property as hotel rooms, furnished short-term rentals and/or long-term rentals--in the property owner’s sole and absolute discretion--as and when each unit becomes vacant.
This right to operate up to 52 hotel rooms is further confirmed by the 1992 Judgment entered by the Los Angeles Superior Court in LASC Case No. WEC 128286.
I have obtained a copy of that Judgment, and a copy is enclosed. That Judgment is a final binding decision with which the City must comply.
Furthermore, the City would be “shooting itself in the foot” were it to take the position that these 52 units cannot be operated as hotel rooms generating as much as $1,162,755 annually in bed tax revenue.
SRP’s RIGHT TO OPERATE 52 HOTEL ROOMS AT THE
SOVEREIGN IS MADE CRYSTAL CLEAR IN BOTH THE
1992 AGREEMENT AND THE 1996 AMENDMENT
The right to operate 52 hotel rooms is clear and unambiguous in the fully executed agreements with the City, both of which are accompanied by written approval of the then City Attorneys:
Hotel Units. The City and the [Rent Control] Board stipulate and agree that all units in the main building at the Subject Property, except for the basement units and those specific Apartment Units identified on the second and third floors of the main building, shall be deemed permanently exempt
from the RCCA irrespective of future use or occupancy and [the property owner] shall specifically be permitted to operate these units as hotel rooms for occupancy by transient guests or for use by long-term tenants. These units are identified on Exhibit "A" as Unit Nos. 102-106, 109-111, 111A, 112, 114, 204-210, 301, 302, 306-311, 401-412, 414, 501-512, and
514 ("Hotel Units"). There are a total of fifty-two (52) Hotel Units at the Subject Property. (¶2 of the 1992 Amendment.)2 2 The 1996 Amendment switched some of the units between Hotel Units (a/k/a Uncontrolled Units) and Apartment Units. Per the 1996 Amendment, the units available for hotel use (after repayment of the loan and upon vacancy by the existing tenants) are as follows: Unit #s 102, 103, 104, 105, 106, 109, 110, 112, 114, 205, 206, 209, 210,
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Hotel Usage.
(a) The City and the Board hereby stipulate and agree that except for the occupancy rights of any Existing Tenants currently occupying a Hotel Unit as set forth in Section 3 herein, [property owner] is legally authorized to operate each Hotel Unit as a hotel room for daily, weekly and
monthly occupancy by transient guests, and such use
shall be deemed lawful without requiring any additional land use, zoning or other permits or approvals from the City. [Property owner] agrees to comply with all City rules and regulations applicable to similarly situated hotels, except as otherwise provided herein. The City and the
Board further stipulate and agree that these units shall be permanently exempt from the RCCA regardless of their
future use and that use of the Hotel Units as hotel rooms for daily, weekly and monthly occupancy by transient
guests shall be deemed to be in compliance with the
RCCA, the City’s General Plan, the Zoning Ordinance,
and all other City laws and ordinances.
(b) Based upon the special circumstances of this matter, and in consideration for deed restricting the Apartment Units, the City hereby stipulates and agrees that use of the
Hotel Units for daily, weekly and monthly occupancy by
transient guests shall be legally permitted to continue permanently as a legal non-conforming use regardless of the present or future zoning of the Subject Property.
(c) Nothing herein shall be construed to prohibit or otherwise limit use of the Hotel Units for short or long term
residential purposes, and such residential use of the
Hotel Units by tenants will not affect the status of the Hotel Units as permanently exempt from the RCCA as
set forth herein.
212, 214, 303-314, 401-414, 501-514, except there are no units identified as 313, 413, and 513.
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(d) There shall be no limit on the sums [property owner] can charge for occupancy of the Hotel units, whether such
occupancy is by short-term or long-term occupants,
whether guests or tenants; provided, however, that the
rent [property owner] can charge any Existing Tenant
occupying a Hotel Unit shall be limited as set forth in Sections 3.c. and d. herein.
(¶5 of the 1992 Agreement.)
Hotel Usage. Except as provided in this Section, Owner
may operate the [52] Uncontrolled Units as "Hotel Units" in accordance with Section 5 of the July 6, 1992
Agreement . . . . (¶5 of the 1996 Amendment.)
BACKGROUND
The Sovereign Hotel Apartment building was constructed in 1928. It is a fivestory Spanish Colonial Revival structure with a landscaped inner courtyard located at 205 Washington Avenue in Santa Monica. It is located a mere block from Palisades Park and a short distance from the Santa Monica Beach and Pacific Ocean.
The Sovereign contains 86 units.
In 2019, the City itself published this summary of the property:
“The number of single and one bedroom units and the
availability of daily maid service seems to indicate that the building may have been targeted primarily at those seeking a vacation residence. In the 1930s, the Sovereign’s operation appears to have transitioned to include a more traditional hotel format with the construction of the small wing that may have contained a dining room. The street level sign
identifying the building as the ‘Sovereign Hotel’ also dates from this era.” (Miranda Iglesias, “History Spotlight:
Sovereign Apartment/Hotel,” City of Santa Monica blog
(July 18, 2019), https://www.santamonica.gov/blog/historyspotlight-sovereign-apartment-hotel.) Litigation Over Sovereign’s Hotel Operations . The Santa Monica Rent Control Law was adopted by the voters on April 10, 1979. On October 5, 1987, the City
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filed a lawsuit against Jett Mora, who then owned the property. The City’s complaint alleged that Mora was operating the Sovereign as a hotel in violation of the Rent Control Law.
The following year, Mora filed a lawsuit against the City and the Rent Control Board, seeking declaratory relief to operate the property as a hotel.
On July 6, 1992, Mora, the City and the Rent Control Board entered into the Settlement Agreement and Release, providing, inter alia, that 52 units are uncontrolled units and can be operated interchangeably as hotel units, short term rentals or longterm apartments. The remaining 34 units must be operated as rent controlled apartments. The parties also recorded a corresponding deed restriction. The existing tenants were allowed to continue residents in their units, whether they were Hotel Units or Apartment Units, with protection against evictions except for good cause.
Furthermore, upon vacancies, 17 of the 34 apartment units were deed restricted to low income (60% of median income) and the other 17 were deed restricted to moderate income (100% of median income).
Entry of Judgment. On July 16, 1992, pursuant to the written stipulation of Mr. Mora, the City and the Rent Control Board, the Honorable Joel Rudof, Judge of the Los Angeles County Superior Court, entered Judgment in the case of Mora v. City of Santa Monica (LASC Case No. WEC 128286). A copy of that Judgment is enclosed.
Paragraph 3 of the Superior Court Judgment provides as follows:
Hotel Units. All units in the main building at the Subject Property, except for the basement units and those specific Apartment Units identified on the second and third floors of the main building, shall be deemed permanently exempt
from the RCCA irrespective of future use or occupancy and Mora shall specifically be permitted to operate these units are hotel rooms for occupancy by transient guests or for use by long-term tenants. These units are identified as Unit Nos. 102-106, 109-111, 111A, 112, 114, 204-210, 301, 302, 306- 311, 401-412, 414, 501-512, and 514 (“Hotel Units”). There are a total of fifty-two (52) Hotel Units at the Subject Property.
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Packet Pg. 322 Attachment: Letter 2024.07.12 (6572 : Sovereign Hotel CS) Susan Cola
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Paragraph 6 of the Superior Court Judgment provides as follows:
Hotel Usage.
a. Except for the occupancy rights of any Existing Tenants currently occupying a Hotel Unit as set forth in Section 4 herein, Mora is legally authorized to operate such Hotel Unit as a hotel room for daily, weekly and monthly
occupancy by transient guests, and such use shall be
deemed lawful without requiring any additional land use, zoning or other permits or approvals from the City. Mora shall comply with all City rules and regulations applicable to similarly situated hotels, except as otherwise provided herein. These units shall be permanently exempt from
the RCCA regardless of their future use and that use of the Hotel Units as hotel rooms for daily, weekly and
monthly occupancy by transient guests shall be deemed
to be in compliance with the RCCA, the City’s General
Plan, the Zoning Ordinance, and all other City laws and ordinances.
b. Based upon the special circumstances of this matter, and in consideration for deed restricting the Apartment Units, use of the Hotel Units for daily, weekly and monthly
occupancy by transient guests shall be legally permitted to continue permanently as a legal non-conforming use
regardless of the present or future zoning of the Subject Property.
c. Nothing herein shall be construed to prohibit or otherwise limit use of the Hotel Units for short or long term
residential purposes, and such residential use of the
Hotel Units by tenants will not affect the status of the Hotel Units as permanently exempt from the RCCA as
set forth herein.
d. There shall be no limit on the sums Mora can charge for occupancy of the Hotel Units, whether such occupancy is by short-term or long-term occupants, whether guests or tenants . . . .
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Paragraph 2 of the Stipulation provided as follows:
The purpose of this Stipulation is to avoid further litigation in this matter between Mora, the City and the Board. The
parties agree that the amicable resolution of this matter, under the terms and conditions set out in this Stipulation, is to the respective legal and economic interests of the parties involved herein.
Paragraph 27 of the Stipulation provided as follows:
Each and every party waives any right of appeal, whether directly, indirectly, or by collateral attack, which, may arise from the entry of Judgment . . . including, but not limited to, the right to appeal said Judgment.
Northridge Earthquake. On January 17, 1994, Los Angeles County was struck by the Northridge Earthquake, causing massive damage throughout the County.
The Sovereign was one of the buildings that was severely damaged. It was determined to be uninhabitable, and the tenants were required to vacate.
Thereafter, Mora defaulted on a promissory note secured by a deed of trust recorded against the property. The lender instituted foreclosure proceedings.
On December 16, 1994, SRP purchased the property through foreclosure by the lender.
On January 8, 1996, the Landmarks Commission designated the building as a City Landmark and the property as a Landmark Parcel. (LC-04-052.) On April 10, 1996, SRP, the City and the Rent Control Board entered into the 1996 Amendment to Settlement Agreement and Release, reiterating that 52 units are uncontrolled units and can be operated interchangeably as hotel units, short-term rentals or long-term apartments; however, all tenants displaced by the earthquake were given the right to return and reoccupy their units with the protection of the Rent Control Law following repairs. The remaining 34 units are rent controlled apartment units.
Furthermore, for 30 years 22 of the 34 units are deed restricted to low income units (60% of median income) and 12 units are deed restricted to moderate income (100% of median income). Certain of the unit numbers of the deed restricted units changed at this time. An amended deed restriction was recorded on April 16, 1996, as Instrument No. 96-597966 of Official Records of the Los Angeles County Recorder’s Office.
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On April 16, 1996, the City loaned SRP the sum of $3,275,000 for a period of 10 years pursuant to the City’s Multifamily Earthquake Repair Loan (“MERL”) Program.
The loan was used to refinance the property and partially fund some of the soft costs associated with rehabilitating the property.
SRP started to repair and rehabilitate the vacant building in mid-1995.
The repairs were completed in late September 1996, and tenants began to move back in October. At present, two of the pre-Northridge Earthquake tenants continue to occupy their units.
The rehabilitated Sovereign was listed on the National Register of Historic Places in 1997. This is an image of the property today:
The MERL loan was repaid in full on October 2, 2006. It is our understanding that the repaid sums were accumulated in the City’s Housing Trust Fund.
The deed restriction (Instrument No. 96-597966 of Official Records of the Los Angeles County Recorder’s Office) requiring 22 units of low income housing and 12 units of moderate income housing will expire on April 16, 2026.
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COVID Pandemic. In early 2020 the COVID-19 pandemic commenced. During the COVID pandemic Santa Monica imposed a moratorium for evictions for nonpayment of rent. https://www.santamonica.gov/coronavirus-evictionmoratorium#:~:text=Limited%20Santa%20Monica%20Moratorium%20for,2023%20to% 20repay%20covered%20rent.
Current Hotel Usage. Following full repayment in October 2006 of the MERL loan and after faithfully honoring the ten-year no-hotel-use loan commitment, the owner began converting units eligible for “hotel use” to short-term stays as and when the units became available--consistent with the Judgment and the agreements with the City and Rent Control Board. As the owner was preparing next to resume less than 30-day rentals, a confluence of unforeseen events--the onset of COVID-19, the need to care for aged parents with dementia, and the owner’s own serious health issues—delayed the ultimate conversion of the units to less than 30-day rentals. The confluence of these events made it impractical to reprogram and reinstitute less than 30-day stays use at the property despite the ongoing intention to do so. In 2023, the Sovereign commenced offering various eligible Hotel Units for less than 30-day stays.
In September 2023, SRP applied to the City of Santa Monica for a hotel business license. That application was routed to City Planning. On October 2, 2023, the Santa Monica Planning Division (wrongly) informed SRP that the Sovereign was not allowed to operate hotel rooms. On October 31, 2023, the City Attorney’s Office declined to discuss this matter directly with the principal for SRP.
On February 21, 2024, Airbnb informed SRP that the listings for hotel rooms were being blocked due to receipt of a (false) Santa Monica Code Enforcement report that the listings were unlawful. At that time, nine units offered for less than 30-day stays were starting to generate close to $47,000 per month in gross revenue. Another two premium units were expected to be available for hotel use very soon. Currently, sixteen units are not occupied by long-term tenants and are available for hotel usage. The potential revenue that could be generated by renting those sixteen hotel rooms for less than 30-day stays is estimated to be approximately $180,500/month.
Bed Tax Revenue. Whenever any of the 52 units are operated as hotel rooms, the property owner has collected and paid to the City its transient occupancy tax, through Airbnb. SRP estimates that when all 52 units are operated as hotel rooms, over the course of a year, the transient occupancy tax revenue to the City would be approximately $1,162,755 in current dollars (assuming a 10% vacancy rate).
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Packet Pg. 326 Attachment: Letter 2024.07.12 (6572 : Sovereign Hotel CS) Susan Cola
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ANALYSIS
We strenuously dispute that there is any lawful basis for the City to renege on its obligations as to SRP’s right and ability to operate the 52 rooms from time to time as either hotel, short-term rentals or long-term rentals consistent with the longstanding agreement of the parties. Any such reversal by the City is in direct contravention of the final Judgment entered on July 16, 1992, by Los Angeles County Superior Court Judge Joel Rudof in Mora v. City of Santa Monica (LASC Case No. WEC 128286).
Issue Preclusion. Code of Civil Procedure Section 1908(a)(2) provides as follows:
The effect of a judgment or final order in an action or special proceeding before a court or judge of this state, or of the United States, having jurisdiction to pronounce the judgment or order, is as follows:
* * *
. . . the judgment or order is, in respect to the matter directly adjudged, conclusive between the parties and their
successors in interest by title subsequent to the
commencement of the action or special proceeding, litigating for the same thing under the same title and in the same capacity, provided they have notice, actual or constructive, of the pendency of the action or proceeding.
See also Montana v. United States, 440 U.S. 147, 153-54 (1979):
A fundamental precept of common-law adjudication,
embodied in the related doctrines of collateral estoppel and res judicata, is that a “right, question or fact distinctly put in issue and directly determined by a court of competent
jurisdiction . . . cannot be disputed in a subsequent suit between the same parties or their privies . . . .” Under res judicata, a final judgment on the merits bars further claims by parties or their privies based on the same cause of action.
Under collateral estoppel, once an issue is actually and necessarily determined by a court of competent jurisdiction, that determination is conclusive in subsequent suits based on a different cause of action involving a party to the prior
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litigation. Application of both doctrines is central to the purpose for which civil courts have been established, the conclusive resolution of disputes within their jurisdictions.
To preclude parties from contesting matters that they have had a full and fair opportunity to litigate protects their adversaries from the expense and vexation attending
multiple lawsuits, conserves judicial resources, and fosters reliance on judicial action by minimizing the possibility of inconsistent decisions. [Citations omitted; footnote omitted.] The City is legally precluded from second guessing the aforementioned Judgment. The Entry of Judgment to which the City stipulated is a full and final decision that cannot now be collaterally attacked by the City thirty years later. Indeed, the Superior Court expressly reserved jurisdiction to enforce the terms of its Judgment:
In the event any party is found to have failed to comply with any term or provision of this Judgment, the Court shall make any and all orders necessary to assure the term or provision that has not been complied with by such party will in fact be implemented. (¶18 of Judgment.)
Detrimental Reliance. Per the 1996 Amendment, for the past 27 years, SRP has rented the remaining 34 of the 86 units on the property as deed-restricted housing, thereby foregoing an estimated $9,409,214 in additional rent revenue thus far that would have been recovered through implementation of the rights to implement rent increases upon voluntary vacancies under the Costa-Hawkins Rental Housing Act (Civ. Code §§ 1954.50, et seq.). Twenty-two of those 34 units are restricted to low income rents (i.e., 60% of County median income). The other twelve units are restricted to moderate income rents (i.e., 100% of County median income). This rent forbearance has been honored by SRP in reliance on the respective obligations of the parties under the 1992 Agreement, as amended.
In addition, SRP spent $5,124,157 and 21 months repairing the historic building that had been rendered inhabitable by the Northridge Earthquake. SRP also repaid a $3,275,000 earthquake recovery loan to the City. (Copy of Promissory Note enclosed.) Furthermore, demolition of the Landmark Sovereign building could have been pursued based on the damage it suffered during the Northridge Earthquake, rendering the building uninhabitable. (See Recital D of the 1996 Amendment (“On January 17, 1994, as a result of the ‘Northridge’ earthquake, the subject property suffered
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substantial damage and was deemed uninhabitable. The subject property remains uninhabitable as of the date of this Amended Agreement.”).) Instead, SRP agreed to repair and reopen the building in reliance on the 1996 Amendment.
By returning all 86 units to long-term rental housing for not less than the 10-year duration of the earthquake recovery loan, by foregoing market-rate rents on 34 units, and by proceeding to repair and restore the historic building after it was damaged and rendered uninhabitable by the earthquake, SRP has detrimentally relied on the rights conferred by the 1992 Agreement and 1996 Amendment--most specifically, the right to operate 52 units as hotel rooms in SRP’s sole and absolute discretion without triggering the need for any “land use, zoning or other permits or approvals from the City.” (¶5(a) of the 1992 Agreement.)3
Continuous Operation. SRP’s rights under the agreements with the City and the Rent Control Board have never been abandoned. Except only for the duration of time when the property was rendered uninhabitable by damage from the 1994 Northridge Earthquake and the ensuing repairs, the property has at all times been continuously operated and generally fully occupied by either transient guests, short-term rentals or long-term tenants. With the exception of the period following the Northridge Earthquake, the Sovereign has never been “shutdown” and the 86 units left vacant for any extended period of time. This is no different than was the case in Hansen Bros. (discussed further below) where the California Supreme Court held that the ongoing operation of mining, production and sales of sand, gravel and rocks from a riverbed was sufficient to allow the owner and operator to also resume quarrying rock from the property owner’s hillside.
As to the Sovereign, except when ordered to be vacated for repairs following the earthquake damage, the property’s use has never been abandoned. (See SMMC § 9.27.050(B).) (See also ¶5(b) of the 1992 Agreement (“the City hereby stipulates and agrees that use of the Hotel Units for daily, weekly and monthly occupancy by transient guests shall be legally permitted to continue permanently as a legal non-conforming use regardless of the present or future zoning of the Subject Property”).) Furthermore, the California Supreme Court has held: “Cessation of use alone does not constitute abandonment.” Hansen Bros. Enters. v. Board of Supervisors, 12 Cal. 4th 533, 569 (1996). As explained by the California Supreme Court:
3 Indeed, arguably, not even a business license is required.
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Abandonment of a nonconforming use ordinarily depends
upon a concurrence of two factors: (1) An intention to
abandon; and (2) an overt act, or failure to act, which carries the implication the owner does not claim or retain any
interest in the right to the nonconforming use [citation omitted]. (Id.)
As the Supreme Court explained in Hansen Bros., where the operation of a commercial or industrial facility discontinues “during a business slowdown,” that alone does not constitute a “cessation of operation.” (Id.) Particularly where “the plant, equipment, inventory, and utilities were maintained throughout the period and the plant could be made operational within two hours.” (Id.) Here, the Sovereign and its rooms were at all times ready to be returned to hotel use.
More importantly, SRP never had any intention of abandoning the right to operate the 52 rooms for hotel usage. Once the MERL loan was paid off, SRP began by offering short-term rentals for minimum 30 day stays. Until recently, the principal of SRP had personal health issues, plus the challenges inherent with the COVID-19 pandemic, and these were some of the factors that contributed to using the unregulated Hotel Units for other purposes permitted under the agreements (i.e., long-term rentals and shortterm tenancies), but not at the cost of giving up the right to operate the units as hotel rooms. Similarly, in Hansen Bros., the Supreme Court held:
Since we have concluded that the aggregate mining,
production, and sales business was the land use for which Hansen Brothers had a vested right in 1954, the fact that rock quarrying may have been discontinued for 180 days or more is irrelevant. Hansen Brothers has a vested right to continue all aspects of its aggregate business at the Bear's Elbow Mine. (12 Cal. 4th at 571.)
Lack of Notice. Now, without any advance warning, the City is wrongfully refusing to issue a business license to SRP for any hotel operation of the property.
This constitutes a clear breach of the agreements between the parties. At no time has the City asked SRP whether it intended to relinquish its right to operate the 52 units as hotel rooms. If it had asked that question, SRP would have emphatically repudiated any such intention.
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No Waiver. Paragraph 21 of the 1992 Agreement expressly provides as follows:
Any waiver of this Agreement must be in writing and signed by an authorized representative of the waiving party. Failure by any party to enforce its rights under this Agreement shall not be deemed to be a waiver of its rights to enforce the same or any other term, condition or covenant. (Emphasis added.)
At no time has SRP expressly waived its rights to operate the 52 hotel rooms, nor has SRP expressed any intention of waiving those rights.
Breach of Contract. By virtue of the City’s failure to issue a business license for hotel use on the property and by City Code Enforcement’s notification to Airbnb that listings for the property are unlawful, SRP is being denied the benefit of the bargain. (See ¶5(b) of the Amendment (“Based upon the special circumstances of this matter, and in consideration for deed restricting the Apartment Units, the City hereby stipulates and agrees that use of the Hotel Units for daily, weekly and monthly occupancy by transient guests shall be legally permitted to continue permanently as a legal nonconforming use regardless of the present or future zoning of the Subject Property.”).) The City (and the residential tenants of the 34 deed-restricted units) have benefited under the 1996 Amendment.4 The City’s current refusal to issue a business license for hotel usage on this property, and the Code Enforcement directive to Airbnb that listings for this property are unlawful, each constitutes a clear breach of contract.
Breach of Covenant of Implied Covenant of Good Faith and Fair Dealing.
The law implies in every contract a covenant of good faith and fair dealing, “meaning that neither party will do anything which will injure the right of the other to receive the contract’s benefits.” Bushell v. JPMorgan Chase Bank, 220 Cal. App. 4th 915, 928-29 (2013). Actions by the City to bar the use of the 52 identified units for hotel use despite the clear intent of the 1992 Agreement and 1996 Amendment would violate the implied covenant of good faith and fair dealing. (See Badie v. Bank of America, 67 Cal. App. 4th 779,796 (1998) (“good faith performance of the discretionary power to affect the other party's rights requires the party holding such power to exercise it ’for any purpose within the reasonable contemplation of the parties at the time of [contract] formation—to 4 Recital D of the MERL Regulatory Agreement provides in pertinent part: “the City acknowledges that it has received a direct benefit by Borrow’s agreement to restrict twenty-two (22) of the eighty-six (86) Project units for use by families whose household incomes are at or below 60% of Los Angeles County Median Income.”
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capture opportunities that were preserved upon entering the contract, interpreted objectively,’ and that, conversely, breach of the covenant occurs when the discretionary power is used to ’recapture opportunities foregone’ when the contract was entered into.
Where, as in this case, a party has the unilateral right to change the terms of a contract, it does not act in an ‘objectively reasonable’ manner when it attempts to ’recapture’ a forgone opportunity by adding an entirely new term which . . . was not within the reasonable contemplation of the parties when the contract was entered into.” [Citations omitted.]).)
Unconstitutional Taking of Property Right Without Just Compensation. The City’s failure to honor SRP’s right to operate 52 units as hotel rooms constitutes an unlawful taking of a property right without just compensation. The California Supreme Court has held that when a city initiates “an unreasonable, oppressive, or unwarranted interference with an existing use, or a planned use for which a substantial investment in development costs has been made, the ordinance may be invalid as applied to that property unless compensation is paid.” Hansen Bros. Enters. v. Board of Supervisors, supra, 12 Cal. 4th at 551-52. See also Ali v. City of Los Angeles, 77 Cal. App. 4th 246 (1999) (affirming damage award to property owner against city for temporary taking “where the position by the City was ‘so unreasonable from a legal standpoint’ as to be arbitrary, not in furtherance of any legitimate governmental objecting, and for no other purpose than to delay”).
Compensatory Damages. Currently, sixteen (16) units are not occupied by long-term tenants and are available for hotel usage. The potential revenue that could be generated by renting those sixteen hotel rooms is estimated to be approximately $180,500/mo.). As more vacancies arise in the 52 units, additional hotel revenue will be at risk.
Attorneys’ Fees. Attorneys’ fees are recoverable in the event of any action to enforce the Sovereign Agreements with the City. (See ¶14 of 1992 Agreement.) Furthermore, attorneys’ fees are recoverable for temporary or permanent takings under 42 U.S.C. § 1988 and Code of Civil Procedure Section 1036. See also Hensler v. City of Glendale, 8 Cal. 4th 1, 15 (1994) (“Moreover, the expense of a meritorious taking claim will not be borne by the owner. Not only are damages for a temporary taking available, but the owner's reasonable costs and attorney fees must be reimbursed by the local entity if the owner establishes that the restriction on land use is a compensable taking.”).
Punitive Damages. Furthermore, to the extent that the City is interfering with SRP’s Airbnb listings, that Code Enforcement intervention arguably constitutes tortious
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interference with business relations and triggers risk of punitive (as well as compensatory) damages. See Ramona Manor Convalescent Hosp. v. Care Enters., 177 Cal. App. 3d 1120, 1142 (1986) (“the retrial on the issue of damages need not examine the malice issue, except to the extent necessary to determine the amount of punitive damages necessary to effectively punish and deter [defendant] and others from engaging in such tortious activity.”).)
CONCLUSION
For the reasons described above, we assert that the City’s withholding of the Sovereign’s hotel business license for this property and the City’s interference with the Sovereign’s Airbnb listings are being done in bad faith, given entry of Judgment, and the 1992 Agreement and 1996 Amendment, and the good faith detrimental reliance shouldered by my client throughout. The City’s actions are not only impacting SRP’s revenue, but will also have a major impact on the long-term value of the Sovereign property.
Accordingly, we request that the City Attorney’s Office take up this matter in closed session with the City Council on July 23 for a speedy and prompt resolution before litigation commences.
If this matter is not resolved short of litigation, we anticipate a judicial ruling in favor of SRP, including a very substantial compensatory damage award as well as attorneys’ fees and court costs. Under the circumstances, the City is also at risk of an award for punitive damages and/or sanctions.
Very truly yours,
Kenneth L. Kutcher
KLK:sna
Enclosures
cc: Douglas Sloan (w/ Judgment encl.)
Susan Connally (w/o encl.)
Beverly Moore (w/o encl.)
F:\WPDATA\22785\001 (205 Washington)\Cor\Cola, von Tongeln 2024.07.12.docx
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Packet Pg. 333 Attachment: Letter 2024.07.12 (6572 : Sovereign Hotel CS) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 4.D
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office Subject: Conference with legal counsel - consider sending amicus letter - Gov. Code § 54956.9(d)(4): Apartment Association of Los Angeles County, Inc., v. City of Los Angeles, et al.; LASC Case No. B336071
Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:
A. Written Comments
4.D
Packet Pg. 334
1 David Yakobson
From: Mathew Millen <[email protected]>
Sent: Monday, August 26, 2024 3:28 PM
To: councilmtgitems
Subject: 8/27 Item 4 D
Attachments: B336071.pdf
EXTERNAL
I did a search of Los Angeles Superior Court records and the result came back no case number B336071.
Attached is the print out from the Los Angeles Sup Ct.
This matter should be continued until the correct case number is provided to the public.
In addition due to the severe City Budget problems it is a waste of time and city resources to file an Amicus brief
respectfully submitted,
Mathew Millen
Item 4-D
August 27, 2024
Item 4-D
August 27, 2024
4.D.a
Packet Pg. 335 Attachment: Written Comments (6588 : 4.D. Closed Session Amicus Letter) Item 4-D
August 27, 2024
Item 4-D
August 27, 2024
4.D.a
Packet Pg. 336 Attachment: Written Comments (6588 : 4.D. Closed Session Amicus Letter) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 4.F
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office Subject: Conference with real estate negotiator - Gov. Code § 54956.8: properties:
1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street; owner of record/lessor: City of Santa Monica; developer/lessee: Hollywood Community Housing Corporation (HCHC); City negotiators: Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; developer negotiators: Sarah Letts, Executive Director; under negotiation: price and terms of payment for ground lease Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:
A. Written Comments
4.F
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1 David Yakobson
From: Cynthia Rose <[email protected]>
Sent: Tuesday, August 27, 2024 1:06 PM
To: councilmtgitems; Council Mailbox; Gleam Davis; Jesse Zwick; Caroline Torosis; Lana Negrete; Oscar de la Torre; Phil Brock; Christine Parra; David White Cc: [email protected]; [email protected] Subject: Agenda Item 4F - Opposed
Attachments: 2024-08 CC Agenda item 4F - OPPOSED.pdf
EXTERNAL
Please find attached our letter in opposition to agenda item 4F Cynthia Rose, Cris Gutierrez and Anya Baroff
--
Cynthia Rose
Co-Chair
Santa Monica Safe Streets Alliance
SaMoSafeStreets.org
I acknowledge with respect and gratitude the Tongva, Kizh, and Chumash Peoples on whose traditional territory I live and work.
Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
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Packet Pg. 338 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th))
August 27, 2024
RE: Agenda Item 4F - Opposed
Dear Mayor and City Council Members:
Santa Monica Safe Streets Alliance joins human rights and housing advocates in supporting the negotiations and the continuation of the project with the Hollywood Community Housing Corporation. This project is part of the critical efforts required to support some of our most vulnerable community neighbors, who need services and housing.
Our Santa Monica values and priorities for a safe and clean community and robust economic recovery cannot be realized without a humane approach to provide homes for unhoused individuals (who actually are already our “neighbors”). How else could anyone really expect to help solve the unhoused problem?
We ask that you stay the course and continue to move this project forward as quickly as possible and not allow the project to be undermined by potentially sincere but unfounded fears. Santa Monica needs your thoughtful and humane leadership.
Sincerely,
Cynthia Rose Cris Gutierrez
Co-Chair, Santa Monica Safe Street Alliance Co-Chair, Santa Monica Safe Streets Alliance SaMoSafeStreets.org
Community Human Rights Advocate
The city has requested $515,000 from the Department of Justice to fund the STEP program, which is designed to support supportive housing through STEP court. However, this request is concerning as it coincides with efforts to criminalize homelessness and reduce the supportive housing options it promises in the DOJ proposal. There has been no indication on what supportive housing is offered through this program, how police responses will decrease, or what increases to legal -aid services will be provided to defend those without housing.
This paradoxical approach undermines the intent of the STEP program by potentially exacerbating the very issues it aims to address, creating a situation where the city seeks federal funds for supportive measures while simultaneously enacting local policies that diminish the availability of support for the unhoused population. If not addressed properly the city risks violating the Federal False Claims Act 31 (U.S.C. §§ tel:3729-3733)
STEP Court -- Shelter, Treatment, and Empowerment Program Court; connecting low-level offenders with necessary services to obtain mental health treatment, addiction treatment, and empowerment program. | Bureau of Justice Assistance https://mayor.lacity.gov/sites/g/files/wph2066/files/2024-01/CIRCLE_FAQ_English_Spanish_Jan%202024.pdf\ Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
4.F.a
Packet Pg. 339 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) 1 David Yakobson
From: Mathew Millen <[email protected]>
Sent: Monday, August 26, 2024 3:56 PM
To: councilmtgitems
Subject: 8/27/item 4F
Attachments: oversize.pdf; 20thHomeless.pdf; GSH.pdf
EXTERNAL
After The Laurel opened at 1413 Michigan Ave there has been an increase in crime in the neighborhood and numerous Calls for Service at this address. It also appears the tenants are illegally parking oversized vehicles in the neighborhood(see attached photo). And the tenants are apparently not rent burdened Santa Monica tenants but they were homeless from all over Los Angeles County. The 20th St. project intends to bring in homeless from all over Los Angeles County. See attached Permanent Supportive Units are filled with people" from the County Coordinated Entry System". It appears the Marin County developer of this project did the same as CCSM intends to do on 20th St.
