Agenda packet — Santa Monica City Council, June 10, 2025 (part 5 of 5)

12.B.a
Packet Pg. 1142
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYCustomer DataWater Supply DataTABLE 41 : TOTAL CAPACITY BY CUSTOMER CLASS Customer Class and Meter Size Equivalency to 1-inch # of Meters # of 1-inch Equivalent Meters
% of
Equivalent
Meters
Tier 1 Breakpoint 1 Tier 2 Breakpoint 2 Tier 3 Breakpoint 3 Single Family
All Customers 1.00 3,105 3,105 11% 0 - 10 hcf 11 - 18 hcf 19+ hcf Subtotal: Single Family 7,580 8,858 31%
Multi Family
All Customers 1.00 1,699 1,699 6% 0 - 7 hcf 8 - 13 hcf 14+ hcf Subtotal: Multi Family 6,507 10,944 38%
Non-Residential
3/4 inch 1.00 2,094 2,094 7% 0 - 10 hcf 11 - 18 hcf 19+ hcf 1 inch 1.00 716 716 3% 0 - 10 hcf 11 - 18 hcf 19+ hcf1.5 inch 2.00 718 1,436 5% 0 - 20 hcf 21 - 36 hcf 37+ hcf2 inch 3.20 513 1,642 6% 0 - 32 hcf 33 - 58 hcf 59+ hcf3 inch 6.40 161 1,030 4% 0 - 64 hcf 65 - 115 hcf 116+ hcf4 inch 10.00 77 770 3% 0 - 100 hcf 101 - 180 hcf 181+ hcf6 inch 20.00 26 520 2% 0 - 200 hcf 201 - 360 hcf 361+ hcf8 inch 84.00 5 420 1% 0 - 560 hcf 561 - 1,008 hcf 1,513+ hcf Subtotal: Non-Residential 4,310 8,628 30%
Total 28,429 18,397 100%

1. Tier 1 breakpoint set to assumed indoor consumption for a typical SFR customer using 47 gallons per capita per day (GPCD) with 2.56 people per SFR,

1.78 people per MFR and allocated to non-residential based on 47 GPCD and equivalent meters. Tier breakpoints for non-residential start at the SFR equivalent and are scaled based on meter size.

2. Tier 2 breakpoint set to volume of Santa Monica groundwater source minus the Tier 1 usage for each customer class.3. Tier 3 water is set to include all purchased water from MWD.

Per Unit
Per Meter
Per Unit
Prepared by NBSwww.nbsgov.com | 800.676.7516
Proposed Volume Charges-3 Tiers

Page 43 of 52 ends

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Packet Pg. 1143
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYCustomer DataWater Supply DataTABLE 42 : SUMMARY OF WATER CONSUMPTION BY TIER (NEW BREAKPOINTS) Tier 1 Tier 2 Tier 3 Total Tier 1 Tier 2 Tier 3
Residential:

Single Family 446,564 314,885 383,587 1,145,036 0 - 10 11 - 18 19 + Multi Family 692,091 488,013 594,488 1,774,592 0 - 7 / unit 8 - 13 /unit 14 + / unit Non-Residential: 573,967 404,721 493,023 1,471,711 Varies Varies Varies Total 1,712,622 1,207,618 1,471,099 4,391,340% of Total 28% 39% 34% 100%

1. Tier 1 breakpoint set to assumed indoor consumption for a typical SFR customer using 47 gallons per capita per day (GPCD) with 2.56 people per SFR,

1.78 people per MFR and allocated to non-residential based on 47 GPCD and equivalent meters. Tier breakpoints for non-residential start at the SFR equivalent and are scaled based on meter size.

2. Tier 2 breakpoint set to volume of Santa Monica groundwater source minus the Tier 1 usage for each customer class.3. Tier 3 water is set to include all purchased water from MWD.

Customer Class and Meter Size
Estimated Water Consumption by Tier Proposed Tier Breakpoints Prepared by NBSwww.nbsgov.com | 800.676.7516
Proposed Volume Charges-3 Tiers

Page 44 of 52 ends

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Packet Pg. 1144
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYCustomer DataWater Supply DataTABLE 43 : DEVELOPMENT OF TIERED VOLUMETRIC RATES Proposed Fixed Charges
Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 1,712,622 1,207,618 1,471,099 4,391,340 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 5,268,986 3,715,310 $ 4,525,924 $ 13,510,220 $ Ground Water 1,433,009 477,670 - 1,910,679 Groundwater l local supply costs allocated to Tier 1 and 2 costs Purchased Water - - 7,261,431 7,261,431 Purchased Water allocated to Tier 3 only Conservation 1,160,282 - 1,160,282 2,320,563 Recovered from Tier 2 and Tier 3 Water Self-Sufficiency Projects - - 373,033 373,033 Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 3,988,770 5,656,800 4,859,047 14,504,617 $ Split between all Tiers based on % of Total Consumption Total $ 13,519,077 8,181,750 $ 18,179,716 $ 39,880,543 $ % of Variable Revenue 21% 34% 46% 100%
Cost Per Unit of Water $6.78 $7.89 $12.36
Base commodity costs should be collected for each unit of water sold based on % of Total Consumption Calculation of Cost Per Tier Total Basis for Allocation Prepared by NBSwww.nbsgov.com | 800.676.7516
Proposed Volume Charges-3 Tiers

Page 45 of 52 ends

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Packet Pg. 1145
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA

WATER RATE STUDY
Water Cost of Service Analysis/Rate DesignTABLE 44 : PROPOSED RATES FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Bi-Monthly Fixed Service ChargesSingle Family Residential 3/4 inch $19.40 $50.06 $58.07 $63.30 $69.00 $73.141 inch $19.40 $50.06 $58.07 $63.30 $69.00 $73.141.5 inch $27.35 $84.00 $97.45 $106.22 $115.78 $122.722 inch $36.89 $124.74 $144.69 $157.72 $171.91 $182.22 All Other Customers
3/4 inch $23.46 $70.58 $81.88 $89.25 $97.28 $103.12
1 inch $23.46 $70.58 $81.88 $89.25 $97.28 $103.121.5 inch $35.48 $125.05 $145.06 $158.11 $172.34 $182.682 inch $49.89 $190.41 $220.87 $240.75 $262.42 $278.163 inch $88.33 $364.69 $423.04 $461.12 $502.62 $532.784 inch $131.58 $560.76 $650.49 $709.03 $772.84 $819.216 inch $251.71 $1,105.41 $1,282.27 $1,397.68 $1,523.47 $1,614.888 inch $684.18 $3,066.13 $3,556.71 $3,876.81 $4,225.73 $4,479.27 Fire Service Charges

1.5 inch $74.49 $80.32 $93.18 $101.56 $110.70 $117.35
2 inch $112.32 $118.85 $137.86 $150.27 $163.80 $173.623 inch $232.10 $240.84 $279.37 $304.51 $331.92 $351.834 inch $452.75 $465.55 $540.04 $588.64 $641.62 $680.126 inch $1,020.13 $1,043.39 $1,210.33 $1,319.27 $1,438.00 $1,524.288 inch $1,776.63 $1,813.85 $2,104.06 $2,293.43 $2,499.84 $2,649.8310 inch $2,659.22 $2,712.71 $3,146.74 $3,429.95 $3,738.64 $3,962.96 Commodity Charges
All Customers ($/hcf)
Tier 1 $6.61 $6.78 $7.86 $8.57 $9.34 $9.90Tier 2 $7.67 $7.89 $9.15 $9.98 $10.87 $11.53Tier 3 $10.93 $12.36 $14.34 $15.63 $17.03 $18.06* Tier Breakpoints shown in Table 41 Water Rate Schedule Current Rates Proposed Rates
Prepared by NBSwww.nbsgov.com | 800.676.7516
Proposed Rates-3 Tiers, 46 of 52
5/28/2025

12.B.a
Packet Pg. 1146
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYWater Drought RatesTABLE 45 : EXPENSES DIRECTLY IMPACTED BY FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
AOP/UV Pollution Remediation Systems - O&M $ - $ - $ - $ - $ - Chemicals $ - $ - $ - $ - $ -
Contra-Charnock Pollution Expense $ - $ - $ - $ - $ -
Direct Install Program $ - $ - $ - $ - $ -
Environmental Reimbursement $ 968,597 $ 997,654 $ 1,027,584 $ 1,061,560 $ 1,087,038 SMMUSD Program $ - $ - $ - $ - $ - Utilities - Electricity $ - $ - $ - $ - $ - Waste Disposal (Brining) $ - $ - $ - $ - $ - Water Purchases $ - $ - $ - $ - $ - Adjusted Commodity Assigned Costs $ 997,654 968,597 $ 1,027,584 $ 1,061,560 $ 1,087,038 $

1. Costs change due to expected inflation.

TABLE 46 : YEAR 1 POTABLE NET REVENUE REQUIREMENTS BY FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Percentage of Conservation
Total
Consumption
(hcf)
Base Commodity
Cost
Impacted
Commodity Cost Savings Updated Commodity Cost
a b c d = (-a) * c e = b + c
0% 4,391,340 39,880,543 $ 968,597 $ - $ 39,880,543 $
10% 3,952,206 39,880,543 $ 968,597 $ (96,860) $ 39,783,683 $ 20% 3,513,072 39,880,543 $ 968,597 $ (193,719) $ 39,686,824 $ 30% 3,073,938 39,880,543 $ 968,597 $ (290,579) $ 39,589,964 $ 40% 2,634,804 39,880,543 $ 968,597 $ (387,439) $ 39,493,104 $ 50% 2,195,670 39,880,543 $ 968,597 $ (484,298) $ 39,396,245 $ ` 60% 1,756,536 39,880,543 $ 968,597 $ (581,158) $ 39,299,385 $ TABLE 47 : YEAR 1 POTABLE NET REVENUE REQUIREMENTS BY FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Drought Level Level of Conservation Tier 1 Rate Tier 2 Rate Tier 3 Rate No Level Baseline 1 $6.78 $7.89 $12.36
Level 1 10% $6.81 $9.17 $13.78Level 2 20% $7.65 $10.29 $15.46Level 3 30% $8.72 $11.73 $17.63Level 4 40% $10.15 $13.65 $20.52Level 5 50% $12.15 $16.35 $24.56Level 6 60% $15.15 $20.38 $30.62

1. Baseline level of consumption assumes 2023 consumption.

Expense Description Commodity Costs 1
Prepared by NBSwww.nbsgov.com | 800.676.7516
Drought Rates, 47 of 52
5/28/2025

12.B.a
Packet Pg. 1147
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYWater Drought RatesTABLE 48 : LEVEL 1 - 10% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 1,541,360 1,086,857 1,323,989 3,952,206 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 763,473 538,346 $ 655,803 $ 1,957,622 $ Ground Water 4,122,468 1,374,156 - 5,496,624 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,891,119 6,891,119 $ Purchased Water allocated to Tier 3 only Conservation 1,457,209 - 1,457,209 2,914,417 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,546,237 2,546,237 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,257,858 5,117,721 6,234,314 18,609,893 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 533,431 376,137 458,203 1,367,771 $ Split between all Tiers based on % of Total Consumption Total $ 14,134,438 7,406,360 $ 18,242,885 $ 39,783,683 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $6.814 $9.170 $13.779
91% 105% 100%
TABLE 49 : LEVEL 2 - 20% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 1,370,098 966,095 1,176,879 3,513,072 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 761,614 537,035 $ 654,207 $ 1,952,856 $ Ground Water 4,112,431 1,370,810 - 5,483,242 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,874,342 6,874,342 $ Purchased Water allocated to Tier 3 only Conservation 1,453,661 - 1,453,661 2,907,322 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,540,037 2,540,037 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,240,188 5,105,261 6,219,136 18,564,584 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 532,132 375,221 457,088 1,364,441 $ Split between all Tiers based on % of Total Consumption Total $ 14,100,026 7,388,328 $ 18,198,470 $ 39,686,824 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $7.648 $10.291 $15.463
90% 104% 100%
Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Prepared by NBSwww.nbsgov.com | 800.676.7516
Drought Rates, 48 of 52
5/28/2025

12.B.a
Packet Pg. 1148
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYWater Drought RatesTABLE 50 : LEVEL 3 - 30% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 1,198,836 845,333 1,029,769 3,073,938 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 759,755 535,725 $ 652,610 $ 1,948,090 $ Ground Water 4,102,395 1,367,465 - 5,469,859 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,857,564 6,857,564 $ Purchased Water allocated to Tier 3 only Conservation 1,450,113 - 1,450,113 2,900,226 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,533,838 2,533,838 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,222,517 5,092,801 6,203,957 18,519,276 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 530,833 374,306 455,972 1,361,111 $ Split between all Tiers based on % of Total Consumption Total $ 14,065,613 7,370,296 $ 18,154,055 $ 39,589,964 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $8.719 $11.733 $17.629
90% 104% 100%
TABLE 51 : LEVEL 4 - 40% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 1,027,573 724,571 882,659 2,634,804 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 757,896 534,414 $ 651,013 $ 1,943,323 $ Ground Water 4,092,358 1,364,119 - 5,456,477 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,840,787 6,840,787 $ Purchased Water allocated to Tier 3 only Conservation 1,446,565 - 1,446,565 2,893,130 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,527,639 2,527,639 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,204,847 5,080,341 6,188,779 18,473,967 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 529,535 373,390 454,857 1,357,781 $ Split between all Tiers based on % of Total Consumption Total $ 14,031,201 7,352,264 $ 18,109,640 $ 39,493,104 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $10.147 $13.655 $20.517
90% 104% 100%
Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Prepared by NBSwww.nbsgov.com | 800.676.7516
Drought Rates, 49 of 52
5/28/2025

12.B.a
Packet Pg. 1149
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYWater Drought RatesTABLE 52 : LEVEL 5 - 50% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 856,311 603,809 735,549 2,195,670 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 756,037 533,103 $ 649,417 $ 1,938,557 $ Ground Water 4,082,321 1,360,774 - 5,443,095 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,824,009 6,824,009 $ Purchased Water allocated to Tier 3 only Conservation 1,443,017 - 1,443,017 2,886,035 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,521,440 2,521,440 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,187,177 5,067,881 6,173,600 18,428,658 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 528,236 372,474 453,741 1,354,451 $ Split between all Tiers based on % of Total Consumption Total $ 13,996,788 7,334,232 $ 18,065,224 $ 39,396,245 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $12.147 $16.345 $24.560
90% 104% 99%
TABLE 53 : LEVEL 6 - 60% FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL Tier 1 Tier 2 Tier 3
GW - Basic
Water Use
Ground Water Purchased
Water
Sources of Supply (hcf) 685,049 483,047 588,440 1,756,536 % of Total Consumption 28% 39% 34% 100%% of Groundwater 41% 59% -- 100%% of Tier 2 and 3 Water -- 54% 46% 100%Costs Allocated to Volumetric Charges:

Tier 1 Tier 2 Tier 3 Total
Base Commodity $ 754,179 531,793 $ 647,820 $ 1,933,791 $ Ground Water 4,072,284 1,357,428 - 5,429,712 $ Groundwater allocated to Tier 1 and Tier 2 % of GroundwaterPurchased Water - - 6,807,232 6,807,232 $ Purchased Water allocated to Tier 3 only Conservation 1,439,470 - 1,439,470 2,878,939 $ Recovered from Tiers 2-3 base on % of Consumption Water Self-Sufficiency Projects - - 2,515,240 2,515,240 $ Water self sufficiency projects allocated based on Tier 3 Only Capacity (Allocated to Variable Rate) 7,169,506 5,055,421 6,158,422 18,383,349 $ Split between all Tiers based on % of Total Consumption Customer (Allocated to Variable Rate) 526,937 371,558 452,625 1,351,121 $ Split between all Tiers based on % of Total Consumption Total $ 13,962,376 7,316,200 $ 18,020,809 $ 39,299,385 $ % of Variable Revenue 19% 36% 46% 100%
Cost Per Unit of Water $15.146 $20.382 $30.625
89% 103% 99%
Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Calculation of Cost Per Tier Total Basis for Allocation Base commodity costs should be collected for each unit of water sold based on Prepared by NBSwww.nbsgov.com | 800.676.7516
Drought Rates, 50 of 52
5/28/2025

12.B.a
Packet Pg. 1150
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYWater Drought RatesTABLE 54 : PROPOSED DROUGHT RATES FOR FUTURE MANDATED WATER USE REDUCTION, IF DIRECTED BY COUNCIL FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Commodity Charges ($/hcf)
10% Tier 1 $6.81 $7.90 $8.62 $9.39 $9.96
Tier 2 $9.17 $10.64 $11.59 $12.64 $13.40Tier 3 $13.78 $15.98 $17.42 $18.99 $20.13 20% Tier 1 $7.65 $8.87 $9.67 $10.54 $11.17
Tier 2 $10.29 $11.94 $13.01 $14.18 $15.03Tier 3 $15.46 $17.94 $19.55 $21.31 $22.59 30% Tier 1 $8.72 $10.11 $11.02 $12.02 $12.74
Tier 2 $11.73 $13.61 $14.83 $16.17 $17.14Tier 3 $17.63 $20.45 $22.29 $24.30 $25.75 40% Tier 1 $10.15 $11.77 $12.83 $13.98 $14.82
Tier 2 $13.65 $15.84 $17.26 $18.82 $19.95Tier 3 $20.52 $23.80 $25.94 $28.28 $29.97 50% Tier 1 $12.15 $14.09 $15.36 $16.74 $17.74
Tier 2 $16.35 $18.96 $20.67 $22.53 $23.88Tier 3 $24.56 $28.49 $31.05 $33.85 $35.88 60% Tier 1 $15.15 $17.57 $19.15 $20.87 $22.13
Tier 2 $20.38 $23.64 $25.77 $28.09 $29.78Tier 3 $30.62 $35.52 $38.72 $42.21 $44.74 Proposed Drought Rates
Mandated Level of
Conservation
Prepared by NBSwww.nbsgov.com | 800.676.7516
Proposed Drought Rates, 51 of 52
5/28/2025

12.B.a
Packet Pg. 1151
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WATER RATE STUDYRecycled Water Cost of Service Analysis/Rate DesignPreliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 55 - RECYCLED WATER SUMMARY ALLOCATION OF NET REVENUE REQUIREMENTS Recycled Water 120,834 $ 2,801 $ 30,060 $ 153,695 $ 0.3% Total Net Revenue Requirement 120,834 $ 2,801 $ 30,060 $ 153,695 $ 0.3% TABLE 56 : RECYCLED WATER TARGET REVENUE FOR 2025/26
Customer Class Meter Size
Number of
Accounts
(FY 2023/24)
Fixed
Revenue
(FY 2025/26)
FY 2023/24
Consumption (HCF)
Target Variable
Rate Revenue
(FY 2025/26)
Uniform
Commodity Rate
($/hcf)
Percent of
Potable Rate
1 1 inch 5 3,751 $ 1051.5 1.5 inch 4 4,570 2972 2 inch 13 28,446 1,2033 3 inch 3 10,094 7374 4 inch 5 33,162 3,428Total 30 80,023 $ 5,770 TABLE 56 : PROPOSED RECYCLED WATER RATES
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30

20.00% 16.00% 9.00% 9.00% 6.00%
Commodity Charges
All Customers ($/hcf)
Uniform Rate $3.49 $5.21 $6.04 $6.59 $7.18 $7.61
Cost of Service Net Rev. Req'ts
Recycled Water Rate Schedule Current Rates Proposed Rates Customer Classes
Classification Components
Capacity Customer Variable Costs
Overall Increase in Rate Revenue
$ 30,060 $5.21 77%
Cost of Service
Net Rev.

