Santa Monica City Council
July 9, 2024

City of Santa Monica
City Council Meeting
AGENDA

PHIL BROCK
MAYOR

GLEAM DAVIS LANA NEGRETE

COUNCILMEMBER MAYOR PRO TEM

CHRISTINE PARRA CAROLINE TOROSIS

COUNCILMEMBER COUNCILMEMBER

JESSE ZWICK OSCAR DE LA TORRE

COUNCILMEMBER COUNCILMEMBER

DAVID WHITE

CITY MANAGER

DOUGLAS SLOAN

CITY ATTORNEY

NIKIMA NEWSOME

INTERIM CITY CLERK

STANDARDS OF BEHAVIOR THAT PROMOTE CIVILITY AT ALL PUBLIC MEETINGS:
• Treat everyone courteously; • Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive
public process, and tools for forging sound decisions
• Hate has no place in Santa Monica. The City opposes
abusive or threatening hate speech, intolerance, or
dehumanization, and supports basic civil respect and
human decency.
• Listen to others respectfully;
• Exercise self-control;
• Give open-minded consideration
to all viewpoints;
• Focus on the issues and avoid
personalizing debate;
Regular meetings are broadcast live on CityTV cable channel 16 and on the internet at santamonica.gov. Cable television re-broadcasts air on Thursday and Saturday at 11:30 AM. The agenda will air on CityTV on Saturday and Sunday at 11:00 AM and 6:00 PM, and on Monday and Tuesday at 12:30 PM and 6:00 PM.

City of Santa Monica Generated: 7/16/2024 12:30 PM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11585(CCS))

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

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

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

Levine Act Disclosure. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $250 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.

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

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

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

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

4. Closed Session.

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

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

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

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

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

16. Councilmember Discussion Items.

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

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

City of Santa Monica Generated: 7/16/2024 12:30 PM Page 3

AGENDAS

CITY OF SANTA MONICA

REGULAR MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
TUESDAY, JULY 9, 2024
MEETING BEGINS AT 5:30 PM
HOW TO PROVIDE WRITTEN PUBLIC COMMENT:

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

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

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL
Levine Act Disclosure. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $250 made by the party or the party's agents within the preceding 12 months to any City official.

Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.

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

1.A. Written Comments

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

ITEMS, CONSENT CALENDAR ONLY)

3. SPECIAL AGENDA ITEMS

3.A. Commendation: Jenna Wilker
City of Santa Monica Generated: 7/16/2024 12:30 PM Page 4

3.B. Commendation: McCabe’s Guitar Shop

3.C. Proclamation: Parks and Recreation Month

3.D. City Manager Report

4. CLOSED SESSIONS

4.A. Consider appointment of unrepresented employee - Government Code §54957(b); City negotiator: Mayor; Unrepresented employee: City Clerk; conference with labor negotiator - Gov. Code §54957.6; City negotiator: Mayor; Unrepresented employee: City Clerk - New Item Received. 7/05/2024

4.B. Conference with real estate negotiator - Gov. Code §54956.8; property: 1333 4th Street, Santa Monica, California (Chase Bank) (APN 4291-011-910); City negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Economic Development Administrator; owner of record: City of Santa Monica; persons to be negotiated with: John M. Lindskog, JP Morgan Chase; under negotiation: price and terms of payment - New Item Received. 7/05/2024

4.C. Conference with real estate negotiator - Gov. Code §54956.8; property: 1444 7th Street, Santa Monica, California (Old Fire Station 1) (APN 4291-020-900); City negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Economic Development Administrator; owner of record: City of Santa Monica; persons to be negotiated with: Jesse Slansky, West Hollywood Community Housing Corporation under negotiation: price and terms of payment - New Item Received. 7/05/2024

4.D. Conference with legal counsel - existing litigation - Gov. Code § 54956.9(d)(1):

Anna Marie Onaindia v. City of Santa Monica; LASC Case No. 21STCV30384 [report out only]. - New Item Received. 7/05/2024
The following is the order of business for items to be heard no earlier than 7:00 p.m.

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

5.A. Approval of the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2024-25 Budget and Work Plan
City of Santa Monica Generated: 7/16/2024 12:30 PM Page 5 Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Approve the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2024-25 Budget and Work Plan.

5.B. Approval of the Santa Monica Tourism Marketing District Fiscal Year 2024-25 Budget and Work Plan
Recommended Action
Staff recommends that the City Council:

1. Approve the Santa Monica Tourism Marketing District Fiscal Year 2024-25 Budget and Work Plan; and,

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

5.C. Approval of the Pier Corp Fiscal Year 2024-25 Budget and Work Plan 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. Approve the Santa Monica Pier Corporation Fiscal Year 2024-25 Budget and Work Plan; and

3. Authorize the City Manager to execute a fifth modification to Services Agreement No. 10101 between the City and the Santa Monica Pier Corporation.

5.D. Award Contracts for Virginia Avenue Park and Marine Park Basketball Courts Recommended Action
Staff recommends that the City Council:

1. Award Bids #SP2706 and #SP2707 to Pacific Tennis Courts, Inc. for design and construction services for the Marine Park Basketball Court Reconstruction and Virginia Avenue Park Basketball Court Reconstruction Projects, respectively;

2. Authorize the City Manager to negotiate and execute contracts with Pacific Tennis Courts, Inc. in an amount not to exceed $345,000 (including a 15% contingency) for Marine Park (SP2706) and $345,000 (including a 15% contingency) for Virginia Avenue Park (SP2707);

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

4. Adopt a finding of categorical exemptions pursuant to Sections 15301 and 15302 of the California Environmental Quality Act (CEQA) Guidelines.

5.E. Approval of Memorandum of Understanding (MOU) with StartupStarter for Santa Monica Hub Innovation Event Including Road Closure City of Santa Monica Generated: 7/16/2024 12:30 PM Page 6 Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with StartupStarter to sponsor a one-day street closure event called Santa Monica Innovation Hub on Monday, October 14, 2024;

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

5.F. Award Agreement with Cosco Fire Protection for Citywide Fire Alarm and Sprinkler Services
Recommended Action
Staff recommends that the City Council:

1. Award Bid #4481 to Cosco Fire Protection for fire protection services for various City locations as required by the Public Works Department;

2. Authorize the City Manager to negotiate and execute an agreement with Cosco Fire Protection, in an amount not to exceed $1,837,428 for five-years, with future year funding contingent on Council budget approval; and

3. Adopt a finding of categorical exemptions pursuant to Section 15301, and Section 15302 of the California Environmental Quality Act (CEQA) Guidelines.

5.G. Approval of Request for Proposal of a Professional Services Agreement with Rising Realty Partners for Property Management of Bergamot Station Arts Center
Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 407 to Rising Realty Partners for property management services for the Community Development Department; and

3. Authorize the City Manager to negotiate and execute an agreement with Rising Realty Partners, in an amount not to exceed $667,500 including a $60,800 contingency for three years, with two-additional one-year renewal options in the amount of $479,200 on the same terms and conditions for a total amount not to exceed $1,146,700 over a five-year period, with future year funding contingent on Council budget approval.

5.H. Award Contract to Thompson Reuters for Subscriber Agreement for Purchase of and Access to Online Legal Research Subscription
Recommended Action
Staff recommends that the City Council:

1. Award RFP #409 to Thomson Reuters for access to online legal research materials for the City Attorney’s Office;
City of Santa Monica Generated: 7/16/2024 12:30 PM Page 7

2. Authorize the City Manager to negotiate and execute an agreement with Thomson Reuters, a Minnesota–based company, in an amount not to exceed $495,000 for three years with two one-year renewal options; and

3. Adopt a finding of Categorical Exemptions pursuant to Section15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

5.I. Authorization to Accept California CUPA Environmental Trust Fund Grant Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to accept a grant awarded in the amount of $58,585 from the California CUPA Forum Environmental Trust Fund in the Fire Department, and to accept all grant renewals;

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

3. Authorize budget amendment as outlined in the Financial Impacts & Budget Action section of this report (requires 5 votes); and

4. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines.

5.J. Adoption of a Resolution Authorizing an Agreement with the California Department of Parks and Recreation Division of Boating and Waterways for the California Marine Law Enforcement Training Program - New Item Received. 7/05/2024
Recommended Action
Staff recommends that the City Council:

1. Adopt the attached resolution authorizing an agreement with the California Department of Parks and Recreation, Division of Boating and Waterways for the California Marine Law Enforcement Training Program.

2. Authorize the City Manager to execute all necessary documents to participate in the Marine Law Enforcement Training Program and to accept all renewals.

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

5.K. City Council - Special Meeting - Jun 25, 2024 4:30 PM - New Item Received. 7/05/2024

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS
. Written Comments for Item 6 Agenda Items

7. STUDY SESSION
No items

8. CONTINUED ITEMS
City of Santa Monica Generated: 7/16/2024 12:30 PM Page 8

8.A. Annual Appointments to the following Boards and Commissions: (Continued from 6/25/2024) - New Item Received. 7/05/2024
Board/Commission Number
of
Appts
Term
End Date
Requirements
Airport Commission 1 6/30/2028 Santa Monica Resident.

Architectural Review Board 2 6/30/2028 -
Arts Commission 2 6/30/2028 Reside or work in Santa Monica Building & Fire-Life Safety 1 6/30/2028 Civil or Structural Engineer 1 6/30/2028 California Licensed Building
Contractor
1 6/30/2028 California Certified Access
Specialist
1 6/30/2028 California Registered Fire
Protection Engineer
Commission on
Sustainability, Environmental
Justice & the Environment
2 6/30/2028 Reside or work in Santa Monica.

Disabilities Commission 3 6/30/2028 Reside or work in Santa Monica and self-identify as a person with a
disability.

Downtown Santa Monica, Inc. 3 6/30/2028 Must reside or be employed, own property, or hold business license in
Santa Monica.

Housing Commission 1 6/30/2028 Reside in Santa Monica
Human Services Commission 2 6/30/2028 Reside in Santa Monica.

Landmarks Commission 1 6/30/2028 Reside in Santa Monica and California Real Estate Licensee.
1 6/30/2028 Reside in Santa Monica and
Licensed Architect.

Metropolitan Water District 1 6/30/2028 -
Personnel Board 1 6/30/2028 Reside in Santa Monica or is a resident of Los Angeles County that
is employed full-time within the City,
or owns real property in the City, or
has been issued a business license
by the City.

Planning Commission 2 6/30/2028 Reside in Santa Monica.

Public Safety Reform &
Oversight Commission
2 6/30/2028 Reside in Santa Monica.

Recreation & Parks
Commission
3 6/30/2028 Reside in Santa Monica.

Library Board 1 6/30/2028 Reside in Santa Monica.

Santa Monica Pier
Corporation
3 6/30/2028 Reside, work or do business in
Santa Monica.

City of Santa Monica Generated: 7/16/2024 12:30 PM Page 9

9. ADMINISTRATIVE PROCEEDINGS
No items

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

11. STAFF ADMINISTRATIVE ITEMS

11.A. Approval of Big Blue Bus Comprehensive Operational Analysis (COA) Recommendations
Recommended Action
Staff Recommends that the City Council:

1. Adopt a finding of statutory exemption pursuant to Section 21080.25(b)(5) of the California Environmental Quality Act (CEQA).

2. Approve the proposed Brighter Blue five-year service plan for Big Blue Bus.

12. PUBLIC HEARINGS
No items

13. REPORTS OF BOARDS AND COMMISSIONS
No items

14. RESOLUTIONS

14.A. Legal Options for Investigations - New Item Received. 7/05/2024 Recommended Action
Staff recommends that the City Council:

1. Review options and recommendations concerning policies, investigations, and remedies for violations by Councilmembers and Council appointees for Brown Act and other laws or policies applicable to City employees; and

2. Consider approving one of the options or providing further direction.

15. WRITTEN COMMUNICATIONS OTHER THAN REPORTS OF COMMISSION AND

OFFICERS
No items

16. COUNCILMEMBER DISCUSSION ITEMS
City of Santa Monica Generated: 7/16/2024 12:30 PM Page 10

16.A. Appointment to one unscheduled vacancy on the Human Services Commission for a term ending on June 30, 2027.

16.B. Request from the Santa Monica Library Board to assign a Council member as the Board’s Council Liaison

16.C. The City must do more to address public safety and the homelessness crisis.

The efforts from Mayor Brock to reallocate a portion of the City budget to this effort and Councilmember Zwick to consider the revenue generating tax measure to meet and exceed our public safety goals is appreciated. This motion bridges those two ideas. The City Council was thoughtful and cautious in adopting a balanced budget. However, the City faces a difficult economic climate, slow recovery, a challenging labor market, required deferred maintenance, and continued uncertainty in our legal liabilities. In adopting the FY 24-25 budget, the City reallocated resources to address public safety concerns but we need to do more as Mayor Brock conveyed at the last City Council meeting. The public needs to understand that the City has not recovered the pandemic and resources are limited. For this reason, the City Council must pursue new revenue opportunities to address our public safety needs. Keeping our community safe is our first priority. - New Item Received. 7/05/2024
Therefore, Vice Mayor Lana Negrete is asking the City Council to direct the City Manager to immediately halt the process to identify tradeoffs and budget reallocations within the existing budget. Rather, the City Manager should be directed to:

1. Provide a high-level overview of potential impacts to the organization, along with programs and services, if budget reallocations were to be implemented without additional revenue.

2. Bring the Parking Facility Tax that was discussed on June 25, 2024, back to City Council on July 23, 2024, and direct the City Attorney and City Manager to develop an advisory measure for the Parking Facility Tax indicating that half of the additional revenue generated by the measure should be allocated to address public safety.

3. Return to City Council as soon as possible but no later than September with a study session item with new proposals and an overview of the work that is currently underway to identify what is needed to enhance public safety and address homelessness. The study session be informed by recommendations from the Police Department, Fire Department, Housing and Human Services Department, Office of Emergency Management, and the City Attorney’s Office to provide the City Council with critical information to deploy resources generated by the resources from the Parking Facility Tax.

16.D. Request of Mayor Pro Tem Negrete and Councilmember de la Torre that the City Attorney and City Manager return to City Council with an evaluation of the recent Grants Pass Supreme Court decision and provide options to amend the City's Municipal Code that are consistent with the ruling and the city’s commitment to clean and safe - New Item Received. 7/05/2024 City of Santa Monica Generated: 7/16/2024 12:30 PM Page 11

16.E. Request from Mayor Pro Tem Negrete that the city council direct the City Manager to work with The Proof of Workforce Foundation, a Nonprofit, to pilot a Santa Monica Bitcoin Office program, at no cost, to explore the following initiatives: - New Item Received. 7/05/2024

1. Bitcoin education for Santa Monica residents, students, businesses and workforce;

2. Identify and facilitate Bitcoin initiatives/partnerships that support Santa Monica’s economic recovery and cultivate economic growth, while attracting a global Bitcoin Conference and tourism industry;

3. Identify remote and local career opportunities for Santa Monica residents and students; and

4. Explore the potential of utilizing stranded city generated renewable energy to explore environmentally neutral bitcoin mining.

These initiatives shall be brought back to the city council by no more than 90 days.

16.F. Request of Mayor Brock that the City Council allocate up to $9,000 of discretionary funds to the Public Works Department to enhance the community tree giveaway program - New Item Received. 7/05/2024

ADJOURNMENT

17. Staff Reports

17.1. Written Comments for Item 6 Agenda Items
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 12 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online. Members of the public who submit written public comment on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $250 to an officer of the City within the preceding 12 months.

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

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y City of Santa Monica Generated: 7/16/2024 12:30 PM Page 12 pida hablar con Esterlina Lugo.

Santa Monica Blue Bus Lines #1, #2, #3, #5, #9 and the EXPO Line serve City Hall.

Parking is available on Main Street, on Olympic Drive, and in the Civic Center Parking Structure (validation free).

City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 1.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: Written Comments
Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:

A. Written Comments

1.A
Packet Pg. 13
Item 1
July 9, 2024
Item 1
July 9, 2024

1.A.a
Packet Pg. 14
Attachment: Written Comments [Revision 1] (6516 : Written Comments) 1 David Yakobson
From: John Alle <[email protected]>
Sent: Monday, July 8, 2024 12:20 PM
To: Christine Parra; Oscar de la Torre; Phil Brock
Cc: The Santa Monica Coalition Organizer
Subject: Fwd: Request for New 16 Agenda Item for City Council Meeting July 9, 2024

EXTERNAL
Dear Councilmembers Parra and de la Torre, and Mayor Brock, Third request, again, for your commitment, consensus and agreement to place the (attached) proposed 16 Agenda Item on the July 23, 2024 City Council Agenda.

So great we have gotten so far but we must finish the job and fulfill the original intent.

We must close the loopholes that currently exist with the similar 16 Agenda Item Council recently passed. It was noble that you passed the last resolution, but unfortunately it is missing critical items.

We will use all means available to regain for residents and visitors their right to safely use the grassy areas of their parks and end all distribution of drug paraphernalia in our parks and outdoor public spaces.

No needles, glass pipes or any drug paraphernalia should be distributed in any park or outdoor public space in Santa Monica by any party, regardless of whether they are a recipient of City funds or Homeless Services Grant money.

And, you, as members of Santa Monica's legislative body, have the legal right, jurisdiction and obligation, to approve any type of program the LA County Public Health Department wishes to implement in our charter city. You must not ignore your legal responsibility or consider your silence as a tradeoff on any other item or funds the LA County Supervisors dangle in return.

And, please read the emails and the two Joint Statements I sent each of you between Santa Monica City Manager David White and the decision-makers at the LA County Public Health Department.

Looking forward to hearing from you within 48 hours so that we can get this resolved and put it behind us..

Respectfully,
John Alle
Cofounder, The Santa Monica Coalition
---------- Forwarded message ---------
From: John Alle <[email protected]>
Date: Wed, Jul 3, 2024 at 2:09 PM
Item 1
July 9, 2024
Item 1
July 9, 2024

1.A.a
Packet Pg. 15
Attachment: Written Comments [Revision 1] (6516 : Written Comments) 2 Subject: Request for New 16 Agenda Item for City Council Meeting July 9, 2024 To: Christine Parra <[email protected]>, Oscar de la Torre <[email protected]> Cc: Phil Brock <[email protected]>
July 3, 2024
Councilmember Christine Parra cc: Mayor Phil Brock
Councilmember Oscar de la Torre
City of Santa Monica, California
Dear Christine and Oscar,
Monday evening within the first 10 minutes of the well-attended Northeast Neighbors and Friends Neighborhood Association Meeting, Mayor Brock agreed to co-sponsor or support a new 16 Agenda Item that would expand upon a similar Council-approved resolution (passed April 9. 2024) and that was a Councilmember Discussion Item passed May 14, 2024.

Would the two of you agree to sponsor a new 16 Agenda Item (proposed ordinance) to be drafted that would accomplish the following - -
Eliminate the distribution by County or any County-affiliated, non County-affiliated, third party, and/or independent private entity, of all drug paraphernalia and equipment, including but not limited to needles, syringes, glass pipes, straws, rolling paper, miniature spoons, etc., in our parks, common spaces and anywhere closer than 1,000 feet away from any school, church, senior center or senior living facility. The only exception would be Narcan, which helps save, not kill people.

The Santa Monica Coalition (of which I am one of the cofounders), comprised of over 5,000 Santa Monica residents, business owners and locals, is hoping you can be proactive on this matter and introduce it in the next City Council Meeting, rather than have the issue linger and force The Santa Monica Coalition to collect the same 22,200 signatures (or more) we obtained for the first Resolution, and again make the issue a central topic of public discussion.

As you know, the County is now contracting with UCLA, a new independent substitute entity that is not currently a city-grant recipient, and other private entities are entering the parks for the same activities the original 16 Item addressed. Further, the Venice Family Clinic, a recipient of city grant funds, is entering into the grassy areas of the parks from unmarked sedans and distributing glass pipes. Distribution of glass pipes by employees of Venice Family Clinic was witnessed first-hand by Mayor Brock and Vice Mayor Negrete last month in Reed Park, and by Vice Mayor Negrete in Tongva Park.

This new resolution should close all loopholes and satisfy the main intent of the resolution passed May 14, 2024.

Time is of the essence as we want to make the required deadline for getting this item on Tuesday's City Council Meeting Agenda.

Thank you,
Item 1
July 9, 2024
Item 1
July 9, 2024

1.A.a
Packet Pg. 16
Attachment: Written Comments [Revision 1] (6516 : Written Comments) 3 John Alle 310 990 7124
Cofounder, The Santa Monica Coalition.
@santamonicacoalition
--
John E. Alle

JOHN ALLE COMPANY
www.johnallecompany.com
www.thesantamonicacoalition.org
Cell: (310) 990-7124
Office: (626) 795-1511 (310) 319-1511
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation to the contents of this information is strictly prohibited and may be unlawful. Kindly delete.

Item 1
July 9, 2024
Item 1
July 9, 2024

1.A.a
Packet Pg. 17
Attachment: Written Comments [Revision 1] (6516 : Written Comments) 4 David Yakobson
From: Jaime Raxten <[email protected]>
Sent: Saturday, July 6, 2024 11:02 AM
To: Phil Brock; Lana Negrete
Cc: Gleam Davis; Christine Parra; Jesse Zwick; Caroline Torosis; Oscar de la Torre; [email protected]; councilmtgitems
Subject: PREVALENCE OF SQUIRRELS - PALISADES PARK

EXTERNAL
Mayor Pro Tem Negrete:

I contacted you on June 19th regarding the massive presence of squirrels in Palisades Park.

You told me that you would look into the matter.

I haven't heard back from you.

Many times I am unable to cross through the park to access the bridges over PCH to access the beach.

My A.D.A. issues are formally recognized and I have a formal trained Service dog.

It was an option that you get back to me in this situation.

I am your constituent.

Other residents in my building are having a similar problem.

I need this situation addressed in a timely manner.

I would appreciate a timely response from you.

Mr. Raxten
1530 5th Street, #511.

Item 1
July 9, 2024
Item 1
July 9, 2024

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Attachment: Written Comments [Revision 1] (6516 : Written Comments) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 3.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Special Agenda Items Subject: Commendation: Jenna Wilker
Prepared By: Gilbert Portillo, Administrative Staff Assistant Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 3.B
1 of 1
To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Commendation: McCabe’s Guitar Shop
Prepared By: Sergio Ramirez, Chief of Staff
Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 3.C
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Special Agenda Items Subject: Proclamation: Parks and Recreation Month
Prepared By: Gilbert Portillo, Administrative Staff Assistant Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 3.D
1 of 1
To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: City Manager Report
Prepared By: Sergio Ramirez, Chief of Staff
Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 4.C
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office Subject: Conference with real estate negotiator - Gov. Code §54956.8; property: 1444 7th Street, Santa Monica, California (Old Fire Station 1) (APN 4291-020-900); City negotiators: Jennifer Taylor, Economic Development Manager, and Nia Tang, Economic Development Administrator; owner of record: City of Santa Monica; persons to be negotiated with: Jesse Slansky, West Hollywood Community Housing Corporation under negotiation: price and terms of payment
Prepared By: Douglas Sloan, City Attorney
Approved Forwarded to Council
Attachments:

A. Written Comments

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1 David Yakobson
From: Carrie Davich <[email protected]>
Sent: Sunday, July 7, 2024 7:37 PM
To: councilmtgitems; Christine Parra
Subject: I support housing over parking

EXTERNAL
I support building affordable housing in Santa Monica, even if we have to give up a few parking lots! There are so many people who need an affordable place to live.

The traffic coming in to and out of SM is worse because people can’t afford to live near their place of work.

Please build the much needed HCHC affordable housing near Wilshire and 14th Street.

Thank you,
Carrie Davich
--
Carrie Davich
55 East Holly Street
Pasadena CA 91103
626-577-3400
[email protected]
Item 4-C
July 9, 2024
Item 4-C
July 9, 2024

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Attachment: Written Comments (6517 : Closed Session 4.C.) 2 David Yakobson
From: Stories From the Frontline <[email protected]> Sent: Sunday, July 7, 2024 2:20 PM
To: councilmtgitems; [email protected]
Subject: I support housing over parking

EXTERNAL
I support building affordable housing in Santa Monica, even if we have to give up a few parking lots! There are so many people who need an affordable place to live.

The traffic coming in to and out of SM is worse because people can’t afford to live near their place of work.

Please build the much needed HCHC affordable housing near Wilshire and 14th Street.

Thank you
Item 4-C
July 9, 2024
Item 4-C
July 9, 2024

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Attachment: Written Comments (6517 : Closed Session 4.C.) 3 David Yakobson
From: Marilyn Wells <[email protected]>
Sent: Saturday, July 6, 2024 4:11 PM
To: councilmtgitems; [email protected]
Subject: I support housing over parking

EXTERNAL
I support building affordable housing in Santa Monica, even if we have to give up a few parking lots!! Please build the HCHC affordable housing near Wilshire and 14th Street.

I serve on the Rape Treatment Board. I care that our SM families have affordable housing in SM.

Thank you,
Marilyn
Item 4-C
July 9, 2024
Item 4-C
July 9, 2024

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Attachment: Written Comments (6517 : Closed Session 4.C.) 4 David Yakobson
From: allison schallert <[email protected]>
Sent: Saturday, July 6, 2024 4:08 PM
To: councilmtgitems; [email protected]
Subject: I support housing over parking

EXTERNAL
I support building affordable housing in Santa Monica, even if we have to give up a few parking lots!! Please build the HCHC affordable housing near Wilshire and 14th Street. Thanks! Item 4-C
July 9, 2024
Item 4-C
July 9, 2024

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Attachment: Written Comments (6517 : Closed Session 4.C.) 5 David Yakobson
From: allison schallert <[email protected]>
Sent: Saturday, July 6, 2024 3:52 PM
To: councilmtgitems; [email protected]
Subject: I support housing over parking

EXTERNAL
I support building affordable housing in Santa Monica, even if we have to give up a few parking lots!! Please build the HCHC affordable housing near Wilshire and 14th Street. Thanks! Allison Schallert
Long time employee of the Rape Treatment Center
Item 4-C
July 9, 2024
Item 4-C
July 9, 2024

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Attachment: Written Comments (6517 : Closed Session 4.C.) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.A
1 of 7
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2024-25 Budget and Work Plan
Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Approve the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2024-25 Budget and Work Plan.

Summary
Santa Monica's Downtown area is a significant driver of the City's commercial, cultural and tourism economy. Downtown Santa Monica, Inc., (“DTSM”) is a non-profit corporation organized under state law that currently administers the downtown Santa Monica Property-Based Assessment District (“PBAD") that is comprised of commercial properties and businesses located in the downtown Santa Monica area, including the Third Street Promenade. The mission of DTSM, Inc. is to work with the City of Santa Monica to promote economic stability, growth, and community life within Downtown Santa Monica. The roles and responsibilities of DTSM are defined in the Master Services Agreement (#9063 CCS) and annual DTSM Work Plan. Under this agreement, the City authorizes DTSM to manage and provide a variety of programs and services related to the operation of the PBAD.

The Downtown Santa Monica PBAD continues to be the business district that has been most heavily affected by the lasting impacts of the COVID-19 pandemic, which curtailed tourism and accelerated global trends in the retail industry as more shoppers opted to

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shop online instead of visiting brick-and-mortar stores. While tourism is rebounding and new businesses are opening, the prolonged economic recovery is especially noticeable on the Third Street Promenade. The City and DTSM have a long-standing collaborative relationship and are prioritizing resources to help expedite the downtown district’s overall economic recovery, including addressing concerns of security, safety, maintenance and homelessness, while pursuing proactive, collaborative economic development efforts to retain and attract businesses and investment to the Downtown, as outlined in the FY 2024-25 Work Plan and Budget.

The adoption of the proposed Work Plan and Budget for Fiscal Year 2024-25 authorizes DTSM’s continued operations and the City’s quarterly revenue disbursement for services, in accordance with the Master Services Agreement.

Discussion
DTSM is a 501(c)(3) non-profit organization that is under contract with the City to administer business and property-based assessment districts, including the management of a variety of programs, services, and operations to support economic stability, growth, and community life in downtown Santa Monica. DTSM provides hospitality and maintenance services, programs a year-round calendar of community events, including the SaMoPride Festival, the upcoming roller skating and ICE skating rink activations on the City-owned Lot 27 parking lot (5 th Street at Arizona Avenue) and
continued efforts to promote Downtown as a vibrant shopping, dining, and entertainment destination.

Efforts this last fiscal year and into the current Fiscal Year 2024-25 prioritize the inclusive and equitable economic recovery of the district with emphasis on public safety, creating a clean and welcoming environment, activating a vibrant public space, and advocating for policies that support the business community as outlined in the DTSM Work Plan. Last year, the City and DTSM launched the Private Security Pilot Program – a one-year pilot program (December 1, 2023 to November 30, 2024) to authorize DTSM to fund and retain private security services for downtown SM at a cost of approximately $1.7 million. The Santa Monica Police Department and DTSM are

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monitoring the pilot program to determine potential security options that continue to build upon SMPD’s Downtown Services Unit deployment of 15 officers and 2 sergeants contracted overnight security in the parking structures provided by Good Guard. DTSM annual budget includes funding for this program through December. Any additional enhanced daytime security beyond the Pilot Security Program would necessitate making changes to the Services Agreement. If the desire on all sides is to extend the Pilot, staff will return to Council with proposed changes and options for Council's consideration.

DTSM and the City also continue to work closely together to identify the best strategies to support the health and vitality of the Promenade and overall PBAD, including adjusting services to prioritize clean and safe efforts throughout the downtown district and identifying opportunities to leverage City-owned property to support Downtown’s economic recovery, including the upcoming seasonal roller skating and ICE holiday skating at Lot 27 (452 Arizona Avenue) and the transformation of the City-owned 1437 4 th St into the Haibu family attraction (opening this summer). There is focused effort on revitalizing the 1200 Block of the Third Street Promenade in accordance with Council direction and over the past two years, the City has implemented Downtown District zoning changes to support new and expanded business operations on this block with focus on dining and entertainment, along with allowing for more flexibility for new business uses throughout the Downtown core area. DTSM is instrumental in helping to market and promote these economic development tools to their members (businesses, property owners) and local real estate brokers.

On May 23, 2024, the DTSM Board adopted their annual budget and work plan, both of which are consistent with existing organizational priorities and investments, with significant funding priority for community safety and increased funding for Economic Development. In addition, DTSM staff also continue to work in close partnership with the City’s Promenade Maintenance Team and Parking Operations Office to monitor and enhance cleaning services throughout the downtown district. For FY 2024-25, DTSM has allocated funding for enhanced custodial maintenance services including power washing and as-needed hot spot cleaning of key public spaces, including sidewalks,

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crosswalks and alleys. Reactivating public spaces in Downtown through placemaking, beautification and events, is also a high priority for DTSM in this fiscal year with proposed changes to include funds to purchase more street furniture for the Promenade and new decorative lighting for the district. The community events and activations budget has also been increased to help fund a full calendar of events and programs to encourage visitors to the Downtown area year-round. Retaining and attracting businesses and investors to the Downtown is also a high priority for FY 2024-25 with DTSM allotting additional funds towards Economic Development and advertising to help fund positive news on new business openings, to help promote the ease of doing business in Santa Monica and earmarking funds for more business events such as quarterly Broker Happy Hours, all done in close partnership with City’s Community Development Department.

Funding for the programs, services, and operations comes from revenue generated from two business-based assessment districts:
• The Central Business District (CBD), established in 1966, is funded by retail businesses in the CBD
• The Operation and Maintenance Assessment (Bayside Assessment), established in 1986, is funded by all businesses within the Bayside District And three property-based assessment districts:
• The Downtown Santa Monica Property-Based Assessment District (Downtown PBAD), established in 2008.
• The Lincoln Boulevard Property-Based Assessment District (Lincoln PBAD) established in 2015.
• The Colorado Avenue Overlay Zone (Colorado Overlay) established in 2015.

The Master Services Agreement between the City and DTSM requires the annual preparation and approval of a budget and work plan. In accordance with this requirement, DTSM has submitted its FY 2024-25 budget and work plan for Council review and approval.

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FY 2024-25 Budget
DTSM has prepared a budget for FY 2024-25 with anticipated revenues of $9,370,228 and anticipated expenditures of $9,436,809 (Attachment A). The deficit would be funded by DTSM cash reserves, however DTSM is optimistic that they may be able to secure more event sponsorship revenue than forecasted to cover this funding gap. The DTSM Board of Directors adopted the annual budget and work plan on May 23, 2024.

In response to the current economic climate, DTSM did not increase the assessment rates. Overall projected revenues reflect an 8% decrease from DTSM’s FY 2023-24 budget. The primary reason for the deficit is due to projected drop in ICE sponsorship and income revenue, compared to FY 2023-24 where DTSM was able to secure Netflix sponsorship.

Operational Work Plan for FY 2024-25
The proposed Work Plan details DTSM’s operational and programming initiatives for FY 2024-25 (Attachment B). The work plan’s three strategic areas are:

1. Operations and Public Space Management: A clean, safe, and welcoming environment is the foundation for success in Downtown Santa Monica. DTSM provides enhanced services in the areas of public safety, custodial maintenance, and social outreach, while also providing oversight of City of Santa Monica services. Together, DTSM and the City fulfill the responsibility of creating a thriving and inviting community space for everyone. Operations and Public Space Management services make up 72% of the DTSM, Inc’s FY2024-25 Budget. This priority area includes the following directives: Public Safety, Advocacy and Oversight, Parking Structure Custodial Maintenance, Enhanced Custodial Maintenance, Parks Attendant/Restroom Monitoring and Social Outreach, and Placemaking and Beautification.

2. Communications, Events, & Development: DTSM furthers the reputation and economic vitality of Downtown Santa Monica and the Third Street Promenade through consistent branded communications, hosted and facilitated events, and economic development. Communications, Events and Development services make up 21 % of the DTSM FY2024-25 Budget. This priority area includes the following directives:

Community Events and Activations, Partnerships, Public Relations and Promotions,

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Economic Development and Advocacy, Data and Research, and Communications and Outreach.

3. Organization Management: DTSM is an efficient and effective organization that employs a professional staff to manage relationships and services that support Downtown Santa Monica. These functions require centralized administrative support funded through revenues received by DTSM throughout the fiscal year. Organizational Management services make up 7% of the DTSM FY2024-25 Budget. This priority area includes: Administrative Functions, Professional Support, and Board and Staff Education and Development.

Past Council Actions
Meeting Date Description
07/25/23 (attachment
A)
DTSM FY23/24 Budget and Work Plan and Master Services
Agreement
Environmental Review
The proposed DTSM agreements with the City are exempt from CEQA pursuant to Section 15061(b)(3), 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 agreements are administrative in nature, and would provide for continued operations and budgeting for DTSM services. Therefore, it can be seen with certainty that the recommended actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

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

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Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council
Attachments:

A. DTSM Budget FY24-25 Draft
B. FY 24-25 DTSM Annual Work Plan
C. Written Comments

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Revenues FY23/24 FY24/25 % Diff.

Bayside District Assessment $1,320,880.00 $1,182,128.55 89.50% CBD Assessment $110,000.00 $137,323.53 124.84%
Zone 1/2/3 Assessment $4,694,654.00 $4,753,583.97 101.26% Zone L Assessment $505,925.00 $567,818.80 112.23%
Zone O Assessment $406,938.00 $413,169.60 101.53%
City Parks Program $1,495,636.00 $1,569,204.00 104.92%
Vending and Activations $52,000.00 $125,000.00 240.38%
Event Fees & Filming $200,000.00 $200,000.00 100.00%
ICE@SM $1,320,000.00 $320,000.00 24.24%
Other Income $102,000.00 $102,000.00 100.00%
Total FY23/24 Revenue $10,208,033.00 $9,370,228.45 91.79% Expenditures FY23/24 FY24/25 % Diff.

Operations and Public Space Management (71.87%)
- Downtown Security Services $1,700,000.00 $710,000.00 41.76% - Parking Structure Maintenance $994,088.02 $1,296,682.71 130.44% - Zone 1, 2, & 3 Maintenance $1,024,261.80 $1,078,593.72 105.30% - Lincoln Blvd. Maintenance $184,807.38 $172,460.67 93.32% - Colorado Blvd. Maintenanace $246,409.84 $236,840.05 96.12% - PS Restroom Monitoring $492,819.68 $550,874.86 111.78% - Downtown Outreach Program $133,445.23 $202,508.63 151.75% - City Parks Attendant Program $1,315,251.90 $1,297,979.28 98.69% - Supplies and Materials $2,500.00 $10,000.00 400.00%
- Infrastructure $40,000.00 $70,000.00 175.00%
- Landscaping $26,500.00 $28,000.00 105.66%
- Decorative Lighting $150,000.00 $250,000.00 166.67%
- Winter Décor $619,028.00 $330,000.00 53.31%
- Lincoln Beautification $50,000.00 $50,000.00 100.00%
- Labor Distribution $443,759.55 $498,006.46 112.22%
Subtotal $7,422,871.40 $6,781,946.38 91.37%
Communications, Events & Development (20.99%)
- Community Events & Activations $285,000.00 $580,000.00 203.51% - Sponsorships and Partnerships $15,000.00 $25,000.00 166.67% - Creative Development $50,000.00 $71,000.00 142.00%
- Public Relations $69,000.00 $70,000.00 101.45%
- Advertising $75,000.00 $115,000.00 153.33%
- Website Maintenance $33,500.00 $10,000.00 29.85%
- Downtown Signage $40,000.00 $70,000.00 175.00%
- Economic Development $15,000.00 $56,000.00 373.33%
- Vending Program Management $10,000.00 $2,000.00 20.00% - Stakeholder Outreach $15,000.00 $5,000.00 33.33%
- Data Services $47,000.00 $25,000.00 53.19%
- Ice@Santa Monica $1,011,596.00 $100,000.00 9.89%
- Labor Distribution $801,134.80 $851,845.06 106.33%
Subtotal $2,467,230.80 $1,980,845.06 80.29%
Organizational Management (7.14%)
- General Office Supplies and Maintenance$12,250.00 $12,250.00 100.00% - Software/Subscriptions $22,000.00 $18,000.00 81.82%
- Occupancy $215,000.00 $195,000.00 90.70%
- Telephone $13,400.00 $14,500.00 108.21%
- Accounting $48,000.00 $44,000.00 91.67%
- Audit $20,000.00 $20,000.00 100.00%
- Legal $100,000.00 $50,000.00 50.00%
- Human Resources $13,370.00 $12,500.00 93.49%
- Equipment Rental $7,500.00 $7,500.00 100.00%
- Taxes & Licenses $350.00 $600.00 171.43%
- Memberships & Subscriptions $6,000.00 $6,000.00 100.00% - Postage $100.00 $100.00 100.00%
- Travel & Auto $15,000.00 $15,000.00 100.00%
- Education and Staff Development $26,500.00 $26,500.00 100.00% - Development $10,000.00 $10,000.00 100.00%
- Insurance $53,000.00 $55,000.00 103.77%
- Parking $200.00 $200.00 100.00%
- Bank Charges $3,000.00 $4,000.00 133.33%
- Meetings $7,000.00 $7,000.00 $1.00
- Labor Distribution $166,961.01 $175,867.18 105.33%
Subtotal $739,631.01 $674,017.18 91.13%
TOTAL FY23/24 Budget $10,629,733.21 $9,436,808.62 88.78% Total Forecasted Revenue $9,370,228.45
Total Forecasted Expenditures $9,436,808.62
FY24/25 Loss -$66,580.17
Cash Reserve $1,941,879.72
DTSM, Inc. FY2024/2025 Budget

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Attachment: DTSM Budget FY24-25 Draft (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 1 DOWNTOWN SANTA MONICA, INC.

ANNUAL WORK PLAN + BUDGET FY2024/25

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 2 Table of Contents
Introduction 3
Services 4
Strategic Priorities 4
Fiscal Year 2024/2025 Budget and Allocations 5
Operations and Public Space Management 5
Public Safety 5
Advocacy and Oversight 6
Parking Structure Custodial Maintenance 6
Enhanced Custodial Maintenance 6
Parks Attendants, Restroom Monitoring, and Social Outreach 6 Placemaking and Beautification 6
Communications, Events, & Development 7
Community Events and Activations 7
Partnerships 7
Public Relations and Promotions 7
Economic Development and Advocacy 7
Data and Research 8
Communications and Outreach 8
Organizational Management 8
Administrative Functions 9
Professional Support 9
Board and Staff Education and Development 9
District Boundary Map Error! Bookmark not defined.

DTSM, Inc. Board Directory 11
Staff Directory 12
Exhibit A: DTSM, Inc. FY2024/2025 Budget 13
Exhibit B: DTSM, Inc. Operations Enhanced Maintenance Schedules 14 Parking Structure Maintenance Schedule 14
Lincoln Blvd and Colorado Ave Maintenance Schedule 15
Pressure Washing Schedule 15
Restroom Monitoring Schedule 15
General Maintenance Schedule 16
Activity Frequency 16

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 3 DOWNTOWN SANTA MONICA, INC.

FY2024-25 OPERATIONAL PLAN
Introduction
It is the mission of Downtown Santa Monica, Inc. ( DTSM, Inc.) to manage services and operations in Downtown Santa Monica while promoting economic stability, growth and community life within this unique neighborhood. To produce a strong and vibrant pedestrian-oriented downtown, DTSM, Inc. leverages its services, relationships and expertise to develop, implement, and maintain various programs for enhanced maintenance and security, marketing, events, promotions, and economic vitality to benefit Downtown Santa Monica.

To meet the challenges facing Downtown Santa Monica in Fiscal Year 2024/2025, DTSM, Inc. continues to focus on the foundations of a successful downtown: public safety, creating a clean and welcoming environment, activating a vibrant public space, and advocating for policies that support the business community. These priorities are reflected in this Operational Plan and budget.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 4 Services
DTSM, Inc. is contracted by the City of Santa Monica to provide services to the district and represent Downtown stakeholders. DTSM, Inc. functions are as follows:

1. Advising the City of Santa Monica on all matters related to Downtown

2. Advocating on behalf of all Downtown stakeholders

3. Providing marketing and promotional services and programming events and activations

4. Providing enhanced maintenance and public safety services Strategic Priorities
In Fiscal Year 2023/2024, the DTSM, Inc. Board of Directors determined its strategic priorities for this fiscal year and FY24/25. These priorities are as follows:

1. Impact public safety by advocating for additional funding to continue a Downtown private security program, addressing issues related to infrastructure and other means.

2. Improve cleanliness in the public right-of-way and Downtown parking structures through advocacy, practical programs, and other means.

3. Improve the arrival experience in the parking structures and from major transportation arteries by making recommendations in the areas of management, maintenance, custodial, and revenue management. Advocate for employee and resident parking and extended hours of operation for Metro.

4. Activate public spaces in Downtown through events, activations, art, and improving the process in which businesses can open and operate Downtown.

Increase funding for strategic communications and marketing efforts in support of additional promotions, events, and activations Downtown.

5. Improve communication and consensus building with all Downtown stakeholders, connect Downtown residents with local businesses and experiences, and support businesses through advocacy and practical programs In Fiscal Year 2023/2024, DTSM, Inc. advanced its strategic priorities with significant initiatives.

The organization successfully launched a pilot program to deploy a private security team to enhance safety Downtown. This work continues through December 1, 2024. Additionally, DTSM, Inc. completed a Request for Proposals (RFP) process for custodial maintenance, restroom attendants, and outreach services, awarding the contract to a longstanding provider renowned for its excellent service.

DTSM, Inc. was active in advocating for policies, city ordinances, and state legislation aimed at enriching the downtown area. Key initiatives included modernizing the business license tax, improving Caltrans easements, combatting retail theft, and promoting Entertainment Zones.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 5 Community engagement initiatives flourished, marked by new and expanded events.

Downtown residents and visitors enjoyed Al Fresco Weekends on the Promenade, outdoor movie screenings, and Chess Sundays. Established events also saw increased participation, such as the holiday tree lighting ceremony and Easter celebrations on the Promenade. Ice at Santa Monica, in its second year after a hiatus, continues to thrive, and plans are underway to introduce a roller rink prior to the FY24/25 ice rink season. Additionally, DTSM, Inc. has engaged with Haibu’s World to provide an interactive entertainment activation at 1318 4th Street.

Communication efforts with stakeholders and promotional activities for local businesses have intensified, significantly expanding DTSM, Inc.'s influence in both local and regional markets. DTSM, Inc.’s social media continues to grow, and awareness of Downtown Santa Monica increases every day.

Fiscal Year 2024/2025 Budget and Allocations
The DTSM, Inc. Board of Directors approved a budget of $9,436,808.62 for FY24/25.

DTSM, Inc. anticipates receiving $9,370,228.45 in revenue from property-based assessments, business license taxes, and income from enterprise programs. The Board determined to use $66,580.17 of reserve funding to pay for the total expenditures for the fiscal year. (See Exhibit A, page 12.)
The 2024/2025 budget contains allocations for Organizational Management, Communications, Events, and Development, and Operations and Public Space Management. The descriptions of these allocations and their unique directives are as follows:

Operations and Public Space Management
A clean, safe, and welcoming environment is the foundation for success in Downtown Santa Monica. DTSM, Inc. provides enhanced services in the areas of public safety, custodial maintenance, and social outreach, while also providing oversight of City of Santa Monica services. Together, DTSM, Inc. and the City of Santa Monica fulfill the responsibility of creating a thriving and inviting community space for everyone.

