Santa Monica City Council
July 23, 2024

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Packet Pg. 650 Attachment: PowerPoint Presentation (6459 : Shared Use Mobility Ordinance Amendment) City Council
Report
City Council Meeting: July 23, 2024
Agenda Item: 14.A
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To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department, Revenue Subject: Adoption of a Resolution to place a Parking Facility Tax revenue measure on the November 2024 Ballot
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. Adopt a Resolution to place a measure on the November 5, 2024, General Municipal Election Ballot to increase the City’s Parking Facility Tax rate by 8% and exempt City-owned lots and structures from the tax increase (Attachment A), which would be accompanied by an advisory measure that would allow voters to express their preference that at least half of the additional revenue generated by the Parking Facility Tax Measure should be allocated to address public safety and homelessness; and

3. Identify Council Members, if any, who wish to prepare arguments for or against the Parking Facility Tax measure or the accompanying advisory measure.

Summary
On July 9, 2024, Council directed staff to bring back the Parking Facility Tax proposal, discussed at the Budget Adoption meeting, with an advisory measure indicating that half of the additional revenue generated by the measure tax should be allocated to address public safety and homelessness. This measure was first considered by Council at its June 25, 2024 meeting. As stated in the June 25, 2024 staff report on proposed ballot measures, this proposed ballot measure has been vetted twice within the community through polling. The proposed ballot measure language reflects the direction of Council, as well as the feedback

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received during polling to focus on public safety. All ballot measure proposals must be submitted to Los Angeles County by August 9, 2024 for the November 5, 2024 election.

Discussion
The City continues to navigate various challenges, ranging from economic uncertainty resulting from inflation and high interest rates, increased costs, the need to address deferred infrastructure and equipment maintenance, and contingent liabilities. This has hindered the City’s ability to expand services to levels that meet the community’s needs and expectations. On June 25, 2024, as part of budget adoption, Council directed staff to explore what is needed to further address public safety and homelessness in Santa Monica, with the understanding that without additional resources, Council would have to consider tradeoffs in the General Fund to reallocate funding within City programs and services. It is in this environment, that on July 9, 2024, Council directed staff to bring back the Parking Facility Tax proposal, discussed at the Budget Adoption meeting, with an advisory measure indicating that half of the additional revenue generated by the tax measure should be allocated to address public safety and homelessness.

Proposed Ballot Language
Staff estimates that an 8% tax increase would generate approximately $6.7 million in additional annual General Fund revenues. The resolution to place the measure on the November 2024 general election ballot is included in the staff report. If Council decides to move forward with placing the item on the ballot, the recommended ballot language is as follows:

Parking Facility Tax Measure
To maintain essential city services, including enhancing public safety, creating safe routes to school to protect children, and lowering the risk of fatal traffic accidents, shall the measure increasing the City of Santa Monica Parking Facility Tax by 8% for users including visitors and tourists, causing no additional cost in City-owned lots and structures (including downtown and

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the beach) because of a partial City exemption, generating approximately $6,700,000 annually until ended by voters, be adopted?
The Council has also proposed an advisory measure to guide spending of additional resources if the measure passes. The text is below and included in Attachment A:

Parking Facility Tax Advisory Measure
ADVISORY VOTE ONLY: If Measure __ is enacted, should at least half of the additional revenue raised be used to protect public safety in Santa Monica, including attracting and retaining well-trained police officers and firefighters, improving crime and homelessness prevention services, and increasing police patrols and enhancing emergency medical response in neighborhoods and public areas, including downtown, the pier, and the beach?
If the Advisory Measure associated with the Parking Facility Tax Measure passes, it provides an indication of general voter opinion on the proposed uses outlined in the Advisory Measure. If the Advisory Measure passes and the Parking Facility Tax Measure does not, there will be no change to existing policy.

The proposed resolution (Attachment A) includes the text of the Parking Facility Tax Measure (Exhibit 1) and the text of the Parking Facility Tax Advisory Measure (Exhibit 2) and authorizes designated City Council members to submit arguments and rebuttals concerning each measure. Council may designate one to five members to submit arguments and rebuttals for each measure. Finally, the resolution directs the City Clerk to transmit a copy of the measures to the City Attorney and directs the City Attorney to prepare an impartial analysis of the effects of each measure on the existing law as well as on the operation of each measure.

Arguments and rebuttals shall be submitted in accordance with State Elections Code Sections 9280-9287 and Santa Monica Municipal Code Section 11.04.125.

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The Elections Official will set the deadline for submitting arguments as 14 days from the date the election is called on the measure and the deadline for submitting rebuttals to arguments as 10 days after the deadline for submitting arguments on the measure, or the date fixed by the City Clerk, whichever date is later.

If the Parking Facility Tax Measure is approved, the increase would go into effect on January 1, 2025.

Past Council Actions
Meeting Date Description
12/19/23
(Attachment B)
Evaluate feasibility of Parking Facility Tax Increase Tax Measure on the November 2024 ballot
6/25/24
(Attachment C)
FY 2024-25 Operating and Capital Improvement Program
Budget Adoption
Environmental Review
The parking facility tax and Business License Tax modernization are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The proposal 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.” If enacted, the proposed tax measures would create revenue and promote equity for the City.

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 recommended action. Staff will return to Council if specific budget actions are required in the future as result of approved ballot measures. If voters approve the Parking Facilities Tax measure, staff estimates an increase of approximately $6.7 million annual in the General Fund.

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Prepared By: Oscar Santiago, Director
Approved Forwarded to Council
Attachments:

A. Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure B. Attachment B. Feasibility of Tax Increase Measure
C. Attachment C. FY 2024-25 Operating and CIP Budget Adoption D. July 9th Staff Report
E. PowerPoint Presentation

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1 City Council Meeting: July 23, 2024 Santa Monica, California RESOLUTION NUMBER _____ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SUBMITTING TO THE VOTERS A MEASURE TO AMEND CHAPTER 6.70 OF THE SANTA MONICA MUNICIPAL CODE TO INCREASE THE CITY’S PARKING FACILITY TAX TO 18%, EXEMPTING CITY-OWNED LOTS AND STRUCTURES FROM THE

ADDITIONAL TAX, ACCOMPANIED BY AN ADVISORY MEASURE ASKING

WHETHER HALF OF THE INCREASED REVENUE FROM THE ADDITIONAL TAX

SHOULD BE SPENT ON PUBLIC SAFETY AND HOMELESSNESS, AND

AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN ARGUMENTS

FOR OR AGAINST THE MEASURES AND DIRECTING THE CITY ATTORNEY TO

PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURES
WHEREAS, Santa Monica Municipal Code Chapter 6.70 contains the City’s parking facility tax (the “PFT”); and
WHEREAS, the PFT is a general tax imposed for general revenue purposes; and WHEREAS, the PFT is imposed on any Operator that charges an Occupant a Parking Fee in exchange for using a Parking Facility; and WHEREAS, Santa Monica Municipal Code section 6.70.020 currently sets the PFT rate at 10% of the total Parking Fee charged by an Operator; and WHEREAS, the PFT was last amended in 1995 by Ordinance No. 1789 (CCS); and
WHEREAS, 90% of the parking lots and structures owned by the City are in the Coastal Zone; and
WHEREAS, the parking rates approved by the Coastal Commission are inclusive of the City’s 10% PFT rate; and
WHEREAS, the Coastal Commission has taken the position that the City’s parking Attachment A

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Packet Pg. 656 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 2 rates in the Coastal Zone are subject to Coastal Commission approval and require a coastal development permit prior to increasing rates; and WHEREAS, the City’s advertised parking rates at City-owned lots and structures are inclusive of the City’s existing PFT rate; and
WHEREAS, with voter approval, the City could increase the PFT rate, while maintaining the existing parking rates in City-owned lots and structures at the existing levels; and
WHEREAS, increasing the PFT rate while maintaining the existing parking rates in City-owned lots and structures would be revenue neutral because any increase in PFT revenue would be offset by an equal decline in parking revenue; and WHEREAS, the City desires to partially exempt City-owned lots and structures from the PFT rate increase proposed by this measure out of administrative convenience and to promote public access to the beach; and
WHEREAS, many residents live in the City of Santa Monica because the City invests in community priorities, offers extensive services and programs that substantially enhance the quality of life of its residents; and
WHEREAS, an additional locally-controlled revenue source is needed to restore and enhance Santa Monica’s essential city services; and WHEREAS, the City desires to raise the PFT rate to 18%; and WHEREAS, the additional revenue from increasing the PFT rate is estimated to raise an additional $6,700,000 in general fund revenue that may be used to fund general governmental services, such as: addressing homelessness, enhancing public safety, improving emergency response times, creating safe routes to schools, reducing fatal Attachment A

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Packet Pg. 657 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 3 pedestrian and bike accidents, improving city streets and sidewalks, and maintaining clean and safe parks; and
WHEREAS, the measure is accompanied by an advisory measure that allows voters to express their preference that if the PFT measure is approved, then should half of the additional revenue from the PFT increase be used to support public safety in Santa Monica, including attracting and retaining well-trained police officers and firefighters, improving crime and homelessness prevention services, and increasing police patrols and enhancing emergency medical response in neighborhoods and public areas, including downtown, the pier, and the beach; and
WHEREAS, under applicable law, the City Council of the City of Santa Monica must present a proposed increase to the PFT to the electorate of the City of Santa Monica for adoption by majority vote of the electorate; and
WHEREAS, pursuant to California Elections Code Section 10403, the City Council has previously requested that the County of Los Angeles consent and agree to the consolidation of all aspects of a General Municipal Election with the Statewide General Election scheduled for Tuesday, November 5, 2024, for the purpose of electing members of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa Monica-Malibu Unified School District, and the Santa Monica Community College District.

