Santa Monica City Council
December 12, 2023

City of Santa Monica
City Council Meeting
AGENDA

GLEAM DAVIS
MAYOR

PHIL BROCK LANA NEGRETE

COUNCILMEMBER MAYOR PRO TEM

CHRISTINE PARRA CAROLINE TOROSIS

COUNCILMEMBER COUNCILMEMBER

JESSE ZWICK OSCAR DE LA TORRE

COUNCILMEMBER COUNCILMEMBER

DAVID WHITE

CITY MANAGER

DOUGLAS SLOAN

CITY ATTORNEY

DENISE ANDERSON-WARREN

CITY CLERK

STANDARDS OF BEHAVIOR THAT PROMOTE CIVILITY AT ALL PUBLIC MEETINGS:
• Treat everyone courteously; • Give open-minded consideration to all viewpoints; • Listen to others respectfully • Focus on the issues and avoid personalizing debate; • Exercise self-control • Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions
Regular meetings are broadcast live on CityTV cable channel 16 and on the internet at santamonica.gov. Cable television re-broadcasts air on Thursday and Saturday at 11:30 AM. The agenda will air on CityTV on Saturday and Sunday at 11:00 AM and 6:00 PM, and on Monday and Tuesday at 12:30 PM and 6:00 PM.

City of Santa Monica Generated: 12/13/2023 9:19 AM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11547(CCS))

WAYS TO PROVIDE PUBLIC COMMENT
If you are interested in providing public comment at a City Council meeting, there are several ways to participate:
(1) Written public comment. In lieu of oral public comment, the public is strongly encouraged to submit written public comment on agenda items via email to [email protected]. Written public comment submitted before 12:00 pm on the day of the meeting will be available for online viewing. Please note the agenda item number in the subject line of your written comments. (2) Oral public comment. Persons wishing to address the City Council regarding items on the agenda must be present and submit their name and address (optional) to the City Clerk before the public comment section is opened for that item or before the public hearing is opened where one is required by law. Register to speak at the Speaker Kiosk prior to the meeting. Remarks from the public are limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes and a minimum of one minute per item. Except for the author of the request, public comment on 15-items are limited to 1 minute. Except on Public Input, speakers appearing at the meeting in person, may donate 2 minutes to another person present in-person at the meeting, who may speak for a total of 4 minutes on that item.

Both the donor of time and the designated speaker must register at the Speaker Kiosk in person together.

Oral public comment from any one individual is limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes per agenda item; under some circumstances, Council may change the maximum to 1 minute per agenda item.

ORDER OF BUSINESS (may not be changed except by majority vote of the City Council.)

1. General Public Input
(members of the public may address the City Council
only on items not on the agenda, but within the
subject matter jurisdiction of the City).

2. Public Comment for Closed Session, Special
Agenda, and Consent Calendar Items Only
(Commendations and Proclamations presented).

3. Closed Session.

4. Special Agenda Items (City Manager’s Report,
Presentations, etc.).

5. Consent Calendar (All items considered in one
motion unless removed by a City Councilmember for
discussion. Public comment shall be heard prior
to City Council discussion).

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

10. Ordinances:
• 1
st Reading
• 2
nd Reading

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

15. Written Communications (other than
Reports of Commission and Officers).

16. Councilmember Discussion Items.

Agendas and reports are accessible on the City's webpage at smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

City of Santa Monica Generated: 12/13/2023 9:19 AM Page 3

AGENDAS

CITY OF SANTA MONICA

REGULAR AND SPECIAL JOINT MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
TUESDAY, DECEMBER 12, 2023
MEETING BEGINS AT 5:30 PM
HOW TO PROVIDE WRITTEN PUBLIC COMMENT:

Written public comment can be submitted via email to [email protected].

Written comments received prior to 12:00 pm on the day of the meeting will be available online. Please note the agenda item number in the subject line of your written comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

1. PUBLIC INPUT
(Public comment is permitted only on items not on the agenda that are within the subject matter jurisdiction of the City. State law prohibits the City Council from taking any action on items not listed on the agenda, including issues raised under this agenda item.)

1.A. Written Comments

2. PUBLIC INPUT (AGENDA ITEMS UNDER CLOSED SESSION, SPECIAL AGENDA

ITEMS, CONSENT CALENDAR ONLY)

3. SPECIAL AGENDA ITEMS

3.A. Commendation: City Clerk Denise Anderson-Warren

3.B. Recognition of outgoing Mayor Gleam Davis and installation of new Mayor Phil Brock

3.C. City Manager Report - Santa Monica Public Library Annual Report

4. CLOSED SESSIONS

4.A. Conference with Labor Negotiator: Government Code Section 54957.6 -- Agency Designated Representatives: Acting Director of Human Resources City of Santa Monica Generated: 12/13/2023 9:19 AM Page 4 Oles Gordeev and Human Resources Manager Robert Scalise; Bargaining Unit: Coalition of Santa Monica City Employees. - New Item Received. 12/8/2023
The following is the order of business for items to be heard no earlier than 7:00 p.m.

5. CONSENT CALENDAR
(All items will be considered and approved in one motion unless removed by a Councilmember for discussion. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents. No public discussion is permitted on ordinances for second reading and adoption.)

5.A. Adoption of a Resolution Amending the Policies for Board and Commission Recommended Action
Staff recommends that the City Council:

1. Adopt a resolution amending the Policies for City Boards, Commissions, Committees, Task Forces, and Regional Advisory Boards, and repealing Resolution No. 11510 (CCS) to include language concerning term limits of chairs/vice chairs as approved by Council on July 27, 2021, and to revise the method for boards and commissions to provide their annual reports and workplans to Council; and

2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

5.B. Annual Reporting of Development Impact Fees and Adoption of Transportation Impact Fee Resolution
Recommended Action
Staff recommends that the City Council:

1. Review and accept the FY 2022-23 Annual Reporting of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and the FY 2022-23 Child Care Linkage Fee Report per SMMC Chapter 9.65;

2. Approve and adopt the proposed resolution making the necessary five-year findings for the Transportation Impact Fee; and

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

5.C. Award RFP and enter into Agreement with Lance Soll & Lunghard LLP for Professional Auditing Services
Recommended Action
Staff recommends that the City Council:

1. Award RFP# 377 to Lance Soll & Lunghard LLP, a California-based company for professional external auditing services; and City of Santa Monica Generated: 12/13/2023 9:19 AM Page 5

2. Authorize the City Manager to negotiate and execute a three-year agreement with a two-year option with Lance Soll & Lunghard LLP, for a total amount not to exceed $958,936 over a five-year period, with future year funding contingent on Council budget approval. Costs for the first year of the agreement will not exceed $180,620; each year thereafter contains an annual increase of 3%.

5.D. Approval of Second Modification to MRI Software Contract to Administer Housing Voucher Programs
Recommended Action
Staff recommends that the City Council:

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

2. Authorize the City Manager to negotiate and execute a second modification to agreement #10786 in the amount of $385,013 with MRI Software, LLC, for software licensing, software maintenance, technical support services, as well as criminal background check services for the Housing Authority. This will result in a ten-year amended agreement with a new total amount not to exceed $705,341 (including a $20,000 contingency) with future year funding contingent on Council budget approval.

5.E. Award RFP and Enter into Agreements with GCAP Services, Inc. and GAFCON for Prevailing Wage and Certified Payroll Monitoring Services Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 366 to GCAP Services, Inc. as the primary consultant, and GAFCON, Inc. as the secondary consultant, to provide prevailing wage and certified payroll monitoring services for public works projects for all City Departments.

3. Authorize the City Manager to negotiate and execute an agreement with GCAP Services Inc., in an amount not to exceed $1,632,306, (including a $148,391 contingency) (for five years and rate increases of 5% in years 3, 4, and 5) for a total amount not to exceed $1,632,306 over a 5-year period with future year funding contingent on Council budget approval.

4. Authorize the City Manager to negotiate and execute an agreement with GAFCON, Inc., in an amount not to exceed $1,396,356 (including a $126,941 contingency) (for five years and rate increases of 3% in years 2,3,4, and 5) for a total amount not to exceed $1,396,356 over a 5-year period with future year funding contingent on Council budget approval.

5.F. Authorize the City Manager to Enter into a License Agreement with Cirque du Soleil
Recommended Action
City of Santa Monica Generated: 12/13/2023 9:19 AM Page 6 Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities), Section 15304 (Minor Alterations to Land), and Section 15323 (Class 23 Normal Operations of Facilities for Public Gatherings) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Authorize the City Manager to negotiate and execute a license agreement with Cirque du Soleil to use a portion of Lot 1N from October 1, 2024 to January 24, 2025.

5.G. Award Contract for Banking Services to JPMorgan Chase Recommended Action
Staff recommends that the City Council:

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

2. Award RFP #360 to JPMorgan Chase Bank, N.A. to provide banking services for the Finance Department.

3. Authorize the Director of Finance/City Treasurer to negotiate and execute an agreement with JPMorgan Chase Bank, N.A. in an estimated amount of $800,000 for eight years, with future year funding contingent on Council budget approval.

5.H. Award a Design/Build Agreement with Landscape Structures, Inc. for the Douglas Park Playground Reconstruction Project
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 and 15302 of the California Environmental Quality Act (CEQA) Guidelines.

2. Authorize the City Manager to negotiate and execute an agreement with Landscape Structures, Inc. for the design, purchase of equipment, and installation of an inclusive playground at Douglas Park for the Public Works Department. This recommended award is made as an exception to the competitive bidding process, pursuant to Santa Monica Municipal Code (SMMC) Section 2.24.250(c) and is for an amount not to exceed $1,900,000 (including a 10% contingency) for two years with a one-year renewal option.

5.I. Award Contract for Managing Advertising Program in City Owned Parking Structures
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15301 and Section 15311 of the California Environmental Quality Act (CEQA) Guidelines;

2. Award RFP# 375 to BIG Outdoor, for sales, administration, and installation and maintenance of advertising in City-owned parking structures for the Department of Transportation; and
City of Santa Monica Generated: 12/13/2023 9:19 AM Page 7

3. Authorize the City Manager to negotiate and execute an agreement with BIG Outdoor for sales, administration, and installation and maintenance of advertising in City-owned parking structures over a five-year period, with two one-year renewal options, with guaranteed minimum revenue of $90,000 dollars in year one, and an increase of 2% per year thereafter.

5.J. Accept Bid with vCloud Tech for Proofpoint Cybersecurity Software Licenses Recommended Action
Staff Recommends that the City Council

1. Award Bid #4471 to vCloud Tech to provide Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services as required by the Information Services Department;

2. Authorize the Procurement Manager to issue a purchase order with vCloud Tech for Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services in the amount not to exceed $506,826 for an initial two-year term, with one additional one-year renewal option to extend on the same terms and conditions for a total amount not to exceed $799,918, with future year funding contingent on Council budget approval; and

3. Adopt a finding of Categorical Exemption pursuant to Section 15061(d)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

5.K. Authorization to Accept the 2023 Justice Assistance Grant for implementation of the JAG Project to Impact Crime and Keep Neighborhoods Safe Recommended Action
Staff recommends that the City Council:

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

2. Authorize the City Manager to accept a grant award in the amount $55,117 from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant for implementation of the JAG 2023 Project to Impact Crime and Keep Neighborhoods Safe in the Police Department, and to accept all grant renewals;

3. Authorize the City Manager to execute all necessary documents to accept the grant; and

4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of the report.

5.L. Award Construction Contract to RAMCO for the 7th Street Fencing Upgrade and Activation Project
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), Section 15302 (Replacement/Reconstruction), Section 15304 City of Santa Monica Generated: 12/13/2023 9:19 AM Page 8 (Minor Alterations to Land), and Section 15311 (Accessory Structures) of the California Environmental Quality Act (CEQA) Guidelines.

2. Award Bid #SP2577 to RAMCO General Engineering Contractor for construction services for the 7th Street Fencing Upgrade and Activation Project for the Department of Transportation.

3. Authorize the City Manager to negotiate and execute a contract with RAMCO General Engineering Contractor in an amount not to exceed $1,985,000 (including a $250,000 contingency).

4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.

5. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.

5.M. Approval of Second Modification of Agreement #11338 with Flying Lion for Drone as a First Responder Program
Recommended Action
Staff recommends that the City Council:

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

2. Authorize the City Manager to negotiate and execute a second modification to agreement #11338 in the amount of $1,200,000 with Flying Lion Incorporated (FLI) to provide air support services for the Police Department. This will result in a 5-year amended agreement with a new total amount not to exceed $1,381,000, with future year funding contingent on council budget approval.

5.N. Second Reading and Adoption of an Ordinance of the City Council of the City of Santa Monica Amending Santa Monica Municipal Code Chapter 4.04.390 Pertaining to the Feeding of Birds and Other Animals in the City Public Right of Way
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance. . SPECIAL JOINT MEETING OF THE REDEVELOPMENT SUCCESSOR AGENCY . ROLL CALL

5.O. Annual Report on Low-Mod Housing Income Asset Fund Recommended Action
Staff recommends that the City Council and Redevelopment Successor Agency:

1. Receive the Annual Report on the Low- and Moderate-Income Housing Asset Fund for Fiscal Year 2022-23 and authorize the City Manager to post the report on the City's website by December 31, 2023;

2. Direct the City Manager to present the independent audit of the Low- and Moderate-Income Housing Asset Fund to the Council upon completion of the independent audit of the City’s Annual Comprehensive Financial City of Santa Monica Generated: 12/13/2023 9:19 AM Page 9 Report (ACFR) and authorize the City Manager to post the results of the audit on the City's website after presentation to City Council; and

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

5.P. Approval of Annual Recognized Obligation Payment Schedule (ROPS) Recommended Action
Staff recommends that the Redevelopment Successor Agency:

1. Adopt resolutions approving the Agency’s recognized obligation payment schedule and administrative budget for July 1, 2024 through June 30, 2025.

2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines. . ADJOURNMENT OF SPECIAL JOINT MEETING

5.Q. City Council - Special Meeting - Aug 22, 2023 5:31 PM - New Item Received. 12/8/2023

5.R. City Council - Regular and Special Meeting - Nov 28, 2023 5:30 PM - New Item Received. 12/8/2023

5.S. City Council - Special Meeting - Nov 28, 2023 5:35 PM - New Item Received. 12/8/2023

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS

7. STUDY SESSION
No items

8. CONTINUED ITEMS
No items

9. ADMINISTRATIVE PROCEEDINGS
No items

10. ORDINANCES
(Public comment is permitted on ordinances for introduction and first reading. No public discussion is permitted on ordinances for second reading and adoption. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents.)

10.A. Introduction and First Reading of an Ordinance Amending Santa Monica Municipal Code (SMMC) Section 4.85.020 Related to Lobbyist Registration and Reporting Requirements
City of Santa Monica Generated: 12/13/2023 9:19 AM Page 10 Recommended Action
Staff recommends that the City Council:

1. Introduce for first reading the attached ordinance to amend Section 4.85.020 requiring lobbyists to file lobbyist forms using the City’s new electronic lobbyist registration system, and

2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

10.B. Introduction and First Reading of an Interim Zoning Ordinance Extending Interim Zoning Regulations Adopted by Interim Zoning Ordinance 2764 (CCS) to Amend the Text of the Zoning Ordinance to: (1) Replace the Term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer”; (2) Remove Certain Requirements for Medicinal Cannabis Retailers for Consistency with State Law; and (3) Permit Medicinal Cannabis Retailers To Deliver, Cultivate, and Sell Adult-Use Cannabis or Adult-Use Cannabis Products to Persons 21 Years of Age and Over
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

2. Introduce for first reading an Interim Zoning Ordinance extending interim zoning regulations adopted by Interim Zoning Ordinance 2764 (CCS) amending the text of the Zoning Ordinance to replace the term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer”, to remove certain requirements for Medicinal Cannabis Retailers for consistency with State law, and to permit Medicinal Cannabis Retailers to sell adult-use cannabis or adult-use cannabis products to persons 21 years of age and over.

11. STAFF ADMINISTRATIVE ITEMS
No items

12. PUBLIC HEARINGS
No items

13. REPORTS OF BOARDS AND COMMISSIONS
No items

14. RESOLUTIONS
No items

15. WRITTEN COMMUNICATIONS OTHER THAN REPORTS OF COMMISSION AND

OFFICERS
City of Santa Monica Generated: 12/13/2023 9:19 AM Page 11 No items

16. COUNCILMEMBER DISCUSSION ITEMS

16.A. Request of Mayor Davis and Mayor Pro Tem Negrete that the City Manager should issue a public notice to solicit letters of interest for the revitalization of the Civic Auditorium. The City Manager is being asked to prepare a public notice that shall indicate that the City will maintain ownership of the Civic Auditorium and will consider entering into a long-term lease. In addition, the public notice should indicate that the City is seeking letters of interest from individuals and/or entities that have the experience to operate the facility as a thriving entertainment and cultural arts venue, experience working with projects with landmark restrictions and express intention to preserve the distinguishing historical landmark attributes of the facility, to the greatest extent possible, and has the demonstrated financial wherewithal to operate the facility without any financial contribution from the City. - New Item Received. 12/8/2023

16.B. Request of Councilmember Brock, Mayor Pro Tem Negrete and Councilmember de la Torre that the City Manager extend the amount of free parking offered by the City at its Downtown parking garages from 90 minutes to 3 hours from December 22 through December 24 to spur last minute holiday shopping as a gift to our residents and visitors. - New Item Received. 12/8/2023

ADJOURNMENT
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 2 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online.

City Hall and the Council Chamber are wheelchair accessible. If you require any special disability related accommodations to either attend or provide public testimony at a Council meeting (i.e. sign language interpreting, access to an amplified sound system, remote option, etc.), please contact the City Clerk’s Office at (310) 458-8211 or TDD: (310) 917- 6626 or via email at [email protected] at least 72 hours prior to the scheduled meeting. Best efforts shall be made to accommodate requests received after the 72-hour deadline. In the case of special meetings, requests should be submitted as early as possible, but no later than noon the day of the special Council meeting.

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

City of Santa Monica Generated: 12/13/2023 9:19 AM Page 12 Santa Monica Blue Bus Lines #2, #3, #5, #9 and the EXPO Line serve City Hall. Parking is available on Main Street, on Olympic Drive, and in the Civic Center Parking Structure (validation free).

City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 1.A
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Written Comments
Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:

A. Written Comments

1.A
Packet Pg. 13
1 Xavier Mota
From: jonathan hawes <[email protected]>
Sent: Wednesday, November 29, 2023 8:31 AM
To: Clerk Mailbox
Subject: General public comment to be read at the next city council meeting Follow Up Flag: Follow up
Flag Status: Flagged

EXTERNAL
Hello. My name is Jonathan Hawes. I served as El Monte City Clerk from 2013 to 2018. Since 2015 I have been a whistleblower on Andre Quintero and Team El Monte’s embezzlement of $10 million from the El Monte Promise Foundation scholarship fund. I have interviewed dozens of El Monte residents who have privately confirmed that Promise funds were used for fraudulent trips to Vietnam and Haiti, a bogus consultant in Salt Lake City, house repairs, and other unlawful expenditures. I have myself been interviewed by the FBI about two dozen times. Documents proving the embezzlement have been submitted to the FBI and the Los Angeles County District Attorney’s Office.

A week ago, an El Monte resident with a documented history of harassing and fabricating lies about other residents, Gabby Leos, told a string of lies on cable news about El Monte Mayor Jessica Ancona. These lies were spoon-fed to her by City Manager Alma Martinez. El Monte Police Chief Jake Fisher, who went on record confirming one of Leos/Martinez’s lies, needs to be fired for interfering in ongoing litigation by commenting publicly on said litigation, and for lying in his official capacity. Both Martinez and Fisher dislike Mayor Ancona due to her efforts to rid our city of the baleful influence of Andre Quintero and his Team El Monte minions, of which Martinez and Fisher are two. Martinez and Fisher have frequently made significant decisions without a vote from the council, which is unlawful, and Ancona has called out such improprieties, furthering their animosity towards her and her anti-corruption efforts.

I am asking the Santa Monica City Council to pass a resolution condemning these crimes and schemes in order to protect the greatest mayor El Monte has ever had, Mayor Jessica Ancona, and the vulnerable residents of one of the poorest cities in Southern California. If this criminal, FBIinvestigated cabal succeeds in removing her from office via well-orchestrated, mendacious smear campaigns, we will be back to full dictatorship under Andre Quintero or one of his puppets. El Monte children, who should’ve been provided with college scholarships, were robbed by his embezzlement.

Andre Quintero and Team El Monte members must go to prison. If you have any questions, please call or text me at (626) 863-2149. Thank you.

ITEM 1
December 12, 2023
ITEM 1
December 12, 2023

1.A.a
Packet Pg. 14
Attachment: Written Comments [Revision 1] (6183 : Written Comments) 1 Xavier Mota
From: Jason Mastbaum <[email protected]>
Sent: Monday, December 11, 2023 4:39 PM
To: councilmtgitems
Subject: 12/11/2023 item 1 general public comment

EXTERNAL
I just saw our soon‐to‐be mayor getting out of the fancy new electric Mercedes SUV he doesn't want to have to pay to charge, and I couldn't help but notice that Phil didn't attach his front license plate. As a lifelong Californian I'd think Phil would know that it's California law to attach both license plates to a car. I can't help but wonder what other laws will Phil decide don't apply to him once he's mayor.

ITEM 1
December 12, 2023
ITEM 1
December 12, 2023

1.A.a
Packet Pg. 15
Attachment: Written Comments [Revision 1] (6183 : Written Comments) 1 Xavier Mota
From: [email protected]
Sent: Tuesday, December 12, 2023 11:45 AM
To: councilmtgitems
Subject: We Want a REAL Opt-Out from the AMI Wireless Water Meter Project

EXTERNAL

Dear Council Members:

Good day  to you all
I'm wriƟng  because  one of the plans that the city has considered for those wishing to opt‐out of the AMI project would NOT be a REAL opt‐out..  We  do  NOT
want our water meter to be replaced with an AMI  compliant meter which could later have a radio aƩachment aƩached to it that would convert it into a wireless device.

Please  know that there legiƟmate health, environmental and security concerns associated with AMI meters.   We simply ask that we be  REALLY allowed to opt‐out just as we were allowed to opt‐out of  electric  "smart"   meters and  "Advanced"  gas meters  by uƟlity companies.

Thank you in advance for respecƟng our consƟtuƟonal. rights.

Sincerely,
Dhun  May
(On behalf of myself  and concerned residents throughout the city)

P.S. Also please be aware that some water meters are being  "stressed"  or damaged by the pressure of  roots of  Ficus trees (planted  adjacent to  water meters.
by the City)  and therefore may warrant replacement  in the near future..  The Street Maintenance department working  in conjuncƟon with the Water department  will likely be able to help with this maƩer by WORKING TOGETHER.

ITEM 1
December 12, 2023
ITEM 1
December 12, 2023

1.A.a
Packet Pg. 16
Attachment: Written Comments [Revision 1] (6183 : Written Comments) 1 Xavier Mota
From: Lauren Huntington Weedman <[email protected]> Sent: Tuesday, December 12, 2023 12:06 PM
To: councilmtgitems
Subject: Reed Park/Miles Playhouse

EXTERNAL
Hello City Council‐
I’m a Single Mother of a teenage son who has lived for 20 years  in a rent controlled apartment directly across from the Miles Playhouse.

I’ve been in a struggle to find a way to help clean up the stairs of the of Miles Playhouse or block off the steps so it’s not a daily hang out for drug users or folks selling.    Even just police tape or something while the theater is not in use.

I call the non emergency line when it gets too out of control or if there’s a fight or blatant dealing or using.  We walk out of our apartment almost every day into the hell of Reed Park.   Which could be such a nice park. But it’s not.

I’ve spent Ɵme talking to the Santa Monica Arts Commission. Months of back and forth with them during Covid and they all sent to me to you all.

So then I wrote emails to City Council members.  I’ve OVER AND OVER again offered my help.   Can I pay for large decoraƟve rocks to be put on the stairs?
Can we do what everyone in this neighbor wants—and turn the park into a dog park or shut it down?   Do any of you live near Reed park?   I so want to move but can’t afford to so I want to help turn it into a safe feeling home.   I give up for a few years and then try for a few years and then give up.

Can the drug use and homeless hang outs be directed to an area that’s not where people are trying to raise their kids? I’m not trying to clean up the world of all the struggles that are happening but once in a while it hits me how homeowners would never put up with this and fight and seem to have rights and the poor apartment folks have none.

So what can we do?   Why has nothing been changed in a park that is so clearly a rough/bad area?    How do we get the city to care?
Thank you so much.  I”m not angry.  Just depressed.
‐lauren Weedman
818‐288‐6264
ITEM 1
December 12, 2023
ITEM 1
December 12, 2023

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Attachment: Written Comments [Revision 1] (6183 : Written Comments) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 3.A
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Special Agenda Items Subject: Commendation: City Clerk Denise Anderson-Warren Prepared By: Maria Dacanay, Administrative Analyst
Approved Forwarded to Council
Attachments:

A. Written Comments

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1 Xavier Mota
From: Stanley H Epstein <[email protected]>
Sent: Saturday, December 9, 2023 11:42 AM
To: Phil Brock; Gleam Davis; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick; Lana Negrete
Cc: David White; Clerk Mailbox; Olga
Subject: Fwd: Agenda Packet - Dec 12, 2023 (Tue) - City Council Item 3A

EXTERNAL
Item 3A for Tuesday is a Commendation for our retiring City Clerk. Council members know that, on half a dozen occasions during the past year, I have written Denise to request she change the statement in the first sentence of her office’s automatic replies saying “Thank you for your email and we will respond within one business day.” That specific promise is always totally untrue and raises false expectations. Denise has never responded by either changing her false language or telling me why it will not be changed.

I am positive that if the Clerk reported to the City Manager, which is unfortunately not the case under the current Charter, David, a man of total respect for honesty and desire for  superior performance by staff, would have instructed Denise to change the language or find another job. Hopefully, one or more Council members will make that demand on the next Clerk.