Operations and Public Space Management services total $6,781,946.38 and make up

71.87% of the DTSM, Inc. budget and include the following directives:

Public Safety
● Support the City of Santa Monica’s public safety officials in their efforts to keep Downtown safe
● Advocate on behalf of Downtown Santa Monica with City, County, and other government agencies charged with managing public safety to ensure they maintain a regular presence in Downtown

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 6 ● Fund and oversee a pilot program for private security personnel deployed in Downtown Santa Monica
● Facilitate communication between parties engaged in preserving the safety of Downtown public spaces
Advocacy and Oversight
● Advise the City of Santa Monica on operations and services in the public rightof-way. Advocate for maximum effectiveness and efficiency in managing public resources
● Advise the City of Santa Monica on operations and services in public parking resources. Advocate for maximum effectiveness and efficiency in managing public parking resources
● Collaborate with the City of Santa Monica and related service vendors to ensure compliance with maintenance standards established by all parties working in the public right-of-way and on public property Parking Structure Custodial Maintenance
● Provide custodial maintenance services for Downtown public parking structures in accordance with the Services Agreement between DTSM, Inc. and the City of Santa Monica (See Exhibit B).

Enhanced Custodial Maintenance
● Provide enhanced custodial services to support a clean, active, and wellmanaged Downtown (See Exhibit B). ● Conduct regular power washing and as-needed hot spot cleaning of key public spaces, including sidewalks, crosswalks, and alleys
● Promptly remove graffiti from public and private property and notify private property owners of other identified maintenance concerns and safety hazards Parks Attendants, Restroom Monitoring, and Social Outreach ● Ensure a positive visitor experience in Downtown parking structure restrooms and in Downtown-adjacent parks by providing attendants and custodial maintenance services
● Deploy a Homeless Outreach Coordinator and Quality of Life team to work strictly in the Downtown District to collaborate with other advocacy groups and service providers to expedite services for individuals in need ● Partner with the City of Santa Monica and other community organizations in supporting initiatives to combat crime and homelessness Placemaking and Beautification
● Create engaging streetscapes and pedestrian spaces through the preservation of existing assets and investments in infrastructure, landscaping, amenities, and creative placemaking
● Participate in planning beautification and improvement projects for streets, sidewalks, and alleys across the district

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 7 ● Work with the City of Santa Monica to maximize multi-modal transportation access and wayfinding in Downtown Santa Monica for all visitors ● Monitor permits for large-scale maintenance and construction, street and alley closures, and Third Street Promenade vehicle access. Mitigate impacts of temporary closures and provide advance communication to district stakeholders
● Collaborate with the City of Santa Monica to provide active street vendor management for Third Street Promenade and other public spaces ● Create, manage, and oversee Downtown decor and lighting programs Communications, Events, & Development
DTSM, Inc. furthers the reputation and economic vitality of Downtown Santa Monica and the Third Street Promenade through consistent branded communications, hosted and facilitated events, and economic development.

Communications, Events & Development services total $1,980,845.06 and make up

20.99% of the DTSM, Inc. budget and include the following directives:

Community Events and Activations
● Produce a full calendar of events, programming, and holiday activities to activate and encourage visitorship to the Downtown area year-round ● Facilitate third-party events and activations on Third Street Promenade in partnership with the City of Santa Monica
● Facilitate filming in the Downtown in partnership with Film L.A.

Partnerships
● Identify partnerships, sponsorships, and other funding opportunities for key programs supporting or enhancing Downtown Santa Monica
● Partner with Santa Monica Travel & Tourism, the Santa Monica Chamber of Commerce, and other local organizations to support tourism, economic development, and community engagement
Public Relations and Promotions
● Produce advertising and promotional campaigns to drive brand awareness and foot traffic to Downtown
● Produce and implement a 12-month public relations plan to reinforce the Downtown Santa Monica brand and keep Third Street Promenade top of mind for local visitors
● Strengthen local media relations by building and maintaining relationships with local editors and journalists
Economic Development and Advocacy
● Seek supplemental and diversified revenue streams to enhance programs and services. Maximize revenues generated by Downtown Santa Monica, Inc. events and activations

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 8 ● Create and oversee licensed operations in public space including community benefit activations, vendor management, and new programs ● Preserve the Downtown Santa Monica and the Third Street Promenade competitive advantages and economic viability through planning and advocating for reinvestment in short term and long-term capital improvements ● Maximize the utility of private properties through zoning and ordinance changes, a streamlined permitting processes and support for tenant selection by owners
● Advocate for new and existing revenues to fund maintenance, operations, and capital improvements in Downtown Santa Monica. Revenue-generating opportunities include advertising, new technology, and new funding sources ● Advocate on behalf of property and business owners on matters contributing to the overall vitality of business Downtown. Advise the City Council and its boards, commissions, and staff on development of policies, plans and ordinances impacting the trajectory of Downtown
Data and Research
● Produce regular data-driven reports to inform the decisions of DTSM, Inc. and support the Downtown community
● Position Downtown Santa Monica, Inc. as a central source of information on all aspects related to Downtown, including the economic vitality and market potential
● Track, analyze, and advise the City Council and its boards, commissions, and staff on public and private development projects
Communications and Outreach
● Develop communications and marketing strategic plans to reinforce Downtown Santa Monica’s brand positioning as a premier beach destination, and position Third Street Promenade as an experience-based destination ● Manage and produce content for Downtown Santa Monica’s communication channels including website, newsletters and social media ● Launch new and maintain existing stakeholder communications, such as newsletters and reports, to provide timely and relevant information ● Host stakeholder meetings to share updates on programs, collaborative opportunities and other essential information
● Produce a data-driven annual report to highlight the achievements of DTSM, Inc. in the prior fiscal year
● Conduct stakeholder surveys and program evaluations as needed to maximize the effectiveness of all DTSM, Inc. programs
Organizational Management
DTSM, Inc. is an efficient and effective organization that employs a professional staff to manage relationships and services that support Downtown Santa Monica. These functions require centralized administrative support funded through revenues received by DTSM, Inc. throughout the fiscal year. Organizational Management services total

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 9 $674,017.18 and make up 7.14% of the DTSM, Inc. budget and include the following directives:

Administrative Functions
● Maintain a professional office for a staff dedicated to providing a high caliber of service while adhering to all required compliance standards ● Provide public meeting space for the Board and committees Professional Support
● Ensure proper insurance coverage and protect the organization from risk ● Administer financial functions for the organization including preparing quarterly financial management reports, conducting an annual audit, and managing internal accounting functions
Board and Staff Education and Development
● Conduct regular staff training and create opportunities for professional development and continuing education, including ongoing coaching and performance feedback
● Create opportunities for strategic and organizational planning and educational opportunities for members of the Board of Directors

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 10 District Boundary Map
The boundaries of the Downtown Santa Monica district extend from the east side of Ocean Ave to the east side of Lincoln Blvd. and from the I-10 freeway to the commercial parcels immediately north of Wilshire Blvd.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 11 DTSM, Inc. Board Directory
Chair Eric Sedman
Vice Chairs Michele Aronson
Joshua Gilman
Julia Ladd
Peter Trinh
Secretary/Treasurer Barry Snell
Board Members Luke Cain
Bruce Fairty
Susan Cline
Ericka Lesley
Leo Pustilnikov
Lucian Tudor
Lora Vrastil

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 12 Staff Directory
Chief Executive Officer Andrew Thomas
Director of Marketing and Partnerships Ariana Gomez
Director of Operations and Placemaking Jeremy Ferguson
Special Events Manager Laura Borsecnik
Business & Community Development Manager Martin Ronzio-Garcia Public Space Manager Fatima Fazal
Community Engagement Manager Melody Hsu
Data and Research Manager Michael Lin
Administrative Office Manager Victor Greenwood

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 13 Exhibit A: DTSM, Inc. FY2024/2025 Budget

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 14 Exhibit B: DTSM, Inc. Operations Enhanced Maintenance Schedules
Parking Structure Maintenance Schedule
The following duties are performed in Parking Structures during the stated shifts. Duties and shifts are subject to change based on need. All shifts document maintenance issues for reporting and respond to calls routed through the dispatch center, such as biohazards, lost items, broken glass, or other messes needing immediate attention.

Large graffiti or graffiti placed in hard-to-reach areas that require aerial lifts or extendable ladders are out of the scope of DTSM, Inc. services.

Shift time from 10:00 p.m. – 6:30 a.m. [Structures 1,2,4,5,6) • Run a scrubber vehicle on a rotating schedule, cleaning levels 1-4 weekly and additional levels as needed, no less often than quarterly. • Sweep, mop, and wipe down all stairwells and landing areas, pressure wash stairs, landings, curbs, and islands weekly (all levels) • Pressure wash stairs, landings, curbs, and islands once a week. • Close all restrooms for deep cleaning floor-to-ceiling • Conduct pan and broom maintenance throughout structures • Clean and disinfect areas of feces and urine as needed Shift time from 8:00 a.m. - 4:30 p.m. [Structures 1,2,4,5,6,9&10] • Clean restrooms (empty trash, clean toilets/urinals, clean sinks, counters, mirrors, and replenish toiletries as needed)
• Remove or paint over small graffiti areas
• Remove debris (including large debris and trash) as needed • Conduct pan and broom maintenance as needed
• Structures 9 and 10 receive daytime scheduled porter service, small graffiti removal, and spot cleaning after 9 a.m. at the request of nearby neighbors. • Clean and disinfect areas of feces and urine as needed Shift time from 2:30 p.m. – 11:00 p.m. [Structures 1,2,4,5,6,9&10] • Clean restrooms daily (empty trash, clean toilets/urinals, clean sinks, counters, mirrors, replenish toiletries as needed, sweep/mop as needed • Pull all trash (2/3rds full), replace bags on every level of parking structures, and wipe down cans
• Wipe down all structure interior signage as well as fire and electrical boxes • Remove or paint over small graffiti areas
• Conduct pan and broom maintenance as needed
• Structures 9 and 10 receive daytime scheduled porter service, small graffiti removal, and spot cleaning before 9 p.m. at the request of nearby neighbors. • Clean and disinfect areas of feces and urine as needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 15 Lincoln Blvd and Colorado Ave Maintenance Schedule
Lincoln Blvd Shift time from 7:00 a.m. – 6:00 p.m.
• Sweep and clean all sidewalks on east and west side of Lincoln Blvd from Olympic to Wilshire
• Wipe down and clean all public infrastructure as needed • Graffiti removal, bill and sticker removal
• Vegetation management (manual weed abatement as requested) • Document maintenance issues for reporting
Colorado Ave Shift time from 8:00 a.m. – 9:30 p.m.
• Sweep and clean sidewalks on north and south side of Colorado Ave from Ocean Ave to Lincoln Blvd
• Wipe down and clean all public infrastructure as needed • Graffiti removal, bill and sticker removal
• Vegetation management (manual weed abatement as requested) • Document maintenance issues for reporting
Pressure Washing Schedule
Enhanced Maintenance – Pressure Washing & Deep Cleaning in Downtown DTSM, Inc. conducts pressure washing and deep cleaning services throughout various locations in Downtown. Services are planned to be deployed in accordance with the following minimum schedule, which may be adjusted as resources permit.

Activity Frequency
Zone 1: Third Street Promenade
Intersections
4x Annually
Zone 1: Alleys (2nd & 3rd Courts) Once a week
Zone 2: Alleys Once a week
Zone 3: Alleys Once every two
weeks
Zone L: Lincoln Blvd. Sidewalks 4x Annually
Downtown Hotspots (Areas of Need) As Needed
Parking Structure Stairwells (PS 1,2,4,5,6) Once a week

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 16 Restroom Monitoring Schedule
The following restrooms are monitored, and custodial services are provided during all hours of public operation. (light cleaning and stocking at least twice a day and deep cleaning nightly)
● Parking Structure #2 (during Farmer’s Market) (3 times/day) ● Parking Structure #4 (check each hour and provide additional stocking and cleaning as needed)
● Parking Structure #5 (check each hour and provide additional stocking and cleaning as needed)
● Tongva Park
● Reed Park
● Palisades North (no overnight deep cleaning)
● Palisades South (no overnight deep cleaning)
General Maintenance Schedule
In order to care for infrastructure and improve the aesthetic of Downtown’s public spaces, DTSM completes the following routine maintenance activities during the course of a year.

Activity Frequency [All zones]
• Paint public infrastructure as needed (color-matching in response to graffiti, damage, etc.)
• Dinosaur landscaping refresh/replant as needed
• Dinosaur fountain maintenance semi-weekly/as needed, remove debris and clean as needed
• Vector management monthly/as needed
• Promenade overhead light canopy maintenance as needed • Promenade paver repair as needed
• Sweep and remove trash from alleys and sidewalks as needed • Pressure wash areas needing special attention as needed • Remove stickers, bills, and graffiti as needed
• Wipe infrastructure such as cabinets, trash cans, street furniture, drinking fountains, bollards, bike racks, informational kiosks, on an as-needed basis and remove graffiti as needed
• Manual weed abatement as needed
• Document maintenance issues for reporting
• Tree light electrical maintenance as needed
o Spotlights over Dino fountains
o Information Kiosks (internal lights)
o Receptacles/Outlets (GFCI replacement and junction boxes as part of 2nd and 4th Tree Lights). Fuses connected to the receptacles. o Receptacles/Outlets on the Third Street Promenade. Fuses connected to the receptacles.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 17 City of Santa Monica Public Works Maintenance Service Matrix The following pages contain a matrix outlining the services in Downtown provided by the Promenade Maintenance team of the City of Santa Monica Public Works Department. It is the responsibility of DTSM, Inc. to ensure maintenance work meets or exceeds the minimum levels of service established on creation of the assessment district.

Section - 3rd Street Promenade:

From the north side of Wilshire to the south side of Broadway Shifts: Effective
5:00am to 1:30pm. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
3rd Street Promenade, Promenade Maintenance:

Service Description Frequency
Pedestrian
Walkways: Sweeper
Scrubber
Pressure Washer
Pre-treat stains and
spot pressure wash
Picks up large debris
Picks up small debris, applies
degreaser, scrubs
pavement & recovers
excess water.

Cleans in places scrubbers
can’t reach.

Degreaser applied with
hand-sprayer
Once daily, 7 days a
week
Once daily, 7 days a
week
Once daily, 5 days a
week
As needed
Monitoring Walk site, sweep & remove
debris
• Daily and as needed
Drinking Fountains Spray & wipe • Daily and as needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 18 Section - 3rd Street Promenade, Promenade Maintenance, Cont’d.

Service Description Frequency
Trash Containers (40) Wipe top, remove trash,
replace bag
• Four times daily, Mon. – Thu.
• Five times daily, Fri. – Sun. & Holidays
Trash Container Liners (40) Pressure wash/wipe down
from the inside &
deodorize
• Weekly as needed
Stainless Steel Bollards (27) Pressure wash. spray &
wipe,
• Once daily
Directories (7) Spray & wipe • Once daily
Sculptures (9) Spray & wipe • Once daily, as needed
Graffiti Remove • As needed
Dinosaur Pools (4) Remove debris • As needed
Special Events Extra trash containers &
general maintenance
frequencies
• As needed
Spot Cleaning &
Customer Calls
Additional cleanings,
graffiti, broken glass,
animal waste, etc.
• As needed
Off Duty
Emergency Call-outs
Oil spills, water, accidents,
etc.
• As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 19 Section – 3rd Street Promenade, Public Landscape:

Service Description Frequency
Tree Trimming (174
trees/palms)
Regular • As needed, based upon
inspection
Tree Well (174 tree wells) Inspect for grate or
decomposed granite
displacement
• As needed, based upon
inspection
Succulents & Topiaries
(Dinosaur fountain
planters)
2,000 sq. ft.

Prune & shape topiaries
Weed and detail succulent
beds
Lawn maintenance
• Once every six weeks
•3X weekly, as needed
Irrigation Inspection Check system and controller
for proper settings
• Weekly, as needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 20 Section - Parking Structures:

Shifts: Effective 1/1/15
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Parking Structures (Civic, Main Library and Ken Edwards) Promenade Maintenance:

Service Description Frequency
Bin Rooms
PS 1,2,4,5,6
Pressure wash, degrease,
or scrub. Organize trash
and recyclables.
• Once daily, 7 days a
week
• Once 7 days a week
Grease
Interceptors:

PS 2 & 5
• Clean out sludge.
• Remove restaurant
grease
• PS 2 Annually
• PS 5 Biannual
Parking Structures, Public Landscape:

Service Description Frequency
Planter
Maintenance
(ground level
planters in
Structure 1& 3
only)
Pick up litter & debris
Prune shrubs
• Weekly
• Monthly

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 21 Section – Colorado Avenue, Arizona Avenue & Wilshire Boulevard:

Shifts:
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Colorado Avenue, Arizona Avenue & Wilshire Boulevard, 2nd & 4th Streets, Promenade Maintenance
Sidewalks on both sides of streets.

Service Description Frequency
Pedestrian Walkways:

Sweeper

Scrubber (Esplanade
South Side)
Pressure Washer
Pre-treat stains/spot
pressure washing
Picks up large debris
Pick up small debris,
applies degreaser, scrubs
pavement & recovers
excess water
Cleans in places scrubbers
can’t reach
Degreaser applied with
hand-sprayer
• 5 x a week
• 3 x a week
• 4 x a week
Monitoring Walk site, sweep & remove
debris
• Daily, as needed
Bus Stop Powerwash • As needed
Trash Containers Wipe top, remove trash,
replace bag
• Twice daily, as
needed
Trash Container Liners Pressure wash & deodorize • As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 22 Colorado Avenue, Arizona Avenue & Wilshire Boulevard, 2nd & 4th Streets, Promenade Maintenance, Cont’d
Service Description Frequency
Spot Cleaning &
Customer Calls
Additional cleanings, graffiti,
broken glass, animal waste,
etc.
• As needed, 7
days a week
Off Duty
Emergency Call-outs
Oil spills, water, accidents, etc. • As needed
Section - Colorado Avenue, Arizona Avenue & Wilshire Boulevard, 2nd & 4th Streets, Public Landscape
2ND & 4th Street
Service Description Frequency
Tree Trimming Regular • Every 3 years or as
needed, based
upon
Tree Well Maintenance Backfill tree wells with
decomposed granite
• As needed,
based upon
inspection.

Arizona Ave.

Service Description Frequency
Tree Trimming Regular • Every 3 years or
as needed, based
upon
Tree Well Maintenance Backfill tree wells with
decomposed granite
• As needed,
based upon
inspection.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 23 Wilshire Blvd.

Service Description Frequency
Tree Trimming Regular • Every 3 years
or as needed,
based upon
inspection.

Section - Transit Mall:

Sidewalks on both sides of the streets:
• Broadway east side of Ocean Avenue to alley between 5th and 6th Streets.
• Santa Monica Boulevard from east side of Ocean Avenue to alley between 5th and 6th Streets.

Shifts:
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Transit Mall, Promenade Maintenance:

Service Description Frequency
Monitoring Walk site, sweep &
remove debris
• Daily
Benches Spray & wipe, polish wood • Once daily, as needed Drinking Fountains Spray & wipe • Daily, as needed
Trash Containers Wipe top, remove trash,
replace bag
• Four times daily
Trash Container Liners Power wash clean • As needed
Bollards Spray & wipe • Once daily, 5 days a week
Informational Signs Spray & wipe • Once daily, 5 days a week Arbors Spray & wipe • Once daily, 5 days a week
Graffiti Monitor & Remove • As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 24 Spot Cleaning &
Customer Calls
Additional cleanings,
graffiti, broken glass,
animal waste, etc.
• As needed
Off Duty
Emergency Call-outs
Oil spills, water, accidents,
etc.
• As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 25 Section - Transit Mall, Public Landscape:

Service Description Frequency
Tree Trimming Regular Every 3 years or as needed, based upon inspection.

Tree Well Maintenance Inspect for grate
displacement and/or
debris & litter
Clean debris, reset tree
grates
As needed, based upon inspection.

Irrigation Inspections Check system and
controller for proper
settings
Weekly

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 26 Section – Colorado, Broadway, Santa Monica Blvd., Arizona Avenue & Wilshire Blvd:

Sidewalks on both sides of streets from east side of 5th to the alley east of 7th 5th, 6th and 7th Streets:

Sidewalks on both sides of streets from north of Wilshire Blvd to south of Colorado Ave.

Service Description Frequency
Pedestrian Walkways:

Sweeper

Scrubber
Pressure Washer

Pre-treat stains/ and spot
pressure wash
Picks up large debris
Picks up small debris,
applies degreaser, scrubs
pavement & recovers
excess water
Cleans in places
scrubbers can’t reach
Degreaser applied with
hand-sprayer
Twice weekly
Once every three weeks
Once every three weeks
As needed
Monitoring Walk site, sweep &
remove debris
As needed
Tree Well Maintenance Clean debris
Remove weeds
Daily, as needed
As needed, based upon
inspections

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 27 Section - Alleys:
● 1st Court: Between Ocean Avenue & 2nd Street from north side of Wilshire Boulevard to south side of Colorado Avenue.
● Mall Court West: Between 2nd Street and 3rd Street from north side of Wilshire Boulevard to south side of Broadway.
● Mall Court East: Between 3rd Street and 4th Street from north side of Wilshire Boulevard to south side of Broadway.
● 4th Court: Between 4th and 5th Streets from north side of Wilshire Boulevard to south side of Colorado Avenue.
● 5th Court: Between 5th Street and 6th Street from north side of Wilshire Boulevard to south side of Colorado Avenue.
● 6th Court: Between 6th Street and 7th Street from Colorado to Wilshire ● 7th Court: Between 7th Street and Lincoln Blvd. from Colorado to Wilshire
Shifts: Effective
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Alleys, Promenade Maintenance:

Service Description Frequency
Mall Court East & West
Sweeper/ Mobile
Vacuum / scrubber
Picks up small debris, applies
degreaser, scrubs pavement &
recovers excess water
5 days a week
Monitoring Walk site, sweep & remove debris Daily
Spills Apply absorbent, pressure wash
and scrub
As needed
Spot Cleaning
& Customer Calls
Discarded furniture, appliances,
spills, etc.

As needed
Graffiti Monitor & Remove As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 28 Alleys, Promenade Maintenance, Cont’d.

Weed suppression Remove weeds As needed,
Off Duty
Emergency Call-outs
Toxic spills, water, accidents, etc. As needed
1st, 4th, 5th, 6th & 7th Courts:

Service Description Frequency
Mobile Vacuum Vacuums debris from large areas 5 days a week Monitoring Walk site, sweep debris Once daily
Spot Cleaning
& Customer Calls
Discarded furniture, appliances,
spills, etc.

As needed
Graffiti Remove As needed
Off Duty
Emergency Call-outs
Oil spills, electrical, water,
accidents, etc.

As needed
Weed suppression Remove weeds As needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 29 Section – Colorado Ave. Esplanade:

From east side of 4th St. to the east side of Ocean Ave Service Description Frequency
Pedestrian Walkways:

Sweeper
Sweeper / scrubber

Pressure Washer
Pre-treat stains and spot
pressure wash
Picks up large debris
Picks up small debris, applies
degreaser, scrubs pavement &
recovers excess water
Cleans in places scrubbers can’t
reach
Degreaser applied with handsprayer
Once daily
Once daily
Once daily, 5 days a
week (Mon., Tue.,
Thu., Fri., Sat.)
As needed
Monitoring Walk site, sweep & remove debris Daily as needed Trash Containers Wipe top, remove trash, replace
bag
4 times daily
Trash Container Liners Pressure wash / wipe down from
the inside & deodorize
As needed
Graffiti Remove As needed
Landscape General Maintenance-using
current maintenance
specifications requirements
Twice monthly

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 30 City of Santa Monica Department of Transportation Service Matrix Downtown Parking Facility Maintenance Matrix
The Parking Division of the Department of Transportation conducts several related activities in support of Downtown Santa Monica Clean and Safe Initiatives. These operational efforts include:
● SP+ parking contract tasks related to cleanliness and monitoring of facilities
● City Staff inspection roles and management of resources applied to clean and safe activities
● Funding of interdepartmental efforts to provide for basic and enhanced security and cleanliness measures,
● Periodic evaluation of effectiveness of anti-littering, graffiti, and human soiling countermeasures to adapt to changing conditions, and
● Regular collaboration and meeting with DTSM and Public Works – Promenade Maintenance partners to solution more effective and joint cleanliness and safety countermeasures.

The role of the parking contractor, SP Plus, Inc. in accomplishing basic clean and safe measures is significant and are done over three daily work shifts. The following tables describe specific tasks accomplished by SP+.

On succeeding pages are found the activities that SP Plus performs to assist with Clean and Safe Initiatives.

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 31 Downtown Parking Structures 1, 2, 4, 5, 6, 9 & 10:

Service Description Frequency
Public Elevators:

Usability
Inspection
Preventive
Maintenance
Major Repairs
Up-time Reports
Daily inspection of all publicly
accessible elevators OTIS conducts
monthly inspections/ minor repairs
As-needed safety, electronic, &
mechanical repairs Administrative
reporting of elevator availability
Once daily, 7 days a week
Monthly
Once daily, 5 days a week
Once a month
Parking Structure Safety Measures (PS 1, 2, 4, 5, & 6)
Service Description Frequency
Fire Alarm Testing Scheduling of routine testing
functions, subcontracts with
Allen Alarm and OTIS
• Four times annually
Fire Alarm Repairs SP+ subcontracts with ADT and
Redhawk to conduct on the
spot repairs
• As needed
Public Restrooms –
Plumbing Issues
SP+ porters and subcontractors
on-call to repair and replace
stuck plumbing
As needed
Public Restrooms –
fixture replacements
SP+ porters replace broken sinks,
urinals, toilets, mirrors, hand
dryers, and doors
Inspection once daily, 7 days/week. •
Fixture replacement as needed
PS 6 Emergency
Generator
Annual inspection and testing of
emergency diesel/electric
generator
Annual inspection by subcontractor
Lighting Inspect stairwell, lobby, and
drive aisle lighting, replace
damaged or failed bulbs
Inspect daily/ 7 days/week
Replace as needed in batches, weekly

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 32 Graffiti
Countermeasures
SP+ collaboration with DTSM/
PW-PM, performs final paint top
coat
Inspection once daily, 7 days/week. • As
needed final top-coat paint applied after
PW or DTSM graffiti removal.

Clarifiers Inspect and clean out sumps,
clarifiers
PS 1 monthly,
Sanitary
Sewer Inspections
Inspect and clean sewers as
preventive maintenance
As needed
Storm Drain Cleaning Inspect and clean out storm
drains in parking facilities
As needed or at least annually
Storm Drain Repairs Toxic spills, water accidents,
pipe and catchment
replacements
As-needed in collaboration with PW -
Facilities Maintenance Division
Safety and Guide Signing, Pavement Stencils, Flex Posts: PS 1, 2, 4, 5, 6, 9 & 10) Service Description Frequency
Safety Signage and
Guidance Signage
SP+ inspects daily and cleans or
replaces damaged signs
Inspection once daily, 7 days/week
Sign replacement as-needed in
batch
Curb Painting,
Pavement
delineation
Refresh curb paint and apply
pavement stencils.

Refresh paint one parking structure
per month, ongoing all year.

Plastic Flex Points,
rubber-clad bollards
Inspect and replace lane posts in
structures and downtown surface lots
Inspect Weekly
Replace in batches as needed
Mirrors Parking structure Exit mirrors at alleys
and streets
Inspect once daily, 7 days/ week
Replace/ adjust as needed
Handrails, stair
treads, barricades
Inspection, light cleaning, repaint
metal handrails or replace stair
treads as needed
Inspect once daily, 7 days/week
Repaint as needed
Replace treads/flooring as needed
Pavement/
Concrete Repairs
Inspect and monitor, arrange with
subcontractor for minor repairs.

Consult with Public Works as
necessary for extensive repairs
Inspect and report minor damage
once daily, 7 days per week
Assign subcontractor to conduct
minor repairs in batches as needed
Lane striping,
parking stalls,
directional arrows
Inspect and monitor wear of lane
striping, parking stencils, arrows, and
related pavement markings
Inspect weekly
Assign subcontractor to refresh
pavement markings every two years
Conduct spot repainting as needed

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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 33 Parking Structure Access and Revenue Control Systems (PARCS) Ken Edwards Center; Main Library; Civic Center, PS 1, 2, 4, 5, 6, 7, 8, 9 & 10 Service Description Frequency
Ticket and Pre-paid
Scanning Kiosks
and Pay-on-Foot
Machines
Inspect, replace stock,
repair damaged
customer interfaces, and
conduct preventive
maintenance.

Inspect once daily, 7 days/week
Replace ticket stock and money trays as needed,
Conduct repairs as needed
Entry & Exit Gate
arms
Inspect and replace as
need, daily
Inspect safe and proper operation of gate arms
Replace as needed
Ken Edwards
Center Parking
Structure
Inspect and monitor
PARCS machines Inspect
gate arms
Once daily, 7 days/week
Replace as needed
Main Library
Parking Structure
Inspect coin, cash, and
credit card readers,
change dispensers
Inspect gate arms
Once daily, 7 days a week
Replace as needed
Civic Center
Parking Structure
Inspect coin, cash, and
credit card readers,
change dispensers
Conduct incidental pan
& broom clean up
Inspect Lighting, fire
alarms, elevators
Once daily, 7 days a week
Cash and ticket
pullers
Inspect coin, cash, and
credit card readers,
change dispensers
Once daily, 7 days/week
Replace/ repair as needed
Customer
Interface,
Communication
equipment
Inspect voice, speaker,
and pin-hole camera
communication system
• Once daily, 7 days/week
-End5.A.b
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Attachment: FY 24-25 DTSM Annual Work Plan (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 1 David Yakobson
From: Karen Croner <[email protected]>
Sent: Tuesday, July 9, 2024 11:38 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox Cc: Council Mailbox; councilmtgitems
Subject: Item 5A DTSM Inc. Budget

EXTERNAL
Dear Council:

I am very concerned about the budget for DTSM…And urge you not to approve it. 10 million dollars is certainly not improving downtown and some of the items simply make no sense to me. Residents like myself would like you to appoint an independent third party forensic accounting firm to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. This should include bank statements, credit card charges, travel expenses, acquisitions, etc.

Since the City Manager is a DTSM Board Member, of course a third party should be selected by the Council. Our city is supposedly broke. We need money to open the libraries, hire police officers. DTSM seems to have squandered their allotment. Please do not approve another dollar until they can account for every dollar given to them by the city. SM Tax payers and voters care a lot about this issue and if this budget is approved, I know it will affect how many residents vote.

Thank you,

KAREN CRONER
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024

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Attachment: Written Comments (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 2 David Yakobson
From: Gary Freedman <[email protected]>
Sent: Tuesday, July 9, 2024 10:55 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox; Council Mailbox Subject: Item 5A Consent Calendar -DTSM, Inc. Budget

EXTERNAL
Dear Council:

I am both a resident of Santa Monica for more than 50 years and a stakeholder in the DTSM business district on Third Street Promenade.

I agree 100% with the position below originally sent by John Alle. While I do not agree with John Alle on everything, he is on point as stated below.

Tonight you are being asked to approve the DTSM, Inc. Budget. As a DTSM Assessment-paying Stakeholder and property owner, and for the Public Record, I urge you not to approve the Budget that has been submitted.

Instead, I urge you to vote to recommend appointing an independent third party forensic accounting firm without any ties to the City, City Councilmembers, DTSM, Inc., DTSM Staff and/or its Board of Directors., to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. In addition, an independent forensic auditor should review the organization's books, entries, expenditures, bank statements, credit card charges, travel expenses, acquisitions, etc.

Since the City Manager and or his designee, in this case Assistant City Manager Susan Cline, is a DTSM Board Member, the 3rd party forensic auditing team should be selected by Council or group of individuals with no past or current ties to the City or DTSM, Inc.

Highest on the priority list are charges the City of Santa Monica is overpaying DTSM for its Parks Programs and Services. The City is paying DTSM, Inc. a higher amount than the actual costs. We are unsure where the overpayment is going....perhaps into a reserve account, someone's pockets, etc. For the very same items described, there are different amounts shown paid in several reports.

There are numerous examples of other financial improprieties we have uncovered. Having been provided this written notice, your approving the Budget may prove embarrassing to this Council and Santa Monica in the near future.

Our large group of Assessment-paying Stakeholders plans to exit the organization for these and other reasons. DTSM, Inc. is a non-profit organization controlled by the City, and is not a true business Item 5-A
July 9, 2024
Item 5-A
July 9, 2024

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Attachment: Written Comments (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 3 improvement district. It has serious problems, no productive results, and management of the organization and its + - $10 million a year budget is out of control.

Please do not approve the Budget presented until an independent 3rd party forensic accounting firm can review all related items from an unbiased and uncompromised point of view.

Sincerely,
Gary Freedman
533 9th Street
Santa Monica 90402
and
1329 Third Street
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024

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Attachment: Written Comments (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 4 David Yakobson
From: John Alle <[email protected]>
Sent: Tuesday, July 9, 2024 10:05 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox; Council Mailbox Subject: Item 5 A, Consent Calendar - DTSM, Inc. Budget

EXTERNAL
Dear Council:

Tonight you are being asked to approve the DTSM, Inc. Budget. As a DTSM Assessment-paying Stakeholder and property owner, and for the Public Record, I urge you not to approve the Budget that has been submitted.

Instead, I urge you to vote to recommend appointing an independent third party forensic accounting firm without any ties to the City, City Councilmembers, DTSM, Inc., DTSM Staff and/or its Board of Directors., to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. In addition, an independent forensic auditor should review the organization's books, entries, expenditures, bank statements, credit card charges, travel expenses, acquisitions, etc.

Since the City Manager and or his designee, in this case Assistant City Manager Susan Cline, is a DTSM Board Member, the 3rd party forensic auditing team should be selected by Council or group of individuals with no past or current ties to the City or DTSM, Inc.

Highest on the priority list are charges the City of Santa Monica is overpaying DTSM for its Parks Programs and Services. The City is paying DTSM, Inc. a higher amount than the actual costs. We are unsure where the overpayment is going....perhaps into a reserve account, someone's pockets, etc. For the very same items described, there are different amounts shown paid in several reports.

There are numerous examples of other financial improprieties we have uncovered. Having been provided this written notice, your approving the Budget may prove embarrassing to this Council and Santa Monica in the near future.

Our large group of Assessment-paying Stakeholders plans to exit the organization for these and other reasons. DTSM, Inc. is a non-profit organization controlled by the City, and is not a true business improvement district. It has serious problems, no productive results, and management of the organization and its + - $10 million a year budget is out of control.

Please do not approve the Budget presented until an independent 3rd party forensic accounting firm can review all related items from an unbiased and uncompromised point of view.

John Alle
DTSM, Inc. Assessment-paying Stakeholder
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024

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Attachment: Written Comments (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) 5 --
John E. Alle

JOHN ALLE COMPANY
www.johnallecompany.com
Cell: (310) 990-7124
Office: (626) 795-1511 (310) 319-1511
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation to the contents of this information is strictly prohibited and may be unlawful. Kindly delete.

Item 5-A
July 9, 2024
Item 5-A
July 9, 2024

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Attachment: Written Comments (6367 : Approval of the DTSM Fiscal Year 2024-25 Budget and Work Plan) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.B
1 of 5
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of the Santa Monica Tourism Marketing District Fiscal Year 2024-25 Budget and Work Plan
Recommended Action
Staff recommends that the City Council:

1. Approve the Santa Monica Tourism Marketing District Fiscal Year 2024-25 Budget and Work Plan; and,

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

Summary
Tourism is essential to the City’s vitality and economic recovery. In 2012, in partnership with local hotels, Santa Monica Travel and Tourism (SMTT) established the Santa Monica Tourism and Marketing District (SMTMD). The purpose of the SMTMD is to increase overnight room sales with targeted marketing and promotions. Funding for the marketing programs and activities of the SMTMD are derived from assessments and revenues collected from the hotels operating within the boundaries of the SMTMD. The attached SMTMD Annual Report (Annual Report) summarizes the SMTMD’s proposed programs and activities for upcoming Fiscal Year 2024-25, including the SMTMD budget, hotel report, and marketing plan.

Staff recommends that Council review and approve the Annual Report in accordance with the State laws governing tourism marketing districts.

Discussion
Under Streets and Highway Code Section 36650, the Santa Monica Tourism and

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Marketing District (SMTMD) is required to prepare Annual Reports providing the following information:
• Any proposed changes to the boundaries of the tourism marketing district or to any benefit zones or classification within the district, • The improvements, maintenance, and activities for that fiscal year, • An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year,
• The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year,
• The estimated amount of any surplus or deficit in revenues to be carried over from a previous fiscal year,
• The estimated amount of contributions to be made from sources otherthan assessments levied pursuant to this part.

In accordance with Section 36650, the SMTMD has submitted its FY 2024-2025 SMTMD Annual Report (Attachment A), including the work plan and budget for Council approval. The following overview summarizes the proposed expenditures to be funded with SMTMD assessments in the upcoming fiscal year.

SMTMD Reporting Year FY 2024-25
Revenues
Estimated TMD Assessments 6,651,742
Bank Interest 1,800
Total Revenues* $6,653,542
Expenditures
Cost of Programs
Travel Industry Sales 1,550,000
Marketing 1,125,848
Visitor Services
Meetings, Incentives, Conferences,
and Exhibitions
125,000
300,000
Client Services
Public Relations
75,000
226,000

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General and Administrative Services 665,000
Salaries & Benefits 2,192,922
Contingency Fund 332,587
Fixed Asset 61,185
Total Expenses $6,653,542
Estimated Carry-over from Previous Fiscal Year $0
Estimated In-Kind Contributions $220,000
* This does not include $2,994,004 in City funding included in the FY 2024-25 Proposed Budget for a services agreement with SMTT that the City provides SMTT annually to continue SMTT’s tourism and marketing programs, operate Visitors Centers, produce collateral materials, create brand awareness, and promote Santa Monica through print and social media.

The SMTMD expenditures and services for FY 2024-25 are budgeted at $6,653,542 to focus on recovery and destination promotion to serve as a catalyst for economic recovery. The attached annual work plan reflects the initiatives and programs focused on five strategic areas:

1. Drive Balanced Demand for the Destination

2. Enhance the Brand and Steward the Destination Experience

3. Champion the Value of Tourism

4. Strengthen Strategic Partnerships and Relationships

5. Ensure Operational Excellence
The FY 2024-25 workplan continues to leverage Visit California and Los Angeles Tourism & Convention Board’s efforts. The core goals of the workplan will continue to focus on strengthening and enhancing Santa Monica as a brand, marketing and promoting Santa Monica as a tourism destination, increasing occupancy, establishing partnerships within the tourism community, private sector, and government entities to position Santa Monica as a filming destination, and expanding a presence in emerging markets. With that lens, SMTT will continue to reach and extend its presence into key domestic markets as well as explore opportunities to tap potential growth markets such as Mexico, Scandinavia, and China to ensure Santa Monica is well positioned to attract a balance and wide range of visitors.

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The proposed FY 2024-25 budget was approved by the Tourism Marketing District Committee and the Santa Monica Travel and Tourism (SMTT) Board of Directors at a joint meeting on May 29, 2024. Council may approve the annual report or may modify any section contained in the annual report and approve it as modified. As the assessment formulas in the SMTMD remain as approved in 2017, staff recommends Council approve the attached Annual Report.

Past Council Actions
Meeting Date Description
Attachment A - 6/13/2023 Council approved the Annual Report for FY 2023-24 (Calendar Year 2024) representing the sixth report for
the SMTMD renewal term.

Attachment B - 11/1/2016 Council adopted Resolution 11005 (CCS) extending the SMTMD by nine and one-half years beginning on
January 1, 2018, through June 30, 2027.

Attachment C - 12/11/2012 Council adopted Resolution No. 10722 (CCS) establishing the Santa Monica Tourism Marketing
District (SMTMD).

Attachment D FY 2024-2025 SMTMD Annual Report
Environmental Review
The SMTMD’s FY 2024-25 workplan is 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 workplan establishes the programs and services of the SMTMD. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.

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

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Prepared By: Nia Tang, Senior Development Analyst
Approved Forwarded to Council
Attachments:

A. Attachment A. 06/13/2023 Staff Report
B. Attachment B. 11/01/2016 Staff Report
C. Attachment C. 12/11/2012 Staff Report
D. Attachment D. 2024 - 2025 SMTMD Annual Report

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SMTMD Annual Report for Fiscal Year 2024-2025 Page 1 of 7 April 1, 2024 2024-2025 SMTMD Annual Report
Santa Monica Travel & Tourism
April 1, 2024
Introduction
This report outlines the annual Tourism Marketing District plan from Santa Monica Travel & Tourism, a not-for-profit organization that works to strengthen our local economy by enhancing and promoting our community as a distinctive, compelling and welcoming travel destination.

Background
Pursuant to Section 36650 of the Property and Business Improvement District Law of 1994, Streets and Highways Code Division 18, Santa Monica Travel and Tourism submits annual reports outlining the improvements and activities to be provided for the calendar year.

Submitted to:

Jennifer Taylor, Economic Development Manager, City of Santa Monica Gigi Decavalles-Hughes, Director of Finance, City of Santa Monica Prepared by:

Misti Kerns, President/CEO of Santa Monica Travel & Tourism For the Period of:

Fiscal Year 2023 – 2024
Submitted on April 1, 2024: ________
Enclosures:

Attachment A. 2024-2025 Budget
Attachment B. ADR Report for 2023
Attachment C. Tourism Marketing District Plan
Attachment D. 2024-2025 Programs and Services

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 2 of 7 April 1, 2024 Santa Monica Travel and Tourism
TMD Report Plan for Fiscal Year 2023 – 2024
Section One – Proposed Boundary Changes
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(1): Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.

Response: In the fiscal year 2024-2025, there will be no changes in the boundaries of the improvement district.

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 3 of 7 April 1, 2024 Section Two – Programs and Services for Fiscal Year 2024-2025 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(2): The improvements and activities to be provided for that fiscal year.

Programs and Services:

See Attachment D: 2024-2025 Programs and Services.

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 4 of 7 April 1, 2024 Section Three – Approved Budget for Fiscal Year 2024-2025 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(3): An estimate of the cost of providing the improvements and the activities for that fiscal year.

Response: See Attachment A. 2024-2025 Budget. The 2024-2025 Budget was presented to the SMTT Board of Directors on March 20, 2024, where the Board of Directors approved the budget as presented unanimously. Minutes from the March 20, 2024, Board of Directors Meeting adopting the 2024-2025 budget will be presented at the May 2024, Joint Annual Board and TMD Committee Meeting. Following the May 2024, meeting, SMTT will forward the final minutes within 48 hours to the Economic Development Department.

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 5 of 7 April 1, 2024 Section Four – Assessment Rates
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(4): The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.

Response:

Pursuant to Section V(B) of the Management District Plan, assessment rates may be increased annually by a maximum of $0.25 for Tier 1 and 2 lodging businesses and a maximum of $0.10 for Tier 3 lodging businesses. Assessment rates are based on the assessed lodging businesses’ average daily rate, based on the previous year’s performance. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed.

The TMD Hotel Committee held a special meeting on Wednesday, March 6, 2024, voting unanimously to move the July 1, 2024, assessment start date to January 1, 2025, along unanimously voting to increase the TMD collection rates for calendar year 2025, the rates for calendar year 2025 are listed below:

Average Daily Rate Assessment Per Occupied Room Per Night for January 1, 2025
Tier 3: $100-$199.99 $2.20
Tier 2: $200-$300 $6.00
Tier 1: Over $300 $7.00
See Attachment B. ADR Report for 2023. The attached ADR report outlines the average daily rate for hotel rooms and projects the tier rating for every qualified lodging business within the City of Santa Monica.

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 6 of 7 April 1, 2024 Section Five – Carryover Dollars from Fiscal Year 2022-2023 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(5): The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.

Response: $165,000 carryover dollars from fiscal year ending June 30, 2023, were applied in 2023-2024.

The contingency balance for fiscal year ending June 30, 2023, was $589,785 (11.29% of the annual funds per the SMTMD plan).

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year SMTMD Annual Report for Fiscal Year 2024-2025 Page 7 of 7 April 1, 2024 Section Six – Estimated In-Kind Contributions for Fiscal Year 2024- 2025
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(6): The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

Response: The projected in-kind contributions for the year 2024-2025 are $245,000.

These are additional contributions from local businesses (in-kind) towards programs and services.

