located at or near the street level and are accessible to the general public provided they are not used as sales, display, storage, service, or production areas;

8. Parking areas located below finished grade or finished floor of habitable space where the vertical distance between finished grade and finished floor is 5 feet or less;

9. Semi-subterranean parking areas that meet the following criteria:
a. The parking area is located below finished grade along a minimum of one street frontage,
b. The portions of the parking area located above finished grade are a result of the site’s slope and cannot feasibly be fully subterranean due to geological or physical site constraints, and
c. The facades of any of the visible portions of the parking area located above finished grade are appropriately treated and landscaped;

10. Mechanical equipment rooms, electrical rooms, telecommunication equipment rooms, and similar space located below grade

11. Enclosures constructed pursuant to Section 9.31.060, Automobile Repair, Major and Minor, for outdoor hoists in existence on the adoption of Ordinance Number 1452 (CCS);

12. Attics;

13. Accessory dwelling units and junior accessory dwelling units established in accordance with Section 9.31.025;

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Packet Pg. 1772 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 10 14. Commercial outdoor space permitted pursuant to SMMC 9.31.199, Outdoor Commercial Uses on Private Property, and SMMC 9.31.200, Outdoor Dining and Seating on Sidewalks, shall be excluded from floor area.

15. In the Third Street Promenade Area, any unenclosed rooftop parking areas on City-Owned Parking Structures as set forth in Section 9.10.050(a). (B) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.04.090 to the contrary, the following regulations related to Determining Floor Area Ratio shall apply:

9.04.090 Determining Floor Area Ratio
Floor Area Ratio (FAR) is the ratio of the floor area, excluding the areas described below, of all principal and accessory buildings on a site to the site area. To calculate FAR, floor area is divided by site area, and typically expressed as a decimal. For example, if the floor area of all buildings on a site totals 20,000 square feet, and the site area is 10,000 square feet, the FAR is expressed as 2.0. For parcels containing one or more zoning designations, only that portion zoned for commercial or industrial use shall be used as parcel area when calculating floor area ratio.

A. Floor Area Ratio Exclusions

1. Floor area devoted to basements;

2. Unenclosed decks, balconies, porches, outdoor dining areas permitted pursuant to Section 9.31.200, Outdoor Dining and Seating on Sidewalks, provided the dining areas have not more than a 42-inch high barrier surrounding the dining area and is visible from the public right-of-way, and other open spaces, and outdoor space permitted pursuant to Section 9.31.199, Outdoor Commercial Uses on Private Property.

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Packet Pg. 1773 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 11 3. In the Third Street Promenade Area, any unenclosed rooftop parking areas on City-Owned Parking Structures that are converted to outdoor rooftop commercial use in accordance with SMMC 9.10.050(a).
(C) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.10.040 to the contrary, the following land use regulations shall apply in the Downtown Districts:

SMMC § 9.10.040 Land Use Regulation
Table 9.10.040 prescribes the land use regulations for Downtown Districts. The regulations for each district are established by letter designations below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review.
“P” designates permitted uses. Uses not listed in Table 9.10.040 may be permitted upon a determination by the Director, or designee, that the use is similar to, and not more intrusive or disruptive than, uses permitted in the District. Factors to be considered in making this determination shall include, but are not limited to, maximum parking requirements, operational characteristics, and prior determinations on similar uses. “L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table.
“MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit. Uses not listed in Table 9.10.040 may be permitted after review and approval of a Minor Use Permit upon a determination by the Director, or designee, that the use is similar to, and not more intrusive or disruptive than, a use that requires an MUP in the District. Factors to be considered in making this determination shall include, but are not limited to, maximum parking requirements, operational characteristics, and prior

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Packet Pg. 1774 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 12 determinations on similar uses.
“CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit. Uses not listed in Table 9.10.040 may be permitted after review and approval of a Conditional Use Permit upon a determination by the Director, or designee, that the use is similar to, and not more intrusive or disruptive than, a use that requires a CUP in the District. Factors to be considered in making this determination shall include, but are not limited to, maximum parking requirements, operational characteristics, and prior determinations on similar uses. “—” designates uses that are not permitted.

Land uses are defined in Chapter 9.51 (“Use Classifications”) of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”). Use classifications and sub-classifications not listed in the table are prohibited. Accessory uses are permissible when they are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal uses and which are consistent and not more disturbing or disruptive than Ppermitted uses. The table also notes additional use regulations that apply to various uses. Section numbers in the righthand column refer to other Sections of this Ordinance. .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
Residential Uses
Residential Housing Types See sub-classifications below.

Accessory Dwelling Unit P P P P P P P
Section 9.31.025
Accessory
Dwelling Units
and Junior
Accessory
Dwelling Units

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Packet Pg. 1775 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 13 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
Junior Accessory Dwelling
Unit P P P P P P P
Section 9.31.025
Accessory
Dwelling Units
and Junior
Accessory
Dwelling Units
Multiple-Unit Dwelling P P L(1) L(1) P P P
Section 9.31.195,
Multiple-Unit
Dwelling Projects
Senior Citizen Multiple-Unit
Residential P P L(1) L(1) P P L(1)
Section 9.31.195,
Multiple-Unit
Dwelling Projects
Single-Room Occupancy
Housing L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Section 9.31.330,
Single Room
Occupancy
Structures
Group Residential MUP MUP,
L(3) MUP, L(1) MUP, L(1) MUP MUP MUP
Congregate Housing P MUP,
L(3) L(1) CUP, L(1) MUP MUP MUP
Section 9.31.110,
Congregate and
Transitional
Housing
Senior Group Residential P MUP,
L(3) MUP, L(1) MUP, L(1) MUP, L(1)
MUP,
L(1)
MUP,
L(1)
Section 9.31.310,
Senior Group
Residential
Elderly and Long-Term
Care P L(3) L(1) L(1) L(1) L(1) L(1)
Emergency Shelters L(6)/CUP L(6)/
CUP CUP/L(1) L(1), L(6)/CUP
L(6)/
CUP
L(6)/
CUP
L(6)/
CUP
Section 9.31.130,
Emergency
Shelters
Family Day Care See sub-classifications below.

Large L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Section 9.31.140,
Family Day Care,
Large
Small L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Residential Facilities See sub-classifications below.

Residential Care, General P L(3) L(1) L(1) P L(1) L(1) Section 9.31.270, Residential Care
Facilities
Residential Care, Limited P L(3) L(1) L(1) P L(1) L(1)
Residential Care, Senior P L(3) L(1) L(1) P L(1) L(1)
Hospice, General P L(3) L(1) L(1) P L(1) L(1)
Hospice, Limited P L(3) L(1) L(1) P L(1) L(1)
Supportive Housing P L(3) L(1) L(1) L(1) L(1) L(1)
Transitional Housing P L(3) L(1) L(1) L(1) L(1) L(1)
Section 9.31.11,
Congregate and
Transitional
Housing
Public and Semi-Public Uses
Adult Day Care L(1) L(3) L(1) L(1) L(1) L(1) L(1)
Child Care and Early
Education Facilities P P P P P P P
Section 9.31.120,
Child Care and
Early Education
Facilities
Colleges and Trade Schools,
Public or Private CUP L(1) L(1) L(1) L(1) L(1) L(1)
Community Assembly L(7)/CUP CUP L(15),
L(25) P CUP L(1) L(7)/ CUP

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Packet Pg. 1776 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 14 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
Community Gardens P P L(25) - P P P P
Cultural Facilities P P P P P P P
Hospitals and Clinics P P L(1) L(1) P - P
Park and Recreation Facilities,
Public P P P P P P P
Public Safety Facilities P P P P P P P
Schools, Public or Private CUP L(3) L(1) P P - CUP
Social Service Centers P P - P P P P
Section 9.31.350,
Social Service
Centers
Commercial Uses
Animal Care, Sales, and
Services See sub-classifications below.

Grooming and Pet Stores L(5)/CUP L(5)/CU
P P L(5)/CUP L(5)/ CUP
L(5)/
CUP
L(5)/
CUP
No more than 10
dogs or cats can
be kept overnight
Pet Day Care Services MUP MUP - MUP MUP MUP MUP
Veterinary Services MUP MUP - MUP MUP - MUP
Automobile/Vehicle Sales and
Service See sub-classifications below.

Alternative Fuels and
Recharging Facilities
CUP/
L(19)
CUP/
L(19) - - CUP/ L(19) - -
Automobile Rental L(10) L(10) L(10) L(10) L(10) L(10) L(10) Automobile Storage Use - - - - - - -
New Automobile/Vehicle
Sales and Leasing
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/CUP
L(8),
L(5)/
CUP
- -
Additions 7,500 sq ft or
less to Automobile/
Vehicle Sales and
Leasing buildings
existing as of 7/06/2010
L(20)/
MUP
- - - - - -
Section 9.31.070
Automobile/Vehi
cle Sales,
Leasing, and
Storage
Additions larger than
7,500 sq ft to
Automobile/Vehicle Sales
and Leasing buildings
existing as of 7/06/2010
L(20)/
CUP
- - - - - -
Automobile/Vehicle Repair,
Major
L(19) - - - - - -
Automobile/Vehicle Service
and Repair, Minor
L(19) - - - - - -
Automobile/Vehicle
Washing
L(19) - - - - - -
Service Station L(19) L(19) - - L(19) - -
Towing and Impound - - - - - - -
Banks and Financial
Institutions
See sub-classifications below.

Banks and Credit Unions L(4)/CUP L(3),
L(5)/CUP
- - L(4)/
CUP
L(4)/
CUP
L(4)/
CUP
Check Cashing Businesses - - - - - - -
Business Services L(5)/CUP L(5)/CUP L(15) L(5)/CUP L(5)/ CUP
L(5)/
CUP
L(5)/
CUP
Commercial Entertainment and
Recreation See sub-classifications below.

Cinemas & Theaters, up to
99 seats
- CUP L(24)P P P - -

10.A.a
Packet Pg. 1777 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 15 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
Cinemas & Theaters, more
than 99 seats
- - L(24)P CUP CUP - -
Convention and Conference
Centers

CUP CUP P CUP CUP CUP CUP
Large-Scale Facility L(21)/
CUP
L(21)/
CUP
L(21)/CUP
, L(25)
L(21)/ CUP L(21)/
CUP
L(21)/
CUP
-
Small-Scale Facility L(5)/CUP L(5)/CUP L(5)/CUP,
L(25)
L(5)/CUP L(5)/
CUP
L(5)/
CUP
L(5)/
CUP
Section 9.31.340
Small Scale
Facility
Fortunetelling P P P P P P P
Eating and Drinking
Establishments See sub-classifications below.

Bars/Nightclubs/Lounges CUP CUP L(26)CUP CUP CUP CUP(10 )
-
Restaurants, Full-Service,
Limited Service & Take-Out
(2,500 sq ft and smaller,
including Outdoor Dining
and Seating)
P P L(22) P P P P Section 9.31.040,
Alcoholic
Beverage Sales
Restaurants, Full-Service,
Limited Service & Take-Out
(2,501 – 5,000 sq ft,
including Outdoor Dining
and Seating)
P P L(22) P P P P Section 9.31.280,
Restaurants,
Limited Service,
and Take-Out
Only
Restaurants, Full-Service,
Limited Service & Take-Out
(greater than 5,000 sq ft,
including Outdoor Dining
and Seating)
CUP P L(22) P P P CUP Section 9.31.200,
Outdoor Dining
and Seating
Food Hall (up to 175 seats) CUP CUP P CUP CUP CUP CUP
Equipment Rental - - - - L(5)/
CUP
- -
Food and Beverage Sales See sub-classifications below.

Convenience Market CUP L(5)/CUP L(5)/CUP L(5)/CUP L(5)/ CUP
L(5)/
CUP
- Section 9.31.040,
Alcoholic
Beverage Sales
Farmer’s Market CUP P P P P P P
General Market L(12)/
CUP
L(12)/
CUP
L(12)/
CUP
L(12)/ CUP L(12)/
CUP
L(12)/
CUP
L(12)
/ CUP
Section 9.31.040,
Alcoholic
Beverage Sales Liquor Stores CUP CUP L(26)P CUP CUP CUP - Funeral Parlors and Mortuaries CUP - - - - - -
Instructional Services L(5)/CUP L(3),
L(5)/CUP
L(1),
L(5)/CUP
L(5)/CUP L(5)/
CUP
L(1),
L(5)/
CUP
L(1),
L(5)/
CUP
Live-Work L(13) L(3)(13) L(1)(13) L(13) L(13) L(1)(13
)
L(13) Section 9.31.170,
Live-Work Units
Lodging See sub-classifications below.

Bed and Breakfast MUP MUP P MUP MUP MUP MUP Section 9.31.090, Bed and
Breakfasts
Hotels and Motels CUP CUP P CUP CUP CUP CUP,
L(19)
Maintenance and Repair
Services
L(5)/CUP - - - - - -

10.A.a
Packet Pg. 1778 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 16 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
Nurseries and Garden Centers L(5)/CUP L(5)/CUP - L(5)/CUP L(5)/ CUP
- L(5)/
CUP
Section 9.31.220,
Outdoor Retail
Display and Sales
Offices See sub-classifications below.

Business and Professional L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Creative L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Medical and Dental L(14)/
CUP
L(3),
L(5)/CUP
P L(1) L(3),
L(5)/
CUP
L(1) L(1)
Walk-In Clientele L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(5)/CUP L(3),
L(5)/
CUP
L(5)/
CUP
L(5)/
CUP
Outdoor Newsstands MUP MUP MUP MUP MUP MUP MUP Section 9.31.210, Outdoor
Newsstands
Parking, Public or Private CUP CUP - CUP CUP,
L(11)
- CUP
Personal Services See sub-classifications below.

General Personal Services L(5)/CUP L(5)/CUP P L(5)/CUP L(5)/ CUP
- L(5)/
CUP
Section 9.31.230,
Personal Service
Physical Training L(17),
L(5)/CUP
L(17),
L(5)/CUP
L(17),
L(21)/CU
P
L(17),
L(5)/CUP
L(17),
L(5)/
CUP
L(17),
L(5)/
CUP
L(17),
L(5)/
CUP
Tattoo or Body Modification
Parlor
MUP MUP P MUP MUP MUP - Section 9.31.230,
Personal Service
Retail Sales See sub-classifications below.

Building Materials Sales
and Services
P - - - - - - Section 9.31.220,
Outdoor Retail
General Retail Sales, Small Display and Sales -
Scale
L(5)/CUP L(5)/CUP P L(5)/CUP L(5)/
CUP
L(5)/
CUP
L(5)/
CUP
General Retail Sales,
Medium-Scale

CUP CUP P CUP CUP - CUP
General Retail Sales, LargeScale- - - - - - -
Medical Marijuana
Dispensaries
CUP - - - - - - Section 9.31.185,
Medical
Marijuana
Dispensaries
Pawn Shops - - - - - - -
Swap Meets - - - - - - -
Industrial Uses
Artist’s Studio P P L(2) L(1) P P P
Commercial Kitchens - - - CUP - -
Industry, Limited - - L(2),
L(23)
- - - -
Media Production See sub-classifications below.

Support Facilities L(14)/
CUP
L(3),
L(5)/CUP
L(1) L(1) L(3),
L(5)/
CUP
L(1) L(1)
Transportation, Communication, and Utilities Uses
Bus/Rail Passenger Stations P P P P P - P

10.A.a
Packet Pg. 1779 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 17 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
City Bike Share Facility P P P P P P P
Communication Facilities See sub-classifications below.

Antennas and Transmission
Towers
- - - - - - -
Equipment within Buildings - - - - - - -
Light Fleet-Based Services - - - - MUP - -
Utilities, Major L(18) - - - - - -
Utilities, Minor P P P P P P P
Specific Limitations:
(1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only. (2) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, exhibitions, displays, demonstrations, or instruction. (3) Between 4th and 7th Court, permitted in mid-block parcels on the ground floor and upper floors. On all other parcels, permitted anywhere on the ground floor if the space has street frontage and was occupied by office on, or is vacant but was occupied by office in the 12 months preceding, the date this Ordinance is effective; otherwise, permitted on upper floors and on the ground floor where the entire tenant space including the primary entry is located at least 50 feet from the front property line. (4) Permitted except no ground floor tenant space shall exceed 20 linear feet of ground floor street frontage without a Conditional Use Permit.
(5) Permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective. Permitted in new buildings, except:
(a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit. (b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations. (6) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds. (7) Any community assembly facility abutting a residential district shall require approval of a Conditional Use Permit. (8) Limited to automobile/vehicle dealer showrooms only which must display one alternative fuel automobile/vehicle if such an automobile/vehicle is available in the dealer’s fleet, and limited to six showrooms in the Third Street Promenade Area. (9) (Reserved)
(10) Permitted as an ancillary use to support a primary use. (11) Limited to public parking facilities only.
(12) General markets greater than 15,000 square feet require approval of a Conditional Use Permit, except general markets in the MixedUse Boulevard district greater than 25,000 square feet require approval of a Conditional Use Permit. (13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the livework unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from users that generate airborne particulates in a unit with an unenclosed kitchen.
(14) All new construction requires approval of a Conditional Use Permit or permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective, except:
(a) New additions of 50% or more additional square footage to an existing building at any one time, or incrementally, after the effective date of the ordinance codified in this Chapter, requires approval of a Conditional Use Permit. (b) No ground floor, street-fronting, non-office or non-media production support facility use, non-medical or non-dental office use tenant space shall be changed into an individual office use or a media production support facility use, or individual medical or dental office use occupying more than 7,500 square feet of floor area and/or exceeding 50 linear feet of street frontage without the approval of a Conditional Use Permit.
(15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors. (16) Limited to public parking facilities only.
(17) Youth-serving personal services, physical training requires review and approval of passenger loading and drop-off plan by the Director.
(18) Limited to electric distribution substations.

10.A.a
Packet Pg. 1780 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 18 .

Use Classification LT NV
BC (Third
Street
Promenade
Area)
BC
(Excluding
Third
Street
Promenade
Area) TA OT WT
Additional
Regulations
(19) Limited to legally established existing uses as of the date this Specific Plan is effective. (20) Auto dealerships existing as of July 6, 2010 are considered permitted uses. Expansions to existing dealerships conforming to the urban auto dealership format standards in Section 9.31.070, Automobile/Vehicle Sales, Leasing and Storage are permitted. Expansions to existing dealerships of 7,500 square feet or less that do not conform to the urban auto dealership format standards shall require an MUP. Expansions to existing dealerships larger than 7,500 square feet that do not conform to the urban auto dealership formal standards shall require a CUP.
(21) Except in Santa Monica Place, nNo individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit.
(22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited:
(a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and (b) Characteristics, including but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. (23) Excludes commercial laundries and dry cleaning plants, monument works, medicinal cannabis, and medicinal cannabis products. (24) Permitted use. Additionally, outdoor rooftop cinemas/theaters are permitted, limited only to the rooftops on City-owned parking structures.
(25) Permitted as an outdoor use limited only to the rooftops on City-owned parking structures. (26) Permitted, subject to obtaining an Alcohol Exemption pursuant to SMMC 9.31.040(D)(2). If no Alcohol Exemption is obtained, a Conditional Use Permit is required.
(D) Notwithstanding any provisions of Santa Monica Municipal Code to the contrary, the following regulations set forth in Section 9.10.050 related to Outdoor Rooftop Uses on City-Owned Parking Structures shall apply:

9.10.050 Outdoor Rooftop Commercial Uses on City-Owned Parking Structures Any proposed conversion of parking area to accommodate an outdoor rooftop commercial use on the top-level of an existing City-Owned parking structure within the Third Street Promenade Area District shall be subject to the following:

A. Excluded as Floor Area and from Floor Area Ratio. Any unenclosed rooftop parking areas on City-Owned Parking Structures that are converted to and utilized as outdoor rooftop commercial space as permitted in the district, including any new enclosed structures supportive of such permitted uses erected within the converted parking area including but not limited to, temporary or permanent restroom facilities, concession

10.A.a
Packet Pg. 1781 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 19 stands, and storage structures, shall be excluded from floor area and floor area ratio requirements.

B. Allowable Height Projections. Maximum height projections as measured from the finished parking surface level, including any deck-leveling surfaces as required, shall be allowed as set forth in Section 9.21.060(A).

C. Applicability Certain Land Use and Zoning Related Provisions.

Notwithstanding anything to the contrary in Chapters 9.65, Child Care Linkage Program,

9.66, Transportation Impact Fee Program, 9.67, Parks and Recreation Development Impact Fee Program, and 9.68, Affordable Housing Commercial Linkage Fee Program, for purposes of determining applicability, conversion of rooftop parking area on Cityowned parking structures to outdoor rooftop commercial use shall not be considered a “Project” and shall not be subject to associated impact fees. (E) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.21.060 to the contrary, the following regulations related to Height Projections shall apply:

9.21.060 Height Projections
No structure shall project above the height limits established in this Article except as specified in this Section.

A. Building-Mounted and Attached Structures. Table 9.21.060 establishes the maximum permitted projection(s) above the height limit of a building and into the daylight plane for structures that are typically mounted or attached to a building. These projections are by right, with no discretionary permit required. Table 9.21.060 also establishes limitations in the horizontal coverage of permitted projections. Some allowances apply in all Zoning Districts while others are limited to specified Zoning Districts. In the Single-Unit

10.A.a
Packet Pg. 1782 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 20 Residential (R1) District, allowed height projections into the minimum side stepback areas above 23 feet shall be permitted. None of these projections shall permit occupiable space above the height limit. The total aggregate coverage of projections shall not exceed 30% of a roof’s area. This limitation shall not apply to solar energy systems (see Section

9.21.150).

TABLE 9.21.060: ALLOWED PROJECTIONS ABOVE HEIGHT LIMITS AND DAYLIGHT PLANE Structure
Maximum Aggregate
Coverage of Building’s Roof
Area (%); Other Locational
Restrictions
Maximum
Vertical
Projection (ft.)
Above the Height
Limit*
Projections Allowed in All Zoning Districts:

Skylights No limit 1 ft.

Skylights on flat roofs 30%; May not be located
within 5 ft. of any edge of
the roof
5 ft.

Chimneys, vent stacks 5% 5 ft.

Windscoops 5% 5 ft.

Solar energy systems located on a rooftop See Section 9.21.150 See Section

9.21.150
Antennas
One standard television receive-only nonparabolic
antenna and one vertical whip
Antenna
10%; May not be located
between the building and
any
street-facing parcel line
25 ft.

Other antennas See Chapter 9.32, Telecommunications Facilities TABLE 9.21.060: ALLOWED PROJECTIONS ABOVE HEIGHT LIMITS AND DAYLIGHT PLANE Structure
Maximum Aggregate
Coverage of Building’s Roof
Area (%); Other Locational
Restrictions
Maximum
Vertical
Projection (ft.)
Above the Height
Limit*
Parapets, fire escapes, catwalks, and open guard rails
required by law As required by law As required by
law
Projections Allowed in All Districts Except R1 and OP-1 Districts:

Non-occupiable features such as steeples, spires, towers, domes, and cupolas 10% 10 ft.

Rooftop features for outdoor living areas, such as
sunshade, open railings, trellises, and landscaping 25% 10 ft.

Elevator shafts 15% 18 ft.* above
the roofline
Stairwells 25% 14 ft.* above

10.A.a
Packet Pg. 1783 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 21 the roofline
Mechanical rooms and enclosures 25% 12 ft.* above
the roofline
Ventilating fans, water tanks, cooling towers, or other equipment required to operate and maintain a building,
along with screening of such equipment
required by Section 9.21.140, Screening
Total area enclosed by all
screening may not exceed
30% of roof area
12 ft.

Projections Allowed for Outdoor Rooftop Commercial Uses on City-Owned Parking Structures Located in the Third Street Promenade Area District:

Outdoor cinema and theater screens. None 25 ft. above the finished parking
surface level,
including deckleveling surfaces as
required.