THE PROJECTS proposed on the City owned parking lots SHOULD BE REJECTED.....SEND OUT A NEW REQUEST FOR PROPOSALS FOR A 100% SENIOR Citizen project. That is what Measure GSH promised, see attached Respectfully submitted
Mathew Millen
Pico Neighborhood Resident
Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
4.F.a
Packet Pg. 340 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
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Packet Pg. 341 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
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Packet Pg. 342 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
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Packet Pg. 343 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
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Packet Pg. 344 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) Item 4-F
August 27, 2024
Item 4-F
August 27, 2024
4.F.a
Packet Pg. 345 Attachment: Written Comments [Revision 1] (6589 : 4.F. Closed Session RE Negotiator (Euclid, 14th, 16th)) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.A
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Construction Contract for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemptions pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement/Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #SP2644 to SMA Builders, Inc. for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project for the Public Works Department;
3. Authorize the City Manager to negotiate and execute a contract with SMA Builders Inc. in an amount not to exceed $1,534,500 (including a 10% contingency); and
4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Summary
Virginia Avenue Park, located at 2200 Virginia Avenue, is recognized as a community hub that empowers families, shapes programming, celebrates culture and tradition, and maintains the vibrant spirit of the Pico Neighborhood. The Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project (Project) would be implemented at the Thelma Terry building, in the heart of Virginia Avenue Park. The Thelma Terry building is used primarily for community gathering activities, community service, and programs for school-aged children. The Project would replace the building’s underutilized prep kitchen. The renovation of the existing prep kitchen, office, and storage space would accommodate an all-electric, shared kitchen and food storage
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area that would cultivate the Pico Neighborhood and surrounding community food entrepreneurs and support ongoing programming by providing affordable shared commercial kitchen space, mentorship, and market opportunities. The Project would also renew community spaces with refreshed wall and floor finishes, new media equipment, new energy-efficient lighting, a new roof, access control, and a security system in the one-story Thelma Terry Center building. Staff recommends awarding the contract to SMA Builders Inc. for the construction of the Project in an amount not to exceed $1,534,500 (including a 10% contingency).
The Project is funded with a combination of Community Development Block Grant (CDBG) Funds and General Funds. Construction would begin fall 2024 and be completed within six months.
Discussion
Virginia Avenue Park serves as a community hub to empower families, shape programming, celebrate culture and tradition, and maintain the vibrant spirit of the Pico Neighborhood, which is one of strength, resiliency, and social justice. The Project would convert an existing City-owned facility into a fully licensed commercial kitchen that would offer kitchen rentals for local food businesses and small business incubator services to provide entrepreneurship education for its local members.
Converting the Virginia Avenue Park kitchen into a shared kitchen has been one of the key suggestions brought to light by Virginia Avenue Park parent groups and other residents for several years. In 2019, Council directed staff to identify ways to streamline and accelerate community economic development following Councilmembers’ requests to develop a comprehensive economic opportunity and community development policy that would include incubating, educating, and promoting local small businesses and entrepreneurs as one of its priorities while the Pico Wellbeing Project identified the kitchen as a top priority to create pathways for residents of the Pico Neighborhood into entrepreneurship.
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For over a year, the Community and Economic Development working group (a subcommittee of the Santa Monica Economic Recovery Task Force) met with leaders in the fields of incubator kitchens and entrepreneurship programs, and vetted ideas with local chefs and business owners, to develop the mission and goals for the kitchen. The Santa Monica Economic Recovery Task Force was created in April 2020 to, among other things, promote Community and Economic Development.
Project Mission
The Virginia Avenue Park Kitchen cultivates Pico Neighborhood and surrounding community food entrepreneurs by providing affordable commercial kitchen space; providing mentorship; providing access to market opportunities; and amplifying traditionally unheard voices.
Project Goals
• Increase availability of culturally diverse, local, healthy and affordable food products
• Build economic independence for local residents through increased income and new jobs for community members
• Provide business development training through partnership with an incubator agency that will provide business training for start-ups that will culminate with a business plan and product refinement
This project has emerged because of the dedication of the Community and Economic Development working group and the Mission and Goals they set forth have been the framework from which this project and community kitchen program have been developed. The all-electric kitchen would enhance resources, prevent harm to the natural environment and human health, and benefit the social and economic wellbeing of the community through access to the latest energy-efficient commercial food service equipment and technologies.
Engagement
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On May 6, 2021, the City issued an informal Request for Proposals (RFP) to obtain professional design services for the Project; three proposals were received and Koning Eizenberg Architecture was awarded a professional services agreement in an amount not to exceed $93,280 (including a 10% contingency). On April 18, 2022, staff and the consultant team hosted a virtual public workshop and invited the community and stakeholders to provide input on the proposed concept design and kitchen operational program. The design work incorporating community and stakeholder input is complete.
Vendor Selection
On February 29, 2024, the City issued a formal Request for Bids (RFB) to obtain construction services for the Project. The City received a total of three construction bids; however, Olympos Construction, Inc.’s bid did not meet the basic requirements of the RFB and was considered nonresponsive, and rejected without evaluation. An evaluation panel composed of Architecture Services and Housing and Human Services staff evaluated the remaining two bids and recommend SMA Builders Inc. as the best and lowest bidder.
Bidder Recommendation
Best Bidder SMA Builders Inc.
Evaluation
Criteria
Price, Experience
Municipal Code SMMC 2.24.180
Submittals Received
Vendor Total
(base bid and alternate bids)
SMA Builders Inc. $1,395,000
MZN Construction, Inc. $2,659,966
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date
Publicly
Opened
2/29/2024 City's Online
Bidding Site
Santa Monica Daily Press 94 4/24/2024
Best Bidder Justification
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Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 and Section 15302 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located in the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The project would renovate the existing city facility at 2200 Virginia Avenue, and therefore, it has been determined that the project would fall within the Class 1 and Class 2 categorical exemptions. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
Past Council Actions
Meeting Date Description
12/10/19 (Attachment A) Request of Councilmembers Jara, Morena, and O’Day to identify ways to streamline and accelerate community economic development – Item 13.D
06/22/21 (Attachment B) FY 21-23 Biennial Capital Improvement Program Budget – Addendum to FY 20-22 CIP Budget – Virginia
Avenue Park Commercial Kitchen
06/28/22 (Attachment C) FY 22-24 Biennial Capital Improvement Program Budget – Thelma Terry Center Improvements
06/27/23 (Attachment D) FY 23-25 Biennial Capital Improvement Program Budget – Addendum to FY 22-24 CIP Budget – Virginia
Avenue Park Commercial Kitchen
Financial Impacts and Budget Actions
Staff recommends SMA Builders Inc. as the best bidder based on bid price and experience. The recommended bidder has demonstrated the ability to perform and complete quality work on past projects in Los Angeles.
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Staff seeks authority to approve available funding from the CDBG Fund and General Fund to award a contract to SMA Builders Inc. for the construction services for the Project.
Contract Request
Funding
Source
FY 2024-25
Request
Amount
Department/CIP Account
#
Total Contract
Amount
CDBG Fund $650,000 C1908130.689000
VAP Commercial Kitchen $650,000
CDBG Fund $565,000
C1908490.689000
Thelma Terry Center
Improvements
$565,000
General Fund $174,500
C0104580.689000
Citywide Facilities Renewal
Program
$174,500
General Fund $145,000 01500003.552010
Professional Services $145,000
Total $1,534,500
Prepared By: Amelia Feichtner, Capital Program Manager
Approved Forwarded to Council
Attachments:
A. December 10, 2019 Staff Report (Web Link)
B. June 22, 2021 Staff Report (Web Link)
C. June 28, 2022 Staff Report (Web Link)
D. June 27, 2023 Staff Report (Web Link)
E. Oaks Initiative Form - SMA Builders Inc.
F. Levine Act Disclosure Form - SMA Builders Inc.
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CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
FOR CITY USE ONLY:
Bid/PO/Contract # Permit #
Shawn Antin Chief Executive Officer
4/24/2024
818-994-8306 [email protected]
NA
NA
NA
5.A.e
Packet Pg. 352 Attachment: Oaks Initiative Form - SMA Builders Inc. (6381 : Award Contract for VAP Commercial Kitchen and Thelma Terry Center) City of Santa Monica Levine Act Disclosure Form
CITY OF SANTA MONICA
CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________ X
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Packet Pg. 353 Attachment: Levine Act Disclosure Form - SMA Builders Inc. (6381 : Award Contract for VAP Commercial Kitchen and Thelma Terry Center) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.
Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.
By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.
I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:
Please note this form is a public record and subject to a California Public Records Act request.
5.A.f
Packet Pg. 354 Attachment: Levine Act Disclosure Form - SMA Builders Inc. (6381 : Award Contract for VAP Commercial Kitchen and Thelma Terry Center) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.B
1 of 14
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Request for Proposal and enter into Agreement with SWA Group for Design Services for the Memorial Park Redevelopment and Expansion Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15262, Feasibility and Planning Studies, of the California Environmental Quality Act (CEQA) Guidelines;
2. Award RFP #SP2509 to SWA Group for professional design services for the Memorial Park Redevelopment and Expansion Project;
3. Authorize the City Manager to negotiate and execute a professional services agreement with SWA Group in an amount not to exceed $4,405,000 (including a 15% contingency) for two years with a one-year renewal option; and
4. Authorize budget amendment as outlined in the Financial Impacts and Budget Actions section of this report (requires 5 votes).
Summary
Established in the 1950s and geographically located in the center of Santa Monica, Memorial Park is important to the city’s overall parks and recreation system as it serves as the primary park for baseball and softball as well as being the home for the City’s only public gymnasium, skate park, and pickleball courts. The Memorial Park Redevelopment and Expansion Project (Project) would combine the 10.3-acre Memorial Park and the adjacent 2.9-acre City-owned former Fisher Lumber site into a 13.2-acre newly renovated and expanded community park to meet an increasing demand for recreational activities. The Project would also integrate components of the City’s Pedestrian Action Plan and Bicycle Action Plan. An extensive community outreach
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process guided the development of a master plan layout and park program for the future renovation and expansion of Memorial Park that would include additional diamond sports fields and other highly desired community amenities.
On August 22, 2023, Council directed staff to seek proposals for design (including preconstruction) services of phases 1 and 2 of the Project. In addition, with Council authorization from September 2022, staff reengaged Santa Monica College (SMC) and Santa Monica-Malibu Unified School District (SMMUSD) and is actively negotiating Fiscal and Use Agreements for capital improvement construction costs and their associated programmed joint uses for the implementation of phases 1 and 2. If successfully negotiated, the Fiscal and Use Agreements would fund the bulk of the construction costs of phases 1 and 2. The ability to proceed with construction is therefore contingent upon the City’s ability to reach final agreement(s) with SMC and/or SMMUSD. The Project also includes design of a regional stormwater improvement component under the proposed fields in Memorial Park (phase 0).
Staff recommends awarding a professional services agreement for design services of a potential phase 0 for an underground storm water storage capture and reuse and/or infiltration system and phases 1 and 2 for Memorial Park redevelopment and expansion as described herein to SWA Group in an amount not to exceed $4,405,000 (including a 15% contingency), broken down as follows:
• Phase 0 design (including pre-construction and construction administration) services are funded with Clean Beaches and Ocean Parcel Tax Funds in an amount not to exceed $2,492,000 (including a 15% contingency); • Phase 1 design (including pre-construction) services are funded through a payment agreement with SMC in an amount not to exceed $1,213,000 (including a 15% contingency); and
• Phase 2 design (including pre-construction) services are funded with a combination of Park and Recreation Impact Fee and Clean Beaches and Ocean Parcel Tax Funds in an amount not to exceed $700,000 (including a 15% contingency)
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Staff anticipates up to 18 months for the design phase beginning fall 2024 and returning to Council in spring 2026 with a recommendation to award a construction contract for the Project, upon which time staff would also seek approval to modify SWA Group’s agreement to include construction administration services for phase 1 only or phases 1 and 2.
Background
The need to expand and redefine the role of Memorial Park was established in Santa Monica’s 1997 Parks and Recreation Master Plan. The City purchased the Fisher Lumber site in 2004 with the intention of expanding Memorial Park. The City took occupancy of the site in 2005 and has since used the property to house the Public Landscape Division (PLD) staff, materials, and equipment.
Figure 1: Project Location
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In March 2016, Council adopted and formally selected the expansion of Memorial Park as one of the City’s highest priority park projects and incorporated it into the Los Angeles Countywide Parks Needs Assessment Report. After a competitive procurement process, Council awarded an agreement to AHBE Landscape Architects in January 2018 to provide professional design services for the development of a feasibility study and master plan layout for an expanded and redeveloped park that would meet the following objectives:
• Maximize opportunities for fields with a focus on diamond sports; • Consider community programs such as the gymnasium, Santa Monica Police Activities League (PAL), and fitness facilities;
• Integrate appropriate buffering along busy vehicular corridors; • Integrate the City’s Bicycle and Pedestrian Action Plans; and • Consider the park’s relationship to the surrounding neighborhood and City context.
On October 15, 2019, Council reviewed the Memorial Park Redevelopment and Expansion Master Plan that was the product of a community engagement process and directed staff to seek proposals for design (including pre-construction) services of phases 1 and 2 of the Project. Council also authorized staff to negotiate Fiscal and Use Agreements with SMC and SMMUSD.
On February 11, 2020, Council awarded a design-build agreement to W.E. O’Neil Corporation to begin design of the Project, but before the contract could be fully executed, the COVID-19 pandemic emerged, and the Project was suspended.
On September 27, 2022, staff returned to Council and presented a reduced scope of work for phase 1 in consideration of limited funding and increased construction costs. Of the previously identified $30 million, only the $20 million dedicated to park redevelopment from the SMC bond measure remained available. Council directed staff to proceed with the proposed revised scope and to return with next steps, to reengage SMC and SMMUSD in negotiations for potential fiscal and use agreements, and to
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present a recommended alternate site for the temporary relocation of the PLD operations yard.
On August 22, 2023, Council directed staff to seek proposals for design (including preconstruction) services of phases 1 and 2 of the Project. Council also authorized (1) the negotiation and execution of a payment agreement not to exceed $2,750,000 with SMC for preparation of the environmental impact analysis, geotechnical engineering, and design (including pre-construction) services of phase 1 only, and (2) the negotiation and execution of a reinstatement and fifth modification of agreement #9910 (CCS) with WSP (formerly Wood Environmental and Infrastructure Solutions Inc. and AMEC Environment & Infrastructure, Inc.) for environmental consulting services related to the Memorial Park Redevelopment and Expansion Project. This resulted in a 2-year extension with an 11- year amended agreement with a new total amount not to exceed $149,000 (including a 10% contingency), with future year funding contingent on Council budget approval.
Upon the reinstatement and execution of a fifth modification to agreement #9910 in April 2024, WSP began preparing the environmental impact analysis in compliance with CEQA.
Regional Stormwater Improvement Project Component
The stormwater project component was earmarked and identified within the approved Watershed Management Plan (WMP) for the Central Santa Monica Bay Jurisdictional Groups 2 & 3 (J2/J3) Watershed recently approved by the Regional Water Quality Control Board (RWQCB) in April 2023. The WMP is required as part of the Municipal Separate Storm Sewer System (MS4) National Pollutant Discharge Elimination System (NPDES) Permit thru Order No. R4-2021- 0105 (Permit) which was adopted by the RWQCB. The WMP identifies the Memorial Park Regional Project as a multiple benefit stormwater project consisting of multiple storm drain diversions from upstream drainage areas that would convey runoff to a proposed maximum 3 million gallon (3 MG) storage, reuse and/or infiltration tank under the proposed Memorial Park fields. Previous feasibility studies have identified and evaluated preliminary diversion strategies and analyzed site location and sizing for the underground tank at Memorial Park. The City’s efforts in stormwater and watershed management are centered around compliance with
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state and federal permits and mitigating contaminants entering the Santa Monica Bay.
This project represents a major step towards achieving that goal.
Discussion
The Memorial Park Redevelopment and Expansion Project would combine the 10.3- acre Memorial Park and the adjacent 2.9-acre City-owned former Fisher Lumber site into a 13.2-acre newly renovated and expanded community park to meet an increasing demand for recreational activities. The master plan envisions a phased approach that would be implemented over time as funding is available. The Project areas and major program elements to be designed as part of phases 1 and 2 of the Project are described below. With Council authorization from September 2022, staff reengaged Santa Monica College (SMC) and Santa Monica-Malibu Unified School District (SMMUSD) and is actively negotiating Fiscal and Use Agreements for capital improvement construction costs and their associated programmed joint uses for the implementation of phases 1 and 2. If successfully negotiated, the Fiscal and Use Agreements would fund the bulk of the construction costs of phases 1 and 2. The ability to proceed with construction is therefore contingent upon the City’s ability to reach final agreement(s) with SMC and/or SMMUSD.
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Figure 2: Existing Memorial Park and Approved Memorial Park Master Plan In addition, an underground storm water storage capture and reuse and/or infiltration system at Memorial Park is to be designed as a potential construction phase 0, also described below. Phases 0 and 1 would be constructed as one project only if grant awards and funding is available for phase 0. At the time of this report, phase 0 is not fully funded for construction and the City is seeking grant funding. Phase 1 has construction funding and would proceed with or without the construction of phase 0.
Potential Phase 0 – Stormwater Harvesting
The Memorial Park site is identified as a potential stormwater harvesting site in the Watershed Management Plan (WMP) for the Central Santa Monica Bay Jurisdictional Groups 2 & 3 Watershed.
Underground Stormwater Harvesting Tank (Phase 0)
An underground storm water capture and reuse and/or infiltration system, envisioned to have a maximum capacity of up to 3-million gallons (3 MG), with storm drain diversion
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structures and pumping systems. These features would harvest stormwater and urban runoff through the existing storm drainage system from approximately 135 acres of drainage area in the Pico-Kenter sub-watershed within the city limits.
Phases 1 and 2 – Approved Program Elements of the Master Plan The program elements listed may be subject to design alterations to accommodate the Additional Items for Design Consideration (Attachment A) and additional information gathered by the design team during Schematic Design.
Figure 3: Phase 1 (left) and Phase 2 (right) of the Project Combo Fields (Phases 1 and 2)
The masterplan establishes seven diamond sports fields at Memorial Park which will provide for an additional field from what exists today and will allow for greater flexibility, including the ability to play simultaneous games on Fields 1 - 4, something the existing fields cannot currently accommodate. Fields 1 - 4, referred to as the combination (or combo) fields, would utilize synthetic turf to create adaptable play space for baseball and softball groups of all ages. They are designed for flexibility; each combo field would be able to accommodate a single regulation high school baseball game, adult softball game, or collegiate softball game. Additionally, each combo field could be divided with temporary fencing to accommodate two youth baseball or two youth fast pitch softball games played simultaneously. Each field would feature covered dugouts, shaded
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spectator seating, and LED sports lighting. A batting cage for shared use sits adjacent to the combo fields. Amenities such as pitchers’ bullpens, additional batting cages, and electronic scoreboards shall be considered by the selected design team in the schematic design phase.
Mobility and Streetscape Improvements (Phases 1 and 2)
For those who prefer to walk or bike to Memorial Park, the master plan layout includes 4’-wide planted areas that would provide a buffer between generous 8’-wide perimeter sidewalks and field activity within the park. Street trees and parkway planters would create a sense of comfort for pedestrians walking along the street and a shared use bike path completely separated from the street along the Colorado Avenue park frontage (Class I bike path), would allow for future connections to the Exposition Corridor Bike Path.
Tennis/Pickleball Courts (Phase 1)
Four tennis courts striped for pickleball would be elevated over the new on-site surface parking lot and include stairs and an elevator. The courts would feature LED sports lighting, wide perimeter clearance spaces, and dedicated equipment storage immediately adjacent to the play area.
Parking (Phase 1)
The covered parking lot would increase parking inventory by 49 spaces for a total of 128 spaces to be used exclusively by park patrons and would include a safe and convenient passenger loading zone and turnaround area. The parking lot’s central location would make it easily accessible from all areas of the park. The footprint of Memorial Park would be expanded into portions of 16th Street and Colorado Avenue, resulting in a reduction of 37 metered street parking spaces adjacent to the park.
Community Hub (Phase 2)
The community hub would be centrally located within the park and include a children’s play area, restrooms, concessions, storage for field permit groups and park maintenance equipment, and a small office for field monitor staff. The playground would
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be universally accessible and feature ample integrated shade. The location of the community hub relative to the diamond sport fields, tennis/pickleball courts, The Cove skate park, and parking lot would make it the active center of the park.
PLD Relocation
The City’s Public Landscape Division (PLD) operations are currently headquartered at the former Fisher Lumber site adjacent to Memorial Park. Phase 1 of the Project would partially extend the park into the former Fisher Lumber site, requiring the temporary relocation of PLD operations until a permanent location is identified and becomes available. On September 27, 2022, Council directed staff to study possible temporary relocation sites for PLD operations. An Information Item dated August 2024 describes the evaluation of possible temporary relocation sites and scenarios, provides construction and lease cost estimates and schedules based on preliminary concepts, and ultimately identifies the City Yards as the only feasible relocation site.
In anticipation of phase 1 construction starting in Summer 2026, staff is proceeding with the City Yards as the final site selection so that efforts to meet scheduling requirements for design, permitting, and construction for the temporary relocation of PLD operations may begin. The estimated cost for relocating PLD to the City Yards is approximately $1M-$1.5M.
Staff continues to investigate all other steps necessary to ensure the timely relocation of PLD to the City Yards and will develop a comprehensive list and schedule of anticipated milestone dates as more information becomes available.
Engagement
On February 17, 2022, staff provided an update to the Recreation and Parks Commission (RPC) on the status of the Public Landscape Division Relocation Process.
Staff returned to RPC on April 24, 2024, to provide an update on the Memorial Park Redevelopment and Expansion Project, including PLD relocation.
Consultant Selection
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The City received a total of six proposals. From those six proposals, an evaluation panel composed of Architecture Services and Civil Engineering staff shortlisted and invited three teams to participate in interviews the week of June 24, 2024. Of the final three teams, the evaluation panel selected and recommend SWA Group as the best bidder.
Bidder Recommendation
Best Qualified
Person/Firm
SWA Group
Evaluation
Criteria
Experience/technical competence, stability/references, work plans/timeline, project team, cost of services/cost control, and value added/breadth of services.
Municipal Code SMMC 2.24.190
RFPs Received (shortlist in bold)
AtkinsRéalis USA, Inc. Kimley-Horn MIG, Inc.
Psomas RIOS SWA Group
RFP Data
Posted On Posted On Advertised In (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
04/15/2024 City's Online
Bidding Site
Santa Monica Daily
Press
161 05/17/2024
Justification to Award
Staff recommends SWA Group as the best qualified firm to provide professional design services based on its team composition and proven experience in designing and advancing functional and activated public spaces, project approach and understanding, competitive cost proposal, and ability to provide an integrated team of consultants for all scopes of work. SWA Group has also demonstrated its ability to deliver quality work on past projects for the City of Santa Monica.
Next Steps
SWA Group would initiate background research and data collection, conduct required site survey work, and identify design alternatives to be considered. Following staff review of alternatives, SWA Group would develop one refined alternative based on staff’s feedback and present the Revised Plan to the City’s Recreation and Parks
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Commission and City Council and invite comment and input to be considered in Design Development. Staff anticipates returning and presenting the Revised Plan to Council in spring 2025.
Environmental Review
Per Council direction in August 2023, staff solicited proposals for design of the Memorial Park Redevelopment and Expansion Project in April 2024 with the understanding that state law requires CEQA completion prior to final design. This allowed for the initial design of the project to commence and is categorically exempt from CEQA pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines. Council is being asked to enter into the recommended agreement with SWA Group for professional design services, prior to CEQA completion. In compliance with Section 15004 of CEQA Guidelines, final design and approval of the project would not begin until CEQA completion, and as such, the City would not be bound to a specific action, nor would it prohibit the City from considering any feasible mitigation measures and alternatives as required by the CEQA process. It is anticipated that CEQA documentation for the project will be presented to Council in Spring 2025, prior to commencement of final design.
Past Council Actions
Meeting Date Description
01/23/18 (Attachment B) Award of Design Agreement for the Memorial Park Feasibility Study and Master Plan
10/15/19 (Attachment C) Memorial Park Redevelopment and Expansion Master Plan Review
02/11/20 (Attachment D) Design-Build Contract for Memorial Park Expansion 09/27/22 (Attachment E) Memorial Park Expansion Study Session 08/22/23 (Attachment F) Enter into Agreement with SMC and Proceed with Solicitation for Design Services of Phases 1 and 2 of the Memorial Park Redevelopment and Expansion Project
Financial Impacts and Budget Actions
Approval of the recommended action(s) requires the following budget amendment:
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FY 2024-25 Budget Amendment
Release Funds Appropriate Funds
Account Number Amount Account Number Amount
10.370334 – Park
Impact Fee
$200,000 C1007060.689000
Memorial Park
Expansion
$200,000
With Council approval of the above budget amendment, staff seeks authority to approve available funding from the Clean Beaches and Ocean Parcel Tax Fund, General Fund, and Special Revenue Fund to award an agreement with SWA Group for professional design services.
Agreement
Fund FY 2024-25
Request Amount
CIP Account # Total Contract
Amount
Clean Beaches and
Ocean Parcel Tax
Fund
$2,492,000 C1608450.689000
Pico-Kenter Outfall &
MS4
$2,492,000
General Fund $1,213,000 C0107060.689000
Memorial Park
Expansion
$1,213,000
Special Revenue
Source Fund
$700,000 C1007060.689000
Memorial Park
Expansion
$700,000
$4,405,000 Total $4,405,000
Future year funding is contingent on available funds and Council budget approval. Staff anticipates returning to Council in spring 2026 with a recommendation to award a construction contract for the Project, upon which time staff would also seek approval to modify SWA Group’s agreement to include construction administration services.
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Prepared By: Amelia Feichtner, Capital Program Manager
Approved Forwarded to Council
Attachments:
A. Memorial Park Additional Considerations
B. January 23, 2018 Staff Report (Web Link)
C. October 15, 2019 Staff Report (Web Link)
D. February 11, 2020 Staff Report (Web Link)
E. September 27, 2022 Staff Report (Web Link)
F. August 22, 2023 Staff Report (Web Link)
G. Oaks Initiative Form - SWA Group
H. Levine Act Disclosure Form - SWA Group
I. Written Comments
J. Written Comments
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CITY OF SANTA MONICA
ARCHITECTURE SERVICES
Additional Items for Design
Considerations.
The Memorial Park Expansion Project
SP 2509
The Following items represent additional program and dimensional considerations to be considered by the selected design-build team during project phase 1, as directed by the City Council during their October 15, 2019 meeting:
1. Incorporation of a premier California Interscholastic Federation (CIF) baseball field;
2. Incorporation of a NCAA tournament level softball field;
3. Inclusion of elements such as bullpens, warm up areas, dugouts, seating, public address systems, and score booths at all fields;
4. Incorporating of an off-leash dog run;
5. Clustering the proposed outdoor fitness equipment in groupings;
6. Incorporating shade for the playground;
7. Consider the possible access from the Expo station and whether rotating fields 3 and 4 might provide an opportunity for permeability and entry for Expo pedestrian traffic;
8. Consider making the entrance on 14th Street, where the drop-off is located to make more of a pedestrian experience;
9. Consider making area designated as field #5 (masterplan phase 2) more flexible to include passive recreational use prior to construction of masterplan phase 2;
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Packet Pg. 369 Attachment: Memorial Park Additional Considerations (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
10. Consider the addition of more community amenities, including barbecue grills;
11. Study the possibility of closing all or additional portions of 16th Street and expanding the park into that space;
12. Analyze and document the parking loss impacts on 16th Street;
13. Analyzing the tree canopy, relocating existing trees, and planting new trees where possible;
14. Examining aspects of sun and shade affecting players’ vision in determining positioning of the fields;
15. Conducting further analysis of natural turf vs. synthetic turf;
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Packet Pg. 370 Attachment: Memorial Park Additional Considerations (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
FOR CITY USE ONLY:
Bid/PO/Contract # Permit #
The SWA Group
The SWA Group is an ESOP company. As such, no single owner holds more than 10% equity.
Elizabeth Benbrooks Marketing Manager
May 17, 2024
[email protected]
Please see following pages.
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Packet Pg. 371 Attachment: Oaks Initiative Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion) Current SWA Officers, ESOP Committee Members and ESOP Trustees As of April 10, 2024
Original Date of Incorporation 3/23/1960
CORPORATE OFFICERS
Gerdo Aquino – Co-CEO, 2012
David Thompson – Co-CEO, 2020
Raymond Siu – COO/CFO, 2020
Margaret Leonard – Controller 2008/Secretary 2017
ESOP COMMITTEE MEMBERS
Shuyi Chang – inside member, 2021
Ying-Yu Hung-inside member, 2020
Joe Runco- inside member, 2003
Michael Robinson, inside member, 2023
Stephen Rydzon, inside member, 2023
Corey Rosen-outside member, 2005
Non-Member Attendee:
Sheryl C. Bayani-Alzona, Employee Benefits Law Group,
2020 Jon Chambers, SageView Investments
ESOP TRUSTEES
Margaret Leonard (2012)
Chuck McDaniel (1998 member, 2019 Trustee)
Hui-Li Lee (2019)
BOARD OF DIRECTORS
Gerdo Aquino 2012 Ying-yu Hung July 2024
David Baiocchi, Outside Member 2019 Scott McCready July 2024 Scott Cooper, Chairman , 2020 2018
Ye Luo 2019
Kenneth Munkacy, Outside Member 2015
David Thompson 2020
John Wong 1999
Samuel Muir – Acting Secretary, 2020 (not an officer)
Litchfield Law
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Packet Pg. 372 Attachment: Oaks Initiative Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
EXECUTIVE COMMITTEE
Managing Principals
Sausalito
Joe Runco
John Wong
San Francisco
Rene Bihan
Laguna Beach
Sean O’Malley
Los Angeles
Ying-Yu Hung
Houston
Kinder Baumgardner
Dallas
Chuck McDaniel
New York
Thomas Balsley
Shanghai
David Thompson
Gerdo Aquino Co-CEO
David Thompson Co-CEO
Raymond Siu CFO
Margaret Leonard Controller
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Packet Pg. 373 Attachment: Oaks Initiative Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion) City of Santa Monica Levine Act Disclosure Form
CITY OF SANTA MONICA
CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________
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Packet Pg. 374 Attachment: Levine Act Disclosure Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.
Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.
By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.
I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:
Please note this form is a public record and subject to a California Public Records Act request.
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Packet Pg. 375 Attachment: Levine Act Disclosure Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
DATE: January 25, 2024
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $250 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.
State law requires a party to a proceeding to disclose any contributions exceeding an aggregate $250 that the party and their agents have made to an officer of the City within the preceding 12 months. The Disclosure Form is intended to assist City officials with recognizing when they have an obligation to disclose and recuse themselves, and to aid parties with their disclosure obligations.
1. To what sort of proceedings is the disclosure form applicable? The Levine Act applies to all discretionary entitlements and contracts, with the exception of labor contracts, personal employment contracts, and contracts that must be awarded to the lowest responsive/responsible bidder. It does not apply to ministerial approvals.