Requirements
% of COS Net
Revenue
Req'ts
Prepared by NBSwww.nbsgov.com | 800.676.7516
Recycled Water Rates, 52 of 52

12.B.a
Packet Pg. 1152
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service Water and Sewer Rate Study – City of Santa Monica
Prepared by NBS – May 2025 37
Appendix B. Sewer Rate Study Tables and Figures

12.B.a
Packet Pg. 1153 Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service Rates (5 min)) CITY OF SANTA MONICA Financial Plan & Reserve Summary
WASTEWATER RATE STUDYFinancial Plan and Reserve Projections 2 Alternative 2
1 Alternative 1 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
2 Alternative 2 0.00% 7.00% 7.00% 7.00% 6.00% 6.00%3 Alternative 3 0.00% 5.00% 5.00% 5.00% 5.00% 5.00% TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Budget
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sources of Wastewater Funds
Wastewater Fund, 51 $ 45,852,598
Rate Revenue:

Revenue Under Current Rates $ 20,786,940 20,700,000 $ 20,874,245 $ 20,961,917 $ 21,049,957 $ 21,138,367 $ Revenue from Rate Increases 2 1,455,086 - 3,024,678 4,717,333 6,284,372 7,957,714 Subtotal: Rate Revenue After Rate Increases 20,700,000 $ 22,242,026 $ 23,898,923 $ 25,679,250 $ 27,334,329 $ 29,096,081 $ Non-Rate Revenue:

Charges for Services $ 965,946 975,448 $ 956,365 $ 958,118 $ 959,907 $ 961,731 $ Fines and Forfeitures - - - - - -
Interest Income 704,928 860,000 509,720 457,276 476,331 449,151 Other Revenue 400,000 220,000 398,813 406,789 414,925 423,223 Subtotal: Non-Rate Revenue 2,055,448 $ 2,070,874 $ 1,864,898 $ 1,822,183 $ 1,851,162 $ 1,834,105 $ Total Sources of Funds $ 24,312,899 22,755,448 $ 25,763,821 $ 27,501,433 $ 29,185,491 $ 30,930,186 $ Uses of Wastewater Funds
Wastewater Fund, 51
Operating Expenses 3
Salaries and Benefits $ 4,288,826 3,484,644 $ 4,578,278 $ 4,748,523 $ 4,914,736 $ 5,144,873 $ Supplies and Expenses 17,963,599 16,922,501 18,413,185 18,870,710 19,331,984 19,806,515 Retirement and OPEB 18,877 17,978 19,821 20,812 21,852 22,945 Interfund Transactions (3,557,049) (2,544,547) (2,580,637) (2,617,467) (2,655,055) (2,690,034) Subtotal: Operating Expenses: $ 19,726,755 16,868,074 $ 20,430,647 $ 21,022,577 $ 21,613,517 $ 22,284,299 $ Other Expenditures
Existing Debt Service $ 2,948,946 2,948,946 $ 2,948,946 $ 2,948,946 $ 2,948,946 $ 2,948,946 $ New Debt Service - - - - - -
Rate-Funded Capital Expenses 14,113,500 5,221,192 - - 848,603 4,147,519 Subtotal: Other Expenditures 8,170,138 $ 17,062,445 $ 2,948,946 $ 2,948,946 $ 3,797,549 $ 7,096,464 $ Total Uses of Funds $ 36,789,201 25,038,212 $ 23,379,593 $ 23,971,522 $ 25,411,065 $ 29,380,763 $ Annual Surplus/(Deficit) (2,282,764) $ (12,476,301) $ 2,384,228 $ 3,529,910 $ 3,774,426 $ 1,549,423 $ Net Revenue Req't. (Total Uses less Non-Rate Revenue) $ 34,718,327 22,982,764 $ 21,514,695 $ 22,149,340 $ 23,559,903 $ 27,546,658 $ Projected Annual Rate Revenue Adjustment 0.00% 7.00% 7.00% 7.00% 6.00% 6.00%Cumulative Increase from Annual Revenue Increases 0.00% 7.00% 14.49% 22.50% 29.85% 37.65%Debt Coverage After Rate Increase (minimum 1.2 ratio) 1.56 2.00 1.81 2.20 2.57 2.93

1. Revenue and expenses for are from PW_51FundForecast-Wastewater Budget values are detailed in Exhibit 1 (O&M).

2. Revenue from rate increases assumes an implementation date of July 1, 2025 and then July 1 each year thereafter.3. The operating expenses are from the fund forecast. Inflationary factors are applied to these expenses to project costs in FY 2028/29 and beyond.4. Stormwater fund 52 contributes to the SWIP project.

RATE REVENUE REQUIREMENTS SUMMARY 1 Projected
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA Financial Plan & Reserve Summary
WASTEWATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 2 : RESERVE FUND SUMMARY Budget
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Beginning Cash 1 $ 45,852,598
Operating ReserveBeginning Reserve Balance $ 31,644,854 $ 4,931,689 29,362,090 $ 5,107,662 $ 5,255,644 $ 5,403,379 $ Plus: Net Cash Flow (After Rate Increases) (2,282,764) (12,476,301) 2,384,228 3,529,910 3,774,426 1,549,423 Plus: Transfer of Debt Reserve Surplus - - - - - -
Less: Transfer Out to Capital Replacement Reserve - (11,954,100) (2,208,255) (3,381,928) (3,626,691) (1,381,727) Ending Operating Reserve Balance $ 4,931,689 29,362,090 $ 5,107,662 $ 5,255,644 $ 5,403,379 $ 5,571,075 $ Target Ending Balance (90-days of O&M) 4,217,018 $ 4,931,689 $ 5,107,662 $ 5,255,644 $ 5,403,379 $ 5,571,075 $ Capital Rehabilitation & Replacement Reserve Beginning Reserve Balance $ 13,207,744 $ 17,557,700 5,603,600 $ 13,948,287 $ 14,636,063 $ 9,929,391 $ Plus: Transfer of Operating Reserve Surplus - 11,954,100 2,208,255 3,381,928 3,626,691 1,381,727 Less: Use of Reserves for Capital Projects (7,604,144) - (5,817,669) (2,694,151) (8,333,363) (3,470,991) Ending Capital Rehab & Replacement Reserve Balance $ 17,557,70 5,603,600 $ 13,948,287 0 $ 14,636,063 $ 9,929,391 $ 7,840,127 $ Target Capital R&R Balance (3% of Net Assets) 5,603,600 $ 5,921,300 $ 6,033,400 $ 6,141,500 $ 6,302,700 $ 6,458,400 $ Rate Stabilization FundBeginning Reserve Balance $ 1,000,000 $ 1,000,000 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ Less: Use of Reserves for Capital Projects - - - - - -
Ending Rate Stabilization Reserve Balance $ 1,000,00 1,000,000 $ 1,000,00 0 $ 1,000,00 0 $ 1,000,00 0 $ 1,000,00 0 $ 0 Target Rate Stabilization Balance ($1million) 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ Ending Balance $ 23,489,389 35,965,690 $ 20,055,948 $ 20,891,707 $ 16,332,770 $ 14,411,202 $ Minimum Target Ending Balance $ 11,852,989 10,820,618 $ 12,141,062 $ 12,397,144 $ 12,706,079 $ 13,029,475 $ Ending Surplus/(Deficit) Compared to Reserve Targets 25,145,072 $ 11,636,40 $ 7,914,887 0 $ 8,494,563 $ 3,626,691 $ 1,381,727 $

SUMMARY OF CASH ACTIVITYUN-RESTRICTED RESERVES
Projected
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA Financial Plan & Reserve Summary
WASTEWATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 3 : RESERVE FUND SUMMARY (continued) Restricted Reserves: FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Clean Water SRF ReserveBeginning Reserve Balance $ - - $ $ - - $ - $ - $ Plus: SRF Loan Funding Proceeds - - - - - -
Plus: Revenue Bond Proceeds - - - - - -
Less: Use of Bond & Loan Funds for CIP - - - - - -
Ending Bond Project Fund Balance $ - - $ - $ - $ - $ - $ Target Ending Balance $ - - $ - $ - $ - $ - $
Debt ReserveBeginning Reserve Balance $ - - $ $ - - $ - $ - $ Plus: Reserve Funding from New Debt Obligations - - - - - - Less: Transfer of Surplus to Operating Reserve - - - - - - Ending Debt Reserve Balance - $ - $ - $ - $ - $ - $
Target Ending Balance - $ - $ - $ - $ - $ - $
Connection and Capital Facility Fee ReserveBeginning Reserve Balance $ - $ - - $ - $ - $ - $ Plus: Connection and Capital Facility Fee Revenue 608,093 1,008,360 1,008,527 1,008,698 1,008,872 1,009,049 Interest Earnings - - - - - -
Less: Use of Reserves for Capital Projects (1,008,360) (608,093) (1,008,527) (1,008,698) (1,008,872) (1,009,049) Ending Connection Fee Fund Balance - $ - $ - $ - $ - $ - $ Annual Interest Earnings Rate 2 2.00% 1.96% 2.17% 2.28% 2.28% 2.75%

1. Total beginning cash and Reserve Targets for the Wastewater Fund as found in PW_51FundForecast-Wastewater2. City estimated interest earnings rate per LAIF Prepared by NBSwww.nbsgov.com | 800.676.7516
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYRate Adjustment Charts and Report TablesCHART 1 $0
$10,000,000$20,000,000$30,000,000$40,000,000
2026 2027 2028 2029 2030
Annual Obligations
Fiscal Year Ending June 30
Sewer Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Cash Funded Capital ExpensesDebt ServiceO&M ExpensesRevenues under Existing RatesRevenues under Adjusted Rates Prepared by NBSwww.nbsgov.com | 800.676.7516
Charts and Tables, 4 of 30
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYRate Adjustment Charts and Report TablesCHART 2 $-
$5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2026 2027 2028 2029 2030
Fiscal Year Ending June 30
Un-Restricted Cash Balances vs. Recommended Reserve Targets Unrestricted Cash Balance60-Day Target Reserve Balance90-Day Target Reserve Balance Prepared by NBSwww.nbsgov.com | 800.676.7516
Charts and Tables, 5 of 30
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYRate Adjustment Charts and Report TablesCHART 3

7.0% 7.0% 7.0%

6.0% 6.0% 6.0% 6.0%
5%6%7%8%
2026 2027 2028 2029 2030 2031 2032
Fiscal Year Ending June 30
Projected Adjustments to Rate Revenue
Prepared by NBSwww.nbsgov.com | 800.676.7516
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 4 : OPERATING REVENUE FORECAST ActualDESCRIPTION Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Wastewater Fund, 51
City of LA - Wastewater Repair 1 280,000 $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ Connection / Capacity Permit Fees 1 8,093 8,360 8,527 8,698 8,872 9,049 Wastewater Services Charges 1 20,700,000 20,874,245 20,786,940 20,961,917 21,049,957 21,138,367 Wastewater Capital Facility Fees 1 600,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Saddle Fees 1 83,200 85,946 87,665 89,418 91,207 93,031 Industrial Waste Fees 1 612,248 600,000 588,700 588,700 588,700 588,700 Charges for Services - SUBTOTAL - $ 22,283,541 $ 22,761,246 $ 22,839,137 $ 22,928,733 $ 23,018,735 $ 23,109,147 $ Admin Fines / Penalties 8- - - - - - -
Fines and Forfeitures - SUBTOTAL - $ - $ - $ - $ - $ - $ - $ Int. Dep. / Investment See FP 860,000 860,000 333,000 333,000 356,000 356,000 Unrealized Gain (Loss) 8- - - - - -
Accrued Investment Income 8- - - - - -
Int. Inc. - Loan 34 Fund (Stormwater) 8- - - - - -
Investment Income - SUBTOTAL - $ 860,000 $ 860,000 $ 333,000 $ 333,000 $ 356,000 $ 356,000 $ ASSFC Pass-Thru 8 220,000 400,000 398,813 406,789 414,925 423,223 Wastewater Misc. Non-Operating 8- - - - - -
Int. Wastewater Bond Proceeds 8- - - - - -
Alt. Fuel Tax Credit 8- - - - - -
Other - SUBTOTAL - $ 220,000 $ 400,000 $ 398,813 $ 406,789 $ 414,925 $ 423,223 $ TOTAL : Wastewater Fund, 51 - $ 23,363,541 $ 24,021,246 $ 23,570,950 $ 23,668,522 $ 23,789,660 $ 23,888,370 $ TABLE 5 : OPERATING REVENUE SUMMARYDESCRIPTION Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Wastewater Fund, 51
Wastewater Rate Revenue - $ 20,700,000 $ 20,786,940 $ 20,874,245 $ 20,961,917 $ 21,049,957 $ 21,138,367 $ Charges for Services - 975,448 965,946 956,365 958,118 959,907 961,731 Connection and Capacity Fees - 608,093 1,008,360 1,008,527 1,008,698 1,008,872 1,009,049 Fines and Forfeitures - - - - - - -
Interest Income - 860,000 860,000 333,000 333,000 356,000 356,000 Other Revenue - 220,000 400,000 398,813 406,789 414,925 423,223 TOTAL : OPERATING REVENUE 1 $ 23,363,541 - $ 24,021,246 $ 23,570,950 $ 23,668,522 $ 23,789,660 $ 23,888,370 $

1. Revenue and expenses for are from PW_51FundForecast-Wastewater Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 1 (O&M), 7 of 30
5/28/2025

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Packet Pg. 1160
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 6 : OPERATING EXPENSE FORECASTDESCRIPTION Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30Wastewater Fund, 51Salaries and Benefits Permanent Employees 3 2,256,311 $ 2,310,633 $ 2,356,846 $ 2,403,983 $ 2,452,062 $ 2,501,103 $ Year-End Cash Outs 4- - - - - -
Vacation Lump Sum Pays 4- - - - - -
Standby Pay 3 22,607 23,059 23,520 23,991 24,470 24,960 Overtime 3 44,430 45,319 46,225 47,150 48,093 49,055
Temporary Employees 3- - - - - -
Medicare - Misc. Employees 4 31,488 32,116 32,582 33,054 33,533 34,020 Workers' Comp Insurance 4 18,837 19,534 20,232 20,929 22,324 23,813 Medical - Misc. Employees 4 484,608 518,530 570,383 627,421 690,163 759,180 Med. Trust - Misc. Employees 4 47,542 48,488 49,458 50,447 51,456 52,485 Dental 4 27,104 27,588 28,085 28,590 29,105 29,629
Vision 4 3,146 3,168 3,200 3,232 3,264 3,297
Employee Health Contribution 4 (38,776) (41,489) (45,631) (50,194) (55,213) (60,734) Retirement - Misc. Employees 4 558,129 595,956 751,834 793,314 823,893 905,399 Retirement - As Needed 4- - - - - -
Unemployment 4 10,350 10,561 10,772 10,988 11,207 11,432 EAP 4 418 418 422 426 431 435
DCAP 4 770 770 770 770 770 770
Life Insurance and AD&D 4 3,541 3,649 3,722 3,796 3,872 3,950 Disability Insurance 4 14,139 14,419 14,852 15,297 15,756 16,229 EBB Budget Request: Add 1 FTE Water Chem 3 191,110 185,544 196,844 202,749 208,831 EBB Budget Request: Add 1 FTE SCADA Supervisor (50/50 Split with WW Fund) 114,059 110,737 117,481 121,005 124,635 Equity Adjustment for ALL POSITIONS (10%) 4 405,838 379,826 421,004 435,794 456,385 Placeholder 4- - - - - -
Salaries and Benefits - SUBTOTAL - $ 3,484,644 $ 4,288,826 $ 4,578,278 $ 4,748,523 $ 4,914,736 $ 5,144,873 $ Supplies and Expenses
Vehicles - Fuels / Lubrication 7 2,109 $ 2,320 $ 2,376 $ 2,433 $ 2,491 $ 2,551 $ CNG Fuel 7 28,311 42,467 43,486 44,530 45,599 46,693
Reimburse Water Fund 2 395,557 409,983 422,282 434,951 447,999 462,812 Utilities Billing Services 2 333,820 345,013 351,913 358,952 366,131 373,453 Metered Postage 2 10,000 10,200 10,404 10,612 10,824 11,041 Indirect Cost Allocation 2 750,324 773,584 800,659 828,683 857,686 887,705 Memberships and Dues 2 6,417 6,545 6,676 6,809 6,946 7,085 Rent 2- - - - - -
Other Operating Rent 2 231,087 235,709 240,423 245,232 250,136 255,139 Reimburse Engineering Office 2- - - - - -
Office Supplies / Expense 2 15,000 15,300 15,606 15,918 16,236 16,561 SPEC Department Supplies 2 157,194 160,338 163,545 166,816 170,152 173,555 CHEMICALS-SWIP 2 41,820 42,656 43,936 45,254 46,611 48,010 Rideshare and Parking Programs 2 2,611 2,663 2,716 2,771 2,826 2,883 Uniform / Protective Clothing 2 21,000 21,420 21,848 22,285 22,731 23,186 Utilities - Electricity 5 2,562 2,921 2,979 3,039 3,100 3,162 Utilities - Water 5 1,667 1,900 1,938 1,977 2,016 2,057 Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 1 (O&M), 8 of 30
5/28/2025

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Packet Pg. 1161
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 7 : OPERATING EXPENSE FORECASTDESCRIPTION Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30Wastewater Fund, 51Supplies and Expenses, cont.