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

SECTION 1. At the General Municipal Election called for November 5, 2024, the following measure shall be submitted to the qualified electors of the City of Santa Attachment A

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Packet Pg. 658 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 4 Monica:

MEASURE " ":

To maintain essential city services,
including enhancing public safety,
creating safe routes to school to protect
children, and lowering the risk of fatal
traffic accidents, shall the measure
increasing the City of Santa Monica
Parking Facility Tax by 8% for users
including visitors and tourists, causing no
additional cost in City-owned lots and
structures (including downtown and the
beach) because of a partial City
exemption, generating approximately
$6,700,000 annually until ended by
voters, be adopted?

YES ________
NO _________
SECTION 2. At the General Municipal Election called for November 5, 2024, the following measure shall be submitted to the qualified electors of the City of Santa Monica:

MEASURE " ":

ADVISORY VOTE ONLY: If Measure __
is enacted, should at least half of the
additional revenue raised be used to
protect public safety in Santa Monica,
including attracting and retaining welltrained police officers and firefighters, improving crime and homelessness
prevention services, and increasing
police patrols and enhancing emergency
medical response in neighborhoods and
public areas, including downtown, the
pier, and the beach?

YES ________
NO _________
SECTION 3. The City Clerk shall file a certified copy of this resolution with the Attachment A

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Packet Pg. 659 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 5 Board of Supervisors and with the county election department of the County of Los Angeles.

SECTION 4. The vote requirement for either measure to pass is a majority (50%+1) of the votes cast.

SECTION 5. The City of Santa Monica recognizes that additional costs may be incurred by the County by reason of the addition of these measures to the ballot and agrees to reimburse the County for any additional costs.

SECTION 6. The City Clerk shall transmit to the City Attorney, in accordance with applicable law, copies of both measures. The City Attorney shall prepare an impartial analysis of the measures, which shall not exceed 500 words in length each. The impartial analyses shall be filed by the date set by the City Clerk for the filing of primary arguments. ln accordance with applicable law, not less than 10 calendar days before the City Clerk submits the official election materials for printing, the City Clerk shall make a copy of all applicable election materials available for public examination in the City Clerk's office.

SECTION 7. The City Council authorizes its members, as follows, to file written arguments for or against the measures described above, which are contained in Exhibit 1 (Parking Facility Tax Measure) and Exhibit 2 (Parking Facility Tax Advisory Measure), which are incorporated by reference herein:

Parking Facility Tax Measure
FOR:

AGAINST:

Parking Facility Tax Advisory Measure
Attachment A

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Packet Pg. 660 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 6 FOR:

AGAINST:

All written arguments filed by any person in favor of, or against any measure, including any rebuttal arguments, shall be accompanied by the names and signatures of the persons submitting the argument as required by applicable law, and any names, signatures and arguments may be filed until the time and date fixed by the City Clerk in accordance with applicable law, after which no change may be submitted to the City Clerk unless permitted by law.

SECTION 8. The City Clerk shall cause the text of the measures, which is contained in Exhibit 1 (Parking Facility Tax Measure) and Exhibit 2 (Parking Facility Tax Advisory Measure), together with the City Attorney impartial analyses, and any arguments for or against the measures, as well as any rebuttal, to be mailed to all qualified voters with the sample ballot. In addition to other notices and publications required by law, the City Clerk, not less than forty (40) days and not more than sixty (60) days before the General Municipal Election, shall cause the text of the measures to be published once in the official newspaper and in each edition thereof during the day of publication. The City Clerk is authorized to give such notices and to fix such times and dates as are required by law or which are appropriate to properly conduct the election.

SECTION 9. The provisions of Resolution Numbers 11591 and 11592 are referred to and incorporated into this resolution for more particulars concerning the conduct of the General Municipal Election to be held on November 5, 2024, and in all respects the election shall be held and conducted as provided for by applicable law. The Attachment A

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Packet Pg. 661 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for 7 City Clerk is authorized and directed to procure and furnish any official ballots, notices, printed materials and all supplies or equipment that may be necessary in order to properly and lawfully conduct the election.

SECTION 10. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
________________________________
DOUGLAS T. SLOAN, City Attorney
Exhibit 1 – Text of Parking Facility Tax Measure
Exhibit 2 – Text of Parking Facility Tax Advisory Measure Attachment A

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Packet Pg. 662 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for Exhibit 1 – Parking Facility Tax Measure
WHEREAS, this measure shall be known as the “2024 Parking Facility Tax Measure” (“Measure”); and
WHEREAS, Chapter 6.70 of the Santa Monica Municipal Code contains the City’s parking facility tax (the “PFT”); and
WHEREAS, the PFT is a general tax imposed for general revenue purposes; and WHEREAS, the PFT is imposed on any Operator that charges an Occupant a Parking Fee in exchange for using a Parking Facility; and WHEREAS, Santa Monica Municipal Code section 6.70.020 currently sets the PFT rate at 10% of the total Parking Fee charged by an Operator; and WHEREAS, the PFT was last amended in 1995 by Ordinance No. 1789 (CCS); and
WHEREAS, 90% of the parking lots and structures owned by the City are in the Coastal Zone; and
WHEREAS, the parking rates approved by the Coastal Commission are inclusive of the City’s 10% PFT rate; and
WHEREAS, the Coastal Commission has taken the position that the City’s parking rates in the Coastal Zone are subject to Coastal Commission approval and require a coastal development permit prior to increasing rates; and WHEREAS, the City’s advertised parking rates at City-owned lots and structures are inclusive of the City’s existing PFT rate; and
Attachment A

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Packet Pg. 663 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for WHEREAS, with voter approval, the City could increase the PFT rate, while maintaining the existing parking rates in City-owned lots and structures at the existing levels; and
WHEREAS, increasing the PFT rate while maintaining the existing parking rates in City-owned lots and structures would be revenue neutral because any increase in PFT revenue would be offset by an equal decline in parking revenue; and WHEREAS, the City desires to partially exempt City-owned lots and structures from the PFT rate increase proposed by this measure out of administrative convenience and to promote public access to the beach; and
WHEREAS, many residents live in the City of Santa Monica because the City invests in community priorities, offers extensive services and programs that substantially enhance the quality of life of its residents; and
WHEREAS, an additional locally-controlled revenue source is needed to restore and enhance Santa Monica’s essential city services; and WHEREAS, the City desires to raise the PFT rate to 18%; and WHEREAS, the revenue from the increasing the PFT rate is estimated to raise an additional $6,700,000 in general fund revenue that may be used to fund general governmental services, such as: addressing homelessness, enhancing public safety, improving emergency response times, creating safe routes to schools, reducing fatal pedestrian and bike accidents, improving city streets and sidewalks, and maintaining clean and safe parks.

Attachment A

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Packet Pg. 664 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for NOW, THEREFORE:

SECTION 1. As of January 1, 2025 (the “Effective Date”), Chapter 6.70 of the Santa Monica Municipal Code is amended to read as follows (new language underlined, proposed deletions in strikethrough):

Chapter 6.70. PARKING FACILITY TAX
§ 6.70.010. Definitions.

Except where the context otherwise requires, the definitions in this Section govern the construction of this Chapter.

City-owned Parking Facility. “City-owned Parking Facility” means a Parking Facility owned by the City of Santa Monica, irrespective of whether the City uses a managing agent, or other designated third party, to operate the Parking Facility.

Motor vehicle. "Motor vehicle" means every self-propelled vehicle operated or suitable for operation on the highway.

Occupancy. "Occupancy" means the use or possession or the right to the use or possession of any space for the parking of a motor vehicle or any other purpose in a parking facility.

Occupant. "Occupant" means a person who, for a consideration, uses, possesses or has the right to use or possess any space for the parking of a motor vehicle in a parking facility under any lease, concession, permit, right of access, license to use or other agreement or otherwise, whether voluntarily or involuntarily. Occupant shall be deemed to include any person required to pay any valet or service labor charge in connection with the parking of motor vehicles on public or private property and any person required to pay Attachment A

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Packet Pg. 665 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for a charge for the occupancy of parking space by another person by means of validation or otherwise.

Operator. "Operator" means the person who conducts a parking facility, whether in the capacity of owner, lessee, mortgage in possession, licensee, valet or other service supplier or any other capacity. When the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for purposes of this Article and shall have the same duties and liabilities as his or her principal. When the managing agent collects parking fees and tax on behalf of his or her principal and deposits the same into the principal's account in a financial institution, such principal shall be responsible for reporting and remitting the tax to the City. It shall be the duty of the managing agent to provide the Director of Finance with the name and address of each principal who will be responsible for reporting and remitting the tax to the City. Compliance with the provisions of this Article by either the principal or the managing agent shall be considered to be compliance by both. A person who qualifies as an operator shall not, by reason of being exempt from the tax imposed in this Article, be exempt from the duties and liabilities of an operator imposed under this Article.

Parking meter. "Parking meter" means any device, which, when the recording device thereof is set in motion, or immediately following the deposit of any coin, shall register the period of time that any motor vehicle may be parked adjacent thereto.

Parking facility. "Parking facility" means any outdoor space or uncovered plot, place, street, lot, parcel, yard or enclosure, or any portion thereof, or any building or structure, Attachment A

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Packet Pg. 666 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for or any portion thereof, where or in which a motor vehicle may be parked, stored, housed or kept, for which any charge is made.

Parking fee. "Parking fee" means the consideration charged, whether or not received, for the occupancy or use of space in a parking facility valued in money, whether received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom. The parking fee shall be deemed to include the total charges required to be paid by an occupant, including, but not limited to, any valet or service labor charge in connection with the use or occupancy of parking space on public or private property. Nothing shall be construed to mean that a parking fee is charged to the occupant of space in a parking facility for the sale of petroleum products, automobile parts or other tangible personal property, the rendering of services, including car wash services, totally unconnected with the use or occupancy of parking space, or where parking space is provided to the occupant as a compliment from the operator and where no consideration is charged to or received from any other person.

Person. "Person" means any natural person, partnership, joint venture, joint stock company, corporation, estate, trust, business trust, receiver, administrator, executor, assignee, trustee in bankruptcy, firm, company, association, club, syndicate, society, municipal corporation, the State of California, political subdivision of the State of California, the United States, instrumentality of the United States, or any group or combination acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.