For instance, the Levine Act applies to the following:
• Building and development permits
• Conditional use permits
• Contracts generally (unless an exception applies):
o Contracts for goods, services, professional services
o Real property contracts for purchase, sale, lease
o Contract amendments
o Settlement agreements
o Small contracts, including purchase orders, and zero dollar contracts (no de minimis exception)
• Public street abandonments
• Private development plans
• Professional license revocations
• Rezoning of specific real estate parcels
• Event permits
• Rulemaking procedures affecting a particular industry where only a small number of businesses are affected
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Packet Pg. 376 Attachment: Levine Act Disclosure Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
• Special district formation proceedings involving the creation of a special use or benefit to the person in the district
• Tentative subdivision and parcel maps
• Zoning variances
• Vacation of a public easement across private property • Pre-applications, such as for General Plan Amendment, considered by the legislative body prior to filing of formal application
• Contracts entered under the City Manager’s Authority
• Closed session items that may result in a contract/settlement agreement approved by Council (real estate or litigation)
It does not apply to:
• Purely ministerial decisions
• General policy decisions or rules where the interests affected are many and diverse
• Ordinances and resolutions (except items like development agreements adopted by ordinance)
• Ballot measures
• Departmental policies
• Council rules
• Contracts awarded to the lowest responsive/responsible bidder (not applicable in Santa Monica)
• Labor contracts and project labor agreements
• Personal employment contracts
• Allocation of resources in the City budget
2. Who is required to disclose?
A “party” to a proceeding is any person who files an application for, or is the subject of, a proceeding. In general, a person or company who applies for a permit, license, or right to use property in a particular way, which requires the City’s discretionary approval, will qualify as a party.
Parties are also required to disclose contributions by their agents. An “agent” is someone who (1) represents a party to a proceeding for compensation; and (2) appears before or otherwise communicates with the City for the purpose of influencing the pending proceeding. This can include law firms, architects, engineers, consultants, and similar entities. Both the individual and their employer or firm are considered “agents.” A party should also disclose contributions of other entities majority owned by the party, as well as contributions of any other entity whose contributions it directs or controls.
3. What must be disclosed?
A party must disclose campaign contributions over $250 made in the prior twelve months.
A “contribution” is anything of value for which the party has not received full consideration, including money, nonmonetary items, payments made for advertising or
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Packet Pg. 377 Attachment: Levine Act Disclosure Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
other expenses coordinated with a candidate or committee, loans, tickets to political fundraisers, etc.
4. Who is considered an officer of the City?
An “officer” is anyone who may make, participate in making, or attempt to influence a decision in the proceeding or who exercises authority over officers who may do so. This includes elected officials, members of appointed boards and commissions, the City Manager, and any individual who is a candidate for elected office or who has been a candidate in the twelve months prior to the decision. This definition is included on the Disclosure Form.
5. When should the disclosure occur?
The Disclosure Form must be completed (1) by a party to a contract with the City (or that party’s agent) at the time the party submits a response to a Request for Proposal or other competitive solicitation, enters into contract negotiations with the City, or executes a contract with the City, whichever is earliest; or (2) by a party to a license, permit, or other entitlement proceeding before the City at the time the party (or their agent) submits the license, permit, or entitlement application to the City. The party (or their agent) must submit a supplemental form if they make any new reportable contributions while the same contract, license, permit, or other entitlement is being considered. The party (or their agent) must also use the form if they need to correct any previously submitted form.
Parties are solely responsible for completing the form accurately, and could face penalties for failure to do so. The California Fair Political Practices Commission (FPPC) is the body who enforces violations of the Levine Act. If a party is uncertain about whether they are required to report or combine a contribution, they should consult with their attorney.
Nothing herein constitutes legal advice and individuals are urged to consult with their own attorney regarding the requirements of the law. To the extent there is any inconsistency, the language of the Levine Act and FPPC Regulations govern over this notice. Resources for officers, parties, participants, and agents, are available on the FPPC’s website at https://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
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Packet Pg. 378 Attachment: Levine Act Disclosure Form - SWA Group (6382 : Award Contract for Memorial Park Redevelopment and Expansion) 1 David Yakobson
From: Elisabeth Green <[email protected]>
Sent: Tuesday, August 27, 2024 11:59 AM
To: councilmtgitems; Gleam Davis; Caroline Torosis; Jesse Zwick Cc: [email protected]; Kevin McKeown Fwd
Subject: Redevelopment of memorial park
EXTERNAL
As a professional human factor engineer and certified forest steward, I have identified design alternatives to be considered and included in the Revised Plan to the City’s Recreation and Parks redevelopment of Memorial Park, as follows.
1. Maintain in place all of the trees at Memorial Park. Citizens need a public hearing pertaining to a published environmental impact statement. The City's planned removal of the old growth pine trees will certainly be an issue. When does the City anticipate the publication of an environmental impact statement?
2. Enlarge the existing fenced-in, leash-free dog area. Or, finish fencing in one of the existing baseball fields and leave a gate unlocked.
3. Maintain all of the buildings where they are. Repurpose them. The environmental impact statement should include greenhouse gas emissions. Depending on size, materials, and how those materials are sourced, constructing a new house likely emits on the order of 15 to 100 tons of CO2. https://climate.mit.edu/ask-mit/how-much-co2-emitted-building-new-house
4. Any development of Memorial Park should be zero emissions. At the very least, the City should hire only climate positive individuals and require us to use our climate credit to offset the emissions produced by the development we steward.
5. Convert the lumber buildings into parking structures. Parking will become a hardship when the parking lot at the appliance store across the street is redeveloped as signified. Removing a row of street parking spaces removes the parent’s ability to watch their kids play from their cars where the kids can find their parents.
6. Repair the existing electric vehicle charging station. Deliver dozens or hundreds more solar powered charging stations with solar panels that follow the sun. A Black man who called himself a city employee has called the police out on at least five occasions to remove a lawfully parked and plugged-in electric vehicle from the solar charging station so that he could park there. I saw him unplug and replug his car on several different occasions, so that he hogged the charging station for longer than the three hour time limit.
7. Memorial Park needs an outdoor strength training area for adults, perhaps like the one reserved for children where police officers chase away adults who work out there when children are not present.
Consider adding the kind of circuit training equipment that was installed at Reed Park.
8. The City of Santa Monica should either leave public restrooms unlocked at night or open them earlier in the morning. Or, leave plastic bags outside next to trash cans or next to the bathrooms with a sign saying please tie your excrement securely in the plastic bag so that flies don’t transfer bits of your excrement to food within a radius of a mile or however far the local flies travel.
9. No concession stand should be allowed to increase the risk of obesity or incidents of children buying or nagging their parents to buy food. Why do posted signs prohibit leaving food at parks? The City is not building a professional ballpark but only a field to practice professional ball.
Item 5-B
August 27, 2024
Item 5-B
August 27, 2024
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Packet Pg. 379 Attachment: Written Comments (6382 : Award Contract for Memorial Park Redevelopment and Expansion) 2 10. Put only solar powered charging stations on top of any parking structure. Putting tennis courts on top of a parking structure will require players to breathe the exhaust fumes of parking cars and take the elevator or stairs to retrieve a lost ball.
Elisabeth Green
1223 WILSHIRE BLVD PMB 1656
SANTA MONICA CA 90403
Item 5-B
August 27, 2024
Item 5-B
August 27, 2024
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Packet Pg. 380 Attachment: Written Comments (6382 : Award Contract for Memorial Park Redevelopment and Expansion) 1 David Yakobson
From: lmarreola <[email protected]>
Sent: Monday, August 26, 2024 5:54 PM
To: Council Mailbox
Cc: councilmtgitems
Subject: Memorial Park Expansion
EXTERNAL
A reminder that years ago Santa Monica Malibu School District Board built beautiful stand alone softball field on 7th and Michigan to satisfy Title 9 laws. That field was demolishedvto make room for a new building. The School District promised to replace that field notth of the old Tech building near Olympic Blvd. That promise was broken because another new building was built. The softball field was placed in center field of the baseball field. This is a safety issue as baseballs during practice can be hit into softball field.
The school district should pay 20 million dollars to build a softball field at Memorial Park, that Samohi Softball has priority to use, making up for their broken promise.
Sent via the Samsung Galaxy S21 5G, an AT&T 5G smartphone Item 5-B
August 27, 2024
Item 5-B
August 27, 2024
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Packet Pg. 381 Attachment: Written Comments (6382 : Award Contract for Memorial Park Redevelopment and Expansion) 2 David Yakobson
From: lmarreola <[email protected]>
Sent: Monday, August 26, 2024 5:35 PM
To: Council Mailbox
Cc: councilmtgitems
Subject: Memorial Park Expansion Plan
EXTERNAL
Please get public input on Phase1 and Phase 2. In phase 1 the field at southeast corner of field batters will be looking directly into sun during late spring and summer. This could be a safety issue. Please consider putting fields where batters face Southwest and Norteast.
These plans were originally done almost a decade ago. There are and will be new stakeholders that deserve input and possible revisions.
Please assure that new up to date public input is recieved.
Thank You
Larry Arreola
Lifelong user of baseball and softball at Memorial Park Sent via the Samsung Galaxy S21 5G, an AT&T 5G smartphone Item 5-B
August 27, 2024
Item 5-B
August 27, 2024
5.B.i
Packet Pg. 382 Attachment: Written Comments (6382 : Award Contract for Memorial Park Redevelopment and Expansion) 1 David Yakobson
From: Ann Bowman
Sent: Monday, August 26, 2024 1:48 PM
To: councilmtgitems
Cc: Jenny Rogers
Subject: August 27, 2024 Council Meeting - Item 5.B. - SUPPORT Item 5.B. - SUPPORT - Award contract for Memorial Park Phase 1 Design Dear Mayor Brock and Esteemed Councilmembers -
As a Recreation and Parks Commissioner, I support with enthusiasm Staff's recommendations to Council in connection with approval and negotiation of an agreement with SWA Group for Design Services for the Memorial Park Redevelopment and Expansion Project.
Thank you so much for your support of this Consent Calendar item.
Sincerely,
Ann Bowman
Recreation and Parks Commissioner
Item 5-B
August 27, 2024
Item 5-B
August 27, 2024
5.B.i
Packet Pg. 383 Attachment: Written Comments (6382 : Award Contract for Memorial Park Redevelopment and Expansion)
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Packet Pg. 384 Attachment: Written Comments (6382 : Award Contract for
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Packet Pg. 385 Attachment: Written Comments (6382 : Award City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.C
1 of 7
To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation Subject: Award Contract to Token Transit, Inc. for Big Blue Bus Mobile Ticketing Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines
2. Award RFP# 405 to Token Transit, Inc. for mobile ticketing services for the Department of Transportation.
3. Authorize the City Manager to negotiate and execute an agreement with Token Transit, Inc. in an amount not to exceed $113,500 for one year, with 4 additional one-year renewal options in the amount of $559,961, on the same terms and conditions for a total amount not to exceed $673,461 over a five-year period, with future year funding contingent on Council budget approval.
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Summary
Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation (DOT), operates 194 transit buses across 69 square miles of greater Los Angeles providing more than 800,000 rides each month. BBB is committed to providing an exceptional user experience onboard its bus beginning with its three fare collection systems. The majority (74% in FY 2022-23) of BBB customers board using the regional Transit Access Pass (TAP) ticketing system. Another 17% of customers pay with cash, and a small but consistent percentage of BBB customers (approximately 5%) board with Token Transit mobile tickets,1 which can be purchased in smartphone apps including the Token Transit app as well as the trip-planning apps Transit, Google Wallet, Moovit, and Bestmap, and others.
With the upcoming expiration of the Token Transit mobile ticketing contract, staff conducted a competitive procurement and published RFP #405 in April 2024. Upon evaluation of all proposals, staff now recommends a contract award to Token Transit for mobile ticketing services.
Discussion
Integration with third-party trip planning apps
More than 904,000 BBB mobile passes have been sold since 2017, representing more than $2 million in gross sales, and $305,474 in FY2023-24.2 Customers can buy their BBB tickets anywhere using their smartphones using not only the Token Transit app but also third-party trip planning apps. Many customers prefer the convenience of buying tickets in the app they are already using for trip planning such as the Transit app, Google Transit, Moovit, or Bestmap. As shown in Figure 1, in FY 2024-25, third-party apps sold nearly 64% of BBB’s mobile tickets, with more than 58% purchased through BBB’s official trip-planning app, Transit. Many public transportation users already have one or more trip-planning apps installed on their phones, making it simple for visitors traveling to our service areas to plan trips and/or purchase their tickets in their preferred app just as they do in their own city.
1 Big Blue Bus Performance Metrics Fiscal Year-End Report FY2022-23 2 Token Transit agency analytics dashboard
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Figure 1 – Mobile Ticketing Sales by Platform FY 2023-24 (source: Token dashboard) To ensure customers could keep buying BBB mobile tickets in their preferred trip planning apps, staff included integration with third party apps as a requirement in the RFP. Only Token Transit fully met this requirement.
Simplifying electronic validation of mobile tickets
To make mobile fare payment easier for customers, BBB installed Bluetooth validators in early 2021. However, 93% of customers who board with a Token Transit mobile ticket do not use the Bluetooth validators to scan their tickets.3Instead, most customers show their smartphones to the motor coach operator (MCO) to visually validate their ticket.
Based on MCO feedback, customers boarding the bus, especially out-of-town, infrequent, or first-time users, are confused that the bus has three validators (the SPX Genfare farebox which accepts cash fares, the TAP validator, and the Token Bluetooth validator). Other customers find it challenging to pull up the right screen on their smartphone and/or find it faster to just show the MCO their ticket. As a result, the validators are significantly underutilized.
3 Token Transit agency analytics dashboard
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Figure 2 – Bluetooth Mobile Ticketing Validator installed on BBB vehicles The most noteworthy concern about the Bluetooth validators is that due to technical limitations, they cannot read mobile tickets offered by third-party smartphone apps (only tickets generated by the Token Transit app), even though most of our tickets are sold in those apps. DOT staff learned from peer agencies that although the BBB Token Transit third-party app tickets can only be visually validated versus electronically, customers at other transit agencies offering Token Transit mobile ticketing have successfully integrated third-party app mobile tickets with their onboard validators, including the same model of SPX Genfare fareboxes used by BBB.
Using our fareboxes’ QR code scanners to read mobile tickets would eliminate the need for MCOs to visually validate fares, provide staff with more detailed transaction data for analysis, and reduce the number of validators on board from three to two, speeding up the boarding process and improving the customer experience. QR-coded tickets could also be used as single-use fares for social service agencies to give their clients, providing a solution for bulk ticket sales, which have decreased by 90% since metal tokens were discontinued. Social service agencies have told staff they want unique, disposable 1-ride tickets that do not expire, and paper QR-coded tickets would meet these requirements.
With the potential for improvements to the customer boarding and fare payment experience using QR-coded tickets, staff included the RFP requirement that the mobile ticketing app generate tickets with QR codes that can be integrated into third-party apps and read by our fareboxes. Token Transit was the only vendor that fully met that requirement.
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Vendor Selection
On April 18, 2024, staff published RFP #405 requesting proposals for a mobile ticketing fare collection system. Four proposals were submitted by the due date of May 9, 2024.
A team of staff evaluated the four proposals and recommended an award to Token Transit, Inc., the submitter who received the highest score based on the evaluation criteria that included quality of project management plan, project team, cost, quality of work, technical capabilities, adherence to requirements, references, qualifications, experience, financial health, and project demonstration.
Best Qualified
Firm
Token Transit, Inc.
Evaluation
Criteria
The project management plan showed the quality and thoroughness of the proposer’s project plan and timeline and evidence of their ability to meet project timelines, the ability, and experience in assembling a highly qualified team of sub-consultants, demonstration of a well-thought-out, cost-effective, and efficient project plan demonstrating an understanding of the project requirements, risks, stakeholders, milestones, and budget. Project team:
relevant experience of key personnel based on the resumes and experience narratives submitted reflecting the qualifications of the project team, effective communication, and understanding of the project goals, experience with similar projections, and the quality of responses to questions. Cost: Overall operation should encourage cost-effective work and services. Cost control, performance within budget allocations, prudent accounting practices, management, and clear communication with City staff. Quality of work: Work reflects the ability to meet the distinctive goals established for each component. Brief descriptions of previous project experiences were used to show how quality control was achieved with former clients. References from at least three previous North American clients receiving similar services to those proposed for this project. based on documented experience on similar projects and ensures that the distinctive goals established for each component are met. Qualifications, experience, commitment, and financial health. Project demonstration/interview.
Municipal
Code SMMC 2.24.190
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Recommendation
RFPs Received
Token Transit, Inc. SPX Genfare SC Soft Sonda USA
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
4/18/2024 City's Online
Bidding Site Santa Monica Daily Press 8 5/9/2024
Justification to Award
Staff interviewed 2 shortlisted firms. Based on these criteria and criteria in SMMC 2.24.190, staff recommends Token Transit, Inc. as the best-qualified firm to provide mobile ticketing services based on delivering the lowest cost proposal and their expertise as the mobile ticketing vendor to hundreds of transit agencies in North America, including the City of Santa Monica, and on positive results of reference checks.
Environmental Review
The contract for mobile ticketing services is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The contract is covered by the commonsense exemption which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement will provide the City with a fare collection system. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to award a contract with Token Transit for mobile ticketing services.
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Agreement Request
FY 2024-25
Request
Amount
Future Years Amount CIP Account # Total Contract
Amount
$113,500 $559,961 DOT / C6007470.689000 $673,461
Future year funding is contingent on Council budget approval.
Prepared By: Barbara Andres, Customer Experience and Innovation Administrator
Approved Forwarded to Council
Attachments:
A. OAKS_INITIATIVE_FORM
B. Levine Act Disclosure Form_Token Transit 2024
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Packet Pg. 393 Attachment: OAKS_INITIATIVE_FORM (6391 : Award Contract for Big Blue Bus Mobile Ticketing) Zachary Browne COO
5/7/2024
[email protected] 415-529-3668 #800
Token Transit
Morgan Conbere - CEO
Zachary Browne - COO
Zachary Browne, Morgan Conbere, Ekaterina Kuznetsova, Samuel Daly
5.C.a
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5.C.b
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5/24/2024
Zachary Browone Secretary
Token Transit
5.C.b
Packet Pg. 396 Attachment: Levine Act Disclosure Form_Token Transit 2024 (6391 : Award Contract for Big Blue Bus Mobile Ticketing) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.D
1 of 3
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Adoption of a Resolution Authorizing Application for Grant Funds for State Affordable Housing Funding Opportunity
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 the attached resolution authorizing the application for grant funds in an amount not to exceed $5,000,000 from the California State Department of Housing and Community Development for the 2024 round of Local Housing Trust Fund Program Matching Grant Funding (Attachment A) for the Housing and Human Services Department; and
3. Authorize the City Manager to execute all necessary documents to apply for the grant, accept the grant, if awarded, and accept all grant renewals, if awarded.
Summary
The California Department of Housing and Community Development (HCD) offers an annual opportunity for local public agencies to apply for matching grant funding to finance affordable housing development. The Local Housing Trust Fund (LHTF) program offers awards not to exceed $5 million through a competitive application process. Santa Monica was awarded $5 million in three of the LHTF’s prior application rounds in 2020, 2021 and 2023. Staff seeks Council authorization to apply for a 2024 LHTF award for an additional $5 million. The LHTF program requires the City to match LHTF awards on a dollar-for-dollar basis. Thus, a $5 million LHTF award would be matched with either City-owned land, available City Housing Trust
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Funds, or a combination of both. The LHTF award and City match would be used to produce affordable housing in accordance with the City’s Housing Trust Fund Guidelines and Plan, as well as the LHTF program’s guidelines.
Discussion
On July 9, 2024, HCD issued a Notice of Funding Availability (NOFA) for the LHTF program. The LHTF NOFA makes approximately $53 million available in matching grants to local housing trust funds. The timeframe for submitting 2024 applications is between August 20, 2024 and September 17, 2024. With City Council authorization (Attachment A), staff would apply for the maximum funding amount allowed under the LHTF NOFA. If successful, funds would be used to finance future affordable housing developments. The City would fulfill the LHTF program requirement to match LHTF awards on a dollar-for-dollar basis by either contributing City-owned land, providing matching City Housing Trust Funds, or a combination of both, depending on the funding needs of future developments. All funds would be used in accordance with the City’s Housing Trust Fund Plan (Attachment B) and Housing Trust Fund Guidelines (Attachment C), as well as in accordance with the LHTF program guidelines.
Environmental Review
Authorization of the application for LHTF grant funding would have no possibility of significant effect on the environment, and therefore, is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. If awarded, the use of LHTF grant funding for future affordable housing developments would be subject to environmental review at the time they are proposed.
Past Council Actions
Meeting Date Description
05/09/23 Adoption of a Resolution Authorizing Application for State
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Grant Funds for the Local Housing Trust Fund Program
07/24/2018 (Attachment B) Housing Trust Fund Plan
07/25/2017 (Attachment C) Housing Trust Fund Guidelines Financial Impacts and Budget Actions
The 2024 application for LHTF funding would allow the City to apply for, and if successful, receive up to $5 million in State funding that would be used to supplement existing funding in the Housing Trust Fund to increase the supply of affordable housing in Santa Monica. If awarded, staff would return to City Council for specific budget actions. The LHTF program requires the City to match LHTF awards on a dollar-for-dollar basis. The City will meet the Matching Funds requirement of the LHTF Program by contributing either City-owned land with of a value of at least $5 million, by using $5 million in funds that already exist in the Redevelopment Replacement Housing Trust Fund, or a combination of land and Housing Trust Funds valued at $5 million.
Prepared By: Ayala Scott, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. Draft 2024 LHTF Resolution
B. Housing Trust Fund Plan
C. Housing Trust Fund Guidelines
D. Written Comments
5.D
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City Council Meeting: August 27, 2024 Santa Monica, California RESOLUTION NUMBER _______ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR LOCAL
HOUSING TRUST FUND PROGRAM MATCHING GRANT FUNDING
WHEREAS, the State of California (the "State"), Department of Housing and Community Development (the "Department") is authorized to provide up to $53 million under the Local Housing Trust Fund ("LHTF") Program from the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) ("Program"); WHEREAS, the Department issued a Notice of Funding Availability ("NOFA") dated July 9, 2024, under the LHTF Program;
WHEREAS, the City is an eligible Local or Regional Housing Trust Fund applying to the Program to administer one or more eligible activities using Program Funds; and WHEREAS, the Department may approve funding allocations for the LHTF Program, subject to the terms and conditions of Health and Safety Code Section 50842.2, the LHTF Program Guidelines, NOFA, Program requirements, the Standard Agreement and other related contracts between the Department and LHTF award recipients.
NOW, THEREFORE, BE IT RESOLVED THAT:
SECTION 1. If the City of Santa Monica ("City") receives an award of LHTF funds from the Department pursuant to the above referenced LHTF NOFA, it represents and certifies that it will use all such funds on Eligible Projects in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including, without limitation, all rules and laws regarding the LHTF Program, as well as any and all contracts City may have with the Department.
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Packet Pg. 400 Attachment: Draft 2024 LHTF Resolution [Revision 3] (6399 : LHTF Application Resolution) SECTION 2. The City is hereby authorized to act as the manager in connection with the Department's funds to Eligible Projects pursuant to the above-described Notice of Funding Availability in an amount not to exceed $5,000,000 (the "LHTF Award").
SECTION 3. The City hereby agrees to match on a dollar-for-dollar basis the LHTF Award pursuant to Guidelines Section 104, and the City hereby agrees to utilize matching funds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by Health and Safety Code Section 50843.5(c).
SECTION 4. Pursuant to the City of Santa Monica Housing Division Local Housing Trust Fund Expenditure Plan (Exhibit A) and the City's certification in this resolution, the LHTF funds will be expended only for Eligible Projects and consistent with all program requirements.
SECTION 5. The City shall be subject to the terms and conditions as specified in the Standard Agreement, Health and Safety Code Section 50842.2, and LHTF Program Guidelines.
SECTION 6. The City Manager is authorized to execute the LHTF Program Application, the LHTF Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the LHTF Award to City, as the Department may deem appropriate.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
________________________
DOUGLAS SLOAN
City Attorney
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Packet Pg. 401 Attachment: Draft 2024 LHTF Resolution [Revision 3] (6399 : LHTF Application Resolution) Adopted and approved this 27
th day of August 2024.
__________________________
Phil Brock, Mayor
I, Nikima Newsome, Interim City Clerk of the City of Santa Monica, do hereby certify that Resolution No. _______(CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 27th day of August 2024, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST: __________________________
Nikima Newsome,
City Clerk
5.D.a
Packet Pg. 402 Attachment: Draft 2024 LHTF Resolution [Revision 3] (6399 : LHTF Application Resolution) Exhibit A
City of Santa Monica Housing and Human Services Division Local Housing Trust Fund
Expenditure Plan
The City of Santa Monica (“City”) commits to use Local Housing Trust Fund (“LHTF”) Program Funds and Matching Funds as follows:
• 100% of Program Funds and Matching Funds received will be spent to provide construction/permanent financing loans at simple interest rates of no higher than three percent per annum with deferred payments based on residual receipts, for payment of predevelopment costs, acquisition, construction, or rehabilitation of multifamily rental housing serving Lower-Income (80% of Area Median Income (“AMI”)), Very Low-Income (50% of AMI), and Extremely Low-Income Households (30% of AMI). • At least 30% of Program Funds and Matching Funds received will be spent on assistance to Extremely Low-Income Households.
• 100% of Program Funds and Matching Funds received will be spent on loans for the new construction of multifamily rental housing developments with average household income restrictions of no more than 60% of AMI.
• No more than 5% of Program Funds and Matching Funds received will be spent on administrative expenses.
All activities and projects funded by Santa Monica’s LHTF Program Funds and Matching Funds will be located within the City. To meet the Matching Funds requirement of the LHTF Program, the City will contribute City-owned land and/or matching funds from the Redevelopment Replacement Housing Trust Fund, for which the funding sources are:
1) transaction and use taxes approved by Measure GSH and 2) 80% of the loan repayments owed by the former Santa Monica Redevelopment Agency to the City, or other locally-generated funds, which are dedicated and restricted for housing use solely by City action and not by state or federal law.
5.D.a
Packet Pg. 403 Attachment: Draft 2024 LHTF Resolution [Revision 3] (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
Housing Trust Fund Plan
(effective through 2021)
1 On July 24, 2018, the Santa Monica City Council approved the following initial Housing Trust Fund Plan (Plan) effective concurrently with the 2013-2021 Housing Element cycle:
1. The City should endeavor to enter into Housing Trust Fund (HTF) spending commitments for affordable housing production and preservation totaling at least $15 million to $18 million during each fiscal year. The City should endeavor to further increase HTF spending commitments when there are opportunities to maximize the use of HTF resources by leveraging non-City funding (such as tax credits), implementing construction technologies to achieve significant cost savings, or developing affordable housing on City-owned land. In evaluating the cost efficiency of prospective HTF investments, the City should consider the number of bedrooms produced (i.e., number of people served) in addition to the number of residences produced.
2. A priority goal of the Plan is to ramp up the Preserving Our Diversity (“POD”) local rent subsidy program to a range that requires a commitment of no more than $2 million per fiscal year in HTF funds. No actual expansion of the POD program will occur unless and until a detailed plan for doing so is proposed by City staff, vetted by the Housing Commission, and approved by the City Council. Any portion of the potential $2 million in annual HTF funding that is not actually used for the POD program in any particular fiscal year shall remain available for commitment in future fiscal years to other Plan priorities.
3. A priority goal of the Plan is to provide permanent housing in Santa Monica for those among the population of homeless persons that the City Council determines the City should take responsibility to permanently house in the City. This should include “Santa Monicans” who are homeless. Subject to further refinement, this group is deemed to include those persons on the Santa Monica Homeless Registry as of the
5.D.b
Packet Pg. 404 Attachment: Housing Trust Fund Plan (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
Housing Trust Fund Plan
(effective through 2021)
2 date the Plan is adopted who are not already in permanent housing. The City should look to leverage as much as possible federal funds, State funds, County funds, other City funds, or private funds, to accomplish this goal.
4. The remainder of the HTF funds spent each fiscal year should be used to create new affordable housing units for seniors, for physically and mentally challenged persons, for large families, and for small families (including individuals). Unless one or more unusually advantageous opportunities dictate a different result, a goal of the Plan is to provide roughly equal HTF funding support for affordable housing targeted to each of these four populations over the life of the Plan. The equal funding support determination shall take into account HTF funding committed during the entire lifetime of the 2013-2021 Housing Element, even if it occurred prior to the adoption of the Plan.
The equal funding support determination also shall take into account HTF funding committed to the POD program (which is for senior housing) and to permanently housing Santa Monicans who are homeless (who may be members of any of the four populations).
5. The City’s existing affordable housing programs generally provide the highest preference to persons displaced without fault from their existing homes in Santa Monica, and provide the next highest preference to persons who either already live in Santa Monica or who work full-time in Santa Monica. The two goals of the Plan identified in paragraphs #2 and #3 above, however, only serve persons who already live in Santa Monica. The City recognizes that the daily efforts of low income workers are particularly critical to the businesses (including hotels, restaurants, and retail stores) that generate the sales and use taxes supporting the HTF through Measures GS and GSH, as well as the sales and use taxes and transit occupancy taxes that fund a substantial portion of the City’s budget. City staff therefore is directed to develop, in
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Housing Trust Fund Plan
(effective through 2021)
3 consultation with the Housing Commission, a proposal to increase—to the extent it is necessary and feasible to do so in order to maintain an overall equal preference for affordable housing opportunities in the City—the preference in other HTF funded projects for low-income Santa Monica workers.
6. City staff is directed to develop as soon as possible, in consultation with the Planning and Housing Commissions, a proposal to adjust the AHPP program that applies outside of the Downtown Community Plan. The proposal shall be based on a feasibility study, and shall take into account past and projected future production of housing through inclusionary zoning and HTF funded projects, as well as the quantified objectives in the Housing Element and the requirements of Proposition R.
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Packet Pg. 406 Attachment: Housing Trust Fund Plan (6399 : LHTF Application Resolution) Adopted 11-24-1998
Amended 5-2-2000
Amended 4-24-2001
Amended 1-11-2005
Amended 6-19-2007
Amended 2-25-2014
Amended 7-25-2017
Amended 7-27-2021
(* Loan/Grant Limits and Developer Fee Limits have been updated for the FY2017-2018 period) Housing Trust Fund Guidelines
City of Santa Monica
Housing Division
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TABLE OF CONTENTS
I. INTRODUCTION 1
II. TYPES OF LOANS AND GRANTS 2
III. LOAN TERMS 4
IV. APPLICATION SUBMITTAL AND REVIEW PROCEDURES 7
Application Submittal 7
Application Review 8
Competitive Selection Criteria 15
V. LOAN COMMITMENT AND CLOSING PROCEDURES 15
Loan Commitment 15
Loan Closing 16
VI. PROJECT MONITORING AND REPORTING 17
VII. FUNDING SOURCES 20
20 24
27 29
32 HOME Trust Fund
CDBG Housing Trust Fund
Citywide Housing Trust Fund
Low-Moderate Income Housing Asset Trust Fund
TORCA Housing Trust Fund
Redevelopment Replacement Housing Trust Fund
Local Housing Trust Fund
34 VIII. EXHIBITS 37
Exhibit A Definitions
Exhibit B HOME Program Subsidy Limits
Exhibit C Rental Housing Loan Application (with checklist) Exhibit D Green Affordable Housing Checklist
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I. INTRODUCTION
The City of Santa Monica provide financial assistance to support the acquisition, rehabilitation, and new construction of properties to preserve and increase affordable rental housing opportunities for lower income households through the following Programs:
• HOME Housing Trust Fund (HHTF)
• CDBG Housing Trust Fund (CDBGHTF)
• Citywide Housing Trust Fund (CHTF)
• Low-Moderate Income Housing Asset Trust Fund (LMIHATF) • TORCA Housing Trust Fund (THTF)
• Redevelopment Replacement Housing Trust Fund (RRHTF).
Under these Programs, the City provides deferred payment loans and/or grants to bridge the financial gap between available resources - including the borrower's/grantee’s equity and private financing - and the costs of developing affordable multi-family housing. The purpose of the Housing Trust Fund Guidelines (“Guidelines”) is to provide an overview of the types and terms of loans which are available, application requirements, review procedures, selection criteria, loan commitment and closing procedures, and project monitoring and reporting requirements of these varied Programs within one comprehensive source of reference. Throughout this document, loans and grants may be referred to collectively as “loans” except when the terms are unique to a loan or to a grant.
These requirements are minimum requirements for participation in City Programs and are subject to change at any time. Meeting these requirements is not a guarantee of participation in any Program. The City reserves the right to require additional qualifications for individual projects. The City reserves the right to reject any and all applications and to accept applications which in its judgment best serve the interests of the City. On a case by case basis, City Council may also modify or waive provisions of these Guidelines.