Utilities - Light/Power - SWIP 5 1,191,627 1,358,455 1,399,209 1,441,185 1,484,420 1,528,953 Utilities - Water - SWIP 5 1,368 1,560 1,607 1,655 1,705 1,756 Utilities - Telephone 5 19,845 20,242 20,647 21,060 21,481 21,911 Vehicle Management Fund - Maint. 2 191,151 201,962 206,809 211,773 216,855 222,060 Computer Eqt. / Software Maint. 2 80,000 78,613 80,500 82,432 84,410 86,436 Sewage Pump Plant Maint. 2 522,240 532,685 543,339 554,205 565,290 576,595 Storm Drain Maintenance 2 196,218 165,132 168,435 171,803 175,239 178,744 SMURRF Plant Maintenance 2 337,986 344,746 351,641 358,674 365,847 373,164 AWTF, Civic Lot O&M 2 437,154 445,897 454,815 463,911 473,189 482,653 Conferences / Meetings / Travel 2 16,044 16,365 16,692 17,026 17,367 17,714 Food Purchases 2 1,095 1,117 1,139 1,162 1,185 1,209
Training Costs 2- - - - - -
Training 2 20,000 20,400 20,808 21,224 21,649 22,082
Bank Fees 2 10,427 10,636 10,849 11,066 11,287 11,513
General Liability - Auto 2 696,434 1,333,331 1,294,496 1,373,331 1,414,531 1,456,967 Property Insurance 2 100,035 116,460 134,377 149,308 156,773 164,612 LA Sewage Disposal 2 7,011,430 7,151,659 7,294,692 7,440,586 7,589,398 7,741,186 ASSFC Pass-Thru 2 383,326 390,993 398,813 406,789 414,925 423,223 SCADA O&M 2 60,291 61,497 62,727 63,981 65,261 66,566
Transfer Station Fee 2 9,465 9,654 9,847 10,044 10,245 10,450 Fiscal Agent Fees 2 2,190 2,234 2,279 2,324 2,371 2,418 Contractual Services 2 310,000 275,400 280,908 286,526 292,257 298,102 Cont SVCS-SWIP 2 2,477,389 2,526,937 2,602,745 2,680,827 2,761,252 2,844,090 SWIP City 2 537,234 547,979 564,418 581,351 598,791 616,755 Employee Medical Exams 2 5,585 5,697 5,811 5,927 6,046 6,167 Professional Services 2 304,488 309,764 315,959 322,278 328,724 335,299 Supplies and Expenses - SUBTOTAL - $ 16,922,501 $ 17,963,599 $ 18,413,185 $ 18,870,710 $ 19,331,984 $ 19,806,515 $ Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 1 (O&M), 9 of 30
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Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 8 : OPERATING EXPENSE FORECASTDESCRIPTION Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30Retirement and OPEB Retirement - Misc. Employees 4- - - - - -
OPEB Payment ARC 4 32,722 34,358 36,076 37,880 39,774 41,762 Reimbursement from OPEB Trust 4 (14,744) (15,481) (16,255) (17,068) (17,921) (18,817) OPEB Expense 4- - - - - -
Retirement and OPEB - SUBTOTAL 2 $ 17,978 - $ 18,877 $ 19,821 $ 20,812 $ 21,852 $ 22,945 $ Interfund Transactions
Environmental Reimbursement 8 450,437 470,193 484,299 498,828 513,793 530,781 Water/Wastewater Transfer 8 287,109 303,664 312,774 322,157 331,822 342,793 SCADA Reimbursement 8 91,119 94,518 97,354 100,274 103,282 106,697 Clean Beaches Transfer 8- - - - - -
Water/Wastewater Reimb 8 176,249 183,108 188,601 194,259 200,087 206,703 Transfer (Budget Only) 8- - - - - -
GIS Analyst for PW 8 43,527 28,528 29,384 30,265 31,173 32,204 Admin Analyst Reimb 8 1,271 1,316 1,355 1,396 1,438 1,486 ADA Coord Reimb 8 5,175 5,392 5,554 5,720 5,892 6,087
Debt Service City Yards Master Plan 8- - - - - -
ProRata Share Fleet Software 8- - - - - -
Transfer Out WW Fund for Potable Water Pu 8 500,000 - - - - - Trans WTR Low Income Disc 8 (41,000) (41,000) (41,000) (41,000) (41,000) (41,000) SMURRF O&M Costs 8 (288,778) (294,554) (300,445) (306,454) (312,583) (318,835) Stormwater/Wastewater Reimb 8 (1,344,851) (1,413,116) (1,441,378) (1,470,206) (1,499,610) (1,529,602) Com Equip Reimb 8- - - - - -
SWIP Operations 8 (1,043,000) (1,074,290) (1,106,519) (1,139,714) (1,173,906) (1,209,123) CLN BCH - WW SWIP LOAN REPAY 8 (1,950,000) (950,000) (731,336) (731,336) (731,336) (731,336) CLN BCH - WW SWIP LOAN REPAY MEMO 8 (370,430) 218,664 - - - - WTR RES PROT SPEC XFER 8 (73,877) (76,970) (79,279) (81,657) (84,107) (86,888) Interfund Transactions - SUBTOTAL 2 $ (3,557,049) - $ (2,544,547) $ (2,580,637) $ (2,617,467) $ (2,655,055) $ (2,690,034) $ $ 16,868,074 - $ 19,726,755 $ 20,430,647 $ 21,022,577 $ 21,613,517 $ 22,284,299 $ TABLE 9 : FORECASTING ASSUMPTIONSINFLATION FACTORS 3 Basis FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Customer Growth 4 1 -- -- 0.42% 0.42% 0.42% 0.42% 0.42% General Cost Inflation 2 -- -- 2.00% 2.00% 2.00% 2.00% 2.00%Salary Inflation 3 -- -- 4.00% 4.00% 4.00% 4.00% 4.00%Benefits Inflation 4 -- -- 6.00% 6.00% 6.00% 6.00% 6.00%Energy 5 -- -- 5.00% 5.00% 5.00% 5.00% 5.00%Chemicals 6 -- -- 3.00% 3.00% 3.00% 3.00% 3.00%Fuel 7 -- -- 3.00% 3.00% 3.00% 3.00% 3.00%No Escalation 8 -- -- 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenue and expenses for are from PW_51FundForecast-Wastewater2. Some revenues and expenditures found in source file: 3. Inflation factors based on industry standards.4. Customer growth is estimated at 0.42% per year per 2018 Sustainable Water Master Plan.

TOTAL : Wastewater Fund, 51
Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 1 (O&M), 10 of 30
5/28/2025

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Packet Pg. 1163
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 10 : CAPITAL FUNDING SUMMARYCAPITAL FUNDING FORECAST Budget FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Grants $ - - $ - $ - $ - $ - $ City of LA Reimbursement 1,522,242 4,588,000 1,500,000Use of Capacity Fee Reserves 608,093 1,008,360 1,008,527 1,008,698 1,008,872 1,009,049 Use of New SRF Loan 1 - - - - - -
Use of New Revenue Bond Proceeds - - - - - -
Use of Stormwater Fund Reserves 2 1,473,716 1,439,176 1,509,085 1,545,303 1,582,391 1,620,368 Use of Capital R&R Reserve 7,604,144 - 5,817,669 2,694,151 8,333,363 3,470,991 Rate Revenue 5,221,192 14,113,500 - - 848,603 4,147,519 Total Sources of Capital Funds 14,872,605 $ 16,595,576 $ 9,857,523 $ 9,836,152 $ 11,773,229 $ 11,747,927 $ Uses of Capital Funds:

Total Project Costs $ 16,595,576 14,872,605 $ 9,857,523 $ 9,836,152 $ 11,773,229 $ 11,747,927 $ Capital Funding Surplus (Deficiency) - $ - $ - $ - $ - $ - $ Clean Water SRF Loan 1 $ - - $ - $ - $
New Revenue Bond Proceeds $ - - $ - $ - $ - $ - $ Stormwater Fund Transfers for projects 2 $ 1,473,716 1,439,176 $ 1,509,085 $ 1,545,303 $ 1,582,391 $ 1,620,368 $

1. Balance sheet transfer in from Clean Water State Revolving Fund. 2. Stormwater fund 52 contributes to the SWIP project.

Projected
Funding Sources
Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 11 of 30
5/28/2025

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Packet Pg. 1164
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresCAPITAL IMPROVEMENT PROGRAMTABLE 11 : Capital Improvement Program Costs (in Current-Year Dollars)Project Description 1 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 C5104570.689000 - HYPERION CAPITAL PAYMENT $ 3,582,157 3,477,800 $ 3,689,622 $ 3,914,320 $ 3,914,320 $ 4,110,036 C5104600.689000 - ANNUAL STREET/PARK PARKING LOT 250,000 250,000 250,000 250,000 250,000 250,000 C5104860.689000 - WASTEWATER MAIN REPLACEMENT 6,082,157 3,477,800 4,689,622 3,914,320 3,914,320 4,110,036 C5104870.689000 - NON-POTABLE WATER MAIN EXPANS - - - - - C5104880.689000 - MOSS AVE PUMP STATION IMPROVEM 3,960,000 1,272,242 1,500,000 C5105010.689000 - WASTEWATERTENANTIMPROVEMENTC5105030.689000 - HANSEN8SOFTWAREUPGRADE - - - - C5105050.689000 - SCADASYSTEMSUPGRADES 82,000C5105330.689000 - UTILITYBILLINGSOFTWARE 412,707 C5105410.689000 - CITY YARDS PROJECTC5105650.689000 - COLORADOAVEESP-SEWERS/MANHOLC5105840.689000 - WASTEWATERSYSTEMSDATAINTEGRC5105860.689000 - WASTEWATERMODELINGSOFTWARE 79,749C5106120.689000 - CLIMATE ACTION PLANC5106950.689000 - SUSTAINABLE WATER INFRASTRUCTU 907,619 C5106950.689310 - SWIP PROJECT-LOAN 166,320
C5106950.689510 - SWIP PROJECT-CITY FUNDS 2,356,326
C5106950.689540 - 500 BROADWAY/RECYCLED WATER INC5107330.689000 - SUSTAINABLE WATER INFRASTRUCTUC5107510.689000 - INFOMASTER IMPLEMENTATION 278,500 C5107760.689000 - GROUNDWATER RESILIENCY WELL 100,000
C5108590.689000 - INFRASTRUCTURE CONDITION/ASSETC5108600.689000 - WATER & WASTEWATER MASTER PLA 500,000 C5108610.689000 - RECYCLED WATER MASTER PLANC5108620.689000 - SMURRF UPGRADES 500,000 1,256,000I5100010.689000 - FLEETVEHICLEREPLACEMENTPROG 383,000 406,200 383,000 406,205 407,046 427,398 I5100020.689000 - TELECOMMUNICATIONSSERVICES 19,325 20,499 19,903 21,113 21,745 22,832 I5100030.689000 - COMPUTEREQUIPREPLACEPROG 11,685 14,468 12,359 15,559 16,741 17,578 M5197040.689000 - WATER EFFICIENCY COMP GRANTSFleet Software Update/TelematicsProRata share for Fleet Software update/telematics - PlaceholderNew CIP - AMI Smart Water Meters (split 50/50 with water fund)C5108790.689000 - City Yards Improvements 800,000 347,532New CIP - SWIP Maintenance 750,000 500,000 750,000 1,500,000 New CIP - New Pump for MAPS 250,000 250,000Future Projects 3 Total: CIP Program Costs (Current-Year Dollars) 1 $ 16,595,576 14,872,605 $ 9,570,411 $ 9,271,517 $ 10,774,172 $ 10,437,881 $ Rate Funded Projects 12,825,33 $ 14,113,500 6 $ 5,817,669 $ 2,694,151 $ 9,181,96 $ 7,618,509 6 $ Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 12 of 30
5/28/2025

12.B.a
Packet Pg. 1165
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 12 : Capital Improvement Program Costs (in Future-Year Dollars)Project Description 1 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 C5104570.689000 - HYPERION CAPITAL PAYMENT $ 3,582,157 3,477,800 $ 3,800,311 $ 4,152,702 $ 4,277,283 $ 4,625,882 $ C5104600.689000 - ANNUAL STREET/PARK PARKING LOT $ 250,000 250,000 $ 257,500 $ 265,225 $ 273,182 $ 281,377 $ C5104860.689000 - WASTEWATER MAIN REPLACEMENT $ 6,082,157 3,477,800 $ 4,830,311 $ 4,152,702 $ 4,277,283 $ 4,625,882 $ C5104870.689000 - NON-POTABLE WATER MAIN EXPANS $ - - $ - $ - $ - $ - $ C5104880.689000 - MOSS AVE PUMP STATION IMPROVEM$ 3,960,000 1,272,242 $ - $ - $ 1,639,091 $ - $ C5105010.689000 - WASTEWATERTENANTIMPROVEMENT $ - - $ - $ - $ - $ - $ C5105030.689000 - HANSEN8SOFTWAREUPGRADE $ - - $ - $ - $ - $ - $ C5105050.689000 - SCADASYSTEMSUPGRADES $ - 82,000 $ - $ - $ - $ - $ C5105330.689000 - UTILITYBILLINGSOFTWARE $ - 412,707 $ - $ - $ - $ - $ C5105410.689000 - CITY YARDS PROJECT $ - - $ - $ - $ - $ - $ C5105650.689000 - COLORADOAVEESP-SEWERS/MANHO $ - - $ - $ - $ - $ - $ C5105840.689000 - WASTEWATERSYSTEMSDATAINTEGR $ - - $ - $ - $ - $ - $ C5105860.689000 - WASTEWATERMODELINGSOFTWARE $ - 79,749 $ - $ - $ - $ - $ C5106120.689000 - CLIMATE ACTION PLAN $ - - $ - $ - $ - $ - $ C5106950.689000 - SUSTAINABLE WATER INFRASTRUCTU $ - 907,619 $ - $ - $ - $ - $ C5106950.689310 - SWIP PROJECT-LOAN $ - 166,320 $ - $ - $ - $ - $ C5106950.689510 - SWIP PROJECT-CITY FUNDS $ - 2,356,326 $ - $ - $ - $ - $ C5106950.689540 - 500 BROADWAY/RECYCLED WATER IN $ - - $ - $ - $ - $ - $ C5107330.689000 - SUSTAINABLE WATER INFRASTRUCTU $ - - $ - $ - $ - $ - $ C5107510.689000 - INFOMASTER IMPLEMENTATION $ - 278,500 $ - $ - $ - $ - $ C5107760.689000 - GROUNDWATER RESILIENCY WELL $ - 100,000 $ - $ - $ - $ - $ C5108590.689000 - INFRASTRUCTURE CONDITION/ASSET $ - - $ - $ - $ - $ - $ C5108600.689000 - WATER & WASTEWATER MASTER PLA $ - 500,000 $ - $ - $ - $ - $ C5108610.689000 - RECYCLED WATER MASTER PLAN $ - - $ - $ - $ - $ - $ C5108620.689000 - SMURRF UPGRADES $ 1,256,000 500,000 $ - $ - $ - $ - $ I5100010.689000 - FLEETVEHICLEREPLACEMENTPROG $ 383,000 383,000 $ 418,386 $ 430,943 $ 444,790 $ 481,041 $ I5100020.689000 - TELECOMMUNICATIONSSERVICES $ 19,903 19,325 $ 21,114 $ 22,399 $ 23,761 $ 25,698 $ I5100030.689000 - COMPUTEREQUIPREPLACEPROG $ 12,359 11,685 $ 14,902 $ 16,507 $ 18,293 $ 19,784 $ M5197040.689000 - WATER EFFICIENCY COMP GRANTS $ - - $ - $ - $ - $ - $ Fleet Software Update/Telematics $ - - $ - $ - $ - $ - $ ProRata share for Fleet Software update/telematics - Place$ - - $ - $ - $ - $ - $ New CIP - AMI Smart Water Meters (split 50/50 with wate $ - - $ - $ - $ - $ - $ C5108790.689000 - City Yards Improvements $ 800,000 347,532 $ - $ - $ - $ - $ New CIP - SWIP Maintenance $ - - $ 515,000 $ 795,675 $ 819,545 $ 1,688,263 $ New CIP - New Pump for MAPS $ 250,000 250,000 $ - $ - $ - $ - $ Future Projects 3 $ - - $ - $ - $ - $ - $
Total: CIP Program Costs (Future-Year Dollars) $ 16,595,576 14,872,605 $ 9,857,523 $ 9,836,152 $ 11,773,229 $ 11,747,927 $ TABLE 13 : FORECASTING ASSUMPTIONSEconomic Variables 2 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30

0.00% 0.00% 3.00% 3.00% 3.00% 3.00%
Cumulative Construction Cost Multiplier from FY 2024/2 1.00 1.00 1.03 1.0 1.09 6 1.13

1. FY 2017/18 - 2028/29 given from City and assumed for future years. Source file: Item 17-FYE2019_CIP_Budget.pdf, Pages 148 in Wastewater Fund 51 and 51(31)Fund Forecast - Wastewater (May 2019)-final.xlsx, 'Capital (CIP)' tab.