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year Santa Monica Travel Tourism
FISCAL YEAR 2024-2025 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $ 2,994,004 93.52% $ - 0.00% $ 2,994,004 30.38% Estimated TMD Revenue - 0.00% 6,651,742 99.97% 6,651,742 67.50% Bank Interest 2,500 0.08% 1,800 0.03% 4,300 0.04%
Other Income 170,000 5.31% - 0.00% 170,000 1.73%
Retail Revenue 35,000 1.09% - 0.00% 35,000 0.36%
Total Revenues $ 3,201,504 100.00% $ 6,653,542 100.00% $ 9,855,046 100.00% Cost of Programs
Travel Industry Sales $ - 0.00% $ 1,550,000 23.30% $ 1,550,000 15.73% Marketing 297,000 9.28% 1,125,848 16.92% $ 1,422,848 14.44% Visitor Services 167,000 5.22% 125,000 1.88% $ 292,000 2.96% MICE - 0.00% 300,000 4.51% $ 300,000 3.04%
Client Services 166,472 5.20% 75,000 1.13% $ 241,472 2.45% Public Relations 130,000 4.06% 226,000 3.40% $ 356,000 3.61% Total Cost of Programs $ 760,472 23.75% $ 3,401,848 51.13% $ 4,162,320 42.24% General & Administrative $ 804,439 25.13% $ 665,000 9.99% $ 1,469,439 14.91% Salaries & Benefits $ 1,599,593 49.96% $ 2,192,922 32.96% $ 3,792,515 38.48% Contingency Fund $ - 0.00% $ 332,587 5.00% $ 332,587 3.37% Fixed Asset $ 37,000 1.16% $ 61,185 0.92% $ 98,185 1.00% Total Expenses $ 3,201,504 100.00% $ 6,653,543 100.00% $ 9,855,047 100.00% Net Increase (Decrease) $ - 0.00% $ (0) 0.00% $ (0) 0.00% City Contract TMD Total Budget

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica MEMO
February 23, 2024
To: Misti Kerns, Evan Edwards, SMTT
Re: TMD Reconciliation for 2024 - Revised Review and Findings DRAFT As per our agreement I have updated your provided Excel Spreadsheet for lodging receipts through December, 2023. The review included entering new data for the month, checking for each property monthly and year-to-date rooms available, rooms sold, ADR calculation, and proposed Tier for 2024.

1. Hotels Tiers for 2024 TMD assessment, based on each of their calendar year 2023 ADR, as follows:

Tier 1($300+) (19 properties)
@ $6.50 assessment for 2024
Tier 2 ($200-$299) (10)
@$5.50 assessment for 2024
Tier 3 ($100-$199) (7)
@$2.00 assessment for 2024
The Ambrose Ocean View Bayside Comfort Inn
Casa del Mar Palihouse CalMar Days Inn
Cottage Pierside Gateway Ocean Park Inn
Courtyard Regent (frmly Loews)* Hampton Inn Palm Motel
Fairmont Miramar Santa Monica Proper Hotel Carmel Rest Haven Motel Hilton Hotel & Suites Shore Hotel Ocean Lodge Sea Shore Motel Huntley Hotel Shutters
Le Merigot/(J.W. Marriott) The Georgian Sea Blue Hotel Santa Monica Hotel Le Meridien Delfina Viceroy Sonder-Beacon (frmly ShangriLa) Oceana
SureStay BW
* Regent assumed average daily rate above $300 upon reopening Note: Properties in Blue remain in their 2023 Tier; properties in Red qualify for a new Tier Notes and Issues

1. Pierside move to Tier 1 from Tier 2;
$301.33 ADR for the year.

2. SureStay BW: move to Tier 2 fr. Tier 3;
$200.46 ADR for the year.

3. Sea View Hotel: closed 4/2023; Tier 3 upon
reoopening.

I certify that based on data provided, these are the TMD assessment tiers for 2024. Please contact me if you have any questions or comments.
1041 S. Gramercy Drive l Los Angeles CA 90019
[email protected]
www.lsconsult.com
Sea View Hotel

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2018-2027
September 29, 2016 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

SANTA MONICA TOURISM

MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN

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Attachment: Attachment D. 2024 - 2025 SMTMD Annual Report (6368 : Approval of the Santa Monica Tourism Marketing District Fiscal Year

CONTENTS
I. OVERVIEW ........................................................................................................................................2 II. ACCOMPLISHMENTS.....................................................................................................................4 III. BACKGROUND ................................................................................................................................6 IV. BOUNDARY.......................................................................................................................................7 V. BUDGET AND SERVICES.............................................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................... 9 C. California Constitutional Compliance .............................................................................. 10 D. Assessment........................................................................................................................ 13 E. Penalties and Interest ........................................................................................................ 13 F. Time and Manner for Collecting Assessments................................................................. 14 VI. GOVERNANCE...............................................................................................................................15 A. Owners’ Association......................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ............................................ 15 C. Annual Report................................................................................................................... 15 D. Milestone Report............................................................................................................... 15 APPENDIX 1 – LAW....................................................................................................................................17 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................28 APPENDIX 3 – BENEFIT STUDY ..........................................................................................................29 APPENDIX 4 – TIER BENEFITS.............................................................................................................30 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com

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I. OVERVIEW
Developed by Santa Monica Travel & Tourism (SMTT), the Santa Monica Tourism Marketing District (SMTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. The SMTMD was formed in 2012 for a five (5) year term; lodging businesses now wish to renew it for an additional nine and one-half (9.5) years.

Location: The renewed SMTMD includes all lodging businesses located within the boundaries of the City of Santa Monica with an average daily rate of $100 or more, as shown on the map in section IV.

Services: The SMTMD is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.

Budget: The total SMTMD annual budget for each full year of operation is anticipated to be approximately $4,130,000. The initial “year” of operation will be a partial year consisting of six months, for which the anticipated budget is $2,065,000. This budget is expected to fluctuate as room sales and the assessment rate do, as detailed in Section V.

Cost: The assessment is a fixed amount per occupied room per night. The assessment is based on the businesses’ average daily rate, based on the previous year’s performance.

Average daily rate figures shall be updated annually. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays paid by any Federal, State of California, or City of Santa Monica, official or employee when on official business provided that an exempt certificate is executed at the time of registration. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed. Assessment rates are:

Tier Average Daily
Rate
Assessment Per Occupied Room
Per Night
1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five cents ($0.25) per year for Tier 1 and Tier 2 lodging businesses and no more than ten cents ($0.10) per year for Tier 3 lodging businesses. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. The maximum assessment rate for each category is:

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Year $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*The initial “year” is January 1, 2018 through June 30, 2018 Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SMTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration: The renewed SMTMD will have a nine and one-half (9.5) year life, beginning January 1, 2018 through June 30, 2027. Once per year, beginning on the anniversary of district renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district disestablishment.

Management: Santa Monica Travel & Tourism will continue to serve as the SMTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

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II. ACCOMPLISHMENTS
The SMTMD is being renewed for the following reasons:

1. The SMTMD has funded excellent marketing programs and strategies In the first five (5) year term of the SMTMD, the District has funded:
x Creation of 5-year strategic plan for the destination with input provided by the TMD Hotel Committee;
x Focus Groups conducted in seven (7) domestic and international target markets to assess perceptions of the destination brand;
x Integrated advertising campaigns targeted to domestic target markets to drive travel during Santa Monica’s soft season (paid search, behavioral retargeting, display, paid social, eNewsletter sponsorships).
x Entirely redesigned SantaMonica.com, including new white labeled booking site to drive bookings directly to assessed lodging businesses’ websites. New website recognized with industry design awards for structure, concept and functionality; x Redesigned logo, brand style guide, destination photography and video; and x New and improved Official Visitor Guide and Map with award-winning publishing partner.

2. The SMTMD has funded enhanced business development programs for key international target markets
x United Kingdom, Australia and Brazil:
o Full time representation in all three markets;
o Enhanced public relations support;
o B2B and B2C integrated campaigns with performance metrics and sales analysis; o Brand enhancing partnerships with travel trade clientele (Visit California and Brand USA);
o Sales and media missions including key hotel partners for targeted markets; o Tradeshow participation; and
o Ongoing trade relationship development and trainings. x France and Germany:
o Part-time representation;
o B2B campaigns with sales and social media performance metrics; o Tradeshow participation; and
o Ongoing trade relationship development and trainings.

3. The SMTMD has funded initiatives to increase the meetings and incentives market Santa Monica Travel and Tourism has executed over twenty meetings and incentive (MICE) programs with the objective of increasing qualified meetings and incentives business to the destination. x Sales missions were conducted in New York, Toronto, Washington DC, Chicago, Minneapolis, San Francisco, Orange County and San Diego; x SMTT exhibited at IMEX America, IncentiveWorks, and Incentive Travel Exchange, conducting over 500 meetings with key buyers;
x SMTT hosted nearly thirty (30) meeting planners to the destination to experience first hand what their clients would be booking; and

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x SMTT engaged a third party consultant to conduct focus groups with these meeting planners to better understand future meetings and incentives business opportunity for the destination.

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III. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, ninety-five (95) California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively raise
over $200 million for local
destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that Santa
Monica lodging businesses
continue to invest in stable,
lodging-specific marketing
programs.

TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TMDs allow
lodging business owners to
organize their efforts to increase room night sales. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase room night sales.

In California, TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
x Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
x Funds cannot be diverted to general government programs; x They are customized to fit the needs of payors in each destination; x They allow for a wide range of services;
x They are designed, created and governed by those who will pay the assessment; and x They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12
19 24 28 31
37 45
60 63
72 80
88 95
0 10
20 30
40 50
60 70
80 90
100
198919952000200120022003200420052006200720082009201020112012201320142015 Number of Districts Operating Per Year

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IV. BOUNDARY
The SMTMD will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Santa Monica with an average daily rate of $100 or more. Lodging businesses whose average daily rate increases to $100 will be assessed upon determination of the increase; likewise, lodging businesses whose average daily rate decreases to below $100 will not be assessed upon determination of the decrease. Average daily rate figures shall be updated annually.

Lodging business means: Any public or private hotel, inn, hostelry, tourist home or house motel, rooming house or other lodging place within the City of Santa Monica offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any transient.

The boundary, as shown in the map below, currently includes thirty-two (32) lodging businesses. A complete listing of lodging businesses within the renewed SMTMD can be found in Appendix 2.

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V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SMTMD funds are sales and marketing programs available only to assessed businesses. The assessment rate for each Tier will be commensurate with privileges and services provided to assessed businesses in each Tier as detailed in Appendix 4.

A service plan budget has been developed to deliver services that benefit the assessed businesses. A detailed annual budget will be developed and approved by the SMTT TMD Committee and the SMTT Board. The table below illustrates the initial annual budget allocations for the first partial fiscal year.

The total SMTMD annual budget for each full year of operation is anticipated to be approximately $4,130,000. The initial “year” of operating will be a partial year consisting of six months, for which the anticipated budget is $2,065,000.

Although actual revenues will fluctuate due to market conditions and assessment rate increases, the proportional allocations of the budget shall remain the same. However, the City and the SMTT board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SMTMD, any and all assessment funds may be used for the costs of defending the SMTMD.

Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.

The costs of an individual staff member may be allocated to multiple budget categories, as appropriate Sales & Marketing,
$1,755,250 , 85%
Administration,
$206,500 , 10%
Contingency/Reserve, $103,250 , 5%
FY 2018 Budget (January - June) - $2,065,000

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in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by SMTT on an as-needed basis. Staff costs will be allocated based on work performed.

Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Santa Monica as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
x Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; x Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; x Attendance of trade shows to promote assessed businesses; x Sales blitzes for assessed businesses;
x Familiarization tours of assessed businesses;
x Research and analytics to promote assessed businesses; x Translation services designed to drive overnight visitation and room sales to assessed businesses;
x Staff to implement and support expanded marketing and promotion efforts to promote assessed businesses;
x External public relations firms to promote assessed businesses; x Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
x Attendance of professional industry conferences and affiliation events to promote assessed businesses;
x Lead generation activities designed to attract tourists and group events to assessed businesses; x Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
x Development and maintenance of a website designed to promote assessed businesses.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the SMTT TMD Committee and the SMTT Board of Directors.

The reserve fund may be used for the costs of renewing the District.

B. Annual Budget
The total nine and one-half (9.5) year improvement and service plan budget is projected at approximately $4,130,000 annually, or $57,530,913 through 2027 if the maximum assessment rate increases are adopted. Fiscal year 2018 covers the six month period from January to June 2018, resulting in a lower budget for the first six months of district operation. This budget is expected to fluctuate as room sales change and if the assessment rate is increased. The initial assessment rate is:

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Tier Average Daily Rate Assessment Per Occupied Room Per Night 1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
The SMTT may increase the assessment rate by a maximum of $0.25 per year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The assessment rate might not increase starting in fiscal year 2018-19, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of SMTMD efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized TMD budgets. If the maximum annual assessment increases are adopted by the SMTT Board, the estimated annual budget will increase as shown in the table below.

Estimated Annual Budget If Maximum Assessment Rates Are Adopted 2018-2027
FY Sales &
Marketing Administration Contingency/Reserve Total
2018* $1,755,250 $206,500 $103,250 $2,065,000
2018-19 $3,813,041 $448,593 $224,297 $4,485,931
2019-20 $4,130,576 $485,950 $242,975 $4,859,501
2020-21 $4,463,730 $525,145 $262,572 $5,251,447
2021-22 $4,813,157 $566,254 $283,127 $5,662,537
2022-23 $5,179,531 $609,357 $304,678 $6,093,566
2023-24 $5,563,556 $654,536 $327,268 $6,545,360
2024-25 $5,965,962 $701,878 $350,939 $7,018,778
2025-26 $6,387,504 $751,471 $375,736 $7,514,710
2026-27 $6,828,969 $803,408 $401,704 $8,034,082
Total $48,901,276 $5,753,091 $2,876,546 $57,530,913
*Fiscal year 2018 only covers a 6 month period (January – June). The estimate for the first year of operation of the district is $4,130,000 which translates to approximately $344,166.67 per month. The subsequent years in the table above use the $4,130,000 figure as a base number for all calculations.

C. California Constitutional Compliance
The SMTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on real property.”1 Rather, the SMTMD assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SMTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230

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1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the District. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the District, and are narrowly tailored. SMTMD funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SMTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by this District is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the district assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.

Although the District, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SMTMD are government services within the meaning of Proposition 265. Destination marketing services are frequently funded and provided by local governments. In the case of the SMTMD, the district is formed and services are overseen by the Santa Monica City Council. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6 2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

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3. Reasonable Cost
District services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by SMTT, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from districtfunded activities, be featured in advertising campaigns, and benefit from other district-funded services.

Non-assessed lodging businesses will not receive these, nor any other, district-funded services and benefits.

The District-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-District funds. SMTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

4. Benefit to NonPayors
The specific benefits provided by the SMTMD will only be directly provided to the assessed businesses; they will not be directly provided to non-assessed businesses. Possible indirect benefit does not preclude the SMTMD services from being considered a specific benefit. The legislature has directly indicated, in the context of tourism marketing districts, that services are not precluded from classification as a specific benefit merely because an indirect benefit to a nonpayor occurs as a consequence of providing the service and without cost to the payor.7 Although the legislature does not require the cost of any incidental benefit to non-payors be separated from the assessment, out of an abundance of caution a study was conducted on benefit generated by the SMTMD programs. The study is attached as Appendix 3. The study found that 6.6% of marketing programs generate incidental room night sales at non-assessed lodging businesses. Although it is not required, the portion of programs that generate this benefit will be paid for with non-assessment funds. Assessment funds will only fund that portion of the programs (93.4%) which represents a specific benefit to the assessed businesses. For example, if a program costs $100,000 total, the SMTMD will fund $93,400 and the remaining $6,600 will be sourced from non-assessment funds.

The amount of the assessment is no more than necessary to cover the reasonable costs of the proposed activities, and the manner in which the costs are allocated to a business owner bear a fair share or reasonable relationship to the businesses’ benefits received from the proposed activities. The benefit study in Appendix 3 found that the benefits provided by the SMTMD do not exceed the reasonable cost.

The programs provided with District funding receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, transient occupancy tax, and other funds. These funding sources shall be equal to or exceed the amount of benefit conferred to non-payors annually by the District’s services. These non-assessment funds will be used to pay for the benefit to nonpayors provided by the proposed services, ensuring that assessments will only be used to provide benefits to assessed businesses.
7 AB 483 Ting (2014)

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D. Assessment
The assessment is a fixed amount per occupied room per night. The assessment is based on the businesses’ average daily rate, based on the previous year’s performance. Average daily rate figures shall be updated annually. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays paid by any Federal, State of California, or City of Santa Monica, official or employee when on official business provided that an exempt certificate is executed at the time of registration. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed. Assessment rates are:

Tier Average Daily Rate Assessment Per Occupied Room Per Night 1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 -$199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five cents ($0.25) per year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amount for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. The maximum assessment rate for each category is:

FY $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*Fiscal year 2018 only covers a 6 month period (January – June).

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “TMD Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
If any business shall fail or refuse to remit to the City the assessment due on or before the last day of the month in which the assessment becomes due, there shall be added to the assessment a penalty of ten percent (10%) of the amount of the assessment. If the assessment remains delinquent and

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unpaid thereafter for a period of thirty (30) days, there shall be an additional penalty of ten percent (10%).

F. Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2018 and will continue for nine and one-half (9.5) years through June 30, 2027. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging with an average daily rate of $100 or more. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SMTMD as defined in Streets and Highways Code §366612. The City Council has determined that Santa Monica Travel & Tourism will serve as the Owners’ Association for the SMTMD.

The SMTT standing advisory committee, known as the “TMD Hotel Committee” shall continue to be responsible for making recommendations to the SMTT Board regarding SMTMD funds and programs. The TMD Hotel Committee shall have between four (4) and nine (9) members, of which at least four (4) will be representatives of assessed lodging businesses.

Annually, SMTT shall hold a joint SMTT board and TMD Hotel Committee meeting which will be open to the public. The purpose of the annual meeting will be mutual approval of the budget and programs for SMTMD funds for the upcoming fiscal year.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SMTT board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
SMTT shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
x Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
x The improvements and activities to be provided for that fiscal year. x An estimate of the cost of providing the improvements and the activities for that fiscal year. x The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
x The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
x The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

D. Milestone Report
SMTT shall prepare a five-year Milestone Report, which will be due in May 2022 prior to the City’s approval of the annual report for Fiscal Year 2022-2023. The Milestone Report shall be submitted to

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the City and all assessed businesses. It shall include all information required in the annual report, as well as historical program and performance data, including key performance indicators for lodging businesses such as average daily rate, revenue per available room, and occupancy rates. The Milestone Report may serve as the annual report for Fiscal Year 2022-2023. If lodging businesses are not satisfied with the results of the Milestone Report, they may petition the City to disestablish the District pursuant to Streets and Highways Code section 36650.

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APPENDIX 1 – LAW

STREETS AND HIGHWAYS CODE
Division 18. Parking
Part 7. Property and Business Improvement District Law of 1994 Cal Sts & Hy Code Div. 18, Pt. 7 Note (2015)
*** This document is current through the 2015 Supplement *** (All 2014 legislation)
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or businesses in a business district are not taxes for the general benefit of a city, even if property or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that propertybased districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in propertybased districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special

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benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. 36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed businesses and real property located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

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“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the area. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ Association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district.

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36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. 36617. Alternative method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated

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based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.

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(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
(7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36626. Resolution establishing district
If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram

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Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. 36631. Time and manner of collection of assessment; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

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36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention; Modification of improvements and activities by adoption of resolution after public hearing (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623.

Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.

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(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements and activitites The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. 36670. Circumstances permitting disestablishment of district; Procedure

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(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestab-lishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES

BUSINESS NAME BUSINESS MAILING ADDRESS
Bayside Hotel 2001 Ocean Avenue, Santa Monica, CA 90405 Best Western Plus Gateway Hotel
Santa Monica
1920 Santa Monica Boulevard, Santa Monica, CA
90404
Cal Mar Hotel Suites 220 California Avenue, Santa Monica, CA 90403 Comfort Inn Santa Monica-West Los
Angeles
2815 Santa Monica Boulevard, Santa Monica, CA
90404
Days Inn Santa Monica/Los Angeles 3007 Santa Monica Boulevard, Santa Monica, CA 90404
DoubleTree Suites by Hilton Hotel
Santa Monica
1707 Fourth Street, Santa Monica, CA 90401
Fairmont Miramar Hotel & Bungalows 101 Wilshire Boulevard, Santa Monica, CA 90401 Hotel Carmel 201 Broadway, Santa Monica, CA 90401
Hotel Cassa Del Mar 1910 Ocean Way, Santa Monica, CA 90405 Hotel Shangri-La at the Ocean 1301 Ocean Avenue, Santa Monica, CA 90401 Huntley Santa Monica Beach 1111 Second Street, Santa Monica, CA 90403 JW Marriott Santa Monica Le Merigot 1740 Ocean Avenue, Santa Monica, CA 90401 Le Meridien Delfina Santa Monica 530 Pico Boulevard, Santa Monica, CA 90405 Loews Santa Monica Beach Hotel 1700 Ocean Avenue, Santa Monica, CA 90401 Ocean Lodge Hotel Corporation 1667 Ocean Avenue, Santa Monica, CA 90401 Ocean Park Inn 2452 Lincoln Boulevard, Santa Monica, CA 90405 Ocean View Hotel 1447 Ocean Avenue, Santa Monica, CA 90401 Oceana Beach Club Hotel 11766 Wilshire Boulevard, Los Angeles, CA 90025 Palihouse Santa Monica 1001 Third Street, Santa Monica, CA 90403 Rest Haven Motel 815 Grant Street, Santa Monica, CA 90405 Santa Monica Motel 2102 Lincoln Boulevard, Santa Monica, CA 90405 Santa Monica Pico Travelodge 3102 Pico Boulevard, Santa Monica, CA 90405 Sea Shore Motel 2637 Main Street, Santa Monica, CA 90405 Seaview Hotel 1760 Ocean Avenue, Santa Monica, CA 90401 Shore Hotel 1515 Ocean Avenue, Santa Monica, CA 90401
Shutters on the Beach Hotel One Pico Boulevard, Santa Monica, CA 90405 The Ambrose Hotel 1255 20th Street, Santa Monica, CA 90404 The Cottage Santa Monica 2219 Ocean Avenue, Santa Monica, CA 90405 The Georgian Hotel 1415 Ocean Avenue, Santa Monica, CA 90401 The Hotel California 1670 Ocean Avenue, Santa Monica, CA 90401 Viceroy Santa Monica 1819 Ocean Avenue, Santa Monica, CA 90401 Wyndham Santa Monica – At The Pier 120 Colorado Avenue, Santa Monica, CA 90401

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APPENDIX 3 – BENEFIT STUDY

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SANTA MONICA TRAVEL & TOURISM

PROGRAMS AND SERVICES

OPERATING PLAN
July 1, 2024 – June 30, 2025

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Table of Contents
Executive Summary 1
One Plan, Two Funding Sources 5
Funding Sources 7
Programs & Services 8
Lane 1: Drive Balance Demand for the Destination 12
Travel Trade – Domestic & International Markets 13
Santa Monica Meet 20
Lane 2: Enhance the Brand and Steward the Destination Experience 23 Experience Management Plan (EMP) 23
Tourism Improvement District (TID) 24
Brand Campaign 25
Paid Media 25
Santa Monica City Shared Identity Project 26
Content and Social Media 26
SantaMonica.com 28
Santa Monica Restaurants 29
Media Relationships 29
Crisis Communications 31
Lane 3: Champion the Value of Tourism 33
Board Engagement 33
Community & Civic Relations 34
Santa MoniCARES 35
Tourism Industry Leadership 36
I Am Santa Monica 29
“I Am Your Destination” Program 37
Lane 4: Strengthen Strategic Partnerships 38
Strategic Partnerships 39
Lane 5: Ensure Operational Excellence 40
Operational Excellence 40
Emergency Preparedness 41
Destination Marketing Accreditation Program (DMAP) 41
Closing 42

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1 Dear Santa Monica Community and Tourism Business Partners, On behalf of entire Board of Directors and Santa Monica Travel & Tourism staff members we are pleased to present our program and services operating plan covering July 1, 2024 through June 30, 2025.

We’ve come a long way over the past four years and our destination continues to experience growth. However, there is still a ways to go to make a full recovery.

Historically, prior to the pandemic, our visitor origin to Santa Monica was at a steady 50% from key international markets. Targeting and attracting this visitor base has been a strategic approach for decades as international visitors use public transport, stay longer in the destination, and have a higher spend when here. While we are seeing international travel rebound at our hotels and Los Angeles International Airport (LAX) continues to see a 100% year-over-year increase in passengers into the region, the journey to full recovery continues.

Despite some positive results, lingering impacts of the pandemic remain and new challenges have emerged. Economists have forecast a global economic slowdown or recession ahead, employment remains low compared to pre-pandemic levels and diminished revenues reflect a slow return to travel from several key international markets.

Leisure and business travel segments are on the path to recovery only stalled by an increasing number of domestic travelers choosing international travel that had been on hold over the past few years due to pandemic-related travel restrictions.

Additional threats to our industry loom on the horizon, including excessive U.S. visa wait times and backlogs of passport applications for those wishing to visit. The United States continues to face internal political conflicts that have worldwide implications and a U.S. presidential election in November 2024 raises concerns amongst global travelers. The geopolitical tensions and instability, and disruptions due to shifting weather patterns and climate change all have a direct impact on how travelers feel and prioritize vacations.

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2 These factors continue to impact the economy of Santa Monica’s hotels, restaurants, attractions, retail establishments, city revenues and our daily lives.

As we move further away from the end of the pandemic, the surge in post-COVID travel demand appears to have been temporary. Unfortunately, 2023 closed with a weaker travel demand including a faded hotel demand. Stunning new research from the U.S. Travel Association shared that while the U.S. is a highly desired destination, with diverse products and a strong brand identity among international travelers it ranks our country 17th out of 18 top travel markets in terms of global competitiveness. On National leadership, the U.S. ranked last in terms of government leadership on travel-related issues and the strength of its national travel strategy. Most top markets have a minister of tourism; the U.S. has an Assistant Secretary of Commerce for Travel and Tourism position, but the role has not yet been filled or fully funded by Congress. The U.S. has few specific federal policies and little funding to increase inbound visitation. The World Economic Forum Safety and Security Pillar—which considers various factors such as the prevalence of violence and crime—was used to rank the safety category, placing the U.S. toward the bottom. The study cited excessive visitor visa interview wait times, which approach an average of 400 days in top source markets, placed the U.S. last in this critical category. The U.S. also ranks unfavorably in terms of the number of countries it permits for visa-free travel, granting the privilege to only 42 nations—far behind the U.K., which allows 102 countries visa-free travel. All alarming signs for the full recovery of international travel to the United States.

More optimistically, California remains the number 1 destination in the nation and international travel to the U.S. is still growing and expected to achieve a full recovery in 2025 with spending levels expected to recover in 2026. It is important to also note other hopeful signs, recent research confirmed that travel is still a priority; luxury travel is here to stay; and travelers are starting to plan travel ahead of time again. Experiences reign supreme and responsible travel is no longer a niche. All of this is great news and will aid our full recovery in Santa Monica. The investments being made in the Santa Monica experience abound, new and refreshed hotel products, cultural activites, additional businesses opening again on a regular basis. Each day we get stronger.

We will be sharing positive destination messging with a large international audience this summer. From May 2, 2024 – May 7, 2024, when Los Angeles will host the U.S. Travel Association’s IPW, the leading inbound trade show that focuses on bringing international

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3 visitors to the U.S. Santa Monica will have a large presence at the trade show and has partnered with Los Angeles Tourism to host the opening night at the Los Angeles Coliseum and joining Visit California in hosting the California Plaza experience at the LA Convention Center. The Plaza provides 30 participating cities throughout the state of California the opportunity to showcase their city’s most iconic experiences and destination partners. What better way to showcase Santa Monica than to provide buyers with direct access to our local partners and their products? Nothing beats an in person visit and we will be throwing a Party on The Pier on the 2 open evenings of this trade show to share this unique and historic location with this improtabnt group. SMTT and partners will also conduct familiarization tours (FAM) which we will be hosting many groups and individual journalists and buyers to experience Santa Monica up close.

With a review of under-tapped opportunities and remaining pent-up demand, we will continue to extend our reach and presence in top producing domestic markets including New York, Chicago, California and border states, while increasing our efforts in our top international markets, including Australia/New Zealand, United Kingdom/Ireland, France, Germany, Canada and budget permitting, re-engaging in Mexico, India and the UAE to ensure Santa Monica is well positioned to attract a balance and a wide range of visitors.

As international inbound travel continues to fluctuate, we will continue our close work with U.S. Travel and Visit California to monitor the markets with the most potential to ensure we are driving maximum market demand and ROI.

Santa Monica’s tourism industry is a critical source of jobs and revenue that contributes to a thriving and sustainable local economy. Pre-pandemic, visitor spending was nearly $2 billion with Transient Occupancy Tax (TOT) generating over $58 million into the City of Santa Monica’s general fund, providing for essential city services, including police and fire, parks, libraries, education, and road improvements.

To ensure a strong, resilient, and vibrant Santa Monica, our internal work is just as important as our external efforts. Over the next year, Santa Monica Travel & Tourism will continue to produce our annual economic impact study and utilize available research tools to help identify trends and track results. Additionally, this information will help to inform the Santa Monica Experience Management Plan (EMP) - a roadmap for the future which outlines nine strategies to optimize the Santa Monica experience for our residents and visitors through 2032 to preserve and enhance our quality of life. Each strategy has a dedicated localized committee to guide and ensure that progress is shared and stays on

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4 track. This plan is a collaborative vision created with the support of the City of Santa Monica, along with residents, businesses, and community leadership. The EMP remains a priority as we rebuild the tourism industry and guide execution of those strategies for overall community-wide success.

We eagerly look forward with optimism while reflecting on the devastating impacts that continue to ripple from such a profound global disruption. We must continue rebuilding our community with investments, partnerships, innovation, and collaboration with all to ensure our businesses are strong; jobs stay here; and much-needed tourism revenues continue to support the critical city services needed in our community for our residents, businesses, employees and our visitors.

Challenges continue and in working together, believing in one another and our community we will be successful. Santa Monica is resilient and through united efforts we can offer a vibrant, thriving and a safe destination experience for our residents and visitors, this is our shared priority.

Santa Monica has a lot of spirit, and when we come together as one, we can’t be stopped.

In gratitude,
Misti Kerns
President/CEO
Santa Monica Travel & Tourism

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5 One Plan, Two Funding Sources
While Santa Monica Travel & Tourism is supported through two funding sources, the organization operates from one cohesive strategic plan. Our two-year rolling strategic plan will align with the strategies in the Santa Monica Experience Management Plan (EMP) that provides a roadmap for destination success through 2032.

We continue to see growth in travel and tourism to Santa Monica as well as economic recovery however we remain conscious of the need to continually respond to shifts in the travel industry and the community. While the needs, programs and markets may have altered in response to emergent activity, our five strategic areas of focus remain:
• Drive Balanced Demand for the Destination
• Enhance the Brand and Steward the Destination Experience • Champion the Value of Tourism
• Strengthen Strategic Partnerships and Relationships
• Ensure Operational Excellence
This work plan details our initiatives and programs according to the above strategic areas of focus. The following provides an overview of our funding sources and our expenditures aligned with our various departments. Further details on city-funded programs are outlined below for reference.

Promoting the destination and the experiences it offers serves as a catalyst of economic development. Santa Monica Travel & Tourism’s purpose is to build, protect and promote Santa Monica’s brand and international reputation as a destination; attract decision makers and new investments; and help local businesses expand their global reach.

Destination promotion helps sustain and create local jobs that spur economic growth in the city and helps to improve the quality of life for Santa Monica residents.

When the Santa Monica Tourism Marketing District (TMD) was established in 2013, it was not meant to replace city funding. It was meant to demonstrate public-private partnership between the City of Santa Monica and the hotel community, facilitating a unique approach to increasing employment; taxes; and revenues and has proven successful.

There are hundreds of Santa Monica businesses (beyond our hotels) that directly benefit from a strong visitor base. City funding ensures the promotion of those local businesses and provides opportunities for them to reach and serve that visitor base. Small businesses are some of the most dependent on us, as they often are less equipped to gain high

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6 visibility and reach domestic and international visitors to stimulate visitor spending. This is more critical than ever as we rebuild from the economic downturn.

City funding allows us to provide basic services to more than eight million visitors once they are in our community. It helps steer them to our businesses in each neighborhood; communicate local ordinances; and provide public safety tips to ensure they responsibly enjoy their Santa Monica experience; an area that will require further attention as visitation grows.

Having a base of city funding permits SMTT to utilize its Tourism Marketing District (TMD) funding to maintain a consistent presence in top-producing domestic and international markets.

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7 FUNDING SOURCES 2024-2025

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8 Programs and services utilizing city funding are outlined below by department:

Marketing
• Partner with Visit California and Brand USA to leverage professional meetings and events (PME) co-opportunities and further infiltrate the Meetings, Incentives, Conferences and Exhibitions (MICE) business, both domestically and internationally.
• Research and Economic Impact Report – conducted monthly quarterly and annually.
• Continue community sponsorships budget permitting such as; ICE at Santa Monica; SaMo Pride; Pier 360; Buy Local’s Most Loved contest; 4th of July Parade; Sister City Association; Santa Monica Police Activities League; Chrysalis; local youth music groups; Santa Monica Conservancy, Santa Monica History Museum, Business Improvement District (BID) advertising partnerships and SMDP’s ‘Tis the Season guide.
• Sustain ongoing sponsorship commitments for newly established events, such as the LA Wine & Food Festival and Frieze Los Angeles.
• Update, monitor, and facilitate the execution of the Santa Monica Experience Management Plan (EMP).
• Perform traveler and resident outreach through local education and advertising campaigns promoting visitor centers; car-free messaging; sustainability; public safety; crisis communications (as needed); reinforcing and sharing local ordinances; and economic impact research.
• Create free programs for local businesses and residents, such as I Am Santa Monica, Santa Monica Restaurant Week, and I Wish I Had an Extra Bedroom campaign.
• Provide a free Partner Portal that allows businesses to customize their business landing page on santamonica.com.
• Utilize search engine optimization (SEO) to drive organic traffic to santamonica.com.
• Act as the central source of information to educate and advise visitors, travel and trade professionals and media about Santa Monica’s overall visitor experience. • Build awareness of Santa Monica as an attractive and unique travel destination. • Provide client services as needed for small meetings and conference groups, with materials to encourage attendance.
• Provide virtual and printed collateral pieces including, but not limited to, the Official Santa Monica Visitor Guide & Map and corporate planner publications. • Partner with the city to fully inventory and utilize its facilities when feasible.

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9 • Promptly answer all correspondence related to convention and visitors’ facilities in Santa Monica and disseminate information through correspondence, media publicity and personal contacts that favorably advertises advantages and opportunities.
• Promote travel and tourism activities that will bring additional revenue to the city and local businesses.
• Host familiarization tours (FAMs) for leading domestic and international travel industry buyers, journalists, editors, influencers, and broadcasters. • Attend global and domestic media networking events that connect the travel industry with top-tier journalists, editors, influencers, and broadcasters. • Direct efforts towards cultivating a dynamic and contemporary brand presence aimed at fostering visitor engagement and stimulating economic growth. • Drive awareness and participation in community-based charitable initiatives utilizing the Santa MoniCARES website, collateral materials, and advertising channels.
• Provide complimentary promotional opportunities to local partners, encompassing 360-degree video capture, social media promotion, destination signage, and exposure on Santamonica.com.
• Produce and distribute Official Santa Monica Visitor Guides & Maps within Santa Monica and across California; domestic feeder markets; international offices; and trade shows.
• Expand Santa Monica’s competitiveness for groups by advising and supporting group marketers.
• Assist and explore opportunities to expand and improve existing products, services, and experiences.
• Periodically review public and private facilities and services in Santa Monica, necessary for travel and tourism activities, with the goal to advise the city and business community of concerns and needed improvements that align with the Experience Management Plan (EMP).
• Facilitate roundtable educational sessions for local businesses. • Publish and inform tour companies and drivers of all bus loading zones in the destination.
• Pursue integrated marketing campaigns and experiential brand activations in designated target markets.
• Create promotional videos for key pillars, such as culinary; health & wellness, and outdoor activities. These videos will provide us with exciting content to house on our website and share through social media and newsletters and use as pitching materials to secure media coverage.

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10 • Develop Virtual Reality (VR) tours of destination experiences and businesses. • Begin development of short- and long-range sponsorship and partnership programs for SMTT, including:

Route 66 Centennial in 2026
2026 NBA All-Star 2026
2026 FIFA World Cup 26
2027 Super Bowl LXI
2028 Olympic & Paralympic Games
• Conduct destination brand refresh.
• Update destination photography and videography as needed to evolve the brand. 2024-2025 Programs / Additions
• Budget permitting, expand and re-engage audiences in Mexico, India, South America, and the Middle East to ensure Santa Monica is well positioned to attract a wide range of international visitors.
• Act on learnings of Santa Monica Experience Management Plan (EMP). • Identify and engage corporate brand partnerships that align with findings and creative of destination brand refresh.
• Develop long-range sponsorship and partnership programs for SMTT. • Conduct internal and external quantitative and qualitative research to continually evolve brand messaging.
• Develop a new photo and video library to reflect changes in the destination. • Participate in State of California Route 66 Task Force and form local committee for Santa Monica’s Route 66 planning and programming for the centennial celebration in 2026.
• Support City of Santa Monica and begin planning for LA28 Olympics Beach Volleyball competition.
• Reinstate a city-wide Marketing Committee to strategize and oversee promotional initiatives, ensuring alignment with destination objectives and maximizing outreach effectiveness.
• Produce tailored marketing collateral and messaging for international markets to ensure cultural relevance, resonate with diverse audiences, and maximize engagement and conversion rates globally.

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11 Visitor Services
• Operate three Visitor Information Center locations, including a mobile visitor center that serves community events. Visitor Center staff serve when needed as distribution points for city programs and during emergencies. They serve as ambassadors in providing information and services to residents and many of Santa Monica’s 5.3 million annual visitors, 365 days a year.
• Support local community events on site including, but not limited to, National Night Out; Pier 360; local BID holiday events; Buy Local; MAINopoly; Open Main Streets; Summer SOULstice; ICE Santa Monica; Annual Christmas Tree Lighting at Santa Monica Place; Meet Me Under the Fig Tree; and SMPD Roll Calls. • Themed lighting on locations to further welcome visitors and celebrate holidays and highlight city-wide events.
• Continue to serve as a city-wide distribution point for resources and information for Santa Monica businesses and residents.
• Share information and celebrate the positive impacts of tourism for the community at the Annual Tourism Summit, which is a gathering of business, civic and nonprofit organizations. The Tourism Summit is a shared expense between City and TMD during the month of May which is California Tourism Month. • Provide curbside drop-off service for Santa MoniCARES donation collections benefiting Santa Monica-based nonprofits.
• Respond to text-on-demand requests seven days a week during operating hours at Visitor Information Centers.
• Explore and implement AI tools to provide information 24 hours 7 days a week to potential and visiting individuals.
• Measure overall number of visitors served.
2024-2025 Programs / Additions
• Soft launch of new merchandise and Shop Santa Monica retail program aligning with brand refresh.
• Prepare for bulk order retail program for retail to local businesses. • Advance development plan for Visitor Service locations upgrades, both physically and technologically.
• Finalize plan for Visitor Center product and signage, including SMTT’s mobile vehicle, in line with the brand refresh creative.

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12 Travel Industry Sales
SMTT’s five strategic areas of focus are the foundation of our work plan. Here we outline the programs, initiatives and staff efforts that help propel our strategies to success for the destination:

LANE 1: DRIVE BALANCED DEMAND FOR THE DESTINATION
Objectives:
• Increase year-over-year Transient Occupancy Tax (TOT). • Maintain and grow domestic travel levels from target markets. • Increase international visitation to pre-pandemic level (2019). • Grow average length-of-stay to pre-pandemic level by year end of 2024 calendar year.
• Maintain stable year-round occupancy range of 65% to 73% for FY 2024 and 73% to 80% for FY 2025.

Key Initiatives/Strategies:
• Increase occupancy during identified need periods.
• Re-establish presence in key markets to ensure optimal ROI for Santa Monica from key markets in the region.
• Secure new “right size” and cultural events in Santa Monica that will drive room nights, taxes and revenues.
• Implement next steps for MICE Client Advisory Board.
• Actively support national efforts to reduce visa wait times. • Further develop luxury destination offerings and experiences.

It is important to emphasize that several major sporting events are taking place in Los Angeles including the:
2024 NCAA Division I Men's Basketball West Region Championship 2026 NBA All-Star 2026
2026 FIFA World Cup 26
2026 U.S. Women's Open
2027 Super Bowl LXI

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13 2028 Olympic & Paralympic Games
As such, it is crucial for SMTT to utilize and work on these relationships for future bookings and partnership programs.

SMTT will gauge success in its efforts according to these key performance indicators:

Destination Performance
• Occupancy
• Average Daily Rate (ADR)
• Revenue per available room
• Visitor makeup (% domestic vs. international)
• Transient Occupancy Tax (TOT) generated
• Retail and sales taxes generated
• Tourism Marketing District (TMD) collections
• Employment sustained in our industry
SMTT Programs Performance
• Room nights booked during campaigns
• Website traffic and links out to partner websites
• Increase in social media activity
• Incentive and meetings business booked
• Travel trade bookings
• Overall economic growth year-over-year
TRAVEL TRADE – DOMESTIC & INTERNATIONAL MARKETS
As mentioned earlier in the executive summary, many challenges remain and while international inbound travel to the U.S. and California continues to increase, there are several hurdles impacting a full recovery. First, travelers from key inbound markets who are applying for visitor visas for the first time are experiencing wait times of 400 days on average and up to 888 days at its highest in India. First-time travelers to the U.S. from countries such as Mexico, India, China, and Brazil are all impacted by these delays.

Second, while airlift between top international feeder markets and California gateways has grown, there is still a lack of sufficient flights from many key markets into LAX. Third,

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14 a strong U.S. dollar has made travel more expensive for international visitors but is predicted to soften in 2024.

There are several solutions currently being discussed or planned to help address these challenges and pave the way for a full recovery. We are working with other board members of the U.S. Travel Association and Congress to work on measures to reduce visa wait times, and fund the office of tourism, and Visit California is working with its international offices and airlines in key feeder markets to add new routes to California. Air service from Australia is anticipated to ramp up significantly by summer. In preparation for this, Santa Monica Travel & Tourism has continued to invest in international representation, programs, and sales driving campaigns in key markets (below) while reestablishing its presence in Australia/New Zealand.

Listed below is our proposed plan and framework to keep Santa Monica top-of-mind among travel agents, tour operators and meeting planners during this crucial time. We will increase international programs in countries that have historically been top source markets for our destination, and which are expected to have the fastest travel recovery.

We will also build upon the domestic programs and partnerships that we established in the last two years to ensure a diversified and holistic approach is taken.

It is important to note that all areas below are based on available budget, and that this plan is subject to change. If we have learned anything from the past four years, it is that we must be able to adapt and pivot as conditions continue to evolve.

Primary Markets:
• United States
• United Kingdom/Ireland
• Australia/New Zealand
Secondary Markets:
• France
• Germany
• Canada

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15 Exploratory Markets:
• Mexico
• India
• Brazil
• UAE
• Japan
• China
A continued investment in the luxury segment will remain a focal point for our domestic and international strategies. In 2023, SMTT renewed marketing partnerships with two of the leading luxury travel networks: Virtuoso and Signature Travel Network. These partnerships provide exclusive access to luxury advisors and clients in North America and abroad and have successfully provided us with unique opportunities for joint marketing; webinars; tradeshows; and events. Santa Monica was recently included in Virtuoso’s 2023 list of the top 10 cities booked worldwide for leisure travel.

In 2024, IPW will be held in Los Angeles for the first time since 2021. IPW is the leading inbound travel trade show that connect U.S. suppliers of travel products and destination with domestic and international travel buyers and journalists, representing over 60 countries. In addition to the tradeshow, SMTT will be partnering with Visit California on post-IPW FAMs (familiarization) tours, showcasing in the California Plaza and hosting our annual client appreciation event on the Santa Monica Pier. Now more than ever, Santa Monica partners are eager to increase their visibility with international tour operators and wholesalers. SMTT will be joining by a record nine partners at IPW with representatives from Le Meridien, Hilton Santa Monica, Shutters on the Beach, Fairmont Miramar, Palihouse, Viceroy, Casa del Mar, Malibu Discovery Wine Tour and Macerich.

In North America, SMTT will continue to grow Santa Monica’s presence in Canada in partnership with its in-market representation team. Santa Monica also has an opportunity to grow business during our winter and shoulder seasons among Canadian snowbirds.

Along those lines, we will be looking to our neighbor to the south, Mexico, and exploring opportunities to potentially grow visitation from this market and budget permitting the others listed above.

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16 Overseas, we will be focused on strengthening our relationships and driving room nights with the travel trade in key markets such as the United Kingdom/Ireland, Australia/New Zealand, France, and Germany.

United States
Travel Network/Consortia Partnerships
• Virtuoso
• Travel Leaders
• AAA
Trade Shows/Events
• IPW Los Angeles
• California Cup
• ILTM North America/ILTM Cannes
• Brand USA Marketplace
• Go West Summit
• Virtuoso Travel Week
• Signature Travel Conference
• Visit California Connections/Luxury Forum
2024-2025 Programs / Additions
• Training Programs:
a) Virtuoso Web15 to launch updated content.
b) Visit California STAR to launch updated content.
c) Develop Route 66 programs to increase hotel bookings during the Centennial. d) Identify final partners and launch for Route 66 programs to increase hotel bookings.
e) Continue awareness and marketing or Route 66 centennial experiences and packages.

