Santa Monica City Council
April 9, 2024

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Based on research and discussions with consultants and other municipalities, staff estimates the City would need a MRF of approximately 40,000 square feet in order to process the amount of recyclable materials the City generates. The facility would employ approximately 20-25 contracted workers, and it would include various fixed and moving equipment, such as: vehicle scale; a tipping floor for incoming vehicle loads; processing equipment with sorting stations, conveyor belts, and discharge chute systems for sorted materials; a baler; storage areas; forklifts and other heavy equipment. There would also be a need for vehicle ingress, egress, and parking.

Materials are sorted, then sellable recyclables are baled, transported, and sold to endmarkets. Contaminated or non-recyclable materials are treated as garbage and taken to landfills for disposal. The operation is busy with various activities and is typically open five days a week during normal business hours.

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Option 1: On-Site Curbside Recyclable Materials Processing Pros: On-site processing “cuts out the middleman,” saving the need to haul the materials to a MRF elsewhere. However, materials are transferred after sorting.

Additionally, having a MRF located in the City provides for convenient educational tours.

Cons: However, staff does not recommend on-site processing because there is an insufficient footprint at the City Yards for a MRF operation unless other City uses were displaced. Santa Monica is a densely populated5, urban city of only 8.42 square miles.

Locating an industrial site to build an optimal MRF with adequate traffic circulation for high-volume trucking activities presents a formidable challenge. Economies of scale can also be an issue – the MRF would incur high operating costs, have insufficient space and limited production capacity. Building a MRF would require substantial capital outlay by the City or by the contractor, which means potential bidders would likely demand a longer-term contract to amortize their investment in infrastructure and equipment.

Longer contract terms mean an inability for the City to remain nimble and flexible in its land use and zero waste operation decisions, especially given the rapidly evolving environmental regulatory landscape and available recycling and organics technologies.

Option 2: Off-Site Curbside Recyclable Materials Processing Pros: Staff recommends off-site processing at this time. Off-site processing eliminates the need to encumber approximately 40,000 square feet of City property for a MRF, thus freeing up precious City land for other critical City needs. Currently, the City Yards has approximately 25,000 square feet for solid waste management operations, and the space is utilized as a tipping area for unloading and loading recyclable materials in preparation for hauling. Another advantage of off-site processing is it requires significantly less capital investment, therefore leading to potentially more competitive proposals with better pricing and shorter contract terms. There are a handful of

5 Santa Monica has a population density of 9,817 people per square mile, as compared to other major nearby cities such as Culver City (7,475), Glendale (6,599), Beverly Hills (5,933), or Pasadena (5,366). http://maps.latimes.com/neighborhoods/population/density/neighborhood/list/

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permitted recycling facilities within Los Angeles County that are qualified to submit proposals. Not binding the City to a long-term agreement also gives the City the ability to pivot or explore new recycling technologies or solutions if necessary. Additionally, eliminating processing activities within the City may alleviate environmental concerns from nearby residents and businesses.

Cons: An additional cost for transferring services would be required in order to haul the collected materials from Santa Monica to the selected processor outside of the City. The City could incur transfer costs up to $600,000 or more per year, depending on the proximity of the recycling facility chosen, although some of this cost could be partially offset by better pricing of processing proposals received. There is also a possibility that off-site processing may increase carbon footprint based on the location of the selected MRF. A more in-depth carbon footprint analysis will be presented to the Council at the meeting on November 12, 2019.

On-Site Recyclable Materials
Processing
Off-Site Recyclable Materials
Processing
Pros
• Saves on transfer cost
• Convenient access to education
tours
Cons
• Insufficient space at City Yards
• Substantial capital outlay
• Less nimble and flexible
• Lacks economies of scale
• Requires long-term commitment
• Potentially less interested operators
due to more restrictive RFP
Pros
• Frees up City land for highest and
best use
• More flexibility to pivot if the City’s
needs change
• Economies of scale
• Potentially more proposals from
RFP
• Potentially better pricing and
shorter-term commitment
• Less environmental concerns from
neighbors
Cons
• Incurs transfer cost
• Potentially higher carbon footprint

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Community Recycling Options
The fourth and last pillar in supporting the City’s zero waste goals is developing various options for the community to reduce, reuse, and recycle. In addition to having a robust curbside recycling program, the Resource Recovery and Recycling Division also hosts or assists with the following events to promote a Zero Waste culture in Santa Monica:
a) Textile Recycling. All year-round, residents can drop off their clean but unwanted clothes, shoes, or linens at a USAgain donation box at the City Yards, Santa Monica Animal Shelter, Clover Park, Marine Park, or Virginia Avenue Park plus six other USAgain drop-off locations at various apartment buildings in the City. The textile recycling program diverts waste from landfills and gives clothes a second life for people who can purchase them at affordable prices. b) Paper Shredding, E-Waste Collection, and Mattress Collection Events. Four times a year, residents can bring up to five boxes of paper plus unwanted electronics and used mattresses/box springs to the City Yards for proper recycling and disposal.
c) Compost Giveaway Events. Three times a year, the green waste and food waste (i.e. organics) collected from Santa Monica come back to the City in the form of nutrient-rich compost that residents can obtain for free for landscaping projects in their homes and gardens.
d) Used Oil Collection Events. Three times a year, residents who work on their vehicles can recycle used car oil at O’Reilly Auto Parts (2018 Lincoln Boulevard) in exchange for a free oil filter and oil bucket.

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e) Repair Café. Residents can repair and reuse their broken small household appliances, electronics, bicycles, or clothes by bringing the items to this annual one-day event and get help at the repair station from knowledgeable volunteers. f) Citywide Yard Sale. The City hosts a Citywide Yard Sale every year to promote the reuse culture by allowing residents to pass along usable items to others rather than sending them to the landfills.

The Santa Monica Community Recycling Center (commonly known as the Buy-Back Center) closed on June 15, 2019. Since then, staff has received over 300 phone calls, e-mails, letters, social media comments, and walk-in customers inquiring about the BuyBack Center closure. While 90% of the inquiries came from Santa Monica residents, calls were also received from residents in nearby neighborhoods, such as Brentwood, West Los Angeles, and Pacific Palisades.

The predominant question asked by the public is where one should go to redeem California Refund Value (CRV) beverage containers for cash now that the Buy-Back Center is closed. In the beginning, staff recommended the two closest rePlanet redemption centers, located in Cheviot Hills and Culver City. Unfortunately, rePlanet – California’s largest recycling center network – abruptly closed all 284 of its locations on August 5, 2019. At the time of writing this report, the closest locations that provide CRV redemption are as follows:

CRV Redemption Locations in or Near Santa Monica (as of October 2019) Business
Name
Business
Type
Address City Note
Bristol Farms Grocery Store 3105
Wilshire
Blvd.

Santa
Monica
Limit of 50 total containers
per customer per day.

Containers must be
properly cleaned.

King’s Liquor Liquor Store 3102 Santa
Monica
Blvd.

Santa
Monica
No restrictions.

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Lucky Liquor Liquor Store 2125
Lincoln
Blvd.

Santa
Monica
Limit of 50 total containers
per customer per day,
unless the store happens
to be not busy at the time
of transaction.

Ponce
Recycling
CRV
Redemption
Center
6040
Venice
Blvd.

Los
Angeles
Seven miles from Santa
Monica. Accepts up to 100
lbs. of plastic bottles, 100
lbs. of aluminum cans,
and 1,000 lbs. of glass per
customer per day.

AB 2020 - The Bottle Bill
Nicknamed the “Bottle Bill,” AB 2020 was a 1986 beverage container recycling and litter reduction bill enacted by the State of California. Under the Bottle Bill, consumers pay five cents of CRV for beverage containers under 24 ounces and 10 cents for containers over 24 ounces. Consumers can get that money back when they redeem their containers at a participating redemption center.

All beverage retailers in California with an annual gross revenue over $2 million are mandated to redeem CRV beverage containers if another redemption center does not exist within a half-mile radius. Alternatively, a beverage retailer can opt for exemption by paying a $100 per day fee to the State.

During the month of August 2019, staff visited nine supermarkets in Santa Monica. Only one grocery store, Bristol Farms at 3105 Wilshire Boulevard, was willing to accept bottles and cans at checkout. Staff spoke to the management staff from each store, and most expressed a disinterest in accepting CRV due to limited parking or had reported the perception that recycling centers may attract undesirable behavior on store premises. As a result, most grocers choose to pay the State the $100 daily exemption fee instead.

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While having a recycling center in the community is convenient for Santa Monica residents and arguably provides economic benefit for those who rely on CRV redemption cash payments to augment their incomes, data does not show that it has a significant impact on the City’s diversion goal. R3 Consulting estimated almost 68% of Santa Monica residents recycle their bottles and cans by placing them in the recycling containers at their homes or businesses. A total of 650 tons of CRV containers were redeemed through the Buy-Back Center in 2018, which represents only 0.5% of total waste generation in Santa Monica or 1% of the City’s total recycled materials. Since the Buy-Back Center closed, staff has noticed a 17% increase in curbside recyclable materials collected, which means even more residents now recycle their bottles and cans by simply placing them in the blue bin.

Although the data demonstrates that a community redemption center does not have a significant impact on the City’s overall diversion number, the opportunity to capture and recover these recyclable materials contribute to achieving the City’s zero waste goal by 2030 and it provides Santa Monica residents a convenient outlet to redeem CRV.

Therefore, staff recommends having in place options for residents to redeem their bottles and cans for cash payment within the City in addition to the CRV redemption locations listed above.

The following is an analysis of two additional recycling options to augment the City’s existing curbside collections.

Option 1: Buy-Back Center
A buy-back center is a facility operated by a State permitted recycler where the public may sell recyclables in exchange for cash payment. Additionally, a buy-back center is a more robust recycling operation than a redemption center that accepts a wide variety of recyclable materials, such as: CRV and non-CRV bottles and cans, cardboard, newsprint, white paper, magazines, e-waste, and scrap metals. The Santa Monica Community Recycling Center, formerly located at 2411 Delaware Avenue and was subsequently closed on June 15, 2019, was an example of a buy-back center. It was operated on approximately 25,000 square feet.

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Santa Monica Community Recycling Center, commonly known as the Buy-Back Center Pros: Difficult to recycle items, such as large metal car parts, are generally accepted at a buy-back center. Many buy-back centers have a drop-off recycling area where the public can drop off bottles, cans, or papers without receiving payment. And just like an on-site MRF, having a buy-back center in the City potentially promotes public outreach and allows for convenient educational tours of the facility.

Cons: Once again, space constraints would be the largest barrier to re-opening a buyback center in the City. Currently, the municipal code allows permanent recycling facility operations in industrial zones only, which essentially means the area where City Yards is located. It would be challenging to find a suitable area at the City Yards to build a robust buy-back center that would provide enough space for vehicular and foot traffic circulation, is away from nearby residents and businesses, and does not impact other potential uses of City property.

Additionally, declining profitability in the current recycling industry could mean fewer interested parties to operate a buy-back center. As mentioned earlier, rePlanet has closed all its outlets around the State, claiming insufficient State fee revenues, declining commodity values, and increased minimum wage and health insurance requirements as some of the reasons behind the closures. Waste Management, the largest waste company in the United States, began scaling back on its buy-back centers in 2013 because it was not economically viable to recover costs. If the City were to bring the operation in-house and staff the buy-back center with City employees, it would face the

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same revenue challenges while incurring high operating costs associated with City wages and health benefits.

Option 2: Mobile CRV Redemption Service Pilot Program
To provide residents with an alternative solution to redeem for bottles and cans, staff recommends creating a mobile CRV redemption service pilot program. After the closure of the Buy-Back Center, staff was approached by a reputable CRV redemption operator about introducing a mobile CRV redemption pilot program to the City. The mobile redemption service would move around the City without a fixed location. In lieu of a traditional building structure, the set-up of the mobile service would include a truck with a 26-foot storage box, pop-up tents for the cash payout line, a space for the recycling truck, and parking for customers. The total space requirement would be approximately 2,500 square feet. The recycling truck would accept CRV bottles and cans only, which customers can redeem for cash payment.

Mobile CRV redemption concept
As a pilot program, a special program agreement would be formalized between the City and the mobile CRV redemption operator to provide this service without the need for formal planning entitlements and permits if it is conducted on public lands. The agreement would be cost neutral, meaning the City would not have to pay nor would the City receive any profit-sharing from the company. For the business idea to be economically viable, the company would require the City’s assistance in securing

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locations on City land for operation that are available six days a week and eight hours each day. The program could be configured in one of the following ways:
a) Multiple recurring public sites, six days a week. For example, the recycling truck can park at the City Yards every Saturday and Sunday from 8 a.m. to 4 p.m., the Santa Monica Airport every Monday from 8 a.m. to 4 p.m., and other publicly owned locations, such as the Civic Center or City parks, on the other three days of the week. Other possible sites may include space at Santa Monica College or in a parking lot owned by the Santa Monica-Malibu Unified School District.
b) One public site six days a week, plus rotating pop-up events at other public sites once a quarter. A fixed location would need to be identified on City land, plus one pre-scheduled, pop-up recycling event hosted at another public site on a quarterly basis. The City would leverage these pop-up recycling events as public outreach opportunities and brand them as family- and community-friendly affairs by having interactive activities to educate and engage the community about recycling and the zero waste lifestyle. Santa Monica College is willing to partner with the City and provide space near the intersection of Pico Boulevard and 14th Street for the quarterly pop-up recycling events, for example. c) One to three days a week in Santa Monica, plus one to three days a week in other cities. The CRV operator is open to the idea of Santa Monica partnering with other neighboring jurisdictions to split the six days among multiple cities.

Under this option, Santa Monica would host the mobile CRV redemption service on one to three designated days every week. This option would require the City to secure other municipal partners who are interested to host the mobile redemption service on the remaining days of the week.

City staff from the RRR Division had a meeting with CalRecycle on September 3, 2019 to discuss this proposed pilot program. CalRecycle is the State authority that manages SB 458, a new beverage container recycling pilot program. Under SB 458, the State is

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seeking up to five new, creative, and innovative pilot projects that would provide convenient CRV redemption opportunities in areas that do not have enough beverage container recycling locations. At the meeting, CalRecycle staff provided favorable initial feedback about the mobile redemption pilot idea and has confirmed Santa Monica met the program’s eligibility requirements.

At the time of this report, the State has not approved any pilot programs under SB 458.

If approved, this pilot program could kick off as early as 2020 and would expire on July 1, 2022. The City has the option to terminate the agreement and seek an alternative service provider prior to program expiration if needed.

Pros: A mobile CRV redemption service pilot program offers the advantage of providing Santa Monica residents with a convenient, nearby option to redeem CRV beverage containers for cash without the complexity of committing the City to a long-term contract or encumbering a large area of City property for a buy-back center. The program is essentially cost-neutral to the City and to rate payers, with the bulk of the cost being staff time in administering the program. The pilot program expires in 2022, which affords the City the flexibility to gauge the concept’s success within a short and defined timeframe and determine if it would be an appropriate option in the long run. If approved, Santa Monica would be one of the first municipalities in the State of California to have a mobile CRV redemption program under SB 458. The program would align with the City’s reputation as a sustainability leader.

Since the Buy-Back Center shut down in June, people have been primarily asking for a place to redeem their CRV bottles and cans more than any other types of recyclable materials, and many inquiries come from the Pico neighborhood. Having CRV redemption services available within the City would be a convenience for customers, while having quarterly pop-up recycling events at other public sites throughout the City may help re-brand recycling as a community-friendly activity and provide a more accessible outlet for public engagement and zero waste outreach.

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Cons: Staff has not secured any public sites thus far, and finding a suitable space to host the mobile redemption service has proven to be complicated. RRR staff has engaged other City departments and divisions who oversee City-owned properties, parks, and parking lots, including: Architecture Services, Community and Cultural Services, Housing and Economic Development, Planning and Community Development, Public Landscape, and Santa Monica Airport. Moreover, staff has also reached out to Santa Monica College, Santa Monica-Malibu Unified School District, and Downtown Santa Monica, Inc. Most groups expressed concerns with space constraints, while others reported logistical and operational issues. Santa Monica College is the only community partner that has agreed to permit the pop-up recycling events up to four times a year. Additionally, the City of West Hollywood has expressed an initial interest in splitting up the six days of operation and hosting the redemption service on some of the days in its City.

Buy-Back Center Mobile CRV Redemption Service
Pros
• Accepts more types of materials
• Drop-off recycling area
• Convenient access to tours
Cons
• Insufficient space at City Yards
• Difficulty in locating operators due
to declining overall profitability in
current recycling marketplace
• Lacks cost efficiency if the City
were to operate it
Pros
• Minimal space requirement
• Minimal cost to the City
• Low commitment means more
flexibility
• Pop-up recycling events promotes
community engagement
• Less anticipated neighborhood
opposition
• Suits the community’s needs
• Fosters zero waste culture
• One of first SB 458 pilots in the
State
Cons
• No secured sites confirmed for
weekly recurring locations
Staff Recommendations

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After a thoughtful consideration of the available options, comments from the City Council at the May 28, 2019 Council meeting, and feedback from various community stakeholders, staff recommends the following:

Adopt the Zero Waste Plan Update. Staff recommends the City Council adopt the Zero Waste Plan Update and approve the priority actions detailed in the Plan Update.

Off-Site Curbside Recyclable Materials Processing. Staff recommends off-site processing of curbside recyclable materials as part of the City’s zero waste strategies.

Off-site processing allows the City to utilize limited public land to explore the highest and best use in waste diversion solutions, may lead to a potentially shorter-term processing contract, offers the flexibility to pivot if the City’s needs change, and may cause less environmental concerns from neighboring residents and businesses around the City Yards. Staff further recommends issuing a Request for Proposal for off-site curbside recyclable materials processing services for a shorter initial term of two years plus three one-year renewal options in order not to bind the City in a long-term commitment in this dynamic recycling landscape. The RFP would also request proposers to provide end-market information (i.e. where Santa Monica’s materials are sold) and a commitment to frequent waste audits, contamination tracking, and partnership with public education efforts. Concurrently, this recommendation would require the issuance of a Request for Proposal for recyclable materials transferring service.

Mobile CRV Redemption Service Pilot Program. Staff recommends continuing to locate nearby municipal jurisdiction(s) who are willing to co-participate in the SB 458 Beverage Container Recycling Pilot Program and creating a special program of providing mobile CRV redemption service. This option provides flexibility, minimal space requirement, potential in recycling education, and ability to meet the community’s request for convenient CRV redemption. Specifically, if the City can secure other municipal partners, staff recommends hosting the CRV redemption service in the City one to three days a week with the other partnering jurisdiction(s) hosting the remaining days of the week in their areas. Moreover, additional pop-up recycling events can be

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scheduled on a quarterly basis at other public sites, such as Santa Monica College or a parking lot at the Santa Monica Airport, a City park, the Civic Center, or potentially space at the Santa Monica-Malibu Unified School District.

Next Steps and Timeline
Zero Waste Plan Update
• Staffing and budget request for the identified priority actions – FY 2019-21 budget cycle
• Develop a zero waste ordinance – CY 2020-21
Off-Site Curbside Recyclable Materials Processing
• Issue RFPs – December 2019
• Conduct proposal evaluation and contract negotiation – January-June 2020 • Execute new contracts – July 2020
Mobile CRV Redemption Service Pilot Program
• Secure municipal partners for pilot program – Fall/Winter 2019 • Submit application to CalRecycle – Spring 2020
• CalRecycle approves pilot program – Spring 2020
• Planning and program development – Spring/Summer 2020 • Pilot program begins – Summer 2020
Solid Waste Rate Study
• Presentation of rate study findings to City Council – Spring 2020 • Rate adoption – July 2020
Financial Impacts and Budget Actions
The recommended priority actions in the 2019 Zero Waste Plan Update are estimated to cost approximately $1 million annually for the Resource Recovery and Recycling Fund, inclusive of in-house staffing costs and other operational expenses. This is used as a marker for the most expensive option. If Council adopts the Plan Update, staff will

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return to Council as early as FY 2019-20 Mid-Year for the appropriation of budget and positions. The costs of the off-site curbside recyclable materials processing contract and materials transferring contract are unknown at this point, pending the outcome of the RFPs. The estimated cost for the mobile CRV redemption service pilot program is minor and would be absorbed by the existing operating budget. At the time of this report, staff anticipates the Resource Recovery and Recycling Fund to remain self-sustaining until the next rate adjustment. A solid waste rate study is currently underway to analyze the need for rate increases in FY 2020-21 consistent with the Zero Waste Plan Update and recycling costs. Staff will return to the City Council in the spring of 2020 to discuss the solid waste rate study findings and seek approval for rate adjustments.

Prepared By: Melissa Spagnuolo, Administrative Services Officer Approved Forwarded to Council
Attachments:

A. March 19, 2013 Staff Report (Web Link)
B. State Environmental Legislations - AB 939, AB 341, AB 1826, and SB 1383 C. August 14, 2018 Staff Report (Web Link)
D. 2019 Zero Waste Plan Update
E. 2019 Zero Waste Plan Update Community Outreach - Summary Sheet F. 2019 Zero Waste Plan Update Community Outreach - Presentation G. 2019 Zero Waste Plan Update Community Outreach - Community Survey H. May 28, 2019 Staff Report (Web Link)
I. Written Comments
J. PowerPoint Presentation

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ZERO WASTE

PLAN UPDATE

FINAL REPORT
September 23, 2019
A 2020-2024 ROADMAP TO REDUCE, REINVENT,
RECAPTURE, AND RECYCLE SANTA MONICA’S

WASTE MATERIAL STREAMS

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ZERO WASTE PLAN UPDATE
Table of Contents

FINAL REPORT
Report Contributors
The following organizations and individuals contributed to the research, preparation, review, and evaluation of the City of Santa Monica Zero Waste Plan Update.

CITY OF SANTA MONICA
Task Force on the Environment
Mark Gold
Erik Neandross
Garen Baghdasarian
Robert Lempert
Susan Mearns
David Pettit
Dean Kubani
Reource Recovery and Recycling Division
Chris Celsi
Yvonne Yeung
Daniel Pankau
Erin Carr
Office of Sustainability and the Environment
Shannon Parry
James Velez-Conway
Planning and Community Development
Department
Peter James
Public Works Department
Susan Cline
Salvador Valles
R3 CONSULTING GROUP, INC.

Garth Schultz, Principal
Natalie Lessa, Project Manager
Emily Ginsburg, Senior Project Analyst
Claire Wilson, Project Analyst
ABBE and ASSOCIATES, LLC
Ruth Abbe, Principal
HDR ENGINEERING, INC.

John Carlton, Planning Lead

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ZERO WASTE PLAN UPDATE
Table of Contents

FINAL REPORT
Table of Contents
Sections
1 Executive Summary ........................................................................................................... 1 2 State Requirements and Diversion Assessment and Opportunities Analysis................... 9 3 Recommended Zero Waste Actions ............................................................................... 15 4 Projected Outcomes and Timeline ................................................................................. 35 Tables
1 Summary of Priority Actions for Zero Waste Achievement.............................................. 6 2 Additional Diversion Potential by Zero Waste Action..................................................... 36 3 Estimated Annual Greenhouse Gas Emission Reduction................................................ 38 4 Estimated Average Annual Implementation Costs by Zero Waste Action...................... 39 5 Initial Estimated Rate Impacts by Zero Waste Action..................................................... 40 Figures
1 Projected Implementation Timeline ................................................................................. 7 2 Santa Monica Diversion Rate in Tons by Year................................................................. 11 3 Diversion Levels by Sector Based on Participation Levels............................................... 12 4 Estimated Contents of Santa Monica’s Landfilled Materials by Sector.......................... 13 5 Zero Waste Program Team Organization Chart.............................................................. 17 6 Additional Diversion Potential by Sector and Action...................................................... 36 7 Estimated Reduction in MTCO2 by Zero Waste Action................................................... 38

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ZERO WASTE PLAN UPDATE
Table of Contents

FINAL REPORT
Appendices
A 2014 Santa Monica Zero Waste Strategic Operations Plan B Status of Strategy Implementation
C Status of Zero Waste Goals
D Santa Monica Additional Diversion Potential Analysis
E Santa Monica Cost Estimate by Action

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ZERO WASTE PLAN UPDATE
Section 1 – Executive Summary

FINAL REPORT
SECTION 1 Executive Summary

BACKGROUND
The City of Santa Monica (City) has a history of leadership in the field of environmental sustainability. The City has made multiple commitments to reduce waste sent to landfills (and associated greenhouse gas emissions) including its goals in the 2019 Climate Action and Adaptation Plan (CAAP) and investment to review and update to its 2014 Zero Waste Strategic Operations Plan (2014 ZWP, included as Appendix A).

This 2019 Zero Waste Plan Update (2019 ZWP Update) reviews the implementation status and outcomes of the waste reduction and diversion strategies included in the 2014 ZWP, is consistent with the City’s CAAP, and recommends priorities for implementation in the next five years.

HISTORY OF THE PROCESS
On June 23, 2009, the City Council directed staff to develop a Zero Waste Strategic Plan to enhance Santa Monica’s waste diversion operations and reduce landfill disposal. The Zero Waste Planning Committee, comprised of the Resource Recovery & Recycling Division (RRR), the Office of Sustainability and the Environment (OSE) and the City’s private partners, Southern California Disposal and Allan Company, was established to effectively design and implement the City’s Zero Waste program. Numerous meetings were held to discuss potential resource recovery policies, programs, and infrastructure, resulting in a collaborative effort to implement of several programs including a pilot residential yard trimmings and food scraps program, expansion of the commercial food scraps program, and audits of landfills to determine diversion rates. The 2014 ZWP was developed to serve as a broad environmental and policy framework to guide Santa Monica on its path to Zero Waste: 95% diversion of waste from landfill by 2030, or a per capital disposal rate of 1.1 pounds per person per day (PPD).

Many community members, City staff, commissions, and other stakeholders contributed to the 2014 ZWP’s development, including its three top guiding principles: healthy community, waste reduction, and education and outreach. This spirit of teamwork continues in creating the 2019 ZWP Update to build on past successes and identify new actions Santa Monica can take to achieve its Zero Waste goals.

WHAT IS ZERO WASTE?
Zero Waste is the conservation of all resources by means of responsible production, consumption, reuse, and recovery of products, packaging, and materials without burning and discharges to land, water, or air that threaten the environment or human health.

Working towards Zero Waste is critically important for protecting people and planet, and as a shared goal is ethical, economical, efficient and visionary. Zero Waste guides people in changing their lifestyles and practices to emulate natural cycles, where discarded materials become resources for others to use.

Everyone can participate in Zero Waste regardless of age, income level or background, and benefit from

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ZERO WASTE PLAN UPDATE
Section 1 – Executive Summary

FINAL REPORT
the improved environmental health and economic opportunity resource recovery brings. Zero Waste is also an invitation and opportunity to join in a global sustainability movement.

WHAT DOES ZERO WASTE MEAN TO SANTA MONICA?
When Santa Monica developed its Zero Waste plan in 2014, the City defined its Zero Waste goal as a 95% reduction from the State's measurement of the City's 2004-2006 waste generation estimate of 21.8 pounds per capital disposal (PPD) by Year 2030. A 95% reduction of 21.8 PPD equals to approximately 1.1 PPD by 2030. The measure of diversion reflects how well the City is diverting materials away from landfills and putting materials in recycling and organic containers. Per capita disposal (PPD) measures how well the City is reducing the overall amount of materials that are sent to the landfill. To achieve Zero Waste, the City must both increase its current diversion rate of around 40% by increasing recycling and organics collection and reduce its 5.0 PPD by discarding less materials as garbage. The City can make significant strides towards its Zero Waste goals over the next five years. However, additional effort and continuous improvement will be needed to achieve a 1.1 PPD by 2030.

ZERO WASTE IN SANTA MONICA’S CLIMATE ACTION AND ADAPTATION PLAN Solid waste disposed in the landfill generates methane gas and contributes to the City’s carbon footprint.

Increasing recycling and composting rates will be critical to meeting the City’s goal to achieve Zero Waste to landfill by 2030 and to reduce greenhouse gas(GHG) emissions. The City adopted its CAAP in June 2019 that includes 11 strategies related to solid waste, with the goal of reducing total carbon emissions by 3% and meeting the City’s 95% diversion of waste from landfill by 2030.

1. Implement citywide organics recycling

2. Zero waste outreach and education

3. Institute wet-dry sorting system for
businesses

4. Implement pricing signals to increase
diversion

5. Increase construction and demolition
debris diversion requirements

6. Implement material and landfill bans

7. Expand the reuse and repair economy

8. Foster a food waste prevention
network

9. Incentivize reusable containers and
packaging

10. Support and pilot extended producer
responsibility programs

11. Explore waste-to-energy conversion
technologies

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FINAL REPORT

REVIEW OF ZERO WASTE PERFORMANCE TO DATE
The City has not yet implemented many of its Zero
Waste strategies, and as a result, is not meeting
most of its Zero Waste goals. A review of the specific
2014 ZWP strategies are discussed in Appendix B of
this Update. Reasons that implementation of the
2014 ZWP has largely not yet occurred include a
focus on achieving optimal day-to-day waste
collection customer service as opposed to long-term
zero waste strategic planning, unclear
responsibilities, staff attrition, organizational
inertia, and the fact that the strategies
recommended in the 2014 ZWP were not better
prioritized for the City. This ultimately resulted in deprioritization of Zero Waste strategies and minimization of staff and organizational buy-in to
the 2014 ZWP.

Additionally, there were no apparent accountability
and reporting mechanisms in place with respect to ZWP implementation, which, given staff attrition, resulted in more obscurity about responsibilities. Another reason for delayed implementation could be lack of adequate financial and staffing resources. This 2019 ZWP Update, therefore, focuses on providing a concise set of actions along with clear staffing responsibilities and resources to implement the recommended actions.

PROJECTED OUTCOMES
Initial estimates of anticipated diversion, GHG emissions reductions, and implementation costs for the five priority Actions (Actions) are described in Section 4 of this 2019 ZWP Update. In terms of diversion, full implementation of recommended priorities could result in an approximately 24% reduction to the City’s disposal by 2024, as measured in pounds per person per day of waste sent to landfill. Specifically,

5.0 PPD could be reduced to 3.8 PPD by 2024, which would be an additional 20,800 tons of waste diverted from landfill and an estimated 28,600 metric tons of carbon dioxide equivalent reduction. This is the equivalent to the annual emissions from 5,641 passenger vehicles, conserving 1,394 households’ annual energy consumption, or conserving 27,586 barrels of oil.

In terms of cost, the average annual cost of implementation for the recommended priorities is projected at an annual average cost of approximately $1,087,000. If the City were to fund all priority Actionsthrough the rate base, over time the City’s solid waste rates would need to increase by approximately 3.3% to cover the average annual cost of implementation. For single family customers with a 95-gallon garbage cart, this would be an additional approximate $1.80 per month based on 2019 rates. For commercial customers, the additional dollar amount added per month would be $2.62 for a two cubic yard garbage container collected once per week based on 2019 rates.

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DEVELOP A ZERO WASTE PROGRAM TEAM
A necessary precursor to implementing the recommended suite of Actions is for the City to establish a new Zero Waste Program Team housed within the Resource Recovery & Recycling Division of the Public Works Department. The Zero Waste Program Team would be charged with the responsibility for implementation. This 2019 ZWP Update recommends creation and funding of a new seven-person Zero Waste Program Team (comprised of two existing positions and five new ones, as further discussed in Implementation in Action: Develop a Zero Waste Program Team on pages 16 and 17) and to implement the recommended Actions and provide annual reports on plan implementation and progress. The Zero Waste Program Team would report to the RRR Manager.

PRIORITY ACTIONS FOR 2020-2024
Based on review of Zero Waste progress to date, an evaluation of the City’s Zero Waste Goals, and with consideration of the current needs and objectives of the City, this 2019 ZWP Update recommends a prioritized suite of Actions designed to further the City’s progress towards its Zero Waste goals. These Actions are dependent on the City’s ability to first develop a Zero Waste Program Team to implement the Actions below.

1. Develop a Zero Waste Program Team

2. Create, Implement, and Enforce a Comprehensive Zero Waste Ordinance

3. Create, Implement, and Enforce an Edible Food Recovery Program

4. Provide Proactive Technical Assistance and Community Engagement

5. Develop and Implement a Zero Waste Communications Plan These Actions encapsulate strategies already identified in the City’s 2014 ZWP and 2019 CAAP. To be clear, the 2014 ZWP’s strategies were not – in and of themselves – the reason that ZWP implementation is behind schedule. The strategies included in the 2014 ZWP were, and remain, generally representative of the types of Actions the City does, in fact, need to take in order to meet its Zero Waste goals. That said, the ZWP implementation status is at least partially attributable to the fact that the strategies recommended in the 2014 ZWP were not better prioritized for the City. This 2019 ZWP Update, therefore, does not seek to replace or supersede the 2014 ZWP but, rather, to strategically identify and prioritize a more refined set of Actions for implementation in coming years. It is important to note that the strategies identified in the 2014 ZWP remain, for the most part, potentially viable and can remain in the City’s quiver for future reconsideration, adaptation, and potential implementation.

PLAN UPDATE GOAL
The 2014 ZWP establishes the City’s zero waste goal as 95% reduction, or diversion of waste from landfill, from the State's measurement of the City's 2004-2006 waste generation estimate of 21.8 pounds per capital disposal (PPD) by 2030. In other words, the goal is to achieve a per capita disposal rate of 1.1 pounds per person per day by 2030. While the City has reduced its overall disposal since the adoption of its 2014 ZWP, it appears that the City is not on track to meet the milestone of 3.6 PPD in 2020 and will

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need to dramatically decrease disposal in order to meet the 1.1 PPD target set for 2030. It is recommended that the City monitor and report annually on progress towards its 1.1 PPD target set for 2030 and prepare a Zero Waste Plan Update in 2024 to identify new and expanded policies and programs to help achieve the City’s 2030 goal.

PROJECTED TIMELINE
It is recommended the City embark on a focused five-year implementation period for the five priority Actions identified in this 2019 ZWP Update in keeping with the figure shown on the following page.

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TABLE 1 – Summary of Priority Actions for Zero Waste Achievement Startup
Year Action* Objective Average Annual Cost Tons Diverted Change in GHG
Emissions
(MTCO2)
2020 1. Develop Zero Waste
Program Team
Create five new Zero Waste Program Team
positions Included below
2020

2. Create, Implement
and Enforce
Comprehensive Zero
Waste Ordinance
Require all generators to participate in recycling
and organics programs, enhance construction
and demolition debris recycling requirements,
and reusable food ware for dine-in restaurants.
$269,000 6,600 7,300
2020

3. Create, Implement
and Enforce an Edible
Food Recovery
Program
Require grocery stores, restaurants and other
food generating businesses to recover edible
food currently disposed and collaborate with
food recovery organizations to help feed people
in need.
$109,000 700 2,900
2020

4. Provide Proactive
Technical Assistance
and Community
Engagement
Provide technical assistance to help commercial
and multi-family generators with the greatest
potential for higher diversion. Engage residents
through in-person Zero Waste education.
$600,000 12,000 16,400
2020

5. Develop a Zero
Waste
Communications Plan
Develop and execute a robust communications
plan to educate the community and tourists on
Zero Waste. $109,000 1,500 2,000
Total Average Annual Cost $1,087,000 20,800 28,600
*Action 2 through Action 5 are dependent on the establishment of the Zero Waste Program Team (Action 1), as further described on p.16 & p.17.

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FIGURE 1 – Projected Implementation Timeline
2020

1. Hire Zero Waste Program Team.

2. Develop comprehensive Zero Waste policy
covering mandatory recycling and
organics program, enhanced construction
and demolition debris recycling
requirements, and expand the City’s ban
on single-use plastics.

3. Stakeholder and community engagement
on the zero-waste policy; complete
ordinance revisions.

4. City Council considers and adopts Zero
Waste policy. Begin phased
implementation.
2021

1. Proactive development of SB 1383 policy
and systems to recover edible food for
those in need.

2. Ensure SB 1383 preparedness.

3. Development of outreach and educational
materials to support implementation
efforts.
2022

1. Community engagement and
technical assistance for multifamily and commercial generators.

2. Begin enforcement of Zero Waste
policy.
2023

1. Implement formalized social
media plan.

2. Create online content and
enhance educational materials to
engage the community and visitors
in Zero Waste programs.

3. Begin assessing penalties for noncompliance with edible food participation ordinance.
2024

1. Maintain and monitor prior
Actions taken to support Zero
Waste achievement.

2. Fully evaluate progress and
attainment towards the
community’s Zero Waste goal.

3. Identify new and expanded Zero
Waste Actions for
implementation over the next
five years in a 2024 ZWP
Update.
2025 – 2029

1. Implement the 2024 ZWP
Update priority Actions.

2. Maintain Zero Waste policies
and programs.

3. Continue to monitor and
report out on progress.

Set the Foundation
2020-2021
Engagement and Enforcement
2022-2023
Maintenance and Monitoring
2024-2029

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SECTION 2 State Requirements and Diversion Assessment
and Opportunities Analysis
This section presents background information on applicable State laws and data on waste diversion for the community, overall and by sector. It also identifies the recoverable resources that are most often not captured and removed from the disposal stream. This analysis guides the recommendations for how to approach improvements in capturing these resources for each sector which tie to the strategies proposed in this 2019 ZWP Update.

STATE LAWS
In addition to the Zero Waste goals that were set in the City’s 2014 ZWP, the City must also comply with new and existing State Laws including AB 341, AB 1826, and SB 1383. Each of these laws have requirements for the jurisdiction to provide resources, outreach, education, and monitor progress and compliance for its recycling and organics programs. Progress and efforts towards these goals are currently reported to the State annually in the Electronic Annual Report (EAR).

AB 341 – Mandatory Commercial Recycling
AB 341 increased the statewide diversion goal to 75% and instituted mandatory recycling service for all businesses, multi-family properties (5 units or more) and public entities that generate more than four cubic yards of solid waste per week. Additionally, the bill requires education and outreach programs be implemented to inform generators cover by the bill of their obligation to meet the terms of the regulation.

To measure efforts made to comply with this policy, CalRecycle requires an annual report which details the commercial recycling program, including education, outreach, and monitoring.

AB 1826 – Mandatory Commercial Organics Recycling
AB 1826 expanded mandatory commercial and multi-family residential recycling requirements to add organics recycling. Covered generators are generally in alignment with those covered under AB 341. AB 1826 requires jurisdictions to identify covered generators that will be subject to compliance, ensure that organics recycling services are available to them, and perform outreach, education, and compliance monitoring to make them aware of the requirement to participate. As with AB 341, CalRecycle requires reporting on program offerings and compliance efforts.

SB 1383 – Short-Lived Climate Pollutants
SB 1383 sets a goal to reduce organic waste by 50% from the 2014 level by 2020 and 75% by 2025.

Additionally, the bill establishes a target of recovering 20% of currently disposed edible food for human

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consumption by 2025. The law’s requirements are still under development and, though the latest draft with specific regulatory language was released by CalRecycle in December 2018, adjustments may be made until requirements become effective on January 1, 2022. Although the exact language and details of this bill are not yet finalized, current draft regulations present the following potential impacts and requirements for local jurisdiction:
 The City will need to provide an implementation report demonstrating compliance by April 1, 2022;
 The City will need to provide organics collection service to all generators;  The City’s garbage containers are currently black for garbage, blue for recyclables and green for organics; some retrofits to the bins (where black bins are used for organics) may be needed, as well as adding signage to bins that are currently unlabeled;  The City will need to expand its pilot food rescue program (with Global Green) and incorporate additional features such as: conducting outreach to edible food generators and providing a list of food recovery organizations to generators;
 The City may be required to impose penalties on generators that fail to comply;  The City may be required to purchase products made from organics (such as compost and mulch) for internal City use; and
 The City may be required to adopt ordinances mandating local use of finished products made from organics.

CURRENT DIVERSION
The City’s progress towards Zero Waste can be measured by the amount of recyclable and organic material that residents and businesses divert from landfill disposal. Figure 2, on the following page, shows Santa Monica’s diversion rate from 2015-2018. Contamination (i.e., materials wrongly placed in recycling and/or organics collection containers and ultimately disposed) is included in total landfilled materials.

While diversion from landfill disposal has improved slightly, discarded materials generated by the Santa Monica community are mostly landfilled, indicating an opportunity for Santa Monica residents and businesses to recycle and compost more materials.

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FIGURE 2 – Santa Monica Diversion Rate in Tons by Year
However, not all of the City’s generators throw away the same amount or type of discarded materials.

Figure 3, on the next page, depicts current amount of material collected as garbage, recycling, and organic materials for different generator sectors in Santa Monica: single family curbside carts (SFD), commercial containers (COM), and multi-family containers (MFD). Collected tons have been allocated according to subscription levels by sector to estimate their diversion rates.

While single family residents have excellent levels of participation in waste diversion programs (likely exceeding the 90% target set for 2020), multi-family residents and commercial businesses have lower levels of participation: the commercial and multi-family sectors have the most need for improvement with 11% and 21% diversion respectively. Both of these sectors also generate the majority of the material, making them the most important sectors to target for high impact change. Single family customers have a much higher level of diversion with 61%, but still has room for improvement. -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2015 2016 2017 2018
Tons
Landfilled Waste Recycled Waste Composted Waste Recycled Construction & Demolition Waste 38%
35% 35%
40%

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FIGURE 3 – Diversion Levels by Sector Based on Participation Level Of the roughly 1,600 commercial customers in the City, only about 185 or 12% subscribe to both recycling and organics collection services. Likewise, of the roughly 3,000 multi-family customers in the City, only about 115 or 4%, subscribe to both recycling and organics collection services. While these figures may be understated due to the fact that some, if not many, commercial and multi-family customers may share recycling and organics collection containers, data regarding which customers share what recycling service is not available.

Based on overall garbage, organics, and recyclables service levels tracked by the City, it is clear that commercial and multi-family customers are not achieving high levels of participation in waste diversion programs. As shown in Figure 3 above, landfilled tons attributable to commercial and multi-family customers (shown in grey) are far higher than organics (shown in green) and recycling (shown in blue) for those customer types. This is in contrast to the levels of participation observed for single family customers.

Single family customers are achieving an approximate 61% diversion rate based on subscription levels, whereas commercial customers are achieving approximately 11% and multi-family customers are achieving approximately 22%.

UNCAPTURED MATERIALS
The recyclable and compostable materials found in Santa Monica’s garbage represent the potential to divert more resources from landfill disposal. Breaking down the landfilled materials bar in Figure 3 using the 2014 State Waste Characterization Study, Figure 4 shows what recoverable materials are being thrown away. Across sectors, organic materials and paper comprise the bulk of landfilled materials. Improved source separation and source reduction of these materials would significantly reduce Santa Monica’s -
5,000
10,000
15,000
20,000
25,000
30,000
35,000

COM MFD SFD
Tons per Year
Garbage Organics Recycling
11% Diversion by
Subscription
Levels
21% Diversion by
Subscription Levels
61% Diversion by
Subscription Levels

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landfilled materials. Most disposed materials could also be captured for recovery, with the exception of residue and some special wastes.

FIGURE 4 – Estimated Contents of Santa Monica’s Landfilled Materials by Sector

CONTAMINATION
Contamination rates for Santa Monica are well above maximum targets set by the 2014 ZWP (contamination reduced to 2% by 2015, 1% by 2020). The reported contamination rate for collected recyclables varies over time, but is generally above 20% while the contamination rate for collected organics is generally above 5%. While these contamination rates are above the targets set in the 2014 ZWP, they are comparable to other communities. Overall, contamination rates are important as they are a measure of how well residents and business are sorting their recyclable and organic materials because higher contamination can increase the cost of processing for recovery. The City will continue to track contamination of its recyclable and organic materials and reduce contamination through implementation of this 2019 ZWP Update.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Single Family Multi-Family Commercial
Organic Paper Inerts Plastic Special Glass Metal Residue Electronics

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SECTION 3 Recommended Zero Waste Actions
This section summarizes a concise set of five strategic Actions for the City to implement in the next five years. To be clear, the following priority Actions are already largely described and identified in the 2014 ZWP and in the City’s 2019 CAAP, including applicable GHG emissions and cost estimates. This 2019 ZWP Update is not intended to broadly override or supersede the prior plan. Instead, this 2019 ZWP Update focuses the City’s resources and attention on a suite of high priority Actions which would immediately improve Santa Monica’s Zero Waste achievement while also facilitating the City’s required compliance with State mandates. Additionally, priority Actions would fulfill 10 of the solid waste actions identified in the CAAP1 and include a targeted approach to reduce disposed organic materials which generate significant greenhouse gases.

The City will conduct another ZWP Update in
2024 to evaluate its progress towards Zero
Waste using the goals, indicators and targets
identified in the original 2014 ZWP2
, and
evaluating the implementation status of the
priority Actions described below. To the
degree that descriptions vary from the
descriptions in other planning documents, it is
because there are a variety of ways to fulfill
these priorities. The City will adapt
recommendations as needed to ensure that
action is not deferred due to lack of agreement
on the details.
1 The outlier being CAAP action #11 (Explore waste-to-energy conversion technologies) which is not addressed in this 2019 ZWP Update. Actions the City takes in the next five years should focus on improving participation in the City’s current recycling and organics programs. The City may conduct a separate study of waste-to-energy conversion technologies to fulfill this action.
2 With the clarification that the percentage diversion targets are calculated via the CalRecycle diversion equivalent calculation methodology described elsewhere herein.

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ACTION #1: Develop a Zero Waste Program Team
The 2014 ZWP and 2019 ZWP Update represent a significant undertaking for the City. Dedicated staff resources will be needed to implement specific policies and programs. The City has multiple departments/divisions engaged in the development and implementation of the plan. It is essential that the plan identify appropriate roles and responsibilities for each department/division in carrying out the strategies identified in the plan. Overall, based on estimates of staffing needs for program implementation, it should be anticipated that the City’s Zero Waste Program Team would require the following five 5.0 FTE new positions and the reclassification of one 1.0 FTE existing position:
 One 1.0 full-time equivalent (FTE) new Senior Sustainability Analyst to manage the Zero Waste Program and Team, conduct research, undertake implementation of programs, and be the primary responsible party for Action #1, including associated administrative code enforcement authority.
 One 1.0 FTE new Zero Waste Coordinator to assist the Senior Sustainability Analyst and be the primary responsible party for Actions #3 and #5, including associated administrative code enforcement authority.
 Three 3.0 FTE new Zero Waste Assistants and the reclassification of one 1.0 FTE existing Project Support Assistant to Zero Waste Assistant for a total of four Zero Waste Assistants, with primary responsibility for Action #4 including contamination monitoring.  Approximately $250,000 to $350,000 per year in outreach, education, production and special services to support program activities.

The five 5.0 FTE new Zero Waste positions could join with the existing 1.0 FTE Senior Sustainability Analyst (whose duties are primarily focused on matters of State reporting and compliance) and the existing 1.0 FTE Project Support Assistant (to be reclassified to Zero Waste Assistant) for a total of a seven-person 7.0 FTE Zero Waste Program Team with the organizational structure as shown in Figure 5. Costs for these positions are identified in Appendix E.

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FIGURE 5 – Zero Waste Program Team Organization Chart
Five 5.0 FTE Net New Positions Recommended for Hire in 2020 RRR Manager
(Reclassified) from Project
Support Assistant to Zero
Waste Assistant
(Proactive Technical
Assistance, Monitoring)
Zero Waste Assistant
(Proactive Technical
Assistance, Monitoring)
Zero Waste Assistant
(Proactive Technical
Assistance, Monitoring)
Zero Waste Assistant
(Proactive Technical
Assistance,
Monitoring)
Senior Sustainability
Specialist
(State Compliance and
Reporting)
Senior Sustainability Analyst -
(Zero Waste Ordinance Development,
Enforcement)
Zero Waste Coordinator
(Edible Food Recovery and
Communication Plan)
= Existing RRR Position
= New Zero Waste Program Team Position

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ACTION #2 Create, Implement, and Enforce a Comprehensive Zero Waste Ordinance

POLICY SUMMARY

ADDITIONAL POTENTIAL
DIVERSION 6,600 tons IMPLEMENTATION
START 2020

GREENHOUSE GAS
REDUCTION 7,300 MTCO2

AVERAGE ANNUAL
COST ESTIMATE $269,000
2014 ZWP STRATEGIES 1, 2, 3, 4, 5, 6, 7, 8 CAAP ACTIONS 1, 6, 9, 10 Objective
Achieve a higher level of diversion from landfill disposal by requiring all generators to participate in recycling and organics programs, enhancing construction and demolition debris recycling requirements, and encourage and/or require the use of reusable food ware.