These Programs are administered by the Housing Division of the City of Santa Monica (under the direct supervision of the Housing Manager, the direction of the Director of Housing and Economic Development, and the general supervision of the City Manager) on behalf of the City of Santa Monica.
These Guidelines should be interpreted in conjunction with Federal, State, and City statutes and regulations governing use of these funds; in the event of a conflict between these Guidelines and such statutes and regulations, the requirements of those statutes and regulations shall prevail.
Leveraging of City dollars (to the extent possible) with outside funding sources will continue to be a priority.
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II. TYPES OF LOANS AND GRANTS
Acquisition & Predevelopment Loans and Grants
Acquisition & Predevelopment loans may be made to private, nonprofit corporations with a proven capacity to develop, own, and operate housing, and that have a valid 501(c)(3) or (4) designation from the IRS, and in limited circumstances described in the foregoing individual trust fund sections, to for-profit entities. Funds may be used for acquisition and pre-development expenses for projects for which there is site control and which have received a preliminary funding commitment from the City. Expenses shall be limited to services that cannot be obtained on a contingency basis and may include (but are not limited to) architectural and engineering fees, title reports, legal and organizational fees, mortgage application fees, environmental analysis, and permits and fees for public agencies. Predevelopment funds may also be used for purchase options or deposits for the purchase of buildings or land to be rehabilitated or developed with assistance from one or more of the Programs, or purchase options or deposits on properties that will not receive further subsidies under the Program, but that will be used for housing developments that meet the same requirements. Such funds may be provided as part of a predevelopment loan or through a separate contract with a nonprofit corporation as discussed below. Predevelopment loans may also be made to a nonprofit corporation for the purpose of acquiring real property for future affordable housing development, including but not limited to vacant property, and properties with existing residential or commercial improvements.
These predevelopment funds shall be disbursed to an eligible borrower at the time of the City's preliminary approval of a specific project. The amount of predevelopment funds disbursed to each project shall be included in the calculation of the maximum loan from a Program and shall be considered as part of the principal.
Development Loans and Grants
Program funds may be used for development loans for the following eligible purposes:
(1) The purchase of existing multifamily or other buildings for rent to low- and moderateincome households and for the development of congregate housing for rent to lowand moderate-income persons with special needs. Except for congregate housing, existing buildings shall consist of four or more units, unless the City Manager finds that a substantial public benefit will be provided by a project consisting of less than 4 units.
(2) The purchase or lease of land, buildings; or air rights for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and low-income housing tax credits.
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(3) The development of limited-equity housing cooperatives through either conversion or new construction.
(4) The provision of interim loan funds for any of the above purposes prior to the funding of a public or private loan. Eligible development costs for the above uses include but are not necessarily limited to:
(A) site acquisition and preparation;
(B) rehabilitation of dwelling units, common areas and related structures; (C) new construction;
(D) carrying charges and financing fees;
(E) architectural, legal, and organizational fees;
(F) temporary or permanent tenant relocation costs; and (G) a developer fee consistent with guidelines described in Section IV below. (5) Prepayment of certain financing fees, such as bond issuance fees as necessary to make favorable financing available.
Working Capital Loans and Grants
Up to five percent (5%) of the total funds available to Housing Development Corporations (HDCs) under the CDBG Housing Trust Fund, the TORCA Housing Trust Fund and the Low-Moderate Income Housing Asset Trust Fund may be available for Working Capital Loans. A Working Capital Loan may be made to an HDC under contract with the City of Santa Monica for the development and management of affordable housing. Loan funds shall be held in a separate, interest-bearing account by the HDC for use as “working capital” to fund early costs for securing site control and expenses related to feasibility studies prior to approval of a site-specific predevelopment loan or other loan from the City.
Loan funds may be used for reimbursable development expenses that have received prior written approval from the Housing Manager in connection with the acquisition, rehabilitation or construction of housing units that will meet the criteria of low- or moderate-income household benefit as established by the Guidelines. Eligible uses include but are not necessarily limited to:
(1) Site control costs through deposits to escrow for purchase of buildings or sites within the City of Santa Monica, or options to purchase property; (2) Non-refundable option payments, in order to assist the HDC to secure property in a competitive real estate market.
(3) Development expenses that cannot be funded on a contingency basis, including architectural and engineering fees, environmental studies, appraisals and inspection fees.
The total of such expenses shall not exceed $25,000 per project.
Upon receipt of an acquisition & predevelopment loan, or development loan for the project, the HDC shall promptly reimburse the Working Capital account for the amount advanced from the fund for such purpose. In the event that the HDC does not receive an acquisition & predevelopment loan or development loan for the project or is unable to complete the project, the
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City may forgive 90% of the total funds expended by the HDC upon repayment by the HDC of 10% of the amount of the expenditure.
No later than thirty calendar days after the termination date of the Working Capital Loan Agreement, the HDC shall provide a full accounting of the amount of funds available in the account, including all accrued interest, and a list of projects, if any, for which funds have been used and have not been repaid, along with a schedule of projected repayment dates. In the event the Working Capital Loan Agreement is not renewed, these funds shall be returned to the City.
III. LOAN TERMS
Term
Permanent loans that are not grants shall be due and payable in fifty-five (55) years subject to the terms of the applicable Regulatory Agreement or recorded Covenants. Such loans may be extended for up to twenty-five (25) additional years, provided that the Borrower is in compliance with the loan documents. Where necessary in order to meet the requirements for other project funding or enhance project feasibility, the Housing Manager may approve a shorter loan term.
However, in no case shall a Regulatory Agreement or recorded Covenant remain in effect for fewer than 55 years.
Acquisition & Predevelopment Loans that are not grants shall be due and payable in twenty-four (24) months subject to the terms of the applicable Memorandum of Agreement or recorded Covenants. Such loans may be extended for up to eighteen (18) months with an additional twelve (12) month extension option. Where necessary in order to meet the requirements for other project funding or enhance project feasibility, the Director of Housing and Economic Development Department may approve a shorter loan term.
Purchase Option
At the end of the permanent loan term, the City will have the option to take title to the property in accordance with the terms of an option agreement.
Interest Rates for Loans
The interest rate shall be set at either:
(1) the rate established by the Federal Home Loan Mortgage Corporation for the average conventional commitment of a fixed rate, thirty-year (30) mortgage, and shall be compounded annually; or
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(2) when necessary to secure investor equity, interest rates of affordable housing projects that include tax credits or conventional lenders, at 3% simple interest; or (3) when the City loan is in a second position to a first trust deed capital advance/loan made under the U.S. Department of Housing and Urban Development (HUD) Section 202 or Section 811 Programs, the interest rate shall not exceed the highest permissible rate on the applicable HUD Section 202 or Section 811 Program mortgages, under authority of Chapter 24 of the Code of Federal Regulations (CFR), Subpart 885.410(g); or (4) when required in order to meet federal subsidy layering guidelines, at the Applicable Federal Rate (that rate established by the Internal Revenue Service pursuant to Section 1274(d)(1) of the Internal Revenue Code).
The City Manager may waive or reduce the interest rate as needed to ensure the feasibility of projects.
Loan Payments
Payments on permanent loans shall be made as follows:
(1) Payments of principal and interest may be deferred for up to two (2) years from the date of execution of the loan, and up to three (3) years from the date of execution of the loan with approval of the City Manager. After the expiration of the deferral period, payments of principal and interest shall be made annually to the City in an amount equal to 50% of project Residual Receipts, if any. However, this 50% of Residual Receipts may be split among all the public lenders (including the City) on a pro rata (of funding) basis. Payments shall be applied first to accrued interest, and then to principal. (2) The Borrower may elect to prepay the loan prior to the end of the term. However, the Regulatory Agreement or recorded Covenants shall remain in full force and effect for its term regardless of any prepayment.
(3) If the Borrower violates the terms of the Regulatory Agreement or recorded Covenants such that the City declares the loan in default, the entire amount of unpaid principal plus accrued interest at the rate established at the time of closing shall be due. (4) Unless paid in full earlier, the remaining principal balance of the loan and accrued interest shall be due and payable at the end of the term of the Promissory Note. Where necessary to meet requirements of third party investors and with approval of the City Manager, the City may allow the remaining principal and accrued but unpaid interest to be payable only to the extent that the fair market value of the Project exceeds the principal balance of the existing indebtedness secured by the property.
(5) For loans for projects not financed by federal Low Income Housing Tax Credits, upon determination by the City that the borrower is in full compliance with the terms and conditions of the Regulatory Agreement, Deed of Trust, and Program Loan Agreement (collectively referred to as “Loan Documents”), the City shall extend the terms of the existing Regulatory Agreement, Deed of Trust, and Program Loan Agreement for a minimum period of twenty-five (25) years ("Extension Period"). If borrower fully
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complies with all terms and conditions of the Loan Documents during the Extension Period, then any remaining principal and accrued but unpaid interest shall be forgiven at the end of the Extension Period.
Payments on acquisition & predevelopment loans shall be made as follows:
(1) Payments of principal and interest are deferred until maturity. Upon maturity, the City/Agency may extend the term for up to eighteen (18) months with an additional twelve (12) month extension option.
(2) The Borrower may elect to prepay the loan prior to the end of the term. However, the Memorandum of Agreement or recorded Covenants shall remain in full force and effect for its term regardless of any prepayment.
(3) If the Borrower violates the terms of the Memorandum of Agreement or recorded Covenants such that the City declares the loan in default, the entire amount of unpaid principal plus accrued interest at the rate established at the time of closing shall be due.
Grant Balance Reduction
(1) For grants for projects not financed by Low Income Housing Tax Credits, as long as Grantee is in full compliance with the Regulatory Agreement, the City shall reduce the amount of the balance of the grant by 1/80th of the total grant amount each year. If the Grantee is in full compliance with the Regulatory Agreement, the Conditional Grant Note, or the Conditional Grant Deed of Trust, at the end of the initial 55-year term, the Grantor shall accept a twenty-five (25) year extension of the term of the Regulatory Agreement, the Conditional Grant Note, and the Conditional Grant Deed of Trust. Thereafter, as long as the Grantee is in full compliance with the Regulatory Agreement, the Conditional Grant Note, and the Conditional Grant Deed of Trust, Grantor shall continue to reduce the remaining balance of the Grant by 1/80th of the Grant amount each year for an additional 25 years or until the balance of the Grant reaches zero.
Security
The loan shall be secured as follows:
(1) The loan shall be secured by a Deed of Trust and Promissory Note which may be subordinated to Deeds of Trust securing other Federal, State, City loans, or loans from conventional financing institutions used in conjunction with the Trust Fund loan on the same property. The City must approve all requests for subordination. (2) The loan shall be further secured by a Regulatory Agreement, Memorandum of Agreement, or recorded Covenants to assure that Program funds are used to provide long-term affordable rental housing opportunities for low- and moderate-income households. The Borrower and the City shall execute the Regulatory Agreement, Memorandum of Agreement, or recorded Covenants regulating project rents, tenant selection procedures,
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use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use. The Regulatory Agreement, Memorandum of Agreement, or recorded Covenants shall be recorded with the Deed of Trust.
Maximum loan and grant amounts
Except as restricted by State or Federal law, the maximum Trust Fund Loan/Grant per-unit shall not exceed the following:
Original Base Amount
Fiscal Year 2007-08*
Updated Amount
Fiscal Year 2017-18*
New
Construction
Acquisition &
Rehabilitation
New
Construction
Acquisition &
Rehabilitation
Zero and 1-Bedroom
Units $367, 000 $457,000 $492,848 $613,710
2 or more Bedroom
Units $386,000 $481,000 $518,363 $645,940
* Maximum loan/grant to be adjusted in July of each year utilizing the annual adjustment methodology for the City’s Affordable Housing Fee pursuant to Santa Monica Municipal Code Section 9.56.070(b)
Actual loan/grant amounts will be based on the project’s need and the level of affordability that is provided. Program loan/grants in excess of maximum amounts above must be approved by the City Council. Loans for projects in excess of fifty (50) units and any pending loan for a project in excess of $25 million must be presented to City Council as an Information Item.
IV. APPLICATION SUBMITTAL AND REVIEW PROCEDURES
Application Submittal
All applications for Program funds shall be submitted to the Housing Division and shall be reviewed and approved through an administrative review process as established in these Guidelines.
The Applicant shall complete and submit to the Housing Division the Application for Program Funds (see Exhibit C) and prepare all required attachments, including the management plan, tenant selection and marketing plan, relocation plan if necessary, signed purchase agreement and escrow instructions, preliminary title report, and limited partnership documents, if necessary, at least sixty
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(60) days prior to the scheduled close of escrow. Applications may be submitted at any time during the program year and will be considered in the order submitted to the Housing Division.
Application Review
The Housing Division staff shall review the application to:
(1) determine that the minimum Program requirements are met; (2) ensure that the estimated development costs are reasonable and in conformance with the City’s underwriting guidelines and
(3) review the estimated mortgage amount and Borrower equity contribution in accordance with the City’s underwriting guidelines and the requirements of the proposed source of City funding.
Within seventy-five (75) days of the submission of the application, the Housing Division shall determine whether the proposal is approvable for commitment, with or without conditions. If the City determines, in its discretion, that the application is complete and meets all of the Program criteria, the City may issue a commitment letter. If the application has deficiencies, the City staff will identify the problem areas and notify the Applicant.
Staff shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of proposed materials for low maintenance and long term durability.
Design Review
Applicants proposing new construction or change of use of projects, including the moving of buildings onto vacant sites, will be responsible for notifying the neighbors of the proposed project plans for the site at the time the project is submitted to the Architectural Review Board (ARB) for approval. Applicants will invite neighbors to review the project design and comment on the plans at the ARB meeting. The Applicant will notify the neighbors at least seven (7) days prior to the ARB meeting at which the project is scheduled to be reviewed.
Determination of Reasonable Costs and Financial Feasibility Housing Division staff shall review the Applicant's estimates and projections of rents, expenses, reserves and development costs in accordance with the City’s underwriting guidelines. The Applicant shall provide background documentation on all costs as requested by the City. The City may adjust cost and expense amounts as appropriate to conform to current market and industry standards. The total amount of the Program loan and all private loans shall not exceed the total development costs approved by the City.
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The maximum allowable purchase price shall not exceed the appraised value as evidenced by an appraisal prepared by a California State Certified General Appraiser and approved by the Housing Division, which is dated not more than six (6) months prior to the date of the application. The appraisal may not determine property value based solely on sales of properties financed by public agencies.
The maximum affordable mortgage amount shall be calculated using the rent schedule proposed by the Applicant as approved by the City, the proposed interest rate and terms of the primary loan(s), and reasonable operating allowances and reserves including a reserve to amortize a mortgage as needed.
The requested City loan for a project shall not exceed the total amount of the gap between the maximum affordable mortgage amount available from non-City sources plus funds available from other sources of public subsidy, and the total development costs plus any on-going annuity necessary to maintain affordable rent levels as defined in the Program application. The maximum City loan shall not exceed the maximum per-unit limits described in these Guidelines.
All assisted units must maintain rents that do not exceed the Maximum Affordable Rent, as defined in these Guidelines, for the life of the loan in accordance with the terms of the loan or other recorded Covenants. Syndicated projects must be structured such that ownership can feasibly be acquired by the nonprofit General Partner at the end of the term of the limited partnership agreement, when appropriate. When determining the maximum City loan, Housing Division staff will scrutinize the rent schedule and annual cash flows in order to determine whether long-term affordability is maintained. In cases where a rent subsidy program is utilized and the mortgage is calculated on the basis of the subsidized rents, an "affordability reserve" may be required, where the amount of the reserve shall be sufficient to cover the difference between affordable rents and the subsidized rents.
Developer Fee
For new construction projects, the developer fee shall not exceed the following per unit amounts, based on the size of the project:
Original Base Amount
Fiscal Year 2007-08*
Updated Amount
Fiscal Year 2017-18*
For 1 – 20 units $16,240 $21,809
For 21 – 30 units $15,080 $19,042
For 31 – 50 units $13,920 $17,577
For 51 or more units Negotiated Negotiated
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For acquisition and rehabilitation projects of 7 units or less, the developer fee shall not exceed $12,868 (updated for FY 2017-2018; original base amount for FY2007-2008 was $10,900) per unit. For acquisition and rehabilitation projects of 8 or more units, the developer fee shall not exceed the greater of $55,000 per project or the sum of 5% of the depreciable acquisition basis and 15% of the rehabilitation basis. With the exception of those fees for acquisition and rehabilitation projects of 8 or more units, developer fees will be adjusted in July of each year utilizing the annual adjustment methodology for the City’s Affordable Housing Fee pursuant to Santa Monica Municipal Code Section 9.56.070(b). At the discretion of the City Manager a higher fee may be allowed.
The development fee for new construction projects will be released in three stages: (1) one-third upon receipt of the necessary building permits, (2) one-third upon issuance of the certificate of occupancy, and (3) one-third upon the later of permanent loan closing or full lease-up of the project. For projects involving acquisition and rehabilitation, the development fee may be released in two stages: (1) twenty-five percent at the time of issuance of the building permit, and (2) 75% at the time of conversion of interim financing to permanent financing, or full lease-up of the project, whichever is later. Where the project does not utilize interim financing or involves acquisition only, the schedule for release of the developer fee will be reviewed on a case by case basis. Changes to the above schedules for the release of fees may be approved by the Housing Manager.
Developer Capacity
Applicants must demonstrate the capacity to successfully develop the proposed project. The City shall evaluate capacity on the basis of the Applicant’s track record in developing and managing affordable housing, or inclusion of development team members with a successful record in developing such housing. In addition, Applicants must demonstrate the financial and legal capacity to undertake the proposed project.
Clear Title
The Applicant shall have the responsibility to obtain clear title to the property. As soon as feasible, the Applicant will submit a preliminary title report for City review and written approval. Staff shall review the state of title, including the conditions, covenants, restrictions and legal description of the property and the rent control registration and removal permit issues. The Applicant shall correct the state of title and remove all exceptions to the title not consented to by the City before the City closes the loan.
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Senior Financing
The Applicant shall secure other resources such as equity from syndication proceeds, tax exempt financing, federal and state housing rental and development subsidies and available private financing to minimize the amount of the City loan. The Applicant will submit to the City for review the terms and conditions of all non-City financing as well as equity contributions. The Applicant must submit projected cash flows for the term of the loan, showing the maximum possible increases (i.e., worst case scenario) in debt service per year, the projected rent and expense increases, the means of making up any deficits, and projected payments of Residual Receipts. The City shall analyze the feasibility of the project to carry the loan, and if feasible will approve the terms of the non-City financing.
The City may, at its sole discretion, calculate the mortgage amount at the terms and rates of available financing programs other than that proposed by the Borrower, if alternative terms and rates are available that would reduce the amount of City subsidy required, and would otherwise conform to the City/Agency requirements.
Management and Affirmative Marketing Plan
Except in the case of projects funded under the federal Section 202 Supportive Housing Program and Section 811 Supportive Housing Program, the Applicant shall prepare a Project Management Plan for City review and approval. The Plan shall describe the Applicant's policies and procedures concerning:
(1) Affirmative marketing and tenant selection procedures including application procedures, prioritization of Santa Monica residents and workers (see Local Preference section below) where possible; waiting lists, and lease agreements; and marketing efforts and tenant selection procedures that will be used to attract eligible persons from all racial, ethnic and gender groups, as well as persons living with disabilities, in the housing market area to the available housing; the Plan should describe the protocols for keeping records of affirmative marketing activities and for keeping records of requests (from applicants and existing tenants) for accessible units;
(2) Procedures for determining tenant eligibility and certifying incomes; the Plan should demonstrate sufficient outreach to disability-related groups to ensure that accessible units are occupied to the extent possible by those households who need the accessibility features due to disability;
(3) Management/tenant relations and assistance to tenant organizations, including the training and use of tenants to perform maintenance and management functions as appropriate;
(4) Maintenance and repair services;
(5) On-site management facilities;
(6) Rent collection;
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(7) Records and reporting requirements;
(8) Personnel and staffing;
(9) Compliance with all tenant protection laws, including rent control law and Building and Health and Safety Codes;
(10) Fee schedule.
No person shall on the grounds of race, marital status, sex, color, age, religion, national origin, ancestry, physical disability, AIDS, or sexual orientation be excluded from participating in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with these funds.
Local Preference
Local preference for Santa Monica residents and workers in tenant selection has been established by the City as policy. Local preference shall be a requirement of the Citywide Housing Trust Fund, Low-Moderate Income Housing Asset Trust Fund the TORCA Trust Fund, and the Redevelopment Replacement Housing Trust Fund. Local preference shall be a requirement of the HOME and CDBG Trust Funds only if permitted by the federal government.
In evaluating a loan request, staff shall evaluate a loan applicant’s effectiveness in achieving the City’s local preference goals and give priority to those loan applicants who administer their wait lists using sorting protocols which result in outcomes where households who live or work in Santa Monica are beneficiaries of City-funding affordable housing.
Subject to applicable tenant income limits and any preferences required by the laws of the United States or the State of California (including but not limited to laws and regulations governing nondiscrimination and preferences in housing occupancy), the Borrower shall give preference in leasing units in the following order of priority.
(1) First priority shall be given to persons who have been permanently displaced or face permanent displacement from housing in Santa Monica as a result of any of the following:
(a) A redevelopment project undertaken pursuant to California’s Community Redevelopment Law (Health & Safety Code Sections 33000, et seq.) -- applicable only to projects funded by the Low-Moderate Income Housing Asset Trust Fund. (b) Ellis Act, owner-occupancy, or removal permit eviction; (c) Earthquake, fire, flood, or other natural disaster; (d) Cancellation of Section 8 contract by property owner; or (e) Governmental Action, such as Code enforcement.
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(2) Second priority shall be given to persons who are either:
(a) Residents of Santa Monica and/or
(b) Working in Santa Monica at least 36 hours per week for at least 6 months.
Regarding any “accessible units” that are required as part of a multifamily development, such accessible units should be first offered to existing occupants of the building (if applicable) who are not occupying an accessible unit and who have indicated a need for the features of an accessible unit. If no existing occupants of the building have indicated the need for the features of an accessible unit, or if the building is being leased for the initial occupancy, then such accessible units should first be offered to applicants who have indicated the need for the features of an accessible unit, inclusive of the preferences above. The application of preferences may not conflict with Section 504 of the Rehabilitation Act of 1973, 24 C.F.R. §100.202, and any other preemptive laws that may be enacted regarding fair housing for persons living with disabilities. “Accessible units” refers to those units which were originally approved by the City specifically as accessible units and which provide specific features to address the needs of persons living with mobility impairments or persons living with sensory impairments.
Environmental Review
Project sites must be free from adverse environmental impacts, e.g., noise, or the proposed project must successfully mitigate these impacts. The City shall assess the environmental effects of each activity proposed to be carried out with City funding in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the California Environmental Quality Act (CEQA), as applicable. The Housing Division staff will commence the assessment as part of the initial review of the application. For projects subject to NEPA review, no loan funds (except for activities normally exempted from the environmental clearance requirements in 24 CFR Part
58.34) shall be released until the environmental review is completed, the notice of finding and environmental assessment results are published, and the 15 day public comment period expires.
Prevailing Wages
Any contract for construction (rehabilitation or new construction) of affordable housing with 12 or more units assisted with HOME funds, or 8 or more units if the project is assisted with CDBG funds, must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1.
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For all funding programs, the following prevailing wage requirements apply. Pursuant to Chapter
7.28 of Article VII of the Santa Monica Municipal Code, any rehabilitation or new construction project receiving City financial assistance shall comply with State prevailing wage requirements if the following minimum thresholds are met:
(1) For a rehabilitation project over $15,000.
(2) For a new construction project over $25,000
"Minimum total construction contract" shall not include expenses associated with site acquisition, architectural and other pre-construction development costs, financing charges, bonding and insurance requirements, and fees, permits or licenses required in connection with the project. The minimum thresholds stated above are adjusted each July 1st by the percentage change in the Consumer Price Index for the previous calendar year. Current minimum thresholds and prevailing wage levels can be obtained from the Office of the City Engineer.
Relocation
The Applicant shall develop a plan for temporary relocation or permanent voluntary relocation, where necessary, for review by the City. The relocation plan shall be in accord with the City's Relocation and Tenant Assistance Plan, and the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42, and the California Relocation Assistance Law, where applicable, copies of which may be obtained from the Housing Division. There shall be no permanent involuntary tenant displacement. In cases where tenants will be voluntarily displaced, the Applicant must submit a copy of a letter to each tenant which (1) details the tenant’s rights to relocation assistance, and (2) has been signed by the tenant indicating the tenant’s voluntary waiver of any relocation payments.
Contracting Requirements
All Applicants will be required to submit an affirmative action/equal employment opportunity plan indicating the methods that they will use to encourage the participation of certified Minority Business Enterprise/Women Owned Business Enterprise (MBE/WBEs) in their development project. City staff will review the plan and competitive bid and selection process to ensure that required procedures have been followed. City staff will also monitor construction to ensure that MBE/WBEs are participating in the project as indicated in the construction contract.
In accordance with the City's Women and Minority Business Enterprise Program approved by City Council on March 8, 1983, all Borrowers are required to consider the City's Women and Minority Business Enterprise Program Library of Directories and Minority and Women Vendors' listing the procurement of equipment, material, supplies and professional services.
All work shall be completed by State-licensed contractors which shall have Santa Monica business licenses. All contracts must comply with competitive bidding requirements. Contracts over
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$10,000 must be in accordance with City's Women and Minority Business Enterprise Program.
All efforts shall be made by the private owner or the Borrower to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin, ancestry, physical disability, AIDS, or sexual orientation, in seeking contractors and subcontractors.
Competitive Selection Criteria
In selecting among competing project applications, unless otherwise determined for a particular project, priority shall be given to projects that:
(1) Significantly increase affordable housing opportunities for households who have difficulty finding housing including the homeless, large families, the disabled, seniors, and persons traditionally served by Single Room Occupancy housing. (2) Are cost effective or achieve the lowest possible subsidy per unit for City resources. (3) Benefit a high percentage of very low- and low-income households by ensuring deeper affordability.
(4) Are located in areas currently underserved by affordable housing developments. (5) Address an area of need identified in the Housing Element of the City of Santa Monica;
(6) Addresses a particular need identified in the Council-approved Housing Trust Funds Plan;
(7) Applicant’s past and projected effectiveness implementing the City-established local preferences (i.e., households which live or work in Santa Monica).
V. LOAN COMMITMENT AND CLOSING PROCEDURES
Loan Commitment
A commitment letter shall be prepared by the Housing Division, reviewed and approved by signature by the Manager of the Division and the Director of Housing and Economic Development, and signed by the City Manager. The letter shall state the maximum amount of Program funds reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Borrower prior to loan closing. All loans which exceed the maximum loan and grant amounts in Section III shall require City Council approval. Notice of the issuance of the commitment shall be posted publicly, and a copy of such notice shall be published in a newspaper of general circulation, no later than 21 days after the commitment is issued.
Staff will prepare and make public a written statement explaining the reasons for approving or denying a loan request. The written statement should address the merits of the loan application evaluated under the criteria, including:
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- Whether the loan request significantly increases affordable housing opportunities for households who have difficulty finding housing including the homeless, large families, the disabled, seniors, and persons traditionally served by Single-Room Occupancy housing; - Cost-effective or achieve the lowest possible subsidy per unit for City resources; - Benefit a high percentage of very low- and low-income households by ensuring deeper affordability;
- Located in areas currently underserved by affordable housing developments - Addresses an area of need identified in the Housing Element of the City of Santa Monica; - Addresses a particular need identified in the Council-approved Housing Trust Funds Plan; - Loan Applicant’s past and projected effectiveness implementing the City-established local preferences (i.e., households which live or work in Santa Monica).
The Borrower shall conduct a public meeting for the proposed project within 30 days of the delivery of the loan commitment letter. The Borrower must provide a written notice which provides the date, time and location of the public meeting to the Housing Division at least 15 days prior the public meeting date. The written notice shall be made public on the Housing Division’s website. In addition, staff will provide the written notice to the neighborhood association in which the proposed project is located and the notice shall be published in a newspaper of general circulation. This publication may be combined with the notice of issuance of the commitment.
Upon issuance of a commitment letter, the Housing Division shall prepare draft loan documents, including a draft Loan Agreement, Promissory Note, Deed of Trust (or other appropriate security as determined by the Housing Manager), and Regulatory Agreement or recorded Covenants, and submit them to the City Attorney’s office for review and approval as to form. The submission shall include copies of the preliminary title report, instructions to escrow concerning the items that may appear on the title upon closing, and may include the purchase agreement, long term lease agreement, or air-rights agreement, as applicable. Requirements for a Regulatory Agreement or recorded Covenants may be waived in the case of a project which is funded under the HUD Section 202 or Section 811 Program.
Loan Closing
Funds may be disbursed following execution of the loan documents by the Borrower and the City Manager, and compliance with all commitment conditions. Staff shall submit a request for release of funds required for loan closing to the Finance Director. The Finance Director may then authorize release of loan funds into an escrow account established for the loan closing with instructions for disbursement. The City will wire funds to escrow twenty-four hours prior to the scheduled close of escrow.
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VI. PROJECT MONITORING AND REPORTING
The Housing Division shall monitor the project during rehabilitation or construction as needed for compliance with any loan documents and applicable City, State and/or Federal regulations. The Housing Division shall request notification of the final inspection and final construction release from the primary lender, and shall review management practices and reporting procedures with the Borrower and project management agent at that time for full compliance with Program requirements. A copy of the Notice of Completion for the project shall be submitted to the Housing Division at the time the Notice is recorded.
Borrowers shall be required to certify annually that they have complied with affirmative marketing and tenant selection procedures, and shall submit an annual report to the Housing Division in the form specified by the Division. The Housing Division shall monitor compliance with any Regulatory Agreement or recorded Covenants, the loan documents, and applicable City, State and/or Federal regulations on an annual basis.
For projects funded under the federal Section 202 Supportive Housing Program and Section 811 Supportive Housing Program, during the term of the HUD Capital Advance documents, compliance with the HUD documents will constitute compliance with the provisions of these Guidelines.
Fair Housing and Equal Opportunity
Borrower shall post notices stating that a housing project is subject to Fair Housing and Equal Employment Opportunity requirements of 24 CFR 92.350 and 351 at each project site. The name and telephone number of the Fair Housing Officer of the City of Santa Monica will be included on the notices.
Fair Housing complaints are referred to the City Attorney's office for investigation. If, after investigation, it is determined that discrimination in the rental or sale of housing has occurred, the City Attorney may attempt to mediate a settlement between the owner/seller and the complaining party. Mediation is usually successful. However, if it is not, the party with the complaint may proceed to file against the owner/seller. If a pattern of discrimination has occurred, the City may file suit for unfair business practices or other applicable violations.
Establishment and Use of Reserve Funds
Upon completion of project construction, the Borrower will be required to capitalize a Reserve Fund in an amount determined by the City and make annual contributions to the Fund. The Reserve Fund can be utilized for expenditures related to necessary structural and equipment replacements and improvements of a capital nature, and is not intended to be used for ordinary maintenance items. Any expenditure by the Borrower from the Reserve Fund in excess of $5,000 must be approved in advance by the City in writing. Expenditures of $1,000 to $5,000 must be
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documented by paid invoices submitted to the City within 30 days of disbursement from the Reserve Fund.
Annual Reporting by the Housing Division
The City Manager shall prepare an initial proposed plan, called Housing Trust Funds Plan (“Plan”), for affordable housing development in the City for the remaining period covered by the current Housing Element (i.e., through 2021). The Plan shall be made available online and the Housing Division shall conduct a 45-day public comment period. A public meeting hosted by the Housing Commission shall be held by the Housing Division between the 30th and 45th day of the public comment period. Once the public comment period is completed, the Plan with any public comments shall be submitted to the Housing Commission for review and recommendation to the City Council for review and its approval. A Housing Trust Funds Plan shall be prepared and adopted for each Housing Element cycle.