United Kingdom/Ireland
Trade Shows/Events
• Santa Monica Sales & Media Mission
• Visit California Sales & Media Retreat
• Visit California Connections/Luxury Forum

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17 • Brand USA Travel Week Europe
• Visit USA Summer Affair
• Aer Lingus Roadshow
• Unite USA Event
Campaigns
• Hotelbeds x Visit California
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego) • Tour Operator, Brand USA, and Visit California Co-Ops • Hablo & Hablo Talks
• Expedia & Hotels.com digital B2C campaign
2025-2026 Programs / Additions
• Explore activation and Sister City partnerships in Brighton and London.

Canada
Travel Network/Consortia Partnerships
• Virtuoso
• Travel Leaders
• Signature Travel Network
Trade Shows/Events
• Santa Monica Sales & Media Mission
• Visit California Sales & Media Mission
• Visit California Connections/Luxury Forum
• Travel Leaders Roadshow
• Virtuoso On Tour
Campaigns
• Air Canada Vacations
• Expedia Canada
• Tour Operator, Brand USA, and Visit California Co-Ops Virtuoso
• The Travel Agent Next Door (TTAND) B2B
• SpoiledAgent.com

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18 2024-2025 Programs / Additions
• Activation in market-identify partnerships in market-budget dependent.

France
Trade Shows/Events
• IFTM Top Resa
• Visit USA Workshops
• Brand USA Travel Week Europe
• Visit California Roadshow
• Visit California Connections/Luxury Forum
Campaigns
• Tour Operator Co-Ops
• Havas Voyages Marketing Campaign
2024-2025 Programs / Additions
• Execute activation in market-budget permitting.

Germany
Trade Shows/Events
• Visit USA Germany Roadshow
• Visit USA Consumer Shows
• Brand USA Travel Week Europe
Campaigns
• CANUSA Touristik
• CRD (with Greater Palm Springs & San Diego)
• FTI
• America Unlimited/Feinreisen
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego) • Opodo and Visit California Co-Op
• HotelPlan (with Greater Palm Springs & San Diego)
• The German Beach Volleyball Association

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19 2024-2025 Programs / Additions
• Training Programs:
• Visit California STAR Module to re-launch updated content. • Sales and media mission.

Australia/New Zealand
Trade Shows/Events
• Visit California Sales & Media Missions
• Visit USA Expos and Brand USA B2B Days
• Visit California Connections/Luxury Forum
• ILTM Asia Pacific
• Brand USA Travel Agent Expo
• Virtuoso Connects, Travel Week and On Tour
Campaigns
• Flight Centre x Visit California
• SXSW Sydney Brand USA’s “USA House” activation
• Helloworld
• Luxury Escapes
• MTA Travel
• Christmas Road Sales Mission
• Tour Operator, Brand USA, and Visit California Co-Ops • Los Angeles Tourism & Convention Board Roadshow
• Quantas Best of North America Training Day
2024-2025 Programs / Additions
• Santa Monica Sales & Media Mission
• Training Programs:
• Virtuoso Web15
• Visit California STAR Module update annually
Global
Trade Shows / Events
• ILTM Cannes, North America and Asia-Pacific
• Visit California Connections/Luxury Forum

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20 • Virtuoso Travel Week and On Tour
• IPW Los Angeles
• Go West
• Brand USA Travel Week Europe
• Brand USA Marketplace
• Private Luxury Events Program
Campaigns
• Bonotel
• Hotelbeds
• Visit California Co-Ops
• Brand USA Co-Ops
• Airline Co-Ops
2024-2025 Programs / Additions
• Leveraging Visit California and the Los Angeles Tourism & Convention Board’s efforts, SMTT may join exploratory activities in potential growth markets for Santa Monica including, but not limited to, Mexico, Scandinavia, and China. Activities may include sales missions, familiarization trips (FAMs) and industry events - budget permitting.

SANTA MONICA MEET
SMTT’s group sales team (Santa Monica Meet) has continued initiatives to represent our destination as a top choice for meetings and events. Looking ahead, Santa Monica Meet will continue to do this by fortifying and building strategic partnerships with meetingsfocused media partners, as well as attending events to showcase our beach city to planners. The loss of the American Film Market after 32 years will take time to replace as it customarily took place in the off season. The return of Cirque du Soeil and other cultural experiences and new and upgraded product and new venues will help to keep Santa Monica top of mind.

The future continues to look brighter with the news of several major sporting events coming to the greater Los Angeles region in the next five years. As stated above, some of these include the 2024 NCAA Division I Men's Basketball West Region Championship; 2026 FIFA World Cup; 2026 U.S. Women's Open; 2026 NBA All-Star, Super Bowl LXI 2027 and 2028 Summer Olympic & Paralympic Games.

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21 Santa Monica hotels are looking to retain legacy groups and secure new group business in the corporate, entertainment, incentive, sports and association segments. With a few major events like U.S. Open in 2023, a few post-pandemic Rose Bowl pep-rallies on the Santa Monica Pier; and welcoming back cultural events like Frieze Los Angeles and Cirque du Soleil to Santa Monica, Santa Monica will also be a top choice for meeting planners and groups looking to stay in Los Angeles for ultimate VIP experiences and events.

We continue to see increase in request for proposals (RFP) volume, and consequently, our destination and hotels will continue to receive leads as soon as the next couple of months and continuing for the next two years. In addition, due to factors such as inflation and compression, many corporations are looking to secure multi-year deals with hotels for programs to limit rising costs.

Key factors that will contribute to the success of the group sales efforts:

Increasing hotel partner participation at trade shows and sales missions • Visit California’s Professional Meetings & Events (PME) Taskforce (which SMTT serves on) and programming.
• SMTT’s Client Advisory Board.
• Updated client network on new and updated hotel portfolio including hotel rebrands, renovations and unique event space updates.
• Site inspection assistance for qualified meeting planners. • New video and photography assets (virtual tours, updated meeting space images, hotel videos, etc.).
• Showcase new experiences like Cirque du Soleil, Frieze and more for unique incentive group experiences.
• Focusing on groups that are a fit for Santa Monica hotels (i.e. 25-125 rooms on peak)
As outlined below, Santa Monica Meet will exhibit at key trade shows and events to engage meeting professionals:

Maintaining Relationships
• Meeting Professionals International Southern California Chapter – committee member/ preferred annual sponsor

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22 • Society for Incentive Travel Excellence Southern California Chapter – active sponsor
• West Coast DMO Alliance Programming and Events
• GBTA Los Angeles Chapter – active member
• Establishing and nurturing relationships with key intermediary companies, such as ConferenceDirect; HelmsBriscoe; HPN; American Express, Meetings Made Easy; Prestige; Maritz; and more.

Sales Missions in Key Target Markets
• Phoenix Metro
• Northeast (New York & Boston)
Trade Shows and Roadshows
• IMEX America
• Prestige Global
• Visit California Professional Meetings & Events Roadshows • Retreat Resources Roadshows
• HelmsBriscoe Annual Business Conference
• M&I
• IBTM America
2024-2025 Programs / Additions
• Phoenix Sales Mission
• East Coast Sales Mission
• HPN APC
• ConferenceDirect Forum
Additionally, Santa Monica Meet will renew its partnership with Cvent and ways to secure business via new or alternative channels, such as Facebook groups and Tour Connection.

However, the foundation of our group sales efforts will continue to be rooted in representing our beach city as a top destination for memorable and impactful events and securing new and repeat business for the future.

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23 LANE 2: ENHANCE THE BRAND AND STEWARD THE DESTINATION EXPERIENCE Objectives:
• Ensure YOY increase in positive visitor sentiment.
• Increase favorable impressions of the destination’s brand. • Increase web performance year over year.
• Complete brand refresh platform and supporting materials. • Grow Santa Monica generated media placements to pre-pandemic levels.

Key Initiatives / Strategies:
• Refresh the destination brand, including Visitor Information Centers window displays, branded merchandise, and print/digital materials such as website redesign and updated image assets, alongside other improvements. • Identify what has changed with the brand perception of Santa Monica post-brand launch.
• Identify corporate brand partnerships.
• Produce the Official Santa Monica Visitor Guide & Map and distribute annually. • Pursue integrated marketing campaigns and experiential brand activations in designated target markets.
• Gear public relations (PR) efforts toward top-tier lifestyle outlets to increase ad value and circulation of media placements.
• Act on findings of the Santa Monica Experience Management Plan (EMP). • Enhance brand assets to amplify destination messaging and appeal, incorporating initiatives like crafting new landing pages and refining brand imagery to showcase the destination's distinctive offerings and allure. • Capitalize on the centennial of RT 66 as the end of the road location leading up to and in 2026.
• Work in partnership with the city and other stakeholders towards a temporary solution as the iconic Pier sign will not be available to the public during the Pier bridge construction project anticipated for 2 years.
• Evaulate the Tourism Improvement District

SANTA MONICA EXPERIENCE MANAGEMENT PLAN (EMP)
With our EMP Plan now updated we have moved to the process of implementation, which will continue to unfold over the coming years through 2032. There is much to do as we lock arms and embark on this important journey.

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24 For the first few years of the plan, we will focus on implementing programs for four of our nine key strategies (in bold below). A committee has been created for each of these strategies consisting of a cross section of key members of the community. Each committee has been appointed an SMTT facilitator to ensure open communications between all stakeholders in the EMP process:
• Ensure Santa Monica continues to be a safe and clean place • Support livability for Santa Monica residents
• Highlight and leverage cultural and historic experiences • Promote a diversity of retail, dining, and evening experiences • Foster memorable accommodation experiences that enhance the value proposition
• Facilitate the viability of small and unique businesses • Sustainably invest in making Santa Monica the greenest beach city in the U.S. • Support and enhance Santa Monica’s most important assets • Enhance mobility for Santa Monica visitors, residents, and workforce A governance committee has also been created to ensure that progress is made on each strategy and to prioritize short- and long-term goals. While SMTT is spearheading this process, we will not control or own all the initiatives that will be pursued. A consultant has been retained to facilitate the first years of the implementation phase and guide the process city-wide.

Going forward, this plan will allow for implementation of areas and ideas that have been outlined in the EMP while further building out the plan for future years to build upon the experiences offered.

TOURISM IMPROVEMENT DISTRICT (TID)
In 2022 SMTT created the TID and works with participating hotels to create a voluntary tourism services district to support Supplemental Clean and Safe Services along Ocean Front Walk and the adjoining public right of way. This program has proven successful to the environment and SMTT has an agreement with Chrysalis to staff and execute this program. This year we will evaluate the program and its future intentions.

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25 BRAND CAMPAIGN
SMTT has collaborated with agency of record (AOR), Noble Studios, to execute the initial and subsequent phases of the brand refresh. This encompassed a meticulous brand health assessment, thorough exploration of paid media opportunities, and in-depth brand discovery, culminating in a comprehensive research endeavor to objectively evaluate the Santa Monica brand, gauge visitor sentiment, identify target audiences, gather competitive insights, and outline future objectives. This initial discovery led to the development of a bridge campaign, alongside the establishment of a brand platform and messaging strategy.

As we transition into 2024, SMTT proceeds into the second half of the rebrands phased approach, concentrating on finalizing the brand's visual identity, refining the brand campaign, and overseeing video and photo production. These efforts are geared toward a soft launch of the brand refresh slated for late summer/fall 2024. We will work to evolve Santa Monica’s brand by crafting one-of-a-kind campaigns that create lasting impressions on visitors and our community and leveraging innovative technologies to help inspire people to travel to Santa Monica while ensuring that Santa Monica experiences provide lasting positive memories.

We will continue to focus our efforts on top domestic feeder markets: San Francisco, Phoenix, New York City, Las Vegas, Chicago, Seattle, and Washington D.C.; and internationally in key markets previously identified.

PAID MEDIA
Traditionally, paid media efforts have been focused on the fall, winter, and spring shoulder seasons with hiatus in summer but to keep Santa Monica top of mind year-round, we have moved to an annual evergreen campaign that shifts based on seasonality and targeted time frames. Our objective is to create emotional connections to Santa Monica beyond landmarks and drive overnight and mid-week visitation from core audience segments and extend their length of stay by two nights or more.

The campaigns are focused on and will deliver on the following key performance indicators (KPIs):
• Increasing direct bookings to hotels and increase TOT revenues • Increasing weekday hotel stays and business travel
• Increasing length of stay and overall spend of visitors

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26 • Increasing referrals to Santa Monica businesses via the Partner Portal • Driving traffic to Santamonica.com campaign landing page • Increasing bookings through online travel agencies
• Increasing social media presence and driving traffic to Santamonica.com

SANTA MONICA CITY SHARED IDENTITY PROJECT
SMTT is continuing to work with the City of Santa Monica and various stakeholders to develop a city brand shared identity that will allow the city to promote Santa Monica as a premier location for blue chip partnerships and flagship events.

CONTENT AND SOCIAL MEDIA
SMTT will continue to compile content from Santa Monica businesses for promotion through social media channels, the website and email.

SMTT’s social media strategy for the coming year will be to increase engagement and followers outside of the greater Los Angeles area, with a focus on top domestic feeder and international markets. SMTT’s new in-house Social Media Manager will spearhead fostering organic community engagement and crafting captivating content spotlighting Santa Monica's premier attractions, spanning outdoor dining, arts, culture, recreational activities and more. We also plan to expand our social media presence by exploring new and underutilized identified platforms and partnering with key travel industry influencers who align with the values of Santa Monica, to promote the destination to their followers.

SMTT distributes several e-newsletters targeting different audience segments to ensure the local business community, visitors, residents and travel and trade partners are aware of the latest news and happenings throughout Santa Monica. Newsletters and cadence are as follows:

Board of Directors Newsletter
• Audience: SMTT Board of Director Members
• Cadence: Continued communications on SMTT programs and services • Content: Strategic plan initiatives, sales and marketing program updates, updates from the Chair of the Board of Directors

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27 Community Newsletter
• Audience: Local Businesses, Hotel General Managers (GMs) and Sales, Marketing staff, guest serving employees, restaurants, retail, BIDs, SMTT Board, City Partners, SMTT Partner Agencies
• Cadence: Monthly
• Content: Santa Monica in the news; new businesses; SMTT updates and programs; and upcoming events
Consumer Newsletter
• Audience: Consumers, Santa Monica Residents, Santa Monica Visitors, those who opt in at santamonica.com
• Cadence: Monthly
• Content: News about hotels, cultural happenings, shopping, food & drink, and things to do and special offers
Sea the Good Newsletter – sent on behalf of Santa MoniCARES • Audience: Community Newsletter distribution list, Santa Monica Residents, other non-profits in the community, Santa Monica Visitors, those who opt in at SantaMoniCARES.org
• Cadence: Quarterly
• Content: newsletter highlighting inspiring and admirable news stories Travel and Trade Newsletter
• Audience: Travel Agents, Operators and Meeting Planners • Cadence: Quarterly
• Content: Hotel updates; new business openings; upcoming events, what’s new International Newsletters
• Audience: Markets with SMTT representation receive a newsletter catering to travel, trade, and consumers
• Current markets: Canada, United Kingdom/Ireland, France, Germany, and Australia/New Zealand
• Cadence: Monthly/Quarterly
• Content: Hotel updates; new businesses openings; upcoming events; what’s new; and things to do in Santa Monica
SMTT will continue to work with key, targeted publications and freelance journalists to develop timely articles and blog posts to ensure content on santamonica.com is attracting

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28 organic traffic; addressing visitor needs; and highlighting how the destination is on the cutting edge of travel, culinary, health and wellness, cultural experiences, shopping, and sustainability trends.

In 2025, SMTT will be bringing the creation of the Official Santa Monica Visitor Guide and Map in house including content creation, ad sales, photography, and design & layout.

SANTAMONICA.COM
Following the successful launch of a fully enhanced, mobile-optimized website in the fall of 2022, santamonica.com will undergo another iteration in 2024 with a reskin to align with the refreshed branding. Further enhancements to the website will be implemented to continually elevate the traveler experience. These upgrades will include the integration of a 24/7 AI-powered chatbot, content optimization to align with leading SEO keywords, enhancements to web performance, BookDirect updates, and the development of refreshed content through the creation of new landing pages and blog posts.

We remain committed to prioritizing an exceptional user experience on santamonica.com and serving as the premier beach destination for both travelers and trade seeking news and updates. Offering resources for travelers at every stage of their journey, the website educates visitors on the allure of Santa Monica while highlighting the region's myriad attractions. Additionally, the meeting planner section facilitates the coordination of events and conferences, fostering collaboration with Santa Monica hotels and venues. With its revamped design, the website enables dynamic content presentation on the homepage to spotlight local events and provides advertising avenues for businesses seeking exposure to an engaged audience interested building itineraries and inspiration for visiting Santa Monica, thereby generating local revenues.

The goals of santamonica.com remain consistent:

Consumer:
• Reintroduce Santa Monica as a “home base” destination to explore the broader region and differentiate it from Los Angeles and other SoCal destinations. • Stabilize occupancy and serve the local business community. • Highlight creating experiences and connections in Santa Monica. • Drive overnight visitation during shoulder seasons.
• Facilitate partnerships between Santa Monica businesses through both complementary and paid promotional opportunities, including free access to

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29 the Partner Portal, dedicated business listings pages, and complimentary promotion of specials, discounts, and distinctive offerings.

Trade:
• Attract events and meetings to Santa Monica hotels and venues for overnight experiences.
• Educate meeting planners on the available hotels, venues and destination differentiators that make it the ultimate meeting location. • Show off the outside-the-boardroom activities for attendees to enjoy. • Drive MICE leads and bookings by highlighting the destination's appeal for meetings, incentives, conferences, and events.

SANTA MONICA RESTAURANTS
To amplify awareness of our culinary scene, SMTT is partnering with Santa Monica restaurant owners, chefs, and hotels to share their personal stories, culinary inspirations, and advice to those looking to break into the food & beverage scene. This is to increase overall sales and experiences in our culinary businesses and elevate Santa Monica’s reputation as a world-renowned destination for culinary enthusiasts. We will work over the next 12-18 months to identify a partner to produce a Santa Monica themed cookbook.

MEDIA RELATIONS
SMTT will continue to raise awareness of Santa Monica as a pre-eminent travel destination that offers a quintessential Southern California beach experience through media relations. Efforts will focus on the story topics that resonate most with the publications, outlets and social media channels that reach our target consumer.

We will continue to share the innovative efforts our community is taking to be a leader in sustainability. Media and consumer interest in this topic has grown significantly and we’re fortunate that the City of Santa Monica has prioritized sustainability since the development of the Sustainable City Plan in 1994, and additional work on this front in the community continues to be noteworthy.

We will continue to urge local businesses to engage in programs like the Green Business Certification program and Sustainable Quality Awards to amplify the community’s efforts and showcase how visitors can travel and enjoy Santa Monica responsibly.

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30 SMTT is also focusing storytelling opportunities on our community as a highly desirable destination for culinary enthusiasts, as we showcase our four weekly farmers markets, diverse dining options, including 18 Michelin-recommended restaurants. SMTT will continue to identify opportunities for themed press visits, offering itineraries that showcase the breadth of our bounty. These will focus on the community’s culinary expertise, as well as the new experiential product in market, and will focus more on attendance at local events. This will help showcase how much is happening in our community that residents and visitors can enjoy. Health and wellness is an additional area of outreach to travel journalists, who continue to show interest in the abundance of opportunities including beach yoga; bike tours; beach volleyball; mindfulness classes; spa experiences; and healthy eating.

SMTT will engage journalists from the region and nation with a special focus on international as travel continues to rebound. We will seek fresh opportunities to host journalists from Australia/New Zealand, Europe, and North America. A new partnership in Asia or South America will foster engagement with top writers in both countries and facilitate projects in the region on an ad hoc basis.

SMTT will leverage opportunities to connect with journalists on media missions and international activations with other partners in the following markets:
• Australia/New Zealand
• Canada
• France
• Germany
• India
• Brazil
• Japan
• Mexico
• United Kingdom/Ireland
We will continue working with a media monitoring and distribution platform to increase domestic and global reach to journalists, bloggers and influencers and measure effectiveness of our public relations output.

SMTT will also support and work with the city in getting the word out about city service improvements, hotels and businesses that are undergoing renovations, remodeling’s and

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31 updates to showcase the incredible economic impact these projects will offer Santa Monica.

CRISIS COMMUNICATIONS
The crisis communications plan continues to be updated to reflect longstanding and emergent issues and ensure aligned messaging needs. Updates include the addition of heat and weather advisories, as well as continued amendments based off the lessons learned and best practices from the pandemic. We continue to create new media holding statements and refine existing ones to ensure we are ready to respond to crisis situations when appropriate.

Our team has also focused on relationships with the City of Santa Monica, Santa Monica Police, and Santa Monica Fire’s communication department’s public information officers and the communications teams in California destination marketing organizations. This is to ensure our relationships continue to grow and emergency contact information is shared, so we can swiftly respond to crises and support each other’s efforts. We continue to share information in conjunction with the City of Santa Monica to provide official messages to our business community, visitors, and Santa Monica residents on santamonica.com; social media channels; community newsletters; and news updates.

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32 Media Relations Programs / Additions
• Focus on first 4 strategies of Experience Management Plan (EMP). • Destination brand refresh communication.
• Expand efforts into Australia/New Zealand.
• Identify and partner with local businesses to assist developing and amplifying relevant content and expand social footprint to include Pinterest, TikTok and other new platforms.
• Update existing Crisis Communications Plan with learnings from post-pandemic efforts.
• Work with Marketing to create promotional videos for key pillars such as culinary; health and wellness; outdoor activities; family travel; and Santa MoniCARES.

These videos will provide us with exciting content to house on our website and share across social media and in newsletters, while providing content to share with news media to attract coverage.
2024-2025 Programs / Additions
• Assess progress on Experience Management Plan (EMP) and potentially expand to strategies beyond the top four.
• Relaunch the website with brand refresh creative.
• Create dedicated landing pages with language translation option for each international market where SMTT has representation.
• Begin planning, securing, and spreading awareness of brand partnerships for upcoming major events including:
a) 2024/2025 Cirque Du Soleil
b) 2026 NBA All-Star Game
c) 2026 FIFA World Cup
d) 2026 Route 66 Centennial
e) Super Bowl LXI 2027
f) LA28 Olympics
• Expand media efforts into identified key international markets. • Provide extensive media training for greater Communications team and SMTT leadership.

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33 LANE 3: CHAMPION THE VALUE OF TOURISM
Objectives:
• Achieve positive tourism economic outcomes as indicated in the Tourism Economic Impact Report.
• Reset baseline of positive resident sentiment toward tourism. • Achieve a minimum of $50K 2024 in charitable, donated, and in-kind value through the Santa MoniCARES foundation.
• Increase and maintain engagement levels with other Santa Monica boards and organizations.

Key Initiatives/Strategies:
• Launch “I Am Santa Monica” program locally and with international representatives for SMTT.
• Maintain an influential presence on Santa Monica boards and key initiatives aimed at advancing tourism.
• Strengthen and nurture positive relationships with Santa Monica City Council and city leadership.
• Support U.S. Travel, Visit California, CalTravel serving as board/committee members with regional and local travel-focused initiatives. • Increase fundraising capabilities and expand Santa MoniCARES program to assist more community nonprofits.
• Raise awareness of the impact of tourism within our community, region, state, and country with increased opportunities for staff and board participation. • Identify and employ new opportunities for board engagement and development.

BOARD ENGAGEMENT
SMTT Board of Directors are active participants in the implementation and execution of the Santa Monica Experience Management Plan (EMP). Board members are represented in the Governance Committee and each of the four second-year strategic initiatives committees. The SMTT Board, along with various city and community stakeholders, residents and local businesses will work as partners over the next 10 years toward a shared vision and common goals. This will result in enhanced quality of life for all Santa Monica residents, a remarkable visitor experience that stands the test of time and a stronger, more resilient local economy.

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34 SMTT will continue to identify opportunities for members of its Board of Directors to address any misconceptions about the industry and to champion the value of tourism in speaking engagements in front of community stakeholder groups, such as neighborhood associations and service organizations.

SMTT will also focus on continued board development opportunities, including participation at industry conferences; familiarization tours; stakeholder meetings; cultural exchanges; community events; and media interviews.

SMTT leadership will continue to work in collaboration with the SMTT Board of Directors and TMD Committee representatives to ensure engagement at regularly scheduled meetings with agendas focused on raising awareness of important projects and driving discussion and feedback. SMTT will continue to distribute electronic board newsletters in months when there is not a regularly scheduled board meeting.

COMMUNITY & CIVIC RELATIONS
SMTT will continue to be a vocal champion on behalf of the tourism industry when required, while demonstrating the importance and positive economic impacts of tourism to the community, utilizing the following channels as examples:
• Annual Tourism Summit
• National Travel and Tourism Week
• Community event presence and collateral distribution
• Buy Local’s Most Loved contest
• Downtown Santa Monica holiday events/ICE Santa Monica • Chamber of Commerce events
• Main Street Holiday event
• Martin Luther King event
• National Night Out
• OPA 4th of July Parade
• Police Activities League events
• Santa Monica Pier 360
• State of the City
• Sustainable Quality Awards
• I Wish I Had an Extra Bedroom Program, annually offering hotel discounts to residents over the holiday season
• Pitching editors at local publications including Santa Monica Daily Press and more.

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35 • Speaking opportunities at City Council; Kiwanis Club; Rotary Club; Chamber of Commerce and Santa Monica High School Career Day
• Reinstating the “Tourism Talks” column in Santa Monica Daily Press • Supporting local events and organizations

SANTA MONICARES
The Santa MoniCARES foundation launched in 2017 as a coalition of representatives from Santa Monica Travel & Tourism and community partners. The mission of Santa MoniCARES is to harness the hospitable nature and generosity of Santa Monica’s tourism industry and provide support to our local nonprofit agencies. Santa MoniCARES will focus on community engagement through a series of events and activities that further promote our efforts. The foundation plans on expanding LGBTQ+ program support by once again sponsoring the annual Santa Monica High School Gay Student Associations Annual Queer Prom and will host a fundraising mixer to raise funds for local LGBTQ+ associations. The foundation will also plan targeted fundraising events to benefit local nonprofits through its network of tourism-serving businesses such as Volley-WEEN.

An expanded website will make it easier for nonprofit agencies and residents to partner with Santa MoniCARES through procured fundraising events, volunteerism, and donation opportunities. An additional feature on the Santa MoniCARES website will allow the public to choose where their donation dollars are spent. One hundred percent of a donation can be directed to the type of nonprofit donors choose to support, such as education; environmental protection; hunger; the arts; elderly assistance; workforce development; diversity; equity and inclusion programs; and cultural programs.

Santa MoniCARES will continue to be a leader in donation drives and collection points for our local nonprofits in need to collect gently used clothing; food; blankets; and toiletries. Internally, SMTT has included Santa MoniCARES’ mission and values as part of our SMTT onboarding process for new employees. Santa MoniCARES is a key component to SMTT’s identity within the community to show that tourism cares about its residents, as well as its visitors. Employee volunteerism events and activities are regularly planned throughout the year. We require Santa MoniCARES components at every industry event or program SMTT produces.
2024-2025 Programs / Additions
• Volleyball tournament fundraiser – donating funds raised to local nonprofits

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36 • Launching an event celebrating our local teachers, fire fighters and police officers

TOURISM INDUSTRY LEADERSHIP
SMTT will continue to be a proactive member of the tourism industry to share best practices by leveraging memberships with the following industry associations and taking opportunities to serve on leadership committees, boards of directors and attending or speaking at their annual conferences:
• Brand USA
• California Travel Association
• Destinations International
• eTourism Summit
• Meeting Professionals International
• Certified Meetings Professional (CMP) status
• Society for Incentive Travel Excellence
• U.S. Travel Association’s Board of Directors
• Visit California’s various leadership and committee roles • Southern California Association Governments - GLUE Council - Tourism Representative
• Santa Monica Bay Restoration Commission - Tourism Representative • Visit California regional strategic tourism plans member with city manager David White.

SMTT will further leverage the strength of Visit California by aligning staff to Visit California-led committees relevant to their positions:
• DMO CEO Council- President/CEO
• International - Director of Global Business Development • Marketing - Senior Director of Marketing
• Public Relations/Crisis - Senior Director of Communications

I AM SANTA MONICA
“I Am Santa Monica" is an interactive business workshop designed to educate Santa Monica residents, businesses, and employees about Santa Monica’s offerings. The class is designed specifically to inform and educate tourism-serving employees of businesses, residents and those interested in a potential employment in the tourism industry in Santa

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37 Monica about the destination, with a focus on customer service and hospitality training.

This free, two-hour, interactive learning workshop includes a bus tour of Santa Monica and ends with a classroom session reviewing detailed take-home materials. Trained individuals become “Official Santa Monica Information Ambassadors,” and are equipped with a database of facts, figures and “did you know” anecdotes about Santa Monica for use in customer interactions. Each “Official Santa Monica Information Ambassador” receives a certificate and package of information. The program is now being expanded with a digital version to offer the valuable classroom resources to students who are unable to participate at in-person sessions. The class can now be curated to a business’ individual needs and private classes are also available. A database is being built to communicate with attendees on future happenings in the destination. “I AM YOUR DESTINATION” PROGRAM
“I Am Your Destination” is the framework of the “I Am Santa Monica” program that we solicit to other cities who want to offer their own class, designed to be affordable and specifically for any tourism destination. The program sells for $15,000 and SMTT took a break during the pandemic but is ready to proactively target domestic destinations for potential purchase and utilizing attendance at industry trade shows and forums to attract destination marketing organizations to the program. As part of our digital “I Am Santa Monica” creation, a templated version is available for an additional $5,000. 2023-2024 Programs / Additions
• Expand content and merge to virtual addition of the “I Am Santa Monica” program to destination marketing organizations in domestic markets. • SMTT leadership to join at least one new local or state industry board. • Launch expanded Santa MoniCARES website with more robust content and donation opportunities.
• Identify and employ new opportunities for board engagement and development. • Pursue local speaking engagements and connections for our strategic plan development.
2024-2025 Programs / Additions
• Develop additional charitable opportunities to increase funds for Santa MoniCARES.

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38 • Develop new community relations program for spring and summer seasons that bring attention to the positive impact of tourism.
• Develop long-term strategic plan for Santa MoniCARES.

LANE 4: STRENGTHEN STRATEGIC PARTNERSHIPS
Objectives:
• Generate minimum of $300K (2024/25) in-kind or fair share value. • Secure a minimum of $25K in outside sponsorship dollars to offset program costs. • Achieve a minimum of $50K (2024/25) in charitable, donated, and in-kind value through the Santa MoniCARES foundation.
• Participate in four Experience Management Plan (EMP) strategic actions.

Key Initiatives/Strategies:
• Collaborate with and support the City of Santa Monica’s Community Partnership Manager.
• Establish an expanded Partnership/Sponsorship Program for SMTT beyond travel partners.
• Serve as the backbone organization for the Santa Monica Experience Management Plan (EMP).
• Engage Santa Monica partners to increase fair share participation fees by 25%. • Grow in-kind value by 25%.

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39 STRATEGIC PARTNERSHIPS
Providing cost-effective and valuable programs for our partners is of critical importance.

Our tourism business partners look to SMTT to best represent the brand of Santa Monica and that’s why last year, Santa Monica Travel & Tourism generated over $300,000 of inkind support and $10,000 in fair share participation fees from tourism-serving businesses to further support SMTT programs. These valuable contributions do not come automatically. They are derived from ongoing dialogue and education with our tourism business partners and through demonstrating a high standard of excellence, engagement, and ROI with our programs.

To ensure our partners are aware of all the ways they can work with SMTT, our organization will continue to utilize the following channels:

Quarterly General Managers meetings
• Quarterly Marketing Committee and Director of Sales meetings • TMD Committee meetings
• Roundtable trainings and discussions
• Partner Portal
• Santamonica.com
• BID Board Meetings
• Hospitality networking events showcasing new venues and opportunities to work with SMTT
• New business intro program
• Monthly community newsletter
• Annual Tourism Summit
SMTT will continue to solicit sponsorships and in-kind for its Annual Tourism Summit and other signature events to offset program costs.
2023-2024 Programs / Additions
• Generate a minimum of $25,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit and Volley-WEEN. • Re-establish the marketing committee with city partners, stakeholders, and local businesses.

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40 2024-2025 Programs / Additions
• Generate a minimum of $35,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit, Volley-WEEN and work towards a large fundraising event.

LANE 5: ENSURE OPERATIONAL EXCELLENCE
Objectives:
• Ensure accountability as measured by our audit reporting, financials, and plan management.
• Achieve targeted retention rates of less than 12% turnover. • Deliver 75% success rate based on targeted staff participation in community events.
• Evaluate and reconcile ROI metrics for all target markets Key Initiatives/Strategies:
• Achieve successful funding renewals.
• Achieve five years of audited financials with no more than three reportable conditions.
• Review and set target operating costs per employee.
• Conduct an annual team building experience, including monthly wellness activities.
• Solidify SMTT’s resource needs to ensure consistent, high-quality delivery. • Initialize improved standard for training procedures. • Develop and implement an internal technology plan, including shared file protocols.
• Conduct annual financial and operations audit.

OPERATIONAL EXCELLENCE
SMTT’s leadership team created a four-quarter performance review process that focuses on the forward approach to employee development and retention. At the employee's annual hire date, a one-page self-evaluation is completed for the previous year. Upon completion, employees will meet quarterly with their supervisors to discuss individual performance and professional development goals and to address or adjust goals as needed.

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41 Baseline qualifications by title have been created to help drive employee success and offer further opportunities for advancement within SMTT. A salary and benefit survey will be completed in 2024 and 2025 with industry researchers to ensure we are aligned with the industry and the region in our offerings. In addition, we continue with our quarterly team building events, as they have been a success.

Retention will continue to be at the forefront of SMTT by expanding our recruitment efforts along with a 21+ point onboarding process that ensures new staff comprehend the important values and policies that make us unique. SMTT works with a local insurance broker to offer a comprehensive and cost affordable benefits package.

We continue to be a leader in equipment, technology, and sustainability. When decommissioned, SMTT laptops, iPads and cell phones are erased to Department of Defense standards, then donated to either the Police Activities League, if the students can utilize; nonprofit Laptop Elf Company, who recycles the equipment for underprivileged youth and teachers; or are recycled through one of the City of Santa Monica’s hazardous waste programs.

EMERGENCY PREPAREDNESS
We will review our emergency preparedness plan for 2024-2025 and update as needed.

We plan on certifying additional employees via the City of Santa Monica’s Community Emergency Response (CERT) and will provide all employees the opportunity to attend a class to obtain CPR certification. The EMP will help deliver a full city-wide crisis plan to work in tandem with each organization and the city’s current crisis plans.

SMTT will continue to ensure all frontline visitor staff receive de-escalation training in case of an emergent situation.

SMTT will continue to circulate information on the City’s new visitor emergency text alert system to our hotel general managers, so they can share the service with their guests in the event of a large-scale community concern or incident.

DESTINATION MARKETING ACCREDITATION PROGRAM (DMAP)
Santa Monica Travel & Tourism has long been proud of its participation in the Destination Marketing Accreditation Program (DMAP) through Destinations International. This globally recognized program serves as a visible industry distinction that defines quality

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42 and performance standards in destination marketing and management. The process includes submitting documentation of over 110 rigorous standards, including an annual operations plan; HR policies; technology plan; an updated crisis communications plan; a commitment to consumer research; adoption of the DMAP code of ethics; and many other standards. SMTT submitted an annual progress report in 2023 and was re-certified as an approved DMAP Destination.
2023-2024 Programs / Additions
• Allow all employees to obtain CPR certification.
• Complete industry salary benefit survey.
• Re-establish a crisis event telephone tree via one application. • Conduct an annual team building experience, including monthly wellness activities.
2024-2025 Programs / Additions
• Achieve pre-pandemic staffing levels across the organization. • Update user technology and systems.
• Develop and implement an internal technology plan, including shared file protocols.

IN CLOSING
Santa Monica Travel & Tourism thanks the City of Santa Monica for its ongoing support and partnership in ensuring that the tourism industry remains a valued contributor to a vibrant and thriving economy. While we’ve seen our fair share of challenges over the past several years and additional threats to travel demand loom on the horizon, our aligned strategies, along with the collaboration and support of the city, community, and business leadership, will reinforce our goals and vision and help us best serve our residents, visitors, and businesses for many years to come.

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Report
City Council Meeting: July 9, 2024
Agenda Item: 5.C
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of the Pier Corp Fiscal Year 2024-25 Budget and Work Plan 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. Approve the Santa Monica Pier Corporation Fiscal Year 2024-25 Budget and Work Plan; and

3. Authorize the City Manager to execute a fifth modification to Services Agreement No. 10101 between the City and the Santa Monica Pier Corporation.

Summary
The Santa Monica Pier is an iconic landmark drawing millions of visitors each year to enjoy one-of-a-kind experiences while strolling above the ocean waves. The City contracts with the Santa Monica Pier Corporation (SMPC) through a Services Agreement to manage certain programs and services at the Pier including marketing, production of community programming such as the highly popular Locals’ Night series, as well as coordination of filming and private event rentals and proctoring the daily street performer lotteries. The Council-appointed SMPC board is also charged with the development of policy guidelines pertaining to sponsorship, marketing, events and leasing, subject to Council approval.

The SMPC is required to prepare an annual budget and business work plan to set forth its goals and objectives for the ensuing fiscal year. In accordance with the Services Agreement, the SMPC is submitting its FY 2024-25 work plan and budget to Council for its

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review and approval. If approved, the SMPC’s Services Agreement will be extended to June 30, 2025.

Discussion
The SMPC FY 2024-25 Budget (Attachment A) and Work Plan (Attachment B) describe in detail the activities and programs SMPC will undertake in the upcoming fiscal year.

SMPC Budget
The SMPC’s main sources of income are event rentals, filming, corporate promotions and partnerships, followed by the City’s annual grant. SMPC’s FY 2024-25 Budget projects total revenues in the amount of $2,127,000 and estimated total expenditures in the amount of $2,123,000. This will result in a projected surplus of $4,000. The SMPC’s budget comparison from the previous year indicates that FY 2023-24 year-end budget was projected to close with a $33,000 deficit. However, SMPC year-end actuals for FY2023-24 project that the budget will end with a surplus of $42,000.

Revenues
Projected revenues include: City funding of $150,000; revenues of $1,735,000 from deck and carousel rentals, filming, corporate promotions and partnerships; $170,000 from donations and grants (including a one-time $50,000 grant from Cirque du Soleil); and $72,000 from licensing, guided tours, registration fees and food/beverage and merchandise sales. FY 2024-25 projects an 11% growth in revenue from the prior year’s budget.

Expenditures
Projected expenses include: $1,005,000 for personnel expenses comprised of salaries, benefits and related services; $451,000 for expenses related to facility charges (e.g. Pier Deck and Carousel rentals) including payments to the City; $550,000 for SMPC-produced Pier programming such as Pier 360, Locals' Night series, Wellness & Waves, Dia de Los Muertos, Save the Pier play, Samo PRIDE and an inaugural fundraising gala; $47,000 for marketing; $10,000 for merchandise; and $60,000 for contingencies.

SMPC Work Plan
The attached FY 2024-25 Work Plan describes SMPC’s accomplishments for the prior fiscal year and details the new and continuing activities SMPC plans to perform during the new fiscal year.

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FY 2024-25 efforts will focus on engaging with the community in new ways, while also continuing to provide and build upon existing programs and traditions. The new fiscal year will include the Pier Corporation’s first-ever fundraising gala, and the development of new free public programming including a Santa Monica Pier Birthday Celebration in partnership Street Food Cinema for a free movie screening, additional multi-cultural celebrations and holiday sandcastle sculpting. The Pier Corporation will continue to develop and sell merchandise including a new edition of the Santa Monica Pier history book and participate in committees related to large scale projects and events such as the upcoming Pier Bridge Reconstruction and the 2028 Olympics.

In addition, the Work Plan calls for the organization to develop a new Mission Statement, Vision Statement, Company Values, and a three year strategic plan that would identify the organization's goals and objectives for the future and may explore modifying the current governance for Council’s consideration, in an effort to provide the organization with more revenue, fiscal sustainability and oversight of certain operations currently overseen by the City. Once this visioning and strategic planning effort has been completed, staff will conduct a review and evaluation and will return to Council with an assessment.

On May 20, 2024, the SMPC Board approved the following Mission Statement:
“The Santa Monica Pier Corporation curates the pleasure pier experience for locals, visitors, and admirers.”
Extension of Service Agreement
The Service Agreement between the City and SMPC (Contract No. 10101 CCS) will expire on June 30, 2024. Staff seeks authorization to extend the Service Agreement term through June 30, 2025, to coincide with the 2024-25 Fiscal Year.

Commission Action
The SMPC Board of Directors approved the FY 2024-25 budget and Work Plan on April 29, 2024, and Mission Statement on May 20, 2024.

Environmental Review
The approval of the SMPC FY 2024-25 budget and work plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can

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be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The work plan provides activities and programs that would not result in a significant adverse physical impact on the environment, and therefore, is exempt from CEQA.

Past Council Actions
Meeting Date Description
6/13/2023
(Attachment C)
Approval of FY 2023-24 Budget and Work Plan and
extension of Services Agreement through 6/30/2024
6/14/2022
(Attachment D)
Approval of FY 2022-23 Budget and Work Plan and
extension of Services Agreement through 6/30/2023
6/22/2021
(Attachment E)
Approval of FY 2021-22 Budget and Work Plan
and extension of Services Agreement through 6/30/2022
7/14/2020
(Attachment F)
Approval of FY 2020-21 Budget and Work Plan and
extension of Services Agreement through 6/30/2021
7/14/2015
(Attachment G)
Council Authorization of five-year Services Agreement with SMPC. Contract No. 10101 (CCS)
Financial Impacts and Budget Actions
Staff seeks authority to extend the agreement term by one year. The available funding from the Pier Fund for the Services Agreement with the SMPC is included in the FY 2024-25 Adopted Budget in the Community Development Department. No additional financial impact or budget action is necessary. Future year funding is contingent on Council budget approval.

Annual Services Agreement Extension
Agreement FY 2024-25
Amount
Account Number Annual Agreement
Amount
10101 150,000 53700002.540150 $150,000

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

A. SMPC Budget 2024-25
B. SMPC FY2024-2025 Work Plan
C. 6/13/2023 Staff Report
D. 6/14/2022 Staff Report
E. 6/22/2021 Staff Report
F. 7/14/2020 Staff Report
G. 7/14/2015 Staff Report
H. SMPierCorpLevine2024
I. SMPierCorpOaks2024

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Proposed Projected Actuals Proposed
2023/2024 2023/2024 2024/2025
Income
City Funding $150,000 $150,000 $150,000
Facilities ‐ Event Deck Rental $675,000 $920,000 $775,000 Facilities ‐ Film Permits $200,000 $230,000 $250,000
Facilities ‐ Merry Go‐Round Rental $130,000 $86,000 $100,000 Facilities ‐ Corporate Promotions $250,000 $200,000 $250,000 Partnerships $360,000 $180,000 $360,000Food and Beverage Sales $30,000 $10,000 $10,000Licensing and New Revenue (Pier Sign License, Tour Revenue) $25,000 $13,000 $25,000 Registration Fees (Pier 360) $17,000 $15,000 $17,000
Merchandise Sales $15,000 $12,000 $20,000Donations and Grants (Cirque du Soleil grant, Fundraising Gala #1) $60,000 $35,000 $170,000 TOTAL INCOME $1,912,000 $1,851,000 $2,127,000
Expenses
Facilities ‐ City Refund ‐ Merry Go‐Round $60,000 $40,000 $45,000 Facilities ‐ City Refund ‐ Pier Deck $325,000 $360,000 $325,000 Facilities ‐ Event Staffing, Security & Supplies (Tours, Gala coordinator) $45,000 $50,000 $75,000 Facilities ‐ Offisite Storage (3 months for FY2024/25 @ $2k/month est)) $6,000 People ‐ Wages & Salaries $685,000 $630,000 $700,000
People ‐ Benefits (Health Ins, Payroll Tax, Wrkrs Comp, 403b) $190,000 $175,000 $170,000 People ‐Meetings, Office Supplies, Retreat, Training, Website Dev & Maint $40,000 $40,000 $80,000 People ‐ Services, Audit, Insurance, (Consultant) $65,000 $55,000 $55,000 Marketing Creative $12,000 $10,000 $12,000Marketing Promotions, Travel, Marketing Summit, SXSW $23,000 $20,000 $35,000 Pier Produced Programming (Pier 360, Locals' Night, Wellness & Waves, Dia de los Muertos, Holidays, "STP" Play, PRIDE, Fundraising Gala) $430,000 $360,000 $550,000 Merchandise $20,000 $39,000 $10,000Planning Contingency (<3%) $50,000 $30,000 $60,000 TOTAL EXPENSE $1,945,000 $1,809,000 $2,123,000NET INCOME ($33,000) $42,000 $4,000 Santa Monica Pier Corporation Budget 2024/2025

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Attachment: SMPC Budget 2024-25 (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work FY2024-2025 Work Plan
This document lays out a summary of the Santa Monica Pier Corporation’s work completed during Fiscal Year 2023-2024 as well as the organization’s strategic work plan for Fiscal Year 2024-2025, a year of exciting opportunities that will include enhancements to the Santa Monica Pier’s annual free public event programming, the introduction of new programming which will include a nod to a long-forgotten Santa Monica tradition as well as the debut of new prospective traditions, and the rebranding of the organization as it takes steps toward better utilizing its status as a 501(c)3 nonprofit.