Description
A comprehensive policy approach to zero waste is needed to create a strong framework to support high diversion program implementation and advance community action. Developing inter-related sections of municipal code that together holistically address the discarded materials generated by residents and businesses within the City will serve to complement other actions and streamline implementation efforts.

Require Mandatory Recycling and Organics Program Participation To maximize the potential of Santa Monica’s three-stream system, all generators should be required to participate in recycling and organics programs. Creating mandatory recycling and organics requirements is an alignment with State legislation and clearly sets the expectation that everyone take action to reduce their waste. This message should be positively affirmed through conducting education to all members of the community.

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Updating the municipal code for mandatory recycling and organics collection program participation would simplify and streamline implementation of State legislation, as well as emphasize that Zero Waste is a community effort. The City can partner with community groups to spread the message across targeted waste generator sectors, and ensure technical assistance services are available to help customers comply (Action #4). A multi-media and multi-lingual approach is recommended to ensure the message is widespread (Action #5). A positive messaging approach is important to explain this Action is in support of the community’s Zero Waste goal, reflects increasing State legislative requirements, and encourages everyone to participate in helping Santa Monica be a sustainable community.

Mandatory subscription to recycling and organics collection services also lifts the responsibility for generators to voluntarily subscribe.

Instead, each customer would be provided with recycling and organics containers from RRR, with service level sized appropriately to manage the materials generated. With individualized technical assistance (Action #4) and waste diversion infrastructure in place, all generators will have the tools and support needed to be successful.

Adequate enforcement of mandatory requirements is also crucial for achieving and maintaining high participation. This includes monitoring the proper use of containers so as to minimize contamination of recyclables and organics because contamination impairs waste diversion efforts by increasing the cost to process collected materials and reducing their recoverability. It is not enough to subscribe – how well customers participate in recycling and organics programs is what ultimately determines their success.

Enhance Construction & Demolition (C&D) Debris Recycling Requirements Building projects produce large amounts of C&D debris that often end up in a landfill despite their potential to be reused or recycled. The City’s current C&D Ordinance sets a 70% diversion requirement of total material generated by each covered project. To enhance C&D debris recovery efforts, covered projects could be required to recycle C&D materials by using the services of the permitted C&D haulers or by self-hauling C&D materials, or by employing a City-approved deconstruction contractor. Loads should be directed to third-party certified facilities proven to have good processes in place to maximize recovery.

Changing the focus from hitting a percentage diversion target to achieving high diversion of all recoverable materials generated would increase the overall amount of C&D diverted from landfill disposal. Oversight of C&D diversion by project could be streamlined by requiring that all covered projects track diversion and disposal through the use of simplified C&D forms and/or through an online platform such as Green Halo.

For greater resource recovery, technical assistance and outreach should be actively provided to permit applicants through the building counter and online.

City staff will work with the Building and Safety Division to implement a program in which all C&D materials must go to high diverting facilities and/or development of additional policies to promote recycling (i.e., deconstruction ordinance, requiring source separation of materials on-site, prohibiting the disposal of readily recyclable C&D materials). The shift away from focusing on diversion and the

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generator’s ability to recycle to the requirement of materials going to facilities that achieve high C&D diversion rates will not only increase the City’s C&D diversion rate but be less time for staff to review weight tickets and diversion calculations for each covered project.

Update Disposable Food Service Ware Ordinance
The City adopted a Non-Marine Degradable Disposable Food Service Ware ordinance on January 1, 2019 prohibiting the use and distribution of plastics and other non-marine degradable food service ware (cups, plates, straws, accessories) from food or beverage providers. The ordinance targets a range of single-use plastic products, which will reduce the amount of non-recyclable plastics destined for disposal and demonstrate Santa Monica’s strong commitment to reducing materials sent to landfill.

While the City is currently in the early phases of implementation and enforcement (which began July 1, 2019), a growing number of cities and counties in California are addressing the problem of single-use plastics through food ware ordinances. Municipalities including Alameda, San Francisco, Manhattan Beach, Malibu, and Santa Cruz County have similar bans on single-use plastics. Other cities like Berkeley, San Anselmo, and Watsonville have passed additional requirements including disposable cup charges ($0.10-$0.25), prohibition of products containing fluorinated compounds, requiring three-stream waste collection for customer use in the front-of-house, and requiring all dine-in food to be served on or in reusable food ware.

The City should continue to educate and engage its
businesses on the requirements of the existing
ordinance, and consider expanding the ordinance to
include additional provisions and more robust
enforcement of its ordinance through a phased
approach.

The first phase will focus on full implementation and
enforcement of Santa Monica’s current ordinance. RRR
staff should collaborate with the Office of Sustainability and the Environment to assist in enforcement and public education.

The second phase will be to expand the ordinance to
include additional requirements that promote source reduction. Businesses will grow accustomed to the current ordinance and this phased approach to include reusable dine-in food service ware, a disposable cup charge requirement, and requiring garbage, recycling, and organics containers in the front-of-house, will support a wider culture shift around source reduction. Over time, residents and businesses will become more comfortable with, and aware of, practicing source reduction and/or utilizing reusable alternatives.

In addition to adding more innovative ordinance features, enforcement should be shifted away from a compliant-based system to more proactive enforcement. The Zero Waste Program Team can enforce the ordinance via administrative code violation process, and penalties should have monetary value to help fund enforcement and additional outreach activities.

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This policy also promotes Extended Producer Responsibility (EPR) by stimulating market demand for products that are reusable, recyclable, or compostable at end of life, which the City adopted a resolution to support in 2009 and is also a key Zero Waste strategy in the CAAP. EPR redirects responsibility for managing waste back to the product manufacturers, particularly for hard-to-recycle materials or disposable products to help reduce their upstream generation.

Resources Needed
The City’s solid waste ordinance would need to be enhanced to comprehensively support Zero Waste, with on-going resources provided to conduct annual outreach and monitoring. Development of a mandatory recycling and organics program participation ordinance, updating the City’s current C&D ordinance, and updating of its single-use plastics ordinance is estimated to require 2,080 hours in startup labor (estimated 1.0 full-time equivalent or FTE) for the first year. Implementation and enforcement of the new ordinance requirements is anticipated to take 2,080 hours thereafter (1.0 full-time equivalent) to sustain via outreach, monitoring, and enforcement.

The City would hire an additional Senior Sustainability Analyst to be responsible for development, implementation and enforcement of ordinance requirements. Fines and penalties for not meeting the requirements of the ordinance could help fund additional outreach and education efforts and could be accomplished by providing the Senior Sustainability Analyst with administrative code enforcement authority.

Implementation Steps

STEP TASK DESCRIPTION TIMELINE RESPONSIBLE PARTY
PHASE I: Draft Ordinance and Seek Stakeholder Input – Steps 1-4 are concurrent 1 Draft comprehensive Zero Waste ordinance to: 1)
require mandatory recycling and organics program
participation, 2) enhance C&D debris recycling, 3)
update and explore additional requirements in
include: prohibit disposable dine-in food service
ware, add disposable cup charge, and requiring 3
stream in front-of-house
3-6 months RRR Senior
Sustainability Analyst
2 Engage the community via public workshop,
stakeholder meetings, online and social media 2 months RRR Senior Sustainability Analyst
3 Conduct inter-departmental coordination to seek
input on draft ordinance from the Planning &
Community Development and Public Works
2 months RRR Senior
Sustainability Analyst

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STEP TASK DESCRIPTION TIMELINE RESPONSIBLE PARTY
4 Revise draft ordinance to incorporate feedback 1 month RRR Senior Sustainability Analyst
PHASE II: Engage City Council and Support Ordinance Adoption 1 Conduct City Council workshop on the draft
ordinance and invite feedback
Per Council
Schedule
RRR Senior
Sustainability Analyst
2 Revise draft ordinance 1-2 months RRR Senior
Sustainability Analyst
3 Present revised ordinance to the City Council for
consideration and adoption
Per Council
Schedule
RRR Senior
Sustainability Analyst
PHASE III: Conduct Outreach, Begin Implementation, and Enforcement 1 Conduct outreach campaign to educate residents and
businesses 6 months RRR Senior
Sustainability Analyst
2 Send non-compliance notifications and engage in
positive outreach to help impacted generators
achieve compliance
6 months RRR Senior
Sustainability Analyst
3 Begin enforcement of ordinance requirements Ongoing
Code Enforcement and
RRR Senior
Sustainability Analyst
4 Conduct annual outreach and invite feedback Ongoing RRR Senior Sustainability Analyst
5 Re-evaluate ordinance, implementation and
enforcement annually for improvement. Report to
City Council and put forward revisions as appropriate.

Ongoing RRR Senior
Sustainability Analyst

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ACTION #3 Create, Implement, and Enforce an Edible Food Recovery Program
Objective
Divert edible food from disposal and redistribute the food to those in need. Recovery of edible food is a requirement of State law SB 1383 as well as a strategy to reduce GHG emissions by reducing the amount of organic material sent to landfill and recovering them to feed hungry people in the City and surrounding areas.

Description
Edible Food3 has been identified by California through the passage of SB 1383 as an important sector of the organics stream that can be reduced and recovered. Not only does this material provide an opportunity to reduce the tons sent to landfill where it will emit GHG emissions, recovering edible food feeds hungry people in the community. SB 1383 requires jurisdictions to recover 20% of the edible food currently landfilled and direct it for human consumption. SB 1383 identifies food generating businesses and categorizes them into tiers described below:
 Tier One: Supermarkets; grocery stores with a total facility size equal to or greater than 7,500 square feet; food service distributors; wholesale food markets (compliance required by January 1, 2022).
 Tier Two: Restaurants with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet; hotels with an on-site food facility and 200 or more rooms; health facility with an onsite food facility and 100 or more beds; large venues; large events; state agencies with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet; 3 Edible food per SB 1383 Draft regulatory language means unsold or unserved food that is fit for human consumption, even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions.

POLICY SUMMARY

ADDITIONAL POTENTIAL
DIVERSION 700 tons IMPLEMENTATION
START 2020

GREENHOUSE GAS
REDUCTION 2,900 MTCO2

AVERAGE ANNUAL
COST ESTIMATE $109,000
2014 ZWP STRATEGIES 26 CAAP ACTIONS 8

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local education agency facilities with an on-site food facility (compliance required by January 1, 2024).

Collaborate with Food Recovery Organizations
The City must work collaboratively with its
local and regional food recovery organizations
(including the Westside Food Bank and their
member agencies, faith-based organizations,
prepared food rescue organizations like
RePlate and Copia, etc.) to determine how the
City can help support their efforts to collect
and distribute recovered edible food. Hosting
regional food recovery organization meetings
on a quarterly basis may be useful in
identifying roles of organizations and
discussing potential opportunities for building
or strengthening partnerships.

In addition, the City must identify the current capacity of these organizations and what the capacity will be needed to recover the 20% edible food. As such, the City will meet with these organizations as well as regional jurisdictions to gain an understanding of how much each group is recovering currently, how much capacity currently exists, and how recovery is measured and tracked (weighing food, databases), and how the City can best partner and support these organizations. Support may include funding for on-going recovery efforts or capital improvements to expand existing capacity, and/or monitoring commercial edible food generators for compliance with this Action.

Ordinance Development and Enforcement
As a part of this effort, the City will develop an ordinance that requires all food generating businesses (categorized as Tier 1 and Tier 2) to establish a relationship with food recovery organization(s) for the purposes of recovering edible food and prohibiting the disposal of edible food. The City will need to identify and maintain a list of edible food generators (Tier 1 and Tier 2 generators) in the City. This is not only important to understand the impact of an ordinance of this nature, but it is a requirement of SB 1383.

Identification will be helpful for implementation and enforcement of this ordinance as well.

This ordinance, if implemented, will greatly increase the amount of edible food that can be recovered and help meet the 20% goal. Therefore, collaboration with the food recovery organizations is important to ensure that capacity exists for the additional food that will be collected as a result of the ordinance.

Apart from supporting food recovery organizations and generators, the City can maximize food recovery in the City’s limits by supporting and promoting gleaning, school food waste reduction policies, and distributing information of how to reduce wasted food.

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Resources Needed
The City will need a Zero Waste Coordinator working 1,040 annually (0.5 FTE) for on-going annual monitoring and maintenance. The City will need to coordinate its efforts with other local jurisdictions, food recovery organizations, environmental health agencies, and the City’s code enforcement staff. This Action requires input and support from a wide variety of public stakeholders and City staff to be successful.

Implementation Steps

STEP TASK DESCRIPTION TIMELINE RESPONSIBLE
PARTY
PHASE I: Draft and Adopt Ordinance and Stakeholder Input 1 Develop a list of regional food recovery organizations (Westside Food Bank, Copia, RePlate, faith-based
groups, etc.)
2 months RRR Zero Waste
Coordinator
2 Identify and maintain Tier 1 and Tier 2 generators based on the SB 1383 requirements using NAICS codes
Ongoing RRR Zero Waste
Coordinator
3 Develop a model agreement for food generating
businesses to use for securing recovery services
2 months RRR Zero Waste
Coordinator
4 Draft and adopt comprehensive edible food recovery
ordinance that: 1) requires food generators to have an
agreement with a food recovery organization 2)
prohibits the disposal of edible food
6 months (Per
Council
Schedule)
RRR Zero Waste
Coordinator and
RRR Senior
Sustainability
Analyst
PHASE II: Support and Collaboration with Food Recovery Organizations 1 Meet with the Westside Food Bank and other local food recovery organizations to:
 Measure existing capacity and need (collection
vs. distribution)
 Quantify needs to expand efforts to meet 20%
food recovery goal
 Determine method of tracking, weighing, and
counting collected and distributed food via the
food bank and/or member agencies.
2-4 months RRR Zero Waste
Coordinator

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2 Meet with regional jurisdictions to coordinate efforts related to food recovery (i.e., fee to cover costs, etc.) 2 months RRR Zero Waste
Coordinator
3 Create a regional Strategic Plan to meet SB 1383 goal of recovering 20% edible food
4-6 months RRR Zero Waste
Coordinator
4 Establish/support a method of sustainable funding for food banks and other organizations to increase capacity and collect and distribute more food
4-6 months RRR Zero Waste
Coordinator
PHASE III: Conduct Outreach, Begin Implementation, and Enforcement 1 Educate food generating businesses of requirement to
secure recovery services
6 months RRR Zero Waste
Coordinator
2 Send non-compliance notifications and engage in
positive outreach to help impacted generators achieve
compliance
6 months RRR Zero Waste
Coordinator
3 Create an enforcement mechanism that includes onthe-ground assessment (i.e. inspection) of participation in food recovery programs through Environmental
Health
Ongoing Environmental
Health and RRR
Zero Waste
Coordinator
4 Conduct annual outreach and invite feedback Ongoing RRR Zero Waste Coordinator
5 Re-evaluate ordinance, implementation, and
enforcement annually for improvement. Report to City
Council and put forward revisions as appropriate.

Ongoing RRR Zero Waste
Coordinator

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Action #4 Provide Proactive Technical Assistance and
Community Engagement

POLICY SUMMARY

ADDITIONAL POTENTIAL
DIVERSION 12,000 tons IMPLEMENTATION START 2020

GREENHOUSE GAS
REDUCTION 16,400 MTCO2 AVERAGE ANNUAL COST
ESTIMATE $600,000
2014 ZWP STRATEGIES 18, 20 CAAP ACTIONS 2
Objective
Proactively provide targeted technical assistance to help commercial and multi-family generators with the greatest potential for higher waste diversion through personalized training and support. Engage residents through positive, in-person interaction to provide Zero Waste education.

Description
Proactive Technical Assistance
A robust technical assistance program is needed to provide commercial and multi-family generators with the help they need to initiate or expand recycling, organics recycling, composting, and waste reduction practices. Skilled staff would aid businesses and multi-family properties in minimizing and overcoming obstacles to waste diversion, such as limited space, labor and sorting requirements, and lack of information or training. Technical assistance activities would include conducting on-site waste assessments to identify target materials for improved diversion, opportunities for edible food recovery, right-sizing collection service levels, providing information for securing recycling equipment, labeling containers and posting signage both front and back of house, addressing contamination, and training custodial and operations staff. Technical assistance staff will also develop and distribute outreach materials describing best practices appropriate for multi-family and different types of businesses. The approach to technical assistance also determines its level of impact: rather than wait on businesses or

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property managers to request assistance, technical
assistance staff will initiate contact, directly engage with generators identified as having the most
potential to improve, and follow up to maintain a
high level of participation.

The City will also promote the technical assistance
program and encourage businesses and multifamily properties to use it to achieve compliance with City ordinance (Actions #2 and #3). Technical
assistance is more effective when undertaken
within the framework of City ordinance
requirements to recycle and reduce waste. This program is a collaborative effort, with technical assistance staff empowered to implement City ordinance through their efforts to help targeted generators comply and achieve greater participation rates by working with City staff to support active enforcement. For the first three years of the program, the City will target the top 20% of commercial generators and top 20% of multi-family generators for technical assistance. Often the top 20% of generators are responsible for more than half of the materials generated by these sectors. A targeted approach is important for focusing resources to make a meaningful impact on the City’s disposal rates. Specifically, discarded materials from the commercial and multi-family sectors are a significant portion of Santa Monica’s overall generation.

Improvements in commercial and multi-family diversion will result in improvement to the community’s overall diversion and further achievement of its waste reduction goal. Over time, generators will need continued engagement to maintain successful participation in waste diversion programs and the targets may be expanded to reach higher hanging fruits.

Community Engagement
Residents could benefit from active and direct engagement as well. In-person presence, collaboration, and involvement within the community is important for developing strong working relationships with local organizations and understanding real barriers to proper use of diversion programs. On-the-ground experience also creates personal insight into Santa Monican disposal behaviors, which can guide development of specific strategies and messages for community based social marketing (Action #5).

Technical assistance staff should regularly attend Santa Monica community events and festivals, neighborhood organization and HOA meetings, and other organized community meetings to act as an accessible resource to engage attendees about waste-related topics, collaborate and share information, and integrate Zero Waste conversations into various groups. For example, beach clean-ups could be a good avenue for engaging community members and creating social awareness that may lead to further individual action. In addition, technical assistance staff can begin to identify Zero Waste ambassadors within the community and conduct in-person workshops such as a Master Recycler Course to build a network of interested and knowledgeable community members to spread the message of Zero Waste.

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Resources Needed
The City currently has one full-time staff person (with the title of Project Support Assistant) dedicated to conducting education and outreach in the community. Via this Action, the City would ramp up those efforts with three (3) additional Zero Waste Assistant positions (6,240 new annual hours, 3.0 new FTE).

This would result in a proactive team of four full-time people dedicated to providing Santa Monica’s businesses and multi-family properties with technical assistance, and residents with direct outreach when needed to maximize the additional diversion potential of this Action. Employing boots on the ground to appropriately engage target generators through a robust technical assistance program will require significant investment. However, this program is critical for meaningfully moving the needle on Santa Monica’s waste diversion and its ability to achieve the Council approval goal of zero waste by 2030.

Implementation Steps

STEP TASK DESCRIPTION TIMELINE RESPONSIBLE PARTY
PHASE I: Build Technical Assistance Team and Set Targets – Steps 2-5 are concurrent 1 Hire three RRR Zero Waste Assistants and fe-class
existing Project Support Assistant as Zero Waste
Assistant
3 months RRR Senior
Sustainability Analyst
2 Identify top 20% commercial and multi-family
generators
1 month 4 RRR Zero Waste
Assistants
3 Identify community groups, potential Zero Waste
ambassadors, local events and other avenues for
resident engagement
2 months 4 RRR Zero Waste
Assistants
4 Develop educational materials for distribution during on-site assistance and at community events
3 months 4 RRR Zero Waste
Assistants
5 Create Master Recyclers Course materials, work on
logistics and promotion
3 months 4 RRR Zero Waste
Assistants
PHASE II: Proactively Engage Generators On-site and in the Community 1 Reach out to target generators regarding Zero Waste
and City ordinance requirements.

Ongoing 4 RRR Zero Waste
Assistants
2 Conduct site-visits to assess conditions and help start or expand waste diversion practices through
individualized support
Ongoing 4 RRR Zero Waste
Assistants

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STEP TASK DESCRIPTION TIMELINE RESPONSIBLE PARTY
3 Attend community events and engage local
organizations; conduct Master Recyclers Course and
support Zero Waste ambassadors
Ongoing 4 RRR Zero Waste
Assistants
PHASE III: Monitor Program Success and Integrate Lessons Learned 1 Check-in with Zero Waste Assistants at minimum
once per quarter to assess progress (e.g., number of
calls, emails and site visits conducted by team and the results, number of community events attended, and
other agreed upon metrics)
Ongoing RRR Senior
Sustainability Analyst
2 Annually conduct analysis to identify top 20%
generators and other low hanging fruit to target for
technical assistance
Ongoing 4 RRR Zero Waste
Assistants
3 Annually identify local events, organizations, and
other avenues to engage residents in Zero Waste
Ongoing 4 RRR Zero Waste
Assistants
4 Integrate lessons learned from implementation todate to continually improve the program Ongoing 4 RRR Zero Waste Assistants

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Action #5 Develop and Implement a Zero Waste Communications Plan

POLICY SUMMARY

ADDITIONAL POTENTIAL
DIVERSION 1,500 tons IMPLEMENTATION START 2020

GREENHOUSE GAS
REDUCTION 2,000 MTCO2

AVERAGE ANNUAL COST
ESTIMATE $109,000
2014 ZWP STRATEGIES 14, 16 CAAP ACTIONS N/A
Objective
Develop and execute a robust communications plan to educate Santa Monica residents and visitors about proper separation of discarded materials, reduction, Zero Waste goals, important updates, and more.

Description
Behavior change is an increasingly important factor in the successful implementation of diversion programs and reducing materials sent to landfill. It not only supports policy development but directly links these policies to disposal habits. State laws AB 341, AB 1826, and SB 1383 also require print and/or online media be created for distribution to a jurisdiction’s community. Communications are necessary for supporting and supplementing the Action #4 education and outreach plan and for assisting City staff in conducting in-person community engagement.

There are many ways to provide education and outreach to a community. The messaging can be informational, educational, statistical, motivational, promotional, and/or disciplinary. For this Action, community-based social marketing (CBSM) will be emphasized. CBSM draws on the idea that behavior change is most effective when people are directly contacted on a community level. CMBS is more effective than other techniques because it focuses on a single activity, and targets one desired behavior (i.e., focusing a campaign on food waste reduction) rather than providing people with a “laundry list” of things to do (i.e., a campaign around both food waste reduction and water usage). Additionally, CMBS uncovers the barriers to the target behavior, which is critical to future long-term change.

This education and communication plan will provide marketing collateral (as opposed to in-person involvement in Action #4) and serve as a resource for information and awareness around certain disposal habits. Based on research, the City can create actionable, quantifiable responsibilities (e.g. number of site visits conducted per week; customer follow-up protocol; community organization meeting and event schedule; and expectation for involvement). Developing such content as print and online collateral, social media, and video would also be advantageous to the City considering its unique customer base of large media production companies, TV stations, and social media "influencers" available for collaboration, content sharing, and overall cultural norming.

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Developing a variety of content across mediums not only helps the residents of Santa Monica become educated on Zero Waste related issues, it also helps educate tourists as well. Santa Monica received over

8.4 million visitors in 20184
. To target such a large number of non-residents, education and communications must be clear, effective, and able to be understood by tourists to ensure that visitors are aware of the Zero Waste systems in Santa Monica and are informed. Messaging for visitors must be in strategically placed in the City’s most-visited areas including its beaches and pier, downtown area, and at its hotels and short term rental properties.

Resources Needed
The City will need 1,040 hours of Zero Waste Coordinator annual labor (0.5 FTE) to implement this program. Largely, the collaboration needed in this Action will be between City staff, including the Office of Communications, Public Works Communications and Marketing Coordinator, Information Services Department and members of the Zero Waste Program Team. The City may seek to work with outside agencies for advertisements, promotions, and content creation as a way to increase the level of awareness to residents and visitors of the City’s Zero Waste goals and increase engagement.

Implementation Steps

STEP TASK DESCRIPTION TIMELINE RESPONSIBLE
PARTY
PHASE I: Develop Education, Outreach, and Communications Plan 1 Create a formalized Education and Communications, which includes:
 Development of engaging content
 Social media presence including Facebook,
Instagram, Next Door
 Paid online advertisement with an emphasis on
travel/tourist webpages
6 months Office of
Communications,
RRR Zero Waste
Coordinator
2 Robust website development inclusive of an informational guide that describes where and how to properly dispose of particular items; consider collaboration with third party education and outreach platforms
3 months ISD, Office of
Communications,
RRR Zero Waste
Coordinator
3 Conduct research on the disposal behaviors and perceptions of the community and develop strategies for addressing such information as part of the Education and Outreach Plan
using:
6 months RRR Zero Waste
Coordinator
4 https://www.santamonica.com/about-smtt/economic-value-of-tourism/

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STEP TASK DESCRIPTION TIMELINE RESPONSIBLE
PARTY
 Focus Groups
 Conversations from tabling as a part of Action #4
PHASE II: Implement Plan and Engage Community
1 Develop infographics, posters, and other visual 2D media collateral for sharing online and printed for distribution within the community (bus stops, truck sides, billboards, etc.) 4-6
months
Office of
Communications,
RRR Zero Waste
Coordinator
2 Develop print advertisement, specific to tourism as part of booking tourist-related activities / accommodation that addresses ways to minimize waste and recycle/compost
correctly in tourist areas
4-6
months
Office of
Communications,
RRR Zero Waste
Coordinator
3 Develop short and aesthetically pleasing videos with the specific goal of educating the community how to properly source separate items, reduce contamination, and also
create behavior change through normalizing sustainable
behavior and lifestyle
4-6
months
IT, Office of
Communications,
RRR Zero Waste
Coordinator
4 Promote the City’s collection programs through radio, TV, and other audio and video collateral
Ongoing Office of
Communications,
RRR Zero Waste
Coordinator
5 Coordinate with community influencers to share media
content
Ongoing Office of
Communications,
RRR Zero Waste
Coordinator

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SECTION 4 Projected Outcomes and Timeline

INITIAL DIVERSION ESTIMATES
Initial planning level estimates of the diversion potential for the priority Actions are presented in this 2019 ZWP Update. These planning level estimates are based on analysis of the City’s current landfilled materials tons and assessment of the potential amounts of recovery that could reasonably be projected given adequate implementation. More precise estimates are not possible given that many variables influence materials generation and disposal patterns (for example, the China National Sword Policy) and the fact that the level of City implementation cannot be anticipated in advance. As such, these estimates are solely intended for the purposes of demonstrating relative potential outcomes by priority Action and estimating GHG emissions.

To estimate the diversion potential of each priority Action, the City developed a diversion model (Appendix D) which uses disposed waste composition data for each generator sector (i.e., single family, multi-family, commercial, and self-haul) to estimate tons of potentially recoverable materials by type and by sector that are currently landfilled. The model then applies an estimated capture rate (the percentage of a target material estimated to be diverted) to the tons disposed to derive the potential diversion tons associated with each priority Action. Capture rates were developed under guidance from the U.S Environmental Protection Agency’s “Managing and Transforming Waste Streams” tool, in addition to research of comparable programs and educated estimates. Waste composition data from CalRecycle’s 2014 Disposal-Facility-Based Characterization of Solid Waste in California report was used in estimating the recoverability of materials in that are currently disposed Santa Monica.

TABLE 2 – Additional Diversion Potential by Zero Waste Action #
Recommended Zero Waste
Action
Annual Additional Potential Diversion
Single Family Multi-Family Commercial C&D Debris
Total All
Sectors
2 Create, Implement, and
Enforce a Comprehensive
Zero Waste Ordinance
420 1,190 1,230 3,800 6,640
3 Create, Implement and
Enforce an Edible Food
Recovery Program
N/A N/A 720 N/A 720
4 Provide Proactive Technical
Assistance and Community
Engagement
650 4,640 6,690 N/A 11,980

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#
Recommended Zero Waste
Action
Annual Additional Potential Diversion
Single Family Multi-Family Commercial C&D Debris
Total All
Sectors
5 Develop and Implement a
Zero Waste Communications
Plan
270 580 610 N/A 1,460
TOTAL 1,340 6,410 9,250 3,800 20,800
*Action #1, Develop a Zero Waste Program Team, is a prerequisite of Actions #2 through #5. Therefore, its diversion potential has been included in the other Actions.

The model projections that implementation of the priority Actions could result in an approximately 24% reduction to the City’s PPD. As seen in Table 2 and Figure 6,robust technical assistance efforts, particularly in the multi-family and commercial sectors, are projected to be the primary contributors to waste diversion.

FIGURE 6 – Additional Diversion Potential by Sector and Action - 5,000 10,000 15,000 20,000 25,000
Single Family
Multi-Family
Commercial
C&D Debris
Total All Sectors
Annual Additional Potential Diversion
Tons
Create, Implement and Enforce a Comprehensive Zero Waste Ordinance Create, Implement and Enforce an Edible Food Recovery Program Provide Proactive Technical Assistance and Community Engagement Develop and Implement a Zero Waste Communications Plan

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INITIAL GHG REDUCTION ESTIMATES
The U.S. Environmental Protection Agency’s (EPA) Waste Reduction Model (WARM) was used to calculate the 2019 ZWP Update’s estimated GHG emission reduction. WARM was created by the EPA to help planners and organizations estimate greenhouse gas emission reductions from several different waste management practices. The model calculates emissions in metric tons of carbon dioxide equivalent (MTCO2E) and metric tons of carbon equivalent (MTCE) across a wide range of material types commonly found in municipal solid waste.

If recommended Zero Waste Actions were to be fully implemented, approximately 28,600 metric tons of carbon dioxide equivalent could be avoided each year through the source reduction, reuse, recycling and composting of currently landfilled materials. This is the equivalent to the annual emissions from 5,641 passenger vehicles, conserving 1,394 households’ annual energy consumption, or conserving 27,586 barrels of oil.

TABLE 3 – Estimated Annual Greenhouse Gas Emission Reduction Total Change in MTCO2E 28,600
Total Change in Energy Use 160,276 million BTU
Total Change in MTCO 7,307
Figure 7, on the following page, compares the estimated reduction in MTCO2E by priority Action. Actions that emphasize behavior change are expected to yield the greatest reductions in landfilled tons and greenhouse gas emissions. Strategies that take a policy-based approach support behavior change and could yield still greater reductions depending on the level of effort undertaken to educate the community and enforce requirements. In addition, targeting the diversion of materials which generate the most GHG’s in landfills – namely food and other organic materials – will help the Santa Monica community continue to move the needle in addressing climate change.

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Packet Pg. 379 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

ZERO WASTE PLAN UPDATE
Section 4 – Projected Outcomes and Timeline

FINAL REPORT
FIGURE 7 – Estimated Reduction in MTCO2E by Zero Waste Action *Action #1, Develop a Zero Waste Program Team, is a prerequisite of Actions #2 through #5. Therefore, its MTCO2E reduction potential has been included in the other Actions.

Collectively, full implementation of these priority Actions could meaningfully contribute to reaching the City’s CAAP goal to achieve an 80% reduction (below 1990 levels) in community carbon emissions by 2030.

Recommended Zero Waste Actions support CAAP implementation action items for reducing waste-related emissions. This complementarity further streamlines community sustainability efforts by making good use of staff time and limited resources for greater impact to achieve both climate action and waste reduction goals.

INITIAL ESTIMATED IMPLEMENTATION COSTS
Sustainable funding is critical for supporting implementation of priority Zero Waste Actions and ongoing progress in waste reduction. Once the City seeks to implement the priority Actions described in this 2019 ZWP Update, it will also need to consider potential funding sources and secure resources needed for implementation. Implementation of priority Actions is anticipated to begin in 2020 and outlines steps to be taken over a five-year planning period through 2024. Estimated costs for each priority Action and projected implementation over the planning period are further detailed in Appendix E, and summarized in Table 4, on the following page.
7,300
2,900
16,400
2,000
28,600
- 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Action #1: Create, Implement and Enforce a
Comprehensive Zero Waste Ordinance
Action #2: Create, Implement and Enforce Edible
Food Recovery Program
Action #3: Provide Proactive Technical Assistance
and Community Engagement
Action #4: Develop and Implement Zero Waste
Communications Plan
Total
MTCO2 E
Priority Action

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Packet Pg. 380 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

ZERO WASTE PLAN UPDATE
Section 4 – Projected Outcomes and Timeline

FINAL REPORT
TABLE 4 – Estimated Average Annual Implementation Costs by Zero Waste Action # RECOMMENDED ZERO WASTE ACTION

AVERAGE
ANNUAL
COST
ANNUAL
TONS

DIVERTED

DOLLARS

PER TON

DIVERTED
2 Create, Implement and Enforce a Comprehensive
Zero Waste Ordinance $269,000 6,600 $40
3 Create, Implement and Enforce an Edible Food
Recovery Program $109,000 700 $151
4 Provide Proactive Technical Assistance and
Community Engagement $600,000 12,000 $50
5 Develop and Implement a Zero Waste
Communications Plan $109,000 1,500 $75
TOTAL $1,087,000 20,800 $52
*Action #1, Develop a Zero Waste Program Team, is a prerequisite of Actions #2 through #5. Therefore, its cost estimate has been included in the other Actions.

The City will note that actual costs may vary depending on the City’s specific implementation approaches, timing of implementation, utilization of existing City resources, and other factors. The average annual cost for the five priority Actions is estimated at approximately $1,087,000. The City could implement variants on any priority Action that may lessen the actual cost of implementation, though the City should be aware that such changes could affect the outcomes of those strategies. Costs for implementation of recommended Zero Waste Actions were developed by:
 Estimating the number of hours projected to be needed to develop and maintain each policy or program;
 Estimated salary and benefits for one new Senior Sustainability Analyst, one new Zero Waste Coordinator, three new Zero Waste Assistants, and the reclassification of one Project Support Assistant to one Zero Waste Assistant (each at Step 2 to be consistent with the City's budgeting practice);
 The annual outreach and education materials expense for each program, including training materials, newspaper advertising, promotional flyers, promotional kits, and outreach campaigns. This also includes supporting equipment such as materials sorting stations and signage; and
 An annual inflation escalator of 5% to adjust estimated costs over time.

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Packet Pg. 381 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

ZERO WASTE PLAN UPDATE
Section 4 – Projected Outcomes and Timeline

FINAL REPORT

ESTIMATED RATE IMPACTS
The potential rate impact of funding Zero Waste strategies is presented below in Table 5. If the City were to fund all recommended Zero Waste strategies through the rate base, over time Santa Monica’s collection rates would need to increase by approximately 3.3% to cover the average annual cost of implementation. For single family customers with a 95-gallon garbage cart, this would be an additional approximate $1.80 per month.

As an alternative to funding these positions via solid waste rates, the City could potentially use revenue from its General Fund, collect enforcement fees, or apply for grant funds to help reduce a rate increase to fund recommended Zero Waste policies and programs.

TABLE 5 – Initial Estimated Rate Impacts by Zero Waste Action # ACTION RATE IMPACT
2 Create, Implement and Enforce a Comprehensive Zero Waste Ordinance 0.9% 3 Create, Implement and Enforce an Edible Food Recovery Program 0.4% 4 Provide Proactive Technical Assistance and Community Engagement 2.0% 5 Develop and Implement a Zero Waste Communications Plan 0.4% *Action #1, Develop a Zero Waste Program Team, is a prerequisite of Actions #2 through #5. Therefore, its rate Impact estimate has been included in the other Actions.

While Action #4 is projected to require the most funding, it is also anticipated to have the highest impact on waste reduction.

The City could consider adding an enforcement and fee component to strategies that call for ordinance revisions in order to generate revenue for implementation of this 2019 ZWP Update. Fees and enforcement may also drive greater participation in Zero Waste programs. However, it is recommended that the City initially focus on making a positive effort to engage and educate the community before considering enforcement. As a result, enforcement fees would not be a significant funding source in the near-term but would remain an option should diversion rates fail to improve.

CalRecycle offers grants that the City could consider applying for to further Santa Monica’s waste reduction goals. For example, CalRecycle’s Greenhouse Gas Reduction Grant and Loan Programs include a Food Waste Prevention and Rescue Grant Program and new Pilot Reuse Grant Program that could help fund food recovery initiatives in Santa Monica (Action #3). Non-profit groups also offer grants to fund waste reduction, including the California Student Sustainability Coalition Zero Waste Mini Grant program.

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Packet Pg. 382 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

ZERO WASTE PLAN UPDATE
Section 4 – Projected Outcomes and Timeline

FINAL REPORT
Grant funds are not guaranteed. However, if awarded they could significantly supplement the funding of certain elements of this ZWP Update.

PROJECTED GOAL AND INDICATOR OUTCOMES
Implementation of the five recommended Zero Waste Priority Actions could potentially achieve the following Zero Waste goal/indicator outcomes (aligning with the 2014 ZWP Update) by 2024. These are based on the estimated diversion outcomes discussed above.  Reduction in landfilled waste from 5.0 to 3.8 PPD (an approximate 24% reduction);  Reduction in greenhouse gas emissions in alignment with CAAP goals;  Community awareness of Zero Waste increase by 50% (to be measured through conducting periodic community surveys);
 Majority of customers (95%+) subscribing to recycling and organics collection services (or the wet/dry program); majority of edible food generators (95%+) partnering with a non-profit; and  Majority of customers actively participating in recycling and organics programs (less than 30% recoverable materials in garbage, to be measured through garbage container “lid flip” audits to visually assess contents during technical assistance site visits).

IMPLEMENTATION STEPS AND TIMELINE
This 2019 ZWP Update recommends implementation of the five recommended Zero Waste priority Actions by 2024. Specific overall implementation steps and timeline are as follows:
 2020: Hire Zero Waste Program Team (Action #1).
 2020: Comprehensive zero waste policy development and adoption (Action #2).  2021: Building momentum through proactive development of SB 1383 policy and systems to recover edible food for those in need (Action #3).
 2022: Directly engaging, and assisting, residents and businesses in Zero Waste practices via a robust public education and outreach effort (Action #4). Providing individualized technical assistance for the community’s largest generators will meaningfully progress waste reduction; these efforts will be strengthened by Santa Monica’s ordinance requirements and enforcement, in addition to coinciding with SB 1383’s effective date.  2023: Positively spreading the message of Zero Waste far and wide to all members of the Santa Monica community through social media, online, print, and other channels of communication (Action #5). A formalized social media plan should be developed in 2023; outreach and education materials in support of Actions #2-4 should be created and distributed in timing with their implementation.
 2024: Further support the grounding and fruition of all priority Actions to maximize waste diversion efforts. Evaluate progress towards the community’s Zero Waste goal.

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Packet Pg. 383 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

ZERO WASTE PLAN UPDATE
Section 4 – Projected Outcomes and Timeline

FINAL REPORT
CONDUCT A ZWP UPDATE IN 2024
It is strongly recommended that the City conduct a re-assessment of its Zero Waste achievement on a regular basis – by 2024 at the latest – to measure progress, adjust for changing conditions, reassess strategies and/or identify additional strategies to implement. Nearing the halfway point to goal year 2030, 2024 offers an important opportunity to see how far Santa Monica has come and course correct as necessary in forging the path to Zero Waste. Implementation of this 2019 ZWP Update will help the City significantly reduce its PPD but further action will be needed after 2024 for the City to reach its 2030 goal of 1.1 PPD.

The future of Santa Monica’s Zero Waste program will be shaped by many factors: the community’s commitment in advancing Zero Waste, the City’s ability to support continued progress and innovation, new State mandates and legislative requirements, and the influence of larger socioeconomic shifts. In 2024, Santa Monica should conduct an evaluation of its landfill diversion and 2019 ZWP Update implementation to measure success and keep all stakeholders accountable for the outcome. Efforts taken to fulfill each priority Action, and the results, should be well-documented along with any innovations, supporting Actions, or other changes in conditions. Findings should be communicated to further improve waste reduction and open a dialogue with residents and businesses on next steps for achieving Zero Waste.

FUTURE PROGRESS AND ACTION
Santa Monica is a leader in Zero Waste by investing in a plan in 2014 and updating this ZWP in 2019. It is imperative that the City and community work together to not only achieve an increase in the amount of recycling and organics collected for diversion within Santa Monica, but overall waste reduction as well.

While Zero Waste may always require continuous improvement, the City should take pride in its successes, learn from its failures, and seek above all else, reduce and responsibly manage its discarded materials for future generations.

If Santa Monica reaches its Zero Waste goal by 2030, everyone’s collective achievement should be recognized and celebrated with the encouragement to maintain Zero Waste practices for continued community and environmental benefit. Conversely, if the goal is not achieved in that time, the City will iteratively evaluate Zero Waste progress to identify the largest areas of opportunity for increased resource recovery and take lessons learned to inform next steps. A new goal date and revised set of priorities plan would need to be developed, with sufficient time for selected Zero Waste strategies to be implemented.

In either case, a greater focus on Zero Waste initiatives that reduce greenhouse gas emissions will likely continue to rise in importance as a way to address climate change. Santa Monica is a leader and innovator on the path to Zero Waste. Through this 2019 ZWP Update and beyond, the City will continue to make strides in its sustainability efforts.

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Packet Pg. 384 Attachment: 2019 Zero Waste Plan Update (6279 : Award Contract for 2024 Zero Waste Plan Update)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

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

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Packet Pg. 385 Attachment: Oaks Initiative Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update)

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. 386 Attachment: Oaks Initiative Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

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Packet Pg. 387 Attachment: Levine Act Disclosure Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

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Packet Pg. 388 Attachment: Levine Act Disclosure Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
DATE: January 25, 2024
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $250 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.

State law requires a party to a proceeding to disclose any contributions exceeding an aggregate $250 that the party and their agents have made to an officer of the City within the preceding 12 months. The Disclosure Form is intended to assist City officials with recognizing when they have an obligation to disclose and recuse themselves, and to aid parties with their disclosure obligations.

1. To what sort of proceedings is the disclosure form applicable? The Levine Act applies to all discretionary entitlements and contracts, with the exception of labor contracts, personal employment contracts, and contracts that must be awarded to the lowest responsive/responsible bidder. It does not apply to ministerial approvals.

For instance, the Levine Act applies to the following:
• Building and development permits
• Conditional use permits
• Contracts generally (unless an exception applies):
o Contracts for goods, services, professional services
o Real property contracts for purchase, sale, lease
o Contract amendments
o Settlement agreements
o Small contracts, including purchase orders, and zero dollar contracts (no de minimis exception)
• Public street abandonments
• Private development plans
• Professional license revocations
• Rezoning of specific real estate parcels
• Event permits
• Rulemaking procedures affecting a particular industry where only a small number of businesses are affected

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Packet Pg. 389 Attachment: Levine Act Disclosure Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update)

• Special district formation proceedings involving the creation of a special use or benefit to the person in the district
• Tentative subdivision and parcel maps
• Zoning variances
• Vacation of a public easement across private property • Pre-applications, such as for General Plan Amendment, considered by the legislative body prior to filing of formal application
• Contracts entered under the City Manager’s Authority
• Closed session items that may result in a contract/settlement agreement approved by Council (real estate or litigation)
It does not apply to:
• Purely ministerial decisions
• General policy decisions or rules where the interests affected are many and diverse
• Ordinances and resolutions (except items like development agreements adopted by ordinance)
• Ballot measures
• Departmental policies
• Council rules
• Contracts awarded to the lowest responsive/responsible bidder (not applicable in Santa Monica)
• Labor contracts and project labor agreements
• Personal employment contracts
• Allocation of resources in the City budget

2. Who is required to disclose?
A “party” to a proceeding is any person who files an application for, or is the subject of, a proceeding. In general, a person or company who applies for a permit, license, or right to use property in a particular way, which requires the City’s discretionary approval, will qualify as a party.

Parties are also required to disclose contributions by their agents. An “agent” is someone who (1) represents a party to a proceeding for compensation; and (2) appears before or otherwise communicates with the City for the purpose of influencing the pending proceeding. This can include law firms, architects, engineers, consultants, and similar entities. Both the individual and their employer or firm are considered “agents.” A party should also disclose contributions of other entities majority owned by the party, as well as contributions of any other entity whose contributions it directs or controls.

3. What must be disclosed?
A party must disclose campaign contributions over $250 made in the prior twelve months.

A “contribution” is anything of value for which the party has not received full consideration, including money, nonmonetary items, payments made for advertising or

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Packet Pg. 390 Attachment: Levine Act Disclosure Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update)

other expenses coordinated with a candidate or committee, loans, tickets to political fundraisers, etc.

4. Who is considered an officer of the City?
An “officer” is anyone who may make, participate in making, or attempt to influence a decision in the proceeding or who exercises authority over officers who may do so. This includes elected officials, members of appointed boards and commissions, the City Manager, and any individual who is a candidate for elected office or who has been a candidate in the twelve months prior to the decision. This definition is included on the Disclosure Form.

5. When should the disclosure occur?
The Disclosure Form must be completed (1) by a party to a contract with the City (or that party’s agent) at the time the party submits a response to a Request for Proposal or other competitive solicitation, enters into contract negotiations with the City, or executes a contract with the City, whichever is earliest; or (2) by a party to a license, permit, or other entitlement proceeding before the City at the time the party (or their agent) submits the license, permit, or entitlement application to the City. The party (or their agent) must submit a supplemental form if they make any new reportable contributions while the same contract, license, permit, or other entitlement is being considered. The party (or their agent) must also use the form if they need to correct any previously submitted form.

Parties are solely responsible for completing the form accurately, and could face penalties for failure to do so. The California Fair Political Practices Commission (FPPC) is the body who enforces violations of the Levine Act. If a party is uncertain about whether they are required to report or combine a contribution, they should consult with their attorney.

Nothing herein constitutes legal advice and individuals are urged to consult with their own attorney regarding the requirements of the law. To the extent there is any inconsistency, the language of the Levine Act and FPPC Regulations govern over this notice. Resources for officers, parties, participants, and agents, are available on the FPPC’s website at https://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html

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Packet Pg. 391 Attachment: Levine Act Disclosure Form - R3 Consulting Group (6279 : Award Contract for 2024 Zero Waste Plan Update) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.D
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Maintenance
Subject: Award Bid to Southern Counties Lubricants, LLC for the Purchase of Engine Oils and Fluids for Transit Buses
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;

2. Award Bid #4480 to Southern Counties Lubricants, LLC for the purchase of transit bus engine oil, coolant, and lubricants as needed by the Department of Transportation; and

3. Authorize the Procurement Manager to issue a purchase order with Southern Counties Lubricants, LLC for the purchase of transit bus engine oil, coolant, and lubricants in the amount not to exceed $147,193, for one year with five additional one-year renewal options to extend on the same terms and conditions, for a total amount not to exceed $809,561including a $10% contingency, with future year funding contingent on Council budget approval.

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Summary
Big Blue Bus, a division of the Santa Monica Department of Transportation (DOT), operates 194 transit buses that provide over 800,000 rides and travel 390,000 miles each month. Routine maintenance, including the changing of bus engine oil, transmission fluids, coolant, and other lubricants is necessary to ensure that transit buses are maintained in good operating condition. Staff recommends that Bid #4480 be awarded to Southern Counties Lubricants, LLC to provide engine oil, transmission fluid, coolant and other vehicle lubricants in an amount not to exceed $809,561, which includes a 10% contingency.

Discussion
Santa Monica DOT performs regular routine maintenance on transit buses every 6,000 miles, 65 inspections per month, to ensure that its fleet remains in good operating condition. To perform routine maintenance and repairs, DOT purchases high quality oils and lubricants that meet Original Equipment Manufacturer (OEM) specifications and standards. The replacement of engine oils and other lubricants with OEM-approved lubricants ensures reliability and efficiency and helps to ensure that transit buses remain in good operating condition throughout their useful life. Some major components such as transmissions on transit buses require specific fluids to achieve their expected useful life, and the specified fluids are required to meet the manufacturer’s warranty terms.