Attachment A

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Packet Pg. 667 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for § 6.70.020. Parking facility tax.

On or after January 1, 2025 July 1, 1993, there is imposed a tax upon every person in the City who occupies a parking facility or who is obligated to pay a parking fee. Subject to the exemption in section 6.70.025, The the tax imposed by this Chapter shall be at the rate of ten eighteen (18%) percent of the total parking fee charged by the operator for use of the parking facility.
§ 6.70.025. Partial Exemption on City-Owned Parking Facilities On or after January 1, 2025, City-owned Parking Facilities shall be exempt from 8% of the tax imposed by section 6.70.020.
§ 6.70.030. Collection.
(a) On or after the effective date of this Chapter, every operator or person receiving any payment for use of a parking facility shall collect the amount of the tax imposed by this Chapter from the person paying the parking fee or who is obligated to pay the parking fee.
(b) Unless otherwise prohibited by law, every person occupying a parking space in a parking facility shall be required to pay the tax imposed by this Chapter to the operator or the person collecting the parking fee. If the parking fee is paid in installments, or if an amount paid is less than the full amount of the parking fee and tax accrued at the time of payment, a proportionate share of the tax shall be deemed to have been paid with each such partial payment or installment. (c) The taxes required to be collected pursuant to this Chapter shall be deemed to be held in trust by the operator or the person required to collect the tax Attachment A

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Packet Pg. 668 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for on behalf of the City until the taxes are remitted to the City as required by this Chapter and shall constitute a debt owed by the operator to the City. § 6.70.040. Reports and tax remittance.
(a) The person or operator collecting or obligated to collect any parking facility tax pursuant to this Chapter shall prepare a report upon a form prescribed by the Director of Finance. The report shall include the amount of parking fees collected and the amount of the tax collected pursuant to this Chapter. Additionally, the report shall include such information as is required by the Director of Finance to carry out the purposes of this Chapter.
(b) The person or operator collecting or obligated to collect any parking facility tax shall remit to the City the parking facility tax together with the report prepared pursuant to subsection (a) of this Section.
(c) The reports and tax remittances of parking facility taxes shall be delinquent if not paid on or before the twenty-fifth day following the end of each reporting quarter as specified herein, and shall cover the reporting quarter just ended. For purposes of this Chapter, the reporting quarters are as follows:

December 1st through February 28th/29th, March 1st through May 31st, June 1st through August 31st, September 1st through November 30th. § 6.70.050. Interest and penalties.

If any person fails or refuses to remit to the Director of Finance the tax required to be collected by this Chapter, there shall be added to such tax a penalty of ten percent of the amount of the tax due for each thirty days that the tax is unpaid. If the tax due remains Attachment A

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Packet Pg. 669 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for unpaid for a period of ninety days or longer, in addition to the penalty prescribed by this Section, the person owing the tax shall pay to the City interest on the amount due from the date the tax was due, in the amount determined by the Director of Finance as equal to the City's actual rate of return on its invested funds. § 6.70.060. Failure to collect and report tax.

If any person shall fail or refuse to collect the parking facility tax or to make, within the time provided in this Chapter, any report or remittance required by this Chapter, the Director of Finance shall proceed in such manner as he or she may deem best to obtain facts and information on which to estimate the tax due. As soon as the Director of Finance shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect the same and to make such report or remittance, the Director of Finance shall proceed to determine and assess against such person the tax and penalties provided for by this Chapter and shall notify such person by mail sent to his or her last known place of address of the total amount of such tax including interest and penalties, and the total amount thereof shall be payable within ten days from the date of such notice. § 6.70.070. Records.

It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of two years, such suitable records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Director of Finance shall have the right to inspect at all reasonable times.

Attachment A

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Packet Pg. 670 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for § 6.70.080. Cessation of business.

Whenever any person required to collect and pay to the City a tax under this Chapter shall cease to operate or otherwise dispose of his or her business, any tax payable hereunder to the City shall become immediately due and payable and such person shall immediately make a report and pay the tax due. § 6.70.090. Exceptions.

No tax shall be payable hereunder in any of the following instances:
(a) On the parking fee paid by any federal, State of California, or City of Santa Monica, official or employees when on official business provided that a tax exempt certificate is executed no later that the time when payment of the parking fee is due, on a form to be provided by the Director of Finance. (b) On the parking fee deposited in any parking meter owned or operated by the City.
(c) On the parking fee paid for any City preferential parking permit. (d) On the parking fee paid as part of any residential dwelling unit lease, rental agreement or obligation, including on the parking fee paid as part of any hotel, motel or other lodging facility occupancy, but only when the length of the occupant's stay exceeds thirty consecutive days in the hotel, motel or other lodging facility.
§ 6.70.100. Penalty.

Any person violating or failing to comply with any of the provisions of this Chapter, shall upon conviction thereof, be guilty of a misdemeanor and shall, in addition to any jail Attachment A

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Packet Pg. 671 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for sentence, be fined not more than five hundred dollars. Each violation of this Chapter shall constitute a separate offense. Any conviction for violation of this Chapter shall not relieve any person from the payment, collection or remittance of the parking facility tax as provided in this Chapter.
§ 6.70.110. Director of Finance - Powers and duties.

It shall be the duty of the Director of Finance to ascertain the name of every person operating a parking facility in the City of Santa Monica, liable for the collection of the tax levied by this Chapter, who fails, refuses or neglects to collect the tax or to make, within the time provided by this Chapter, the reports or remittances required herein. In addition to any other remedy or proceeding, the Director of Finance is authorized to request that the City Attorney commence any proceeding as may be appropriate to obtain payment of any tax, including penalty and interest, as may be due the City under this Chapter.

SECTION 2. Any provision of the Santa Monica Municipal Code inconsistent with the provisions of this measure, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this measure.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this measure 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 measure. The City Council hereby declares that it would have placed this measure and the resulting Santa Monica Municipal Code amendment, and the voters declare that they would have adopted this measure and the resulting Santa Monica Municipal Code amendment, and each and every section, subsection, sentence, clause, Attachment A

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Packet Pg. 672 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for or phrase not declared invalid or unconstitutional, without regard to whether any portion may be subsequently declared invalid or unconstitutional.

Attachment A

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Packet Pg. 673 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for EXHIBIT 2 – PARKING FACILITY TAX ADVISORY MEASURE TEXT

CITY COUNCIL PROPOSED ADVISORY MEASURE ASKING WHETHER HALF OF

THE ADDITIONAL REVENUES FROM INCREASING THE CITY PARKING FACILITY TAX BY 8% SHOULD BE USED TO PROTECT PUBLIC SAFETY IN SANTA MONICA This Advisory Measure Does Not Increase Taxes. It is an Advisory Measure which states the intent of the Voters in the City of Santa Monica that, if the Parking Facility Tax Measure is enacted, then it is the voter’s preference that at least half of any increased revenues should be spent on programs and services to protect and enhance public safety, including:
 Attracting and retaining well-trained police officers and firefighters; or  Improving crime and homelessness prevention services; or  Increasing police patrols and enhancing emergency medical response in neighborhoods and public areas, including downtown, the pier and the beach.

If this Advisory Measure is passed by the Voters and the Parking Facility Tax Measure does not pass, there will be no change to existing policy.

Attachment A

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Packet Pg. 674 Attachment: Attachment A. Parking Facility Tax - Ballot Resolution w Advisory Measure [Revision 8] (6524 : Parking Facility Tax Increase for City Council
Report
City Council Meeting: December 19, 2023
Agenda Item: 16.D
1 of 1
To: Mayor and City Council
From: Denise Anderson Warren, City Clerk, Records and Election Services Department
Subject: Request of Councilmember Zwick, Councilmember Davis, and Councilmember Torosis that the City Manager and City Attorney evaluate the potential to place a General Tax with an Advisory Measure on the November 2024 ballot to increase the parking facility tax to reduce traffic congestion and the risk of traffic fatalities and serious injuries in Santa Monica, while preserving free 90-minute parking in the downtown lots. Specifically, the City Manager is being asked to evaluate the potential resources that can be generated by increasing the parking facility tax and the use of resources to restore the Safe Routes to School program and fund safety-enhancing street infrastructure to protect children, elderly and disabled residents, hire additional school crossing guards and traffic enforcement officers, and address deferred maintenance needs of the City’s downtown parking structures. The City Manager and City Attorney are also being asked to enter into discussions with the California Coastal Commission and assess the impacts of a proposed increase in the parking facility tax on parking rates in the Coastal Zone.

Prepared By: Denise Anderson Warren, City Clerk
Approved Forwarded to Council
Attachments:

A. Written Comments
Attachment B

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Packet Pg. 675 Attachment: Attachment B. Feasibility of Tax Increase Measure (6524 : Parking Facility Tax Increase for the November 2024 Ballot) City Council
Housing Authority
Parking Authority
Report
City Council Meeting: June 25, 2024
Agenda Item: 12.A
1 of 21
To: Housing Authority, Parking Authority, Mayor and City Council From: Oscar Santiago, Director, Finance Department, Budget Subject: Adoption of the Second Year of the FY 2023-25 Biennial Budget, Adoption of the First Year and Approval of the Second Year of the FY 2024-26 Biennial Capital Improvement Program Budget
Recommended Action
Staff recommends that the City Council, Housing Authority and Parking Authority:

1. Adopt a Resolution of the City Council of the City of Santa Monica adopting the FY 2024-25 Operating Budget and adopting the first year and approving the second year of the FY 2024-26 Biennial Capital Improvement Program Budget at Attachment A, as amended by Attachment D;

2. Adopt a Resolution of the Housing Authority of the City of Santa Monica adopting the FY 2024-25 Operating Budget and adopting the first year and approving the second year of the FY 2024-26 Biennial Capital Improvement Program Budget at Attachment B, as amended by Attachment D; and

3. Adopt a Resolution of the Parking Authority of the City of Santa Monica adopting the FY 2024-25 Operating Budget and adopting the first year and approving the second year of the FY 2024-26 Biennial Capital Improvement Program Budget at Attachment C, as amended by Attachment D.