It should also be remembered  that Olga and I filed with HR an ethical complaint alleging about 7 instances of serious  improper and unethical conduct by Denise and/or her top assistant Nikki.We 100% proved all of our charges but were not allowed to see the detailed conclusions or opinion  from the City’s outside law firm to HR.

Sincerely, Stan Epstein. 310 393 7619
Sent from my iPad
Begin forwarded message:

From: City Clerk <[email protected]>
Date: December 8, 2023 at 2:30:30 PM PST
Subject: Agenda Packet ‐ Dec 12, 2023 (Tue) ‐ City Council Reply‐To: City Clerk <[email protected]>
The agenda has been revised to include items: 4.A., 5.Q. ‐ 5.S., 16.A. and 16.B.

Please see the attached Agenda Packet document for the following meeting:

City Council
Regular and Special Joint Meeting
Tuesday, December 12, 2023 5:30 PM
1685 Main Street, Room 250, Santa Monica, CA 90401
Download PDF Agenda Packet  |  View Web Agenda Packet
ITEM 3.A.

December 12, 2023
ITEM 3.A.

December 12, 2023

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Attachment: Written Comments (6114 : Commendation: City Clerk (10 mins)) 2 Document Modified: 12/8/2023 2:27 PM
If you no longer wish to be included in this distribution list you can remove yourself through the meeting web portal or reply to this message.

ITEM 3.A.

December 12, 2023
ITEM 3.A.

December 12, 2023

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Attachment: Written Comments (6114 : Commendation: City Clerk (10 mins)) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 3.B
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Recognition of outgoing Mayor Gleam Davis and installation of new Mayor Phil Brock
Prepared By: Denise Anderson Warren, City Clerk
Approved Forwarded to Council

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City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 3.C
1 of 1
To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: City Manager Report - Santa Monica Public Library Annual Report Prepared By: Sergio Ramirez, Acting Chief of Staff
Approved Forwarded to Council
Attachments:

A. SMPL Annual Report 2022-23
B. PowerPoint Presentation

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Annual Report
S
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Santa Monica Public Library

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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L As we look back on FY 2022-23, I am proud to share our successes and continued commitment to delivering world
class service to the communities that live, work, learn, and connect in Santa Monica. We continue to restore and rebuild programs across our 5 library locations and have piloted a number of innovative approaches, working alongside partner organizations and other City departments.

Our libraries are the portals and pathways to living better, more fulfilled lives. Whether through sharing stories and experiences, learning new skills, connecting to resources, or simply enjoying spaces that encourage reflection and calm, the library introduces us to new ideas and opportunities.

The report and this year’s theme is ACCESS. This single word has a variety of definitions, but in the context of our work, it means one very important thing: Possibility. Access to our programs and services widens the possibilities for so many of the people we serve. At SMPL, we help make ideas and
dreams possible.

We look forward to exploring the possibilities with you the next time you visit the Santa Monica Public Library.

A Word from the Director

ERICA CUYUGAN
Director of Library Services

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) Access
Santa Monica Public Library’s story for fiscal year 2022-2023 was ACCESS. While the first two years following the 2020 COVID-19 shutdowns were a period of rebuilding, our most recent fiscal year turned to a period of intentional
restoration of access to the library. Enhanced hours,
increased access to facilities and resources, an expansion of children’s and adult programming, focused outreach
to promote our services among the community, and
much more.

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) ac·cess
S
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BACK IN BUSINESS
2022-2023 saw the reopening of Montana Avenue Branch to the public, as well as the Fairview Branch using the Open+ self-service model. All locations increased seating, and the Pico Branch made enhancements to its Teen area to increase usage.
verb: to be able to use, enter, or get
near (something)

ENHANCED HOURS & SATURDAY BRANCH HOURS
SMPL increased its hours of service to include later hours, as well as opening at 11:00 a.m. at Main Library. In November 2022, the Montana Avenue and Pico Branches opened for business on Saturdays, significantly increasing access for patrons. Overall, we increased hours open to the public by 30% this year.

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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5,332 hours open
6,498 new library cards issued
7,867 library cards renewed
223,876 in-person visits
575,810 virtual visits

THE NUMBERS
1,739 Open+ registered users
“Thanks to you, our life is richer, our horizon broader, our thoughts challenged, our understanding of the world bettered.” - SMPL Patron

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report)

MORE CHECKOUTS
This year, we saw a 15% increase in
physical items checked out by the public.

Our residents, staff, and Library Boards
have supported patrons’ freedom to
read throughout the year. We have
ensured access to a wide variety
of print, audiovisual, and electronic
formats to engage all ages of
readers. Materials budget increases
have also allowed us to purchase
more books, audiovisual materials,
periodicals, and electronic formats,
resulting in boosted circulation. We
continue to develop Read Engage Discover
(RED) Kits to promote hands-on learning opportunities
and connections to interesting topics for adults and families. noun: freedom of or ability to obtain
or make use of something
S
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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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655,273 physical items checked out
15% increase in physical items checked out

THE NUMBERS
165,843 electronic items checked out
138,310 holds placed on library materials
114 RED Kits created
“Dear Librarians, Hats off to all of you, for continually providing the community with an array of books on all manner of topics, displayed so enticingly.” - SMPL Patron
40,408 items added to the library catalog

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report)

ADULT FICTION
1 Tomorrow, and
Tomorrow, and
Tomorrow
Gabrielle
Zevin
2 Lessons in
Chemistry
Bonnie
Garmus
3 Demon
Copperhead
Barbara
Kingsolver
4 It Ends with Us
Colleen
Hoover
5 Trust
Hernan
Diaz

ADULT NON-FICTION
1 I’m Glad My
Mom Died
Jennette
McCurdy
2 Atomic Habits
James
Clear
3 Crying in
H Mart
Michelle
Zauner
4 Spare
Prince
Harry
5 The Body
Keeps the
Score
Bessel
Van der
Kolk
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TOP 5
Most Requested Titles

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report)

TEEN FICTION
1 A Court of
Thorns and
Roses
Sarah J.

Maas
2 The Summer I
Turned Pretty Jenny Han
3 A Court of Mist
and Fury
Sarah J.

Maas
4 Catching Fire
Suzanne
Collins
5 Kindred
Octavia E.

Butler
CHILDREN’S FICTION
1 Keeper of the
Lost Cities
Shannon
Messenger
2 Exile
Shannon
Messenger
3 Sideways Stories
from Wayside
School
Louis
Sachar
4 Are You There
God? It’s Me,
Margaret
Judy
Blume
5 Harry Potter
and the Goblet
of Fire
J.K.

Rowling
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TOP 5
Most Requested Titles

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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ac·cess
verb: to open or load (a computer file,
an internet site, etc.)
noun: the opportunity or ability to
use something

TECHNOLOGY AND LEARNING SPACES
The need for access to computers, wifi, and spaces to study and work remains strong within our community. We reactivated a Main Library 2nd floor area and made it into a reservable open workspace. We reinstated our study rooms, added a drop-in Tech and Tasks programs, and created kits that encouraged active learning through themed bags that include books, supplies, instructions, and technology.

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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19,053 public computer sessions
40% increase in public computer sessions

THE NUMBERS
8,328 AWE Station kids’ computer sessions
166,346 database sessions
17,480 Image Archives sessions
205 Workspaces checked out (NEW)
188 learners served - Tech & Tasks
“Getting the help and support...is great for seniors such as myself, who don’t always have that kind of great community support available.” - Tech & Tasks Participant

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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L ac·cess
WE’VE GOT PROGRAMS
Access means more in-person days and hours, which translates to more opportunities to present educational and entertaining programs that attract new and returning patrons.
noun: the ability
to approach or
communicate with
a person or thing

PARTNERSHIPS
The Library maintained or renewed several important partnerships, including Virginia Ave. Park (Arts & Literacy Fest), YALLWEST (Fierce Friday), SMMUSD (class visits), Adult Education Center (Citizenship Classes/LEAF), and established new ones, including Santa Monica College (The Sum of Us) and the Library of Congress (AAPI Heritage Month veterans’ oral history).

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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271 total programs
10,923 program attendance

THE NUMBERS
3,557 volunteer hours
42% increase in volunteer hours
7,014 study rooms checked out
729 adult learner instruction hours
30 adult learners served - LEAF Tutoring
“I appreciate all that you, library and [my tutor] have given and continues to give to all of us that were left behind in the education process.” -Career Online High School Graduate
451 books provided to build home libraries

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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The Human Library Tuesday Tales storytime
with Councilman Zwick
Pop-Up Beach Library Birdwatching with
Library Board member Lu P.

Santa Monica Reads 2023
with Heather McGhee
Tech & Tasks

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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Arts & Literacy Fest
Fierce Friday at Pico Branch Career Online High School
Tutors, Students & Graduate
Summer Reading Outreach
Assembly at Franklin Elementary
Juneteenth Story time
Adult Summer Reading
Kickoff

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) SMR 2023: Author Heather McGhee’s “The Sum of Us”
Santa Monica READS All Summer: Authors Lisa See & Naomi Hirahara New Collection: Read Engage Discover (RED) Kits & Related Programming Soundwaves Monthly Concert Series
Adult & Neighborhood Services created and oversaw numerous programs and outreach efforts for our community.

Highlights this year include:

Adult & Neighborhood Services
Special and Traveling Storytimes
Collaborations w/various community organizations
Positive Parenting Workshops
17 class visits and 19 school visits
Summer Reading ‘22 - participation doubled from ‘21
The Youth & Family Services team curates specialized programs, services, and collections specifically designed for youth and families at all library locations.

Highlights this year include:

S
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Youth & Family Services

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) Branch Services
Our Team
By the end of FY2022-23 all branch locations were open for in-person or self-service access, with Fairview Branch as the last location to reopen with self-service access in November 2022. Branch staff connected with partners across the City, including several neighborhood associations.

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Literacy
Literacy Education for Adults and Families (LEAF) serves many of our more vulnerable patrons, helping them advance reading, writing, and literacy skills.

This year, the team re-established a drop-in model “Tech & Tasks” and computer basics programs. Literacy volunteers logged over 1,100 hours of service, and the team applied for and was
awarded a grant to implement English as a
Second Language (ESL) services.

Storytimes with Tuesday Tales (in partnership with YAFS) Open Houses at Fairview and Ocean Park branches
Fierce Friday for Teens at Pico branch
Partnered with ANS to bring programming to our neighborhoods Quarterly Human Library events
Branch programming increased for all ages:

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) Our Team
Patron Services
The Collections and Technology teams support the library’s core services including collection development and technology infrastructure. A large focus this year was on replenishing collections, providing the newest and latest books to our patrons as soon as they are available and creating new and exciting collections like RED Kits, State Parks Passes and Sustainability Kits to ensure there is something for everyone.

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Collections & Technology
Additionally, this year the Main Library introduced 2nd Floor Workspaces, a new service which allows patrons to reserve a space for study, work or play for up to 4 hours with a reservation.

Our Patron Services team continues to provide
excellent customer service for the community.

This year, we implemented online library card registrations and automatic renewal, which gives our patrons convenient ways to keep their accounts updated and active.

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) Consistent security presence at all 5 library locations Staff training through a Safety & Security Onboarding manual Collaboration with SMPD’s HLP Team and other City partners as part of clean and safe efforts in Downtown
Advisement and enforcement of the Library Rules of Conduct Our Library Services Officer Team provide a welcoming greeting and a safe environment in our library locations. This
team also transports materials between locations every day, ensuring that our community gets access to their holds in a timely manner. They provide essential services, including:

Safety & Security
S
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Administration
Library Administration supports the many business and
internal services that keep operations running. They
provide guidance and support to the Library Board and
Friends of the Library.

This year, the team worked with HR to hire and onboard 23 new parttime and full-time staff and reinstated meeting room rentals for the public. In addition, Administration coordinated system-wide communication efforts, using social media, the Library E-newsletter, and the website to inform the public of expansion of hours and programming.

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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Our Supporters &
Advocates
Friends of the Santa Monica Public Library
Our Friends of the Library consistently fund library programs and services.

Prior to the reopening of the Friends of the Library Bookstore, they held large scale outdoor book sales and worked tirelessly to organize and process book donations. Their volunteerism and active engagement have been valuable assets to the Library’s restoration efforts. Their advocacy has funded many programs throughout the year, including:

Youth and Adult Summer Reading
Santa Monica Reads
Arts & Literacy book giveaways
Image Archives digital content
College Prep. and Career for Teens
Santa Monica Reads
Take & Make Kits
Movie Screenings

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) S
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Our Supporters & Advocates
California State Library
Santa Monica Public Library received more than $350,000 in grants during FY2022-2023, as well as free access to databases and resources. This funding and support assisted library staff with service and program development, and replacement of specific Main Library building systems and equipment:

The Santa Monica Public Library Board is a 5-member
board appointed by the City Council. This year, the
Board promoted Banned Books Week and The
Freedom to Read, presenting a proclamation for City
Council to read.

They have re-engaged with the Friends of SMPL
to discuss joint efforts of advocacy
and community connections and
future program ideas.

Library Board
Adult Literacy
Family Literacy
Zip Books
Career Online High School
Open+ (Fairview)
Building Forward
Workforce Development
Platforms

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) 2023-24 will focus on our continued efforts to increase library open hours and staffing, think creatively about programming, and gain a better understanding of how our community’s needs have changed.

We will re-activate dormant spaces at the Main Library, as well as explore ways to increase programming at our neighborhood branch locations.

Our Pico Branch Library is turning 10 next year, and there will be much to celebrate!
We will align our work with City and Council priorities and integrate our own priority areas of Community Engagement, Equity & Inclusion, Safety & Security, and Facilities & Infrastructure.

We will partner with the Friends of the Santa Monica Public Library and local nonprofits to find new ways to make meaningful connections with residents and visitors.

We will advocate for MORE ACCESS to our materials, facilities, programs, and services, and we will continue to imagine the possibilities.

Come visit us soon!
S
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Looking Ahead

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Attachment: SMPL Annual Report 2022-23 (6146 : City Manager Report - SMPL Annual Report) Santa Monica Public Library
Annual Report
2022-2023

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Access = Possibility
2 We provided MORE access to:
• Open Hours • Library Spaces • Materials & Technology • Programs & Resources Library Annual Report– FY 2022 - 2023

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) 3 Library Annual Report– FY 2022 - 2023
Hours & Locations

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) 4 Library Annual Report – FY 2022 - 2023
Materials & Resources

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) 5 Library Annual Report– FY 2022 - 2023
I am writing to let you know how
deeply valuable having the ability
to borrow from the library the
ukulele has been for me.

It has given me something every
important, the joy of singing along
with the ukulele, of hearing my own
voice, and not so alone.

It seems small, but really very big.

Thank you.
-Deborah G.

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Services & Technology
6 Library Annual Report – FY 2022 - 2023

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) I’ve attended the tech. help
drop-in class when I need it…
Getting the help and support
there is great for seniors such as
myself, who don’t always have
that kind of great community
support available.

I wanted to say a heartfelt
thank you!
- Susan C.
7 Library Annual Report– FY 2022 - 2023

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Programs & Volunteers
8 Library Annual Report– FY 2022 - 2023

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Career Online High School
9 This program was challenging for me, but at the same time I learned my abilities and strengths. Through this program I was able to improve my reading, writting and science skills. Now that I have completed my high school diploma, I plan to continue my education by enrolling in a comunity college.
-Suly C., August 2023 Graduate
Library Annual Report– FY 2022 - 2023
I never thought I would see myself in a cap and gown accepting my certificate…I was overwhelmed with joy to see how many people came out to support the graduates.

If there’s anything else I can pursue at the library I’m all in…I know that 2024 will be an amazing year for me with so many doors of opportunity.
-Jacqueline B., November 2023 Graduate

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Looking Ahead – Santa Monica Public Library
Inaugural Poet Laureate Program
Pico Branch’s 10th Anniversary
NEW ESL Services & Programs
Teen Leadership Council and Volunteers
Reimagine Main Library Central Courtyard Space

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) Thank you!

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Attachment: PowerPoint Presentation (6146 : City Manager Report - SMPL Annual Report) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.A
1 of 3
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Adoption of a Resolution Amending the Policies for Board and Commission Recommended Action
Staff recommends that the City Council:

1. Adopt a resolution amending the Policies for City Boards, Commissions, Committees, Task Forces, and Regional Advisory Boards, and repealing Resolution No. 11510 (CCS) to include language concerning term limits of chairs/vice chairs as approved by Council on July 27, 2021, and to revise the method for boards and commissions to provide their annual reports and workplans to Council; and

2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

Summary
At the July 27, 2021 meeting, Council approved a resolution amending the policies for City Boards, Commissions, Committees, Task Forces, and Regional Advisory Boards to include language concerning term limits of chairs/vice chairs. In addition, Council approved to revise the method for boards and commissions to provide their annual reports and workplans. Staff is recommending implementation of these changes and that annual reports prepared by boards and commissions be submitted via an Information Item.

Discussion
Staff is recommending inclusion of language in the resolution regarding term limits of chairs and vice chairs of boards and commissions, as recommended to and approved

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2 of 3
by the City Council in the form of a Council Discussion Item from the City Council Ad Hoc Committee for Boards and Commissions, at the July 27, 2021, City Council meeting, to limit commission leadership (chair and vice chair) terms to a maximum of two years, rotating by election, over their lifetime of service to the board or commission in order to provide greater opportunities for leadership to members of the community and in alignment with the City’s commitment to increase greater equity and inclusion in its public bodies.

Additionally, staff is recommending City Council revise the method for boards and commissions to present their annual reports and workplans to the City Council. At the March 14, 2023, City Council meeting, staff recommended, and City Council approved for board and commission annual reports to be presented during the City Council meetings scheduled during the first quarter of the fiscal year with a schedule determined by the City Clerk. Due to ever increasing needs to balance transparency while also increasing the productivity and efficiency of City Council meetings, staff now recommends City Council receive these annual reports via an Information item published by the City Clerk’s Office.

Finally, with the discontinuation of the free, on-demand online ethics training provided by the Fair Political Practices Commission (FPPC), the language requiring newly appointed commissioners to complete their training within 30 days has been deleted.

Commissioners are still encouraged to complete the training as soon as practicable within one year of service.

Environmental Review
This resolution is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The resolution represents administrative changes to policies on the City’s boards and commissions and would not result in physical effects, and therefore, is exempt from CEQA.

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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action.

Prepared By: Nikima Newsome, Assistant City Clerk
Approved Forwarded to Council
Attachments:

A. 12.12 Board and Commission Policies Resolution
B. Written Comments

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City Council Meeting: December 12, 2023 Santa Monica, California RESOLUTION NUMBER _____ (CCS)
(City Council Series)

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

ESTABLISHING POLICIES FOR CITY BOARDS, COMMISSIONS, COMMITTEES,

TASK FORCES, AND REGIONAL ADVISORY BOARDS, AND REPEALING RESOLUTION NUMBER 11510 (CCS)
WHEREAS, maximizing public participation in government effectuates fundamental principles of democracy; and
WHEREAS, the residents of Santa Monica have a strong commitment to participating in their local government; and
WHEREAS, the City of Santa Monica (“City”) has established numerous boards, commissions, committees, and task forces to facilitate public participation in government and thereby ensure representation of diverse viewpoints and interest; and WHEREAS, setting term limits and establishing policies for boards, commissions, committees, and task forces ensures that opportunities for participation will be maximized and that boards, commissions, task forces and committees will function productively; and
WHEREAS, the City Council (“Council”) desires to establish term limits and other policies in relation to participation in City boards, commissions, committees, and task forces and the conduct of board, commission, committee, and task force committee meetings; and

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) WHEREAS, the Council intends such policies to both maximize opportunities for participation in City government and provide the flexibility to ensure that boards, commissions, committees, and task forces have the expertise and qualifications necessary to discharge their duties.

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

SECTION 1. Appointments to City Boards, Commissions, Committees, and Task Forces.

Except as otherwise provided by motion of the City Council, the procedure for making appointments to City boards, commissions, committees, and task forces shall be as follows:

A. When a vacancy occurs, as a result of the expiration of the term of an appointment, on any City board, commission, committee, or task force, the City Clerk shall publish a notice of the vacancy at least once in The Santa Monica Daily Press, or a newspaper of general circulation, and post the notice of the vacancy on the City’s website. The City Clerk shall publish the notice of vacancy and post it on the City’s website no less than thirty (30) days before the vacancy occurs. The notice shall request that any interested party submit an application to the City Clerk. The notice shall also specify the position for which a vacancy has occurred, the term of office for the position to be filled, and a reasonable day by which interested parties must submit applications for the position. The deadline for submission of applications shall not be less than fifteen (15) days prior to the end of the term. Where the appointment is forthe

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) purpose of filling an unscheduled vacancy, a special vacancy notice shall be posted at City Hall and Main Library not earlier than 20 days before or not later than 20 days after the vacancy occurs. Final appointment shall not be made for at least 10 working days after the posting of the notice.

B. Applications for board, commission, committee, and task force positions shall be made on the City’s website or in writing to the City Clerk on forms supplied by the City Clerk. Applications submitted after the deadline shall not be considered. The applications shall be public records except for the portion of the application which is specifically described as confidential.

C. The City Clerk shall collect all written applications which are received by the deadline date and shall thereafter cause the matter of filing the board, commission, committee, or task force vacancy to be placed upon the City Council agenda. The City Clerk shall transmit to the City Council the information contained on all written applications which have been received prior to the deadline date.

D. Boards, commissions, committees, or task forces shall not take any official action to recommend any specific appointees to the City Council, although individual members may make recommendations as individuals.

E. Following consideration of the applications received for each board, commission, committee, or task force vacancy, the City Council shall make appointments in open session at a City Council meeting to fill the vacancy.

F. In compliance with California Government Code Section 54972 et seq. (the Maddy Act), the City Clerk shall prepare a Local Appointments List and make available to the public. The Local Appointments List shall consist of the following:

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) 1) a list of all current City boards, commissions, committees, and task forces; 2) a current list of all vacancies on all City boards, commissions, committees, and task forces;
3) the terms of all current individuals serving on City boards, commissions, committees, and task forces; and,
4) the qualifications for serving on all City boards, commissions, committees, and task forces.

The City Clerk shall maintain a current Local Appointments List on the City’s website.

G. A person is ineligible to serve on all City boards, commissions, committees, and task forces if that person is a close family relative of a current Councilmember. The term “relative” means wife, husband, registered domestic partner, son, daughter, mother, father, brother or sister.

SECTION 2. Term Limits for Boards, Commissions, Committees, and Task Forces The following definitions and policies shall apply to City boards, commissions, committees, and task forces, including the boards of the non-profit agencies, Santa Monica Pier Corporation, Downtown Santa Monica, Inc., and Santa Monica Travel and Tourism.

A. The length of term for each City-appointed board, commission, committee, and task force is set forth in the Municipal Code, the City Charter, or the by-laws of the board, commission, committee, or task force.

B. A full term is defined as serving three-fourths or more of a term, whether it

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) is an appointment to an annual vacancy or to an unscheduled vacancy.

C. A partial term is defined as serving less than three-fourths of a term, whether it is an appointment to an annual vacancy or to an unscheduledvacancy.

D. Term Limits for Boards, Commissions, Committees, and Task Forces

1. All members of boards, commission, and committees, except tenant members of the Housing Commission and task forces, are limited to serving two consecutive terms. However, a third consecutive term may be served if the member makes a written request to serve a third term, or a Councilmember nominates a member to a third term, and the City Council approves the third term by a two-thirds vote. Tenant members of the Housing Commission are limited to serving four consecutive, two-year terms, except that a fifth or sixth, two-year consecutive term may be served if the member makes a written request or a Councilmember nominates the member, and the City Council approves the fifth or sixth term by a two-thirds vote.

Members of task forces may serve for an indefinite number of two-year terms. Term limits for directors on the Santa Monica Pier Corporation, Santa Monica Travel and Tourism, and Downtown Santa Monica, Inc., are determined by the boards’ by-laws.

2. The total number of members that may serve a third consecutive term on a board, commission, or committee at the same time is limited to no more than one-third of the membership of that board, commission, or committee but the Council may, by two-thirds vote, make an exception in order to fill positions on boards, commissions, and committees that have specific qualifications, such as professional standing or expertise.

3. After serving the maximum number of consecutive terms allowed, a

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) member may not serve again on the same board, commission, committee, or task force until four years after the member’s final term has expired.

4. Members must wait at least one year after terming out of serving on a board, commission, committee, or task force before serving on a different board, commission, committee, or task force.

5. Officers shall serve no more than two years in a leadership position (Chair or Vice Chair) over their lifetime of service to a particular board or commission.

This is intended to provide increased opportunities for leadership to members of the community, in alignment with the City’s commitment to greater equity and inclusion.

E. Term Limits for Regional Advisory Boards.

1. Members of the Los Angeles County West Vector Control District are limited to serving two consecutive terms. However, a third consecutive term may be served if the member makes a written request to serve a third term, or a Councilmember nominates a member to a third term, and the City Council approves the third term by a two-thirds vote. The current members of the Los Angeles County Vector Control District as of the date of adoption of Resolution No. 11396 shall serve the remainder of their term but shall be ineligible to serve any subsequent term.

2. Members of the Los Angeles County Metropolitan Water District are limited to serving two consecutive terms. However, a third consecutive term may be served if the member makes a written request to serve a third term, or a Councilmember nominates a member to a third term, and the City Council approves the third term by a two-thirds vote. The current members of the Los Angeles County Metropolitan Water District as of the date of adoption of Resolution No. 11396 shall serve the remainder of their term but shall be ineligible to serve any subsequent term.

F. Recognition of Outgoing Members.

Members of boards, commissions, committees, task forces, and regional advisory

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) bodies who leave service for reasons including terming out; not seeking re-appointment; or not securing the votes to be re-appointed, shall be recognized for their service at the first Council meeting after annual appointments take place.

SECTION 3. Membership on One Board, Commission, Committee, or Task Force.

No person shall serve simultaneously on more than one Santa Monica City Council appointed board, commission, committee, or task force, including the Santa Monica Pier Corporation, Downtown Santa Monica, Inc., Santa Monica Travel and Tourism, and the regional advisory boards. This section shall not apply to advisory boards reporting to City staff or boards, commissions, or task forces.

SECTION 4. Reimbursement of Expenses.

