City Council
Report
City Council Meeting: November 11, 2024
Agenda Item: 5.A
1 of 4
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of First Modification to the Master Services Agreement Between the City and Downtown Santa Monica, Inc. (DTSM) to Authorize DTSM’s Continued Use of Private Security Services for the Downtown District 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 First Modification to the Master Services Agreement (CCS 9063) between the City and Downtown Santa Monica, Inc. (“DTSM”) to authorize DTSM to continue to deploy private security services in the City’s Downtown commercial district at no cost to the City of Santa Monica.
Summary
On July 25, 2023, Council authorized the City Manager to execute the Master Services Agreement (“MSA”) between the City and Downtown Santa Monica, Inc. (“DTSM”), a non-profit corporation organized under state law to administer the downtown Santa Monica Property-Based Assessment District (“District”). Using assessment revenue, the District provides enhanced activities, such as maintenance, events and marketing.
The District is comprised of commercial properties and businesses located in three zones, including the Third Street Promenade. The MSA authorized DTSM to retain private security services for the District for a one-year pilot period that expires on December 1, 2024. The proposed First Modification to the MSA will authorize DTSM to continue to retain private security services, in addition to the other services authorized under the District Management Plan, beyond December 1, 2024, as an integral part of 2 of 4
DTSM’s efforts to promote economic stability, growth, and community life within the District. To provide these private security services, DTSM entered into an initial oneyear contract with Legion Security and now desires to enter into a new contract with Legion to extend this important program beyond the pilot year.
Staff recommends that Council authorize the City Manager to negotiate and execute a First Modification to the MSA to authorize DTSM to directly contract with and fund a private security services provider that will provide both ambassador and security service activities to enhance community safety within the District. The private security services would not replace or reduce the City’s responsibility of providing public safety and crime prevention services for the District through the Santa Monica Police Department.
Discussion
DTSM provides hospitality and maintenance services, programs a year-round calendar of community events and prioritizes clean and safe initiatives to help support the District’s role as a vibrant and safe shopping, dining, and entertainment destination. In December 2023, as authorized by the MSA, DTSM entered into a one-year pilot program with Legion Security to deploy private security personnel within the District.
The pilot program expires on December 1, 2024. The DTSM Board has notified the City of DTSM’s desire to continue to retain private security services for the District and has provided the City with a DTSM Private Security Report of the pilot program.
The District Management Plan and Engineer's Report, which expire in 2029, govern the activities that DTSM can fund using assessment revenue for the District. Because DTSM does not intend to modify the activities that DTSM can fund using assessment revenue, an amendment of the District Management Plan is not required pursuant to California Street & Highways Code section 36636. The District Management Plan authorizes DTSM to use assessment revenue to fund ambassador activities, maintenance services, marketing, homeless outreach and assistance, special projects, and administrative costs (collectively “District Services”).
The ambassador activities include a variety of tasks such as providing information to visitors on downtown activities and establishments, offering escort services to employees, serving as attendants within public restrooms, providing a “neighborhood watch” to improve public safety, and working with social services agencies and the City 3 of 4
to reduce homelessness. DTSM’s contract with Legion Security specifies that Legion Security’s personnel will provide both ambassador and security services. While Legion Security’s personnel do not carry weapons they act as “eyes and ears” for the Santa Monica Police Department and communicate with the Police Department to help prevent crime. To the extent that Legion Security is unable to provide some of the activities that the District Management Plan requires DTSM to fund with assessment revenue, DTSM will enter into other agreements (or amend its existing agreements) to cover those services, such as homeless outreach and assistance.
Staff recommends that Council authorize the City Manager to negotiate and execute a First Modification to the MSA to permit DTSM to continue to deploy private security services, in addition to the other District Services that DTSM is authorized to provide under the District Management Plan. Staff’s recommendation is based on the success of the initial pilot program, and the on-going need within the District to enhance community safety.
Environmental Review
The modification to the agreement is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, “where it can be seen with certainty that there is no possibility that this project may have a significant effect on the environment”. The modification will permit DTSM to continue to deploy security services personnel within the District to provide security and ambassador services. Therefore, it can be seen with certainty that the modification to the MSA would not result in a physical environmental effect on the environment, and as such is exempt from CEQA.
Past Council Actions
Meeting Date Description
07/25/2023
(attachment A)
Approval of DTSM FY2023-24 Budget and Work Plan and
Authorization of Various Agreements Between City and
DTSM
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended actions and no additional cost to the City. DTSM will fund the private security services, in addition to the other District Services, through their annual budget. 4 of 4
Staff will return to Council if specific budget actions are required in the future.
Prepared By: Jennifer Taylor, Economic Development Manager Approved Forwarded to Council
Attachments:
A. Approval of DTSM FY2023-24 Budget and Work Plan and Authorization of Various Agreements Between City and DTSM (Web Link)
B. DTSM Master Services Agreement
C. DTSM Private Security Pilot Program Report