California Public Contract Code Section 10409 requires local agencies to purchase “lubricating oil from the seller whose oil product contains the greater percentage of recycled oil…”. This code does not prohibit agencies from purchasing non-recycled oil for use in vehicles “whose warranties expressly prohibit the use of products containing recycled oil.” DOT uses re-refined engine oils where possible and permissible by OEM specifications. These oils are derived from used oil that is recycled and processed to an as-new condition. Some engine OEMs require oils and lubricants that are only available as new. For this reason, this award also includes new oils and lubricants for components that require new fluids to maintain OEM warranties. Staff recommends that Bid #4480 be awarded to Southern Counties Lubricants, LLC for purchase of engine oils, coolant, and other lubricants.

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Vendor Selection
Bidder Recommendation
Best Bidder Southern Counties Lubricants, LLC
Evaluation Criteria
(include all that
apply)
Price; experience; the quality of the material or services offered; the ability and capacity of the bidder to provide the materials or services.

Municipal Code SMMC 2.24.180
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
2/8/2024 City's
Online
Bidding
Site
Santa Monica Daily
Press
8 2/28/2024
Best Bidder Justification
Bid #4480 was evaluated by staff from the Department of Transportation, Transit Maintenance Division. Bids were evaluated based on price, experience providing lubricants and coolant, quality of fluids, and ability to provide all products listed in the request for bid. Based on the evaluation criteria, staff recommend awarding the bid to Southern Counties Lubricants, LLC as the best and lowest bidder. Southern Counties has experience providing fluids to large public agencies including the City of Los Angeles, City of San Diego, and Long Beach Transit, in addition to being the low bidder.

Environmental Review
The purchase order for transit bus lubricants and fluids is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The purchase of transit bus fluids would not result in any Submittals Received
Safety-Kleen $940,201 AAA Oils $1,279,015
Southern Counties Lubricants $809,561

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modifications to existing maintenance facilities and would not expand or materially change existing maintenance operations or increase the fleet of vehicles or equipment using these fluids. Therefore, this is categorically exempt as set forth in Section 15301 of the CEQA Guidelines.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to award a purchase order with Southern Counties Lubricants, LLC. for the purchase and delivery of transit bus lubricants and coolant. Future year funding is contingent on Council budget approval.

Purchase Order Request
Current Year
Request
Amount
Amount for
Future Years
Fund Department/CIP
Account # Total Amount
$49,064 $760,497 Big Blue Bus 60600013.521812 $809,561
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:

A. Southern Counties - Levine
B. Southern Counties - Oaks

5.D
Packet Pg. 395

5.D.a
Packet Pg. 396 Attachment: Southern Counties - Levine (6280 : Bus Oils and Fluids)

5.D.a
Packet Pg. 397 Attachment: Southern Counties - Levine (6280 : Bus Oils and Fluids)

5.D.b
Packet Pg. 398 Attachment: Southern Counties - Oaks (6280 : Bus Oils and Fluids) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.E
1 of 5
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Award Request for Proposal and enter into Agreement with Roth Management for Operation and Maintenance of the Santa Monica Pier Carousel
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and Section 15331 of the California Environmental Quality Act (CEQA) Guidelines.

2. Award RFP# 398 to Roth Management for operation and maintenance of the Santa Monica Pier Carousel for the Community Development Department.

3. Authorize the City Manager to negotiate and execute an agreement with Roth Management, in an amount not to exceed $897,235 for three years, with two additional one-year renewal option(s) in the amount of $643,916, on the same terms and conditions.

Executive Summary
The day-to-day operation, maintenance, and restoration of the Santa Monica Pier Carousel is provided through a management contract with a vendor that specializes in the operation, maintenance, repair, and restoration of vintage wooden carousels. Roth Management has operated and maintained the Carousel on behalf of the City since 2001. Its current contract expires on July 31, 2024. Staff seeks authorization to enter into a new contract with Roth Management for the operation and maintenance of the Santa Monica Pier Carousel for up to five additional years, as they were the sole respondent to a competitive RFP.

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Discussion
The Santa Monica Pier Carousel was built in 1922 by the Philadelphia Toboggan Company and is housed within the 102-year-old Looff Hippodrome, a designated National Historic Landmark. The City purchased the Looff Hippodrome and Carousel in 1977. The City contracts with a carousel operator, who is responsible for managing all aspects of the Carousel’s day-to-day operation, including providing trained employees, maintaining safety records and permits, and depositing ticket revenue with the City. In addition, the operator is required to perform specialized services relating to paint restoration, repair of damaged pieces, performing inspections and preventative maintenance of the carousel mechanism. Costs for the operation of the carousel includes a management fee and reimbursement of staffing costs, insurance, and related expenses.

The proposed management agreement with Roth Management is structured as a threeyear base contract term with two one-year renewal options. The following table summarizes the maximum costs for each contract year. Annual adjustments would be based on the CPI range of no less than one percent and no greater than three percent:

Contract Term Maximum CPI Increase Maximum Amount
Year 1 - $290,283
Year 2 3% $298,991
Year 3 3% $307,961
Year 4 3% $317,200
Year 5 3% $326,716
Total Not To Exceed $1,541,152
Consultant Selection
Bidder Recommendation
Best Bidder Roth Management
Evaluation Criteria Price, previous experience, ability to deliver,

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quality of product, and compliance with City
specifications.

Municipal Code SMMC 2.24.180
RFPs Received
Roth Management Unipak Corp – No Bid
RFP Data
Date Posted Posted On Advertised in (City
Charter & SMCC)
Vendors
Downloaded
Date Publicly
Opened
01/19/2024 City’s Online
Bidding Site
Santa Monica Daily
Press
10 02/16/2024
Best Bidder Justification
On January 19, 2024, the City issued a Request for Proposals (RFP). The RFP was posted on the City’s on-line bidding website. Ten potential bidders downloaded the RFP. The City received two applications; one was a no bid submittal and Roth Management submitted a proposal. Staff evaluated the proposal based on the criteria set forth in the RFP, which included experience, qualifications, and managerial capability to maintain all aspects of the operation. Although only one bid was received, staff believes the price is appropriate for the scope of services to be provided and that Roth Management’s proposal is highly responsive to the RFP criteria. Roth Management is experienced in the operation and restoration of carousels and has managed and maintained the Santa Monica Pier Carousel since 2001 in an excellent manner.

Past Council Actions
Meeting Date Description
12/18/2018 (attachment A) Council Authorized Management Agreement with Roth Management for a term of up to five years.

Environmental Review
The contract amendment for management of the Santa Monica Pier Carousel is categorically exempt from CEQA pursuant to Section 15301 (Class 1 - Existing Facilities) and Section 15331 (Class 31 – Historical Resources) of the CEQA Guidelines. Section 15301 provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The contract

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would provide for operation and maintenance of the existing Carousel and would not expand or materially change existing facilities or operations. Therefore, the contract is categorically exempt pursuant to Section 15301 of the CEQA Guidelines. Section 15331 provides exemption for maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation or reconstruction of historical resources in a manner consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings. The contract would also provide for maintenance and minor repairs of the historic Carousel, and all minor restoration/repair work and materials utilized for maintenance and repair would meet the Secretary of Interior’s Standards for the Treatment of Historic Properties. Therefore, the contract is also exempt pursuant to Section 15331 of the CEQA Guidelines.

Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Pier Fund to award a management agreement with Roth Management for the operation and maintenance of the Santa Monica Pier Carousel.

FY 2024-25 Request
Amount
Future Years’
Amount Department Account # Total Estimated Contract Amount $290,283 $1,250,869 53700002.550160 $1,541,152
Future year funding is contingent on Council budget approval.

Prepared By: Seiky Gil, Business Assistant
Approved Forwarded to Council

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Attachments:

A. December 18, 2018 Operation and Maintenance of the Santa Monica Pier Carousel (Web Link)
B. 2024.02.14 Roth Management Oaks Initiative Form
C. Roth Mgmt Levine Act form - 2024.03.13

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CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

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

5.E.b
Packet Pg. 404 Attachment: 2024.02.14 Roth Management Oaks Initiative Form (6284 : Santa Monica Pier Carousel Management Agreement)

CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

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

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

Bid/PO/Contract # ____________________________ Permit # ___________________________

5.E.b
Packet Pg. 405 Attachment: 2024.02.14 Roth Management Oaks Initiative Form (6284 : Santa Monica Pier Carousel Management Agreement)

5.E.c
Packet Pg. 406 Attachment: Roth Mgmt Levine Act form - 2024.03.13 [Revision 1] (6284 : Santa Monica Pier Carousel Management Agreement)

5.E.c
Packet Pg. 407 Attachment: Roth Mgmt Levine Act form - 2024.03.13 [Revision 1] (6284 : Santa Monica Pier Carousel Management Agreement) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.F
1 of 3
To: Mayor and City Council
From: Jenny Rogers, Recreation and Arts Director, Recreation and Arts Department Subject: Approval of Amendment to Contract No. 3896 with Bounce, Inc. for Specialty Recreation Classes at the Annenberg Community Beach House Recommended Action
Staff recommends that the City Council

1. Adopt a finding of no possibility of significant effect pursuant to Section 15601(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 an agreement with Bounce, Inc. #3896 to increase the amount of the agreement by an additional $171,696 and permit the City to exercise its remaining two options to extend the agreement through FY 26-27. This will result in a total not-toexceed amount of $420,696 with future year funding contingent on Council budget approval.

Summary
The Recreation and Arts Department’s (RAD) Community Recreation Division offers recreational camps and classes for youth and adults through its Beach Recreation program. This program utilizes independent contractors to conduct beach recreational classes and camps in surf, kids’ gym, yoga, and volleyball. Following a Request for Proposal (RFP) competitive selection process conducted in 2021, the City of Santa Monica entered into agreement #3896 with Bounce, Inc. to provide mobile movement classes, sports coaching, and birthday parties to children between 6 months old and 10 years old. Given the high demand for these programs, staff anticipates that this agreement will exceed the $250,000 threshold within the year and seeks approval to modify the agreement to increase contract price for services rendered through FY26-27.

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Discussion
RAD contracts with various individuals and businesses to conduct a full range community classes and camps. Contractors are selected from those who participate in a competitive Request for Proposals process. Staff selects a cadre of diverse contract instructors to provide the community with a wide range of recreational opportunities.

Participants in all contractor led classes and camps are charged a fee that full covers the City’s cost to administer the programs. Beach recreation classes have seen a growth in popularity. The Department issued a Request for Proposal in April 2021 for independent contractors who would provide recreational services through March 1, 2024 with three additional one (1) year options to extend the agreement. The first modification was entered in March 2024, extending the agreement through March 2025.

The RFP was posted on the City’s online bidding site in accordance with City Charter and Municipal Code provisions for informal bidding procedures. Responses to the proposals were reviewed by a selection panel of staff from the multiple departments. All proposals were evaluated based on the criteria in Santa Monica Municipal Code (“SMMC”) Section 2.24.180 including price, the quality of services offered, and ability to deliver. Bounce, Inc. was recommended by the selection panel and was chosen to develop and implement programming on behalf of the Beach Recreation Classes Program. Contracts were awarded under the authority of the City Manager and had a not-to-exceed amount of $249,000. Future RFP postings will be conducted on the City’s online bidding site in accordance with the SMMC and follow all formal bidding procedures. During the first two years of the agreement Bounce, Inc. conducted classes for 701 participants. To allow Bounce, Inc. to provide services for fiscal years 2024 through 2027 should the City exercise its second and third options to extend the agreement, staff recommends increasing the not-to-exceed amount by $171,696, for a total amount of $420,696 over the life of the agreement. The program is structured so that all payments made to the contractor, in this case Bounce Inc., are based on a percentage of actual participant registration fees paid to the City. Camps and classes registration fees paid by participants will fully cover the cost of this contract.

Environmental Review

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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 recreational services including classes and camps at existing facilities. 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
Staff seeks authority to approve funding from the Beach Fund to increase the amount of the agreement with Bounce, Inc. for youth recreational services.

Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 23-24
Modified
Request
Amount
Future
Years’
Amount Dept Account # Total Revised Contract Amount
3896 $249,000 $30,000 $141,696 11430001.550010 $420,696 Future year funding is contingent upon Council budget approval.

Prepared By: Jeanette Gant, Community Recreation Manager Approved Forwarded to Council
Attachments:

A. Bounce OAKS FY24
B. 14 Levine Act Disclosure FormSIGNED
C. Complete_with_DocuSign_02_Bounce_Inc_Instrup (1)

5.F
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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.F.a
Packet Pg. 411 Attachment: Bounce OAKS FY24 (6285 : Contract Amendment (#3896) with Bounce, Inc.)

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 #

5.F.a
Packet Pg. 412 Attachment: Bounce OAKS FY24 (6285 : Contract Amendment (#3896) with Bounce, Inc.) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

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Packet Pg. 413 Attachment: 14 Levine Act Disclosure FormSIGNED (6285 : Contract Amendment (#3896) with Bounce, Inc.) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

5.F.b
Packet Pg. 414 Attachment: 14 Levine Act Disclosure FormSIGNED (6285 : Contract Amendment (#3896) with Bounce, Inc.) 1 Rev. October 2023
Agreement No. ___

COMMUNITY SERVICES DEPARTMENT

RECREATIONAL INSTRUCTOR AGREEMENT
This Instructor Agreement (“Agreement”), entered into as of ___________(“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and Bounce, Inc., an Incorporated Company (“Contractor”), is made with reference to the following:

RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City of Santa Monica.

B. Contractor seeks to provide instruction in specified recreational activities as part of the recreational programs sponsored by the City of Santa Monica through its Recreation and Arts Department. Contractor is qualified and possesses the experience and skills to provide instruction in the specified recreational activities.

C. City and Contractor desire to enter into this Agreement for Contractor to provide instructional services upon the terms and conditions set forth below.

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

TERMS AND CONDITIONS

1. Term. The term of this Agreement shall commence on the March 1, 2022, and continue through March 1, 2024, unless sooner terminated in accordance with Section 17. Should the parties mutually agree to renew this Agreement for up to three additional one-year period(s), the parties agree that Contractor will provide Services under the same terms and conditions contained herein.

2. Services To Be Performed By The Contractor.

2.1 Class Commitment. Contractor shall provide instructional services (“Services”) in accordance with the Schedule of Services and Payments mutually agreed upon by the parties attached hereto as Exhibit A and incorporated herein by reference. Contractor agrees to conduct classes in accordance with the dates, times, and locations outlined on the Class Schedule Commitment Forms attached hereto as Exhibit B and incorporated herein by reference. A Class Schedule Commitment Form will be completed for each season or session where Services are requested by the City, and Contractor’s agreement to adhere to the class schedule will be reflected by Contractor’s execution of the Class Schedule Commitment Form. Each Class Schedule Commitment Form that is approved by the parties shall become part of Exhibit B and incorporated herein by reference.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D 3896
3/15/2024

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Packet Pg. 415 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 2 Rev. October 2023

2.2 Materials and Supplies. Contractor shall provide its own tools, equipment, materials, supplies, and vehicles necessary to perform the Services and shall be responsible for all expenses incurred in association with the performance of the Services. Contractor may charge a reasonable materials and supplies fee to participants enrolled in a class (“participants”) for materials and supplies Contractor provides to participants provided that: (a) the fee does not exceed the amount set forth in Exhibit A as mutually agreed by the parties; and (b) Contractor collects the fee directly from participants.

2.3 Registration of and Payments by Participants. Registration of, and the collection of payments from, participants shall be handled through City offices. Contractor agrees not register participants or accept any payments for any class from any participants, with the sole exception of any reasonable material and supplies fee in accordance with Section 2.2 above.

2.4 Minimum Class Size. With respect to any particular class, Contractor shall provide Services if the number of participants registered for the class by the time of the first-class meeting is greater than or equal to the minimum set forth in attached Exhibit A. If the minimum number of participants is not registered by the time of the first class meeting, or if the number of registered participants falls beneath the minimum number after commencement of the first class meeting, the parties may mutually agree to cancel or continue the class. If the parties mutually agree to continue a class without having the minimum number of participants registered, Contractor will be paid only for the number of participants registered for that class.

2.5 Cancellation of Classes. If a class is canceled prior to the first-class meeting, Contractor will not be compensated. If a class is cancelled after the first-class meeting, Contractor will be compensated for the class meetings instructed as provided in Exhibit A.

2.5.1 Cancellation by Contractor. Contractor agrees not to cancel any class without providing prior written notice to the City. To cancel a class, Contractor must submit a written notification of cancellation to the City least thirty (30) days prior to the scheduled first meeting of the class, unless a cancellation is due to low enrollment, in which case Contractor will notify the City within seven (7) days of the first class meeting.

2.5.2 Cancellation by City. City agrees not to cancel any class without providing prior written notification to Contractor. To cancel a class, City must submit a written notification of cancellation to Contractor: (a) at least three (3) days prior to the scheduled first meeting of the class, in which case City shall have no obligation to compensate Contractor in any way for the cancelled class; or (b) at least three (3) days prior to an effective date of cancellation after the scheduled first meeting of the class, in which case compensation for Services shall be pro-rated to provide payment to Contractor for the dates and times Contractor provided Services.

2.5.3 Rescheduling. If Contractor is unable to provide Services when required at any particular class meeting, Contractor agrees to notify City at least twenty-four (24) hours prior to the start of the scheduled class meeting unless a cancellation is due DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 416 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 3 Rev. October 2023
to rain, in which case Contractor will notify the City at least two hours in advance of the class meeting, so that Contractor may notify all participants of the cancellation of that particular class meeting. Except as otherwise provided herein, Contractor agrees to give a make-up class meeting on rescheduled dates and times mutually agreed upon by City and Contractor, with Contractor not unreasonably withholding agreement to any proposed date and time for rescheduling.

3. Child Protection. Contractor and any and all of Contractor’s employees, subcontractors, volunteers, agents, and representatives who render Services that involve direct contact with or supervision of children, or who supervise the employees, subcontractors, volunteers, agents, or representatives rendering such Services, are required to do all of the following:

3.1 Child Abuse and Neglect Mandated Reporter Training. Obtain training in the identification and reporting of child abuse and neglect and comply with California Penal Code Section 11166.5. Contractor shall provide a signed copy of the City of Santa Monica Mandated Reporter Acknowledgement and CDSS Certificates of Completion for the California Child Abuse Mandated Reporter Online Training for Contractor and all such employees, subcontractors, volunteers, agents, and representatives before performing any Services that involve direct contact with or supervision of children.

3.2 Code of Conduct and Standards. Read, understand, and agree to comply with all of the following City standards set forth in City of Santa Monica Administrative Instruction III5-12: (a) Code of Conduct for Providing Services to Youth; (b) City Standards for Youth Programs; and (c) City Standards for Responding to Allegations of Suspicious or Inappropriate Conduct. For all such employees, subcontractors, volunteers, agents, and representatives, Contractor shall provide a signed Acknowledgment of Abuse Prevention Standards and Requirements attached hereto as Exhibit D and incorporated herein by reference.

3.3 Contractor will bear the costs of complying with the Child Protection requirements set forth in this section.

4. Compensation To Contractor. Contractor shall be compensated for Services performed pursuant to this Agreement in the amount and in accordance with the mutually agreed upon Schedule of Services and Payments set forth in Exhibit A. The total amount of compensation to be paid to Contractor under this Agreement shall not exceed Two Hundred Forty-Nine Thousand Dollars ($249,000). This total amount will include compensation paid to Contractor for the years that the parties mutually agree to renew this Agreement under the same terms and conditions.

5. Relationship Of The Parties/Independent Contractor.

5.1 Contractor enters into this Agreement as, and shall continue to be, an independent contractor for purposes of federal, state, and local laws, including but not limited to, the California Labor Code, California Unemployment Insurance Code, and wage orders of the Industrial Welfare Commission. Under no circumstances shall Contractor or Contractor’s DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 417 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 4 Rev. October 2023
employees, subcontractors, volunteers, agents, or representatives look to City as his/her/its employer, or as a partner, agent, or principal. Contractor and Contractor’s employees, subcontractors, volunteers, agents, or representatives shall not be entitled to any City paid benefits accorded to City employees including workers’ compensation, disability insurance, vacation or sick pay.

5.2 Contractor shall be responsible for obtaining, at Contractor’s sole expense, any business licenses, business tax registrations, and permits required to perform the Services.

5.3 Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation, including estimated taxes, and shall provide City with proof of payment on demand.

5.4 Contractor agrees to indemnify, defend, and hold harmless City for any claims, losses, costs, fees, liabilities, damages or injuries suffered by City arising out of Contractor’s breach of this Section.

6. Contractor’s Representations.

6.1 Contractor represents that Contractor and all of Contractor’s employees, subcontractors, volunteers, agents, and representatives who will provide the Services, possess the qualifications and ability to perform the Services in a professional manner, without the advice, control, direction, or supervision of City. Performance of the Services in a professional manner includes meeting the requirements of the program under which Contractor is obligated to provide Services, and failure to do so shall constitute a material breach of this Agreement.

6.2 Contractor represents that it has all of the training and special skills necessary to provide Services. Contractor understands that it shall be solely responsible for the professional performance of the Services, and shall receive no assistance, direction, or control from City. Contractor shall have sole discretion and control of Contractor’s Services and the manner in which they are performed.

6.3 Contractor represents that it maintains a business location that is separate from the location(s) where Contractor will provide Services.

6.4 Contractor represents that Contractor is engaged in an independently established business of the same nature as that involved in the Services that Contractor will perform under this Agreement.

6.5 Contractor represents that Contractor advertises and holds itself out to the public as available to perform, does perform for others, and maintains its own clientele for the same or similar services as the Services that Contractor will perform under this Agreement.

7. Contractor’s Compliance With Law. Contractor shall comply with all laws of the State of California and the United States, and all ordinances, rules, and regulations enacted or issued by City including, but not limited to, the following:

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 418 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 5 Rev. October 2023

7.1 Non-discrimination Requirements. Contractor will comply with Title VI of the Civil Rights Act of 1964, 42 USC Section 2000d, and with Section 504 of the Rehabilitation Act, 29 USC Section 794. In accordance with these statutes and other federal, state, and local laws, no person in the United States shall, on the grounds of race, creed, color, disability, national origin, sex, age, marital status, sexual orientation, HIV/AIDS status, political affiliation or religious beliefs, be excluded from participation in, be denied the benefits of, or otherwise subjected to discrimination under any program or activity provided by Contractor. Contractor and any of its subcontractors shall adhere to all regulations set forth by the Americans with Disabilities Act (ADA). Contractor shall make every effort to ensure that all projects funded in whole or in part by City shall provide equal employment and career advancement opportunities for minorities, women, and persons with disabilities.

7.2 Fair Labor Standards Compliance. Contractor agrees to indemnify, defend, and hold harmless the City, its agents, officers, and employees from any and all liability including, but not limited to, wages, overtime pay, liquidated damages, penalties, court costs, and attorneys’ fees arising under any wage and hour law including, but not limited to, the Federal Fair Labor Standards Act, for any services performed by Contractor’s employees, subcontractors, volunteers, agents, or representatives.

8. Permits And Licenses. Contractor shall comply with all applicable laws, regulations, ordinances, and statutes, and shall obtain and maintain, at Contractor’s sole expense, all required business and professional permits, licenses, and certificates, including a City of Santa Monica business license.

9. Insurance. Prior to commencing work, Contractor must procure, maintain, and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by Contractor or Contractor’s employees, subcontractors, volunteers, agents, or representatives, for the duration of this Agreement.

Contractor must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements.

10. Defense, Indemnification and Hold Harmless. Contractor shall indemnify, defend and hold harmless City, its City Council, members of its boards and commissions, officers, agents, employees and volunteers (collectively “City Indemnitees”) from and against any and all loss, damages, liability, claims, suits, judgments, taxes, costs and expenses, whatsoever, including reasonable attorney’s fees arising from or in any manner connected to: (i) the condition or use of materials or equipment provided by Contractor in the performance of the Services; (ii) the Services, activities or work conducted pursuant to this Agreement; or (iii) claims by any persons or entities providing services, materials, equipment or supplies in connection with Contractor’s obligations under this Agreement.

11. Safety. Contractor will notify City immediately if Contractor observes that City’s facility or equipment is unsafe and will not utilize the facility or equipment until the unsafe condition is corrected.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 419 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 6 Rev. October 2023

12. Live Scan. Contractor agrees that Contractor and all of Contractor’s employees, subcontractors, volunteers, agents, and representatives who perform Services, or who supervise the employees, subcontractors, volunteers, agents, or representatives performing such Services, will be fingerprinted prior to the commencement of their provision of Services and on an annual basis thereafter as long as Contractor is performing Services. Contractor acknowledges and agrees that fingerprints may be used on an ongoing basis to verify arrests and conviction records for all such employees, subcontractors, volunteers, agents, and representatives by comparing them with local, state, and federal records. Contractor agrees to pay whatever fees if any may be involved in this process.

13. Tuberculosis Screening. Contractor agrees to provide City with proof that Contractor and all of Contractor’s employees, sub-contractors, and volunteers who perform Services have undergone a TB risk assessment or test, as required every four (4) years for adults working with school age children. Contractor shall bear the costs of complying with this tuberculosis screening requirement.

14. Informational Meetings. Contractor agrees to meet with City staff at a time and date mutually agreed by the parties, at Contractor’s sole expense, to obtain information about the City’s program in connection with which Contractor will be providing the Services, including policies and procedures for obtaining notice of the number of registered participants, for providing notice of any issues that may arise with participants, and relating to City managed programs that provide services to participants. Contractor agrees that its lead administrative staff and all employees, subcontractors, and volunteers who provide Services shall also attend the meetings.

15. Publicity and Privacy. Contractor agrees not to generate any written, audio or visual publicity regarding City-sponsored classes without prior written approval from City. Contractor agrees not to promote non-City classes at City facilities or with City equipment. Contractor also agrees to respect the privacy of class participants by not soliciting participants’ contact information from participants.

16. Photo Release. Contractor consents to the photographing, recording or reproduction in any other manner (including use of videotapes and audiotapes) of the likeness, voice and/or activities of Contractor and any of Contractor’s employees, subcontractors, volunteers, agents, and representatives who provide Services, and further authorizes the City of Santa Monica, its agents or assigns, to make unlimited use of such reproductions, including, but not limited to, broadcasting to the public of the reproductions over radio and television stations. Contractor understands that neither Contractor nor any of Contractor’s employees, subcontractors, volunteers, agents, or representatives will receive any monetary compensation now or in the future as the result of the creation or use of any such reproductions. Contractor releases the City Indemnitees from any claims based on the creation or use of any such reproductions, and Contractor agrees to indemnify, defend, and hold harmless the City Indemnitees for any claims, losses, costs, fees, liabilities, damages or injuries that arise out of any claim based on the creation or use of any such reproductions that may be brought by any of Contractor’s employees, subcontractors, volunteers, agents, or representatives.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 420 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 7 Rev. October 2023

17. Default and Termination.

17.1 In the event that Contractor fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five (5) days after receipt by Contractor of City’s written notice of default specifying the nature of the default and the steps necessary to cure the default, City may immediately terminate this Agreement by written notice.

18. Notices. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when personally delivered, or on the fifth business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:

All notices, demands, requests or approvals from Contractor to City shall be addressed to City at:

City of Santa Monica
Director, Recreation and Arts
1685 Main Street, Room 240
Santa Monica, California 90401
with copies to:

Santa Monica Swim Center
Attn: Aquatic Program Manager
2225 16th Street
Santa Monica, CA 90405
and:

City Attorney
1685 Main Street, Third Floor
Santa Monica, CA 90401
All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at:
5820 Wilshire Blvd
Suite 203
Los Angeles, CA 90036
Any party hereto may, from time to time by notice in writing served upon the other party, designate a different mailing address or a different person to whom all notices, demands, requests or approvals are thereafter to be addressed.

19. Subcontractors.

19.1 If Contractor proposes to have any subcontractor perform any part of the Services, Contractor must submit a request for approval in writing, describing the scope of work to be performed by the subcontractor, the name of the proposed subcontractor, and the DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 421 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 8 Rev. October 2023
total price or hourly rates used in preparing an estimated cost for the subcontractor services. The City, in its sole discretion, may grant or deny the request.

19.2 Contractor will be responsible for the quality of any subcontractor’s work. Every subcontract or agreement of any kind entered into between Contractor and any subcontractor (or between any subcontractor and others) must contain the following provision:

This agreement is consistent with all terms and conditions of the Agreement No. ______ entered into between the City of Santa Monica and Contractor on March 1, 2022.

20. Records. Contractor shall maintain complete and accurate records of Services provided and the costs of providing those Services in sufficient detail to permit an evaluation of the Services.

20.1 Such records shall include complete and accurate records with respect to costs, expenses, receipts and other such information required by City for any Services provided where compensation is on the basis of hourly rates, subcontractor costs, or other direct costs.

20.2 All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. All such records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of final payment.

20.3 Representatives of City or its designees shall be allowed free access to Contractor’s books and records, and shall have the right to examine, audit and make transcripts therefrom as necessary, and to inspect all work, data, documents, proceedings and activities related to this Agreement. If City’s audit discloses an error of five percent (5%) or more in information reported by Contractor and City’s audit is correct, Contractor shall pay the cost of City’s audit computed on the basis of four (4) times the direct payroll of the audit staff completing the audit and audit report.

21. Governing Law. This Agreement has been made and shall be construed and interpreted in accordance with the laws of the State of California.

22. Integrated Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements are merged herein. No other verbal agreement, oral or written, or implied covenant shall be held to vary the provisions of this Agreement. With the exception of the Class Schedule Commitment Forms that will be completed for each season or session as provided in Section 2.1 of this Agreement, any modification of this Agreement, including the scope of services and payment amount for services, will be effective only by written execution signed by both City and Contractor.

23. Venue and Jurisdiction. The City and Contractor agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D 3896

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Packet Pg. 422 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 9 Rev. October 2023
exists in either court, and each party expressly waives any right to transfer to another venue.

The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.

24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.

25. Prohibition Against Transfers.

25.1 Contractor shall not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without City’s consent shall be null and void, and any assignee, hypothecatee or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

25.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venture or syndicate member of Contractor if a partnership or joint venture or syndicate exists, which results in changing the control of Contractor, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.

26. Waiver. A waiver by either party to this Agreement of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein.

27. Parking. City shall provide parking to Contractor’s employees, subcontractors, volunteers, agents, or representatives on site when conducting official City programming for Community Classes and Camps only. Parking will be restricted to specific City park locations and for the duration of official City programming.

28. Execution in Counterparts. This Agreement may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single document. Any signature to this Agreement transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).

29. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.

Exhibit A Schedule of Services and Payments
Exhibit B Class Schedule Commitment Forms
Exhibit C Insurance Requirements
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 423 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 10 Rev. October 2023
Exhibit D Acknowledgment of Abuse Prevention Standards and Requirements
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 424 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 11 Rev. October 2023
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first above written.

ATTEST:
______________________________
Nikima Newsome
Acting City Clerk
APPROVED AS TO FORM:
______________________________
Douglas Sloan
City Attorney

CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
David White
City Manager
BOUNCE Inc.
#405108
By:
________________________________
Louisa Barnett
Owner
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D 2/29/2024
3/13/2024
3/19/2024 3/15/2024

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Packet Pg. 425 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Exhibit A
Schedule of Services and Payments
Contractor: Bounce, Inc.

Classes will be conducted in accordance with the following schedule of services and payments.

Class Name
Base Fee
per Class
Meeting
% of Base
Fee Paid to
Contractor
Minimum
Enrollment
Maximum
Enrollment

Materials
Fee*
Bounce
Presents:

Crawling Crabs
on the Beach
$45 70%  8 15 n/a
Bounce
Presents:

Diving
Dolphins on
the Beach
$45 70%  8 15 n/a
Bounce
Presents:

Preschooler
Diving
Dolphins
$45 70%  8 15 n/a
Bounce
Presents:

Surfing
Starfish on the
Beach
$45 70%  8 15 n/a
Bounce
Presents: Turtle
Tots on the
Beach
$45 70%  8 15 n/a

*Materials Fee Description: n/a

Contractor must complete and sign a Billing Sheet for payments to be issued.

Contractors will be paid a percentage of the base class fee (not including administration fees).

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 426 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) The total amount of compensation for Services rendered pursuant to this Agreement shall not exceed $249,000. This total amount will include compensation paid to Contractor for the years that the parties mutually agree to renew this Agreement under the same terms and conditions.

Payments for Contractors teaching classes will be issued at the conclusion of the session/season and no later than within two weeks after the conclusion of the session.

Class locations, dates and times may vary by session and are confirmed in a Class Schedule Commitment Form each session/season.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 427 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Exhibit B
Class Schedule Commitment Forms
Session/Season: Winter/Spring 2024

Contractor: Bounce, Inc.

Classes will be conducted in accordance with the following schedule of dates, times and locations.

Class Day Dates Time Location
Bounce Presents: Crawling Crabs
on the Beach Tu 2/20 – 3/26 12 – 12:45 p.m.

Annenberg
Community
Beach House
Bounce Presents: Surfing Starfish
on the Beach Tu 2/20 – 3/26 10:30 -11:15 a.m.

Annenberg
Community
Beach House
Bounce presents: Turtle Tots on
the Beach Tu 2/20 – 3/26 9:30-10:15 a.m.

Annenberg
Community
Beach House

Bounce Presents: Crawling Crabs
on the Beach Fri 2/23 – 3/29 12 – 12:45 p.m.

Annenberg
Community
Beach House
Bounce Presents: Surfing Starfish
on the Beach Fri 2/23 – 3/29 10:30 -11:15 a.m.

Annenberg
Community
Beach House
Bounce presents: Turtle Tots on
the Beach Fri 2/23 – 3/29 9:30-10:15 a.m.

Annenberg
Community
Beach House

Contractor Signature _____________________________ Date ________________

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D Louisa Barnett
3/13/2024

LOUISA BARNETT TAYLOR
CEO

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Packet Pg. 428 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Exhibit C
Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services hereunder by the Contractor, its employees, subcontractors, agents, representatives and volunteers.

Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering GCL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence.

2. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).

If the Contractor maintains higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.

Other Insurance Provisions

1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance at least as broad as Insurance Services Office Form CG 20 10 11 85. b. Primary Coverage: For any claims related to this Agreement, the Contractor’s insurance shall be primary as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 429 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Contractor may acquire against the City of Santa Monica by virtue of payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Contractor to purchase coverage with a lower deductible or retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers with a current a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.

Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required herein. All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.

Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of agreement.

The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Contractor resulting from said breach. Alternatively, the City of Santa Monica may purchase such coverage (but has no special obligation to do so), and without DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 430 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) further notice to the Contractor, the City may deduct from sums due to the Contractor any premium costs advanced by the City for such insurance.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.

Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does not have employees. The Contractor must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 431 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Exhibit D
Acknowledgment of Abuse Prevention Standards and
Requirements
I have read, understand, and agree to comply with all of the following:

A. Code of Conduct for Providing Services to Youth;
B. Standards for City-Managed Youth Programs; and
C. Standards for Responding to Suspected Abuse or Neglect or Suspicious or Inappropriate Conduct.

In addition, I have completed Child Abuse Mandated Reporter Training using materials designated by the Child Abuse Prevention Committee. I understand that violations of the standards and requirements set forth in these materials may result in termination of my agreement with City.
#VENDOR
___________________________
Contractor Signature
_____________________________
Name of Youth Program
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D 3/13/2024
CEO
Louisa Barnett

BOUNCE LA

LOUISA BARNETT TAYLOR

5.F.c
Packet Pg. 432 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.)

CODE OF CONDUCT FOR PROVIDING SERVICES TO YOUTH
The Code of Conduct for Providing Services to Youth outlines specific expectations for all staff employees, staff volunteers, and contractors (collectively “Staff”) for any City-managed youth program.

Staff are expected to act conscientiously to exemplify the highest ethical standards. While the City encourages the cultivation of positive relationships with youth, Staff must take care that efforts to cultivate such relationships do not place youth or them in vulnerable situations.

Accordingly, when working in connection with the City-managed youth program, all Staff must at all times comply with all of the following:

Staff understand that the City of Santa Monica has zero tolerance for abuse.

Staff will treat youth with dignity and respect.

Staff will treat youth fairly regardless of race, color, sex, sexual orientation, gender identity, gender expression, ancestry, national-origin, religion, medical condition, or physical or mental disability.

Staff will ensure that youth are adequately supervised in accordance with recommended supervision ratios.

Staff will dress appropriately to the occasion, task, and company present.

Staff will seek guidance from a program supervisor if
they are unsure about anything relating to the conduct of Staff or youth.

Staff will not stare at or comment on youth bodies.

Staff will not date or engage in physical or romantic relationships with youth.

Staff will not use or be under the influence of alcohol or illegal drugs in the presence of youth or at any facility used to provide services to youth.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 433 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Staff will not have printed or online pornography in the presence of youth or at any facility used to provide services to youth.

Staff will not have secrets with youth.

Staff will not give to any youth gifts, rewards, or incentives (including food) that are not program related.

Unless a program supervisor has agreed that greater
confidentiality is absolutely necessary to the service being provided (for example, individual therapy that requires privacy for confidential communications): (a) Staff will not meet individually with youth behind closed doors or in any other setting outside the view of other adults; (b) interactions with youth should occur in view of other adults; (c) if Staff believes there is a need for a private or one-on-one discussion to address something personal or sensitive, Staff should conduct the discussion in a quiet place that can be monitored or seen by another adult Staff; (d) Staff will notify the Staff’s supervisor in advance of the individual meeting and its purpose; and (e) immediately, or as soon as practically possible, after the meeting, Staff will report the meeting to the Staff’s supervisor, identify to the Staff supervisor
the other Staff who witnessed the meeting, and provide
the Staff supervisor with a full description of what occurred during the meeting. Where a program supervisor has agreed that greater confidentiality is absolutely necessary to the service being provided, Staff will still notify the Staff’s supervisor of the time, place, and duration of the meeting, and, to the extent possible without breaching required confidentiality, the general nature of what occurred during the meeting, including any unusual occurrences.

Staff will not abuse youth in anyway. In addition, Staff have an obligation to do all they can to prevent abuse of youth by anyone, including other Staff, other adults, or other youth. Abuse includes, but is not limited to, any of the following:

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 434 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) a. Physical abuse: striking, kicking, hitting, spanking, shaking, slapping, biting, hair pulling, choking, throwing, whipping, unnecessary restraints, or other action that injures a child; b. Verbal abuse: degrading, threatening, cursing;
c. Sexual abuse: inappropriate touching, exposing oneself, sex of any kind, obscene phone calls, text messages, or digital interactions, or other sexual conduct that is harmful to a child’s mental, emotional, or physical welfare;
d. Emotional abuse: shaming, humiliating, isolating, terrorizing, cruelty.

Staff will not mistreat or bully youth in any way. In
addition, Staff have an obligation to do all they can to prevent mistreatment or bullying of youth by anyone, including other Staff, other adults, or other youth. Bullying is aggressive or threatening behavior that is intentional, repeated, and involves an imbalance of power or strength. Bullying may be based on, but not limited to, actual or perceived race, color, ethnicity, religion, national origin, sex, age, marital status, personal appearance, sexual orientation, gender identity or expression, intellectual ability, familial status, family responsibilities, matriculation, political affiliation, genetic information, disability, source of income, or any other distinguishing characteristic, or on a person's association with a person or group with any of the actual or perceived
foregoing characteristics. Bullying can take on various forms and includes, but is not limited to, any of the following:
a. Physical bullying involves unwanted physical contact and using physical force to hurt a person’s body or possessions. Physical bullying can include: (i) hitting, punching, pushing, shoving, kicking, tripping, pinching, or restraining another; (ii) spitting on another; (iii) taking, hiding, or breaking another’s things.
b. Verbal bullying and bullying using non-verbal gestures involves using words, whether spoken (including in telephone calls) or written (including in texts, emails, or graffiti), or non-verbal gestures, to harm another or convey a threat of harm to another.

Verbal bullying can include: (i) teasing; (ii) name-calling; (iii) taunting; (iv) mean, rude, threatening, or vulgar gestures. c. Social bullying (sometimes also referred to as relational bullying) involves hurting or threatening to hurt someone’s reputation DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 435 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) or relationships. Social bullying can include: (i) social exclusion, that is, excluding someone from social
interactions; (ii) friendship manipulation, that is, telling others not to be friends with someone, or only to be friends with certain others; (iii) spreading rumors or gossip about someone; (iv) embarrassing someone in public or in front of a group of friends; (v) hazing a person seeking to join or participate in a group by engaging in or encouraging conduct that humiliates, degrades, abuses, or endangers that person, regardless of that person’s willingness to participate in the conduct.
d. Cyberbullying involves verbal or social bullying that is carried out using any form of electronic communication, including but not limited to email, instant messages, text messages, or postings (whether on social media, a website, a blog, a chatroom, or in any other way), to communicate text, video, audio, digital pictures, or digital images. Cyberbullying can include: (i) sending or posting mean, rude, threatening, or vulgar messages or images; (ii) sending or posting threats of harm; (iii) sending or posting sensitive, private information about another person; (iv) .sending or posting harassing messages or images; (v) encouraging others to exclude
someone from an online group; (vi) breaking into another’s electronic account and assuming that person’s identity in sending or posting information to damage that person’s
reputation or harm other individuals.
e. Sexualized bullying involves engaging in any of the other types of bullying using behaviors that are sexual in nature. Sexualized bullying can include: (i) sexting; (ii) , exposing or threatening or demanding the exposure of, private body parts; (iii) inappropriate sexual comments, gestures, or innuendo.

Staff will adhere to the City’s standards for youth
programs regarding all of the following:
a. appropriate and inappropriate physical interactions with youth; b. appropriate and inappropriate verbal interactions with youth; and, c. appropriate and inappropriate electronic communications with youth.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 436 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) All staff employees whose duties require direct contact with and supervision of children must understand that under California law (Penal Code § 11165.7(a)(8)) they are mandated reporters and, as a result, each must, as soon as is practicably possible, make a report to the Department of Children and Family Services (“DCFS”) or the Santa Monica Police Department (“SMPD”), whenever he or she, within the scope of his or her employment, has knowledge of or observes a child whom he or she knows or reasonably suspects has been the victim of child abuse or neglect.

To comply with this obligation, staff employees must
a. be familiar with the symptoms of child abuse and neglect; b. know and follow City policies and procedures intended to protect children against abuse and neglect; and
c. report suspected child abuse or neglect to DCFS or SMPD as required by state mandated reporter laws, including an initial report by telephone as soon as is practically possible, with a follow-up written report within 36 hours.

Separate and apart from staff employees’ obligations as mandated reporters under California law, all Staff will immediately report any concerns or complaints about abuse, neglect, bullying, or any conduct in violation of City standards regarding physical interactions, verbal interactions, or electronic communications with youth, by other Staff, other adults, or other youth, to their immediate supervisor (or if the concerns relate to that supervisor, to the program manager, program administrator, division manager, and/or department leadership) and/or the City’s anonymous ethics hotline at [email protected] or 844- 4-SMETHIC.

The City cooperates fully with law enforcement
authorities to investigate all cases of alleged abuse or neglect. All Staff must fully cooperate in any external investigation by outside authorities or internal investigation conducted by the City or persons given investigative authority by the City

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 437 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Standards for City-Managed Youth
Programs
The following standards apply to all staff employees, volunteers, and contractors (collectively “Staff”) for any City-managed youth program. Staff are expected to act conscientiously to exemplify the highest ethical standards. While the City encourages the cultivation of positive relationships with youth, Staff must take care that efforts to cultivate such relationships do not place youth or them in vulnerable situations. Accordingly, when working with youth, all Staff must at all times comply with all of the following standards.

I. Interactions with Youth
A. Physical Interactions
The City’s physical interaction standards are intended to promote a positive, nurturing environment while protecting youth and Staff. The City permits the physical interactions listed as appropriate below, but only when appropriate to a situation occurring within the program’s scope. The City prohibits physical interactions of the type set forth as inappropriate below. Any inappropriate physical interactions by Staff with youth will result in disciplinary action, up to and including termination of employment.

The City’s standards for appropriate and inappropriate
physical interactions are:

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 438 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Appropriate Physical Interactions Inappropriate Physical Interactions  Side hugs  Shoulder-to-shoulder or “temple” hugs  Brief pats on the shoulder or back  Handshakes  High-fives and hand slapping  Briefly touching hands, shoulders, and arms  Briefly placing arms around shoulders  Holding hands with young children in an escorting situation  Physical contact necessary for providing valid medical assistance or for providing
needed assistance to special needs youth  Physical intervention necessary to separate youth involved in a physical
altercation
 Full-frontal hugs  Kisses  Lap sitting  Wrestling  Piggyback rides  Tickling  Touching bottom, chest, or genital areas  Touching, grooming, or playing with hair  Any type of massage  Allowing a youth to cling to a Staff member’s leg  Any physical act of affection that is unwanted by the youth  Any physical act of affection that occurs in an isolated area
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 439 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Prevention Standards—

B. Verbal Interactions
The City’s verbal interaction standards prohibit Staff from all of the following: (a) speaking to youth in a way that is, or could be construed by any observer to be, harsh, coercive, threatening, intimidating, shaming, derogatory, demeaning, or humiliating; (b) speaking to youth in a way that is, or could be construed by any observer, as demonstrating any bias or discriminatory intent based on race, color, sex, sexual orientation, gender identity, gender expression, ancestry, national-origin, religion, medical condition, or physical or mental disability; (c) initiating any sexually oriented conversation with youth; and (d) discussing their own sexual activities with youth.

The City’s standards for appropriate and inappropriate verbal interactions are:

Appropriate Verbal Interactions Inappropriate Verbal Interactions  Instruction and guidance  Positive reinforcement  Encouragement  Praise  Appropriate critiques where necessary to the program (e.g., “your hand was in the
wrong position” when giving a swim
lesson), provided in a non-derogatory
fashion  Appropriate jokes
 Initiating sexually oriented conversations  Discussing staff or volunteer sexual encounters  In any way involving youth in the personal problems or issues of staff and volunteers  Off-color or sexual jokes  Remarks demonstrating any bias or discriminatory intent based on race, color, sex,
sexual orientation, gender identity, gender
expression, ancestry, national- origin, religion,
medical condition, or physical or mental
disability  Secrets  Name calling  Cursing  Remarks that are harsh, coercive, threatening, intimidating, demeaning, or humiliating  Belittling  Derogatory remarks about any youth or his/her family or friends
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 440 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Prevention Standards—

C. One-on-One Interactions (including tutoring/private coaching) Most abuse occurs when an adult is alone with a youth in a non-public setting. The City aims to eliminate or reduce these situations and prohibits Staff from engaging in private one-onone interactions with youth unless approved in advance by the program supervisor. This includes scheduled tutoring and/or private coaching sessions, whether occurring during or outside regular program hours, which must comply with all of the following:
a. Staff must have program supervisor approval for any tutoring or private coaching sessions; b. tutoring and private coaching sessions must be scheduled through the program, not independently, and must occur at a program-approved location; c. program supervisors must keep a schedule of private tutoring and coaching sessions, which should include times, youth involved, and location of the sessions.