Updates made to CIP per City request on 07.12.2019. Source file: SM Sewer CIP Comparison_JT.xlsx

2. Construction inflator is based on the most current 10 year average of the Engineering News-Record Construction Cost Index. Source: www.enr.com/economics

3. NBS assumed future CIP costs to be the average of CIP costs for years 2019-2023.

Annual Construction Cost Inflation, Per Engineering News Record Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 13 of 30
5/28/2025

12.B.a
Packet Pg. 1166
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 14 : ALLOCATION OF TOTAL CIP COSTS Flow Strength Customer
(VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA)
C5104570.689000 - HYPERION CAPITAL PAYMENT 22,688,255 $ 22,688,255 $ - $ - $ - $ 100% 0% 0% 0% C5104600.689000 - ANNUAL STREET/PARK PARKING LOT 1,500,000 $ 1,500,000 $ - $ - $ - $ 100% 0% 0% 0% C5104860.689000 - WASTEWATER MAIN REPLACEMENT 26,188,255 $ 26,188,255 $ - $ - $ - $ 100% 0% 0% 0% C5104870.689000 - NON-POTABLE WATER MAIN EXPANS - $ - $ - $ - $ - $ 100% 0% 0% 0% C5104880.689000 - MOSS AVE PUMP STATION IMPROVEM$ 6,732,242 6,732,242 $ - $ - $ - $ 100% 0% 0% 0% C5105010.689000 - WASTEWATERTENANTIMPROVEMENT $ - - $ - $ - $ - $ 100% 0% 0% 0% C5105030.689000 - HANSEN8SOFTWAREUPGRADE - $ - $ - $ - $ - $ 100% 0% 0% 0% C5105050.689000 - SCADASYSTEMSUPGRADES 82,000 $ 82,000 $ - $ - $ - $ 100% 0% 0% 0% C5105330.689000 - UTILITYBILLINGSOFTWARE 412,707 $ 412,707 $ - $ - $ - $ 100% 0% 0% 0% C5105410.689000 - CITY YARDS PROJECT - $ - $ - $ - $ - $ 100% 0% 0% 0% C5105650.689000 - COLORADOAVEESP-SEWERS/MANHO - $ - $ - $ - $ - $ 100% 0% 0% 0% C5105840.689000 - WASTEWATERSYSTEMSDATAINTEGR - $ - $ - $ - $ - $ 100% 0% 0% 0% C5105860.689000 - WASTEWATERMODELINGSOFTWARE 79,749 $ 79,749 $ - $ - $ - $ 100% 0% 0% 0% C5106120.689000 - CLIMATE ACTION PLAN - $ - $ - $ - $ - $ 100% 0% 0% 0% C5106950.689000 - SUSTAINABLE WATER INFRASTRUCTU 907,619 $ 907,619 $ - $ - $ - $ 100% 0% 0% 0% C5106950.689310 - SWIP PROJECT-LOAN 166,320 $ 166,320 $ - $ - $ - $ 100% 0% 0% 0% C5106950.689510 - SWIP PROJECT-CITY FUNDS 2,356,326 $ 2,356,326 $ - $ - $ - $ 100% 0% 0% 0% C5106950.689540 - 500 BROADWAY/RECYCLED WATER IN $ - - $ - $ - $ - $ 100% 0% 0% 0% C5107330.689000 - SUSTAINABLE WATER INFRASTRUCTU - $ - $ - $ - $ - $ 100% 0% 0% 0% C5107510.689000 - INFOMASTER IMPLEMENTATION 278,500 $ 278,500 $ - $ - $ - $ 100% 0% 0% 0% C5107760.689000 - GROUNDWATER RESILIENCY WELL 100,000 $ 100,000 $ - $ - $ - $ 100% 0% 0% 0% C5108590.689000 - INFRASTRUCTURE CONDITION/ASSET - $ - $ - $ - $ - $ 100% 0% 0% 0% C5108600.689000 - WATER & WASTEWATER MASTER PLA $ 500,000 500,000 $ - $ - $ - $ 100% 0% 0% 0% C5108610.689000 - RECYCLED WATER MASTER PLAN - $ - $ - $ - $ - $ 100% 0% 0% 0% C5108620.689000 - SMURRF UPGRADES 1,756,000 $ 1,756,000 $ - $ - $ - $ 100% 0% 0% 0% I5100010.689000 - FLEETVEHICLEREPLACEMENTPROG 2,412,849 $ 2,412,849 $ - $ - $ - $ 100% 0% 0% 0% I5100020.689000 - TELECOMMUNICATIONSSERVICES 125,417 $ 125,417 $ - $ - $ - $ 100% 0% 0% 0% I5100030.689000 - COMPUTEREQUIPREPLACEPROG 88,390 $ 88,390 $ - $ - $ - $ 100% 0% 0% 0% M5197040.689000 - WATER EFFICIENCY COMP GRANTS - $ - $ - $ - $ - $ 100% 0% 0% 0% Fleet Software Update/Telematics - $ - $ - $ - $ - $ 100% 0% 0% 0% ProRata share for Fleet Software update/telematics - Place$ - - $ - $ - $ - $ 100% 0% 0% 0% New CIP - AMI Smart Water Meters (split 50/50 with wate $ - - $ - $ - $ - $ 100% 0% 0% 0%C5108790.689000 - City Yards Improvements 1,147,532 $ 1,147,532 $ - $ - $ - $ 100% 0% 0% 0% New CIP - SWIP Maintenance 3,500,000 $ 3,500,000 $ - $ - $ - $ 100% 0% 0% 0% New CIP - New Pump for MAPS 500,000 $ 500,000 $ - $ - $ - $ 100% 0% 0% 0% Future Projects 3 ########### ########### - $ - $ - $ 100% 0% 0% 0% Total Costs ########### ########### - $ - $ - $ 100% 0% 0% 0% Description Total Cost Basis of Classification
Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 2 (CIP), 14 of 30
5/28/2025

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Packet Pg. 1167
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service CITY OF SANTA MONICA EXHIBIT 3
WASTEWATER RATE STUDYDebt ServicePreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 15 : EXISTING AND PLANNED DEBT OBLIGATIONSCURRENT CITY DEBT OBLIGATIONSAnnual Repayment Schedules: FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30Wastewater 2012A Series Bond Principal Payment 1 $ - - $ - $ - $ - $ - $
Interest Payment - - - - - -
Subtotal: Annual Debt Service - $ - $ - $ - $ - $ - $
Coverage Req't (% of debt service) 1 120% 120% 120% 120% 120% 120% Reserve Requirement (total fund balance) 1 $ - - $ - $ - $ - $ - $ Repayment of $13M modification to Loan
Principal Payment $ 650,000 650,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ Interest Payment - - - - - -
Subtotal: Annual Debt Service 650,00 $ 650,00 0 $ 650,00 0 $ 650,00 0 $ 650,00 0 $ 650,00 0 $ 0 Coverage Req't ($-Amnt. above annual payment) 120% 120% 120% 120% 120% 120%Reserve Requirement (total fund balance) $ - - $ - $ - $ - $ - $ California Clean Water SRF Payment Schedule
Principal Payment 2 $ 1,471,751 1,445,728 $ 1,498,242 $ 1,525,211 $ 1,552,664 $ 1,580,612 $ Interest Payment 2 853,218 827,195 800,703 773,735 746,281 718,333 Subtotal: Annual Debt Service 2,298,946 $ 2,298,946 $ 2,298,946 $ 2,298,946 $ 2,298,946 $ 2,298,946 $ Coverage Req't ($-Amnt. above annual payment) 0% 0% 0% 0% 0% 0%Reserve Requirement (total fund balance) $ - - $ - $ - $ - $ - $ State Water Resources Control Board Clean Water SRF (SMURRF) Principal Payment 3 - - - - - -
Interest Payment 3 - - - - - -
Subtotal: Annual Debt Service - $ - $ - $ - $ - $ - $
Coverage Req't ($-Amnt. above annual payment) 0% 0% 0% 0% 0% 0%Reserve Requirement (total fund balance) $ - - $ - $ - $ - $ - $

1. Principal payments found in Source file: Item 7-Wastewater2012ASeriesBondRedeenSchedule_2019-2022.pdf.

Per the official statement, there is a 120% coverage requirement of the operating fund and no reserve fund requirement. Source: Item 7-Wastewater2012ASeriesO

2. Principal and Interest payments found in Source file: Item 7-WastewaterandCleanBeachesFund_SWIP_CWSRFLoanRepayment_8211-110.pdf.

3. Per official statement, no coverage or reserve requirement. Principal and Interest payments found in Source file: Item 7-Wastewater_SMURRF_CWSRFLoan.pdf.

TABLE 16 : EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY WATER RATESExisting Annual Debt Service $ 2,948,94 2,948,946 $ 2,948,94 6 $ 2,948,94 6 $ 2,948,94 6 $ 2,948,94 6 $ 6 Existing Annual Coverage Requirement 120% 120% 120% 120% 120% 120% Existing Debt Reserve Target $ - - $ - $ - $ - $ - $
Budget Projected
NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 Exhibit 3 (Debt), 15 of 30

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Packet Pg. 1168
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYProjected Water Rates Under Existing Rate ScheduleTABLE 17 : CURRENT WASTEWATER RATE SCHEDULE FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
% Increase in Annual Rate
Revenue: 10.00% 10.00% 10.00% 10.00% 3.00%
Residential ($/Dwelling Unit)
Single Family $0.00 $14.06 $15.46 $17.01 $18.71 $19.27
MFR: Duplex + Triplex $0.00 $5.66 $6.23 $6.85 $7.53 $7.76MFR: Fourplex + Larger $0.00 $4.27 $4.69 $5.16 $5.68 $5.85MFR : Individually metered $0.00 $6.87 $7.55 $8.31 $9.14 $9.41 Non-Residential ($/Account)
MFR : Mixed Use $0.00 $137.42 $151.16 $166.27 $182.90 $188.39Commercial - Low $0.00 $40.17 $44.18 $48.60 $53.46 $55.06 Commercial - Medium $85.39 $93.93 $103.33 $113.66 $117.07Commercial - High $0.00 $214.65 $236.12 $259.73 $285.70 $294.27Institutional $0.00 $64.76 $71.23 $78.36 $86.19 $88.78Church/Schools $0.00 $41.30 $45.43 $49.97 $54.97 $56.62Misc Industrial $0.00 $79.11 $87.02 $95.72 $105.30 $108.46Wastewater Only $0.00 $93.76 $103.14 $113.45 $124.80 $128.54 TABLE 18 : CURRENT WASTEWATER RATE SCHEDULE
Alternative 2 : % Fixed, % Volumetric, continued
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
% Increase in Annual Rate
Revenue: 10.00% 10.00% 10.00% 10.00% 3.00%
Residential
Single Family $4.65 85% $3.40 $3.73 $4.11 $4.52 $4.65
MFR: Duplex + Triplex $4.65 90% $3.40 $3.73 $4.11 $4.52 $4.65MFR: Fourplex + Larger $4.65 97% $3.40 $3.73 $4.11 $4.52 $4.65MFR : Individually metered $4.65 99% $3.40 $3.73 $4.11 $4.52 $4.65 Non-Residential
MFR : Mixed Use $4.65 95% $3.15 $3.47 $3.81 $4.19 $4.32 Commercial - Low $4.24 93% $3.31 $3.65 $4.01 $4.41 $4.54 Commercial - Medium $5.55 94% $3.47 $3.82 $4.20 $4.62 $4.76 Commercial - High $6.50 95% $4.60 $5.06 $5.57 $6.13 $6.31 Institutional $4.19 82% $3.38 $3.71 $4.08 $4.49 $4.63
Church/Schools $4.19 81% $3.25 $3.58 $3.94 $4.33 $4.46Misc Industrial $5.16 88% $3.20 $3.52 $3.87 $4.26 $4.39Wastewater Only -- 85% -- -- -- -- -- Wastewater Rate Schedule
Current
Rates
Proposed Wastewater Rates
Volumetric Charges ($/hcf of average winter water consumption) Fixed Charges ($/bi-monthly)
Wastewater Rate Schedule
Current
Rates
Updated
Discharge
Factor
Proposed Wastewater Rates
Prepared by NBSwww.nbsgov.com | 800.676.7516
Exhibit 4 (Current Rates), 16 of 30
5/28/2025

12.B.a
Packet Pg. 1169
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisPreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 19 : CLASSIFICATION OF EXPENSES Fixed % Variable % Fixed $ Variable $
FY 2025/26 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Wastewater Fund, 51Salaries and Benefits
Permanent Employees $ 2,195,101 2,310,633 $ - $ - $ 115,532 $ 95% 0% 0% 5% 100% 0% $ - 2,310,633 $ Year-End Cash Outs - - - - - 95% 0% 0% 5% 100% 0% $ - - $ Vacation Lump Sum Pays - - - - - 95% 0% 0% 5% 100% 0% $ - - $ Standby Pay 21,906 23,059 - - 1,153 95% 0% 0% 5% 100% 0% $ - 23,059 $ Overtime 43,053 45,319 - - 2,266 95% 0% 0% 5% 100% 0% $ - 45,319 $ Temporary Employees - - - - - 95% 0% 0% 5% 100% 0% $ - - $ Medicare - Misc. Employees 30,510 32,116 - - 1,606 95% 0% 0% 5% 100% 0% $ - 32,116 $ Workers' Comp Insurance 18,557 19,534 - - 977 95% 0% 0% 5% 100% 0% $ - 19,534 $ Medical - Misc. Employees 492,604 518,530 - - 25,927 95% 0% 0% 5% 100% 0% $ - 518,530 $ Med. Trust - Misc. Employees 46,064 48,488 - - 2,424 95% 0% 0% 5% 100% 0% $ - 48,488 $ Dental 26,209 27,588 - - 1,379 95% 0% 0% 5% 100% 0% $ - 27,588 $ Vision 3,010 3,168 - - 158 95% 0% 0% 5% 100% 0% $ - 3,168 $ Employee Health Contribution (39,415) (41,489) - - (2,074) 95% 0% 0% 5% 100% 0% $ - (41,489) $ Retirement - Misc. Employees 566,158 595,956 - - 29,798 95% 0% 0% 5% 100% 0% $ - 595,956 $ Retirement - As Needed - - - - - 95% 0% 0% 5% 100% 0% $ - - $ Unemployment 10,033 10,561 - - 528 95% 0% 0% 5% 100% 0% $ - 10,561 $ EAP 397 418 - - 21 95% 0% 0% 5% 100% 0% $ - 418 $ DCAP 732 770 - - 39 95% 0% 0% 5% 100% 0% $ - 770 $ Life Insurance and AD&D 3,467 3,649 - - 182 95% 0% 0% 5% 100% 0% $ - 3,649 $ Disability Insurance 14,419 13,698 - - 721 95% 0% 0% 5% 100% 0% $ - 14,419 $ EBB Budget Request: Add 1 FTE Water Chemist 176,267 185,544 - - 9,277 95% 0% 0% 5% 100% 0% $ - 185,544 $ EBB Budget Request: Add 1 FTE SCADA Superv 105,200 110,737 - - 5,537 95% 0% 0% 5% 100% 0% $ - 110,737 $ Equity Adjustment for ALL POSITIONS (10%) 379,826 360,835 - - 18,991 95% 0% 0% 5% 100% 0% $ - 379,826 $ Placeholder - - - - - 95% 0% 0% 5% 100% 0% $ - - $ Salaries and Benefits - SUBTOTAL $ 4,074,385 4,288,826 $ - $ - $ 214,441 $ 95% 0% 0% 5% Strength Customer Basis of Classification Budget Categories Total Revenue Collection Prepared by NBS for the City of VictorvilleWastewater Rate Study Funct. & Classification, 17 of 30