Concession stands, restroom facilities, storage
structures, shade structures, or similar structures
associated with rooftop cinemas/theaters,
None 15 ft. above the
finished parking
surface level,
including deckleveling surfaces as
required.

Structures associated with rooftop community
assembly, community gardens, and small/large-scale
commercial entertainment and recreation facilities
None 15 ft. above the
finished parking
surface level,
including deckleveling surfaces as
required.
(F) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.28.040 to the contrary, the following regulations related to Calculating Off-Street Parking and Loading Spaces shall apply:

9.28.040 Calculating Off-Street Parking and Loading Spaces A. Rules for Calculating Required Spaces. The following rules shall be followed for calculating the amount of off-street parking and loading spaces.

1. Rounding. Fractional space requirements totaling 0.5 or above shall be rounded up to the next whole space after calculating the total number of required spaces.

Rounding up shall not apply to loading spaces; however, a minimum of one space shall be provided.

2. Residential Uses. For purposes of calculating off-street parking

10.A.a
Packet Pg. 1784 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 22 requirements for dwelling units, all private living spaces including, but not limited to, dens, studios, family rooms, studies and lofts shall be considered as “bedrooms” except that a maximum of one such room per unit shall not count as a bedroom if it is less than 100 square feet in area. Kitchens, bathrooms, and one living room per unit shall not be considered bedrooms. Semiprivate rooms shall not count as bedrooms if they have no doors and a minimum 7-foot opening to adjacent living space. A loft or mezzanine shall not count as a bedroom if the maximum width of the loft or mezzanine is less than 7 feet.

3. Non-residential Uses. Unless otherwise specified, the floor areas used to calculate the number of off-street parking and loading spaces required for non-residential uses shall include:
a. All floor area located above or below grade devoted to office, retail, service, or other activities and uses, storage areas, restrooms, lounges, lobbies, kitchens, and interior hallways and corridors, unless exempted by this Chapter; and
b. All outdoor areas that will accommodate a permanent activity that will generate a demand for parking facilities in addition to that which is provided for principal activities and uses within the building or structure.

4. Multiple Uses. When two or more principal uses are located on the same parcel, the estimated parking demand shall be the sum of the estimated demand of the various individual uses computed separately, in accordance with this Section, unless shared parking is approved pursuant to Section 9.28.180.

10.A.a
Packet Pg. 1785 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 23 5. Exclusions. Floor area devoted to the following shall not be included when determining required parking and loading spaces:
a. Automobile parking;
b. Loading areas;
c. Driveways, drive aisles, ramps;
d. Bicycle parking;
e. Showers or locker areas not associated with a physical training, personal service or instructional service; and
f. Outdoor dining areas and other outdoor space permitted pursuant to Section 9.31.199, Outdoor Commercial Uses on Private Property, and Section

9.31.200, Outdoor Dining and Seating on Sidewalks. Outdoor dining and seating less than 200 square feet in size associated with restaurants. (G) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.31.040 to the contrary, the following regulations related to Alcoholic Beverage Sales shall apply:

9.31.040 Alcoholic Beverage Sales
A. Purpose.

1. To limit the potential for community problems such as public drunkenness, drunk driving, traffic accidents, violent crime, noise, and nuisance from an overabundance or overconcentration of the availability of alcohol and its consumption. To regulate traditional alcohol outlets, including bars, restaurants, liquor stores, and supermarkets, as well as new types of alcohol outlets, to ensure that public health, safety, and welfare are not threatened.

10.A.a
Packet Pg. 1786 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 24 2. To establish control measures that will permit the City to review and approve new alcohol outlets on a case-by-case basis and to condition that approval based on the specific type of alcohol outlet, neighborhood location, and potential problems involved.

B. Conditional Use Permit Required. No person shall dispense for sale or other consideration, alcoholic beverages, including beer, wine, malt beverages, and distilled spirits, for on-site or off-site consumption without first obtaining a Conditional Use Permit unless the proposed use has received an Alcohol Exemption Zoning Conformance Permit in accordance with subsection D or is otherwise determined to be exempt after a Zoning Conformance Review in accordance with subsection E.

C. Findings for Approval of Conditional Use Permit. The Planning Commission, or the City Council on appeal, may approve the dispensing, for sale or other consideration, alcoholic beverages, including beer, wine, malt beverages, and distilled spirits for on-site or off-site consumption only if, in addition to the required findings for Conditional Use Permits contained in Section 9.41.060, Required Findings (for a Conditional Use Permit), all of the following findings can be made in an affirmative manner:

1. The proposed alcohol sales will not adversely affect the welfare of neighborhood residents in a significant manner;

2. The proposed alcohol sales will not contribute to an undue concentration of alcohol outlets in the area;

3. The proposed alcohol sales will not detrimentally affect nearby neighborhoods, considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets; and

10.A.a
Packet Pg. 1787 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 25 4. The sale of alcohol will not increase traffic congestion or generate a demand for parking that will adversely affect surrounding businesses and residents.

D. Alcohol Exemption Zoning Conformance Permit.

1. Citywide Excluding Third Street Promenade Area, Santa Monica Place, and Santa Monica Pier. Except as provided in paragraphs 2 and 3, below, limited and full-service restaurants that offer alcoholic beverages incidental to meal service that are located citywide, excluding in the Third Street Promenade Area and the area bounded by 2nd Street to the west, Broadway to the north, 4th Street to the east, and Colorado to the south, shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons, and the counter area shall not function as a separate bar area;
b. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted;
c. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The establishment shall serve food to patrons during all hours the establishment is open for customers; d. The premises shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises;

10.A.a
Packet Pg. 1788 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 26 e. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license;
f. No video or other amusement games shall be permitted on the premises;
g. Entertainment may only be permitted in the manner set forth in Section 9.31.290, Restaurants with Entertainment;
h. The primary use of any outdoor dining area shall be for seated meal service. Patrons who are standing in the outdoor seating area shall not be served; i. The operation shall at all times be conducted in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator shall control noisy patrons leaving the restaurant; j. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 12:00 a.m. with complete closure and all employees vacated from the building by 1:00 a.m. All alcoholic beverages must be removed from the outdoor dining area no later than 11:00 p.m. Sunday through Thursday. No after-hours operation is permitted;
k. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their

10.A.a
Packet Pg. 1789 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 27 own drinks or pour their own wine or beer. All food items shall be available from the premises’ full service menu;
l. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted.

There shall not be any age limitation imposed restricting access to any portion of the restaurant;
m. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the restaurant; n. Establishments with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code; o. Prior to occupancy, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues;
p. Prior to occupancy, the operator shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABCsponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC

10.A.a
Packet Pg. 1790 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 28 no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator shall provide the City with an annual report regarding compliance with this requirement. The operator shall be subject to any future Citywide alcohol awareness training program affecting similar establishments; q. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the State ABC;
r. Prior to occupancy, the operator shall submit a plan describing the establishment’s designated driver program, which shall be offered by the operator to the establishment’s patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic drink for every party of 2 or more ordering alcoholic beverages;
s. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to please not litter or block driveways in the neighborhood;
t. Employees of the establishment shall walk a 100-foot radius from the facility at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons; and u. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in

10.A.a
Packet Pg. 1791 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 29 these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director;
v. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

2. Third Street Promenade Area and Santa Monica Place. Notwithstanding the provisions of paragraph 1, above, in the Third Street Promenade Area and the area bounded by 2nd Street to the west, Broadway to the north, 4th Street to the east, and Colorado to the south, the following uses that offer alcoholic beverages incidental to the primary use, including bars/nightclubs/lounges that primarily serve alcoholic beverages, shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions established for each use:
a. Restaurants (Full-Service and Limited Service and Take Out) and Food Halls
i. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
ii. From 8:00 a.m. until at least 10:00 p.m., food service shall be available at all times when alcohol is being served.
iii. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.

10.A.a
Packet Pg. 1792 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 30 iv. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
v. Entertainment may only be permitted in the manner set forth in Section 9.31.290(D), Restaurants with Entertainment;
vi. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups.
vii. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
viii.Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code, except that Section

4.21.140 Nightclubs, Bars and Establishments with Amplified Music shall not apply.
ix. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
x. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state

10.A.a
Packet Pg. 1793 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 31 management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
xi. Within 30 days from the date of approval of the exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
xii. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free non-alcoholic drink for every party of 2 or more ordering alcoholic beverages.

10.A.a
Packet Pg. 1794 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 32 xiii. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
xiv. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons.
xv. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.
xvi. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. b. Bars/Nightclubs/Lounges
i. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
ii. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
iii. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.

10.A.a
Packet Pg. 1795 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 33 iv. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
v. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code, except that Section

4.21.140 Nightclubs, Bars and Establishments with Amplified Music shall not apply.
vi. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
vii. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved

10.A.a
Packet Pg. 1796 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 34 by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
viii.Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
ix. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free nonalcoholic drink for every party of 2 or more ordering alcoholic beverages. x. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
xi. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. xii. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.

10.A.a
Packet Pg. 1797 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 35 xiii.In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. c. Convenience Markets and Liquor Stores
i. The permitted hours of alcoholic beverage sales shall be 8:00 a.m. to 10:00 p.m. daily.
ii. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
iii. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
iv. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
v. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
vi. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. vii. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project

10.A.a
Packet Pg. 1798 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 36 development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.
viii.In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. d. Cultural Facilities and Instructional Services
i. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
ii. Service of alcoholic beverages shall be incidental to the primary use. iii. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
ivii. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
iv. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
vi. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
vii. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training

10.A.a
Packet Pg. 1799 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 37 programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
viii.Within 30 days from the date of approval of the exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
ixviii. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons.
ix. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project

10.A.a
Packet Pg. 1800 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 38 development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.
xi. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. e. Outdoor Rooftop Commercial Uses: Cinemas, Community
Assembly, Small/Large-Scale Commercial Entertainment and Recreation Facilities i. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
ii. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
iii. Premises with amplified sound or music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code, except that Section 4.21.140 Nightclubs, Bars and Establishments with Amplified Music shall not apply.
iv. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
v. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness

10.A.a
Packet Pg. 1801 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 39 training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
vi. Within 30 days from the date of approval of the exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
vii. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free nonalcoholic drink for every party of 2 or more ordering alcoholic beverages.

10.A.a
Packet Pg. 1802 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 40 viii.Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
ix. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. x. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.
xi. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. f. Commercial Entertainment and Recreation: Small-Scale Facilities and Large-Scale Facilities
i. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
ii. Service of alcoholic beverages shall be incidental to the primary use. iii. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
ivii. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.

10.A.a
Packet Pg. 1803 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 41 iv. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
vi. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code, except that Section

4.21.140 Nightclubs, Bars and Establishments with Amplified Music shall not apply.
vii. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
viii.Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved

10.A.a
Packet Pg. 1804 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 42 by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
ixviii. Within 30 days from the date of approval of the exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
ix. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free nonalcoholic drink for every party of 2 or more ordering alcoholic beverages. xi. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
xii. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. xiii.The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.

10.A.a
Packet Pg. 1805 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 43 xivii. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. g. Retail Sales: General Retail Sales, Small-Scale and Medium-Scale i. The permitted hours of alcoholic beverage sales for off-site consumption and or on-site tasting shall be 8:00 a.m. to 2:00 a.m. daily. ii. Sale of alcoholic beverages shall be incidental to the primary use. iii. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
iiiv. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
iv. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. vi. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
vii. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation.

10.A.a
Packet Pg. 1806 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 44 The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABCsponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments. viii. Within 30 days from the date of approval of the exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
viiix. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free non-alcoholic drink for every party of 2 or more ordering alcoholic beverages.
ix. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.

10.A.a
Packet Pg. 1807 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 45 xi. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. xii. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans. Minor amendments to the plans shall be subject to approval by the Director.
xiii. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

2. Third Street Promenade Area. Notwithstanding the provisions of paragraph 1, above, in the Third Street Promenade Area, limited and full-service restaurants, food halls, bars/nightclubs/lounges, and small and medium scale general retail sales shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
b. From 8:00 a.m. until at least 10:00 p.m., food service shall be available at all times when alcohol is being served.

10.A.a
Packet Pg. 1808 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 46 c. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
d. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
e. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups.
f. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.
g. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless food service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer.
h. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the premises.

10.A.a
Packet Pg. 1809 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 47 i. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. j. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
k. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.

10.A.a
Packet Pg. 1810 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 48 l. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
m. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free nonalcoholic drink for every party of 2 or more ordering alcoholic beverages. n. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
o. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. p. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director.
q. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

10.A.a
Packet Pg. 1811 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 49 3. Santa Monica Pier. Notwithstanding the provisions of paragraph 1, above, limited and full service restaurants, bars/nightclubs/lounges, food halls, and small and medium scale general retail sales on the Santa Monica Pier shall be exempt from the provisions of the Conditional Use Permit requirement of subsection B of this Section if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions:
a. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily.
b. From 8:00 a.m. until at least 10:00 p.m., food service shall be available at all times when alcohol is being served.
c. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license.
d. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.
e. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups.
f. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises.

10.A.a
Packet Pg. 1812 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 50 g. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless food service is provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer.
h. The premises shall not organize or participate in organized “pubcrawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the premises.
i. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. j. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.
k. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the

10.A.a
Packet Pg. 1813 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 51 plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments.
l. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC.
m. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free nonalcoholic drink for every party of 2 or more ordering alcoholic beverages. n. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood.
o. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons.

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Packet Pg. 1814 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 52 p. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director.
q. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section.

4. With respect to the Director’s decision for Alcohol Exemption Zoning Conformance Permits for restaurants with over 50 seats and subject to subsection D(1) above, within 2 business days from the date when the determination has been made concerning the application and posted on the City’s website, the Director shall transmit a notice of determination that summarizes the determination and provides a website link to the Statement of Official Action to the applicant at the address shown on the application and to all property owners and residential and commercial tenants within a radius of 750 feet from the exterior boundaries of the property involved in the application.

E. Zoning Conformance Review.

1. When an existing alcohol outlet without a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review in accordance with the following:
a. Except as provided in paragraph b, below, an existing alcohol outlet that was lawfully established and is nonconforming solely due to the lack of an approved Conditional Use Permit is exempt from the requirements of this Section

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Packet Pg. 1815 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 53 if the licensed premises have remained in continuous operation without substantial change in mode or character of operation. Approval of a Conditional Use Permit shall be required for a change in the licensed classification. The operation of an existing nonconforming alcohol outlet shall be considered lapsed and a Conditional Use Permit shall be required where operations have been discontinued for a period of over one year.
i. The one-year period to determine that a nonconforming alcohol outlet has been abandoned shall commence when the use ceases and any one of the following occurs:
(1) The business license lapses;
(2) The site is vacated;
(3) The lease is terminated;
(4) Utilities are terminated; or
(5) A conforming use that meets the applicable
requirements of this Article is lawfully established in the space previously occupied by the nonconforming alcohol outlet. ii. Once the one-year period has commenced under subsection (E)(1)(a)(i) that period shall only be terminated if the nonconforming alcohol outlet is fully licensed, permitted, and operational for 60 continuous days. Operational shall mean that the nonconforming alcohol outlet is open for business to the public and provides services typically associated with the nonconforming alcohol outlet during the

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Packet Pg. 1816 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 54 hours and days that are customary for that nonconforming alcohol outlet.
iii. Cessation of use due to remodeling shall not be considered abandonment so long as building permits are active in accordance with Chapter 8.08 of the Municipal Code. However, if the building permit expires before the use resumes, the one-year period under subsection (E)(1)(a)(i) shall relate back and commence with the cessation of use. iv. Any existing premises where operations have been discontinued for these time periods shall be required to obtain a Conditional Use Permit prior to resuming business whether or not a Conditional Use Permit was obtained in the past for the premises.
v. A substantial change in mode or character of operation shall include, but is not limited to, a change in operational hours that extends past 11:00 p.m. Sunday through Thursday and midnight on Friday and Saturday, a 5% increase in the floor area of the premises, a 10% increase in the shelf area used for the display of alcoholic beverages, queuing outside the establishment, age requirements for entry, checking identification at the door, implementing a cover charge, offering bottle service, or a 5% increase in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district.

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Packet Pg. 1817 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 55 (1) “Bottle service” shall mean the service of any full bottle of liquor, wine, or beer, of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer.
(2) “Cover charge” shall mean requiring payment of
customers before they may enter the establishment.
b. Notwithstanding the provisions of paragraph a, above, when an existing alcohol outlet (i) located within the Third Street Promenade Area and (ii) without a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to confirm consistency with current operations, except that an existing alcohol outlet that was lawfully established and is nonconforming solely due to the lack of an approved Conditional Use Permit shall not be subject to a zoning conformance review if the licensed premises have remained in continuous operation without substantial change in mode or character of operation. As used in this paragraph, a substantial change in mode or character of operation shall include, but is not limited to: a 5% increase in the floor area of the premises; a 10% increase in the shelf area used for the display of alcoholic beverages; implementing a cover charge, that is, requiring payment from customers before they may enter the premises; or a 5% increase in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district.

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Packet Pg. 1818 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 56 2. When an existing alcohol outlet with a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to ensure compliance with the existing CUP.
(H) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.31.290 to the contrary, the following regulations related to Restaurants with Entertainment shall apply:

9.31.290 Restaurants with Entertainment
A. Except as provided in subsection B, below, Restaurantsrestaurants may provide entertainment including but not limited to music, DJs, song, dance, stand-up comedy, and poetry readings for the patrons’ enjoyment if they meet the following standards.

1. There is sit down meal service provided at all times while the entertainment is taking place.

2. There is no permanent or temporary dance floor or dance area for patrons.

3. There is no cover charge or minimum drink purchase requirement.

4. The entertainment is provided only in the dining areas.

5. No more than three television screens including video projectors or similar audio/visual devices shall be utilized on the premises. None of these televisions or projection surfaces shall exceed 60 inches measured diagonally. No billiard/pool tables, video games, bowling, darts, and other similar entertainment activities may be provided.

6. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the bottle service. All food items shall be available from the full service menu. Bottle service shall mean the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with

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Packet Pg. 1819 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 57 glass ware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer.

7. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted. There shall not be any age limitation imposed restricting access to any portion of the restaurant.

8. The establishment shall not organize or participate in organized “pub-crawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the restaurant.

9. Establishments with amplified music shall comply with Section 4.12.140.

B. A restaurant with entertainment beyond the scope of these limitations in subsection B above shall also be considered a Bar/Nightclub/Lounge as defined in Chapter 9.51, and such entertainment use shall be prohibited unless a separate Conditional Use Permit for that use has been obtained.

B. Third Street Promenade Area and Santa Monica Place. Notwithstanding the provisions of subsection A, restaurants located in the Third Street Promenade Area and the area bounded by 2nd Street to the west, Broadway to the north, 4th Street to the east, and Colorado to the south, may provide entertainment including but not limited to music, DJs, song, dance, stand-up comedy, and poetry readings for the patrons’ enjoyment if they meet the following standards.

1. There is sit down meal service provided at all times while the entertainment is taking place.

2. The entertainment is provided indoors only within the dining areas.

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Packet Pg. 1820 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 58 3. Dancing shall be ancillary to the primary restaurant use and temporary dance areas may be provided within portion(s) of the dining area provided that seating for sit down meal service is available for patrons at all times while dancing is taking place.

4. There is no cover charge or minimum drink purchase requirement.

5. Establishment shall comply with SMMC Chapter 4.12 Noise, except that Section 4.21.140 Nightclubs, Bars and Establishments with Amplified Music shall not apply.

C. A restaurant with entertainment beyond the scope of the limitations set forth in subsections A or B above, as applicable, shall also be considered a Bar/Nightclub/Lounge as defined in Chapter 9.51, and such entertainment use shall be prohibited unless a separate Conditional Use Permit for that use has been obtained. (I) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.31.370 to the contrary, the following regulations related to Temporary Uses and Seasonal Sales shall apply:

SMMC 9.31.370 Temporary Uses and Seasonal Sales
A. This Section establishes standards and requirements for certain uses that are intended to be of limited duration of time and that will not permanently alter the character or physical facilities of the site where they occur. Temporary uses shall require approval of a Temporary Use Permit pursuant to Chapter 9.44 with the following exceptions:

1. Seasonal sales of holiday-related items such as Christmas trees, pumpkins and similar items that have a duration of not more than 45 consecutive calendar days and are conducted in conjunction with an established retail commercial business holding a valid City business license or conducted by a school or place of worship;

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Packet Pg. 1821 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 59 2. Temporary carnivals, fairs, and festivals with a duration of not more than 3 days when conducted by a school or place of worship on land owned by the school or place of worship;

3. Art displays under the sponsorship of any recognized art organization or accredited school on any parking lot in any commercial or industrial district provided that the art display is on a Saturday, Sunday, or holiday when the place or places of business, which have control of the parking lot are not open for business on the day the art display is to occur;

4. Trailers that provide residences for security personnel associated with any approved construction site;

5. Construction offices where approved construction projects are being diligently completed;

6. Yard sales limited to 2 per calendar year, for each dwelling unit, for a maximum of 2 days each;

7. Events which occur in theaters, meeting halls, or other permanent public assembly facilities;

8. Private social gatherings in private residences.

B. Temporary Uses Requiring a Temporary Use Permit. Temporary uses may be permitted with the approval of a Temporary Use Permit, pursuant to Chapter 9.44, Temporary Use Permits, subject to compliance with the standards. Additional or more stringent requirements may be established through the Temporary Use Permit process in order to prevent the use from becoming a nuisance with regard to the surrounding neighborhood or the City as a whole.

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Packet Pg. 1822 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 60 1. Stand-Alone Seasonal Sales. Seasonal sales of holiday related items such as Christmas trees, pumpkins, and similar items conducted for a period not to exceed 45 consecutive calendar days.

2. Temporary Outdoor Sales. Temporary outdoor sales conducted by an established retail commercial business holding a valid City business license, including, but not limited to, grand opening events, sidewalk sales, and other special sales events subject to the following standards:
a. Temporary outdoor sales shall be conducted by an established retail commercial business holding a valid City business license for the same site. b. Outdoor display and sales areas must be located on a paved or concrete area on the same parcel as the structure(s) containing the business with which the temporary sale is associated.
c. Location of the displayed merchandise must not disrupt the normal circulation of the site, nor encroach upon driveways, pedestrian walkways, or required landscaped areas, or obstruct sight distances or otherwise create hazards for vehicle or pedestrian traffic.
d. Number of Events. No more than 4 events shall be allowed on any 1 site within any 12-month period, except sidewalk sales located on the public rightof-way shall be limited to 2 events for periods not exceeding 3 consecutive days each within any 12-month period. Business Improvement Districts and Areas shall be exempt from the limitations on number of events.

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Packet Pg. 1823 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 61 3. Special Events. Other short-term special events, outdoor sales, art sales, and displays that do not exceed 3 consecutive days, may be permitted in accordance with the following standards:
a. Location. Events are limited to nonresidential districts. b. Number of Events. No more than 4 events shall be allowed on any 1 site within any 12-month period.
c. Recreational Special Events. Short-term recreational special events shall be part of an existing Commercial Recreation or Personal Service use located on the same site.
d. Carnivals, Fairs, and Festival Events. Carnivals, fairs, and festival events are also subject to the following standards:
i. Location. Events are limited to areas within commercial or employment districts, or on land owned by a school or place of worship. ii. Time Limit. When located adjacent to a Residential District, the hours of operation shall be limited to 8:00 a.m. to 9:00 p.m.