Members of boards, commissions, committees, and task forces shall be reimbursed for expenses in the amount of up to $25.00 per meeting, not to exceed the amount of $50.00 per month pursuant to the forms and administrative procedures established by the City.

SECTION 5. Use of City Funds.

Allocated funds are restricted to the following: Participation or sponsorship fees for local events; dues/memberships to other organizations that align with board, commission, committee, or task force goals; conferences/trainings that align with board, commission, committee, or task force goals, costs related to board, commission, committee, and task force materials, including printing of materials, postage, giveaways for events, supplies for City-sponsored events, food for City retreats, and accommodation services such as signing and closed captioning.

SECTION 6. Biennial Review of Agendas and Minutes and Five-Year

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) Comprehensive Review.

The City Clerk is hereby directed to conduct biennial reviews of board, commission, committee, and task force agendas and minutes, including the agendas and minutes of the Santa Monica Pier Corporation, Downtown Santa Monica, Inc., and Santa Monica Travel and Tourism, and to act, as needed, to ensure that they comply with legal requirements, including the Ralph M. Brown Act, and maintain uniform content and format with the City Council’s agendas and minutes. The City Clerk is also hereby directed to conduct a comprehensive review of all advisory bodies every five years, except that no such review shall occur in an election year.

SECTION 7. Annual Dinner and Presentation of Annual Reports.

The City Clerk is directed to organize and hold an Annual Dinner which shall serve as the annual report to Council by the City-appointed boards, commissions, committees and task forces, and the appointees to the regional advisory boards. If the Annual Dinner is unable to be held in a given year, annual reports shall be presented during the Council meetings scheduled in the first quarter of the fiscal year as an information item published by the City Clerk’s Office. The schedule shall be at the discretion of the City Clerk.

SECTION 8. Written Communications.

No City-appointed board, commission, committee, or task force shall send any official resolution or other correspondence of the board, commission, committee, or task force on any matter to City policy to any non-City agency, board, commission, committee, or task force unless the board, commission, committee, or task force voted to do so and obtains prior approval of the City Council.

All City-appointed board, commission, committee, and task force members are issued City emails addresses, which must be utilized for all City business.

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) SECTION 9. Secretaries
In compliance with the Brown Act and Section 1004 of the Santa Monica City Charter, the City Manager shall designate a City employee to act as secretary for each of the boards, commissions, and task forces, including their subcommittees, which are subject to the Brown Act, for the purpose of keeping a record of their proceedings and transactions. Ad hoc committees, or committees established for a period of no more than one year, are not required to have appointed secretaries.

SECTION 10. Conduct of Meetings and Drafting of Agendas and Minutes.

The Rules of Order and the Procedures for the Conduct of the City Council meetings, as may be amended from time to time, shall serve as a general guideline for the conduct of meetings of the City-appointed boards, commissions, committees, and task forces which have not adopted their own rules or bylaws. All City-appointed boards, commissions, committees, and task forces shall adopt their own rules or bylaws in accordance with the template prescribed by the City Clerk. All boards, commissions, committees, and task forces shall use the agenda and minutes templates prescribed by the City Clerk. Agendas for posting must be submitted to the City Clerk’s Office no later than 4:30 p.m. in advance of the 72 hours (for Regular meetings) or 24 hours (for Special meetings) notification deadlines under the Brown Act. Failure to do so may result in the cancellation of a meeting.

SECTION 11. Attendance at Meetings.

The following attendance policies apply to all members of City boards, commissions, committees, and task forces, including the Santa Monica Pier Corporation, Downtown Santa Monica, Inc., Santa Monica Travel and Tourism, and the regional advisory boards.

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) A. An absence is defined as a failure to attend at least two-thirds of a regular or special meeting.

B. An absence is considered excused when a member communicates the member’s absence to the Chair or staff liaison prior to the start of a regular or special meeting.

C. An absence is considered unexcused when a member does not communicate that member’s absence to the Chair or staff liaison prior to the start of a regular or special meeting, or, in the event of an emergency, as soon as practicable after the emergency but in no event later than two calendar days after the start time of the meeting.

D. In special circumstances, prolonged absences may be excused upon approval of the board, commission, committee, or task force, which shall then be reported by the City staff liaison to the City Clerk.

E. Except for the regional advisory board appointments, City staff liaison to all boards, commissions, committees, and task forces shall report all absences to the City Clerk.

F. The City Clerk shall provide the City Council with a summary of attendance for all board, commission, committee, and task force members in June and December of each year.

G. For boards, commissions, committees, or task forces that meet monthly, upon the accumulation of two unexcused absences from regular meetings occurring over the course of six consecutive regular meetings, a member of a board, commission, committee, or task force automatically vacates membership on the board, commission, committee, or task force.

H. Additionally, the Chair shall warn any member who has more than two excused absences from any six consecutive meetings. If another two meetings are

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) missed, whether as the result of excused or unexcused absences, the Staff Liaison shall inform the City Clerk, who will then inform the City Council.

SECTION 12. All boards, commissions, committees, and task forces must produce an annual workplan setting priorities for the upcoming year. Each workplan shall align with that board, commission, committee, or task force’s corresponding City department’s goals and objectives. In addition, all boards, commissions, committees, and task forces shall produce an annual one-page evaluation of their work over the preceding year.

SECTION 13. Attendance at Ethics Training - Government Code Section 53235 (AB 1234).

Government Code Section 53235 (AB 1234) mandates two hours of ethics training for local officials every two years. The City Clerk shall provide the City Council with a summary of attendance by City Council-appointed board, commission, committee, and task force members, including members of the Santa Monic Pier Corporation, Downtown Santa Monica, Inc., Santa Monica Travel and Tourism, and the regional advisory boards after the biennial training and before making annual appointments. All newly appointed members are required to take the mandated ethics training as soon as practicable, within one year of service., but no later than within 30 days of being appointed.

SECTION 14. Other Trainings
The City Clerk in conjunction with the City Attorney shall develop and implement onboarding training for new members and annual training for members, chairs, and vicechairs of boards, commissions, and task forces, and shall provide City staff liaisons with training guidelines. All members are required to complete the onboarding or annual

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) training as soon as practicable.

SECTION 15. Council Liaisons
Each Council member may serve as a liaison to no more than two boards or commissions each year. Council liaisons serve as connections between the City Council and boards and commissions, but Council liaisons are neither required to attend board and commission meetings or maintain any voting power on boards and commissions. Council members cannot serve as Council liaisons to any board or commission with quasi-judicial authority (i.e. Planning Commission, Landmarks Commission, Architectural Review Board).

SECTION 16. The City Clerk will provide an annual report to inform the City Council on the aggregate demographic profile of the City’s boards, commissions, and task forces.

SECTION 17. Resolution Number 11510 (CCS) is repealed in its entirety.

SECTION 18. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
______________________________
DOUGLAS T. SLOAN
City Attorney

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Attachment: 12.12 Board and Commission Policies Resolution [Revision 1] (5882 : Amend Boards and Commissions Rules) 1 Xavier Mota
From: Andrew Wilder <[email protected]>
Sent: Saturday, December 9, 2023 2:11 PM
To: councilmtgitems
Cc: Council Mailbox; Gleam Davis; Phil Brock; Caroline Torosis; Oscar de la Torre; Jesse Zwick; Christine Parra; Lana Negrete; David White; Susan Cline; Clerk Mailbox Subject: Item 5A: 2-year officer limit is impossible

EXTERNAL
Dear City Council and Staff,
I write this personally, and am not speaking on behalf of the Airport Commission.

I agree with the City's goal of greater equity and inclusion. However, it's mathematically impossible for some boards and commissions to meet the proposed requirement.

If each member serves for 8 years, and 2 of those are as an officer, that's 25% of their service as an officer. If the body has only five members, at any given time 40% of the members of the body would need to serve as an officer.

Looking at it another way: If you have 5 members serving for 8 years, with 2 officers each year, that's 40 total years of service (5x8) and would require 16 total years of officers (8x2). But if members can only be officers for 2 years, there are only 10 years of "available" officers (5x2).

Even if every member were required to serve as an officer for 2 years, that would not be sufficient to meet the proposal. The only way to make this work would be if not all members serve two terms.

Please also consider that not every member wants to serve as an officer and some bodies may want their officers to lead longer.

I continued to serve as Chair of the Airport Commission until recently because nobody else on the Commission wanted to do it! At our last election, though, we did have another member who was willing to be Chair, and we appointed her unanimously -- but she and the other members of the Commission asked me to serve as Vice-Chair, particularly to support her with my experience and institutional knowledge. My being disallowed from serving as Vice-Chair would have been a disservice to her and the community, not a benefit.

Fostering new leaders is important, but not if the rules are impossible or have unintended negative consequences.

Thank you,
Andrew Wilder
Sunset Park
ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) 2 ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) 1 Xavier Mota
From: Ellis Raskin <[email protected]>
Sent: Monday, December 11, 2023 8:59 PM
To: councilmtgitems; Gleam Davis; Lana Negrete; Phil Brock; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick
Cc: Douglas Sloan; David White; Denise Anderson-Warren; Nikima Newsome; Esterlina Lugo; Clerk Mailbox
Subject: Agenda Item 5.A: Comments on two-year limit for leadership positions

EXTERNAL
Dear Hon. Councilmembers,
Agenda Item 5.A on tomorrow night's agenda includes a proposed revision to the rules of procedure for City boards and commissions. Among other things, the revisions would impose a lifetime limit of two (2) years in a "leadership position" (Chair or Vice Chair) over the lifetime of their service. I presume this two‐year limit applies to both Vice Chair and Chair positions (in other words, someone who has served for two years as a Vice Chair will be permanently ineligible for any other leadership positions in the future).

While I support the goal of providing new opportunities for new commissioners to serve in leadership positions, there are a few practical problems that will be created by the two‐year limitation (as it is now drafted):
 Lifetime restriction is problematic: It is not uncommon for civically‐engaged citizens to serve longer than eight years on boards and commissions (our soon‐to‐be Mayor, Phil Brock, is one such example; Albin Gielicz and many others have also done so). Sometimes, commissions need experienced leaders to step into the role of Chair or Vice Chair in challenging times (or when the remainder of members are inexperienced). But under the new proposed rule, if a commissioner has served one year as a Vice Chair and one year as a Chair, they would be permanently ineligible to serve in a leadership position again. Our city should not be deprived of the opportunity for experienced leaders to take charge when needed.
 Two‐year limit would cause practical problems for current commissions: There are a few commissions where both the Chair and Vice Chair would be immediately (or very soon will be) termed‐out. To give just a few examples:
o On the Building & Fire‐Life Safety Commission, Dan Jansenson and Charles Whitaker have served as Vice Chair and Chair, respectively, for over two years. Dan would be permanently deprived of the opportunity to serve as Chair. And a new commissioner would immediately assume the role of Chair without any training in the role as Vice Chair.
o On the Housing Commission, Theresa Marasco has served as Vice Chair since May 2022. This new rule would bar her from serving more than just a few months as Chair. o On the Recreation and Parks Commission, Andrew Gomez has served as Vice Chair since July 2022. This new rule would bar him from serving a full year as Chair. The current Chair, Maryanne LaGuardia, would be permanently barred from serving in leadership positions in the future. o On the Planning Commission, I have served as Vice Chair since April 2022. I also would not have the opportunity to serve a full year as Chair.
o I could cite other examples, but I think these examples are sufficient.

There are a few ways you could potentially fix this problem. My preferred option is to include the following edits in the new Section D(5) in the commission rules (on page 6 of the draft resolution):

ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) 2 Officers shall serve no more than two years in a leadership position (Chair or Vice Chair) over their lifetime of service to a particular board or commission a period of eight (8) consecutive years. The time limits described in this section shall begin to accrue on January 1, 2024. This is intended to provide increased opportunities for leadership to members of the community, in alignment with the City’s commitment to greater equity and inclusion.

Thank you very much for your consideration. Please let me know if you have any questions.

Best,
Ellis Raskin
ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) 1 Xavier Mota
From: Ann Hoover <[email protected]>
Sent: Tuesday, December 12, 2023 11:09 AM
To: councilmtgitems; Gleam Davis; Phil Brock; Lana Negrete; Christine Parra; Oscar de la Torre; Caroline Torosis; Jesse Zwick; David White; Douglas Sloan; Susan Cline; Susan Cola; Denise Anderson-Warren Cc: Steven Johnson; Maryanne LaGuardia; Andrew Gomez; Arati Desai Wagabaza; Lori Brown; John Smith; Jenny Rogers; Jeanette Gant
Subject: December 12, 2023 Council Meeting - Consent Calendar Item 5.A. - OBJECT

EXTERNAL
OBJECT
Dear Mayor Davis, Mr. White, Mr. Sloan, Ms. Anderson-Warren, and Esteemed Councilmembers - I write to object to the present drafting of the main proposed change to the Boards & Commissions rules on the Council agenda tonight (Item 5.A. of the Consent Calendar), which is as follows:

5. Officers shall serve no more than two years in a leadership position (Chair or Vice Chair) over their lifetime of service to a particular board or commission. This is intended to provide increased opportunities for leadership to members of the community, in alignment with the City’s commitment to greater equity and inclusion.

The new language can be read two ways, one of which is that Board & Commission members are to be limited to 2 years in the aggregate in any leadership position (Chair or Vice Chair), but it is not crystal clear on this point, so the language needs to be clarified to address the following questions:
 Does this mean up to two years serving in each position (if elected), for a total of 4 years of leadership service?
 Or does this mean only two years total leadership serving in either position?  The language as drafted is not clear on whether one could serve up to 4 years (2 as VC, 2 as Chair).....and a conservative reading is that one can only serve 2 years total in leadership, period.

As I believe other public commenters may have noted, 2 years in the aggregate is too restrictive as there is value in a Board Member or Commissioner gaining experience in a Vice Chair role and also in a Chair stepping back into a Vice Chair role to advise and effect continuity, implement institutional knowledge of how the City and the appointed position work, etc. etc.

I'm a supporter of term limits as a general concept, but the conservative reading of this language would be going a bit overboard.

ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) 2 So unless the intention is to significantly weaken your Boards & Commissions by depriving those who've gained the knowledge and experience to be effective in leadership roles, allowing for 4 years in the aggregate (up to two as Chair, up to two as Vice Chair), would be the way to go.

Also, please run any changes to these rules by your Boards and Commissions first before bringing changes to Council.

Thanks so much,
Ann Bowman
Recreation and Parks Commissioner
City Clerk – Please include this letter in the Public Record for Agenda Item 5.A., City Council meeting of December 12, 2023.

ITEM 5.A.

December 12, 2023
ITEM 5.A.

December 12, 2023

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Attachment: Written Comments (5882 : Amend Boards and Commissions Rules) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations Subject: Annual Reporting of Development Impact Fees and Adoption of Transportation Impact Fee Resolution
Recommended Action
Staff recommends that the City Council:

1. Review and accept the FY 2022-23 Annual Reporting of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and the FY 2022-23 Child Care Linkage Fee Report per SMMC Chapter 9.65;

2. Approve and adopt the proposed resolution making the necessary five-year findings for the Transportation Impact Fee; and

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

Summary
Santa Monica collects Council authorized fees from developers to fund investments in child care, transportation, parks, affordable housing, and water conservation. The City also uses these funds to meet the City’s match requirement when seeking grant funding that further offsets costs for City projects.

This report transmits the attached Development Impact Fees Report on the status of funds collected from the City’s development impact fees, including investments made in the last year, that qualify to be reported under the Mitigation Fee Act (Government Code sections 66000-66025) (Attachment A). This Annual Report also provides the required annual reporting for the Child Care Linkage Fee per SMMC section 9.65.090.

Government Code 66001(d) requires the City Council to make findings every five years

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after a development fee is established. Only the Transportation Impact Fee is due to be reported this year under the five-year requirement. Staff is requesting that the City Council approve and adopt the proposed resolution making the necessary findings for the Transportation Impact Fee.

Discussion
In 1987, Assembly Bill 1600 (AB1600), also known as the California Mitigation Fee Act, codified the legal and procedural parameters for charging development impact fees as set forth in Government Code sections 66000-66025. A development impact fee is a monetary exaction, other than a tax or special assessment, that an applicant of an approved development project pays to defray all or a portion of the costs of public facilities related to the project. The Mitigation Fee Act defines “public facilities” broadly to include public improvements, public services, and community amenities.

At the time that a development impact fee is established, the purpose of the fee and its anticipated use must be clearly identified. Per Government Code section 66006, collection of these fees requires separate funds or accounts to avoid commingling and requires that information be reported within 180 days after fiscal year-end.

The City publicly posted the annual Mitigation Fee Act Report, as required by AB1600, on November 15, 2023 for the following fees: Child Care Linkage Fee, Transportation Impact Fee, Parks and Recreation Impact Fee, Affordable Housing Commercial Linkage Fee, and Water Demand Mitigation Fee. Per Government Code section 66001, the City must also report on unexpended and expended fee amounts, whether committed or uncommitted, for the fifth fiscal year following the first deposit and every five years thereafter. This year, only the Transportation Impact Fee is subject to the five-year reporting.

Staff continues to monitor development projects and revenue collected to ensure that fees are accounted for and expended in accordance with the purposes for which they were collected as required by law. It can take several years to accumulate sufficient funds to implement the relatively high-cost projects the City's development impact fees

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are eligible to fund. The following is a summary of each development fee, the current balance, and a description of how funds are being spent:

1. Child Care Linkage Fee – This fee is intended to address the increased demand for child care triggered by the development of commercial projects adding floor area of at least 7,500 square feet or multi-family residential projects. Developers can satisfy the ordinance requirements by either paying a fee or by agreeing to participate in the construction or establishment of one or more childcare facilities. Fees are computed annually on July 1, increasing by a percentage equal to the Engineering Construction Cost Index as published by Engineering News Record. Child Care Linkage Fees (CCLF) shall be paid by the final inspection date and prior to the issuance of the Certificate of Occupancy.

SMMC section 9.65.070 specifies that funds collected in the Child Care Linkage Fee Reserve Account shall be expended only on the construction and establishment of child care facilities within the City of Santa Monica, including, but not limited to, expenditures for land acquisition, planning, legal advice, engineering, design, construction and equipment, as well as any administrative costs incurred by the City to administer the reserve account. Eligible expenditures shall not include ongoing operating expenses and general maintenance of childcare facilities.

FY 2022-23 Fee Activity
FY 2022-23 Child Care Linkage Fee
Beginning
Balance Fees Collected Interest Earned Expenditures Ending Balance $769,644 $655,413 $8,623 $0 $1,433,680
In 2021, the balance of the Child Care Linkage Fee (CCLF) fund reserve account was fully expended on construction of the Santa Monica Early Childhood Lab School, which created 106 new child care slots in Santa Monica, including 38 for infants/toddlers, and 68 for preschool-aged children. Future programs may include loans or grants for those looking to develop new, licensed childcare in Santa Monica.

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2. Transportation Impact Fee (TIF) – This fee is collected on eligible new development and changes in land use that result in increased trip generation.

The fees are based on residential units or commercial square footage and are charged prior to issuance of building permits, unless State law requires the City to accept later fee payment. The TIF is based upon the costs associated with transportation improvements and the amount of new auto trips that can be attributed to land use changes.

Funds collected are used to fund transportation improvements, such as sidewalks, pedestrian crossing improvements, traffic signal upgrades, transit, and bicycle facilities, per SMMC Chapter 9.66. Funds are frequently leveraged as grant match for projects such as Safe Streets for 17th Street and implementation of the Wilshire Boulevard Safety Study recommendations. Grant projects have longer delivery times but increase the number and size of improvements resulting from use of these fees. Grant matching was assumed in the fee calculation and nexus study supporting the development of the TIF.

FY 2022-23 Fee Activity
FY 2022-23 Transportation Impact Fee
Beginning
Balance Fees Collected
Interest
Earned Expenditures
Ending
Balance
$11,418,765 $2,270,504 $35,560 $1,917,592 $11,807,237
In FY 2022-23, $1,917,592 was expended on capital improvement project delivery, including tools to analyze crash reports to determine safety countermeasures, project design, right of way, required studies, prevailing wage monitoring, utility coordination, and construction to implement Vision Zero improvements associated with the following projects:
• 4th St Enhancements – Expo Linkages, Phase 2: $433,343 • Michigan Ave Greenway / 20th St Bike Connection: $7,647

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• Pico Blvd / SMC Pedestrian Safety Improvements: $752,693 • Multimodal Signal Detection: $24,548
• Stewart and Pennsylvania Safety Enhancement Project: $21,485 • Project Management Support: $26,187
• Safe Routes at Four Schools: $290,702
• Safe Streets for 17th Street and Michigan Avenue: $197,250 • Construction Management Services: $163,737
State law requires that TIF funds be used for the delivery of physical improvements. These projects require significant time for project delivery because of local design, outreach and procurement steps and State and Federal grant funding approval processes. TIF funds are pre-committed to projects for an extended time as a result, and funds need to be held available for upcoming grant match commitments. Staff anticipates using portions of the fund balance to support longer-term projects identified in the TIF nexus study such as bike facilities, sidewalks, and safe crossings. This information along with additional project and expenditure information is available in Attachment A.

3. Parks and Recreation Impact Fee – This fee is collected from new residential and commercial development for the upgrade and/or expansion of parks and recreation facilities needed to accommodate additional occupants per SMMC Chapter 9.67.

FY 2022-23 Fee Activity
FY 2022-23 Parks and Recreation Impact Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$4,037,185 $2,551,908 $42,907 $246,410 $6,385,590
In FY 2022-23, a total $246,410 was expended. Of the total, $150,210 was spent on playground safety upgrades; $440 on the basketball court at Marine Park; $50,680 was used on the Citywide Park Condition Assessment; $75 was spent on Douglas Park for the Notice of Exemption Fee; $42 was spent on labor

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compliance review to begin construction at Beach Park #1; and one project, the expansion of the Community Gardens at Marine Park, was completed and partially funded at 80% with parks and recreation impact fees in the amount of $44,963.

Included in the FY 2023-25 Adopted Budget, a total $664,700 was allocated to the reconstruction of two basketball courts at Marine Park ($414,700) and to address needed repairs and deferred maintenance in parks ($250,000), as per the Park Condition Assessment, a project that identifies and prioritizes parks and playground safety enhancements. Work on the basketball courts is expected to start and finish in Summer 2024. Construction of repairs and maintenance will start after the Park Condition Assessment is complete, which started in the Spring of 2023 and is scheduled to be completed in Summer 2024.

Staff continues to evaluate potential park-based projects, such as repairs and construction to essential equipment and infrastructure to maintain access to open spaces. Staff also actively utilize this funding to meet local match requirements when applying for grants. This enables the City to maximize available funding for priority projects. Projects are prioritized based on health and safety criteria and presented to Council as part of the proposed Capital Improvement Program budget. Staff anticipates that $4.9 million in available funding would be used for future projects at Memorial Park and Clover Park and would be set aside for annual park improvements, the Park and Recreation Master Plan, implementation of emergency projects identified by the Park Condition Assessment, the conversion of the Santa Monica Airport to a ”Great Park”, possible pickleball expansion projects, and local match requirements when applying for grants, and to support ongoing playground safety upgrades.

4. Affordable Housing Commercial Linkage (AHCL) Fee – To offset the additional need for affordable housing generated by new commercial development, the City adopted the AHCL fee, per SMMC Chapter 9.68 on June 23, 2015 to contribute

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to the creation of affordable housing production and preservation. The City utilizes this funding for the production and preservation of affordable housing by issuing loans to nonprofits for the acquisition of property, new construction, or rehabilitation of existing buildings within the City. In FY 2022-23, no fees were disbursed.

FY 2022-23 Fee Activity
FY 2022-23 Affordable Housing Commercial Linkage Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$1,284,476 $1,023,326 $14,432 $0 $2,322,234
AHCL fees are one of several funding sources deposited into the Citywide Housing Trust Fund. As affordable housing projects are identified and reviewed by staff, these funds are considered for use as part of each project’s funding mix.

The available funding included in this report has not yet been dedicated to a specific property acquisition, rehabilitation, or new development. However, there are affordable housing developments in the pipeline that could utilize this funding. Final funding mixes for these developments will be decided as development proposals are refined and financial feasibility determined. As of November 2023, the City is tentatively planning on committing $1.7M of these funds to address cost increases at the 1342 Berkeley project. This project would create 13 affordable housing residences primarily targeted to young adults 18-24 years old.

5. Water Demand Mitigation Fee – On March 19, 1991, the City Council adopted Resolution 8196 (CCS) which established a one-time fee to mitigate the total daily water consumption rate projected for new development (Water Demand Mitigation Fee). The Water Demand Mitigation Fee was set at $3.00 for each gallon of daily water demand that must be mitigated. The Water Demand Mitigation Fee is required when: a new single-family residence is constructed or there is an addition of 50% or more to existing square footage; for construction of a new multi-family building or addition of new units; for construction of a new

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non-residential building or whenever there is a change of use, change or addition to new plumbing fixtures, addition of restaurant seating, or addition of square footage. On July 1, 2017, the Water Neutrality Fee replaced the Water Demand Mitigation Fee.

FY 2022-23 Fee Activity
FY 2022-23 Water Demand Mitigation Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$320,894 $0 $0 $552 $320,342
In FY 2022-23, $552 was expended on the Recycled Water Main Expansion Project.

Staff anticipates using the available balance of $320,342 to complete the Recycled Water Main Expansion Project.

This is not a close out of the developer fee. The City will continue to collect Water Demand Mitigation revenues for permit applications submitted prior to July 1, 2017, and will continue to report on it until all funds are expended.

Environmental Review
This report is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” This report is administrative in nature, and no action is being undertaken. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

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

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Prepared By: Stephanie Manglaras, Assistant City Treasurer Approved Forwarded to Council
Attachments:

A. Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) B. 121223 (001) - Resolution Adopting Five-year Findings for TIF

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(A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.

Project Fee
Residential $179.46 per unit
Hotel $4.28 per square foot
Retail $6.09 per square foot
Office $8.52 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.

FISCAL YEAR

BEGINNING FUND

BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2022-23 $ 769,644 655,413 8,623 - $ 1,433,680
No interfund transfers or loans were made during the fiscal year from this fund.