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Packet Pg. 1170
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisPreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 20 : CLASSIFICATION OF EXPENSES, CONTINUED FY 2025/26 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fixed % Variable % Fixed $ Variable $ Wastewater Fund, 51Supplies and Expenses
Vehicles - Fuels / Lubrication $ 2,320 2,320 $ - $ - $ - $ 100% 0% 0% 0% 100% 0% $ - 2,320 $ CNG Fuel 42,467 42,467 - - - 100% 0% 0% 0% 100% 0% $ - 42,467 $ Reimburse Water Fund 409,983 409,983 - - - 100% 0% 0% 0% 100% 0% $ - 409,983 $ Utilities Billing Services - 345,013 - - 345,013 0% 0% 0% 100% 100% 0% $ - 345,013 $ Metered Postage - 10,200 - - 10,200 0% 0% 0% 100% 100% 0% $ - 10,200 $ Indirect Cost Allocation - 773,584 - - 773,584 0% 0% 0% 100% 100% 0% $ - 773,584 $ Memberships and Dues - 6,545 - - 6,545 0% 0% 0% 100% 100% 0% $ - 6,545 $ Rent - - - - - 0% 0% 0% 100% 100% 0% $ - - $ Other Operating Rent - 235,709 - - 235,709 0% 0% 0% 100% 100% 0% $ - 235,709 $ Reimburse Engineering Office - - - - - 0% 0% 0% 100% 100% 0% $ - - $ Office Supplies / Expense - 15,300 - - 15,300 0% 0% 0% 100% 100% 0% $ - 15,300 $ Discounts Available - - - - - 0% 0% 0% 100% 100% 0% $ - - $ Discounts Lost - - - - - 0% 0% 0% 100% 100% 0% $ - - $ SPEC Department Supplies 160,338 160,338 - - - 100% 0% 0% 0% 100% 0% $ - 160,338 $ CHEMICALS-SWIP 42,656 42,656 - - - 100% 0% 0% 0% 100% 0% $ - 42,656 $ Rideshare and Parking Programs 2,663 2,663 - - - 100% 0% 0% 0% 100% 0% $ - 2,663 $ Uniform / Protective Clothing 20,349 21,420 - - 1,071 95% 0% 0% 5% 100% 0% $ - 21,420 $ Utilities - Electricity 2,775 2,921 - - 146 95% 0% 0% 5% 100% 0% $ - 2,921 $ Utilities - Water - 1,900 - - 1,900 0% 0% 0% 100% 100% 0% $ - 1,900 $ Strength Customer Basis of Classification Budget Categories Total Revenue Flow Prepared by NBS for the City of VictorvilleWastewater Rate Study Funct. & Classification, 18 of 30

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Packet Pg. 1171
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisPreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 21 : CLASSIFICATION OF EXPENSES, CONTINUED FY 2025/26 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Fixed % Variable % Fixed $ Variable $ Wastewater Fund, 51
Utilities - Light/Power - SWIP 1,358,455 1,358,455 - - - 100% 0% 0% 0% 100% 0% $ - 1,358,455 $ Utilities - Water - SWIP - 1,560 - - 1,560 0% 0% 0% 100% 100% 0% $ - 1,560 $ Utilities - Telephone 20,242 20,242 - - - 100% 0% 0% 0% 100% 0% $ - 20,242 $ Vehicle Management Fund - Maint. 201,962 201,962 - - - 100% 0% 0% 0% 100% 0% $ - 201,962 $ Computer Eqt. / Software Maint. 78,613 78,613 - - - 100% 0% 0% 0% 100% 0% $ - 78,613 $ Sewage Pump Plant Maint. 319,611 532,685 106,537 106,537 - 60% 20% 20% 0% 0% 100% $ 532,685 - $ Storm Drain Maintenance 99,079 165,132 33,026 33,026 - 60% 20% 20% 0% 100% 0% $ - 165,132 $ SMURRF Plant Maintenance 344,746 344,746 - - - 100% 0% 0% 0% 100% 0% $ - 344,746 $ AWTF, Civic Lot O&M 445,897 445,897 - - - 100% 0% 0% 0% 100% 0% $ - 445,897 $ Conferences / Meetings / Travel - 16,365 - - 16,365 0% 0% 0% 100% 100% 0% $ - 16,365 $ Food Purchases 1,117 1,117 - - - 100% 0% 0% 0% 100% 0% $ - 1,117 $ Training Costs - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Training 10,200 20,400 4,080 4,080 2,040 50% 20% 20% 10% 100% 0% $ - 20,400 $ Bank Fees - 10,636 - - 10,636 0% 0% 0% 100% 100% 0% $ - 10,636 $ General Liability - Auto - 1,294,496 - - 1,294,496 0% 0% 0% 100% 100% 0% $ - 1,294,496 $ Property Insurance - 116,460 - - 116,460 0% 0% 0% 100% 100% 0% $ - 116,460 $ Interest Expense - Bonds - - - - - 0% 0% 0% 100% 100% 0% $ - - $ LA Sewage Disposal - 7,151,659 1,430,332 1,430,332 4,290,995 0% 20% 20% 60% 100% 0% $ - 7,151,659 $ ASSFC Pass-Thru - 390,993 - - 390,993 0% 0% 0% 100% 100% 0% $ - 390,993 $ SCADA O&M - 61,497 - - 61,497 0% 0% 0% 100% 100% 0% $ - 61,497 $ Transfer Station Fee - 9,654 - - 9,654 0% 0% 0% 100% 100% 0% $ - 9,654 $ Fiscal Agent Fees - 2,234 - - 2,234 0% 0% 0% 100% 100% 0% $ - 2,234 $ Contractual Services - 275,400 - - 275,400 0% 0% 0% 100% 100% 0% $ - 275,400 $ Cont SVCS-SWIP 2,526,937 2,526,937 - - - 100% 0% 0% 0% 100% 0% $ - 2,526,937 $ SWIP City 328,787 547,979 109,596 109,596 - 60% 20% 20% 0% 100% 0% $ - 547,979 $ Employee Medical Exams 5,697 5,697 - - - 100% 0% 0% 0% 100% 0% $ - 5,697 $ Professional Services 309,764 309,764 - - - 100% 0% 0% 0% 100% 0% $ - 309,764 $ Supplies and Expenses - SUBTOTAL $ 6,734,659 17,963,599 $ 1,683,571 $ 1,683,571 $ 7,861,798 $ 37% 9% 9% 44% Strength Customer Basis of Classification Budget Categories Total Revenue Flow Prepared by NBS for the City of VictorvilleWastewater Rate Study Funct. & Classification, 19 of 30

12.B.a
Packet Pg. 1172
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisPreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 22 : CLASSIFICATION OF EXPENSES, CONTINUED FY 2025/26 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Wastewater Fund, 51 Fixed % Variable % Fixed $ Variable $ Retirement and OPEB
Retirement - Misc. Employees - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Retirement - GASB 68 - - - - - 100% 0% 0% 0% 100% 0% $ - - $ PERS Paydown Savings - - - - - 100% 0% 0% 0% 100% 0% $ - - $ OPEB Payment ARC 34,358 34,358 - - - 100% 0% 0% 0% 100% 0% $ - 34,358 $ Reimbursement from OPEB Trust (15,481) (15,481) - - - 100% 0% 0% 0% 100% 0% $ - (15,481) $ OPEB Expense - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Retirement and OPEB - SUBTOTAL $ 18,877 18,877 $ - $ - $ - $ 100% 0% 0% 0% Environmental Reimbursement 470,193 470,193 - - - 100% 0% 0% 0% 100% 0% $ - 470,193 $ Water/Wastewater Transfer 303,664 303,664 - - - 100% 0% 0% 0% 100% 0% $ - 303,664 $ SCADA Reimbursement 94,518 94,518 - - - 100% 0% 0% 0% 100% 0% $ - 94,518 $ Clean Beaches Transfer - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Water/Wastewater Reimb 183,108 183,108 - - - 100% 0% 0% 0% 100% 0% $ - 183,108 $ Transfer (Budget Only) - - - - - 100% 0% 0% 0% 100% 0% $ - - $ GIS Analyst for PW 28,528 28,528 - - - 100% 0% 0% 0% 100% 0% $ - 28,528 $ Admin Analyst Reimb 1,316 1,316 - - - 100% 0% 0% 0% 100% 0% $ - 1,316 $ ADA Coord Reimb 5,392 5,392 - - - 100% 0% 0% 0% 100% 0% $ - 5,392 $ Debt Service City Yards Master Plan - - - - - 100% 0% 0% 0% 100% 0% $ - - $ ProRata Share Fleet Software - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Transfer Out WW Fund for Potable Water Purc - - - - - 100% 0% 0% 0% 100% 0% $ - - $ Trans WTR Low Income Disc (41,000) (41,000) - - - 100% 0% 0% 0% 100% 0% $ - (41,000) $ SMURRF O&M Costs (294,554) (294,554) - - - 100% 0% 0% 0% 100% 0% $ - (294,554) $ Stormwater/Wastewater Reimb (1,413,116) (1,413,116) - - - 100% 0% 0% 0% 100% 0% $ - (1,413,116) $ Com Equip Reimb - - - - - 100% 0% 0% 0% 100% 0% $ - - $ SWIP Operations (1,074,290) (1,074,290) - - - 100% 0% 0% 0% 100% 0% $ - (1,074,290) $ CLN BCH - WW SWIP LOAN REPAY (950,000) (950,000) - - - 100% 0% 0% 0% 100% 0% $ - (950,000) $ CLN BCH - WW SWIP LOAN REPAY MEMO 218,664 218,664 - - - 100% 0% 0% 0% 100% 0% $ - 218,664 $ WTR RES PROT SPEC XFER (76,970) (76,970) - - - 100% 0% 0% 0% 100% 0% $ - (76,970) $ Interfund Transactions - SUBTOTAL $ (2,544,547) (2,544,547) $ - $ - $ - $ 100% 0% 0% 0% $ 8,283,374 19,726,755 $ 1,683,571 $ 1,683,571 $ 8,076,240 $ 42% 9% 9% 41% Strength Customer Basis of Classification
Sub-Total: Wastewater (51) Expenses
Budget Categories
Total
Revenue
Flow
Prepared by NBS for the City of VictorvilleWastewater Rate Study Funct. & Classification, 20 of 30

12.B.a
Packet Pg. 1173
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisPreliminary Draft Subject to Material Revision, Do Not Cite or DistributeTABLE 23 : CLASSIFICATION OF EXPENSES, CONTINUED FY 2025/26 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA) Debt and Capital Expenditures Fixed % Variable % Fixed $ Variable $ Existing Debt Service:

Wastewater 2012A Series Bond - - - - - 60% 20% 20% 0% 100% 0% $ - - $ $13M addition to SRF 390,000 650,000 97,500 97,500 65,000 60% 15% 15% 10% 100% 0% $ - 650,000 $ California Clean Water SRF 1,149,473 2,298,946 459,789 459,789 229,895 50% 20% 20% 10% 100% 0% $ - 2,298,946 $ SWRCB Clean Water SRF (SMURRF) - - - - - 60% 20% 20% 0% 100% 0% $ - - $ New Debt Service - - - - - 50% 20% 20% 10% 100% 0% $ - - $ Rate-Funded Capital Expenses 6,068,805 14,113,500 2,540,430 2,540,430 2,963,835 43% 18% 18% 21% 100% 0% $ - 14,113,500 $ TOTAL REVENUE REQUIREMENTS $ 15,891,651 36,789,201 $ 4,781,290 $ 4,781,290 $ 11,334,969 $ 43% 13% 13% 31% $ 532,685 36,256,516 $ Less: Non-Rate Revenues 98.6% 1.4%City of LA - Wastewater Repair (42,000) (280,000) (70,000) (70,000) (98,000) 15% 25% 25% 35% TRUEConnection / Capacity Permit FeesWastewater Services ChargesWastewater Capital Facility FeesSaddle Fees (12,892) (85,946) (21,487) (21,487) (30,081) 15% 25% 25% 35% Industrial Waste Fees (90,000) (600,000) (150,000) (150,000) (210,000) 15% 25% 25% 35% Admin Fines / Penalties - - - - - 15% 25% 25% 35%
Unrealized Gain (Loss) - - - - - 15% 25% 25% 35%
ASSFC Pass-Thru (60,000) (400,000) (100,000) (100,000) (140,000) 15% 25% 25% 35% Wastewater Misc. Non-Operating - - - - - 15% 25% 25% 35% Int. Wastewater Bond Proceeds - - - - - 15% 25% 25% 35% Alt. Fuel Tax Credit - - - - - 15% 25% 25% 35%
Interest Income (105,739) (704,928) (176,232) (176,232) (246,725) 15% 25% 25% 35% NET REVENUE REQUIREMENTS $ 15,581,020 34,718,327 $ 4,263,572 $ 4,263,572 $ 10,610,164 $ Allocation of Revenue Requirements 100.0% 44.9% 12.3% 12.3% 30.6% TABLE 24 : ADJUSTMENTS TO CLASSIFICATIONS OF EXPENSESAdjustment to Current Rate Level: Total (VOL) (BOD) (TSS) (CA)Target Rate Rev. After Rate Increases $22,242,026 Projected Rate Revenue at Current Rates $20,786,940
Projected Rate Increase 7%
Adjusted Net Revenue Req'ts $22,242,026 9,981,859 $ 2,731,424 $ 2,731,424 $ 6,797,319 $ Percent of Revenue 100.0% 44.9% 12.3% 12.3% 30.6%
Strength Customer Basis of Classification
Total Cost Distribution
to Fixed/ Variable
Budget Categories
Total
Revenue
Flow
Prepared by NBS for the City of VictorvilleWastewater Rate Study Funct. & Classification, 21 of 30

12.B.a
Packet Pg. 1174
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisTABLE 26 : DEVELOPMENT OF THE VOLUME ALLOCATION FACTOR Customer Class
Number
of Accounts 1
Number
of EDUs 1
Annual
Volume
(hcf)1
Lowest
4-Months
Water Use
(hcf)1,2
Estimated
Wastewater
Flow
Discharge
Factors
Adjusted
Annual
Volume (hcf) 3
Percentage
of Adjusted
Volume
Calculation Components
Single Family 7,541 7,541 1,205,541 341,641 85% 1,024,922 785,090 24.6% MFR: Duplex + Triplex 2,674 1,112 144,680 43,631 90% 130,894 100,264 3.1% MFR: Fourplex + Larger 40,480 3,850 1,666,254 539,142 97% 1,617,427 1,238,949 38.9% MFR : Individually metered 1,601 1,572 79,047 25,957 99% 77,870 59,649 1.9% MFR : Mixed Use 989 34 58,693 18,664 95% 55,991 42,889 1.3% Commercial - Low 5,122 1,665 696,163 216,951 93% 650,854 498,554 15.6% Commercial - Medium 204 33 27,700 8,697 94% 26,092 19,987 0.6% Commercial - High 3,431 301 466,294 148,321 95% 444,963 340,841 10.7% Institutional 457 77 62,049 17,027 82% 51,082 39,129 1.2% Church/Schools 627 151 85,252 23,156 81% 69,468 53,212 1.7% Misc Industrial 78 11 10,565 3,108 88% 9,323 7,141 0.2% Wastewater Only - 34 - - 85% - - 0.0%
Total 16,381 63,203 4,502,239 1,386,295 4,158,885 92% 3,185,706 100.0% 3,185,706 Flow (hcf/yr.)

0.77 Flow Adj. Factor

1. Consumption, accounts and EDUs from FY 23-24.2. The four consecutive month period of lowest water usage during Fiscal Year 23/24, for each customer class.3. NBS adjusted the average winter consumption to the outgoing wastewater flows pumped from the City's Moss Avenue Pump Station to the City of Los Angeles' Hyperion Water Reclamation Plant for treatment and disposal.

Prepared by NBSwww.nbsgov.com | 800.676.7516
Sewer Allocation Factors, 22 of 30
5/28/2025

12.B.a
Packet Pg. 1175
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisTABLE 27 : DEVELOPMENT OF THE STRENGTH ALLOCATION FACTOR Customer Class
Adjusted
Annual Flow
(hcf)
Average
Strength
Factor
(mg/l)
Calculated
BOD
(lbs./yr.)
Adjusted
BOD
(lbs./yr.)
Percent of
Total
Average
Strength
Factor
(mg/l)
Calculated
TSS
(lbs./yr.)
Adjusted TSS
(lbs./yr.) Percent of Total
Single Family 785,090 225 1,101,969 1,149,915 18.7% 225 1,101,969 848,382 18.7% MFR: Duplex + Triplex 100,264 225 140,733 146,857 2.4% 225 140,733 108,348 2.4%MFR: Fourplex + Larger 1,238,949 225 1,739,016 1,814,680 29.5% 225 1,739,016 1,338,830 29.5% MFR : Individually metered 59,649 225 83,724 87,367 1.4% 225 83,724 64,457 1.4% MFR : Mixed Use 42,889 225 60,200 62,820 1.0% 225 60,200 46,347 1.0%Commercial - Low 498,554 150 466,521 486,819 7.9% 150 466,521 359,164 7.9% Commercial - Medium 19,987 600 74,810 78,064 1.3% 600 74,810 57,594 1.3% Commercial - High 340,841 1000 2,126,278 2,218,790 36.1% 1000 2,126,278 1,636,974 36.1% Institutional 39,129 140 34,174 35,660 0.6% 125 30,512 23,491 0.5% Church/Schools 53,212 140 46,474 48,496 0.8% 125 41,495 31,946 0.7%Misc Industrial 7,141 290 12,919 13,481 0.2% 550 24,502 18,864 0.4%Wastewater Only - 225 0- 0.0% 225 0 - 0.0% Total 3,185,706 5,886,818 6,142,950 100% 5,889,760 4,534,395 100% Target, from WWTP Data 6,142,950 BOD (lbs./yr.) 4,534,395 TSS (lbs./yr.) BOD Adj. Factor 0.77 1.04 TSS Adj. Factor

1. Consumption, accounts and EDUs from FY 23-24.2. Typical strength factors for BOD and TSS are derived from the ASSFC Report for March-April 2018-19 and calculated for Commercial customers with weighted averages.