4. Other Temporary Uses. The following temporary uses may also be permitted subject to the approval of a Temporary Use Permit when conducted for a period not to exceed 18045 consecutive calendar days:
a. Circuses and carnivals subject to compliance with Article 6 of the Municipal Code;
b. Fairs, festivals, and concerts, when not held within premises designed to accommodate such events, such as auditoriums, stadiums, or other public assembly facilities;

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Packet Pg. 1824 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 62 c. Off-site contractors’ construction yards;
d. Similar temporary uses or other temporary uses supportive of economic recovery, which the Director has determined will be compatible with the purposes of the district and surrounding land uses.
e. The Zoning Administrator may approve a single extension of a Temporary Use Permit under this subsection for an additional 180 days, subject to any additional operational conditions as deemed necessary, and subject to a finding that the operation of the approved temporary use at the location and within the time period specified operated in a manner that did not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare. Any proposed extension exceeding 180 days not meeting the requirements of this subsection be shall be subject to Minor Use Permit approval pursuant to Subsection C below.

C. Temporary Uses Requiring a Minor Use Permit. Other special events, temporary uses, outdoor sales, and displays not specifically limited under this Section that exceed 18045 consecutive calendar days shall require the approval of a Minor Use Permit pursuant to Chapter 9.41, Minor Use Permits and Conditional Use Permits. (J) Notwithstanding any provisions of Santa Monica Municipal Code Section 9.44.060 to the contrary, the following regulations related to Temporary Uses Requiring a Minor Use Permit shall apply:

SMMC 9.44.060 Temporary Uses Requiring a Minor Use Permit Other special events, temporary uses, outdoor sales, and displays not specifically limited under Section 9.31.370 that exceed 18045 consecutive calendar days shall require the

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Packet Pg. 1825 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins)) 63 approval of a Minor Use Permit pursuant to Chapter 9.41, Minor Use Permits and Conditional Use Permits
SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Interim Zoning Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Interim Zoning Ordinance.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Interim Zoning Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Interim Zoning Ordinance. The City Council hereby declares that it would have passed this Interim Zoning Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Interim Zoning Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Interim Zoning Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Interim Zoning Ordinance shall become effective 30 days after its adoption.

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

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Packet Pg. 1826 Attachment: 2023.09.26 - Promenade IZO Extension (5905 : Promenade Area Interim Zoning Ordinance Extension (15 mins))

13.A
September 26, 2023
Council Meeting: September 26, 2023 Santa Monica, California 1 of 1
CITY CLERK’S OFFICE - MEMORANDUM
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records & Elections Services Department
Date: September 26, 2023

13.A Santa Monica Housing Commission Report : Creating Equity - Affordable Homeownership in Santa Monica

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Packet Pg. 1827
Creating Equity
Affordable Homeownership in Santa Monica
Report by
Santa Monica Housing Commission
7 May 2023

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Packet Pg. 1828 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 1 Acknowledgements
This report was created by the Santa Monica Housing Commission during the 2022-2023 program year. The Housing Commission comprises Commissioners Peter Borresen, Kate Evarts, Dominic Gomez, Josh Hamilton, and Richard Hilton; Vice Chair Theresa Marasco; and Chair Michelle Gray. This report originated with 2022-2023 Housing Commission Work Plan items related to increasing affordable homeownership and is based on the initial hard work of the Housing Commission Ad Hoc Affordable Homeownership Subcommittee, comprising Commissioner and Subcommittee Chair Peter Borresen, Commissioner Dominic Gomez, and Vice Chair Theresa Marasco. The initial work of the subcommittee was discussed, revised, and expanded by the entire Housing Commission with the input of Santa Monica residents and additional research by Commissioner Borresen, Vice Chair Marasco, and Chair Gray.

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Packet Pg. 1829 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 2 Table of Contents

1. INTRODUCTION ..................................................................................................................................... 3

1.1 Notes on terminology ............................................................................................................. 4

2. AFFORDABLE HOMEOWNERSHIP IN HOUSING POLICY................................................................. 5

2.1 Fulfills stated city goals .......................................................................................................... 5

2.2 Preserves and expands affordability....................................................................................... 6

2.3 Advances social, racial, and economic justice ....................................................................... 6

2.3.1 Social and economic justice............................................................................................. 6

2.3.2 Racial justice ................................................................................................................... 7

2.3.3 Proposed HUD requirements ........................................................................................... 9

3. AFFORDABLE HOMEOWNERSHIP INVENTORY ...............................................................................11

3.1 Existing housing................................................................................................................... 11

3.1.1 Rent controlled units ...................................................................................................... 11

3.1.2 100% affordable units .................................................................................................... 11

3.1.3 Market rate units............................................................................................................ 12

3.1.4 Inclusionary Units .......................................................................................................... 12

3.2 New housing........................................................................................................................ 13

3.2.1 New 100% affordable single and multifamily properties ................................................. 13

3.2.2 New market rate and inclusionary units ......................................................................... 15

4. MEANS TO AFFORDABLE HOMEOWNERSHIP.................................................................................16

4.1 Existing funding.................................................................................................................... 16

4.1.1 For prospective home buyers......................................................................................... 16

4.1.2 For organizations and municipalities .............................................................................. 17

4.2 Proposed actions for Santa Monica ..................................................................................... 19

4.2.1 TORCA 2.0.................................................................................................................... 19

4.2.1.1 For rent controlled buildings and units................................................................................20

4.2.1.2 For market rate and inclusionary units ...............................................................................21

4.2.2 HUD homeownership program....................................................................................... 21

4.2.3 100% affordable rental housing conversion.................................................................... 22

4.2.4 Inclusion of for-sale units in new 100% affordable rental housing .................................. 22

4.2.5 Equalize fees ................................................................................................................. 23

4.2.6 Prioritize new market rate for-sale housing over new market rate rental housing............ 23

4.2.7 New forgivable down payment assistance loan fund ...................................................... 24

4.2.8 New home purchase assistance office ........................................................................... 24

4.2.9 Community land trusts ................................................................................................... 24

4.2.10 Rent to own ................................................................................................................. 25

5. RECOMMENDATIONS..........................................................................................................................27

6. CONCLUSION.......................................................................................................................................30

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Packet Pg. 1830 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 3

1. Introduction
Home. Hogar. Words that evoke images of warmth, safety, and sanctuary. More than mere shelter, home is a physical place where we live, play, work, and love, as well as a liminal, emotional place of memory, security, aspiration, and identity. Both a springboard and an anchor, home is the cornerstone of the fabled American Dream.

No wonder, then, that homeownership is such a widespread, cherished goal. In modern capitalist societies, the only way to improve on one’s personal idea of home—existing or aspirational—is to own one’s own home, including the land on which it lies. This ownership physically manifests and makes permanent the stability of home.

Homeownership confers numerous benefits in addition to stability. It contributes to lower and more controlled long term housing costs, builds personal and multigenerational wealth through appreciation, enables environmental customization, and provides a means of selfexpression. Homeownership fosters pride, builds social equity, and strengthens community.

Unfortunately, in Santa Monica homeownership and its many attendant benefits are reserved exclusively for wealthy people, most of whom are white. From small condos to sprawling mansions, the cost of owning residential real estate in Santa Monica is prohibitively expensive for those with low to moderate incomes, including the vast majority of Black and brown Santa Monica residents.

Affordable homeownership may not seem feasible in Santa Monica due to the high cost of living, and therefore a poor use of limited city and federal resources. However, successful programs in similarly costly cities like San Diego1 and New York City2 demonstrate otherwise. Furthermore, affordable homeownership is particularly key to affirmatively furthering fair housing—as new proposed HUD guidelines require—in cities with high costs of living. As this report illustrates, affordable homeownership is vital to creating equity— both literal and figurative, financial and societal.

The following report outlines multiple ways for Santa Monica to advance homeownership parity, from converting existing housing stock to facilitating new construction, and utilizing federal, state, and local funding from individual home purchase assistance programs to grants for institutions and municipalities. Together with proposed Santa Monica programming, these diverse sources of inventory and funding can be combined in myriad ways to achieve the city’s affordable homeownership goals. 1 https://www.sdhc.org/housing-opportunities/affordable-for-sale-housing/ 2 https://www.nyc.gov/site/hpd/services-and-information/hdfc.page

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Packet Pg. 1831 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 4

1.1 Notes on terminology
In this report homeownership always refers to the purchase by one or more real individuals of any form of private residence for the purpose of owner occupancy. This residence can take the form of an individual unit in a multifamily building, an individual unit in a duplex or triplex, a tiny house, a townhouse, a modular home, etcetera. Note that the initial requirement of owner occupancy does not mean an owner can never rent or sell their unit to another party, as building wealth is a key benefit of homeownership that affirmatively furthers fair housing by facilitating upward mobility.

In addition, regardless of the form a private residence takes, in this report homeownership always includes full or proportional fractional ownership of the property’s underlying land.

This stipulation is important because stored wealth and capital appreciation in residential real estate is primarily attached to a property’s underlying land.

In this report the terms single family housing, home, unit, or property refers to a freestanding private residence—for example a traditional house, tiny home, or modular home—not the zoning or land use classification.

Finally, unless indicated otherwise, in this report the term voluntary homeownership model refers to individual tenants’ ability to choose whether or not to purchase the housing unit they live in, not building owners' ability to choose whether or not to participate in providing for-sale units or converting rental units to for-sale units.

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Packet Pg. 1832 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 5

2. Affordable homeownership in housing policy
Robust and effective housing policy requires multiple elements to satisfy the diverse housing needs and desires of Santa Monica residents. These include market rate home rentals, market rate home ownership, affordable home rentals, and affordable home ownership. Housing policy in the City of Santa Monica currently addresses all but one of these elements: affordable homeownership. This significant omission must be addressed and remedied for multiple reasons, including the following.

2.1 Fulfills stated city goals
Affordable homeownership is an explicitly stated goal of the City of Santa Monica. On 31 March 2021, City Council updated the City of Santa Monica’s 6 th Cycle (2021-2029)
Housing Element to include the requirement that the City of Santa Monica:
“Explore diverse opportunities for affordable homeownership and transition from renters to owners by residents.”3
Santa Monica seems to have been thinking about affordable homeownership for years.

Since at least 2016, the application for the city’s Below Market Housing waitlist has included a check box for applicants to indicate interest in homeownership opportunities.

Furthermore, on 11 March 2023 City Council voted unanimously to adopt council priorities for the Fiscal Years 2023-2025 Budget that include the guiding principle of Racial Justice, Equity, and 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 thrive4
3 https://www.hcd.ca.gov/housing-elements/docs/santa-monica-6th-draft070822.pdf 4 https://santamonica.gov/press/2023/03/11/city-council-adopts-priorities-and-provides-direction-for-2023- 2025-biennial-budget-process

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Packet Pg. 1833 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 6 As demonstrated in section 2.3, opportunities for affordable homeownership are closely tied to issues of racial justice, equity, and social diversity.

Finally, city staff have stated that California demands for affordable housing construction may be met via affordable homes for-sale.
5 Enabling low and moderate income individuals and families to own homes in Santa Monica fulfills all of these vital city priorities.

2.2 Preserves and expands affordability
Since California mandated the end of vacancy control with the Costa-Hawkins Rental Housing Act of 1995, base rents of rent controlled units in Santa Monica can be reset at market rates with each new tenancy. This, in addition to the removal and redevelopment of rent controlled buildings under the Ellis Act of 1985, has led to a continual and significant loss of housing affordability in Santa Monica.
6 Introducing new affordable homeownership
opportunities will help preserve and make permanent existing city housing affordability and increase the total affordable housing stock in Santa Monica.

2.3 Advances social, racial, and economic justice
Homeownership contributes to lower housing costs, builds personal and multigenerational wealth through appreciation, fosters stability, enables personalization, builds social equity, and strengthens community. However, in Santa Monica only wealthy, and predominantly white, people can afford to purchase houses or multifamily units and enjoy the numerous benefits of homeownership. Dedicated efforts to expand diverse affordable homeownership opportunities for low and moderate income Santa Monicans can change this disparity.

2.3.1 Social and economic justice
Affordable rentals serve an important purpose, particularly for short term and transitioning residents. However, they do not enable long term Santa Monicans with low and moderate incomes to realize the many benefits of homeownership. To do that, Santa Monicans of modest means must have equal opportunities to own residential property through robust affordable homeownership policies and programs.
5 Santa Monica Housing Commission meeting, 10 November 2022, agenda item 5A https://santamonica.gov/media/HED/Housing/Housing%20Agenda%20Attachments/11-10- 22%20HC%20Agenda%20Final.pdf
6https://www.smgov.net/uploadedFiles/Departments/Rent_Control/Reports/Annual_Reports/2022%20Annual %20Report.pdf

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Packet Pg. 1834 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 7 In addition to helping lower and control long term housing costs, build wealth, establish roots, personalize their homes, build social equity, and strengthen community, affordable homeownership policies and programs will also qualitatively improve city housing stock for the whole city, but particularly for low and moderate income residents.

In contrast with many affordable rentals, the conversion, design, and construction of local affordable housing for-sale will result in the creation of homes that more closely follow real estate trends that reflect home buyers’ actual preferences. These include desirable location and setting; proximity to preferred schools, parks, goods, and services; adequate square footage; abundant natural light; pleasing, and not institutional, facades that complement neighborhood aesthetics; and amenities like inviting common spaces, generous landscaping, and sufficient parking. Such housing characteristics will improve quality of life for low and moderate income residents while improving the overall quality of Santa Monica’s housing inventory.

2.3.2 Racial justice
Social and economic injustice are particularly evident when analyzing racial disparities in rates of homeownership.

US Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge recently issued the following statement:
“Today, homeownership is the principal source of wealth creation for most American households. Unfortunately, [National Association of REALTORS® Research Group’s] report confirms that Black Americans are being locked out of homeownership opportunities at an even higher rate than a decade ago. It is critical that we bridge the racial homeownership gap with intentional solutions that recognize both the persistent history of discrimination and inequity, and the current crisis of housing affordability.”8
The report to which Secretary Fudge refers, entitled 2023 Snapshot of Race and Home Buying in America, shows more Americans own homes now than during any year following the Great Recession, but Black Americans continue to face significant obstacles to homeownership. Furthermore, rates of Hispanic American and Asian American homeownership still trail that of white Americans. Worse, the homeownership rate for Black Americans is lower now than it was a decade ago.9
8 https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_029 9 https://cdn.nar.realtor/sites/default/files/documents/2023-snapshot-of-race-and-home-buying-in-the-us-03- 02-2023.pdf

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Packet Pg. 1835 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 8 Systematic and institutional harm to and theft from Black and brown people, particularly regarding property ownership and once thriving communities, is widely documented.

Tactics including redlining, exclusionary zoning, racially restrictive covenants, and displacement via eminent domain to build highways and other development were common and caused the upheaval and destruction of untold numbers of individuals, families, and communities nationwide.

According to Robert D. Bullard, an urban planning professor at Texas Southern University:
“If you look at Black and Latino neighborhoods, in terms of homeownership, the loss of equity, the business corridors that were destroyed and the loss of community that highways have caused, the damage is tremendous”
10 These discriminatory practices occurred in Santa Monica in living memory. In order to extend the Interstate 10 highway to the Pacific Ocean, the city leveled the Pico neighborhood, forcing Black, Mexican, and Japanese residents to leave their longtime homes and communities.11 Then, through eminent domain proceedings, the city razed the historic Belmar Triangle to build the Santa Monica Civic Auditorium and part of the Los Angeles County Courthouse grounds,
12 burning down homes and businesses that were
rented and owned by African Americans and other marginalized groups.13 The resulting loss of affordable housing, deeply rooted community, and multigenerational wealth impacts Black and brown Santa Monicans and their descendants to this day.

In recent years. the City of Santa Monica has made many efforts to advance truth and reconciliation with historically marginalized and disenfranchised residents. These include formal recognition of historically significant city sites,15 dedication to diverse city hiring practices, the ongoing reframing project to address the problematic WPA mural in City Hall16, and recently a formal apology by Santa Monica City Council17 for historical wrongs committed by the city against Black residents.

Such efforts also include the Right to Return policy that took effect January 2022, which allows up to one hundred people previously displaced from the Pico neighborhood and 10 https://www.latimes.com/projects/us-freeway-highway-expansion-black-latino-communities/ 11 https://www.latimes.com/homeless-housing/story/2021-11-11/the-racist-history-of-americas-interstatehighway-boom 12 https://alisonrosejefferson.com/wpcontent/uploads/2021/10/ReconstructionAndReclamation.FINAL_.12.21.2020-3.pdf 13 https://www.smconservancy.org/property/belmar/
15 https://santamonica.gov/belmar-history-art
16 https://www.santamonica.gov/programs/acknowledge-and-reframe-together 17 https://www.argonautnews.com/community/discussing-santa-monica-s-black-apology/article_a5560aa8- a288-11ed-bbaf-83d8cd59503a.html

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Packet Pg. 1836 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 9 Belmar Triangle area and their descendants to receive priority status on the city’s Below Market Housing waitlist.
18 Placement on this list provides low and moderate income individuals with opportunities to apply for local affordable rental units.

Sheryll Cashin, Georgetown University law professor and author of “White Space, Black ‘Hood: Opportunity Hoarding and Segregation in the Age of Inequality”, said this about Santa Monica’s Right to Return policy:
“It’s an example of more of what needs to happen where a city looks honestly at its past to understand that a lot of the dramatic inequality in the present overlays with race”
19 Unfortunately, providing historically marginalized and disenfranchised Santa Monicans with the opportunity to apply for below market rental housing does little to restore the historical homes, wealth, and once thriving community these residents and their descendants lost.

Nichelle Monroe, a local whose great-uncle is said to have been the first Black baby born in Santa Monica over a century ago and whose architect grandfather, Vernon Brunson, designed many buildings in the city, agrees.

Monroe thinks Santa Monica should make it easier for her family to purchase a home in the city. While she’s proud that her family is featured in the educational materials lining the new Belmar Triangle walking path, she says:
“But what else is there? The theft is still there. The generational wealth is still gone.”
20 To meaningfully begin to acknowledge and restore the depth and breadth of historical harm to and theft from Black and brown Santa Monicans, we must turn to affordable homeownership.

2.3.3 Proposed HUD requirements
Affordable homeownership is an integral part of achieving social, racial, and economic justice. HUD concurs, having recently released a new proposed Affirmatively Furthering Fair Housing Final Rule two years in the making. This proposed rule takes a significant step 18 https://www.latimes.com/homeless-housing/story/2021-12-26/santa-monica-to-people-long-evicted-byfreeway-come-back-home 19 https://www.latimes.com/homeless-housing/story/2021-12-26/santa-monica-to-people-long-evicted-byfreeway-come-back-home 20 https://www.latimes.com/homeless-housing/story/2021-12-26/santa-monica-to-people-long-evicted-byfreeway-come-back-home

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Packet Pg. 1837 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 10 towards addressing the country’s history of discriminatory housing policies and practices. It responds to both President Biden’s directive, Memorandum on Redressing Our Nation's and the Federal Government's History of Discriminatory Housing Practices and Policies, 25 and to HUD and Secretary Fudge's call to weave equity throughout HUD's work.26 “Affirmatively furthering fair housing means more than merely steering clear of housing discrimination violations” said Demetria L. McCain, Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “Today, HUD is taking new, bold action to eliminate the historic patterns of segregation that continue to harm American families.

This action will help make the purpose of the Fair Housing Act reality by making it easier for local communities to identify inequities and make concrete commitments to address them.”27
HUD’s new Affirmatively Furthering Fair Housing Final Rule expands upon previous HUD policy, implementing opportunities for transparency and accountability while bolstering economic equity for all American families. This proposed rule is just one part of a larger Equity Plan being implemented by HUD.28 Affordable homeownership is a significant component of HUD’s comprehensive new Equity Plan.

While this rule is awaiting adoption, American history and HUD policy have been moving steadily in this direction and its mandates are expected take effect shortly. As HUD Secretary Marcia L. Fudge concluded her previously cited statement on racial disparity in homeownership:
“The Biden-Harris Administration and HUD will continue to prioritize opening the door to homeownership for families—especially those who have been systemically kept out over generations”
29 As a progressive city dedicated to diversity, equity, and inclusion, Santa Monica should take the initiative to adopt exemplary plans, policies, and practices that exceed existing minimum fair housing requirements and embody the goals of forthcoming HUD rules. By offering meaningful paths to affordable homeownership, Santa Monica can begin to fulfill the forthcoming HUD requirement for inclusion of an equity plan in the 5-Year and Annual Consolidated Plans, while modeling best practices for affirmatively furthering fair housing for cities nationwide.
25 https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/26/memorandum-on-redressingour-nations-and-the-federal-governments-history-of-discriminatory-housing-practices-and-policies/ 26 https://www.hud.gov/press/press_releases_media_advisories/HUD_No_23_013 27 https://www.hud.gov/press/press_releases_media_advisories/HUD_No_23_013 28 https://www.hud.gov/sites/dfiles/PA/documents/HUDEquity508compliant.pdf 29 https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_029

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3. Affordable homeownership inventory
Providing affordable homeownership opportunities for Santa Monicans first requires local housing inventory for purchase by prospective homebuyers. This inventory can come in two forms: existing housing and newly constructed housing.

3.1 Existing housing
Santa Monica’s considerable existing rental housing inventory leaves room for some rental units to be repurposed for purchase. The benefits of converting existing rental units to units for purchase include ready availability and lower costs. While Santa Monica currently prohibits the conversion of multifamily rental housing to for-sale multifamily housing, 31 there
is precedent for changing this policy. For further discussion, see section 4.2.1.

3.1.1 Rent controlled units
As demonstrated by the original Tenant Ownership Rights Charter Amendment (TORCA), 32 with appropriate legislation, existing rent controlled units can provide a repository of ready affordable housing for sale. Furthermore, when occupied buildings that are subject to rent control are placed on the market, their sale prices are frequently lower than their replacement cost because rent control laws prevent new building owners from charging existing tenants prevailing market rents. This presents a unique opportunity for nonprofit parties to purchase discounted multifamily housing in order to facilitate tenants’ optional subsequent affordable purchase of their units, as outlined in section 4.2.1.1.

3.1.2 100% affordable units
Existing 100% affordable rental buildings in Santa Monica also have the potential to be converted to properties with affordable optional homeownership opportunities, wherein existing tenants could purchase the units they occupy or similar units in the same or comparable buildings. For further discussion, see section 4.2.3. 31 https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/the_charter_of_the_city_of_santaarticle_xx-2018 32 https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/the_charter_of_the_city_of_santaarticle_xx

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Packet Pg. 1839 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 12

3.1.3 Market rate units
There is abundant and increasing market rate rental housing in Santa Monica, many units of which stand vacant. Providing landlords with the option to convert some of these existing market rate rental units to purchasable units can provide valuable additional homeownership opportunities for all Santa Monicans. Importantly, this option can also provide increased opportunities for affordable homeownership, particularly when units are purchased with low income and first time homebuyer assistance programs.

With more than 70% of Santa Monica residents renting their homes, numerous rental vacancies awaiting formal inventory, and no shortage of new market rate rental construction in various stages of development, enabling the optional conversion by landlords of existing market rate rental housing to for-sale housing is a potentially time- and cost-saving means of increasing affordable homeownership opportunities in Santa Monica.

To ensure meaningful expansion of homeownership opportunities in Santa Monica, including affordable homeownership, city policy changes that permit such conversions should include requirements that individual units be purchased by owner-occupants, with minimum tenancy duration requirements of two years before an owner may sell or rent their unit, and/or penalty fees to discourage real estate flipping. Such policy changes should also ensure protections for existing tenants, including generous advance notice of conversion, right of first refusal to purchase, and possible relocation compensation. If individual tenant owned properties allow owners to subsequently rent their units, the rent charged should conform to affordability requirements where deed-restrictions are present. For further discussion, see section 4.2.1.2.