No refunds were made during the fiscal year.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.

For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:

Child Care Linkage Fee - The purpose of the Child Care Linkage Fee (CCLF) imposed and collected on development of commercial projects adding floor area of at least 7,500 square feet or multi-family residential projects development within the City since fiscal year 2011-2012 is to fund property acquisition, development, and construction of child care facilities in order to create new child care spaces. (E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Note: The percentage will be reported upon completion of the project/s.

Staff are working on ways to make funds available. Future programs may include loans or grants for those looking to develop new, licensed child care in Santa Monica.

No expenditures were incurred during this reporting period.

F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.

City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Child Care Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.

Project Fee
Single Family,
Area 1 $9,427.39 per unit
Single Family,
Area 2 $9,675.48 per unit
Multi-Family, Area
1 $3,225.16 per unit
Multi-Family, Area
2 $4,093.47 per unit
Multi-Family, Area
3 $3,225.64 per unit
Retail, Area 1 $26.05 per square foot
Retail, Area 2 $37.33 per square foot
Office, Area 1 $12.03 per square foot
Office, Area 2 $13.40 per square foot
Medical Office,
Area 1 $34.86 per square foot
Medical Office,
Area 2 $36.96 per square foot
Hospital, Area 1 N/A
Hospital, Area 2 $18.24 per square foot
Lodging, Area 1 $4.46 per square foot
Lodging, Area 2 $4.46 per square foot
Industrial, Area 1 $1.48 per square foot
Industrial, Area 2 $1.62 per square foot
Auto Sales and
Display Areas,
Area 1 $1.48 per square foot
Auto Sales and
Display Areas,
Area 2 $1.62 per square foot
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Transportation Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:

For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:

Residential (dwelling unit)
Non-Residential (sq. ft.)
Transportation Impact Fee - The City Council adopted an ordinance on February 26, 2013 that established a Transportation Impact Fee for new development and intensified land uses that will fund transportation network improvements such as new sidewalks, crosswalks, traffic signal upgrades, bus stops, transportation demand management, and bicycle facilities that are necessitated by the new trips associated with the land use change. The fees are based on a nexus study and calculated using residential units or commercial square footage. The fee is charged prior to issuance of building permits, unless state law requires the City to accept later fee payment. The Transportation Impact Fee reflects the costs associated with transportation network improvements and the amount of new auto trips that can be attributed to land use changes.

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Transportation Impact Fee
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.

FISCAL YEAR

BEGINNING FUND

BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES

ENDING FUND

BALANCE
FY 2022-23 $ 11,418,765 2,270,504 35,560 1,917,592 $ 11,807,237 Memorial Park Multi-Use Path
Olympic Blvd First/Last Mile Improvements
to Bergamot Station FY23-24
Wilshire Boulevard Safety Improvements -
Phase 2 FY24-25
Project Progress
Ongoing
Stewart-Pennsylvania Safety Enhancement
Project FY23-24
FY24-25
Santa Monica Blvd Safety Improvements FY24-25
Citywide Vision Zero Improvements via
Annual Repaving Project (Wilshire
Boulevard Safety Improvements - Phase 1,
Ocean Avenue Protected Bikeway,
Crosswalk Renewal Program, Vision Zero
Priority Intersections)
Ongoing 4th Street Enhancements - Expo Linkages,
Phase 2
FY25-26
Broadway Protected Bikeway - 5th Street
to 26th Street Ongoing
Project Name
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Note: The percentage will be reported upon completion of the project/s.

F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.

In FY 2022-23, $1,917,592 of TIF funds were expended on capital improvement project delivery, including tools to analyze crash reports to determine safety countermeasures, project design, right of way, required studies, prevailing wage monitoring, utility coordination, and construction to implement Vision Zero improvements associated with the following projects:
> 4th St Enhancements – Expo Linkages, Phase 2: $433,343 > Michigan Ave Greenway / 20th St Bike Connection: $7,647 > Pico Blvd / SMC Pedestrian Safety Improvements: $752,693 > Multimodal Signal Detection: $24,548
> Stewart and Pennsylvania Safety Enhancement Project: $21,485 > Project Management Support: $26,187
> Safe Routes at Four Schools: $290,702
> Safe Streets for 17th Street and Michigan Avenue: $197,250 > Construction Management Services: $163,737
Pearl Street Preliminary Design
Michigan Avenue Greenway 20th Street
Bike Connection Ongoing
14th Street Bikeway - Plans, Specification,
and Estimates FY25-26

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Transportation Impact Fee
No refunds were made during the fiscal year.

Additional Information is being provided regarding this fee:

Local Funds Misc. Grants Fund
$17,136 $623,723
$165,498 $590,915
$0 $0
$498,373 $2,851,421
$0 $569,758
$0 $0
$0 $0
$0 $2,711,986
$0 $6,811,454
$0 $4,000,000
$0 $522,327
$0 $0
$290,000 $0
$971,007 $18,681,584
Santa Monica Blvd Safety Improvements $680,000
Wilshire Boulevard Safety Improvements -
Phase 2
Stewart-Pennsylvania Safety Enhancement
Project
Construction Management Services for TIFFunded Capital Projects Citywide Vision Zero Improvements via Annual
Repaving Project (Wilshire Boulevard Safety
Improvements - Phase 1, Ocean Avenue
Protected Bikeway, Crosswalk Renewal
Program, Vision Zero Priority Intersections)
$1,000,000
$500,000
$808,000
$11,804,686
$650,000
Pearl Street Preliminary Design
Broadway Protected Bikeway - 5th Street to
26th Street
Olympic Blvd First/Last Mile Improvements to
Bergamot Station
$1,171,058
$376,345
$255,000
$1,331,000
$2,572,283
$1,053,000
$730,000
14th Street Bikeway - Plans, Specification, and
Estimates
Memorial Park Multi-Use Path - Plans,
Specifications and Estimates
No interfund transfers were made during the fiscal year.

Project Transportation Impact Fee
Traffic Engineering Services for TIF-Funded
Capital Projects
Total
$678,000
Michigan Avenue Greenway 20th Street Bike
Connection
4th Street Enhancements - Expo Linkages,
Phase 2
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.

The Transportation Impact Fee was established to ensure that new development pays its fair share of the costs of providing the transportation infrastructure necessary to implement the no net increase in vehicle trips originating or ending within the City during the PM peak hour goal of the Plan. By supporting this goal, it also supports Santa Monica's goals established in the adopted Land Use and Circulation Element of reducing vehicle trips and promoting walking, bicycling, carpooling, and use of public transit, in order to accommodate some desired growth and development.

The Transportion Impact Fee funds capital improvements projects including the completion of the sidewalk network, and enhanced pedestrian crossings along major boulevards, striping and signage of new bike lanes, bike paths, and bike boulevards, and installation of new bus pads, bus benches and transit only lanes.
(1) Identification of the purpose to which the reportable fees are to be put. (2) Demonstration of a reasonable relationship between the reportable fees and the purposes for which they are charged. (3) Identification of all City sources and amounts of funding to complete financing of the projects as identified by the City.

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Transportation Impact Fee
Local Funds Misc. Grants Fund
Funds Available Funds Available
Funds Available Funds Available

N/A N/A
Funds Available Funds Available
N/A Funds Available

N/A N/A

N/A N/A
N/A Funds Available
N/A FY24-25
N/A Funds Available
N/A FY23-24

N/A N/A
Funds Available N/A
Construction Management Services for TIFFunded Capital Projects Funds Available Traffic Engineering Services for TIF-Funded
Capital Projects Funds Available
Stewart-Pennsylvania Safety Enhancement
Project
Funds Available
Santa Monica Blvd Safety Improvements Funds Available
Memorial Park Multi-Use Path Funds Available
Olympic Blvd Pedestrian Improvements Funds Available
Wilshire Boulevard Safety Improvements -
Phase 2 Funds Available
Broadway Protected Bikeway Funds Available
14th Street Bikeway - Plans, Specification, and
Estimates
Funds Available
Citywide Vision Zero Improvements via Annual
Repaving Project (Wilshire Boulevard Safety
Improvements - Phase 1, Ocean Avenue
Protected Bikeway, Crosswalk Renewal
Program, Vision Zero Priority Intersections)
Funds Available
Michigan Avenue Greenway 20th Street Bike
Connection
Funds Available
Pearl Street Preliminary Design Funds Available
Transportation Impact Fee
Funds Available
Project
4th Street Enhancements - Expo Linkages,
Phase 2
(4) Identification of the approximate dates on which the funding referred to in item C is expected to be deposited into the appropriate account or fund.

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.

Project Fee
Single Family
Residential $9,841.95
Multi-Family
Residential - Studio/1
Bedroom
$5,333.41 per unit
Multi-Family
Residential - 2+
Bedrooms
$8,590.44 per unit
Retail $1.93 per square foot
Office $2.98 per square foot
Medical Office $1.64 per square foot
Lodging $4.01 per square foot
Industrial $1.67 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.

FISCAL YEAR

BEGINNING FUND

BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2022-23 $ 4,037,185 2,551,908 42,907 246,410 $ 6,385,590 For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:

City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Parks and Recreation Development Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:

Parks and Recreation Development Impact Fee - The purpose of the fee is to provide a direct funding source from new residential and commercial development to be used solely for the acquisition and development of open space, parkland, and recreation facilities to meet demand generated by occupants and users of the new development.
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Note: The percentage will be reported upon completion of the project/s. (F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. (G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.

In FY 2022-23, Parks and Recreation Development Impact Fees were expended on the following public improvements:
> $150,210 was spent on playground safety upgrades at Marine Park - This project is ongoing. > $440 was spent on the Marine Park basketball court - This project is ongoing. > $50,680 was spent on the Park Condition Assessment - This project is ongoing. > $75 was spent on Douglas Park - This project is ongoing. > $42 was spent on Beach Park #1 - This project is ongoing. > $44,963 was spent to expand the Community Gardens at Marine Park - This project is complete and used 27% Parks and Recreation Development Impact Fee funds.

In the City’s FY 2023-25 CIP Biennial Budget, Parks and Recreation Development Impact Fees have been allocated for use on two projects:
> $414,700 allocated for the reconstruction of two basketball courts at Marine Park - expected construction to start Summer 2024, completion anticipated Summer 2024.
> $250,000 allocated to address repairs and deferred maintenance in parks, identified by the priorities identified in the Park Condition Assessment.

Repairs and construction are anticipated to begin in Summer 2024.

No interfund transfers or loans were made during the fiscal year from this fund.

No refunds were made during this fiscal year.

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.

Project Fee
Retail $12.56 per square foot
Office $14.44 per square foot
Hotel/Lodging $3.96 per square foot
Hospital $7.92 per square foot
Industrial $9.71 per square foot
Creative Office $12.36 per square foot
Medical Office $8.88 per square foot
Institutional $13.18 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.

FISCAL YEAR

BEGINNING FUND

BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2022-23 $ 1,284,476 1,023,326 14,432 - $ 2,322,234
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.

For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:

City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Affordable Housing Commercial Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:

Affordable Housing Commercial Linkage Fee - A fee paid to the City by an applicant for approval of certain development projects to contribute to the creation of affordable housing production or preservation to offset additional need for affordable housing generated by new commercial development.
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Note: The percentage will be reported upon completion of the project/s.

No expenditures were incurred during this reporting period.

F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.

There are no projects underway that utilize these funds. The City is in the process of identifying eligible projects.

No interfund transfers or loans were made during the fiscal year from this fund.

No refunds were made during the fiscal year.

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.

Fee
$990.00
$315.00
$375.00
$570.00
$750.00
$900.00
To be determined by
the Civil Engineering
Plan Checker
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.

FISCAL YEAR

BEGINNING FUND

BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2022-23 320,894 $ 0 0 552 320,342 $
No interfund transfers or loans were made during the fiscal year from this fund.

No refunds were made during the fiscal year.

Non-Residential:

For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:

City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2023
Water Demand Mitigation Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
$1,127,540 was appropriated to the Recycled Water Main Expansion Project. Construction began December 2020 and is expected to be completed mid 2024.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.

The Water Demand Mitigation Fee - A one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the development. The total daily water demand for the project is calculated using standard water demand factors which have been developed by City staff.

The water demand mitigation fee is set at $3.00 for each gallon of daily water demand which must be mitigated. Effective, July 1, 2017, the Water Demand Mitigation Fee was replaced with the Water Neutrality Fee. The City will continue to collect Water Demand Mitigation revenues for permit applications submitted prior to July 1, 2017 with the following exception: Any new development applications for a building permit filed on or before November 27, 2018, that only results in a change of use of less than 6,000 square feet and/or an addition of less than 1,500 square feet, will be required to pay the water demand mitigation fee in effect as of November 27, 2018.

This fee is required when:
• Single-Family Residence -- for construction of a new residence or whenever adding 50% or greater to the square footage. • Multi-Family -- for construction of a new building or whenever new units are added. • Non-Residential -- for construction of a new building or whenever there is a change of use, changing or adding plumbing fixtures, or adding restaurant seats or square footage.

Multi-Family (condominium fees same as
apartments):
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Note: The percentage will be reported upon completion of the project/s.

In FY 2022-23, $552 of Water Demand Mitigation Fees were expended on the Recycled Water Main Expansion Project.

F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.

Single-Family
Project
Studio/Single Apartment:
1 Bedroom Apartment:
2 Bedroom Apartment:
3 Bedroom Apartment:

Duplex (2 Apartments):

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Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees) 1 City Council Meeting: December 12, 2023 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA ADOPTING FIVE-YEAR FINDINGS AS TO THE TRANSPORTATION

IMPACT FEE
WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq., authorizes the City of Santa Monica (“City”) to impose, collect, and expend mitigation fees to offset the impacts of development within the City; and WHEREAS, Section 66001(d) of the Mitigation Fee Act requires the City Council to adopt a resolution making certain findings as to any portion of development fees collected over five years ago, and each fifth fiscal year thereafter, whether such unexpended fees have been committed or uncommitted; and WHEREAS, Chapter 9.66 of the Santa Monica Municipal Code established a Transportation Impact Fee to implement the “goals, objectives, and policies of the City of Santa Monica’s Land Use Circulation Element” and address the burdens on the City’s surface transportation system, including inter alia increased trip generation, created by new development; and
WHEREAS, portions of the Transportation Impact Fee funds were collected over five years ago, or otherwise subject to the five-year reporting requirement under the Mitigation Fee Act (the “Unexpended Fees”); and
WHEREAS, the Mitigation Fee Act requires the City Council to issue findings that identify the purposes of which the Unexpended Fees are to be used, demonstrate a reasonable relationship between the Unexpended Fees and the purposes for which they

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Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees) 2 are charged, and identify the sources and amounts of funding anticipated to complete each project for which the Unexpended Fees are collected and provide approximate dates on when such funding is expected to be deposited; and
WHEREAS, the City has complied with all notice obligations under Government Code Section 66006, including publicly posting a Mitigation Fee Act Report on November 15, 2023 at City Hall and on the City’s website.

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

SECTION 1. The City Council has considered the accompanying staff report and five-year report for the Transportation Impact Fee attached as Exhibit A to the staff report.

SECTION 2. The Unexpended Fees relating to the Transportation Impact Fee will be used to fund several projects, including: the Michigan Avenue Greenway 20th Street Bike Connection; 4th Street Enhancements – Expo Linkages, Phase 2; Pearl Street Preliminary Design; Citywide Vision Zero Improvements; Broadway Protected Bikeway – 5th Street to 26th Street; 14th Street Bikeway; Memorial Park Multi-Use Path; Olympic Blvd First/Last Mile Improvement to Bergamot Station; Wilshire Boulevard Safety Improvements – Phase 2; Stewart-Pennsylvania Safety Enhancement Project; and the Santa Monica Blvd Safety Improvements as further described in Attachment A. There is a reasonable relationship between using the Transportation Impact Fee to fund these projects and the stated goal to address the burdens on the City’s surface transportation system created by new development.

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Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees) 3 SECTION 3. The five-year report for the Transportation Impact Fee identifies the sources and amounts of prior funding, or anticipated funding, to complete each project for which the fee is collected. The five-year reports also provide approximate dates on when such funding has been deposited as adopted in prior meetings, or when such funding is expected to be deposited in connection with future City Council actions.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

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Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.C
1 of 5
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations Subject: Award RFP and enter into Agreement with Lance Soll & Lunghard LLP for Professional Auditing Services
Recommended Action
Staff recommends that the City Council:

1. Award RFP# 377 to Lance Soll & Lunghard LLP, a California-based company for professional external auditing services; and

2. Authorize the City Manager to negotiate and execute a three-year agreement with a two-year option with Lance Soll & Lunghard LLP, for a total amount not to exceed $958,936 over a five-year period, with future year funding contingent on Council budget approval. Costs for the first year of the agreement will not exceed $180,620; each year thereafter contains an annual increase of 3%.

Summary
The City is beginning the final year of a 3-year contract extension with independent external auditors Lance, Soll & Lunghard (LSL) CPAs. In August 2023, staff issued a Request for Proposals for professional auditing services for fiscal years 2023-24 through 2027-28. Following an evaluation process that included staff and a member of the Audit Subcommittee (Subcommittee), staff is recommending that Council enter into a contract with Lance Soll & Lunghard LLP (LSL) for a three-year agreement with a twoyear option. The Subcommittee approved the recommendation with a 4-0 vote.

Discussion
The City engages an independent auditing firm to perform an examination of the City’s basic financial statements, Big Blue Bus Fund financial statements, Air Quality

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Improvement Program, and the City’s Schedule of Expenditures of Federal Awards (Single Audit). The independent auditor also performs agreed-upon procedures to test and report on the City’s GANN appropriation limit calculation.

On March 31, 2016, the City entered into a 5-year contract with independent audit firm Lance, Soll & Lunghard (LSL) CPAs. On October 6, 2020, the contract was extended for an additional 3 years. Fiscal year 2022-23 is the final year of the three-year extension.

As required by the City Charter, financial statements are prepared by the City and audited by its independent auditors. The City selected its current independent auditor through a competitive procurement process that included a member of the Audit Subcommittee as part of the selection committee. On August 30, 2023, the City issued a Request for Proposals for Professional Auditing Services on the City’s OpenGov system for fiscal years 2023-24 through 2027-28. Eleven prospective vendors downloaded the RFP, and eight auditing firms responded. LSL was selected by the evaluation committee based on technical knowledge, emphasis on time management and deadlines, and the ability to provide valuable insight related to best practices.

Established in 1929, LSL is a California-based certified public accounting firm that specializes in government audits and is known as an industry expert at the local, state and federal level.

Staff recommends awarding an agreement with LSL for auditing services. The first year cost is anticipated at $180,620, with a 3% increase each year thereafter. The agreement is for a not-to-exceed amount of $958,936 for five years, including a twoyear option. Costs will be allocated to various funds, where an audit is required.

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Vendor Selection
On August 30, 2023, staff issued a Request for Proposal (RFP) to seek qualified certified public accounting (CPA) firms to audit its financial statements for the fiscal years 2023-24 through 2027-28. The RFP was posted on the City’s on-line bidding site, and it was posted on the California State Municipal Finance Officers portal. Eleven prospective vendors downloaded the RFP, and eight firms submitted proposals.

Bidder Recommendation
Best Qualified Firm Lance Soll & Lunghard LLP
Evaluation Criteria Interview, ability to meet project work plan / timelines, Experience, Value added – breadth of service, Stability / references, Quality control, Cost of services and cost control.

Municipal Code SMMC 2.24.190
RFPs Received
Badawi and Associates  Clifton Larson Allen,
LLP
Eide Bailly, LLP  Lance, Soll, &
Lunghard, LLP
Macias, Gini, &
O’Connell, LLP
The Pun Group, LLP  Singer Lewak, LLP  Vasquez & Company, LLP
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
8/30/2023 City's Online
Bidding Site Santa Monica Daily Press 23 10/3/2023
Justification to Award
Based on the initial review of proposals informed by the evaluation criteria described above and criteria in SMMC 2.24.190, the evaluation committee selected three auditing firms that were unfamiliar to the City as well as our current auditor, LSL, to interview in October 2023.  As a result of this process, the evaluation committee recommended to the Audit Subcommittee Lance Soll & Lunghard, LLP (LSL), the current auditor, as the best bidder to be retained to provide auditing services for the City of Santa Monica.

Because LSL has already been performing this service for the City for eight years, the selection team was concerned about not rotating auditors at this juncture. During their presentation, LSL proposed changing the entire audit team except for the partner to give them a new perspective on the City’s audit. The current partner would be replaced by a different partner after three years due to the firm’s policy of rotating partners for client

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agencies every five years and the concurring partner would take their place.

The selection committee looked at best practices regarding the rotation of auditing firms.

Agencies contacted by staff noted that they rotated their auditors every 5 to 10 years.

Additionally, Assembly Bill 1345 requires the audit partner of a firm to rotate every 6 years. Finally, staff consulted the City’s internal auditor, Moss Adams, for its view on awarding the contract to LSL. Moss Adams was comfortable with the retention of LSL considering the change in audit personnel.

The selection committee suggested that a set of performance guidelines be issued by the City for LSL and that an evaluation of the performance of the auditors be conducted annually upon completion of the audit and feedback provided to LSL.

Environmental Review
The agreement is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The award agreement is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The award agreement will provide audit services to the City. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from various funds to award an agreement with Lance Soll & Lunghard LLP for professional auditing services.

Agreement Request
FY 2023-24
Request Amount
Amount for
Future Years
FY 2023-24 Budget
Department Accounts #
Total Contract
Amount
$180,620 $778,316 Various accounts $958,936

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Future year funding is subject to Council budget approval.

Prepared By: Randy Chow, Financial Reporting Supervisor Approved Forwarded to Council
Attachments:

A. OAKS Initiative Form
B. Staff Report #7199 - February 23, 2016 Council Meeting

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CITY OF SANTA MONICA

OAKSINITIATIVE

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

Public benefits include:

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

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

3. Purchase, sale orlease ofreal property to orfrom the City in excess of $25,000 over a 12- month period;

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

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

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

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

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

Lance, Soll & Lunghard, LLP
Name(s) of trustees, directors, partners, and officers:

Bryan Gruber, Dave Myers, Don Slater, Maria Arriola, Yana Weaver, Pam Bustos, Mike Agresti, Adam Odom, Gail Gray, Brandon Young, Lisa Favor, Ryan Domino, Kelly Telford, Jeff Boxx, Jocelyn Potter Name(s) of persons with more than a 10% equity, participation, orrevenue interest:

Prepared by: Title:

Signature: Date:

Email: Phone:

FOR CITY USE ONLY:

Bid/PO/Contract # Permit #
Bryan Gruber, Dave Myers, Maria Arriola, Yana Weaver, Pam Bustos, Mike Agresti Brandon Young Partner
November 9, 2023
[email protected] (714)672-0022

5.C.a
Packet Pg. 102 Attachment: OAKS Initiative Form (5888 : Award Agreement to Lance Soll & Lunghard LLP RFP for Professional Auditing Services) City Council
Report
City Council Meeting: February 23, 2016
Agenda Item: 3.F
1 of 5
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations Subject: Professional Auditing Services for the City of Santa Monica Recommended Action
Staff recommends that the City Council:

1. Award RFP# 62 to Lance, Soll & Lunghard, LLC, a California-based company for professional external auditing services; and

2. Authorize the City Manager to negotiate and execute a five-year agreement with Lance, Soll & Lunghard, LLC, for a total amount not to exceed $779,175 over a five-year period, with future year funding contingent on Council budget approval.

Costs for the first year of the agreement will not exceed $149,725; each year thereafter contains an annual increase of 2%.

Executive Summary
According to the City Charter, the City is required to contract with an independent qualified accountant to complete a year end audit. The contract with the City’s current independent external auditor expires in May 2016. In October 2015, staff issued a Request for Proposals for professional external auditing services for fiscal years 2015- 16 through 2019-20. Following an evaluation process that included staff and members of the Audit Subcommittee (Subcommittee), staff recommended Lance, Soll and Lunghard, LLP (LSL) as the best proposal to the Subcommittee. The Subcommittee approved the recommendation and authorized staff to present the recommendation to Council with a 4-0 vote, with Committee Member Vasquez absent. Staff recommends that the City pursue a five-year agreement with LSL, for a total amount not to exceed $779,175.

Background
As required by Section 1516 of the City Charter, a year-end independent audit is required by a qualified accountant to examine the City’s books, records, inventories and

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reports as directed by City Council. At the end of the year, a final audit and report shall be submitted by such accountant to the City Council, City management, and the general public.

Discussion
The City engages an independent auditing firm to perform an examination of the City’s basic financial statements, Big Blue Bus Fund financial statements, Air Quality Improvement Program, and the City’s Schedule of Expenditures of Federal Awards (Single Audit). The independent auditor also performs agreed-upon procedures to test and report on the City’s GANN appropriation limit calculation. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The audit also includes evaluating the overall presentation of the financial statements and evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. The objective of the audit is to express an opinion as to whether these financial statements are fairly presented in all material respects in conformity with all applicable accounting standards generally accepted in the United States of America and as promulgated by the American Institute of Certified Public Accountants (AICPA), the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations.

The City’s contract with its current independent auditor, Macias, Gini and O’Connell, LLP (MGO), ends in May 2016 for audit services related to FY 2014-15. Upon Council’s approval, staff will work to execute a contract swiftly to initiate the strategic planning of the audit to ensure reporting deadlines are met and the required auditor communications with Council, the Audit Subcommittee, and management.

Staff anticipates that the selected auditor will be present at the April Audit Subcommittee meeting to discuss planning and communication.

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Packet Pg. 104 Attachment: Staff Report #7199 - February 23, 2016 Council Meeting (5888 : Award Agreement to Lance Soll & Lunghard LLP RFP for 3 of 5
Vendor/Consultant Selection
On October 29, 2015, staff issued a Request for Proposals to seek qualified certified public accounting (CPA) firms to audit its financial statements for the fiscal years 2015- 16 through 2019-20. The RFP was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 245 vendors were notified, 25 prospective vendors downloaded the RFP, and 6 firms submitted proposals.