Source files: ASSFC_Report_March-April_2018-19_to_LASAN.xlsx Biochemical Oxygen Demand (BOD) Total Suspended Solids (TSS) Prepared by NBSwww.nbsgov.com | 800.676.7516
Sewer Allocation Factors, 23 of 30
5/28/2025

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Packet Pg. 1176
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYCost of Service AnalysisTABLE 28 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTOR Customer Class
Number
of Accounts 1
Percentage
of Accounts
Single Family 7,541 46.04%
MFR: Duplex + Triplex 1,112 6.79%MFR: Fourplex + Larger 3,850 23.50%MFR : Individually metered 1,572 9.60%MFR : Mixed Use 34 0.21% Commercial - Low 1,665 10.16%Commercial - Medium 33 0.20% Commercial - High 301 1.84%Institutional 77 0.47%
Church/Schools 151 0.92%Misc Industrial 11 0.07%Wastewater Only 34 0.21% Total 16,381 100%

1. Consumption, accounts and EDUs from FY 23-24.

Prepared by NBSwww.nbsgov.com | 800.676.7516
Sewer Allocation Factors, 24 of 30
5/28/2025

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Packet Pg. 1177
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Cost of Service AnalysisPreliminary Draft - Do Not Cite or DistributeTABLE 30 : ALLOCATION OF REVENUE REQUIREMENTS BY CUSTOMER CLASS

BOD TSS
Net Revenue Requirements 1 $ 2,731,424 9,981,859 $ 2,731,424 $ 6,797,319 $ 22,242,026 $ --

44.9% 12.3% 12.3% 30.6% 100.0%
Single Family $ 511,302.66 2,459,944 $ 511,047 $ 3,129,148 $ $ 6,611,442 29.7% MFR: Duplex + Triplex 65,299 314,161 65,266 461,426 906,152 4.1% MFR: Fourplex + Larger 806,886 3,882,033 806,483 1,597,563 7,092,965 31.9% MFR : Individually metered 38,847 186,899 38,828 652,304 916,878 4.1% MFR : Mixed Use 27,932 134,387 27,918 14,108 204,346 0.9% Commercial - Low 216,461 1,562,132 216,353 690,894 2,685,840 12.1% Commercial - Medium 34,711 62,624 34,694 13,693 145,722 0.7% Commercial - High 986,571 1,067,968 986,078 124,900 3,165,518 14.2% Institutional 15,856 122,603 14,150 31,951 184,560 0.8% Church/Schools 21,563 166,732 19,243 62,658 270,197 1.2% Misc Industrial 5,994 22,376 11,363 4,564 44,298 0.2%
Wastewater Only - - - 14,108 14,108 0.1%
$ 2,731,424 9,981,859 $ 2,731,424 $ 6,797,319 $ 22,242,026 $ 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class. Multi-Family Residential = MFR Customer Class
Cost Classification Components Cost-ofService Net
Revenue
% of COS Net
Revenue
Req'ts. Volume Treatment Customer Related
NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, 25 of 30

12.B.a
Packet Pg. 1178
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Cost of Service AnalysisPreliminary Draft - Do Not Cite or DistributeTABLE 31 : RATE DESIGN - SUMMARY OF REVENUE REQUIREMENTS COS
Rev. Req't
% of COS
Rev. Req't.
% Fixed
Revenue
% Variable
Revenue
Revenue from
Fixed Charges
Revenue from
Volumetric
Charges
Single Family $ 29.7% 6,611,442 15% 85% 1,004,543 $ 5,606,900 $ $ 6,611,442 MFR: Duplex + Triplex $ 4.1% 906,152 16% 84% 142,529 $ 763,624 $ $ 906,152 MFR: Fourplex + Larger $ 31.9% 7,092,965 23% 77% 1,631,737 $ 5,461,228 $ $ 7,092,965 MFR : Individually metered $ 4.1% 916,878 12% 88% 105,954 $ 810,923 $ $ 916,878MFR : Mixed Use $ 0.9% 204,346 22% 78% 44,277 $ 160,069 $ $ 204,346Commercial - Low $ 12.1% 2,685,840 23% 77% 620,751 $ 2,065,089 $ $ 2,685,840 Commercial - Medium $ 0.7% 145,722 19% 81% 27,598 $ 118,124 $ $ 145,722Commercial - High $ 14.2% 3,165,518 21% 79% 650,324 $ 2,515,194 $ $ 3,165,518 Institutional $ 0.8% 184,560 25% 75% 46,408 $ 138,153 $ $ 184,560Church/Schools $ 1.2% 270,197 21% 79% 57,822 $ 212,374 $ $ 270,197 Misc Industrial $ 0.2% 44,298 19% 81% 8,532 $ 35,766 $ $ 44,298 Wastewater Only $ 0.1% 14,108 100% 0% 14,108 $ - $ $ 14,108 Total 22,242,026 $ 100.0% 4,354,582 $ 17,887,444 $ $ 22,242,026 Percent of Total Revenue Collected 20% 80% - $ Check
Customer Class
Cost-of-Service Net Revenue
Requirements Net Revenue Allocation
NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, 26 of 30

12.B.a
Packet Pg. 1179
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Cost of Service AnalysisPreliminary Draft - Do Not Cite or DistributeTABLE 32 : PROPOSED WASTEWATER RATES Customer Class
No. of
Accounts 1
No. of
Dwelling
Units 1
Estimated
Sewage
Volume2
Revenue
from Fixed
Charges
Revenue from
Volumetric
Charges
Discharge
Factor
Bi-Monthly
Fixed Charge 3
Volumetric
Charge Per
hcf4
Residential Per DU
Single Family 7,541 7,541 785,090 1,004,543 $ 5,606,900 $ 85% $22.20 $4.92MFR: Duplex + Triplex 1,112 2,674 100,264 142,529 $ 763,624 $ 90% $8.88 $4.92MFR: Fourplex + Larger 3,850 40,480 1,238,949 1,631,737 $ 5,461,228 $ 97% $6.72 $4.92MFR : Individually metered 1,572 1,601 59,649 105,954 $ 810,923 $ 99% $11.03 $4.92 Subtotal 14,075 52,296 2,183,952 2,884,762 $ 12,642,675 $ Non-Residential Per Account
MFR : Mixed Use 989 34 42,889 44,277 $ 160,069 $ 95% $217.04 $4.92 Commercial - Low 5,122 1,665 498,554 620,751 $ 2,065,089 $ 93% $62.14 $4.43Commercial - Medium 204 33 19,987 27,598 $ 118,124 $ 94% $139.39 $6.27 Commercial - High 3,431 301 340,841 650,324 $ 2,515,194 $ 95% $360.09 $7.73 Institutional 457 77 39,129 46,408 $ 138,153 $ 82% $100.45 $4.29 Church/Schools 627 151 53,212 57,822 $ 212,374 $ 81% $63.82 $4.90 Misc Industrial 78 11 7,141 8,532 $ 35,766 $ 88% $129.27 $5.68Wastewater Only - 34 - 14,108 $ - $ 85% $135.91 N/A Subtotal 2,306 10,907 1,001,753 1,469,820 $ 5,244,769 $ -- -- Total 16,381 63,203 3,185,706 4,354,582 $ 17,887,444 $ -- --

1. Consumption, accounts and EDUs from Source File: Customer Data 23_24.2. Estimated sewage volume is annual water consumption multiplied by the discharge factor.3. Fixed charges are designed to collect 20% of the total revenue requirement. For residential customers, the charges are per dwelling unit. For non-residential customers, the charges are per account.4. Volumetric charges are designed to collect 80% of the total revenue requirement.

NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, 27 of 30

12.B.a
Packet Pg. 1180
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Cost of Service AnalysisPreliminary Draft - Do Not Cite or Distribute NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, 28 of 30

12.B.a
Packet Pg. 1181
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Rate DevelopmentTABLE 33 : CURRENT VS. PROPOSED WASTEWATER RATES (BI-MONTHLY) FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
% Increase in Annual Rate Revenue: 7.00% 7.00% 7.00% 6.00% 6.00% Residential ($/Dwelling Unit)
Single Family $19.27 $22.20 $23.76 $25.42 $26.94 $28.56MFR: Duplex + Triplex $7.76 $8.88 $9.51 $10.17 $10.78 $11.43MFR: Fourplex + Larger $5.85 $6.72 $7.19 $7.69 $8.15 $8.64MFR : Individually metered $9.41 $11.03 $11.80 $12.63 $13.39 $14.19 Non-Residential ($/Account)
MFR : Mixed Use $188.39 $217.04 $232.24 $248.49 $263.40 $279.21Commercial - Low $55.06 $62.14 $66.49 $71.14 $75.41 $79.93Commercial - Medium $117.07 $139.39 $149.14 $159.58 $169.16 $179.31Commercial - High $294.27 $360.09 $385.30 $412.27 $437.00 $463.22Institutional $88.78 $100.45 $107.48 $115.00 $121.90 $129.22Church/Schools $56.62 $63.82 $68.29 $73.07 $77.45 $82.10Misc Industrial $108.46 $129.27 $138.32 $148.00 $156.88 $166.29Wastewater Only $128.54 $135.91 $145.43 $155.61 $164.94 $174.84 Fixed Charges ($/bi-monthly)
Wastewater Rate Schedule Current
Rates
Proposed Wastewater Rates
Prepared by NBSwww.nbsgov.com | 800.676.7516
Sewer Current & Proposed Rates, 29 of 30
5/28/2025

12.B.a
Packet Pg. 1182
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service

CITY OF SANTA MONICA
WASTEWATER RATE STUDYWastewater Rate DevelopmentTABLE 34 : CURRENT VS. PROPOSED WASTEWATER RATES (BI-MONTHLY) FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
% Increase in Annual Rate Revenue: 7.00% 7.00% 7.00% 6.00% 6.00% Residential
Single Family $4.65 85% $4.92 $5.27 $5.63 $5.97 $6.33MFR: Duplex + Triplex $4.65 90% $4.92 $5.27 $5.63 $5.97 $6.33MFR: Fourplex + Larger $4.65 97% $4.92 $5.27 $5.63 $5.97 $6.33MFR : Individually metered $4.65 99% $4.92 $5.27 $5.63 $5.97 $6.33 Non-Residential
MFR : Mixed Use $4.65 95% $4.92 $5.27 $5.63 $5.97 $6.33Commercial - Low $4.24 93% $4.43 $4.74 $5.07 $5.38 $5.70Commercial - Medium $5.55 94% $6.27 $6.71 $7.18 $7.61 $8.07Commercial - High $6.50 95% $7.73 $8.27 $8.85 $9.38 $9.95Institutional $4.19 82% $4.29 $4.59 $4.91 $5.20 $5.52Church/Schools $4.19 81% $4.90 $5.24 $5.61 $5.94 $6.30Misc Industrial $5.16 88% $5.68 $6.07 $6.50 $6.89 $7.30Wastewater Only -- 85% -- -- -- -- -- Volumetric Charges ($/hcf of average winter water consumption) Discharge
Factor
Wastewater Rate Schedule Current
Rates
Proposed Wastewater Rates
Prepared by NBSwww.nbsgov.com | 800.676.7516
Sewer Current & Proposed Rates, 30 of 30
5/28/2025

12.B.a
Packet Pg. 1183
Attachment: Santa Monica Water and Sewer Rate Study Report [Revision 2] (7063 : Wastewater Service The public hearing will be conducted pursuant to and in compliance with Article XIIID of the California State Constitution and the Proposition 218 Omnibus Implementation Act. This notice is being sent to all property owners, who may submit a written protest to the proposed rate changes. The City of Santa Monica is committed to keeping its customers well informed throughout the process. More information about the rates included in this notice and how to participate is available online at: santamonica.gov/waterrates.

NOTICE OF PUBLIC HEARING
Proposed Increase of
Water and Wastewater Service Rates
How You Can Participate
If you have any questions or comments about the proposed rates, you may participate in the following ways:

Public Hearing Participation. Members of the public are welcome to attend the in-person public hearing on Tuesday, June 10, 2025 at 5:30 p.m. at Santa Monica City Hall, 1685 Main St. Santa Monica, CA 90401. You will have an opportunity to speak, but verbal comments alone do not qualify as a formal protest.

Write. Any property owner that is a part of the City’s water and wastewater service area or a customer of record, may submit a written protest to the proposed increases to the service rates. Only one protest will be counted per identified parcel or customer. Each protest must (1) be in writing on letter-sized paper; (2) state that the identified property owner or customer is in opposition to the proposed water and wastewater service rates; (3) provide the location of the identified parcels (by assessor’s parcel number or street address or account number); and (4) include the signature of the property owner or customer submitting the protest.

Written protests for each proposed rate adjustment may be submitted by mail to the City Clerk, or at the Public Hearing, so long as received prior to the conclusion of the Public Hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in-person to the City Clerk, that the enclosed protest is for the proposed Water and Wastewater Service Rates. Protests submitted by e-mail, facsimile, or other electronic means will not be accepted.

Prior to the Public Hearing, please mail or hand-deliver written protests to:

City of Santa Monica, Office of the City Clerk
RE: Public Hearing On Proposed Water and Wastewater Service Rates 1685 Main Street, Santa Monica, CA 90401
You may also hand-deliver written protests at the City Council Meeting to the City Clerk prior to the conclusion of the Public Hearing held at the above address. The City Council will hear and consider all oral and written testimony concerning the proposed wastewater service rates.

Pursuant to California Government Code Section 53759 there is a 120-day statute of limitations for challenging the rates in this notice from the date the City Council adopts the resolution approving these rates.

Objections. If, at the conclusion of the Public Hearing, written protests received regarding the proposed increases to the water and wastewater service rates are not presented by a majority (50% plus 1) of property owners of the identified parcels upon which they are proposed to be imposed, the City Council will be authorized to adopt the proposed rates.

A sample protest form, the protest tabulation procedures, and the Water and Wastewater Rate Study are available online at santamonica.gov/waterrates.

12.B.b
Packet Pg. 1184 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Proposed Water Rate Charges
Customer Class &
Meter Size
Proposed Bi-Monthly Volumetric Rates
Tier 1 Breakpoint ₁ Tier 2 Breakpoint ₂ Tier 3 Breakpoint ₃ Single-Family
All Customers
Per Unit
0-10 HCF 11-18 HCF 19+ HCF
Multi-Family
All Customers
Per Unit
0-7 HCF 8-13 HCF 14+ HCF
Non-Residential Per Meter
3/4 inch 0-10 HCF 11-18 HCF 19+ HCF
1 inch 0-10 HCF 11-18 HCF 19+ HCF

1.5 inch 0-20 HCF 21-36 HCF 37+ HCF
2 inch 0-32 HCF 33-58 HCF 59+ HCF
3 inch 0-64 HCF 65-115 HCF 116+ HCF
4 inch 0-100 HCF 101-180 HCF 181+ HCF
6 inch 0-200 HCF 201-360 HCF 361+ HCF
8 inch 0-560 HCF 561-1,008 HCF 1,009+ HCF
Curent
Rates
Proposed Water Rate Schedule
FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30
Bi-Monthly Fixed Service Charges
Single-Family Residential
3/4 inch $19.40 $50.06 $58.07 $63.30 $69.00 $73.14
1 inch $19.40 $50.06 $58.07 $63.30 $69.00 $73.14

1.5 inch $27.35 $84.00 $97.45 $106.22 $115.78 $122.72
2 inch $36.89 $124.74 $144.69 $157.72 $171.91 $182.22
All Other Customers
3/4 inch $23.46 $70.58 $81.88 $89.25 $97.28 $103.12
1 inch $23.46 $70.58 $81.88 $89.25 $97.28 $103.12

1.5 inch $35.48 $125.05 $145.06 $158.11 $172.34 $182.68 2 inch $49.89 $190.41 $220.87 $240.75 $262.42 $278.16
3 inch $88.33 $364.69 $423.04 $461.12 $502.62 $532.78
4 inch $131.58 $560.76 $650.49 $709.03 $772.84 $819.21
6 inch $251.71 $1,105.41 $1,282.27 $1,397.68 $1,523.47 $1,614.88 8 inch $684.18 $3,066.13 $3,556.71 $3,876.81 $4,225.73 $4,479.27 Fire Service Charges

1.5 inch $74.49 $80.32 $93.18 $101.56 $110.70 $117.35
2 inch $112.32 $118.85 $137.86 $150.27 $163.80 $173.62
3 inch $232.10 $240.84 $279.37 $304.51 $331.92 $351.83
4 inch $452.75 $465.55 $540.04 $588.64 $641.62 $680.12
6 inch $1,020.13 $1,043.39 $1,210.33 $1,319.27 $1,438.00 $1,524.28 8 inch $1,776.63 $1,813.85 $2,104.06 $2,293.43 $2,499.84 $2,649.83 10 inch $2,659.22 $2,712.71 $3,146.74 $3,429.95 $3,738.64 $3,962.96 Commodity Charges All Customers
Tier 1 $6.61 $6.78 $7.86 $8.57 $9.34 $9.90
Tier 2 $7.67 $7.89 $9.15 $9.98 $10.87 $11.53
Tier 3 $10.93 $12.36 $14.34 $15.63 $17.03 $18.06
HCF - The unit of measure used for water billing equal to 748 gallons.

1. Tier 1 breakpoint set to assumed indoor consumption for a typical SFR customer using 47 gallons per capita per day (GPCD) with 2.56 people per SFR, 1.78 people per MFR and allocated to non-residential based on 47 GPCD and equivalent meters

2. Tier 2 breakpoint set to volume of Santa Monica groundwater source minus the Tier 1 usage for each customer class.

3. Tier 3 water is set to include all purchased water from MWD.

Fixed and Variable Charges
The proposed water service fee is calculated by
combining a fixed charge amount based upon
the customer type and water meter size as
shown in the Bi-Monthly Fixed Service Charges
section in the Rate Table and a variable amount
based upon actual water use of the property
as shown in the Bi-Monthly Volumetric Charges
Rate Table.