3.1.4 Inclusionary Units
A valuable potential source of affordable homeownership inventory is inclusionary units in existing (and future) market rate rental projects. In concert with the optional conversion mentioned above, all such inclusionary units should be eligible for similar optional conversion with the key stipulation that the city maintain inclusionary units’ affordability by deed restricting their sale. When inclusionary units are on the same site with accompanying market rate units, this practice will have the added benefit of affirmatively furthering fair housing by integrating market rate and affordable housing, reducing the stigma of concentrated and siloed affordable housing and improving low and moderate income residents’ access to high opportunity, low poverty neighborhoods. For further discussion, see section 4.2.1.2.

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Packet Pg. 1840 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 13

3.2 New Housing
While Santa Monica’s land area is small, it has room and numerous projects slated for new housing construction. Focusing new housing construction on homeownership instead of rental housing can greatly increase the city’s affordable homeownership inventory, with results that will benefit all Santa Monica residents and prospective homeowners, now and in the future.

In addition to the rewards above, affordable homeownership policies and programs will result in the qualitative improvement of city housing for low and moderate income residents. Currently, the exclusive dedication of policy and resources to affordable rental housing—particularly 100% affordable rental housing—leads to design and construction choices that maximize utility and uniformity in order to minimize building time and cost.

These come at the real expense of livability and environmental and aesthetic choices that maximize usability, comfort, and physical and mental health for tenants.

For example, 100% affordable housing buildings in Santa Monica are often identifiable by their angular, flat, and modular facades composed of inexpensive industrial materials, the absence of adequate green space, and sparse landscaping. The interiors of these units are often small and utilitarian, including countertops finished with inexpensive, drab composite materials to hide dirt and wear, and small windows that afford little natural light.

Again, in contrast with many affordable rentals, the conversion, design, and construction of local affordable for-sale housing will result in the creation of units that more closely follow real estate trends that reflect actual preferences of home buyers. These include desirable location and setting; proximity to preferred schools, parks, goods, and services; adequate square footage per unit to accommodate free movement, substantial in-unit storage, and guests; abundant natural light; pleasing, and not institutional, facades that complement neighborhood aesthetics; and amenities like attractive and comfortable common spaces, generous landscaping, and sufficient parking. Such housing characteristics improve quality of life for low and moderate income residents as well as the overall quality of Santa Monica’s housing inventory.

3.2.1 New 100% affordable single and multifamily properties There are currently thousands of affordable housing units in Santa Monica, virtually all of which are rentals.35 There are also many 100% affordable housing projects in Santa Monica that provide affordable rental housing and more continue to be built. Rather than focusing exclusively on new rental housing, the city and existing and/or new nonprofit 35 See figures B-52 and B-53. https://www.santamonica.gov/media/Housing-Element-Update-2021-to2029/Adopted%20Appendix%20B%20Housing%20Needs%20Clean.pdf

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Packet Pg. 1841 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 14 housing providers could invest resources into the design and construction of new 100% affordable for-sale housing units in myriad forms.

One form this new construction could take is traditional multifamily buildings designed and built for sale to qualifying low and moderate income buyers. Once all the units in a building were sold, management and operations of the building and property could continue under one of several common structures, for example, a condominium, community land trust, or cooperative.

However, planning new construction offers opportunities for creative design that will introduce visual interest to neighborhoods while maintaining their aesthetic continuity, greatly benefiting both homeowners with modest incomes and their neighbors. New construction could take the form of a property with diverse residential structures on it, for example, ten tiny homes with optimized communal spaces. Alternately, a property could include a duplex, triplex, or quadplex and one or more tiny homes or accessory dwelling units (ADU).

A possible variation on the above illustrations involves mixed use projects wherein owner occupied residential units benefit from having mixed use commercial facilities on site as an additional source of revenue to help sustain the owners’ collective property. In addition to the potential financial benefits of this configuration of 100% affordable for-sale housing, mixed use developments create greater access to goods and services for tenant owners and their neighbors.

With imagination and commitment to diversifying Santa Monicans’ affordable homeownership options, creative and forward thinking nonprofits could design and build diverse 100% affordable for-sale housing properties and mixed use properties that expand current ideas of quality affordable housing. Such diverse combinations of structures and densities can offer low and moderate income individuals and families the privacy, exterior space, and lower density of traditional single family housing with the cost- and spacesaving benefits of multiple units on a single property.

Large areas of land in Santa Monica are bought by nonprofits using city loans which are subsequently forgiven.
36, 37 This permanent land transfer to third parties at little or no cost is currently used almost exclusively for affordable rental housing. Diverting some of the city’s resources to affordable homeownership projects in lieu of affordable rental housing projects would create a better and more diversified investment in Santa Monica residents, neighborhoods, and community.
36 See figure B-53. https://www.santamonica.gov/media/Housing-Element-Update-2021-to2029/Adopted%20Appendix%20B%20Housing%20Needs%20Clean.pdf 37 See Grant Balance Reduction (1) on page 6 of linked document. https://www.santamonica.gov/media/HED/Housing/2021-07-27_HousingTrustFundGuidelines.pdf

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3.2.2 New market rate and inclusionary units
Compared with traditional single family housing and even luxury condominiums, modest market rate multifamily for-sale units provide a considerably less expensive, and therefore more attainable, alternative for prospective homeowners. Smaller in size than traditional houses, with significant cost per unit and land per unit savings, modest market rate multifamily units are an important element of increasing affordable homeownership opportunities for low and moderate income Santa Monicans.

While new high density rental apartment construction is common in Santa Monica, 38 such
affordable multifamily for-sale construction is not. Shifting focus from the former to the latter can provide residents with valuable affordable homeownership inventory.

Furthermore, new market rate multifamily for-sale construction could provide additional opportunities for affordable homeownership via new policy that requires a minimum percentage of deed restricted units in each new market rate building, which are sold solely to qualifying low and moderate income homebuyers.39
38 https://smmirror.com/2022/12/ws-communities-files-first-santa-monica-builders-remedy-project/ 39 San Francisco has a similar requirement. https://sf.gov/information/inclusionary-housing-program

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4. Means to affordable homeownership

4.1 Existing funding

4.1.1 For prospective home buyers
There are many different sources of financial assistance for prospective homebuyers of modest means. The following is a non-exhaustive list of current homeownership assistance programs.

HUD Housing Choice Voucher Homeownership Program
The Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses.
https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/homeownershi p
California Housing Finance Agency Forgivable Equity Builder Loan Program The Forgivable Equity Builder Loan gives first-time homebuyers a head start with immediate equity in their homes via a loan of up to 10% of the purchase price of the home. The loan is forgivable if the borrower continuously occupies the home as their primary residence for five years. The Forgivable Equity Builder Loan is a forgivable subordinate loan program that may only be used with a CalHFA first mortgage.
https://www.calhfa.ca.gov/homebuyer/programs/forgivable.htm Los Angeles County Development Authority (LACDA) First-Time Homebuyers Home Ownership Program
The Home Ownership Program (HOP) loan provides a second mortgage loan for first-time homebuyers with an assistance amount of up to $85,000, or 20% of the purchase prices, whichever is less. The loan provides down payment and/or closing assistance and is secured with a Deed of Trust and Promissory Note. Santa Monica does not currently participate in this program. https://www.lacda.org/home-ownership/home-ownershipprogram#:~:text=The%20Home%20Ownership%20Program%20

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Packet Pg. 1844 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 17 The California Housing Finance Agency MyHome Assistance Program CalHFA Government Loans (FHA): MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs. CalHFA Conventional Loans: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or closing costs. https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm Neighborhood Housing Services of Los Angeles County NeighborhoodLIFT Program In collaboration with Wells Fargo and NeighborWorks® America, provides eligible homebuyers with $25,000 in down payment assistance on qualified properties ($27,500 for veterans and service members, teachers, paraprofessionals, law enforcement officers, firefighters, and emergency medical technicians). https://nhslacounty.org/lift/ The Golden State Finance Authority GSFA Platinum® Program Financial assistance up to 5.5% of the first mortgage loan amount; assistance can be used towards down payment and/or closing costs; homebuyer doesn't have to be a first-time homebuyer to qualify; perfect credit not required—FICO scores as low as 640 can qualify; DTI up to 50% allowed in some circumstances; 1-4 unit residences, condos, townhomes and manufactured homes allowed; flexible income limits (low-to-moderate income); various first mortgage loan types available to fit the needs of the homebuyer (FHA, VA, USDA, and conventional financing). https://gsfahome.org/programs/dpa/platinum.shtml

4.1.2 For organizations and municipalities
There are many different sources of financial assistance for organizations and municipalities that serve prospective homebuyers of modest means. The following is a nonexhaustive list of such current and planned financial assistance programs.

HUD Family Self Sufficiency Program
The HUD Family Self Sufficiency (FSS) program is the nation’s largest asset building program for low income families. The program currently serves around 65,000 participants at over 700 Public Housing Authorities (PHAs). FSS is a voluntary program that uses a combination of coordination of services and supports from community partners and an escrow savings account to help participants grow their earned income and savings and

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Packet Pg. 1845 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 18 increase their financial wellbeing overall. Upon graduation from the program, the average family participating in FSS in 2021 had about $9,500 in savings. The $113 million-dollar Family Self-Sufficiency (FSS) NOFO released in August 2022 is an historic expansion of the program and central to HUD’s agenda for economic justice.

On 17 May 2022, HUD published a new FSS rule, taking a critical step towards making FSS available to even more families. Among other changes, the rule permits any adult household member, not only the official head of household, to enroll in the program, and eliminates regulations that were potential barriers to program graduation. The rule also eliminates a cap on savings that had been in place for higher-income families.40 FSS is usually administered by individual housing authorities, but it may also be administered in conjunction with nonprofit organizations. The Santa Monica Housing Authority (SMHA) stopped admitting participants to the FSS program in 2019; St. Joseph Center still administers the program for existing participants who have yet to complete the five year program.
https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/fss California Department of Housing and Community Development Homeownership Super NOFA
A one-stop shop for affordable homeownership projects and programs. The California Department of Housing and Community Development (HCD), in accordance with Assembly Bill 434 (Chapter 192, Statutes 2020), is working to make our homeownership program funds accessible to more developers and communities. This funding provides loans and grants to local public entities and nonprofits for homeownership development projects, selfhelp technical assistance projects, mortgage assistance programs, owner-occupied rehabilitation programs, shared housing programs, and programs for the acquisition of manufactured housing for agricultural households. https://www.hcd.ca.gov/grants-andfunding/programs-active/homeownership-super-nofa HUD Self-Help Homeownership Opportunity Program NOFO
The U.S. Department of Housing and Urban Development (HUD) announced the availability of $12.5 million through the Self-Help Homeownership Opportunity Program (SHOP) for eligible national and regional nonprofit organizations and consortia with experience providing or facilitating self-help housing opportunities. This funding opportunity aims to develop decent, safe, and sanitary housing for low income persons and families who would otherwise not have the opportunity to become homeowners. The continued 40 https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_142

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Packet Pg. 1846 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 19 partnerships with local communities and organizations that SHOP funds facilitate will help rebuild and revitalize neighborhoods and improve the lives of residents by expanding access to affordable housing and homeownership opportunities. https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_165

4.2 Proposed actions for Santa Monica

4.2.1 TORCA 2.0
The City of Santa Monica passed the Tenant Ownership Rights Charter Amendment (TORCA) in 1984 to enable tenants and landlords to negotiate the conversion of multifamily building units into condominiums. Benefits included the potential transfer of equity from landlords to tenants; increased housing security for tenants who continued to rent, as they were protected from Ellis Act evictions;
43 and the numerous rewards of homeownership.

TORCA had several shortcomings. Conversion required tenants and landlords to negotiate, which was not always easy or possible. The ability for owners to sell voluntarily vacated units at market prices gave them incentive to persuade tenants to vacate their units. This sometimes resulted in the harassment of renters by owners, and even by third parties who offered to help renters purchase their units in order to flip them for sizable profits. 44 Only seven percent of original renters bought and occupied their units under TORCA, 45 likely a consequence of the above challenges and a lack of city engagement. TORCA ended in 1996.46
The Santa Monica Housing Commission recommends that the City of Santa Monica make policy changes to allow the conversion of existing rental units to for-sale units with the express provisions detailed below. TORCA 2.0 is a placeholder name for this recommended new legislation given its evolution from the original TORCA. 43 https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/the_charter_of_the_city_of_santaarticle_xx?view=all 44 Multiple private conversations between Commissioner Borresen and Santa Monica landlords, TORCA tenants, and other interested parties circa 2005-2010
45 https://santamonica.gov/media/HED/Housing/Housing%20Agenda%20Attachments/HC%202-2- 23%20Agenda%20Final.pdf
46 https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/the_charter_of_the_city_of_santaarticle_xx

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4.2.1.1 For rent controlled buildings and units
The Housing Commission recommends that City Council make policy changes to allow and encourage the conversion of existing rent controlled units to for-sale units, with these provisions:

1. Conversions of rent controlled buildings take place via the purchase of entire rent controlled properties by nonprofit organizations or government intermediaries with the primary goal of facilitating renters’ optional purchase of their units.

2. Any organization purchasing a rent controlled building via the above provision institute deed restrictions to preserve housing affordability. Rental units remain subject to rent control unless and until individual tenants choose to purchase their units, at which time the units will be sold at an affordable rate.

3. All individual unit purchases include proportional ownership of the entire property’s underlying land.

3. Tenants’ purchase of their units is strictly voluntary. No existing tenants are displaced by this policy. Any organization that purchases a rent controlled building continue managing, under rent control, the tenancies of those who do not wish to purchase their units.

4. There are no time constraints for tenants to purchase their units after property acquisition.

5. Units that are vacant at the time of conversion, or that become vacant should renters leave voluntarily, are sold with affordability covenants.

6. Once all units are sold, the managing organization retains no further ownership or control of the property or land. The building would operate in a manner similar to other owner occupied buildings.

7. Units purchased by tenants must be owner occupied. A minimum tenancy duration requirement of two years before an owner may sell or rent their unit, and a flip tax and/or penalty fee applies to tenants purchasing their units in order to ensure owner occupancy and prohibit unit flipping. Proceeds from such taxes or fees may be returned to collective tenant owners for property improvements.

8. If individual tenant owned properties choose to allow subsequent renting of units by owners, rent charged must conform to affordability requirements where deed-restrictions are present.

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4.2.1.2 For market rate and inclusionary units
The Housing Commission recommends that the City of Santa Monica make policy changes to allow the conversion of existing market rate rental housing to for-sale units, with these provisions:

1. Market rate buildings that are exempt from rent control may be converted to tenant owned units.

2. Building conversion requires protection for existing tenants who wish to remain in their units as renters without purchasing their units.

3. Converted buildings preserve the affordability of inclusionary units by converting them to affordable for-sale units if and when ownership conversion takes place. These affordable units are sold to qualifying low or moderate income buyers and include a minimum owner occupancy duration of 2 years before an owner may sell or rent their unit, and a flip tax and/or penalty fee to ensure owner occupancy and prohibit unit flipping.

4. If individual owner occupied properties choose to allow subsequent renting of units by owners, rent charged by owners of affordable units must conform to affordability requirements where deed-restrictions are present.

4.2.2 HUD homeownership program
The HUD Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses. The HCV homeownership program is available only to families that have been admitted to the HCV program and each PHA has discretion to determine whether to implement the HCV homeownership program in their jurisdiction.

To participate in the HCV homeownership program, the HCV family must meet specific income and employment requirements (employment requirements do not apply to elderly and disabled families), be a first-time homeowner as defined in the regulation, attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by the PHA, and meet any additional eligibility requirements set by the PHA.47
The HUD HCV homeownership program is a uniquely powerful tool for helping qualified low income renters become first-time homebuyers, which enhances stability, contributes 47 https://www.hudexchange.info/programs/public-housing/hcv-homeownership/

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Packet Pg. 1849 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 22 to lower and more controlled long term housing costs, and builds personal and multigenerational wealth through appreciation in addition to the less tangible benefits of homeownership. Significantly, this program can also assist HCV holders to transition away from HUD assistance, making their vouchers available for new low income residents in need of this housing assistance.

As such, the Housing Commission strongly recommends that the Santa Monica Housing Authority Board direct SMHA staff to adopt participation in the existing HUD HCV and other available HUD homeownership programs.

4.2.3 100% affordable rental housing conversion
Given the stated desire of the city to increase affordable homeownership, the Housing Commission recommends that City Council direct staff to begin exploring this potential subset of affordable homeownership inventory in two ways:

First, staff should conduct research to determine the legal, financial, and logistical feasibility of working with existing and/or new housing nonprofit partners to convert 100% affordable rental housing to a homeownership model whereby each tenant would be given the option to purchase their unit.

Next, the city should engage directly with existing nonprofit housing providers currently managing, constructing, or planning 100% affordable rental properties in Santa Monica to gauge their willingness to consider such transitions and discuss how they could be orchestrated.

The Housing Commission further recommends that, should this source of affordable homeownership inventory prove feasible, the city encourage or require existing nonprofit housing providers of 100% affordable rental buildings to transition their units to a voluntary ownership model. If necessary, this may require buildings to migrate to new nonprofits that will pursue ownership as a primary goal.

4.2.4 Inclusion of for-sale units in new 100% affordable rental housing Furthermore, both to encourage the construction of 100% affordable for-sale housing and to improve the quality of 100% affordable housing development units and properties, the Housing Commission recommends the city explore the feasibility of requiring all new 100% affordable housing projects to include a minimum percentage of for-sale units in each 100% affordable housing building, for example ten percent, with possible provisions that may permit a lower or no percentage of for-sale units in a given building in exchange for additional 100% affordable housing projects comprised of 100% affordable for-sale units.

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Packet Pg. 1850 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 23 All such for-sale units must be owner occupied. They should require a minimum owner occupancy duration requirement of two years before an owner may sell or rent their unit, and a flip tax and/or penalty fee in order to ensure owner occupancy and prohibit unit flipping. Proceeds from such taxes or fees may be returned to collective tenant owners for property improvements. If individual owner occupied properties choose to allow subsequent renting of units by owners, rent charged must conform to affordability requirements where deed-restrictions are present.

4.2.5 Equalize fees
In Santa Monica, city fees48 and planning policies49 are biased against new for-sale housing construction compared with new rental housing construction. These disparities may discourage the construction of lower priced multifamily buildings occupied by tenant owners in favor of rentals.

To encourage new construction of for-sale multifamily housing, the Housing Commission recommends the City of Santa Monica equalize the treatment of new ownership construction and new rental construction in planning and fee schedules so that one isn’t privileged over the other.

4.2.6 Prioritize new market rate for-sale housing over new market rate rental housing Again, compared with traditional single family housing and even luxury condominiums, modest market rate multifamily for-sale units provide a considerably less expensive, and therefore more attainable, alternative for prospective homeowners. Smaller in size than traditional houses, with significant cost per unit and land per unit savings, modest market rate multifamily units are an important element of increasing affordable homeownership opportunities for low and moderate income Santa Monicans.

While new high density rental apartment construction is common in Santa Monica,50 such affordable multifamily for-sale construction is not. And while rental housing serves an important purpose, particularly for short term and transitioning residents, it does not enable long term Santa Monicans with low and moderate incomes to realize the many benefits of 48 Affordable housing fees are $39.12 per square foot for apartments and $45.70 per square foot for condominiums (effective 12/01/22; updated annually). https://www.santamonica.gov/housing-ahppdevelopers 49 See item G on linked page: On site affordable housing units must be rental units in rental projects. In ownership projects, these affordable units may be rental units or ownership units. https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/article_9-division_6-chapter_9_64- 9_64_050
50 https://smmirror.com/2022/12/ws-communities-files-first-santa-monica-builders-remedy-project/

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Packet Pg. 1851 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 24 homeownership. Shifting focus from the former to the latter can provide residents with valuable affordable homeownership inventory.

In light of this, the Housing Commission recommends that the city prioritizes new construction of market rate for-sale housing over market rate rental housing until homeownership rates equalize.

4.2.7 New forgivable down payment assistance loan fund
Dedicated financial assistance programs are vital to increasing homeownership among low and moderate income individuals and families. The Housing Commission recommends that the City of Santa Monica use local, state, and federal housing trust funds to establish generous homeownership assistance programming that provides interest free or forgivable down payment assistance to low and moderate income city residents who wish to purchase affordable housing.

4.2.8 New home purchase assistance office
Buying a home for the first time is daunting. Navigating affordable homeownership assistance programs is even more complex, difficult, and time consuming, particularly for first time home buyers. The Housing Commission recommends that the city establish a home purchase assistance office that will encourage homeownership, help prospective buyers navigate the numerous and varied purchase assistance programs, monitor ownership programs, and seek new ways to help Santa Monica residents, particularly those with low or moderate incomes, buy a home.

4.2.9 Community land trusts
Community Land Trusts (CLTs) are organizations that own land and develop it through an inclusive, community-based process.52 They originate in movements for racial, economic, and environmental justice and have been used to combat Black land loss and displacement, build community wealth, and strengthen community health and wellbeing.53 CLTs develop land according to a community’s needs, which can include anything from open space to a multifamily rental housing project. However, CLTs are most often created to provide affordable homeownership opportunities to low- and moderate-income 52 https://nhc.org/policy-guide/shared-equity-homeownership-the-basics/shared-equity-models-of-ownership/ 53 https://www.lisc.org/our-stories/story/real-power-is-in-the-land-community-land-trustspast-present-andfuture/

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Packet Pg. 1852 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 25 households. There are about 200 community land trusts in the US, and the model has become popular in the UK as well.54
The CLT model is structured around a ground lease. The CLT owns land, which is leased to households who purchase the homes that sit on CLT land. Removing the cost of land from the cost of purchasing the home provides a significant subsidy to the households. The ground lease limits the amount for which the home can be sold, passing the subsidy on from one homeowner to the next. CLTs also often retain the right to repurchase the home in the case of foreclosure.55
CLTs and the community-based nongovernmental organizations (NGOs) that establish them are generally grant fundable and attract foundation support. The NGO sector is growing, with hundreds of CLTs nationwide. Some cities are also investing substantial public funds in CLTs, as in Houston’s CLT bond issue and capital campaign totaling $140 million. Boston recently lost 2500 units of affordable housing in a single year when deed restrictions expired, so the city now funds a network of CLTs across the metro area. Other cities have made smaller initial investments, such as Louisville, Kentucky which put $2.3 million into developing 10 CLT units, and is working with Grounded Solutions to expand their programs.56
The Housing Commission recommends that the city research, create, and secure funding for a community land trust pilot program to permanently acquire land and convert or erect affordable for-sale housing in order to create opportunities for 100% affordable homeownership with fractional underlying ownership of underlying land, under community control, with or without mixed use space, in high opportunity, low poverty neighborhoods, for low and moderate income Santa Monicans.

4.2.10 Rent to own
While there are many financial assistance programs for low and moderate income individuals and families pursuing homeownership, these programs can involve standard mortgage products that require participants have good credit and/or access to additional savings. Not all low and moderate income prospective homeowners can be served via these programs. However, rent-to-own programming can provide a gradual path to homeownership for low and moderate income people who lack strong credit histories and/or sufficient savings to utilize traditional homeownership assistance programs.

Typical rent to own opportunities advertised by private property owners can be predatory schemes that result in higher monthly payments by tenants that nonetheless fail to result in 54 https://nhc.org/policy-guide/shared-equity-homeownership-the-basics/shared-equity-models-of-ownership/ 55 https://nhc.org/policy-guide/shared-equity-homeownership-the-basics/shared-equity-models-of-ownership/ 56 https://challenge.economicarchitectureproject.org/evolution-in-community-land-trusts

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Packet Pg. 1853 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 26 homeownership because agreements include clauses whereby tenants forfeit all ownership claims unless and until they have paid the entire home purchase price. Because this can take a long time, tenants often move out before completing the purchase and forfeit equity that might have been built under a contract with different conditions.