Vendor
The Pun Group, LLP
Brown Armstrong Accountancy Corp
Vavrinek, Trine, Day & Co, LLP
Lance, Soll & Lunghard, LLP
Vasquez & Company LLP
Macias, Gini, & O’Connell, LLP
An evaluation committee, consisting of two financial experts from the Audit Subcommittee and staff from the Finance, Big Blue Bus, and Housing and Economic Development departments, reviewed and evaluated the six proposals. The evaluation criteria, developed by staff with assistance from the City’s internal auditor, included experience, ability to meet project work plan/timelines, quality control, cost of services, stability/references, and value added, defined as the contractor’s ability to provide insight and information related to new accounting standards or industry best practices and ability to effectively communicate information to management and the Audit Subcommittee, and provide technical training or resources.

Based on the initial review of proposals, the evaluation committee shortlisted four firms and interviewed the three firms that were unfamiliar to the City on January 13, 2016. As a result of this process, the evaluation committee recommended LSL to provide auditing services for the City of Santa Monica. Staff presented the recommendation to the Audit Subcommittee on January 19, 2016 (Attachment A). The Audit Subcommittee approved the evaluation committee’s recommendation by a vote of 4-0, with Committee Member

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Vasquez absent, and authorized staff to present its recommendation to the full Council for award of contract.

Established in 1929, LSL is a California-based CPA firm that specializes in government audits and is known as an industry expert at the state and federal level. LSL was selected based on the technical knowledge of the partners and managers to be assigned to the engagement; their emphasis on time management, planning, and realizing deadlines; and their ability to provide valuable insight and information related to new accounting standards, industry best practices, and unusual accounting transactions throughout the process. They were the highest ranked proposal and on average to the other proposals their cost is comparable.

Financial Impacts and Budget Actions
The total cost of auditing services is $149,725 per year with a 2% increase each year, for a total not-to-exceed amount of $779,175 during the five-year term of the professional services agreement from FY 2015-16 to FY 2019-20. Costs will be allocated to the City’s General Fund, the Big Blue Bus Fund, the Air Quality Management District (AQMD) Fund, and other programs where an audit is required for funding. Future year funding is subject to Council budget approval.

Prepared By: Stephanie Manglaras, Accounting Manager
Approved Forwarded to Council
Attachments:

A. January 19, 2016 Audit Committee Staff Report

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5 B. Public comments

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Packet Pg. 107 Attachment: Staff Report #7199 - February 23, 2016 Council Meeting (5888 : Award Agreement to Lance Soll & Lunghard LLP RFP for City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.D
1 of 4
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Approval of Second Modification to MRI Software Contract to Administer Housing Voucher Programs
Recommended Action
Staff recommends that the City Council:

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

2. Authorize the City Manager to negotiate and execute a second modification to agreement #10786 in the amount of $385,013 with MRI Software, LLC, for software licensing, software maintenance, technical support services, as well as criminal background check services for the Housing Authority. This will result in a ten-year amended agreement with a new total amount not to exceed $705,341 (including a $20,000 contingency) with future year funding contingent on Council budget approval.

Summary
The Santa Monica Housing Authority (SMHA) uses a proprietary cloud-based software to administer six voucher programs, as well as the City’s universal basic income program for seniors, Preserving our Diversity (POD). The system allows program applicants and participants online portal access and allows staff to process payments, manage the waitlist, request criminal background checks, and operate additional management tools. Staff recommends continuing the agreement with MRI Software to assist in the administration of the City’s housing assistance programs. The existing MRI contract authorized amount is $320,328. The proposed contract extension will add $385,013 over five years for a total contract amount not to exceed $705,341.

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Discussion
The City’s Housing Authority (SMHA) uses a proprietary cloud-based software from MRI to administer its six housing voucher programs, as well as the POD program for seniors, serving approximately 1,900 households. MRI’s software package includes online portal access for program participants, tenant and housing provider data and records required by the federal government, and components for payment processing, waitlist management, and criminal background checks.

The existing licensing and software contract with MRI expires on January 31, 2024.

HAPPY Software was initially selected to provide waitlist management with an online application system, after a Request for Proposals was issued March 16, 2010 (MRI Software purchased HAPPY Software in 2018). In 2012, the SMHA adopted the remaining software modules after Happy Software proved to provide a superior product.

The continued administration of the Housing Authority’s six voucher programs, as well as the POD program, depends on a contract extension. The proposed contract extension would allow uninterrupted use of the software to support administration of the City’s voucher programs, including monthly assistance for approximately 1,900 households, criminal background check services, and ongoing software maintenance and technical support services. MRI’s software and support services has performed well during the existing contract period and its cloud-based approach proved crucial during the Covid pandemic. Additionally, this year staff researched other possible vendors specializing in federal housing voucher administration and found that other software programs either lacked the range of features that MRI offers or will not provide material cost savings. For example, MRI’s package includes an integrated waitlist module, which facilitates a streamlined approach to voucher program administration.

MRI voucher administration software also helps to ensure compliance with federal regulations and audits associated with the federally-funded housing voucher programs.

The cloud-based nature of the software provides security for confidential tenant information and reduces the demands on City staff to support software upgrades and ongoing maintenance. Staff recommends continuing the MRI software with a budget not

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to exceed $57,111 next year with 3.5% annual increases for a total cost over the fiveyear period not to exceed $330,013 (including a $20,000 contingency).

Additionally, the SMHA is required to perform criminal background checks for participants in its voucher programs. In 2020, SMHA added a new feature offered by MRI called ResidentCheck that runs background checks. The SMHA switched from National Credit Reporting to save costs and due to the integration of ResidentCheck within the MRI software package which reduces staff time spent on background checks.

Continuing ResidentCheck is estimated to cost $9,000 for the next year and is estimated to increase by $1,000 every year after for a total cost over the five-year period not to exceed $55,000.

Past Council Actions
Meeting Date Description
1/14/2020 Approved Modification to MRI Software Contract for additional Software Support and Services
12/18/2018 Approved HAPPY Software Contract with MRI Software, LLC, for License, Maintenance, and Support to Administer Housing Voucher Programs
Environmental Review
The agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement will continue to provide the City with voucher program software services for administrative functions. Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.

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Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Housing Authority Fund to award an agreement with MRI for software licensing, software maintenance, criminal background check services and technical support services.

Contract Modification Request
Agreement # Current
Authorized
Amount
FY 2023-2024
Modified
Request Amount
Future
Years
Department
Account #
Total Revised
Contract
Amount
10786 $320,328 $29,848 $355,165 12420002.
529230
$705,341
Future year funding is contingent on Council budget approval.

Prepared By: Lupe Madrid, Executive Administrative Assistant Approved Forwarded to Council
Attachments:

A. January 14, 2020 Staff Report (Web Link)
B. December 18, 2018 Staff Report (Web Link)
C. OAKS Initiative Form

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CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.

This information is required by City Charter Article XXII—Taxpayer Protection.

It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after theofficial votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of SantaMonica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees.

Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seeking a “publicbenefit.” If the“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.

5.D.c
Packet Pg. 112 Attachment: OAKS Initiative Form (5926 : Housing Authority Software (HAPPY) Contract Renewal)

CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

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

Prepared by: Title:

Signature: Date:

Email: Phone:

Permit #
FOR CITY USE ONLY:

Bid/PO/Contract #
Roman Telerman Chief Financial Officer
[email protected] 800-321-8770
HAPPY Software, LLC, an MRI Software company
Patrick J. Ghilani (CEO)
John A. Ensign (President and Chief Legal Officer)
Roman Telerman (Chief Financial Officer)
MRI Software LLC (100% ownership interest) - no individual person owns a 10% or greater direct or indirect interest.

Roman Telerman 11/8/2023

5.D.c
Packet Pg. 113 Attachment: OAKS Initiative Form (5926 : Housing Authority Software (HAPPY) Contract Renewal) City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.E
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street Services
Subject: Award RFP and Enter into Agreements with GCAP Services, Inc. and GAFCON for Prevailing Wage and Certified Payroll Monitoring Services Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 366 to GCAP Services, Inc. as the primary consultant, and GAFCON, Inc. as the secondary consultant, to provide prevailing wage and certified payroll monitoring services for public works projects for all City Departments.

3. Authorize the City Manager to negotiate and execute an agreement with GCAP Services Inc., in an amount not to exceed $1,632,306, (including a $148,391 contingency) (for five years and rate increases of 5% in years 3, 4, and 5) for a total amount not to exceed $1,632,306 over a 5-year period with future year funding contingent on Council budget approval.

4. Authorize the City Manager to negotiate and execute an agreement with GAFCON, Inc., in an amount not to exceed $1,396,356 (including a $126,941 contingency) (for five years and rate increases of 3% in years 2,3,4, and 5) for a total amount not to exceed $1,396,356 over a 5-year period with future year funding contingent on Council budget approval.

Summary
The City of Santa Monica is required to comply with California law SB 854 which states that municipalities must monitor and enforce prevailing wage compliance for public works projects. The City has contracted with a professional labor compliance firm to provide certified payroll monitoring services for City projects subject to prevailing wage requirements since this law went into effect. Services generally consist of performing

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certified payroll compliance monitoring, on-site interviews of workers, electronic certified payroll reporting (eCPR), verification of apprenticeship reporting, and enforcement if needed. City staff do not possess the required expertise and do not have capacity to conduct such monitoring. Staff recommends executing an agreement with GCAP Services, Inc. for an amount not to exceed $1,632,306 over five years as the primary consultant. The basis for the first year's cost of $279,450 is 3,000 consultant hours, then increased in year’s 3,4, and 5 by 5% annual rate increases. Concurrently, staff recommends executing an agreement with GAFCON, Inc. as the secondary consultant for an amount not to exceed $1,396,356 over five years to facilitate the transition to the primary consultant and to act as a backup consultant in the event the primary consultant is unable to fulfill its contractual obligations. The basis for the first year’s cost of $239,100 is 3,000 consultant hours, then increased annually by 3% in year’s 2,3,4, and

5. Staff intends to use the services of one consultant, except for an initial transitional period during which both consultants would work together to transition services from GAFCON, Inc., our current prevailing wage consultant, to GCAP Services, Inc. Staff does not anticipate expending the full contract authority of the secondary vendor.

Discussion
Under California law SB 854 the City is required to pay prevailing wages for Public Works Projects that exceed $15,000 for repair/maintenance and $25,000 for new construction. SB 854 defines prevailing wage requirements and establishes responsibilities for prevailing wage payments. This law requires prevailing wage payment for certain labor categories identified in the State of California Labor Code (commencing in Section 1770 et seq.) when employed for any work on or in the execution of a Public Works project. The City must 1) award public works bids in compliance with the law and report these bid awards to the California Department of Industrial Relations (DIR); and 2) ensure contractors/subcontractors register with the DIR and provide certified payroll records to the Labor Commissioner.

City prevailing wage projects include construction and maintenance of public buildings, parks, public work infrastructure, and other City facilities, and would include projects funded in part or in whole by Federal or State grants. Each public works project varies in

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size and scope, from large projects with over 80+ subcontractors to smaller scale projects with one or two subcontractors. The City does not have the staff capacity and expertise to manage the over 145 active citywide projects which require monitoring via the State of California’s Department of Industrial Relation’s database.

The selected consultant(s) would ensure that prime contractors and subcontractors comply with all California Labor Codes as outlined by California State Department of Industrial Relations (DIR). During the span of a project, GCAP Services, Inc. would assist with the following:
• Review and audit of certified payroll records to assure compliance with laws/regulations.
• Compliance with apprenticeship laws/regulations and training fund contributions. • Identifying labor compliance violations and resolving issues and calculating applicable penalties/fines.
• Conducting on-site inspections and worker interviews. • Hosting pre-construction labor compliance meetings with City contractors. • Providing the City progress payment and withholding recommendations based on the contractor’s compliance with labor laws/regulations through project close-out. • Monitoring Federal Davis-Bacon Act prevailing wage compliance requirements, as necessary. The Davis-Bacon Act requires all public works projects that are funded partially or wholly with federal funds pay local prevailing wage rates.

The City typically has five to seven active large, multi-million dollar federally or statefunded grant projects which require adherence to federal and state prevailing wage laws. Additionally, larger projects that require continual monitoring include: the Arcadia Water Treatment Facility Expansion, the Annual Water and Wastewater Main repair and replacement projects, and numerous Mobility Division projects. These are larger projects that require significant labor compliance and monitoring. The selected firm(s) would also manage the City’s labor compliance program for Prop 84 state-funded projects which includes annual reporting to the DIR. Prop 84 is a state-bond program

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that funds water quality, supply, waterways, flood control, and water pollution capital projects.

Anticipated future large-scale projects include improvements to water reservoirs, the Santa Monica Pier capital improvements, and the pier bridge replacement.

A formal solicitation was conducted and staff recommends GCAP Services, Inc. as the primary consultant to provide prevailing wage and certified payroll monitoring services under a five-year contract. Staff also recommends awarding a contract to GAFCON, Inc. to allow for the smooth transition of labor compliance functions from the incumbent consultant to the new consultant, and from paper copies of certified payroll records to an industry standard electronic certified payroll software. The redundancy in consultants would also ensure a continuity of mandated labor compliance monitoring if, for any reason, GCAP is unable to continue providing the services. The City currently has 145 citywide projects that are registered with the California Department of Industrial Relations (DIR) for labor compliance monitoring. Staff intends to use the services of one consultant (GCAP), except for an initial transitional period of up to three months during which time both consultants would work to ensure the successful transition of services from GAFCON, Inc. to GCAP Services, Inc. and does not expect to expend the full authority with both vendors.

Environmental Review
The agreement is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The agreement is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement would provide the City with payroll monitoring services. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Vendor Selection

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Bidder Recommendation
Best Qualified
Person/Firm
GCAP Services, Inc., primary vendor
GAFCON, secondary vendor
Evaluation
Criteria
Training/credentials/experience, competence/skill, capacity/ability to perform services promptly, sufficiency of financial/other resources, character/reputation, ability to provide future services as needed and price.

Municipal Code SMMC 2.24.190
RFP Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
07/11/2023 City's Online
Bidding Site
Santa Monica Daily
Press
22 09/07/2023
Best Bidder Justification
An evaluation committee comprised of staff from the Public Works Department evaluated the proposals received. GCAP Services, Inc. was deemed the best qualified consultant (primary) to provide prevailing wage and certified payroll monitoring services based on receiving the highest scores on the overall proposal, experience, and references. Scoring for this solicitation was based on the best qualified firm and not solely based on the lowest bid. They have provided quality services to other agencies and cities, including City of Anaheim, Los Angeles County Metropolitan Transportation Authority (Metro), and Southern California Regional Rail Authority (Metrolink). GCAP’s ability to closeout prevailing wage projects in a timely manner, respond to contractors’ labor compliance questions, provide technical assistance, and conduct labor compliance audits as needed, are all reasons they are recommended as the best qualified and primary consultant.

Staff recommends GAFCON, Inc. as secondary vendor based on overall qualifications and scoring criteria that were listed in the solicitation, including understanding of work, qualifications, references and fee. GAFCON has competitive labor rates and has Submittals Received
Autocene, Inc. Destination
Enterprises
GAFCON GCAP Services,
Inc.

Pacific Resources
Services The Headcount TSG, Enterprises Willdan Engineering

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experience with cities and agencies of similar size including City of Santa Monica, City of Beverly Hills, City of San Marcos, and San Diego Association of Governments.

Financial Impacts and Budget Actions
Staff seeks authority to award a contract with GCAP Services, Inc. as primary consultant and GAFCON, Inc. as secondary consultant to provide prevailing wage and certified payroll monitoring services for public works projects for all City departments.

Funds are available within existing budgets and would be charged to the appropriate Division or project account based on request for oversight and labor compliance services.

Contract Requests (Primary – GCAP, Secondary – GAFCON)
Vendor FY 2023-24
Request
Amount
Future
Year’s
Amounts
Department/CIP Account
#
Total
Contract
Amount
GCAP
Services, Inc. $279,450 $1,352,856 Various based on projects $1,632,306

GAFCON,
Inc. $239,100 $1,157,256 Various based on projects $1,396,356 Future year funding is contingent on Council budget approval.

Prepared By: Steven Hull, Principal Administrative Analyst Approved Forwarded to Council
Attachments:

A. Oaks Initiative Form - GCAP
B. Oaks Initiative Form - GAFCON

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CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

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

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

Bid/PO/Contract # ____________________________ Permit # ___________________________

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Packet Pg. 120 Attachment: Oaks Initiative Form - GCAP (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll

CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

Name(s) of trustees, directors, partners, and officers of the ABC Corporation Name(s) of persons with more than a 10% equity, participation, or revenue interest:

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

Bid/PO/Contract # ____________________________ Permit # ___________________________

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Packet Pg. 121 Attachment: Oaks Initiative Form - GCAP (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll

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Packet Pg. 122 Attachment: Oaks Initiative Form - GAFCON (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll

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Packet Pg. 123 Attachment: Oaks Initiative Form - GAFCON (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Authorize the City Manager to Enter into a License Agreement with Cirque du Soleil
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities), Section 15304 (Minor Alterations to Land), and Section 15323 (Class 23 Normal Operations of Facilities for Public Gatherings) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Authorize the City Manager to negotiate and execute a license agreement with Cirque du Soleil to use a portion of Lot 1N from October 1, 2024 to January 24, 2025.

Summary
In accordance with the 1550 PCH Parking Lot Cultural/Entertainment Event Policy, the City issued a call for proposals for cultural or entertainment events in Lot 1-North located at 1550 Pacific Coast Highway, the surface parking lot directly north of the Pier.

Cirque Du Soleil (Cirque) submitted a proposal for the 2024-2025 event season for its "Kooza" production. The total occupation period, including move in and tear down, would be October 1, 2024 through January 24, 2025, with performances from October 22, 2024 to Jan 5, 2025 (approximately 10 weeks). Cirque du Soleil is a Canadian entertainment company founded in 1984 that produces world-renowned fixed and traveling circus arts shows featuring acrobatic and artistic performances. Cirque first performed next to the Santa Monica Pier in 1987. More recently, Cirque has staged productions in 2009, 2012 and 2014.

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The proposed rental fee revenue to the Beach Fund for Cirque’s 2024-2025 season is estimated to be $1,547,882, derived from a square foot fee for the amount of space occupied plus the amount to cover lost parking revenue. Funds would directly support beach operations and maintenance. Additional anticipated economic benefits to the City include patron parking revenues at the City’s parking structures, purchase of local supplies and services by Cirque for its operation, accommodations for its staff and performers, increased collateral spending by Cirque visitors in local restaurants, hotels and other businesses and the generation of additional sales and transient occupancy taxes. To mitigate potential impacts to neighboring businesses on the Pier, Cirque proposes to provide direct and in-kind assistance in addition to other mitigation measures.

Discussion
The Council-approved 1550 Lot Cultural/Entertainment Event Policy was initiated as a means to enliven the beachfront and attract visitors during the slower times of the year.

It was also intended to offer unique cultural and entertainment opportunities to the community and to generate economic benefits for the City as well as tourism and hospitality sectors.

The City issued a Request for Proposals (RFP) in June 2023 and received three responses by the deadline from Cirque du Soleil, Spirit Awards and LA Wine and Food Festival. The evaluation panel consisted of representatives from Santa Monica Travel and Tourism, Santa Monica Pier Corporation, Office of the City Manager, and Office of Pier Management. The evaluation panel reviewed and rated the proposals using the evaluation criteria published in the RFP. Key considerations for the evaluation panel in the review of the proposals included the degree to which an event offers a unique cultural or entertainment experience, demonstrates clear measurable economic benefit to the City and local businesses, including Pier lessees, contributes to the Beach Fund, addresses traffic and parking impacts, and minimizes environmental impacts. The Independent Spirit Awards and LA Wine & Food Festival sought a February 12 to March 8, 2024 occupancy in the 1550 lot and Council authorized the negotiation of a license agreement on November 14, 2023.

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As part of the review and assessment of the Cirque’s proposal, the evaluation panel asked for more specific information and raised a number of issues in several key areas that needed to be addressed including: the initial timeframe proposed by Cirque, the need for comprehensive marketing and hotel packaging, more details on parking and transportation, and efforts to address neighboring business and residential impacts. The evaluation panel requested certain modifications to Cirque’s proposal to better align with the objectives of the extended event’s policy. This resulted in Cirque’s shifting its proposed timeframe from spring/summer to the City’s off-peak visitor period of fall/winter as well as several other adjustments to better address concerns expressed by stakeholders further described below.

Based on Cirque’s responses and commitment to have conditions incorporated into a license agreement, staff has determined that the proposal as presented below is responsive to the key criteria and will provide clear economic benefit to the City and local businesses, and enhance the Santa Monica brand and attractiveness as a major event venue -- contingent upon full execution of the recommended license agreement conditions and mitigations as outlined in the Key Terms and Proposed Mitigation section of this report.

At its July 25, 2023 meeting, Council Item 16 -C directed the City Manager to “explore and propose policy and regulatory changes needed to elevate Santa Monica’s attractiveness as a major event venue. Positioning Santa Monica as a sought-after location to attract both local and international events would facilitate the City’s ability to proactively capitalize on several upcoming opportunities and support local businesses, stimulate economic recovery, further promote tourism, and provide new revenue sources to fund community programs and services for Santa Monica residents”.

Cirque has earned a reputation as a producer able to deliver world-class cultural and entertainment shows. Cirque’s return could provide new opportunities for the City’s businesses to showcase themselves especially during the holiday season as well as deliver a positive and memorable experience for the community as Cirque’s production

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in Santa Monica is geared not only for tourists, but for those who live and work here.

Cirque would also be required to develop and gain City approval of a comprehensive Parking and Traffic Management Plan that could be used as a model for other large events the City hopes to attract in the future.

Following Cirque’s 2009 Santa Monica stay, the City commissioned an economic impact study which concluded the net fiscal benefit in the City was approximately $16.7 million (equivalent to $22.5 million in 2023 dollars) including direct and indirect economic benefit such as the rental fee income to the Beach Fund; spending by visitors in restaurants, hotels, shopping, parking and transportation; creation of additional employment opportunities during the period of the event; and hotel room and local sales tax revenue generated from those attending the event. The 2009 economic impact study noted $130,000 in sales and transient occupancy tax increases to the General Fund. For the Pier, the study reported Cirque generated an overall net gain for pier businesses as well, predominately for food and beverage businesses, however entertainment businesses saw a 1 percent reduction in revenues during the period of Cirque’s occupation. Cirque’s commitment and efforts to provide economic gains to the City as a whole as well as to Pier merchants, especially those who in the past may have sustained negative impacts, are described below.

Key Terms and Mitigation Measures
• The site Occupation Period will run from October 1, 2024 to January 24, 2025. • The Performance Period will be from October 22, 2024 to January 5, 2025, with shows Wednesday through Sundays (dark Mondays and Tuesdays). • Cirque will occupy a similar footprint as in 2014 as shown in Attachment C. • In addition to the site rental fee, Cirque will also be responsible for the payment of fees for all permits, licenses and services required to support the event.

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• Cirque will update and follow the Parking and Traffic Management Plan as approved by the City which may include, measures not limited to shuttling guests from off-site parking to the site, designating Uber and Lyft drop-off points and collaboration with Big Blue Bus and Metro to incentivize guests to use public transit. The City’s mobility team will work with Cirque on updating and developing new transportation demand strategies that can be tested and refined in advance of the upcoming reconstruction of the Pier Bridge in 2025 and the Summer Olympics in 2028. These efforts can help to reduce future parking and traffic impacts for major events. Also, since Cirque’s prior visit to Santa Monica, the emergence of ridesharing and the arrival of the Expo light rail has reshaped the transportation landscape. Furthermore, the City increased parking inventory within the 1550 lot when a new paved section known as the Deauville site was added in 2020.
• Cirque will commit, whenever possible, to implement a “Buy Local” policy for all its products and services while performing at the Santa Monica Pier. • Cirque will comply with all sustainability requirements and practices including a recycling and food waste program and other environmental and conservation measures.
• Cirque will comply with all noise regulations and will utilize noise monitoring devices to ensure compliance. Performances will also conclude no later than 10:00pm.
• To address neighborhood questions and impacts, Cirque will establish an on-site representative from set-up through demobilization to responsively handle information requests, complaints and monitor noise.

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Cirque has agreed to the following additional business accommodations which will be incorporated into the proposed License Agreement:
• Cirque commits to investing $300,000 in the local media, including print and outdoor advertising. These local expenditures include but are not limited to local Public Relations, media stunts, and activities with the Santa Monica Pier Corporation (SMPC), SM Travel and Tourism (SMTT), as well as the Santa Monica Chamber of Commerce and Downtown Santa Monica (DTSM). • Cirque will commit to cross promotions with the SMPC, Pier tenants, and SMTT and integrate special Pier/local partner offers on the Cirque website including the ability for guests to make ‘add-on’ purchases from Pier businesses that wish to participate. For example, when purchasing a ticket, a guest would be able to purchase certificates for a meal or activity on the Pier. If a guest chose to purchase ‘add-ons’ Cirque would remit the revenue to the businesses. Cirque will also commit to provide tickets to partners and tenants for their own marketing and public relations efforts.
• Cirque will commit to using a 3rd party vendor to facilitate package deals with hotels and tickets to encourage guests to ‘stay a while’. • Cirque will provide a grant of $50,000 to the SMPC that will support free community programing on the Pier and have artists perform Pier visits prior to and during the show’s run.
• Cirque will provide a grant of $100,000 to the SMPLA to use at their discretion. • Cirque will work with Pacific Park on cross promotions and value-added partnerships.
• Cirque will continue its partnership with the Police Athletic League (PAL) and other local organization supporting students and at-risk youth.

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• Cirque will offer various ticket price points including discounted children’s tickets, and family package tickets.

Outreach and Commission Action
Public outreach included Cirque’s presentation to the Santa Monica Pier Lessee Association (SMPLA) on October 3, 2023, and a presentation to the Santa Monica Pier Corporation (SMPC) Board of Directors on November 20, 2023. Attendees at the SMPC board included board members, a representative from the SMPLA and representatives from Pacific Park. A notice was sent to residents and businesses in the area inviting them to the meeting but no residents or other businesses were in attendance.