Staff also recommends that the City Council:

4. Adopt a Resolution of the City Council of the City of Santa Monica revising the City’s master fee schedule to establish and revise certain permit and user fees and charges (Attachment E);

5. Adopt a Resolution of the City Council of the City of Santa Monica revising the City’s master fine schedule to establish and revise the administrative citation schedule of fines for certain violations of the Santa Monica Municipal Code (Attachment F);

6. Adopt a Resolution of the City Council of the City of Santa Monica establishing parking rates and permit fees for all City parking facilities and resources (Attachment G);

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7. Adopt a Resolution of the City Council of the City of Santa Monica temporarily waiving and reducing outdoor dining license fees for third street promenade to stimulate economic recovery (Attachment H);

8. Adopt a Resolution of the City of Santa Monica establishing new classifications and adopting salary rates for various listed positions (Attachment I) and approve the position and classification changes (Attachment J);

9. Adopt a Resolution of the City of Santa Monica establishing the Gann appropriations limit for FY 2024-25 (Attachment K);

10.Adopt a Resolution incorporating a project funded by SB1: The Road Repair and Accountability Act (Attachment L);

11.Adopt a Resolution authorizing the City Manager to revise the Confidential Unrepresented Employee (CUE) Pay Plan (Attachment M)

12.Maintain existing adult-use and medicinal cannabis tax rates or provide direction to staff on the desired adult-use and medicinal tax rate increases and adopt a resolution increasing the adult-use and medicinal cannabis tax rates as directed effective January 1, 2025 (Attachment N);

13.Authorize the City Manager to accept a discretionary grant award in the amount of $50,000 from the Los Angeles Homeless Services Authority and approved by Supervisorial District 3 to support the City Attorney’s Office Shelter, Treatment, and Empowerment Program (STEP) Court;

14.Authorize the City Manager to accept a grant award of $4,822,406 from the U.S.

Department of Housing and Urban Development’s Continuum of Care Program to provide housing subsidies for the homeless and disabled population and to execute all necessary documents to accept the grant and any subsequent renewals;

15.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

16.Adopt a finding that the proposed landing fee reduction project, which includes reduced rates for tie-downs, transient tie-downs, hangars, landing fees, and fuel flowage fees (Reduced Airport Fees), exempt from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines sections 15061(b)(3), and 15369.

Summary
As presented to City Council on May 28, 2024 (Attachment O), the FY 2024-25 Proposed Operating Budget and the FY 2024-26 Proposed Biennial Capital Improvement Program (CIP) Budget is a balanced budget. The attached changes to the proposed budget reflect direction given by Council at that time following public input and Council discussion, including the addition of four Police Officers, and the funding of two CIP projects - the CCTV Security Camera Program and the Quick Build Enhancements at Unsignalized Intersections.

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The overall FY 2024-25 Proposed Budget as revised is $765.3 million, net of reimbursements and transfers. This is a difference of approximately $1.8 million over what was presented in the initial proposed budget on May 28, 2024. Of this amount, approximately $0.8 million is in the General Fund, $0.9 million is in the Housing Authority Fund, and $50,000 is in the Miscellaneous Grants Fund.

Building on efforts made since the COVID-19 pandemic, the FY 2023-25 budget restores many services and investments to maintain progress towards addressing community needs. Given the current level of economic uncertainty, the FY 2024-25 Proposed Operating Budget is focused on no-cost operational adjustments to improve service delivery for the community, required budget corrections, and adjustments required in accordance with collective bargaining agreements.

The first year (FY 2024-25) of the FY 2024-26 Proposed Biennial CIP Budget makes strategic investments to maintain and enhance critical infrastructure to protect the City’s existing capital investments and minimize future maintenance and replacement costs.

However, as discussed at the May 28, 2024 study session, a conservative approach is being taken as a result of resource constraints and as a strategy to safeguard our fiscal stability, at a time when much uncertainty remains around contingent legal liabilities.

This report presents information and requests actions necessary to adopt the FY 2024- 25 Operating Budget and adopt the first year (FY 2024-25) of the FY 2024-26 Biennial CIP Budget for the City of Santa Monica, the Santa Monica Housing Authority, and the Santa Monica Parking Authority. Staff also requests that Council approve the second year (FY 2025-26) of the FY 2024-26 Biennial CIP Budget. Since the City Charter requires Council to adopt a budget annually, staff will submit the second year of the CIP Budget to Council for formal adoption, with any necessary revisions, in June 2025.

The report also provides information on cannabis tax rates, outdoor dining rates, and the updated balance of available Council Discretionary Funds. Finally, this report includes actions necessary to revise certain fees and fines, establish parking rates, set the annual Gann appropriations limit, approve the allocation of SB-1 Gas Tax funding to

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eligible projects, revise the Confidential Unit Employees (CUE) Pay Plan; and accept grant awards and renewals.

Background
The FY 2023-25 Biennial Operating Budget reflects the most substantial restoration of ongoing services and introduction of enhanced services to date since the 2020 budget restructuring. The budget was built upon community-driven priorities, to continue to restore City programs and services to the community through strategic investments informed by Council’s five priority areas. The restorations were made possible through a combination of a new voter-approved revenue source, moderate revenue growth, the reallocation of funds, new revenues from public and private partnerships, and staff’s ability to expand capacity for cost-covering programs. The investments incorporated in the biennial budget continue through this second budget year (FY 2024-25). All restorations and new investments funded in the biennial budget are detailed in the adopted budget book. Some of the key investments in the priority areas include:
• addressing homelessness – preparation of a Homelessness Strategic Plan; expanded outreach teams, including Multi-Disciplinary Teams consisting of mental health professionals who deliver immediate and intensive services to people experiencing homelessness, the Homeless Liaison Program (HLP) to expand operating hours, partnerships with outside agencies to provide greater resources to work with clients and connect them immediately to available services, and redesign of the SAMOSHEL interim housing program to accommodate 24/7 intakes.
• clean and safe programs – implementation of the Santa Monica Analytical Real Time Center (S.M.A.R.T Center) to gather and synthesize real time data from an array of technologies to aid police resources, expanded security services at Downtown parking structures and the Pier, maintenance of water features at Ken Genser and Tongva Parks, increased frequency of tree pruning in high-traffic areas to ensure safer conditions for the public and improve the aesthetics of our public spaces, specialized public space maintenance team focusing on waste and debris generated by people experiencing homelessness, enhanced

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monitoring and enforcement of the City’s home-sharing ordinance, enhanced parking structure and lot maintenance program, enhanced community response unit capabilities, and implementation of a Transit Safety Program on buses and at bus stops.
• community & cultural offerings – increased service hours at libraries and the Memorial Park gym and fitness room, enhanced direct service youth programs like CREST, PAL and VAP, including the Summer Lunch Program, continued financial support for the school district’s playground club offering supervised afterschool play time on elementary schoolyards, continuation of the Art of Recovery program which supports production of free public art and cultural programming and events, and creation of a new Pickleball Program. • economic recovery – creation of a small business assistance and tenant improvement fund to provide revolving loans or grants and technical assistance to highest need businesses, advancement in streamlining the City’s permitting processes with the added Senior Planner and restoration of the Neighborhood Grant Program, and modernization of the City’s Business License Tax program.

Likewise, the Council’s five priorities guided investments in the City’s capital improvement program, in particular the General Fund projects, once the most critical maintenance needs and other obligations were addressed. Because the City’s CIP budget has remained underfunded since the COVID-19 pandemic and the need to continue reduced funding to address uncertainty over city liabilities, the CIP unfunded project list has grown to $460.0 million.

The proposed FY 2024-25 Capital Improvement Program budget is strategically allocating its very limited General Fund resources to on-going facility and infrastructure maintenance, and technology upgrades to ensure that projects most closely addressing City Council priorities rise to the top.

The majority of the CIP portfolio is funded by non-General Fund funding sources that are mostly restricted and must fund projects within their enterprise or follow grant

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guidelines. Staff have proactively identified multiple grants and outside resources in order to implement innovative projects that support attainment of various sustainability goals. Below are highlights of some of the larger projects that reflect a commitment to maintaining and enhancing the City’s infrastructure and that focus on a Clean and Safe Santa Monica, a Sustainable and Connected Community and aligned with City Council priorities.

Project Fund Amount
Memorial Park PLD Relocation – relocation of Public
Landscape Division to implement the first phase of the
Memorial Park Expansion
General Fund 1,000,000
Cybersecurity – upgrade and replace system that has
reached end of life
General Fund 612,096
Annual Paving – paving of 2-3 miles of road along California Avenue, Broadway, and Pico Blvd.

Gas Tax,
Local Return
1,700,000
Park Improvement Program – address maintenance issues
identified at Virginia Avenue Park, Tongva Park, Reed Park, Clover Park and Airport Park
Special
Revenue
Fund
250,000
Water Main Replacements – replace approximately 2 miles of water mains in the following areas: 7th St, 11th Ct, 22nd Ct, 24th Ct, Euclid Ct, Michigan Ave, Ocean Ave,
Washington Ave.

Water Fund 7,737,500
Wastewater Main Replacements – replace approximately

1.5 miles of wastewater collection pipes in the following areas: 4th St, 5th Ct, 9th Ct, 24th Ct, 26th Ct, Centinela Ave, Chelsea Ave, Frank Ct, Georgina Pl N, Harvard Ct, Hill Pl N, Maple St, Pico Pl S, Raymond Ave, Raymond Pl N, Santa
Monica Pl S, Stanford St, Washington Pl N, Washington Pl S.

Wastewater
Fund
3,477,800
Urban Forest and Planting Renewal – planting and
removal of approximately 300 trees citywide aiming for a net public tree gain in every neighborhood of 5-10% more trees are planted than removed.