In those situations where private one-on-one interactions (including tutoring and/or private coaching sessions) are approved in advance, Staff should observe the following additional guidelines when engaging in the approved interactions
Additional Guidelines for Approved Private One-on-One Interactions  Unless the program supervisor has agreed that greater confidentiality is absolutely necessary to the service being provided (for example, individual therapy that requires privacy for confidential communications):  Meet in a public place where you are in full view of others (e.g., a visible section of a library or gymnasium) or, if meeting in a room or office, leave the door open and ensure that you can be easily observed by individuals in the adjoining public area.  Before the meeting, inform other adult Staff that you will be alone with a youth and ask them to randomly drop in and, after the meeting, inform the other adult Staff that the meeting has been completed.  If the program supervisor has agreed that greater confidentiality is absolute necessary to the service being provided (for example, individual therapy that requires privacy for confidential communications), before the meeting, inform other adult Staff that you will be alone with a youth and after the meeting inform the other adult Staff that the meeting has been completed.  Avoid any physical acts of affection that might be misinterpreted. Limit any physical acts of affection to brief pats on the shoulder, high-fives, and handshakes.  At the conclusion of the meeting, immediately: (a) notify the program supervisor that the meeting has concluded; (b) report to the program supervisor and document any unusual occurrences during the meeting, including, but not limited to: any disclosures by the youth of any instances of abuse or maltreatment; any behavior problems and how they were handled; any injuries and how they were addressed; and any interactions that might be misinterpreted as inappropriate.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 441 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Prevention Standards—

D. Off-site Contact
Many cases of abuse occur off-site and outside of regularly scheduled activities. To avoid this risk, the City prohibits Staff interactions with youth outside of regularly scheduled program activities unless the interaction is of an appropriate type and is approved in advance by the program supervisor. City standards for appropriate off-site contacts (which may occur with advance program supervisor approval and parental approval) and inappropriate off-site contacts (which are absolutely prohibited and cannot be approved by program supervisors, regardless of whether parents approve or not) are as follows:

Appropriate Outside Contact Inappropriate Outside Contact  Taking groups of youth on a programrelated outing (parental approval and a minimum of two Staff or the number of
Staff required to satisfy the program
standard Staff/youth ratio, whichever is
greater, with at least one staff employee,
are required)  Attending program-related sporting
activities with groups of youth (parental
approval and a minimum of two Staff or
the number of Staff required to satisfy the
program standard Staff/youth ratio,
whichever is greater, with at least one staff
employee, are required)  Visiting a youth at the youth’s home for program-related reasons, with the parents
present at all times
 Taking one youth on an outing  Visiting a youth, whether in the youth’s home or elsewhere, without a parent or approved adult
guardian present  Hosting one or more youth in the home of Staff  One or more youth spending the night with Staff  Transporting youth in a personal vehicle (except in a true emergency situation with prior notice to
the program supervisor wherever practical and,
if not practical, notice to the program supervisor
as soon as practical)
E. Electronic Communications and Use of Electronic Communication Devices Any private electronic communication between Staff and youth, including private communications through social media (e.g., Facebook, Instagram, Snapchat) is prohibited. All electronic communication between Staff and youth must be publicly viewable (i.e., accessible to program supervisors and the youth’s parents) and/or copied to a program supervisor and/or the youth’s parents. In addition, all electronic communications between Staff and youth must comply with the guidelines for verbal interactions set forth in section B above.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 442 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Prevention Standards—

The following are examples of appropriate and inappropriate electronic communication:

Appropriate Electronic Communication Inappropriate Electronic Communication  Sending and replying to emails and text messages from youth ONLY when copying
a program supervisor and/or the youth’s
parents  Communicating through “organization
group pages” on Facebook or other
approved public forums
 Posting harsh, coercive, threatening,
intimidating, shaming, derogatory,
demeaning or humiliating comments on social
media sites  Posting sexually oriented comments on social media sites  Private emails or text messages between Staff and youth (whether using Staff’s personal
email or phone or a City-issued email or
phone)  Posting pictures of program participants on
any non-program social media sites  “Friending” or messaging youth on social media sites, through online gaming sites, or
through other online mechanisms  Providing youth with a personal email address, personal phone number, or other
personal contact information  Calling youth at home or on their cell phone, except for program related purposes
Use of electronic communication devices (whether personal or provided by the City) to engage in any inappropriate electronic communication with a program youth shall be grounds for discipline up to and including termination of employment.

F. Gift Giving
Molesters routinely groom youth by giving gifts, thereby endearing themselves to the youth, and instruct the youth to keep the gifts a secret, thereby teaching the youth to keep secrets from the youth’s parents. For these reasons, Staff are prohibited from giving gifts (including gifts of food) to any youth. This prohibition applies even if Staff believe the items they are giving to a youth are needed by that youth. Thus, for example, even if Staff believes a youth needs shoes, clothing, or food, Staff may not personally provide the youth with shoes, clothing, or food. Any gifts to youth must be approved by and come from the program, not individual Staff.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 443 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) II. Monitoring and Supervision
When Staff are adequately supervised, potential offenders are less likely to act on their impulses because they face detection. When youth are adequately supervised, they too are less likely to engage in inappropriate interactions with others. Similarly, the physical plant must be monitored, particularly out-of- the-way locations or locations that might permit an offender undue access to or privacy with a youth. Set out below are standards for programs to follow to ensure adequate monitoring and supervision.

A. Facility Monitoring
Building architecture can increase or mitigate the risk of an incident or accident. Because most incidents of abuse occur in private, to the extent privacy is managed, risk is managed. To ensure that all of the locations are properly and consistently monitored, the City’s Child Protection Officer (or designee as approved by the Child Protection Committee) shall conduct regular reviews of all locations used by the program.

B. General Supervision
Programs must put in place general supervision procedures that comport with the following:

Supervisor Visits to Youth Programs: Supervisors will regularly (not less than quarterly) visit all youth programs to ensure that all activities are well- managed and that youth policies are observed by all in attendance.

Check-In/Roll Call Procedures: Each program must put in place procedures (which will be site- specific) to monitor and document who has access to youth while the program is providing services to youth. For some programs, this may require a facility check-in sheet at or near the facility’s entrance. For other programs, this may require a program instructor to maintain a roll-call of participants with spaces for volunteers and others assisting with the program to sign in. Each program will need to consider how best to control and limit access to youth during program participation and how best to monitor and document those having such access.

Staff-to-Youth Ratios- Each program will establish and follow requirements for Staff-to-youth ratios that are appropriate to the goals of the program and the design of the program area and that comply with any local licensing requirements and best practice guidelines for the particular type of program. The Staff-to-youth ratio should be adjusted (in accordance with any DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 444 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) local licensing requirements and best practice guidelines) for programs that serve youth with special needs.

Mixed Age Groups- In most incidents involving one youth abusing another youth, the youth are from different age groups. Each program is responsible for establishing specific guidelines for additional monitoring and supervision of activities that involve youth from different age groups. Staff must be made aware that close line of sight supervision is required when monitoring programs that mix age groups.

C. Monitoring Youth in Program Facilities
Programs must implement practices for monitoring program youth that comply with all of the following:

1. A parent or legal guardian must complete a participant application which includes identifying information, the youth’s date of birth, and emergency contact information.

2. Programs should establish procedures (e.g., sign-in/sign-out sheets, instructor roll calls) sufficient to ensure that: (a) for all times youth are under direct supervision (see below), the the program has a record of the youth who are participating in the activity that is subject to direct supervision; and (b) for all times youth are using authorized areas within a facility under indirect supervision (see below), the program has a record of the youth who are using the authorized areas within the facility.

3. Programs must establish procedures to ensure that, while in the program facility, youth are supervised, either directly or indirectly. a. Direct supervision: The program may offer structured, scheduled activities like basketball tournaments, swimming classes, arts and crafts activities, etc. These activities should have one or more Staff assigned to lead and supervise, in accordance with the program’s Staff- to-youth ratio
requirements.
b. Indirect supervision: The program may designate certain facility areas as authorized areas. For example, authorized areas could include a gymnasium, a game area, a playground area, or a classroom for doing homework. Authorized areas must be easily visible and routinely and systematically checked by Staff.

Youth should know that they will be supervised by Staff at all times, and all Staff should know which areas are authorized DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 445 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) for indirect supervision. Programs must implement indirect supervision standards for all authorized areas that include at least the following: (i) how frequently and for how long authorized areas will be monitored by Staff; (ii) specific assignments of Staff to have supervision responsibilities over the authorized areas; and (iii) documentation of the scheduled periodic monitoring of these areas.
c. Programs must ensure that Staff are on notice of the need for close line of sight supervision of any group that includes youth below the age of 12, or 7th grade.

4. Programs must establish procedures for monitoring high risk areas (e.g., bathrooms, locker rooms, unused rooms, and other high risk areas identified by the periodic program site location review) that include at least: (a) designation of specific Staff to supervise these areas; (b) scheduled periodic monitoring of these areas; and (c) requirements for Staff to contemporaneously record when and for how long they monitor these areas.

5. Programs must require all program Staff to wear nametags or other identifying clothing so that youth can easily recognize them as Staff. Where possible, nametags or other identifying clothing should enable easy differentiation among staff employees, staff volunteers, and contractors.

6. Programs must train all Staff:
a. to greet youth that enter the facility; to direct youth to structured activities or authorized areas; and, to redirect youth who are not in an authorized area or who are not participating in a structured activity;
b. to be aware of the risks involved with mixing age groups and how to monitor activities involving mixed age groups;
c. to routinely monitor high risk areas even if not specifically designated to do so.

D. Monitoring High Risk Activities

1. Bathrooms
Many incidents of youth-to-youth abuse occur in bathrooms. Programs must establish procedures for monitoring bathroom activities that comply with the following:

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 446 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) a. For “Group Bathroom Breaks”:
 Require Staff to take groups of two or more youth to the bathroom.  An adult Staff member should enter and check the
bathroom before youth are allowed to enter.
 If the bathroom only has one stall, only one youth
should enter the restroom while the others wait outside with Staff.
 If there are multiple stalls, only send in as many youth as there are stalls.
 Minimize youth of different ages using the bathroom at the same time.
 Require Staff to stand outside the bathroom door but
remain within earshot with the door ajar.
b. For single use restrooms:
 Require youth to ask permission to use the bathroom.
 Require all Staff to frequently check bathrooms.
c. To the extent practical, prohibit Staff from using the bathroom at the same time as youth. If this cannot be done due to facility limitations, ensure that bathroom doors remain open while Staff use a stall.

If presence in a stall with a youth is required (e.g., to assist a youth with a disability), Staff must keep the door to the stall open with another Staff in sight.

2. Locker Rooms
Programs must establish locker room procedures that comply with the following:
a. Staff must stand within earshot of the locker room when in use by youth.
b. Staff must intermittently and briefly check inside the locker room so youth know the locker room is monitored.
c. Discourage the use of locker rooms by youth of different ages at the same time; if youth of different ages must use the locker room at the same time, increase the frequency of checks inside the locker room.
d. Prohibit the use of locker room horseplay such as towel snapping. e. When possible, arrange lockers to minimize unnecessary privacy. f. When possible, require Staff and youth to use the locker room at different times.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 447 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.)

3. Showers
Programs must establish procedures for showers that comply with the following:
a. Staff and youth must shower at different times. Shower schedules should be created to permit supervision of youth while Staff shower.
b. While youth shower, at least one Staff should stand in the bathroom doorway and within earshot of the youth.
c. Ensure that only one youth is in each shower. Where possible, programs should use shower curtains that do not go all the way to the floor, so that Staff can easily see how many youth are in each shower stall.

4. Transition Times and Free Times
Transition times and free times pose a high risk for incidents because during these times, Staff may not be assigned a particular group of youth to supervise. To decrease the risk of incidents, programs must establish procedures for transition times and free times that comply with the following:
a. Require youth to remain in line-of-site of Staff at all times. b. Specify Staff-to-youth ratio for these times.
c. Define authorized areas for use during these times.
d. Ensure that Staff are assigned specific zones within the authorized areas to supervise.
e. Ensure that bathroom procedures continue to be followed during these times.
f. Require supervisors to conduct periodic check-ins and sweeps of the entire activity area, including both authorized and nonauthorized areas.

5. Playground Activities
Programs must establish procedures for playground activities that comply with the following:
a. Require youth to remain in line-of-site of Staff at all times. b. Specify Staff-to-youth ratios for these activities.
c. Define specific narrow boundaries around the playground area to define the authorized area for use.
d. Provide Staff with specific instructions on how to monitor barriers to supervision (such as storage sheds, playhouses, tunnels, and shrubs).
e. Ensure that Staff are assigned specific zones within the authorized area to supervise.

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 448 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) f. Ensure that bathroom procedures continue to be followed during playground activities.
g. Require supervisors to conduct periodic check-ins and sweeps of the entire playground area, including both authorized and non-authorized areas.

6. Transportation Activities
Programs must establish procedures for transportation activities that comply with the following:
a. Require written parent permission forms and medical
releases from all youth on the trip. Staff must take these permission forms and medical releases with them on the trip. b. Require Staff to have a list of youth on the trip. Require Staff to take roll when boarding the bus/other transport, when leaving the bus/other transport, and periodically throughout the trip.
c. Specify Staff-to-youth ratios. When possible, do not count the driver in the supervision ratio.
d. Require Staff to sit separately and in seats that provide sight lines throughout the bus/other transport and permit
maximum supervision.
e. Prohibit drivers from making unauthorized stops.
f. Require Staff to document the beginning and ending time of the trip and the mileage, names of youth being transported, and destination.
g. Require written documentation of any unusual occurrences during transportation.

When public transportation is used, in addition to the procedures listed above, procedures should comply with the following:
a. Require youth to remain in one area of the bus/other public transport, if possible.
b. Require Staff assigned to a group to remain with that group on the bus/other public transport in a position where all youth in the group can be observed.
c. Require Staff to take a head count or call roll immediately after entering and leaving the bus/other public transport. d. Staff should never transport youth in non-organization vehicles except in an emergency situation. If such transport occurs: (a) the youth must be transported directly to the DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 449 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) emergency destination without any unauthorized stops; (b) Staff must immediately notify administrators in writing, identifying the youth transported, the beginning and ending times of transport, the mileage, the emergency that
necessitated the transport, and any unusual events that occurred during the transport.

7. Off-Site Activities
Programs must establish procedures for off-site activities that comply with the following:
a. Staff must obtain written supervisor approval for all off-site activities.
b. Staff must obtain written parental approval for all off-site activities.
c. Staff-to-youth ratios must be appropriate to off-site activities (these may vary depending on the particular off-site activity). d. Staff and youth must be easily identifiable to each other while engaged in the off-site activity.
e. Include specific bathroom and locker room procedures as applicable to the off-site activity.
f. Require strict compliance with transportation activity requirements above while traveling to and from the off-site activity and while engaged in the off-site activity.
g. A supervisor must observe the off-site activities at scheduled times and random intervals.
h. Require adoption of additional procedures as appropriate to a particular location and type of activity (for example, Amusement parks, Water Parks, Arcades), and ensure that Staff are advised of any additional procedures. Such
procedures may include, but are not limited to, assigned groups, scheduled itineraries, continuous roll calls or head counts, and group bathroom breaks.

8. Overnight Activities
Overnight stays present unique risks to youth and Staff because they often involve changing clothes, groups of both genders and different ages in a more intimate atmosphere than usual, more unstructured activities, and increased supervision demands for Staff.

Programs must establish procedures for overnight activities that comply with the following Supervision Guidelines:

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Packet Pg. 450 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) a. All overnight activities must be documented and approved in writing by the program manager, program administrator, or division manager.
b. The program manager, program administrator, or division manager must regularly and randomly observe overnight
activities on a scheduled and periodic basis.
c. The program manager or program administrator must
appoint a “lead” Staff to supervise the overnight.
d. The program manager or program administrator and lead Staff must determine the appropriate Staff-to-youth ratios before the overnight activity and schedule Staff accordingly. e. The lead Staff must conduct a pre-trip meeting with all Staff assigned to the trip to discuss and review the unique risks of overnight trips, unique elements of the specific overnight trip, and specific policies and procedures that govern overnight trips.
f. Provide parents with written information about the overnight activity and the name and contact information for the lead Staff. Require all parents to sign a permission slip for their children to attend the overnight. Lead Staff should consider conducting a pre-trip meeting with parents as well.

Overnights at the Program Facility:
a. Physical boundaries within the program facility, including authorized and unauthorized areas, must be clearly defined and explained to the youth.
b. At least two Staff must be present throughout the overnight stay. Assign each Staff to a specific group of youth to supervise. Each Staff must maintain a roll sheet that lists all of the youth in his or her group and must conduct head
counts and roll checks routinely throughout the evening. c. Assign Staff to high risk areas within the program facility, such as the bathrooms, entrances and exits, and hallways. If it is not possible to assign specific Staff to these areas, assign specific Staff to conduct periodic facility “walk-throughs” that include these areas.
d. With regard to sleeping arrangements, separate male and DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Packet Pg. 451 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) female youth into separate rooms and post Staff at the
entrances and exits to these rooms. If this is not feasible, separate male and female youth by as much space as possible. e. Require Staff to perform periodic random room checks.

When performing room checks, Staff should always go in
pairs.
f. All Staff are to be on duty at night until an hour after lights out and all youth are quiet.

Overnights Away from the Facility:
a. Overnight stays at private homes are prohibited unless approved in advance in writing by the program manager and program administrator.
b. Physical boundaries at the off-site location, including authorized and unauthorized areas, must be clearly defined and explained to the youth.
c. At least two Staff must be present throughout the overnight stay. Assign each Staff to a specific group of youth to supervise. Each Staff must maintain a roll sheet that lists all of the youth in his or her group and must conduct head
counts and roll checks routinely throughout the evening. d. Assign Staff to high risk areas within the off-site location, such as the bathrooms, entrances and exits, and hallways. If it is not possible to assign specific Staff to these areas, assign specific Staff to conduct periodic facility “walk-throughs” that include these areas.
e. With regard to sleeping arrangements, separate male and female youth into separate rooms and post Staff at the
entrances and exits to these rooms. If this is not feasible, separate male and female youth by as much space as possible. o If in a cabin type setting, Staff should be placed in bunks to maximize supervision around the cabin,
provide sight lines to all exits, and decrease the
chances of youth sneaking out.
o In hotels/motels, assign youth to rooms based on sex
and age. Staff should have their own rooms. If Staff
must share rooms with youth, Staff must have their
own beds and never change in front of youth.

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Packet Pg. 452 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) f. Require Staff to perform periodic random room checks.

When performing room checks, Staff should always go in
pairs.
g. All Staff are to be on duty at night until an hour after lights out and all youth/rooms are quiet.

9. Teen Leadership Program/Counselors in Training Program Staff must understand that older youth who participate in teen leadership programs are still youth and not Staff. Even though they are often given more responsibility, teens in the leadership programs must be provided with guidelines regarding appropriate behavior, and then supervised accordingly.

Programs must establish procedures for teen leadership programs that comply with the following:
a. Create a screening process for teen leaders that includes  A standard application
 An interview
 References (from teachers, counselors, family friends, etc.) b. Train teen leaders in their roles in programs and on program policies about appropriate and inappropriate interactions.

This training should include the following information:
 Appropriate and inappropriate physical and verbal interactions.  The importance of maintaining behavioral boundaries
between teen leaders and younger youth and between
teen leaders and Staff.
 Prohibiting teen leaders from being one-on-one with youth.  Prohibiting teen leaders from escorting youth to the bathrooms.  Prohibiting teen leaders from assisting youth with changing their clothes.
c. Create a system to monitor the teen leaders.
 Designate specific Staff to be in charge of the teen
leadership program and its participants.
 Require teen leaders to wear clothing or lanyards that identify them as leaders-in- training and differentiate them from both Staff and other program youth.
 Require a supervisor to conduct regular periodic checkins with teen leaders and their Staff supervisors.

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Packet Pg. 453 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.)  Require teen leaders to keep a log documenting their
program activities and any problems they encounter. The Staff supervisor should review these logs on a regular
periodic basis.

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Standards—Page 17 of 9
Standards for Responding to Suspected Abuse or Neglect or Suspicious or Inappropriate Conduct The following standards apply to all staff employees, staff volunteers, and contractors (collectively “Staff”) for any City-managed youth program. All Staff are expected to act conscientiously to exemplify the highest ethical standards. Accordingly, all Staff must at all times comply with all of the following standards for responding to suspected abuse or neglect or suspicious or inappropriate conduct.

A. Responding to Suspected Child Abuse or Neglect

1. California’s Mandatory Reporting Requirements for Suspected Abuse or Neglect California law defines mandated reporters to include any “employee of a public or private organization whose duties require direct contact and supervision of children.” California Penal Code 1165.7(a)(8). California law requires such employees to make a report to a county welfare department, here the Department of Children and Family Services (“DCFS”) or a local police department, here the Santa Monica Police Department (“SMPD”), whenever the mandated reporter “within the scope of his or her employment, has knowledge of or observes a child whom the mandated reporter knows or reasonably suspects has been the victim of child abuse or neglect.” California Penal Code 11166(a), 11165.9. The initial report must be made immediately, or as soon as is practicably possible, by telephone, and a written report must be prepared and electronically transmitted to DCFS or SMPD within 36 hours. California Penal Code 11166(a). DCFS and SMPD have obligations to cross-report to each other. California Penal Code 11166(j), (k).

Volunteers of public or private organizations whose duties require direct contact with and supervision of children generally are not mandated reporters, but are “encouraged to obtain training in the identification and reporting of child abuse and neglect and are further encouraged to report known or suspected instances of child abuse or neglect” just as employees are required to do by law. California Penal Code 11165.7(b).

As a matter of policy, the City will provide all Staff with training regarding the mandated reporting duties imposed by California law, and will expect all Staff to make reports of suspected child abuse or neglect in accordance with the requirements imposed by California law on mandated reporters.

For purposes of mandatory reporting requirements, California Penal Code 11165.6 defines “child abuse or neglect” to include “physical injury or death inflicted by other than accidental means upon a child by another person, sexual abuse as defined in Section 111165.1, neglect as defined in Section 111165.2, the willful harming or injuring of a child or the endangering of the person or health of a child, as defined in Section 11165.3, and unlawful corporal punishment or injury as defined in Section 11165.4.”
Section 11165.1 defines sexual abuse as including, but not limited to, all of the following:
penetration, however slight, of the vagina or anal opening of one person by the penis of another person; sexual contact between the genitals or anal opening of one person and the mouth or tongue of another person; intrusion by one person into the genitals or anal opening of another person, including the use of an object for this purpose (with an exception for acts performed for a valid medical purpose); 0intentional touching of the genitals or intimate parts, including the breasts, genital area, groin, inner thighs, and buttocks, or the clothing covering them, of a child, or of the perpetrator by a child, for purposes of sexual arousal or gratification; intentional masturbation of DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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the perpetrator’s genitals in the presence of a child; depicting a child in, or accessing through any electronic or digital media, any image in which a child is engaged in an act of obscene sexual conduct; sexual trafficking of a child; and the provision of food, shelter, or payment to a child in exchange for the performance of any sexual act described above.

Section 111165.2 defines neglect to mean “the negligent treatment or the maltreatment of a child by a person responsible for the child’s welfare under circumstances indicating harm or threatened harm to the child’s health or welfare” including “both acts and omissions on the part of the responsible person.” It includes both the intentional and negligent failure by a person having care or custody of a child to “provide adequate food, clothing, shelter, medical care, or supervision,” whether or not any physical injury to the child has occurred.

Section 11165.3 defines the willful harming or injuring of a child or the endangering of the person or health of a child to mean “a situation in which any person willfully causes or permits any child to suffer, or inflicts thereon, unjustifiable physical pain or mental suffering, or having the care or custody of any child, willfully causes or permits the person or health of the child to be placed in a situation in which his or her health is endangered.” Willful harming can occur without actual physical injury.

Section 11165.4 defines unlawful corporal punishment or injury to mean “a situation where any person willfully inflicts upon any child any cruel or inhuman corporal punishment or injury resulting in a traumatic condition.”
If Staff have a question whether conduct observed or alleged rises to the level of child abuse or neglect as defined by these statutes, they should report the conduct to and consult with a supervisor, program manager, program administrator, or division manager. If after this consultation Staff still have a question whether conduct observed or alleged rises to the level of child abuse or neglect as defined by these statutes, Staff should report the conduct to DCFS for further guidance. Supervisors are prohibited by law from impeding Staff from reporting to DCFS. California Penal Code 11166(i). Supervisors also may not direct Staff to allow the supervisor to report to DCFS instead of Staff. Id.

2. Staff Response to Suspected Abuse or Neglect:

As required by mandated reporting laws and City policy, all Staff must immediately (or as soon as practically possible) report any suspected abuse or neglect of a youth—whether on or off organization property or whether perpetrated by Staff or others—to DCFS or SMPD. If the situation is urgent or there is an immediate safety threat, Staff should call SMPD. A person who mistakenly reports suspected abuse or neglect is immune from civil or criminal liability unless it can be proven that the reporter knew the report was false or that the report was made with reckless disregard for its truth or falsity. California Penal Code 11172.

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For Los Angeles County, a report to DCFS may be made by phone at 800-540-4000; the required follow- up written report to DCFS should be made online using the Suspected Child Abuse Report (SCAR) Form (Cal DOJ Form BCIA 8572) at https://mandreptla.org/cars.web/. A sample of the form is attached to these Standards as Attachment 1. Staff may wish to complete the form before making the required phone report so that all information is available during the call.

In addition to reporting to DCFS or SMPD, Staff are required to report any suspected or known abuse or neglect of youth, whether perpetrated by Staff or others, directly to a program supervisor so that immediate and proper steps may be taken to ensure the safety of alleged victims and others who may be at risk. Reports of suspected or known abuse or neglect may be made confidentially to the following:
a. Immediate supervisor
b. Program Manager and/or Program Administrator
c. Division Manager
Additional Guidelines for Staff Response to Suspected Abuse or Neglect  If you witness abuse or neglect, interrupt the behavior immediately.  If abuse or neglect is disclosed to you, assure the individual disclosing that he or she was correct to tell you.  Protect the alleged victim from intimidation, retribution, or further abuse.  Immediately, or as soon as practicably possible, report the allegation or incident to DCFS or SMPD by phone and to your program supervisor. Be sure to get a case number and the name and contact information of the DCFS or SMPD representative with whom you speak.  Be sure to document the incident, disclosure, or any circumstances causing your suspicion of abuse or neglect. State only the facts.  It is not your job to investigate the incident but it IS your job to report the incident to your supervisor, program manager, program administrator, or division manager in a timely manner.  Check back to make sure appropriate steps were taken. If not, report again to your supervisor, program manager, program administrator, or division manager.

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3. Supervisor and Department Response to Suspected Abuse or Neglect:

If a supervisor, program manager, program administrator, or division manager receives a report of abuse or neglect, they must do the following:

Guidelines for Supervisor and Department Response to Suspected Abuse or Neglect  First, determine if the youth is still in danger and if so, take immediate steps to prevent any further harm.  Report to the next level of management and determine the appropriate level of management (supervisor, program manager, program administrator, or division manager) to respond to the report.  Gather as much information about the allegation as you can. For example, who made the report, who was allegedly abused, who was the alleged abuser, what was the nature of the alleged abuse, where and when did the alleged abuse occur, etc.  Accurately record everything you learn in as much detail as you can. Remember your notes may be read by others. Stick to the facts.  Make sure that a report was made to DCFS or SMPD, and, if not, contact DCFS or SMPD, which are the agencies to which mandatory reports must be directed. Make sure you get a case number and the name and contact information of the SMPD Officer with whom you speak.  If the alleged abuse or neglect involves Staff, review the file of the Staff who has been reported to determine if similar complaints were reported.  Work with your program administrator, division manager, or department leadership and the City’s Human Resources Department to determine what action with respect to the accused Staff should be taken while the investigation is completed.  Advise the person who reported the behavior that the report is being taken seriously.  Ensure that department leadership is advised of the allegation or incident and the steps taken in response.  Department leadership shall ensure that a summary of the report and the actions taken in response to the report is provided to the Child Protection Officer for review by the Child Protection Officer and the Child Protection Committee. A form for this purpose is attached to these standards as Attachment 2.

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4. City Response (Child Protection Officer and Child Protection Committee):

Guidelines for Organizational Response  Review the need for increased supervision.  Review the need for revised policies or procedures.  Review the need for additional training.  Review the need for discipline up to and including termination in accordance with the City’s progressive disciplinary process.  Advise the Department that reported the issue of any additional actions that should be taken.

B. Responding to Suspicious or Inappropriate Conduct
Because the City is dedicated to maintaining zero tolerance for abuse, it is imperative that all Staff actively participate in the protection of youth. If Staff observe any suspicious or inappropriate conduct or violations of standards on the part of other Staff, it is their personal responsibility to immediately report their observations.

Examples of Suspicious or Inappropriate Conduct Between Staff and Youth  Violation of the abuse prevention standards described in the City’s Standards for City-Managed Youth Programs  Seeking private time or one-on-one time with youth  Buying gifts for individual youth  Making suggestive comments to youth  Picking favorites among youth  Communicating privately with youth on social media or through email or phone (whether using Staff’s personal email or phone or a City-issued email or phone.) All reports of suspicious or inappropriate conduct with youth will be taken seriously. City procedures will be carefully followed to ensure that the rights of all those involved are protected.

The reporting procedures below apply whether or not the conduct observed rises to the level of child abuse or neglect, as defined by California’s mandatory reporting statutes. What constitutes child abuse or neglect for purposes of triggering mandatory reporting requirements under California’s mandatory reporting statutes is discussed in Section A above, which lays out the additional mandatory reporting requirements (including an immediate report to DCFS or SMPD) when Staff become aware of conduct they suspect rises to the level of child abuse or neglect (as defined by statute).

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Reporting conduct that does not rise to the level of suspected child abuse or neglect:

1. Staff Response:

If Staff observes suspicious or inappropriate conduct or violations of standards by another Staff or by non- Staff, or receives a report of such behavior from either Staff or non-Staff, Staff must do the following:

Guidelines for Staff Response to Suspicious or Inappropriate Conduct or Standards Violations  Interrupt the behavior immediately.  Report the behavior to their supervisor, the program manager, program administrator, division manager, or department leadership.  If the report is about a supervisor, make the report to the program manager or higher level of management. If the report is about a program manager, make the report to the program administrator or higher level of management. In general, the report should be made a level of management above that of the individual to whom the report pertains.  Document the report but do not conduct an investigation.  Keep reporting until the appropriate action is taken.

2. Supervisor and Department Response:

If a supervisor, program manager, program administrator, or division manager receives a report of suspicious or inappropriate behavior or violations of standards, they must do the following:

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Guidelines for Supervisor and Department Response to Suspicious or Inappropriate Conduct or Standards Violations  Report to the next level of management and determine the appropriate level of management (supervisor, program manager, program administrator, or division manager) to respond to the concern.  Determine the appropriate response based on the report.  If the report relates to Staff, review the file of the Staff who has been reported to determine if similar complaints were reported.  Document the report on the appropriate form.  If at any point in gathering information about a report of suspicious or inappropriate behavior, a concern arises about possible child abuse or neglect, contact DCFS or SMPD and file a report.  If appropriate, notify parents and/or guardians.  Advise the person who reported the behavior that the report is being taken seriously.  Ensure that Department leadership is advised of the report and the actions taken in response to the report.  Department leadership shall ensure that a summary of the report and the actions taken in response to the report is provided to the Child Protection Officer for review by the Child Protection Officer and the Child Protection Committee. A form for this purpose is attached to these standards as Attachment 2.

Based on the information gathered, the following may be required:
a. Increase monitoring or supervision of Staff or the program. b. If standards violations with youth by Staff are confirmed, Staff must be subject to disciplinary action up to and including termination and prosecution. Disciplinary action will follow the City’s progressive disciplinary process in consultation with Human Resources.
c. If more information is needed, interview and/or survey other Staff, youth, and parents.

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3. City Response (Child Protection Officer and Committee):

Guidelines for Organizational Response  Review the need for increased supervision.  Review the need for revised policies or procedures.  Review the need for additional training.  Review the need for discipline up to and including termination in accordance with the City’s progressive disciplinary process.  Advise the Department that reported the issue of any additional actions that should be taken.

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C. Responding to Youth-to-Youth Sexual Abuse and Sexual Behavior The thought that one youth may sexually abuse another youth does not occur to many people.

Unfortunately, abuse between peers has increased significantly over the past few years.

1. Youth-to-Youth Interactions:

Most serious incidents of youth-to-youth abuse are preceded by more subtle incidents such as name-calling, taunting, or roughhousing. Interrupting these interactions early and establishing and communicating standards of conduct can keep the program environment safe. Accordingly, the following high-risk youth- to-youth interactions are prohibited during program participation and must be promptly addressed and reported by Staff:

Most serious incidents of youth-to-youth sexual abuse are preceded by inappropriate sexual behaviors. Interrupting these behaviors early and establishing and communicating standards of conduct can keep the program environment safe. Accordingly, the following youth-to-youth sexual behaviors are prohibited during program participation and must be promptly addressed and reported by Staff:

Prohibited Youth-to-Youth Sexual Behaviors  Inappropriate touching  Exposing body parts  Using inappropriate sexual language  Making threats of sexual activity  Engaging in sexual activity  Hazing  Bullying  Derogatory name-calling  Games of Truth or Dare  Singling out one child for different treatment  Ridicule or humiliation Prohibited High-Risk Youth-to-Youth Interactions
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2. Staff Response:

If Staff observe prohibited youth-to-youth high-risk interactions or prohibited youth-toyouth sexual behaviors, they are instructed to follow these guidelines:

Guidelines for Staff Responding to Youth-to-Youth High-Risk Interactions or Sexual Behaviors  If you observe high-risk interactions or sexual behaviors between youth, you should immediately separate them.  Calmly explain that such interactions/behaviors are not permitted and separate the youth.  Notify your supervisor and provide a summary of what you observed and how you responded.  Follow your supervisor's instructions regarding notifying the authorities and informing the parents of the youth involved.  If you believe the conduct rose to the level of suspected sexual abuse, comply with the reporting requirements for suspected abuse set forth in Section A above.

3. Supervisor and Department Response:

If a supervisor, program manager, program administrator, or division manager receives a report of prohibited you-to-youth high-risk interactions or prohibited youth-to-youth sexual behaviors, they should do the following:

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Based on the information gathered, the following may be required:
a. Review the need for additional supervision
b. Review the need for revised policies or procedures
c. Review the need for additional training
d. Alert others in the organization

4. City Response (Child Protection Officer and Child Protection Committee):

After the internal review of the high-risk youth-to-youth interaction or youth-to-youth sexual behavior, the organization will determine what can be done to prevent a reoccurrence, such as:
 Report to the next level of management and determine the appropriate level of management (supervisor, program manager, program administrator, or division manager) to respond to the concern.  Meet with Staff who reported the high-risk interaction or sexual behavior to gather information.  Confirm that the youth involved have been separated or placed under increased supervision.  Review the steps taken by Staff.  Review the incident report to confirm it is accurate and thorough.  Meet with parents of the youth involved.  Determine actions needed to make sure there is no recurrence, including assessing the suitability of the program for the youth involved and determining whether removal from the program is appropriate.  Notify the proper authorities.  Advise the Staff that reported the behavior that the report is being taken seriously.  Ensure that department leadership is advised of the report and the actions taken in response to the report. A form for this purpose is attached to these standards as Attachment 2.  Develop a written action plan in response to the incident.

Guidelines for Supervisor and Department Response to Youth-toYouth High-Risk Interactions or Sexual Behaviors DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

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Guidelines for Organizational Response  Review the need for additional supervision.  Review the need for revised policies or procedures.  Review the need for additional training.  Alert others in the organization.  Advise the department that reported the behavior of any additional actions that should be taken.

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Suspected Child Abuse Report (SCAR) Form
(Cal DOJ Form BCIA 8572)
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Packet Pg. 468 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) DEFINITIONS AND GENERAL INSTRUCTIONS FOR COMPLETION OF FORM BCIA 8572 All Penal Code (PC) references are located in Article 2.5 of the California PC. This article is known as the Child Abuse and Neglect Reporting Act (CANRA). The provisions of CANRA may be viewed at: http://leginfo.legislature.ca.gov/faces/codes.xhtml (specify "Penal Code" and search for sections 11164-11174.3). A mandated reporter must complete and submit form BCIA 8572 even if some of the requested information is not known. (PC section 11167(a).) I. MANDATED CHILD ABUSE REPORTERS
Mandated child abuse reporters include all those individuals and entities listed in PC section 11165.7.

II. TO WHOM REPORTS ARE TO BE MADE ("DESIGNATED
AGENCIES")
Reports of suspected child abuse or neglect shall be made by mandated reporters to any police department or sheriff's department (not including a school district police or security department), the county probation department (if designated by the county to receive mandated reports), or the county welfare department. (PC section 11165.9.)
III. REPORTING RESPONSIBILITIES
Any mandated reporter who has knowledge of or observes a child, in his or her professional capacity or within the scope of his or her employment, whom he or she knows or
reasonably suspects has been the victim of child abuse or neglect shall report such suspected incident of abuse or neglect to a designated agency immediately or as soon as practically possible by telephone and shall prepare and send a written report thereof within 36 hours of receiving the information concerning the incident. (PC section 11166(a).) No mandated reporter who reports a suspected incident of child abuse or neglect shall be held civilly or criminally liable for any report required or authorized by CANRA. Any other person reporting a known or suspected incident of child abuse or neglect shall not incur civil or criminal liability as a result of any report authorized by CANRA unless it can be proven the report was false and the person knew it was false or made the report with reckless disregard of its truth or falsity. (PC section 11172(a).)
IV. INSTRUCTIONS
SECTION A – REPORTING PARTY: Enter the mandated
reporter's name, title, category (from PC section 11165.7), business/agency name and address, daytime telephone
number, and today's date. Check yes/no whether the
mandated reporter witnessed the incident. The signature area is for either the mandated reporter or, if the report is telephoned in by the mandated reporter, the person taking the telephoned report.

IV. INSTRUCTIONS (continued)
SECTION B – REPORT NOTIFICATION: Complete the
name and address of the designated agency notified, the date/time of the phone call, and the name, title, and
telephone number of the official contacted.

SECTION C – VICTIM (One Report per Victim): Enter the
victim's name, birthdate or approximate age, sex, ethnicity, address, telephone number, present location, and, where applicable, enter the school, class (indicate the teacher's name or room number), and grade. List the primary
language spoken in the victim's home. Check the
appropriate yes/no box to indicate whether the victim may have a developmental disability or physical disability and specify any other apparent disability. Check the appropriate yes/no box to indicate whether the victim is in foster care, and check the appropriate box to indicate the type of care if the victim was in out-of-home care. Check the appropriate box to indicate the type of abuse. List the victim's
relationship to the suspect. Check the appropriate yes/no box to indicate whether photos of the injuries were taken.

Check the appropriate box to indicate whether the incident resulted in the victim's death.

SECTION D – INVOLVED PARTIES: Enter the requested
information for Victim's Siblings, Victim's Parents/Guardians, and Suspect. Attach extra sheet(s) if needed (provide the requested information for each individual on the attached sheet(s)).

SECTION E – INCIDENT INFORMATION: If multiple
victims, indicate the number and submit a form for each victim. Enter date/time and place of the incident. Provide a narrative of the incident. Attach extra sheet(s) if needed.

V. DISTRIBUTION
Reporting Party: After completing form BCIA 8572, retain a copy for your records and submit copies to the designated agency.

Designated Agency: Within 36 hours of receipt of form
BCIA 8572, the initial designated agency will send a copy of the completed form to the district attorney and any additional designated agencies in compliance with PC sections
11166(j) and 11166(k).

STATE OF CALIFORNIA
BCIA 8572
(Rev. 04/2017)

DEPARTMENT OF JUSTICE

SUSPECTED CHILD ABUSE REPORT
(Pursuant to Penal Code section
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 469 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) 1 Alaskan Native
2 American Indian
3 Asian Indian
4 Black
5 Cambodian
6 Caribbean
7 Central American
8 Chinese
9 Ethiopian
10 Filipino
11 Guamanian
12 Hawaiian
13 Hispanic
14 Hmong
15 Japanese

ETHNICITY CODES
16 Korean
17 Laotian
18 Mexican
19 Other Asian
21 Other Pacific Islander
22 Polynesian
23 Samoan
24 South American
25 Vietnamese
26 White
27 White-Armenian
28 White-Central American
29 White-European
30 White-Middle Eastern
31 White-Romanian
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 470 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Attachment 2:

Response to Report of Inappropriate or
Suspicious Conduct or Standards Violation
DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 471 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) ADMINISTRATIVE INSTRUCTION III-5-12: ABUSE PREVENTION
i. a) Report Regarding Suspicious or Inappropriate Conduct or Standards Violation1 City-Managed Youth Program: Location of
Reported Conduct:

Date and Time of
Reported
Conduct:

Reporting Party: Title:

Party Receiving Report: Title: Date and Time
of Report:

Supervisor/Manager Assigned to Respond
to Report:

Title:

Description of Conduct Reported (include names of individuals engaging in conduct reported, names of youth affected, and steps taken at time to stop reported conduct) (attach additional pages as needed):

Actions taken in Response to Conduct Reported (include any notification to parents, referral for investigation, counseling, or other corrective action) (attach additional pages as needed):

Supervisor/Manager Signature Date
1 This form should be used only to report suspicious or inappropriate conduct or a standards violation that does not rise to the level of suspected child abuse or neglect. Suspected child abuse or neglect must be immediately reported by phone to the Department of Children and Family Services or the Santa Monica Police Department, followed within 36 hours by a written report California Department of Justice form BCIA 8572, Suspected Child Abuse Repo DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 472 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) Prevention Standards—

DocuSign Envelope ID: E72DD74B-A3FB-474F-BEB0-5C797A0EA52D

5.F.c
Packet Pg. 473 Attachment: Complete_with_DocuSign_02_Bounce_Inc_Instrup (1) (6285 : Contract Amendment (#3896) with Bounce, Inc.) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.G
1 of 5
To: Mayor and City Council
From: Oles Gordeev, Acting Director of Human Resources, Human Resources Department
Subject: Approval of Agreements for As-needed Executive Search Services / Placement 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) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;

2. Award RFP #368 to Teri Black and Company, LLC; Mosaic Public Partners; Raftelis Financial Consultants, Inc.; Baker Tilly US, LLP; WBCP, Inc.; and Ralph Andersen & Associates for as-needed Executive Search Services / Placement Services for the Human Resources Department;

3. Authorize the City Manager to negotiate and execute six agreements with the following firms: Teri Black and Company, LLC; Mosaic Public Partners; Raftelis Financial Consultants, Inc.; Baker Tilly US, LLP; WBCP, Inc.; and Ralph Andersen & Associates for as-needed Executive Search Services / Placement Services, for a total aggregate amount for the six agreements, not to exceed $250,000 over a five-year period.

Summary
The Human Resources Department (HR) is requesting Council approval for the City to execute six agreements for as-needed Executive Search Services / Placement Services which are vital to fill vacancies within various City departments. Each vendor brings unique expertise and experience to the table, ensuring impartial and effective recruitment processes. The use of these as-needed services varies on an annual basis; therefore, HR seeks approval to enter into agreements with six firms to ensure appropriate resources are in place to conduct such work as the need arises. The

5.G
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2 of 5
projected aggregate not to exceed amount of the services would not exceed $250,000 over a five-year period. The services would be paid for with existing budget in Human Resources Department and by other departments depending on the need.

Discussion
To be prepared to fill vacant positions as they arise, the Human Resources Department proposes engaging six different vendors for as-needed Executive Search Services / Placement Services. This approach ensures access to a diverse pool of candidates and specialized expertise tailored to the unique needs of each department.

Executive Search Services / Placement Services are crucial for maintaining effective leadership within the City's departments. Each vendor has been selected based on their qualifications, approach, experience, cost-effectiveness, and diversity outreach efforts.

By engaging multiple vendors, the City can expedite candidate selection while ensuring access to a diverse and qualified applicant pool. Moreover, access to multiple executive search firms allows the City to tap into industry-specific networks, conduct thorough candidate evaluations while ensuring compliance with legal requirements. These firms play a crucial role in developing recruitment profiles, identifying qualified candidates, and facilitating the selection process, including the screening of applications, and administering panel interviews. By leveraging the expertise of these vendors, the City can address management vacancies promptly and strategically, ultimately serving the best interests of the community.

The total contract amount is based on anticipated executive recruitment searches for the current and upcoming fiscal years. Expenditures will be charged to various departmental budgets and accounts as services are rendered. Before engaging with vendors, HR will partner with requesting departments for approval to pay for these services from their existing departmental budgets.

Staff prepared and posted an RFP that detailed the City’s requirements for the associated work. The City received 22 proposals from which six firms were selected in consideration of their ability to deliver the level of services that may be required of the City.

Vendor Selection

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3 of 5
Bidder Recommendation
Best Qualified
Person/Firm
Teri Black and Company, LLC; Mosaic Public Partners; Raftelis Financial Consultants, Inc.; Baker Tilly US, LLP; WBCP, Inc.; Ralph Andersen & Associates
Evaluation Criteria Cost, Qualifications, Approach, Experience, References, Diversity Outreach Efforts, Methods and Success Metrics
Municipal Code SMMC 2.24.190
RFPs Received
Affion Public Avery Associates Baker Tilly US, LLP BuzzClan LLC Code 3 Technology COGENT Infotech
Corporation
Fisher Science
Education
Judy Loveless-Morris
KL2 Connects LLC Mosaic Public Partners Outland Recruiting Partners In Diversity, Inc.

Perrett Laver Raftelis Financial
Consultants, Inc.

Ralph Andersen &
Associates
Rome Truck Parts and
Repair, Inc.

Stanco Signage
Systems, inc.

Teri Black and
Company, LLC
The Byers Group Tripepi Smith and
Associates, Inc
Tutti Quanti, LLC WBCP, Inc.

RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
08/04/2023 City’s Online
Bidding Site
Santa Monica Daily Press 22 08/29/2023
Justification to Award

5.G
Packet Pg. 476
4 of 5
Staff evaluated proposals from the 22 firms based on their cost-effectiveness, qualifications, approach, experience, diversity outreach efforts, methods, and success metrics. These firms were carefully evaluated to ensure competitive pricing, exceptional qualifications in executive recruitment, appropriate approaches to candidate sourcing and review, extensive experience in managing executive recruitments, and proactive efforts in diversity outreach. Based on the criteria in SMMC 2.24.190, staff recommends Teri Black and Company, LLC; Mosaic Public Partners; Raftelis Financial Consultants, Inc.; Baker Tilly US, LLP; WBCP, Inc.; and Ralph Andersen & Associates as the best qualified firms to provide as-needed Executive Search Services / Placement Services. This strategic decision to have six vendors to work with enables the City to access a diverse pool of talent, optimize recruitment outcomes, and uphold the highest standards of professionalism and integrity in executive recruitment processes.

Environmental Impact
The agreement for as-needed classification and compensation services is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (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 agreement would provide administrative services to the City and would not result in physical effects. Therefore, it can be seen with certainty that the contract 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 enter into six agreements with Teri Black and Company, LLC; Mosaic Public Partners; Raftelis Financial Consultants, Inc.; Baker Tilly US, LLP; WBCP, Inc.; and Ralph Andersen & Associates for as-needed Executive Search Services / Placement Services in an aggregate amount not to exceed $250,000. The firms understand that the agreements are for as-needed services and not committed expenses, designed to allow the City to be responsive to operational needs. The costs of the services will be covered using existing budgeted funds within the requesting departments’ budgets and the Human Resources budget.

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Prepared By: Sasha Sargent, Executive Administrative Assistant Approved Forwarded to Council
Attachments:

A. Oaks - Teri Black Signed 8-28-23
B. OAKS - Mosaic Signed 8-25-23
C. OAKS - Raftelis Signed 12-12-23
D. OAKS - Baker Tilly Signed 8-23-23
E. OAKS - WBCP Signed 8-28-23
F. OAKS - Ralph Andersen Signed 8-28-23
G. Baker Tilly- Levine Act Disclosure Form 2024
H. Mosaic- Levine Act Disclosure Form 2024
I. Raftelis- Levine Act Disclosure Form 2024
J. Ralph Andersen- Levine Act Disclosure Form 2024
K. WBCP- Levine Act Disclosure Form 2024
L. Teri Black- Levine Act Disclosure 2024

5.G
Packet Pg. 478

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. 2.

3. 4.

5. 6.

7. Personal services contracts in excess of $25,000 over any 12-month period; Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
Purchase, sale or lease of real property to or from the City in excess of $25,000 over a
12- month period;
Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
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; Tax "abatement, exception, or benefit" of a value in excess of $5,000 in any 12- month period; or
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:

Teri Black & Company, LLC
Name(s) of trustees, directors, partners, and officers:

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

Joseph E. Brann/CEO
prepared by: Tracey Carlson
Signature:

Email: [email protected]
FOR CITY USE ONLY:

Bid/PO/Contract #
Title: Director of Client & Candidate Care
Date: 8-28-23
424-296-3111 Phone:

Permit #

5.G.a
Packet Pg. 479 Attachment: Oaks - Teri Black Signed 8-28-23 (6300 : As-needed Executive Search Services / Placement Services) Please attach additional pages if more space is required.

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

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

5.G.b
Packet Pg. 480 Attachment: OAKS - Mosaic Signed 8-25-23 (6300 : As-needed Executive Search Services / Placement Services) Please attach additional pages if more space is required.