Municipal, nonprofit, and other organizations whose aims are to advance affordable homeownership have an opportunity to create supportive, rather than predatory, rent to own programming. One key potential difference between the two is fractional accrual of equity by tenants with each payment, ensuring rent to own is not a decades long, all or nothing bid for homeownership.

Therefore, the Housing Commission recommends that City Council direct staff to research and report to City Council on the feasibility of and best practices for supporting rent to own paths to affordable homeownership whereby a portion of paid monthly rents are credited toward the purchase of that unit as well as proportional ownership of the underlying land.

Tenants accrue fractional ownership with each payment and retain rights to compensation for such if they vacate their unit prior to completing its purchase. Rent to own programming may be implemented by the city or via a nonprofit organization with the primary aim of advancing affordable homeownership.

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Packet Pg. 1854 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 27

5. Recommendations
The Santa Monica Housing Commission recommends that City Council urgently takes the following actions to establish and increase avenues for affordable homeownership in Santa Monica:

1. Create new city policy (e.g., TORCA 2.0) that:

A. Allows and encourages the conversion of existing rent controlled units to for-sale units, with the following provisions:
i. Conversions of rent controlled buildings take place via the purchase of entire rent controlled properties by nonprofit organizations or government intermediaries with the primary goal of facilitating renters’ optional purchase of their units;
ii. Any organization purchasing a rent controlled building via this provision institute deed restrictions to preserve housing affordability and rental units remain subject to rent control unless and until individual tenants choose to purchase their units, at which time the units will be sold at an affordable rate; iii. All individual unit purchases include proportional ownership of the entire property’s underlying land;
iv. Tenants’ purchase of their units is strictly voluntary, no existing tenants are displaced by this policy, and any organization that purchases a rent controlled building continue managing, under rent control, the tenancies of those who do not wish to purchase their units;
v. There are no time constraints for tenants to purchase their units after property acquisition;
vi. Units that are vacant at the time of conversion, or that become vacant should renters leave voluntarily, are sold with affordability covenants; vii. Once all units are sold, the managing organization retains no further ownership or control of the property or land and the building operate in a manner similar to other owner occupied buildings;
viii. Units purchased by tenants must be owner occupied with a minimum tenancy duration of two years before an owner may sell or rent their unit, and a flip tax and/or penalty fee to ensure owner occupancy and prohibit unit flipping;

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Packet Pg. 1855 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 28 ix. If individual tenant owned properties choose to allow subsequent renting of units by owners, rent charged must conform to affordability requirements where deed-restrictions are present. (See section 4.2.1.1) B. Allows the conversion of existing market rate rental housing to for-sale units, with the following provisions:
i. Market rate buildings that are exempt from rent control may be converted to tenant owned units;
ii. Building conversion requires protection for existing tenants who wish to remain in their units as renters without purchasing their units; iii. Converted buildings preserve the affordability of inclusionary units by converting them to affordable for-sale units if and when ownership conversion takes place and these affordable units are sold to qualifying low or moderate income buyers with a minimum tenancy duration of two years before an owner may sell or rent their unit;
iv. If individual owner occupied properties choose to allow subsequent renting of units by owners, rent charged by owners of affordable units must conform to affordability requirements where deed-restrictions are present. (See section 4.2.1.2)

2. Direct SMHA staff to adopt participation in the existing HUD HCV and other HUD homeownership programs. (See section 4.2.2)

3. Begin exploring the potential of converting 100% affordable rental housing to for-sale housing in the following ways:

A. Conduct research to determine the legal, financial, and logistical feasibility of working with current and/or new housing nonprofit partners to convert 100% affordable rental housing to a tenant-optional homeownership model on a per unit basis;
B. Engage directly with existing nonprofit housing providers currently managing, constructing, or planning 100% affordable rental properties in Santa Monica to gauge their willingness to consider such transitions and discuss how they could be orchestrated;
C. If feasible, encourage or require those current nonprofits to transition their units to a tenant-voluntary ownership model, which may require buildings to migrate to new nonprofits that will pursue ownership as a primary goal. (See section 4.2.3)

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Packet Pg. 1856 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 29

4. Explore the feasibility of requiring all new 100% affordable housing projects to include a minimum percentage of for-sale units in each 100% affordable housing building, for example 10%, with possible provisions that may permit a lower or no percentage of for-sale units in a given building in exchange for additional 100% affordable housing projects comprised of 100% affordable for-sale units. All such for-sale units should require owner occupancy and a minimum owner occupancy duration of two years before an owner may sell or rent their unit. If individual owner occupied properties choose to allow subsequent renting of units by owners, rent charged must conform to affordability requirements where deed-restrictions are present. (See section 4.2.4)

5. Equalize the treatment of new ownership construction and new rental construction in planning and fee schedules so that one isn’t privileged over the other. (See section 4.2.5)

6. Prioritize new construction of market rate for-sale housing over market rate rental housing until homeownership rates equalize. (See section 4.2.6)

7. Establish generous city programs using housing trust funds to provide interest free or forgivable down payment assistance to low and moderate income city residents who wish to purchase affordable housing. (See section 4.2.7)

8. Establish a city home purchase assistance office that will encourage homeownership, help prospective buyers navigate the various purchase assistance programs, monitor ownership programs, and seek new ways to help Santa Monica residents buy their homes. (See section 4.2.8)

9. Research, create, and secure funding for a community land trust pilot program to permanently acquire land and convert or erect affordable for-sale housing in order to create opportunities for 100% affordable homeownership with fractional underlying ownership of land, under community control, with or without mixed use space, in high opportunity, low poverty neighborhoods, for low and moderate income Santa Monicans. (See section 4.2.9)

10. Direct staff to research and report to City Council on the feasibility of and best practices for supporting rent to own paths to affordable homeownership whereby a portion of paid monthly rents are credited toward the purchase of that unit and proportional ownership of the underlying land. Tenants accrue fractional ownership with each payment and retain rights to compensation for such if they vacate their unit prior to completing its purchase. Rent to own programming may be implemented by the city or via a nonprofit organization with the primary aim of advancing affordable homeownership. (See section

4.2.10)

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Packet Pg. 1857 Attachment: Santa Monica Housing Commission Affordable Homeownership Report (5966 : Housing Commission Update) Santa Monica Housing Commission Affordable Homeownership Report 30

6. Conclusion
Homeownership is the cornerstone of the American Dream. In addition to the financial and material rewards of helping lower and control long term housing costs, building personal and multigenerational wealth, and enabling environmental customization, homeownership brings vital, less tangible benefits like providing a means of self-expression, fostering pride, increasing social equity, and strengthening community. As such, homeownership is an unparalleled means of improving individuals’ and families’ quality of life.

Santa Monica prides itself on being a diverse, equitable, and inclusive city. It has taken great strides in acknowledging historical harms and facilitating the participation of marginalized communities in creating a vibrant local cultural milieu. At this point in history, diversity is still inextricably tied to socioeconomic diversity. Therefore, the city’s next steps to advance diversity, equity, and inclusion must address the fact that diversity in Santa Monica, as elsewhere, still exists at the expense of its least privileged residents.

While affordable rental housing is a key component of plans to remedy California’s and Santa Monica’s affordable housing crisis, relegating low and moderate income residents solely to rental housing perpetuates and exacerbates other economic and societal disparities. These disparities are increasingly evident in Santa Monica given the high cost of living, and the city must act swiftly and decisively to mitigate and more fully address them.

HUD Secretary Marcia Fudge correctly states that “homeownership is the principal source of wealth creation for most American households.” As such, equity in Santa Monica—both literal and figurative, financial and societal—is dependent upon the creation of affordable homeownership opportunities. To strengthen the fabric of this community and ensure that equity, diversity, and inclusion thrive here, Santa Monica must work to enfranchise and empower those who are integral to the city’s character and success but not yet integrated into both its tangible and intangible wealth.

Despite the high cost of living in Santa Monica, including some of the highest real estate prices in the country, affordable homeownership is possible here. Successful programming in similarly expensive cities like San Diego and New York City demonstrates this. With the commitment and creativity of city leaders, Santa Monica can strengthen its social, cultural, and economic foundations while protecting and fortifying its most vital asset—the people who live, work, play, and love here.

The Santa Monica Housing Commission thanks City Council for its consideration of this report and the community informed recommendations herein. The Housing Commission respectfully asks that the Mayor, Mayor Pro Tempore, and Councilmembers act swiftly to begin the process of including all residents in the bounty, equity, and pride of homeownership in Santa Monica.

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Packet Pg. 1861 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Peter Borresen <[email protected]>
Sent: Monday, September 25, 2023 9:24 AM
To: councilmtgitems
Subject: Public comment for Item 13.a. Santa Monica council Sept 26th, 2023

EXTERNAL
Dear the Santa Monica City Council,
In response to the public comment submitted by SMRR regarding agenda item 13.a on 7/24/2023 The report submitted by the Housing Commission regarding affordable home-ownership is a starting point, that we ask the council to send to staff for study further.

The housing commission is asking the council to agree that affordable home-ownership is a good thing - and that its report could provide one feasible path towards that goal. It is not the role of the unpaid and un-staffed, volunteer commission to develop detailed legal and financial plans. However, the commission has absolutely shown why affordable ownership is morally and socially essential and potentially very achievable.

Regarding financing - TORCA 2.0 may well be largely self financing after initial seed money, as the apartment buildings are half the price of condos, and the proceeds from selling units to residents will be fed back into the program.

The vast majority of public speakers at the housing commission were clearly in favor of affordable home-ownership.

The naysayers have apparently expended a huge effort to argue it can't be done... instead of putting that effort into showing how it can be done. This seems to show a falsity in the naysayers claim that they support affordable ownership. They seem to be fighting against the expressed desires of the vast majority of public speakers at the housing commission, (and very probably the vast majority of Santa Monica renters.) It is ironic that many of the naysayers may own property themselves (whether in Santa Monica, or elsewhere) and are getting wealthier by the day while the lower-income and working class struggle.

Those seemingly opposed to ownership appear to be looking for any way to wriggle out of confronting the real issues - that many renters are stuck, are at risk of Ellis evictions, and are desperate to own their homes.

Yours sincerely,
Peter Borresen. Housing Commissioner, writing on my own behalf as a resident.

Dominic Gomez. Housing Commissioner, writing on my own behalf as a resident.

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Packet Pg. 1862 Attachment: Written Comments (5966 : Housing Commission Update) 1 July 24, 2023
Re: Agenda Item 13A for July 25, 2023 City Council Meeting (Housing Commission Report) – The Need for Further Study, Including Financial Modeling, to Determine Whether Santa Monica Can Create A Fair, Effective and Efficient Affordable Home Ownership Program
Dear Councilmembers:

Santa Monicans for Renters’ Rights (“SMRR”) has reviewed with great interest the Santa Monica Housing Commission’s May 7, 2023 Report entitled “Creating Equity: Affordable Home Ownership in Santa Monica” (“the Report”). SMRR has long shared the goal of creating affordable homeownership opportunities, in addition to affordable rental opportunities, if it can be done fairly, effectively and efficiently. For example, since 2008 each SMRR Platform (adopted by a vote of the SMRR general membership) has provided:

The City should facilitate below-market-rate homeownership and rental opportunities for very-low-income and low-income households that live or work in Santa Monica. SMRR opposes condo-conversion schemes that create displacement and harassment risks for existing residents.

SMRR Platform at Plank B.9.

SMRR appreciates the effort that the Housing Commission put into the Report, and SMRR particularly appreciates the Housing Commission’s apparently strong agreement with SMRR that any potential program for the conversion of rental housing to ownership housing must avoid displacement and harassment risks for existing residents.1 However, for the reasons set out in detail below, SMRR believes far more work must be done—including financial modeling (which is completely absent from the Report)—before the Housing Commission, the City Council, or the community can credibly determine whether any of the proposals put forward in the Report represent sensible policy and/or a proper use of the City’s limited affordable housing funds.

Principles of good and responsible governance require that no decisions regarding potential uses of taxpayer funds (or supporting legal changes) should occur until the additional work necessary for a credible decision is performed by Staff and the Housing Commission, and vetted by the City Council and the community.

1 For example, in order to avoid the risks of tenant harassment and displacement, the Housing Commission recommends that a non-profit entity purchase a building before the process of converting it to ownership housing commences. See Report at 20.

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Packet Pg. 1863 Attachment: Written Comments (5966 : Housing Commission Update) 2 I. THE REPORT DOES NOT PROVIDE OR LINK TO INFORMATION ABOUT

EXISTING PROGRAMS IN OTHER JURISDICTIONS THAT IS SUFFICIENT TO DEMONSTRATE THAT THE REPORT’S PROPOSALS ARE FAIR,
EFFECTIVE AND EFFICIENT USES OF THE CITY’S LIMITED RESOURCES On the first page of the “Introduction” to the Report, the Housing Commission recognizes the need to demonstrate that an affordable homeownership program can be implemented in Santa Monica in a fair, effective and efficient manner:

Affordable homeownership may not seem feasible in Santa Monica due to the high cost of living, and therefore a poor use of limited city and federal resources.

However, successful programs in similarly costly cities like San Diego1 and New York City2 demonstrate otherwise.
1 https://www.sdhc.org/housing-opportunities/affordable-for-sale-housing/ 2 https://www.nyc.gov/site/hpd/services-and-information/hdfc.page Report at p. 3.

The Report makes no further reference to the San Diego or New York City programs, or to any other existing local government program (although it does reference HUD rules that govern any federally funded Section 8 homeownership program that a local housing authority may choose to create). However, a review of the information on the cited websites reveals material differences between the San Diego and New York City programs on the one hand, and the Report’s proposals on the other hand—as well as the absence of critical financial information.

Consequently, SMRR respectfully submits that the Report’s citation to the existence of the San Diego and New York City programs does not by itself constitute sufficient analysis to credibly “demonstrate” that the Report’s proposals are viable and wise.

The San Diego Program
The San Diego program is 20 years old. It consists of 257 total units, which represents roughly 1/20th of one percent of the total housing stock in San Diego. This is equivalent to roughly 25 units in Santa Monica.

The San Diego units were constructed by private developers in either 2003 or 2006—a time when land and construction costs (as well as the market value of the units) were much lower than they are in Santa Monica today. The units then were sold to eligible lower or moderate income homebuyers at below market prices affordable to them, with the San Diego Housing Authority (“SDHA”) taking back a promissory note and second deed of trust for the difference between the below market price paid and the actual market price of the unit at the time of the first sale (an amount that the SDHA presumably paid to the private developer back in 2003 and 2006). The homebuyers paid the purchase price through 30 year fixed-rate mortgages from third-party lenders. The second loan is repayable to the SDHA as a balloon payment at the end of the 45 or 55 deed restriction period.

Unlike the proposals in the Report, the San Diego program guidelines require the purchasers of the units to reside in them as their primary residence at all times (i.e., the homebuyers may not rent the units to others). The guidelines also require (apparently like the proposals in the Report) that any resales of the units during the 45 or 55 year deed-restriction period be made to the same Item 13.A
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Packet Pg. 1864 Attachment: Written Comments (5966 : Housing Commission Update) 3 income-type household as originally purchased the unit at a price the SDHA calculates is affordable to such a household (a price that the guidelines state will be below the then current market price). The new homebuyer must agree to abide by all the same program restrictions, and must assume the obligation to repay the original loan by the SDHA at the end of the deedrestriction period.

A large number of critical questions regarding the San Diego program are left unanswered by the cited website. These include, but are not limited to:

Why has San Diego decided not to add any units to this program in the last 17 years? What did it cost the SDHA to partially finance the original purchases back in 2003 or 2006, and what would it cost to replicate that aspect of the program model today? What does it cost SDHA to administer the program?
Has SDHA incurred other costs (e.g., protecting the unit from foreclosure to the thirdparty lender who financed the homebuyers’ portions of the purchase price, covering any homeowner association dues or assessments missed by the homebuyers, etc.)? Why did SDHA elect to require owner occupancy (i.e., preclude the homebuyers from renting to others)?
How many of the original homebuyers have sold their units to date, and were those sales voluntary or compelled to avoid foreclosure (e.g., due to missed mortgage payments, missed Homeowners Association dues or assessments for major repairs, etc.)? What financial gains, if any, have been obtained by persons who sold their units subject to the affordable price resale requirement?
New York City Program
The New York City program is roughly 50 years old. It consists of more than 1100 limitedequity cooperative buildings that, according to a March 2020 Curbed NY article that SMRR located, include some 25,800 units. These units represent roughly 4/5ths of one percent of the total units in New York City, which would equate to roughly 400 units in Santa Monica.

Many of these buildings were acquired by New York City in the 1970s and 1980s when the landlords abandoned them (an acquisition pathway not available in Santa Monica), and then the City rehabilitated them over time. More recently, some undisclosed number of buildings were constructed (and, while not clear from the relevant website, maybe some other recent buildings were acquired and rehabilitated).

The precise rules governing the original unit purchases apparently vary somewhat among the buildings. Each homebuyer must meet the income restrictions imposed for the particular unit.

The precise mechanism for calculating sales price is not disclosed on the cited website (although it necessarily is limited given the income restrictions on eligible purchasers and the nature of the limited-equity cooperative model of affordable homeownership). The source of purchaser financing likewise is not disclosed.

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Packet Pg. 1865 Attachment: Written Comments (5966 : Housing Commission Update) 4 Unlike the proposals in the Report, the typical cooperative building in the New York City program requires the purchasers of the units to reside in them as their primary residence at all times (i.e., the homebuyers may not rent the units to others, although subletting during a temporary absence may be allowed in some buildings). The typical cooperative building also requires (apparently like the proposals in the Report) that any resales of the units be made to the same income-type household as originally purchased the unit (which inevitably limits the resale price well below market price). In addition, a portion of the profit on any resale must be paid to the cooperative as a “flip tax” (which uses the money for repairs and maintenance), although the percentage varies by building.

A large number of critical questions regarding the New York City program are left unanswered by the cited website. These include, but are not limited to:

What did it cost New York City to recently construct new buildings (and, if applicable, to recently acquire and rehabilitate non-abandoned buildings)? What does it cost New York City to administer the program? Has New York City incurred other costs (e.g., providing loans to individual homebuyers, serving as a backstop to the cooperative buildings in the event mismanagement or unexpectedly substantial repairs require infusions of funds, etc.)?
How do purchasers finance their purchases?
Why did New York City elect to require owner occupancy (i.e., preclude the homebuyers from renting to others)?
How many of the original purchasers have sold their units to date, and were those sales voluntary or compelled to avoid foreclosure (e.g., due to missed mortgage payments, missed Cooperative dues or assessments for major repairs, etc.)? What financial gains, if any, have been obtained by persons who sold their units subject to the resale requirements?
Section 8 Homeownership Program
At a later point, the Report quotes in part and cites HUD’s online general “Overview” of the Section 8 Housing Choice Voucher Homeownership program:

The HUD Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses. The HCV homeownership program is available only to families that have been admitted to the HCV program and each PHA has discretion to determine whether to implement the HCV homeownership program in their jurisdiction.

To participate in the HCV homeownership program, the HCV family must meet specific income and employment requirements (employment requirements do not apply to elderly and disabled families), be a first-time homeowner as defined in the regulation, attend and satisfactorily complete the pre-assistance Item 13.A
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Packet Pg. 1866 Attachment: Written Comments (5966 : Housing Commission Update) 5 homeownership and housing counseling program required by the PHA, and meet any additional eligibility requirements set by the PHA.47 47 https://www.hudexchange.info/programs/public-housing/hcv-homeownership/ Report at 21. Although not mentioned in the Report, the cited website provides links that shed some light on the nature of the existing programs in jurisdictions that have elected to stand up such a HCV homeownership program. This limited information makes clear that mere citation to the potential for such a program is not sufficient by itself to credibly demonstrate that implementing such a program in Santa Monica is viable or wise.

In particular, the website links to a spreadsheet identifying the total number of new and ongoing participants in each existing program for each year from 2015 through 2020. Sorting the spreadsheet to California reveals that the (1) the 42 programs in California have a combined total of about 400 participants, (2) there has been no growth in the number of participants in the programs over that six year period, (3) the City of Los Angeles has a program with just 40 participants, and (4) San Francisco has a program with just four participants.

The website also links to a January 19, 2022 HUD webinar with representatives from what HUD considers high performing programs in Columbus Ohio (a program that had averaged roughly 11 to 14 home purchases per year from the approximately 13,500 voucher holders), Fort Worth Texas (a program that had averaged roughly 13 home purchases per year from the approximately 6,000 voucher holders), Louisville Kentucky (a program that had averaged roughly 25 home purchases per year from the approximately 11,000 voucher holders), and the State of Michigan (a program that had averaged roughly 50 home purchases per year from the approximately 29,000 voucher holders). The representatives from these jurisdictions—which undoubtedly have far lower housing costs than Santa Monica—stated that the very high prices in their markets as of January 2022 and low inventory had largely brought their programs to a standstill at that time. The representatives also discussed the substantial administrative effort historically required to make their programs successful.

This limited data leaves a large number of questions unanswered, including but not limited to the following:

What did it cost Los Angeles to stand up its program?
What does it cost Los Angeles to administer its program? Are there other costs that Los Angeles (or other jurisdictions) have incurred (e.g., the need for pre- or post-closing financial assistance to the purchaser beyond the voucher payments)?
How do participants in the Los Angeles program finance their downpayments? What lenders finance the home purchases in the Los Angeles program? What is the price of a unit that a participant in the Los Angeles program could afford? What explains why the Los Angeles program consists of just 40 participants? Item 13.A
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Packet Pg. 1867 Attachment: Written Comments (5966 : Housing Commission Update) 6 What explains why there has been no growth in the Los Angeles program from 2015 through 2020?
What financial gains, if any, have participants in the Los Angeles program obtained (note that HUD regulations prohibit participants from leasing or selling the properties while they remain in the program)?
* * *
In short, SMRR believes a much deeper understanding of the existing programs referenced in the Report is a necessary (but not sufficient) precondition to credibly evaluating whether those same or somewhat altered programs could or should be adopted in Santa Monica.

II. THE REPORT DOES NOT PROVIDE ANY OF THE FINANCIAL ANALYSES

OF THE PROPOSED PROGRAMS AND POTENTIAL ALTERNATIVE USES

OF CITY FUNDS THAT ARE NECESSARY TO A CREDIBLE EVALUATION OF THE REPORT’S PROPOSALS
In order to credibly evaluate the broad concepts recommended in the Report, pro forma financial analyses of the proposed affordable homeownership programs also are necessary in order to assess (1) what it would cost the City to design, fund and administer these programs, (2) how many people at what income levels could feasibly utilize these programs, (3) what benefits would the participants in these programs receive, and (4) what risks would the participants take (e.g., incurring large unit or building repair costs, and potentially losing their homes if unable to afford these costs). If these pro forma financial analyses suggest one or more programs could be financially feasible and effective in Santa Monica, similar pro forma analyses would be needed of alternative affordable housing programs in order to compare the cost-effectiveness of the proposed programs and alternative programs. Assuming the comparative pro formas indicated one of the proposed programs could be cost-effective, further financial analysis would be required to determine the potential additional costs (if any) that adoption of the proposed programs would have on remaining renters (e.g., would rents rise from a reduction in supply?).

The Report fails to supply any of this necessary financial analysis, and therefore does not provide a credible basis for evaluating the Report’s proposed programs.

III. IF AND WHEN A CREDIBLE CASE IS PRESENTED FOR THE REPORT’S

PROPOSED AFFORDABLE HOMEOWNERSHIP PROGRAMS, OR SOME

ALTERNATIVE PROGRAM, ADDITIONAL ATTENTION WILL BE

REQUIRED TO ASSURE THE PROGRAMS ARE ADMINISTERED FAIRLY Assuming the requisite work discussed in prior sections of this letter indicates that the Report’s proposed programs could be effective and efficient, considerable additional work will be required to assure that they are fair. As the discussion in Part I above of existing programs makes clear, only a small number of persons will be able to take advantage of any affordable homeownership opportunities. This means that the process for selecting who obtains these benefits must be fair and must be viewed by the community as fair.