General Fund 250,000
Groundwater Recharge Well – part of the City’s overall goal to be water self-sufficient and reduce reliance on imported water supplies, would fund design and construction of
groundwater recharge well SM-11i to replenish the City’s groundwater aquifers.

Water Fund 2,000,000
Discussion
The Citywide FY 2024-25 Proposed Budget has been revised from the budget presented to Council on May 28, 2024 to reflect final changes primarily based on Council direction. The overall FY 2024-25 Proposed Budget as revised is $765.3 million, net of reimbursements and transfers, and is summarized in the following table.

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FY 2024-25 Citywide Budget
Proposed
Budget
(May 28)
Final
Changes
Proposed
Budget for
Adoption
Citywide Budget before adjustment for reimbursements
& transfers $859.2 $1.8 $861.0
Less reimbursements & transfers 1($95.7) 0.0 ($95.7)
Citywide Budget net of reimbursement & transfers $763.5 $1.8 $765.3 Citywide FTE Permanent Positions 2,032.6 4.0 2,036.6
Citywide FTE As-needed Positions 85.0 0.0 85.0
Total FTEs 2,117.6 4.0 2,121.6
1 These are technical adjustments to eliminate double counting of certain expenditures appearing in two funds.

Final changes to Proposed Budget
Revenues
The citywide FY 2024-25 revenue budget is being adjusted for final changes to include:
• Decrease of $189,760 in the General Fund, reflecting a reduced fee for outdoor dining on the Third Street Promenade to support the City’s economic recovery; • Increase of $907,850 in the Housing Authority Fund to reflect the higher than anticipated award amount of Continuum of Care (CoC) grant funds. This adjustment is required to align the full grant amount with the amount included in the proposed budget presented to Council on May 28th;
• Increase of $50,000 in the Miscellaneous Grants Fund, reflecting a grant award for the City Attorney’s STEP Court program; and
• Increase of approximately $195,000 in the Pier Fund, reflecting the anticipated lease revenue for the approved lease agreement with Pacific Park, as presented to Council on May 28, 2024 (Attachment P).

Operating Expenditures
The modifications to the Proposed Operating Budget, known as final changes, increase the operating expenditure budget by approximately $1.4 million in FY 2024-25. The changes are listed below.

Fund Description
FY2024-25
Proposed

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Budget
General Fund 4.0 Police Officers ($849,840 annually) pro-rated based on estimated timing of when positions would be filled. $424,920 Housing
Authority
Fund
Increase in CoC expenses to align with higher than
anticipated grant award amount as described in the
corresponding revenue change above. This adjustment
is required to align the full grant amount with the
amount included in the proposed budget presented to
Council on May 28th.
$907,850
Miscellaneous
Grants Fund
New grant to support the STEP Court program
described above. $50,000
General Fund $424,920
Other Funds $957,850
Total Final Changes All Funds $1,382,770
Capital Improvement Program Expenditures
The modifications to the Proposed CIP Budget, known as final changes, increase the capital expenditure budget by $370,000 in FY 2024-25 and decrease it by $150,000 in FY 2025-26. Additionally, the allocation to the Citywide Facilities Renewal Program as reflected in the budget plan for FY 2026-27 through FY 2028-29 is being reduced by $500,000 annually.

Fund Description
FY 2024-25
Proposed
Budget
FY 2025-26
Budget
Plan
General Fund Quick Build Enhancements at
Unsignalized Intersections 120,000 100,000
General Fund CCTV Security Camera Program 250,000 250,000 General Fund Alley Renewal Program (500,000)
Total Final Changes 370,000 (150,000)
Personnel Changes
Personnel changes are included in Attachment J. The following are new changes that were not included in the budget presented to Council on May 28, 2024:

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• Add 4.0 Police Officer positions in the Police Department, per Council direction at the May 28th budget study session.
• Delete 1.0 Consumer Affairs Specialist / Add 1.0 Senior Legal Analyst – CAO in the City Attorney’s Office. The change reflects the department’s intent to appropriately classify the position to better reflect the increased, higher-level legal duties this employee is performing, including litigation-related work, community outreach, and strategic analysis. The department will absorb the nominal cost within its budget.
• Delete 1.0 Senior Grants Analyst / Add 1.0 Senior Accountant in the Finance Department. This no-cost staffing adjustment is recommended to better align with scope of responsibilities.
• Delete 1.0 Housing Program Manager / Add 1.0 Housing Administrator – Production in the Housing and Human Services Department (HHS). This no cost staffing adjustment will allow HHS to recruit a subject matter expert to support key City initiatives including the development of City-owned sites identified in the Housing Element, implementation of renter protection programs, and administration of Measure GS funds.

Also included in Attachment I are required adjustments to employee classifications, compensation and position adjustments, resulting from classification and compensation studies conducted by the Human Resources Department, as presented to Council at the budget study session. The budget impact associated with these adjustments was included in the proposed budget presented to Council on May 28.

Budget Resolutions
Adopting the resolutions in Attachments A, B, and C would:
• Adopt the FY 2024-25 budget revenues at the account level, with operating expenditure appropriations for the Salaries and Wages and Supplies and Expenses major expenditure categories within a fund for each department, and capital improvement program budget within a fund;

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• Authorize staff to roll over unspent appropriations for multi-year operating grants not completed at the end of the fiscal year, including federal recovery funding, unspent donations dedicated to programs, and funds for the encumbrances of goods and services ordered and contracted for by FY 2023-24 year-end but not delivered or provided until FY 2024-25;
• Authorize staff to roll over appropriations for Measure CS and Council discretionary unencumbered balances and unexpended encumbrances of the FY 2023-24 Budget for the City’s General Fund; and
• Authorize staff to roll over appropriations for the General Fund and all other NonGeneral Fund unencumbered balances and unexpended encumbrances for the FY 2024-25 CIP budget.

Gann Appropriations Limit
The State Constitution requires state and local governments to adopt an annual appropriation limit. This limit is commonly known as the “Gann Limit.” Under the Gann Limit, a maximum amount is established for annual tax-funded government services.

That amount is to be adjusted each year depending on changes in state population, inflation and the transfer of financial responsibility for various government activities from one level of government to another. Any significant amount of state tax revenue received above that Gann Limit is to lead to future tax rebates or tax cuts. Every June, along with budget adoption, City Council adopts a resolution establishing the Gann appropriations limit for the City of Santa Monica.

The proposed Gann appropriations limit for FY 2024-25 is calculated by applying annual adjustment factors provided by the California Department of Finance to the FY 2023-24 Gann Limit.

Adjustment Factors:

State Per Capita Personal Income . 1.03620
City Population Growth x 1.00340
Adjustment to current year = 1.03972

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FY 2023-24 (current year) Gann Limit x $ 2,947,395,776
Proposed FY 2024-25 Gann Limit = $ 3,064,466,336
Appropriations Subject to Gann Limit 328,015,760
Net Under / (Over) Limit $ 2,736,450,576
Appropriations subject to the Gann Appropriations Limit, primarily in the General Fund, are $2,736,450,576 below the limit. Examples of tax revenues governed by the Gann Appropriations Limit are property taxes, sales tax, transaction and use tax, transient occupancy tax, utility tax, parking facility tax, and the business license tax. These revenues subject to the limit are reduced by any refunds, certain benefits payments, qualified capital projects, and court or federal mandates.

A resolution to establish the City’s FY 2024-25 Gann Appropriations Limit is included in Attachment K.

Fees/Fines/Rates
Master fee, fine, and parking rate resolutions are annually presented to Council as part of the budget adoption process.

Citywide Fee Updates
The master fee resolution (Attachment E) contains user fees and rates charged by the City, which are designed to recover the City’s costs, including staff time. Per previous Council actions, most City user fees will increase administratively by 3.7% on July 1, 2024, reflecting the FY 2024-25 increase in total City compensation (which includes salary, healthcare, retirement, and workers’ compensation costs) projected at the time of preparation of the Proposed FY 2024-25 Budget. Also included in the resolution are new fees and modifications to existing fees, as presented to Council during the budget study session, including 23 new fees related to Emergency Medical Services (EMS), facility rentals and use, Certified Unified Program Agency fees (CUPA), grading review permit fees, factory-built housing, and City Planning fees; revisions to 48 fees related to CUPA, fire permits, airport fees, landscape services, taxicab, medicinal cannabis,

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Concealed Carry Firearm permit (CCW) renewal application, mortuary services; and the deletion of five fees related to library fees, taxicab fees, and EV user fees.

Most of the fines included in the Master Fine resolution (Attachment F) have remained unchanged from the previous fiscal year with the following exceptions:
• The Library is requesting the deletion of the one remaining overdue fine, Collection Agency Referral, from the master fine resolution to align with the elimination of other overdue fines for adult cardholders. • The Code Enforcement Division is recommending increases to three existing fines to deter the public from violating Chapter 13.06.050, Public Nuisances, of the City’s Municipal Code and the impact caused to the community. Additionally, six fines are recommended for deletion from the fine schedule because they are not used for citation purposes.
• The Resource Recovery and Recycling Division is recommending three fines related to mandatory recycling be incorporated into the Master Fine Schedule.

These fines were authorized by Ordinance No. 2685 (CCS) and codified in section 5.46.130 of the Santa Monica Municipal Code.