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: ____________________

5.G.b
Packet Pg. 481 Attachment: OAKS - Mosaic Signed 8-25-23 (6300 : As-needed Executive Search Services / Placement Services)

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.G.c
Packet Pg. 482 Attachment: OAKS - Raftelis Signed 12-12-23 (6300 : As-needed Executive Search Services / Placement Services)

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 #

5.G.c
Packet Pg. 483 Attachment: OAKS - Raftelis Signed 12-12-23 (6300 : As-needed Executive Search Services / Placement Services)

CITY OF SANTA MONICA

OAKS INITIATIVE DISCLOSURE FORM
Name(s) of trustees, directors, partners, and officers:

Stacey Aukamp, Tom Beckley, Thierry Boveri, Peiffer Brandt, Mike Burton, Elaine Conti, Rocky Craley, Joe Crea, Jon Davis, Melissa Elliott, Michelle Ferguson, Steve Gagnon, Tony Hairston, Murray Hamilton, Bart Kreps, Melissa Levin, Henrietta Locklear, John Mastracchio, Chris McPhee, Julia Novak, Rob Ori, Sudhir Pardiwala, Keith Readling, Harold Smith, Doug Spiers, William Stannard, Darin Thomas, Henry Thomas, and Catherine Tuck Parrish

5.G.c
Packet Pg. 484 Attachment: OAKS - Raftelis Signed 12-12-23 (6300 : As-needed Executive Search Services / Placement Services)

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 # ___________________________ _____________________
Anne Lewis Managing Director
August 28, 2023
[email protected] +1 (703) 923 8214
Baker Tilly US, LLP
Jeffrey Ferro, Partner, Interim CEO
None

5.G.d
Packet Pg. 485 Attachment: OAKS - Baker Tilly Signed 8-23-23 (6300 : As-needed Executive Search Services / Placement Services)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

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

5.G.e
Packet Pg. 486 Attachment: OAKS - WBCP Signed 8-28-23 (6300 : As-needed Executive Search Services / Placement Services)

CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

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

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

Bid/PO/Contract # ____________________________ Permit # ___________________________

5.G.e
Packet Pg. 487 Attachment: OAKS - WBCP Signed 8-28-23 (6300 : As-needed Executive Search Services / Placement Services)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

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

5.G.f
Packet Pg. 488 Attachment: OAKS - Ralph Andersen Signed 8-28-23 (6300 : As-needed Executive Search Services / Placement Services)

CITY OF SANTA MONICA

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

Public benefits include:

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

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

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

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

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

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

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

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

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

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

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

Bid/PO/Contract # ____________________________ Permit # ___________________________

5.G.f
Packet Pg. 489 Attachment: OAKS - Ralph Andersen Signed 8-28-23 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

5.G.g
Packet Pg. 490 Attachment: Baker Tilly- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

5.G.g
Packet Pg. 491 Attachment: Baker Tilly- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES __XXXXX__ NO
Name of Councilmember or City Officer: _________________________________

5.G.h
Packet Pg. 492 Attachment: Mosaic- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

5.G.h
Packet Pg. 493 Attachment: Mosaic- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________ ✔

5.G.i
Packet Pg. 494 Attachment: Raftelis- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

Catherine Tuck Parrish 4/1/2024 Catherine Tuck Parrish Vice President Raftelis

5.G.i
Packet Pg. 495 Attachment: Raftelis- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________ ✔

5.G.j
Packet Pg. 496 Attachment: Ralph Andersen- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

Not Applicable
April 1, 2024
Heather Renschler President/CEO
Ralph Andersen & Associates
None.

5.G.j
Packet Pg. 497 Attachment: Ralph Andersen- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/ /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

5.G.k
Packet Pg. 498 Attachment: WBCP- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

5.G.k
Packet Pg. 499 Attachment: WBCP- Levine Act Disclosure Form 2024 (6300 : As-needed Executive Search Services / Placement Services) City of
Santa
Monica

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California's SB1439 extended requirements under Govemment Code Section 84308, also known as the "Levine Act", to prohibit City "Officers" from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: "Office?' means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term "Officer" is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlementfor use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net] /boards/.

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? YES NO
Name of Councilmember or City Officer:

City of Santa Monica Levine Act Disclosure Form

5.G.l
Packet Pg. 500 Attachment: Teri Black- Levine Act Disclosure 2024 (6300 : As-needed Executive Search Services / Placement Services) City of
Santa
Monica
Name of Contributor:

Date(s) of Contribution(s):

Amount(s)
Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTI UND PENALTY OF PERJURY UNDER THE LAWS OF THE

STATE FCA ORN
Signed:

Print Name: Teri Black

THE FOREGOING IS TRUE AND CORRECT
Date: 4/2/2024
Title: President
Company: en Black Company,
Additional Disclosures:

Please note this form is a
public record and subject to a California Public Records Act request.

City of Santa Monica Levine Act Disclosure Form

5.G.l
Packet Pg. 501 Attachment: Teri Black- Levine Act Disclosure 2024 (6300 : As-needed Executive Search Services / Placement Services) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.H
1 of 2
To: Mayor and City Council
From: Oles Gordeev, Acting Director of Human Resources, Human Resources Department
Subject: Adoption of Salary Resolution for the Establishment of Job Classifications Recommended Action
Staff recommends that the City Council

1. Adopt a finding of no possibility of significant effect pursuant to Section 15601(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

2. Adopt the attached Salary Resolution to establish a new classification of Library Program Specialist-Literary Services and restore the recently abolished classification of Public Information Coordinator.

Summary
The resolution presents the following classifications that need to be established: Library Program Specialist - Literacy Services and Public Information Coordinator.

Discussion
On February 27, 2024, Council approved a resolution to abolish obsolete classifications which, due to clerical error, included Public Information Coordinator. Therefore, Public Information Coordinator is being presented for reestablishment retroactive to the date it was abolished. Also included in the resolution is the establishment of a new classification for the Library Department for which a position is already included in the budget. Upon approval of this action, the City’s salary schedule, which reflects the City’s list of active classifications, will be updated to reflect this action.

5.H
Packet Pg. 502
2 of 2
Past Council Actions
Meeting Date Description
02/27/2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA ABOLISHING POSITIONS FROM THE

CLASSIFICATION PLAN
Environmental Review
The revisions to the classifications are exempt from CEQA pursuant to Section 15061(b)(3) 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 revisions to the classifications are administrative in nature. 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
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.

Prepared By: Michael Arnoldus, Human Resources Manager
Approved Forwarded to Council
Attachments:

A. Attachment A - Salary Resolution April 9 2024
B. Attachment B - Abolishment Resolution February 27 2024

5.H
Packet Pg. 503

ATTACHMENT A
City Council Meeting: April 9, 2024 Santa Monica, California RESOLUTION NUMBER ________(CCS)
(City Council Series)

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

ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR NEW OR EXISTING CLASSIFICATIONS OF LIBRARY PROGRAM SPECIALISTLITERACY SERVICES AND PUBLIC INFORMATION COORDINATOR.

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

SECTION 1. The following salary levels are hereby established, retroactive to March 10, 2024, for the indicated classifications:

Classification Salary Reason
Library Program Specialist –
Literary Services
$81,756/annual; Step 5 New classification
Public Information Coordinator $133,776/annual; Step 5 Reestablishment of classification
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:

Douglas T. Sloan
City Attorney

5.H.a
Packet Pg. 504 Attachment: Attachment A - Salary Resolution April 9 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment of Job

ATTACHMENT D
1 City Council Meeting: February 27, 2024 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA ABOLISHING POSITIONS FROM THE CLASSIFICATION PLAN WHEREAS, in accordance with the City of Santa Monica City Charter section 1109, whenever it becomes necessary, in the opinion of the City Council, positions may be abolished; and
WHEREAS, the abolishment of positions allows for the proper preparation and maintenance of the classification plan for the City.

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

SECTION 1. The job classifications set forth in Exhibit A of this Resolution are hereby abolished, effective March 10, 2024.

SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

5.H.b
Packet Pg. 505 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment

CLASSIFICATIONS

EXHIBIT A
Accountant - Collections
Accounting Manager
Administrative Aide
Administrative Analyst - Engineering
Administrative Analyst - Homeless Services
Administrative Analyst - Information Systems
Administrative Analyst - Library Administrative Services Administrative Analyst - Library Fiscal Services Coordinator Administrative Assistant - City Manager's Office
Administrative Intern II
Administrative Project Manager
Administrative Staff Assistant - Environmental Programs Airport and Real Estate Director
Airport Gse Mechanic
Airport Guest Service Representative
Airport Line Service Crew Leader
Airport Line Service Supervisor
Airport Line Service Worker
Airport Noise/Operations Specialist
Assistant Chief Information Officer
Assistant Community Broadband Analyst
Assistant Director of Finance
Assistant Fire Marshal - Hazardous Materials
Assistant Police Chief As-Needed
Audio for Video Operator
Bikeshare Coordinator
Billing and Collections Administrator
Broadband Program Administrator
Cable TV Manager
Chief Administrative Officer
Chief Civic Wellbeing Officer
Chief Data Officer
Chief Performance Officer
City Hall Receptionist
City Planning Staff Assistant
City Urban Designer
Civil Engineer - Special Projects As-Needed
Communications Operator - Fire/Lateral Transfer
Communications Operator - Lateral Transfer
Communications and Public Affairs Officer
Community Broadband Analyst

5.H.b
Packet Pg. 506 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment

CLASSIFICATIONS

EXHIBIT A
Community Engagement Coordinator
Community Services Program Supervisor - Community Sports Programs Community Services Program Supervisor - Therapeutic Recreation and Community Sports Programs
Computer Support Specialist
Computer Support Technician I
Computer Support Technician II
Construction Specialist
Council Office Coordinator
CUPA/Environmental Coordinator
Data Officer
Data Science Administrator
Director of Special Projects for Information Services
Emergency Services Manager
Employee Benefits Technician
Environmental Compliance Specialist
Environmental Programs Analyst - Hazardous Materials Management Facilities Maintenance Contracts Administrator
Fbo Manager
Financial Reporting Supervisor
Financial Systems Analyst
Fiscal Staff Assistant I
Fiscal Support Assistant
Fleet Maintenance Administrator
Forensic Artist As-Needed
Graphic Design Assistant
Hearings Coordinator
Human Resources Assistant
Human Resources Specialist
Infrastructure and Cloud Services Administrator
Internal Audit Manager
Internet Systems Analyst
Irrigation Crew Leader
Lead Crime Prevention Coordinator
Lead Systems Analyst
Lead Systems Analyst - ERP
Lead Systems Analyst - Public Safety
Lead Systems Analyst - Water Resources
Lead Systems Analyst - Permitting Systems
Librarian III
Librarian III - Branch Services
Librarian III - Information Management

5.H.b
Packet Pg. 507 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment

CLASSIFICATIONS

EXHIBIT A
Librarian III - Reference Services
Librarian III - Youth Services
Management Fellow
Marketing/Communications Assistant
Neighborhood Preservation Coordinator
Office Manager to the City Manager
Organizational Development and Training Administrator
Organizational Development and Training Coordinator
Permit Specialist
Pier Manager
Pipe Fitter
Plans Examiner I - Electrical
Plans Examiner II - Electrical
Plans Examiner III - Electrical
Police Range Master
Police Safety Dive Instructor As-Needed
Police Services Assistant
Police Services Management Supervisor
Policy Development Officer As-Needed
Principal Administrative Analyst - Fire
Principal Administrative Analyst - Information Systems
Principal Design Planner
Principal Librarian
Principal Planning and Community Development Analyst
Principal Public Works Analyst
Principal Sustainability Analyst
Principal Treasury Analyst
Principal Urban Designer
Procurement Supervisor
Project Manager
Project Manager - Wellbeing Project
Project Portfolio Coordinator
Public Information Coordinator
Public Safety Dispatcher - Lateral Transfer
Public Works Utility Inspector
Purchasing Services Manager
Records Management Assistant
Reprographics Specialist I
Revenue and Collections Manager
Revenue Collections Supervisor
Revenue Operations Assistant I

5.H.b
Packet Pg. 508 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment

CLASSIFICATIONS

EXHIBIT A
Revenue Operations Assistant II
Social Worker I
Software Systems Analyst - ERP
Software Systems Analyst - Permitting Systems
Software Systems Analyst - Water Resources
Software Systems Manager
Special Counsel/Chief of Staff
Special Projects Administrator - Planning and Community Development Special Projects Engineer
Senior Administrative Analyst - Architecture
Senior Administrative Analyst - Child and Family Resources Senior Administrative Analyst - Homeless Services
Senior Administrative Analyst - Human Services/Fiscal
Senior Administrative Analyst - Open Space Management
Senior Administrative Analyst - Parks and Community Facility Planning Senior Advisor to the City Manager On Airport Affairs
Senior Advisor to the City Manager On Homelessness
Senior Deputy City Clerk
Senior Drafting Technician
Senior Human Services Program Analyst
Senior Marketing Manager
Senior Procurement Analyst
Senior Revenue Operations Assistant
Staff Assistant I
Successor Agency Administrator
Support Services Manager
Sustainability Manager
Sustainable Building Advisor
Sustainable Energy Engineer
Sustainable Procurement Advisor
Systems and Network Manager
Systems Administrator/Programmer Analyst
Systems Administrator
Systems Analyst - Permitting System
Systems Analyst - Public Safety
Systems Analyst - Share Point
Systems Analyst - Transit Systems
Technical Staff Assistant
Technology Project Manager
Traffic and Parking Manager
Tree Trimmer

5.H.b
Packet Pg. 509 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment

CLASSIFICATIONS

EXHIBIT A
Urban Designer
Urban Forest Contract Supervisor
Urban Forester Administrator
Veterinarian
Video Camera Operator
Video Engineer
Video Intern
Video Non-Linear Editor
Video On-Line Editor I
Video On-Line Editor II
Video Student Intern
Video Technician I
Video Technician II
Water Construction Crew Leader
Water Resources Crew Leader
Water Resources Program Administrator
Water Supervisor- Construction
Water Supervisor- Meters
Water Systems Equipment Operator
Workers' Compensation Administrator
Workers' Compensation Claims Technician
Youth and Family Services Support Coordinator

5.H.b
Packet Pg. 510 Attachment: Attachment B - Abolishment Resolution February 27 2024 [Revision 1] (6316 : Adoption of Salary Resolution for the Establishment City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 5.I
1 of 3
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Second Amendment to Contract with the County of Los Angeles for Lifeguard Services on Santa Monica State Beach
Recommended Action
Staff recommends that City Council:

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

2. Authorize the City Manager to negotiate and execute a Second Modification to agreement #9045 (CCS) in the amount of $3,962,000 with the County of Los Angeles for lifeguard services for the Community Development Department. This will result in a 16-year amended agreement with a new total amount not to exceed $47,495,594.

Summary
The City contracts with the County of Los Angeles to provide year-round lifeguard services on Santa Monica State Beach. The current fifteen-year agreement will expire on April 21, 2024, and the County agrees to extend the contract by one year while it conducts a Fee for Service study to determine whether future fee adjustments are necessary to perform the required level of service. The current payment formula is comprised of a base payment for County lifeguard personnel, subject to annual CPI increases, plus County’s overhead costs. Staff of both agencies have reviewed the current level of services and agree that the terms of the current agreement sufficiently fulfill public safety needs. Under the proposed Second Amendment, the annual payment formula will remain the same, and the cost for the one-year extension is estimated to be $3,962,000 reflecting a four percent increase over the prior year.

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2 of 3
Discussion
City has contracted with County of Los Angeles since 1974, to provide lifeguard services at Santa Monica State Beach. Services provided under the agreement include lifeguard coverage for the entire beach seven days a week, year-round; 24-hour a day emergency response for regional emergencies; and 24-hour a day paramedic support to the community. Staff assigned to Santa Monica include two captains, 19 ocean lifeguards, and ocean lifeguard specialists. Specialized equipment provided by the County as part of this service includes emergency response vehicles, rescue boat, and helicopter. The County is often the first responder to emergencies on the beach, in the water, and near the Pier.

City Council initially approved a 10-year agreement on March 24, 2009, a First Amendment approved by Council on February 26, 2019 provided a 5-year extension which increased the total term to 15 years. The incorporation of the requested Second Amendment would provide an additional 1-year term and would result in a 16-year amended agreement.

Over the 15-year term, payments under the current contract formula have increased an average of five percent per year. The County’s Fee for Service study will examine if the actual cost incurred by the County to provide lifeguard services is fully reimbursed by the City, or if the base payment amount should be adjusted due to increasing personnel and overhead costs.

After the County conducts its study, staff will return to Council with the results of that effort and a recommendation for continuing lifeguard services.

Past Council Actions
Meeting Date Description
February 26, 2019
(attachment A)
First Amendment authorizing 5-year extension of Contract March 24, 2009
(attachment B)
Authorization to enter into 10-year Contract
Environmental Review

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3 of 3
The contract amendment is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The contract amendment 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 amendment to continue existing beach lifeguard services would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts & Budget Actions
Staff seeks authority to approve funding from the Beach Fund to increase the amount of contract with the County of Los Angeles for beach lifeguard services. Future year funding is contingent on Council budget approval.

Contract/Agreement/Purchase Order Modification Request
Agreement #
Current Authorized
Amount
FY 2024-25
Budget
Modified Request
Amount
Dept/CIP Account # Total Revised
Contract Amount
#9045
(CCS) $43,533,594 $ 3,962,000
11700001.552010 $47,495,594
Prepared By: Elana Buegoff, Pier Administrator
Approved Forwarded to Council
Attachments:

A. February 26, 2019 Staff Report (Web Link)
B. March 24, 2009 Staff Report
C. 2009 Lifeguard Services Agrement with Los Angeles County D. 2019 Extension of Lifeguard Services Agrement with Los Angeles County

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c7r __
Y of
Santa Moniea`°
City Council Report
City Council Meeting: March 24, 2009
Agenda Item: r~
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community & Cultural Services Subject: Contract with the County of Los Angeles for Lifeguard Services on Santa Monica State Beach
Recommended Action
Staff recommends that Council (1) authorize the City Manager to negotiate and execute a new contract with the Los Angeles County Fire Department for lifeguard services on Santa Monica State Beach and (2) appropriate additional funds in the amount of 66,806 for FY 2008-09.

Executive Summary
The City contracts with the Los Angeles County Fire Department ( LACED) to provide year-round lifeguard services on Santa Monica State Beach. The current agreement expired in December 2006 and LACED has since been operating on a month to month term pending a new agreement. The proposed new lifeguard agreement has a term of ten years with a five year extension option by mutual agreement. The contract will escalate the City's reimbursement of County expenses from 30-40% to 100%, starting with a 6% increase in the first year's annual payment followed by an annual increase based on CPI plus a $ 100,000 escalator plus a percentage of the County's administrative overhead. The estimated value of the 10-year contract is $28 million.

The FY 2008-09 contract increase requires an additional appropriation of $66,806. The future annual increases to the contract will be ircluded in the City's FY 2009- 10Proposed Budget and the FY 2010-11 Budget Plan. The contract also provides 485,000 in previously ear-marked funds for capital improvements to the lifeguard headquarters facility. Funds for the initial annual increases have been included in the City's FY 2008-09 Budget and FY 2009-10 Budget Plan.

Discussion
Since 1974, the City has contracted with Los Angeles County to provide lifeguard services at Santa Monica State Beach. Services provided under the agreement include lifeguard coverage for the entire beach seven days a week, year-round; 24-hour a day emergency response for regional emergencies; and 24-hour a day paramedic support to the community. Equipment provided by the County as part of this service includes four 1 5.I.b
Packet Pg. 514 Attachment: March 24, 2009 Staff Report (6338 : Approval of 2nd Modification to Agreement with the County of Los Angeles for Lifeguard emergency response vehicles, rescue boat, and Black Hawk helicopter. The County is often the first responder to emergencies on the beach, in the water, and on or near the Pier.

The current agreement expired in December 2006 and IACFD has since been operating on a month to month term pending a new agreement. The proposed new agreement with the County uses the same County structure for the delivery of yearround services as previous agreements and has a term of ten years with a five year extension option by mutual agreement. To bring the City's reimbursement level in line with the County's actual operating costs, the proposed contract will escalate the City's reimbursement to County from 30-40% to 100% of costs, starting with a 6% increase in the first year's
annual payment followed by an annual increase based on CPI plus a 100,000 escalator. The proposed contract also includes a percentage of the County's administrative overhead, which had not been included in previous agreements.

In addition, the proposed contract provides $485,000 in previously appropriated funds for capital improvements to the lifeguard headquarters facility. These funds were accumulated in the previous contract for the purpose of improving or expanding the Lifeguard Headquarters located at 1642 Ocean Front Walk. The headquarters was built in the 1950s and is owned by the City of Santa Monica. While the County has made extensive repairs to the structure over the years, the building is in need of substantial renovations and improvements to continue to be a viable facility for lifeguard operations.

The accumulated $485,000 will be used by the County for renovation, replacement or expansion of lifeguard facilities as approved by the City. Beyond this amount, the City will not be obligated to provide for capital improvements but, as the building owner, agrees to attempt to identify funding for such improvements from various sources such as the recent federal economic stimulus package.
2 5.I.b
Packet Pg. 515 Attachment: March 24, 2009 Staff Report (6338 : Approval of 2nd Modification to Agreement with the County of Los Angeles for Lifeguard The remaining terms of the agreement are similar to the prior agreement and continue the current high quality of service and public safety standards.

Financial Impacts & Budget Actions
The estimated value of the 10-year contract is $28 million. The estimated cost of the contract for FY 2008-09 is $ 1, 098, 686, which requires an additional budget appropriation of $66,806 to account 11522.555060 to fund the contract for the remaining months of FY 2008-09. The estimated cost of the contract in FY 2009-10 and FY 2010-11 will be approximately $1, 000991, and $2, 000, 293, respectively. Funds for the annual increases in the contract will be included in the City's FY 2009-10 Proposed Budget and the FY 2010-11 Budget Plan in account 11522.555060.

Alternatives
Staff prepared an initial estimate of the cost of providing lifeguard services directly through the City. The cost for year one would be approximately $5 million and would escalate each year with changes in the Consumer Price Index for expenses and Cost Of Living Adjustments for staff.

Prepared by: Callie Hurd, Open Space Manager
Approved: Forwarded to Council:

Barbara Stinchfield ,~~ L!amont Ewell
Director, Community & Cultural Services LZity Manager
3 5.I.b
Packet Pg. 516 Attachment: March 24, 2009 Staff Report (6338 : Approval of 2nd Modification to Agreement with the County of Los Angeles for Lifeguard Reference Contract No.
9045 (CCS).

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Packet Pg. 517 Attachment: March 24, 2009 Staff Report (6338 : Approval of 2nd Modification to Agreement with the County of Los Angeles for Lifeguard

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Packet Pg. 540 Attachment: 2009 Lifeguard Services Agrement with Los Angeles County (6338 : Approval of 2nd Modification to Agreement with the County of

AN AMENDMENT TO THE COMMUNITY RECREATION AGREEMENT
2 FOR LIFEGUARD SERVICES BETWEEN THE COUNTY OF LOS ANGELES 3 AND CITY OF SANTA MONICA
4 5 This amendment to the Community Recreation Agreement for Lifeguard Services 6 ("Agreement") is made and entered into on the 21st day of April , 20jjL_, 7 by and between the City of Santa Monica, hereinafter referred to as "CITY," and the County 8 of Los Angeles, hereinafter referred to as "COUNTY."
9 10 RECITALS
11 WHEREAS, the CITY and COUNTY entered into the above-referenced Agreement on 12 Apri121, 2009, which allowed the COUNTY, through the Consolidated Fire Protection District 13 of Los Angeles County (DISTRICT) to provide lifeguard services within the CITY for a period 14 of 10 years, with one optional5-year extension; and
15 WHEREAS, the CITY and the DISTRICT mutually desire to amend the Agreement to 16 extend the term of the Agreement for one optional 5-year extension; and 17 WHEREAS, the CITY and the DISTRICT mutually agree that the CITY shall continue 18 to set aside additional funds for the purpose of maintaining the Lifeguard Headquarters 19 located at 1642 Ocean Front Walk ("Major Repairs Reserve Fund") during the 5-year 20 extension.
21 NOW, THEREFORE, IN CONSIDERATION of the promises, covenants, 22 representations, and agreements set forth herein, the parties mutually agree as follows:
23 1. This amendment shall extend the Agreement for an additional five-year period unless 24 action is taken by either party to terminate by giving at least two years' advance written 25 notice to the other party of its intention to terminate. 26 2. Both the CITY and the DISTRICT acknowledge the importance of maintaining the 27 Major Repairs Reserve Fund for the purpose of improving and repairing the Lifeguard 28 -I5.I.d
Packet Pg. 541 Attachment: 2019 Extension of Lifeguard Services Agrement with Los Angeles County (6338 : Approval of 2nd Modification to Agreement with I
2 3
4 5
6 7
8 9
10 II
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 3.

II
II
Headquarters. As part of the adoption of its FY 2019-20 Budget, the CITY shall set aside and make available an additional $150,000 for the Major Repairs Reserve Fund for the DISTRICT to utilize during this 5-year extension period.

All other terms and conditions of the Agreement shall remain the same and in full force and effect.

5.I.d
Packet Pg. 542 Attachment: 2019 Extension of Lifeguard Services Agrement with Los Angeles County (6338 : Approval of 2nd Modification to Agreement with 1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the 2 date first written above.
3 4

CITY OF SANTA MONICA
~ 7 By-+.~~~~-+~--------~
8 9 DATEJY\~ [4 WI] I
10 11 APPROVED AS TO FORM :
12 13
14 By d--~~ 15 City Attorney
16 17
18 19
20 21
22 23
24 25
26 27
28 CONSOLIDATED FIRE PROTECTION

DISTRICT OF LOS ANGELES COUNTY
By ~(d;J
DATE t;J/;:n 17
APPROVED AS TO FORM:

MARY C. WICKHAM
County Counsel
By c,WA..

Deputy ~sJh

5.I.d
Packet Pg. 543 Attachment: 2019 Extension of Lifeguard Services Agrement with Los Angeles County (6338 : Approval of 2nd Modification to Agreement with ATTEST:

By: ~Jtn~t~ DENISE ANDERSON-WARREN
City Clerk

5.I.d
Packet Pg. 544 Attachment: 2019 Extension of Lifeguard Services Agrement with Los Angeles County (6338 : Approval of 2nd Modification to Agreement with City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 8.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: Appointment to one unscheduled vacancy on the Arts Commission for a term ending on June 30, 2027 (Continued from 3/19/2024).

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

A. List of Applicants
B. Written Comments

8.A
Packet Pg. 545
City of Santa Monica
Boards and Commissions Applicants
Arts Commission
Name Application Date
Fox, Kara K.

Kairala, William R.

Karetsky, Ethan
Ramirez, Bob
Warren, Eric
03/20/2024
02/22/2024
06/16/2023
12/13/2023
03/20/2024
TOTAL APPLICANTS: 5

8.A.a
Packet Pg. 546 Attachment: List of Applicants (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 1 David Yakobson
From: Council Mailbox
Sent: Tuesday, March 19, 2024 11:18 AM
To: councilmtgitems
Subject: Fw: Letter of recommendation for Bob Ramirez to be selected for the SM Arts Commission - 16A
Attachments: Bob Ramirez recommendation for SM Arts Commission - from Mary-Elizabeth Michaels.pdf
From: Mary-Elizabeth Michaels <[email protected]> Sent: Monday, December 18, 2023 7:33 PM
To: Council Mailbox <[email protected]>
Cc: Sofia Klatzker <[email protected]>; ME Michaels <[email protected]> Subject: Letter of recommendation for Bob Ramirez to be selected for the SM Arts Commission Dear Mayor Brock, Mayor Pro Tem Negrete, Councilmember Davis, Councilmember de la Torre, Councilmember Parra, Councilmember Torosis and Councilmember Zwick, I am writing to recommend that Bob Ramirez be selected to serve as a Santa Monica Arts Commissioner.

As Chair of the Santa Monica Arts Commission, I am dedicated to helping the commission and its members develop into an effective working group that can engage in the many different aspects of Santa Monica arts and culture and be a helpful resource to you on the City Council. I believe the most effective commission is one that is full of different and diverse commissioners who each bring varied experiences and backgrounds, and I believe that Bob Ramirez would be an excellent fit for the commission.

I have met Bob Ramirez on a few occasions, the first of which was through the city’s tour in conjunction with the Reframe community engagement process regarding the Macdonald-Wright murals located in City Hall. During that tour we visited Kuruvungna Springs where Bob shared about the history of the Springs and the continued work that he and others are doing to preserve that important space. I have since connected with Bob at other Santa Monica cultural outreach gatherings.

As you’ve undoubtedly read in his application, Bob both lives and works in Santa Monica and brings a unique background as a member of the Tongva community, and impressively as the president of the Gabrielino~Tongva Springs Foundation. Professionally, Bob owns his own design and build company and is well known for having designed numerous homes and gardens in the Santa Monica area. I believe Bob’s experience would also make him an excellent resource to/member of the SM Public Arts Committee, on which a selection of SM Arts Commission members serve.

Bob is an active member of the Santa Monica community and is committed to continuing to engage in conversations about Santa Monica’s evolving culture, both arts related, as well as its relationship with the Tongva community. In addition to being a very good fit for the commission, by selecting Bob Ramirez as a Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 547 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 2 commissioner, the City Council would be making a concrete first step in the goal outlined in Recommendation 7 of The Reframe: City Hall Mural Phase I Report, to improve representation on Santa Monica committees.

For all the reasons stated, I encourage you to vote for Bob Ramirez to fill the open position on the Santa Monica Arts Commission. Please feel free to reach out to me directly at mary[email protected] with any questions or to discuss further.

Sincerely,
Mary-Elizabeth Michaels
Chair, Santa Monica Arts Commission
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 548 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) December 18, 2023
Dear Mayor Brock, Mayor Pro Tem Negrete, Councilmember Davis, Councilmember de la Torre, Councilmember Parra, Councilmember Torosis and Councilmember Zwick, I am writing to recommend that Bob Ramirez be selected to serve as a Santa Monica Arts Commissioner.

As Chair of the Santa Monica Arts Commission, I am dedicated to helping the commission and its members develop into an effective working group that can engage in the many different aspects of Santa Monica arts and culture and be a helpful resource to you on the City Council. I believe the most effective commission is one that is full of different and diverse commissioners who each bring varied experiences and backgrounds, and I believe that Bob Ramirez would be an excellent fit for the commission.

I have met Bob Ramirez on a few occasions, the first of which was through the city’s tour in conjunction with the Reframe community engagement process regarding the MacdonaldWright murals located in City Hall. During that tour we visited Kuruvungna Springs where Bob shared about the history of the Springs and the continued work that he and others are doing to preserve that important space. I have since connected with Bob at other Santa Monica cultural outreach gatherings.

As you’ve undoubtedly read in his application, Bob both lives and works in Santa Monica and brings a unique background as a member of the Tongva community, and impressively as the president of the Gabrielino~Tongva Springs Foundation. Professionally, Bob owns his own design and build company and is well known for having designed numerous homes and gardens in the Santa Monica area. I believe Bob’s experience would also make him an excellent resource to/member of the SM Public Arts Committee, on which a selection of SM Arts Commission members serve.

Bob is an active member of the Santa Monica community and is committed to continuing to engage in conversations about Santa Monica’s evolving culture, both arts related, as well as its relationship with the Tongva community. In addition to being a very good fit for the commission, by selecting Bob Ramirez as a commissioner, the City Council would be making a concrete first step in the goal outlined in Recommendation 7 of The Reframe: City Hall Mural Phase I Report, to improve representation on Santa Monica committees.

For all the reasons stated, I encourage you to vote for Bob Ramirez to fill the open position on the Santa Monica Arts Commission. Please feel free to reach out to me directly at [email protected] with any questions or to discuss further.

Sincerely,
Mary Elizabeth Michaels
Mary-Elizabeth Michaels
Chair, Santa Monica Arts Commission
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 549 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 1 David Yakobson
From: Xavier Mota
Sent: Monday, March 18, 2024 8:58 AM
To: councilmtgitems
Subject: FW: Bob Ramirez
From: Frank Stiefel <[email protected]>
Sent: Wednesday, January 3, 2024 1:13 PM
To: councilmtgitems <[email protected]>; Council Mailbox <[email protected]> Subject: Bob Ramirez

EXTERNAL
January 3, 2024,
To those it might concern,
What follows is a letter recommending Bob Ramirez as a Santa Monica Arts Commissioner.

Since I’m not familiar with the specific requirements of the office, I’ll list the skills and temperament that I think would benefit any organization.

We met when we assigned Bob the job of designing and building our home. The house has been published numerous times but beyond the quality of the project we got to fully enjoy the process.

He listens: While his homes certainly have a strong point of view, he wants the project to work for his clients as well as the community. If you care to survey a list of clients, you might find unanimity in our raves about a process that in other circumstances often ends in bad feelings and lawsuits.

His crew has been with him for over thirty years. Imagine the management skills that it takes to hold onto all your key personnel for that period.

Any conversation with Bob at some point moves toward history. In his case it’s not dispassionate reading, it’s an active commitment to preserving and honoring the past. What is now Kuruvungna Springs was once a forgotten patch of weeds, nonnative plants and a spring that dumped thousands of gallons of water onto our streets. Today, after Bob activated the Boy Scouts, his subcontractors, and friends, that water feeds fruit trees, vegetables and plants that are native to Santa Monica. Most importantly we now have a living, breathing, example of how the Tongva once lived.

Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 550 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 2 Similarly, Bob has lent his talent to the San Gabriel Mission where he is rebuilding structures and designing gardens.

Again, I don’t know what the Arts Commission does, but it seems to me that “Art” as it pertains to government and community is a different animal than the product of one person, alone, looking for his/her truth. As such it requires a sense of taste, balance, and the ability to hear and deal with conflicting opinions. If those are the skills the Art Commission is looking for, I can’t think of a better candidate than Bob Ramirez.

Frank Stiefel
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 551 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 3 David Yakobson
From: Xavier Mota
Sent: Monday, March 18, 2024 8:57 AM
To: councilmtgitems
Subject: FW: An appointment to the Arts Commission
From: Naomi Okuyama <[email protected]>
Sent: Wednesday, February 7, 2024 8:23 AM
To: Xavier Mota <[email protected]>
Subject: Fwd: An appointment to the Arts Commission
From: Ruthann Lehrer <[email protected]>
Sent: Tuesday, January 9, 2024 11:32:45 AM
To: Sofia Klatzker <[email protected]>; Naomi Okuyama <[email protected]>; David White <[email protected]>
Subject: Fw: An appointment to the Arts Commission

EXTERNAL
----- Forwarded Message -----
From: Ruthann Lehrer <[email protected]>
To: Phil Brock <[email protected]>; Christine Parra <[email protected]>; Oscar de La Torre <[email protected]>; Lana Negrete <[email protected]>; Gleam Davis <[email protected]>; Caroline Torosis <[email protected]>; Jesse Zwick <[email protected]>
Sent: Monday, January 8, 2024 at 12:23:32 PM PST
Subject: An appointment to the Arts Commission
January 8, 2024

Honorable Mayor Brock and Councilmembers,

I am writing to strongly recommend the appointment of Bob Ramirez to the Arts Commission, for which he has recently applied.

Bob is President of the Kuruvungna Springs Foundation, belonging to the Gabrielino/Tongva group, which he is leading to impressive achievements in reclaiming and restoring their cultural heritage. The controversy over the City Hall history mural led to my reaching out to him and has resulted in my great respect and admiration for him and his work. He will be a valuable asset to the Arts Commission and to the City of Santa Monica, and I am very grateful that he has volunteered for this appointment.

His profession is the design and construction of homes and landscapes. Currently he is leading a restoration project at Mission San Gabriel to create a Gabrielino/Tongva landscape that is rooted in memory and history.

Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 552 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 4 His passion for his cultural heritage has led to many accomplishments at the Kuruvungna Springs, which has reached new heights of cultural revitalization and education under his tenure. He has brought together many youth groups, volunteers, and diverse nonprofit organizations to participate in this work, resulting in an evocative historic site with connections to the many groups and people who have contributed to its restoration. With a deep understanding of the history of his people and his knowledge of horticulture as well as architecture, his energetic leadership has inspired many individuals and groups to explore the full story of the Gabrielino/Tongva from before First Contact to today. Specific contributions include purification of the waters of the Sacred Springs, harnessing the springs waters to irrigate the site, removing invasive plants and replacing them with native species, planting traditional food plants, reconfiguring the surrounding chain link fence to create a sheltered environment, constructing a replica house with authentic materials, presenting ceremonial rituals of the Gabrielino/Tongva at appropriate occasions. His stewardship of the site is rooted in his intelligence, creativity, passion and inclusivity.

Bob Ramirez served as one of the resource educators for the Acknowlege + Reframe project led by the Meztli Group and he made important contributions to educating the Working Circle. So it is especially meaningful that his application for appointment to the Arts Commission fulfills one of the Meztli Group’s recommendations that will soon be presented to City Council:

Recommendation 7: Improve Representation on Santa Monica Committees.

As someone involved with the arts of architecture and landscape, as leader of the Kuruvungna Springs Foundation, and as a community inspiration, Bob Ramirez will be a worthy and significant addition to the Santa Monica Arts Commission. As the Metzli Report recommendations move into the implementation phase, his experience and expertise will be particularly helpful.

The attached video provides information about the Mission San Gabriel project. https://vimeo.com/883637905

Thank you for your consideration.

Respectfully,
Ruthann Lehrer

Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

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Packet Pg. 553 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 5 David Yakobson
From: Ruthann Lehrer <[email protected]>
Sent: Friday, March 15, 2024 10:44 AM
To: councilmtgitems; Phil Brock; Lana Negrete; Caroline Torosis; Gleam Davis; Jesse Zwick; Oscar de la Torre; Christine Parra
Cc: Sofia Klatzker
Subject: Item 16A Appointment to Arts Commission

EXTERNAL
March 15, 2024
Re: New Appointment to Arts Commission, Agenda Item 16A City Council Meeting March 19, 2024

Honorable Mayor Brock and Councilmembers,

I am writing to strongly recommend the appointment of Bob Ramirez to the Arts Commission, for which he has recently applied.

Bob is President of the Kuruvungna Springs Foundation, belonging to the Gabrielino/Tongva group, which he is leading to impressive achievements in reclaiming and restoring their cultural heritage. The controversy over the City Hall history mural led to my reaching out to him and has resulted in my great respect and admiration for him and his work. He will be a valuable asset to the Arts Commission and to the City of Santa Monica, and I am very grateful that he has volunteered for this appointment.

His profession is the design and construction of homes and landscapes. Currently he is leading a restoration project at Mission San Gabriel to create a Gabrielino/Tongva landscape that is rooted in memory and history.

His passion for his cultural heritage has led to many accomplishments at the Kuruvungna Springs, which has reached new heights of cultural revitalization and education under his tenure. He has brought together many youth groups, volunteers, and diverse nonprofit organizations to participate in this work, resulting in an evocative historic site with connections to the many groups and people who have contributed to its restoration. With a deep understanding of the history of his people and his knowledge of horticulture as well as architecture, his energetic leadership has inspired many individuals and groups to explore the full story of the Gabrielino/Tongva from before First Contact to today. Specific contributions include purification of the waters of the Sacred Springs, harnessing the springs waters to irrigate the site, removing invasive plants and replacing them with native species, planting traditional food plants, reconfiguring the surrounding chain link fence to create a sheltered environment, constructing a replica house with authentic materials, presenting ceremonial rituals of the Gabrielino/Tongva at appropriate occasions. His stewardship of the site is rooted in his intelligence, creativity, passion and inclusivity.

Bob Ramirez served as one of the resource educators for the Acknowlege + Reframe project led by the Meztli Group and he made important contributions to educating the Working Circle. So it is especially meaningful that his application for appointment to the Arts Commission fulfills one of the Meztli Group’s recommendations which was approved by City Council:

Recommendation 7: Improve Representation on Santa Monica Committees.

Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 554 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 6 As someone involved with the arts of architecture and landscape, as leader of the Kuruvungna Springs Foundation, and as a community inspiration, Bob Ramirez will be a worthy and significant addition to the Santa Monica Arts Commission. With the Metzli Report recommendations moving into the implementation phase, his experience and expertise will be particularly helpful.

The attached video provides information about the Mission San Gabriel project. https://vimeo.com/883637905

Thank you for your consideration.

Respectfully,
Ruthann Lehrer
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 555 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) 7 David Yakobson
From: Joel Garcia <[email protected]>
Sent: Tuesday, March 12, 2024 11:33 AM
To: Council Mailbox; councilmtgitems; Xavier Mota
Subject: Support Letter for Bob Ramirez (Arts Commission) Attachments: Bob Ramirez Support Letter 2024.pdf

EXTERNAL
Dear Councilmembers,
I submit this letter in support of Bob Ramirez's application for arts commissioner. As president of the Gabrielino Tongva Springs Foundation, Bob has helped revitalize Kuruvungna which in turn has created space for the reawakening of cultural art forms. For example, Kuruvungna hosted the first Tongva Basketry Workshop; for the first time in 150 years, the Tongva community has revived the art of harvesting plant material and weaving baskets.

Bob has also helped expand and deepen partnerships with important partners such as UCLA, Descanso Gardens and the Theodore Payne Foundation among others. These partnerships continue to increase the cultural importance and visibility of not only Kuruvungna but also the arts and cultural practices connected to the site and Santa Monica.

In April, students and professors from UCLA performed a survey of artifacts uncovered during construction operations on the grounds of Uni High. Over several months, the team created a database of over 1,200 items, which will help us understand the history of Kuruvungna.

With Bob's leadership, the collaboration with the UCLA Botanical Garden resulted in new plant identification tags; that include the common name, the scientific name, the family, and the Tongva name when possible. Over a hundred native species were identified, including 24 non-native heritage trees from around the world.

As part of the Meztli projects team working on the City Hall Mural Reframe project I have seen the lack of representation of First Peoples in bodies such as the Arts Commission and this is an area where their inclusion can do many things to spark both healing opportunities, build bridges between the City of Santa Monica and the First Peoples community and secondly uplift the arts and culture of Indigenous folks on par with all other communities.

The City of Santa Monica is in a unique position to do something many cities have not done yet. The inclusion of First Peoples in decision-making bodies like the Arts Commission is an important step towards healing past, present and ongoing harms.

Sincerely,
Joel Garcia
Director
323.637.4375
[email protected]
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

8.A.c
Packet Pg. 556 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) December 14, 2023
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
Re: Arts Commission
Dear Councilmembers,
I submit this letter in support of Bob Ramirez's application for arts commissioner. As president of the Gabrielino Tongva Springs Foundation, Bob has helped revitalize Kuruvungna which in turn has created space for the reawakening of cultural art forms. For example, Kuruvungna hosted the first Tongva Basketry Workshop; for the first time in 150 years, the Tongva community has revived the art of harvesting plant material and weaving baskets.

Bob has also helped expand and deepen partnerships with important partners such as UCLA, Descanso Gardens and the Theodore Payne Foundation among others. These partnerships continue to increase the cultural importance and visibility of not only Kuruvungna but also the arts and cultural practices connected to the site and Santa Monica.

In April, students and professors from UCLA performed a survey of artifacts uncovered during construction operations on the grounds of Uni High. Over several months, the team created a database of over 1,200 items, which will help us understand the history of Kuruvungna.

With Bob's leadership, the collaboration with the UCLA Botanical Garden resulted in new plant identification tags; that include the common name, the scientific name, the family, and the Tongva name when possible. Over a hundred native species were identified, including 24 non-native heritage trees from around the world.

As part of the Meztli projects team working on the City Hall Mural Reframe project I have seen the lack of representation of First Peoples in bodies such as the Arts Commission and this is an area where their inclusion can do many things to spark both healing opportunities, build bridges between the City of Santa Monica and the First Peoples community and secondly uplift the arts and culture of Indigenous folks on par with all other communities.

The City of Santa Monica is in a unique position to do something many cities have not done yet. The inclusion of First Peoples in decision-making bodies like the Arts Commission is an important step towards healing past, present and ongoing harms.

Sincerely,
Joel Garcia
Director
323.637.4375
[email protected]
Meztli Projects: 6615 Easton Street, Los Angeles, CA 90022 | 323-637-4375 | meztliprojects.org meztli projects
Item 16.A.

March 19, 2024
Item 16.A.

March 19, 2024

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Packet Pg. 557 Attachment: Written Comments (6354 : Appointment to the Arts Commission 8.A. (5 mins.)) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 8.B
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: Appointment to one unscheduled vacancy on the Housing Commission for a term ending on June 30, 2025 (Continued from 3/19/2024).

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

A. List of Applicants
B. Written Comments

8.B
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City of Santa Monica
Boards and Commissions Applicants
Housing Commission
Name Application Date
Finley, Sheila A.

Garcia, Lydia
Gudgel, Timothy W.

Ha, Edmund
Hixon, Shane
Lynch, Deborah A.

Rush, Lynda
07/06/2023
10/12/2023
09/15/2023
10/03/2023
08/22/2023
02/05/2024
10/23/2023
TOTAL APPLICANTS: 7

8.B.a
Packet Pg. 559 Attachment: List of Applicants (6356 : Appointment to the Housing Commission 8.B.(5 mins.)) 1 David Yakobson
From: Theresa Marasco <[email protected]>
Sent: Tuesday, March 19, 2024 10:46 AM
To: councilmtgitems; David White
Cc: Phil Brock; Lana Negrete; Christine Parra; Oscar de la Torre; Caroline Torosis; Jesse Zwick; Gleam Davis
Subject: 3-19-24 City Council Agenda Item 16B

EXTERNAL
Dear Mayor Brock, Vice Mayor, Negrete and City Council Members, I am writing to you today in support of Deborah Lynch's application for the Housing Commission position for a person who is 62 or over and is a SMHA program participant.

Deborah has attended and has actively participated in Housing Commission meetings, City Council meetings, and informal Resident Advisory Board meetings. Deborah has a passion for, and a strong commitment to, identifying problems and advancing solutions that seniors in Santa Monica are experiencing.

Deborah has been a resident of Santa Monica for 20 years and has a great understanding of issues that seniors face with regard to housing in Santa Monica. I would ask that Deborah be appointed to the position she has applied for on the Housing Commision as her commitment to issues seniors face with regard to housing is vital to ensure a better future for seniors and enhancing their overall wellbeing.

Thank you.

Item 16.B.

March 19, 2024
Item 16.B.

March 19, 2024

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Packet Pg. 560 Attachment: Written Comments (6356 : Appointment to the Housing Commission 8.B.(5 mins.)) 1 David Yakobson
From: Ann Maggio <[email protected]>
Sent: Monday, March 18, 2024 10:32 PM
To: councilmtgitems
Cc: David White
Subject: Item 16B Housing Commission Board Appointment for 3/19 agenda

EXTERNAL
Dear City Council,
Please appoint Deborah Lynch to the open seat reserved for a person of at least 62 yrs of age AND a Santa Monica Housing participant. By all accounts, Deborah has already proven herself as knowledgeable, resourceful and helpful to a number of people finding it difficult to manage their housing questions and situations. She is the right asset for the seat and deserves to be there.

Thank you,
Ann Maggio Thanawalla
"Unthinking respect for authority is the greatest enemy of truth." - Albert Einstein Item 16.B.

March 19, 2024
Item 16.B.

March 19, 2024

8.B.c
Packet Pg. 561 Attachment: Written Comments (6356 : Appointment to the Housing Commission 8.B.(5 mins.)) 1 David Yakobson
From: Council Mailbox
Sent: Monday, March 18, 2024 8:42 AM
To: councilmtgitems
Subject: Fw: CC Mtg 3/19/24 Item 16 B. Housing Commission Board Member From: Dan Charn. <[email protected]>
Sent: Sunday, March 17, 2024 8:09 PM
To: [email protected] <[email protected]>; Council Mailbox <[email protected]>; Council Mailbox <[email protected]>; David White <[email protected]>; [email protected] <[email protected]> Subject: CC Mtg 3/19/24 Item 16 B. Housing Commission Board Member

EXTERNAL
I would like to endorse Debra Lynch for the seat that is currenlty open on the Commission. Ms. Lynch is a pro-active senior who is concerned with issues that address our seniors and god knows we need that. She is not beholden to any special interest organizations or power groups. She is not owned by the real estate industry or a lobbyist. She is real.

Please show you actually do care about seniors and put Debra Lynch in that seat where only she belongs.