SMPLA’s representative shared that it opposes Cirque’s return. Its preference was for the production to conclude and leave the lot prior to the winter holiday season or locate instead to the Santa Monica Airport. Both requests were evaluated by Cirque representatives as difficult to accomplish due to significant operational and logistical issues. The SMPLA position was that their support for the return of Cirque could only occur with certain accommodations, some of which have been accepted by Cirque and are described in the staff report and proposed to be incorporated into the License Agreement as conditions of performance.

The Santa Monica Pier Cart Association, at their meeting on November 14, 2023, voted to unanimously support the Cirque du Soleil return after concluding the greater good for the business economy as a whole outweighed concerns.

While the SMPC board did not make a motion to forward to Council, board members expressed many concerns about Cirque’s proposed stay including the reduced parking availability for pier visitors and the potential negative impacts on Pier businesses including on its own organization. A concern was expressed that the SMPC could be setback financially even with the $50,000 grant from Cirque if they could not book as many event rentals on the Pier deck during the same period. Other members hoped the

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Pier Corp could be made whole if there was a loss of revenue attributed to Cirque’s stay and that Cirque and the tenants could continue to have more discussions.

Environmental Review
The agreement for Cirque events is categorically exempt pursuant to Section 15301 (Class 1 - Existing Facilities), Section 15304 (Class 4 - Minor Alterations to Land), and Section 15323 (Class 23 - Normal Operations of Facilities for Public Gatherings) of the California Environmental Quality Act (CEQA) guidelines. Section 15301 provides exemption (Class 1) for the operation, repair, maintenance, or minor alteration of existing public or private structures or facilities, involving negligible or no expansion of use. Section 15304 (Class 4) provides exemption for the temporary use of land having no permanent effect on the environment. The events qualify as a Class 1 and Class 4 exemption as they would occur on an existing parking lot that the City will license for a temporary use, involving no expansion of an existing use. Section 15323 exempts the normal operations of existing facilities for public gatherings for which the facilities were designed, where there is a past history of the facility being used for the same or similar kind of purpose. The existing lot 1N (1550 PCH) Parking lot has been previously used for special events, and therefore, the proposed agreement for the event is categorically exempt from CEQA.

Past Council Actions
Meeting Date Description
7/25/2023 Approved Item 16 C Request by Mayor Davis, Mayor Pro Tem Negrete and Councilmember Zwick that the City Council direct the City Manager to explore and propose policy and regulatory changes needed to elevate Santa Monica's attractiveness as a major event venue. Positioning Santa Monica as a sought-after location to attract both local and international events would facilitate the City’s ability to proactively capitalize on several upcoming opportunities and support local businesses, stimulate economic recovery, further promote tourism, and provide new revenue sources to fund community programs and services for Santa Monica residents.

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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. The City will receive $1,547,882 in revenues for the use of lot 1N.

Revenues will be deposited in Beach Fund Account 11700001.415290. Any budget adjustments will be incorporated as part of the FY 2024-25 Exception-based Budget process, which will be presented to Council in May 2024.

Prepared By: Elana Buegoff, Pier Administrator
Approved Forwarded to Council
Attachments:

A. 7/25/2023 Item 16-C (Web Link)
B. Economic Impact Report 10.11.10
C. Proposed Footprint
D. Signed_OAKS_INITIATIVE_2023
E. Written Comments
F. PowerPoint Presentation

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Report
Economic Impq act of Cirque du Soleil on the City of Santa Monica P df repared for:City of Santa MonicaPrepared by: Prepared by:Economics at AECOM &Lauren Schlau ConsultingJune 9, 2010Revised October 11, 2010 Project No. 18475

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License Executive Summary

5.F.b
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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License Executive Summary - Cirque du Soleil Economic Impact

i
Executive Summary
Background
In recent years the City of Santa Monica has initiated booking various large scale special events to support the city’s economic development and cultural arts goals.

The City Council adopted a policy and guidelines authorizing licensing a portion of the 1550 PCH lot for extended periods. The Council determined that during off-peak periods, booking events near the Santa Monica Pier that target a regional market was an effective way to draw a larger audience to the area and thereby boost Pier attendance as well as to provide needed revenue for beach maintenance and other public beach amenities. Such events have included the first North American run of Canada’s Cirque du Soleil in 1987, regular Cirque du Soliel runs between 1987 and 1999, as well as the Ashes and Snow photography experience in 2006. The City recently contracted for a return of Cirque du Soleil (CDS), to perform from October 16 – December 20, 2009.

These events have in common their location, on the 1550 PCH Beach Lot just north of the famed Santa Monica Pier. The 1550 Lot is a primary parking lot for the Santa Monica Pier and for beach goers. The event venues eliminate a portion of the lot’s available parking.

Recognizing this issue, the City included parking mitigations in their licensing agreement with CDS. CDS patrons were directed to alternative parking, with free shuttle service, in the Civic Center structure or the 2030 Beach lot, a few blocks from the Pier. Pier and beach visitors were directed to additional parking at the Civic Center area (former Rand Lot) across from the Pier. In addition to the parking mitigation efforts, CDS provided a variety of marketing promotions and funds to assist the Pier and Santa Monica Convention and Visitor Bureau.

Many Santa Monica businesses support the return of CDS, recognizing that it generates economic and community benefits. However, some of the Pier lessees were concerned that the reduced 1550 Lot parking, despite the City’s parking mitigation strategies noted above, would displace its visitors and reduce visitation during the three month CDS run and occupation of the 1550 Lot. One such key Pier tenant was Pacific Park, which expressed concern about potential negative financial impact on its business due to the loss of parking immediately adjacent to the Pier.

As such, when approving the CDS license agreement, the City Council directed staff to conduct an economic impact study of the CDS 2009 production run. The City selected and retained the consulting team led by Economics at AECOM (AECOM) to analyze the net economic impact and fiscal benefits of CDS’s 2009 performance run of “KOOZA”. The AECOM team includes Lauren Schlau Consulting (LSC), retained to conduct a visitor intercept survey during the “KOOZA” event.

Purpose of the Study

5.F.b
Packet Pg. 135 Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License Agreement with Cirque du Soleil) Executive Summary - Cirque du Soleil Economic Impact

ii
The City of Santa Monica retained Economics at AECOM to conduct a comprehensive economic impact study of hosting CDS taking into consideration both positive and negative impacts, based on actual visitor data collected during the event period.

In undertaking this study, the City and related parties sought to understand:
• Overall net economic impacts of the CDS event, including revenues to the City, income to the Pier lessees, and overall economic impacts to the Santa Monica economy;
• The demographic and visitor profile of CDS and Pier visitors; • Whether CDS attracted a broader cross-section of patrons to Santa Monica than would visit otherwise; and,
• To what extent did CDS’s occupation of the 1550 Lot impact Pier visitors’ parking experience.

Analysis Approach
The consultant team has devised an analysis methodology that is objective and transparent with the primary aim of answering the questions posed by the City and the Pier Lessees.

One of the challenges in an analysis that attempts to quantify the impact of ‘lost revenues’ is the fact that there is no direct way one can quantify the visitors that ‘did not come’.

Additionally, any ‘lost business’ inventory maintained by individual businesses are inconsistent to be used in a comprehensive model. As a result the team’s approach to the project involves a creative and robust analytical framework that relies upon consistent data sources. The analysis framework includes the following components to arrive at the final conclusions.
a. On-Site and Online Survey – AECOM, with the help of LSC conducted a series of surveys targeted specifically at Pier and CDS visitors. The purpose of the survey was to understand the profile of event patrons, Pier visitor experiences and spending patterns. Approximately 300 on-site surveys were conducted at the Santa Monica Pier during November and December of 2009. These interviews were spread out during different days of the week and different time of day as well as varying locations on the Pier. In addition an online survey was conducted of more than 1,200 CDS attendees in two waves. A key outcome of the survey was determining the magnitude of sales at the Pier and within Santa Monica that can be attributed to unique CDS visitors.
b. Collect CDS Operating Expenditures – AECOM collected information on the CDS expenditures as part of the “KOOZA” event. These were adjusted to account for expenditures that were locally spent by CDS in the City of Santa Monica as well as direct fiscal contributions by CDS to the City. These include expenses related to local contractors, local labor and wages, utilities and other purchases, catering and accommodation etc.

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c. Gross Economic Impacts – The findings of the above two steps allow us to define the gross economic and fiscal impacts resulting from the CDS event on the City of Santa Monica. While the survey provides an estimate of spending by CDS patrons in the City of Santa Monica (at the CDS event, the Pier and elsewhere), the additional data provides us with the direct expenditures incurred by CDS as part of its event operations. Appropriate economic multipliers are applied to these direct impacts to estimate indirect and induced impacts. AECOM has used the IMPLAN input-output model to derive economic multipliers. Note that this impact number is not adjusted for any potential loss in revenues that Pier businesses may have suffered during the event period.
d. Establish Baseline Performance of Pier Businesses – AECOM collected actual sales information shared by the Pier Lessees with the City (using appropriate confidentiality protocols) over the past five years. This information was used to establish a baseline performance threshold for Pier businesses. In effect this baseline is the order of magnitude expected business volume of Pier Businesses in the absence of CDS during the months of September through December of 2009. e. Determine Change from Baseline – Comparing actual sales at the Pier to the anticipated baseline sales for the event period calculated from previous years’ trends, provide the net change in baseline revenues resulting from CDS. The net change must be adjusted for sales attributed to CDS patrons (from the survey), to estimate the change in baseline (non-CDS) revenues during the event period. f. Define Net Economic Impacts – Net economic impacts are generated by adjusting the gross impacts calculated earlier for any net reduction of revenues as indicated in the step above.
g. Qualitative Assessment of Impacts – Although the quantitative analysis is able to determine the overall impacts on the City and the Pier, it is unable to define any of the nuanced implications of the event to the individual businesses located on the Pier. It is unlikely that the impacts are evenly distributed across all businesses and are likely to vary by type of business, their location on the Pier and other factors.

The consultant team met with Pier Lessees individually and as a group to understand the event impacts on their individual businesses. The qualitative information gathered through these meetings, interviews and written communications are included as part of this report.

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Summary of Key Findings
Survey Findings
The on-site and online surveys were able to uncover a number of key characteristics of Pier and CDS patrons, their spending patterns, and perceptions of the overall experience in the City of Santa Monica.

A key finding of the survey was that the CDS attendee and the typical Pier visitor were distinctly different in many respects. Additionally, the survey found that although the share of CDS visitors spent selectively at the Pier was small, those who did spend had a much greater per capita expenditure compared to the typical Pier visitor. Another key finding was that parking was a much lesser concern among the visitors surveyed, both at the Pier and at CDS. Finally, an overwhelming majority of the respondents found their experience in Santa Monica to be extremely satisfying and would visit again.

In terms of visitor origin, the typical Pier
visitor came from further away compared
to the typical CDS attendee. Almost 84
percent of CDS attendees came from Los
Angeles County compared to only 50
percent of Pier visitors. In addition, 20
percent of CDS visitors were actually
Santa Monica residents, compared to only
6 percent of Pier visitors. Given the $100
ticket price, CDS visitors were older and
higher income compared to the typical
Pier patron.

Approximately 86 percent of CDS
attendees stated that CDS was their main
purpose. When this survey figure is
applied to the estimated 180,000 actual
CDS visitors, CDS induced a total of
155,000 visitors to Santa Monica, and of
those 21 percent, or 38,600 visitors ended
up visiting the Pier as well – this reflects
the induced visitation to the Pier as a
result of the “KOOZA” event. Of these
CDS attendees who also went to the Pier,
60 percent ended up spending at the Pier. On a per capita basis, spending was comparable between CDS attendees who visited the Pier and visitors whose main purpose was to visit the Pier, $29.80 and $30.60 respectively. However, if you consider the per group expenditure of only those who spent money, CDS groups spent $98.50 relative to $75.00 by Pier visitor groups.

Activities at the Pier were significantly different for visitors whose main purpose was to attend CDS versus visitors whose main purpose was to come to the Pier. As would be 6%
46%
20%
16%
12%
Pier Visitor Residence
City of Santa Monica
Other City within Los
Angeles County
California outside L.A.

County
Another U.S State
outside California
Country outside the U.S.
20%
64%
13%
2% 0%
CirqueVisitor Residence
City of Santa Monica
Other City within Los
Angeles County
California outside L.A.

County
Another U.S State
outside California
Country outside the U.S.

Source: LSC, AECOM

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5.0%

15.6%

27.8%

22.0%

13.2%

5.0%

4.8%

3.8% 2.7%
CirqueVisitor ParkingLocations
On the Pier
1550 Beach Lot
Civic Center parking
structure
2030 Beach Lot (# 4 South)
(Ocean at Bicknell)
Other parking structure or
lot
Santa Monica Place mall
On the street or elsewhere
Surface lot across Ocean
Avenue
Another SM Beach parking
lot
expected, those mainly visiting the Pier engaged in many more activities on the Pier than those who mainly attended CDS, however far more of the CDS attendees ate at Pier restaurants than did mainly Pier visitors. The most significant difference in Pier activities was for Pacific Park where 32 percent of Pier goers went as opposed to only 3 percent of CDS attendees.

Clearly, the “KOOZA” event provided an opportunity to showcase the Pier and the City to a higher end ‘close to home’ market with some potential for repeat visitation. However given their demographic profile, the primary capture of visitor spending from these patrons is in the eating and drinking category, especially in sit down restaurants.

While it was presumed that parking would be a major inconvenience for Pier visitors, due to the closure of the 1550 lot, the survey results did not indicate parking availability next to the Pier was a deterrent to a majority of the Pier visitors. Certainly, the survey could not account for people who did not come at all or decided to turn back after seeing a lack of parking or congestion. The survey also did not account for lost business from special events, film crews, performances which were not booked due to a lack of parking. That said, over three quarters (79%) of Santa Monica Pier visitors who drove, indicated that parking was easier or about the same than when they usually park at the Pier. Only 4 percent of Pier visitors surveyed reported that they typically park at the 1550 lot and were displaced to another location.

According to the survey, more Pier visitors parked in the 1550 Lot during the CDS performance than usually parked there. Additionally, 80 percent of CDS visitors parked in locations other than the 1550 Lot and Pier Lot.

Pier Visitor Parking Locations during Cirque
Relative to Usual Parking Locations
Source: LSC, AECOM
0% 20% 40% 60% 80% 100%
Usual
Parking
Location
Parking
Location
During
Cirque
On the Pier 1550 Beach Lot
Civic Center parking structure 2030 Beach Lot (# 4 South) (Ocean at Bicknell) Other parking structure or lot Santa Monica Place mall
On the street or elsewhere Surface lot across Ocean Avenue Another SM Beach parking lot

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Gross Economic Impacts
Gross economic impacts from the CDS event are driven by three specific components • Direct onsite impacts from CDS
o CDS operating expenditures, adjusted for local spending o ‘In tent’ spending by CDS patrons
• Direct offsite expenditures by CDS attendees at the Pier and elsewhere in Santa Monica
The above direct expenditures are organized by spending categories and appropriate economic multipliers are applied to determine gross impacts to the city of Santa Monica. In order to make conservative estimates of the impacts, AECOM uses the expenditure approach and does not include ticket revenues as a local impact to the city of Santa Monica.

Onsite Impacts
CDS spent a total of $4.2 million as part of their operations in the City of Santa Monica.

Approximately 40 percent of this amount included event organization and management related expenditures such as rent to the City, public safety costs, traffic and parking management plan and shuttle services. It also included a $100,000 grant to the Pier for the Centennial Celebration and $100,000 to Pacific Park to assist in marketing.

In addition, the survey data reveals that CDS attendees spent an average of $18.45 per capita at the event. This results in an ‘in tent’ spending of $3.2 million throughout the event period. Adjusting this amount for retail margins to account for local spending the total direct impact of ‘in tent’ visitor spending is $2.1 million in the City of Santa Monica. ™ Total direct or on-site impact from CDS is $6.3 million. Of this amount $1.3 million was paid as earnings to employees supporting an equivalent of 42 jobs in annualized terms.

Offsite Impacts
CDS attendees spent $4.6 million elsewhere in Santa Monica in addition to what they spent at the event. CDS visitor spending by category is presented in the figure below:

ONSITE DIRECT IMPACTS
Output Earnings Jobs
Cirque Expenditures $4,170,000 $490,000 12
In‐Tent Visitor Spending $2,100,000 $770,000 31
Total Direct Impact $6,270,000 $1,260,000 42
Source: AECOM

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Of this total, Santa Monica Pier captured a little under 20 percent, while the remainder of the expenditures occurred elsewhere in Santa Monica and for parking. ™ After further adjusting for local retail margins, the total direct impact from offsite spending in the City of Santa Monica is estimated to be $4.4 million, with $1.6 million in wages generating 59 jobs in annualized terms.

Total Gross Impacts
Combining the above two components, the total direct impact from the CDS event to the City of Santa Monica is approximately $10.7 million. These direct impacts generated an additional $6.5 million of indirect and induced economic activity in the City of Santa Monica with total gross economic impact of $17.2 million. Of this total impact approximately $5.3 million was in wages supporting 156 annualized jobs.
$61,000
$100,000
$604,000
$172,000
$14,000
$251,000
$344,000
$420,000
$2,636,000
Transportation
Rides,Arcade Games, & Other
Entertainment
Gifts, Souvenirs, and Other Retail
Parking
Santa Monica Accomodations
Food and Beverage
Santa Monica Revenues Generated by Cirque Attendees
Pier and Pacific Park
Remaining Santa Monica

OFFSITE DIRECT IMPACTS
Output Earnings Jobs
Pier & Pacific Park $710,000 $260,000 11
Santa Monica $3,330,000 $1,210,000 47
Parking $320,000 $110,000 1
Total Direct Impacts $4,380,000 $1,570,000 59
Source: Economics at AECOM

GROSS TOTAL IMPACTS
Direct Impacts +
Indirect &
Induced Impacts = Total Impacts
Output $10,650,000 + $6,530,000 = $17,200,000
Earnings $2,830,000 + $2,400,000 = $5,250,000
Jobs 101 + 55 = 156
Source: AECOM

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Fiscal Impacts
The event also resulted in a substantial fiscal benefit to the City of Santa Monica. The largest portion of fiscal impacts came from the rental contribution by CDS of $955,000 for use of the 1550 Lot. With adjustment, we include total direct benefits of $920,000 and $130,000 in other induced sales taxes, transient occupancy taxes and other taxes. ™ CDS produced a total fiscal impact of $1.1 million, which can be directly attributable to the special event.

Reduction in Economic Activity and Net Impacts
In aggregate, the businesses located at the Santa Monica Pier generated approximately $40 million in total revenue in 2009. This was a 4 percent increase from the previous year even when the overall economy shrunk by 2.5 percent (in terms of GDP) during the same period.

It is, however, not uncommon for local attractions, such as seaside piers, to have improved performance during economic downturns. These attractions provide a more economical alternative to more expensive theme parks and out of town trips, and are able to capture a larger share of local residents during harder economic times. In addition to the economy the weather also plays a major role in Pier activity, especially the number of warm weekend days and holidays.

To better understand the Pier’s revenue patterns, AECOM indexed Pier monthly revenues over the last five years to the annual average for each corresponding year. This annual index provides for better comparison of monthly revenues and adjusts for year over year increase in revenues. As shown in the chart below, Pier revenues show a strong seasonality almost identical across all years.

FISCAL IMPACTS
Source Receipts
Direct Benefits from Cirque du Soleil $920,000
Tax Benefits
Sales Tax Receipts $60,000
Transient Occupancy Tax Receipts $60,000
Additional Taxes $10,000
Subtotal Tax Benefits $130,000
Total Fiscal Impacts to the City of Santa Monica $1,050,000 Source: AECOM

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The above chart clearly shows:
• Summer is the best time for the Pier with revenues peaking in July. • March, April, May and September represent average revenue months. • October through February are low revenue months.
• There is a steep decline in revenues between August and September, marking the end of summer.

Undoubtedly, the months during which the CDS event was held were the historically low performing months for the Pier. During these months, the index shows about average performance in September and December 2009 relative to other years. October 2009 is slightly higher than other years and November 2009 is marginally lower than other years.

To estimate the net impact of CDS during the months of September through December in 2009, AECOM looked at the variation of revenues for these months from the monthly average for the year over the 2005 to 2008 period. Comparing the historic data to 2009 data showed a net positive variation of approximately 3 percent in 2009. This translates to approximately $420,000 and represents the net impact of CDS on Santa Monica Pier businesses. We already know that the Pier did well in 2009, the question is - Could Pier businesses have done better without CDS? We then compared this net impact to the survey findings, which show that CDS visitors spent approximately $800,000 at the Pier, a number considerably higher than the net impact based on historic trends. ™ This means that CDS did displace approximately $380,000 in sales from the Pier, but more than compensated for the loss by generating a substantial amount of visitor expenditures by its patrons who visited the Pier, creating a net gain of $420,000 to Pier businesses. This net gain in sales at the Pier would not have been possible without CDS.

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Impact on Individual Businesses
Although CDS generated a significantly positive economic impact to the City of Santa Monica and the Santa Monica Pier, the economic analysis presents these impacts in an aggregate basis. There is considerable variation in the manner to which different businesses along the Pier have been impacted. Confidentiality issues pertaining to revenue data prevents this report from making specific comparisons, but AECOM looked at broader retail categories at the Pier and interviewed Pier businesses to better understand the nuanced impacts.
• Between 60 to 70 percent of purchases by CDS attendees were in the food and beverage category. The direct beneficiaries of this expenditure pattern were Pier restaurants.
• In addition, given the demographic profile of CDS attendees, higher-end restaurants would have fared better. This is empirically confirmed by most Pier businesses. • Pier based entertainment, on the other hand, did not cater to the demographic profile of the CDS visitors. As a result these businesses were not able to capitalize greatly on the event.

Based on AECOM’s analysis of historic information, restaurants at the Pier performed 9 percent better during the CDS event than it would have otherwise, while entertainment businesses at the Pier experienced a 1 percent reduction in revenues during the CDS period than they would have otherwise.

Pier Lessee Input
The report also synthesizes the qualitative feedback from Pier lessees.

In line with the quantitative analysis, Pier tenants described restaurants achieving increased volume from CDS while other businesses may have had some reduction in volume.

However, even among restaurants the overall benefit of CDS varied. Tenants believed that it did bring a different demographic, but for some tenants, such as the entertainment businesses, it was not the appropriate market for their business.

Businesses had several concerns with the CDS event, primarily the loss of parking as well as disillusionment with attempts to market Pier businesses to CDS ticket purchasers.

Several Pier tenants reported that the 1550 Lot was important to attract special events and nightlife customers. Other businesses put in substantial effort working with CDS on marketing efforts that were ineffective in that they did not win CDS business or did not bring in a desirable level of additional customers.

While not all businesses benefited directly from the CDS event, a few businesses thought CDS brought a substantial amount of positive attention to the Pier and that this was good for the Pier’s long term reputation. Also, more than one tenant described how different events at the Pier impacted different businesses. This tenant described how filmings did not benefit their retail business or the restaurants along the Pier, but that they believed it was positive for a wide audience to become familiar with the Pier.

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Conclusions
• As shown below, the net economic impact generated by CDS’s “KOOZA” performance to the city of Santa Monica was $16.7 million. Of this total impact approximately $5.1 million was in wages supporting 151 annualized jobs. CDS is a significant contributor to the Santa Monica economy.
• CDS generated a total fiscal impact directly to the City of Santa Monica of $1.1 million. • An estimated 156,000 visitors were induced to Santa Monica for the main purpose of attending CDS. Of these visitors, 40,000 also visited the Pier during their trip. • Isolating the impacts to the Pier, CDS generated a net impact of $420,000 to Pier businesses, even after adjusting for displaced sales. This net gain in sales at the Pier would not have been possible without CDS.
• CDS attracted a distinctly different market demographic to the Santa Monica Pier. They were older, with higher incomes, and lived much closer to Santa Monica. • An overwhelming majority of visitors had an enjoyable experience at the Pier and would return.
• Despite the City’s parking mitigations, parking was still viewed as a significant issue by businesses along the Pier. However, parking was not an issue among the Pier visitors surveyed. Over three quarters of Pier visitors who drove, indicated that parking was easier or about the same that when they usually park at the Pier. Approximately half of CDS attendees parked in the allotted Civic Center structure or 2030 Beach Lot and only 5 percent parked at the Pier.

SUMMARY OF ECONOMIC AND FISCAL IMPACTS
Economic Impacts
Output
(Millions)
Earnings
(Millions) Jobs
Gross Impacts $ 17.2 $ 5.3 156
Displaced Sales1 ‐$ .5 ‐$ .2 ‐5
Net Economic Impact $ 16.7 $ 5.1 151
Fiscal Impacts
Source
Direct Benefits from Cirque
Tax Benefits
Total Fiscal Impacts
Source: AECOM
$920,000
$130,000
$1,050,000
Receipts

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• Based on input from Pier businesses, most businesses did not believe they benefited from co-marketing efforts. The study demonstrates that CDS generated a positive net impact to the Pier, but even Pier businesses who felt like they benefited from the CDS presence did not believe the co-marketing efforts, themselves, generated significant benefits.
• While 25 percent of CDS attendees visited the Pier, and 60 percent spent money, their spending was largely at restaurants, with only 24 percent spending any money at entertainment venues.
• As mentioned above, CDS generated a positive net impact to Pier businesses, but the impact on specific types of businesses along the Pier differed. Entertainment businesses had a 1 percent reduction in revenues during the September through December 2009 period attributable to CDS, while restaurants had a 9 percent increase in revenues and even within categories, impacts differed. • Some Pier lessees did not reap direct benefit from the event; the direct marketing assistance provided by CDS should be better focused to help these businesses preserve their existing customer base during the event.
• On the whole, special events like Cirque du Soleil have significant near term and long term benefits to Santa Monica’s tourism economy. Besides the obvious economic and fiscal benefits to the City, co-location of such a globally publicized event with a tourist icon like the Santa Monica Pier can yield intangible benefits for the Pier and the City over the long term that have not been quantified in this analysis. While the manner in which Pier businesses and special events coexist can be improved upon continually, these events are important for the City, its economy, and the overall quality of life of its residents.