Promenade Outdoor Dining
On June 11, 2024, Council directed staff to evaluate a request from Downtown Santa Monica, Inc. and return with recommendations to reduce the per square foot monthly fees associated with the use of sidewalks for outdoor dining on the Third Street Promenade to support the City’s economic recovery. In addition, the City Manager and City Attorney were asked to evaluate and return to City Council with recommendations for incentives such as waiving fees for a period of time to help support and attract restaurants and entertainment uses to the Promenade and lend to the vibrancy of the area. In response to this direction, staff is proposing to waive the Outdoor Dining Fee on the Third Street Promenade for one fiscal year and charge a reduced fee of $1 per square foot per month for the second fiscal year pursuant to the attached resolution (Attachment H). While the impact to the General Fund will be $189,760 in FY 2024-25 and $149,423 in FY 2025-26, staff agrees that implementing a temporary fee reduction

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could enhance the appeal of the Promenade for prospective businesses. Outdoor dining rates on the Promenade are currently among the highest in the region at $4.09 per square foot per month, and they are also the highest tier compared to the City’s other business districts. A temporary reduction in fees on the Promenade could help to further activate the Promenade with more outdoor activity and it will provide much-needed support to the local restaurants that continue to be heavily impacted by the loss in tourism and the slow return of daytime workers to the District, coupled with the recent zoning changes to help support the conversion of vacant retail spaces to entertainment and dining uses, the decision to reduce fees seeks to help incentivize new businesses to open on the Promenade. A citywide Outdoor Dining fee study will be conducted by staff during FY 2024-25 with the goal of including any proposed rate changes for Council consideration at the City’s May 2025 budget study session.

Parking
There are no proposed rate changes to transient and permit parking lots/structures at this time. A comprehensive parking rates resolution (Attachment G) states all the parking fees and rates and provides for Council to affirmatively approve them. The resolution provides for the following changes: 1) Extend the downtown discount validation program through June 30, 2025; 2) Extend the bulk parking fee agreement for the State of California Judicial Council through June 30, 2025; 3) Increase preferential parking permit fees by 3.7%, reflecting the FY 2024-25 increase in total City compensation; 4) Continue the Pilot Electric Vehicle Parking Permit for Lots 7, 8, 9, and 11; 5) Make plug-in hybrids eligible for the Pilot Electric Vehicle Parking Permit; and 6) Establish a fee for overnight parking permits for oversized vehicles.

SB-1 Gas Tax Revenues
In April 2017, SB 1, formally known as the Road Repair and Accountability Act (RMRA) of 2017, was signed into law. SB1 establishes the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the state highway and local street and road systems. Current fund estimates provided by the League of California Cities indicate that the City of Santa Monica will be eligible to receive approximately $2.4 million in SB1 funding in FY 2024-25, in addition to the City’s existing annual gas

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tax revenues of approximately $2.6 Million. Staff recommends approving the attached resolution (Attachment L) identifying the use of FY 2024-25 SB1 estimated allocation of $2.4 million for the Annual Paving and Sidewalk Repair Program capital improvement project, which was already included in the FY 2024-26 Proposed CIP Budget that was presented to Council on May 28.

Confidential Unrepresented Employee (CUE) Pay Plan
The City Manager proposes a revision to the Confidential Unrepresented Employees (CUE) Pay Plan to add the following classifications: Administrative Services Officer (assigned to Human Resources only), Principal Budget Analyst, Senior Budget Analyst, Budget Analyst, Financial Systems and Reporting Administrator, Payroll Administrator, Payroll Analyst I and Payroll Analyst II. The CUE Pay Plan includes job classifications in the Finance and Human Resources Departments; employees who are participants of the CUE Pay Plan are confidential employees who, in the course of their job duties, have regular access to confidential information relating to the City’s administration of employer-employee relations. As such, these job classifications are not represented by any recognized bargaining unit in the City, but whose benefits of employment are set forth in the CUE Pay Plan. Staff recommends approving the attached resolution (Attachment M) to revise the Confidential Unrepresented Employees Pay Plan (FY 2022-25) to add job classifications listed above.

Cannabis Tax
The City’s cannabis business tax rate rates are currently set at 2% for medicinal sales and 3% for adult-use sales with a maximum tax rate of 10% that can be adjusted by resolution. Per SMMC 6.204.060(a), cannabis retailers must report gross receipts and remit cannabis taxes on or before June 30th. Cannabis business tax data is limited as neither permitted retailer has been in operations a full reporting period. Based on both operators’ start dates in Santa Monica, complete cannabis tax data will not exist for the two operators until FY 2026-27.

The table below shows the current and maximum tax rates for cannabis retailers in several jurisdictions within Los Angeles County and includes the population and number

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of retailers in each jurisdiction and the population. Adult-use cannabis business tax rates range from 4% up to 10%. A number of cities have separate rates for medicinal cannabis with rates as low as 0.5%. The average adult use rate amongst the jurisdiction listed below is 6.3%.

City Retail
Maximum
Retail
Current
Retail
Allowed
Population # of
Retailers
Los Angeles County 6% 4% N 1,012,265 0
Los Angeles City 5%-10% 5%-10% Y 3,855,122 554
Long Beach 8%-12% 6%-8% Y 469,893 38
Pasadena 4% 4% Y 139,382 3
Baldwin Park 0.5%-4% 0.5%-4% N 76,644 0
Commerce 5% + $52K 5% + $52K Y 13,035 6
Montebello Varies Varies Y 63,538 14
Maywood 10% 10% Y 27,850 6
El Monte 9% 5% Y 115,356 6
Pomona 6% 6% Y 151,511 4
West Hollywood 7.5% 7.5% Y 34,971 15
Culver City 8%-10% 5%-6% Y 39,528 10
Inglewood N/A N/A N 107,762 0
El Segundo N/A N/A N 16,931 0
Hawthorne N/A N/A N 85,692 0
Manhattan Beach N/A N/A N 35,719 0
Beverly Hills N/A N/A N 34,677 0
Average or Total 7.2% 6.3%
On April 23, 2024, Council held a study session on cannabis social equity where direction was given on the framework of an equity program. During that study session, staff outlined the overall schedule for the development of the adult-use cannabis program. Staff expects to return with the draft adult-use ordinance along with results from the equity assessment, which will inform the equity component of the Santa Monica’s cannabis program. Even after the adoption of an adult-use ordinance, it seems unlikely that any other cannabis retailers will open until mid- to late-2025 at the earliest due to the application and permitting requirements at the local and State level. As a result, from an economic development perspective, it may be advisable for Council to

14.A.c
Packet Pg. 690 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 16 of 21
wait to raise cannabis business taxes until the City has a sense of the demand for cannabis businesses to open in Santa Monica.

There is currently one cannabis retailer open in Santa Monica with one other permitted retailer that is anticipated to open in June 2024. Both retailers were selected as a result of the City’s medicinal cannabis selection process, have obtained the required state and local permits, and were authorized to sell adult-use cannabis with the Council adoption of Interim Zoning Ordinance 2764.

The barriers to entry to the cannabis industry are already high and tax rates may be a deciding factor in whether businesses choose to locate in Santa Monica. Because the cannabis industry is relatively new in Santa Monica, Council should consider that aligning the City's tax rate with neighboring jurisdictions at this time may disincentivize new cannabis businesses from locating in Santa Monica. Analysis by the City’s consultant HdL Companies (HDL) indicates that there are a number of retailers located immediately adjacent to Santa Monica’s borders with Los Angeles. HDL indicates that it is likely that these retailers capture a significant percentage of sales from walk-in customers that live in Santa Monica. Further, there are also more than 50 retailers and non-storefront cannabis delivery services within a 15-to-20-minute driving distance of Santa Monica, which most likely conduct delivery sales into Santa Monica.

Staff recommends that Council not raise the cannabis tax rate at this time and instead wait until the adult use cannabis program is more formed so that taxes can be set with a more comprehensive understanding of the cannabis market, wait until we have more revenue data from the two existing operators, and also have an opportunity to discuss tax rate changes with existing and future operators.

Acceptance of Grant Awards
Acceptance of Discretionary Grant from Supervisorial District 3 The Criminal Prosecution Unit of the City Attorney’s office has been awarded $50,000 from Supervisor Horvath’s Office. This grant money will be used to support the STEP

14.A.c
Packet Pg. 691 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 17 of 21
program that is currently running in the City. STEP Court brings a criminal court to Santa Monica once a month to hold court proceedings. It is a collaborative court that brings together those who are experiencing homelessness, drug, or mental health issues with a service provider to help address the underlying issues that brought them in contact with the criminal justice system. Currently there are about 30 participants in the program, and it has already seen two successful graduations. Staff is requesting authorization to accept these grant funds and to appropriate the funds (as reflected in final changes).

Acceptance of Federal CoC Renewal Grants
The CoC Program is a federally funded competitive grant program designed to provide housing subsidies (supportive housing) to homeless, disabled households. For FY 2024-25, the U.S. Department of Housing and Urban Development (HUD) awarded a CoC grant in the amount of $4,822,406. Staff is requesting authorization to accept these grant funds from HUD.

These funds will support the City's CoC Program, which aids both sheltered and unsheltered individuals experiencing homelessness by providing the housing and services needed to facilitate their transition into supportive permanent housing, with the objective of achieving long-term stability. The funding for this grant is allocated in the Housing Authority Fund. The majority of the grant funds were included in the FY 2024- 25 Proposed Budget presented to Council on May 28, 2024. That amount, in addition to the final change of $907,850, reflected in the Final Changes section of this report, results in the full appropriation of the $4,822,406 grant award.

Council Discretionary Funds Updated Balance
As discussed at the Budget Study Session, Council allocates discretionary funds to assist the community in special projects or support important but otherwise unfunded priorities. Projects and programs supported by Council discretionary funds for the past three years, as well as funds allocated this fiscal year (FY 2023-24) are detailed in Attachment Q.

14.A.c
Packet Pg. 692 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 18 of 21
Council allocated the remaining FY 2023-24 discretionary funds during the April 23, 2024 Council meeting. As such, there are no unprogrammed FY 2023-24 discretionary funds remaining. The FY 2024-25 proposed budget for Council discretionary funds is $127,653, which can be programmed at Council’s direction at any time. Council may direct staff tonight to allocate any portion of the available funds and adopt those as part of budget adoption.

Additionally, the unused balance of Council travel funds in FY 2023-24 will be determined once the City’s books close for the fiscal year. The balance will be shared with Council at that time and staff will seek direction on next steps.