The Pier is approximately the size of a 3-block city street, upon which are an amusement park, an aquarium, a trapeze school, 8 restaurants, 13 licensed vendor carts, 4 retail shops and a 102-year-old antique carousel that is housed within an official Nationally landmarked building. Fishing and street performance add to the daily scope of activities on the Pier, as well as frequent brand activations, art installations and free-and-open-to-thepublic programming. A spacious, pinpointable, outdoor venue, the Pier currently welcomes an estimated 11-12 million visitors throughout the past year.

The Santa Monica Pier experience has long been defined by activity, and the past year has seen an incredible blossom of activity. Whether by attending events, dining at favorite restaurants, enjoying the thrills of the amusement park, or even simply watching the sunset, visitors came to enjoy their preferred activity in droves. While the negative impacts of the 2020-2021 pandemic have significantly decreased and the Pier has re-emerged as a premier and very popular year-round outdoor venue, the Pier Corporation has recognized the need to better enhance and diversify its revenue sources in order to maintain sustainability throughout any possible future emergencies. This strategic work plan lays out the groundwork to achieve that sustainability.

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Packet Pg. 169 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) Map of Santa Monica Pier 202
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Packet Pg. 170 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) Santa Monica Pier Corporation Board of Directors
Board Chair Vice-Chair Secretary/Treasurer Christopher Foster Nicholas Rolston Jeffrey Jarow Daniel Hall Misti Kerns Randi Parent Carter Rubin Santa Monica Pier Corporation Staff Members
Executive Director: Jim Harris
Operations Director: Aurora Piña
Activations Manager: Anne Railsback
Business Development Manager: Dana Moorehead
Marketing & Brand Manager: Kayla Nieto
Events & Filming Specialist: Leo Erickson
Facilities & Weekend Specialist: Corey Hart

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Packet Pg. 171 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) Accomplishments of the Recent Fiscal Year 2023-2024
The new fiscal year once again began with the emotional high provided by the Pier Corporation’s marquee “kickoff to summer” event, the Pier 360 Beach Festival, which takes place annually on the last weekend of June. The event continues to be very well attended and is always greatly anticipated by the Pier community and stakeholders. There was a notable downside to this year’s event, though, in that sponsorship funding fell well short of expectations. While the Pier Corporation enjoyed an overall successful year financially in the lead-up to the Pier 360 Beach Festival, much of the accrued revenue earned throughout FY2022-2023 needed to be applied toward subsidizing this event instead of being applied to the organization’s overall operations. The significant insufficiency of sponsorship funding was not unique to the Pier Corporation nor the Pier 360 Beach Festival but was instead part of a broader trend felt by many similar organizations and events throughout the fiscal year. Regardless, the attendance and overall experience of the Pier 360 Beach Festival proved once again that the Santa Monica Pier is the premier location to kickoff and celebrate summer.

The great experiential highs coupled with less-than-expected sponsorship funding for Pier 360 proved prophetic for FY2023-24, prompting the organization to further re-examine its overall funding model. While the organization enjoyed a successful year regarding income from event rentals, promotional activations, and filming & commercial photography, the need to explore and secure funding from other revenue sources became prominent. As a result, the Pier Corporation began implementing changes that will help it to become better sustainable while also exploring and enhancing the valuable ways that it can positively impact the Santa Monica Pier community – local, national and international.

It is worth noting that event rental revenue far exceeded projections for the recent fiscal year, as did revenue from commercial filming/photography (despite the lengthy labor issues within the film industry). These sources helped to provide the necessary funds for the Pier Corporation to assure that the community could still enjoy free public programs, despite the aforementioned insufficiency in sponsorship support.

Those programs which the community has come to expect from the Pier Corporation include:
• Locals’ Nights –the past two years this monthly “By Santa Monicans, for Santa Monicans” celebration series has, in a subtle but very important way, supplanted what the Twilight Dance Series meant to the community in its earlier years. The series, which occurs on the third Thursdays of each month from September through May, has come to represent the way for Santa Monica’s neighborhoods to come together and meet at the Pier to enjoy what the entire community has to offer and has increased in both popularity and relevance with each occurrence. • Dia de los Muertos Celebration – This annual event has found not only a home, but roots within Santa Monica’s official National Landmark, the Looff Hippodrome (aka

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Packet Pg. 172 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) the Merry Go-Round Building or the Carousel Building). Honoring our ancestors and respecting cultural traditions, this event is arguably the most beautiful experience to take place on the Pier, featuring extraordinary altars inside the Hippodrome, a traditional Chumash blessing, and a parade led by Aztec dancers from the west end of the Pier to the Hippodrome, accompanied by a full day and evening of entertainment featuring Ballet Folklorico and Mariachi performances. • Wellness & Waves Yoga Sessions – A six-week Saturday morning yoga series that encourages one of the best possible utilizations of the Pier – fitness/well-being. • SAMO Pride – This City-wide event continues to progress while truly finding it’s best place within the Pride world as Santa Monica as a whole strives to become known for its family-friendly focus for Pride. For this year’s SAMO Pride, the Pier Corporation partnered with The Crow comedy club to produce “Drag Queen Story Time and Face-Painting at the Pier” – a one-day event that celebrates LGBTQIA+ at the Pier within one of the most welcoming environments possible: the Looff Hippodrome, alongside the century-old horses that have always best represented the atmosphere of the Pier.
• “Save the Pier!” Play – While this important retelling of one of the Pier’s most significant moments did not happen in FY2023-2024 due to funding and casting issues, it still remains prominent within the Pier Corporation’s programming schedule and plans are in place for it to continue in Autumn 2024. • Seasonal Campaigns – Winter holidays, Valentine’s Day (“Month of Love”), Black History Month and other seasonal campaigns rounded out the calendar of Pier Corporation celebrations through online activities.

The Santa Monica Pier Corporation prides itself on being a curator and caretaker of the comprehensive Pier visitor experience, and during the FY2023-2024 the organization explored new ways to enhance that experience. In August 2023 the organization launched “A Walk Through Pier History” – a new walking historical tour experience led by a live tour guide yet conducted through noise-cancelling headphones (very important, considering the large amount of activities and conversation that regularly takes place on the Pier) and also provides tour participants with a keepsake electronic file of images which they may refer to both during and after their tour experience. A very special feature within the tour is a pre-recorded welcome and introduction from Hollywood icon Robert Redford, who has lifetime-deep roots with Santa Monica and the Pier. Also introduced during FY2023-2024 was a new and expanded second edition of the Pier’s official history book, Santa Monica Pier: America’s Last Great Pleasure Pier, which will add to income opportunities for the Pier Corporation as well as enhance marketing and ensure the organization’s status as the official keeper of the Santa Monica Pier’s century-plus story.

Looking forward toward the next few years, the Pier Corporation recognized and began proactively planning for best methods toward addressing the anticipated significant

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Packet Pg. 173 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) impacts presented by upcoming projects and events including the Pier Bridge Replacement Project and world-celebrated events held nearby including the 2026 FIFA World Cup and the 2028 Summer Olympics (as well as recent additions of the 2027 National Football League Super Bowl and Cirque du Soleil). In recognition of these prospectively dramatic impactful events, the Pier Corporation Board completed a Board Retreat and Workshop specifically to address such anticipated impactful events as well as to brainstorm toward how the organization should best move forward toward its own re-imagination to become and remain fiscally sustainable. Results of this planning effort included the creation of the Santa Monica Pier Corporation Pier Bridge Replacement Task Force - an ad hoc committee formulated to proactively work with City Staff, the Pier’s business community, and all other Pier stakeholders toward planning and achieving smooth and regular Pier operations in preparation of and through the duration of the Pier Bridge Replacement Project – and a draft 3-Year Strategic Plan based upon a newly developed Mission Statement, Vision Statement and Company Values as well as a vision plan designed specifically to address the aforementioned projects and events.

In summary, the Santa Monica Pier Corporation has continued to learn and adapt to the challenging financial issues of current times while simultaneously taking the necessary steps forward to better serve the overall Santa Monica Pier community – local, regional, national, and international – to provide the best visitor experience possible.

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Packet Pg. 174 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) The Year Ahead: Fiscal Year 2024-2025
The new fiscal year will demonstrate a multi-faceted period of growth for the Santa Monica Pier Corporation in order to best address its fiscal sustainability, increase its overall relevance and revenue opportunities, and, most importantly, to provide the greatest array of events and visitor experiences possible.

In FY2024-2025 the Pier Corporation will engage with the community in new ways, while also continuing to provide and build upon the programs and experiences that have made the Santa Monica Pier such a beloved venue, admired near and far. The new year will include the Pier Corporation’s first-ever fundraising gala, the development of new free public programming and Pier visitor experience enhancements, continued preparation for the quicky evolving world at and around the Pier, and engagement with the City of Santa Monica toward expanding the role of the Santa Monica Pier Corporation in order to even further increase its benefit the Pier community.

THE FIRST-EVER SANTA MONICA PIER CORPORATION FUNDRAISING GALA Since its inception in 1983 the Santa Monica Pier Corporation has held the status of being a 501(c)3 nonprofit organization, yet throughout its history it has not fully exercised that nonprofit status. Changes in funding opportunities in recent years – including a drastic cut to City grant funding post-pandemic and recent struggles with corporate sponsorship for events - have made the need to best utilize that nonprofit status a must for the sustainability of the organization. In hindsight, this focus is overdue. The Pier Corporation’s decades’ long mission toward the preservation and enhancement of the pleasure pier experience has always held the organization as being of great benefit to the community, and it is now time to engage the community toward investing in what the Pier Corporation has and always will provide. In November 2023 the Pier Corporation participated in its first-ever “Giving Tuesday” campaign, the results of which confirmed that the Pier’s public is certainly willing to donate toward the organization’s work toward preserving and enhancing the Pier visitor experience.

In the upcoming fiscal year, the Pier Corporation will host its first-ever fundraising gala event inside the National Landmark Looff Hippodrome, complete with a live auction, a silent auction and a raffle. Already the Pier Corporation has received valuable donations for the fundraising gala, including original 1970s prints by artist Tom Brittain and photographs by contemporary photographers, and will contribute items from within the organization’s own archives.

DEVELOPMENT OF NEW FREE PUBLIC PROGRAMMING
The Pier Corporation’s calendar of free public programs has long been held as its most valuable contribution to the Pier visitor experience, and the coming year will see that calendar expanded upon both within existing programs and with the introduction of new programs.

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Packet Pg. 175 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) Pier 360 Beach Festival – The Pier’s official “kickoff to summer” will continue to bring amazing beach and ocean sports activities including paddleboard races, swim races, beach volleyball tournaments, a skate park and roller skating alongside live music, Polynesian dancing, and a traditional Chumash blessing. In an effort to expand upon the impact of the event, the Pier Corporation will work with Malibu Pier on a “pier to pier” paddleboard race as well as explore other partnership opportunities in order to further engage the Pier’s neighbors to the north and expand upon the event’s overall exposure and profile.

Locals’ Night – One of the best discoveries made from the event programming of Locals’ Nights has been that there is no lack of talent and activities from within the Santa Monica community that can fit within the framework of Locals’ Night. Another great discovery has been that, even in the winter months there are unique and special ways to engage the community within each of the venues that the Pier has to offer. The Pier Corporation will continue to explore and program accordingly.

Wellness & Waves Expansion– The success of the Pier Corporation’s multi-week Saturday morning ROGA (Run + Yoga) program in pre-pandemic years and of the Wellness & Waves yoga program in post-pandemic years has long indicated the opportunity for more free weekend fitness programs and, in the upcoming fiscal year, the Pier Corporation will begin to expand such programs under the “Wellness & Waves” umbrella from its current format of two 6-8 week sessions to at least four sessions, with an eye toward a long-term ultimate goal of year-round Saturday morning fitness.

Santa Monica Pier Birthday Celebration – In celebration of the Pier’s birthday in early September, the Pier Corporation will partner with Street Food Cinema for a free movie screening (movie title TBD), an event that will call attention to the history and longtime significance of the Pier. Get ready to sing “Happy Birthday, dear Pier!”.

Multi-Cultural Celebrations – Expanding upon the success in recent years of the annual Dia de los Muertos celebration and having been approached by regional organizations wishing to bring other specific cultural celebrations such as Lunar New Year to the Pier, the Pier Corporation will introduce and produce at least one new such event in the upcoming year.

Holiday Sandcastles – A few decades ago Santa Monica enjoyed a holiday tradition within the Santa Monica Place mall that was very site-specific to Santa Monica as a beach town – the annual holiday sand sculpture. The Pier Corporation will reincarnate this beloved and not-yet-forgotten tradition with an extraordinary sculpture adjacent to the Looff Hippodrome, along with a full schedule of holidaythemed events.

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Packet Pg. 176 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) ADDING NEW PIER VISITOR EXPERIENCE ENHANCEMENTS & SPECIALIZED

MERCHANDISE
In August 2023 the Pier Corporation launched the new historical walking tour program, “A Walk Through Pier History”. This new program differs from previously-offered free tour programs in that it is a paid experience that features noise-cancelling headphones, keepsake images, and a special celebrity-recorded welcome message. The program has been very well-received and is growing in popularity. The program also has the ability to grow and change with technology, and the Pier Corporation is already exploring the possibility of enhancing the tour through use of Augmented Reality.

The Pier Corporation will also begin offering periodic (likely quarterly) presentations about the history of the Santa Monia Pier and capitalizing on the release of the new secondedition of the Pier’s history book. As with the walking tour, there is potential for utilizing new technology within this presentation program.

In addition to the new history book and building upon the recent sales success of new miniature neon “Santa Monica Yacht Harbor” signs, the Pier Corporation will continue to develop and sell merchandise that is very specific to the uniqueness of the Pier, with upcoming new items such as hand-made miniature replica paddleboards (representations of the 2 storied paddleboard currently on display in the Hippodrome), retro T-shirts representing gone-but-not-forgotten Pier businesses, and genuine original posters and apparel from the long-revered Twilight concerts. These items focus upon very specific audiences rather than mass appeal, with the very definitive intent of addressing the emotional and romantic attachment of the Pier audience.

CONTINUED PREPARATIONS FOR UPCOMING MAJOR CITY PROJECTS & EVENTS The potential impacts of large-scale projects and events such as the Pier Bridge Replacement Project, Cirque du Soleil, and 2028 Summer Olympics remain foremost in the minds of the Pier Corporation. The Pier Corporation has already created a Pier Bridge Replacement Task Force focused upon preparations and communications in order to achieve smooth and regular Pier operations prior to and for the duration of the project, slated to take place from Spring 2025 into early 2028.

Early in 2024, the Pier Corporation Board of Directors created an ad hoc committee specific to the return of Cirque du Soleil Planning Committee specifically tasked to assure that the specific requests of the Pier Corporation and the Santa Monica Pier Lessees Association were fully and properly addressed within the contract between Cirque du Soleil and the City of Santa Monica, as directed by Santa Monica City Council; to review and ensure the traffic management plans for the duration of Cirque’s presence in Beach Lot 1 North; and to work with event producers, Pier merchants, and City Staff to assure that all agreed-upon conditions are met and that the Pier’s overall operations proceed as normal.

Pier Corporation staff is also currently engaged in several of the City of Santa Monica’s CELEBRATE28 LA28 Planning Committees.

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Packet Pg. 177 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) As other impactful events approach, including the 2028 Olympics, the Pier Corporation will closely monitor developments and determine the best steps forward for the overall benefit of the Pier community, maintaining the Pier’s status as not only a premier destination, but also as a world-class event venue.

WORKING WITH THE CITY TO EXPAND ROLE, OPPORTUNITIES, AND OVERALL

BENEFIT
Prior to the pandemic the City of Santa Monica and the Santa Monica Pier Corporation began conceptualizing a mutually beneficial partnership plan in which the Pier Corporation would assume marketing and management of events on the beach areas immediately north and south of the Pier that was referred to as the “Pier/Beach Zone”. The trying times of the pandemic ceased that conceptualizing for the time being.

The Pier Corporation recognizes that an expansion of duties to include management of a “Pier/Beach Zone” will require changes to the organization’s current Services Agreement with the City and will reach out to re-engage conversations toward this as it has significant potential of being mutually beneficial for both parties.

Already there has been a lot of interest in the beach area immediately south of the Pier as a location for special events. Included in these are larger-scale professional beach volleyball events and some unique arts-focused events. There are currently some restrictions within the Santa Monica City Ordinance that present restrictions involving signage and privatization of the beach (long-term or short-term), both of which the Pier Corporation is eager to work with the City toward amending in order to increase opportunities for special experiences and activities in the Pier and beach area.

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Packet Pg. 178 Attachment: SMPC FY2024-2025 Work Plan (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan)

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Packet Pg. 179 Attachment: SMPierCorpLevine2024 (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan)

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Packet Pg. 180 Attachment: SMPierCorpLevine2024 (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan)

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Packet Pg. 181 Attachment: SMPierCorpOaks2024 (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan)

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Packet Pg. 182 Attachment: SMPierCorpOaks2024 (6369 : Approval of Pier Corp Fiscal Year 2024-25 Budget and Work Plan) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.D
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Contracts for Virginia Avenue Park and Marine Park Basketball Courts Recommended Action
Staff recommends that the City Council:

1. Award Bids #SP2706 and #SP2707 to Pacific Tennis Courts, Inc. for design and construction services for the Marine Park Basketball Court Reconstruction and Virginia Avenue Park Basketball Court Reconstruction Projects, respectively;

2. Authorize the City Manager to negotiate and execute contracts with Pacific Tennis Courts, Inc. in an amount not to exceed $345,000 (including a 15% contingency) for Marine Park (SP2706) and $345,000 (including a 15% contingency) for Virginia Avenue Park (SP2707);

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

4. Adopt a finding of categorical exemptions pursuant to Sections 15301 and 15302 of the California Environmental Quality Act (CEQA) Guidelines.

Summary
Santa Monica’s parks and recreation system includes aging amenities that require regular reinvestment and repair to maintain safe and accessible open spaces. The Marine Park Basketball Court Reconstruction and Virginia Avenue Park (VAP) Basketball Court Reconstruction Projects would remove approximately 13,200 SF and 12,800 SF of existing asphalt basketball courts, respectively, and replace the playing surface with new post-tension concrete courts of the same size and stripe markings as existing. Given that the existing courts are at the end of their lifespan and continuously form new cracks, reconstruction would be more economical than repeated repairs. Staff recommends awarding two contracts to Pacific Tennis

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Courts, Inc. for the design and construction of new basketball courts at Marine Park and VAP in an amount not to exceed $345,000 (including a15% contingency) for each contract.

Design for both projects are anticipated to begin fall 2024. Construction of the VAP basketball courts are anticipated to begin in winter 2024 and be completed by spring 2025. Marine Park basketball courts will follow with construction anticipated to begin in spring 2025 and be completed by summer 2025.

The Marine Park Basketball Court Reconstruction Project is funded with Parks & Recreation Special Revenue Funds. The VAP Basketball Court Reconstruction Project is funded with Community Development Block Grant (CDBG) Funds.

Discussion
The Marine Park Basketball Court Reconstruction and VAP Basketball Court Reconstruction Projects would provide capital improvements to Santa Monica’s existing parks and recreation system to maintain the system’s continued functionality.

Marine Park Basketball Court Reconstruction Project
Marine Park is a 7.0-acre park located at 1406 Marine Street within the Sunset Park Neighborhood. The park features two baseball fields, one soccer field, two basketball courts, one handball court, three tennis courts, a birthday pavilion, picnic tables and barbeques, children’s playground, off-street parking, and one restroom building.

Built before 1986, the basketball courts located at Marine Park are the oldest courts in the City and require complete reconstruction to address subgrade issues that are causing cracks (cracks have been patched and repaired in the past yet continue to reappear frequently). If this project is not completed, the basketball courts may need to be fenced off and closed for the foreseeable future. (See Figure 1 below for project location and context.)

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Figure 1: Marine Park – Project Location
The Marine Park Basketball Court Reconstruction Project is funded with Parks & Recreation Special Revenue Funds. Staff anticipates five months for the design phase with construction completion by summer 2025.

VAP Basketball Court Reconstruction Project
Virginia Avenue Park (VAP) is a 9.5-acre park located at 2200 Virginia Avenue within the Pico Neighborhood. The park features a variety of community facilities and amenities, including two basketball courts, two playgrounds, a splash pad, picnic areas, Thelma Terry Building, Teen Center, Police Activities League (PAL) Fitness Center, and the Pico Branch Library.

Along with the Marine Park basketball courts, the VAP basketball courts are also in increasing disrepair and require complete reconstruction. If this project is not completed, the basketball courts may need to be fenced off and closed for the foreseeable future. (See Figure 2 below for project location and context.)

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Figure 2: VAP – Project Location
The VAP Basketball Court Reconstruction Project is funded with Community Development Block Grant (CDBG) Funds. Staff anticipates three months for the design phase with construction completion by spring 2025.

Vendor Selection – Marine Park
The City received a total of four bids for the Marine Park Basketball Court Reconstruction Project; however, G2K Construction’s bid did not meet the basic requirements of the RFB, was considered nonresponsive, and rejected without evaluation. A panel composed of Architecture Services and Community Recreation staff evaluated the remaining three bids and recommend Pacific Tennis Courts, Inc. as the best and lowest bidder.

Bidder Recommendation
Best Bidder Pacific Tennis Courts, Inc.

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Evaluation Criteria Price, experience, and technical competence Municipal Code SMMC 2.24.180
Submittals Received
Pacific Tennis
Courts, Inc.
$299,885.00 Ramsa Construction, Inc. $594,000.00
Hellas Construction $624,213.00
Bid Data
Date
Posted
Posted On Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date
Publicly
Opened
1/22/2024 City's Online
Bidding Site
Santa Monica Daily
Press
55 3/14/2024
Best Bidder Justification - Marine Park
Construction of the project requires specialized equipment, contractor licensing, technical expertise, and human capital that cannot be provided by in-house staff; therefore, general contracting services, with specialty in basketball court construction, would be utilized. Staff recommends Pacific Tennis Courts, Inc., the lowest bidder, as the best bidder based on bid price, experience, and technical competence. The recommended bidder has demonstrated the ability to perform and complete quality projects of similar scope for several municipalities and agencies in California, including the City of Westlake Village, City of Fountain Valley, City of Coronado, City of Mission Viejo, and City of Avalon. Architecture Services staff conducted outreach to the City of Westlake Village, and they recommended Pacific Tennis Courts, Inc. for its reliability and expertise.

Vendor Selection – VAP
The City received a total of five bids for the VAP Basketball Court Reconstruction Project; however, Cinbad Industry, Inc. and G2K Construction’s bids did not meet the basic requirements of the RFB, were considered nonresponsive, and rejected without evaluation. A panel composed of Architecture Services and Community Recreation

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staff evaluated the remaining three bids and recommend Pacific Tennis Courts, Inc. as the best and lowest bidder.

Bidder Recommendation
Best Bidder Pacific Tennis Courts, Inc.

Evaluation Criteria Price, experience, and technical competence Municipal Code SMMC 2.24.180
Submittals Received
Pacific Tennis Courts, Inc. $299,885.00 Ramsa
Construction, Inc. $583,000.00
Hellas Construction $624,213.00
Bid Data
Date
Posted Posted On
Advertise In
(City Charter &
SMMC)
Vendors
Downloaded
Date
Publicly
Opened
1/22/2024 City's Online
Bidding Site
Santa Monica Daily
Press
44 3/14/2024
Best Bidder Justification - VAP
Construction of the project requires specialized equipment, contractor licensing, technical expertise, and human capital that cannot be provided by in-house staff; therefore, general contracting services, with specialty in basketball court construction, would be utilized. Staff recommends Pacific Tennis Courts, Inc., the lowest bidder, as the best bidder based on bid price, experience, and technical competence. The recommended bidder has demonstrated the ability to perform and complete quality projects of similar scope for several municipalities and agencies in California, including the City of Westlake Village, City of Fountain Valley, City of Coronado, City of Mission Viejo, and City of Avalon. Architecture Services staff conducted outreach to the City of Westlake Village, and they recommended Pacific

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Tennis Courts, Inc. for its reliability and expertise.

Past Council Actions
Meeting Date Description
6/27/2023
(Attachment A)
Adoption of the First Year and Approval of the Second
Year of the FY 2023-25 Biennial Budget AdoptionMarine Park Basketball Court Reconstruction and VAP Basketball Court Reconstruction Projects
Environmental Review
Both projects are categorically exempt from CEQA pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement/Reconstruction) of the CEQA Guidelines. Section 15301 provides exemption (Class 1) for the operation, repair, maintenance, or minor alteration of existing public or private structures or facilities, involving negligible or no expansion of use. Section 15302 (Class 2) provides exemption for the replacement or reconstruction of existing structures and facilities where the new structure would be located on the same site as the structure replaced and would have substantially the same purpose and capacity as the structure replaced. The projects would reconstruct the existing basketball courts at Marine Park and VAP. In addition, none of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that would preclude the use of this CEQA exemption—the project sites are not located in a sensitive environment, the projects would not have a significant effect on the environment, the projects would not damage scenic resources, the projects would not be located on a hazardous waste site, and the projects would not cause a change to a historical resource. Therefore, these projects are Class 1 and Class 2 projects exempt from CEQA.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Special Revenue Source Fund to award a contract with Pacific Tennis Courts, Inc. for design and construction services for the Marine Park Basketball Court Reconstruction Project in an amount not to exceed $345,000 (including a 15% contingency).

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Contract Request:

Marine Park
FY 2023-24
Request Amount CIP Account # Total Contract
Amount
$345,000 C1008800.689000 $345,000
Staff seeks authority to approve available funding from the CDBG Fund to award a contract with Pacific Tennis Courts, Inc. for design and construction services for the VAP Basketball Court Reconstruction Project in an amount not to exceed $345,000 (including a 15% contingency).

Contract Request:

VAP
FY 2023-24
Request Amount CIP Account # Total Contract Amount
$345,000 C1908830.689000 $345,000
Prepared By: Yukiko Takahashi, Architectural Associate
Approved Forwarded to Council
Attachments:

A. June 27, 2023 Staff Report
B. Oaks Initiative Form - Pacific Tennis Courts, Inc.

C. Levine Act Disclosure Form - Pacific Tennis Courts, Inc.

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CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
(Ill O'
"•"•• M•••�••
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:
--
Title: President
Date: March 14, 2024
Email:-'----=-'---...:..,_ _____________ Phone: (818) 991-7445 FOR CITY USE ONLY:

Bid/PO/Contract# __________ _ Permit# _________ _
Pacific Tennis Courts, Inc.

Phil Carter, President
Phil Carter

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Packet Pg. 191 Attachment: Oaks Initiative Form - Pacific Tennis Courts, Inc. [Revision 1] (6383 : Award Contracts for VAP and Marine Park Basketball

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Packet Pg. 192 Attachment: Levine Act Disclosure Form - Pacific Tennis Courts, Inc. [Revision 1] (6383 : Award Contracts for VAP and Marine Park

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Packet Pg. 193 Attachment: Levine Act Disclosure Form - Pacific Tennis Courts, Inc. [Revision 1] (6383 : Award Contracts for VAP and Marine Park City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.E
1 of 10
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Memorandum of Understanding (MOU) with StartupStarter for Santa Monica Hub Innovation Event Including Road Closure Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with StartupStarter to sponsor a one-day street closure event called Santa Monica Innovation Hub on Monday, October 14, 2024;

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

Summary
StartupStarter, the founders of LA Investment Week and producers of LA Tech Week, has submitted a community events application requesting a partnership with the City to sponsor a one-day open street event called Santa Monica Innovation Hub 2024. This event meets the criteria for a City-sponsored event, as outlined in Administrative Instruction II-4-21. Staff recommends that Council authorize entering into an MOU to authorize the City to sponsor the event and to define the roles, responsibilities, and financial contributions of each party.

Discussion
Santa Monica stands as Southern California's premier technology innovation hub, attracting next-generation entrepreneurs eager to launch startups. In the heart of Silicon Beach, our city’s strategic positioning fosters a dynamic ecosystem ripe for innovation.

Entrepreneurs benefit from a supportive community, accessing top-tier talent, a wealth

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of resources and state-of-the-art startup accelerators. With the unbeatable combination of coastal charm, entrepreneurial spirit, and tech-friendly infrastructure, Santa Monica offers an unparalleled environment for startups to thrive, innovate, and succeed. Santa Monica is the epicenter of creativity and opportunity on the West Coast and it’s time to help remind the world of this and to celebrate our innovators – individual entrepreneurs, businesses, non-profits, educational institutions, and community partners.

The City has been requested to partner with StartupStarter and Downtown Santa Monica, Inc. (DTSM) to sponsor Santa Monica Innovation Hub, a one-day street closure event in celebration of LA Tech Week and Innovation Week on Monday, October 14, 2024, on Ocean Avenue, along with a one-day Youth Innovation Hub event on Tuesday, October 15, 2024, on Third Street Promenade.

LA Tech Week is primarily a tech industry event comprised of a series of ticketed events throughout the region for investors and entrepreneurs, including hackathon events, investor meetups and networking. Staff in Economic Development and the Information Services Department, along with DTSM, have been working closely with StartupStarter to formulate the vision for the event and identify key economic development goals to help support and accelerate the economic recovery efforts in Santa Monica.

The event coincides with the opening of A16z in Santa Monica. A16z, one of the leading venture capital firms in the United States, hosts the annual LA Tech Week event series, which takes place in venues across LA County. The Santa Monica Innovation Hub will stand as the premier event to launch the week-long series of events taking place across the entire City of Santa Monica and throughout LA County.

The full street closure event is proposed to be held on the one block segment of Ocean Avenue and Palisades Park between Santa Monica Boulevard and Broadway. The Community Events Ordinance allows open street events to occur on weekends and Monday holidays, and October 14 is a federal holiday. The applicant has submitted their Community Event Permit application to the City, and it has undergone initial review by City staff to ensure the footprint is feasible for traffic control, Police and Fire operations, and will not impede access to property owners and businesses located

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along this route. This is a paid, ticketed event but it will maintain public access on the sidewalks and along the segregated bike path, as well as the footpath through Palisades Park. A staff recommendation is to require a certain number (e.g. 100) tickets to be provided free of charge to Santa Monica education partners. Property owners and tenants located along the route will also be granted vehicular access to their properties at all times.

City staff believe the economic benefits brought to the City by this event justify the sponsorship. Santa Monica’s Creative and Tech Sector is comprised of 3,197 businesses, employing 30,839 people (35% of the City’s total employment) with an average quarterly payroll of $1.6 billion (57% of City’s total). It’s an incredibly important sector to the City’s economy but also one that is volatile, as evidenced by Santa Monica’s office vacancy rate of 19.7% as reported in Costar as of June 2024. Prior to COVID, many of Downtown Santa Monica’s offices (e.g. Santa Monica Clock Tower, the upper levels of buildings along Third Street Promenade, Second and Fourth Streets) were largely occupied by tech companies and start-up entrepreneurs. Many of the workers in the tech sector continue to work remotely, however, and as leases are coming to term, it is time for these companies to determine whether they want to continue to commit to Santa Monica or operate remotely for the indefinite future.

Thankfully, our City is starting to see these workers returning and welcoming new companies opening (e.g. A16z and Pegasus Angel Accelerator). Expert Dojo, Stubbs Alderton & Markiles and WeWork are all located on the Third Street Promenade and continue to play an important role in fostering innovation and launching the next generation of entrepreneurs. Thus, the importance of this event is to raise the profile of Santa Monica as the leading innovation hub in the region and to help reinforce the message “you belong here” as a means of retaining and attracting innovation talent to and investment in Santa Monica. This event also aligns with the City’s goals to cultivate economy recovery and expand community and cultural offerings, and to support a sustainable and connected community with programs that will benefit the economic wellbeing our community.

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The event organizers are already in discussions with businesses and property owners located along the route to get their support. The Shore Hotel will be hosting VIP events at the hotel and pool area; restaurants along and near the route will also be hosting mixer events. City staff are also using this event as an opportunity to reconnect with many of Santa Monica’s venture capital and private equity firms, including A16z, Clearlake Capital, Ocean Avenue Capital Partners and Upfront Ventures, along with tech incubators and accelerators such as Expert DoJo, Science and Stubbs Alderton & Markiles (all located in DTSM) and UP Partners (located at Santa Monica Airport) along with our cutting edge, leading Santa Monica innovators such as SNAP, Lionsgate, Hulu and Kite Pharma. The local entities are invited to get involved and showcase their innovative products to investors and the community. The coinciding Youth Tech event on the following day will serve to showcase up-and-coming innovation to the community. This free event will take place on Third Street Promenade to spotlight youth tech and help showcase our community’s emerging innovators in partnership with the local schools (Santa Monica College, Santa Monica Malibu Unified School District, Crossroads, New Roads as well as UCLA) and help raise awareness of the local tech sector and Santa Monica’s role as an innovation hub. The Memorandum of Understanding will specify the local partnerships, the requirement to work in partnership with DTSM businesses along the event route, and priority to showcase Santa Monica tech firms. It will also require a certain number of tickets for the paid event be made available to the community at no charge.

The organizers are working with LA Times and LA Business Journal along with their impressive channel of VC and tech firms across the country to promote the event and foster meaningful economic connections between tech entrepreneurs and tech investors (hence the merging of LA Tech Week and LA Investment Week).

Key messages associated with the Santa Monica Innovation Hub event and outreach include: Why Santa Monica? What is Investment Week 2024 + LA Tech Week? Who and what will be at the Hub?
Why Santa Monica?

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Santa Monica is the epicenter for technology and innovation in the region. Situated in the heart of Silicon Beach, Santa Monica benefits from its proximity to major technology companies, startups, venture capital firms, and renowned academic institutions. This concentration of resources fosters collaboration, networking, and knowledge sharing within the tech community. The Santa Monica Innovation Hub celebrates the city’s ability to connect many worlds together, culminating amongst the beautiful beach front skyline. Some of the advantages Santa Monica offers, include:

1. Startup Ecosystem: Santa Monica boasts a vibrant and dynamic startup ecosystem, attracting entrepreneurs, innovators, and investors from around the world. The city is home to numerous incubators, accelerators, co-working spaces, and startup support organizations, providing essential resources and mentorship to early-stage ventures.

2. Access to Talent: With its desirable coastal location and high quality of life, Santa Monica attracts top-tier talent across various industries, including technology, engineering, design, and business. The city’s diverse and skilled workforce fuels innovation and creativity, driving the growth of its tech sector.

3. Tech-Friendly Infrastructure: Santa Monica’s infrastructure is tailored to support the needs of technology companies and startups. The city offers robust internet connectivity through the state-of-the art CityNet broadband program, modern office spaces, and amenities designed to enhance productivity and collaboration. Additionally, initiatives such as the City of Santa Monica’s CityNet, Shared Mobility and the Zero Emission Delivery Zone pilot demonstrate a commitment to leveraging technology for community benefit.

4. Supportive Community: Santa Monica fosters a supportive and inclusive community for technology and innovation. Local organizations, meetups, and events provide opportunities for networking, learning, and mentorship. The city government actively engages with the tech community to address challenges, promote growth, and create a favorable business environment.

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5. Quality of Life: Beyond its professional opportunities, Santa Monica offers an exceptional quality of life with its beautiful beaches, cultural attractions, outdoor recreation, and vibrant culinary scene. This desirable lifestyle attracts talent and encourages professionals to live, work, and innovate in the city.

6. Commitment to Sustainability: Santa Monica prioritizes sustainability and environmental stewardship, aligning with the values of many tech companies and entrepreneurs. The city has implemented initiatives focused on renewable energy, green transportation, waste reduction, and sustainable urban planning, making it an attractive destination for environmentally conscious businesses and individuals.

What will be at the Hub?

1. Immersive Innovation Activations: Interactive exhibits and demonstrations showcasing cutting-edge technologies, startups, and innovation initiatives will engage attendees and highlight Santa Monica’s role as a leader in innovation.

2. Art Exhibitions: Local artists will display their work along the street and adjacent park, adding a cultural dimension to the event and celebrating the intersection of art and technology.

3. Food: A diverse selection of food trucks, vendors, and pop-up eateries will offer culinary delights ranging from gourmet cuisine to street food favorites, catering to all tastes. Priority will be given to Santa Monica businesses.

4. Networking Opportunities: Attendees will have the chance to connect with entrepreneurs, investors, industry professionals, and community leaders, fostering collaboration and partnership opportunities.

5. Street Closure: Ocean Avenue between Santa Monica Boulevard and Broadway will be closed to motorized traffic to create a pedestrian-friendly environment for the event, this would include redirecting traffic on Ocean Avenue.

6. Entertainment: Live music performances and street performers will entertain attendees throughout the day, creating a festive atmosphere.

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7. Youth Innovation Hub: On October 15th, a dedicated area will be set up on the Santa Monica Promenade for youth-focused innovation activities, workshops, and presentations, encouraging young minds to explore technology and entrepreneurship in partnership with Children’s Healthcare of Los Angeles.

Investment Week 2024 + LA Tech Week
Investment Week + LA Tech Week events are annual flagship startup and investor events spanning seven days of immersive experiences and conference programming in Los Angeles hosted and operated by StartupStarter. Investment Week 2024 is built to connect startups with investors and service providers who support their growth. These events feature thought leaders, industry experts, world class founders and brands supporting the expansion of technology innovations. The events help to position the participating companies with partnerships and strategic collaborations to support customer acquisition across the broader startup ecosystem, in an effort to boost profitability.

Who Is StartupStarter?
StartupStarter is a LA-based media & fintech company revolutionizing the capital raising process for both startups and investors through secure live-data connections via Application Program Interfaces (APIs) to banking, billing, accounting, marketing, social media, and other software & technology providers. StartupStarter’s technologies create an opportunity for startups to access more capital opportunities through transparent growth data and provides investors the ability to source new investment deals, deploy capital effectively, and track the growth of their portfolios. The co-founder Lorel Scott has worked closely with many Santa Monica tech companies, including Expert DoJo and Stubbs Alderton and Markiles, who have provided references to the City.

References have also been provided by UCLA Anderson Venture Accelerator, an event curation partner.

Lorel Scott, the COO and co-founder of StartupStarter, is a black entrepreneur who is a member of the LBGQT+ community and is working to “change the narrative around

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business education and level the playing field for people of color seeking to advance their businesses” (AfroTech, December 2022: https://afrotech.com/startupstarter-ischanging-the-narrative-for-entrepreneurs/) Staff recommends that the City enter into a MOU with StartupStarter to sponsor the Santa Monica Innovation Hub event and road closure on October 14, 2024. Under the terms of the proposed MOU, StartupStarter would assume responsibility for organizing and managing the event, as well as obtaining all appropriate permits. They would also be responsible for contracting with an event promoter and musical acts, securing the event space on private property, contracting with vendors and sponsors, and raising all the funds necessary to support the event, which is estimated to cost approximately $200,000. The proposed Santa Monica Innovation Hub event application has been reviewed by City staff from Recreation and Arts and Community Development to determine if the event meets the conditions for a City sponsored event, per Administrative Instructions II-4-21. Staff supports this event as it advances the City’s goal of supporting local businesses through economic recovery from the pandemic. The Economic Development Division has supported and helped to sponsor prior open street events for other Business Improvement Districts (BIDs) - Main Street and Montana Avenue.

The City would be responsible for providing oversight and coordination of the City’s permitting process, coordinating the City’s social media promotion of the event, providing certain fee waivers and reductions in accordance with the Community Event Administrative Instruction and assisting with outreach to Santa Monica tech businesses, education partners (e.g. Santa Monica Malibu Unified School District, Santa Monica College) and non-profit business organizations (e.g. Santa Monica Chamber of Commerce, Downtown Santa Monica, Inc., Santa Monica Pier Corporation).

The Memorandum of Understanding will specify the local partnerships, the requirement to work in partnership with DTSM businesses along the event route as well as priority given to showcase Santa Monica tech firms. It will also require a certain number of tickets for the paid event be made available to the community at no charge. It will also

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require StartupStarter to also organize the free community-focused Youth Tech event on the Third Street Promenade in collaboration with Downtown Santa Monica, Inc. and the City to be held as part of LA Tech Week 2024.

StartupStarter has demonstrated experience and success with organizing tech events throughout the region and securing sponsorship funds. As sponsor partner, the City will waive application fees, provide staffing support with marketing and community outreach, charge reduced staffing costs for Police and Fire (per the Community Events Administrative Instruction) and will provide community Wi-Fi access to the event organizers and exhibitors. The organizer would be responsible for paying for all nonsworn City staff required by the event.

Environmental Review
The event is categorically exempt from CEQA pursuant to Section 15301. Section 15301 (Class 1 – Existing Facilities) exempts 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 event would occur on existing streets and facilities, and would not expand or materially change existing City streets or infrastructure, and therefore is exempt pursuant to Section 15301.

Past Council Actions
Meeting Date Description
04/25/2023
(attachment A)
Introduction and Adoption of an Urgency Ordinance
Amending Chapter 4.68 to allow for “Open Street”
Community Events to promote public safety and
welfare, and associated changes.

Financial Impacts and Budget Actions
Staff seeks authority to enter into an MOU with StartupStarter to sponsor the Santa Monica Innovation Hub event and road closure on October 14, 2024. The indirect costs associated with the event that includes fee reductions and in-kind staff time are funded from the various City department budgets, including Economic Development, Information Services, Recreation and Arts, and Transportation. The Economic Recovery

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Fund will pay for actual costs incurred by the City that must be reimbursed and are not eligible to be passed along to the event partner under the Sponsorship Guidelines in the Community Events AI. StartupStarter will be responsible for paying for all other permits and fees associated with the event. The total estimated costs to the City are $15,000 based on budgets from prior Open Streets events on Main Street and Montana Avenue.

MOU Request
Request Amount FY 2024-25 Account # Total MOU Amount
$15,000 01800004.553170 $15,000
Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council
Attachments:

A. Attachment A: Open Streets SR 04-25-2023 10C
B. Santa Monica Innovaton Hub 2024 Overview
C. Santa Monica Innovation Hub - Site Map

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City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 10.C
1 of 11
To: Mayor and City Council
From: Danielle Noble, Acting Director, Community Services Department, Community Recreation
Subject: Introduction and Adoption of an Urgency Ordinance Amending Chapter 4.68 to allow for “Open Street” Community Events to promote public safety and welfare, and associated changes.

Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Section 15304 (minor alterations to land)

2. Introduce and adopt the urgency ordinance amending Chapter 4.68 to allow for “Open Street” Community Events to promote public safety and welfare, and associated changes.

Summary
Santa Monica Municipal Code (“SMMC”) Chapter 4.68 is the Community Events law, which, among other things, authorizes and provides regulation on the various types of community events allowed in the City. The proposed changes include a new category of Community Event: “Open Street Event,” that temporarily prohibits vehicular traffic from using a street and “opening” that street to other modes of human-powered transportation including pedestrians and cyclists, as well as associated festive uses.

Historically, requests received from local partners required Council action via the adoption of a resolution to authorize a road closure and authorization to enter into a Memorandum of Understanding with the event producer. Such closures are allowed under the California Vehicle Code and staff recommends changes to the Community Events law to allow “Open Street” events without requiring a license agreement and Council action for each individual event. These changes will allow for more “Open

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Street” events to take place in support of the City’s economic recovery and will reduce the burden on staff and Council and sets in place a policy for when these events can occur.

Additionally, staff proposes to reduce to the number of signatures required to hold a block party from the current two-thirds (67%) requirement to 51%. This change will make it easier for residents in multi-family neighborhoods to hold block parties, increasing community connectedness and wellbeing. Further, the street typologies eligible for block parties are proposed to be expanded from Neighborhood Streets exclusively to also include the Shared Street and Avenue: Industrial typologies, as identified in the Land Use and Circulation Element (LUCE).

For “Open Street” events the following alternative is presented for Council consideration:
• Replacing the requirement to obtain signatures of 51% of business or residents within the closure area of an “Open Street” event with a requirement for written approval from the neighborhood association or business improvement district associated with the area where the “Open Street” Event is proposed to occur and increasing the minimum time for noticing all residents and businesses of the event in the closure area from 10 days to 14 days.

Background
Recognizing the substantial community and economic benefits that may result from community events, the City has a comprehensive, coordinated process for managing events on public property and ensuring health and safety, which is codified in SMMC Chapter 4.68, Community Events law. The Community Events law establishes the City’s framework for permitting community events to use City streets, parks, open spaces, and City facilities licensed to private parties. The proposed amendment restructures Section

4.68.040 to clarify the definition of a community event requiring a permit, and the types of events that are exempt from the permit requirement. Permits continue to be required for the following:

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1. Parades and assemblies that use the public right-of-way and are likely to impede the free use of the space or not comply with traffic regulations,

2. Activities that involve 150 or more persons on public property or 75 or more persons on the Third Street Promenade, and

3. Events that include a structure requiring a permit from the Fire Department or Building and Safety Division. Permits will also be required for the newly defined category of “Open Street” events.