Thereafter, on an annual basis, the Housing Division shall prepare a report to the Housing Commission for its review and recommendation for City Council approval. The annual report shall include details on the following items:
(1) The source and amounts of funding for each Housing Trust Fund received during the prior year;
(2) The amount and uses of funds, including the amount and source of funding commitments issued, from each Housing Trust Fund during the prior year; (3) The quantity and type of affordable housing made available for occupancy during the prior year;
(4) The quantity and type of housing which exceeded or fell below the annual production mandate of Proposition R during the prior year;
(5) Cumulative figures of source/amount of Housing Trust Funds, quantity/type of affordable housing made available, and exceeded/missed Proposition R requirement, covering the Housing Element period, as well as comparison with the Quantified Objectives set forth in the Housing Element; and
(6) A comparison of the actual cumulative affordable housing production covering the period of the adopted Housing Trust Funds Plan with the goals set forth in that plan.
Once approved by City Council, both reports shall be posted on the Housing Division’s website.
Public Information on the Housing Division’s Website
Within one week of becoming public, the following items shall be posted to the “Housing Trust Funds” location on the Housing Division’s website:
(1) the current Housing Trust Fund Guidelines;
(2) all documents generated and made public by the City Manager, the Housing Division, the
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Housing Commission, and the City Council pursuant to the affordable housing planning and reporting process;
(3) written explanation of the City’s decisions to approve or deny loan applications; (4) all loan commitment letters issued;
(5) all notices of the required public meeting following a loan commitment; and (6) all annual reports provided by the Housing Trust Fund recipients. Staff shall ensure that the annual reports posted publicly shall redact any confidential or personal information.
The City also shall provide—at the same location on its website—a mechanism whereby interested members of the public can sign-up to receive an automatic email with a link to the document every time a new document is posted to this section of the City’s website.
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VII. FUNDING SOURCES
HOME Trust Fund
Source of Funds
Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME Program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 92, as amended from time to time.
Eligible Borrowers/Grantees
Eligible borrowers are non-profit Housing Development Corporations (HDCs) with proven capacity to develop, own and operate affordable housing, and which have a valid 501(c)(3) or (4) designation from the IRS, and private owners of multi-family and SRO rental buildings with proven capacity to develop, own and operate affordable housing. Limited partnerships whose general partner is otherwise eligible are also eligible to borrow Program funds.
Eligible Projects
Projects eligible for HOME funding shall:
(1) be rental projects located in the City of Santa Monica; (2) contribute to the achievement of the City's fair housing goals; (3) involve 4 or more apartments or Single-Room-Occupancy (SRO) units which will be rented to eligible lower income households at rents that do not exceed rents as defined by 24 CFR 92.252, dated September 16, 1996, as amended from time to time. Projects serving persons with special needs, or where the City Manager finds that the project will provide a substantial public benefit, may have fewer than four apartment or SRO units. Transitional or permanent housing may be provided (but not temporary shelters). (4) have at least 20% of the HOME assisted units rented to very low income families (50% of median income) under the terms and conditions set forth in 24 CFR 92.252 (2)(b); (5) demonstrate financial feasibility -- including the ability to maintain rents for the subsidized units at affordable levels for the periods specified in 24 CFR 92.252; (6) be free of significant adverse environmental impacts, except those that can be mitigated through the project itself;
(7) minimize tenant displacement;
(8) comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, meet housing quality standards in Section 882.109 of Title 24. Newly constructed housing must meet the current edition Model Energy Code of the Council of American Building Officials; (9) make efficient use of public funds and avoid "layering" of subsidies beyond those necessary to achieve a financially feasible project;
(10) have at least 51% of the project space be residential, if in a mixed use project. (11) Acquisition or Acquisition and Rehabilitation projects shall have at least 51% of the units occupied by households with incomes that do not exceed 80% of median income,
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adjusted for household size, at the time of acquisition (except as approved by the City Manager).
Eligible Uses and Activities
HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental housing which is affordable to very low and low-income households as defined by 24 CFR
92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified community housing development organizations (CHDO’s).
New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including:
1. site acquisition;
2. cost of demolishing existing structures only if construction is commenced within 12 months of demolition;
3. site preparation costs (grading, filling, etc.);
4. financing costs as described in 24 CFR 92.206;
5. architectural, engineering, and other related soft costs;
6. the cost of extending or upgrading utilities to the site to support the proposed project;
7. construction costs;
8. relocation costs; and,
9. affirmative marketing and audit costs related to HOME program requirements.
10. predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager.
Rehabilitation costs eligible for HOME funding include:
1. project acquisition with or without rehabilitation;
2. costs of temporary or permanent relocation for existing tenants;
3. financing costs, as described in 24 CFR 92.206;
4. architectural, engineering, or other design costs;
5. utility upgrade or extension costs;
6. costs associated with demolition (where necessary) only if rehabilitation is commenced within 12 months of demolition;
7. construction costs;
8. project audit costs; and,
9. affirmative marketing costs.
Ineligible Uses and Activities
The following costs are not eligible for HOME funding:
1. project reserve accounts for replacement or operating reserves, and operating subsidies;
2. payment of impact fees;
3. land banking;
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4. emergency repair or weatherization programs;
5. commercial properties;
6. temporary shelters; or
7. project-based rental assistance.
Affordability Requirements
A housing project qualifies as a HOME assisted affordable housing project if rents are limited as follows:
1. At least 20 % of the HOME assisted units are:
a) Occupied by very low-income families who pay toward rent not more than 30% of the family adjusted income, or
b) Occupied by very low-income families and bear rents not greater than 30% of the gross income of a family whose income equals 50% of the median income, as determined by HUD. In determining the maximum monthly rent, the landlord must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant.
2. All remaining HOME assisted units must bear rents not greater than the lesser of:
a) The fair market value for existing comparable units in the area as established by HUD, less the monthly allowance for utilities and services to be paid by the tenant; or b) A rent that does not exceed 30% of the adjusted income of a family whose income equals 65% of the median income for the area as determined by HUD. In determining the maximum monthly rent, the owner must subtract a monthly allowance for utilities and services to be paid by the tenant.
3. Is occupied only by households that qualify as lower income (80% of median income) families;
4. Will remain affordable, pursuant to deed restriction, covenants running with the land, or other mechanisms that ensure that the property will remain affordable without regard to the term of the mortgage or transfer of ownership for not less than 55 years.
Other Requirements
Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the number of HOME assisted units in the project.
Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum allowed by HUD under the HOME program (24 CFR 92.250), or that provided for under Section IV, Loan Terms, of these Guidelines, whichever is less. The City will avoid unnecessary layering of subsidies from different federal, state and local programs and seek to maximize the benefit to target households from the investment of HOME funds in a project. See Exhibits (in Section VIII of this report) for Home Program Subsidy Limits.
Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the housing quality standards of all local codes, rehabilitation standards and zoning codes. Newly constructed housing must meet the current edition of the Model Energy Code published by the
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Council of American Building Officials. Substantially rehabilitated housing must meet the costeffective energy conservation and effectiveness standards in 24 CFR 39.
Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used for construction or non-construction costs.
Lead-based Paint: Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement.
Conflict of Interest: No person who is an employee, agent, consultant, officer, or elected official or appointed official of the City who exercises or has exercised any function or responsibility with respect to activities assisted with HOME funds or who is in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter.
Religious organizations: HOME funds may not be provided to primarily religious organizations, such as churches, for any activity including secular activities. In addition, HOME funds may not be used to rehabilitate or construct housing owned by primarily religious organizations or to assist primarily religious organizations in acquiring housing. However, HOME funds may be used by a secular entity to acquire housing from a primarily religious organization, and a primarily religious organization may transfer title to property to a wholly secular entity and the entity may participate in the HOME program in accordance with the requirements of this part. The entity may be an existing or newly established entity (which may be an entity established, but not controlled, by the religious organization). The completed housing project must be used exclusively by the owner entity for secular purposes, available to all persons regardless of religion. In particular, there must be no religious or membership criteria for tenants of the property.
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CDBG Housing Trust Fund
Source of Funds
Funding for this program is provided through the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program (including program income and residual receipts), and therefore is subject to the federal rules and regulation found in 24 CFR Part 570, as amended from time to time.
Eligible Borrowers/Grantees
Eligible borrowers are community-based nonprofit housing development corporations (CBDO’s) duly organized or with capacity to promote and undertake community development activities on a not-for-profit basis, with proven capacity to develop, own and operate affordable housing, within a neighborhood identified in the Community Development plan. Such organizations are defined in CDBG regulations (24 CFR 570.204(a)(2)(c)(1)). Nonprofit Housing Development Corporations (HDC’s) and social service agencies with proven capacity to develop, own, and operate affordable housing, and limited partnerships whose general partner(s) is otherwise eligible under the above provisions are also eligible to borrow Program funds if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51% of the developer fee.
Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service.
Eligible Projects
Eligible projects will: (1) have four or more apartment units, Single Room Occupancy (SRO) units, or fewer than four units in the case of congregate housing, mobile home units or where the City Manager finds that the project will provide a substantial public benefit; (2) if acquisition or rehabilitation, have at least 51% of the units occupied by low and moderate income tenants at the time of acquisition (except as approved by the City Manager); (3) if new construction, have 20% of the units occupied by low income tenants; (4) be free from significant adverse environmental impacts except those that can be mitigated; and, (5) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program. Transitional or permanent housing may be provided. Rents of assisted units shall be affordable to households whose incomes do not exceed 80% of the area median income.
Eligible Uses and Activities
Funds can be used to make loans to eligible borrowers to provide affordable housing, principally for low and moderate income households, including but not limited to:
(1) acquisition and/or rehabilitation of eligible rental properties; (2) new construction of rental or limited equity cooperative housing by a CBDO is eligible, provided the construction activity is carried out as part of a neighborhood revitalization, community economic development or energy conservation project;
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(3) predevelopment loans up to a period of 24 months for site acquisition or construction.
Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager.
(4) acquisition of short-term occupancy rental housing.
Funds may also be used for related predevelopment activities, including professional services which cannot be obtained on a contingency basis.
Ineligible Uses and Activities
Funds may not be used for the following activities:
(1) the construction of new rental housing or for any program to subsidize or assist such housing except when carried out by a CBDO.
(2) to provide income payments for rent or utilities, except in emergency situations for a period not longer than three months.
(3) to assist rental housing properties if less than 51% of the units will be occupied by low and moderate income households. However, such housing may be assisted where (a) The assistance is for the purpose of reducing the development cost of new construction;
(b) The project is not designed for/occupied by elderly households; (c) At least 20% of the units will be occupied by low- and moderate-income households (households with incomes which do not exceed 80% of median income); and
(d) The proportion of the total cost of developing the project (to be borne by the CDBG funds) is less than or equal to the proportion of the units in the project which will be occupied by low to moderate income households.
Compliance with Federal and Local Regulations
All projects must comply with all applicable federal requirements contained in 24 CFR Part 570 Subpart K, including but not limited to standards of financial management, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity.
Borrowers should note:
Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements.
Labor Standards: A property with eight or more residential units must comply with the Federal Labor Standards, including the Davis-Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968 and be in accord with the City's Women and Minority Business Enterprise Program. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex,
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color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids.
Lead Based Paint: All projects must comply with the federal Lead-Based Paint Hazard Abatement regulations contained in Subpart K, 24 CFR 570.
Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8.
Religious Organizations: All projects must be used exclusively for secular purposes, and must be available to all persons regardless of religion. The housing may not be used for worship or religious instruction.
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Citywide Housing Trust Fund
Source of Funds
Funding for this program is provided using revenues generated through (i) Development Agreements with for-profit development firms doing business in the City of Santa Monica, (ii) inlieu fees from the Affordable Housing Production Program established by Ordinance 1918, (iii) the Affordable Housing Commercial Linkage Fee Program, and (iv) proceeds from the sale of City-owned property.
Eligible Borrowers/Grantees
Eligible borrowers are nonprofit Housing Development Corporations (HDCs) with proven capacity to develop, own, and operate affordable housing and whose Articles of Incorporation and Bylaws irrevocably dedicate residential property owned by the corporation to the charitable purpose of providing affordable housing to low and moderate income households. Limited partnerships with such a nonprofit housing development corporation as the general partner are also eligible borrowers if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51% of the developer fee. Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service.
Eligible Projects
Funds can be used to make deferred loans to eligible borrowers to provide affordable housing, for low- and very low-income households through acquisition and/or rehabilitation or new construction.
Eligible rehabilitation projects will:
(1) be in need of rehabilitation as defined herein;
(2) be located in the City of Santa Monica;
(3) be free from significant adverse environmental impacts except those that can be mitigated through rehabilitation; and
(4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program.
Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above.
Eligible acquisition and rehabilitation projects shall have at least 51% of the units occupied by households whose incomes do not exceed 80% of median income, adjusted for household size, at the time of acquisition (except as approved by the City Manager). Any units vacated subsequent to the acquisition date shall be affordable to households whose incomes do not exceed 60% of median income, and (except for households in occupancy at the time of acquisition) shall be occupied by households whose incomes do not exceed 60% of median income.
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For new construction projects, any unit assisted under this program shall be affordable to and occupied by households whose incomes do not exceed 60% of median income as adjusted for household size.
Eligible Uses and Activities
Funds can be used to make loans to eligible borrowers to provide affordable housing, for low- and very low-income households, including but not limited to the following:
(1) acquisition and rehabilitation of eligible rental properties; (2) acquisition and conversion of non-residential property to multifamily or Single-Room Occupancy rental housing units;
(3) new construction of rental housing units;
(4) acquisition and rehabilitation or construction of Single-Room Occupancy housing units; and
(5) predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager.
Other Requirements
Funds derived from the Affordable Housing Production Program may only be used for (i) new construction expenses, or for (ii) acquisition expenses incurred in conjunction with new construction of projects. Units assisted with Affordable Housing Production Program funds shall be primarily units for families with an average of two bedrooms.
Religious Organizations
All projects must be used exclusively for secular purposes, and must be available to all persons regardless of religion. The housing may not be used for worship or religious instruction.
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Low-Moderate Income Housing Asset Trust Fund
Source of Funds
Funding sources for this program are generated from proceeds from the sale of former Redevelopment Agency housing assets, residual receipts from former Redevelopment Agency assets (i.e., loans), as well as a portion of the loan repayments from the former Redevelopment Agency to the City. Sources are set aside for the purpose of increasing, improving and preserving the community’s supply of low and moderate income housing as stipulated by California Health and Safety Code Section 34176. (Further information on grant terms provided in Section III).
Eligible Borrowers/Grantees
Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds.
Eligible Projects
All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of median income.
Eligible acquisition and/or rehabilitation projects will:
(1) have four or more apartment or SRO units or be congregate housing or mobile home units, except where the City Manager finds that the project will provide a substantial public benefit;
(2) be in need of rehabilitation as defined herein;
(3) be located in the City of Santa Monica;
(4) be free from significant adverse environmental conditions except those that can be mitigated at a reasonable cost through rehabilitation; and (5) minimize tenant displacement.
Eligible Uses and Activities
Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate-income households. Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following:
(1) acquisition and/or rehabilitation of eligible properties for rental or transitional housing; (2) acquisition and conversion of non-residential property to multifamily or Single-Room Occupancy rental housing units;
(3) new construction of housing units for rental or transitional housing; (4) acquisition and rehabilitation of Single-Room Occupancy housing units; and
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(5) predevelopment loans or grants up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans or grants may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager.
Affordability Requirements
As required by State law, all projects shall be targeted to households earning 80% or less of the area median income, based on the State of California Housing and Community Development income and rent limits. State law also requires that at least thirty percent (30%) shall be expended for rental housing affordable to and occupied by “low-income” households does not exceed thirty percent (30%) of the area median income and no more than twenty percent (20%) affordable to and occupied by households between 60% of the area median income and 80% of the area median income.
Units are considered affordable when the rent, less a deduction for a utility allowance, for a “very low-income” household does not exceed thirty percent (30%) of 50% of the area median income; for a “low-income” household does not exceed thirty percent (30%) of 60% of the area median income.
Very low-income households are households whose incomes do not exceed 50% of the area median. Low-income households are households whose income does not exceed 80% of the area median. The median income as referenced above is the Los Angeles County median income figure, adjusted for household size, as published by the California Department of Housing and Community Development (HCD) from time to time.
Project Monitoring
The City shall monitor annually any housing affordable to households of low- or moderate-income funded with these trust funds. The City will require owners or managers of the housing developments to submit an annual report to the City. The annual report will include information on rental rates, family income, and family size of occupants.
Security
The loan or grant shall be secured by a Deed of Trust and Promissory Note which may be subordinated to deeds of trust securing other Federal, State, or City loans, or loans from conventional financing institutions used in conjunction with the Low-Moderate Income Housing Asset Trust Fund Loan on the same property. The City must obtain written commitments to protect the City’s investment in the event of a default. The City must approve all requests for subordination.
The loan or grant shall be further secured by recorded Covenants and Restrictions, running with the land, to assure that Program funds are used to provide long-term affordable rental housing opportunities for low and moderate income households. The Borrower and the City shall execute
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and record Covenants and Restrictions regulating project rents, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use, including a prohibition on conversion of the project to condominium or stock cooperative ownership for the term of the recorded Covenants and Restrictions. The recorded Covenants and Restrictions shall provide for the longest feasible time. Notwithstanding the above, the Covenants and Restrictions would in no event, be shorter than any other term of a Regulatory Agreement or Covenant recorded concurrently with the City’s Covenants and Restrictions. The Covenants and Restrictions shall be recorded with the Deed of Trust.
In some circumstances, these Covenants and Restrictions may be subordinated by the City, pursuant to Section 33334.14 of California Health and Safety Code, to liens, encumbrances, or regulatory agreements of other federal or state agencies or lenders providing financing for the project, subject to assurances by senior lenders that the City’s lien rights will be protected.
Religious Organizations
All projects must be used exclusively for secular purposes, and must be available to all persons regardless of religion. The housing may not be used for worship or religious instruction.
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TORCA Housing Trust Fund
Source of Funds
Funding for this Program is provided using revenues generated pursuant to the Tenant Ownership Rights Charter Amendment, as amended by Proposition K (including the repayment of sharedappreciation loans made pursuant to this Program.
Eligible Borrowers*
Eligible borrowers are nonprofit Housing Development Corporations (HDCs) with proven capacity to develop, own, and operate affordable housing, and whose Articles of Incorporation and Bylaws irrevocably dedicate residential property owned by the corporation to the charitable purpose of providing affordable housing to low- and moderate-income households. Limited partnerships with such a nonprofit housing development corporation as the general partner are also eligible borrowers if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51% of the developer fee. Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service.
Eligible Projects
Eligible projects include acquisition, rehabilitation, or new construction of rental or ownership housing projects which:
(1) consist of mobile home unit(s), congregate housing, Single-Room Occupancy units, or have four or more apartments, except where the City Manager finds that the project will provide a substantial public benefit;
(2) are located in the City of Santa Monica;
(3) are free from significant adverse environmental impacts except those that can be mitigated through rehabilitation;
(4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program and
(5) have at least 51% of the units occupied by households whose incomes do not exceed 80% of median income, adjusted for household size, at time of acquisition (except as approved by the City Manager).
Projects which involve conversion of an existing nonresidential use to residential use are eligible.
Transitional or permanent housing may be provided. Projects which involve the conversion of mobile home units to limited equity housing cooperative ownership are also permitted.
Eligible Uses and Activities
Program funds can be used to make loans to eligible borrowers who will provide affordable housing, principally for low and moderate income households. Eligible uses of TORCA funds include, but are not limited to, the following:
*While the City may not act as a borrower itself, the City Charter provides that the City may also utilize TORCA funds for the development of housing projects which meet TORCA requirements.
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(1) acquisition and/or rehabilitation of eligible rental properties; (2) acquisition and conversion of nonresidential property to multifamily or Single Room Occupancy rental housing units;
(3) new construction of rental housing units;
(4) acquisition and rehabilitation of Single-Room Occupancy housing units; (5) predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager; and (7) provide rental subsidies for temporary or permanent housing for low-income households.
Affordability Requirements
All units assisted under this program shall be affordable to households with incomes that do not exceed 80% of median income, and (except for households in occupancy at time of acquisition) shall be occupied by households with incomes that do not exceed 80% of median income.
Other Requirements
Labor Standards: State prevailing wage requirements apply to projects in which project costs exceed $25,000 for new construction or $15,000 for rehabilitation.
Religious Organizations
All projects must be used exclusively for secular purposes, and must be available to all persons regardless of religion. The housing may not be used for worship or religious instruction.
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Redevelopment Replacement Housing Trust Fund
Source of Funds
Funding for this program is provided using revenues generated through (i) the voter-approved Measure GSH tax revenues and (ii) any other funds dedicated by the City Council.
Eligible Borrowers/Grantees
Eligible borrowers are nonprofit Housing Development Corporations (HDCs) with proven capacity to develop, own, and operate affordable housing and whose Articles of Incorporation and Bylaws irrevocably dedicate residential property owned by the corporation to the charitable purpose of providing affordable housing to low- and moderate-income households. Limited partnerships with such a nonprofit housing development corporation as the general partner are also eligible borrowers if the nonprofit partner is the managing general partner throughout the term of the loan and will receive at least 51% of the developer fee. Nonprofit corporations must have a valid 501(c)(3) or (4) designation from the Internal Revenue Service.
Eligible Projects
Funds can be used to make deferred loans to eligible borrowers to provide affordable housing, for low- and very low-income households through acquisition and/or rehabilitation or new construction.
Eligible rehabilitation projects will:
(1) be in need of rehabilitation as defined herein;
(2) be located in the City of Santa Monica;
(3) be free from significant adverse environmental impacts except those that can be mitigated through rehabilitation; and
(4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the program.
Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above.
Eligible acquisition and rehabilitation projects shall have at least 51% of the units occupied by households whose incomes do not exceed 80% of median income, adjusted for household size, at the time of acquisition (except as approved by the City Manager). Any units vacated subsequent to the acquisition date shall be affordable to households whose incomes do not exceed 80% of median income, and (except for households in occupancy at the time of acquisition) shall be occupied by households whose incomes do not exceed 80% of median income.
Affordability Requirements
All assisted units shall be affordable to households whose incomes do not exceed 80% of median income, and (except for households in occupancy at the time of acquisition) shall be occupied by
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households whose incomes do not exceed 80% of median income. The City may require the Borrower to pay to the City residual receipts resulting from rents associated with tenant(s) existing prior to the acquisition which exceed the rent limits pursuant to the Regulatory Agreement.
For new construction projects, any unit assisted under this program shall be affordable to and occupied by households whose incomes do not exceed 80% of median income as adjusted for household size.
All eligible projects assisted under this program will not be required to meet a minimum average number of bedrooms per unit requirement.
Eligible Uses and Activities
Funds can be used to make loans to eligible borrowers to provide affordable housing, for low- and very low-income households, including but not limited to the following:
(1) acquisition and rehabilitation of eligible rental properties; (2) acquisition and conversion of non-residential property to multifamily or Single-Room Occupancy rental housing units;
(3) new construction of rental housing units;
(4) acquisition and rehabilitation or construction of Single-Room Occupancy housing units;
(5) predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12 month extension option at the discretion of the Housing Manager; and (6) Rental subsidy or other affordable housing programs with City Council approval.
Religious Organizations
All projects must be used exclusively for secular purposes, and must be available to all persons regardless of religion. The housing may not be used for worship or religious instruction.
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Packet Pg. 443 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) Addition to the Housing Trust Fund Guidelines
July 27, 2021
Local Housing Trust Fund
Source of Funds
Funding for this program is provided through the California Department of Housing and Community Development (HCD). Approximately $57 million in funding for the Local Housing Trust Fund (LHTF) Program is provided by the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1), adopted by voters on November 6, 2018.
Matching Funds
All program funds provided pursuant to this section shall be matched on a dollar for dollar basis with dedicated sources of funding.
Underwriting Requirements
1. Loan Interest Rate - Interest rate is the amount charged on the loan balance, expressed as an annual percentage.
• Not to exceed three percent (3%)
2. Debt coverage ratio (DCR) - The ratio of a property’s estimated net cash flow to loan payment.
• DCR ranges from 1.1 to 1.2
3. Reserves – California Code of Regulations Title 4, Division 17, Chapter 1, Section 10327(c)(7)(A) and (B) - commonly referenced as TCAC
• Replacement reserves – An account to fund new building materials and systems as older materials and systems wear out.
• The minimum replacement reserve deposit for projects shall be three hundred dollars ($300) per unit per year, or for new construction or senior projects, two hundred fifty dollars ($250) per unit per year. • Operating reserves - An account to cover a deficit in the property’s operation.
• An operating reserve shall be funded in an amount equal to three months of estimated operating expenses, debt service, and reserve deposits under stabilized occupancy.
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VIII. EXHIBITS
Exhibit A Definitions
Exhibit B HOME Program Subsidy Limits
Exhibit C Rental Housing Loan Application (with check list and including Green Affordable Housing Checklist)
Exhibit D Green Affordable Housing Checklist
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EXHIBIT A
Definitions
Acquisition Basis: Owner’s basis for acquisition of the property as determined by Standard Accounting Procedures.
Capitalized Reserve Account: An account established with funds from capital funding sources available at the time of completion of development for the purpose of funding future project costs.
Community Housing Development Corporation (CHDO): A private nonprofit housing development corporation which meets a series of HUD qualifications prescribed in the HOME Regulations, including the requirement that it is duly organized to provide decent housing that is affordable to low- and moderate-income persons; maintains at least one-third of its governing board’s membership for residents of low-income neighborhoods, other low-income residents, or elected representatives of low-income neighborhood organizations; and, provides a formal process for low-income program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing.
Community Based Development Organization (CBDO): A Housing Development Corporation which meets the requirements of CDBG regulations as defined in 24 CFR 570.204(a)(2)(c)(1), as amended from time to time.
Congregate Housing: A multi-family residential facility with shared kitchen facilities, deedrestricted or restricted by an agreement approved by the City for occupancy by low or moderate income households, designed for occupancy for periods of six months or longer, providing services which may include meals, housekeeping and personal care assistance as well as common areas for residents of the facility.
Depreciable Basis: Owner’s basis for depreciable costs of the project as determined by Standard Accounting Procedures, not including developer fees.
Fair Market Rents: Maximum rents as published by HUD for the Section 8 programs for the Los Angeles Area, adjusted for unit size.
Grant: Transfer of trust funds for purposes of financing the development of affordable housing, on the condition that grantee remains in full compliance with the Regulatory Agreement. Unlike a loan, the grant only becomes due and payable in the event that grantee is in default of the Regulatory Agreement.
HED: Housing and Economic Development Department, City of Santa Monica. This Department will administer the Program for the City under the direction of the City Manager/Executive Director.
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Nonprofit Housing Development Corporation (HDC): A private, nonprofit corporation with proven capacity to develop, own and operate housing, and which has a valid 501(c)(3) or (4) designation from the IRS.
Limited Equity Cooperative: A form of ownership whereby the residents form a cooperative corporation which owns and manages the property, and where the return on residents' original equity is limited to no more than 10%, as defined in the California Health and Safety Code, Section 33007.5.
Loan: Advance of trust funds for purposes of developing affordable housing with promise to repay.
Qualified Developer: A non-profit corporation with proven capacity to develop, own and operate housing which has a 501(C) (3) or (4) designation from the I.R.S.
Low and Moderate Income Households:
For Home Trust Fund, CDBG Housing Trust Fund and TORCA Housing Trust Fund: Households with incomes that do not exceed 80% of Los Angeles County median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time.
For Citywide Housing Trust Fund: Households with incomes that do not exceed 60% of the Los Angeles County median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time are considered low income. Within this group of households, those with incomes that do not exceed 50% of the median are considered very low income.
For Low-Moderate Income Housing Asset Trust Fund: Households with incomes that do not exceed 120% of the Los Angeles County median income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) from time to time.
Maximum Affordable Rent: A rent which does not exceed thirty percent (30%) of the maximum income level of the income group being served (see "Low and Moderate Income Households"), adjusted for unit size and utility costs.
For Low-Moderate Income Housing Asset Trust Fund: the Maximum Affordable Rent for households with incomes that do not exceed 120% of median income for Los Angeles County shall be 30% of 110% of such median income.
Maximum Allowable Rent: The legal rent for the unit under Santa Monica Rent Control Charter Amendment, with allowable adjustments by the Rent Control Board for annual expense increases or for capital improvements.
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New Construction: The construction of new housing including, but not limited to assembly of factory-built modular housing, or conventional on-site construction.
Operating Reserve Account: An account established for the purpose of funding a deficit in the project’s operation.
Rehabilitation: Correction of local code violations and removal of health and safety hazards; upgrading of housing units to decent, safe and sanitary conditions to comply with the Housing Quality Standards promulgated by HUD and with local standards; repair or replacement of major building systems or components in danger of failure; and alterations, additions and improvements to expand the number of affordable units, or needed to improve the basic livability, energy efficiency, accessibility for the disabled, or security of the property, and to reduce overcrowding.
Rehabilitation Basis: Owner’s basis for rehabilitation costs incurred for the property, as determined by Standard Accounting Procedures, not including developer fees.
Replacement Reserve Account: An account established for the purpose of funding major repairs or replacement of capital components of a building which reach the end of their economic life and require replacement.
Residual Receipts: The gross receipts from the property, less actual costs of operation, administration, maintenance, taxes, insurance, utilities, management, approved replacement and operating reserves, payments of principal and interest on loans senior to the City loan, and required debt service coverage. The amount of Residual Receipts shall be calculated based on the actual income and expenses set forth in the Annual Operating Budget required under the Regulatory Agreement or recorded Covenants, as approved by the City.
Single Room Occupancy Housing: Multifamily residential buildings containing housing units with a minimum floor area of one hundred fifty square feet and a maximum floor area of three hundred seventy-five square feet which may have kitchen and/or bathroom facilities, and where each housing unit is restricted to occupancy by no more than two persons and is offered on a monthly rental basis or longer.
Transitional Housing: A type of supportive housing used to facilitate the movement of homeless individuals and families to permanent housing. Typically, transitional housing is housing in which homeless people live for up to 24 months and receive supportive services that enable them to live more independently. The supportive services may be provided by the organization managing the housing or coordinated by them and provided by other public or private social service agencies.
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EXHIBIT B
HOME PROGRAM SUBSIDY LIMITS
UNIT SIZE SUBSIDY LIMIT
0 Bedroom $141,088
One Bedroom $161,738
Two Bedroom $196,672
Three Bedroom $254,431
Four Bedroom or larger $279,285
Limits are for 2017
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EXHIBIT C
Housing Trust Fund Loan Application
(includes Checklist)
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Housing and Economic Development Department
Housing Division
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Rental Housing Loan Application Page 1
Santa Monica Housing Division
Rental Housing Loan Application
Loan Request: $ _____________________ Term (in years): ___________ Purpose of Loan (Circle one):
Acquisition & Rehabilitation New Construction Rehabilitation Proposed City Funding Source (Circle one):
Predevelopment Construction Permanent Interim/Bridge
Applicant
Name of Organization ________________________________________________________ Street Address ________________________________________________________________ City, State & Zip Code ________________________________________________________ Contact/Title _________________________________________________________________ Phone/Fax ___________________________________________________________________ Legal Status of Applicant (Circle one): nonprofit corporation for-profit corporation general partnership limited partnership individual joint venture other Names and Addresses of Principals (if firm, not individual) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________
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Housing and Economic Development Department
Housing Division
F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
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Rental Housing Loan Application Page 2
Santa Monica Housing Division
____________________________________________________________________________
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Rental Housing Loan Application Page 3
Santa Monica Housing Division
Proposed Project
Name of Project ________________________________________________________________ Street Address __________________________________________________________________ City, State & Zip Code __________________________________________________________ Total Number of Units ___________________________________________________________ Description of Proposed Project
Please provide a brief description of the proposed physical project, including proposed (or current if an existing property) resident income levels, number and size of units, special amenities, on-site services, etc.
Description should be at least several paragraphs in length.
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Rental Housing Loan Application Page 4
Santa Monica Housing Division
(Please circle the appropriate categories)
Building Type
Row Detached Semi-Detached Walk-up Elevator Mixed-Use
Foundation Type
Full Basement Partial Basement Crawl Space Slab/Grade
Parking Type
Subterranean Semi-Subterranean Tuck-under On-Grade
Existing Proposed
Stories:
Units:
Buildings:
Parking Spaces:
Gross Building Sq/Footage
(excluding parking):
Parking Square Footage:
Residential Area:
Commercial Area:
Year Built: __________
Units Demolished: __________
Amenities
Pool Laundry Other: __________________________
Type of Social Services, if any __________________________________________________ Accessory Buildings(i.e. Rec Halls, Garage or Shed Structures, etc.):
No., type, size ________________________________________________________________
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Rental Housing Loan Application Page 5
Santa Monica Housing Division
Unit Mix Existing Proposed Sq/Ft
Rents
Existing Proposed
studio
one bedroom
two bedrooms
three bedrooms
four bedrooms
Total
Site information
Lot Size: Sq. Ft.