Thank you,
Danielle Charney
Item 16.B.

March 19, 2024
Item 16.B.

March 19, 2024

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Packet Pg. 562 Attachment: Written Comments (6356 : Appointment to the Housing Commission 8.B.(5 mins.)) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 11.A
1 of 20
To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department, Revenue Subject: Business License Tax Modernization
Recommended Action
Staff recommends that City Council:

1. Consider the proposed Business License Modernization and associated business license tax rate changes;

2. Direct staff to draft changes, as applicable to section of Article 6 Business, Professions and Trades;

3. Prepare a draft measure for the Business License Modernization and a proposed resolution to place the measure on the November 2024 ballot: and

4. 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
The City has had three comprehensive overhauls of the business license tax system over the past 60 years, in 1962, 1983, and most recently in 1990. Based on significant shifts in the way business is conducted more than 30 years later, it is time to update the Business License Tax (BLT) code. The outdated code creates equity issues between small and larger businesses, administrative issues for staff, and reporting challenges for businesses that operate primarily online or whose employees operate remotely. The types of business operations that we see today were not contemplated in the 1990s.

Over the past year, staff has been working with outside consultants to conduct a comprehensive review of the existing BLT program and tax ordinance to identify areas for improvement. These efforts aim to create a fair, equitable, and simple taxing system

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that attracts, retains, and encourages business expansion in Santa Monica. The updated program would be structured to support small businesses and microenterprises, addresses emerging business models, compares with neighboring jurisdictions, increases transparency and streamlines administration, and protects current tax revenues that fund essential city services.

At this time, staff seeks Council approval of the proposed business license program and tax rate changes, direction to draft a modernized tax ordinance, and direction to work with our outside consultants to develop a survey to determine whether Santa Monica voters would support changes to the BLT via a ballot measure for the November 2024 election.

Background
The City of Santa Monica has had three comprehensive reviews of the business license tax ordinance in the past 60 years: 1962, 1983 and 1990. Since the last major revision in 1990, the ordinance has remained relatively unchanged. However, the number and types of Santa Monica businesses have evolved significantly. Growing sectors of science, technology, information, mobility, and finance, including eCommerce and other internet-based business models, are now common and have thrived in Santa Monica.

With this significant change in business sectors since the 1990s, unique and complex issues have arisen around the administration of the BLT program, such as outdated tax classification descriptions, business nexus definitions, outdated definitions, tax rates that do not align with neighboring jurisdictions for specific industries and limited exemptions for our small business community.

The need to modernize the BLT program has been considered and discussed numerous times in the past decade. For example, on October 10, 2017, staff requested direction from Council to create new business license tax classifications and rates for cannabis-related businesses. On February 25, 2020, as part of the FY 2019-20 Midyear Budget, BLT modernization was one of the options discussed to help mitigate the City’s financial challenges. Finally, during the FY 2021-22 Midyear Budget discussion on February 8, 2022, Council directed staff to review potential revenue measures to

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provide additional funding to restore and enhance City services, which included the modernization of the BLT ordinance. In response to Council direction, staff contracted with consultants Baker Tilly and HdL Companies (HdL) to conduct a strategic and comprehensive review and modernization effort of the program.

Discussion
Santa Monica’s Municipal Code (SMMC) authorizes the Finance Department to levy and collect business license tax and provides the structure for the administration of the BLT program. The program supports the overall well-being of Santa Monica, generating revenues that support essential services funded by the General Fund. The Finance Department’s Revenue Division administers the Business License Program, which includes the collection of business license taxes from approximately 23,000 businesses of which more than 13,000 are physically located within the City. With a few exceptions, the City’s annual business license taxes are based on gross receipts and tax rates are applied based on the assigned business classification, which varies from $1.25 to $5.00 per $1,000 of gross receipts. Table 1 (chapter 6.08 of the Municipal Code) describes the business classifications that are taxed based on gross receipts (except for Corporate/Administrative Headquarters which is taxed based on the cost of operations).

Table 1 - Current Tax Rate Groups and Tax Rates
Tax Rate Group Gross Receipts Business
Classification
Tax Rate per $1,000
in Gross Receipts
Group I Corporate/Administrative Headquarters
Manufacturer/Retail/Wholesaler
Recreation and Entertainment Utilities
Residential and Non-Residential
Property

0.125%
$1.25 per $1,000
Group II Auto Dealer 0.125%
$1.25 per $1,000
Capped at $25,000
Group III Service/Agent/Broker
Contractor/Specialty Contractor

0.30%
$3.00 per $1,000
Group IV Professions 0.50%
$5.00 per $1,000
SMMC §6.204.040* Cannabis Related Businesses Currently 3% for retail, 2% for medicinal, and
1% for distribution,

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manufacturing,
cultivation, and
laboratory testing
$10 to $30 per $1,000
Tax Rate Group Flat Rate Business Classification Per Unit Fee Group V Delivery $50 per vehicle
Group VI Planners and Promoters for Special or
Community Events
$150 per day
Group VII Taxi $250 per Vehicle
SMMC §6.36 Vendor $50 per operational
set up
*All Cannabis business tax rates are adjustable up to 10% and may be increased or decreased by resolution adopted by City Council.

The business license tax is an integral part of the General Fund revenues and is a vital component that provides the resources necessary to advance City Council’s strategic priorities. The Lincoln Institute of Land Policy defines an efficient tax system as a system that generates “revenue while minimizing unintended consequences, and an equitable tax system imposes obligations on taxpayers in proportion to their resources.” The proposed changes to the Business License program aim to distribute the cost of taxation fairly, promote and encourage new businesses to Santa Monica and enable existing businesses to expand. Additionally, the proposed changes should streamline administration and ensure accountability and equity for all businesses. The proposed changes to the Business License program will strengthen City Council’s goal to cultivate economic recovery, assist with creating a balanced tax system while advancing fairness and opportunity.

In conducting its comprehensive review of the program, staff and its consultants identified specific strategies to reduce barriers on small and local businesses while prioritizing equity and fairness in the process. The comprehensive review included evaluation of the existing BLT ordinance and incorporating insight gained through formal analysis and outreach from Santa Monica’s business community and other stakeholders. The first phase focused on reviewing and comparing the City’s current BLT structure with a selected group of other gross-receipts-based cities such as Beverly

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Hills, Culver City and Los Angeles, including conducting an analysis of the strengths, weaknesses, opportunities, and threats of the current structure.

Objective of the modernization efforts
The BLT modernization efforts seek to:
• Attract, retain, and encourage expansion of businesses within the City • Create a fair, equitable, and simple business license taxing system • Support small businesses and microenterprises
• Address and appropriately tax emerging business models • Ensure the taxing scheme is competitive with neighboring jurisdictions with similar characteristics
• Minimize administration and compliance burden for the City and taxpayers • Protect the City’s financial resources
The modernization efforts are guided by the following principles:
• Fairness – addresses inequities in the existing tax structure • Comparability – ensures the tax structure is competitive with neighboring jurisdictions
• Adaptability – reflects current and future business trends • Diversity, Equity, and Inclusion – develops tools and strategies that will enhance opportunities for small and local businesses
Stakeholder and Business Community Engagement
Throughout the process, staff has engaged the business community with the intent to involve internal and external stakeholders through an inclusive process that promotes genuine collaboration. Staff and consultants facilitated a series of interviews, surveys and virtual focus groups and business group meetings to understand the stakeholders’ varying experiences, needs, concerns and expectations of the BLT modernization project.

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Staff interviews – The City’s consultant, Baker Tilly, interviewed key staff members in the Finance Department, Community Development Department, and the City Manager’s Office to obtain input and insight into the modernization effort. The key takeaways from these interviews are in line with some of the findings from the comprehensive review of the existing BLT program and tax ordinance They included:
• Concerns regarding the regressive tax and the high penalty schedule on small businesses.
• The need to update the BLT definitions and classifications to reflect the current business community.
• Concerns with changes that might negatively impact legacy businesses.

Surveys and virtual focus groups - A survey about the business license program was sent to over 20,000 businesses. The survey yielded a total 1,894 responses, representing approximately 8.2% of all current business license holders. More than half of the respondents indicated that the business license tax was not a significant cost for their business, while about one third indicated the cost was too high. Roughly 96% of respondents indicated that the overall application and renewal process was either easy or reasonable.

The City also hosted 5 virtual focus groups and invited 1,400 randomly selected local businesses to participate. Overall, the participants spoke positively about doing business in Santa Monica and indicated that the Business License process was easy and the tax was fair.

Business group meetings – Staff met with various stakeholders, including more than 75 representatives from Downtown Santa Monica, the Chamber of Commerce, Montana Avenue Business Improvement District, Main Street Business Improvement District, and the Government Affairs Committee. Feedback about the modernization efforts varied amongst stakeholders but all said they appreciated the opportunity to provide input and collaborate with staff. There was unequivocal support for small and local business

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assistance, including the expansion of the small business exemption, the reduction of the tax penalty schedule, and the elimination of the back tax calculation. There was a suggestion to explore aligning the annual gross receipt threshold for small businesses with the U.S. Small Business (SBA) Administration threshold for small business contracts. The SBA threshold is set at 500 employees for manufacturing companies and $7.5 million in receipts annually for all others. Utilizing the SBA threshold for our local small business tax exemption would mean that more than 98% of businesses operating in Santa Monica would pay no tax and the total tax burden would shift to 2% of our business community.

There was hesitation to support the proposed rate adjustments on auto dealers and corporate administrative headquarters. Specifically, the stakeholders posed concerns regarding businesses impacted by the proposal that are continuing to recover from the effects of the global pandemic and facing challenges attracting and retaining employees. The Chamber requested that should the City move forward with the recommended proposal, a phased approach is instituted in implementation of the tax rate changes.

BLT Analysis and Recommendations
The City’s tax consultant, HdL, completed a comprehensive study of the BLT ordinance, BLT historical data, also compiling and providing data from cities with similar characteristics, for a comparative analysis on the business license tax structures and revenues from those cities.

Santa Monica continues to have a diverse economy and has become part of the largest hubs for technology companies. The City’s strengths include its location, its diverse types of businesses, the sheer size of its business community relative to its population, as well as its strong presence in tech, mobility, healthcare, and the hospitality sectors.

While adjusting to rapid change and unforeseen challenges, the Santa Monica business community continues to show its profound resilience by adapting to changes in

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consumer habits, creating new and innovative experiences and attractions, using underutilized commercial spaces drawing foot traffic to retail operations, and finding new and pioneering ways to provide services. Though historical analysis of the Santa Monica’s business landscape showed there has been an incremental decline in the total number of businesses operating in the City in prior years, the FY 2023-24 data shows that the business community is experiencing a slow but steady rebound. The number of new businesses opening in Santa Monica is expected to increase modestly when compared to FY 2022-23.

Chart 1 below shows that approximately 70% of the City’s business license tax revenue is derived from retail, professional, and general service business sectors. Despite the reduction of the number of businesses operating in the City, the gross receipts reported, and business license taxes collected are on track to exceed pre-pandemic levels this fiscal year. This is primarily due to increases in gross receipts reported by the top 100 taxpayers, which paid approximately 35% of the revenue for FY 2022-23. The increase in gross receipt reporting and tax revenue collected is an indication that our largest corporations are contributing an increased amount in business license tax, which is a sign that the City has a potential growing dependency on large business revenue.

The increase in tax revenue from our largest corporations does not negate the fact that inequities exist amongst the large corporations operating in the City. As we modernize the tax structure, it is vital that we take a sustainable approach to protecting general fund revenues by ensure that our business community including the large businesses are contributing and paying their fair share. This can be accomplished by broadening our tax base which will expand the burden to existing large businesses that have had long standing tax subsidies and lower tax rates, spreading the tax burden amongst all sectors more equitably.

Chart 1 – Tax revenue by Business Type

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18%
10%
8%
7%
4%
4%
2%2%1%3%
Santa Monica - Total Share of Tax Revenue Generated by Business Type Service
Professional
Retail
Contractor
Corp/ Adm
Headquarters
Commercial Property
Rental
Residential Property
Rental
Agent/ Broker
Recreation/ Entertainm
ent
Wholesale

ALL OTHER
Table 2 below is a comparison of the Santa Monica tax classifications and the tax rates with neighboring cities with similar gross receipt tax structures. As previously mentioned, one of the leading principles of this project is to remain competitive with cities near us. Based on the comparison, Santa Monica is the only city that provides a cap of business license tax paid for Auto Dealers. Additionally, our Corporate Administrative Headquarters rate is slightly lower than Los Angeles and significantly lower than Culver City.

Table 2 – Tax Rate Comparison with Neighboring Cities
Business
Classification
Santa
Monica
Los Angeles Beverly Hills Culver City
Auto Dealer $75 +
$1.25/$1,000
(Capped at
$25,000)
$1.27/$1,000 $75 +
$1.25/$1,000
$1.50 /$1,000
over $200k
Corporate
Administrative
Headquarters
$75 +
$1.25/$1,000
$4.25/$1,000 $311+ $0.06539
Per Payroll Hour
$3 /$1,000
over $200k
Service $75 + $4.25 /$1,000 $311+ $0.06539 $2 /$1,000

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$3/$1,000 Per Payroll Hour over $200k
Recreation and
Entertainment
$75 +
$1.25/$1,000
$1.01/$1,000 $75 +
$1.25/$1,000
$2/$1,000
over $200k
Retail $75 +
$1.25/$1,000
$1.27/$1,000 $75 +
$1.25/$1,000
$1.50/$1,000
over $200k
Professions $75 +
$5/$1,000
$4.25/$1,000 $1,735 +
$0.83413 per
Prof. Hour +
$0.16762 per
non-Prof. Hour
$3.50 /$1,000
over $200k
Residential
and
Commercial
Rental Property
$75 +
$1.25/$1,000
$1.27/$1,000 $12/$1,000
$23.50/$1,000
$1.30 /$1,000
over $200k
Contractor $75 +
$3/$1,000
$153 + $2.55/
$1,000
$75 +
$1.25/$1,000
$2/$1,000
over $200k
Table 3 below provides sample business license tax calculations based on sample gross receipts and tax rates applied based on classifications listed above.

Table 3 – Sample Tax Calculations with Neighboring Cities Sample Business [Gross
Receipts]
Santa
Monica
Los
Angeles
Beverly
Hills
Culver
City
Large Auto Dealer
[$42,000,000]
$25,000 $53,340  $52,500 $62,700
Large Corp Admin HQ
[$34,000,000]
$42,500 $144,500 $35,809 $101,400
Large Service
[$7,500,000]
$22,395 $31,875 $3,983 $14,600
Large Entertainment
[$70,000,000]
$87,500 $70,700 $87,500 $139,600

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Large Retail
[$6,000,000]
$7,500 $7,620 $7,500 $8,700
Medium Professional
[$352,000]
$1,535 $1,496 $4,864 $532
Medium Service
[$325,000]
$870 $1,381 $1,127 $250

Medium Residential Rental
Property [$250,000]
$312 $317 $3,000 $65
1 st $200K
Exempt
Small Contractor
[$65,000]
$90 $0
$100K
Exempt
$81 $0
1 st $200K
Exempt
Very Small Service
[$7,000]
$0
$40K
Exempt
$0
$100K
Exempt
$311 $0
1 st $200K
Exempt
Based on the in-depth analysis conducted, HdL identified the primary deficiencies of the BLT ordinance and recommended changes to address them.

Primary Deficiencies
The primary deficiencies of the Business License ordinance are summarized as follows:
• The structure is regressive for small businesses and the City’s exemption for small businesses is low compared to our neighboring cities. • There is a growing dependency on large taxpayers, especially where remote work is a threat.
• The classifications and definitions should be updated to reflect the current business community.
• The City’s Auto Dealers cap does not exist in comparable cities and the Corporate Administrative Headquarters rate is lower than other cities. • The penalty schedule is amongst the highest when compared to the neighboring cities.

Recommendations to Address Deficiencies

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Table 4 below summarizes the proposed changes to address deficiencies in the ordinance, including the number of businesses impacted, and the estimated revenue impact associated with the proposed changes:

Table 4 – Recommended/Proposed Changes
Proposal Description # Of
Businesses
Impacted
Revenue
Impact Range
in Millions
Applicable
Modernization
Principles
Increase the Small Business Tax
Exemption threshold from $40,000 to
$100,000 and expand to out of City
businesses
7,000-8,000 $(0.7) - $(0.8)
revenue decrease
Fairness
Comparability
Equity
Reduce Penalty Schedule maximum
from 100% to 50%
200-300 $(0.2)
revenue decrease
Fairness,
Comparability
Remove the back tax calculation
related to the application year on the
firstrenewal submission
300-400 $(0.3) - $(0.4)
revenue decrease
Fairness
Residential Rental 3 Unit or Less
Rate Reduction from $3.00/$1,000 to
$1.25/$1,000
400-500 $(0.02)
revenue decrease
Fairness
Comparability
Equity
Rate Reduction from $1.25/$1,000 to
$1.15/$1,000 for
Retailers/Restaurants generating
under $5 Million in gross receipts
annually
1,800-1,900 $(0.1) -$(0.12)
revenue decrease
Equity
Auto Dealers will pay business
license tax on their total gross
receipts at a rate of $1.25/$1,000 for
sales and a rate of $3.00/$1,000 for
the auto repair operations with no
maximum tax
13-16 $0.9 - $1.3
revenue increase
Fairness
Comparability
Equity
Increase tax rate on
Corporate/Administrative
Headquarters from $1.25/$1,000 to
$2.50/$1,000
110-120 2.1 - 3.1
revenue increase
Fairness
Comparability
Equity
A processing fee initially set at 100%
of the BL Unit's costs. The fee would
be approximately $40
22,000-23,000 0.8 - 0.85
revenue increase
Comparability

ESTIMATED REVENUE IMPACT
RANGE
$2.25 - $3.93
revenue increase

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Small Business Exemption
Per SMMC 6.04.025, a small business is defined as an in-city business with annual gross receipts of no more than $40,000 annually. If a business meets these requirements, then they are exempt from paying the minimum license tax if the application is within 30 days of the start date for new businesses and by August 31st for annual business license tax filings for existing businesses. Based on current data, businesses reporting less than $40,000 pay a higher effective tax rate, meaning that the smallest businesses are paying more than any other group as a percentage of their reported gross receipts. Staff recommends increasing the small business exemption threshold from $40,000 to $100,000 and expanding it to all businesses that conduct business within the City. This aligns with other small business exemptions in nearby jurisdictions, including Los Angeles ($100,000 exemption) and Culver City ($200,000 exemption). This would reduce inequities for small businesses while ensuring that the City remains competitive as compared to neighboring jurisdictions. Staff estimates that increasing the small business exemption from $40,000 to $100,000 and expanding the exemption to out of City businesses would impact approximately 7,000 to 8,000 businesses and reduce the annual revenue by $0.7 to $0.8 million.

Proposed
Change
Santa Monica Los Angeles Beverly Hills Culver
City
Small Business
Exemption
$100,000 $100,000 N/A 1
st
$200,000
Penalty Schedule Reduction
Per SMMC 6.04.160, penalties can be assessed on unpaid tax liabilities starting at 20% for the first month late and 10% every month thereafter, up to 100%. The current business license tax penalty structure for noncompliance is among the highest compared to neighboring cities. Reducing the penalty schedule creates uniformity with penalties in place for other city taxes, including Parking Facility Tax, Utility User Tax and Transient Occupancy Tax. Staff recommends reducing the penalty maximum from

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100% to 50%. This change would impact approximately 200 to 300 businesses and reduce annual revenue by $0.2 million.

Proposed
Change
Santa Monica Los Angeles Beverly
Hills
Culver City
Penalty
Maximum
50% 40% 50% 100%
Elimination of the Back Tax Calculation
New businesses are required to pay a minimum tax of $75 when they first submit for a business license application and begin operating in Santa Monica. At the end of the first fiscal year, also known as the business license period, any back taxes due above the $75 minimum tax paid must be paid with the first renewal. The taxes for the first and second fiscal years are calculated using the gross receipts of the first reporting period.

Eliminating this provision would reduce the tax burden for new businesses in their first year of operation and ease administrative burden for City staff. Staff proposes to eliminate the back tax provision. This would positively impact approximately 300 to 400 new businesses annually resulting in an annual revenue reduction of approximately $300,000 to $400,000.

Tax Rate Reduction for Small Residential Rental Property Owners SMMC Section 6.04.020 requires that any business operating in Santa Monica must procure a business license unless specifically exempted by law. The SMMC establishes a business classification and tax rate for the rental of residential property of more than three units when such rentals are for residential use and where such units are located on the same or an adjoining property. However, the SMMC does not address the rental of residential property of three units or less nor does is it provide for a business license tax exemption for these businesses. With the rise in short term residential rentals and corporate housing operations and the City’s need to protect local housing stock, it was imperative to clarify that all property rental of any size or length of stay required a business license. In response to this issue, Council adopted Resolution 10769 in 2013, waiving past due business license taxes, penalties and related fees for individuals or businesses operating residential rentals of three or fewer units. Though the prior tax and

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penalty was waived, the tax classification for Residential Rental was not updated to reflect small property owners. Based on the definition of SMMC 6.08.150, property owners with 3 or less units are not specifically licensed by any other provision, therefore the activity is considered service and taxed at the $3 per $1,000.

Staff recommends updating the description of the classification to include all property types, effectively changing the tax rate for small property owners from $3 to $1.25 per $1,000. This proposed change creates equity across all property owners engaging in rental of property in the City. Approximately 500 to 600 small residential property owners would be impacted by this change, and there would be an annual revenue reduction of approximately $20,000 to $30,000.

Retail and Restaurant Rate Reduction for Medium Size Operators In response to feedback received from our stakeholders, staff identified opportunities to assist retailers, including storefronts that sell tangible goods and restaurant operators.

Based on the analysis conducted by HdL, retailers represent approximately 10% of the business license tax revenue collected. Over the last five years, the City has seen a downward trend in the total number of businesses in the retail sector. Though the retail sector revenues are increasing, they still have not returned to pre-pandemic levels. Staff recommends a rate reduction of 8% for middle size retailers. This would reduce the tax rate from $1.25 to $1.15 per $1,000 for retailers with gross receipts under $5 million annually. This reduction would put the City’s tax rate for this group lower than the City of Los Angeles, Beverly Hills and Culver City and would reduce the effective rate for medium size businesses. The change would impact approximately 1,800 businesses and result in an annual revenue reduction of approximately $0.1 to $0.12 million.

Proposed
Change
Santa Monica Los Angeles Beverly Hills Culver City
Retailer and
Restaurants
under $5M
75 +
$1.15/$1,000
$1.27/$1,000 $75 +
$1.25/$1,000
$1.50/$1,000
over 200k
Auto Dealer Cap Removal and Separation of Retail and Service Operations

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An auto dealer is defined as the buying and selling of new or used automobiles which includes trailer, campers, accessories and maintenance and repair services as well.

SMMC 6.08.050 states that each franchise is required to obtain a separate license for each location, each franchise reports all gross receipts under a single license. In 1983, the initial auto dealer cap was established as it was thought that due to low profit margins the potential of the auto dealers to pass the cost down to the consumer and consumers would look outside of Santa Monica due to price sensitivity and that could cause auto dealers to relocate outside of the City. SMMC 6.12.010(b)(1) established that the maximum as of fiscal year 1992-93 and each year thereafter is $25,000 with no annual adjustment. Each franchise reaches the maximum business license tax cap of $25,000 at $20 million in gross receipts annually.

Under sections 6.04.060 and 6.08.050 of the Municipal Code, auto dealers are treated differently from other Santa Monica businesses, which are required to obtain a license for each location. Presumably, this allows auto dealers to hit the cap outlined in section

6.12.010 easily at $20 million annually. Staff recommends removing the cap of $25,000 and requiring separate reporting for each activity to ensure that businesses are taxed equitably. Removing the cap and aligning the service component to be taxed as other auto repair operators located in Santa Monica would generate an additional $0.9 to $1.3 million in additional annual revenue and would impact approximately 13 to 16 auto dealer owners.

Proposed
Change
Santa Monica Los Angeles Beverly Hills Culver City
Auto DealerRetailer75 +
$1.25/$1,000
$1.27/$1,000 $75 +
$1.25/$1000
$1.50/$1,000
over 200k
Auto DealerService 75 +
$3.00/$1,000
$4.25/$1,000 Class A | $311+
$0.06539 Per
Payroll Hour
$2.00/$1,000
over 200k
Corporate Administrative Headquarter Rate Increase
The Corporate Administrative Headquarters category is often claimed by the largest corporate entities during the application process, as it is the lowest tax rate and it is the

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easiest rate to calculate. Per SMMC 6.08.080, this classification is taxed based on the cost of operations (rent, payroll and utilities) instead of gross receipts at the lowest tax rate of $1.25 per $1,000. This classification currently applies to businesses whose sole activities from their Santa Monica location consist of providing administrative or management related services, including record keeping, data processing, research personnel administration and legal support to other locations of the businesses in the city. Staff recommends increasing the Corporate Administrative Headquarters rate from $1.25 to $2.50 per $1,000. This change would impact approximately 110 to 120 businesses and would increase annual revenues by approximately $2.1 to $3.1 million annually.

Proposed
Change
Santa Monica Los Angeles Beverly Hills Culver
City
Corporate
Administrative
Headquarters
75 +
$2.50/$1,000
$4.25/$1,000 $311+
$0.06539 Per
Payroll Hour
$3 /$1,000
over 200k

Business License Processing Fee
The City currently does not recover the cost to administer and enforce the BLT program.

Therefore, staff recommends adding a minimal fee per application to recover the costs.

The proposed fee would recover the cost of staff time to review application, enter the application into the business license system, follow up on incomplete submissions, process business license renewals and the issuance of the business license. Currently, Culver City charges a processing fee that is $76 for a new application and $66 for the business license renewal, while the City of Hawthorne charges a $56 processing fee.

The processing fee may be set and amended by resolution by City Council up to the maximum fee of $100. The proposed change would impact all business license holders and would generate an additional $0.8 to $0.85 million in new annual revenue.

Proposed
Change
Santa Monica Los Angeles Beverly Hills Culver City
Processing
Fee
$40 N/A N/A $66-$76

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Administrative Improvements
Along with the tax rate changes proposed above, staff recommends various other administrative changes that are required to simplify the ordinance to make it easier to administer and foster the ability for businesses to understand and comply with the BLT.

There are inconsistencies in terminology, some sections of the code contradict each other and many of the definitions, vital to the administration of the BLT program, need to be modernized. Revisions to the ordinance would clarify all definitions, ensure that terminology is consistent throughout, eliminate provisions that are no longer applicable and ensure that code sections that reference other sections align throughout. The administrative improvements would enable the City to adapt the code to meet current and future business trends. Other administrative clean-up changes that would be proposed when ordinance is revised would include:
• Creating authority for the Finance Director to create administrative regulations to enforce BLT Ordinance to address areas such as the allocation of gross receipts for businesses with operations in multiple jurisdictions and operations with remote employees and related and pass-through entities. • Modernizing the business classifications and related definitions such as the definition of conducting business in the city to better reflect the current and future business operations in the City.
• Codifying the penalty waiver request process and the Voluntary Disclosure process for delinquent and under reporting businesses.
• Clarifying the relationship of the business license to other regulatory permit requirements and clarifying the suspension, revocation and denial process for all applicable licenses and permits.

Next Steps
If Council supports the proposed changes, staff would move forward with conducting a statistical survey of the Santa Monica voters to assess the feasibility of the BLT tax measure; return to Council with the polling results, and if the results are favorable, return with proposed ballot measure language, revised BLT ordinance language, and a

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resolution to place the proposed measure on the November 2024 general election ballot for Council approval.

Past Council Actions
Meeting Date Description
10/25/1983
(attachment A)
Business License Tax Ordinance Changes
4/24/1990
(attachment B)
Substantive and technical changes to the City’s Business License Tax Ordinance
9/24/2013
(attachment C)
Waived past business license taxes and penalties for
Residential Rental of Less than 4 Units and Artists
Operating at the Santa Monica Airport
Environmental Review
This proposal is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The proposal 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 proposal will modernize the business license tax ordinance and will have no physical effect on the environment. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. The proposed Business License Tax modernization effort is estimated to increase General Fund revenues by $2 million to $4 million in annual revenue that will be used to support essential City services. If approved by voters, the changes to the business license tax would go into effect on January 1, 2025 and adjustments to revenue would be incorporated in a future budget cycle.

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Prepared By: Haley Favre-Smith, Business License Administrator Approved Forwarded to Council
Attachments:

A. Attachment A - Business License Tax Ordinance Changes B. Attachment B - Update City Business License Ordinance C. Attachment C - Waiver of Tax for Small Residential Property Owners D. Financial Status Update and FY 2021-22 Midyear Budget (Web Link) E. Written Comments
F. PowerPoint Presentation

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e
20'8- 0/ 5
s-fJCA: RMM: rm6100B
City Councll Meetlnq 10- 25- 83
OCT 25 1983
Santa Monlea, Callfornia

STAFF REPORT
TO: Mayor and City Councll
FROM: City Attorney
SUBJECT: Business License Tax Ordinance
In connection with the aooption of tne 1983- 84 Budget, the City Councll directed the City Attorney to prepare an oralnance making varlOUS changes in the hUSlness llcense tax structure of the Clty of Santa Monlca. In response to tpis olrection, the Clty Attorney presented to the Clty Councll at lts September 27, 1983, Meetlng a proposed ordlnance ~ aking various changes in the business llcense tax structure. Following a public hearing, conSloeratlon of the ordlnance was continued to October 25, 1983.

On October 18, 1983, the Clty Councl1 conducted a study session on the proposed changes to the business llcense tax structure. The acconpanYlna ordlnance reflects tpe varlOUS revlsions discussed by the City Manaaer dllrlng tne studv spssion.

GF,NERAL OVERVIEW
Wlth the adoptlon of the 1983- 84 Budqet, the City Council endorsed bUslness llcense tax changes desiqned to lncrease current flscal year revenues by $ 1. 3 Ml11ion. The Clty Councll has prevlously received a variety of reports summarizinq the r-ff
1 OCT 2 5 1983

11.A.a
Packet Pg. 583 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e
t .
proposed business llcense tax chanoes. The followlnq summarlzes the proposed changes:

1. Tax rates will change, not categories for licenslnq.

The only exceot1on oiscussed helow 16 to chanqe the category of regulated utllltles to re~pond to a constltutional obJection ralsed by one utl1lty. See d16cussion in connectlon with Section 6225A. )

2. 1984- 85.

The tax chanqes wl1l not be fully effect1ve until
For fiscal year 1983- 84, taxes will increase or
decrease by one- half the change requ1red by the new rates, to be collected in special bll1lnq in early 1984.

3. Iod1vHlual firrns may realize tax decreases, tax
lncreases, or no change 1n tax payments. About one- th1rd of the approx1mately 15, 600 llcensees in the City of Santa Mon1ca will not re affected by the tax changes, since they are 10 categories not covered by the proposed ordinance.

4. Tax
urlsdict1ons
Los Angeles.
rates are lower than or
of the clt1es of Beverly
equal to the comparison
Hills, Culver Clty, and

5. The tax rate chancres will not result ln 1ncreased
assesSMents under Ordlnance Number 702 ccs) for businesses located 1n the Downtown Parklng and Buslness ImproveMent Area or Ordlnance NUI'1ber 960 ( CCS) for bus1nesses locaten in t_he Montana Avenue bUs1ness promotlon area.
2 11.A.a
Packet Pg. 584 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) r
e e
The proposed ord~ nance chanqes the tax rate, generally

TAX RATE CHANGES
determined on the baS1S of qross rece1pts, for six aeneral categorles of licensees:

Currently,

1. Profess1ons, Occupations, and Serv1ces.
the business license tax pald by professlons,
MlnimUM
occupations, and serVlces 1S:

T'ax Rate
20 65 per Sl, OOO > $ 6, 000
MaxiMuJ"'l
2, 000
HlnlMUI'1
The revised tax rate containeo in the ord1nance lS:

Jl,1axirnum
S50
Tax Rate
1 per $ 1, 000 > S50, OOO <= $ 100, 000
3 per $ 1, 000 > $ 100, 000
one
ApprOXlwately 3, 399 bUSlnesses wl11 be affected by the proposed amendment. The Munlcipal Code provisions amended to effectuate thls change are Sectlons 6236, 6240, ana 6240A.

2. Retail Sales.

Currently, the business license tax pald by retail sellers lS:

HinlIDuPl
S25
Tax Rate
60 per $ 1, 000 > $ 10, 000
MaximuM
The revlsed tax rate contalneo In the ordlnance is:
2, 000
r>linirouIll
50 Tax Rate
S. 60 per Sl, OOO > $ 50, 000 <= $ 250, 000
Sl. 25 per Sl, OOO > S250, OOO
3 MaXlI'lUIfl
Tone

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Packet Pg. 585 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) It e
Approximately ~, 120 DUS1nesses will he affected by the proposed amendMent. The Hunicipal Code provision aP1.ended to effectuate this chanae 18 Section 6225.

3. Manufacturers and ~ lliolesalers.

Currently, the bUS1ness license tax paid hy manufacturers and wholesalers is:

Minimum Tax Rate Maximum
825 50 per $ 1, 000 > $ 10, 000 5, 000
The revlsed tax rate contalned in the ordlnance lS:

M1n1mum Tax Rate MaX1JTlUM
50 50 per $ 1, 000 > $ 50, 000 <~ $ 250, 000
Sl. OO per Sl, OOO > $ 250, 000
Tone
ApprOX1P1. ately 461 businesses w1ll be affected by the proposed amendment. I'he ~ 1un1clpal Code prov1s1on aMenden to effectuate thls change 15 Sect10n 6226.

4. AutOttlot1ve Dealers.

Currently, the hus1ness 11cense tax pa1d by autoMot1ve
dealers is:

M1nilTlum Tax Rate Maximum
S100 50 per $ 10, 000 > $ 100, 000 1, 000
The rev18ed tax rate contained ln the ordlnance 1S:

H1nimuPl 1'ax Rate Max1mum
SlOO 1. 25 per Sl, OOO 82, 500
The maX1mum tax would be 1ncreased to $ 5, 000 in f1scal year 1985- 86 and each year thereafter.)
4 11.A.a
Packet Pg. 586 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) It e
Aoproximately 46 businesses will he affected hy the
proposed a~ end~ ent. The r1unic1pa1 Code provision amended to effectuate th1s cnange is Sect10n 6209.

5. COMMerC1al Rentals.

Currently, the bus1ness llcense tax paid by co~ erc1al
rental llcensees 1S:

H1nimum Tax Rate MaXlmurn
10 75 per $ 1, 000 > $ 10, 000 None
The rev1sed tax rate contained 1n the ord1nancp 1S:

Mln1mum Tax Rate MaxiPlum
S50 1 per Sl, OOO > $ 50, 000 <~ $ 100, 000
S 1. 25 per $ 1, 000 > $ 100, 000
None
Approx1mately 740 businesses w1l1 be affected by the
proposed a~ end~ ent. T'he Hun1c1pal Code prov1s1on amended to effectuate thlS chanqe 18 Sectlon 6219A.

6. Contractors ann Subcontractors.

Currently, the hus1ness license tax pain by contractors and subcontractors Varles depending upon the type of bUSlness. The following SUI'1JTlarlZeS the current tax structure:

M1nimuJTl Tax Rate MaX1mUPl
40 - SlOO 8. 65 per 81, 000 > 820, 000 None
The revised tax rate conta1ned in the ordinance 1S:

M1ni~ nm Tax Rate MaX1mUJTl
50 1 per $ 1, 000 > S50, 000 <= $ 100, 000

1. 25 per $ 1, 000 > $ 100, 000
one
AnprOX1Mately 4, 371 buslnesses will be affected by the 5 11.A.a
Packet Pg. 587 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
proposed a~ end~ ent. The Munlc1pal Code prov1s1ons aMended to effectuate th1S chanqe are Sectlons 62l2B, 62l2C, and 62l2E.

SECTION BY SECTION ANALYSIS
The following lS a sectlon by section
delet1ons, and add1tions
analysis of the
proposed amendnents, contained 1n the
accompanY1ng ordinance:

Bectlon 6106. Section 6106 has been anended to suhst1tute the D1rector of Flnance for the Clty Clerk. In add1t1on, a provision has been added substitutinq the Director of F1nance for the C1ty Cler~ throuqhout Article VI of tne Munlclpal Code.

Finally, the fee for lssuina a duplicate llcense has been lncreasea fron S. 50 to $ 2. 00.

Section 6107. Seetlon 6107 has been anended to substltute the Director of Finance for the City Clerk.

Beetlon 6116. Seetlon 6116 has been aMended to substitute the Dlreetor of Flnanee for the Clty Clerk~ to require that written statements of licensees be in a prescrlbed format witn specific docuMentation; and to tax businesses w1th mu1tJple locations in the Clty on the basis of total gross recelpts at all locat1ons rather than taxinq each locatlon separately.

Sectlon 6116B. Section 61l6R has been added to provlde a definltlon of gross recelpts. The definition of aross receipts lS consistent with the deflnition of qross recelPts in the Clty 6 11.A.a
Packet Pg. 588 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
of Los Anqeles and surrounding wunic~ pal~t~es. Var~ ous exclusions fro~ aross recelpts are set forth 1n subdivlsion ( c).

As has been previously dlscussed, the ell~~nation of
max1muw taxes lS llkely to raise issues of apportionment. Issues of apportlonment arise when certain
receipts from actlvitles generated from
the City.

Bectlon 6116R provldes that the Clty Councl1 shall adopt businesses have gross
hoth wltnin and without
general apportionment standards by resolution. In addition, t}1e Section provldes that the Pirector of Flnance, w~ th the approval of the C~ ty Attorney, nay adopt rules and requlat10ns relating to apportlonment. A procedure for Clty Councl1 review of the rules and regulations 1S contalned in the Seetlon.

Beetlon 6127. The purpose of this Seetlon lS to describe the operation of the tax rate changes implemented by the accompanying ordlnance.

As the Bectlon indicates, buslnesses subJect to the
changes wllJ recelve 1n Janauary 1984 a special stateMent provlding theM wlth the amount of add1tional taxes owed or the anount of the refund resultlng fron the changes made by the accowpanying ordlnanee. The additlonal taxes or refunds will be calculated by totallng taxes under the old tax structure wlth taxes under the new tax structure, with the total divided by two.

ThlS w1lI result ln an effectlve 1983- 84 bUSlness 11eense tax Wh1Ch is hiaher or lower than the oln. tax by an a~ ount equal to one- half of the aMount of the changes implemented in the acconpanYlng ordlnance. ( For exa~ ple, if the tax under the old 7 11.A.a
Packet Pg. 589 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
law was $ 50. 00 and the tax under the new law was SlOO. OO, the tax for the current year would be $ 75. 00.)
In addition, this Sectlon lS desloned to ensure that
businesses in the Downtown Parking and Ruslness Improvement Area do not pay an lncreased special business llcense tax pursuant to Ordinance KUrlber 702 ( CCS) ln addltlon to any increased bUS1ness llcense tax. Under Ordlnance 702 ccs), a spec1al business llcense tax lS assessed ln the Downtown Park1no and Business I~provement Area. The spec1al buslness llcense tax 1S calculated at five t1mes the regular hUS1ness license tax.

Section 6127 provldes that the business license tax, for purposes of determinlng the speclal business llcense tax required by Ordinance 702 ( CCS), 18 the buslnes8 license tax determlned hy the law 1n effect on July 1, 1983. Accordingly, the amount of the special bUSlne8S ] lcense tax will not increase or decrease 702 ( CCS)
changes in the tax rate conta1ned in the accompanY1nq
In the future, lt may he des1rable to anend Ordinance
to change the spec1al bU51ness license tax rate set
wlth the
ordinance.
forth in that ordlnance. T-Iowever, since a resolution of 1ntentlon 1S reauired before Ordinance Pumber 702 ( CCS) can he amended, Sectlon 6127 prov1des an interin solution to implement the City Councl1' s obJect1ve of not providing an 1ncreased spec1al business license tax ln the Downtown Parkinq and RUS1ness Improvement Area.
8 11.A.a
Packet Pg. 590 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) It e
The Clty has also establ1sned by ordlnance business
pro~otlon areas. See Ordinance Nu~ ber 725 ( CCS) ( Downtown); Ordinance Nunrer 960 ( CCS) ( Montana Avenue).

The Downtown buslness promotion area neternines the amount of the speclal assessnent on the basis of a percentage of taxable sales; accorolngly, the changes l.n the amount of t'be business license tax wlll not change asseSSMents for th1.S proMotlon area.

The Montana Avenue business promotlon area oetermines the a~ ount of tne special asseSSMent on the basis of 25% of the business l1.cense tax with a mlnlmUM of S25 and a naX1.Mum of $ 200.

Because the amount of the speclal asseSSMent is tled to the bus1.ness llcense tax, Sectlon 6127 provldes that the business llcense tax, for purpose of determlnlng the spec1.al business license tax required by Ordlnance Nu~ ber 960 ( CCS), is the buslness llcense tax oetermlnen by the law in effect on July 1, 1983. Accordinqly, the a~ount of the special business license tax for the Montana Avenue business proMot1. 0n area will not lncrease or decrease wlth the changes In the tax rate contalned ln the acconpanY1. nQ ordinance.

Flnally, Sectlon 6127 provides in suhnlvlsion ( d) that the Clty Manaqer will prepare a report for the Cltv Cauncll on or before June 1, 1985, describlnq the operatlon of the changes in the tax rate structure, the approprlateness and tax lncidence of rates, the revenue proouced, and recommendations concerning any adJustments In the rates.
9 11.A.a
Packet Pg. 591 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
Sectlon 6209. Bectlon 6209 has been a~ ended to chanae the tax rate for auto and trailer sales husinesses frow $ 100 minimum plus S. 50 per each $ 10, 000 of gross receipts in excess of 100, 000 up to a ~ aximum tax of Sl, OOO to S100 ~ inlmum or $ 1. 25 per each $ 1, 000 of gross receipts, whlchever lS greater, up to a aX1num of $ 2, 500 until 1984- 85 and $ 5, 000 10 1985- 86 and thereafter.

Section 62128, 6212C, and 6212E. Currently, contractors and subcontractors, depend1ng on the type, pay a mlnlMUM llcense fee ranglng froM 540 to 5100. In addition, a qross receipts tax of S. 65 is leV1ed on each Sl, OOO 1n excess of $ 20, 000. The proposed ord1nance aMends these sections to provlde for a unifo~ minimuw tax of $ 50 plus $ 1. 00 for each $ 1, 000 of gross receipts 1n excess of $ 50, 000 and less than or equal to S100, 000 and $ 1. 25 for each SI, OOO of aross recelpts In excess of SlOO, OOO.

Section 6719A. Sect10n 62l9A has been aMended to change the tax rate for cOMmercial rental bUS1nesses from $ 10. 00 ~ lnimum plus 8. 75 per each Sl, OOO of gross receipts in excess of SlO, OOO to S50 minimum plus $ 1. 00 per $ 1, 000 of gross receipts ln excess of $ 50, 000 and less than or equal to S100, 000 and $ 3. 00 per 1, 000 of gross recelpts in excess of $ 100, 000.

Seetlon 6223. Sectlon 6223 establishes the tax rate for loans, buildlng and loans and savlngs and loans businesses at a flat rate of S100. In the earlier verSlon of thlS ord1nanee, th1S Seetlon was aMended to increase the tax by taxinq cross 10 11.A.a
Packet Pg. 592 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
recelpts. In response to varlOUS concerns,
amendment to this Section has been eli~inated.
the proposed
Section 6225. Bectlon 6225 has been amended to change the tax rate on retall sellers from $. 60 per $ 1, 000 of qross reeelpt~ ln excess of SlO, OOO up to a ~ aX1Mun tax of $ 2, 000 to $ 50. 00 plus 60 per $ 1, 000 of gross recelpts In excess of $ 50, 000 and less than or equal to S250, OOO and $ 1. 25 per Sl, OOO of aro~ s receipts ln excess of $ 250, 000 with no rrtaximuITl tax.

Beetlon 6225A. At the present tl~e, certain cross
and service rate. In response
the professional,
to the proposed
will result in
recelpts of
occupational,
chanqes ln
utilltles have been taxed at
the tax rate structure, wh 1ch
professional, occupatlonal and serVlce llcensees paY1ng more than reta11 and Manufacturlng 11censees, General ' J'elephone COJ11pany contacted the City and lndicated that a category change was appropriate.

Artlcle XIII, Bectlon 19 of the Constitutlon of the State of Callfornla provldes that the City may not tax utilities ln an aITlount " wn1ch differs from that imposed on mercantlle, rnanufactur~ nq, and other bus1.ness corporations." Gi yen tP1S constitutional prOV1Slon, the C1ty Attorney recommends that utll1.tles subject to this const1. tutional provlslon be taxed at the rate qenerally appllcable to retall sellers. ny belng placed in thlS category, WhlCh was recommended by General ' J'elep~one COITlpany, utilltles wlll be taxed In conformity wlth the taxes assessed on tpe overwhelmlng number of buslnesses falling within 11 11.A.a
Packet Pg. 593 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
the deflnitlon of mercantlle, anufacturlng, and other buslness corporatlons. See City of LlverMore v. Pacific Gas & Flectric Co., 120 Cal. App. 3d IDOl, 175 Cal. Rptr. 100 ( 1981).

Section 6226. Sectlon 6226 has heen amended to chancre tne tax rate on manufacturers- wholesalers from $. 50 per Sl, OOO of gross recelpts ln excess of $ 20, 000 up to a MaXlmu~ tax of $ 5, 000 to S50. 00 plus $. 50 per Sl, OOO of gross receipts In excess of 50, 000 and less than or equal to $ 250, 000 and $ 1. 00 per $ 1, 000 of gross recelpts ln excess of S250, 000 with no MaXlmum tax.

Sectlon 6736. Sectlon 6236 has been amended to change the tax rate on professionals from $ 20. 00 Mlnimum plus $. 65 per 1, 000 of gross receipts ln excess of 86, 000 up to a maximum tax of S2, OOO to S50. 00 Minimum, plus Sl. OO per $ 1, 000 of Gross recelpts ln excess of $ 50, 000 and less than or equal to S100, 000 and $ 3. 00 per $ 1, 000 of gross receipts ln excess of S100, 000, wlth no maxiMUM tax. The new sectlon also suhstitutes the Director of Finance for the City Clerk.

Section 6240. Beetlon 6240 has been amended to chancre the tax rate on services businesses froP1 $ 20 roinimum plus $. 65 per 1, 000 of gross recelpts in excess of S6, OOO to $ 50. 00 rrtiniMurn, plus $ 1. 00 per Sl, OOO of gross recelpts in excess of S50, 000 and less than or equal to $ 100, 000 and $ 3. 00 per $ 1, 000 of gross receipts in excess of 8100, 000, wlth no IT'aximum tax.

Bectlon 6240A. Sectlon 6240A ~ as been repealed to
e1iMlnate the maXlmUM tax liMlt of $ 2, 000 on services businesses. 12 11.A.a
Packet Pg. 594 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

11.A.a
Packet Pg. 595 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
CA: RMM: rm6100R
City Council Meetlnq 10- 25- 83 Santa Monica, Callfornla ORDINANCE ~~ MRER
Clty Council series)

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MONICA
AMENDING SECTIONS 6106, 6107, 6116, 6209,
6212B, 6212C, 6212E,
6219A, 6225, 6226, 6236, AND 6240
OF THE SANTA ~ ONICA MillJICIPAL CODE,
REPPALHm SECTIOt-- T6240A OF THE
SANTA MONICA MillTICIPAL CODE,

TD ADDING SECTIONS
6l16B, 6127, AND 6225A
TO THE SA1ITA MONICA MlmICIP~ L CODE
RELATING TO THE BllSINESS LICENSE TAX

THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES OPDAIN AS FOLLOWS:

SEC' TIOF 1. Section 6106 of the Santa Monica ~ unicipal Code is aMended to reac as follows:

SECTION 6106. Dlrector of Finance to
Issue.
a) The Licenses required by thlS Code
shall be issued by the Director of Finance
and shall state thereln the amount thereof,
the period of tlMe covered thereby, the name
of the person to whom lssued, the buslness
licensed and the locatlon or place of
bUSlness where such buslness is to be carrled
on.
1 11.A.a
Packet Pg. 596 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
b) No 11cense granted or issued under
provlslons of the Code shall be in any manner
transferred or asslgned.
c) The Dlrector of Flnance shall Make
a charge of S2. 00 for each duplicate llcense
issued under the provisions of thlS Code
Wh1Ch has been lost or destroyed.
d) In no case shall any mistake made
by the Dlrector of Flnance 1n stating the
amount of a llcense prevent or preJudice the
collect1on by the City of the aRount actually
due froM any licensee.
e) ~ fuenever 1n thls Article the City
Clerk 1S charged w1t~ the respons1h111ty of
processing, 1ssuing, or admin1stering a
license or permlt, the reference to the C1ty
Clerk shall be deemed a reference to the
D1rector of F1nance.