One obvious requirement is that those who have participated and will participate in the evaluation and adoption of the currently proposed and any ultimately adopted programs must be precluded from actually utilizing the programs (as sellers or buyers). Failure to adopt this rule Item 13.A
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Packet Pg. 1868 Attachment: Written Comments (5966 : Housing Commission Update) 7 would raise concerns that the evaluation and adoption process was guided by self-interest rather than the community’s best interest, and would raise concerns that the selection process itself was rigged to favor insiders. True or not, the appearance of impropriety would be anathema to good governance principles and undermine community support for any ultimately adopted program.

Many additional potential criteria undoubtedly would come to mind, and would have to be vetted both for validity and for legality (for example, prioritizing those with the longest period of residence in the community, requiring residents of existing buildings all consent, etc.).

Consideration of such potential criteria is premature until there first is a potentially effective and cost-efficient program to consider.

IV. IF AND WHEN AN APPARENTLY FAIR, EFFECTIVE AND EFFICIENT

PROGRAM IS IDENTIFIED, THE CITY SHOULD PROCEED WITH A PILOT

PROGRAM TO TEST WHETHER THESE THEORETICAL CONCLUSIONS

ARE BORNE OUT IN THE REAL WORLD
Prudence and good government principles dictate that, should it appear possible to stand up a fair, effective and efficient affordable homeownership program, the City should begin with a pilot program in order to determine whether there is proof of concept in the real world conditions prevailing in Santa Monica. Council adopted this approach when it developed the Preserve Our Diversity rent subsidy program, and valuable lessons were learned from both the initial pilot and the expanded pilot programs.
* * *
In sum, SMRR supports the concept of an affordable home ownership program in Santa Monica to the extent it can be fair, effective and efficient. The Report does not yet provide the necessary data from which to make a credible decision about whether that is in fact possible. Council should make no decisions unless and until the requisite data is developed.

Thank you for considering our views.

Sincerely,

Denny Zane Mike Soloff
Co-Chair, Santa Monicans for Renters’ Rights Co-Chair, Santa Monicans for Renters’ Rights Item 13.A
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Packet Pg. 1869 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Elizabeth Lutz <[email protected]>
Sent: Monday, September 25, 2023 8:01 PM
To: councilmtgitems; Lana Negrete
Subject: Council members request to hear this presentation

EXTERNAL
Dear Mayor Davis, Mayor Pro Tempore Negrete, and esteemed City Councilmembers, I’m writing to express support for the Housing Commission’s report on and recommendations for affordable homeownership in Santa Monica. A city composed of 70% renters and 30% homeowners is neither healthy nor sustainable. City Council seems to recognize this, having explicitly outlined city priorities to establish and increase affordable homeownership opportunities.

As a Santa Monica resident, I look forward to the increased stability and strengthened community that affordable homeownership will bring. At City Council’s direction, conducting feasibility and financial analyses and outlining details of implementation are the responsibilities of city staff. The Housing Commission’s ten recommendations are an excellent start to this overdue transition to a focus on affordable homeownership and I urge you to vote to enact them.

I understand that a board or commission member may normally only speak to City Council for 10 minutes. In light of the exceptional substance and import of this report and the recommendations therein, I also ask that you please vote to allow the Housing Commission to share their complete, formal, 30 minute presentation with City Council and the larger community.

Thank you for your attention and consideration.

Sincerely,
Elizabeth Lutz
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Packet Pg. 1870 Attachment: Written Comments (5966 : Housing Commission Update) 2 Vernice Hankins
From: Ann Maggio <[email protected]>
Sent: Monday, September 25, 2023 7:39 PM
To: councilmtgitems
Subject: Item 13 Creating Equity - Move this up on the agenda and provide 30 minutes for the Presentation

EXTERNAL
Dear City Council,
This is a very important and LONG AWAITED item our lower income residents are eager to hear about. Please afford the Housing Commission the 30 minutes they are asking for in order to present it. And please ask LOTS of Questions! Questions are the only way to improve and clarify plans.

Thank you,

Ann Maggio Thanawalla
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Packet Pg. 1871 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Danielle Charney <[email protected]>
Sent: Monday, September 25, 2023 9:39 PM
To: councilmtgitems; Phil Brock; Lana Negrete; Jesse Zwick; Caroline Torosis; Gleam Davis; Christine Parra; Oscar de la Torre; David White; [email protected] Subject: Correction : ITEM 13 A HC Report- GRANT EXTENSION FOR 30 MINUTES

EXTERNAL
City Councilmembers,
I’m writing to lend my support for the Housing Commission’s report on and recommendations for affordable
homeownership in Santa Monica. Our city is composed of 70% renters and 30% homeowners. This is neither healthy nor sustainable. City Council knows this, and has outlined our priorities to plan for and increase affordable homeownership opportunities. I am very happy about this although it will not benefit myself and other seniors. We missed that one but with all that is going on with Wall Street investors and foreign syndicators lapping up all they can here ‐ we must do
something to offset this.

I am a long time Santa Monica resident.  I hope I live long enough to see more stability and a strengthened community that affordable homeownership will bring.  City Council’s can direct staff to conduct  feasibility and financial analyses and outline details of this implementation. The Housing
Commission’s ten recommendations are an studied and
professional start to this overdue transition. A focus on affordable homeownership is needed and vital to stop the path we are on. I urge you to vote to put them into motion
immediately with no delay. Please do not instruct staff to give Item 13.A
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Packet Pg. 1872 Attachment: Written Comments (5966 : Housing Commission Update) 2 a biased view that will deny this feasability due to our committment to our affordable providers. Let's get them to work with us on this. Perhaps there are some CCSM buildings that can be turned into condos.

I understand that a board or commission member may
normally only speak to City Council for 10 minutes. In light of the exceptional substance and import of this report and the recommendations therein, I also ask that you please vote to allow the Housing Commission to share their complete, formal, 30 minute presentation with City Council and the larger community.

Thank you for your attention and consideration.

Thank you,
Danielle Charney
Resident Since 1982
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Packet Pg. 1873 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Bruce Leddy <[email protected]>
Sent: Monday, September 25, 2023 10:58 PM
To: councilmtgitems; Gleam Davis; Lana Negrete; Phil Brock; Jesse Zwick; Christine Parra; Oscar de la Torre; Clerk Mailbox; Caroline Torosis
Subject: Item 13/Sept 26th Meeting

EXTERNAL
Dear Mayor Davis and esteemed City Councilmembers,
I’m writing to express support for the Housing Commission’s report on affordable homeownership in Santa Monica. I understand that a board or commission member may normally only speak to City Council for 10 minutes. In light of the exceptional substance and import of this report and the recommendations therein, I also ask that you please vote to allow the Housing Commission to share their complete, formal, 30 minute presentation with City Council and the larger community.

The Housing Commission’s ten recommendations are an excellent start to this overdue transition to a focus on affordable homeownership and I urge you to vote to enact them.

Thank you for your consideration.

Sincerely,
Bruce Leddy
23 Year SM Resident
Chair, NOMA
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Packet Pg. 1874 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Mathew Millen <[email protected]>
Sent: Tuesday, September 26, 2023 10:52 AM
To: councilmtgitems; Phil Brock; Oscar de La Torre; Christine Parra; Lana Negrete; Caroline M. Torosis; Jesse Zwick; Gleam Davis
Subject: 9/26 item 13 Housing Comm/Home Ownership

EXTERNAL
Dear Council Members:  It is time our city adopted a program to help tenants and school teachers, nurses in our hospitals etc. to
buy a home/condo in Santa Monica.  Please vote to direct staff to pursue the various proposals set forth in the
Housing Commision Report and come back with a recommended program...and let's start by not selling the lots near the downtown Metro stop and use
that property for home ownership opportunities.
respectfully submitted
Mathew Millen
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Packet Pg. 1875 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: lmarreola <[email protected]>
Sent: Tuesday, September 26, 2023 11:34 AM
To: councilmtgitems
Cc: Phil Brock
Subject: Item 13

EXTERNAL
Please vote to allow Housing Commission to give their entire planned presentation.

They worked hard on it and deserve the time.

Thank You
Carol and Larry Arreola
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Packet Pg. 1876 Attachment: Written Comments (5966 : Housing Commission Update) 1 Vernice Hankins
From: Esther Hickman <[email protected]>
Sent: Tuesday, September 26, 2023 11:36 AM
To: councilmtgitems; Council Mailbox
Subject: Support Affordable Homeownership

EXTERNAL
Dear Mayor Davis, Mayor Pro Tempore Negrete, and esteemed City Councilmembers, I’m writing to express support for the Housing Commission’s report on and recommendations for affordable homeownership in Santa Monica. A city composed of 70% renters and 30% homeowners is neither healthy nor sustainable. City Council seems to recognize this, having explicitly outlined city priorities to establish and increase affordable homeownership opportunities. As a Santa Monica resident, I look forward to the increased stability and strengthened community that affordable homeownership will bring. At City Council’s direction, conducting feasibility and financial analyses and outlining details of implementation are the responsibilities of city staff. The Housing Commission’s ten recommendations are an excellent start to this overdue transition to a focus on affordable homeownership and I urge you to vote to enact them. I understand that a board or commission member may normally only speak to City Council for 10 minutes. In light of the exceptional substance and import of this report and the recommendations therein, I also ask that you please vote to allow the Housing Commission to share their complete, formal, 30 minute presentation with City Council and the larger community. Thank you for your attention and consideration.

Sincerely,
Esther Hickman
Resident
Pico Neighborhood
m: 310‐600‐7306
https://linktr.ee/estherhickman
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Packet Pg. 1877 Attachment: Written Comments (5966 : Housing Commission Update) September 26, 2023
Subject: Item 13-A – Affordable Home Ownership
Dear Mayor Davis, Mayor Pro Tempore Negrete and City Councilmembers, We are writing to express our concern over the recommendations in the report from the Housing Commission on Affordable Home Ownership. While we think providing opportunities for more Santa Monicans to own homes is commendable, we worry the recommendations included could have adverse effects on renters and reduce our supply of affordable rental units. This report significantly misunderstands the causes and needed solutions to our housing challenges.

While in the future, we would encourage the city to explore best practices in other cities in the U.S. and abroad in providing more affordable paths to homeownership, currently city staff time is very limited and this should not be a priority.

As you know we are in the midst of a severe housing shortage and homelessness crisis.

Our focus needs to be on protecting tenants, preserving existing affordable units, producing new affordable and market rate units, and providing services and homes for those struggling with homelessness.

Sincerely,
Bradley Ewing and Carl Hansen
Co-Chairs, Santa Monica Forward
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Packet Pg. 1878 Attachment: Written Comments (5966 : Housing Commission Update) City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 14.A
1 of 10
To: Mayor and City Council
From: Anuj Gupta, Interim Director of Transportation, Mobility (DOT) Subject: Adoption of a Resolution Amending Preferential Parking Zones QQ and YY Recommended Action
Staff recommends that City Council:

1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) and a finding of Categorical Exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines.

2. Amend Preferential Parking Zone QQ for the following block:

Harvard Street between Washington Avenue and Wilshire Boulevard by changing the regulations from 2-hour parking 9AM-6PM Monday-Friday, except by permit to 2-hour parking 9AM-10PM daily, except by permit.

3. Amend Preferential Parking Zone YY for the following three blocks:

Princeton, Harvard, and Yale streets between Arizona Avenue and Wilshire Boulevard by changing the regulations from 2-hour parking 9AM-10PM daily, except by permit to 2-hour parking 9AM-6PM, No parking 6PM-9AM daily, except by permit.

4. Approve the Resolution amending Preferential Parking Regulations (Attachment A).

Executive Summary
In response to citywide restructuring, at the July 28, 2020, City Council meeting, Council adopted a moratorium on the designation of new or amended preferential parking zones for a period of four years, from September 24, 2020, through September 24, 2024. Staff was directed to continue to implement pre-approved zones as residents submit petitions and issue and renew permits in existing zones. Petitions to amend existing regulations from blocks in the vicinity of Harvard Street and Wilshire Boulevard, including but not limited to: Harvard Street between Washington and Arizona avenues and Princeton

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Street between Wilshire Boulevard and Arizona Avenue were excluded from the moratorium as those petitions were already in process. Residents of the 1000-1100 blocks of Harvard Street and the 1200 blocks of Harvard and Princeton Streets have submitted qualifying petitions to amend the existing preferential parking regulations. A petition was also submitted by the 1200 block of Yale Street in September 2019, but the petition has not yet qualified as it represented less than 67% of the households on that block.

Residents contend that non-resident parking regularly interferes with their ability to find parking near their homes. Parking data indicates that these streets regularly experience an average parking occupancy of 77% and an 89% peak parking occupancy on both an average Wednesday and average Saturday. To ensure a balance between the parking demands of all users and a broader consistency with the preferential parking regulations already in place on neighboring streets, staff recommends approving amended preferential parking regulations for the 1000-1100 blocks of Harvard Street located in Preferential Parking Zone QQ and the 1200 blocks of Harvard and Princeton streets located in Preferential Parking Zone YY. Additionally, staff recommends pre-approving amended regulations for the 1200 block of Yale Street in Zone YY, to enable residents to petition for the same regulations in the future.

Background
Preferential parking is a tool the City uses to manage non-resident parking on residential streets, as authorized by Santa Monica Municipal Code (SMMC) 3.08 Preferential Parking Zones and the California Vehicle Code. Only residents who live on a block with preferential parking regulations are eligible to purchase a permit for each vehicle registered to the address. Up to two additional visitor permits may be purchased. Permits may be used within the assigned district, up to two blocks away from the permit holder’s address.

Residents in an existing preferential parking zone may request to amend regulations via a petition representing at least two-thirds of the residential units and at least half the

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residential frontage on the block. Upon receipt of a petition representing two-thirds of the residential units on a block, a parking occupancy study of the neighborhood is conducted, and a community meeting is held. In evaluating the petitions, staff typically evaluates the larger neighborhood, rather than an individual block due to the potential for parking displacement when regulations are established or changed. As a result, staff typically recommends that the Council pre-approve preferential parking regulations for more than one block to streamline and expedite the process for adjacent blocks should some displacement occur.

Once Council approves preferential parking regulations, they are implemented on the block or blocks that have submitted qualifying petitions. Preferential parking regulations are not implemented on blocks that have been pre-approved by the Council until the time that the residents of those blocks submit qualifying petitions representing two-thirds of the residential units on the block. If Council amends preferential parking regulations, they are implemented within approximately 12 weeks. The preferential parking work effort was interrupted due to the COVID-19 pandemic and citywide restructuring, as discussed at the July 28, 2020, City Council meeting.

Past Council Actions
Meeting Date Description
7/28/2020 (Attachment B) Council adopted a modification to SMMC Chapter 3.08— Preferential Parking Zones: suspend designation of new or amended preferential parking zones for a period of 4 years; continue to implement pre-approved zones and issue and
renew permits in existing zones

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Discussion
To balance the competing needs for curb space and private vehicle parking along the 1000-1100 blocks of Harvard Street and 1200 blocks of Princeton, Harvard, and Yale streets, staff recommends the following amendments to preferential parking zones QQ and YY:

1. On Harvard Street between Washington Avenue and Wilshire Boulevard (Zone QQ), change the regulations from 2-hour parking 9AM-6PM Monday-Friday, except by permit to 2-hour parking 9AM-10PM daily, except by permit. This aligns with the neighborhood preferential parking regulations implemented on the following adjacent streets: 1100 blocks of Princeton, 26th, and 25th Streets, and Chelsea Ave.

2. On Princeton, Harvard, and Yale Streets between Arizona Avenue and Wilshire Boulevard (Zone YY), change the regulations from 2-hour parking 9AM-10PM daily, except by permit to 2-hour parking 9AM-6PM, No parking 6PM-9AM daily, except by permit. This aligns with the neighborhood preferential parking regulations implemented on the following adjacent streets:1200-1300 blocks of Stanford, Berkeley, and Franklin Streets.

In 2018-2019, petitions with signatures representing at least 67% of households on the 1000-1100 blocks of Harvard Street and the 1200 blocks of Harvard and Princeton Streets were submitted to the City to amend the existing preferential parking regulations. Additionally, a petition was submitted from the 1200 block of Yale Street, though that petition did not qualify as it represented less than 67% of the households.

In September 2019, staff conducted community outreach and held a community meeting with area residents, businesses, and property owners to discuss parking concerns and identify solutions. Those in attendance expressed the need for remedies to address the difficulties they encounter finding parking near their destination.

Residents stated that employees and patrons of Wilshire Boulevard businesses park on residential streets which negatively impacts their ability to find available parking.

Additional comments from the public meeting included an increase in negative parking

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behaviors such as people parking vehicles that block driveways and double parking, and increased congestion with the influx of delivery and customer vehicles. At the community meeting, many of the comments were related to concerns with the operation of the then-new business at 2800 Wilshire Boulevard, Erewhon Market. Staff spent the months following the community meeting working with representatives of Erewhon to mitigate impacts and organize traffic flow by implementing the following interventions:

1. Right-turn only out of Erewhon’s driveway onto Harvard Street

2. Right-turn only from Harvard Street onto Wilshire Boulevard

3. On-street loading space on Wilshire Boulevard to reduce the impacts to Harvard Street
Additionally, staff worked with Erewhon to have obstructions removed from their parking lot that blocked parking spaces and the on-site loading space. Erewhon Market offers valet parking in their parking lot and complies with SMMC 9.53, the City’s Transportation Demand Management (TDM) ordinance.

In November 2022, staff commissioned a parking study, to collect parking utilization data during a 14-hour period on two days when both Santa Monica Malibu Unified School District schools and Santa Monica College were in session: Wednesday November 16, and Saturday, November 19.

A parking occupancy of 85% per block is considered ideal as it means that the spaces are being well-utilized while still maintaining some availability on each block which prevents the need to circulate searching for parking. Based on the parking data, peak occupancy (utilization of 85% or more) on Wednesday, November 16, 2022, occurred during the lunch hour on the 1000-1100 blocks of Harvard; early morning, mid-day, and early evening on the 1200 block of Harvard; late morning on the 1200 block of Princeton and early afternoon on 1200 Yale. The 2700 block of Arizona had peak occupancy during mid-morning and late evening hours and the 2700 block of Wilshire had peak occupancy during mid-morning.

Peak Occupancy of 85% or more – Wednesday, November 16, 2022

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The peak occupancy during Saturday, November 19, 2022, was more evenly distributed, with the peak time of 85% or greater utilization occurring during the 9AM hour along the 1000-1100 block of Harvard Street and mid-day lunch period along the 1200 blocks of Harvard and Princeton Streets. The peak occupancy on the 1200 block of Yale was during the late afternoon and early evening, whereas the 2700 block of Arizona saw peak occupancy during the early morning hours and the 2700 block of Wilshire saw peak occupancy during the lunch hour and late evening hours.

Peak Occupancy of 85% or more – Saturday, November 19, 2022 In Spring 2023, staff mailed a survey to all 315 residential addresses on the subject blocks to gauge the level of difficulty in finding parking and identify potential preferential parking solutions. The following areas were surveyed:
• Harvard Street between Washington Avenue and Wilshire Boulevard (Zone QQ) • Princeton, Harvard, and Yale Streets between Wilshire Boulevard and Arizona Avenue (Zone YY)
The survey results focused on the easiest and most difficult times to find parking, number of private vehicles, access to private driveways and garages and resident suggestions for preferential parking solutions. For parking solutions, respondents were permitted to select multiple options. Based on the responses, every block surveyed selected the most restrictive regulation, No Parking 9AM-10PM Daily, except by permit.

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In light of these results and considering the broader neighborhood context and balancing the needs of various users of parking in the area (see Attachment B) without creating additional parking challenges on neighboring streets, staff recommends changing the regulations on the 1000-1100 blocks of Harvard to 2-hour parking 9AM10PM daily, except by permit. The majority of the households on Harvard Street between Washington Avenue and Wilshire Boulevard are single family homes with garages. This recommendation aligns with the neighborhood preferential parking regulations implemented on the adjacent streets including: 1100 blocks of Princeton, 26th and 25th Streets, and Chelsea Ave.

Households on the 1200 blocks of Harvard, Princeton, and Yale Streets are primarily multi-family homes with more limited access to off-street parking and therefore have an increased reliance on street parking. Staff recommends amending the preferential parking regulations to 2-hour parking 9AM-6PM, No parking 6PM-9AM daily, except by permit. This aligns with the neighborhood preferential parking regulations implemented on the adjacent streets including:1200-1300 blocks of Stanford, Berkeley, and Franklin Streets.

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Current parking regulations:

Alternatives
City Council could maintain the existing regulations or adopt different hours and types of regulations than the staff recommendation.

Next Steps
If Council approves the recommended action, regulations would be implemented on Harvard Street between Washington Avenue and Wilshire Boulevard and Harvard and Princeton Streets between Wilshire Boulevard and Arizona Avenue within 12 weeks.

This time period allows for signs to be ordered, manufactured, and installed, as well as a grace period between the installation of signs and enforcement of the amended preferential parking regulations.

Regulations on Yale Street between Wilshire Boulevard and Arizona Avenue would be pre-approved until such time that the residents submit a qualifying petition to change the existing regulations.

Environmental Review
The preferential parking modifications are categorically exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) “where it can be seen with certainty that there is

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no possibility that the activity in question may have a significant effect on the environment.” The proposed changes to the preferential parking of Zones QQ and YY consists of programmatic changes and would not result in a physical environmental effect on the environment.

In addition, Section 15302 exempts Class 1 projects from CEQA, which include the “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures [or] facilities, including streets, sidewalks, bicycle and pedestrian trails, and similar facilities.” The project consists of transitioning from a one set of preferential parking regulations to another. The transition is a programmatic change and would not necessitate the construction of new vehicle travel lanes for operation. Therefore, the preferential parking changes in Zones QQ and YY qualify as a Class 1 exemption.

Financial Impacts & Budget Actions
The amendment of Zones QQ and YY would not generate any additional revenue as residents on the blocks are already eligible to purchase preferential parking permits.

The costs to purchase and install new signage for the amended zones is nominal and would be covered within the Department of Transportation’s FY 2023-24 budget.

Prepared By: Barbara Jacobson, Transportation Planning Associate Approved Forwarded to Council
Attachments:

A. Draft Reso Zones QQ & YY
B. July 28, 2020 Staff Report
C. Neigbhorhood Context Current Preferential Parking Regulations Map D. Proposed Preferential Parking Regulations Map

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E. Written Comments

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1 City Council Meeting: September 26, 2023 Santa Monica, California RESOLUTION NUMBER _______
(CCS)
(City Council Series)

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

AMENDING THE REGULATIONS FOR PREFERENTIAL PARKING ZONES QQ AND YY
WHEREAS, the preferred parking requirements established in Santa Monica Municipal Code Section 3.08 are intended to regulate and manage traffic and parking circulation; and
WHEREAS, the City of Santa Monica ("City") received and verified petitions requesting amendments of the regulations for designated areas within the City's preferential parking zones QQ and YY; and
WHEREAS, the petitions were signed by residents living in two-thirds (67%) of the dwelling units comprising not less than fifty percent (50%) of the developed frontage of the designated areas within preferential parking zones QQ and YY; and WHEREAS, upon receiving and verifying the petitions, the City's Department of Transportation undertook such studies and surveys as it deemed necessary to determine that the regulations for the designated areas within the preferential parking zones should, in accordance with the requests set forth in the petitions, be amended as described below.

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Packet Pg. 1889 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council hereby finds that the proposed area meets the designation criteria set forth in Santa Monica Municipal Code Section 3.08.040.