City staff receive numerous inquiries and requests from individuals and organizations interested in holding “Open Street” events in which a street, or portion of the street, is closed to vehicular traffic. Over the last two years as part of the COVID economic recovery efforts, Council and staff supported a series of “Open Street” pilot events on Main Street. Organizations including the Main Street Business Improvement Association (MSBIA) and Ocean Park Association (OPA) desire the ability to hold more “Open Street” events regularly. The Montana Avenue Merchants Association also desires to hold an “Open Street” event. Recognizing the demand for such events, and the popularity of similar events held in the past, City staff have identified a procedure for allowing for “Open Street” events to occur as a codified Community Event category.

Discussion
Under the Main Street “Open Street” Pilot program, a two-block stretch of Main Street was closed on weekends (once a month) for a series of four re-occurring monthly events. As part of the Main Street Pilot Program, the Main Street merchants and neighborhood residents were surveyed to gauge their support prior to and post-event of “Open Street” events. There was strong support to continue to host fun, safe, familyfriendly outdoor events in the community.

MSBIA and OPA would like to hold another three to four “Open Street” events on Main Street in 2023. Montana Avenue Merchants Association is anticipating closing the entire length of the Montana Avenue commercial district (from 7th Street to 17th Street) for their annual Montana Avenue Art Walk with key intersections open for crossing traffic. This would be a one-day event (Saturday) taking place in late September. Local

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neighborhood associations, schools and church groups have also expressed interest in potential “Open Street” events. Staff anticipate that other events may be held in the future.

The proposed changes define an “Open Street” event as a Community Event requiring the closure of a street, or a portion of the street, to vehicular traffic, and the use of the closed street for the event. Events would include but are not limited to celebrations, street fairs, art walks, live music festivals, charitable events, ceremonies, events where a group of people convene to promote walking, biking, or rolling, and other similar events, but excluding parades, athletic events, and block parties which are all defined separately in the code.

Due to the nature of the events, including the potential size and scale, the need for vehicular traffic and bus re-routing, “Open Street” event applications must be submitted at least 60 days in advance rather than the 30-day requirement for other Community Events. The “Open Street” event applications will go through a preliminary application and approval process to ensure the requested street or portion of streets can be closed.

The preliminary approval process requires the applicant to provide proof that they own, lease or rent property within the proposed closure area. Additionally, applications must include a site plan with a description of the area to be closed including impacts to bus routes and stops, along with maps identifying the streets that would be affected, including an illustration of the following as applicable: stages, food booths, generators, portable toilets, trash/compost/recycling bins, seating, bike valet, and a diagram of an emergency access plan and accommodation for accessibility needs.

Given the community desire to have events this summer and the lead time needed by staff and event organizers to ensure successful summer events, staff was unable to engage in an extensive community outreach and engagement process prior to formulating recommendations. Street closures create significant neighborhood impacts.

One way to ensure neighbors and businesses affected by the closure are aware of, and support, “Open Street” events is to incorporate a mechanism to secure support.

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Currently, the City requires a signed petition for both block parties and preferential parking permits wherein adjacent and affected businesses and residents indicate their support for closing the street for a block party of creating a residential parking zone.

Staff proposes a similar process for “Open Street” events wherein after preliminary approval, the event organizers must produce a petition indicating the occupants of at least 51% of residences and businesses within the closure area have no objection to and support the closure. For residential properties impacted by the closure, the petition must be signed by the resident(s), while for commercial properties, the petition must be signed by the owner, manager, or assistant manager of the business impacted by the closure. The petition must include the event name, date, time, location, and contact information of the event organizer. In addition to the signed petition, the applicant must notify all residents, property owners, managers, or lessees in the closure area of the date, time, location, and purpose of the closure. Notification must be completed at least 10 days prior to the event. The application must also include a temporary traffic control plan and be responsible for obtaining all other permits required to be issued from the City or any other external organization including but not limited to the County of Los Angeles Health Department (for food events) and the State of California Alcohol Beverage Control (if alcohol is part of the event, such as a beer or wine garden).

Staff proposes any street may be considered eligible for an “Open Street” event, except Neighborhood or Shared streets, as identified in the Land Use and Circulation Element, which may be closed via a Block Party permit. City staff will determine if the proposed street closure may be permitted, or if an alternative route is necessary. This determination will be based on the proposals' impact on City services, staffing resources, emergency service delivery, transit service interruption, traffic congestion, and neighborhood and commercial impacts.

Over the past four months, City staff across all departments that are involved in the Community Event Permit process (including Community Services, Fire, Police, Department of Transportation, Community Development, City Attorney’s Office) have been working together to review these requested changes to the Community Events Ordinance. To minimize traffic, circulation and noise impacts on residents and

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businesses, staff proposes to restrict the number of events and days that “Open Street” events can occur. “Open Street” events would only be allowed on Fridays, Saturdays, Sundays and Mondays if it is a holiday except for Memorial Day, July Fourth, Labor Day, Thanksgiving, and Christmas Day. “Open Street” events would be issued for a maximum of two consecutive days; additional time for set up and break down may be approved at the discretion of the City. The City Manager shall set by administrative regulation the number of open streets events that may be permitted each calendar year, regardless of the street. Based on internal consultation with the multi-department Community Event Permit review group, staff are recommending for calendar year 2023 and calendar year 2024 a total of no more than four “Open Street” events be permitted in each calendar year with no overlapping/concurrent events permitted on the same weekend. This is due to limited staffing citywide, but particularly in Police and Fire, as “Open Street” events may necessitate on-site staffing throughout the event. Completed applications shall be considered on a first-come first-served basis and can be submitted up to one year in advance. However, no single entity or organization shall be allowed to utilize the full allocation of annual event slots.

Permit application fees and other additional fees and charges, including neighborhood notification fees, for the use of city streets will continue to be established by City Council resolution and will be charged for Open Streets events. In addition to the payment of all applicable non-refundable permit application and administrative fees, a permittee shall pay the City for City departmental service charges incurred due to the permitee’s activities.

Approved applicants of Category 1 events (e.g. open street events, recreation, competition/contests, spectator sports, fairs, etc.) will pay for police services for public safety and/or traffic control if required, overnight security if required, tent/canopy permits, cooking/open flame permits, fire safety officers, building permits, transportation management plan, bike valet, auto valet permit, street closure permit, any loss of parking meter revenue, bus supervisor and/or other costs related to bus re-routing, business licenses, clean- up/damage deposits, clean-up/damage fees, event monitor,

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neighbor notification, insurance, and other direct City services to the extent such services are utilized and/or required due to the event.

Additionally, as “Open Street” events can require significant financial investment from event producers, and in support of the Council priority to cultivate economic recovery and expand community and cultural offerings, Section 4.68.080 (d) would allow City “sponsored” events to be eligible for waivers of application and administrative fees.

The City is aware of several organizations who wish to seek permits for Open Street events in the coming months in the wake of the recent lifting of State and local States of Emergency due to the COVID-19 pandemic. Because of the time it will take the City to process these applications, it is necessary to adopt ordinance 4.68 as an emergency measure, to ensure these events occur in a way that is safe for organizers and participants, and which minimizes disruption to neighboring businesses and residents, while allowing the continued provision of emergency and other municipal services.

These events are vital to the economic recovery of the city.

Additionally, staff proposes modifications to the block party process to expand access to this low-cost community-building and wellbeing-enhancing program. First, to facilitate block parties in multi-family neighborhoods, staff proposes to reduce the number of signatures required to hold a block party from the current two-thirds (67%) requirement to 51%. Further, the street typologies eligible for block parties are proposed to be expanded from Neighborhood Streets exclusively to also include the Shared Street and Avenue: Industrial typologies, as defined in the LUCE. Shared Streets are residential streets primarily located in the Ocean Park Neighborhood, while Avenue: Industrial streets are primarily dead-end streets adjacent to the Olympic Boulevard corridor.

A number of clean-up changes are also included in this amended ordinance. Changes include reorganizing Section 4.68.04 to define Community Events and those events that are exempt; requiring compliance with all laws and permit conditions; allowing enforcement by administrative citation in addition to the existing misdemeanor provision; and removing reference to the marathon route.

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Stakeholder Input
City staff met with leaders of Main Street and OPA who expressed concern over the cost and ability to obtain signatures of 51% of business or residents within the “Open Streets” closure area. Staff believe the support of those affected by the closure is important to the success of the event and is aligned with the requirements for closing neighborhood streets. Similarly, for street closure events, the City of Los Angeles requires a petition to be submitted indicating that occupants of at least 51% of the residences or businesses within the closure area have no objections to and support the closure. An alternative option for Council to consider is to remove the requirement to secure 51% support for “Open Streets” closures and replace it with a requirement for the event organizer to obtain written support for the event and street closure from the neighborhood association or business improvement district in which the event will take place. With this option, staff recommends increasing the notification to businesses and residents in the closure area from 10 days prior to the event date to a minimum of 14 days in advance. This would ensure all stakeholders in the affected area receive ample notification.

Environmental Assessment
The amendment to the SMMC is categorically exempt pursuant to Section 15304 (Class 4 - Minor Alterations to Land) of the California Environmental Quality Act (CEQA) guidelines. Class 4 consists of the minor public or private alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. Examples include minor temporary use of land having negligible or no permanent event on the environment. The proposed amendment would allow for Open Street events on existing public right of ways, and would result in minor, temporary use of land having no permanent effect on the environment. Therefore, the amendment is categorically exempt pursuant to Section 15304.

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Past Council Actions
Meeting Date Description
06/27/2000 (A) Approval of the Community Event Policy
04/24/2001 (B) Addition of Chapter 4.68 the Community Events Code, to the Santa Monica Municipal Code and adoption of associated fees
05/08/2001 (C) Addition of Chapter 4.68 to the Santa Monica Municipal Code, the Community Events Law
04/08/2003 (D) Amendment of Santa Monica Municipal Code Sections relating to Community Events and Street Banners
07/26/2005 (E) Amendment to Municipal Code Section 4.68.160 Establishing a new 5/10K Race Route, Eliminating a 5/10K Race Route, and Modifying the Permitted Race Time and Frequency Parameters
09/22/2009 (F) Amendment of Municipal Code Section 4.68 to establish a marathon route segment, modifications to the City’s Extended Event Policy, authorization for execution of agreements for the 2010 LA Marathon
10/25/2011 (G) Amendment of Municipal Code Chapters 3.36, 4.08, 4.55, 4.68 and

6.36 relating to permitted community events in the City’s public spaces and parks
06/08/2021 (H) Santa Monica Outdoors: Extending Pandemic-Era Emergency Allowances including Outdoor Use Permits and Interim Zoning Changes to Support Santa Monica’s Economic Recovery
05/24/2022 (I) City Council directed staff to return with an urgency ordinance that amends Santa Monica Municipal Code Section 4.68.150 to allow parades on Main Street to proceed in a northbound direction. 06/28/2022 (J) City Council adopted urgency ordinance amending Municipal Code Chapter 4.68.150 allowed parade routes.
09/13/2022 (K) City Council approved a Memorandum of Understanding for the 2022 Open Main Street October Festival and Adoption of a Resolution to Authorize Closure of a Portion of Main Street for the Festival.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Allowing for more community events, particularly in our commercial districts, is crucial to helping support the continued economic recovery of our local businesses and the overall City. The events help to generate revenue for the City in the form of additional sales tax, transit occupancy tax and additional parking

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revenues. Staff will return to Council if specific budget actions are required in the future.

Under the City’s Administrative Instructions, certain events may qualify for “City Sponsored” or “City Co-Produced" status which results in the City helping to fund the event in the form of grants (e.g. Council Discretionary Funds would equate to a “City Sponsored” event) and/or the reduction or wavier of certain permit fees and services, including City staffing costs.

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

A. June 27, 2000 Approval of Community Event Policy (Web Link) B. April 24, 2001 Addition of Chapter 4,68 to the SMMC (Web Link) C. May 08, 2001 Addition of chapter 4.68 to the Santa Monica Municipal Code (Web Link)
D. April 08, 2003 Amendment of SMMC Sections Relating To Community Events and Street Banners (Web Link)
E. July 26, 2005 Amendment to SMMC Section 4.68.160 Establishing a New 5/10K Race Route, Eliminating a 5/10K Race Route, and Modifying the Permitted Race Time and Frequency Parameters (Web Link)
F. September 22, 2009 Amendment to Community Events Ordinance for Marathons and Modification of Extended Event Policy for Commercial Use of Beach Parking Lot at 1550 PCH (Web Link)
G. October 25, 2011 Amendment of SMMC Chapters 3.36, 4.08, 4.55, 4.68 and

6.36 relating to permitted community events in the City’s public spaces and parks (Web Link)
H. June 08, 2021 Santa Monica Outdoors: Extending Pandemic-Era Emergency Allowances Including Outdoor Use Permits and Interim Zoning Changes to Support Santa Monica’s Economic Recovery (Web Link)
I. May 24, 2022 urgency ordinance amending SMMC Section 4.68.150 allowing parades on Main Street to proceed northbound (Web Link) J. June 28, 2022 Adoption of urgency ordinance amending Municipal Code Chapter

4.68.150 allowed parade routes (Web Link)

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K. September 13, 2022 Approval of MOU for the 2022 Open Main Street October Festival and Adoption of a Resolution to Authorize Closure of a Portion of Main Street (Web Link)
L. ORD open streets 4.25.23_v4.18

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Packet Pg. 214 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 1 City Council Meeting: April 25, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)

AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 4.68 TO ALLOW FOR “OPEN STREET” COMMUNITY EVENTS TO PROMOTE PUBLIC

SAFETY AND WELFARE
WHEREAS, on May 8, 2001, the City Council adopted Ordinance No. 2008 (CCS), adding Chapter 4.68 to the Santa Monica Municipal Code, the Community Events Law; and
WHEREAS, the Community Events Law provides a coordinated process for managing community events to ensure the health and safety of event patrons, residents, workers, and other visitors, and to prohibit illegal activities from occurring at community events, and to protect the rights of community event permit holders; and WHEREAS, the Community Events Law is designed to protect the right of people to engage in expressive activities in the City’s public places and establishes the least restrictive and reasonable time, place, and manner regulations of these activities; and WHEREAS, the Community Events Law has been amended and refined on several occasions to ensure the law conforms to Constitutional requirements and to enact appropriate modifications to the law based on experience, changing conditions in the City, and community feedback on the operation of the law; and WHEREAS, the City’s Community Events Law has been in place for over two decades and has been highly successful in establishing a coordinated process for community events, thereby ensuring the health and safety of event patrons, residents,

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Packet Pg. 215 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 2 workers, and other visitors and protecting the rights of community event permit holders; and
WHEREAS, California Vehicle Code Section 21101(e) authorizes local authorities, for those highways under their jurisdiction, to adopt rules and regulations by ordinance or resolution to temporarily close a portion of any street for celebrations, parades, local special events, and other purposes when, in the opinion of local authorities having jurisdiction or a public officer or employee that the local authority designates, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing; and
WHEREAS, with the recent lifting of State and local States of Emergency due to COVID-19, the City anticipates several organizations will seek community event permits to host events in the coming months; and
WHEREAS, community events are a vital part of the City’s continued economic recovery following the COVID-19 pandemic, and the proposed changes to the Community Events Law will allow for such events to occur in a way that is safe for organizers and participants, and which minimizes disruption to neighboring businesses and residents, while allowing continued provision of emergency and other municipal services; and WHEREAS, the Community Events Law does not currently have a mechanism to allow “open street” events to safely occur in the roadway; and WHEREAS, the City Council hereby finds that: the amendment to the Santa Monica Municipal Chapter 4.68 implemented by this Emergency Ordinance is immediately necessary as an emergency measure in order to preserve the public health, safety, and welfare of parade participants, spectators, and visitors by ensuring the safe

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

SECTION 1. Chapter 4.68 of the Santa Monica Municipal Code is hereby amended to read as follows:

Chapter 4.68 COMMUNITY EVENTS

4.68.010 Purpose.

It is the purpose of this Chapter to establish a process for permitting community events Community Events to use City streets, parks, open space, facilities or services in accordance with the community event policy established by the City Council on June 27, 2000. The City recognizes the substantial community benefits that may result from community events Community Events. They can provide cultural enrichment, promote economic vitality and enhance community identity. They may also provide funding opportunities for service organizations. The purpose of this Chapter is to provide a coordinated process for managing community events Community Events to ensure the health and safety of event patrons, residents, workers, and other visitors, to prohibit illegal activities from occurring at the community events Community Events, and to protect the rights of community event Community Event permit holders. It is also the intent of the Council to protect the rights of people to engage in expressive activities in the City’s public places and to establish the least restrictive and reasonable time, place and manner regulation of these activities. It is further intended to create mechanisms for cost recovery

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4.68.020 Community Events Committee - Membership.

There is hereby created a Community Events Committee to carry out the provisions of this Chapter. This Committee is comprised of representatives of City departments, including, but not limited, to the following departments: Big Blue Bus Transportation, City Manager’s Office, Community and Cultural Services, Public Works, Finance, Fire, Planning and Community Development, and Police, and Housing and Economic Development. The Committee may also include representatives from City-funded entities whose contractual obligations with the City include operation or oversight of public venues used for community events Community Events. The Chairperson of the Committee shall be designated by the Community and Cultural Services Director.

4.68.030 Powers of the Community Events Committee.

The Community Events Committee shall have the power to:
(a) Administer and apply this Chapter;
(b) Represent the City, under the authority of the City Manager, in discussions and in establishing agreements with the person(s) who represent the event; (c) Coordinate with City departments and with other governmental agencies for the provision of governmental services for such community events Community Events;

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Packet Pg. 218 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 5 (d) Establish the terms and conditions, appropriate fees, and the time(s), place and manner of the event consistent with this Chapter, any implementing regulations/guidelines, and other provisions of the Municipal Code applicable to the event.

4.68.040 Permit required.
(a) Definitions. The following terms as used in this Chapter have the following meanings:
(1) “Block Party” means a festive gathering primarily intended for the residents and businesses located on a street and their invitees, on a street classified as a “Neighborhood Street,” “Avenue:Industrial,” or “Shared Street” in the City’s Land Use and Circulation Element (LUCE), which requires the closure of a street, or a portion thereof, to vehicular traffic, and the use of the street for the festivity.
(2) “Community Event” means any of the following:
(A) Any organized formation, procession, or assembly of persons, animals, vehicles, or any combination thereof, that assembles or travels in unison for any purpose, on any sidewalk, street, pedestrian path, alley, or other public right of way that either: (1) is likely to impede, obstruct, impair or interfere with free use of a public street, highway, alley, sidewalk, or pedestrian path; or (2) does not comply with normal or usual traffic regulations or controls.
(B) Any event on City owned, controlled, or maintained property, involving 150 or more persons, or involving 75 or more persons on the Santa Monica Third Street Promenade.

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Packet Pg. 219 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 6 (C) An event on City owned, controlled, or maintained property, which requires the placement of a tent, canopy, or other temporary structure if that placement requires a permit from the City’s Fire Department or Building and Safety Division.
(D) An Open Street Event as defined in this Section.
(E) Examples of Community Events may include, but are not limited to, concerts, parades, circuses, fairs, festivals, street fairs, athletic events, open street events, protests, counter-protests, demonstrations, rallies, and community celebrations.
(3) “Expressive Activity” means conduct, the sole or principal object of which is the expression, dissemination, or communication by verbal, visual, literary, or auditory means of opinions, views, or ideas protected by the First Amendment of the United States Constitution and Article I of the California Constitution.
(4) “Open Street Event” means a Community Event requiring the closure of a street, or portion thereof, to vehicular traffic, and the use of the closed street for the event, including but not limited to, celebrations, street fairs, charitable events, ceremonies, events where a group of persons convene to promote walking, biking, or rolling, and other similar events, but excluding parades, athletic events, and block parties.
(5) “Spontaneous Event” means an event that is occasioned by news or affairs coming into public knowledge less than forty-eight hours prior to such event. Events that require advance planning, such as recreation events,

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Packet Pg. 220 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 7 competitions, contests, spectator sports, fairs, festivals, carnivals, ticketed events, sales or trade shows, or events that require a permit from Building and Safety or the Fire Department for the placement of structures shall not be considered spontaneous events.
(b) Permit required. Except as otherwise provided by this Chapter or any other applicable law, rule or regulation or any permit or license issued hereunder or pursuant to the terms of a permit, lease, or contract which has been specifically authorized by the City Council, a Community Event permit shall be obtained from the Community Event Committee for all Community Events.
(c) Exceptions. The following events do not require a Community Event Permit:
(1) Community events that occur on a public sidewalk or pedestrian path and is anticipated to have 500 or fewer participants, and all participants (i) assemble, march or walk in groups of less than 50, two abreast, and give way to others they encounter on the public sidewalk or pedestrian path, (ii) do not obstruct traffic flow; (iii) obey all traffic regulations; and (iv) obey all applicable park regulations.
(A) For any Community Event under this subsection (c)(1) where it is reasonably anticipated or for which the organizer becomes aware the number of participants will exceed 150 individuals, the organizer shall endeavor to provide notice to the Chief of Police at least 48 hours in advance of the activity, or as soon as the organizer becomes aware the event may exceed 150 people.

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Packet Pg. 221 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 8 (B) Any event otherwise exempt from obtaining a Community Event permit under Subsection (c)(1) may be terminated and participants ordered to disperse by the Chief of Police if, after warning the participants and providing them with an opportunity to comply, participants are not in compliance with the regulations set forth in Subsection (c)(1). (2) Block Parties, so long as they comply with the provisions of Section

4.68.190, below.
(3) Community Events at the following City facilities:
(A) Facilities that are predominately used and approved by the Fire Department or the Building Department as assembly spaces do not require a Community Event permit so long as such events do not require a street closure or traffic diversion or require the use of other public property that does not constitute an assembly space. For purposes of this subsection, assembly spaces include, but are not limited to, the Civic Auditorium, the Pier Carousel, City park buildings, Annenberg Community Beach House, and Miles Memorial Playhouse.
(B) The Woodlawn Cemetery for funerals and Memorial Day services.
(4) Community Events that occur on school grounds and other property owned by the Santa Monica-Malibu Unified School District and the Santa Monica College.
(5) Spontaneous Events may be conducted on the lawn of City Hall without organizers first having to obtain a Community Event Permit. If practicable,

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Packet Pg. 222 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 9 the organizers should give notice to the City’s Community Services Director at least four hours prior to the event informing the City of the date and time of the event and providing an estimate of the approximate number of persons who will be participating.

Except as otherwise provided by this Chapter or other applicable law, rule or regulation or any permit or license issued hereunder or pursuant to the terms of a permit, lease, or contract which has been specifically authorized by the City Council, a community event permit shall be required to be obtained from the Community Event Committee for the following activities:
(a) A parade, procession, march or assembly consisting of persons, animals, vehicles, or any other combination thereof, which is to assemble or travel in unison on any public street, highway, alley, sidewalk or other City-designated public way and which either: (1) may impede, obstruct, impair or interfere with free use of such public street, highway, alley, sidewalk, or other public way owned, controlled, or maintained by the City; or (2) does not comply with normal or usual traffic regulations or controls. (b) Any activity or event on City owned, controlled, or maintained property not subject to the requirements of subsection (a) of this Section, involving one hundred fifty or more persons, or involving seventy-five or more persons on the Santa Monica Third Street Promenade.
(c) Any activity or event on public property which requires the placement of a tent, canopy, or other temporary structure if that placement requires a permit from the City’s Fire Department or Building and Safety Division.

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Packet Pg. 223 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 10 (d) Notwithstanding the above, events at facilities located on City property that are predominately used and approved by the Fire Department or the Building Department as assembly spaces do not require a community event permit so long as such events do not require a street closure or traffic diversion or require the use of other public property that does not constitute an assembly space. For purposes of this subsection, assembly spaces include, but are not limited to, the Civic Auditorium, the Pier Carousel, City park buildings, Annenberg Community Beach House, and Miles Memorial Playhouse. (e) School grounds and other property owned by the Santa Monica Unified School District and the Santa Monica College are exempt from the requirements of this Chapter.
(f) Spontaneous events which are occasioned by news or affairs coming into public knowledge less than forty-eight hours prior to such event may be conducted on the lawn of City Hall without the organizers first having to obtain a community event permit.

If practicable, the organizers should give notice to the City’s Community Events Office at least four hours prior to the event informing the City of the date and time of the event and providing an estimate of the approximate number of persons who will be participating.

Events which require advance planning such as recreation events, competition/contests/spectator sports, fairs, festivals, carnivals, ticketed events, sales/trade shows or events which require a permit from Building and Safety or the Fire Department for the placement of structures shall not be considered to be spontaneous events.

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Packet Pg. 224 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 11 Departmental service charges may still be incurred for events undertaken pursuant to this subsection to the extent otherwise authorized by this Chapter and the administrative guidelines adopted pursuant to this Chapter.

4.68.050 Application.
(a) To receive a community event Community Event permit, a person must complete and file a community event Community Event application with the Community Event Committee, or a designated representative, on a form approved by the City. The applicant must provide the following information:
(1) A description of the proposed use, event, or activity Community Event; (2) The street or other public property and the specific area or areas thereof which will be utilized in connection with the proposed use, event, or activity Community Event;
(3) The manner in which the public property will be utilized; (4) The date or dates and the specific times thereof, including set-up and tear-down, that the public property is to be utilized for the described use, event, or activity Community Event;
(5) The name, address and telephone number of the person, entity or organization sponsoring or conducting the proposed event Community Event; (6) The name, address, email address, and telephone number of the person or persons to be contacted regarding the application or permit; (7) A Zero Waste Plan; and
(8) Such other information as the City may require via administrative regulation.

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Packet Pg. 225 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 12 (b) For Open Street Events, the application shall be reviewed in two phases:

Preliminary conceptual approval, and then final approval upon submission of all requirements in this Section. The applicant shall submit the following:
(1) For preliminary approval by the City:
(A) Everything required in subsection (a), above.
(B) A site plan with a description of the location of the right of way requested to be closed and its association with the event, including maps and/or drawings which identify the streets that would be affected, describing the scope and design of the event, including illustrations of the location of the following, as applicable: staging, food booths, generators, portable toilets, trash/compost/recycling bins, seating, and bike valet operations, and including a diagram of an emergency access plan with a minimum unobstructed width of 20 feet and vertical clearance of at least 13.5 feet, and accommodation for accessibility needs.
(C) Presence of amplified sound or alcohol in the right of way, and list of equipment that will be placed in the right of way. (D) Evidence that the applicant owns, leases, or rents property within the proposed closure area, or a signed letter of co-sponsorship from someone who meets those criteria.
(E) A transportation management plan to minimize the parking and traffic impacts of event attendees that promotes transit and active modes of transportation to/from the event.

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Packet Pg. 226 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 13 (2) Once the applicant receives preliminary approval, the following shall be submitted to complete the application:
(A) A petition indicating the occupants of at least 51 percent of residents and businesses within the closure area have no objection to and support the closure. For residential properties impacted by the closure, the petition must be signed by the resident(s). For commercial properties, the petition must be signed by the owner, manager, assistant manager, or property manager of the business impacted by the closure. The petition must include the event name, date, time, location, and contact information of the event organizer.
(B) A temporary traffic control plan showing the necessary controls, including but not limited to signage and barricades required to safely close the right of way and detour traffic, and indication of bus and transit stops along the proposed closure area. Permit holders are responsible for procuring and placing all traffic control devices and temporary parking signs.
(C) Copies of all other permits required to be issued from the City or any other external organization, including but not limited to the County of Los Angeles and the State of California, and divisions thereof. If such permits have not yet been obtained, the applicant shall submit a copy of any relevant application and a projected timeline for approval. (bc) The Community Event Committee may refer the application to such City departments or personnel as the Committee deems necessary from the nature of the

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(cd) An application must be submitted and reviewed in accordance with the time limits established in administrative regulations and guidelines established pursuant to Section

4.68.200.

4.68.060 Review process.

Subject also to Section 4.68.070, the Community Events Committee shall issue a community event Community Event permit, if it is determined that all of the following criteria have been met:
(a) The proposed use of the property is not governed by or subject to any other permit procedures provided elsewhere in this Code or other applicable laws, rules, or regulations.
(b) The preparation for or the conduct of the proposed use, event or activity will not unreasonably or unfeasibly burden City resources necessary to preserve the public’s use of the street in the area contiguous to the street or other public property.
(c) The preparation for or the conduct of the proposed use, event or activity will not unduly impede, obstruct, or interfere with the operation of emergency vehicles or equipment in or through the particular permit area or adversely affect the City’s ability to perform municipal functions or furnish city City services in the vicinity of the permit area.

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Packet Pg. 228 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 15 (d) The proposed use, event, or activity does not otherwise present a substantial or unwarranted safety, noise, or traffic hazard. (e) The proposed event will be of a nature and size appropriate to the proposed venue, location, or site, will occur during a time period approved for that venue, location, or site, and will fall within the frequency limitations established by administrative guidelines adopted pursuant to this Chapter. (f) The proposed event will not include animals on the beaches and will not include animals in parks except on leashes.
(g) A transportation management/parking plan has been approved by the City for the event to the extent such a plan is required by implementing regulations. (h) The proposed event will not cause other adverse impacts on health or safety to surrounding residential or commercial uses, which cannot be effectively mitigated.

In deciding whether to approve an application, no consideration may be given to the message of the event, the content of speech, the identity or associational relationships of the applicant, or to any assumptions or predictions as to the amount of hostility which may be aroused in the public by the content of speech or message conveyed by the event.

4.68.070 Denial/revocation of permit
The Community Events Committee shall deny an application for a community event Community Event permit or revoke a permit if the Committee finds any of the following:

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Packet Pg. 229 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 16 (a) One or more of the approval criteria specified in Section 4.68.060 is not met;
(b) The applicant has knowingly made a false, misleading or fraudulent statement of fact to the City in the application process; (c) The application does not contain the information required by this Chapter;
(d) The application does not satisfy the requirements of this Chapter or the administrative regulations adopted thereto;
(e) The applicant fails to comply with any conditions of approval including, but not limited to:
(1) Remittance of fees, charges or deposits,
(2) Submittal of an indemnification agreement and/or proof of insurance to the extent required,
(3) Timely receipt of all required approvals;
(f) The applicant fails to agree as a condition of permit issuance that if City property is destroyed or damaged by reason of permittee’s use, event or activity and the damage or destruction is directly attributable to the permittee, the permittee shall reimburse the City for the actual replacement or repair cost of the destroyed or damaged property;
(g) The applicant has damaged City property and has not paid in full for such damage or has other outstanding and unpaid debts related to a prior community event Community Event permit issued by the City.

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Packet Pg. 230 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 17 4.68.080 Permit fees.
(a) Except as otherwise provided by this Code or any other applicable law, rule or regulation, or by the terms of a permit, license, lease or contract which has been specifically authorized by the City Council, the permit application fees and other additional fees and charges, including neighborhood notification fees, for the use of city streets or other city-owned or controlled property pursuant to this Chapter shall be established by the City Council by resolution. (b) An indigent natural person who cannot apply for a permit because of an inability to pay the application fee due to such indigence may not be required to pay the fee in accordance with administrative regulations or guidelines adopted pursuant to this Chapter. Application for indigent status shall be made at the time of permit application and shall be accompanied by such relevant information and documentation as may, in the opinion of the City Manager or designee, be reasonably necessary to verify such status. For purposes of this Section 4.68.080, “indigent natural person” means:
(1) A person who is receiving benefits pursuant to the Supplemental Security Income (SSI) and State Supplemental Payments (SSP) programs (Sections 12200 to 12205, inclusive, of the California Welfare and Institutions Code), the California Work Opportunity and Responsibility to Kids Act (CalWORKs) program (Chapter 2, commencing with Section 11200 of Part 3 of Division 9 of the California Welfare and Institutions Code), the

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Packet Pg. 231 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 18 Food Stamp program (7 U.S.C. Section 2011 et seq.) or Section 17000 of the Welfare and Institutions Code;
(2) A person whose monthly income is one hundred twenty-five percent or less of the current monthly poverty line annually established by the Secretary of Health and Human Services pursuant to the Omnibus Budget Reconciliation Act of 1981, as amended.
(c) An organization in which a majority of its members meet the criteria for indigent status, as established in subsection (b) of this Section, may also be eligible for application fee waiver.
(d) A permit application fee and/or administrative fee shall not be required for permittees of events sponsored, produced or co-produced by the City or by City-funded entities contractually required to operate or oversee specific public venues used for community events Community Events.

4.68.090 Appeals.

Any applicant aggrieved by an adverse decision under
Section 4.68.060 or 4.68.070 may appeal such decision to the Director of Community and Cultural Services by filing a written notice of such appeal with the Committee within five business days of the decision. The Director shall decide the appeal within one working day unless the event is a Category 1 event as defined in the Administrative Instruction implementing this Community Events Ordinance in which case the appeal shall be decided within ten calendar working days. The Director’s decision shall be final except for judicial review.

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Packet Pg. 232 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 19 4.68.100 Interference with community event Community Event prohibited.

It shall be unlawful for any person to interfere with a community event Community Event permitted under this Chapter by engaging in the following acts when done with the intent to cause interference:
(a) Blocking, obstructing, or impeding the passage of participants, vehicles, or animals in the community event Community Event along the community event Community Event route;
(b) Walking or running, driving a vehicle, riding a bicycle or skateboard, or using any similar device through, between, with, or among participants, vehicles, or animals in the community event Community Event;
(c) Dropping, throwing, rolling, or flying any object toward, among, or between participants, vehicles, or animals in a community event Community Event; (d) Grabbing at, taking hold of, hitting, pulling, or pushing any participant, vehicle, or animal in the community event Community Event or anything in the possession of any participant in the community event Community Event; (e) Throwing, squirting, dumping, or dropping any liquid or gaseous substance on, toward, among, or between participants, vehicles, or animals in the community event Community Event;
(f) Vending or offering for sale any food or merchandise from the roadway, curb to curb, of a community event Community Event route during the hours the community event Community Event route is closed to normal motor vehicle traffic without first having obtained the written permission of the person holding the permit

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Packet Pg. 233 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 20 for the community event Community Event, in addition to any permits and/or licenses required for such activity by the City or any other governmental entity. (g) Engaging in a street performance in violation of the distance restrictions set forth in Section 6.112 of this code.

4.68.110 Hold harmless.

Each permittee shall execute a hold harmless agreement in a form approved by the City agreeing to defend, indemnify, and hold harmless the City against losses and liabilities incurred from the conduct of the permittee or its officers, employees, and agents.

4.68.120 Insurance requirements.
(a) Except as otherwise prohibited by law or an exemption is obtained as provided by this Chapter and the implementing regulations, the permittee shall procure and maintain in full force and effect during the term of the permit a policy of insurance from a reliable insurance company authorized to do business in the State, which policy includes the City, its boards, officers, agents, employees, and volunteers as named insureds or additional named insureds and which provides the coverage that the Risk Manager determines to be necessary and adequate under the circumstances. Proof of insurance shall be submitted to the City prior to issuance of the permit and maintenance of this insurance shall be a condition of the permit. (b) If the Risk Manager determines that a particular use, event, or activity which is for a permit period of no more than one day does not present a substantial or significant public liability or property damage exposure for the City or its officers,

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Packet Pg. 234 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 21 agents, employees, or volunteers, the Risk Manager may give a written waiver of the insurance requirements of this Section.

4.68.130 Community event Event temporary signage.

Temporary or non-permanent sign(s) identifying or pertaining to the community event Community Event may be installed by the permit holder, or designee, within the event site as defined in the community event Community Event permit. At events on the City beach or at City parks, the logo of a commercial sponsor or vendor may be included on a small area of the temporary sign, not to exceed one square foot or five percent of the banner area, whichever is smaller, provided said sign(s) are internally oriented to the extent possible. At other event sites, the logo shall not exceed thirty percent of the banner area, provided the sign(s) are internally oriented to the extent possible. The logo of tobacco sponsors shall be prohibited.

Directional signs for walks, and races, and Open Street Events may be installed by the permit holder, or designee, provided that each sign is less than two square feet in size, attached to a street light or other utility pole at a height of between five and six feet without damaging the finish of the pole, placed without obstructing or obscuring other signage or traffic control devices, and installed less than two hours prior to the start of the event and removed within one hour of the completion of the event. A plan showing the type and location of the proposed directional signs must be submitted as part of the community event Community Event permit application and be approved by the City. The City may remove signs

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Packet Pg. 235 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 22 that do not meet the installation and removal requirements of this Section and shall charge the permittee for the cost of this removal.

4.68.140 Departmental service charge.
(a) In addition to the payment of any applicable non-refundable permit application fee and administrative fee, and as detailed in the administrative guidelines adopted pursuant to this Chapter, all permittees shall pay the City for City departmental service charges incurred in connection with or due to the permittee’s activities under the permit.
(b) City departments shall submit the final invoices and billings for department charges to the permittee no later than ten working days after the expiration date of the permit.
(c) A permittee who claims an inability to pay department service charges due to indigency may have these charges waived in accordance with administrative regulations or guidelines adopted pursuant to this Chapter.

Application for indigent status shall be made at the time of permit application and shall be accompanied by such relevant information and documentation as may, in the opinion of the City Manager or designee, be reasonably necessary to verify such status. For purposes of this Section 4.68.140, “indigent natural person” means:
(1) A person who is receiving benefits pursuant to the Supplemental Security Income (SSI) and State Supplemental Payments (SSP) programs (Sections 12200 to 12205, inclusive, of the California Welfare and

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Packet Pg. 236 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 23 Institutions Code), the California Work Opportunity and Responsibility to Kids Act (CalWORKs) program (Chapter 2, commencing with Section 11200 of Part 3 of Division 9 of the California Welfare and Institutions Code), the Food Stamp program (7 U.S.C. Section 2011 et seq.) or Section 17000 of the Welfare and Institutions Code;
(2) A person whose monthly income is one hundred twenty-five percent or less of the current monthly poverty line annually established by the Secretary of Health and Human Services pursuant to the Omnibus Budget Reconciliation Act of 1981, as amended.
(d) An organization in which a majority of the members meet the criteria for indigent status, as established in subsection (c) of this Section, may also be eligible for waiver of department service charges.
(e) No permittee shall be required to provide for or pay for the cost of public safety personnel to provide for the protection of a community event Community Event and its attendees from hostile members of the public or counterdemonstrations or for general law enforcement in the vicinity of the event

4.68.150 Parades, marches, processions, walks. Routes.
(a) Subject to the requirements of this Chapter, a community event Community Event permit may be issued for a march, procession, walk, or parade in one direction only on the following streets:
(1) Ocean Avenue, between Adelaide Drive (northwest City limits) and Pico Boulevard;

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Packet Pg. 237 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 24 (2) Commencing on Ocean Avenue at the intersection of Adelaide Drive (northwest City limits) and continuing south on Ocean Avenue to the intersection of Colorado Avenue, turning easterly on Colorado Avenue to the intersection of Main Street, turning southerly on Main Street, ending at the intersection of Main Street and Pico Boulevard;
(3) Commencing on Main Street, south of the intersection of Olympic Drive, and continuing south on Main Street to the intersection of Marine Street, turning westerly on Marine Street to the intersection of Barnard Way, turning northerly on Barnard Way, ending at the entrance to Parking Lot 5 South;
(4) Commencing on Barnard Way, south of the entrance to Parking Lot 5 South, continuing southerly on Barnard Way to the intersection of Marine Street, continuing easterly on Marine Street to the intersection of Main Street, turning northerly on Main Street, continuing north on Main Street, ending at the intersection of Olympic Drive; and (5) Main Street, between Olympic Drive and Marine Street (adjacent to the southern City limits).
(b) Minor adjustments to the routes established in subsection (a) of this Section may be authorized by the Community Events Committee to the extent necessary to avoid construction or other obstructions that would prevent the parade from proceeding on the established route.

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Packet Pg. 238 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 25 (c) Subject to all other applicable requirements of this Chapter, this Section does not prohibit the issuance of a community event Community Event permit for marches or processions on other streets so long as through and crosstraffic can be preserved and the safety of the marchers participants can be maintained.
(d) Marches, parades, walks, and processions may not be conducted on streets classified by the City as arterial streets between the hours of seven a.m. to nine a.m. and three-thirty p.m. to seven p.m. on business days unless the march or procession is being conducted to coincide with another event, not organized or planned by the permittee, which is occurring on or adjacent to the arterial street upon which the march will be conducted.

4.68.160 Athletic events.

The procedures and criteria for conducting races/runs shall be as follows:
(a) There shall be one ten-kilometer route, and two five-kilometer routes, and one marathon route segment;
(1) The ten-kilometer route (10K Ocean Route) begins at Beach Park No. 1 (Barnard Way at Ocean Park Boulevard) and continues south to Barnard Way, follows the bend to go east on Marine Street, north on Main Street, west on Colorado Avenue, north on Ocean Avenue, east on San Vicente Boulevard to 14th Street where participants will turn around and go west on San Vicente Boulevard, south on Ocean Avenue to end at the 1500 block of Ocean Avenue (before the entrance to the Pier ramp).

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Packet Pg. 239 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 26 (2) The first five-kilometer route (5K North City Route) begins at Seventh Street and California Avenue, west on California Avenue to Ocean Avenue, north on Ocean Avenue to San Vicente Boulevard, east on San Vicente Boulevard to Seventh Street, south on Seventh Street to Georgina Avenue, west on Georgina Avenue to Fourth Street, south on Fourth Street to California Avenue, east on California Avenue to Seventh Street. (3) The second five-kilometer route (5K Ocean Route) begins at Beach Park No. 1 (Barnard Way at Ocean Park Boulevard) and continues south on Barnard Way, follows the bend to go east on Marine Street, north on Main Street, west on Colorado Avenue, north on Ocean Avenue to the 1000 block where participants will turn around and continue south on Ocean Avenue to end at the 1500 block of Ocean Avenue (before the entrance to the Pier ramp).
(4) The marathon route segment begins on San Vicente Boulevard at Twenty-Sixth Street (the City limits) and continues west on San Vicente to Ocean Avenue and south on Ocean Avenue to end at the 1500 block of Ocean Avenue (before the entrance to the Pier ramp).
(b) 5K North City Route races may only occur on Saturday mornings from seven-thirty a.m. until eleven a.m.
(c) 5K Ocean Route and 10K Ocean Route races may only occur on Saturday and Sunday mornings from seven-thirty a.m. until eleven a.m.

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Packet Pg. 240 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 27 (d) There shall be no more than a total of three 5K and/or 10K races per year in the City regardless of route, with one of these races occurring in May, and two in September, October, or November separated by at least seven weeks. The use of both the 5K and 10K Ocean Routes on the same day by the same organizer with simultaneous or staggered starts shall be considered as one race. (e) The marathon route segment shall be limited to the completion of marathon races that are regional in scope (involve a course that runs through multiple jurisdictions), attract elite and international runners, receive extensive national and international media exposure, and are undertaken by a marathon entity with the demonstrated capability to organize and operate a large, successful marathon including sufficient funding to finance the costs incurred in organizing and holding the marathon and sufficient staffing to ensure its safe and efficient operation.

Preference shall also be given to applicants proposing recurring marathons traditionally or historically associated with a particular day or dates. The marathon may only occur on Sunday from six a.m. until six p.m. There shall only be one marathon per year that utilizes the marathon route segment. (fe) With the exception of one 5K race on the Saturday following Thanksgiving Day using the 5K North City Route, there shall be no races on holidays or holiday weekends including Memorial Day and the preceding weekend, Labor Day and the preceding weekend, and Thanksgiving Day and the subsequent weekend including the Friday following Thanksgiving Day. (gf) No vehicular races shall be permitted.

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Packet Pg. 241 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 28 (hg) Events which include multiple modes of travel (e.g., running and bicycling) shall be permitted so long as the start times for different modes of travel are staggered.
(ih) Prior to the issuance of a community event Community Event permit, City staff shall determine the specific portions or lanes of the roadway that may be used by the participants. This determination shall be based on safety considerations and the preservation of access to businesses and other scheduled activities along the route.
(ji) In addition to the routes established by subsection (a) of this Section, races/runs may be permitted on other streets in the City so long as the majority of the race/run occurs outside of the City and that portion of the race/run within the City does not exceed one-half mile in length. Races permitted pursuant to this subsection shall not be subject to the time/frequency requirements established in subsections (b) and (c) of this Section.

4.68.170 Display of community event Community Event permit.

A copy of the community event Community Event permit shall be displayed at the community event Community Event site and shall be exhibited upon demand of any City official.

4.68.180 Use of City name or logo without authorization.

It shall be unlawful for the permittee conducting a community event Community Event to use the words “the City of Santa Monica” or “City of Santa Monica,” to suggest or indicate that the event is sponsored by the City or to use a

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Packet Pg. 242 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 29 facsimile of the seal or logo of the City of Santa Monica in the promotional materials or advertising for the event without the City’s authorization.