SECTION 2. Section 6107 of the Santa ~ onica Municipal Code lS aMended to read as follows:

SECTION 6107. Term of L1cense.
a) All license fees shall be paid in
advance 1n legal money of the Un1ted States,
at the office of the D1rector of F1nance. A
separate license must be obta1ned for each
branch establlshment or separate place of
bus 1nes s, 1n which bUS1ness is carried on,
2 11.A.a
Packet Pg. 597 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
and eacn
obtalnlnq
descrlbed
locatlon
license shall authorize the party
lt to operate only tl1at huslness
ln such llcense, and onlv at the
or place of business which is
indicated thereby.
b) Fvery weekly license s~ all expire
at midnlght on the Sunday next succeedinq its
day of lSSUance.
c) Every monthly llcense shall explre
at ~ ldnlght of the last dav of the Month
nuring WhlCh it was lssued.
d) Every annual llcense shall expire
at mldnlght on the June 30th next succeeding
its issuance unless specified otherWlse in
this Code.
e) In the event a bond is required no
llcense shall be lssued until said bond has
been flIed with the Dlrector of Flnance.
f) No greater or lesser amount of
money shall be charged or received for any
11cense than is provlded in thlS Cone, and no
license shall be sold or issued for any
Derlod of tlme other than lS provided in thlS
Code.

SECTION 3. Seetlon 6116 of the Santa ~ fonica lVIunJ_ Clpal Code 1S amended to read as follows:
3 11.A.a
Packet Pg. 598 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
SECTION 6116. Statement of LJcensee.
a) In all CRses where the a~ ounr of
11cense to be palo by any person lS haseo
upon the amount of receipts, or sales or of
business transacted, or upon t~e nUMber of
persons employed or upon the nUMher of wagons
or other vehicles, used, or upon the amount
of the maX~ MU~ admiss10n fee charged, or upon
the number of tables or cha1rs used for any
gaMe or upon the nUMber of units in any
buildlng or upon the Aea~ inq capaclty, such
person, hefore obtainlng a license for such
bus1ness and with1n tnlrty ( 30) days after
the beqlnning of eac~
file with the Director
llcense perio~, shall
of Flnance a wrltten
statement 1n the form requlred by the
Director of F1nance, supported by such
documentation requested by the Dlrector of
Flnance, showlng the total amount of receipts
or sales or of bUS1ness transacted durlng the
preceding 11cense year, or the number of
wagons, or other vehicles used or the amount
of the Maximum admisslon fee charged, or tne
number of unlts contalnec'l 1n such building,
or the seating capacity at the date of SUCD
statement.
4 11.A.a
Packet Pg. 599 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
b) If two or More closely related
buslnesses are carrled on at the same
locatlon and under the same ownership and the
ruslnesses are on a gross receipts basls, the
gross recelpts shall be reported together and
the greater of the rates applicable will be
used for the compllation of the annual
llcense fee. vfuen two or more non- related
buslnesses are operated at one locatlon,
separate 11censes shall be requlreQ.
c) If any person 18 requlred to have
two or more licenses subJect to a llcense fee
under Sections 622S, 6225~, 6226, 6236, or
6240 of thls Code, the person shall pay, in
additlon to the rrini!T1um annual license - Fee
for each llcense, a single llcense fee for
all licenses computed on the baS1S of the
total gross recelpts of all 11censes.
d) No stateMent filerl pursuant to
thlS Sectlon shall be concluslve upon the
City or upon any offlcer thereof as to tne
matters therein set forth, and the same shall
not preJudice the rlght of the Clty to
recover any amount that May be ascertained to
be due from such person 1n addition to the
amount shown by such state~ent should lt be
found to be 1ncorrect.
5 11.A.a
Packet Pg. 600 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
e) If any person required to f~le any
statement pursuant to thlS Sectlon shall fa~ l
to do so, such person shall he requ~ red to
pay a license fee at the max~ mum rate herein
prescribed for t}-le bUS1ness carr~ ed on by
such person and shall he guilty of a
v1olat1on of th1s Code and shall be
punishable therefor as hereinafter provided.
f) In any case where the
11cense lS to be 1ssued for a
f~rst
newly
established bus1ness, t~e Minimum tax for
that
the
type of business shall be pa~ d, and at
termination of the l~cense perlod dur1ng
wh~ ch the operation of such bus~ ness is
cOJT11Tlenced, the
period shall be
manner provided
license for such license
adJusted
by this
and paid in the
Section for the
ascerta1ning and paY1ng of l~censes for otper
license per~ods, after deductlng frOM the
amount so found to be due the aJl10unt pald at
the time such first l~cense was issued.
g) The correctness of any statement
flIed pursuant to this Sect10n shall be
subJect to aud1t and verif~catlon by the
D1rector of Flnance, who ~ s hereby autporized
and empowered to ~ nspect and audit the books
and records of any and all persons licensed
6 11.A.a
Packet Pg. 601 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

11.A.a
Packet Pg. 602 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) It
SECTION 6209. Auto and Traller Sales.

BUYlno, selling or offering for sale new or
used automobiles, trucks, trailers, house
trallers, or campers, including parts and
repairs, the annual llcense fee shall he
SlOO. OO or $ 1. 25 per each $ 1, 000 or fraction
thereof of gross receipts, whlC'hever lS
greater. In no event shall any license fee
required to be paid pursuant to thlS Section
be in excess of 52, 500 for license year
1983- 84, $ 2, 500 for llcense year 1984- 85, and
5, 000 for license year 1985- 86 and each
license year thereafter.

SF:CTIOF 5. Sectlon 6212B of the Santa Monica Munlclnal Code lS amended to read as follows:

SECTION 6212R. Sub or Specialty
Contractors and RUlldlno Trades. Enqaging in
any of the ~ ollowing listen buslnesses, tne
annual 11cense fee shall be $ 50. 00.
1 . Awnlnq.

2. BOllers, not water hearting, steam
flttlng.

3. Burglar Alarm.

4. Cabinet and mill work.

5. CeMent and concrete.
8 11.A.a
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11.A.a
Packet Pg. 604 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e

30. 31.

32. 33.

34. 35.
e
Sprinklln9.

Steel.

Tile ( cera~ ic and mosaic).

Weather stripping.

Vlelchng.

Well drlllinq.

Lathlnq and plasterina comb~ ned and w~ o
hold a state 11cense for both and who uses
hlS or her own eMployees to do both may be
issued one license coverlng both businesses
for the annual 11cense fee of $ 50. 00.

SECTION 6. Section 6212C of the Santa Monica
Municlpal Code lS amended to read as follows:

SECTION
contractors.
followlng
6212C. Subcontractors,
Engaging in any of the
11sted bus~ nesses, the annual
license fee shall he S50. 00.

1. Plumbinq Contractor.

2. Heatinq Contractor.

3. Electrlcal Contractor.

SECTION 7. Sectlon 6212E of the Santa Monlca
Munlcipal Code is amended to read as follows:

SECTION 6212E. Gross Receipts ln
Seetlon 6212,
Excess of $ 50, 000. Any person oescribed in
62l2B, and 6212C whose gross
recelpts from work performed ln the Clty of
10 11.A.a
Packet Pg. 605 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
Santa Monica exceed S50, 000 ln additlon to
the fee herelnabove set forth, shall be
requlred to pay an addltional annual license
fee of $ 1. 00 per each $ 1, 000 or fraction
thereof of gross reeelpts ln excess of
50, 000 and less than or equal to $ 100, 000
and $ 1. 25 per each $ 1, 000 or fraction thereof
of gross recelpts ln excess of S100, OOO.

SECTION 8. Section 6219A of the Santa Monlca Hunlcipal
Code is a~ ended to read as follows:

SECTIO~ 6219A. COflmerclal Rental. Any
person, group, aSRoelatlon, partnershlp, fir~
or corporatlon, whether as the owner or as
t~e agent for the owner, who rents, leases or
has avallable for rent or lease, one or more
co~ ercial bUlldlnq, industrla1 bUlldinq,
offices or offlce building, land or vacant
lots that May be utlllzed for commerical,
lndustrial or offlce uses, whether at one or
multiple locatlons, the annual 11cense fee
shall be $ 50. 00 plus $ 1. 00 per each $ 1, 000 or
fraction thereof of gross recelpts in excess
of $ 50, 000 and less than or equal to $ 100, 000
and Sl. 25 per each $ I, OOO or fraction thereof
of qross receipts in excess of $ 100, 000.

SECTION 9. Section 6225 of the Santa Monlca Munlclpal Code is amended to read as follows:
11 11.A.a
Packet Pg. 606 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e
SECTION 6225. Merchants- Retail.

Manufacturlng ann selllng anv Goons, wares or
merchandise at retall or selling any goods,
wares or merchandlse at retail and not
otherwise speclflcally llcensed by otper
provisions of thlS Code, or not specifically
exempted from the pa~ ent of llcenses by this
Code, the annual license fee shall be $ 50. 00
mlniMum, plus 60 per each $ 1, 000 or
fraction thereof of gross receipts ln excess
of SSO, OOO and less than or equal to $ 250, 000
and $ 1. 25 per each SI, OOO or fractlon thereof
of gross recelpts ln excess of $ 250, 000.

SECTION 10. Section 6226 of the Santa Monica Municlpal
Code lS amended to read as Tollows:

SECTION 6226. ManufacturersHholesalers. Manufacturlng and selllnq any goods, wares, or Merchandlse at wholesale or
selling
wholesale
goods, wares, or Merchandise at
and not otherwJ_se specifically
llcensed by other provisions of this Code, or
not speclflcally exeMpted from the payment of
licenses by thlS Code, the annual license fee
shall be $ 50. 00 ~ lnlmu~, plus $. 50 per each
1, 000 or fraction thereof of gross recelpts
ln excess of $ 50, 000 and less than or equal
to $ 250, 000 and $ 1. 00 per each $ I, OOO or
12 11.A.a
Packet Pg. 607 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
fractlon thereof of oross recelpts in excess
of $ 250, 000.

SECTION 11. Section 6236 of the Santa Monlca Municipal
Code 18 amended to read as follows:

SECTION 6236. Professional. Any
person, qroup, association, partnersDlp, firn
or corporat~on engaoed in a professlon,
voeatlon or call1ng, llsted hereinafter or
not speciflcal1y provldeo for In any other
Sectlon of this Code, the annual license fee
shall be S50. 00 plus Sl. 00 per each $ 1, 000 or
fraction thereof of gross recelpts In excess
of 850, 000 and less than or equal to $ 100, 000
and $ 3. 00 per each SI, OOO or fraction thereof
of gross recelpts ln excess of $ 100, 000.

The professions, voeatlons or callings
referred to herein lne1ude,
11mited to the fo11owlng:
but are not
l. Accountant.

2. Appraiser.

3. Archltect.

4. Assayer.

5. Attorney- at- law.

6. Auditor.

7. 13acterlologist.

8. Bond Broker.
13 11.A.a
Packet Pg. 608 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

11.A.a
Packet Pg. 609 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e

35. Optician.

36. Optometr1st.

37. Osteopath.

38. Physlc1an.

39. Psych~ atr~ st.

40. Public~ ty Agent.

41. Real Estate Broker.

42. Stock Broker.

43. Surgeon.

44. Surveyor.

45. Tax Counselor.

46. Veterlnary.
fuenever a State of California license
1S requ1reo to entitle a person to practice a
professlon, the D1reetor of Finance may
require, before issuing a llcense pursuant to
this Sect lon, the applicant to exh~ nit an
unexp1rea ana unrevokeo license entltling
sald applicant to practlce in the State of
Californ1a.

SECTION 12. Sectlon 6240 of the Santa r-10nica Municlpal Code 18 amended to read as follows:

SECTION 6240 . Serv1ces. Selling or
hich 1S not provldlng for pay any serV1ce
otherwise speciflcally licensed by other
provisions of thlS Code, or not speciflC'ally
exe~ pted from the payment of licenses by th1S
15 11.A.a
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11.A.a
Packet Pg. 611 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

10. 11.

12. 13.

14. 15.

16. 17.

18. 19.

20. e
Booking or Theatrical Agent.

Brokerage, Stocks and Bonds.

Caterer.

Check Casninq.

Collection Agency.

Co~ erclal Art1st.

Consultant.

Data Proeesslng.

E~ ploYMent Bureaus.

Gardenlng and Landscapino.

Fouse, COfTll"lerc1al Ru~ ldlnq,
Industrial Plant, etc., cleaninq, includln0
janitorlal, household furnishings and
window- washlng services.

21. 22.

Illustrator.

Institutions, schools, or persons
engaged In the bUS1ness of providing for pay
lnstructlon 1n such matters as art, aviatlon,
beauty culture, self- defense, trade or
business or other accoMplish~ ent. A permit
is reau1rerl for dance and physical culture
lnstruction prlor to licenslng ( see Sections
6120 and 6122). ThlS sub- section shall not
apply to any gymnaslum conducted in
connectlon wlth any private club or any
publ1C or private school where other courses
of lnstruction are given.
17 11.A.a
Packet Pg. 612 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

23. Letter
Agency.

Jrltinq or Addressing

24. 25.

Lithographer.

Masseur or Masseuse. A per~it is
prl0r to lieenslng ( see Sections requlred
6120 and 6122).

26. ~ 10rtlclan.

27. Odor Control.

28. Private Investiqation, Patrol or
Securlty Aqency.

29. Publ1C Stenographlc SerV1ce.

30. Rental of Vehlcles, Trailers,
Appl1ances, etc.

31. Repalr service of any type when not
ln conjunct~ on wlth a bus1ness already
llcensed.

32. Research Firm.

33. Storage or Warehouse Facilities.

34. Tallors or Dressmakers.

35. Telephone Answer1ng Service.

36. Ticket Agency.

37. Tree Care.

38. Typewrlter Pepalr.

SECT ION 1 3 . Sect10n 6240A of the Santa Monica Munlcloal Code lS repealed.

SFCTION 14. Sectlon 6116B 1S added to the Santa Monica
Munleipal Code to read as follows:
18 11.A.a
Packet Pg. 613 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

11.A.a
Packet Pg. 614 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) 2) The a~ ount of any federal
manufacturers' or importers' eXC1se tax
lnc1uded ln tDe price of property sold, even
though the Manufacturer or importer is also
the retailer thereof and whether or not the
amount of such tax is
charqe.
stated as a separate
3) In connection wlth a person
leaslng or rentlng property, all aMounts paid
by a tenant to a lessor for the services
performed, or Materlals used, or util1tles or
facili tles furnlshed by tDe lessor on the
premlses or 1n connectlon with the tenant' s
use, possession, or the rlght to possess the
property; any recelpts paid by a tenant to a
lessor for the use or possession of land, or
the right to use or possess land other than
that upon which the bUlldlng or structure is
located but WhlCh lS used or possessed or is
available for use or possesslon hy a tenant
for purposes related to the tenancYi and all
anounts palO as prepald rent.
4 ) Recelpts of any person
received as commiSSlons or fees earned, or
charges of any character Made or compensatlon
of any character received, for the
performance of any service by sald person or
20 11.A.a
Packet Pg. 615 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) any of sald person' s eMployees and receipts
of any person reee1ved as partial or full
COMpensatlon or relMbursenent for salaries,
payroll taxes, frlnge heneflts and any and
all simllar expenses for persons who are
employees of said person and reC€ lpts of any
person recelved as part1al or full
compensatlon or re1mbursement for equipI'1ent,
supplies, utlllt1es, or other 1tems or
serVlces acquired by sald person ln that
person' s naMe and used or consumed ln the
perforMance of serVlces.
c)
lnelude:

Gross receipts" sha 11 not
I) The anount of any federal
tax imposed on or with respect to retail
sales whether lmposed upon the retaller or
upon the consumer and reqardless of whether
or not the aMount of federal tax lS stated to
customers as a seoarate charge.
2) Any California state, Clty,
or city and county sales or use tax requlred
bv law to be lncluded in or added to the
purchase prlce and collected froM the
consUMer or purchaser.
3) Such part of the sales prlee
of any property previously sold and returned
21 11.A.a
Packet Pg. 616 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
hy the purchaser to the seller wh~ ch is
refunded hy the seller by way of cash or
credit allowances given or taken as part
payment on any property so accepted for
resale.
4) Cash discounts allowed or
taken on sales.
5) Rece1pts of persons acting
as agents or brokers, other than receipts
reeelved as commissions or fees earned and
other than net lnterest incoMe earned fro~
marg ln ac count loans, or charges of any
character Made or cOMpensation of any
character received for the perforwance of any
serVlce as aqent or brOKer: provided,
however, any agent or broker dealing in
stocks or other sl~ilar wrltten lnstruements
eVldenelng a riq~t to participate in the
as se ts of any buslness, or deallng 1n bonds
or other evidences of indebtedness, who also
deals in such property as a pr1nc~pal, shall
lnclude in qrass recelpts the a~ ount of
tradlng proflts resulting frOM such dealings.
6) Any refundable deposlt wh~ ch
is returned to the depositor.
7) Gross reeelprs from any
actlvity for which a business 11cense would
22 11.A.a
Packet Pg. 617 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
not be requlreo under this Code and WhlCh is
received from incidential actlvltles of the
llcensee.
of
8) That portion of the receipts
a qeneral contractor 11censed under
Sections 6212, 6212R, 6212C, or 6212F. WhlCh
represents
provlded such
payments to subcontractors
subcontractors are licensed
under the provlsions of thlS Chapter and that
the qeneral contractor furnishes the Dlrector
of Flnance with the names and addresses of
the subcontractors ana the amounts pain to
each subcontractor.
9) Gross rece1pts attributable
to sales withln a slngle business entlty when
no net ga1n results,
corporatlons when one
lnterest in the
including affiliated
has at least an 80%
other, wholly- owned
eorporatlons, and partnershlps and partners.
10 ) Rad debts taken froM qross
recelpts reported durlna a prior tax year ln
accordance with generally acceptable
accountlng practlces.

II) Anythlng whleh the City of
Santa Monica nay not lawfully lnclude by
virtue of the Constitution of t"he Unlted
23 11.A.a
Packet Pg. 618 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) It e
States or the Constitutlon of the State of
Californla.
d) When, by reason of the provislons
of the Constltution of the United States or
the Const1tut~on of the State of Cal1fornia,
the bUS1ness license fee lmposed by this
Article cannot be enforced without there
be1ng an apportionMent according to the
aMount of buslness done 1n the city of Santa
on1ea, or ln the State of Cal1forn1a, as the
case may be, apportlonment rules shall he
established as follows:

I) The Clty Council from time
to tlme shall adopt by resolution general
gUldelines for apportlonment.
2) The Director of Plnance,
wlth the approval of the City Attorney, May
ake such rules and regulations for the
apportionment of tne tax as are necessary and
deslrable to overCOMe the constitutional
Ob] ect1ons and WhlCh are conslstent with the
general apportlonment Guidelines adopted by
resolution of the Clty Councll. The Dlrector
of Flnance snaIl publish such rules and
regulatlons once ln a newspaper of general
clrculation withln the C1ty of Santa Monica.

Wlthln IO days of the date of publication of
24 11.A.a
Packet Pg. 619 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
such rules and regulations, any lnterested
person may file a request with the City Clerk
that the Clty Council review the rules and
regulatlons so published. The rules and
regulations shall be flnal at the expiration
of the perlod for requesting review ln the
event no reauest for review lS flIed, or ln
the event of the fllinq of a reouest for
reVlew, when the rules and requlatlons have
been aoopted by the C1ty Councll.
3) The apportlonment shall be
ade on the bas~ s of payroll value and Sltus
of tanqlble property, general expense, or by
reference to any other method of
apportionment as wlll fairly determine the
a~ ount of gross recelpts derived from or
attrlbutable to engaginq in bUSlness in the
Clty. Gross reeelpts derived from lsolated
or occasional transactlons at places outside
the City but with~ n the State of California,
where the llcensee is not regularly engaged
ln a course of business transactions shall be
deemed gross receipts derlveo frOM enoaglna
in bUSlness in the Clty. Gross rece~ pts
derlved from or attributable to sources
wlthin the Clty lnclude gross receipts from
tanglble or lntanglble property located or
25 11.A.a
Packet Pg. 620 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
having a Sltus 1n the City and, when not
contrary to la'tT, <?, TOSS rece1.pts from any
aetlv1tles carrled on ln the C1.ty reqardless
of whether carrled on in 1nterstate,
1ntrastate, or fore1qn commerce.

SECTION 15. Section 6127 is added to the Santa
Monlca Mun1cipal Code to read as follows:

SECT ION 6127. Operation of
1983- 84 Tax Rate Changes.
a) The amendments to Sectlons
62 09 ,
62 25A,
6212R, 6212C, 62l2F, 6219A, 6225,
6226, 6236, 6240, and 6240A contained
1n the ordinance adopting thlS Section shall
be effect1ve for license year cOMmencing on
July I, 1983, and ending on June 30, 1984, as
follows:
1) The annual license fee
required by such Sectlons shall be determined
on the basls of the aross receipts reported
in license year 1983- 84 ln accordance with
this Code.
2 ) The annual license fee
required by the predecessor of such Sections,
as effectlve prlor to the date of of adopt1on
of the ordinance adopting this Section, shall
be deter~ ined on the basis of qross recelpts
26 11.A.a
Packet Pg. 621 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
reported in license year 1983- 84 in
accordance wlth thlS Code.
3 ) Th e amount determined. In
accordance with subdivls10n ( a){l) of this
Sectlon and the aMount r'!eterJluned in
accordance with subch vislon ( a) ( 2) of this
Section shall he totaled and divided hy 2.

The aMount deterMlned ln accordance wlth this
suhdivis10n shall be the amount of the annual
llcense fee for license year 1983- 84.
4) If a person has previouslv
paid to the C1ty an annual license fee for
llcense year 1983- 84 WhlCh is less than the
aMount deter['luned ln accordance with
subdlvlsion a) ( 3) of this Sectlon, the
person shall pay to the Clty on or before
March I, 1984, an aMount equal to the
dlfferenee between the annual license fee
determlned in accordance
a) ( 3 ) of this Bectlon
with
and
subdlvision
such arn.ount
prev10usly pa1d not lnclur1ing any penalties.
5 ) If a person nas previously
paid to the Clty an annual license fee for
l.l.cense year 1983- 84 ,,, hi en 18 greater than
the aMount determinec'l. ln accordance with
subdlvision ( a) ( 3) of thlS Section, the Clty
shall refund to the person on or before March
27 11.A.a
Packet Pg. 622 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
1, 1984, an amount equal to the difference
between such amount prevlously paid not
1ncludlng any penaltles and the annual
license fee determlned ln accordance with
subdivlslon ( a) ( 3) of th1S Section.
6 ) For llcense year 1983- 84
only, and from the effectlve date of this
Sectlnn, in 11eu of the penalties provlded
for ln Sections 6109 and 6112 of thlS COQe, a
penalty of twenty- five percent ( 25%) shall be
lmposed on the anount of the annual 11cense
fee determlned in accordance with subdlvision
a) ( 3) of tlns Section. No person shall be
entltled to a refund of any penalties paid
prior to the effectlve elate of tJois Section.
7 ) In addition to the penalty
imposed by subdlvlsion ( a) ( 6) of this
Sect lon, a penalty of twenty- flve percent
25%) shall he i~posed on the amount of any
annual 11cense fee determined in accordance
wlth suhdlVlsion ( a) ( 3) of thlS Section
remalninq unpa1d after March 1, 1984.
8) The Dlrector of Flnance
shall mall to all persons subJect to an
annual llcense fee pursuant to the Seetlons
set forth ln subd1vlsion ( a) of thlS Sectlon,
a statement setting forth the determination
28 11.A.a
Packet Pg. 623 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) e e
of the annual license fee for license year
1983- 84.
b) The Seetlons described ln
subch vlsion ( a) of this Section shall be
fully effectlve, wlthout regard to
suhdlvlsion ( a) of this Sectlon and without
other proratlon or other reductlon, except as
required by other provls1ons of this Code,
for l1cense year 1984- 85 and each llcense
year thereafter.
c) For those Dersons suhJect to the
annual license fee required by Sectlons 6209,
62l2R,
6226,
ccs )
6212C, 6212F, 6219A, 62::> 5, 6225A,
6236, ann 6240, the special bUSlness
fee requ1ren by Ordlnance Number 702
or Ord~ nance Number 960 ( CCS) shall be
11cense
netermlned on the bas1s of the annual 11cense
fee netermined in accordance with subdivislon
a)( 2) of this Seetlon.
d) On or before March 1, 1985, the
City Manager shall prepare a wrltten report
to the Clty Council descrlblnq the operat1on
of the tax rate chanqes made by the
amendments contalned In the ordinance
adopting thlS Section, lncluding the
appropriateness and tax incldence of rates,
the revenue produced, ana recoMmendatlons
29 11.A.a
Packet Pg. 624 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) f . . e e
concernlng any adJustment in the rates. If
the revenues generated by the tax rate
changed made by the aMendMents contalned in
ordlnance adopting this Sectlon substantially
exceed proJected revenues from the changes,
the Clty Council shall conslder a downward
adJustroent of the rates.

SECTIO!\ T 16. Sectlon 6225A lS aoded to the Santa ~ onica Hunlc1pal rooe to read as follows:

SECTION 6225A. Annual License Fee of
ReQulaterl Utillties.
this Code an annual
Whenever bv vlrtue of
license fee is requlred
to be pald by any ut1lity subJect to Artlele
XIII, Sectlon 19 of the Constltutlon of tpe
State of Callfornia, the annual license fee,
notwlthstandinq any provislon to the contrary
contalned in th1S Code, shall be $ 50. 00
Mlnimum, plus $. 60 per each $ 1, 000 or
fraction thereof of gross receipts in excess
of S50, OOO and less tran or equal to S250, OOO
and Sl. 25 per each Sl, OOO or fraction thereof
of gross recelpts In excess of S250, OOO.

SECTIO~ 17. Any provislon of the Santa Monica Municlpal Code or appendices thereto inconslstent witD the provisions of thlS ordlnance, to the extent of such lnconsistencies and no further, are nereby repealed or ~ odlfied to that extent necessary to affect the provlslons of this ordinance.
30 11.A.a
Packet Pg. 625 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization)

11.A.a
Packet Pg. 626 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) I ,.. e
Santa Monica Bar Association
225 Santa Momca Boulevard ' 7
SUite 906. Crocker Bank BUlldmg ~ tf!? 8--0/<3
Santa Momca, Cahforma 90401
213) 451- 5633
October 25, 1983
b---
t R
Honorable Ken Edwards, Mayor
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Re: Business License Tax Increase Ordinance
Dear Mayor Edwards:

The Board of Trustees of the Santa Monica Bar Association held a Special Meeting October 24, 1983 to consider whether the Bar Association should take a position pro or con on the above matter which we understand will be before you this evening for first reading. t1
The following resolution was duly adopted at the meeting ( 6 in favor, 1 opposed, and 1 abstention):

RESOLVED: That the Board of Trustees of the Santa Monica Bar Association opposes the proposed increase of the
business tax for the professions, occupations and services catagory by the City Council of the City of Santa Monica.

I was asked to express the position of Board of Trustee of the Bar Association on the issue. Briefly stated, their opposition to the proposed increase appears to be based upon strong feelings that the same is both discriminatory and arbitrary.

These complaints go to the aspects of the nature of the tax itself, being based in the particular catagory mentioned, on Ugross receiptstf without regard to the expenses involved in generating the same, or put in a different manner, the profit involved. It was generally felt that to tax substantially in such a manner was not an appropriate way to fairly share the tax burden. Also, even the so- called " compromise" proposal does not appear to fairly treat those in the middle and upper or top catagories and cannot but have adverse effects on professional services available and the costs thereof in the community.

V7~
tfff-!ft: Z
DURST
President

11.A.a
Packet Pg. 627 Attachment: Attachment A - Business License Tax Ordinance Changes (6198 : Business License Tax Modernization) t>~IfFr i-ARi ~ lt 1~
California
CA: RMM: moxBO/ hpw
City Counci1 Meeting 4- 24- 90 Santa Monica,
P. -r_:~ CO /
v '--
STAFF REPORT 2or~tJ /
TO: Mayor and City council
FROM: City Attorney
Ordinance Repealing Various sections of Chapters
1 and 2 of Article VI of the Santa Monica Municipal
Code and Adding Subchapters LA, 18, lC, and 10 to
Article VI of the Santa Monica Municipal Code
Relating to Business License Taxes
SUBJECT:

At its meeting on March 27, 1990, the city Council directed the City Attorney to prepare an ordinance making substantive and technical changes to the city' s Business License Tax Ordinance.

In response to this direction, the accompanying ordinance has been prepared and is presented to the City Council for its consideration.

The accompanying ordinance makes various substantive
changes in the City' s Business License Tax Ordinance by providing for new business license classifications and a new tax rate structure. All provisions of the current Code relating to business license tax administration, license classifications, and tax rates have been reorganized into a new chapter consisting of four subchapters.

A subsequent ordinance will be returned to the City Council that makes various technical and housekeeping changes to remaining provisions of Article VI, such as police permit requirements and other regulatory provisions. The revision of these sections have no bUdgetary impact. The city Manager and 1 - A
APR fn 4 J990
M~V
10qO

11.A.b
Packet Pg. 628 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) 207-- 100/
city Attorney agreed that separate ordinances were appropriate because a single ordinance would have been well over 100 pages, making review by the city Council and the public more difficult.

The tax rate changes made by the accompanying ordinance are summarized in Attachment 1.

SECTION- BY- SECTION ANALYSIS
Section 6000. Defini tions . The section was previously Section 6100. Several changes have been made to this Section, including: the definition of business has been expanded; a definition of City has been added; the definition of " evidence of doing business" has been changed; former Sections 6116B has been moved into this Section as a definition of " gross receipts"; and a new definition has been given to the term " independent contractor." The definition of business has been expanded to include commercial enterprise, vocation or other means of livelihood, whether or not they are carried on for gain or profi t. Receipts from subleasing have been included as gross receipts under the expanded definition of gross receipts, a new exempt category of fees for actual costs of governmental requirements paid by a licensee on behalf of a third party has been added, and former exclusions from the definition of gross receipts ( i . e., cash discounts; receipts of persons acting as agents or brokers; sales within a single business entity; income from incidental activities) have been deleted.

Section 6001. License Required. This Section was formerly Section 6103 and has been amende.d to provide that a person operating any business specified in the Code must pay the 2 -

11.A.b
Packet Pg. 629 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) Z- t!/7--CJo/
required business tax and obtain the appropriate permits whether or not the business is carried on for qain or profit.

Section 6002. Taxinq Power. This Section was formerly
section 6104 and the only amendment was to qive this section a title.
section 6003. Issuance of Licenses. This Section was
formerly Section 6106, and has been amended to include a title for the entire section and for each subsection thereof. The fee for duplicate licenses has been increased to $ 10. 00.

Section 6004. Payment of License Fees. A new subsection b) has been added to this section to require a charge of $ 10. 00 for any check returned for lack of sufficient funds.

Section 6005. Separate License for Each Place of Business.

This Section was formerly part of Section 6107A. Clarification has been added that this provision is not applicable to businesses licensed under the classification of " Auto Dealers" per section 6052B.

Section 6006. Separate License for Each Type of Business Activity. This section is new and provides that a separate business license is required for each business activity which comes within the purview of Chapter lB.

Section 6007. Contractor Engaged in Business. This
section was formerly Section 62120 and remains unchanged, except for a new title.
section 6008. City Licensinq Requirements for Contractors or Owner- Builders. This Section was formerly section 6212D1 and remains unchanged, except for a new title.
3 -

11.A.b
Packet Pg. 630 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) ZO-:?-;- CJtJ I
ection 6009. Builder Owners. This section was formerly
Section 6212A and remains unchanged.

Section 6010. Term of License. This Section was formerly section 6107B through O. This Section was amended to delete weekly licenses.

Section 6011. Portion of License Period, No Pro- Ration.

This Section was formerly part of section 6108. It has been revised to provide that no pro- ration shall be allowed for any type of license issued, whether annual, monthly or daily.

Section 6012. Bond Requirement. This Section was formerly Section 6107E and remains unchanged.
section 6013. Determination of Date Payment Made. This is a new Section which sets forth the method by which the City will determine the date of payment of license fees.

Section 6014. Renewals. This is a new Section which
provides that all delinquent business license taxes must be paid prior to renewal of a business license. In addition, it is the licensee' s
responsibility to obtain and pay for a renewal
license, whether or not the licensee receives a renewal notice from the city.
section 6015. Penalties for Late Payment and Non- Payment.

This Section was formerly Sections 6109 and 6112. The Section combines the two sections into one and adds late payment provisions, including a penalty of 10% of the original license fee for each month that a license fee remains unpaid.

Section 6016. Disabled Persons, Exemption. This Section was formerly Section 6100 and has been revised to provide that a person who is disabled within the meaning of any federal or state 4 -

11.A.b
Packet Pg. 631 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization)

2.tJ?,. t?oI
law may request and be issued a certificate of exemption from the payment of the business license for any retail, manufacturing, or wholesaling business in which he or she is engaged if the gross receipts of the business are less than Sixty Thousand Dollars 60, 000. 00).
section 6017. Exemption for Non- Profit Entity. This
section was formerly Section 6111 and has been revised and expanded. References to " charity corporation or organization" have been changed to " non- profit corporation or organization" throughout this Section. In addition, a definition of non- profit corporation or organization has been added to this Section, as well as a paragraph which allows the Director of Finance to require documentation evidencing the non-profit status of an applicant.
section 6018. Refunds. This section combines former
sections 6113 and 6114, and makes two changes. The first change is that the period after which refunds may not be given has been extended from 90 days to one year to comply with state law. In addition, a subsection ( c) has been added to provide that refunds will not be given on a business license if there are any delinquent fees outstanding, and any overpayment of business license fees shall first be applied to any delinquent fees.

Section 6019. Effect of Prosecution. This Section was
formerly Section 6115.

Section 6020. Annual statement of Licensee. This Section was formerly Section 6116 and has been amended. Former Section 6116( b) has been deleted, which dealt with closely related businesses and non- related businesses at one location. A new 5 -

11.A.b
Packet Pg. 632 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) 7-0?- lJ ()/
provision has been added to provide that if a business is subject to a business license tax based upon qross receipts, an additional fee shall be charged based upon the annual qross receipts of the business at the time of license renewal.

Section 6021. License Decals Required on Taxes and
Vehicles for Hire. This Section was formerly Section 6119 and has been revised to eliminate references to City Clerk and substitute the Director of Finance. The location for affixing the required decal has also been amended.

Section 6022. Gross Receipts Reporting Period. This
Section was formerly Section 6116B( b) ( 1) and has been revised to remove the reference to 1986, thus making this Section apply to all taxes due.

Section 6023. Apportionment. This Section was formerly
section 6116( b) ( d) ( 1)-( 3) and remains unchanged.

Section 6024. Revocation of License. This Section was
formerly Section 6117 and remains unchanged.

Section 6025. License to be Posted. This section was
formerly Section 6118 and remains unchanged.
section 6026. Business Tax Audit Proqram. This Section
was formerly Section 6129 and remains unchanged.
section 6030. Operation of 1990 Business License Tax
Amendments. This is a new section that provides that the repeal of various Sections does not affect the prosecution for violations thereof which were commi tted prior to the date of repeal, nor will it affect the payment of any taxes due prior to the effective date of the Ordinance. This section provides that 6 -

11.A.b
Packet Pg. 633 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) 2 Pr.-tJ{) I
the new license tax rates shall apply to all taxes due on or after July 1, 1990.
section 6050. This Section describes the function of the new Chapter 1B, " Business Classifications," to the Santa Monica Municipal Code.
section 6051. Determination of Business Classification.

This is a new Section which provides that the Director of Finance will determine business classifications.
section 6052. Business Taxed on Gross Receipts. This
Section is new and provides that business classifications set forth in sections 6052A through 6052N shall pay a business license fee based upon gross receipts.
sections 6052A. Aqent/ Broker. This is a new Section which adds a new classification of Agent/ Broker to the list of classifications which must pay business license fees based upon gross receipts.
section 6052B. Auto Dealers. This is a new Section which adds a new classification of Auto Dealers to the list of classifications which must pay business license fees based upon gross receipts.

Section
Engineering).
unchanged.

Section 60520. Sub or Specialty Contractors and Building Trades. This Section was formerly Section 6212B and has been amended to include electrical contractor and plumbing as building trades falling within this classification. In addition, the 6052C. Contractors ( General Building and
This section was formerly section 6212 and remains
7 -

11.A.b
Packet Pg. 634 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) Z-t}?- 00/
surety bond for businesses engaged in the sewer trade has been increased from $ 1, 000 to $ 5, 000.
section 6052E. Corporate or Administrative Headquarters.

This is a new Section which adds the new classification of corporate or administrative headquarters to the list of businesses which must pay a business license fee based upon gross receipts.

Section 6052F. Manufacturers. This Section was formerly part of Section 6226 and remains unchanged.
section 6052G. Professions. This Section was formerly
Section 6236 and the list of professions included within this classification has been modified by moving several professions to other classifications such as Services and Agent/ Broker.

Section 6052H. Recreation and Entertainment. This is a
new Section which adds a new classification of recreation and entertainment to the list of businesses which must pay a business license fee based upon gross receipts.

Section 60521. Rental of Non- Residential Property
Commercial Property). This Section was formerly Section 6219A and has been revised to include persons or entities who/ which sublease. In addition, a provision has been added to require that gross receipts include 100$ of gross receipts from the rental of property and that separate licenses are required for each rental property.

Section 6052J. Rental of Residential Property ( Apartment, Hotel, Motel, Rooming House, Trailer Court, Auto Court). This Section was formerly Section 6129 and has been revised to include joint ventures and subleasing as activities included within this 8 -

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Packet Pg. 635 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) 2 tJr/()() /
category. In addition, gross receipts for these businesses shall include loot of gross receipts from such rentals, as well as all monies received from rental of furniture, parking spaces, and the like, monies received for payment of utilities, and monies received in connection with providing additional amenities. section 6052K. Retail. This section was formerly Section 6225, Included in this business classification are persons defined as " itinerant peddlers." A definition of " itinerant peddler I' is provided.
section 6052L. Services. This Section was formerly
Section 6240 and has been revised to include additional kinds of services within this business classification as well as revises definitions of some of the services listed.

Section 6052M. Wholesalers. This Section was formerly
part of section 6226 and remains unchanged.
section 6052N. utilities. This Section was formerly
section 6225A and remains unchanged.

Section 6053. Businesses Taxed at Flat Rates. This is a new section which provides that the business classifications set forth in Sections 6053A through 60530 shall pay a business license tax based upon the flat annual rate indicated.

Section 6053A. Delivery Pick- Up. This Section was
formerly Section 6214 and remains unchanged.

Section 6053B. Special Event. This Section adds a new
classification of business which must pay a business license tax based upon gross receipts. This section applies to recreation, entertainment, cultural, and educational events and exhibitions 9 -

11.A.b
Packet Pg. 636 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) t-& 7--- O() I
conducted from a non- permanent location for a limited period of time.

Section 6053C. Taxi Cabs. This section was formerly
section 6400( a) and remains unchanged.

Section 6060. This Section is new and sets forth the
schedule of license fees by business classifieation and tax rate groups. All license fees have been increased.

The tax rate for Tax Rate Group I is $ 75. 00 for less than 60, 000 of gross receipts with an additional $ 1. 25 for each 1, 000 of gross receipts over $ 60, 000. Businesses includes in this Tax Rate Group are: auto dealers, corporation or
administrative headquarters, manufacturers, recreation and entertainment, rental of non- residential property, rental of residential property, retail, utilities, and wholesalers.

The tax rate for Tax Rate Group II is $ 75. 00 for less than 60, 000 of gross receipts with an additional $ 3. 00 for each 1, 000 of gross receipts over $ 60, 000. The businesses included in this Tax Rate Group are: agent/ brokers, contractors, builder owners, services, and sub or specialty contractors.

The tax rate for Tax Rate Group III is $ 75. 00 for less than 60, 000 of gross receipts with an additional $ 5. 00 for each 1, 000 of gross receipts over $ 60, 000. Included in this Tax Rate Group are all businesses included within the " professions" business classification.

The tax rate for Tax Rate Group IV is $ 150 for each day or fraction of any day in which business is conducted. All business categories included in the " special event" business
classification are included in this Tax Rate Group.
10 -

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Packet Pg. 637 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) Z07--oD(
The tax rate for Tax Rate Group V is $ 50 per vehicle per year. The " delivery pick- up" business classification is included in this Tax Rate Group.

The tax rate for Tax Rate Group VI is $ 250 per vehicle per year. The " taxi cab" business classification is included in this Tax Rate Group.
section 6070. Appeals. This section was formerly Section 6124 and has been amended to add a new subsection ( b), which provides that there is no right of appeal as to the determination as to the business classification designated and as to the amount of any tax, fee, interest, or penalties due.

Section 6071. Void License or Permit. This Section was
former Section 6125 and remains unchanged.

Section 6072. Appeal Procedure. This Section was former Section 6126 and remains unchanged.

SECTION 2. This section repeals various Sections of
Article VI of the Santa Monica Municipal Code pertaining to the business license regulations of the City. The Sections which conflict with the above set forth new Sections have been repealed.

SECTIONS 3, 4 rAND 5. These sections are the standard
ordinance sections pertaining to inconsistency,
unconstitutionality, and effective date of the ordinance.

RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.

PREPARED BY: Robert M. Myers, City Attorney
Linda A. Moxon, Deputy City Attorney
11 -

11.A.b
Packet Pg. 638 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization)

ATTACHMENT
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11.A.b
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11.A.b
Packet Pg. 640 Attachment: Attachment B - Update City Business License Ordinance (6198 : Business License Tax Modernization) City Council Meeting:

Agenda Item: 11A
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Resolution Waiving Past Due Business License Taxes, Penalties and Related Fees
Recommended Action
Staff recommends that the City Council adopt the attached Resolution waiving past due business license taxes, penalties and related fees for individuals or businesses operating residential rentals of three units or less and artists who create artwork on location at the Santa Monica Airport but do not sell the art on site, for all past fiscal years including the 2013 -14 fiscal year.

Executive Summary
A recent review of business license operations revealed that the City has not been requiring individuals or businesses that own /sublease and rent three or fewer residential units, or artists who create artwork on location at the Santa Monica Airport as part of their livelihood but do not sell the art on site, to secure a Business License. Beginning immediately, these businesses will be required to obtain a business license. Given that the practice of not requiring business licenses for these business activities was based on staffs previous interpretations of the Santa Monica Municipal Code ( SMMC) and not the fault of the participants, the attached resolution waives past due business license taxes and associated penalties and fees for all past years including the 2013 -14 fiscal year, to provide staff time to identify the affected individuals and companies.

Discussion
A recent review of business license operations revealed that individuals or businesses that own /sublease and rent three or fewer residential units, or artists who create artwork on Jocation at the Santa Monica Airport but do not sell the art on site, have not been required to obtain a Business License from the City, as are all others that do business in Santa Monica. To maintain a fair and consistent application of the law towards all members of the community, staff recommends that, effective immediately, these individuals and businesses will be required to obtain business licenses by filing a 1 11.A.c
Packet Pg. 641 Attachment: Attachment C - Waiver of Tax for Small Residential Property Owners (6198 : Business License Tax Modernization) business license application; however, they will not be required to pay the taxes that are past due.

As staff continues its efforts to identify unlicensed businesses operating in the City, staff is required to collect all license tax that is owed for past years for any business that is being brought into compliance. These taxes are past due and are a collectable debt.

In addition to all prior years, taxes for the 2013 -14 fiscal year became past due as of August 31, 2013 and are a collectible debt. However, since non - payment of business license taxes was not the fault of the individuals or businesses engaged in the business activities outlined in this report, adoption of the attached resolution will eliminate the City's requirement to seek payment of these past due taxes and related fees and penalties. City Council has the authority to waive a collectable debt owed to the City by resolution.

As part of staffs efforts to identify unlicensed businesses, staff will be conducting educational efforts to inform these businesses of the requirement to obtain a business license over the course of the next year.

Artists at the Santa Monica Airport
In the case of artists who create art at the Airport but do not actively sell their art from the same location, the fact that the sales are not taking place at the Airport location does not negate the fact that a business activity is taking place. The SMMC defines a business as " Any business, commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit." An artist who creates art as a hobby is clearly not required to obtain a business license.

However, any artist who creates art as a means of livelihood is required to obtain a business license. If an artist sells his or her art at a physical location outside of Santa Monica ( e. g. an art fair), the artist would be able to apportion their taxes accordingly, by reducing the total amount of gross receipts attributable to Santa Monica.

E

11.A.c
Packet Pg. 642 Attachment: Attachment C - Waiver of Tax for Small Residential Property Owners (6198 : Business License Tax Modernization) There are approximately 60 artists either leasing or subleasing space at the Airport who would potentially be eligible for a waiver of tax under the proposed resolution. Artists who do not fall under the specific conditions noted in the resolution and who are unlicensed would not be eligible for the waiver provided in the request; they would therefore be required to pay past due taxes and penalties.

Artists reporting less than $ 40, 000 in worldwide gross receipts annually would be eligible to claim the small business tax exemption and pay no tax. Artists who report gross receipts of $ 60, 000 or less would be subject to business license tax of $ 75 annually. If gross receipts exceed $ 60, 000, artists would pay $ 1. 50 for every $ 1, 000 in gross receipts in excess of $ 60, 000. Staff will be performing outreach to identify these individuals and businesses and educate them on the requirement to obtain a business license.

Residential Rentals — Three Units or Less
The SMMC clearly establishes a business classification and tax rate for the rental of residential property of more than three units when such rentals are for residential use and where such units are located on the same or an adjoining property. However, even though the SMMC does not include the rental of residential property of three units or less in the same classification as the rental of residential property of more than three units, it does not specifically exempt these businesses. Santa Monica Municipal Code SMMC) Section 6. 04. 020 requires a business to obtain a business license unless specially exempted by law.

Although information is not available from the County Assessor' s office on the number of properties with two or three units or the number of single family homes that serve as rentals, staff has determined from a report issued on March 22, 2013 by the Rent Control Department that there are 1, 080 rent controlled two and three unit properties that are required to obtain a business license. Since this only includes rent controlled properties, the total number of two and three unit properties is likely more than1, 080. In 3 11.A.c
Packet Pg. 643 Attachment: Attachment C - Waiver of Tax for Small Residential Property Owners (6198 : Business License Tax Modernization) addition to two and three unit properties, a search of a residential rental website displayed 96 single family homes and condos for rent with rents ranging from $ 950 to 40,000 per month.

Individuals and businesses that collect less than $ 5,000 in total monthly rents, and therefore $ 60, 000 or less in gross receipts, would be subject to business license taxes of $ 75 annually. Any business that reports less than $ 40,000 in worldwide gross receipts annually would be eligible to claim the small business tax exemption and pay no tax. Staff will be performing outreach to identify these individuals and businesses and inform them of the requirement to obtain a business license.

Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Staff estimates that with a 75% compliance rate in FY 2014 -15, the City would generate an additional $ 86,000 in business license tax revenue.