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Packet Pg. 146 Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License Agreement with Cirque du Soleil) I. Introduction

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >>
• The consulting team, led by Economics at AECOM*, was retained by the City of Santa Monica to analyze the net economic impact and fiscal benefits of the Cirque du Soleil’s 2009 performance run of “KOOZA” on the city of Santa Monica. • Cirque du Soleil operated a run of the theatrical performance “KOOZA” between October 16, 2009, and December 20, 2009 and occupied a portion of the beach parking lot immediately to the north of the Santa Monica Pier from September 2009 and occupied a portion of the beach parking lot immediately to the north of the Santa Monica Pier from September 14 through December 22nd. The event was welcomed by a number of local businesses as it was expected to provide an increased opportunity to capture from a broader visitor base. However, there was concern by some of the businesses located on the Pier that, despite mitigation measures put in place, there may be a negative impact from Cirque, primarily attributed to the loss of adjacent parking. • To better understand the overall impacts of Cirque du Soleil To better understand the overall impacts of Cirque du Soleil s’ “KOOZA” in Santa Monica, the City of Santa Monica in Santa Monica, the City of Santa Monica retained Economics at AECOM to conduct a comprehensive economic impact study of hosting Cirque du Soleil (CDS) taking into consideration all positive and negative impacts, based on actual visitor data collected during the event period. • To understand the full picture, this study utilized primary research as well as additional secondary data sources. Lauren Schlau Consulting (LSC) conducted a field survey of 300 pier visitors and an online survey of 1,270 CDS attendees between November and December 2009, documenting Pier and CDS visitor behavior and spending characteristics.

Inputs from the survey, as well as revenue and sales data from the City of Santa Monica and Pier businesses were used by Economics at AECOM to develop the net economic impacts and fiscal benefit estimates. • This report presents the findings of this analysis, considering both the positive impact of CDS to the Pier and City of Santa Monica as a whole, as well as potential reductions in economic activity to the City of Santa Monica and Pier as a result of the CDS 2009 operations.

*Formerly known as Economics Research Associates

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Packet Pg. 148
Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >> Background of CDS in Santa Monica• In recent years the City of Santa Monica has booked a number of large scale special events to support the City’s economic development and cultural arts goals. To accommodate such special events, the City Council adopted a policy authorizing licensingp aortion of the 1550 PCH Beach p g ( ) arking lot (1550 Lot) for extended periods to provide revenue to the Beach Fund. – It determined that during off-peak periods, booking events in the large beach lot was an effective means to satisfy the community demand for local cultural events as well as to generate needed beach maintenance funds through visitor spending.
• The 1550 PCH lot is located just north of the famed Santa Monica Pier, adjacent to the beach and to Pacific Coast Highway, and within walking distance of Santa Monica’s Palisades Park and downtown Santa Monica. It serves as a parking lot for the Santa Monica Pier, beach, and other visitors. • A number of annual events have been held in the 1550 Lot across the last two decades. Events have included the first North American run of Canada’s now legendary Cirque du Soleil in 1987, subsequent CDS performances every two years until 1996, and CDS performances in 1996, 1997, and 1999.

C li ava a, an equest i h i il t CDS h ld t th l t i trian show similar to CDS, was held at the lot in 2004; and in 2006, the Ashes and Snow photography experience was held in the 1550 Lot.

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Packet Pg. 149
Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >> CDS’s 2009 Performance Run of “KOOZA”
• CDS returned in 2009 with its show “KOOZA”, which ran from October 16 – December 20, the subject of this report.

KOOZA, similar to the other events at the 1550 Lot, required temporary structures to be erected on the lot thereby eliminating portions of available parking. • City of Santa Monica’s License Agreement required CDS to pay rent for the space and also required CDS to pay all City costs and services associated with the event including police services for crowd/traffic control fire safety officers event costs and services associated with the event including police services for crowd/traffic control, fire safety officers, eventlicensing/liaison and location supervision, parking staff, utility charges, sanitation services, and custodial/maintenance services. • City of Santa Monica’s License Agreement with CDS included several parking mitigation strategies and other marketing assistance intended to help the Pier and other Santa Monica businesses, generally:
– T iti t th ki i t i b i i d b h i it h d t th 1550 L t di t d To mitigate the parking impacts on pier businesses, pier and beach visitors who drove to the 1550 Lot were directed to alternate parking in the nearby Civic Center lot or the 2030 Ocean Beach lot, both of which provided free shuttle service. – CDS attendees could access parking information through a link on the CDS website to the City of Santa Monica website, where parking and directions were given specific to performance time and day. – Strong cross-promotion with the Pier Restoration Corporation (PRC) and Pier tenants to provide value-added offers (i.e. restaurant promotions and rebates) on the CDS website during the entire sales period, beginning March 2009, along with email bulletins sent to the 490,000 Cirque Club members in California and 1.6 million worldwide.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >> CDS Support and Concerns
• Public input to the City included support from the City’s restaurants and hospitality sectors regarding opportunities for increased economic benefits to their businesses from CDS, especially in light of the current economic downturn. • While parking mitigation measures were put in place, Pacific Park, a major Pier lessee, and the Pier Aquarium expressed concern about a possible negative financial impact on its business due to the temporary loss of parking immediately adjacent to the Pier immediately adjacent to the Pier. • Given these concerns, the City retained the consultant team to complete an objective assessment of the impacts of the CDS’s 2009 occupation of the 1550 Lot.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >> Study Description
• The consulting team undertook a comprehensive study to quantify both the positive impact of CDS to the Pier and City of Santa Monica as a whole, as well as any reductions in economic activity to the city of Santa Monica and Pier as a result of the CDS 2009 operations. The report evaluates:
– Overall net economic impacts of the CDS event, including revenues to the City, income to the Pier lessees, and overall economic impacts to the Santa Monica economy overall economic impacts to the Santa Monica economy – The demographic and visitor profile of Cirque du Soleil and Pier visitors – Whether CDS attracted a broader cross-section of patrons to Santa Monica than would visit otherwise, and– To what extent did CDS’s occupation of the 1550 Lot impact Pier visitors’ parking experience.

Project Team
• The consultant team was led by Economics at AECOM, formerly known as Economics Research Associates. Economics at AECOM has over 50 years experience in the visitor and attraction industry and is considered the industry leader in the specialized field of economic planning for recreation and entertainment projects. Based in Los Angeles, Economics at AECOM has completed numerous economic impact studies for attractions, events, theme parks, convention centers and large-scal d ti ti E i t AECOM f d th i d fi l i t l i f thi t d le destinations. Economics at AECOM performed the economic and fiscal impact analysis for this study. • Lauren Schlau Consulting (LSC), based in downtown Los Angeles, specializes in consulting and market research related to economic development, and has extensive experience working with cities, visitor bureaus, attractions and special events throughout Southern California. LSC was responsible for overseeing the market research process and performed the patron analysis of this study.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Overview >> Study Description
Report
• This report highlights the key findings of the survey and economic impact analysis. Additional detailed information can be found in the Appendices.
• Section I presents an overview of the study and background on the CDS Section I presents an overview of the study and background on the CDS s’ Terms and Conditions Terms and Conditions. • Section II, Key Survey Results, describes the findings from the survey that relate to building a general profile of CDS visitors and Pier visitors, parking and the specific survey points, purpose of visit, and spending that are inputs into the economic impact analysis. – The full survey report is included in Appendix I and includes the detailed tables that describe visitor activities, characteristics and CDS visitor’s experience at “KOOZA” in full characteristics, and CDS visitor’s experience at “KOOZA” in full. • Section III, Economic Impact Analysis, describes the net impacts to the city of Santa Monica’s economy. It presents an overview of economic impacts and presents the economic impact results. This section first evaluates the gross economic impacts due to CDS’s 2009 operations and then looks at any potential reduction in economic activity as a result of these operations. This section also highlights direct inputs from Pier Lessee’s regarding the impact of CDS. – A tli f th i i t th d l b f d i A di II An outline of the economic impact methodology can be found in Appendix II. – Detailed tables documenting the derivation of the total economic impacts can be found in Appendix III. • Section IV, Fiscal Impact Analysis, describes the revenues to the City of Santa Monica. This evaluates the direct benefits from leasing the 1550 Parking Lot and other revenues from taxes generated by CDS attendee’s spending. • Section V briefly summarizes the economic and fiscal impact results Section V briefly summarizes the economic and fiscal impact results.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Background >> Cirque du Soleil (CDS) License Agreement Terms and Conditions • The City of Santa Monica’s License Agreement allowed Cirque du Soleil (CDS) to operate on the 1550 Lot from October 16 through December 20, 2009, occupying approximately 721 of the total 1,017 spaces in the 1550 Lot. • The License agreement included several terms and conditions to maximize the benefits of the CDS’s presence in Santa Monica for the City, businesses, and residents.

Economic Terms• City of Santa Monica’s License Agreement required:
– CDS to pay $955,000 in rent for the space;– Contribute 25 percent of gross parking revenues for use of the Civic Center lot until the lot improvement costs were recouped and 100 percent, thereafter;
– Make a substantial contribution for the Pier Centennial;– Also required CDS to pay all City costs and services associated with the event including police services for crowd/traffic control, fire safety officers, event licensing/liaison and location supervision, parking staff, utility charges, sanitation services, and custodial/maintenance services.

Parking Mitigations• CDS was responsible for improving a portion of the Civic Center lot (former Rand lot) for public parking that was made available to Pier and beach visitors.
• To mitigate the parking impacts on Pier businesses, Pier and beach visitors who drove to the 1550 Lot were directed to alt t ki i th b Ci i C t l t th 2030 O B h l t b th f hi h id d f h ttl i lternate parking in the nearby Civic Center lot or the 2030 Ocean Beach lot, both of which provided free shuttle service. • CDS attendees could access parking information online through a link on the CDS website directing them to the City of Santa Monica website, where discounted parking and directions were given specific to performance time and day. CDS patrons were directed to park in either the Civic Center Parking Structure or the 2030 Beach lot; free shuttle service to and from the CDS tent was available from each location.

• Email to CDS patrons in the event of high projected demand due to overlapping Pier and CDS events.• Provide traffic control officers before and after the shows at specified locations.• Provide attended bicycle valet parking in the 1550 lot.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Background >> Cirque du Soleil (CDS) License Agreement Terms and Conditions Marketing Conditions• The License Agreement outlined a list of marketing efforts to encourage strong cross promotion with the Santa Monica Convention and Visitors Bureau (CVB), Pier Restoration Corporation (PRC) and Pier tenants, to include:
– Offeringp Pier merchants the first opportunity to develop sp ; ecial offers to CDS ticket holders;– Offering a Pacific Park opt-in package on the Santa Monica page of the CDS website for park entrance at a discounted price provided by Pacific Park;
– Reciprocal links on the CDS website to the Pier and CVB;– Value-added destination packages to be sold through the CVB; – Public relations collaboration around the Pier Centennial, including promotion in CDS advertising material and emessages to the 1.6 million worldwide Cirque Club members about Centennial Pier events; – Development of a process to allow for coordinated scheduling and planning with the PRC and Pier lessees in cases of overlapping large events;
– Placement of a temporary ticket booth on the Pier deck if permitted by available technology; Placement of a temporary ticket booth on the Pier deck, if permitted by available technology;– Targeting of $300,000 of marketing funds for local media buys;– Development of a catering RFP for Pier tenants to serve the VIP functions; offering opportunities to Pier tenants to provide concession products and services.

Neighborhood Impacts and Community Outreach Neighborhood Impacts and Community Outreach • Establishing a representative contact in Santa Monica on a regular basis beginning at the time of ticket sales and provide an onsite representative from the date of set-up to handle information requests and complaints. • Monitoring of noise during the event periods. • Preparation and distribution of a Community Newsletter.

• Forging educational partnerships.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License I. Introduction
Background >> Cirque du Soleil (CDS) License Agreement Terms and Conditions Meeting the Conditions of the License Agreement
• To assist the Pier with marketing efforts, CDS provided a $100,000 grant to the Pier’s Centennial Celebration, provided $100,000 of in-kind support to the Pier Centennial, and provided $100,000 to Pacific Park to assist in marketing. • All req p gg p uested parking mitigations were implemented. The former RAND Lot was improved and Pier and beach visitors were directed to this lot. Prepaid discounted parking and free shuttles were offered to CDS patrons in the Civic Center Structure and 2030 Beach lot. • CDS worked with the CVB and offered discounted tickets to Santa Monica businesses which were offered through the CVB website. A number of Third Street Promenade and Ocean Avenue businesses took advantage of these tickets and offered dinner, parking, and CDS ticket packages. • CDS developed a catering RFP to serve the VIP functions. A Pier lessee did not win the bid. However, CDS contracted with one Pier lessee to provide snacks within the tent. • CDS complied with the provisions that were outlined in the License Agreement, but, as will be described in the Pier Lessee Input Section, the cross promotion outcomes were mixed.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Overview of Survey >>
• A key element of this study is the primary research, performed by Lauren Schlau Consulting (LSC). LSC conducted a survey analysis to obtain direct visitor spending data and to better understand the overall Cirque du Soleil (CDS) and Pier attendee profile, and visitation dynamics. • Questions addressed by the survey include:
– What was the demographic profile of CDS attendees and Santa Monica Pier visitors? Who was the target audience of each venue and to what extent were their demographics and visitation complementary? – What were the economic impacts to Santa Monica by Santa Monica Pier visitor and CDS attendee spending during that specific visit?
– Did this event attract a broader cross Did this event attract a broader cross-section of patrons to Santa Monica than would visit otherwise offering section of patrons to Santa Monica than would visit otherwise, offering marketing opportunities for the City and for its venues? – To what extent did the CDS location at the 1550 Lot impact Pier/Pacific Park parking and attendance? • The following section first provides a brief outline of the survey process and then highlights those data points most pertinent to understanding the overall impact of CDS on the Pier and Santa Monica. First, we review the overall profile of CDS visitors and Pier visitors then we highlight those of CDS visitors and Pier visitors, then we highlight those data points that will be inputs into the quantitative economic points that will be inputs into the quantitative economic impact analysis, induced visitors and visitor spending. • A full report on the findings of the market research can be found in Appendix I.Interviews and Survey • After reviewingg back round data on Santa Monica sp , ecial events, CDS and Pacific Park performance and related data, survey interviews were conducted. The survey data encompasses:
– On-site interviews with 302 CDS and Pacific Park patrons at the Santa Monica Pier (Pier) between November and December of 2009. 56 percent were interviewed at the entrance to Pacific Park and 44 percent were interviewed at the Carousel area.
– An on-line survey of 1 265 CDS ticket-purchasers (from an e-mail list of purchasers provided by CDS) in midPage 14 An on line survey of 1,265 CDS ticket purchasers (from an e mail list of purchasers provided by CDS) in mid December.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Overview of Survey >>
• Survey data was cross-tabulated based on several segments, including : visitors’ main purpose, area of residence, age, income, performance time, overnight visitor or day visitor, and previous visitation to Santa Monica. – While each segment’s data was reviewed, we focus primarily on visitors whose main purpose for coming to Santa Monica was either CDS or the Pier in this report.
• The sample variance of the total 1,567 on-site and on-line interviews is 2.5 percent (at 50 percent response), at the 95 percent confidence level1.
– The 302 respondents interviewed on-site at the Santa Monica Pier have a sample variance of 5.6 percent (at 50 percent response), at the 95 percent confidence level.
– The 1 265 CDS attendee respondents interviewed on The 1,265 CDS attendee respondents interviewed on-line have a sample variance of line have a sample variance of 2 8 percent (at 50 percent 2.8 percent (at 50 percent response), at the 95 percent confidence level.
• Interview data was collected by groups, the response data were weighted to represent responses for individuals rather than for groups then analyzed to develop the behavior and demographic profile.

Sample Survey Table
Pier CDS SM LA Co CA US Int'l 18-34 35-54 55+ <100 100- 199 200+ Base: Respondents 1567 228 1131 255 912 239 105 56 456 730 381 567 393 187 A city or area within Los Angeles County 59.9% 46.4% 64.3% 0.0% 100.0% 0.0% 0.0% 0.0% 55.5% 61.2% 60.8% 61.7% 57.0% 59.2% Age Income (*$1,000)
(q1A) Where do you reside?
Total
Main Purpose Residence
Santa Monica 16.6% 6.3% 19.9% 100.0% 0.0% 0.0% 0.0% 0.0% 11.2% 18.6% 17.0% 12.1% 16.2% 24.9%In California outside L.A. County 14.2% 19.7% 12.9% 0.0% 0.0% 100.0% 0.0% 0.0% 16.9% 13.5% 13.5% 14.0% 18.2% 11.6%In another U.S State outside California 5.7% 16.0% 2.4% 0.0% 0.0% 0.0% 100.0% 0.0% 8.7% 4.9% 4.6% 8.5% 4.4% 3.2%In a country outside the U.S. 3.6% 11.6% 0.4% 0.0% 0.0% 0.0% 0.0% 100.0% 7.7% 1.8% 4.1% 3.6% 4.1% 1.1% Comparing to 'Total'
Tested to 0.95 significance level.COLOR Indicates significantly higher/lower value from the comparison. pg
Weighted by group size
1At the 95% confidence level and 2.5% sample error for the 50% response level, means that on an average of 19 times out of 20 (or 95 times out of 100), the sample proportion obtained will be within 2.5% of the true value, that is responses falling within the range from 47.5% to 52.5%, will be statistically comparable.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Profile of Pier and CDS Attendees >>
• As mentioned above, the survey report includes data by various groupings, but for the purpose of the economic impact analysis we focus primarily on those visitors whose main purpose for coming to Santa Monica was either CDS or the Pier. – 71 percent of total respondents indicated their main purpose for being in Santa Monica was to see CDS, 14 percent were mainly visiting the Pier and 15 percent were drawn to Santa Monica for other reasons were mainly visiting the Pier, and 15 percent were drawn to Santa Monica for other reasons. – The higher number of CDS respondents is to be expected given the high number of on-line CDS respondents surveyed and is not indicative of preference.
• This section present a summary of the characteristics of Santa Monica and CDS main purpose visitors Audience Attracted by Residence and Demographics• The table on the next page displays the residence and demographic data based on the survey.• While there was some overlap, the Santa Monica Pier attracted a greater share of non-local visitors, whereas a high share of CDS attendees were Santa Monica and Los Angy eles County residents. – 84 percent of CDS visitors resided in Los Angeles County, and almost 20 percent of this number were from the City of Santa Monica.
– Approximately 50 percent of Pier visitors were from Los Angeles County with only 6 percent from Santa Monica.

The other half included, 20 percent from areas outside of Los Angeles, but within California, 16 percent from other states within the US,p and 12 percent international. • Given the higher share of Los Angeles area residents, a much higher percentage of CDS attendees, 83 percent, had visited Santa Monica in the past year versus 55 percent of mainly Pier visitors.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Profile of Pier and CDS Attendees >>
• In line with those figures, more CDS visitors, 56 percent, had visited the Pier in the last 12 months relative to Pier visitors, 48 percent, suggesting that up to 44 percent of CDS attendees could be potential new Pier visitors. • CDS’s audience was of much higher income, older and less ethnically diverse than the Pier visitor. – The higp her income of the CDS visitor is not surprising given the CDS’s $100 ticket price. • Overall, CDS likely had far less impact in attracting out-of-county visitors to Santa Monica than did the Pier. However, with the 17 percent of CDS attendees who had not visited Santa Monica in the past twelve months, it can be assumed that a small market of additional older, more upscale patrons were attracted to Santa Monica due to CDS.

Main Purpose
Visited Santa Monica (past 12 months; non-SM resident) 75.60% 55.40% 82.70% Country outside the U.S. 3.60% 11.60% 0.40% Total L.A. County 76.50% 52.70% 84.20% California outside L.A. County 14.20% 19.70% 12.90%
& Purpose
Another U.S State outside California 5.70% 16.00% 2.40% Total Pier/PP Cirque
Single adult 29 70% 39 50% 25 80%
Visit Pacific Park 1.90% 11.80% 0.00%
Main Purpose Today: See Cirque du Soleil 71.30% 0.00% 100.00% Visit the Santa Monica Pier 14.20% 88.20% 0.00%
Visited Santa Monica Pier in past 12 months (all respond) 55% 48% 56% Avg. Number of past visits to Santa Monica Pier 3.4 2.7 3.5Avg. Number of past visits to Santa Monica 11.01 3.59 13.72 Residence&
Asian/Asian American 8.20% 7.90% 8.00%Caucasian 63.10% 59.60% 64.70%Hispanic/Latino 12.70% 19.30% 11.10%

26.00% 18.00% 28.30%
Median age of respondent 43.14 31.75 46.23
emopgraphics
S g e adu t 29.70% 39.50% 25.80%Household: Married/partnered couple with children 28.80% 29.80% 29.40%Household: Married/partnered couple without children

Respondent %: Male 46.70% 49.60% 44.90%
Median household annual income $100,985 $66,667 $109,891 Respondent %: Female 53.30% 50.40% 55.10%
DeAfrican/African American 3.00% 4.40% 2.60%

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Profile of Pier and CDS Attendees >>
Et i St Mi tt
Other Activities in Santa Monica
Activities in the Santa Monica • Overall, 25 percent whose main purpose was attending CDS did visit the Santa Monica Pier the day they attended CDS.

Ab t h lf i fl d t i it th
Shop/browse
See Cirque du Soleil
Just walk around/sightsee/hang out
Visit the Santa Monica Pier
Eat in a Santa Monica restaurant
CDS Pier
– About one-half were influenced to visit the
Pier solely because they saw the Pier from the CDS area. – Had the event been staged elsewhere in the
city likely fewer would have visited the Pier
and surrounds
Visit friends or relatives/personal
Go to the Santa Monica Beach
Go to Pacific Park
Go to 3rd Street Promenade
and surrounds. Shop/browse
• Respondents also had other purposes than the
Pier or CDS:
– Among Pier visitors, 50 percent were there to
stroll, 32 percent also went to Pacific Park, 29
percent named the Pier as another purpose
Go to a Santa Monica night club or bar
Go to Main Street/Farmers Market
Go to Montana Avenue
Bike/skate/stroll along the boardwalk
percent named the Pier as another purpose,
10 percent went to CDS, and 10 percent were there to shop. Only 3 percent of Pier visitors had “no” other than their main purpose. – Among CDS visitors, 35 percent also ate out
in Santa Monica restaurants, 25 percent
0% 10% 20% 30% 40% 50%
Other Activities
No other venues/activities
ConductBusiness or attend a meeting
in Santa Monica restaurants, 25 percent
visited the Pier, 15 percent named CDS, 14 percent were just walking around, 10 percent went to 3rd Street, while 3 percent also went to Pacific Park. Of these attendees, 31 percent said they had “no” other than their main purpose that day

main purpose that day.

Source: LSC, AECOM
CDS = Cirque du Soleil VisitorsPier = Pier Visitors

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Profile of Pier and CDS Attendees >>
Santa Monica Pier Activities and Ratings
• As would be expected, those mainly visiting the Pier engaged in many more activities on the Pier than those who mainly attended CDS, however far more of the CDS attendees ate at Pier restaurants than did mainly Pier visitors. • The most significant difference in Pier activities was for Pacific Park where 32 percent of Pier goers visited versus only 3 The most significant difference in Pier activities was for Pacific Park where 32 percent of Pier goers visited versus only 3 percent of CDS attendees.
• The Santa Monica Pier experience was rated highly by those mainly visiting the Pier and those mainly attending CDS. In fact, somewhat surprisingly, the Pier was rated highest by the highest income group. – Of all respondents who visited the Santa Monica Pier, 77 percent found the experience very or extremely enjoyable, while only 5 percent found it not enjoyable The overall mean rating was 4 03 (out of 5) or “very enjoyable ” while only 5 percent found it not enjoyable. The overall mean rating was 4.03 (out of 5), or “very enjoyable.” – Those mainly visiting the Pier rated their experience slightly higher than CDS visitors, at 4.19 versus 3.94 for those mainly attending CDS, both in the “very enjoyable” range. – For the 5 percent of Pier visitors with an unenjoyable Pier experience, 37 percent cited difficulty parking. While parking was the main reason stated, it equates to less than 2 percent of all Pier visitors surveyed.

Top Activities on SM Pier Just stroll/sightsee 62.90% 51.50% 66.50% Total
Main Purpose
Pier/PP Cirque
Play games at the Playland Arcade 16.40% 32.70% 8.50% Eat at the Pacific Park food outlets 15.00% 24.60% 11.10% Ride rides at Pacific Park 21.00% 37.80% 12.30% Browse or shop at Pier shops 20.30% 17.90% 20.20%

28.80% 22.00% 35.40%
Play games at Pacific Park 24.10% 43.90% 13.10%
Activity
/g 62.90% 51.50% 66.50%
Eat at a Pier restaurant/snack shop

Source: LSC

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Profile of Pier and CDS Attendees >>
Spending
• Pier visitors and CDS attendees had a wide economic impact not only on their respective main venues but throughout the city, particularly by those for whom CDS was their main purpose. Overall, 87 percent of all respondents regardless of their purpose spent money in Santa Monica the day they were there:
– Overall, 73 percent of groups who went to CDS spent in the tent and spent an average of $33 per group– 71 percent of all groups who went to the Pier spent on the Santa Monica Pier and spent an average of $59 each– 42 percent of all groups spent elsewhere in Santa Monica that day and spent an average of $56 each. This figure excludes money spent at CDS or along the Pier.
• Spending will be reviewed more closely at the end of Section II Spending will be reviewed more closely at the end of Section II. % Spent money at Cirque du Soleil (per all groups who sent to Cirque) 72.60% 63.00% 71.80% Total
Main Purpose
Pier/PP Cirque
Spending

72.60% 63.00% 71.80%
Average Spent at Cirque du Soleil (per all groups who went to Cirque) $32.53 $29.67 $32.48 % Spent money in Santa Monica area

70.50% 83.80% 62.50%
Average Spent at Santa Monica Pier (per all groups who went to the Pier) $58.57 $56.99 $61.20 % Spent money at Santa Monica Pier (per all groups who went to the Pier) Source: LSC
Avg. spent for parking (per car) $5.84 $4.73 $6.29 % Spent money in Santa Monica area (per all groups) 41.60% 17.60% 42.70%Average Spent in Santa Monica excluding Cirque and Pier Spending (per all groups) $55.79 $36.64 $51.89

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Profile of Pier and CDS Attendees >>
Parking
• As most respondents, 91 percent, arrived in Santa Monica (or to their venue) by driving, conveniently located and available parking would be an important factor in their experience. • 80 percent of CDS visitors parked in parking lots other than the 1550 Beach Lot or the Pier 80 percent of CDS visitors parked in parking lots other than the 1550 Beach Lot or the Pier. • 25 percent of Pier visitors parked on the Pier the day of the survey, comparable to the percentage of Pier visitors who usually park there, 20 percent used another unspecified site, 13 percent used Santa Monica Place. Of note, 11 percent of Pier visitors reported parking at 1550 PCH that day while only 4 percent of Pier visitors reported that they usually park there. • Over three-quarters or 79 percent of regular Santa Monica Pier visitors and who drove that day indicated parking was easier (26%) or about the same (53%) than when they usually park at the Pier. Conversely, 22 percent said parking was somewhat or much more difficult. The mean rating was 2.97 (4 = easiest to 1 = much more difficult). • Of all respondents who drove, 35 percent reported that parking in general has no impact/not a problem when they visit Santa Monica.