Past Council Actions
Meeting Date Description
06/27/23
(Attachment R)
Adoption of the First Year and Approval of the Second Year of the FY 2023-25 Biennial Budget, Adoption of the Second Year of the FY 2022-24 Biennial Capital Improvement Program Budget
02/27/24
(Attachment S)
Adoption of the FY 2023-24 midyear revenue and expenditure budget adjustments and approval of the corresponding
adjustments to the FY 2024-25 budget plan
05/28/24
(Attachment O)
Fiscal Year 2024-25 Proposed Budget and Fiscal Year 2024-26 Biennial Capital Improvement Program Budget
Environmental Review
The FY 2024-25 Proposed Budget is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines (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.” This report provides a programmatic overview of the City’s budget. The implementation of capital projects or programs would be subject to future CEQA review as applicable.

Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

14.A.c
Packet Pg. 693 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 19 of 21
The Reduced Airport Fees are exempt from CEQA pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines sections 15061(b)(3), 15369, and 15273.

The reduction is a ministerial project to comply with the City’s 2017 Consent Decree with the Federal Aviation Administration and with certain federal grant assurances, which does not require discretionary approval. Pub. Resources Code § 21080, subd. (b)(1); CEQA Guidelines § 15369. Additionally, the Reduced Airport Fees are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines (common sense exemption), which applies when “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 Reduced Airport Fees will not result in any significant impact on the environment from increased operations. Lastly, there is no reasonable probability that the Reduced Airport Fee will have a significant effect on the environment due to unusual circumstances.

Financial Impacts and Budget Actions
The FY 2024-25 Citywide Budget as revised, including operating and capital budgets, is $765.3 million, net of reimbursements and transfers, as described below:

Revenues (in millions, rounded)
FY 2024-25
Proposed
Budget
General Fund 458.8
All Other Funds 421.5
Total, before adjustment for reimbursements & transfers 880.3 less reimbursements & transfers (95.7)
Total, net of reimbursements & transfers 784.6
Operating Expenditures (in millions, rounded)
FY 2024-25
Proposed
Budget
General Fund 449.9
All Other Funds 304.6
Total, before adjustment for reimbursements & transfers 754.5 less reimbursements & transfers (81.4)
Total, net of reimbursements & transfers 673.1

14.A.c
Packet Pg. 694 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 20 of 21
Capital Expenditures (in millions, rounded)
FY 2024-25
Proposed
Budget
FY 2025-26
Budget
Plan
General Fund 13.4 15.2
All Other Funds 93.1 102.2
Total, before adjustment for reimbursements & transfers 106.5 117.4 less reimbursements & transfers (14.3) (14.8)
Total, net of reimbursements & transfers 92.2 102.5
Full Time Equivalent (FTE) Positions
FY 2024-25
Proposed Budget
Permanent Temporary
General Fund 1,280.3 76.0
All Other Funds 756.3 9.0
Total Citywide FTEs 2,036.6 85.0
Adoption of the Proposed Budget as amended by Attachment D would formally adopt the FY 2024-25 Operating and CIP budget and approve the second year of the City’s FY 2024-26 Capital Improvement Program Budget.

Prepared By: Jennifer Young, Budget Manager
Approved Forwarded to Council
Attachments:

A. Attachment A - Budget Resolution (City Council)
B. Attachment B - Budget Resolution (Housing Authority) C. Attachment C - Budget Resolution (Parking Authority) D. Attachment D - Final Budget Adjustments for FY 2024-25 E. Attachment E - Master User Fee Resolution
F. Attachment F - Master Fine Resolution
G. Attachment G - Parking Rates Resolution
H. Attachment H - Resolution Waiving Outdoor Dining Fees

14.A.c
Packet Pg. 695 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 21 of 21
I. Attachment I - General Salary Resolution
J. Attachment J - Position and Classification Changes
K. Attachment K - Gann Appropriations Limit Resolution
L. Attachment L - RMRA Resolution
M. Attachment M - CUE Pay Plan Resolution
N. Attachment N - Cannabis Tax Rate Resolution
O. Attachment O - May 28, 2024 Staff Report
P. Attachment P - May 28, 2024, item 5-E Staff Report
Q. Attachment Q - Council Discretionary Funds
R. Attachment R - June 27, 2023 Staff Report
S. Attachment S - February 27, 2024 Staff Report
T. Written Comments
U. PowerPoint Presentation

14.A.c
Packet Pg. 696 Attachment: Attachment C. FY 2024-25 Operating and CIP Budget Adoption (6524 : Parking Facility Tax Increase for the November 2024 Ballot) City Council
Report
City Council Meeting: July 9, 2024
Agenda Item: 16.C
1 of 2
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: 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.

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

14.A.d
Packet Pg. 697 Attachment: July 9th Staff Report (6524 : Parking Facility Tax Increase for the November 2024 Ballot) 2 of 2
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.

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

A. Complete Language 16.C.

14.A.d
Packet Pg. 698 Attachment: July 9th Staff Report (6524 : Parking Facility Tax Increase for the November 2024 Ballot) Draft Ballot Language
Parking Facility Tax Measure
To maintain essential city services, including enhancing public safety, creating safe routes to school to protect children, and lowering the risk of fatal traffic accidents, shall the measure increasing the City of Santa Monica Parking Facility Tax by 8% for users including visitors and tourists, causing no additional cost in City-owned lots and structures (including downtown and the beach) because of a partial City exemption, generating approximately $6,700,000 annually until ended by voters, be adopted?
Parking Facility Tax Advisory Measure
If Measure __ is enacted, should at least half of the additional revenue raised be used to protect public safety in Santa Monica, including attracting and retaining well-trained police officers and firefighters, improving crime and homelessness prevention services, and increasing police patrols and enhancing emergency medical response in neighborhoods and public areas, including downtown, the pier, and the beach?

14.A.e
Packet Pg. 699 Attachment: PowerPoint Presentation (6524 : Parking Facility Tax Increase for the Estimated Revenue
Parking Facility Tax – 8% increase estimated to generate $6.7 million  Advisory measure to allocate 50%, or approx. $3.35 million to public safety and homeless crisis
 Remaining 50% to be allocated as part of biennial budget process

14.A.e
Packet Pg. 700 Attachment: PowerPoint Presentation (6524 : Parking Facility Tax Increase for the • Adopt a Resolution to:
• Place a measure on the November 5, 2024, General Municipal Election Ballot to increase the City’s Parking Facility Tax rate by 8% and exempt City-owned lots and structures from the tax increase • Accompanied by an advisory measure that would allow voters to express their preference that at least half of the additional revenue generated should be allocated to address public safety and homelessness, and;
• Identify Council Members, if any, who wish to prepare arguments for or against the Parking Facility Tax measure;
Council Actions

14.A.e
Packet Pg. 701 Attachment: PowerPoint Presentation (6524 : Parking Facility Tax Increase for the City Council
Report
City Council Meeting: July 23, 2024
Agenda Item: 14.B
1 of 2
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Adoption of a Resolution Disapproving Signs Placed on the Third Street Promenade
Recommended Action
Offered for City Council consideration is a Resolution expressing the Council’s disapproval of signs placed on the Third Street Promenade brought pursuant to a Council 16 Item.

Summary
The Council approved a 16 Item to direct the City Attorney to prepare a resolution expressing the Council’s disapproval of signs posted on the front of a building on the Third Street Promenade that, in part, state that the City Manager approves of the County’s “free needle and meth pipe” program, which is not accurate, and based upon testimony of local businesses, the signs are unjustifiably harming those businesses.

Discussion
Just as individuals have First Amendment rights to free speech, the City Council also has a First Amendment right to express views on matters of public interest under the “Government Speech” doctrine. As harm can come from expression that is false and/or counter to the public interest, the City Council may feel compelled to express its disapproval of harmful and/or counterproductive speech, such as the referenced signs.

The Council may approve the Resolution, which expresses the Council’s views on the signs.

14.B
Packet Pg. 702
2 of 2
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the proposed action.

Prepared By: Douglas Sloan, City Attorney
Approved Forwarded to Council
Attachments:

A. Resolution re Promenade Signs 072324
B. Written Comments

14.B
Packet Pg. 703
1 City Council Meeting: July 23, 2024 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

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

DISAPPROVING OF SIGNS PLACED ON THE THIRD STREET PROMENADE THAT STATE THE CITY MANAGER APPROVES THE COUNTY’S “FREE NEEDLE AND

METH PIPE PROGRAM
WHEREAS, the City of Santa Monica and the City Council are respectful of everyone’s First Amendment rights to free speech; and
WHEREAS, the City Council also has a First Amendment right to express views on matters of public interest under the “Government Speech” doctrine; and WHEREAS, in some instances harm can come from expression that is false and/or counter to the public interest, and therefore the City Council may feel compelled to express its disapproval of harmful and/or counterproductive speech; and WHEREAS, temporary banner signs have been placed upon a building along the 3rd Street Promenade that falsely state that the City Manager approves of the County’s “free needle and meth pipe” program; and
WHEREAS, in fact the program is implemented by a contractor of Los Angeles County pursuant to state law, and the City Council and City Manager play no role in authorizing the program; further, to the extent that there is City policy on the program, the City Council is the source of any such City policy on the subject, not the City Manager; and
WHEREAS, the City Council has taken numerous actions to attract and retain businesses and support the City’s economic recovery and revitalization of the Third Street Promenade including, but not limited to: (1) reducing the cost of outdoor dining, (2) expanding allowable uses, (3) adopting changes in zoning to encourage a more active

14.B.a
Packet Pg. 704 Attachment: Resolution re Promenade Signs 072324 (6531 : Promenade Signs Reso) 2 nightlife and entertainment presence, and (4) authorizing a variety of administrative changes that streamline the permit process and provide commercial uses greater flexibility in the downtown area; and
WHEREAS, at a time when the City is still recovering from the pandemic and the resulting economic losses to both City government and local businesses, the signs are harmful and may result in further economic harm to the City and especially to those businesses located on the 3rd Street Promenade; representatives of many of the businesses have publicly expressed their views that the signs are harmful, as well.