SECTION 2. The City Council hereby amends the regulations for Preferential Parking Zone QQ. The regulations for Preferential Parking Zone QQ shall be as follows:

No vehicle shall be parked adjacent to any curb for no more than 2 hours between the hours of 9 a.m. and 10 p.m., daily except by permit, on streets included within the following named and described area:

1. The area of Harvard Street bounded by Washington Avenue and Wilshire Boulevard.

SECTION 3. The City Council hereby amends the regulations for Preferential Parking Zone YY. The regulations for Preferential Parking Zone YY shall be as follows:

No vehicle shall be parked adjacent to any curb for no more than 2 hours between the hours of 9AM-6PM and no parking 6PM-9AM daily, except by permit, on the following streets:

1. Princeton, Harvard, and Yale streets between Arizona Avenue and Wilshire Boulevard
SECTION 4. Vehicles displaying valid residential parking permits for the proper zone shall be exempt from posted preferential parking regulations in Preferential Parking Zone QQ and Zone YY.

SECTION 5. Exhibit A to this Resolution, attached hereto and incorporated

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Packet Pg. 1890 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 3 herein by reference, hereby delineates all preferential parking zones established in the City, including, but not limited to Zone QQ and Zone YY.

SECTION 6. If there are any inconsistencies between the provisions adopted in this Resolution and any adopted prior resolution, the provisions of this Resolution shall take precedence.

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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Packet Pg. 1891 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 1 Exhibit A
Preferential Parking Zones
Zone A [Ord. No. 1296CCS, adopted 1/24/84]
No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 6 p.m. daily, except by permit on the following street:

1. Vicente Terrace (north side only) between Ocean Avenue and Appian Way Zone B [Ord. No. 1404CCS, adopted 3/10/87]
No vehicle shall be parked adjacent to any curb, except by permit on the following streets:

1. Bicknell Avenue, Pacific Street and Strand Street between Neilson Way and Ocean Avenue

2. Hollister Avenue between Neilson Way and Ocean Avenue/Barnard Way

3. Ocean Park Boulevard (north side only), Fraser Avenue, Hart Avenue and Wadsworth Avenue between Neilson Way and
Barnard Way
Zone C [Ord. No. 1310CCS, adopted 8/14/84]
No vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 2 a.m. daily, except by permit on the following streets:

1. 2nd Street and 3rd Street between Ocean Park Boulevard and the south City limits

2. Beach Street between 2nd Street and 3rd Street

3. Ashland Avenue and Marine Street between Main Street and 3rd Street

4. Hill Street between Main Street and 4th Street
Zone D [Ord. 1324CCS, adopted 1/8/85; amended by Ord. No. 1371CCS, adopted 5/13/86]
No vehicle shall be parked adjacent to any curb between the hours of 12 a.m. and 2 a.m. and 9 p.m. and 12 a.m. Monday-Friday, all day on Saturday and Sunday or for more than 2 hours between the hours of 9 a.m. and 6 p.m.

Monday-Friday, except by permit on the following street:

1. Stanford Street between Wilshire Boulevard and Lipton Avenue Zone E [Ord. No. 1346CCS, adopted 11/26/85; amended by Reso. No. 9627, adopted 2/27/01; amended by Reso. No. 10746 (CCS), adopted 5/14/13]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. daily, and no vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 9 a.m. daily, except by permit on the following streets:

1. 21st Place, 22nd Street, 23rd Street, 24th Street and 25th Street between San Vicente Boulevard and Carlyle Avenue

2. 26th Street between Georgina Avenue/Brentwood Terrace and Marguerita Avenue/Baltic Street

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Packet Pg. 1892 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 2 3. Georgina Avenue and Carlyle Avenue between 21st Place and 26th Street Zone F [Ord. No. 1354CCS, adopted 1/14/86; amended by Reso. No. 11230, adopted 2/25/20]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 7 a.m. and 6 p.m. daily, except by permit on the following streets west of Lincoln Boulevard:

1. Copeland Court, Hill Street, Raymond Avenue, Ashland Avenue, Pier Avenue, and Marine Street between 7th Street and Lincoln Boulevard, and

2. Ruskin Street and Bentley Court between Marine Street and street end.

Zone G [Ord. No. 1359CCS, adopted 3/25/86; amended by Ord. No. 1903CCS Sec. 1, adopted 2/24/98; amended by Reso. No. 9870, adopted 6/24/03; amended by Reso No. 10398, adopted 6/9/09] No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 9 p.m. Monday-Saturday, except by permit on the following streets:

1. Lincoln Boulevard, 9th, 10th, 11th, 12th, Euclid, 14th, 15th, 16th and 17th Streets between Idaho and Alta Avenues,

2. Idaho Avenue between Lincoln Boulevard and 17th Street, and

3. Alta Avenue (south side only) between 9th and 17th Streets Zone H [Reference: Ord. No. 1469CCS, adopted 3/28/89; amended by Reso.

No. 9642, adopted 4/10/01]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. daily, except by permit on the following streets:

1. 31st, 32nd, 33rd and 34th Streets between Pearl Street and Ocean Park Boulevard

2. Pearl Street between 26th and 27th Streets

3. Pearl Street between 29th Street and Centinela Avenue No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. Monday-Friday, except by permit on the following street:

1. 30th Street between Pearl Street and Ocean Park Boulevard Zone I [Ord. No. 1360CCS, adopted 3/25/86; amended by Reso. No. 9544 adopted 7/25/00]
No vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 2 a.m. or for more than 2 hours between the hours of 9 a.m. and 6 p.m. daily, except by permit on the following streets:

1. 2nd and 3rd Streets between Ocean Park Boulevard and Strand Street

2. Strand Street, Hollister Avenue and Ocean Park Boulevard between Main Street and 3rd Street

3. Norman Place between Main Street and 2nd Street

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Packet Pg. 1893 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 3 4. Mills Street between 2nd Street and 3rd Street
Zone J [Ord. No. 1365CCS, adopted 4/22/86]
No vehicle shall be parked adjacent to any curb between the hours of 7 a.m. and 7 p.m. daily, except by permit on the following street:

1. 24th Street between Santa Monica Boulevard and Broadway Zone K [Ord. No. 1430CCS, adopted 4/11/89; amended by Ord. No. 1567CCS Sec. 1, adopted 2/26/91; amended by Reso. No. 9836, adopted 2/25/03; amended by Reso. No. 10413, adopted 6/23/09]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 8 p.m. Monday-Saturday, except by permit on the following streets:

1. 16th Street between California and Washington Avenues

2. 17th, 18th and 19th Streets between Wilshire Boulevard and Washington Avenue

3. California Avenue between 16th and 20th Streets

4. Washington Avenue between 17th and 20th Streets
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. daily, and no vehicle shall be parked between the hours of 6 p.m. and 2 a.m. daily, except by permit on the following streets:

1. California Avenue between 14th and 16th Streets

2. 14th, 15th and 16th Streets between Wilshire Boulevard and California Avenue
Zone L [Ord. No. 1444CCS, adopted 6/14/88; amended by Ord. No. 1603CCS Sec. 1, adopted 10/8/91; amended by Ord. No. 1871CCS Sec. 1, adopted 1/14/97; amended by Reso. No. 12463, adopted 12/7/99; amended by Reso. No. 9768, adopted 6/11/02; amended by Reso. No.11280, adopted 7/28/20]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 8 p.m. Monday- Thursday, and 8 a.m. and 5 p.m. Friday, except by permit on streets included within the following named and described area:

1. The area bounded by Ashland Avenue between 23rd and 11th Streets on the south; 11th Street between Ashland Avenue and Ocean Park Boulevard, Ocean Park Boulevard between 11th and 10th Streets, 10th Street between Ocean Park Boulevard and the Santa Monica Freeway on the west; the Santa Monica Freeway between 10th Street and Cloverfield Boulevard on the north; Cloverfield Boulevard between the Santa Monica Freeway and Ocean Park Boulevard, Ocean Park Boulevard between Cloverfield Boulevard and 23rd Street, 23rd Street between Ocean Park Boulevard and Ashland Avenue on the east.

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Packet Pg. 1894 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 4 Notwithstanding the above, no vehicle shall be parked adjacent to any curb for more than two hours between the hours of 8 a.m. and 6 p.m. Monday through Friday, except by permit on the following street:

1. Hill Street between 21st and 23rd streets
Zone M [Ord. No. 1546CCS, adopted 9/25/90]
No vehicle shall be parked adjacent to any curb between the hours of 10 p.m. and 2 a.m., or for more than 2 hours between the hours of 9 a.m. and 10 p.m. daily, except by permit on the following streets:

1. 3rd Street between Pico Boulevard and Strand Street

2. Bay and Pacific Streets between Neilson Way and 3rdStreet

3. Bicknell Avenue between Neilson Way and 4thStreet
Zone N [Ord. No. 1550CCS, adopted 10/9/90; amended by Reso. 10186, adopted 11/28/06]
No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 2 a.m. Monday- Saturday, and 3 p.m. and 2 a.m. Sunday, except by permit onthe following streets:

1. 14th, 15th, 16th, 17th, 18th and 19th Streets between Wilshire Boulevard and Santa Monica Boulevard

2. Arizona Avenue between 14th and 20th Streets
Zone O [Reso. No. 9836, adopted 2/25/03]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. Monday-Saturday, and no vehicle shall be parked for any time between the hours of 6 p.m. and 2 a.m. daily, except by permit on the following streets:

1. Lincoln Boulevard, 9th, 12th, and Euclid Streets between Wilshire Boulevard and California Avenue

2. California Avenue between Lincoln Boulevard and 14th Street No vehicle shall be parked adjacent to any curb for more than 2 hours from between the hours of 9 a.m. and 6 p.m. Monday-Saturday, and for more than 2 hours between 1 p.m. and 6 p.m. Sunday, and no vehicle shall be parked for any time between the hours of 6 p.m. and 2 a.m. daily, except by permit on the following streets:

1. 10th and 11th Streets between Wilshire Boulevard and California Avenue Zone P [Ord. No. 1474CCS, adopted 4/11/89]
No vehicle shall be parked adjacent to any curb, except by permit on the following street:

1. Barnard Way frontage road
The annual fee for each permit issued for Preferential Parking Zone P shall be $15.00 for the first permit and $100.00 for each additional permit, or such other fee as may be established from time to time by resolution of the City Council.

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Packet Pg. 1895 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 5 Zone Q [Ord. No. 1541CCS, adopted 9/11/90]
No vehicle shall be parked adjacent to any curb, except by permit on the following street:

1. 25th Street between Santa Monica Boulevard and Broadway Zone R [Ord. No. 1560CCS, adopted 1/8/91]
No vehicle shall be parked adjacent to any curb between the hours of 7 a.m. and 12 midnight daily, except by permit on the following named and described area:

1. The area bounded by 20th Street, Wilshire Boulevard, 26th Street and Broadway, excluding 24th and 25th Streets between Santa Monica Boulevard and Broadway, and excluding 26th Street.

Zone 5 [Reso. No. 10038, adopted 5/17/05]
No vehicle shall be parked adjacent to any curb between the hours of 7 a.m. and 6 p.m. Monday- Friday, except by permit on the following streets:

1. Franklin Street between Colorado and Nebraska Avenues

2. Berkeley Street between Colorado and Pennsylvania Avenues

3. Pennsylvania Avenue between Stanford Court and Centinela Avenue

4. Nebraska Avenue (north side only) between Berkeley Court and Centinela Avenue
Zone T [Ord. No. 1545CCS, adopted 10/2/90; amended 12/18/01 Reso. 9736CCS; amended 5/14/13 Reso. 10747 (CCS) (Includes UU, originally adopted 9/14/99 by Reso. No. 9438)]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 10 p.m. daily, except by permit on:

1. Exposition Boulevard, Delaware Avenue, and Virginia Avenue between Stewart Street and Centinela Avenue

2. Stewart Street, Yorkshire Avenue, Dorchester Avenue, and Warwick Avenue between Exposition Boulevard and Virginia Avenue

3. 34th Street between Exposition Boulevard and Delaware Avenue Zone U [Reso. No. 10246, adopted 9/11/07]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 7 a.m. and 6 p.m. Monday-Friday, except by permit on the following streets:

1. Bay Street between 4th and 6th Streets

2. 6th Street between Bay Street and Ocean Park Boulevards

3. 5th Street between Bay Street and Ocean Park Boulevard

4. 7th Street between Grant Street and Ocean Park Boulevard

5. Grant Street between Lincoln Boulevard and 6th Street

6. Pacific Street between Lincoln Boulevard and 4th Street

7. Strand Street between 6th and 7th Street

8. Kensington Road between 7th Street and Beverley Avenue

9. Hollister Avenue between Beverley and 4th Street

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Packet Pg. 1896 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 6 10. Beverley Avenue between Kensington Road and Ocean Park Boulevard No vehicle shall be parked adjacent to any curb between the hours of 7 a.m. and 6 p.m. Monday- Friday, except by permit on the following streets:

1. Bay Street between Lincoln Boulevard and 6th Street

2. 6th Street between Pico Boulevard to dead-end (eastern portion of 6th Street)
Zone V [Ord. No. 1592CCS Sec. 1, adopted 7/23/91; amended by Reso. 11230, adopted 2/25/20]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following streets:

1. Pine and Maple Streets between Lincoln Boulevard and 10th Street No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 7 a.m. and 6 p.m. daily, except by permit on the following streets:

1. Hill Street, Ashland Avenue, Wilson Place, and Pier Avenue between Lincoln Boulevard and 11th Street

2. Marine Street and Ozone Avenue between Lincoln Boulevard and Glenn Court

3. 10th Street between Ashland Avenue and street end

4. 11th Street between Ashland and Ozone avenues

5. Glenn Avenue between Ashland Avenue and Marine Street Zone W [Ord. No. 1593CCS Sec. 1, adopted 7/23/91; amended 10/10/00 Reso. No. 9587]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m., Monday-Friday, except by permit on the following streets:

1. 29th Street between Pearl Street and Ocean Park Boulevard

2. Pearl Street between 27th Street and 29th Street
No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 6 p.m., Monday- Friday, except by permit on the following street:

1. 28th Street between Pearl Street and Ocean Park Boulevard Zone X [Ord. No. 1594CCS Sec. 1, adopted 7/23/91; amended 5/27/08 Reso. No. 10296]
No vehicle shall be parked adjacent to any curb between the hours of 6 p.m. overnight until 9 a.m. daily or for more than 2 hours between the hours of 9 a.m. and 6 p.m. daily, except by permit on the following streets:

1. Stanford Street between Wilshire Boulevard and Santa Monica Boulevard

2. Berkeley Street between Wilshire Boulevard and Santa Monica Boulevard

3. Franklin Street between Wilshire Boulevard and Santa Monica Boulevard

4. Arizona Avenue between Yale Street and Centinela Avenue Zone Y [Reso. No. 10574CCS, adopted 4/26/11]

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Packet Pg. 1897 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 7 No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. Monday-Friday, except by permit on the streets within the following named and described area:

1. The area bounded by Ashland Avenue, 23rd Street, Dewey Street, and 16th Street, excluding Ashland Avenue.

Zone Z [Ord. No. 1640CCS Sec. 1, adopted 8/11/92]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following street:

1. Cedar Street between Lincoln Boulevard and 10th Street Zone AA [Ord. No. 1681CCS Sec. 1, adopted 6/1/93]
No vehicle shall be parked adjacent to any between the hours of 8 a.m. and 6 p.m. daily, except by permit within the following named and described area:

1. The area bounded by Kensington Road, 7th Street, Pine Street, and Lincoln Boulevard, excluding Lincoln Boulevard.

Zone BB [Ord. No. 1682CCS Sec. 1, adopted 6/1/93]
No vehicle shall be parked adjacent to any curb for more than 1 hour between the hours of 9 a.m. and 6 p.m. Monday-Friday, except by permit on the following street:

1. Yale Street between Wilshire Boulevard and Washington Avenue Zone CC [Ord. No. 10631CCS Sec. 1, adopted 11/8/11]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. Monday-Friday, except by permit on the following streets:

1. Ashland Avenue, Oak and Hill Streets between 23rd and 25th Streets

2. Pier Avenue between 23rd and Clover Streets
Zone DD [Ord. No. 1797CCS Sec. 1, adopted 4/25/95; amended 1/22/13 Reso. No. 10727(CCS); amended 7/25/17 Reso. No. (CCS)] No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following streets:

1. 24th (southern half of block), 25th and 26th Streets between Pico Boulevard and Pearl Street
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following street segment:

1. 24th Street (northern half of block) between Pico Boulevard and Pearl Street
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. Monday-Friday, except by permit on the following streets:

1. Pearl Street between Cloverfield Boulevard and 26th Street

2. 24th Street north of Ocean Park Boulevard to Grant School

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Packet Pg. 1898 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 8 3. 25th Street between Pearl Street and Ocean Park Boulevard No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 6 p.m. Monday-Friday, except by permit on the following street segment:

1. 26th Street between Pearl Street and Ocean Park Place North Zone EE [Ord. No. 1848CCS Sec. 1, adopted 5/14/96; amended 1/27/09 Reso. No. 10379]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following streets:

1. Navy and Ozone Streets between Longfellow and 7thStreets No vehicle shall be parked adjacent to any curb, except by permit on the following streets:

1. Navy and Ozone Streets between Longfellow Street and Lincoln Boulevard

2. Longfellow Street between Ozone and Marine Streets
Zone FF [Ord. No. 1849CCS Sec. 1, adopted 5/14/96]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 6 p.m. daily, except by permit on the following street:

1. Strand Street between Lincoln Boulevard and 7th Street Zone GG [Ord. No. 1850CCS Sec. 1, adopted 5/14/96; amended by Reso.

No. 10677(CCS), adopted 5/08/12]
No vehicle shall be parked adjacent to any curb, except by permit on the following streets:

1. 7th Street between Michigan Avenue and Pico Boulevard

2. Michigan Avenue between 7th Street and Lincoln Boulevard Zone HH [Ord. No. 1846CCS Sec. 1, adopted 3/26/96]
No vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 8 a.m. daily, except by permit on the streets within the following named and described area:

1. The area bounded by Adelaide Drive, 7th Street, San Vicente Boulevard and Ocean Avenue.

Zone II [Ord. No. 1908CCS Sec. 1, adopted 3/24/98]
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 12 a.m. midnight daily, except by permit on the streets within the following named and described area:

1. The area bounded by 26th Street, Santa Monica Boulevard, Yale Street and Colorado Avenue.

Zone JJ [Ord. No. 10884 CCS Sec. 1, adopted 6/9/15]
No vehicle shall be parked adjacent to any curb for more than 2 hours

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Packet Pg. 1899 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 9 between the hours of 9 a.m. and 9 p.m. daily, except by permit on the streets within the following named and described area:

1. Palisades Avenue between 4th Street and 7th Street

2. Alta Avenue between 4th Street and 7th Street

3. 7th Street between Alta Avenue and Montana Avenue
Zone KK [Ord. No. 1905CCS Sec. 1, adopted 3/24/98; amended by Reso. No. 9487, adopted 2/22/00; amended by Reso. No. 9798, adopted 9/10/02]
No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 9 p.m. Monday- Saturday, except by permit on the following streets:

1. 14th, 15th, 16th, 17th, 18th and 19th Streets between Santa Monica Boulevard and Colorado Avenue
Zone LL [Ord. No. 1904CCS Sec. 1, adopted 2/24/98; amended by Reso. No. 10104, adopted 1/10/06]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. Monday-Saturday, except by permit on the following streets:

1. Centinela Avenue, Franklin Street and Berkeley Street between Wilshire Boulevard and Lipton Avenue
Zone MM [Reso. No. 9751(CCS), adopted 3/5/02; amended by Reso. No. 9937, adopted 3/23/04; amended by Reso. No. 10677(CCS), adopted 5/8/12; amended by Reso. No. 10808(CCS), adopted 5/13/14] No vehicle shall be parked adjacent to any curb for more than two hours from 9 a.m. until 6 p.m. daily and no vehicle shall be parked adjacent to any curb from 6 p.m. until 9 a.m. daily, except by permit on the following streets:

1. Bay, Grant, Pacific, and Pearl Streets between Lincoln Boulevard and 10th Street

2. Michigan Avenue between Lincoln Boulevard and 10th Street

3. 9th Street between Pico Boulevard and the Santa Monica Freeway Zone NN [Reso. No. 10737(CCS), adopted 3/12/13]
No vehicle shall be parked adjacent to any curb for more than two hours from 9 a.m. until 6 p.m. daily, and no vehicle shall be parked adjacent to any curb from 6 p.m. until 2 a.m. daily, except by permit on the following streets:

1. Lincoln Boulevard, 9th, 10th, 11th, 12th, Euclid, and 14th Streets between Idaho and California Avenues

2. 15th Street between Idaho and Washington Avenues

3. Washington Avenue between Lincoln Boulevard and 16th Street No vehicle shall be parked adjacent to any curb for more than two hours between 9 a.m. and 10 p.m. daily, except by permit on the following streets:

1. Montana and Idaho Avenues between 17th and 20th Streets

2. Washington Avenue between 16th and 17th Streets

3. 16th and 17th Streets between Idaho and Washington Avenues

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Packet Pg. 1900 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 10 4. 18th and 19th Streets between Montana and Washington Avenues Zone 00 [Ord. No. 11099CCS, adopted 2/13/18]
No vehicle shall be parked adjacent to any curb for more than two hours between the hours of 9 a.m. and 6 p.m. daily, except by permit on the following street:

1. Centinela Avenue and Franklin Street between Lipton Avenue and Santa Monica northern Border

2. Berkeley Street between Lipton Avenue and Stanford Street

3. Stanford Street between Lipton Avenue and Montana Avenue

4. Yale Street, Harvard Street, and Princeton Street
between Washington Avenue and Montana Avenue

5. Lipton Avenue between Stanford Street and Centinela Avenue

6. Montana Avenue between 26th Street and Stanford Street Zone PP [Ord. No. 1913CCS Sec. 1, adopted 5/26/98)
No vehicle shall be parked adjacent to any curb between the hours of 8 a.m. and 9 p.m. daily, except by permit on the following street:

1. Stewart Street between Pico Boulevard and Kansas Avenue Zone QQ [Reso. No. 9332, adopted 10/27/98; amended by Reso. No.10846 (CSS), adopted 11/14/14);
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 6 p.m. Monday-Friday, except by permit on the following street:

1. Harvard Street between Wilshire Boulevard and Washington Avenue

2. Washington Avenue between Princeton and Harvard Streets No vehicle shall be parked adjacent to any curb for no more than 2 hours between the hours of 9 a.m. and 10 p.m. daily, except by permit, on the following Street:

1. Harvard Street between Wilshire Boulevard and Washington Avenue Zone RR [Reso. No. 11041, adopted 5/09/17)
No vehicle shall be parked adjacent to any curb in from 10 p.m. to 7 a.m. or for more than two hours from 7 a.m. until 10 p.m. daily, except by permit on the following streets:

1. 4th Street between Pico Boulevard and Ocean Park Boulevard, and

2. Strand Street, Pacific Street, and Bay Street between 3rd Street and 4th Street.

No vehicle shall be parked adjacent to any curb for more than two hours from 7 a.m. until 6 p.m. daily, except by permit on the following streets:

1. Strand Street between 4th Street and 6th Street.

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Packet Pg. 1901 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 11 Zone 55 [Reso. No. 11078, adopted 9/26/17)
No vehicle shall be parked adjacent to any curb in from 6 p.m. to 7 a.m. or for more than two hours from 7 a.m. until 6 p.m. daily, except by permit on the following streets:

1. Virginia Avenue between Cloverfield Boulevard and 27th Street,

2. Kansas Avenue between Cloverfield Boulevard and Stewart Street,

3. 27th Street between Virginia Avenue and Kansas Avenue,

4. Stewart Street between Kansas Avenue and the Santa Monica Freeway, and

5. Frank Street between Virginia and the Santa Monica Freeway.

Zone TT [Reso. No. 9434, adopted 8/17/99; amended by Reso. No. 9620, adopted 2/13/01; amended by Reso. No. 10041, adopted 6/14/05; amended by Reso. No. 10728(CCS), adopted 1/22/13; amended by Reso. No. 11280, adopted 7/28/20) No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 am and 10 pm daily, except by permit on the following streets:

1. 20th, 21st, 22nd, and 23rd streets between Wilshire Boulevard and Montana Avenue

2. 24th Street between Idaho and Washington avenues and between Wilshire Boulevard and California Avenue

3. Chelsea Avenue between Washington Avenue and Wilshire Boulevard

4. 25th Street between Montana and Idaho avenues and
between Wilshire Boulevard and California Avenue

5. 26th Street between Montana and Washington avenues

6. Montana and Idaho avenues between 20th and 26th streets

7. California and Washington avenues between 20th and 26th streets No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 am and 9 pm daily, except by permit on the following street:

1. 24th Street between California and Washington avenues No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 am and 6 pm daily, except by permit on the following street:

1. 25th Street between California and Washington avenues No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 am and 8 pm Monday through Saturday, except by permit on the following street:

1. 25th Street between Idaho and Washington avenues
Zone UU [Reso. No. 9768, adopted 6/11/02]
No vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 8 a.m. daily, except by permit on the following streets:

1. Ocean Avenue, 2nd, 3rd and 4th Streets between Wilshire

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Packet Pg. 1902 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 12 Boulevard and Montana Avenue

2. Montana, Idaho, Washington and California Avenues
between Ocean Avenue and 4th Street
Zone W [Reso. No. 9424CCS, adopted 7/20/99; amended by Reso. No. 10574CCS, adopted 4/26/11]
No vehicle shall be parked adjacent to any curb, except by permit on the following streets:

1. Franklin Street between Santa Monica Boulevard and Colorado Avenue

2. Broadway and Colorado Avenue between Centinela Avenue and Berkeley Street
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 5 p.m., Monday-Friday, and no vehicle shall be parked adjacent to any curb between the hours of 5 p.m. and 8 a.m. Monday-Friday, or anytime Saturday and Sunday, except by permit on the following streets:

1. Stanford and Berkeley Streets between Santa Monica
Boulevard and Colorado Avenue

2. Broadway or Colorado Avenue between Yale and Berkeley Streets Zone WW [Reso. No. 9464, adopted 12/14/99, effective 6/1/00; amended by Reso. No. 9654, adopted 4/10/01; amended by Reso. No. 9996, adopted 11/23/04]
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. Monday-Saturday, and no vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 8 a.m. daily, except by permit on the following streets:

1. 28th, 29th, 30th, 31st, 32nd, 33rd and 34th Streets between Pico Boulevard and Pearl Street

2. Dorchester and Yorkshire Avenues between Pico Boulevard and the Santa Monica Freeway

3. Urban Avenue between Pico Boulevard and Yorkshire Avenue

4. Kansas Avenue between Stewart Street and the Santa Monica Freeway No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. Monday-Saturday, except by permit on the following streets:

1. 27th Street between Pico Boulevard and Pearl Street
Zone XX [Reso. No. 9596, adopted 11/14/00]
No vehicle shall be parked adjacent to any curb between the hours of 7 a.m. and 2 a.m. daily, except by permit on the following streets:

1. 9th, 10th, 11th, 12th and Euclid Streets between Wilshire Boulevard and Colorado Avenue

2. Arizona Avenue between Lincoln Boulevard and 14th Street

14.A.a
Packet Pg. 1903 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 13 Vehicles displaying commercial parking permits shall be exempt from posted regulations from 9am to 6pm daily.

Zone YY [Reso. No. 9620, adopted 2/13/01; amended by Reso. No.10846 (CSS), adopted 11/14/14;
No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 9 a.m. and 10 p.m., daily, except by permit on the following streets:

1. 26th and Princeton Streets between Arizona Avenue and Washington Avenue

2. Harvard and Yale Streets between Arizona Avenue and Wilshire Boulevard

3. Washington Avenue between 26th and Princeton Streets

4. Washington Avenue between Harvard and Stanford Streets

5. Princeton Street between Wilshire Boulevard and Washington Avenue No vehicle shall be parked adjacent to any curb between the hours of 9 a.m. and 10 p.m., daily, except by permit on the following streets:

1. 26th, Princeton, Harvard, and Yale Streets between Santa Monica Boulevard and Arizona Avenue

2. Arizona Avenue between 26th and Yale Streets
No vehicle shall be parked adjacent to any curb for no more than 2 hours between the hours of 9 a.m.-6 p.m. and no parking 6 p.m.-9 a.m. daily, except by permit, on the following streets:

1. Princeton, Harvard, and Yale streets between Arizona Avenue and Wilshire Boulevard
Zone ZZ [Reso. No. 9703CCS, adopted 9/25/01; amended by Reso. No. 9768, adopted 6/11/02; amended by Reso. No. 10025, adopted 3/8/05] No vehicle shall be parked adjacent to any curb for more than 2 hours between the hours of 8 a.m. and 6 p.m. daily, and no vehicle shall be parked adjacent to any curb between the hours of 6 p.m. and 8 a.m. daily, except by permit on the following streets:

1. 5th, 6th and 7th Streets between Wilshire Boulevard and Montana Avenue

2. California and Montana Avenues between 4th and 7th Streets

3. Idaho and Washington Avenues between 4th Street and Lincoln Boulevard

14.A.a
Packet Pg. 1904 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 14 Adopted and approved this the 26th day of September 2023. ____________________________
Gleam Davis, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No._____ (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 26th day of September 2023,by the following vote:

AYES:

NOES:

ABSENT:

ATTEST: ______________________________
Denise Anderson-Warren, City Clerk

14.A.a
Packet Pg. 1905 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) 15 14.A.a
Packet Pg. 1906 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY)

14.A.a
Packet Pg. 1907 Attachment: Draft Reso Zones QQ & YY (5823 : Amendment of Preferential Parking Zones QQ and YY) City Council
Report
City Council Meeting: July 28, 2020
Agenda Item: 7.B
1 of 9
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and first reading of an ordinance amending Transportation Demand Management, Preferential Parking, Pedicabs and Bikeshare Recommended Action
Staff recommends that, to reflect recent operational changes effectuated by the budget and staffing impacts of the COVID-19 pandemic, the City Council:
(1) introduce for first reading the attached ordinance amending Chapter 3.08 Preferential Parking Zones, Chapter 3.20 Bikeshare, Chapter 6.50 Pedicabs, and Chapter 9.53 Transportation Demand Management; and,
(2) give direction to transition the Taxicab Franchise-based system to a permitbased system.

Summary
Changes to the Santa Monica Municipal Code (SMMC) and transportation procedures are necessary to align with restructuring of City services adopted by the Council to respond to the COVID-19 pandemic and its long-term economic impacts. Staff recommends adoption of the proposed ordinance to implement the most time-sensitive changes in the areas of Employer Trip Reduction, Preferential Parking, Pedicabs and Bikeshare programs, as follows:
• SMMC Chapter 9.53—Transportation Demand Management: suspend requirements, including the Emissions Reduction and Worksite Transportation plans, for employers of 49 people or fewer; suspend City rideshare program; and reduce Transportation Management Organization services; • SMMC Chapter 6.50—Pedicabs: eliminate the requirement for a local pedicab driver permit and operator permit; retain existing requirements for a business license, insurance, inspection decal, and pedicab driver and carriage requirements, and update SMMC to remain in compliance with State law;

14.A.b
Packet Pg. 1908 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 2 of 9
• SMMC Chapter 3.08—Preferential Parking Zones: suspend designation of new or amended preferential parking zones for a period of 4 years; continue to implement pre-approved zones and issue and renew permits in existing zones; • SMMC Chapter 3.20—Bikeshare: enable a commercial operator to run the City’s public bike share system in the public-right-of-way.

Staff also seeks direction on pursuing changes to SMMC Chapter 6.49—Taxicabs to transition the current franchise-based system to a permit-based system and pursue regional permitting options.

Background
On May 5, 2020, Council considered citywide restructuring necessitated by the economic fallout from the COVID-19 pandemic. This included reconsideration of staffing, program funding, and contractual obligations in order to address the projected budget shortfall. On June 9, 2020, Council considered a draft budget proposal that identified budget impacts on staff activities and services. On June 23, 2020, Council approved a citywide budget that established FY20/21 departmental budgets and finalized staffing and resource changes. The Santa Monica Municipal Code (SMMC) includes several transportation-related provisions that require changes to align with the adopted restructuring.

Discussion
On June 9, 2020, Council received details of how City services and programs are being restructured to respond to the COVID-19 pandemic and its long-term economic impact.

Citywide changes included operational, maintenance and permitting functions that eliminated internal functional capacity for street striping and signs, engineering, rideshare, neighborhood traffic calming and grant reporting due to the loss of 16 staff dedicated to these efforts. Some changes identified in the transportation services and programs require updates to relevant SMMC sections as identified in this report.

Redline changes to the code sections are provided in Attachment A, the proposed ordinance.

14.A.b
Packet Pg. 1909 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 3 of 9

1. Transportation Demand Management (TDM)
Changes to SMMC Chapter 9.53—Transportation Demand Management, internal rideshare program, and Transportation Management Organization services.

Santa Monica established its Transportation Demand Management Ordinance (TDM) in 1993, with the goals of proactively reducing congestion, reducing automobile dependence, improving air quality and enhancing transportation choices. It is modeled closely after Rule 2202 administered by the South Coast Air Quality Management District. The TDM Ordinance requires employers of a certain size to submit either a Worksite Transportation Plan or an Emission Reduction Plan. Contents of a Worksite Transportation Plan include estimations of transportation mode choices for staff, on-site information requirements, and a signed letter from management demonstrating commitment to reducing drive alone trips to and from the worksite. The Emission Reduction Plan, more robust in nature, requires an employer to survey employees about how they arrived and departed work over a 5-day period, calculate Average Vehicle Ridership (AVR), and reach a designated target AVR based on worksite location. Employers completing an Emission Reduction Plan who do not reach their AVR target either create a plan describing how over the course of the next year they will reduce the number of drive alone trips to the worksite or purchase mobile source emission reduction credits from a verified vendor. In past years, staff supported businesses through this program with annual commuter resources and non-auto commuting guidance, facilitating collaboration among businesses for carpool, vanpool and parking, and more recently some problem-solving for commuter and customer access needs following COVID-19.

City restructuring has impacted the ability to continue regulating this many employers and providing these additional support resources. In 2016, Santa Monica amended the TDM Ordinance by increasing AVR targets citywide and increasing the applicability of the greater requirements of the Emission Reduction Plan to business of 30 employees or more (instead of 50+). Staff is proposing to update SMMC Chapter 9.53 to return to pre-2016 thresholds that apply the ERP requirements only to employers with 50 or more employees. Additionally, staff is proposing to suspend Worksite Transportation Requirements entirely. The proposed updates would suspend these requirements until

14.A.b
Packet Pg. 1910 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 4 of 9
September 2024 or until restoration of program resources. The changes do not affect procedures for employers with 50 or more employees or developers.

As an employer, the City is subject to employee trip reduction requirements from AQMD, and as a facilities builder (such as City Hall East) is subject to local TDM requirements for developers. Restructuring reduces the capacity of our internal programs and includes the suspension of the City’s internal employee trip reduction program (in compliance with any requirements imposed by labor group MOUs) including incentives for transit, vanpool, carpool, etc. until resources are available. Additionally, restructuring resulted in a reduction of the Transportation Management Organization (TMO) contract from $250,000 to $195,000 for FY20/21, with half of the remaining contract funded by development agreement contributions. The TMO supports medium and large employers through the provision of transportation solutions, encouraging green commuting and teleworking, and improving worksite access.

2. Pedicabs
Changes to SMMC Chapter 6.50—Pedicabs, which eliminate the requirement for a local pedicab driver permit and operator permit. The changes retain requirements for a business license, insurance, inspection decal, and pedicab driver and carriage requirements in compliance with State law.

Santa Monica adopted pedicab regulations in 2013 which were informed by a year-long pilot program in 1998. Current SMMC regulations require a pedicab driver permit, operator permit, pedicab inspection decal, business license, and outline operating requirements such as minimum driver age, driver’s license, pedicab cleanliness and safe operations. Detailed Administrative Regulations were issued in 2013 to accompany Section 6.50. Local rules also require each driver to successfully complete a pedicab driver class. In 2015, the State established California Vehicle Code (CVC) Section 21215 regulating the safe operation of pedicabs and establishing insurance, annual incident reporting, routing and loading/unloading requirements.

14.A.b
Packet Pg. 1911 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 5 of 9
City restructuring has impacted the ability to continue the local permitting of drivers and operators. CVC 21215 has filled the prior gap in safety provisions and operating expectations, but still requires local agencies to inspect pedicabs annually. Staff is proposing to update the SMMC to retain language regarding pedicab vehicle equipment standards and driver qualifications, update to align with State regulations, and to continue requiring annual inspections for a fee. The proposed update would eliminate the requirement for local permitting and classes until there is a restoration of resources for this program.

The Business License Unit would continue business license processing and insurance verification, pedicab rules would be enforced by Code Enforcement staff, and “rules of the road” would be enforced by the Police Department as they do today.

3. Taxicabs
Direction to pursue changes to SMMC Chapter 6.49—Taxicabs to transition the current Franchise program to a permit program and seek regional permitting options.

Santa Monica has the authority to regulate for-hire vehicles within the city. In June 2009, Council adopted an ordinance establishing a franchise-based system for the regulation of taxicabs. The franchise was initially established to address an oversupply of taxis in the market and operating standards. In November 2010, Council approved franchise agreements with five companies, which operated with extensions for approximately eight years. In 2018, Council approved simplified taxicab permitting in compliance with California State law (AB1069) and approved a franchise with one company that is substantially located in Santa Monica: TMAT Corp., dba. Taxi! Taxi!.

AB1069 was passed in response to the market challenges created by Transportation Network Companies (TNCs, such as Uber and Lyft), and reduced local regulation to those taxicab companies which are “substantially located” in the jurisdiction. AB1069 also enables a regional or other agency to perform the permitting function on behalf of local agencies. Staff has been in regular communication with cities throughout the region to explore regional permitting function and best practices for local regulation.

14.A.b
Packet Pg. 1912 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 6 of 9
Some cities are transitioning their franchise systems to permit systems including the City of Los Angeles. Franchise systems are time consuming to create, and once created are closed to new providers and are difficult to update. The permit system would allow for more flexibility and openness to new customer services, while still enabling requirements for accessibility, fare maximums and other core benefits of the franchise system. A permit system does eliminate a franchise holder’s right to a market area, but this exclusivity was already undone by recent state law that allowed any company to serve a “pre-arranged” trip in the city. Once Los Angeles’ permitting system is operational, they may be able to facilitate permitting on our behalf through a Memorandum of Understanding or other agreement.

In light of Santa Monica’s restructuring that resulted in the elimination of staff resources for this program, and the changing market dynamics of taxicab services which has eliminated the concern regarding oversupply, staff recommends that Santa Monica move toward a regional permitting solution, and initiate those steps in coordination with the local franchise company. The current franchise agreement with Taxi! Taxi! has a termination date of December 31, 2023 or earlier at the discretion of the City. A regional permit system does not yet exist, and as one becomes available staff would pursue it in coordination with Taxi! Taxi! This does not preclude the City from establishing a local permitting solution for taxicabs and similar transportation providers with a future restoration.

4. Residential Preferential Parking Program
Changes to SMMC Chapter 3.08—Preferential Parking Zones to suspend designation of new or amended preferential parking zones for a period of four years, or until restoration of staff resources. These changes do not affect the ability to obtain and renew permits in existing zones or the implementation of pre-approved zones.

Currently, the City’s residential streets are largely blanketed by residential preferential parking zones that are already implemented or pre-approved. City staff answer hundreds of calls and emails each year regarding changes to preferential parking, collect parking occupancy data, assist with resident notifications, host community

14.A.b
Packet Pg. 1913 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 7 of 9
meetings, and prepare analyses to support amendments to the preferential parking program. Restructuring has eliminated staff resources to process changes to the preferential parking program, requiring the suspension of new or amended residential preferential parking zones for an estimated period of four years (until September 2024) or until restoration of the program. Zones that have been pre-approved by Council and in which residents are able to independently collect the required signatures will continue to be implemented during this period. Suspend interdepartmental coordination toward implementation of the unbundled parking Section 9.28.110.A.1 which will result in the continued ability of residents of new mixed-use projects in commercial zones to have access to preferential parking district permits.

This change would be incorporated into SMMC 3.08.080:

3.08.080 – Suspension on the designation of new or amendment of existing zones. No new zones will be designated, nor any existing zones amended, during the period of September 24, 2020 through September 24, 2024. Zones that have been preapproved will continue to be implemented during this period, and qualified petitions received by September 24, 2020 will be processed.

Applications received before the effective date of the ordinance amendment would also continue to be processed including:
• Petitions to reduce existing restrictions on Hill Street between 21st and 23rd streets and 25th Street between Idaho and Washington avenues • Petitions to amend existing regulations from blocks in the vicinity of Harvard Street and Wilshire Boulevard, including but not limited to: Harvard Street between Washington and Arizona avenues and Princeton Street between Wilshire Boulevard and Arizona Avenue
• Application for California Coastal Commission approval of the expansion of Zone F, which Council approved on February 25, 2020

14.A.b
Packet Pg. 1914 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 8 of 9

5. Bikeshare
Changes to SMMC Chapter 3.20 which enables public bike share other than the City’s designated operator.

SMMC Chapter 3.20 was adopted just prior to the introduction of the City’s Breeze bike share system in 2015. This section created enabling language for a public bike share system operated by the City to function in the public right-of-way. As part of direction to continue piloting shared mobility services, Council directed staff to investigate options for public bike share that could deliver the affordability, reliability, equity and outreach elements of the Breeze program but be operated by a private commercial entity. Staff recently released a request for information regarding the potential for a private operator to achieve these public outcomes. This minor update to Chapter 3.20 would enable a private commercial entity to operate a public bike share system in the public right-ofway, that meets the aforementioned criteria, should an operator be identified in the future.

Next Steps
Upon first reading, the amended ordinance will return to Council for a second reading/adoption and take effect 30 days after adoption. Affected businesses will be notified of the reduced or adjusted regulations as their permits and approvals come up for renewal. If directed to pursue a taxicab permit-based system, staff will work with the City Attorney’s office and regional agencies to define process, procedures, and timeline.

14.A.b
Packet Pg. 1915 Attachment: July 28, 2020 Staff Report (5823 : Amendment of Preferential Parking Zones QQ and YY) 9 of 9
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended actions. The financial impacts were previously discussed during the May 5, May 26, and June 23, 2020 Council budget sessions and included in the FY 2020-21 Adopted Budget.

Prepared by: Francie Stefan, Assistant Director/Chief Mobility Officer Attachments
A. Ordinance amending SMMC Chapters 3.08 Preferential Parking, 3.20 Bikeshare,

6.50 Pedicabs, and 9.53 Transportation Demand Management Prepared By: Francie Stefan, Assistant Director/Chief Mobility Officer Approved Forwarded to Council
Attachments:

A. Proposed Ordinance

14.A.b
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2-Hour Parking 9AM to 10PM DAILY
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SEPT 2023
No Parking 9AM-10PM DAILY
*EXCEPT BY PERMIT

14.A.c
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14.A.d
Packet Pg. 1918 Attachment: Proposed Preferential Parking Regulations Map (5823 : Amendment of Preferential Parking Zones QQ and YY) 1 Vernice Hankins
From: Stacey Abarbanel <[email protected]>
Sent: Thursday, September 21, 2023 7:46 PM
To: councilmtgitems; Gleam Davis; Phil Brock; Christine Parra; Lana Negrete; Jesse Zwick; Caroline Torosis; Oscar de la Torre
Subject: Proposed parking permit changes Harvard Street

EXTERNAL
Dear Council:

I urge you to leave the current parking regulations on Harvard between Washington and Wilshire AS IS. Attached is a photo I just took in front of my home at 1039 Harvard Street at 7:40 p.m. on Thursday, September 21. Does it look like we need to extend 2‐hour parking regulations until 10 pm? This is what our block looks like on nights and weekends. The few cars you see belong to residents. There is no need to extend 2‐hour parking into the evenings and on weekends; it will only make it harder for guests to visit easily. Before voting, please come to Harvard Street north of Wilshire on nights and weekends to see for yourself that this change is unnecessary.

It may be that people who live close to Wilshire have a greater concern, but that’s what comes from living close to a major thoroughfare. Enacting changes unneeded by most residents, especially in the haphazard way the city implements them with a different parking rule on every block, is an unnecessary mess that does nothing more than push problems to other blocks. My friends in Sunset Park who live near the college say no one enforces nighttime parking regulations anyway. What’s the point?
Until you have a comprehensive plan for the whole neighborhood, please leave Harvard Street parking north of Wilshire as is. Don’t kowtow to exclusionary residents who want to essentially privatize our street.

Thank you,
Stacey Ravel Abarbanel
[email protected]
310/736‐5300
Item 14.A
09/26/23
1 of 3 Item 14.A
09/26/23

14.A.e
Packet Pg. 1919 Attachment: Written Comments (5823 : Amendment of Preferential Parking Zones QQ and YY) 2 Item 14.A
09/26/23
2 of 3 Item 14.A
09/26/23

14.A.e
Packet Pg. 1920 Attachment: Written Comments (5823 : Amendment of Preferential Parking Zones QQ and YY) 1 Vernice Hankins
From: Council Mailbox
Sent: Monday, September 25, 2023 8:52 AM
To: councilmtgitems
Subject: Fw: Agenda item 14A I support but read on.

From: Ellen Hannan <[email protected]>
Sent: Friday, September 22, 2023 9:01 AM
To: Council Mailbox <[email protected]>; David White <[email protected]>; David Martin <[email protected]>; Andrew Hoyer <[email protected]>; Santa Monica Mid City Neighbors <[email protected]>
Subject: Agenda item 14A I support but read on.

EXTERNAL
Dear Community Leaders:

I was parked on the west side of Harvard in the YY zone yesterday.  It was the correct side of the street for street cleaning.  At 12:45 when the the sweeper arrived there were 15 cars on the east  side of the street.  Probably from Ewon's patrons.  The street was not clean due to the cars blocking the truck..

The driver was delayed by the parking enforcement who was writing tickets for the 15 cars.  The sweeper sat and blocked the street with the motor running.

I support the change to the preferential zone but better signage is needed for cleaning days.

Ellen Hannan
1218 9th St #6
Santa Monica CA 90401
Item 14.A
09/26/23
3 of 3 Item 14.A
09/26/23

14.A.e
Packet Pg. 1921 Attachment: Written Comments (5823 : Amendment of Preferential Parking Zones QQ and YY) City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 16.A
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Recommendation to accept Jonathan Kaplan's resignation from the Landmarks Commission and authorize the City Clerk to publish the vacancy.

Prepared By: Xavier Mota, Staff Assistant III
Approved Forwarded to Council
Attachments:

A. Kaplan Landmarks Commission Resignation Letter

16.A
Packet Pg. 1922
Jonathan Kaplan
2045 4th Street, Unit 105B
Santa Monica, CA 90405
September 11, 2023
I am writing to inform you that I will be moving out of the City of Santa Monica and will therefore need to step down from my position on the Santa Monica Landmarks Commission. The moving date has not been set but will likely occur within the next several months. Until that date, I will still be able to serve. I will notify Stephanie Reich as soon as I know the date.

Thank you,
Jonathan Kaplan

16.A.a
Packet Pg. 1923 Attachment: Kaplan Landmarks Commission Resignation Letter (6003 : Resignation: J.Kaplan (2 Mins.))