The cost for the actual water used will vary by
the amount used during each two-month billing
cycle as shown in the Bi-Monthly Volumetric
Charges Rate Table. The water service fee will
continue to be billed bi-monthly directly to all
customers on the regular water utility bill.

Proposed water rates will take effect on July 1, 2025.

Proposed Recycled Water Rate Schedule
FY
25/26
FY
26/27
FY
27/28
FY
28/29
FY
29/30
Commodity Charges All Customers ($/HCF)
Uniform
Rate $5.21 $6.04 $6.59 $7.18 $7.61
Estimated Impact
Santa Monica has three major customer classes,
including single-family homes, multi-family units, and
commercial. The estimated combined water and
wastewater bi-monthly rate increases for each
major customer class, per year over the five year
period for water and wastewater services are
shown below.

Recycled Water Commodity Charge
Recycled water service is billed based on the
amount of recycled water used and only charged
to customers that have a recycled water meter.

Proposed recycled water rates will take effect on
July 1, 2025.

Single-Family Residential
$37.00 (or $18.50 per month)
Multi-Family Residential
$11.00 Per Unit (or $5.50 per unit per month)
Commercial
$150.00 (or $75 per month)

12.B.b
Packet Pg. 1185 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Proposed Wastewater Rate Charges
The proposed wastewater service fee is calculated by combining a fixed charge amount based upon the classification of property as shown in the Fixed Charges Table and a variable amount based upon actual water use of the property as shown in the Variable Charges Table. Proposed wastewater rates will take effect on July 1, 2025.

Curent
Rates
Proposed Wastewater Rate Schedule
FY
25/26
FY
26/27
FY
27/28
FY
28/29
FY
29/30
Fixed Charges ($/Bi-Monthly)
Residential ($/Dwelling Unit)
Single-Family $19.27 $22.20 $23.76 $25.42 $26.94 $28.56 MFR: Duplex + Triplex $7.76 $8.88 $9.51 $10.17 $10.78 $11.43 MFR: Fourplex +
Larger $5.85 $6.72 $7.19 $7.69 $8.15 $8.64
MFR: Individually
Metered $9.41 $11.03 $11.80 $12.63 $13.39 $14.19
Non-Residential ($/Account)
MFR: Mixed Use $188.39 $217.04 $232.24 $248.49 $263.40 $279.21 Commercial Low $55.06 $62.14 $66.49 $71.14 $75.41 $79.93 Commercial
Medium $117.07 $139.39 149.14 $159.58 $169.16 $179.31
Commercial High $294.27 $360.09 $385.30 $412.27 $437.00 $463.22 Institutional $88.78 $100.45 $107.48 $115.00 $121.90 $129.22 Church/Schools $56.62 $63.82 $68.29 $73.07 $77.45 $82.10 Misc. Industrial $108.46 $129.27 $138.32 $148.00 $156.88 $166.29 Wastewater Only $128.54 $135.91 $145.43 $155.61 $164.94 $174.84 The actual water use is adjusted according to a discharge factor which recognizes various sewage outputs produced by the respective property classes. Each property is classified based on its land use and activity. The wastewater service fee will continue to be billed bi-monthly directly to all customers on the regular wastewater utility bill.

Curent
Rates
Discharge
Factor
Proposed Wastewater Rate Schedule
FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30
Volumetric Charges ($/HCF) of Average Winter Water Consumption Residential ($/Dwelling Unit)
Single-Family $4.65 85% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Duplex + Triplex $4.65 90% $4.92 $5.27 $5.63 $5.97 $6.33 MFR: Fourplex + Larger $4.65 97% $4.92 $5.27 $5.63 $5.97 $6.33 MFR: Individually Metered $4.65 99% $4.92 $5.27 $5.63 $5.97 $6.33 Non-Residential ($/Account)
MFR: Mixed Use $4.65 95% $4.92 $5.27 $5.63 $5.97 $6.33
Commercial Low $4.24 93% $4.43 $4.74 $5.07 $5.38 $5.70
Commercial Medium $5.55 94% $6.27 $6.71 $7.18 $7.61 $8.07 Commercial High $6.50 95% $7.73 $8.27 $8.85 $9.38 $9.95 Institutional $4.19 82% $4.29 $4.59 $4.91 $5.20 $5.52
Church/Schools $4.19 81% $4.90 $5.24 $5.61 $5.94 $6.30
Misc. Industrial $5.16 88% $5.68 $6.07 $6.50 $6.89 $7.30 Wastewater Only — 85% — — — — —
Sample Calculation
The following example provides the
calculation of the proposed bi-monthly
wastewater bill for an average single-family
home for two months (one billing cycle).
$22.20
Bi-Monthly
Fixed Charge
22 HCF x 85%
Discharge Factor =

18.7 Adjusted HCF
Single-Family Rate
$4.92
Volumetric Charge
Single
Family
+
$92.00
Bi-Monthly
Variable Charge
22 HCF
Consumption
1 HCF = 748 gallons
Total $114.20
+Utility Users Tax
Bi-Monthly Bill =
Questions and More Information
For questions or more information, please contact the Water Resources Division at:

Phone: (310) 458-8531 Email: [email protected]

12.B.b
Packet Pg. 1186 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Sample Water Rate Calculation
The following example provides the calculation of
the proposed bi-monthly water bill for an average
single-family home for two months (one billing cycle).

Mandated Level
of Conservation
Proposed Drought Rate Schedule
FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30
Commodity Charges ($/HCF)
10%
Tier 1 $6.81 $7.90 $8.62 $9.39 $9.96
Tier 2 $9.17 $10.64 $11.59 $12.64 $13.40
Tier 3 $13.78 $15.98 $17.42 $18.99 $20.13
20%
Tier 1 $7.65 $8.87 $9.67 $10.54 $11.17
Tier 2 $10.29 $11.94 $13.01 $14.18 $15.03
Tier 3 $15.46 $17.94 $19.55 $21.31 $22.59
30%
Tier 1 $8.72 $10.11 $11.02 $12.02 $12.74
Tier 2 $11.73 $13.61 $14.83 $16.17 $17.14
Tier 3 $17.63 $20.45 $22.29 $24.30 $25.75
40%
Tier 1 $10.15 $11.77 $12.83 $13.98 $14.82
Tier 2 $13.65 $15.84 $17.26 $18.82 $19.95
Tier 3 $20.52 $23.80 $25.94 $28.28 $29.97
50%
Tier 1 $12.15 $14.09 $15.36 $16.74 $17.74
Tier 2 $16.35 $18.96 $20.67 $22.53 $23.88
Tier 3 $24.56 $28.49 $31.05 $33.85 $35.88
60%
Tier 1 $15.15 $17.57 $19.15 $20.87 $22.13
Tier 2 $20.38 $23.64 $25.77 $28.09 $29.78
Tier 3 $30.62 $35.52 $38.72 $42.21 $44.74
The Proposed Drought Rates shown below will replace the Commodity Charges shown in the Proposed Water Rate Table to the left if water conservation is mandated. The level of conservation mandated will determine the associated rates.

The City of Santa Monica is dedicated to providing
safe, high-quality water and wastewater services
to residents and businesses. In order to effectively
complete this mission, we must continue to invest in
our infrastructure system.
$50.06
Bi-Monthly
Fixed Charge
Tier 1 ($6.78/HCF)
10 HCF = $67.80
Volumetric Charge
1-inch
Meter
Tier 2 ($7.89/HCF)
8 HCF = $63.12
Tier 3 ($12.36/HCF)
4 HCF = $49.44
+
$180.36
Actual Water Use
22 HCF
Consumption
1 HCF = 748 gallons
Total $230.42
+Utility Users Tax
Bi-Monthly Bill =
Comparison of Water Bills (Single-Family Residential)
Even with the potential rate increase, Santa Monica will continue to provide affordable, high-quality drinking water to the community (shown in the solid orange bar). $115 $123
$167
$186 $190 $189
$211
$268
$308
$372
$229
$-
$50
$100
$150
$200
$250
$300
$350
Torrance El Segundo Glendale Burbank Santa Monica Long Beach Pasadena Culver City LADWP Beverly Hills Current Rates Proposed 7/1/2025

12.B.b
Packet Pg. 1187 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) La audiencia pública se celebrará de conformidad y en cumplimiento del Artículo XIIID de la Constitución del Estado de California y de la Ley Ómnibus de Aplicación de la Proposición 218. Este aviso se envía a todos los propietarios, que pueden presentar una protesta por escrito a los cambios propuestos en las tarifas.

La ciudad de Santa Mónica se compromete a mantener a sus clientes bien informados durante todo el proceso. Encontrará más información sobre las tarifas incluidas en este aviso y sobre cómo participar en él en la página web: santamonica.gov/waterrates.

AVISO DE AUDIENCIA PÚBLICA
Aumento propuesto de las tarifas de los
servicios de agua y aguas residuales
Cómo puede participar
Si tiene alguna pregunta o comentario sobre las tarifas propuestas, puede participar de las siguientes maneras:

Participación en la audiencia pública. Los miembros del público están invitados a asistir a la audiencia pública en persona el martes 10 de junio de 2025 a las 5:30 pm en el Consejo de la Ciudad de Santa Mónica, 1685 Main St. Santa Mónica, CA 90401. Tendrá la oportunidad de hablar, pero los comentarios verbales por sí solos no constituyen una protesta formal.

Escriba. ACualquier propietario que forme parte del área de servicio de agua y aguas residuales de la ciudad o un cliente registrado, puede presentar una protesta por escrito a los aumentos propuestos a las tarifas del servicio. Sólo se contabilizará una protesta por parcela o cliente identificado. Cada protesta debe (1) realizarse por escrito; (2) indicar que el propietario o cliente identificado se opone a las tarifas propuestas para el servicio de agua y aguas residuales; (3) proporcionar la ubicación de las parcelas identificadas (mediante el número de parcela del tasador o la dirección de la calle o el número de cuenta); e (4) incluir la firma del propietario o cliente que presenta la protesta.

Las protestas por escrito para cada ajuste de tarifas propuesto pueden presentarse por correo al secretario municipal, o en la audiencia pública, siempre que se reciban antes de la conclusión de la audiencia pública. Identifique en el frente del sobre de cualquier protesta, ya sea enviada por correo o presentada en persona ante el secretario municipal, que la protesta adjunta se refiere a las tarifas propuestas para los servicios de agua y aguas residuales. No se aceptarán las protestas presentadas por correo electrónico, fax u otros medios electrónicos.

Antes de la Audiencia Pública, envíe por correo o entregue en mano sus protestas por escrito a:

Ciudad de Santa Mónica, Oficina del Secretario Municipal Asunto: Audiencia pública sobre las tarifas propuestas para los servicios de agua y aguas residuales 1685 Main Street, Sala 102, Santa Mónica, CA 90401
También puede entregar en mano sus protestas por escrito en la reunión del Consejo de la Ciudad al secretario municipal antes de que concluya la audiencia pública celebrada en la dirección arriba indicada. El Consejo de la Ciudad escuchará y considerará todos los testimonios orales y escritos relativos a las tarifas propuestas para el servicio de aguas residuales.

De conformidad con la Sección 53759 del Código Gubernamental de California, existe un plazo de prescripción de 120 días para impugnar las tarifas de este aviso a partir de la fecha en que el Consejo de la Ciudad adopte la resolución por la que se aprueban dichas tarifas.

Objeciones. Si, al término de la Audiencia Pública, las protestas escritas recibidas en relación con los aumentos propuestos de las tarifas de los servicios de agua y aguas residuales no son presentadas por la mayoría (50% más 1) de los propietarios de las parcelas identificadas sobre las que se propone imponerlas, el Consejo de la Ciudad estará autorizado a adoptar las tarifas propuestas.

Un modelo de formulario de protesta, los procedimientos de tabulación de protestas y el estudio de tarifas de agua y aguas residuales están disponibles en línea en santamonica.gov/waterrates.

12.B.b
Packet Pg. 1188 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Propuesta de tarifas de agua
Clase de cliente y
Tamaño del medidor
Propuesta de tarifas volumétricas bimestrales
Punto de ruptura
denivel 1₁ Punto de rupturade nivel 2₂ Punto de ruptura de nivel 3₃ Unifamiliar
Todos los clientes
Por unidad
0-10 HCF 11-18 HCF 19+ HCF
Multifamiliar
Todos los clientes
Por unidad
0-7 HCF 8-13 HCF 14+ HCF
No Residencial Por medidor
3/4 de pulgada 0-10 HCF 11-18 HCF 19+ HCF
1 pulgada 0-10 HCF 11-18 HCF 19+ HCF

1.5 de pulgada 0-20 HCF 21-36 HCF 37+ HCF
2 pulgadas 0-32 HCF 33-58 HCF 59+ HCF
3 pulgadas 0-64 HCF 65-115 HCF 116+ HCF
4 pulgadas 0-100 HCF 101-180 HCF 181+ HCF
6 pulgadas 0-200 HCF 201-360 HCF 361+ HCF
8 pulgadas 0-560 HCF 561-1,008 HCF 1,009+ HCF
Tarifas
actuales
Rates
Propuesta de tarifa de agua
Año fiscal
25/26
Año fiscal
26/27
Año fiscal
27/28
Año fiscal
28/29
Año fiscal
29/30
Cargos bimensuales por servicios fijos
Residencial unifamiliar
3/4 de pulgada $19.40 $50.06 $58.07 $63.30 $69.00 $73.14 1 pulgada $19.40 $50.06 $58.07 $63.30 $69.00 $73.14

1.5 de pulgada $27.35 $84.00 $97.45 $106.22 $115.78 $122.72 2 pulgadas $36.89 $124.74 $144.69 $157.72 $171.91 $182.22 Todos los demás clientes
3/4 de pulgada $23.46 $70.58 $81.88 $89.25 $97.28 $103.12 1 pulgada $23.46 $70.58 $81.88 $89.25 $97.28 $103.12

1.5 de pulgada $35.48 $125.05 $145.06 $158.11 $172.34 $182.68 2 pulgadas $49.89 $190.41 $220.87 $240.75 $262.42 $278.16 3 pulgadas $88.33 $364.69 $423.04 $461.12 $502.62 $532.78 4 pulgadas $131.58 $560.76 $650.49 $709.03 $772.84 $819.21 6 pulgadas $251.71 $1,105.41 $1,282.27 $1,397.68 $1,523.47 $1,614.88 8 pulgadas $684.18 $3,066.13 $3,556.71 $3,876.81 $4,225.73 $4,479.27 Cargos por servicios contra incendios

1.5 de pulgada $74.49 $80.32 $93.18 $101.56 $110.70 $117.35 2 pulgadas $112.32 $118.85 $137.86 $150.27 $163.80 $173.62 3 pulgadas $232.10 $240.84 $279.37 $304.51 $331.92 $351.83 4 pulgadas $452.75 $465.55 $540.04 $588.64 $641.62 $680.12 6 pulgadas $1,020.13 $1,043.39 $1,210.33 $1,319.27 $1,438.00 $1,524.28 8 pulgadas $1,776.63 $1,813.85 $2,104.06 $2,293.43 $2,499.84 $2,649.83 10 pulgadas $2,659.22 $2,712.71 $3,146.74 $3,429.95 $3,738.64 $3,962.96 Cargos por productos básicos Todos los clientes
Nivel 1 $6.61 $6.78 $7.86 $8.57 $9.34 $9.90
Nivel 2 $7.67 $7.89 $9.15 $9.98 $10.87 $11.53
Nivel 3 $10.93 $12.36 $14.34 $15.63 $17.03 $18.06
HCF - Unidad de medida utilizada para la facturación del agua equivalente a 748 galones.

1. Punto de corte del nivel 1 fijado en el consumo interior supuesto para un cliente SFR típico que utiliza 47 galones per cápita al día (GPCD) con 2.56 personas por SFR, 1.78 personas por MFR y asignado a no residenciales basándose en 47 GPCD y medidores equivalentes

2. Punto de corte de nivel 2 fijado en el volumen de la fuente de agua subterránea de Santa Mónica menos el uso de nivel 1 para cada clase de cliente.

3. El agua de nivel 3 se establece para incluir toda el agua comprada a MWD.

Cargos fijos y variables
La cuota de servicio de agua propuesta se calcula
combinando un monto de cargo fijo basado en
el tipo de cliente y el tamaño del medidor de
agua, tal y como se muestra en la sección Cargos
bimensuales por servicio fijo de la Tabla de tarifas
que figura a continuación, y un monto variable
basado en el uso real de agua de la propiedad, tal
y como se muestra en la Tabla de tarifas de cargos
volumétricos bimensuales.

El costo por el agua realmente utilizada variará en
función de la cantidad utilizada durante cada ciclo
de facturación bimestral, tal y como se indica en la
tabla de tarifas de cargos volumétricos bimestrales.

La cuota del servicio de agua seguirá facturándose
bimensualmente directamente a todos los clientes
en la factura ordinaria del servicio de agua.

Las tarifas de agua propuestas entrarán en vigor el 1 de julio de 2025.