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

SECTION 1. The City of Santa Monica City Council hereby expresses its disapproval of the banner signs placed on the 3rd Street Promenade that falsely state that the City Manager approves of the County’s “free needle and meth pipe” program, and therefore the Council urges that the signs be removed, as they are counter to the public interest and the City’s stated goal of economic well being as they may deter people from visiting and shopping in Santa Monica at a time when the City’s retail, travel, and entertainment businesses are still recovering from the pandemic.

SECTION 2. This Resolution shall posted on the City’s website for so long as the referenced signs remain.

SECTION 3.The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
_________________________
Doug Sloan, City Attorney

14.B.a
Packet Pg. 705 Attachment: Resolution re Promenade Signs 072324 (6531 : Promenade Signs Reso) 1 David Yakobson
From: John Alle <[email protected]>
Sent: Monday, July 22, 2024 12:54 PM
To: Phil Brock; Lana Negrete; Christine Parra; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; Susan Cola; David White; Susan Cline; Nikima Newsome; councilmtgitems; Council Mailbox; Council Mailbox Subject: July 22, 2024 Letter
Attachments: July 22Final.pdf

EXTERNAL
Please see attached letter.
--
John 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 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 706 Attachment: Written Comments (6531 : Promenade Signs Reso) 2632 WILSHIRE BLVD., STE. 100 SANTA MONICA, CA 90403
PHONE 310-319-1511 | FAX 626-304-0835 | JOHNALLECOMPANY.COM July 22, 2024
Santa Monica Mayor Phil Brock, Vice Mayor Lana Negrete, Councilmember Oscar de la Torre, Councilmember Christine Parra, Councilmember Gleam Davis, Councilmember Caroline Torosis, Councilmember Jesse Zwick, City Manager David White Assistant City Manager Susan Cline, City Attorney Douglas Sloan, Assistant City Attorney Susan Cola, and City Clerk Nikima Newsome Ladies and Gentlemen:

A. The facts stated in this Part A are totally beyond any dispute and form the basis for the comments and demands in Part B.

1. On July 19, 2024, the Santa Monica City Clerk posted on the internet an Agenda for the Council meeting on July 23.

2. Item 14 B of the Agenda is a proposed adoption by Council of a Resolution disapproving signs placed on the Third Street Promenade (the 3rd Street Promenade).

3. The Item begins by stating that Council, in an Item 16 at the prior meeting, had requested the Resolution
that was being put forward.

4. The Item’s Staff Report and Resolution were prepared by City Attorney Douglas Sloan on July 16 and forwarded to Council by City Manager David White on July 17.

Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 707 Attachment: Written Comments (6531 : Promenade Signs Reso) 2632 WILSHIRE BLVD., STE. 100 SANTA MONICA, CA 90403
PHONE 310-319-1511 | FAX 626-304-0835 | JOHNALLECOMPANY.COM

5. The Staff Report expressly stated that Council had opined those signs (stated in the plural throughout, but there is only one that is intended to be involved) are not accurate. The sign, or banner, referred to is only the banner then existing at my property on the 3rd Street Promenade.

6. The Resolution disapproves of the banner then existing. In its third and fourth Whereas clauses, the Resolution says the banner FALSELY STATES that the City Manager approves of the County’s free needle and meth pipe program.

7. The Resolution proposed would express Council’s disapproval of the banner’s statement and urge that the banner existing with the statement concerning the City Manager be removed.

8. Each and every recipient of this email has received comprehensive communications from me and copies of email correspondence to and from City Manager David White demonstrating, beyond a shadow of a doubt, that the banner referred to in the staff report and resolution is totally accurate and not false.

9. On July 20, a banner different from the banner referred to in Item 14 B was placed on my property pursuant to a calendred plan and strategy in no way caused by the Item or the proposed Resolution.

As a result of the foregoing, please take notice of the following:

B. 1. I have been defamed by statements of the Mayor, Vice Mayor, City Council, City Manager, and by the staff report prepared, reviewed, and/or approved by all of you addressed in this letter, with regard to the Resolution and public comments claiming that the prior banner was false.

2. The false statement charge against me has been made by each and every recipient of this email.

3. The defamation was malicious and intentional because of the knowledge by each such recipient that the banner was true. Therefore, punitive damages will be awarded.

Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 708 Attachment: Written Comments (6531 : Promenade Signs Reso) 2632 WILSHIRE BLVD., STE. 100 SANTA MONICA, CA 90403
PHONE 310-319-1511 | FAX 626-304-0835 | JOHNALLECOMPANY.COM

4. The item must be pulled because it is entirely based on facts relating to the prior banner. Additional defamation claims will be made if any substitute item proposed for Tuesday July 23, 2024 or in the future is not truthful.

5. In due course, I will provide all prospective defendants with the contact information of my lawyer.

I am forwarding a copy of this letter to members of The Santa Monica Coalition, the public and media.

Sincerely,
John Alle
Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 709 Attachment: Written Comments (6531 : Promenade Signs Reso) 1 David Yakobson
From: Stanley H Epstein <[email protected]>
Sent: Monday, July 22, 2024 1:18 PM
To: Douglas Sloan; David White; Phil Brock; Lana Negrete; Gleam Davis; Clerk Mailbox; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick Cc: John Alle; Alyssa; jorge casuso
Subject: Item 14 B at tomorrow’s Council meeting
Follow Up Flag: Follow up
Flag Status: Flagged

EXTERNAL
Ladies and Gentlemen.I fully concur with every word in John Alle’s letter to you and others. Further, it is shocking that the Agenda description for 14 B , including the staff report and draft Resolution, has not been changed or removed although the new banner has existed for about 55 hours in full view. Please act appropriately to protect the public, including John.

Sincerely, Stan Epstein. 310 393 7619
Sent from my iPad
Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 710 Attachment: Written Comments (6531 : Promenade Signs Reso) 2 David Yakobson
From: Stanley H Epstein <[email protected]>
Sent: Monday, July 22, 2024 2:43 PM
To: Douglas Sloan; David White; Phil Brock; Lana Negrete; Gleam Davis; Clerk Mailbox; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick Cc: John Alle; jorge casuso; Alyssa
Subject: Re: Item 14 B at tomorrow’s Council meeting

EXTERNAL
I believe that John ‘s defamation claim, including a demand for punitive damages for your prior knowledge of its false statements, , would be increased by a large multiple if Agenda Item 14 D remains unchanged in both the Staff Report and the Resolution, or is changed in a way that is not totally truthful.

Stan Epstein. 310 393 7619
Sent from my iPad
> On Jul 22, 2024, at 1:17 PM, Stanley H Epstein <[email protected]> wrote:
>
> Ladies and Gentlemen.I fully concur with every word in John Alle’s letter to you and others. Further, it is shocking that the Agenda description for 14 B , including the staff report and draft Resolution, has not been changed or removed although the new banner has existed for about 55 hours in full view. Please act appropriately to protect the public, including John.
>
> Sincerely, Stan Epstein. 310 393 7619
>
> Sent from my iPad
Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 711 Attachment: Written Comments (6531 : Promenade Signs Reso) 3 David Yakobson
From: Stanley H Epstein <[email protected]>
Sent: Monday, July 22, 2024 3:29 PM
To: Douglas Sloan; David White; Phil Brock; Lana Negrete; Gleam Davis; Clerk Mailbox; Oscar de la Torre; Christine Parra; Caroline Torosis; Jesse Zwick Cc: John Alle; jorge casuso; Alyssa
Subject: Re: Item 14 B at tomorrow’s Council meeting

EXTERNAL
Section 1 of the proposed Resolution says that Council urges that the banner (speaking of David White’s actions) and existing until Saturday morning be removed.

There is no question that the banner referred to was removed on Saturday, as explained in John Alle’s email to you and others of several hours ago (although not because it was untrue, which it was not). Nevertheless, not word of Item 14 B has been changed and each minute the number of those seeing the defamatory material increases.

Please respect the rights of John and all other residents.

Stan Epstein. 310 393 7619
Sent from my iPad
> On Jul 22, 2024, at 2:42 PM, Stanley H Epstein <[email protected]> wrote:
>
> I believe that John ‘s defamation claim, including a demand for punitive damages for your prior knowledge of its false statements, , would be increased by a large multiple if Agenda Item 14 D remains unchanged in both the Staff Report and the Resolution, or is changed in a way that is not totally truthful. >
> Stan Epstein. 310 393 7619
>
> Sent from my iPad
>
>> On Jul 22, 2024, at 1:17 PM, Stanley H Epstein <[email protected]> wrote:
>>
>> Ladies and Gentlemen.I fully concur with every word in John Alle’s letter to you and others. Further, it is shocking that the Agenda description for 14 B , including the staff report and draft Resolution, has not been changed or removed although the new banner has existed for about 55 hours in full view. Please act appropriately to protect the public, including John.
>>
>> Sincerely, Stan Epstein. 310 393 7619
>>
>> Sent from my iPad
Item 14-B
July 23, 2024
Item 14-B
July 23, 2024

14.B.b
Packet Pg. 712 Attachment: Written Comments (6531 : Promenade Signs Reso) City Council
Report
City Council Meeting: July 23, 2024
Agenda Item: 16.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: Designation of voting delegate and alternate(s) for the League of California Cities Annual Conference and Expo, to be held October 16 - 18, 2024, in Long Beach, California.

Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council

16.A
Packet Pg. 713
City Council
Report
City Council Meeting: July 23, 2024
Agenda Item: 16.B
1 of 1
To: Mayor and City Council
From: Nikima Newsome, Interim City Clerk, Records and Election Services Department
Subject: Request of Mayor Brock and Councilmember Davis that the City Attorney return at the next meeting with his proposals (included in the staff report for the July 9 meeting) to address the recent U. S. Supreme Court decision in Snyder which, absent a clear ban on gratuities by a local jurisdiction, purports to allow city officials to accept gratuities. This item was not addressed by Council at its last meeting.

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

16.B
Packet Pg. 714