4.68.190 Neighborhood street events. Block Parties and Open Street Events. (a) Pursuant to California Vehicle Code Section 2110(e), the City Manager has authority to order the temporary closure of a portion of any street when, in the opinion of the City Manager, the closing is necessary for the safety and protection of persons who are to use the portion of the street during the temporary closing. (b) Block Party street closure. Requests for a permit to utilize a street for a residential block party shall be made by filing an application for a “permit to close a public street” with the Transportation Engineering Group Department of Transportation. The applicant must be a resident living on or a business located on the street. The applicant must include a petition in favor of the event signed by twothirds 51% of residents and/or businesses on both sides of the street to be closed.

Only a street classified by the City in its Land Use and Circulation Element as a “neighborhood" street “Neighborhood Street,” “Shared Street,” or “Avenue:

Industrial” may be utilized for a block party Block Party. Block Parties do not need to obtain a Community Event Permit.
(c) Date, time, and location restrictions for Open Street Events. (1) Any street may be considered for closure for an Open Street Event, except “Neighborhood Streets,” “Shared Streets,” or “Avenue:Industrial,” which may be closed pursuant to subsection (b). City staff will determine if the proposed street closure may be permitted, or if an

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Packet Pg. 243 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 30 alternative route must be considered. This determination will be based upon the proposal’s impact on City services, staffing resources, emergency service delivery, transit service interruption, traffic congestion, and neighborhood and commercial impacts.
(2) Open Street Events shall be allowed only on Friday, Saturday, Sunday, and Monday if it is a holiday, except as limited by this section. Open Street Events are not allowed on Memorial Day, July Fourth, Labor Day, Thanksgiving, or Christmas Day.
(3) No permit shall be issued for an Open Street Event requiring a street closure for a period of more than two consecutive days. Additional time for setup or breakdown may be approved at the discretion of the City. (4) The City Manager shall set by administrative regulation the number of open streets events that may be permitted each calendar year. (d) Neighborhood notification for Open Street Events.
(1) The permittee must notify all residents, property owners, managers, or lessees in the closure area of the date, time, location, and purpose of the closure. This notification may be accomplished by distributing flyers, door hangers, or circulating the petition required by Section

4.68.050(b)(2) of this Chapter. Flyers may not be placed in mailboxes unless they include paid postage and are delivered by the USPS. Notification shall be completed at least 10 days prior to the event.

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Packet Pg. 244 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 31 (2) The permittee may also notify residents via email and/or community meetings, but such notification shall not take the place of the notification required in subsection (d)(1).
(3) The permittee must provide and post signs announcing the street closure consistent with the approved traffic plan. The signs shall be posted at least 24 hours prior to the event. The permittee must remove and dispose of signs properly upon completion of the event or expiration of the permit, whichever comes first. The City may remove signs that do not meet the installation and removal requirements of this Section and shall charge the permittee for the cost of this removal.
(e) Approval criteria for Open Street Events. In addition to the Criteria in

4.68.060, the Community Events Committee may take the following into account in awarding a Community Event Permit to an Open Street Event:
(1) The event shall not exceed any occupant load that may be determined by the Fire Department.
(2) Appropriate access for emergency personnel. Fire Department and Police Department must approve a scaled site map that includes the placement of all event equipment, vehicles, fire hydrants, tents, and canopies.

Emergency vehicle access (20 feet wide and 13.5 feet high) must be maintained throughout the event.

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Packet Pg. 245 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 32 (3) The Department of Transportation determines the closing of the street will not unduly impede, obstruct, or interfere with the operation of the City and regional bus transportation systems.
(4) The closure will not result in a clear, identifiable, and substantial detriment to the public health, safety, or welfare.
(f) The permittee is responsible for providing and placing all barricades to close the street, in accordance with the approved traffic plan.

Requests for a permit to utilize a neighborhood street for a non-moving event that will be widely-publicized and open to participants other than the residents of the street shall be made by filing a community event permit application with the Community Events Office in addition to a permit to close a public street. The applicant must be a resident living on or a business located on the street and the applicant must include a petition in favor of the event signed by two-thirds of residents and businesses on both sides of the street to be closed.

The application to utilize a neighborhood street will be subject to such additional rules and regulations adopted by City staff to ensure that the street closure will not be detrimental to the public health, safety, or welfare.

4.68.200 Administrative regulations.

The City Manager, or designee, shall adopt administrative regulations that are consistent with and that further the terms and requirements set forth within this Chapter. All such administrative regulations must be in writing.

4.68.210 Other permits and licenses and compliance with all laws.

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Packet Pg. 246 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 33 (a) The issuance of a community events permit does not relieve any person from the obligation to obtain any other permit or license required pursuant to this Code, or any other local, state, or federal law or regulation. (b) Community Events shall comply with all local, state, and federal laws and regulations.
(c) It shall be unlawful for any person to sponsor or conduct a Community Event requiring a Community Event Permit unless a permit has been issued for the event. It is unlawful for any person to participate in such an event with knowledge the sponsor of the event has not been issued the required permit. (d) A Community Event Permit authorizes the permittee to conduct only the event described in the permit, and in accordance with the terms and conditions of the permit. It is unlawful for the permittee to willfully violate the terms and conditions of the permit, or for any event participant with knowledge thereof, to willfully violate the terms and conditions of the permit.

4.68.220 Penalties
Any person who intentionally violates any of the provisions of this Chapter shall be guilty of a misdemeanor. The provisions of this Chapter may also be enforced through the issuance of administrative citations and the imposition of administrative fines pursuant to Chapter 1.09 of this Code.

SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such

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Packet Pg. 247 Attachment: Attachment A: Open Streets SR 04-25-2023 10C (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to 34 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

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

SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. Pursuant to Sections 615 and 619 of the City Charter, for reasons stated in the above recitals, the City Council declares this ordinance to be necessary as an emergency measure for preserving the public peace, health, and safety, with the result that this ordinance shall be introduced and adopted at the same meeting, shall become effective immediately upon its adoption.

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

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NVESTMENT
WEEK
2024
NW

THE FUT

URE ISOCEAN AVENUE, SANTA
MONICACAOCT14, 2024

SANTAMONICA

INNOVATIONHUB

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NVESTMENTWEEK24+LATECHWEEK 5.E.b
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NVESTMENT
WEEK
2024
Aone-of-a-kind1daystreetclosureLATechWeekeventonOceanAve celebratinginnovation, entrepreneurship, technology, andinvestment opportunities. Engagewithindustryleaders, visionaryentrepreneurs, and innovative startups who are driving change and shaping the future across various sectors. With networking mixers, startup showcases, culture, music, art & entertainment overlooking the picture perfect beach-front landscape. INVESTMENT WEEK 24 + LA TECH WEEK 2024© INTR ODUCTION2

SANTAMONICA

INNOVATIONHUB

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NOVATION
STARTSHERE! ! 2
024©INTRODUCTION3

STARTUPSTARTER&CITYOFSANTAMONICA
INVESTMENTWEEK24+LATECHWEEK 5.E.b
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HNOLOGYHUB

VENDORS&STARTUPS

MUSIC,ART&ENTERTAINMENT

COMMUNITYEXPERIENCE&STREETCLOSURE

LOCALBUSINESSESCOMETOGETHER
2DAYSOFCULTURE&COMMUNITY 1DAY 1DESTINATION& WORLDCLASSINNOVATIONS INVESTMENTWEEK24+LATECHWEEK2024©EXPERIENCE4

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HSTARTUPS

AI&MACHINE LEARNING

GAMING&INTERACTIVE SOFTWAREDEVELOPMENT&
SAAS

HEALTHCARE&WELLNESS
ACCELERATORS&VENTURECAPITAL INVESTMENT WEEK 24 + LA TECH WEEK 2024© INDUSTR IES5

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YTHENUMBERS
65K+1M+
12K+30%

SUBSCRIBERSEMAILSSENTEVERYMONTH

AWARDSREGISTEREDVOTERSNEWSLETTEROPENRATE
2000+165+

PROJECTEDATTENDENCECOMPANIESREPRESENTED
100+

INDUSTRYLEADINGENTREPRENEURS
10M+

COMBINEDSOCIALMEDIAREACH
INVESTMENTWEEK24+LATECHWEEK2024©DISTRIBUTION6

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TARTUPSTARTERAUDIENCE 81%

AUDIENCEHOLDPOSITIONS

ATC-LEVEL, DIRECTORORPRESIDENT
58%
MALE
7%

INDUSTRY
19%
74%

INVESTORS

ENTREPRENEURS
42%
FEMALE
INVESTMENTWEEK24+LATECHWEEK2024©AUDIENCE7

5.E.b
Packet Pg. 256 Attachment: Santa Monica Innovaton Hub 2024 Overview (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to Authorize DES

TINATION

SANTAMONICA
SunnysouthernCaliforniasetsthestageforaworld-class
productionspanningmultipledaysofimmersiveexhibitions, workshops, world class entrepreneurs & investors, product launches, demos, music and entertainment experiences. INVESTMENT WEEK 24 + LA TECH WEEK 2024©LOCATION8

5.E.b
Packet Pg. 257 Attachment: Santa Monica Innovaton Hub 2024 Overview (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to Authorize P
ARTNERSHIPS9 ENHANCINGINNOVATION Santa Monica stands as Southern California's premier technology innovation hub, attracting next-generation entrepreneurs eager to launch startups. In the heart of Silicon Beach, its strategic positioning fosters a dynamic ecosystem ripe for innovation. Entrepreneurs benefit from a supportive community, accessing top-tier talent, a wealth of resources and state-of- the-art startup accelerators. With its unbeatable combination of coastal charm, entrepreneurial spirit, and tech-friendly infrastructure, Santa Monica offers an unparalleled environment for startups to thrive, innovate, and succeed. Welcome to the epicenter of creativity and opportunity on the West Coast. StartupStarter, the City of Santa Monica & DTSM’s LA TECH WEEK event provides valuable opportunities to engage with tens of thousands of affluent participants & readers of Investment Week & LA Tech Week. Sign up early to take advantage of months of marketing designed to demonstrate your expertise, showcase & tell your brand’s story while gaining exposure through multiple campaigns pre and post-event. NEWSLETTER WEBSITE EDITORIAL PODCASTS VIDEO ONSITEINVESTMENTWEEK24+LATECHWEEK2024© 5.E.b Packet Pg. 258 Attachment: Santa Monica Innovaton Hub 2024 Overview (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to Authorize P

ARTICIPATION
OPPORTUNITES. STARTUPSTARTER Lorel Scott Co-Founder & COO [email protected] GET IN TOUCH DISCLOSURE: The materials
containedinthispresentationaredesignedfor
thesoleusebytheoriginalrequestororseniormanagementof
theclientandsolelyforthelimitedpurposesdescribedinthe
presentation. Thematerialsshallnotbecopiedorgiventoany
personorentityotherthantheclientwithouttheprior
writtenconsentofStartupStarter, Inc. Thesematerialsserve onlyasthefocusfordiscussion; theyareincompletewithout
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andclaimsitmayhaveatanytimeagainstStartupStarter, Inc. with regard to the services, this presentation, or other materials, including the accuracy or completeness thereof. Receipt and review of this document shall be deemed agreement with and consideration for the foregoing.

5.E.b
Packet Pg. 259 Attachment: Santa Monica Innovaton Hub 2024 Overview (6411 : Memorandum of Understanding for the Santa Monica Innovation Hub to Authorize

5.E.c
Packet Pg. 260 Attachment: Santa Monica Innovation Hub - Site Map (6411 : Memorandum of Understanding for the Santa Monica City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.F
1 of 4
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Facilities Maintenance Subject: Award Agreement with Cosco Fire Protection for Citywide Fire Alarm and Sprinkler Services
Recommended Action
Staff recommends that the City Council:

1. Award Bid #4481 to Cosco Fire Protection for fire protection services for various City locations as required by the Public Works Department;

2. Authorize the City Manager to negotiate and execute an agreement with Cosco Fire Protection, in an amount not to exceed $1,837,428 for five-years, with future year funding contingent on Council budget approval; and

3. Adopt a finding of categorical exemptions pursuant to Section 15301, and Section 15302 of the California Environmental Quality Act (CEQA) Guidelines.

Summary
The City is required to properly maintain and repair fire alarms and fire sprinklers at various city owned facilities through preventative maintenance schedules. To fulfill these maintenance schedules, the City utilizes fire systems testing, repair and modification services that require specialized equipment, contractor licensing, and technical expertise that cannot be provided by City staff. Staff solicits the services of a fire protection corporation to ensure that inspections, maintenance repair to fire sprinkler systems, fire alarm systems, and associated equipment are compliant and properly maintained.

Staff recommends executing an agreement with Cosco Fire Protection to maintain and repair the City’s fire sprinkler and alarm systems per bid #4481, for a total amount not to exceed $1,837,428 over a five-year period. The requested total amount includes routine preventative maintenance, as-needed repairs, modifications, and new installations.

5.F
Packet Pg. 261
2 of 4
Discussion
The Public Works Department oversees the fire prevention inspection and testing services to fire sprinkler systems and fire alarm systems at various City owned facilities such as the Santa Monica Municipal Airport, Annenberg Beach House, Public Safety Facility, City Hall campus, City Yards, Fire Stations, Libraries, and the Pier.

Citywide fire alarms and fire sprinklers receive routine preventative maintenance to ensure that they are compliant with the State Fire Code. Proper maintenance and repair of these fire prevention systems is necessary for the preservation of life and safety.

These services require specialized skills and training that in-house City staff do not possess. Staff seeks Council approval to award a contract to provide fire prevention systems maintenance and repair services and to address any necessary system replacements anticipated during the term of the contract due to the age of the current equipment.

Vendor Selection
Bidder Recommendation
Best Bidder Cosco Fire Protection
Evaluation Criteria Bid evaluated on years of experience, pricing, renewal options, and requested
increases
Municipal Code SMMC 2.24.180
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
02/28/2024 City's
Online
Bidding Site
Santa Monica Daily Press 19 03/29/2024
Submittals Received
Vendor First Year Preventative Maintenance Amount
Affordable Fire Services $94,050
Cosco Fire Protection $64,890
Tri-Signal $92,923

5.F
Packet Pg. 262
3 of 4
Best Bidder Justification
Staff determined Cosco Fire Protection as the best bidder based on the following criteria: 1) general fire protection maintenance and repair services experience, 2) pricing, and 3) requested increases for renewal options. Cosco Fire Protection has satisfactorily delivered fire protection maintenance and repair services to municipal entities for over six decades which is two decades more than the other vendors combined. The company has large, long-term fire protection accounts with the County of Ventura, City of Moreno Valley, and Riverside County.

Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 and 15302 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure would be located in the same site as the structure replaced and would have substantially the same purpose and capacity as the structure replaced. The agreement would provide fire alarm and fire sprinkler maintenance and repair for existing city facilities, and therefore, it has been determined that the agreement for fire alarms and sprinklers is categorically exempt pursuant to Section 15301 and Section 15302 of the CEQA Guidelines. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this agreement.

Financial Impacts and Budget Actions
Staff seeks authority to award an agreement with Cosco Fire Protection for citywide contracted fire testing and repair services. Funds are available within existing budget and would be charged to the appropriate division or project account based on usage.

Future year funding is contingent on Council budget approval.

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Packet Pg. 263
4 of 4
Contract Request
FY 2024-25 Request
Amount Future Years
Amount Dept Account # Total Contract Amount
$364,890 $1,472,538 Various Accounts $1,837,428
Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Oaks Initiative Form - Cosco Fire Protection Services B. Levine Act Disclosure Form - Cosco Fire Protection Services

5.F
Packet Pg. 264

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.F.a
Packet Pg. 265 Attachment: Oaks Initiative Form - Cosco Fire Protection Services (6412 : Award Agreement for Citywide Fire Alarm and Sprinkler 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 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. 266 Attachment: Oaks Initiative Form - Cosco Fire Protection Services (6412 : Award Agreement for Citywide Fire Alarm and Sprinkler Services) 
 










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5.F.b
Packet Pg. 267 Attachment: Levine Act Disclosure Form - Cosco Fire Protection Services (6412 : Award Agreement for Citywide Fire Alarm and Sprinkler 
 







 
   




 


  
 
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03/29/2024
Sima Patel Administrative Assistant
Cosco Fire Protection, Inc.

5.F.b
Packet Pg. 268 Attachment: Levine Act Disclosure Form - Cosco Fire Protection Services (6412 : Award Agreement for Citywide Fire Alarm and Sprinkler City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.G
1 of 6
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Request for Proposal of a Professional Services Agreement with Rising Realty Partners for Property Management of Bergamot Station Arts Center
Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 407 to Rising Realty Partners for property management services for the Community Development Department; and

3. Authorize the City Manager to negotiate and execute an agreement with Rising Realty Partners, in an amount not to exceed $667,500 including a $60,800 contingency for three years, with two-additional one-year renewal options in the amount of $479,200 on the same terms and conditions for a total amount not to exceed $1,146,700 over a five-year period, with future year funding contingent on Council budget approval.

Summary
Bergamot Station Arts Center, located at 2525 Michigan Avenue (Bergamot), is a cityowned property and one of Santa Monica’s most prominent cultural arts assets. Redcar LTD (Redcar), Bergamot’s property management firm since 2022, notified the City that it is ending its agreement with the City. Therefore, following a competitive Request for Proposal (RFP) process, staff seeks Council authorization to enter into a Contractual Services Agreement (Agreement) with Rising Realty Partners (Rising) for up to five years for Bergamot property management services.

5.G
Packet Pg. 269
2 of 6
Discussion
Bergamot is approximately five acres, consists of five buildings totaling approximately 64,000 square feet, and is leased to 30 for-profit and non-profit galleries, creative uses, and a restaurant. Bergamot is currently fully leased.

The City purchased Bergamot in 1989 with transit funds and with the goal that the site could serve future transit needs, including providing a revenue source for the Department of Transportation (DOT). In 2013, Bergamot was designated as a Conservation - Arts Center District in the Bergamot Area Plan to help protect and preserve cultural uses and provide an affordable safe haven for the arts in Santa Monica. In 2016, the E Line light rail project was completed, including the Bergamot Station / 26th Street Light Rail Station that is adjacent to Bergamot at the corner of 26th Street and Olympic Boulevard.

On June 13, 2017, Council authorized the City Manager to negotiate and execute an interim master ground lease for Bergamot with Worthe Real Estate Group (Worthe).

The Worthe interim master ground lease expired in 2021 along with property management services when Worthe opted not to renew its master ground lease.

On February 8, 2022, Council authorized the City Manager to negotiate and execute an agreement for property management services for Bergamot with Redcar. In February 2024, Redcar notified the City of Redcar’s intention to end its agreement. Redcar has agreed to maintain services for Bergamot through July 2024 while the City transitions property management services to a new firm.

The City’s Economic Development Division worked closely with Finance’s Procurement Team to issue a request for proposals for property management services at Bergamot.

The RFP was issued in April 2024 and included a mandatory site visit for prospective operators to tour the property. The evaluation panel, overseen by Procurement, met in early June to review the three qualifying proposals and made a recommendation.

5.G
Packet Pg. 270
3 of 6
The City’s goal is to expeditiously retain the best qualified property management firm to manage the operational needs of this creative arts complex.

Bidder Recommendation
Best Qualified
Person/Firm
Rising Realty Partners
Evaluation Criteria Value Added / Breadth of Service
Cost of Services
Experience / Technical Competence
Plan and Approach
Stability and References
Municipal Code SMMC 2.24.180
RFPs Received
Barrister Executive Suites Clear Blue Commercial Rising Realty Partners RFP Data
Posted On Posted On Advertised In (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
4/4/2024 City's Online
Bidding Site Santa Monica Daily Press 29 5/6/2024
Justification to Award
The proposals were reviewed by an evaluation panel consisting of three industry professionals. Evaluation was based on the following evaluation criteria: value added / breadth of service; cost of services; experience / technical competence; plan and approach; and stability and references. Based on these criteria, the evaluation panel unanimously recommended Rising, and staff recommends Rising as the best qualified team to property manage Bergamot. Rising’s portfolio demonstrates experience with gallery and creative art space, and management of properties owned by public agencies and in Santa Monica. Since 2012, Rising has managed 6.4 million square feet of privately- and publicly-owned real estate including gallery and creative use space.

Rising proposes property management fee of $6,000 per month and management staff salary reimbursement at $9,500 per month - the most competitive of all proposed fees.

At capacity, Bergamot generates approximately $142,000 monthly in rent with common area maintenance (CAM) fees paid by the tenants to fund CAM expenses. From this revenue source, $54,089 per month is remitted to the DOT as a condition of the original Purchase and Sale Agreement. The balance would fund operating expenses, including

5.G
Packet Pg. 271
4 of 6
and not limited to on-going maintenance, property management, accounting, and administrative fees. Net operating income is reinvested into Bergamot to fund capital improvements and arts center programming.

Rising proposes property management fee at $6,000 per month and management staff salary reimbursement at $9,500 per month. Staff estimates up to $230,000 in property management fees per annum in the first three years of operation with future increases at three percent (3%) annually. Rising’s estimated fee is approximately 155% greater than Redcar’s current property management fees.

Estimated Fee
Description Year 1 Year 2 Year 3
Management Fee $186,000 $192,000 $197,800
Pass-Through
Expenses*
$10,000 $10,300 $10,600
Sub-Total $196,000 $202,300 $208,400
10% Contingency $19,600 $20,300 $20,900
Total Not to Exceed $215,600 $222,600 $229,300
* Expenses include bank fees, property management software subscription, accounting, etc.

Estimated fee rounded to the nearest 00’s.

With Council authorization, staff would work with Rising to schedule a meet-and-greet with Bergamot tenants and to refine a schedule of services. Staff anticipates the Agreement with Rising would commence around August 1, 2024, to coincide with Redcar’s exit.

Past Council Actions
Meeting Date Description
June 13, 2017 1. Provide conceptual direction
regarding a preliminary plan for
revitalization of the City-owned
Bergamot Station Arts Center (Arts

5.G
Packet Pg. 272
5 of 6
Center);

2. Authorize the City Manager to
negotiate an extension of the
exclusive negotiating agreement with
the Worthe Group for a period of three
years, with two, one-year options;

3. Authorize the City Manager to
negotiate and execute an interim,
master ground lease with the Worthe
Group, for a period of three years, with
two, one-year options, pursuant to: (a)
the terms included in the staff report,
including that existing tenants would
face lease rate increases no greater
than the consumer price index during
the interim period, in order to ensure
stability while future plans are
developed, and (b) development of an
arts center management plan in
collaboration with the Arts
Commission, as further discussed in
the staff report.

February 8, 2022 1. Award RFP# 303 to Redcar
Properties LTD for property
management services for the Commun
ity Development Department;

2. Authorize the City Manager to
negotiate and execute an agreement
with Redcar Properties LTD, for a
management fee of up to $90,000 per
annum for two years, three additional
one-year renewal options, for a
total amount not to exceed
$450,000 and future year funding
contingent on Council budget
approval.

Environmental Review
The Agreement is exempt from CEQA 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.”

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The Agreement would provide property management services and 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. Rising as property manager would be responsible for collection of rent and payment of all management, operational, and capital improvement expenses directly to vendors, subject to City approval; remit monthly rent to the DOT Fund; and provide the City with monthly expenditure reports. Until this transition, Redcar would continue to provide property management services. Operational funds would be held in a Rising / City joint account overseen by the City and subject to annual audits. Monthly revenues of $54,089 to DOT would be deposited into account 60600002.415950.

Prepared By: Beth Rolandson, Administrative Services Officer Approved Forwarded to Council
Attachments:

A. OAKS_INITIATIVE_FORM
B. Levine_Act_Disclosure_Form
C. 20170613
D. 20220208

5.G
Packet Pg. 274

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.a
Packet Pg. 275 Attachment: OAKS_INITIATIVE_FORM (6413 : Approval of a Professional Services Agreement with Rising Realty Partners for Bergamot)

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 # ___________________________ Kayce Hawk

5.G.a
Packet Pg. 276 Attachment: OAKS_INITIATIVE_FORM (6413 : Approval of a Professional Services Agreement with Rising Realty Partners for Bergamot) 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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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.

Kayce Hawk

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Report
City Council Meeting: June 13, 2017
Agenda Item: 8.A
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic Development Division
Subject: Bergamot Station Arts Center
Recommended Action
Staff recommends that the City Council:

1. Provide conceptual direction regarding a preliminary plan for revitalization of the City-owned Bergamot Station Arts Center (Arts Center);

2. Authorize the City Manager to negotiate an extension of the exclusive negotiating agreement with the Worthe Group for a period of three years, with two, one-year options;

3. Authorize the City Manager to negotiate and execute an interim, master ground lease with the Worthe Group, for a period of three years, with two, one-year options, pursuant to: (a) the terms included in the staff report, including that existing tenants would face lease rate increases no greater than the consumer price index during the interim period, in order to ensure stability while future plans are developed, and (b) development of an arts center management plan in collaboration with the Arts Commission, as further discussed in the staff report.

Executive Summary
The future of Bergamot Station, one of Santa Monica’s most prominent arts assets, has been the subject of lengthy discussion, particularly in the context of the long-anticipated arrival of a regional light-rail station last year. With the expiration of the current master lease on December 31, 2017 and the completion of the work of the Bergamot Advisory Committee, staff seeks Council direction regarding a preliminary plan for the Arts Center advanced by the Worthe Real Estate Group development team (Worthe Group), pursuant to Council’s guidelines and input from the Advisory Committee. Staff recommends extending the exclusive negotiating agreement with the Worthe Group for three years with two, one-year options to accommodate an entitlement process for development consistent with the preliminary plan for the site. During that time, an arts center management plan (as recommended by the Arts Commission) would be developed to ensure the area fully realizes its potential as a community cultural asset.

Additionally, staff seeks authorization to enter into an interim, master ground lease with the Worthe Group for a period of three years with two, one-year options to commence on January 1, 2018, pursuant to parameters identified in the staff report, including that existing tenants would be offered leases with annual increases of no more than the increase in the consumer price index for up to three years.

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Background
Bergamot Station Arts Center at 2525 Michigan Avenue consists of City-owned land and private land. The City-owned land (Site) was purchased in 1989 with transit funds with the goal of serving future transit needs in Santa Monica, including providing a source of revenue for the Big Blue Bus (BBB). It was anticipated that the Site would be reserved for future transportation-related development adjacent to a future light-rail transit stop, but the timing for development of the light-rail line and station adjacent to the Site was speculative at the time the Site was acquired and for many years thereafter.

The Site consists of approximately five acres with five buildings totaling approximately 62,000 square feet of total building space that is subleased to approximately 27 small, creative tenants, including art galleries, designers, a nonprofit theatre company, and a café. The space was master-leased to Wayne Blank, who spearheaded its creation (along with the adjacent private land he owned) into a unique constellation of private art galleries and related arts uses, including a theater and formerly an arts museum. The City currently receives $552,553 annually in ground rent. The master lease has had relatively short terms since its initiation as the Los Angeles County Metropolitan Transportation Authority (Metro) developed and implemented plans for light-rail service to Santa Monica along the adjacent rail right-of-way. Construction of Metro’s Exposition light-rail line (Expo) ultimately required a portion of the Site to be sold to Metro.

The remainder of the Site remained subject to the master lease, which expires on December 31, 2017.

The Bergamot Station Arts Center complex also includes approximately 1.3 acres of privately owned adjacent land with approximately 30,000 square feet of building space that houses approximately ten galleries and other creative businesses. The private portion was owned and managed by Wayne Blank, who holds the master lease to the City-owned portion of the Arts Center. Mr. Blank sold the property in December 2016.

The Site and building layout, as well as adjacent properties, are shown in Illustration 1 below.

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Illustration 1 – Aerial Site Plan
The Bergamot Area Plan governs the privately owned and publically owned portions of the Arts Center. In 2011, in anticipation of the opening of the Expo line and a light-rail station located immediately adjacent to the Arts Center, the City began planning for the Art Center’s future as part of the Bergamot Area Plan process. Council adopted the Bergamot Area Plan in 2013. It designates the Site as a Conservation Arts Center Zone with a total floor-to-area-ratio (FAR) of 1.0, or one times the parcel size as the total permitted amount of development, reflecting the lowest allowed commercial density in Santa Monica.

The Site is both highly strategic and highly sensitive for the future of both transportation and local culture – as well as the fiscal sustainability of Big Blue Bus in a time of dynamic change in transit economics. While some advocate for no changes to the current status quo, the opening of Expo, the sale of the adjacent, privately owned portion of Bergamot Station Arts Center, ongoing changes in the fine-art business, and the closing of the Santa Monica Museum of Art all point to the need to plan for the future vitality of Bergamot Station. Pursuant to Council direction, the City issued a request for qualifications for revitalization of the Site in July 2012, followed by a request for proposals (RFP) in February 2013. The RFP included eight goals for the Site, which

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were adopted as policy goals in the Bergamot Area Plan and further endorsed by Council on March 20, 2012 (Attachment A) for guiding Bergamot’s future development.

The eight policy goals for the revitalization of the Site were as follows:

1. Include at least 75,000 square feet of arts-related space (equivalent to the artsrelated square footage currently on-site at that time) that is affordable to nonprofit cultural arts organizations and for-profit art galleries, with emphasis on retaining existing Bergamot Station Arts Center tenants.

2. Include open space, infrastructure, and other amenities to support public access to the light-rail station as well as improving the environment and functionality of the Site.

3. Maximize the preservation of existing buildings, where feasible. Retaining the character of the Arts Center is very important to the community and City.

4. Incorporate additional uses, which support the Site as a cultural destination, including evening and weekend activation, and uses that help generate revenue for the development. These uses should include a hotel, restaurant/bar, shared community meeting room/performance space and could include creative office and cultural uses that will maximize market opportunities and create a vibrant development.

5. Consider the LUCE (Land Use Circulation Element) parking approaches and shared parking opportunities.

6. Produce ground lease payments for the City. It is the expectation that the lease rates will be based upon fair market values taking into consideration the other development objectives.

7. Exemplify exceptional architecture and sustainable design and construction as well as have a focused, transit-oriented development approach to design, site layout, and view corridors.

8. Exemplify the concepts identified in the Bergamot Area Plan process.

Three proposals were submitted in response to the RFP. On September 9, 2014, Council selected the Worthe Group as the City’s development partner and authorized staff to enter into exclusive negotiations as well as directed staff to form a community advisory committee to help refine the conceptual plan for the Site (Attachment B).

Council did not adopt the Worthe Group’s original development proposal. The City entered into an exclusive negotiation agreement (ENA) with the Worthe Group on April 30, 2015, that is set to expire on August 30, 2017. A full record of the RFQ/RFP process and associated documents are available at the project website:
www.smgov.net/Bergamot.

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Bergamot Station Advisory Committee and Guidelines
To advise on future planning for the Site, on February 10, 2015, Council approved the creation of an eleven-member Bergamot Advisory Committee (Attachment C), which was composed of representatives of the Bergamot Station Gallery and Cultural Association, Santa Monica Neighborhood Council, Arts Commission, Chamber of Commerce, and Santa Monica Travel and Tourism (Attachment D). Also at the February 10, 2015 meeting, Council adopted a set of six guidelines for the revitalization of the City-owned Bergamot Station Arts Center property and defined the role of the Bergamot Advisory Committee (Advisory Committee). The guidelines were consistent with the project goals included in the RFP and vision of the Site as outlined in the Bergamot Area Plan. The six guidelines adopted by Council to direct the work of the Advisory Committee were as follows:

1. The project shall seek to minimize displacement and disruption to the fine art galleries and other creative businesses on the Site.

2. The project shall incorporate space for additional nonprofit cultural uses.

3. The project shall support the Expo Station and bus integration through amenities and services, including consideration of facilities such as public restrooms.

4. The project shall incorporate a permanent home for a museum or other significant cultural institution that can demonstrate the ability to finance tenant improvements and ongoing operations while providing a cultural experience that benefits the Santa Monica community.

5. The Site has customarily generated $622,000 of annual ground rent. The project shall maintain and increase that ground rent amount over time in order to provide a consistent revenue source for the Big Blue Bus (BBB).

6. The project shall generate additional municipal revenues that could be used to supplement BBB funds.

Bergamot Station Advisory Committee Process and Recommendations The Advisory Committee held its inaugural meeting on April 15, 2015, and met monthly for a year to provide recommendations regarding the preliminary plan for the revitalization of the Arts Center, working within the Council guidelines for the Site.

The meetings were open to the public and conducted under Brown Act open-meeting requirements. The Housing and Economic Development Department provided staff support to the Advisory Committee and the Worthe Group attended all meetings and

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participated throughout the process. Meeting agendas, minutes, audio recordings, and presentations were made available on the project website: www.smgov.net/Bergamot.

The Advisory Committee received presentations and diligently reviewed relevant background information on various topics such as the Bergamot Area Plan, current uses at the Arts Center, current and proposed BBB and Expo services to the Site, amenities for transit users, and the City Yards Master Plan and proposed shared-parking structure. The Advisory Committee also sought input from Wayne Blank, founder of Bergamot Station Arts Center, and invited input from individual Bergamot tenants to understand the elements that help make Bergamot special, as well as the on-going facility and operational requirements to continue to support a vibrant arts center.

Based on the review of background information, the Advisory Committee asked the Worthe Group to review and explain the mix of uses of the original proposal.

The original proposal that the Worthe Group submitted in response to the City’s RFP served as a baseline for the Advisory Committee’s initial review, in order to understand the rationale for the mix of uses and proposed square footage attributed to each use, as well as the economics of the proposal. The Advisory Committee also reviewed and commented on key deliverables for the implementation and management of the Arts Center in order to address issues such as construction phasing, parking management, urban design, site management, infrastructure, overall Site improvements, and an artscenter management plan.

The Advisory Committee discussed and adopted formal recommendations regarding each type of use and the associated amount of building square footage, building height, and general locations on the Site. In response to the Advisory Committee’s feedback and recommendations, the Worthe Group revised and updated the preliminary plan, acknowledging that revitalization of the Arts Center would need to be built in phases to minimize disruption to and displacement of the existing tenants. The Advisory Committee also determined that off-site parking would need to be constructed before significant revitalization could occur. The opportunity to develop a shared parking structure at the City Yards was identified as critical to the Art Center revitalization.

The Advisory Committee agreed with the need for offsite parking to replace the existing

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surface parking at the Site in order to create attractive, flexible open space at the Site to support art events, public art, outdoor dining, and public gathering space. The Public Works Department has incorporated the Art Center’s parking need and shared parking structure concept into the City Yards master planning process.

The Advisory Committee was unable to reach consensus on the inclusion of a hotel within the mix of uses at the Arts Center and a majority of Advisory Committee members (six of eleven total) ultimately voted against inclusion of a hotel in the project.

In addition to its review of uses and locations, the committee evaluated the financial projections of the original proposal and revised plan. To facilitate the Advisory Committee’s efforts, staff produced a matrix of the Arts Center key deliverables and the Advisory Committee comments and motions made at each meeting (Attachment E).

Discussion
Following the completion of the Advisory Committee’s work, staff requested that the Worthe Team update the preliminary plan and financial projections based on the recommendations of the Advisory Committee. The Worthe Group’s revised preliminary plan addresses most of the Advisory Committee’s recommendations regarding uses and square footage, while preserving four of the five buildings (Buildings A, B, E, and F). However, the Worthe Group’s revised preliminary plan includes a hotel, which is described further in the report. The preliminary plan proposes six new buildings (Buildings C, D, G, H, I, and M) providing additional space for galleries and nonprofit cultural uses, a museum, a community center, restaurant/café space, and creative office space, as well as a hotel that would include additional space for galleries and restaurant/café uses. Removal of the on-site surface parking would create over three acres of flexible open space for cultural events, community programming, and use by the public and tenants.

Table 1 below outlines the types of uses, associated square footage of each plan, and compares the Worthe Group’s original proposal responding to the City’s RFP, the Advisory Committee’s recommendations, and the Worthe Group’s revised plan based on the Advisory Committee process.

Table 1 – Uses and Square Feet Summary

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Use Worthe Original
Proposal (SF)
Advisory Committee
Recommendations
(SF)
Revised Preliminary
Plan, including hotel
(SF)
Museum 21,100 21,100
9,000 above grade
12,100 below grade
21,100
9,000 above grade
12,100 below grade
Gallery, Nonprofit,
and Cultural Uses
61,600 65,700 65,700
Creative Office 44,000 30,000 30,000
Restaurant and Cafe 7,000 7,000 7,000
Community Space 2,000 4,000 4,000
Arts-Related Uses n/a 9,000 9,000
Bike Center 4,600 600 600
Hotel Total SF
- stories
- rooms
- gallery
- food and beverage
80,000
- 7-story
- 120 rooms
- 3,000 SF
- 2,000 SF
None 82,600
- 7-story
- 120 rooms
- 3,000 SF
- 2,000 SF
Buildings Preserved 4 5 4
T Building
Use Not Identified
NA 11,214 NA
Total SF
(above grade)
220,300 136,514 207,900
Total Floor-to Area
Ratio (FAR)
.98 .61 .93

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The revised preliminary plan for the Site is shown in Illustration 2 below, which denotes the location of uses and number of floors for each building in the massing site plan.

Following the massing site plan illustration is a discussion of each type of use included in the revised preliminary plan for the Site, as well as a description of the Advisory Committee’s review and recommendations.

Illustration 2 – Revised Preliminary Plan
Museum Space – Building M
The Worthe Group originally proposed the museum space to be located immediately adjacent to the Expo Station in a newly constructed 21,100-square-foot, twostory building. Based on the Advisory Committee’s review and recommendation, the museum concept was revised to be composed of two buildings above ground totaling 9,000 square feet with an additional 12,100 square feet of below-grade space to

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connect the two buildings above ground. The Advisory Committee felt that a single, two-story building as originally proposed might create a visual and physical barrier between the Expo Station and the Site. During the review process, the committee recommended that the building include a minimum 1,000 square feet (up to 2,000 square feet) of food- service space for coffee and carry-out food options to serve museum patrons, Expo riders, area workers, and local residents. Pursuant to zoning ordinance standards, below-grade museum space would not count towards the project’s floor-to-area ratio.

Gallery and Nonprofit Cultural Uses – Buildings A, B, C, D, E and F The Advisory Committee evaluated the amount of existing building space at the Arts Center utilized by gallery and cultural uses, as well as what the Worthe Group originally proposed. The committee initially recommended that a minimum of 61,600 square feet be dedicated to galleries and nonprofit cultural uses, excluding the museum. Later in the process, the committee recommended increasing the amount to 65,700 square feet and that two separate, 3,000-square-foot spaces for nonprofit performing arts uses be a part of the Arts Center. The committee further recommended that City Garage, the nonprofit theatre group that is currently located at the Arts Center, be prioritized for one of the two performing arts spaces. The committee also recommended that priority of leasing opportunities be offered to existing tenants of the Site first, followed by tenants of the privately owned portion of Bergamot Station when space is available. As the conceptual site plan was revised, the gallery and nonprofit cultural uses were designated to be located in the existing buildings on the Site (Buildings A, B, E and F) as well as in the ground floor of two of the new buildings proposed on the Site (Buildings C and D).

Creative Office – Building C
The proposed creative office space provides a revenue stream to help subsidize the museum, gallery, and nonprofit cultural spaces at the Arts Center and helps support the ground-lease payment to the BBB. The Worthe Group’s original proposal included 44,000 square feet of creative office space in two new buildings of two stories in height located at the southeast corner of the Site adjacent to City Yards and Agensys.

The Advisory Committee recommended that the amount of office space be reduced by

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14,000 square feet to a total of 30,000 square feet and be located in only one new building (Building C). To maximize the open space and prioritize the art uses throughout the Site, the Advisory Committee recommended that the office use be located in the two upper floors of Building C with the 15,000 square feet on the ground floor committed to gallery and nonprofit cultural uses.

Restaurant and Café Spaces – Buildings G and M
The Advisory Committee recommended that the proposed enclosed restaurant and café space of 5,000 square feet be located in the center of the Site in a new structure (Building G) with the benefit of outdoor dining space in order to help activate the Arts Center. The committee further recommended that up to 2,000 square feet of “grab-n-go” café and coffee bar space be located in the museum building (Illustration 2), with the understanding that outdoor dining space would not count toward the project’s floor-toarea ratio.

Community Center with Adjacent Open Space – Building I
The Advisory Committee advocated for increasing the amount of building space dedicated for community space from the originally proposed 2,000 square feet to 4,000 square feet in a new structure (Building I). The revised preliminary plan includes a centrally located community center with connecting open space of up to 10,000 square feet to allow for a fluid connection of indoor/outdoor activities, including community art exhibits, workshops, film and music events, and other events for the community. The community center is proposed for the center of the Site, adjacent to the restaurant, in order to serve as an overflow food venue for larger-scale events when needed.

Arts-Related Uses – Building D
The Advisory Committee recommended that the originally proposed creative office building be redesigned into two new structures (Buildings C and D) and that Building D be focused on arts-related uses instead of creative office. The Advisory Committee endorsed Building D for market-rate arts-related uses on the second floor, totaling 9,000 square feet, with the ground floor’s 9,000 square feet dedicated to gallery and nonprofit cultural uses of which 4,100 square feet be at market rate with the remainder of the gallery and nonprofit cultural space be provided at below market rate.

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Bike Center
The Worthe Group’s original proposal included a 4,600-square-foot bike center to be located in the center of the Site. The Advisory Committee expressed concerns regarding the proposed location, size, potential demand and prospective users.

The Advisory Committee ultimately recommended a bike center of 600 square feet to be located in the shared parking structure or toward the south side of the Site near Michigan Avenue.

Hotel – Building H
The Bergamot Area Plan identifies preferred use concepts for the Arts Center, which includes a hotel with a restaurant or café that could serve as an amenity for the Arts Center and larger Bergamot Area and help activate the Arts Center beyond standard gallery operating hours. The hotel would also provide an economic benefit to the City/BBB, even though the expected ground lease revenue would be constrained due to the limited allowed FAR and the large amount of subsidized uses planned for the Site.

The preferred concept suggests a location at the western edge of the Site adjacent to 26th Street. The RFQ/RFP issued for the Arts Center referenced the preferred use concepts, including the hotel, which was part of all three proposals submitted for revitalization of the Site. The Worthe Group’s original proposal included a seven-story, 120-room, art-centric boutique hotel in the range of 80,000 to 83,000 square feet that included a roof-top bar, restaurant, conference room, and ground-floor art uses with subterranean parking spaces to serve the hotel guests and employees. The hotel’s height was originally proposed at 86 feet, the maximum permitted height under the Bergamot Area Plan.

The Advisory Committee spent several meetings reviewing the original proposed hotel use and related financial projections and asked the Worthe Group to evaluate the financial feasibility of a reduced-scale hotel of 80 rooms and 4 to 5 stories. In response, the Worthe Group analyzed a smaller hotel concept and determined that a hotel under 100 rooms would not be economically viable to operate or finance within the overall project, the limited market of hotel brands that service less than 100-room hotels and

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the inefficiencies of operating a hotel of that size. Advisory Committee member Richard Peterson who was with the Santa Monica Travel and Tourism organization at the time acknowledged to the committee that this was his understanding of hotel operations as well. However, the Worthe Group presented a reduced hotel concept of six stories, 100 rooms with 70,800 square feet of building area at a height between 65 feet to 75 feet.

The Advisory Committee approved the 100-room, six-story hotel use as presented with the understanding that it would be classified as a Tier 2 project within the zoning policies of the Bergamot Area Plan. The proposed location of the hotel was located on the west side of the Site adjacent to 26th Street in the location of the existing T Building.

At the following Advisory Committee meeting, the committee rescinded their previous approval upon confirming with staff that the 100-room, six-story hotel concept of 65-75 feet would be classified as a Tier 3 development under the Bergamot Area Plan because it would exceed the 60-foot height limit for Tier 2 projects. The Worthe Group and Advisory Committee evaluated a five-story hotel with a 100 rooms, but both parties agreed that expanding the footprint of the hotel to achieve a 5-story concept with 100 rooms was too impactful to the Site’s open space and view corridor. A majority of the Advisory Committee members ultimately voted against a 65- to 75-foot hotel at the Site.

A majority of the Advisory Committee had concerns regarding the hotel based primarily on the following three elements:
 that hotel construction would have severe impacts on the Arts Center businesses and operations,
 that the hotel would not be synergistic with the Arts Center, and  that the proposed height of six to seven stories would overshadow and be out of scale with the Site.

A minority of Advisory Committee members (five of the eleven members) supported the hotel, noting the additional services and economic benefits the hotel would bring to the project, including unionized jobs for local residents, transient occupancy tax revenue to support City and BBB operations, additional dining and nightlife amenities for nearby residents and workers, synergies with Art Center uses including additional gallery and event space, and proximity to the Expo station to serve transit users.

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Both hotel concepts (a six-story, 100-room project or seven-story, 120-room project) evaluated included 2,000 square feet of restaurant space and 3,000 square feet of gallery or event space, resulting in a modest increase in both uses on the Site.

If the hotel or an alternative use/building for the proposed location is not included in the Art Center’s preliminary plan, the T Building and its approximately 11,214 square feet of the building space would be retained. The Advisory Committee did not evaluate or recommend a use for the T Building space, though staff assumes that the space would continue to be made available for gallery and nonprofit cultural uses.