Lot Dimensions: X Ft.
Zoning:
Variances/conditional use permits/
other planning approvals required?
Is the project located in the Coastal Zone?
Equipment and Services to be included in Rent
Ranges (gas/electric) Refrigerator (gas/elec) Air Conditioner Kitchen Exhaust Fan Dishwasher Garbage Disposal
Laundry Facility Drapes Carpet
Gas Heat Hot Water
Water Electricity Other:
Do you have a Rent Control Removal Permit? Yes No
If yes, please provide the permit number and date of issue ___________________________
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Rental Housing Loan Application Page 6
Santa Monica Housing Division
Financing
Will this project seek to utilize low income housing tax credits? Yes No If yes, estimated federal credits ___________ 9% ____________ 4% ____________ estimated State credits ___________
Will the project seek to utilize tax exempt financing? Yes No If yes, proposed issuer and form of credit enhancement ______________________________ ____________________________________________________________________________________ Development Team
Name Contact/Title Phone/Facsimile Address
Developer
Architect
Consultant
Attorney
General Contractor
Construction Manager
Relocation Consultant
Other
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Rental Housing Loan Application Page 7
Santa Monica Housing Division
Certification Statement
Please provide the following information. Leave no blanks. If not applicable, type N/A. (Please attach additional sheets, if necessary).
1. Applicant's Name:
2. List any additional names or aliases, exercise of power of attorney and/or fiduciary trust capacities that you are currently using or have used in the past. If any, please explain.
3. List all partnerships, corporations, joint ventures, and/or limited partnership entities, (including applicant, if applicable), which you are currently or have been associated with, and designate whether you are/were a principal and list your title and responsibilities, the purpose of the organization and its current status. 3a. Have any of the entities listed above been either suspended, revoked, lapsed and/or terminated for any reason? If so, please explain. 3b. Has the applicant or its partners or principals filed for bankruptcy? If so, please state the case number and whether the case was dismissed, discharged or is current. 3c. Has the applicant or its partners or principals defaulted on a financial obligation? If so, please explain.
3d. Is there, or has there ever been, a settlement and/or judgement filed or a case pending against the applicant or its partners or principals? If so, please explain. 3e. Has a lien ever been filed against real property owned by the applicant or its partners or principals listed above as a result of a judgment, etc.? If so, please explain.
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Rental Housing Loan Application Page 8
Santa Monica Housing Division
4. Has the applicant or its partners or principals ever been convicted of a felony or misdemeanor other than minor traffic violations and/or placed on probation, fined or given a suspended sentence in court? If so, please explain.
5. Has the applicant or its partners or principals ever been cited and/or convicted of a misdemeanor, including but not limited to a conviction under local health, fire, environmental and/or building and safety laws, relating to the ownership and/or management of real property? If so, please explain.
6. Does the applicant have any employees or relatives who have close associations with current or former employees of the Santa Monica City Council, City Manager’s Office, or the Housing and Economic Development Department? If so, please explain.
7. Are any current or former employees of the Santa Monica Housing Division currently employed by the applicant? Any relatives of any Housing Division employees? If so, please state the individual=s name and dates of employment.
8. Are there any Housing Division current or former employees that have a financial interest in this project? If so, state name, dates of employment and interest.
9. List all residential income properties which are owned by the applicant or its partners or in which principals have a vested interest.
10. Does the applicant or its partners or principals have any income and/or real property taxes or assessments that are past due? If so, please explain.
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Santa Monica Housing Division
PRIVACY NOTIFICATION. The information requested above is to be used by the Santa Monica Housing Division to assess the applicants creditworthiness. Information provided that is contained in public records cannot be withheld from disclosure under the California Public Records Act, Government Code, Sections 6250 and 6254. All other information may be required to be disclosed outside the agency by state and/or federal law.
Furnishing all information requested on this form is mandatory. Failure to provide such information may result in disqualification or a withdrawal of Housing Division’s commitment.
CRIMINAL PENALTIES. Any person who shall knowingly make or cause to be made, either directly or indirectly, any false statement in writing, with the intent that it shall be relied upon, for the purpose of procuring the loan secured by real property shall be guilty of a criminal offense, punishable by a fine not exceeding ten thousand dollars ($10,000.00) or by imprisonment in a county jail not exceeding six months, or by both the fine and imprisonment. (California Penal code sections 532(a) and 532)).
CONTINUING OBLIGATION. I understand that I have a continuing obligation to provide the Housing Division with current and accurate information. Applicant must provide to Housing Division all requested information with an Applicant’s Certification Statement for any individual or entity that Housing Division in its sole discretion believes is necessary to evaluate the application (reasonably related to the applicant).
I, the undersigned, certify that the information provided to the City of Santa Monica, Housing Division, is true and correct as of the date set forth opposite my signature on this application package and acknowledge that any false or misleading statements of the information contained may result in civil liability and liability for monetary damages to the lender, its agents, successors, and assigns, insurers and any other person who may suffer any loss due to reliance upon any false or misleading statements which I have made on this Certification Statement.
_____________________________ ____________________________________________ Date Applicant’s Name
____________________________________________
Certified By (Print Name)
____________________________________________
Signature
____________________________________________
Title
____________________________________________
Federal Tax ID#
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Rental Housing Loan Application - Special Supplement Page 1 Santa Monica Housing Division
Special Supplement for Environmental Review
In addition to the following information, please attach 1 copy each of application exhibits (1c) Construction and Design Description and (1e) current photos of site, and Assessor Parcel Map(s) with parcels indicated. These materials will be forwarded separately to the parties responsible for environmental review.
Applicant: ____________________________________________________________________ Project Address: ______________________________________________________________ Site information
Assessor’s Parcel #(s):
Lot Size: Sq. Ft.
Lot Dimensions: X Ft.
Zoning:
Uses on adjacent sites:
Variances/conditional use permits/
other planning approvals required?
Is the project located in the Coastal Zone?
Present Property Use:
Prior Property Use:
Number of: Existing Proposed
Stories:
Units:
Buildings:
Parking Spaces:
Gross Building Square Footage
(excluding parking):
Parking Square Footage:
Year Built:
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Packet Pg. 460 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
18.docx
Rental Housing Loan Application - Special Supplement Page 2 Santa Monica Housing Division
Units Demolished:
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Packet Pg. 461 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
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Rental Housing Loan Application - Special Supplement Page 3 Santa Monica Housing Division
Special Supplement for Environmental Review
Part II. Questions
1. Please describe adjacent uses and neighborhood characteristics.
2. Is the property designated or determined eligible for historic register designation at the local, state or national level? Has it been determined ineligible?
3. Please identify the source of information used to determine the exact or approximate year of building construction.
4. Will financing for this project include the Historic Rehabilitation Tax Credit?
5. Provide the name and address of any person who has commented or may wish to comment on this project.
6. Provide the names and telephone numbers of the project applicant, project monitor, and project architect and/or contractor.
7. Please provide a copy of a building permit for each building, if applicable.
8. Are there any other environmental studies available for the site (i.e.
Archaeological, Hazardous Materials, Phase I or II)?
5.D.c
Packet Pg. 462 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-18.docx Rental Housing Loan Application Attachment A
Santa Monica Housing Division Page 1
Attachment A Tenant Profile
Please list characteristics of resident households and identify where each household falls on the income spectrum.
Unit Number Name of Tenant # of persons
in household
actual income,
if known
Income*
Low Moderate Above Moderate
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Packet Pg. 463 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-18.docx Rental Housing Loan Application Attachment A
Santa Monica Housing Division Page 2
Unit Number Name of Tenant # of persons
in household
actual income,
if known
Income*
Low Moderate Above Moderate
Totals
Percent of Units Low Income ____________________
Percent of Units Moderate Income ________________
Percent of Units Above Moderate Income __________
*See attached chart for maximum income by household size for each income category.
5.D.c
Packet Pg. 464 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) Checklist
Rental Housing Loan Application
Santa Monica Housing Division
F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
18.docx
Rental Housing Loan Application Checklist
S t M i H i Di i i
_______ # Application
_______ # Attachment A - Tenant Profile
_______ # Special Supplement for Environmental Review
_______ # Site and Project Information
Survey of site, if available
Legal Description of the Property
Construction and Design Description
For Acquisition or Rehabilitation Projects - Property Inspection Report and/or Detailed Work Write-Up on a unit by unit basis
Schematic designs, if available
Current Photos of Site
Evidence of Site Control
Preliminary Title Report
Appraisal, if available
Current Rent Roll for existing tenants of acquisition and rehabilitation projects, and estoppel certificates when available
Verification of Zoning, if available
Phase I Environmental Report and any other Environmental Reports (e.g. lead and asbestos assessments)
Termite Report
Construction Cost Estimate
Proposed Project Timetable
5.D.c
Packet Pg. 465 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) Checklist
Rental Housing Loan Application
Santa Monica Housing Division
F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
18.docx
Rental Housing Loan Application Checklist
S t M i H i Di i i
Analysis of replacement reserve requirements, showing remaining economic life and projected replacement cost for building systems
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Packet Pg. 466 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) Checklist, cont.
F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
18.docx
Rental Housing Loan Application Checklist
S t M i H i Di i i
# Financial Feasibility Project development and operating pro formas in format shown. A diskette with these forms prepared using Excel software is available from the City for your use. Notes and assumptions explaining the basis of all projected costs development and operating costs must be provided. Required exhibits include:
_____ Project Summary
_____ Exhibit 1, Development Costs
_____ Exhibit 2, Rent Schedule
_____ Exhibit 3, Operating Expenses
_____ Exhibit 4, 30 Year Cash Flow Analysis
_____ Exhibit 5, Financing
_____ Exhibit 6, Tax Credit Analysis (where applicable) _____ Exhibit 7, Bond Fees Worksheet (where applicable) _____ Exhibit 8, Sources and Uses Through Construction (when available) # Organizational Documents
Project Team Resumes
Resumes of Principals of sponsor
For nonprofit developers,
List of Board of Directors and Organizational Chart
501(c)(3) exemption determination letter from the IRS
By-Laws, Articles of Incorporation, Partnership Agreements Current Financial Statements (Audited statements should be no more than 1 year old. Unaudited statements should be no more than 6 months old.) Ownership Plan, if applicant will not be owner.
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Packet Pg. 467 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) Checklist, cont.
F:\P:\Trust Fund Guidelines\HTF Guidelines - current - adopted 07.2017\Housing Trust Fund Guidelines - revised per Council action on 7-25-17 corrected 10-5-
18.docx
Rental Housing Loan Application Checklist
S t M i H i Di i i
# Financing
Evidence of other Financing Approvals, Summary of Terms and Status, Contact Persons and phone numbers.
Ground Lease, if applicable
Loan Documents for Existing or Proposed Subordinate Financing, if available Tax credit reservation, if available
# Property Management
Resume of Firm
Management Plan, if available
# Tenant Information
Tenant Profile, existing if available and proposed, showing number of persons in each household and income level.
Relocation Plan, if applicable
# Tax Credit Projects Only
Evidence of Tax Credit Allocation, if available
Commitment of Tax Credit Investor, if available
Partnership Agreement, if available
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Packet Pg. 468 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution)
EXHIBIT D
Green Affordable Housing Checklist
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Packet Pg. 469 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) 6 GREEN AFFORDABLE HOUSING CHECKLIST
Purpose and Use of the Green Affordable Housing Checklist The City of Santa Monica Housing Division strongly encourages the use of environmentally sensitive ("green") building materials and systems in affordable housing developments.
This checklist is intended to encourage developers to consider green building methods and practices in the earliest stages of project planning. On the checklist are a number of recommended green practices, including practices related to energy efficiency; landscaping; framing and carpentry; indoor air quality; and other building systems and materials. Keeping in mind the intended scope of each project, budgetary constraints, availability of materials, and other factors, our goal is that as many of these practices as possible be incorporated into each project.
It should be noted that many green building systems and materials are evolving and becoming increasingly available. Therefore, this checklist is a living document, to be updated as technology and construction practices change.
Costs
Some of these practices involve no additional costs. Others may involve marginally or significantly higher initial costs. Please do not dismiss some items just because they may cost more, as the City may be willing to fund the increased cost in the interest of promoting a healthy environment.
Contractor Bid Packages
If you do not have, or cannot obtain, current costs for certain items on the checklist, please include these as alternatives as part of the contractor bid package in order to determine the cost.
Completing the Checklist
Please complete this checklist to show which green building practices will be included in the project. If you do not intend to include certain practices, or if the practice is not applicable to the project, please provide an explanation on the checklist. Also, please indicate which items will be included as alternatives in the contractor bid package. To facilitate completion of the checklist, the City’s Project Analyst is available to assist you.
5.D.c
Packet Pg. 470 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
7 Energy Efficiency
Energy
Efficient
Lighting
SM GBD&CG-ES2
Energy efficient exterior
lighting, such as high-pressure
sodium. Should be
appropriately sized for the
location.
Interior fluorescent bulbs and
(where practical and
appropriate) fixtures produce
light quantity and quality that
is comparable to
incandescents, while
expending less energy.
Energy efficient lighting reduces
energy consumption and lowers
utility bills. One compact
florescent bulb will pay itself
back over ten times over the
course of its life through reduced
energy use.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Resource Efficient Appliances
SM GBD&CG-WS1
Refrigerators, water heaters,
stoves, dishwashers, and
washing machines that are
designed to use less energy and
water. Most efficient
appliances qualify for Energy
Star designation.
Appliances, particularly
refrigerators and water heaters,
are some of the major sources of
residential energy use. Reducing
energy and water use lowers
utility bills while benefiting the
environment.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 471 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
8 Combined Hydronic Heating
SM GBD&CG-HS8
This system uses hot water
from the water heater for space
heating. Applicable for new
construction and major rehab
only.
Using the water heater for two
purposes uses energy more
efficiently.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Landscaping
Low-Water Landscape
Designs
SM GBD&CG-LA3
See Zoning Ordinance
Section 9.04.010.04.110
Water Conservation
Landscaping
Low-water landscape designs,
such as xeriscape, reduce water
use by emphasizing native
and/or drought tolerant plants,
elimination of turf areas, and
minimizing maintenance.
Low-water designs reduce water
and maintenance bills and
impacts on local water supply
infrastructure.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 472 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
9 Water-Efficient Irrigation
SM GBD&CG-LAb
Water efficient systems, such
as drip irrigation, place the
correct amount of water
directly at the base of each
plant thus reducing water use
and waste from overwatering.
Water efficient systems help plant
growth and overall health by
eliminating over watering or
excessive drying. They also
lower water bills and reduce
impacts on water supply
infrastructure.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Engineered Lumber and Wood Alternatives
Oriented Strand Board (OSB)
SM GBD&CG-MA3
OSB is an alternative to
plywood for sheathing,
flooring, and roofing.
Plywood requires the use of
large-size, typically old growth
trees. OSB is made from small
pieces of wood, thus eliminating
or reducing impacts to forests.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Wood I-Beam
SM GBD&CG-MA3
Wood I-Beams are an
alternative to 2x6s or 2x8s
used for floor and roof joists.
Wood I-Beams are engineered to
use less wood to perform the
same function and are often
straighter, thus minimizing wood
waste.
If included, please describe how the item will be used in the project.
5.D.c
Packet Pg. 473 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
10 If not included, please describe why.
Laminated Wood Fiber Products
SM GBD&CG-MA3
Gluelam, parlam, microlam,
etc. are alternatives to large
dimension lumber for trusses,
beams, and headers.
Laminate products provide the
same strength while eliminating
the need to use large-dimension
lumber from old-growth sources.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Certified Wood
SM GBD&CG-MA6
Certified wood is used like
conventional lumber for
framing, etc. Based on 2001
availability, may be
appropriate for new
construction and major rehab
projects only.
Wood certified by the Forest
Stewardship Council has been
monitored from the forest to the
local supplier to ensure that the
wood is harvested, milled, and
delivered under environmentally,
and socially responsible
conditions.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 474 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
11 Plastic Lumber
SM GBD&CG-Mab
SM GBD&CG-LA7
Plastic lumber is made from
recycled plastic products.
It can be used as an alternative
to wood in non-structural
applications such as decking
and fencing, depending on
field conditions.
Plastic lumber is highly durable
and is not susceptible to rot or
termite damage. It is also an
excellent use of recycled plastics.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Fiber-Cement Siding
SM GBD&CG-Mab
SM GBD&CG-MA4
Fiber cement siding can be
used as an alternative to
redwood or other types of
siding.
Fiber cement siding is not
susceptible to rot or termites and
is fire resistant.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 475 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
12 Indoor Air Quality
No-VOC (volatile organic
compound) Paint
SM GBD&CG-MA7
No-VOC paint is used exactly
like conventional paint.
Current no-VOC paints are
suitable for indoor use only,
subject to ongoing
maintenance viability.
No-VOC paint does not emit
odors related to VOCs. Organic
chemicals are widely used as
ingredients in household products
like paint, adhesives, cleaning
supplies, etc. VOCs can cause
eye, nose, and throat irritation,
loss of coordination, and
potentially damage the liver and
central nervous system. Outside,
VOCs can bond with other
pollutants and create ground-level
ozone.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Carbon Monoxide Detector Carbon monoxide detectors
monitor the level of this gas in
individual dwelling units.
Carbon monoxide is a common
indoor air pollutant created by the
combustion of natural gas from
stoves and heaters and is harmful
to human health.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 476 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
13 Seal Exposed Particle Board
SM GBD&CG-MA7
Particleboard typically
includes formaldehyde.
Sealing with a flat, latex-based
primer or other suitable
material can prevent the off
gassing of formaldehyde.
EPA ranks formaldehyde as a
probable human carcinogen.
Exposure to formaldehyde can
cause eye, nose and throat
irritation, skin rashes, headaches,
nosebleeds, and nausea.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Formaldehyde-Free Cabinets and
Counters
SM GBD&CG-MA7
Particleboard or medium
density fiberboard (MDF) in
cabinets and counters can be
substituted with formaldehydefree MDF alternatives or
products such as strawboard
and wheatboard made from
agricultural waste.
Cabinets and counters are
typically made of particleboard
that uses formaldehyde as the
binding agent. Minimizing or
eliminating formaldehyde-based
materials has a positive impact on
indoor air quality.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Building Materials
5.D.c
Packet Pg. 477 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
14 Ceramic Tile
SM GBD&CG-MA4
Ceramic tile can be used in
kitchen and bathroom and counter
tops. May be applicable to new
construction and major rehab
only.
Ceramic tile is long lasting and
does not off gas.
If included, please describe how the item will be used in the project.
If not included, please describe why.
Linoleum Flooring
SM GBD&CG-MA4
Linoleum flooring is made of
natural, renewable substances
such as amber, chalk, cork, and
jute. It can be used as an
alternative to sheet vinyl, vinyl
composite tiles, or carpet.
Most flooring products such as
sheet vinyl and carpet off gas
volatile organic compounds
(VOCs) and are made from nonrenewable petroleum-based
products. In contrast, linoleum
minimizes off gassing and is
made from renewable substances.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 478 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
15 Recycled Content Insulation
SM GBD&CG-MAb
Both fiberglass and blown
cellulose insulation have recycled
content. Fiberglass products are
used identically to standard
products. Blown cellulose (made
of recycled newsprint) requires a
special installer.
Recycled-content products
support Statewide solid waste
diversion goals. Cellulose
insulation provides a tighter
enclosure than fiberglass.
If included, please describe how the item will be used in the project.
If not included, please describe why.
5.D.c
Packet Pg. 479 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
16 Green Affordable Housing Bid Checklist
This checklist is to be completed upon conclusion of the bidding process. This information will be used to determine how any remaining project contingencies will be allocated.
Please list below those items that were identified in the Green Affordable Housing Checklist for inclusion in the bid package along with the bid price and the price for the comparable conventional item.
City of Santa Monica Housing Division - Green Affordable Housing Bid Checklist - Green Item Bid Cost Standard Item Bid Cost
5.D.c
Packet Pg. 480 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) City of Santa Monica Housing Division
- Green Affordable Housing Checklist -
Item and Santa Monica Green
Building Design and
Construction Guideline
(SMGBD&CG) reference Description Benefit
Included in Project
Yes No Not Sure--Will
Include in Bid
Package to
Determine Cost
N/A
17 5.D.c
Packet Pg. 481 Attachment: Housing Trust Fund Guidelines (6399 : LHTF Application Resolution) 1 David Yakobson
From: Mathew Millen <[email protected]>
Sent: Monday, August 26, 2024 4:11 PM
To: councilmtgitems; Oscar de La Torre; Phil Brock; Lana Negrete; Jesse Zwick; Caroline M.
Torosis; Gleam Davis; Christine Parra; Caroline Torosis; Douglas Sloan Subject: 8/27/ Item 5 D OBJECTION TO PERPETUATING SEGREGATION Attachments: 20thHomeless.pdf
EXTERNAL
The State Housing Department rejected the initial housing element finding there was a "pattern of segregation" [the Pico Neighborhood] and developing more low income housing in the Pico Neighborhood "perpetuated segregation". The last 4 city developed low income housing projects were constructed in the Pico Neighborhood, [19th and Pico, and 3 on 14th St. between Michigan and Pico] violating Fair Housing Laws and the State Affirmatively Furthering Fair Housing Statute, Government Code 8899.50. Now the City intends to dump ANOTHER REGIONAL SOCIAL SERVICES PROJECT IN THE PICO NEIGHBORHOOD., 1634 20TH --SEE ATTACHED
THIS GRANT APPICATION MUST CONTAIN A PROVISO IT WILL NOT BE USED TO PERPETUATE THE SEGREGATION OF THE PICO NEIGHBORHOOD. Please include a proviso : The funds will not be used to build between Pico on the South, Lincoln on the West, Centinela on the East , and Santa Monica Blvd on the North. Don't allow the followers of George Wallace in the Housing Department to keep dumping low income housing in the Pico Neighborhood.
Respectfully submitted,
Mathew Millen
Item 5-D
August 27, 2024
Item 5-D
August 27, 2024
5.D.d
Packet Pg. 482 Attachment: Written Comments (6399 : LHTF Application Resolution) Item 5-D
August 27, 2024
Item 5-D
August 27, 2024
5.D.d
Packet Pg. 483 Attachment: Written Comments (6399 : LHTF Application Resolution) Item 5-D
August 27, 2024
Item 5-D
August 27, 2024
5.D.d
Packet Pg. 484 Attachment: Written Comments (6399 : LHTF Application Resolution) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.E
1 of 4
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Airport Subject: Approval of Fourth Modification to Agreement #10071 (CCS) with Vector Airport Systems for Operation of the City’s Landing Fee Program at the Santa Monica Airport
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute a fourth modification to agreement #10071 (CCS) with Vector Airport Systems (Vector) to adjust the terms of the commission-based compensation for landing fee collection services and to extend the contract term through December 31, 2028. This would result in an amended 8.5-year agreement with a new total not to exceed amount of $2,114,546, with future year funding contingent on Council budget approval.
Summary
Staff recommends that Council approve a fourth modification to the current Agreement with Vector Airport Systems (“Vector”) to increase Vector’s compensation from 21% of gross monthly landing fee receipts to 30%, and to extend the Agreement term by 3.5 years to December 31, 2028, to allow for uninterrupted services. These changes are necessary due to the reduction in the landing fee rates that became effective on July 1, 2024.
Discussion
5.E
Packet Pg. 485
2 of 4
On April 29, 2010, Vector and the City entered into an agreement for Vector to administer the assessment and collections portion of the Airport’s Landing Fee Program. On June 1, 2013, Vector and the City executed Agreement #9384 for Vector to continue administering the Airport’s Landing Fee Program. On July 31, 2015, Vector and the City executed Agreement #10071, which is the current agreement under which Vector is administering the City’s program. Vector is the only vendor in the United States that provides a full-service solution to general aviation airports such as Santa Monica for the photo capture of aircraft operating at the airport, billing, and the collection of landing fees. Vector provides the City with all necessary equipment for the assessment and collection of landing fees, including the onsite photo capture camera array system, associated data servers, and transponders. Vector’s services also include maintenance of all equipment and staffing to support the billing and collections associated with their service.
Change of Commission Percentage Rate
Vector’s current agreement provides for a commission of either 18% or 21% of gross receipts depending on the gross landing fee revenue realized each month. The Airport runway was shortened in 2017 which reduced the maximum gross landing weight of aircraft that can safely operate at the Airport. Since that time, the City has paid Vector the higher of the two commission rates, or 21% of gross revenue receipts.
The Council recently adopted new rates and charges for all aeronautical facilities at the Airport that became effective July 1, 2024, including a reduced landing fee from $5.48 to $2.56 per thousand pounds maximum certificated gross landing weight. The newly reduced landing fee rate consequently reduces the gross landing fee revenue, making it nonviable for Vector to continue providing the City with these services at the current 21% commission rate. Vector has proposed to increase the percentage to 30% in order for them to continue providing the City with a turnkey solution of photo capturing, billing and collecting landing fees. The increase in the percentage rate does not equate to an increase in the annual payments to Vector therefore, staff
5.E
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agrees with Vector’s proposal and recommends increasing the commission rate paid to Vector to 30% of gross monthly receipts.
Gross landing fee collections are estimated for FY 2024-25 at $267,143, an amount that would generate approximately $187,000 in budgeted net landing fee revenues for the City and approximately $80,143 annually in commission to Vector for their services. It is anticipated that gross landing fee collections and commission payments to Vector will remain at these same levels through December 31, 2028.
Extension of Term
Vector’s current agreement expires on June 30, 2025. To ensure uninterrupted services, staff recommends an extension of the term of the existing contract to end on December 31, 2028.
Environmental Review
The agreement for landing fee services is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement would continue the City’s land fee services to capture, bill, and collect the City’s landing fees utilizing cameras and software. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
06/09/2015 (Attachment A) Approval of CCS #10071 with Vector Airport Systems Agreement and Sole Source
09/26/2017 (Attachment B) Second Modification to Agreement #10071 (CCS) with Vector Airport Systems
06/23/2020 (Attachment C) Third Modification to Agreement #10071 (CCS) with Vector Airport Systems
Financial Impacts and Budget Actions
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Staff seeks authority to approve available funding from the Airport Fund to increase the amount of the Agreement with Vector Airport Systems to operate the Airport’s landing fee program by an additional $298,562 for a total contract not to exceed $2,114,546.
Agreement
#
Current
Authorized
Amount
FY
2024-25
Amount
Future
Years
Amount
FY 2024-25
Budget Dept
Account #
Total
Revised
Contract
Amount
10071 $1,815,984 $18,062 $280,500 57500001.552010 $2,114,546 Prepared By: Kate Schlesinger, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. 06/09/2015 Staff Report - Vector Agreement and Sole Source Approval B. 09/26/2017 Staff Report - Vector Mod 2
C. 06/23/2020 Staff Report - Vector Mod 3
D. Oaks Initiative Form - Vector
E. Levine Act Disclosure Form - Vector
F. Original Contract #10071 - Vector
G. First Modification #10071 - Vector
H. Second Modification #10071 - Vector
I. Third Modification #10071 - Vector
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City Council Report
City Council Regular Meeting: June 9, 2015
Agenda Item: 3-E
1 of 5
To: Mayor and City Council
From: Susan Cline, Interim Director of Public Works
Subject: Contractual Service Agreement for Airport Landing Fee Services Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate a contractual service agreement with Vector Airport Systems, a Virginia-based company, to provide for the photo capture of aircraft operations; data management and reports; billing and collections. The initial term is for three years through June 30, 2018 with two one-year renewal options on the same terms and conditions through FY 2019-20 at the discretion of the City. This is a sole source contract in an amount based on 18% or 21% of gross monthly receipts dependent upon the gross revenue realized each month.
Executive Summary
On June 14, 2011, Council approved a contract with Vector-US, Inc. (now Vector Airport Systems) to operate the Airport’s Landing Fee Program to include photo capture of aircraft operations; data management and reports; and billing and collections through June 30, 2015 for an amount not-to-exceed $400,000. On April 30, 2013, Council approved a first modification to Contract No. 9384 (CCS) in the amount of $58,344, for the purchase and maintenance of two additional digital cameras to expand the existing system to capture aircraft operations performed during certain patterned flying activities, such as touch-and-go operations, for a total amount not to exceed $458,344. The current contract will expire on June 30, 2015.
Staff recommends that Council approve a sole source contract with Vector Airport Systems to operate the airports landing fee program through June 30, 2018 in an amount based on 18% or 21% of gross monthly receipts dependent upon the gross revenue realized each month with two additional one-year renewal options on the same terms and conditions through FY 2019-20.
Background
The City’s current contract with Vector-US, Inc. (now Vector Airport Systems) to operate the Airport’s landing fee program was approved by Council on June 14, 2011 (attachment A). On April 30, 2013 (attachment B), Council adopted Resolution No. 10744 (CCS) to change the landing fee program from the current $2.07 per thousand
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pounds of certificated maximum gross landing weight to $5.48 and apply the fee to itinerant and based aircraft at the Airport, effective August 1, 2013.
Additionally, during its April 30, 2013 meeting Council approved the first modification to contract No. 9384 (CCS) to increase the not-to-exceed amount of the contract to $458,344 to provide for the purchase of two additional digital cameras to expand the system to capture aircraft operations performed during certain patterned flying activities (e.g. touch-and-go operations). Although the contract amount was modified during this amendment the term of the contract and the annual cap were not; therefore the contract with Vector Airport Systems expires on June 30, 2015 and the annual cap for services performed by Vector until the expiration of this contract remains at $100,000.
Discussion
Vector Airport Systems uses three overlapping technologies to capture aircraft departing Santa Monica Airport, 24 hours a day, 7 days a week. The system includes:
solar-powered air traffic Imaging Systems (cameras); SCOUT Transponder Receiver (a second layer information to identify aircraft in the air); and NextGen flight track data.
Vector’s services include all necessary equipment including the maintenance of the onsite camera system, servers, transponders, and staffing to support the billing and collections associated with their service.
In 2011, when the Vector Airport Systems contract was initiated, the City’s landing fee revenue was approximately $360,000. This generated approximately $75,000 annually in payments to Vector for their services, well below the established annual cap of $100,000. Changes to the landing fee program in August 2013 resulted in increased revenues of approximately $1.4 million annually. This resulted in Vector reaching the $100,000 annual cap in the first three months of each contract year. Due to the complex environment of Santa Monica Airport (SMO), the significant increase in the fee structure, the requirements of specialized insurance, and costs associated with collections necessitate that the current annual cap is no longer sustainable for Vector.
According to Vector, SMO is the only airport that they service with an annual cap.
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Packet Pg. 490 Attachment: 06/09/2015 Staff Report - Vector Agreement and Sole Source Approval (6425 : Fourth Modification to Agreement with Vector for 3 of 5
On March 12, 2015, Vector submitted a proposal to the City which included a new fee rate that will fluctuate dependent upon the gross revenue realized each month. For months that the gross monthly revenue exceeds $83,333.33 (currently monthly gross revenue exceeds this amount) Vector’s fee would be 18%. For months that the gross monthly revenue is less than $83,333.33 Vector’s fee would be 21%. The annual cap would no longer apply. Vector proposes to eliminate the City’s obligation to pay for the annual maintenance costs of the touch-and-go camera system. Vector would provide the City with the following upgrades to the existing system within the first three months of the contract to enhance reliability and accuracy:
Replace the wireless Ethernet radio system with a new, more robust system to increase system reliability.
Replace the selected components of the camera systems including higher resolution cameras with better motion detection and better nighttime capability.
This would increase the accuracy of aircraft identification at SMO. Relocate cameras to eliminate certain known sighting problems, which can create duplicate billings or missed aircraft under certain conditions. With enhanced software integrate radar data to create a streaming feed of data into Vector’s servers, contained with data from Vector’s cameras, and use in integrated data to provide more accurate aircraft billing with enhanced accuracy and reliability.
Provide all maintenance of all surveillance systems including the City’s purchased touch-and-go ID camera system. Ownership of this touch-and-go camera system will remain with the City.