Prepared by: Salvador M. Valles, Business & Revenue Operations Manager Approved:
t `
Gigi ecavaI es- H es
Director of Finance
Attachment:

A. Resolution
Ell
Forwarded to Council:
3 Rod Gould
City Manager

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Packet Pg. 644 Attachment: Attachment C - Waiver of Tax for Small Residential Property Owners (6198 : Business License Tax Modernization) Reference:

Resolution No. 10766
CCS)

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Packet Pg. 645 Attachment: Attachment C - Waiver of Tax for Small Residential Property Owners (6198 : Business License Tax Modernization) 1 Xavier Mota
From: Andrew Thomas <[email protected]>
Sent: Friday, April 5, 2024 8:00 AM
To: councilmtgitems
Subject: RE: Council Agenda Item 11A: Business License Tax Modernization Attachments: Business License Tax Modernization DTSM Letter of Support 4.9.24.pdf

EXTERNAL
Dear Mayor Brock, Mayor Pro Tem Negrete, and Honorable Council Members, Downtown Santa Monica, Inc. (DTSM, Inc.) supports the initiative to modernize our city's Business License Tax structure.

The proposed Business License Tax Modernization goals will establish a fair, equitable, and straightforward tax system that benefits all businesses, regardless of size or industry.

The Business License Tax Study has revealed that small businesses bear a disproportionate burden, with a heavier percentage of their revenue than larger corporations. This inequity impedes small businesses' growth potential and diminishes the diversity and vitality of our local business landscape.

DTSM, Inc. endorses the progressive and comparable tax proposal presented in the plan. The proposed initiatives, such as increasing the Small Business Tax Exemption threshold, reducing penalty schedules, and adjusting tax rates for specific industries, are crucial steps toward leveling the playing field and promoting entrepreneurial endeavors.

Furthermore, the proposed revisions will strengthen the City's General Fund and generate revenue to support essential services such as the Santa Monica Police Department, the Santa Monica Fire Department, Code Compliance, and other vital entities that serve our Downtown community.

In summary, DTSM, Inc. supports the Business License Tax Modernization initiative and believes it is a necessary and positive step towards creating a more fair and equitable tax system for all businesses and supporting our vital city resources.

Sincerely,
Andrew Thomas, LPM
Chief Executive Officer
Downtown Santa Monica, Inc.
1351 Third Street Promenade, Ste. 201
Santa Monica, CA 90401
310.393.8355 (Office)
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Item 11.A..

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Packet Pg. 646 Attachment: Written Comments (6198 : Business License Tax Modernization) 1351 Third Street Promenade, Suite 201, Santa Monica, CA I 310.393.8355 I [email protected] Santa Monica City Council
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
March 28, 2024
RE: Council Agenda Item 11A: Business License Tax Modernization Dear Mayor Brock, Mayor Pro Tem Negrete, and Honorable Council Members, Downtown Santa Monica, Inc. (DTSM, Inc.) supports the initiative to modernize our city's Business License Tax structure. The proposed Business License Tax Modernization goals will establish a fair, equitable, and straightforward tax system that benefits all businesses, regardless of size or industry.

The Business License Tax Study has revealed that small businesses bear a disproportionate burden, with a heavier percentage of their revenue than larger corporations. This inequity impedes small businesses' growth potential and diminishes the diversity and vitality of our local business landscape.

DTSM, Inc. endorses the progressive and comparable tax proposal presented in the plan. The proposed initiatives, such as increasing the Small Business Tax Exemption threshold, reducing penalty schedules, and adjusting tax rates for specific industries, are crucial steps toward leveling the playing field and promoting entrepreneurial endeavors.

Furthermore, the proposed revisions will strengthen the City's General Fund and generate revenue to support essential services such as the Santa Monica Police Department, the Santa Monica Fire Department, Code Compliance, and other vital entities that serve our Downtown community.

In summary, DTSM, Inc. supports the Business License Tax Modernization initiative and believes it is a necessary and positive step towards creating a more fair and equitable tax system for all businesses and supporting our vital city resources.

Sincerely,
Andrew Thomas
Chief Executive Officer
Downtown Santa Monica, Inc.

CC: DTSM, Inc. Board of Directors
David White, City Manager
David Martin, Community Development Director
Jennifer Taylor, Economic Development Manager
Haley Favre-Smith, Business License Administrator
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Packet Pg. 647 Attachment: Written Comments (6198 : Business License Tax Modernization) 1 Xavier Mota
From: OZ <[email protected]>
Sent: Friday, April 5, 2024 3:28 PM
To: councilmtgitems
Cc: Douglas Sloan; David White; Phil Brock; Lana Negrete Subject: public comment item 11-A: Does SM require that nonprofits obtain business licenses?

EXTERNAL
D oes Santa M onica Require That N onprofits O btain
City Business Licenses?
This letter was subm itted to City Officials ahead of Council's Tuesday discussion of the m odernization of the business license ordinance.

Olga Zurawska, Special to the Observer | Apr 03, 2024
To help protect your privacy,
Micro so ft Office prevented
auto matic downlo ad o f this
picture from the Internet.

Hello City Attorney Sloan and City Manager White,
Since the City Council is about to discuss an update to the business license/tax ordinance, this is to request that the City clarify whether non-profit organizations are subject to the City business license requirement or not.

Last year when I enquired about this issue with the City Attorney's Office, the following response was offered:
"In general, a nonprofit is exempt from paying the City's business license tax, but is still required to apply for and maintain a business license and pay any applicable fees and assessments (i.e. industrial wastewater permit, zoning conformance review).

The City, however, has not required a business license for a nonprofit engaged in an event such as a concert, exhibition, or lecture for the purpose of entertainment on scientific, historical, literary, religious, political, or moral subjects. See Santa Monica Municipal Code section 6.04.190.

Please note that depending on the facts, there may be additional applicable exemptions or limits on taxation under State and Federal law, including: (1) exemptions for veterans who received Honorary Discharge; (2) blind individuals; (3) disabled individuals (up to $60,000 in gross receipts per Santa Monica Municipal Code section

6.04.180); or (4) federally chartered veterans organizations that solicit donations for the support of veterans." Item 11.A..

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Packet Pg. 648 Attachment: Written Comments (6198 : Business License Tax Modernization) 2 However, a public records request I filed last year to obtain copies of business licenses for over forty nonprofit organizations that claim to be operating in Santa Monica showed that a vast majority of them do not in fact possess City business licenses.

Business License Administrator Ms. Haley Favre-Smith was less than cooperative in resolving this issue, and even engaged in efforts to sabotage my attempts to obtain clarification. Ms. Favre-Smith's apparent position was that as a City employee she does not have to respond to a resident's concern.

Some of the unlicensed nonprofits in question are powerful lobbyist organizations which constitute the political establishment that in effect largely controls the City of Santa Monica and its $745M annual budget. At the same time, the City department Ms. Favre-Smith works for has no problem collecting annual business license fees from a small independent nonprofit organization like ACTION. There seems to be an inconsistency in how the different nonprofit organizations are treated by the Business License Department, which raises concern.

Enclosed is a partial list of the nonprofits that I enquired about last year. To my knowledge as of last year, most of them did not possess City business licenses. Please note that some of them receive or have in the past received public funding from the City, e.g. the neighborhood groups (some of which have in the past endorsed political candidates).

I am looking forward to the City's clarification whether nonprofit organizations in general, and particularly the organizations listed below, are required to obtain City business licenses. If they are, it is my hope the City will undertake to immediately check if there is a need to notify those organizations of the requirement to apply for business licenses.

Thank you for your time and attention to this important matter of transparency.

Regards,
Olga Zurawska
List of some nonprofit organizations that may be required to hold city business licenses:

Santa Monica Municipal Employee Association
Santa Monica Police Activities League
The League of Women Voters of Santa Monica
DTSM
Outreach Through The Arts
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Packet Pg. 649 Attachment: Written Comments (6198 : Business License Tax Modernization) 3 Santa Monica Democratic Club
Santa Monica Police Officers Association
Santa Monica Bayside Business Owners Association (SMBOA) Santa Monica Coalition
Santa Monica Coalition for a Livable City
Santa Monica Forward
Santa Monicans for Renters Rights (SMRR)
Friends of Sunset Park
Abundant Housing LA (their website claims they have a Santa Monica chapter) Northeast Neighbors
Santa Monica Office of Legal Aid Foundation of Los Angeles Ocean Park Association
Human Relations Council Santa Monica Bay Area
Community Corporation of Santa Monica (CCSM) – locations other than administrative office Santa Monica Pier Corporation
NRDC
Santa Monica Housing Council
Community for Excellent Public Schools (CEPS)
Santa Monica Education Foundation
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Packet Pg. 650 Attachment: Written Comments (6198 : Business License Tax Modernization) 4 Santa Monica–Malibu Council PTA
North of Montana Association
Wilshire Montana Neighborhood Coalition
Pico Neighborhood Association
Santa Monica Mid City Neighbors
The Santa Monica College Foundation
Santa Monica Black Lives Association
National Society Daughters of the American Revolution, Santa Monica Chapter Santa Monica Bay Woman's Club
Upward Bound House
Salvation Army (several locations including Silvercrest Apartments ) Santa Monica Spoke
Santa Monica Travel & Tourism (SMTT)
Santa Monica Pier Corporation
Santa Monica Pier Business Association
Mid-City Neighbors
Santa Monica – Venice Reunion Organization
Santa Monica Pickleball Club
source: Does Santa Monica Require That Nonprofits Obtain City Business Licenses? Item 11.A..

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Packet Pg. 651 Attachment: Written Comments (6198 : Business License Tax Modernization) 5 -- Stay free! --
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Packet Pg. 652 Attachment: Written Comments (6198 : Business License Tax Modernization) From: Liz Kennedy
To: Clerk Mailbox
Cc: Liz Kennedy
Subject: FW: The Business License Tax Modernization Item 11.A on tonight"s agenda.

Date: Tuesday, April 9, 2024 11:29:29 AM
Attachments: SM BUS LIC.xlsx

EXTERNAL
Hello,
Mike Sullivan will be attending tonight’s City Council meeting and would like to present the attached spreadsheet during the Business License Tax Modernization Item 11.A on tonight's agenda.

Please confirm receipt and if there needs to be any adjustments to the format.

Thank you!
Liz Kennedy
Executive Assistant to Mike Sullivan
14900 Hindry Avenue, Hawthorne CA 90250
310.531.9497
LAcarGUY Family of Dealerships
www.lacarguy.com
“Teamwork Makes the Dream Work”
From: Ellen Chase <[email protected]>
Date: Tuesday, April 9, 2024 at 9:18 AM
To: Mike Sullivan <[email protected]>
Cc: Liz Kennedy <[email protected]>, Chris Foy <[email protected]> Subject: Santa Monica Bus Lic
Hi Mike
this is what I put together, hope it's sensible
Both Hawthorne and Hollywood are paying Bus Lic tax on a similar basis to what SM is proposing only these cities CAP the gross sales
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Packet Pg. 653 Attachment: Written Comments (6198 : Business License Tax Modernization) Santa Monica is proposing NO CAP - which would lead to these 70-80 percent increases Torrance and Lancaster are based strictly on head count Ellen Chase
Corporate Controller
Sullivan Auto Group
LAcarGuy
310-291-5361
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Packet Pg. 654 Attachment: Written Comments (6198 : Business License Tax Modernization)

SANTA MONICA STORES

STORE PREVIOUS BUS LIC COST PROPOSED BUS LIC WITHOUT A CAP PERCENTAGE INCREASE HONDA SANTA MONICA 26,525.99 90,579.25 70%LEXUS 29,856.25 267,538.92 89%VW SANTA MONICA 27,864.28 107,240.23 75%GENESIS 25,004.00 92,941.59 73%SSM 26,525.99 114,685.32 77%TSM 25,004.00 195,704.75 87% based on partial year HYUNDAI 180.15 46,907.49 70%LOS ANGELES HOLLYWOOD 98,110.00 NATOTAL SALES/1000* $1.27HAWTHORNE PORSCHE 155,823.00 NA BASED ON GROSS RECEIPTS NEW,USED,FIXED(SALES) $100 PER $100,000 OR SUBARU PACIFIC 88,761.00 NAFRACTION THEREOF NEW,USED,FIXED UP TO BUSINESS MAXIMUM PVW 51,386.00 NA

NEW,USED,FIXED
LANCASTER SAV 170.00
NUMBER OF EMPLOYEES X $3.05
HL 214.00
TORRANCE AUDI PACIFIC 5,200.00 NA
NUMBER OF EMPLOYEES x $80
26,525.99 29,856.25 27,864.28 25,004.00 26,525.99 25,004.00 90,579.25
267,538.92
107,240.23
92,941.59
114,685.32
195,704.75

0.00 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00

HONDA SANTA MONICA
LEXUS

VW SANTA MONICA

GENESIS
SSM
TSM

SANTA MONICA BUS LIC
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Packet Pg. 655
Attachment: Written Comments (6198 : Business License Tax Modernization)

CITY OF SANTA MONICA BUSINESS

LICENSE MODERNIZATION PROJECT

11.A.f
Packet Pg. 656 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization) Staff Recommendation
City staff is presenting the results of the Business License Modernization project and seeks the following:
 Consider the proposed Business License Modernization and associated business license tax rate changes;
 Direct staff to draft changes, as applicable to section of Article 6 Business, Professions and Trades;
 Prepare a draft measure for the Business License
Modernization and a proposed resolution to place the
measure on the November 2024 ballot.

TONIGHT:

PROPOSED BUSINESS LICENSE MODERNIZATION

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Packet Pg. 657 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization) WHAT IS BUSINESS LICENSE TAX?
 General Fund tax on business
activities in Santa Monica
 Majority of individuals and entities
operating in the City are required to
procure a business license
 Calculations are based on the prior
calendar year gross receipts
multiplied by a tax rate that ranges
from $1.25 to $5.00 per $1,000.

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Packet Pg. 658 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization) THE EVOLUTION OF SANTA MONICA’S BUSINESS

LICENSE TAX LANDSCAPE

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Packet Pg. 659 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

HISTORICAL BUSINESS LICENSE TAX REVENUE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Collected/Projected*

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Packet Pg. 660 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

BUSINESS LICENSE TAX REVENUE BY TYPE

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Packet Pg. 661 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

BUSINESS LICENSE MODERNIZATION GOALS

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Packet Pg. 662 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

EFFECTIVE TAX RATE PAID BY BUSINESSES

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%
Very Small Small Medium Large
Effective Tax Rate by Business Size
Very Small (less than $40,000)
Small ($40,000 - $100,000)
Medium ($100,000 - $1,000,000)
Large (over $1,000,000)

11.A.f
Packet Pg. 663 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

NEIGHBORING CITY TAX RATE COMPARISON
Business
Classification
Santa Monica Los Angeles Beverly Hills Culver City
Auto Dealer $75 + $1.25/$1,000
(Capped at
$25,000)
$1.27/$1,000 $75 + $1.25/$1,000 $1.50 /$1,000
over $200k
Corporate
Administrative
Headquarters
$75 + $1.25/$1,000 $4.25/$1,000 $311+ $0.06539 Per
Payroll Hour
$3 /$1,000
over $200k
Service $75 + $3/$1,000 $4.25 /$1,000 $311+ $0.06539 Per Payroll Hour
$2 /$1,000
over $200k
Recreation and
Entertainment
$75 + $1.25/$1,000 $1.01/$1,000 $75 + $1.25/$1,000 $2/$1,000 over $200k
Retail $75 + $1.25/$1,000 $1.27/$1,000 $75 + $1.25/$1,000 $1.50/$1,000 over $200k
Professions $75 + $5/$1,000 $4.25/$1,000 $1,735 + $0.83413 per Prof. Hour + $0.16762 per
non-Prof. Hour
$3.50 /$1,000
over $200k
Residential and
Commercial Rental
Property
$75 + $1.25/$1,000 $1.27/$1,000 $12/$1,000
$23.50/$1,000
$1.30 /$1,000
over $200k
Contractor $75 + $3/$1,000 $153 + $2.55/
$1,000
$75 + $1.25/$1,000 $2/$1,000
over $200k

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Packet Pg. 664 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

NEIGHBORING CITY TAX COMPARISON
Business Classification Santa Monica Los Angeles Beverly Hills Culver City Large Auto Dealer
[$42,000,000]
$25,000 $53,340 $52,500 $62,700
Large Corp Admin HQ
[$34,000,000]
$42,500 $144,500 $35,809 $101,400
Large Service
[$7,500,000]
$22,395 $31,875 $3,983 $14,600
Large Entertainment
[$70,000,000]
$87,500 $70,700 $87,500 $139,600
Large Retail
[$6,000,000]
$7,500 $7,620 $7,500 $8,700
Medium Professional
[$352,000]
$1,535 $1,496 $4,864 $532
Medium Service
[$325,000]
$870 $1,381 $1,127 $250
Medium Residential
Rental Property
[$250,000]
$312 $317 $3,000 $65
1 st $200K Exempt
Small Contractor
[$65,000]
$90 $0
$100K Exempt
$81 $0
1 st $200K Exempt

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Packet Pg. 665 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

BUSINESS LICENSE MODERNIZATION ENGAGEMENT

CITY STAFF INTERVIEWS
NOVEMBER 2023

BUSINESS LICENSE SURVEYS

TO ALL BUSINESS LICENSE

HOLDERS
DECEMBER 2023
5 VIRTUAL FOCUS GROUPS
JANUARY 2024

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Packet Pg. 666 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

BUSINESS LICENSE MODERNIZATION STAKEHOLDER

ENGAGEMENT
Unequivocal support for
relief for small and local
businesses
Consideration for margin
limited industry like
restaurants
Supportive for equity but
concerns for tax rate
increases to auto dealers

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Packet Pg. 667 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

PRIMARY BUSINESS LICENSE TAX STUDY FINDINGS
Small businesses
paying higher %
of revenue
Low Small
Business
Exemption
Classifications
and definitions
need to be
updated
Growing
dependency on
large taxpayers
Auto dealers cap
doesn’t exist in
comparable
cities
Corporate
Admin/HQ tax
rate is lower than
other cities
Penalty schedule
is amongst the
highest in our
region

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Packet Pg. 668 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

ADMINISTRATIVE IMPROVEMENTS
Modernize Modernize definitions and classifications
Clean-up Clean-up inconsistent language
Create Create provisions for administrative regulations Formalize the Penalty Waiver/Reduction Process and
Voluntary Disclosure Program and procedures Formalize

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Packet Pg. 669 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization) Proposal Description # Of Businesses
Impacted
Revenue Impact Range
in Millions
Increase the Small Business Tax Exemption threshold from $40,000 to $100,000
7,000-8,000 $(0.7) - $(0.8)
revenue decrease
Reduce Penalty Schedule maximum from 100% to 50% 200-300 $(0.2) revenue decrease
Remove the back tax calculation related to the application year on the firstrenewal submission
300-400 $(0.3) - $(0.4)
revenue decrease
Residential Rental 3 Units or Less Rate Reduction from
$3.00/$1,000 to $1.25/$1,000
400-500 $(0.02)
revenue decrease
Rate Reduction from $1.25/$1,000 to $1.15/$1,000 for
Retailers/Restaurants generating under $5 Million in gross receipts annually
1,800-1,900 $(0.1) -$(0.12)
revenue decrease
Auto Dealers will pay business license tax on their total gross receipts at a rate of $1.25/$1,000 for sales and a rate of $3.00/$1,000 for the auto repair operations with no maximum tax 13-16 $0.9 - $1.3
revenue increase
Increase tax rate on Corporate/Administrative Headquarters from $1.25/$1,000 to $2.50/$1,000
110-120 $2.1 - $3.1
revenue increase
A processing fee initially set at 100% of the BL Unit's costs The fee would be approximately $40
22,000-23,000 $0.8 - $0.85
revenue increase
ESTIMATED REVENUE IMPACT RANGE $2.25 - $3.93
revenue increase

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Packet Pg. 670 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

NEIGHBORING CITY COMPARISON
Proposed Changes Santa Monica Los Angeles Beverly Hills Culver City Auto Dealer $75 + $1.25/$1,000 $1.27/$1,000 $75 + $1.25/$1,000 $1.50 /$1,000 over $200k
Auto Dealer Repair $75 + $3/$1,000 $4.25 /$1,000 $311+ $0.06539 Per Payroll Hour
$2 /$1,000
over $200k
Corporate
Administrative
Headquarters
$75 + $2.50/$1,000 $4.25/$1,000 $311+ $0.06539 Per
Payroll Hour
$3 /$1,000
over $200k
Residential Rental
Less than 3 Units
$75 + $1.25/$1,000 $1.27/$1000 $12/$1000 $1.30 /$1000 over 200k
Retail Rate Under $5
Million
$75 + $1.15/$1,000 $1.27/$1000 $75 + $1.25/$1000 $1.50/$1000 over 200k
Small Business
Exemption
100,000 100,000 N/A 1st $200,000
Penalty Maximum 50% 40% 50% 100%
Processing Fee $40 N/A N/A $66-$76

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Packet Pg. 671 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

EFFECTIVE TAX RATEPAID BY BUSINESSES

COMPARISON

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%
Very Small Small Medium Large
Effective Tax Rate by
Business Size

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%
Very Small Small Medium Large
Effective Tax Rate by
Business Size

CURRENT RATE STRUCTURE PROPOSED RATE STRUCTURE

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Packet Pg. 672 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization)

NEXT STEPS AND KEY MILESTONES
April 9, 2024
City Council Meeting to Present
Business License Modernization
Proposal
June 25, 2024
City Council Meeting to present
the Business License
Modernization Ordinance
Revisions and Polling Results
November 5, 2024
Election day for Business License
Modernization

11.A.f
Packet Pg. 673 Attachment: PowerPoint Presentation (6198 : Business License Tax Modernization) City Council
Report
City Council Meeting: April 9, 2024
Agenda Item: 11.B
1 of 12
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Approval of Design Concept for Affordable Housing Development located on City-owned Site located at 1318 Fourth Street and Negotiate Ground Lease and Disposition and Development Agreement
Recommended Action
Staff recommends that the City Council:

1. Select Design Concept #1 for the affordable housing development located at 1318 Fourth Street, Santa Monica, CA 90401 (PS3) – 122 apartments with 2 levels of underground parking;

2. Direct staff to proceed with negotiations of the Ground Lease and Disposition and Development Agreement (DDA) with developer EAH, Inc.; and

3. Adopt a finding of no possibility of significant effect on the environment for providing direction on development concept pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines and find that the future development of affordable housing on the City-owned properties at 1318 Fourth Street is consistent with the certified 6th Cycle Housing Element Environmental Impact Report (State Clearinghouse No. 2020100575).

Executive Summary
At its January 11, 2022 meeting, the City Council approved EAH, Inc (EAH) as the development team for the construction of affordable housing on the City-owned site located at 1318 Fourth Street (PS3). EAH has been refining its development concept based on community engagement, due diligence research and financial feasibility analysis. Prior to returning to City Council with the Ground Lease and the Development and Disposition Agreement (DDA), City staff and EAH seek direction on refined development concepts including building height, number of apartments, and City Housing Trust Fund (HTF) investment and ask for the City Council to select and

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approve Design Concept #1 or Design Concept #2. Then City staff will negotiate the Ground Lease and DDA and return to the City Council in Fall 2024 for review and approval.

Background
On April 9, 2019, per staff and the Housing Commission’s recommendation, Council authorized issuance of a Request for Proposals (RFP) for development of affordable housing on PS3 (Attachment A). Staff issued the RFP on August 15, 2019.

On October 12, 2021, Council adopted the 6th Cycle Housing Element Update for 2021- 2029 (Housing Element) and authorized its submittal to the California Department of Housing and Community Development. The adopted Housing Element identified the use of City-owned sites as a key strategy to meet regional housing need. At Council’s direction, staff included a commitment that City-owned sites would be prioritized for 100 percent affordable housing as the City has few remaining vacant sites available for residential development. As land acquisition is typically the largest cost in developing affordable housing, the use of City-owned land alleviates the impact of land cost on the feasibility of affordable housing development and allows the City’s limited HTF resources to be used more effectively to produce affordable housing.

On January 11, 2022, City Council selected the EAH development team, comprised of EAH as developer, Van Tilburg, Banvard & Soderbergh as the architect, Epsteen & Associates as the retail broker, The Lynch Group Inc as the retail consultant, AMJ Construction Management as the construction manager, California Housing Partnership as its financial consultant, and The People Concern (TPC) as its services provider, and authorized the City Manager to negotiate and execute an Exclusive Negotiating Agreement (ENA) with EAH for a mixed-use, affordable housing development on PS3 (Attachment B).

Discussion
On July 22, 2022, EAH and the City executed an ENA for the development of PS3.

Since then, EAH has engaged in a range of activities including community engagement,

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financial feasibility and research aimed at further refining the initial development concept and design.

In July 2023, EAH submitted a memo to the City with its refined development concept and analysis. City staff requested additional information and details from EAH in September 2023. EAH continued to refine its development concept based on City staff feedback, including exploring alternative development concepts for the City Council input. Outlined below are EAH’s efforts over the last 18 months.

Community Engagement Process
EAH conducted both formal and informal engagement with the community between November 2022 and April 2023 to further understand the needs and desires of Santa Monican residents and business owners. At meetings attendees had the opportunity to meet with the development team and were given an overview of the proposed development and possible alternative development options. Attendees provided input on the design, layout of the building, population and services for the development.

EAH organized and hosted virtual and in-person community meetings for business owners and residents near PS3 including The Pico Neighborhood Association, The Wilshire Montana Neighborhood Coalition (WILMONT) and Santa Monica Mid City Neighbors, Downtown Santa Monica Inc, and Santa Monica Chamber of Commerce.

To incorporate input from residents with lived experience in affordable and supportive housing in Santa Monica, EAH organized a meeting that included current residents - low-income families, seniors, and formerly homeless individuals - of Community Corporation of Santa Monica (CCSM), Step Up, and EAH properties. - Commercial Tenant: Feedback during community outreach was unanimously in favor of a grocery store tenant in the commercial retail space. EAH refined its design to provide key components needed for a grocery retailer based on input from its retail consultant and potential retail tenants.

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- Nonprofit Space: EAH initially proposed a nonprofit space as a component of its design concept. Based on community input, this was not pursued. - On-Site Tenant Services: EAH solicited feedback on the types of services needed and TPC. Overall the feedback received was favorable towards TPC.

EAH’s research also found that TPC is renowned as one of the highest rated nonprofit providers in Los Angeles County, as recognized by Nonprofit Navigator. TPC has a proven track record of success, serving over 2,700 Permanent Supportive Housing (PSH) residents in the greater Los Angeles area and their comprehensive supportive services have resulted in a 93% housing retention for tenants. EAH surveyed several affordable housing developers who are currently partnered with TPC to provide intensive case management services in their PSH developments. Feedback across all surveyed was overwhelmingly positive, reflecting TPC’s expertise in their PSH service provision. The Los Angeles County Department of Health Services currently provides funding to TPC for intensive case management services in PSH, and provided highly favorable reviews.

Feasibility Analysis
As part of its research, EAH worked to optimize the project’s feasibility with refinements based on community engagement. There have been many changes to the affordable housing funding landscape since the original RFP. With these shifts in the funding landscape, EAH collaborated with financial consultants, accountants and tax attorneys to develop a comprehensive financial strategy to maximize funding from outside sources while minimizing the utilization of City resources, and still allow a feasible project.

On-site Services for tenants
EAH will employ one full-time resident services coordinator to facilitate services and activities for all tenants, one full-time property manager who will reside on-site, and one full-time assistant property manager. TPC will provide one full-time intensive case

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management service coordinator for every 20 formerly homeless residents (2.5 full-time equivalent staff). On-site offices will be provided for EAH and TPC staff.

TPC will provide intensive case management services to residents in the 50 PSH apartments. In addition to case management services include linkages to mental health support, substance use disorder services; assistance with applying for benefits, transportation, linkages to legal services; crisis management; eviction prevention; life skills education; social and recreational activities; employment and educational resources; and money management/representative payee. All services will be directly provided by case managers on-site, or through linkages to outside service programs.

Case managers will make frequent contact with their clients from initial lease up and move-in through residency, with frequency tailored to the client’s level of functioning, acuity, and need.

All apartments within PS3 will be offered services by the EAH Housing Resident Services team as part of its inhouse StayWell! Resident Services Program, which provides residents’ access to helpful resources to maintain stable housing. The primary components include Healthy Eating, Active Living, Community Building, Physical and Mental Health, Education, and Civic Engagement. EAH will assess the service needs of all residents, provide general service coordination and oversee third-party service provider relationships to ensure commitments are met and residents thrive.

Design Concepts: After its community outreach, research and feasibility analysis, EAH refined its initial proposal and is presenting two design concepts for City Council selection – Design Concept #1 and Design Concept #2.

Design Concept #1
- Unit Mix: 122 apartments, which includes 50 PSH apartments.

Bedroom Size Total Apartments % of Total Apartments
Studios 44 36%
One-bedrooms 16 13%

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Two-bedrooms 31 25%
Three-bedrooms 31 25%
Total Apartments 122
- Building Height and Density: 70’ with five stories of residential above commercial retail and two levels of underground parking with 116 total parking spaces (60 residential and 56 commercial).
- Financing: EAH requires no additional HTF investment beyond the $2 million federal allocation already received by the City for this development. EAH will pursue 4% tax credits and tax-exempt bonds in addition to several other sources of financing including funding from the Los Angeles County Development Authority (LACDA) and the State of California’s Housing and Community Development Affordable Housing and Sustainable Communities (AHSC) program and the Infill Infrastructure Grant (IIG) program.

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122 Apartments + 2 Underground Levels of Parking (116 parking spaces) Permanent Loan $10,975,000
Commercial Loan $1,584,000
Affordable Housing Sustainable
Communities (AHSC/State)
$31,555,787
Infill Infrastructure Grant (IIG/State) $7,500,000
City of Santa Monica / Federal Allocation
Award for 1318 4th Street
$2,000,000
Deferred Fee $14,428,271
Equity $55,048,219
Total $123,091,277
Financing Uses
Hard Costs $76,478,672
Architecture & Engineering $11,812,329
Construction Interest & Fees $12,598,030
Costs of Bond Issuance $1,449,983
Soft Costs $20,752,263
Total $123,091,277
Design Concept #2
Design Concept #2 represents an alternative scenario that maximizes density on the property.
- Unit Mix: 196 apartments, which includes 50 PSH apartments.

Bedroom Size Total Apartments % of Total Apartments
Studios 70 36%
One-bedrooms 24 12%
Two-bedrooms 50 25.5%
Three-bedrooms 52 26.5%
Total Apartments 196

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- Building Height and Density: 100’ with eight stories of residential above commercial retail and three levels of underground parking with 179 total parking spaces (123 residential and 56 commercial).
- Financing: Design Concept #2 would cost approximately $90 million more than - Design Concept #1 and would take an additional 10 to 24 months to develop, depending on funding cycles and availability of funds. It would require additional outside funding sources and an investment from the HTF of at least $9,994,017.

There are several risks and challenges tied to the financing of the development, including a heavy reliance on several State funding sources (IIG) and Multifamily Housing Program (MHP), which the Governor proposed reductions to in the 2024-25 budget. Additionally, the tax-exempt bond request and equity request are currently above the market and out of range for the current program and construction costs are much higher for this concept due to the building type required for the building height.

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Financing Option #1
Permanent Loan $14,531,000
Commercial Loan $1,584,000
Affordable Housing Sustainable
Communities (AHSC/State)
$35,000,000
LACDA (County) $5,000,000
Infill Infrastructure Grant (IIG/State) $7,500,000
Multifamily Housing Program
(MHP/State)
$15,000,000
City of Santa Monica / Federal
Allocation Award for 1318 4th Street
$2,000,000
City of Santa Monica Housing Trust
Fund Request (Minimum)
$9,994,017
Deferred Fee $25,392,092
Equity $91,990,800
Total $207,991,909
Financing Uses
Hard Costs $131,589,059
Architecture & Engineering $18,696,868
Construction Interest & Fees $23,232,834
Costs of Bond Issuance $2,133,636
Soft Costs $32,339,512
Total $207,991,909

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Comparison Summary
Design Concept #1 Design Concept #2
Number of
Apartments
122 apartments 196 apartments
Parking 116 total parking spaces
(60 residential /
56 commercial)
179 parking spaces
(123 residential /
56 commercial)
Height 70’ / five stories 100’ / eight stories
Total Cost $123,091,277
($1,008,945 / apartment)
$207,991,909
($1,061,183 / apartment)
HTF Investment $0 HTF Investment
+ $2 million Federal
Allocation
Minimum $9,994,017
HTF Investment
+ $2 million Federal Allocation
Staff recommends the City Council select Design Concept #1 to reduce the additional time needed for construction of Design Concept #2, concerns around the ability of EAH to successfully finance Design Concept #2, and the additional HTF resources that would be needed in light of the City’s commitments under its Housing Element.

Next Steps
After selection by the City Council of the design concept, staff will negotiate the Ground Lease and DDA and present to the City Council for review and approval in Fall 2024.

EAH will submit for Planning Administrative approval in Fall 2024 and submit for Coastal Commission approval in late Summer 2025.

EAH plans to submit its funding applications in March 2026 for AHSC, July 2026 for IIG, and to the California Tax Credit Allocation Committee (TCAC) for low-income tax credits in April 2027. EAH anticipates receiving its TCAC allocation in August 2027 and will start construction in early 2028, with construction completion and move-ins estimated in 2030.

Past Council Actions
Meeting Date Description
01/11/2022 City Council selection of development team for the former Parking Structure 3 site (PS3)
10/12/2021 City Council adopted the final 6th Cycle Housing Element Update (2021-2029)
07/13/2021 City Council awards Bid #2610 and RFP #2610 for the

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Demolition of Parking Structure #3 and development of site for affordable housing
06/25/2021 City Council provided direction to staff on the draft concepts and strategies to include in the 6th Cycle Housing Element Update
04/09/2019 City Council authorized staff to issue RFP for the development of affordable housing on PS3.

Housing Commission Recommendation
At its March 7, 2024 meeting, the Housing Commission recommended with a vote of 4-0 that the City Council approves EAH current plans with taking into consideration option one for reasons of speed, cost per unit, and low environmental impact; that there be a small but meaningful ground rent to cover services for the people living there; and at the end of the lease term, it is returned back to the City without any conditions.

Furthermore, the Housing Commission recommended that EAH considers other service providers than The People Concern if there are any breaches of their contract.

Environmental Status
Providing feedback and direction for affordable housing on the 1318 Fourth Street property would have no possibility of significant effect on the environment, and therefore, is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Additionally, the issuance of an RFP for development of affordable housing on 1318 Fourth Street was analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) [SCH No. 20212269242021] that was certified by Council on October 12, 2021, with an Addendum to the EIR approved on October 11, 2022. Development of affordable housing on City-owned properties implements a portion of that 6th Cycle Housing Element, and is consistent with the Housing Element EIR. Therefore, no further CEQA review is necessary.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action as a result of the recommended action. Staff will return to Council with proposed business terms associated with the proposed development, including any required investment of HTFs or other City resources.

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Prepared By: Natalie Verlinich, Housing Manager
Approved Forwarded to Council
Attachments:

A. April 9, 2019 Staff Report for RFP for Project Site (Web Link) B. January 11, 2022 Staff Report for selection of Development TEam (Web Link) C. Written Comments
D. PowerPoint Presentation

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From: Amy Anderson
To: councilmtgitems
Subject: Item 11.B
Date: Monday, April 8, 2024 9:17:55 PM

EXTERNAL
Honorable Mayor Brock and City Councilmembers,
I strongly support approval of Design Concept #1 for the Fourth Street affordable housing development and engagement of The People Concern as its supportive services provider. TPC is one of the most respected and in-demand service providers for supportive housing in the County.

I also urge the City Council to re-structure the process it uses to approve affordable housing on City-owned sites. Santa Monica is a model statewide for expediting affordable housing on private land – providing a path for administrative approval for both entitlements and financing.

The two-year process for approving the Fourth Street development, however, is an embarrassment and unconscionable. While the City tweaked and revised the project into perfection, Santa Monica neighbors slept on the streets.

Given the unanimous support on the Council for affordable housing development, I urge you to direct staff to use a more expedient approach for future City-owned sites and the remaining steps for this project. These projects don’t need input from every department, they don’t need input from every neighbor, they need to be built. Staff is well-meaning in its efforts and has worked hard to give shape to a project Council will support, but that process is too long. I urge the City Council to set quick and firm deadlines for moving these projects forward and to direct staff to prioritize expediting them, even if it requires foregoing traditional review and input steps.

Sincerely,
Amy Anderson
Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 686 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) 1 Xavier Mota
From: Ivette Gomez
Sent: Tuesday, April 9, 2024 10:14 AM
To: councilmtgitems
Cc: Xavier Mota; Natalie Verlinich
Subject: Housing Commission Letter to Council - April 9, 2024 Attachments: Housing Commission EAH Recommendation April 9, 2024.pdf Hello,
Please find the aƩached leƩer from the Housing Commission directed to Council for their meeƟng on Tuesday, April 9th.

Thank you
Ivette Gomez
Staff Assistant III
(310) 458-8540
(310) 458-2201 x5297
santamonica.gov
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Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 687 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) Housing Commission
April 9, 2024
Dear Mayor Brock, Vice Mayor Negrete, and City Councilmembers, I am writing on behalf of the Santa Monica Housing Commission regarding the EAH presentation concerning the project located at 1318 Fourth Street, Santa Monica, CA 90401, delivered at the March 7, 2024 Housing Commission meeting.

While the Housing Commission was not provided a copy of the EAH slide presentation or supporting materials in advance, we were able to ask important questions about building design, materials, parking, environmental issues, layout, community space, commercial space, and the chosen service provider for Permanent Supportive Housing services.

During our discussion, the Housing Commission expressed a number of concerns, including the potential for disruptive traffic because 3rd and 4th streets are commercial zones and heavier traffic could be caused by use of the attendant commercial space. Serious concerns were expressed about insufficient parking for tenants as well as the belief stated by EAH representatives that low income tenants need cars less than other residents, which the Housing Commission strenuously refuted.

The Housing Commission was pleased to see balconies shown in the renderings. When asked if they intended to actually provide balconies, EAH stated that they probably would not build balconies due to fear that balconies would be used for storage. The Housing Commission expressed concern about this second unfounded belief expressed by EAH about low income tenants and pointed out that such fear is baseless, and in any case insufficient reason to deprive tenants of balconies, which are important factors in helping tenants feel at home and access sun, fresh air, and outdoor space, all of which increase tenants’ quality of life, which enhances stability.

Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 688 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) The Housing Commission also expressed concern that fully ADA compliant disability accessibility was not reflected in the current design and must be included in the final plans, as well as concerns about using environmentally safe materials and avoiding using concrete and quartz countertops as they are toxic to humans.

The Housing Commission emphasized the need for sufficient numbers of windows to allow for natural light, a key component of quality of life and especially important to support the mental health of formerly homeless people, many of whom experience high rates of trauma. EAH was also encouraged to utilize solar panels to aid in tenant energy savings as well as sustainability.

The People Concern is EAH’s chosen service provider for the 4th Street project Permanent Supportive Housing services. In light of the recent Santa Monica Audit Subcommittee report showing a $1.4 million dollar deficit and numerous resident complaints about The People Concern, the Housing Commission expressed serious and valid concern about The People Concern’s ability to provide all necessary services in compliance with their contract.

After robust discussion the Housing Commission unanimously voted to recommend that City Council approve the current EAH plans taking into consideration option one for reasons of speed, cost per unit, and low environmental impact; that there be a small but meaningful ground rent to cover services for the people living there; and at the end of the lease term, it is returned back to the City without any conditions. Furthermore, the Housing Commission recommends that EAH consider other service providers than The People Concern if there are any breaches of their contract.

The Housing Commission thanks you for your consideration.

Sincerely,
Theresa H. Marasco
Housing Commission Vice Chair
Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 689 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) 1 Xavier Mota
From: Natalya Zernitskaya <[email protected]>
Sent: Tuesday, April 9, 2024 12:24 PM
To: councilmtgitems
Cc: Christine Parra; Jesse Zwick; Gleam Davis; Phil Brock; Lana Negrete; Caroline Torosis; Oscar de la Torre; David White
Subject: 4/9/2024 Council Agenda Item 11B- Support

EXTERNAL
April 9, 2024
Re: Agenda Item 11B
Dear Mayor Brock, Vice Mayor Negrete, and City Councilmembers, I urge you to adopt the staff recommendation and proceed with the next steps in transforming the former site of Parking Structure 3 into affordable housing. This is a great example of how the City can make good on our promises to use City-owned land to help alleviate some part of the housing crisis (and meet our RHNA goals) by using it for deed-restricted affordable housing.

Although I do wish that the project was a bit taller so we could get more than 122 new homes on this site, I believe that these 122 new homes will certainly help. After so many delays and other roadblocks that this project has encountered, I am relieved to see it moving forward and look forward to continuing to support affordable housing on City-owned sites (and throughout the City) in the future.

Sincerely,
Natalya Zernitskaya
Natalya Zernitskaya (she/her)
[email protected]
Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 690 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) 1 Xavier Mota
From: Santa Monica Forward <[email protected]> Sent: Tuesday, April 9, 2024 12:29 PM
To: councilmtgitems
Cc: Phil Brock; Lana Negrete; Gleam Davis; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick
Subject: Item 11B -- PS3 Affordable Housing -- SM Forward Letter Attachments: SM Forward Letter - Item 11B _ PS3 Affordable Housing .pdf

EXTERNAL
Dear Mayor Brock and Councilmembers,
Please find attached a letter from Santa Monica Forward on item 11B - PS3 Affordable Housing.

Best,
Brad Ewing and Carl Hansen
Co-Chairs, Santa Monica Forward
--
We are working for a diverse, progressive, sustainable and equitable Santa Monica.

SantaMonicaForward.org
Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 691 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) April 9, 2024
Subject: Item 11-B PS3 Affordable Housing
Dear Mayor Brock and City Councilmembers:

We are thrilled to see the plans for affordable housing advancing at the former Parking Structure 3 site. As you know, we are in the midst of a housing supply shortage and homelessness crisis that requires us to act with both urgency and openness to new ideas in light of the housing emergency we face.

While we strongly support this affordable housing and grocery concept, we would like to see more affordable units built here, and we are deeply concerned by the extremely high per unit development costs of the options proposed. Please move this project forward but insist on implementing any strategies we can to build more units and decrease per unit development costs.

For all future projects, we should adopt a much more cost-focused strategy that maximizes the production of affordable units.

If we are to meaningfully address the tremendous scale of our current housing shortage we need to explore how to bring these costs down – e.g. significantly less parking (to reduce construction and cost and keep the project in sync with our climate goals), other models like mixed income social housing that would allow us to achieve more income-restricted units at less cost, and/or more cost effective design and construction strategies.

We thank the city for its dedication to affordable housing and hope we can find new ways to get the most out of our limited resources. Each additional unit we can build because we were thoughtful and efficient in our spending, will provide a better life for the individuals or families who move in. Many things, like parking, may be nice to have, but the need for new housing units is much more serious and important for us to address than the need for convenient car storage.

Sincerely,
Bradley Ewing and Carl Hansen
Co-Chairs, Santa Monica Forward
Item 11.B.

April 9, 2024
Item 11.B.

April 9, 2024

11.B.c
Packet Pg. 692 Attachment: Written Comments [Revision 2] (6232 : Council Update/Feedback on Former PS3 Affordable Housing) 1318 Fourth Street, Santa Monica, CA
1318 Fourth St.

Agenda- April 2024
• EAH Housing Overview • Services/Tenant Selection • Community Outreach • Discussion of Design Concepts • Financing Affordable Housing • Timeline • Recommended Actions 1 11.B.d
Packet Pg. 693 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA EAH Housing Overview 2 11.B.d
Packet Pg. 694 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA EAH Housing Overview 3 Real Estate Development
• Developed 109 Properties
• $2.2B in current pipeline
• Over 1,100 units under construction
The Laurel Magnolia Villas

11.B.d
Packet Pg. 695 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA EAH Housing Overview 4 11.B.d
Packet Pg. 696 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA EAH Housing Overview 5 11.B.d
Packet Pg. 697 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Services/Tenant Selection 6 • Resident selection: City of Santa Monica Housing
Authority to provide 50 Project Based Voucher units
to be leased up through referral from Santa Monica
Housing Authority Special Needs Housing waitlist.

The 70 General Affordable units to
be referred through the City of Santa Monica's Below
Market Housing waitlist with work/live preference.
• Service Provision
• The People Concern will be directly contracted and
paid by Los Angeles County to provide intensive case
management services to the 50 Permanent
Supportive Housing units.
• EAH Resident Services Department will oversee
The People Concern and provide services to the 70
General Affordable units.

Services & Tenant Selection

11.B.d
Packet Pg. 698 Attachment: PowerPoint Presentation (6232 : Council

NORTHERN CALIFORNIA
84 West Santa Clara Street, Suite 840
San Jose, California 95113
Tel 408.537.0532

SOUTHERN CALIFORNIA
1738 Berkeley Street
Santa Monica, California 90404
Tel 310.394.0273
www.vtbs.com
DENVER
1875 Lawrence Street, Suite 800
Denver, Colorado 80202
Tel 303.675.0041
Van Tilburg, Banvard & Soderbergh, AIA

11.B.d
Packet Pg. 699 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Background
8 Community Outreach • Over a dozen community meetings
held both virtually and in person from
Nov 2022 to Apr 2023 with individuals
and community groups in the area.
• Outreach to diverse interest groups,
including DTSM, Chamber of
Commerce, Persons with Lived
Experience and local Community
Organizations.
• Discussions included retail space
usage, density, population served,
design elements, supportive services,
and service provider.

11.B.d
Packet Pg. 700 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Background
9 Community Outreach • Key Takeaways: • Positive reception to affordable housing
• Strong support for grocery
store in commercial space
• Services delivery for PSH very
important
• 122-unit design preferred.

11.B.d
Packet Pg. 701 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Preferred Development 10 No. of Units
122
• 44 Studios (378sf)
• 15 1BR (605-698sf)
• 31 2BR (890 sf)
• 32 3BR (1,026-1,141sf)
No. of Stories 6 Stories Above Ground
2 Levels Underground Parking
Parking Spaces 115 (59 Res /56 Comm)
Commercial • Grocery Retail
Site Amenities
• Community rooms
• On-site laundry
• On-site parking
• On-site management office
Population
Served
Families and 50 Units set aside for
formerly homeless.

Preferred Development – Design Concept 1

11.B.d
Packet Pg. 702 Attachment: PowerPoint Presentation (6232 : Council 5 How is affordable housing
financed?

11.B.d
Packet Pg. 703 Attachment: PowerPoint Presentation (6232 : Council How Affordable Housing is financed?
8 StateSources
Federal Sources
County
City

GAP FUNDING OPTIONS
60% to 70%
30% to 40%
Debt Investor Equity
Market Rate
Development
25% to 32%
18% to 25%
40 % to 50%
Funding Gap Debt Equity

11.B.d
Packet Pg. 704 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Option 1 13
Financing Design Concept 1 - Preferred (Sources)
122 + 2 UG Per Unit
Perm Loan $ 10,975,000 $ 89,959
Commercial Loan $ 1,584,000 $ 12,984
Affordable Housing Sustainable
Communities (AHSC/State) $ 31,555,787 $ 258,654
LACDA
Infill Infrastructure Grant (IIG/State) $ 7,500,000 $ 61,475 Multifamily Housing Program
(MHP/State)
City of Santa Monica $ 2,000,000 $ 16,393
City of Santa Monica add
Deferred Fee $ 14,428,271 $ 118,265
Equity $ 55,048,219 $ 451,215
Total $ 123,091,277 $ 1,008,944.89

11.B.d
Packet Pg. 705 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Option 1 14
Financing Design Concept 1
Pros:
• Cleaner execution due to less sources – MOST FEASIBLE OPTION • Tax Exempt Bond ($63M) and Equity ($55M) ask are in market and range for current funding programs – opens options to wider investor/lender for competition. • Deal Size is typical of ‘box’ for affordable housing finance • Building is more cost efficient to build
• No County funding needed
• Strong community support for this option
• Cost are significantly lower on a per unit/sf basis than larger development • No additional City Subsidy
Drawbacks:
• IIG funding levels currently low, unsure of availability • May need additional sources if IIG is not available (City/County/Fed)

11.B.d
Packet Pg. 706 Attachment: PowerPoint Presentation (6232 : Council 1318 Fourth Street, Santa Monica, CA Option 1 15
Financing Design Concept 1 - Preferred (Uses)
122 + 2 UG
Hard Costs $ 76,478,672
Architecture & Engineering $ 11,812,329
Construction Interest & Fees $ 12,598,030
Costs of Issuance $ 1,449,983
Soft Costs $ 20,752,263
Total $ 123,091,277