Building Preservation
The Advisory Committee’s recommendations preserves five buildings (approximately 52,900 square feet of existing building space) on the Site, recognizing that the existing A Building would be partially demolished by approximately half to accommodate the new C Building. The Worthe Group’s revised preliminary plan would require demolition of the T Building to accommodate the proposed hotel, in which case four buildings (approximately 41,700 square feet of existing building space) would be retained.

Open Space and Parking
The Site has abundant open space which serves the Art Center as a surface parking lot currently. The Advisory Committee recommended that the surface parking be retained until replacement parking is built off site, with the exception of implementing modest landscaping, open space, or other site modifications. Additionally, the committee recommended that the Worthe Group reserve as much peripheral surface parking onsite as needed for the existing galleries and nonprofit cultural uses to conduct business.

The Worthe Group proposes to provide the code-required amount of parking for the Arts Center in the proposed shared City Yards Parking Garage, while maintaining a limited amount of on-site surface parking for disabled parking and loading requirements. The Worthe Group would be obligated to finance or lease the Arts Center parking in the proposed shared City Yards Parking Garage. Once the off-site, replacement parking is constructed, the reclaimed open space that totals over three acres, is envisioned to be

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integrated into the overall Site as a public gathering space that can used for a wide range of art, cultural, and community events.

Advisory Committee’s Report
The Advisory Committee concluded its efforts by adopting a Bergamot Advisory Committee Recommendation Report that summarizes the committee’s review, financial projections, and recommendations, as well as positions of the minority vote.

The Bergamot Advisory Committee’s report was provided to Council on May 17, 2016 (Attachment F) and posted on the project website (www.smgov.net/Bergamot).

The Advisory Committee also made recommendations addressing key project deliverables such as parking management, construction phasing, infrastructure and site improvements, and the Arts Center management plan.

If Council authorizes continuing forward with a preliminary plan, the Worthe Group would be required to prepare architectural plans, finalize financial pro-forma analysis, and prepare related key project deliverables, which would be incorporated into the development agreement and ground-lease contracts.

Economic and Fiscal Impacts
Recognizing the overall duration of the project to date, starting with the initial qualification submissions in 2012 through the Advisory Committee review process in 2015/2016, staff requested that the Worthe Group update its financial pro-forma for the revised preliminary plan based on current costs and rental rates. The City’s financial consultant, Keyser Marston Associates, Inc. (KMA), reviewed the updated financial proformas, analyzed whether the preliminary uses could support the proposed groundlease payments and construction costs, and estimated the amount of public revenues that the City would receive annually from revitalization of the Site.

Project Pro-forma
When the Advisory Committee conducted their review of the Worthe Group’s concept plans, the financial estimates were based on the original proposal’s cost estimates from 2013. Construction and financing costs have been updated by the Worthe Group and are incorporated in an updated financial pro-forma (Attachment G). The estimated

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construction costs for the revised preliminary plan without the hotel have increased by approximately 11 percent (from $22.2 million in total hard and soft costs to $24.6 million) and the updated pro-formas now include the combined possessory interest and property tax expenses that the plan is expected to incur. The rental revenue cash flows were also updated to reflect the below-market rents the Art Center tenants currently pay adjusted for consumer price index, and the phasing of the plan.

The revitalization of the Arts Center requires significant financial investment in order to upgrade the Site’s infrastructure and existing buildings, and to construct the new improvements and a shared parking structure. The total estimated costs of the revised preliminary plans are $39.6 million for the plan that does not include a hotel and $95.1 million for the plan that includes a 120-room hotel. Using Worthe’s assumptions, staff asked KMA to model the cost to construct a 100-room hotel, which KMA estimated at $85.7 million.

Net cash flow from the plan without a hotel before consideration of debt service and return on capital is estimated to be approximately $2.2 million in the first year of full build-out and approximately $6.4 million in the first year of full build-out for the plan with a 120-room hotel. Net cash flow is expected to grow over time as revenues grow.

When debt service and return on capital are considered, the plan without a hotel is not expected to repay the capital investors until 2058. The plan with a hotel is not expected to repay the capital investors until 2045. Assuming a 55-year ground lease, the net present value of the net cash flow after debt service and repayment of capital, assuming a 10 percent discount rate, is $4.5 million for the plan without a hotel and $25.8 million for the plan with a hotel. The net present value provides a means to estimate the Worthe Group’s estimated profit over the life of the ground lease.

It should be noted that the financial pro-formas are preliminary, order-of-magnitude estimates used to test the feasibility of the land-use scenarios. If the plan moves forward, KMA would complete a detailed financial evaluation of the plan as it is further defined. During the preliminary phase, staff asked KMA to provide initial feedback on the Worthe Group’s pro-forma. KMA comments include:

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 The loan-to-capital ratio of 65 percent is low compared to most commercial developments, which typically leverage a greater amount of debt. The Worthe Group has responded that they are able to attract a greater amount of capital to their plans.
 The net developer profit is low compared to the overall size of the development. The Worthe Group has responded that they are able to accept lower overall returns because of their long-term investment horizon.
 The time period for repayment of the initial capital investment is extremely long, particularly in the scenario without a hotel. The Worthe Group has responded that their investors are accustomed to longer windows of return on investment, though they acknowledge that the extended time period for the plan without a hotel would face greater challenges in attracting capital.
 Based on the Worthe Group’s Operating Pro-forma and Cash Flow Projections, KMA confirmed that the Worthe Group has the capacity and access to capital to finance the different preliminary plan uses being considered.

While the City could take the position that financing is purely a developer’s risk, if the Worthe Group is unable to attract debt and capital financing, revitalization of the Arts Center might be delayed.

In addition, the Worthe Group’s pro-forma assumes that the developer would construct and operate a shared parking structure at the City Yards. Staff believes the concept requires significant further discussion and negotiation between the City and the Worthe Group if the plan moves forward.

Estimated Public Revenues
Attachment H identifies estimated annual City revenues of the revised preliminary plan.

As noted in Attachment H and highlighted in Table 2 below, the annual City revenues from a preliminary plan without a hotel would generate approximate $1.3 million in annual City revenue. Annual City revenues from a preliminary plan that includes a 120- room hotel use is approximately $2.9 million. KMA estimated the annual City revenues from a hypothetical 100-room hotel at approximately $2.6 million. The most notable difference among the scenarios are the estimated property tax and transient occupancy tax revenues related to a hotel.

Table 2 - Annual Estimated Revenue to the City

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Revenue Source No Hotel 100-Room Hotel 120-Room Hotel
Ground Lease Payment $700,000 $700,000 $700,000
Transit Occupancy Tax $0 $1,226,000 $1,472,000
City Share of Property Taxes $55,000 $119,000 $132,000
Total Estimated Tax Revenue
to City’s General Fund
$640,000 $1,933,000 $2,195,000
Total Overall Estimated
Public Revenues
$1,340,000 $2,633,000 $2,895,000
Lastly, the Worthe Group has committed to a minimum ground rent of $700,000 under each scenario; however, annual ground rent payments are typically equal to a percentage of the supportable land value. If the plan moves forward, KMA would develop a detailed evaluation of the refined plan and its financial pro-forma, in order to support negotiation of a ground-lease structure and profit-sharing opportunities associated with the market-rate uses.

Market-Rate Uses and Below-Market-Rate Use
An early policy direction that was included in the RFQ/RFP was the intent of preserving gallery and nonprofit cultural uses at the Arts Center. The City envisioned that the rental rates for cultural uses would be provided at below-market rates, with the recognition that nonprofit arts and cultural space would be discounted at a higher rate than for-profit gallery space. Likewise, it was envisioned that the Site would accommodate market-rate uses such as creative office, restaurants, and a hotel to help offset the below-market rents of the art spaces. The Worthe Group has maintained these lease rate expectations in their financial pro-forma analysis that they have produced throughout the process. The Advisory Committee recommendation limits the market-rate uses on the Site to 31 percent of the total building square footage, with the remaining 69 percent of the building space at below-market rates. The revised plan by the Worthe Group that includes a 120-room hotel adjusts the balance of building space to 43 percent

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subsidized space and 57 percent market-rate use. KMA notes that a balance, at a minimum closer to a 50/50 split of below-market and market-rate uses would be more sustainable for the plan by providing more reliable and diverse long-term income to support the below-market uses. A hotel could also support the Art Center tenants by providing a regular stream of visitors to the Site, including supporting restaurants that could incorporate evening service beyond typical gallery hours.

Council Guidelines
The Advisory Committee was thoughtful in considering the Council’s guidelines in their recommendations regarding the preliminary plan and mix of uses. The following section briefly discussed each of the Council’s guidelines for the revitalization of the Arts Center with respect to the Advisory Committee’s recommendations.

Minimize displacement and disruption to the fine art galleries and other creative businesses on the Site – Retention of existing Bergamot tenants is a priority shared by all participants. The Advisory Committee’s recommendations related to phased construction, temporary relocation options, leasing priority for displaced tenants, off-site parking, and outreach and signage during construction all speak to minimizing impacts on existing tenants. A majority of the Committee also voted against inclusion of a hotel on the Site, which would further minimize disruption, and likely continue to make Building T available for existing creative tenants.

Incorporate space for additional nonprofit arts and cultural uses - The Advisory Committee’s recommendations would allocate the amount of space available for nonprofit arts and cultural uses by up to 65,700 square feet. If Building T were retained as cultural-focused space, an additional 11,214 square feet could be available for nonprofit cultural uses.

Support the Expo Station and bus integration through amenities and services (e.g. public restroom, bike center) – The Advisory Committee envisioned the museum and adjoining café as a prominent gateway, helping to visually promote and integrate the Arts Center with the Expo Bergamot Station. Although reduced in size from the

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original Worthe Group proposal, the Advisory Committee also recommended a bike center of 600 square feet in the preliminary plan.

Add a permanent home for a museum or other significant cultural institution – The Advisory Committee recommended a 21,100-square-foot museum building adjacent to the Expo station.

Generate a minimum of $622,000/year ground lease payment, to be increased over time as a revenue source for Big Blue Bus – The Developer has proposed to set the annual ground rent at $700,000 for each of the three plan scenarios. However, these amounts may be revised up or down based upon further feasibility testing once a more detailed development program is approved.

Generate additional municipal revenues that could be used to supplement Big Blue Bus funds. – The role of the Site as a BBB revenue-producing asset adds additional complexity to the overall plan. BBB’s revenues come from a variety of sources, including federal, state, and regional funds, farebox revenue, advertising, and real estate income. When Council voted to increased BBB fares in 2010, Council recognized that higher bus fares have a disproportionate impact on transit-dependent riders who are often at the lowest end of the economic spectrum. Recognizing the impacts, Council directed staff to explore opportunities to maximize returns on BBB real estate in order to reduce pressure on bus fares.

Bergamot Station represents one of BBB’s primary real estate holdings. If the City’s overriding goal were to maximize ground rent in order to reduce pressure on the BBB fares, significant ground rents could flow to the BBB from a long-term re-positioning of the property. For example, the Papermate site, directly across Olympic Boulevard from the Arts Center, sold in 2015 for a reported price of over $500 per square foot of building area and nearly $400 per square foot of land area. The Arts Center is arguably comparable in terms of location, and if maximizing its value was an overriding priority, it could be expected to command annual rents of several million dollars per year.

Given that the BBB’s total passenger revenue is projected to be approximately $11

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million in FY 2017/2018, generating several million dollars per year from the Arts Center site could dramatically reduce pressure on bus fares. However, because the regulations and plans for the Arts Center envision a low floor-to-area ratio and many subsidized tenants, the expected ground rent to the BBB is not expected to increase significantly.

Not including the ground lease payment, a plan without a hotel is expected to generate approximately $640,000 annually in additional City revenues, relative to current City revenues of approximately $180,000 generated by the Site. With the inclusion of a hotel, the plan is projected to generate between $1.9 million (100-room hotel) and $2.2 million (120-room hotel) annually in revenue to the City’s General Fund. The primary drivers of the increased revenues is Transient Occupancy Tax (with a hotel), supplemented by additional property taxes, and sales taxes. Attachment H provides a summary of expected municipal revenues under the three scenarios.

Additional municipal revenue derived from the Bergamot Arts Center would go to the City’s General Fund, though Council could choose to allocate some or all of the increased revenue to support the BBB, given the low ground-rents that are expected to accrue to the BBB. The additional Bergamot ground rent revenue, coupled with any additional public revenues earmarked to the BBB, could help to reduce pressure on bus fares, as the BBB grapples with the cost increases that are similar to those facing the City generally (pension costs, workers compensation, health care), as well as revenue impacts related to regional and national declines in bus ridership. Understanding that the Council has consistently reinforced that revenues from the Site should be used to keep fares low for Santa Monica residents and BBB customers, and that BBB has one of the lowest transit fares in the county, additional Site revenue could help BBB reduce pressure on fare increases. As a result, the City’s choices regarding the project are expected to affect bus fares for BBB customers in the long run.

Alternatives for the Site
Council could consider alternative approaches to the preliminary plan. Council could direct the Worthe Group to pursue incorporation of either a 100-room, six-story hotel or a 120-room, seven-story hotel. If Council does not support a hotel use on the Site, staff

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requests that Council provide direction on the desired use(s) for the T building (as either gallery, nonprofit arts use, cultural; restaurant/café or creative office) or if another use/building for the location be considered.

Additional alternatives for Council consideration include retaining the existing uses, buildings, and conditions on the Site, including the surface parking and allowing the ENA with the Worthe Group to expire, though this approach would not address many of the guidelines established for the Site. Council could also direct staff to prepare a new RFP with revised project goals and directives, if the proposed preliminary plan is not deemed acceptable. The approach would delay implementation of many of the guidelines, as well as extending uncertainties as to the City’s plans for the Site, which could cause further concern to the current tenants and disruption to the on-going operations of the Arts Center.

Exclusive Negotiating Agreement (ENA)
The ENA between the City and the Worthe Group expires on August 31, 2017.

If Council is supportive of proceeding with the revitalization of the Arts Center and continuing to partner with the Worthe Group, staff recommends Council authorize an extension to the ENA. The recommended extension is for a term of three years with two, one-year options conditioned upon the Worthe Group working in good faith to implement the revised preliminary plan selected by Council. This extension time period will allow the Worthe Group to continue their efforts to obtain the necessary land use entitlements and approvals. There is no cost to either the City or the Worthe Group in extending the ENA.

Interim Property Management
The Master Lease Agreement with Bergamot Station Ltd. expires on December 31, 2017, at which time the existing tenants’ subleases and parking agreements on the Site will expire as they run concurrent with the master lease. Staff has identified four potential options for interim management or ground leasing for Council consideration.

1. If Council decides to proceed with revitalization of the Arts Center and continue to partner with the Worthe Group, then the City could enter into an interim master lease with the Worthe Group to oversee the management of the Site until land-use entitlements are in place and a long-term ground lease is executed. This approach would provide the Worthe Group with an

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opportunity to begin working with the Arts Center tenants in advance of any significant revitalization.

2. The City could extend the current lease with Mr. Blank (Bergamot Station Ltd.) during the interim, which could enable continuation of some of the existing arrangements, such as parking agreements with Agensys and the owner of the privately owned portion of the Arts Center.

3. The City could act a direct lessor, with individual leases with each tenant and overall property management responsibility. Because staff does not have capacity or expertise in providing direct property management, a property management contract would be necessary. However, such an approach is not recommended because City oversight of leasing responsibilities could have negative consequences for the Arts Center, as each lease would be subject to the competitive public procurement process. When vacancies occur, re-leasing could be significantly delayed, potentially creating extended vacancies that detract from the vitality of the Arts Center.

4. Select a third-party, interim ground lessee who could manage the property and take responsibility for leasing. Staff does not recommend such an approach as completing the process of procuring a ground lessee, as well as executing a ground lease, could extend beyond expiration of the current ground lease and create further uncertainty among Arts Center tenants.

If Council approves the extension of the ENA with the Worthe Group, staff recommends that the City enter into an interim ground lease with the Worthe Group pursuant to the following parameters:

A. The term of the interim ground lease should be three years with two, one-year options at the City’s sole discretion.

A revitalization plan could be expected to undergo environmental review, obtain entitlements, and enter into a long-term ground lease with the City over a two to four-year period. The interim ground lease would spell out what occurs until construction begins. If the environmental review or entitlement period is extended beyond the three-year period, the ground lease options could be exercised.

B. During the term of the interim ground lease, sublease rents may increase by no more than the Consumer Price Index.

Many Arts Center tenants’ continued viability is a concern if their subleases are subject to significant rent increases. The proposed parameter is designed to ensure rent stability.

C. Ground rent to the BBB would increase each year by the Consumer Price Index.

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The proposed parameter would ensure that ground rent for BBB keeps pace with inflation during the interim.

D. To the extent that rental income exceeds operating costs, ground rent, and a fair return to the ground lessee, excess operating income would be invested in Site improvements and building repair and restoration.

Arts Center tenants and patrons have noted a variety of building and Site improvements and other infrastructure that are in need of upgrades. The proposed parameter would ensure that excess income would be invested in the Site.

Commission Action
Staff presented the preliminary plan, associated analysis, and interim site management options to the Arts Commission on April 17, 2017. Approximately 30 members of the public attended, including former members of the Bergamot Advisory Committee and Bergamot tenants. The commission had a variety of questions regarding the plan concepts and process going forward with particular concern raised about protecting the art uses at the Site. The Arts Commission met again on May 15, 2017 to develop their recommendations, with input from the Arts Commission’s Bergamot Ad Hoc Committee, which is comprised of five members of the Arts Commission. Seventeen members of the public attended the meeting, including Bergamot tenants, City staff and the developer’s team. The Arts Commission reviewed and discussed the Bergamot Ad Hoc Committee’s recommendations, which formed the Commission’s recommendations to Council.

The Arts Commission recommended that the ENA with the Worthe Group be extended for three years and that the Worthe Group be selected as the interim ground lessee.

The Commission also recommended a variety of leasing policies for the Site during the interim management of the Arts Center. The Commission has committed to develop an arts management plan for the Arts Center with the assistance of a newly formed Arts Center management committee (Arts Management Committee) in which representatives comprised of Bergamot tenants and community representatives would be represented, following the form and guidelines established for the Public Art Committee of the Arts

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Commission. The Arts Management Committee would prepare a draft arts management plan within twelve months to address curation of arts programming, guidelines for tenancy selection, and preserving the art uses and architectural character of Bergamot.

The Committee would report back to the Arts Commission to recommend an Arts Management Plan to Council. The Arts Commission incorporated their overall recommendations in a memo (Attachment I).

In addition, the Worthe Group submitted a letter to the Arts Commission (Attachment J) in which Worthe proposes to form a non-profit organization to implement the Arts Center Management Plan. The organization would be funded by the Worthe Group annually by $270,000 with additional annual fundraising efforts. The non-profit organization would have a board comprised of representatives of the Arts Commission, the Worthe Group, and community members to advise the organization’s staff who would be responsible for community programming, oversee an artist residency program and other programs, coordination of gallery openings and Arts Center events, and assisting with tenant selection.

Environmental Analysis
If a preliminary plan moves forward into entitlements and ground-lease negotiations, environmental analysis pursuant to the California Environmental Quality Act (CEQA) will be necessary. Providing conceptual direction regarding a preliminary plan is exempt from CEQA.

Next Steps
If Council provides direction to move forward with a preliminary plan and approves extending the ENA, the Worthe Group would prepare conceptual plans and a development agreement application, solicit additional community feedback, and provide float-up presentations to the Architectural Review Board and Planning Commission.

Following the Planning Commission float-up, the project would return to the Council for conceptual approval of initial business terms regarding the lease of the property and authorization to enter into development agreement negotiations. With Council direction, staff would then prepare environmental analysis and negotiate a development agreement and a disposition and development agreement. The project would proceed in

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tandem with the City Yards Master Plan process in regards to negotiating the terms of the parking arrangement within a shared parking structure, and the two efforts would continue to be coordinated.

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

Prepared By: Jason Harris, Economic Development Manager Approved Forwarded to Council
Attachments:

A. March 20, 2012 City Council Staff Report
B. September 9, 2014 City Council Staff Report
C. February 10, 2015 City Council Staff Report
D. List of Bergamot Advisory Committee Members
E. Key Deliverable Chart per Flipchart Notes FINAL
F. Bergamot Advisory Committee Recommendation Report
G. Worthe Group Revised Financials
H. Bergamot Public Revenues

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I. Arts Commission Bergamot Recommendations
J. Worthe Group Letter to SM Arts Commission re Arts Management Plan K. Written Comments
L. Powerpoint

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Report
City Council Meeting: February 8, 2022
Agenda Item: 3.A
1 of 5
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Award Request for Proposal to Redcar Properties LTD and Authorize City Manager to Execute Contract for Property Management for Bergamot Station Arts Center
Recommended Action

1. Award RFP# 303 to Redcar Properties LTD for property management services for the Community Development Department;

2. Authorize the City Manager to negotiate and execute an agreement with Redcar Properties LTD, for a management fee of up to $90,000 per annum for two years, three additional one-year renewal options, for a total amount not to exceed $450,000 and future year funding contingent on Council budget approval.

Summary
Bergamot Station Arts Center (Bergamot), one of Santa Monica’s most prominent cultural arts assets includes a five-acre City-owned property. With the expiration of the Worthe Real Estate Group (Worthe) master ground lease in 2021, staff seeks Council authorization to enter into a professional services agreement for property management services with Redcar Properties LTD (Redcar) for up to five years at Bergamot property.

During that time, staff would seek Council direction regarding future redevelopment plans for Bergamot.

Discussion
Bergamot, located at 2525 Michigan Avenue, consists of City-owned and privatelyowned properties. The City-owned Bergamot property (Site) consists of five buildings totaling approximately 62,000 square feet that is leased to 30 galleries, creative tenants, a nonprofit theatre company, and a café at full lease up.

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The City purchased the Site in 1989 with transit funds with the goal the site could serve future transit needs, including providing a revenue source for the Department of Transportation (DOT). In 2013, the Site was designated as a Conservation - Arts Center District in the Bergamot Area Plan to help protect and preserve cultural uses at the Site and provide an affordable safe haven for the arts in Santa Monica. In 2016, the Expo Light Rail project was completed, including the Bergamot Station / 26th Street Light Rail Station that is adjacent to Bergamot at the corner of 26th Street and Olympic Boulevard.

The Bergamot complex also includes approximately 1.3 acres of privately-owned adjacent property with approximately 30,000 square feet of building space that houses galleries, other creative businesses, and a restaurant. The privately-owned portion is owned and managed by Redcar. The Site and building layout, as well as adjacent properties, are shown in the following Illustration 1.

Illustration 1 – Aerial Plan

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On June 13, 2017, Council authorized the City Manager to negotiate and execute an interim master ground lease for the Site with Worthe in anticipation of the Bergamot Station Arts Center redevelopment project and an Exclusive Negotiation Agreement (ENA) between Worthe and the City. The interim master ground lease granted Worthe exclusive use of the Site including property management responsibilities. The ENA and master ground lease expired in 2021 along with property management services when Worthe opted not to renew its master ground lease. Worthe has agreed to maintain only property management services for the Site through March 2022 while the City transitions property management services to a new property management firm.

The City’s goal is to expeditiously retain the best qualified property management firm to manage the operational needs of a creative arts complex.

Bidder Recommendation
Best Qualified Person/Firm Redcar Properties Ltd
Evaluation Criteria Experience / technical competence, conceptual plan and approach, quality control, cost of services, and stability and references.

Municipal Code SMMC 2.24.190
RFPs Received
Clear Blue Commercial Fertig and Gordon Companies Redcar Properties Ltd Rising Realty Partners Varsobia Property Management
and Realty Services, LLC
n/a
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
11/16/2021 City's Online
Bidding Site Santa Monica Daily Press 18 12/14/2021
Justification to Award
The proposals were reviewed by a selection panel consisting of staff from Cultural Affairs, Economic Development, and a representative of the Bergamot Station Arts Center Tenants Association. Evaluation was based on the following selection criteria:
experience / technical competence; conceptual plan and approach; quality control; cost of services; and operational stability and references. Based on these criteria, the selection panel unanimously voted for Redcar Properties LTD, and staff recommends Redcar as the best qualified team to property manage the Site. Redcar’s portfolio

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demonstrates vast experience with managing properties in Santa Monica and at Bergamot in particular. Since 2017, Redcar has owned and managed the privatelyowned portion of Bergamot which houses similar art and creative uses, and shares the fundamental understanding of the unique cultural dynamics of the Site. Additionally, Redcar is headquartered at the privately-owned portion of Bergamot which offers economies of scale for on-site supervision and shared services further unifying the publicly- and privately-owned properties. Redcar proposes property management fee of 3% of gross receipts with a minimum of $2,500 per month, and 3% of construction costs to oversee any construction / capital projects; the most competitive of all proposed fees.

Redcar’s tenant and professional references speak highly of its personnel, responsiveness, and steadfast standard of service.

At capacity, the Site would generate approximately $133,000 monthly in rent with common area maintenance (CAM) fees paid by the tenants to fund CAM expenses.

From this revenue source, $50,992 per month would be remitted to the DOT to cover the land rental cost as a condition of the original Site Purchase and Sale Agreement.

The balance would fund operating expenses, including and not limited to on-going maintenance, property management, accounting, and administrative fees. Net operating income would be reinvested into the Site to fund capital improvements and arts center programming.

Redcar proposes property management fee of 3% of gross receipts and capital improvement construction costs. Staff estimates up to $90,000 in property management fees per annum in the first two years of operation with future increases tied to the Consumer Price Index.

Description
Estimated
Amount
Estimated Fee at 3%
Year 1
Estimated Fee at 3%
Year 2
Annualized Gross Receipts $1,600,000 $48,000 $48,000
Capital Improvements $300,000 $9,000 $9,000
Collection of Deferred Rent $500,000 $15,000 $15,000
Pass-Through Expenses* $10,000 $10,000 $10,000
Sub-Total $82,000 $82,000

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10% Contingency $8,000 $8,000
Total Not to Exceed $90,000 $90,000
* Expenses include bank fees, property management software subscription, accounting, etc.

With Council authorization, staff would work with Redcar to schedule a meet-and-greet with Site tenants and to refine a schedule of services to include tenant feedback. Staff anticipates that the new property management contract would commence by April 1, 2022, to coincide with the expiration of the Interim Property Management Agreement with Worthe.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff would return to Council if specific budget actions are required in the future. Redcar as property manager would be responsible for collection of rent and payment of all management, operational, and capital improvement expenses directly to vendors, subject to City approval; remit monthly rent to the DOT Fund; and provide the City with monthly expenditure reports. Operational funds would be held in a Redcar / City joint account overseen by the City and subject to annual audits. Monthly revenues of $50,992 to DOT would be deposited into account 60600002.415950.

Prepared By: Ava Lee, Senior Development Analyst
Approved Forwarded to Council

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Report
City Council Meeting: July 9, 2024
Agenda Item: 5.H
1 of 4
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Award Contract to Thompson Reuters for Subscriber Agreement for Purchase of and Access to Online Legal Research Subscription
Recommended Action
Staff recommends that the City Council:

1. Award RFP #409 to Thomson Reuters for access to online legal research materials for the City Attorney’s Office;

2. Authorize the City Manager to negotiate and execute an agreement with Thomson Reuters, a Minnesota–based company, in an amount not to exceed $495,000 for three years with two one-year renewal options; and

3. Adopt a finding of Categorical Exemptions pursuant to Section15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.

Summary
The Santa Monica City Attorney’s Office (CAO) relies on online research materials to provide a full range of legal services, including legal research, to meet the City's diverse legal needs. Each of the CAO’s four units - Advisory, Litigation, Criminal Prosecution, and Consumer Protection - use online databases to conduct legal research. Thompson Reuters’ Westlaw online legal research product provides the necessary tools and databases of information for the CAO to provide necessary legal services on behalf of all City departments and City officials. Staff seeks the authority to negotiate and execute an online legal research subscription agreement for three years with two one-year renewal options.

Discussion

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On June 25, 2019, the City Council approved a five-year subscription (three-year initial term with two one-year renewal options) with Thompson Reuters for their Westlaw online legal research service. The current subscription agreement expires on July 31, 2024. The CAO submitted a Request for Proposal via the City’s online system, OpenGov Procurement. Thompson Reuters was the only vendor to submit a proposal for the online legal research subscription service by the specified deadline. Since CAO staff is already familiar and proficient with the Westlaw legal research product, the continued use of Westlaw provides the City with a streamlined and efficient service continuation for CAO’s online legal research needs.

Vendor Selection
Bidder Recommendation
Best Qualified Person/Firm Thompson Reuters - Westlaw
Evaluation Criteria Experience, references, project team, cost, value added/breadth of service, quality of
work/technical capabilities, submission
materials
Municipal Code SMMC 2.24.190
RFPs Received
Thompson Reuters - Westlaw
RFP Data
Posted On Posted On Advertise In Vendors
Downloaded
Date Publicly
Opened
04/10/2024 City’s Online
Bidding Site
Santa Monica
Daily Press 2 5/1/2024
Justification to Award
From May 1, 2024 to May 13, 2024, the City Attorney’s Office selection group reviewed and evaluated the online legal research subscription proposal. The single proposal was evaluated based upon the following selection criteria: experience, references, project team, cost, value

5.H
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added/breadth of service, quality of work/technical capabilities, and submission materials. Based on these criteria and criteria in SMMC 2.24.190, staff recommends Thompson Reuters – Westlaw as the best and only qualified firm to provide an online legal research subscription based on pricing, expertise, ability to provide quality services, and compliance with City specifications.

Environmental Review
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The action 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 action will provide for an online research subscription contract, and 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 available funding from the General Fund to award a contract with Thomson Reuters for an online legal research subscription service. Future year funding is contingent on Council budget approval.

Contract Request
FY2024-2025
Request Amount
Future Years
Amount
Account # Total Contract
Amount
$95,040 $399,960 01120001.529230 $495,000
Future year funding is contingent on Council budget approval.

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Prepared By: Bradley Michaud, Principal Legal Analyst
Approved Forwarded to Council
Attachments:

A. Oaks Initiative Form-Thomson Reuters
B. Levine Act Disclosure
C. Westlaw Staff Report-June 25, 2019

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

Public benefits include:

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

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a12- 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 establishedland 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 revenueinterest:

Prepared by: Title:

Signature: Date:

Email: Phone:

FOR CITY USE ONLY:

Bid/PO/Contract # Permit #
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5.H.a
Packet Pg. 315 Attachment: Oaks Initiative Form-Thomson Reuters (6454 : Legal Research RFP Award) 4/1/2024
West Publishing Corporation, a Minnesota corporation

DIRECTORS
Cannizzaro, Sean Director
Hirsh, Karen Director
Walker, Linda J. Director

OFFICERS
Ramanathan, Ragunath (Raghu) President
Kessler, Ryan Chief Financial Officer
Bradley, Eric Vice President & Secretary
Alevy, Matthew Vice President
Howell, Kareem Vice President
Nelson, Scott A. Vice President
Neto, Elsa P. Vice President
Cannizzaro, Sean Vice President & Assistant Secretary
Sarracino, Gina Vice President & Assistant Secretary
Scarfone, Joseph Vice President & Assistant Secretary
Walker, Linda J. Vice President & Assistant Secretary
McDonnell, Laura Clayton President, Corporates
Beastrom, Elizabeth President, Tax & Accounting Professionals Rubley, Stephen President, Government
Prescott, Jennifer C. President, Global Print
Carlstead, Chris Head of Partnerships & Alliances
Desrosiers, Marc Head of Tax
Williams, Jason Head of HR, Customer Segments and Reward Christenson, April Vice President, Global Benefits & Wellbeing McNally, Hilary General Manager, Corporates Legal
Keeler-Ramacier, Kelly Manager, Contractor Administrator & Compliance Duran, Keyla Manager, Government Contracts
Nelson, John S. Director, Procurement and Proposal Management Curtis, Mallory E. Director, Commercial Strategy & Policy Thomas, Julie R. Director, Commercial Strategy & Policy, Legal Pro, CVM & CPQ DiCicco, Ronald Senior SCM Consultant
Deutsch, Jenny Senior Manager Commercial Strategy, Policy & Enablement Mikesell, Charles SCM Consultant
Barnard, Anne S. Assistant Secretary
Casahonda, Gerardo C. Assistant Secretary
Corbett, Ken Assistant Secretary
Giuliano, Jeanpierre Assistant Secretary
Hamm, Margaret Assistant Secretary
Hanson, Lauren G. Assistant Secretary
Hartman, Gary Assistant Secretary
Hirsh, Karen Assistant Secretary
Kapustynski, Joseph Assistant Secretary
Kubes, Steve Assistant Secretary
Larson, Michael Assistant Secretary
Stamatiadis, Helen V. Assistant Secretary
Walrath, Tom Assistant Secretary

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Packet Pg. 316 Attachment: Oaks Initiative Form-Thomson Reuters (6454 : Legal Research RFP Award) 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. 317 Attachment: Levine Act Disclosure (6454 : Legal Research RFP Award) 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. 318 Attachment: Levine Act Disclosure (6454 : Legal Research RFP Award) City Council
Report
City Council Meeting: June 25, 2019
Agenda Item: 3.S
1 of 5
To: Mayor and City Council
From: Lane Dilg, City Attorney, City Attorney's Office
Subject: Research Subscriber Agreements for Purchase of and Access to Legal Research Publications; Authorization of Additional Expenditures for EDiscovery Resources Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to negotiate and execute an agreement with Thomson Reuters, a Minnesota–based company, for a subscription agreement for printed legal research publications for the City Attorney’s Office, in an amount not to exceed $50,257 for three years.

2. Authorize the City Manager to negotiate and execute an agreement with Thomson Reuters, a Minnesota–based company, for access to online legal research materials for the City Attorney’s Office, in an amount not to exceed $266,090 for three years.

3. Authorize additional expenditures of funds for a current a month-to-month agreement with Thomson Reuters, a Minnesota–based company, for access to online e-discovery resources for the City Attorney’s Office, in an amount not to exceed $105,000 (including approximately 40% in contingency) over a three-year period.

4. All recommended awards are made as an exception to the competitive bidding process pursuant to Section 2.24.250 (b) and the total amount not to exceed is $421,347, with future year funding contingent on Council budget approval.

Summary
The City Attorney’s Office (CAO) uses print and online research materials provided by West, a business unit of Thomson Reuters, and also uses online e-discovery resources (eDiscovery Online) provided by Thomson Reuters. West has exclusive rights to license several publications that the CAO relies on to meet the City’s legal needs. Staff seeks authority to negotiate and execute two new Research Subscriber Agreements (RSAs) with Thomson Reuters: (1) a subscription agreement for printed legal research publications for three years in a total amount not to exceed $50,257; and (2) an agreement for access to online legal research materials for three years in a

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Packet Pg. 319 Attachment: Westlaw Staff Report-June 25, 2019 (6454 : Legal Research RFP Award) 2 of 5
total amount not to exceed $266,090. In addition, staff recommends that the City Council authorize additional expenditures of funds under a current month-to-month agreement with Thomson Reuters for access to online e-discovery resources to be used for litigation and to expedite public records review in an amount not to exceed $105,000, which includes an approximately 40% contingency, over a three-year period to account for uncertainty in cost, which is based on the volume of materials reviewed and stored using the online tools.

The two proposed new RSAs would provide access to all of West’s online research materials; eliminate charges for access to materials outside of the CAO’s current subscription; allow the CAO to shift most of its legal research to online materials; maintain the current 50% discount on the limited set of printed materials the CAO still needs; and maintain the annual increase for online access at 1%, which is below current market. Additionally, the two proposed new RSAs, together with the additional expenditures under the existing month-to-month e-discovery agreement, will permit the CAO to reduce total costs by approximately $10,000 per year, even after accounting for additional costs to use the online e-discovery resources to expedite review of email productions in response to public records requests.

Discussion
The CAO provides a full range of legal services, including legal research, to meet the City's diverse needs. Each of the CAO’s four divisions - Municipal, Civil Liability, Criminal and Consumer Protection - uses print publications and online databases to conduct legal research. For many years, the CAO has contracted with West, now a business unit of Thomson Reuters, as its primary source of legal research publications. West has exclusive rights to license several publications that the CAO relies on, including Rutter Group (California Practice), Miller & Starr (California Real Estate), and McQuillin (Municipal Law) publications, as well as the West National Reporter System, which has become a standard for courts.

The City's current Research Subscriber Agreement (RSA) with West, which includes both print publications and access to online databases, began on July 1, 2015, and

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Packet Pg. 320 Attachment: Westlaw Staff Report-June 25, 2019 (6454 : Legal Research RFP Award) 3 of 5
will end on June 30, 2020. The City Council approved this agreement on May 12, 2015. The Staff Report submitted to obtain this approval is attached as Attachment A.

In recent years, the CAO has encountered increasing numbers of special projects and unexpected legal issues that have required research outside of the subscription set included in the current RSA, resulting in costs incurred over and above our fixed monthly subscription cost. The proposed new RSA for online access includes access to all of West’s online materials at a fixed monthly subscription cost. As compared to the CAO’s current RSA and additional costs incurred under that agreement, the CAO anticipates that the new online RSA will provide significant savings in total online research costs. As a result of the scope of all of the CAO’s agreements with Thomson Reuters, Thomson Reuters has further agreed to maintain the current annual increase in online access costs of 1%, below the market rate. The cost of the proposed new online Research Subscriber Agreement will be $87,816 the first year, $88,694 the second year, and $89,580 the third year, for a total cost not to exceed $266,090 over three years.

The CAO’s current RSA with West also includes a number of print materials that are now available through online access. Consistent with the City’s overall shift to paper on demand, the proposed new print RSA therefore eliminates many print resources and the CAO’s overall reliance on print research resources. This results in significant savings in total printed materials costs. As a result of the scope of all of the CAO’s agreements with Thomson Reuters, Thomson Reuters has agreed to continue our current 50% discount on printed materials, and limit the annual increase for printed materials to 5% per year. The cost of the new print Research Subscriber Agreement will be $15,942 the first year, $16,739 the second year, and $17,576 the third year, for a total cost not to exceed $50,257 over three years.

Finally, the CAO has an ongoing month-to-month agreement with Thomson Reuters for access to its e-Discovery Online service. This tool has historically been used only rarely when litigation need arises on a case-by-case basis but the CAO has

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Packet Pg. 321 Attachment: Westlaw Staff Report-June 25, 2019 (6454 : Legal Research RFP Award) 4 of 5
recently also used this tool to deduplicate and review large email sets generated in response to requests under the California Public Records Act. The use of this tool has made review of large email sets significantly more efficient, with reduced overall review times, which is particularly important given the continually increasing scope of emails that are requested and must be reviewed and redacted prior to production under the PRA. The CAO is charged on a per-gigabyte basis for review and storage of email sets. Based on current usage, the CAO is requesting authorization to expend additional amounts under the current month-to-month agreement not to exceed $35,000 per year, for a total cost not to exceed $105,000 over three years.

This includes a contingency of approximately 40% to account for the uncertainty in costs, which is based on the volume of materials reviewed and stored using the online tools.

Vendor Selection
Exception to Competitive Bidding
The CAO recommends that the City enter into the two proposed RSAs with Thomson Reuters/West and authorize additional expenditures under the existing month-to-month agreement with Thomson Reuters/West relating to online e-discovery resources as an exception to competitive bidding per Section 2.24.250(b) of the Municipal Code.

Several publications the CAO on which the CAO relies are licensed exclusively by West; and both exclusive and non-exclusive materials are offered as part of a bundled package. The two proposed RSAs are the most efficient and cost-effective means of obtaining the exclusive publications that the City Attorney’s Office has come to rely on to meet the City’s legal needs. The ongoing month-to-month agreement with Thomson Reuters for online e-discovery resources meets the ongoing needs of a legally required City operation (responding to public records requests) and is part of the overall bundle of agreements with Thomson Reuters that has led to discounts on pricing. In addition, reliance on these resources for review and storage of email sets is ongoing, and a shift to a new provider would require significant staff time for the changeover. b. Competition does not reasonably exist because only one vendor possesses the unique ability or capability to meet the particular requirements of the solicitation, such as when a good or service is copyrighted, patented or otherwise only available form one license holder, including, for example, proprietary goods of original

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Packet Pg. 322 Attachment: Westlaw Staff Report-June 25, 2019 (6454 : Legal Research RFP Award) 5 of 5
equipment manufacturers and/or their authorized exclusive distributors.

Financial Impacts and Budget Actions
Staff seeks authority to award two new Research Subscriber agreements to Thomson Reuters and to expend additional funds under an existing monthmonth e-discovery resource agreement with Thomson Reuters in a total amount not to exceed $421,347 for three years. Funds are included in the FY 2019-21 proposed budget.

Research Subscriber Agreement through Contract Payment
Request Amount
FY 2019-20
Budget Account #
Total Contract
Amount Vendor
$16,261 01120001.524510 $50,257 Westlaw Print
$87,816 01120001.524511 $266,090 Westlaw Online Services $35,833 01120001.524511 $105,000
Westlaw eDiscovery
Online
Total Cost $139,910 $421,347
Future year funding is contingent upon Council budget approval.

Prepared By: Diana Burger, Office Administrator
Approved Forwarded to Council
Attachments:

A. Westlaw Thomsons Oaks
B. Westlaw Thomsons Living Wage
C. May 12, 2015 Staff Report

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Packet Pg. 323 Attachment: Westlaw Staff Report-June 25, 2019 (6454 : Legal Research RFP Award) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 5.I
1 of 4
To: Mayor and City Council
From: Matthew Hallock, Fire Chief, Fire Department
Subject: Authorization to Accept California CUPA Environmental Trust Fund Grant Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to accept a grant awarded in the amount of $58,585 from the California CUPA Forum Environmental Trust Fund in the Fire Department, and to accept all grant renewals;

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

3. Authorize budget amendment as outlined in the Financial Impacts & Budget Action section of this report (requires 5 votes); and

4. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines.

Summary
Each year, the California Certified Unified Program Agency Forum Environmental Protection Trust Fund (“CUPA Trust Fund”) awards grants to Certified Unified Program Agencies (“CUPA”) across the state to benefit Unified Program implementation and enforcement. The City’s CUPA program resides in the Santa Monica Fire Department (SMFD) and carries out the administrative requirements, permits, inspections, and enforcement activities of six environmental and emergency response programs – including those related to hazardous materials, aboveground storage tanks, and underground storage tanks. The CUPA team utilizes two City vehicles to implement and enforce CUPA regulations. Due to the constant need for repair, which has negatively impacted CUPA operations, the City’s CUPA staff applied for and received a grant from

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the CUPA Trust Fund to replace the vehicle. Staff recommends acceptance of the $58,585 grant.

Discussion
SB 1082, enacted in 1993, created the Unified Program to consolidate, coordinate, and make consistent the administrative requirements, permits, inspections, and enforcement activities of six environmental and emergency response programs. The mission of the Unified Program is to protect public health and safety, to restore and enhance environmental quality, and sustain economic vitality through effective implementation of the six programs. To that end, the Unified Program requires the California Environmental Protection Agency to certify local government agencies, known as Certified Unified Program Agencies, or CUPAs, as able to implement the required programs. These CUPAs are accountable for carrying out responsibilities previously handled (pre-1993) by approximately 1,300 different state and local agencies.

The six response programs unified under SB 1082 are: 1) Hazardous Materials Business Plan; 2) Hazardous Waste/Tiered Permitting; 3) Underground Storage Tanks; 4) Aboveground Storage Tanks; 5) California Accidental Release Program; and 6) Uniform Fire Code Hazardous Materials Management Plan. California city and county agencies can apply to become a CUPA and to receive delegated authority from the State to enforce a number of laws in their jurisdiction.

The City of Santa Monica’s CUPA program was certified by the State in 1995 and consists of the CUPA Administrator and the Hazardous Materials Specialist. Together, the CUPA team has authority, delegated from the State and Los Angeles County, to conduct CUPA inspections, collect fees on their behalf, and levy CUPA fines. They also conduct complaint investigations, permit investigations, aboveground and underground plan reviews, and final inspections for medical gases, aboveground storage tanks, underground storage tanks, and all other hazardous materials related plan review inspections, including underground storage tank modifications. Each year, this CUPA team conducts approximately 400 inspections.

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Among the many pressing needs of the City’s CUPA program, a reliable vehicle is critical to its operations. The CUPA team utilizes two vehicles (both 2013 Ford Focus) to reach inspection sites throughout the city. Both vehicles are in the City’s fleet and subject to the City’s vehicle replacement plan. Unfortunately, as they age, one vehicle has had significant mechanical issues and consistently requires repair. This leaves the CUPA team to share one vehicle, hampering its operations.

As a result, the City’s CUPA team sought grant funding for a replacement vehicle so that it can fulfill its responsibilities as well as continue generating revenue. While the CUPA team collects fines and fees on behalf of the State and County, it also generates revenues from an administrative fee. The CUPA team applied for and was awarded a grant from the CUPA Trust Fund. The Fund is a statewide association of program agencies formed to effectively implement the Unified Program by consolidating the administration, permits, inspections, and enforcement activities of local, state, and federal environmental and emergency management programs. The grant for $58,585 will cover the cost to purchase a new vehicle and upfitting (decals, radio, lights).