Staff recommends that Council approve a sole source contract with Vector Airport Systems to operate the airports landing fee program for three years through June 30, 2018 in an amount based on 18% or 21% of gross monthly receipts dependent upon the gross revenue realized each month with two additional one-year renewal options at the City’s sole discretion on the same terms and conditions through FY 2019-20. The City at its sole discretion could terminate the contract with 30 days written notice to Vector.
Vendor Selection
On March 24, 2011, the City issued a Request for Proposals (RFP) for operating the
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Packet Pg. 491 Attachment: 06/09/2015 Staff Report - Vector Agreement and Sole Source Approval (6425 : Fourth Modification to Agreement with Vector for 4 of 5
Airport’s landing fee program and advertised it nationwide. Four potential service providers responded. After reviewing the proposals, staff from the Airport, Finance and City Attorney’s Office identified Vector Airport Systems as the best bidder. Vector Airport Systems and one other proposer met all the City’s criteria for aircraft tracking, verification, billing, customer service, collection, and reporting. One other submittal met the criteria of the RFP, but the price was significantly higher than Vector Airport Systems. The other two submittals did not meet all the requirements of the RFP. To date, Vector Airport Systems is the only company that staff could find to provide a total solution of all the integrated parts associated with SMO’s landing fee program. Staff recommends Vector Airport Systems to furnish and to provide for the photo capture of aircraft operations; data management and reports; and billing and collections associated with the Airport’s landing fee system on a sole source basis as specified in Santa Monica Municipal Code 2.24.080 Subsection (d).
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Packet Pg. 492 Attachment: 06/09/2015 Staff Report - Vector Agreement and Sole Source Approval (6425 : Fourth Modification to Agreement with Vector for 5 of 5
Financial Impacts and Budget Actions
The contract to be awarded to Vector Airport Systems is for an amount based on 18% or 21% of gross revenue receipts dependent upon the gross revenue realized each month in landing fees. Landing fee revenues, which are landing fees collected less a commission for Vector Airport Systems, are captured monthly and deposited into account 33431.402170. By removing the annual cap, a revenue decrease of approximately $170,000 is projected for FY 2015-16. Revenue changes are included in the FY 2015-17 Proposed Biennial Budget. The percentage approach ensures that the associated costs will be proportional to the revenues generated by the program. It also ensures that fluctuations in the marketplace that aviation is subject to do not obligate the City to extensive fixed costs.
Prepared By: Stelios Makrides, Airport Manager
Approved Forwarded to Council
Attachments:
A. June 14, 2011 Staff Report (web link)
B. April 30, 2013 Staff Report (web link)
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Packet Pg. 493 Attachment: 06/09/2015 Staff Report - Vector Agreement and Sole Source Approval (6425 : Fourth Modification to Agreement with Vector for Approval of Second Modification to Agreement with Vector Airport Services for Relocation of Landing Fee Equipment
Information
Department: Public Works, Airport Division Sponsors:
Category: 03. Consent Calendar
Attachments
Printout
April 30, 2013 Staff Report
June 9, 2015 Staff Report
Vector Proposed Camera Locations
SMO Proposed Project Costs
2017 OAKS Initative Form Vector Airport Systems
Recommended Action
Recommended Action
Staff recommends that the City Council:
1) Authorize the City Manager to negotiate and execute a second modification to Professional Services Agreement No. 10071(CCS) with Vector Airport Systems, a Virginia-based company, to include repositioning of on-site equipment to provide for the photo capture of aircraft operations used to assess landing fees at Santa Monica Airport (SMO), and installation of equipment to capture aircraft over runs for an additional amount of $134,322 including two one-year options for $5,000 in annual maintenance costs.
This will result in a three-year amended agreement with two one-year options to renew for an estimated total amount not to exceed $1,240,484. The actual total contract amount will vary as Vector’s commission is based on actual landing fee revenues collected. Renewals are at the sole discretion of the City, with future year funding contingent on Council budget approval. 2) Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Staff Report Body
Executive Summary
On February 2, 2017, the United States of America, through the Federal Aviation Administration (FAA), and the City of Santa Monica entered into a consent decree that among other things established the operational runway length at Santa Monica Airport (SMO) to be 3,500 feet. On February 28, 2017, the City approved a Design and Build Contract with AECOM/Aeroplex to reduce the runway from 5,000 feet to 3,500 feet. Staff anticipates the construction of the runway will be completed by December 2017.
Vector Airport Systems provides the City with services used to assess and bill landing fees for aircraft operations at SMO based on data captured with on-site camera equipment. In order to ensure the seamless provision of the air traffic images used by Vector, existing equipment needs to be relocated to optimize the capture of aircraft activity on the newly shortened runway, and two new cameras need to be installed at each end of the 3,500-foot runway. The new cameras would detect and identify aircraft that overrun onto the paved runway safety areas located at the ends of the shortened runway. These two cameras would aid the airport in identifying aircraft excursions onto the new safety areas and provide staff with the ability to report those excursions to the FAA.
City of Santa Monica
California
Staff Report
2626
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Packet Pg. 494 Attachment: 09/26/2017 Staff Report - Vector Mod 2 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Background
On January 27, 2017, the City and the Federal Aviation Administration entered into a consent decree that resolved all outstanding disputes between the parties and relinquished all claims by the U.S. and the FAA. This consent decree among other things allows the City to reduce the operational length of the runway from just under 5,000 feet to 3,500 feet.
On April 30, 2013, Council adopted Resolution No.10744 (CCS) (Attachment A) to change the landing fee program from $2.07 per thousand pounds of certificated maximum gross landing weight to $5.48 and apply the fee to itinerant and based aircraft at the Airport, effective August 1, 2013.
The City’s current contract with Vector Airport Systems (formerly Vector-US, Inc.) to operate the Airport’s landing fee program was approved by Council on June 9, 2015 (Attachment B). A first modification, which extended the contract term to June 30, 2018, with two additional one-year options to renew, was approved on October 15, 2015. The City’s current contract with Vector stipulates commission-based payment for its landing fee program services.
Vector Airport Systems uses three overlapping technologies to capture aircraft departing Santa Monica Airport 24 hours a day, seven days a week. The system includes air traffic cameras, a SCOUT Transponder Receiver (a second layer of information to identify aircraft in the air) and NextGen flight track data. Vector’s services encompass all necessary equipment including the maintenance of the on-site camera system, servers and transponders, and staffing to support the billing and collections associated with the service provided.
Discussion
The City is working to expeditiously reduce the Airport’s runway length to improve safety for both surrounding residents and airport users. Staff anticipates that the construction of the new runway will be completed by December 2017.
Before beginning operation on the new 3,500-foot runway, Vector must relocate all existing Vector aircraft ID equipment currently at SMO to continue aircraft activity detection and identification for the SMO landing fee billing and other data collection efforts. In addition, Vector would install two additional cameras that would identify aircraft that overrun the runway onto the newly-established safety areas.
There are six existing cameras in five locations detecting aircraft operations at SMO as part of the landing fee system. Four of the six cameras are powered by Vector’s solar pod bases, while the other two are not. Each of these six existing cameras would be removed, cameras and other components integrated into new power bases, completed pods installed in new locations, configured, tested, and any old material/components would be disposed of. The two non-solar-powered cameras would be converted to solar power.
Two additional specialized units called Threshold ID Pods would also be installed. The Threshold ID Pods would detect aircraft rolling past the end of the runway thresholds into the newly established runway safety area at the end of the runway. The Threshold ID Pods would be solar-powered but are also supported with direct electrical power to ensure that any nighttime excursion into the paved runway safety area is captured.
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Packet Pg. 495 Attachment: 09/26/2017 Staff Report - Vector Mod 2 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Draft
The proposed Threshold ID Pods are similar to the standard Vector Aircraft ID Pods that are currently in use at SMO but include an upgraded camera, a longer-range lens, longer range infrared lights and upgraded on-board detection software that drives detected activities to the real-time alert system and video playback system via the common Vector Airport Portal currently in use at SMO. Vector successfully operates similar equipment for the Venice Municipal Airport in Venice, Florida (Attachment C - Vector Proposed Camera Locations).
Staff would work with Vector to establish a schedule for completion of the work, including key milestones for planning, reinstallation and testing in coordination with AECOM, the contractor for the runway shortening project SMO would retain ownership of any new equipment. The new Threshold ID Pods would require an annual operation, processing, monitoring & maintenance (OPMM) fee of $5,000 per year.
Attachment D (SMO Proposed Project Costs) lists the one-time project costs for equipment, installation and project management. The total one-time project costs are $119,322 ($108,474 plus a 10% contingency) in FY 2017-18. In addition, the first annual maintenance fee of $5,000 would be charged in fiscal year FY 2017-18.
The total combined expenditure in FY 2017-18 would be $124,322. The total modification, including two additional years of maintenance at $5,000 per year, is for $134,322.
Vendor/Consultant Selection
The current Vector contract is a sole source. The Sole Source was approved as part of Vector’s current contract by Council on June 9, 2015 (Attachment B).
Financial Impacts and Budget Actions
The agreement modification to be awarded to Vector is $134,322, for an estimated total amount not to exceed $1,240,484. The actual total contract amount will vary as Vector’s commission is based on actual landing fee revenues collected. Renewals are at the sole discretion of the City, with future year funding contingent on Council budget approval.
The agreement modification requires the following FY 2017-18 appropriations:
33431.555060 $5,000
C339197.589000 $119,322
Total $124,322
Meeting History
Sep 26, 2017 5:30 PM
City
Council Regular Meeting
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Packet Pg. 496 Attachment: 09/26/2017 Staff Report - Vector Mod 2 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) P
oweredbyGranicus
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Packet Pg. 497 Attachment: 09/26/2017 Staff Report - Vector Mod 2 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) City Council
Report
City Council Meeting: June 23, 2020
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Airport
Subject: Approval of Third Modification to Agreement #10071 with Vector Airport Systems for Operation of the City’s Landing Fee Program at the Santa Monica Airport
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a third modification to agreement #10071 (CCS) to extend the term to June 30, 2021 in the amount of $115,500, including a 10% contingency fee and four one-year options to renew in the amount of $115,500 per annum, with Vector Airport Systems for landing fee services for the Public Works Department. This will result in a 5-year amended agreement with a new total amount not to exceed $1,815,984, with future year funding contingent on Council budget approval.
Summary
Staff recommends that Council approve a third modification to the current Agreement with Vector Airport Systems (Vector) to extend Vector’s operation of the City’s landing fee program at the Santa Monica Airport (SMO). Vector currently provides the Airport with services related to the photo capture of aircraft operations, data, reports, and billings and collections. This is a sole source contract in an amount based on either 18% or 21% of gross monthly receipts depending on the gross revenue collected each month. The Third Modification: 1) extends the Agreement by one year with four oneyear options that are renewable at the City’s discretion to allow for uninterrupted services; 2) changes the terms of services to include consolidation of lockbox payment processes; and 3) eliminates annual equipment maintenance charges.
Discussion
Vector currently provides landing fee-related services to the Airport and is still the only vendor in the United States that provides a reliable solution to general aviation airports to photo capture, bill, and collect landing fees. Vector’s photo-capture system uses
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Packet Pg. 498 Attachment: 06/23/2020 Staff Report - Vector Mod 3 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 2 of 4
three proprietary overlapping technologies to capture aircraft departing Santa Monica Airport, 24 hours per day, 7 days per week. The system includes solar-powered air traffic imaging systems (cameras); SCOUT transponder receiver (a second layer of information to identify aircraft in the air); and NextGen flight track data. Vector’s services include all necessary equipment including the maintenance of the onsite camera system, servers, transponders, and staffing to support the billing and collections associated with their service.
The City first engaged Vector for landing fee services in July 2015. They have provided this service since that time, requiring two contract modifications. Vector’s current agreement provides for a commission of either 18% or 21% of gross revenue receipts depending on the gross revenue realized each month in landing fees. Vector collects the landing fees and deposits the revenues, less the commission, into an established Airport Fund account. The commission percentage approach ensures the associated costs are proportional to the revenues generated by the program. It also ensures that unanticipated economic fluctuations in the aviation market do not obligate the City to extensive fixed costs.
For FY 2020-21, gross landing fees collections are estimated at $515,000, an amount that would generate approximately $410,000 in budgeted net landing fee revenues for the City and approximately $105,000 annually in commission to Vector for their services. It is anticipated that gross landing fee collections and commission payments to Vector will remain at these same levels through FY2023-24.
Vector uses a lockbox system to collect, track and make payments of landing fees to SMO. Effective July 1, 2020, Vector will implement an upgraded, more efficient, and transparent consolidated lockbox system. This change will require an adjustment to the terms of the current Agreement. Vector will continue to provide annual maintenance of its equipment at SMO but will no longer charge an annual fee for these services.
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Vendor Selection
On June 9, 2015, Council approved a sole source for Vector as the sole company that can provide a total solution of all integrated parts associated with SMO’s landing fee program (Attachment B). Vector has installed and maintained proprietary software and equipment at SMO, which is currently used to provide landing fee services to the City.
Vector has proven critical to the City’s efforts to successfully capture and collect landing fees at the Santa Monica Airport. The system provided by Vector is unique in the industry as there is no other competitive offering from any company and, as such, Vector is the sole provider of automated aircraft identification and billing and collection systems. Vector has no authorized distributors, resellers, or service providers. All Vector equipment and software are sold, installed, and serviced by Vector.
Staff seeks authority to extend the term of Agreement 100071 (CCS) with Vector Airport Systems for landing fee services for a 5 year amended term, and to increase the compensation under the Agreement to a new total amount that does not exceed $1,815,984, with future year funding contingent on Council budget approval. Staff also seeks authority to amend the Agreement’s terms of service to allow for the consolidation of lockbox payment services and the elimination of annual fees for equipment maintenance.
Past Council Actions
Meeting Date Description
09/26/2017
(attachment A)
Second Modification to Agreement 10017 (CCS) with Vector Airport Systems
06/09/2015
(attachment B)
Approval of Sole Source Agreement with Vector Airport Systems Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Airport Fund to increase the amount of the Agreement with Vector Airport Systems to operate the Airport’s landing fee program.
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Contract/Agreement/Purchase Order Modification Request
Agreement #
Current Authorized
Amount
Modified Request
Amount
FY 2020-21 Budget
Dept Account #
Total Revised
Contract Amount
10017 $1,240,484 $575,500 N/A $1,815,984
Prepared By: Kate Schlesinger, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. 09/26/2017 Staff Report Vector Mod 2 10017 CCS
B. 06/09/2015 SR_Approval of Vector Sole Source Agreement C. Vector 2019-20 OAKS INITIATIVE FORM
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Packet Pg. 501 Attachment: 06/23/2020 Staff Report - Vector Mod 3 (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after theofficial votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of SantaMonica.
All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seeking a “publicbenefit.” If the“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.
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Packet Pg. 502 Attachment: Oaks Initiative Form - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-monthperiod;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
5.E.d
Packet Pg. 503 Attachment: Oaks Initiative Form - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) City of Santa Monica Levine Act Disclosure Form
CITY OF SANTA MONICA
CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________
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Packet Pg. 504 Attachment: Levine Act Disclosure Form - Vector [Revision 1] (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.
Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.
By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.
I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:
Please note this form is a public record and subject to a California Public Records Act request.
5.E.e
Packet Pg. 505 Attachment: Levine Act Disclosure Form - Vector [Revision 1] (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Contract No. ____ (CCS)
CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement ("Contract"), entered into this -~?f..f_ __ day of _;jpfA.f ___ , 2015 ("Execution Date"), by and between the CITY OF SANTA MONICA, a municipal cor;;;Jtion ("City"), and VECTOR AIRPORT SYSTEMS (also referred to herein as "Vector") is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. VECTORAIRPORT SYSTEMS is qualified to do business, and is doing business, in the State of California. VECTOR AIRPORT SYSTEMS represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Contract.
C. The City and VECTOR AIRPORT SYSTEMS desire to enter into an agreement for the VECTOR AIRPORT SYSTEMS to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
Term.
1. This Agreement begins on the Execution Date and terminates on June 30, 2018, unless sooner terminated in accordance with Section 14; with two additional one-year renewal options at the City's sole discretion on the same terms and conditions through FY 2019-20. The City at its sole discretion could terminate the contract with 30 days written notice to Vector.
2. VECTOR AIRPORT SYSTEMS Services. VECTOR AIRPORT SYSTEMS will perform all of the services ("Services") described in Exhibit A, Scope of Services. VECTOR AIRPORT SYSTEMS will complete the Services in accordance with Exhibit B, Budget.
3. City Services. The City agrees to:
3.1. Make available to VECTOR AIRPORT SYSTEMS any currently existing documents, data or information required for the performance of the Services.
3.2. Designate a representative authorized to act on behalf of City.
3.3. Promptly examine and render findings on all documents submitted for staff review by VECTOR AIRPORT SYSTEMS.
4. Compensation. The City will compensate VECTOR AIRPORT SYSTEMS for the Services performed in an amount based on 18% or 21 % of gross monthly receipts dependent upon the gross revenue realized each month as set forth in Exhibit B. 1 5.E.f
Packet Pg. 506 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
5. Invoices. VECTOR AIRPORT SYSTEMS will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
6.1. All notices, demands, requests or approvals to the City:
6.2. with a copy to:
Public Works/Santa Monica Airport
City of Santa Monica
3223 Donald Douglas Loop South
Santa Monica, California 90401
Attention: Stelios Makrides
Re: Contract No.
Santa Monica City Attorney's Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No.
6.3. All notices, demands, requests or approvals to VECTOR AIRPORT SYSTEMS:
VECTOR AIRPORT SYSTEMS
280 Sunset Park Drive
Herndon, VA 20170
Attention: Peter Coleton
Re: Contract No.
7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another. Neither the City nor its officers or employees will have any control over the conduct of VECTOR AIRPORT SYSTEMS or any of Vector's agents, employees, or subconsultants, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement. This Agreement may be modified only by written agreement signed by City and Vector, and approved as to form by the City Attorney.
9. Insurance. Prior to commencing work, VECTOR AIRPORT SYSTEMS must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by Vector or Vector's agents, representatives, employees or subconsultants for the duration of this Agreement. Vector must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
2 5.E.f
Packet Pg. 507 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
10. Defense and Indemnification.
10.1. VECTOR AIRPORT SYSTEMS agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, "City") from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney's fees, or payments for injury to any person or property (collectively, "Losses") caused or claimed to be caused by the act, errors, and/ or omissions of Vector, or Vector's employees, agents, officers, and subconsultants. Vector's responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of Vector, its employees, agents or officers, or subconsultants; provided, however, that Vector's duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding Vector's obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from Vector, if City chooses to do so.
10.2. Enforcement Costs. VECTOR AIRPORT SYSTEMS agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 10.1.
11. Prohibition Against Transfers.
11.1. VECTOR AIRPORT SYSTEMS may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City's consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
11.2. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of VECTOR AIRPORT SYSTEMS or of any general partner or joint venturer or syndicate member of Vector, if a partnership or joint venture or syndicate exists, which results in changing the control of Vector, will be construed as an assignment of this Agreement.
Control means 50% or more of the voting power of the corporation.
12. Permits and Licenses. VECTOR AIRPORT SYSTEMS, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
14. Default and Termination.
14.1. If VECTOR AIRPORT SYSTEMS fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City's written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to Vector.
3 5.E.f
Packet Pg. 508 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
14.2. The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days' written notice to Vector. Upon termination of this Agreement, City will pay Vector any compensation earned and unpaid up to the effective date of termination.
15. Compliance with Law. VECTOR AIRPORT SYSTEMS must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.
16. Discrimination. VECTOR AIRPORT SYSTEMS may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
17. Nuisance. VECTOR AIRPORT SYSTEMS may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
18. Records.
18.1. VECTOR AIRPORT SYSTEMS must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. Vector must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
18.2. VECTOR AIRPORT SYSTEMS must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles.
Vector must clearly identify all records and make them readily accessible to the City. At the City's request, Vector must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.
18.3. VECTOR AIRPORT SYSTEMS must allow the City to have free access to Vector's books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit Vector's records, and Vector agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by Vector, Vector agrees to pay the cost of the City's audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.
19. Work Producti Reports.
19.1. Any work product prepared or caused to be prepared by VECTOR AIRPORT SYSTEMS or any subconsultant for this Agreement will be the exclusive property of City. No work product given to or prepared by Vector or any subconsultant pursuant to this Agreement may be made available to any individual or organization by Vector without prior written approval by City.
19.2. At the City's request, VECTOR AIRPORT SYSTEMS must furnish reports concerning the status of the Services.
4 5.E.f
Packet Pg. 509 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
20. Standard of Care. VECTOR AIRPORT SYSTEMS agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of Vector's industry currently operating in another locality under similar conditions.
21. Subconsultants.
21.1. If VECTOR AIRPORT SYSTEMS proposes to have any subconsultant perform any part of the Services, Vector must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subconsultant, and the total price or hourly rates used in preparing an estimated cost for the subconsultant' s services. The City, in its sole discretion, may grant or deny the request.
21.2. VECTOR AIRPORT SYSTEMS will be responsible for the quality of any subconsultant's work.
Every subcontract or agreement of any kind entered into between Vector and any subconsultant (or between any subconsultant and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. ______ (CCS) entered into between the City of Santa Monica and VECTOR AIRPORT SYSTEMS on
22. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
5 5.E.f
Packet Pg. 510 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
23. Venue and Jurisdiction. The City and VECTOR AIRPORT SYSTEMS agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
25. Exhibits. The following exhibits are incorporated by reference into this Contract as though fully set forth herein.
Exhibit A
Exhibit B
Scope of Services
Budget
Exhibit C Insurance Requirements
26. In witness whereof, the parties have caused this Agreement to be executed the day and year first above 'vritten.
ATTEST:
SARAH P. GORMAN
City Clerk
DAS TO FORM:
CITY OF $ANTA MONICA, " m•oid 01 :ra'/f"
By: __1_r:::::::~~vhTI'------~-..L-1o::::=-- ICK COLE
City Manager
VECTOR AIRPORT SYSTE S Corporation
By: __ _,_~~--=~~----t----~
Name: --~~~-~-7=~~----
Title: --~~~~~~------
6 5.E.f
Packet Pg. 511 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Exhibit A
Scope of Services
Contractor, VECTOR AIRPORT SYSTEMS, will perform and provide the following services to City:
1. INSTALL: Develop a system deployment plan including equipment locations and a list of items needed from Santa Monica Airport staff.
2. NETWORK: VECTOR will use the existing Airport internet connection to communicate data off-airport.
3. CAPTURE: VECTOR will not require any additional infrastructure to install their systems. A single standard AC outlet in the network closet will be sufficient. VECTOR will need to install some antenna components on the roof of the Airport terminal building and run some Ethernet cabling within the building.
4. CAPTURE: Capture and ID all fixed-wing aircraft departures 24/7 /365 and automatically feed these ID'd activities into VECTOR's airport portal for airport staff viewing and into VECTOR's FlightRev billing system.
5. CAPTURE: Accept bi-weekly data download from Airport's existing noise management system, import this data into VECTOR's FlightRev, and cross-correlate this data with all aircraft activity data captured by VECTOR's three (3) existing aircraft tracking technologies.
6. BILLING: Accept existing Airport AR data from Airport's existing billing system (Aerowiz), import data into VECTOR's FlightRev billing system, set-up new aircraft operator accounts as required by this process, and pursue active collection efforts for these AR balances.
7. BILLING: Use aircraft operation data to calculate charges, determine which aircraft to bill/ exempt, apply aircraft model/weight, and implement Airport's specific fee structure.
7 5.E.f
Packet Pg. 512 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
8. BILLING: Identify the actual aircraft operator (not owner) for each aircraft and make sure that aircraft is included in an aircraft operator account within VECTOR's Flight Rev system. Trans fer aircraft when necessary as indicated by customer service interactions.
9. BILLING: Produce aircraft operator bills by the 10th of each month and mail or otherwise deliver them to aircraft operators.
11. CUSTOMER SERVICE: Operate live aircraft operator support line (toll-free 888 line) and email customer support line during business hours (9am EST to 5pm PST).
11. CUSTOMER SERVICE: Operate a web-based Customer Self Service System that will allow aircraft operators to view aircraft charges, request invoice and statement copies, and pay online by credit card.
12. CUSTOMER SERVICE: Track all interactions with aircraft operators (calls, mail, invoices sent, statements sent, payments) and all actions taken on aircraft operator accounts (aircraft transfers, invoice adjustments, address changes, aircraft model changes, based aircraft additions, other aircraft exemptions).
13. COLLECTIONS: Actively manage operator AR balances, identify operators who accounts are becoming delinquent, send out reminder notices, make live payment reminder calls, make live collection calls, send out collection letters, apply late fees, report potential bad debt balances and bankruptcies to Airport.
14. REPORTS: Manage billing adjustments on a monthly basis and provide a report to City of all adjustments. City may either elect to review and approve adjustments before they are made or simply allow VECTOR to approve adjustments and City may review adjustments after-the-fact.
15. PAYMENTS: Open and operate a 3rd-party bank lockbox dedicated to the Airport for the receipt of landing fee payments. City will receive activity statements from this bank lockbox each month with the VECTOR deposit detail report.
16. REMITTANCE: Setup an electronic transfer mechanism in order to quickly transfer funds to City from the dedicated lockbox according to VECTOR's post-month remittance policy. VECTOR will request basic information for automatic remittance (ACH) from City and notify City when automatic remittances occur (usually 3-5 days after month- end). Remittance information and history will be contained in monthly Deposit Detail Report.
5.E.f
Packet Pg. 513 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
17. REMITIANCE: Perform post-month-end transfers: remittance to City and collection fee payment to VECTOR after City approval of VECTOR Deposit Detail Report. Notify City via email of these transfers as they occur.
18. PAYMENTS: Receive payments in the unique City lockbox and allocate those payments to aircraft operator accounts and keep an accurate balance of charges, adjustments, and payments for each aircraft operator on a daily basis.
Credit card payments, which are made via VECTOR's online customer selfservice system, will be applied to customer accounts at least twice-monthly.
Note that pending credit card payments are viewable by aircraft operators for their account via the online self-service system.
19. REPORTS: Report AR balances Payment/ Allocation Deposit Details, Monthly Billing Details, and Aircraft Activity Capture details to City via emailed reports and via Vector's web-based airport portal. VECTOR will coordinate with City to determine how many users City will need to have access to the Vector Airport Portal and which City staff shall receive which reports. Vector will make aircraft activity data available to City for at least 5 years via the airport portal.
20. REPORTS: The VECTOR Airport Portal allows you to search for any criteria you want and then examine that data. The most common reports are:
by airport, by month, all activities. You can also filter by arrivals/ departures, by weight, by engine type (piston, turbojet). If your staff has specific additional reports you'd like "canned" so you can run them more quickly, we can program them and make them available on the portal.
21. AUDIT: VECTOR will respond to any audit requests on-demand within 30 days but probably much sooner to help City get the information they need to verify VECTOR's performance in managing the City's Santa Monica Airport Landing Fee Program.
22. REPAIR: All systems owned by Vector or the City at the Airport will be continuously monitored by our automated systems and our team will be alerted to any system failure/ outage lasting longer than 5 minutes. System repairs will be made within 72 hours. City will be notified if there are any problems with meeting this timeframe.
5.E.f
Packet Pg. 514 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
23. UPGRADES: Vector would provide the City with the following upgrades to the existing system within the. first three months of the contract to enhance reliability and accuracy:
• Replace the wireless Ethernet radio system with a new, more robust system to increase system reliability.
Replace the selected components of the camera systems including higher resolution cameras with better motion detection and better nighttime capability. This would increase the accuracy of aircraft identification at SMO. • Relocate cameras to eliminate certain known sighting problems, which can create duplicate billings or missed aircraft under certain conditions. • With enhanced software integrate radar data to create a streaming feed of data into Vector's servers, contained with data from Vector's cameras, and use in integrated data to provide more accurate aircraft billing with enhanced accuracy and reliability.
• Provide all maintenance of all surveillance systems including the City's purchased touch-and-go ID camera system. Ownership of this touch-and-go camera system will remain with the City.
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Packet Pg. 515 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) ExhibitB
Budget
Landing Fee Billing & Collection Services Compensation
Landing Fee Billing & Collection Services including the existing and proposed equipment follows the schedule below. If, for whatever reason (modification of landing fee structure/policy, other factors affecting traffic), gross annual collected revenues fall from the current pace of approximately $1.5m down to $1,000,000, the Vector fee rate will be adjusted from 18% up to 21%.
SMO Gross Landing
Fee Revenue
$1,500,000
$1,000,000
Vector Fee%
18%
21%
FEE RA TE TRIGGER1 For simplicity of administration, this fee rate will be adjusted based on gross monthly collected "landing fee" revenues. If for any given month, gross monthly revenues are above $83,333.33 ($1,000,000 / 12) as they have been for the past 19 months, the Vector fee rate will be 18%. If the gross collected revenues are $83,333.33 or lower, the Vector fee for that month will be 21 %.
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Packet Pg. 516 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) ExhibitC
Insurance Requirements
Professional Services Agreement Insurance Requirements - Template 1 With Professional Liability
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors.
Minimum Scope/Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering COL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if the Consultant has no owned autos, Code 8 (hired) and Code 9 (nonowned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers' Compensation: Workers' Compensation insurance as required by the State of California, with Statutory Limits and Employers' Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #l).
4. Professional Liability: Insurance appropriate to the Consultant's profession with a limit of not less than $1,000,000 each claim.
If the Consultant maintains higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The policies are to contain, or be endorsed to contain, the following provisions:
a, Additional Insured Status (CGL): The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the COL
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Packet Pg. 517 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance at least as broad as Insurance Services Office Form CG 20 10 11 85. b. Primary Coverage (CGL, Auto, and Professional Liability): For any claims related to this contract, the Consultant's insurance shall be primary as respects the Ciry- of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Consultant's insurance and shall not contribute with it.
c. Notice of Cancellation (all policies): Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation (all policies): Consultant hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Consultant may acquire against the City of Santa Monica by virtue of payment of any loss. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Consultant to purchase coverage with a lower deductible or retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best rating of no less than A:VII, unless othenvise acceptable to the City of Santa Monica.
Claims Made Policies
I. If the Professional Liability policy provides "claims made" coverage:
a. The Retroactive Date must be shown, and must be before the date of this Agreement or the start of work.
5.E.f
Packet Pg. 518 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) b. The insurance must be maintained and evidence of insurance must be provided for at least 5 years after completion of work.
c. If the policy is cancelled or not renewed, and not replaced with another "claims made" policy form with a Retroactive Date prior to the effective Agreement date, the Consultant must purchase "extended reporting" coverage for a minimum of 5 years after completion of work.
Verification of Coverage
Consultant shall furnish the City of Santa Monica with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required herein. All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Consultant, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Consultant resulting from said breach. Alternatively, the City of Santa Monica may purchase such coverage (but has no special obligation to do so), and without further notice to the Consultant, the City may deduct from sums due to the Consultant any premium costs advanced by the City for such insurance.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
#l: Workers' Compensation insurance coverage is not required if the Consultant does not have employees. The Consultant must, however, execute the City's Workers' Compensation Coverage Exemption Declaration Form.
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Packet Pg. 519 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANT A MONICA
LIVING WAGE ORDINANCE
Certification for Providers of Services to the
City of Santa Monica
(Fiscal Year 15116 - July 1, 2015 through June 30, 2016)
TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE CITY OF SANTA MONICA IN EXCESS OF $54,200
The City of Santa Monica Municipal Code Chapter 4.65, Livirig Wage Ordinance (LWO), establishes a Minimum Wage of $15.37 per hour 1 for certain employees of contractors providing services to the City where services exceed $54,200 or more and requires that contractors also provide the same health care and other benefits to employees' same sex spouses and domestic partners as are provided to other employees' spouses.
An employee covered by the LWO is any person who does not actually work as a manager, supervisor, or confidential employee, and who is not required to possess an occupational license.
The Living Wage Ordinance applies the services sought pursuant to this bid and bidders are required to prepare and return the Living Wage Certification Form. If the bidder is selected, the bidder must maintain payroll records that include, at minimum, the full name of each employee providing services under the contract, job classification and rate of pay. Bids that fail to include Certification Forms may be considered non-responsive and excluded from further consideration.