On the Pier 1550 Beach LotCivic Center parking structure 2030 Beach Lot (# 4 South) (Ocean at Bicknell)Other parking structure or lot Santa Monica Place mallOn the street or elsewhere Surface lot across Ocean AvenueAnother SM Beach parking lot 5.0% 4.8%

3.8% 2.7%
CirqueVisitor ParkingLocations
On the Pier1550 Beach LotCivic Center parking
Pier Visitor Parking Locations during CDS
Relative to Usual Parking Locations
Parking
Location
DuringCirque

15.6%

27.8%

13.2%

5.0%
Civic Center parking
structure
2030 Beach Lot (# 4 South)
(Ocean at Bicknell)
Other parking structure orlotSanta Monica Place mallOn the street or elsewhere 0% 20% 40% 60% 80% 100%
Usual
Parking
Location

22.0% Surface lot across Ocean
Avenue
Another SM Beach parking
lot
Source: LSC, AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License Eat at the Pacific Park food outlets 15.00% 24.60% 11.10% % Spent money at Cirque du Soleil (per all groups) 72.60% 63.00% 71.80% Browse or shop at Pier shops 20.30% 17.90% 20.20%
Play games at the Playland Arcade 16.40% 32.70% 8.50%
Play games at Pacific Park 24.10% 43.90% 13.10%
Ride rides at Pacific Park 21.00% 37.80% 12.30%

62.90% 51.50% 66.50%
Eat at a Pier restaurant/snack shop 28.80% 22.00% 35.40% Visit Pacific Park 8.70% 32.30% 3.40%
Activity
Top Activities on SM Pier
Just stroll/sightsee
Other Purpose(s) Today: See Cirque du Soleil 20.20% 10.20% 14.70% Visit the Santa Monica Pier 29.30% 28.80% 24.70%
Visit the Santa Monica Pier 14.20% 88.20% 0.00%
Visit Pacific Park 1.90% 11.80% 0.00%
Avg. Number of past visits to Santa Monica Pier 3.4 2.7 3.5 Main Purpose Today: See Cirque du Soleil 71.30% 0.00% 100.00% Avg. Number of past visits to Santa Monica 11.01 3.59 13.72 Visited Santa Monica Pier in past 12 months (all respond) 55% 48% 56% Seen Cirque du Soleil perform live (before “Kooza”) 86.20% 72.20% 86.30% Visited Santa Monica (past 12 months; non-SM resident) 75.60% 55.40% 82.70% Another U.S State outside California 5.70% 16.00% 2.40% Country outside the U.S. 3.60% 11.60% 0.40%

76.50% 52.70% 84.20%
California outside L.A. County 14.20% 19.70% 12.90%
Residence
& Purpose
City of Santa Monica 16.60% 6.30% 19.90%
Other City within Los Angeles County 59.90% 46.40% 64.30% Total L.A. County
Total
Main Purpose
Pier/PP Cirque
II. Key Survey Results
Profile of Pier and Cirque Attendees >>
Source: LSC
Respondent %: Female 53.30% 50.40% 55.10%
Respondent %: Male 46.70% 49.60% 44.90%
African/African American 3.00% 4.40% 2.60%
Median household annual income $100,985 $66,667 $109,891 Hispanic/Latino 12.70% 19.30% 11.10%
Asian/Asian American 8.20% 7.90% 8.00%
Median age of respondent 43.14 31.75 46.23
Caucasian 63.10% 59.60% 64.70%

28.80% 29.80% 29.40%
Household: Married/partnered couple without children 26.00% 18.00% 28.30% % in party under age 18 28.20% 32.30% 27.50%
Demopgraphics
Single adult 29.70% 39.50% 25.80%
Household: Married/partnered couple with children
Travel party: couple 39.90% 32.90% 42.30%
Travel party: family group (2+ people) 36.80% 36.00% 36.90% Lodging: Hotel/motel/hostel 73.30% 84.10% 71.10%
Lodging: Private residence of friends/family (unpaid) 23.30% 13.60% 22.20%

4.50% 10.20% 2.40%
# days stayed overnight 2.75 3.43 2.22
Parking
& Visitor Data
Mean rating: easy (4) – difficult (1) to find parking 2.97 3.02 2.95 # hours in Santa Monica that day (day visitors only) 4.59 3.51 4.66 % staying overnight in Santa Monica
Average Spent in Santa Monica (excl. Cirque or Pier /group) $55.79 $36.64 $51.89 Avg. spent for parking (per car) $5.84 $4.73 $6.29
Average Spent at Santa Monica Pier (per all groups) $58.57 $56.99 $61.20 % Spent money in Santa Monica area (excl. Cirque or Pier/ )

41.60% 17.60% 42.70%
$32.53 $29.67 $32.48
% Spent money at Santa Monica Pier (per all groups) 70.50% 83.80% 62.50% Spending
Average Spent at Cirque du Soleil (per all groups)

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Inputs to Economic Impact Analysis >> Induced Visitors
• Many visitors participated in more than one activity while in the Santa Monica area, but for the economic analysis we want to isolate the economic impacts of those visitors whose sole purpose in the area was CDS, i.e. without CDS’s presence in Santa Monica, these visitors would not be in the area. All of these induced visitors impacts at CDS and within Santa Monica can be directly attributable to CDS’s presence. – By comparing the visitors whose main purpose was CDS to all CDS visitors we are able to estimate the induced By comparing the visitors whose main purpose was CDS to all CDS visitors we are able to estimate the induced CDS visitors.
– 1,300 respondents went to CDS performance, while 1,100 said CDS was their main purpose for being in Santa Monica.
– From there were are able to look at the number of induced visitors who also went to the Pier and Pacific Park. • The table below identifies the share of CDS attendees who were induced to the area due to CDS and the share of those visitors who also visited the Pier.

Survey Population
Total Survey Respondents 1,567
% f Tl Cirque Visitors Respondents % of Ttl Cirque Visitors Total Survey Respondents who went to Cirque 1,309 100%
Survey Respondents Whose Main Purpose was Cirque 1,131 86%Survey Respondents Whose Main Purpose was Cirque and went to the Pier 279 21% Survey Respondents Whose Main Purpose was Cirque and went to Pacific Park 38 3% Pier Visitors Respondents % of Ttl Pier Visitors
Total Survey Respondents who went to the Pier 655 100%
Survey Respondents Whose Main Purpose was the Pier 228 35% Source: LSC, AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Inputs to Economic Impact Analysis >> Per Capita Spending Estimates • In the economic impact analysis, we utilized the average spending per group data from the survey to estimate a per capita spending figure for each category.
– To calculate per capita spending, per group spending figures are divided by the amount of people the spending was reported for*.
• The figure below represents the average group and per capita spending across those who visited the Pier.

All Main Purpose All Main Purpose
Segments Pier Cirque Segments Pier Cirque
Avg. Group Spending by
Segment
Avg. Per Capita Spending by
Segment
Average Per Capita Spending at the Pier
Segments Pier Cirque Segments Pier Cirque
Pier SpendingPacific Park
Food & Beverage $15.92 $15.30 $19.17 $9.20 $8.64 $8.88
Rides & Arcade Games 6.68 13.03 3.48 3.86 7.36 1.61
Gifts & Souvenirs 3.37 2.42 3.58 1.95 1.37 1.66
Remaining Pier
ier Spending
Cirque Pier
Food & Beverage 16.76 11.77 18.14 9.69 6.65 8.40
Gifts & Souvenirs 4.42 6.34 2.08 2.55 3.58 0.96
Other Spending 2.40 2.08 1.63 1.39 1.18 0.75Admission Tickets 12.06 8.53 16.26 6.97 4.82 7.53 Total Pier Spending $58.57 $56.99 $61.20 $35.61 $33.60 $29.79 $0.00 $10.00 $20.00 $30.00 $40.00 TotalPi
Source: LSC, AECOM

*It should be noted that this questions was not included in the online survey. The face-to-face pier survey data was used as a proxy for all respondents for this question.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License II. Key Survey Results
Inputs to Economic Impact Analysis >> Per Capita Spending Estimates • Both visitors whose main purpose was the Pier or CDS spent in Santa Monica. CDS visitors groups spent an average of $52 while, Pier visitor groups spent $36 in Santa Monica. The difference in this spending narrowed on a per capita basis. These figures represent average spending across all visitors. • The In-tent CDS spending is only calculated for those who went to CDS. All groups who went to CDS spent an average of $32.

All Main Purpose All Main Purpose
Segments Pier Cirque Segments Pier Cirque
Spending in Santa Monica
Avg. Group Spending by
Segment
Avg. Per Capita Spending by
Segment
ending
Average Per Capita Spending in SantaMonica
Cirque Pier
Spending in Santa Monica(Excluding Pier and Cirque Spending) Food & Beverage $38.18 $8.80 $39.74 $22.07 $4.97 $18.40 Overnight Lodging in Santa Monica 8.14 15.68 5.83 4.71 8.86 2.70 Gifts/Souvenirs/Others Shopping Items 6.56 8.99 3.48 3.79 5.08 1.61 Transportation Costs (Gas, Fares, etc.) 2.59 0.90 2.59 1.50 0.51 1.20 Movie, Clubs, or Other Entertainment 0.33 0.24 0.21 0.19 0.14 0.10 Total Santa Monica Sp
All Mi P All Mi P
Avg. Group Spending by
Segment
Avg. Per Capita Spending by
Segment
Total Santa Monica Spending $55.79 $36.64 $51.89 $32.25 $19.55 $24.00 $0.00 $10.00 $20.00 $30.00 Average Per Capita Spending in Cirque Tent
Cirque Pier
All Main Purpose All Main Purpose
Segments Pier Cirque Segments Pier Cirque
In‐Tent Cirque du Soleil Spending
Food and Beverage Spending $15.69 $14.13 $15.55 $9.07 $7.98 $7.20Gift & Souvenir Spending 16.22 13.72 16.62 9.38 7.75 7.69 Total In‐Tent Spending $31.91 $27.85 $32.17 $18.45 $15.73 $14.89 Total In‐Tent Spending

$0.00 $5.00 $10.00 $15.00 $20.00
Source: LSC, AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Overview >> Defining Economic Impacts• The section analyzes the net economic impacts of Cirque du Soleil’s “KOOZA” performance to the city of Santa Monica.

What are Economic Impacts?
• Economic impacts quantify the total economic impact resulting from a particular activity in an economic region. • Total Economic Impact is composed of:
– Direct Impact: The direct spending in the economy attributed to Cirque du Soleil (CDS) activities. The first round of spending includes impacts from CDS’s onsite operations as well as impacts from additional visitor spending offsite. – The ‘Multiplier Effect’ Resulting in:
• Indirect Impacts – Additional output, earnings, and employment generated as a result of the purchases of the industries which supply goods and services to CDS and its visitors. • Induced Impacts – Additional output, earnings, and employment generated as a result of the purchases of employees in the supplying and supporting industries.
– Total Impacts: Total Impacts: The cumulative impact of the above components The cumulative impact of the above components.

Indirect & Induced
Impacts
Direct
Impact
Total
Impact
=
+

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Overview >> Impact Metrics• Economic impacts are expressed in terms of the following metrics:
– Output – Total dollar value of goods and services produced across all industrial sectors within the defined geographic region (city of Santa Monica).
– Earnings
– The component of total output that is attributed to income and wages The component of total output that is attributed to income and wages. – Employment – The total number of new jobs created in the economy.

IMPACT COMPONENTS

DIRECT IMPACT INDIRECT & INDUCED IMPACT TOTAL
OUTPUT
+
= TOTAL OUTPUT

EARNINGS
+
= TOTAL EARNINGS

CT METRICS

EMPLOYMENT
+
= TOTAL EMPLOYMENT
IMPAC

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Overview >> Net Economic Impacts• For this study, the City of Santa Monica and various stakeholders are interested in the net fiscal impact of CDS. • Thus, the economic impact analysis includes two
major analysis components:
– Analysis of the gross economic impacts
resulting from CDS; and
– Analysis of any potential reductions in economic
activity (displacement) as a result of CDS.

Net Economic Impact Calculation
activity (displacement) as
a result of CDS.
• Gross economic impacts are combined with any
reductions in economic activity to determine the net economic impact of CDS. • AECOM utilizes the primary data developed by LSC
d i f ti id d b CDS t l l t
Gross
Economic
Impact
Reduction
in
Economic
Activity
Net
Economic
Impact
an
d information provid
e
d
by CDS to calculate gross
economic impacts. Pier revenue data provided by the City of Santa Monica and additional revenue data provided by pier tenants is utilized to estimate the reduction in economic activity. • The methodolog section in Appendi II describes The methodology section in Appendix II describes the calculation of the gross economic impact and the analysis conducted to estimate the reduction in economic activity due to CDS.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOnsite Direct Impacts • Onsite direct impacts are composed of the CDS’s
performance-related economic activities within Santa Monica and CDS attendees’ in-tent spending.

Local Cirque du Soleil Expenditures
Operations Expenditures Total
Temporary Staff 490,000Cast and Crew Kitchen (Food) 90,000 Local CDS Expenditure Impacts• As mentioned in the Methodology Section, CDS’s economic activities are represented by their expenditures made in the Los Angeles area. These local expenditure figures were provided by CDS and include those purchases made in the f
Cast and Crew Kitchen (Food) 90,000Equipment Rental 80,000 Transportation 90,000Cast and Crew Accomodations 900,000Facilit y
O
perations Ex
penditures Total greater Los Angeles area to support the performance, such as temporary staff, equipment rental, accommodations for the performers, rent, construction of the 1550 and RAND parking lots, traffic police and fire services, and fuel and electricity. • Local expenditures also include expenditures associated with providing the marketing assistance outlined in the License y p p
Rent 960,000Construction within 1550
& RAND Lot 670,000
Traffic Police and Fire Services 300,000Shuttles 200,000Traffic and Parking Management Plan 110,000 providing the marketing assistance outlined in the License Agreement. In total, CDS provided $300,000 in assistance. The expenditures associated with providing in-kind assistance are included in the Operations Expenditures. The other $200,000 provided directly to the PRC and Pacific Park are shown under the Direct Marketing Expenditures category.

Fuel and Electricity 80,000
Direct Marketing Expenditures Total
Marketing Assistance to PRC
& Pacific Park 200,000
• It should be noted that the above are local expenditures and do not include all CDS costs.
– We have not considered corporate CDS costs such as their performer salaries, corporate salaries and expenses. We only consider locally hired jobs. – Additionally, CDS costs for gifts, souvenirs and/or food and beverage sold to CDS attendees are not included here.

Th t d f i th i it i t t di
Total Local Expenditures $4,170,000
Source: Cirque du Soleil, AECOM

These are accounte
d for in the visitor in-tent spending
impacts.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOnsite Direct Impacts Local CDS Expenditure Impacts (Cont.)• Total direct impacts of the CDS operations are $4.2 million, earnin
gs are approximatel
y
$500,000, which e
quates to
Cirque du Soleil In‐Tent Visitor Spending
g pp y $ , , q Sales Per
approximately 12 (annual) jobs*.

Visitor In-Tent Spending Impacts• Visitor In-Tent Spending evaluates the revenues generated by CDS attendee spending while in the CDS tent. This includes Cirque In‐Tent Sales Attendee3 TotalAdjusted Food and Beverage Spending4 $9.07 1,510,887 Gift
& Souvenir Spending $9.38 1,697,006
Total $18.45 $3,207,893
both spending on CDS food and beverage or gift items, as well as any spending for 3rd party food and drink items. • CDS sold 184,000 tickets to “KOOZA” in Santa Monica, we estimate that 95 percent of ticket holders, 181,000, attended the show.

Cirque du Soleil In‐Tent Visitor Spending
Cirque In‐Tent Sales Direct Impact
Adjusted Food and Beverage Spending 1,510,887Gift
& Souvenir Spending 1,697,006
• Per capita in-tent spending was established using the survey data performed by LSC. These per capita figures were then applied to CDS attendees to derive total visitor in-spending figures. • In the first table, food and beverage spending is reduced to t f l th t ti f di f S t
Source: AECOM
Retail Margin2 @ 35% 593,952
Impacts $2,104,839
account for only the net new portion of spending for
Santa
Monica residents (who may have purchased food and beverage within the city of Santa Monica if CDS was not present). • Adjustments were also made to the gift/souvenir purchases to account solely for the retail outlet portion (retail margins) as described in the methodology section

described in the methodology section.
* The number of local jobs number is estimated from IMPLAN data and was not provided by CDS. It represents jobs on an annual basis. For example, if a typical job in the performance industry lasts 6 months full time, but CDS was held for approximately 2 months. Than 3 CDS jobs would equate to one annual job in the performance industry. Non-annualized jobs is likely to be a higher figure.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOnsite Direct Impacts Visitor In-Tent Spending Impacts (Cont.)• With these adjustments, direct impacts from visitor in-tent spending were $2.1 million in

ONSITE DIRECT IMPACTS
Output Earnings Jobs
visitor in tent spending were
$2.1 million in Cir
que Ex
penditures
$
4,170,000
$490,00
0 12
output. Based on this output, direct earnings are calculated at $770,000, supporting 31 direct jobs.

Onsite Direct Impacts
q p $, , $,
In‐Tent Visitor Spending $2,100,000 $770,000 31Total Direct Impact $6,270,000 $1,260,000 42 Source: AECOM
Onsite Direct Impacts• The 2009 performance run of CDS’s “KOOZA” resulted in total onsite direct impacts of $6.3 million in output, which includes $1.3 million in earnings, and supports 42 jobs.

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOffsite Direct Impacts • Offsite direct impacts are derived from CDS attendee spending outside of the CDS tent, but still within Santa Monica. This includes:

1. Spending at Pacific Park and the Pier; Spending at Pacific Park and the Pier;2. Spending in Santa Monica (not including the Pier); and3. Parking Spending (which was excluded from the above). • The analysis specifically accounts for visitors who were attracted to the Santa Monica area by CDS, so we utilize the per capita spending data for visitors whose main purpose is CDS and this is applied to the estimated number of visitors whose main purpose is CDS and went to Santa Monica, and, in the case of Pier visitor spending, who also visited the Pier. • AECOM estimates that 156,000 visitors were induced to Santa Monica for the main purpose of attending CDS. Of these visitors who came to Santa Monica for CDS, 40,000 also visited the Pier during their trip.

OFFSITE VISITOR ASSUMPTIONS
Survey Visitors to Cirque 1,309Survey Visitors Whose Main Purpose was Cirque 1,131 Survey Visitors Whose Main Purpose was Cirque and are Residents of Santa Monica 225 Survey Visitors Whose Main Purpose was Cirque and Visited the Pier 279 Estimated Share of Cirque Visitors Induced to Santa Monica by Cirque 86% Estid mate Share of Cirque Vi is tors
wh l h i o also went to the Pier 21%
Estimated Share of Cirque Visitors who are Residents of Santa Monica 19.9% Total Estimated Cirque Attendees 181,000
Estimated Share of Cirque Visitors induced to Santa Monica by Cirque 86.0% Estimated Attendees induced by Cirque 155,660

Total Estimated Cirque Attendees 181,000
Estimated share of Cirque visitors who also went to the Pier 21% Estimated Attendees induced by Cirque and who went to the Pier or Pacific Park 38,010 Source: Cirque and Pier Survey (LSC), AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOffsite Direct Impacts • CDS visitors are estimated to have spent almost
$4.6 million in various outlets throughout the city of Santa Monica between October and December 2009

OFFSITE IMPACTS
Spending at the Pier
& Pacific Park
Cirque Visitor Spending at Pacific Park Per Cap ($)1 Total Adjusted Food and Beverage2 8.88 310,487
2009. Rides and Arcade Games 1 61 61 238
• CDS visitors are estimated to have spent
$790,000 along the Pier.
– $430,000 was spent at Pacific Park, primarily
in food and beverages.

Rides and Arcade Games 1.61 61,238
Gifts and Souvenirs 1.66 62,998
Subtotal Spending at Pacific Park $434,723
Cirque Visitor Spending at the Pier Outside of Pacific Park Per Cap ($)1 Total Adjusted Food and Beverage2 8.40 293,804
Gifts and Souvenirs 0.96 36,602
– $360,000 was spent at the Pier outside of
Pacific Park, with most of the spending in food and beverage spending*. • CDS visitors spent another $3.5 million in the city
of Santa Monica, excluding Pier spending. Most
Other Spending 0.75 28,683Subtotal Spending at the Pier Outside of Pacific Park $359,090 Total Pier and Pacific Park Spending $793,813
Spending in Other Parts of Santa Monica
Cirque Visitors Spending in Santa Monica Per Cap ($)1 Total Adjusted Food and Beverage2 18 40 2 635 893 of the spending was primarily in Food and Beverages, with overnight lodging as the second largest category. • CDS visitors spent approximately $340,000 for
parking.

Adjusted Food and Beverage 18.40 2,635,893
Overnight Lodging in Santa Monica 2.70 420,138
Gifts/ Souvenirs/ Other Shopping Items 1.61 250,786
Adjusted Transportation Costs (Gas, Fares, etc)2 1.20 171,791 Adjusted Movie, Clubs, or Other Entertainment2 0.10 13,929 Total Spending in Other Parts of Santa Monica $3,492,536 • It should be noted that several categories were
reduced to account for net new Santa Monica resident spending. *Survey spending data also included a Pier spending
category called admission tickets that totaled
Parking Revenues
Cirque Visitors' Parking Spending Per Cap ($)1
Avg. Parking Spending 2.21 343,959Total Spending on Parking by Induced Cirque Visitors $343,959 TOTAL VISITOR SPENDING $4,630,308
1Cirque and Pier Survey Results

category called admission tickets that totaled
approximately $7.50 per capita. This was excluded from the economic analysis because we believe some survey respondents may have reported their CDS admission tickets in this category.

Cirque and Pier Survey Results
2Adjusted to account for net spending of Santa Monica Residents. Estimates that 40 percent of Santa Monica Residents would have dined out, utilzied transportation, or purchased entertainment activities in the city of Santa Monica with or without Cirque.

Source: Cirque and Pier Survey (LSC), AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct Impacts
• The figure below reflects Cirque visitor spending estimates along the Pier and in Santa Monica (excluding the Pier). This does not account for any displacement of non-Cirque related sales.

St Mi
R G td
b Ci Att d
$604,000 $2,636,000
Santa Monica Accomodations
Food and Beverage
San
t
a
Monica
Revenues
Genera
t
e
d
b
y Cirque Atten
dees
$100,000
$251 000
$344,000
$420,000
Gifts, Souvenirs, and Other Retail
Parking
Santa Monica Accomodations
$61,000
$172,000
$14,000
$251,000
Transportation
Rides,Arcade Games,
& Other
Entertainment
Pier and Pacific ParkRemaining Santa Monica
Source: AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Direct ImpactsOffsite Direct Impacts • As described in the Methodology section,
projected retail spending was adjusted downward to conservatively account for only the retail outlet portion located in Santa Monica the retail margin

OFFSITE DIRECT IMPACTS
Output Earnings Jobs
Pier
& Pacific Park $710,00
0 $260,00
0 11
portion located in Santa Monica, the retail margin.
• After these adjustments, visitor offsite spending
have a direct output impact of $4.4 million. This includes earnings impacts of $1.6 million which support 59 jobs.

Santa Monica $3,330,000 $1,210,000 47Parking $320,000 $110,000 1Total Direct Impacts $4,380,000 $1,570,000 59 Source: Economics at AECOM

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Attachment: Economic Impact Report 10.11.10 (6001 : Authorize the City Manager to Enter into a License III. Economic Impact Analysis
Gross Economic Impacts >> Total Impacts• Total Impacts represent the direct impacts from the CDS’s operations and CDS visitor spending plus the additional impacts in the city of Santa Monica from purchases made by businesses supplying goods and services to the CDS or its visitors

ONSITE IMPACTS
Direct
Indirect
&
Induced Total
OutputCirque Expenditures $4,170,000 $3,970,000 $8,140,000 services to the CDS or its visitors. • Multipliers are applied to the City of Santa Monica CDS expenditures and visitor spending for each category to estimate the total gross impacts.

Onsite Im
pacts
In‐Tent Visitor Spending $2,100,000 $820,000 $2,920,000Total Output $6,270,000 $4,780,000 $11,060,000EarningsCirque Expenditures $490,000 $1,500,000 $1,990,000 p
Total Onsite Impacts• CDS generated a one-time total impact of $11.1 million in output in the City of Santa Monica economy in 2009.

Thi t t i l d i t l $3 1 illi i
In‐Tent Visitor Spending $770,000 $290,000 $1,060,000Total Earnings $1,260,000 $1,780,000 $3,050,000Employment (Jobs)*Cirque Expenditures 12 39 50In‐Tent Visitor Spending 31 5 36 • This output inclu des approximately $3.1 million in
earnings and support 86 (annual) jobs.
et s to Spe d g 3 5 36
Total Employment 42 44 86*Sums may not add due to rounding.

Source: AECOM