Please prepare the following certification if you are a contractor engaging in a contract for services with the City of Santa Monica in excess of $54,200.
Your signature on this certification grants the City permission to review any and all payroll books and records and any company documents pertaining to the benefits offered to employees to assure your compliance with the LWO during the term of the contract.
Please direct any questions and send the completed, signed Certification to:
City of Santa Monica Finance Department
Attention: Living Wage Compliance Section
1717 4th Street, Suite 250
. Santa Monica, CA 90401
You can also contact staff regarding living wage ordinance questions by e-mail at [email protected] or by phone 310-458-8281.
1 Adjusted annually each July 1 by an amount corresponding to the previous year's change (January to January) !n the Consumer Price Index for Urban Wage Earners and Clerical Wori\ers 1982·84=100 for Los Angeles-Riverside-Orange County, California
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Packet Pg. 520 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANTA MONICA
LIVING WAGE ORDINANCE CERTIFICATION
July 1, 2015 through June 30, 2016
TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE CITY OF SANTA MONICA IN EXCESS OF $54,200
MINIMUM WAGE· $15.37 per hour
Please read, complete, and sign the following:
THIS CONTRACT IS SUBJECT TO THE LIVING WAGE ORDINANCE ~ THIS CONTRACT IS NOT SUBJECT TO THE LIVING WAGE ORDINANCE 0 If this contract is not subject to the Living Wage Ordinance requirements, please note the reason below and attach supporting documentation for exemption. For example, in order to be exempt pursuant to a collective bargaining agreement, a signed collective bargaining agreement must be attached. (a) __ _
(b) __ _
(c) __ _
(d) __ _
(e) __ _
contractor is a government agency and is exempt
contractor is a City grantee and is exempt
contractor is a non-profit corporation and is exempt
contractor is .an employer whose employees are covered by a bona fide collective bargaining agreement where the waiver is explicitly. set forth in an agreement in clear and unambiguous terms
contractor is a corporation providing banking services
The undersigned, on behalf of himself or herself individually and on behalf of his or her business or organization, hereby certifies that he or she is fully aware of Santa Monica's Living Wage Ordinance (LWO), and the applicability of the LWO, and the applicability of the subject contract, as determined herein. The undersigned further agrees to be bound by all terms of the LWO, as mandated in all sections of Santa Monica Municipal Code, Chapter 4.65. If, at any time during the term of the contract, the answers to the questions posed herein change so that Con(ractor would be subject to the LWO, Contractor will promptly notify the Director of Finance in writing. Contractor further understands and agrees that the failure to comply with the LWO, this certification, or the terms of the Contract as it applies to the LWO, shall constitute a default of the Contract, which shall be grounds for termination. City shall have the right to examine all books and records of the Contractor as they relate to compliance with the LWO. Payroll records shall at a minimum include the full name of each employee performing labor or providing services under the contract, job classification, and rate of pay.
These statements are made under penalty of perjury under the laws of the State of California.
Printed Name: peter coleton
Signature: ~ Title: president
Date: 6/1/2015
Contractor: vector airport systems Bid Number (If applicable): ___ _ Service Description:
aircraft landing fee billing & collection
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Packet Pg. 521 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Oaks Initiative Notice
CITY OF SANTA MONICA
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER
BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica's voters adopted a City Charter amendment commonly known as the Oaks Initiative. It prohibits a public official from receiving specified personal benefits from a person or entity after the official votes, or otherwise takes official action, to award a "public benefit" to that person or entity. Examples of a "public benefit" include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000.
The Oaks Initiative requires the City to provide this note and information about the Initiative's requirements. An information sheet on the Oaks Initiative is attached.
You may obtain a full copy of the Initiative's text from the City Clerk.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person who is seeking a "public benefit." If the "public benefit" is sought by an entity, rather than an individual person, the information includes the name of every: (a) trustee, (b) director, (c) partner, (d) officers, or (e) ten percent interest in the entity.
Therefore, if you are seeking a "public benefit" covered by the Oaks Initiative, you must supply that information on the attached form (Attachment A).
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Packet Pg. 522 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANTA MONICA
CITY POLICY ON DOING BUSINESS WITH ARIZONA FIRMS
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING TO DO
BUSINESS WITH THE CITY OF SANTA MONICA
The City Council of the City of Santa Monica adopted Resolution No. 10479 (CCS) on May 25, 2010, which requires a review of all current and likely future agreements and contracts with Arizona-based businesses to examine the feasibility of acquiring such products and services elsewhere while the Arizona law remains in effect.
Additionally, vendors offering goods or services to the City of Santa Monica must complete and sign the attached disclosure form; this applies to all solicitations, including but not limited to, bids and proposals. Please review, sign and submit the form with your bid packet prior to the closing date of bid.
Contractors that do. not have headquarters in the State of Arizona and those that will not be working with Arizona-headquartered subcontractors to provide goods and/or services as specified in this solicitation will take priority in the bidding process.
NOTE: Headquarter location or residency may not be considered as a factor if prohibited by applicable law.
Failure to return this form or inability to certify as to its provisions will render your bid or proposal non-responsive.
State of Arizona Disclosure Form - See next page.
- 1 •
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Packet Pg. 523 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
CITY OF SANTA MONICA
•11•'
Snnin lh;1nlra• STATE OF ARIZONA DISCLOSURE FORM
TO BE COMPLETED BY ALL VENDORS PROVIDING GOODS AND SERVICES TO
THE CITY OF SANTA MONICA
Headquarter location or residency may not be considered as a factor if prohibited by applicable law.
Please check the appropriate boxes below.
Our company's headquarters are located in the State of Arizona.
D Yes [{] No
Goods or services pertaining to this solicitation will be provided by a subcontractor whose business is headquartered in the State of Arizona.
D Yes [{] No
If the response to the statement above was "yes", please list any and all subcontractors headquartered in the State of Arizona that may be providing goods or services (pertaining to this solicitation) to the City of Santa Monica.
If more than one, attach a list of additional subcontractors, including the physical address of each location.
Name of Subcontractor: n/ a --------------~-~-
City: ___________ State: _____ Zip Code: ___ _
*** PORTION BELOW TO BE COMPLETED BY ALL VENDORS ***
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and ~o~
Signed: ~ Date:6/1/2015
Printed name: peter COleton Title: president
Name of Company: Vector airport systems
Street Address of Headquarters: 280 sunset park dr
City: herndon state: va Zip Code: 20170
Telephone# (including area code): 202-412-7725 Email: [email protected] I FOR CITY USE ONL y
NOTES:
2 J
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Packet Pg. 524 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) To: Mayor and City Council
City Council Report
City Council Regular Meeting: June 9, 2015
Agenda Item: 3-E
From: Susan Cline, Interim Director of Public Works
Subject: Contractual Service Agreement for Airport Landing Fee Services Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate a contractual service agreement with Vector Airport Systems, a Virginia-based company, to provide for the photo capture of aircraft operations; data management and reports; billing and collections. The initial term is for three years through June 30, 2018 with two one-year renewal options on the same terms and conditions through FY 2019-20 at the discretion of the City. This is a sole source contract in an amount based on 18% or 21% of gross monthly receipts dependent upon the gross revenue realized each month.
Executive Summary
On June 14, 2011, Council approved a contract with Vector-US, Inc. (now Vector Airport Systems) to operate the Airport's Landing Fee Program to include photo capture of aircraft operations; data management and reports; and billing and collections through June 30, 2015 for an amount not-to-exceed $400,000. On April 30, 2013, Council approved a first modification to Contract No. 9384 (CCS) in the amount of $58,344, for the purchase and maintenance of two additional digital cameras to expand the existing system to capture aircraft operations performed during certain patterned flying activities, such as touch-and-go operations, for a total amount not to exceed $458,344. The current contract will expire on June 30, 2015.
Staff recommends that Council approve a sole source contract with Vector Airport Systems to operate the airports landing fee program through June 30, 2018 in an amount based on 18% or 21% of gross monthly receipts dependent upon the gross revenue realized each month with two additional one-year renewal options on the same terms and conditions through FY 2019-20.
Background
The City's current contract with Vector-US, Inc. (now Vector Airport Systems) to operate the Airport's landing fee program was approved by Council on June 14, 2011 (attachment A). On April 30, 2013 (attachment B), Council adopted Resolution No. 10744 (CCS) to change the landing fee program from the current $2.07 per thousand 1of5
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Packet Pg. 525 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) pounds of certificated maximum gross landing weight to $5.48 and apply the fee to itinerant and based aircraft at the Airport, effective August 1, 2013.
Additionally, during its April 30, 2013 meeting Council approved the first modification to contract No. 9384 (CCS) to increase the not-to-exceed amount of the contract to $458,344 to provide for the purchase of two additional digital cameras to expand the system to capture aircraft operations performed during certain patterned flying activities (e.g. touch-and-go operations). Although the contract amount was modified during this amendment the term of the contract and the annual cap were not; therefore the contract with Vector Airport Systems expires on June 30, 2015 and the annual cap for services performed by Vector until the expiration of this contract remains at $100,000.
Discussion
Vector Airport Systems uses three overlapping technologies to capture aircraft departing Santa Monica Airport, 24 hours a day, 7 days a week. The system includes:
solar-powered air traffic Imaging Systems (cameras); SCOUT Transponder Receiver (a second layer infonmation to identify aircraft in the air); and NextGen flight track data.
Vector's services include all necessary equipment including the maintenance of the onsite camera system, servers, transponders, and staffing to support the billing and collections associated with their service.
In 2011, when the Vector Airport Systems contract was initiated, the City's landing fee revenue was approximately $360,000. This generated approximately $75,000 annually in payments to Vector for their services, well below the established annual cap of $100,000. Changes to the landing fee program in August 2013 resulted in increased revenues of approximately $1.4 million annually. This resulted in Vector reaching the $100,000 annual cap in the first three months of each contract year. Due to the complex environment of Santa Monica Airport (SMO), the significant increase in the fee structure, the requirements of specialized insurance, and costs associated with collections necessitate that the current annual cap is no longer sustainable for Vector.
According to Vector, SMO is the only airport that they service with an annual cap. 2 of 5
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Packet Pg. 526 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) On March 12, 2015, Vector submitted a proposal to the City which included a new fee rate that will fluctuate dependent upon the gross revenue realized each month. For months that the gross monthly revenue exceeds $83,333.33 (currently monthly gross revenue exceeds this amount) Vector's fee would be 18%. For months that the gross monthly revenue is less than $83,333.33 Vector's fee would be 21 %. The annual cap would no longer apply. Vector proposes to eliminate the City's obligation to pay for the annual maintenance costs of the touch-and-go camera system. Vector would provide the City with the following upgrades to the existing system within the first three months of the contract to enhance reliability and accuracy:
rn Replace the wireless Ethernet radio system with a new, more robust system to increase system reliability.
rn Replace the selected components of the camera systems including higher resolution cameras with better motion detection and better nighttime capability.
This would increase the accuracy of aircraft identification at SMO. rn Relocate cameras fo eliminate certain known sighting problems, which can create duplicate billings or missed aircraft under certain conditions. rn With enhanced software integrate radar data to create a streaming feed of data into Vector's servers, contained with data from Vector's cameras, and use in integrated data to provide more accurate aircraft billing with enhanced accuracy and reliability.
rn Provide all maintenance of all surveillance systems including the City's purchased touch-and-go ID camera system. Ownership of this touch-and-go camera system will rema.in with the City.
Staff recommends that Council approve a sole source contract with Vector Airport Systems to operate the airports landing fee program for three years through June 30, 2018 in an amount based on 18% or 21 % of gross monthly receipts dependent upon the gross revenue realized each month with two additional one-year renewal options at the City's sole discretion on the same terms and conditions through FY 2019-20. The City at its sole discretion could terminate the contract with 30 days written notice to Vector.
Vendor Selection
On March 24, 2011, the City issued a Request for Proposals (RFP) for operating the 3 of 5
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Packet Pg. 527 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Airport's landing fee program and advertised it nationwide. Four potential service providers responded. After reviewing the proposals, staff from the Airport, Finance and City Attorney's Office identified Vector Airport Systems as the best bidder. Vector . Airport Systems and one other proposer met all the City's criteria for aircraft tracking, verification, billing, customer service, collection, and reporting. One other submittal met the criteria of the RFP, but the price was significantly higher than Vector Airport Systems. The other two submittals did not meet all the requirements of the RFP. To date, Vector Airport Systems is the only company that staff could find to provide a total solution of all the integrated parts associated with SMO's landing fee program. Staff recommends Vector Airport Systems to furnish and to provide for the photo capture of aircraft operations; data management and reports; and billing and collections associated with the Airport's landing fee system on a sole source basis as specified in Santa Monica Municipal Code 2.24.080 Subsection (d).
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Packet Pg. 528 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) Financial Impacts and Budget Actions
The contract to be awarded to Vector Airport Systems is for an amount based on 18% or 21 % of gross revenue receipts dependent upon the gross revenue realized each month in landing fees. Landing fee revenues, which are landing fees collected less a commission for Vector Airport Systems, are captured monthly and deposited into account 33431.402170. By removing the annual cap, a revenue decrease of approximately $170,000 is projected for FY 2015-16. Revenue changes are included in the FY 2015-17 Proposed Biennial Budget. The percentage approach ensures that the associated costs will be proportional to the revenues generated by the program. It also ensures that fluctuations in the marketplace that aviation is subject to do not obligate the City to extensive fixed costs.
Prepared By: Stelios Makrides, Airport Manager
Approved Forwarded to Council
I )
:: \\V \ •)k)j\.
Susan Cline, Interim Director of(J5Jll0120/t6 Elaine M Polachek, lnterim-~C~ity~CM=IO!bl=!t~llf1~5~ Attachments:
A. June 14, 2011 Staff Report (web link)
B. April 30, 2013 Staff Report (web link)
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Packet Pg. 529 Attachment: Original Contract #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 530
Attachment: First Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 531
Attachment: First Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 532 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 533 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 534 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 535 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 536 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 537 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 538 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 539 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 540 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 541 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 542 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 543 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections)
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Packet Pg. 544 Attachment: Second Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 1 THIRD MODIFICATION OF AGREEMENT NO. 10071 (CCS)
This Third Modification of Agreement Number10071 (CCS) (“Third Modification”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica (“City”), a California municipal corporation, and Vector Airport Systems (“Vector”) is made with reference to the following:
RECITALS
A. On or about July 31, 2015 , the City and Vector entered into Agreement Number 10071 (CCS) (“Original Agreement”) for the administration of the Santa Monica Airport’s (“SMO”) landing fee program, including providing for the photo capture of aircraft operations, data management and report generation services, and for billings and collections. The Original Agreement includes compensation for Vector Airport Systems in an amount based on either 18% or 21% of gross monthly receipts, which depends on the gross revenue realized during a particular month. The Original Agreement also includes two one-year renewal options to extend the Original Agreement’s term on the same terms and conditions through FY2019-20.
B. On or about October 15, 2015, the City and Vector entered into a First Modification of Agreement Number 10017 (CCS) (“First Modification”) which amended the commencement date of the Original Agreement from July 31, 2015 to July 1, 2015.
C. On or about December 7, 2017, the City and Vector entered into Second Modification of Agreement Number 10017 (CCS) (“Second Modification”) which expanded the scope of services to be performed by Vector and increased the contract price for those additional services for a total contract price not to exceed $1,240,484.
D. The City and Vector now desire to further modify the Original Agreement to extend the contract term; include additional services to be performed by Vector, and to increase the contract price to pay for those additional services. Any terms or conditions not specifically amended or provided for herein shall have the meanings given to such terms and conditions as understood by the parties through their execution of the Original Agreement, First Modification, and Second Modification. The term “Agreement” where used in this Third Modification shall hereafter refer to the Original Agreement, as amended by the First Modification, Second Modification, and by this Third Modification.
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811 6/30/2020
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Packet Pg. 545 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 2 TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Agreement as follows:
1. Section 1 of the Agreement entitled “Term” shall be deleted in its entirety and replaced with the following paragraph:
“1. Term. This Agreement begins on July 1, 2015 and terminates on June 30, 2021 (“Term”) unless terminated earlier in the manner provided for in the Agreement or extended by the City as set forth herein. The City shall have four (4) one-year options to extend the Agreement Term for an additional year (“Option Year”). The exercise of an Option Year under this Agreement shall be at the City’s sole discretion. The City shall send Vector written notice of its intent to extend the Term of the Agreement by exercising an Option Year no less than 30 days prior to the expiration of the Term.”
2. Section 2 of the Agreement entitled “Vector Airport Systems Services” (as amended by section 1 of the Second Modification) shall be deleted and replaced with the following:
“ 2. VECTOR Services. VECTOR shall perform and provide to City all of the services (“Services”) described in Exhibit A-3 “Scope of Services”. VECTOR shall complete the Services in the manner set forth in, and in accordance with Exhibit B-3 “Budget”.”
3. Section 4 of the Agreement entitled “Compensation” (as amended by section 2 of the Second Modification) shall be deleted and replaced with the following:
“4. Compensation. The City shall compensate VECTOR for the Services performed under this Agreement and provided to the City in an amount that is based on either 18% or 21% of gross monthly receipts of gross revenue realized by the City for each month in the manner set forth in Exhibit B-3. Compensation paid to VECTOR for the final year of the Agreement Term, and for each Option Year if exercised by City, shall not exceed $105,000. The total amount of compensation paid to VECTOR during the entire Term of this Agreement and for all exercised Option Years shall not exceed $1,765,484.”
4. Exhibits A, A-2, B and B-2 of the Agreement are hereby deleted and shall be replaced and superseded by Exhibits A-3 and B-3, respectively. Copies of Exhibits DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 546 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 3 A-3 and B-3 are attached to this Third Modification and are incorporated into the Agreement.
5. Except as expressly modified by this Third Modification, all other terms and conditions of the Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Third Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
VECTOR Corporation
#VENDOR
By: _______________________________
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811 George S. Cardona
6/24/2020
Interim City Attorney
Pete Coleton Vector
6/30/2020
President
PC
6/30/2020
Interim City Manager
Lane Dilg
6/30/2020
Denise Anderson-Warren
City Clerk
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Packet Pg. 547 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 4 Exhibit A-3
Scope of Additional Services
Contractor, Vector Airport Systems (VECTOR) shall perform and provide the following services to the City:
1. AIRCRAFT IDENTIFICATION EQUIPMENT: VECTOR is responsible the installation, maintenance, and management of existing onsite aircraft identification equipment.
2. THRESHOLD ID PODS: VECTOR’s installed system should be capable of immediately detecting activity beyond the threshold and relaying it to a real-time alert system with video capture and playback capabilities via the Vector Airport Portal. The system shall also provide the capability for airport staff to export video to an external storage device. The Threshold ID Pods will connect a directly to an electrical power source (120-volt AC) supplied by the contractor responsible for the City’s runway-shortening project. Should it ever become necessary to relocate the equipment installed under this Agreement, VECTOR shall develop a system deployment plan including proposed equipment locations and a price quote for relocating the equipment.
3. NETWORK: VECTOR will use the existing Airport internet connection to com municate data off-airport. VECTOR will furnish and install any additional equipment required to extend the network to the Threshold ID PODS.
4. CAPTURE: VECTOR will not require any additional infrastructure to install the systems. A single standard AC outlet in the network closet will be sufficient.
Vector will install some antenna components on the roof of the Airport Administration building and connect Ethernet cabling within the building.
5. CAPTURE: Capture and identify all fixed wing aircraft departures 24/7/365 and automatically feed these identified activities into VECTOR's airport portal for airport staff viewing and into Vector’s Fight Rev billing system.
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 548 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 5 6. CAPTURE: Accept biweekly data download from Airport's existing noise managem ent system, import this data into VECTOR's FlightRev software, and cross correlate this data with all aircraft activity data captured by VECTOR's three (3) existing aircraft tracking technologies.
7. BILLING: Use aircraft operation data to calculate charges, determine which aircra ft to bill/exempt, apply aircraft model/weight, and implement Airport's specific fee structure that might change from time to time.
8. BILLING: Identify the actual aircraft operator (not owner) for each aircraft and m ake sure that aircraft is included in an aircraft operator account within VECTOR's FlightRev system. Transfer aircraft when necessary as indicated by customer service interactions.
9. BILLING: Produce aircraft operator bills by the 10th of each month and mail or ot herwise deliver them to aircraft operators.
10. CUSTOMER SERVICE: Operate live aircraft operator support line (tollfree 888 line) and email customer support line during business hours (9am EST to 5pm EST).
11. CUSTOMER SERVICE: Operate a web-based Customer Self Service System that will allow aircraft operators to view aircraft charges, request invoice and state ment copies, and pay online by credit card.
12. CUSTOMER SERVICE: Track all interactions with aircraft operators (calls, mail, invoices sent, statements sent, payments) and all actions taken on aircraft operator accounts (aircraft transfers, invoice adjustments, address changes, aircraft model c hanges, based aircraft additions, other aircraft exemptions).
13. COLLECTIONS: Actively manage operator AR balances, identify operators whose accounts are becoming delinquent, send out reminder notices, make live payment reminder calls, make live collection calls, send out collections letters, provide AR reports to the Airport on a monthly basis depicting accounts that are more than 120 days delinquent, report potential bad debt balances and bankruptcies to the City. City at its own discretion will assume collection efforts against operators that are more than 180 days delinquent. Upon notice from the City, VECTOR must provide the City will all background information regarding the delinquent account including all pertinent communication between VECTOR and the aircraft operator. Delinquencies collected by the City will not be imposed the percentage due to VECTOR as specified in Exhibit B-3 Budget as long as those amounts are not paid into the Vector-run lockbox. The City will notify Vector of all amounts paid into other accounts so that Vector may maintain a proper accounting of AR balances in Vector’s billing/collection system.
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 549 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 6 14. REPORTS: Manage billing adjustments on a monthly basis and provide a report to City of all adjustments. City may either elect to review and approve adjustment s before they are made or simply allow Vector to approve adjustments and City may review adjustments after-the-fact.
15. PAYMENTS: Operate a lockbox system for the receipt of aircraft operating fee payments collected by VECTOR on behalf of the City. VECTOR will provide the City with monthly activity statements for collected fee payments which will include a collections report. The lockbox used may, at Vector’s discretion, be the combined airport lockbox propose most recently to the City and agreed to by the City. This is a change from the previous practice of using a lockbox dedicated to the City. The reasons for this change are outlined in the 2020 Vector proposal.
16. REMITTANCE: Setup an electronic transfer mechanism in order to quickly transfer funds to the City from the lockbox according to VECTOR's post-month remittance policy. VECTOR will request basic information for automatic remittance (ACH) from the City and notify the City when automatic remittances occur (usually 3-5 days after month-end). Remittance information and history will be contained in monthly Deposit Detail Report.
17. REMITTANCE: Perform post-month end transfers: remittance to City and collection fee payment for Vector after approval of Vector Collections Report. Notify City via e-mail of these transfers as they occur.
18. PAYMENTS: Receive payments in the City lockbox and allocate those payments to aircraft operator accounts and keep an accurate balance of charges, adjustments, and payments for each aircraft operator on a daily basis. Credit card payments, which are made via VECTOR's online customer self-service system, will be applied to customer accounts at least twice monthly. Pending credit card payments will be viewable by aircraft operators for their account via the online self-service system.
20. REPORTS: Report AR balances Payment/Allocation Deposit Details, Monthly Bil ling Details, and Aircraft Activity Capture details to City via emailed reports and vi a Vector's web-based airport portal. VECTOR will coordinate with City to determine how many users City will need to have access to the Vector Airport Portal and which City staff members should receive certain reports. VECTOR will make aircraft activity data available to City for at least 5 years via the airport portal.
21. REPORTS: The Vector Airport Portal allows for query searches for various reports. The most common reports are by airport, by month, all activities. Other queries allow filter by arrivals/departures, by weight, by engine type (piston, turbojet).
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 550 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 7 22. AUDIT: VECTOR will respond to any audit requests on-demand within 30 days but probably much sooner to help City get the information they need to verify VECTOR's performance in managing the City's Santa Monica Airport Landing Fee Program.
23. REPAIR: All systems owned by Vector or the City at the Airport will be continuously monitored by VECTOR’s automated systems and VECTOR will be alerted to any system failure/outage lasting longer than 5 minutes. System repairs will be made within 72 hours and is the responsibility of VECTOR. City will be notified if there are any problems with meeting this timeframe.
24. MAINTENANCE: The City retains ownership of all equipment. This cost covers the remote operation of the system, processing the data produced by the system, constant remote monitoring or the system, and maintenance of the system, which includes troubleshooting, remote support of level 1 tasks performed by airport staff, any level 2 or level 3 support required, and any spare parts required to keep the systems functioning. OPMM does not cover any maintenance or repairs of damage caused by non-standard occurrences such as vandalism, collision, severe weather (i.e., tornados, etc.), flying objects, earthquakes, or any other unusual event that might damage the equipment. Vector will repair damage of this kind on a time & material basis and will provide a cost estimate to the City prior to commencing this work. If the City or Airport make any changes to Airport layout that necessitate the relocation of equipment (As has happened in the past with the runway threshold displacement (December 2017), Vector may be entitled to additional compensation to cover this relocation of equipment. Vector will provide the City/Airport a proposed cost estimate and negotiate in good faith for the completion of the work.
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 551 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) 8 Exhibit B-3
Budget
Compensation for Landing Fee Billing & Collection Services Compensation due to VECTOR for Landing Fee Billing and Collection Services to be paid by City shall be based on the gross monthly receipts of landing fee revenue billed and collected by VECTOR on behalf of the City for each month. If for any given month, gross monthly revenues are equal to or greater than $83,333.33, the VECTOR compensation rate will be 18%. If the gross billed and collected monthly revenue is less than $83,333.33, the VECTOR compensation rate for that month will be 21%. Compensation paid to VECTOR for the final year of the Agreement Term, and for each Option Year if exercised by City, shall not exceed $105,000. The total amount of compensation paid to VECTOR during the entire Term of this Agreement and for all exercised Option Years shall not exceed $1,765,484.
The following chart illustrates the agreed upon compensation schedule:
SMO Gross Landing Fee Monthly
Revenue
Vector Fee %
Equal to or greater than $83,333.33 18%
Less than $83,000,000 21%
Compensation for installation of landing fee & Threshold ID equipment VECTOR will bill for the following items as they are completed:
• Equipment ($54,750 plus $5,612 tax payable by Vector): billed after equipment is built, shipped, and arrives at SMO awaiting installation. • Labor, Project Management ($4,062.50): billed after equipment is built, shipped, and arrives at SMO awaiting installation.
• The remainder ($44,050) to be billed after equipment is installed and tested. • Annual recurring OPMM ($5,000) will be billed annually in advance as soon as the equipment is placed in service and is operational until June 30, 2019. • Any contingency funding will be billed after mutual agreement between Vector and City of Santa Monica staff on the exact amount of additional costs and the timing of the billing for those costs.
DocuSign Envelope ID: 8E4AC453-BFE3-4C91-B8C3-53E5D57D6811
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Packet Pg. 552 Attachment: Third Modification #10071 - Vector (6425 : Fourth Modification to Agreement with Vector for Airport Landing Fee Collections) City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.F
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Maintenance
Subject: Approve Purchase Order with ChargePoint, Inc. for Battery Electric Bus Charger Warranty
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines and a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the CEQA Guidelines;
2. Authorize the Procurement Manager to issue a purchase order with ChargePoint, Inc. for the purchase of extended warranties for the Department of Transportation. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250(b) and is for a total amount not to exceed $300,300, with future year funding contingent on Council budget approval.
Summary
Big Blue Bus, a division of the Santa Monica Department of Transportation (DOT), operates 194 transit buses, 19 of which are zero-emission battery electric buses. DOT’s fleet of electric buses operates throughout its service area, and the buses must be charged each night to ensure that they have sufficient battery capacity to meet DOT’s service needs. To support its electric bus fleet, BBB has 20 electric bus charging stations. These stations contain high-voltage electrical components that require periodic replacement to ensure that the charging stations continue to operate at full capacity.
The charging station manufacturer, ChargePoint, Inc., offers a 5-year extended warranty for these chargers that covers the cost of all materials and labor needed to
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make repairs and includes a 24-hour response time guarantee. Due to the critical nature of DOT’s electric bus charging infrastructure, staff recommends that the City issue a purchase order with ChargePoint, Inc. to provide a 5-year extended warranty for each of its 20 CPE-250 charging stations in an amount not to exceed $300,300.
Discussion
The City’s fleet of battery electric transit buses (BEBs) can be assigned to all routes through the Big Blue Bus system on a daily basis. Each night, DOT maintenance staff clean and charge buses to ensure that they are ready for service the next day. BEBs require four to eight hours of charging time overnight in addition to the time spent being cleaned and serviced by DOT maintenance staff. The charging stations at BBB’s bus yard are critical to ensuring that BEBs can be brought to a full state of charge on time.
Any interruption in their operation may result in a BEB failing to achieve a sufficient state of charge for morning service needs. The CPE-250 chargers used by DOT include multiple costly items that must periodically be replaced including power modules, coolant pumps, and charge control equipment.
The ChargePoint Assure warranty covers all materials and labor needed to replace any components that have failed. Additionally, the warranty includes access to a cloudbased charger management software and remote monitoring by ChargePoint, Inc. staff.
Any faults reported by the chargers are sent to ChargePoint, Inc. staff, who schedule a field service representative to troubleshoot the fault. This proactive monitoring ensures that any faults are addressed quickly with minimal station downtime. The warranty also includes a guaranteed response time to any issues raised by DOT staff of 24 hours or less. Staff recommends that a purchase order be issued to ChargePoint, Inc. for the purchase of a 5-year extended warranty for its electric bus charging station.
Vendor Selection
Exception to Competitive Bidding
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Staff recommends ChargePoint, Inc. to provide 5-year ChargePoint Assure warranty for DOT's twenty (20) CPE-250 charging stations as an exception to competitive bidding per Muni Code 2.24.250 (b). As the manufacturer of the CPE-250 chargers, ChargePoint, Inc. is the only entity able to offer a warranty on their products. Additionally, the ChargePoint Assure warranty includes active monitoring of DOT charging stations by ChargePoint, Inc., and a 24-hour response guarantee for any issues causing chargers to become inoperable, ensuring minimal service disruptions due to charger outages. ChargePoint, Inc. would provide all materials and labor needed to make repairs, thereby reducing the City's maintenance costs.
Environmental Review
The purchase order for extended warranty on DOT’s electric bus charging stations is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The purchase charging station warranties would not result in any modifications to existing maintenance facilities and would not expand or materially change existing maintenance operations or increase the fleet of vehicles or equipment using these parts. Therefore, the purchase order for extended warranty is categorically exempt as set forth in Section 15301 of the CEQA Guidelines. Additionally, the purchase order is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The purchase order will provide for an extended warranty on bus charging stations that would not have a physical effect on the environment. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, are exempt from CEQA.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to award a purchase order with ChargePoint, Inc. for the purchase of a five-year extended ChargePoint Assure warranty for its 20 electric bus charging stations.
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Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Renewal Quote for City of Santa Monica Department of Transportation - 5-Years B. Levine Act Disclosure Form_Chargepoint_032724
C. OAKS INITIATIVE FORM.fillable_Chargepoint_032924
Purchase Order Request
FY 2024-25 CIP Account # Total Purchase Order
Request Amount Amount
$300,300 C6007240.689000 $300,300
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ChargePoint Renewal Quote
Quotation
ChargePoint, Inc.
Driving a Better Way™
chargepoint.com \i2\
Sales Representative: Iris Guillardo Quote Number: Q-434683-4 E-Mail: [email protected] Date: 7/2/2024
Telephone: 669-221-1061 Expires On: 9/27/2024
ChargePoint Org Name: City of Santa Monica
Department of Transportation
Primary Contact: Shelbie ChargePoint Org: ORG128581
ChargePoint Assure Maintenance and Management
Product Name Product Description Quantity End Date Total Price (USD) CPE250-ASSURE-REN Prepaid coterminous renewal of ChargePoint Assure for CPE250 stations. Includes Parts and Labor Warranty, Remote Technical Support, On-Site Repairs when needed, Unlimited Configuration Changes, and Reporting.
20.0 06/30/2029 300,300.00
Total : USD 300,300.00
© 2024 ChargePoint, Inc.
240 East Hacienda Avenue, Campbell, CA 95008 USA