Propuesta de tarifa de agua reciclada
Año
fiscal
25/26
Año
fiscal
26/27
Año
fiscal
27/28
Año
fiscal
28/29
Año
fiscal
29/30
Cargos por productos básicos Todos los clientes ($/HCF) Tasa
uniforme $5.21 $6.04 $6.59 $7.18 $7.61
Impacto estimado
Santa Mónica tiene tres clases principales de
clientes, que incluyen viviendas unifamiliares,
unidades multifamiliares y comerciales. A
continuación se muestran los aumentos
bimestrales estimados de las tarifas combinadas
de agua y aguas residuales para cada clase
principal de clientes, por año durante el periodo
de cinco años para los servicios de agua y aguas
residuales.

Cargo por agua reciclada
El servicio de agua reciclada se factura en función
de la cantidad de agua reciclada utilizada y sólo se
cobra a los clientes que disponen de un medidor de
agua reciclada. Las tarifas propuestas para el agua
reciclada entrarán en vigor el 1 de julio de 2025.

Residencial unifamiliar
$37.00 (o $18.50 por mes)
Residencial multifamiliar
$11.00 por unidad
(o $5.50 por unidad por mes)
Comercial
$150.00 (o $75 por mes)

12.B.b
Packet Pg. 1189 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Cálculo de la tasa de agua de muestra
El siguiente ejemplo proporciona el cálculo de la
factura bimensual de agua propuesta para una
vivienda unifamiliar promedio durante dos meses
(un ciclo de facturación).

Nivel obligatorio
de conservación
Propuesta de tarifa de sequía
Año fiscal
25/26
Año fiscal
26/27
Año fiscal
27/28
Año fiscal
28/29
Año fiscal
29/30
Cargos por productos básicos ($/HCF)
10%
Nivel 1 $6.81 $7.90 $8.62 $9.39 $9.96
Nivel 2 $9.17 $10.64 $11.59 $12.64 $13.40
Nivel 3 $13.78 $15.98 $17.42 $18.99 $20.13
20%
Nivel 1 $7.65 $8.87 $9.67 $10.54 $11.17
Nivel 2 $10.29 $11.94 $13.01 $14.18 $15.03
Nivel 3 $15.46 $17.94 $19.55 $21.31 $22.59
30%
Nivel 1 $8.72 $10.11 $11.02 $12.02 $12.74
Nivel 2 $11.73 $13.61 $14.83 $16.17 $17.14
Nivel 3 $17.63 $20.45 $22.29 $24.30 $25.75
40%
Nivel 1 $10.15 $11.77 $12.83 $13.98 $14.82
Nivel 2 $13.65 $15.84 $17.26 $18.82 $19.95
Nivel 3 $20.52 $23.80 $25.94 $28.28 $29.97
50%
Nivel 1 $12.15 $14.09 $15.36 $16.74 $17.74
Nivel 2 $16.35 $18.96 $20.67 $22.53 $23.88
Nivel 3 $24.56 $28.49 $31.05 $33.85 $35.88
60%
Nivel 1 $15.15 $17.57 $19.15 $20.87 $22.13
Nivel 2 $20.38 $23.64 $25.77 $28.09 $29.78
Nivel 3 $30.62 $35.52 $38.72 $42.21 $44.74
Las Tarifas Propuestas para la Sequía que se muestran a continuación sustituirán a los Cargos por Productos Básicos que aparecen en la Tabla de Tarifas de Agua Propuestas a la izquierda si se impone la conservación del agua. El nivel de conservación exigido determinará las tarifas asociadas.

La ciudad de Santa Mónica se dedica a
proporcionar servicios de agua y aguas residuales
seguros y de alta calidad a residentes y empresas.

Para completar eficazmente esta misión,
debemos seguir invirtiendo en nuestro sistema de
infraestructuras.
$50.06
Bimensual
Cargo fijo
Nivel 2 ($6.78/HCF)
10 HCF = $67.80
Cargo volumétrico
Medidor de
1 pulgada
Nivel 2 ($7.89/HCF)
8 HCF = $63.12
Tier 3 ($12.36/HCF)
4 HCF = $49.44
+
$180.36
Uso real del agua
22 Consumo
de HCF
1 HCF = 748 galones
Total $230.42
+Impuesto a
los Usuarios de
Servicios Públicos
Factura bimensual =
Comparación de las facturas de agua (Residencial unifamiliar) Incluso con la posible subida de tarifas, Santa Mónica seguirá suministrando agua potable asequible y de alta calidad a la comunidad (se muestra en la barra naranja sólida). $115 $123
$167
$186 $190 $189
$211
$268
$308
$372
$229
$-
$50
$100
$150
$200
$250
$300
$350
Torrance El Segundo Glendale Burbank Santa Monica Long Beach Pasadena Culver City LADWP Beverly Hills Tarifas actuales Propuesta 7/1/2025

12.B.b
Packet Pg. 1190 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) Propuesta de tarifas de aguas residuales
La cuota propuesta por el servicio de aguas residuales se calcula combinando un monto de cargo fijo basado en la clasificación de la propiedad, como se muestra en la Tabla de Cargos Fijos, y un monto variable basado en el uso real del agua de la propiedad, como se muestra en la Tabla de Cargos Variables. Las tarifas propuestas para las aguas residuales entrarán en vigor el 1 de julio de 2025.

Tarifas
actuales
Rates
Propuesta de tarifa de aguas residuales
Año
fiscal
25/26
Año
fiscal
26/27
Año
fiscal
27/28
Año
fiscal
28/29
Año
fiscal
29/30
Cargos fijos ($/bimensual)
Residencial ($/unidad de vivienda)
Unifamiliar $19.27 $22.20 $23.76 $25.42 $26.94 $28.56
MFR: Dúplex + Tríplex $7.76 $8.88 $9.51 $10.17 $10.78 $11.43 MFR: Cuádruple +
Más Grande $5.85 $6.72 $7.19 $7.69 $8.15 $8.64
MFR: Medición
individual $9.41 $11.03 $11.80 $12.63 $13.39 $14.19
No residencial ($/cuenta)
MFR: Uso mixto $188.39 $217.04 $232.24 $248.49 $263.40 $279.21 Comercial Bajo $55.06 $62.14 $66.49 $71.14 $75.41 $79.93 Comercial Medio $117.07 $139.39 149.14 $159.58 $169.16 $179.31 Comercial Bajo $294.27 $360.09 $385.30 $412.27 $437.00 $463.22 Institucional $88.78 $100.45 $107.48 $115.00 $121.90 $129.22 Iglesia/Escuelas $56.62 $63.82 $68.29 $73.07 $77.45 $82.10 Misc. Industrial $108.46 $129.27 $138.32 $148.00 $156.88 $166.29 Sólo aguas
residuales $128.54 $135.91 $145.43 $155.61 $164.94 $174.84 El uso real de agua se ajusta según un factor de vertido que reconoce varias salidas de aguas residuales producidas por las respectivas clases de propiedad. Cada propiedad se clasifica en función de su uso del suelo y su actividad. La cuota de servicio de aguas residuales se seguirá facturando bimensualmente directamente a todos los clientes en la factura ordinaria del servicio de aguas residuales.

Curent
Rates
Discharge
Factor
Propuesta de tarifa de aguas residuales
Año fiscal
25/26
Año fiscal
26/27
Año fiscal
27/28
Año fiscal
28/29
Año fiscal
29/30
Cargos volumétricos ($/HCF) del consumo promedio de agua en invierno Residencial ($/unidad de vivienda)
Unifamiliar $4.65 85% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Dúplex + Tríplex $4.65 90% $4.92 $5.27 $5.63 $5.97 $6.33 MFR: Cuádruple + Más
Grande $4.65 97% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Medición individual $4.65 99% $4.92 $5.27 $5.63 $5.97 $6.33 No residencial ($/cuenta)
MFR: Uso mixto $4.65 95% $4.92 $5.27 $5.63 $5.97 $6.33
Comercial Bajo $4.24 93% $4.43 $4.74 $5.07 $5.38 $5.70
Comercial Medio $5.55 94% $6.27 $6.71 $7.18 $7.61 $8.07 Comercial Bajo $6.50 95% $7.73 $8.27 $8.85 $9.38 $9.95
Institucional $4.19 82% $4.29 $4.59 $4.91 $5.20 $5.52
Iglesia/Escuelas $4.19 81% $4.90 $5.24 $5.61 $5.94 $6.30 Misc. Industrial $5.16 88% $5.68 $6.07 $6.50 $6.89 $7.30 Sólo aguas residuales — 85% — — — — —
Cálculo de la muestra
El siguiente ejemplo proporciona el cálculo de la
factura bimensual de aguas residuales propuesta
para una vivienda unifamiliar promedio durante dos
meses (un ciclo de facturación).
$22.20
Bimensual
Cargo fijo
22 HCF x 85% Factor
de descarga =

18.7 HCF ajustado
Tarifa unifamiliar
$4.92
Cargo volumétrico
Unifamiliar
+
$92.00
Cargo variable
bimensual
22 Consumo
de HCF
1 HCF = 748 galones
Total $114.20
+Impuesto a
los Usuarios de
Servicios Públicos
Factura bimensual =
Preguntas y más información
Si tiene preguntas o desea más información, póngase en contacto con la División de Recursos Hídricos en:

Teléfono: (310) 458-8531 Correo electrónico: [email protected]

12.B.b
Packet Pg. 1191 Attachment: Prop 218 Notices (7063 : Wastewater Service Rates (5 min)) City Council Meeting: June 10, 2025 Santa Monica, California RESOLUTION NUMBER ____________(CCS)
(CITY COUNCIL SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA, CALIFORNIA, REVISING WASTEWATER

RATES AND WASTEWATER SERVICES CHARGES
WHEREAS, the City Council may establish, amend or revise from time to time by resolution the rates and service charges for supplying wastewater service to any customer pursuant to Government Code Section 54344 and Santa Monica Municipal Code Section 7.04.540 of the Santa Monica Municipal Code; and WHEREAS, the City is implementing a comprehensive long-range wastewater system improvement program with the goal of maintaining a modern, reliable wastewater network and infrastructure; and
WHEREAS, wastewater rate increases are needed to maintain a modern and reliable wastewater infrastructure, invest in resiliency and emergency preparedness, and adequately fund ongoing cost of providing wastewater services; and
WHEREAS, the City of Santa Monica is proposing wastewater rate increases (“Wastewater Rate Increases”) over a five-year period beginning July 1, 2025, and the proposed maximum percentage increases, on a systemwide basis, are:

FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
7% 7% 7% 6% 6%

12.B.c
Packet Pg. 1192 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) ; and
WHEREAS, in accordance with Government Code Section 54354, delinquent charges and penalties for wastewater services when recorded in accordance with Government Code Section 54355 shall constitute a lien upon the real property served; and
WHEREAS, the City Council held a public hearing (“Hearing”) to consider the proposed Wastewater Rate Increases on January 28, 2020; and WHEREAS, the City Clerk gave notice of the proposed Wastewater Rate Increases, which notice contained a copy of the proposed resolution to adopt the Wastewater Rate Increases and a declaration that delinquent charges and penalties when recorded as provided in Government Code section 54355 shall constitute a lien upon the real property served, and which notice was published at least once each week for two weeks prior to the Hearing in the Santa Monica Daily Press, in accordance with Government Code section 54354.5; and WHEREAS, a separate notice of the proposed Wastewater Rate Increases was also given in accordance with Article XIII D Section 6 of the California Constitution, by mailing such notice to the owner of record of each parcel in Santa Monica’s service area and parcels in the City of Los Angeles who receive wastewater service from the City of Santa Monica; and
WHEREAS, the City Council has considered all written and oral testimony presented at the Hearing and considered whether the proposed Wastewater Rate Increases: are not discriminatory or excessive; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; will be sufficient under the provisions or

12.B.c
Packet Pg. 1193 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) covenants of any outstanding revenue bonds of the City, if any, payable from the wastewater rate revenues; and will be in compliance with law;

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

SECTION 1. The City Council hereby determines that the proposed Wastewater Rate Increases are not discriminatory or excessive; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; will be sufficient under the provisions or covenants of any outstanding revenue bonds of the City, if any, payable from the wastewater rate revenues; and will be in compliance with law.

SECTION 2. As of July 1, 2025, or as soon thereafter as practical, the wastewater service charge will consist of a fixed charge and a commodity charge.

SECTION 3. As of July 1, 2025, or as soon thereafter as practical, the wastewater service fixed charge for the following property classifications shall be as follows for the following years:

BI-MONTHLY FIXED CHARGES
Property
Classification
Proposed Wastewater Rates
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Residential ($/Dwelling Unit)
Single Family $22.20 $23.76 $25.42 $26.94 $28.56
MFR: Duplex + Triplex $8.88 $9.51 $10.17 $10.78 $11.43
MFR: Fourplex +
Larger $6.72 $7.19 $7.69 $8.15 $8.64
MFR: Individually
metered $11.03 $11.80 $12.63 $13.39 $14.19
Non-Residential ($/Account)
MFR: Mixed Use $217.04 $232.24 $248.49 $263.40 $279.21
Commercial - Low $62.14 $66.49 $71.14 $75.41 $79.93
Commercial – Med. $139.39 $149.14 $159.58 $169.16 $179.31 Commercial - High $360.09 $385.30 $412.27 $437.00 $463.22 Institutional $100.45 $107.48 $115.00 $121.90 $129.22
Church/Schools $63.82 $68.29 $73.07 $77.45 $82.10
Misc. Industrial $129.27 $138.32 $148.00 $156.88 $166.29 Wastewater Only $135.91 $145.43 $155.61 $164.94 $174.84

12.B.c
Packet Pg. 1194 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) SECTION 4. As of July 1, 2025, or as soon thereafter as practical, the wastewater service commodity charge and the discharge factor applied to metered water usage to calculate wastewater output for the following property classifications shall be as follows for the following years:

BI-MONTHLY COMMODITY CHARGES
Property
Classification
Discharge
Factor
Proposed Wastewater Rates
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
FY
2029/30
Residential ($/HCF)
Single Family 85% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Duplex +
Triplex 90% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Fourplex +
Larger 97% $4.92 $5.27 $5.63 $5.97 $6.33
MFR: Indiv. metered 99% $4.92 $5.27 $5.63 $5.97 $6.33
Non-Residential
($/HCF)
MFR: Mixed Use 95% $4.92 $5.27 $5.63 $5.97 $6.33
Commercial – Low 93% $4.43 $4.74 $5.07 $5.38 $5.70
Commercial –
Medium 94% $6.27 $6.71 $7.18 $7.61 $8.07
Commercial – High 95% $7.73 $8.27 $8.85 $9.38 $9.95
Institutional 82% $4.29 $4.59 $4.91 $5.20 $5.52
Church/Schools 81% $4.90 $5.24 $5.61 $5.94 $6.30
Misc. Industrial 88% $5.68 $6.07 $6.50 $6.89 $7.30
Wastewater Only3 NA -- -- -- -- --
Note: HCF = hundred cubic feet
The Water Resources Manager shall have the authority to make adjustments in discharge factors for individual users where it is determined that the actual quantity of wastewater discharge is substantially different from that established in the above table.

The wastewater rates above are based on wastewater volume (determined based on water usage and the listed discharge factors) and the property classification, which is determined based in part on the expected concentration (or strength) of pollutants in the wastewater discharge (“wastewater strength”).

Wastewater strength values for individual users or various types of users may

12.B.c
Packet Pg. 1195 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) either be estimated or determined by laboratory analysis, at the direction of the Water Resources Manager. Where wastewater strength values are estimated, they shall be consistent with the current City of Los Angeles Amalgamated System Sewage Generation Factors. No wastewater strength values for non-residential users shall be less than the wastewater strength values established for residential users. The City may revise wastewater strength values from time to time as deemed necessary to reflect current conditions.

In the event any user believes that, based on the wastewater strength value established by the City for its wastewater discharge, its property classification is incorrect, that user shall have the option of having its wastewater sampled and analyzed at its own expense by a laboratory approved by the City. The manner, frequency, and duration of sampling and analysis shall be approved by the City to ensure that the resultant wastewater strength value is representative of all conditions of discharges. During the same time period when wastewater is being analyzed, the user shall pay all wastewater service charges based on the previously established property classification. In the event analyses show the actual strength value to be less than or greater than the previously established value, the City shall adjust the property classification and either refund or bill the user, per Santa Monica Municipal Code Sections 7.04.560 and 7.12.112, for the difference in charges, as appropriate.

SECTION 5. On July 1, 2025, or as soon thereafter as practical, wastewater customers who do not receive water service from the City of Santa Monica will pay only the fixed charge established in Section 3 above.

12.B.c
Packet Pg. 1196 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) SECTION 6. As of July 1, 2025, or as soon thereafter as practical, the recycled water service commodity charge shall be as follows for the following years:

BI-MONTHLY RECYCLED WATER COMMODITY CHARGES
Proposed Recycled Water Rates
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Uniform
Rate
($/HCF)
$5.21 $6.04 $6.59 $7.18 $7.61
SECTION 7. A low-income allowance will be offered to residential water customers with individual water meters who qualify for the City’s Utilities User Tax Exemption Program or the Southern California Gas Co. or Southern California Edison low-income assistance programs. As of July 1, 2025, or as soon thereafter as practical, the residential low-income wastewater commodity charge for residential water customers with individual meters shall be as follows for the following years:

BI-MONTHLY LOW-INCOME COMMODITY CHARGES
Proposed Wastewater Rates
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Residential
($/HCF)
$3.92 $4.27 $4.63 $4.97 $5.33
Note: HCF = hundred cubic feet
SECTION 8. In accordance with Government Code section 54354, delinquent charges and penalties for wastewater services recorded in accordance with Government Code section 54355 shall constitute a lien upon the real property served.

SECTION 9. Resolution Number 11224 (CCS) is hereby repealed in its entirety, effective July 1, 2025.

12.B.c
Packet Pg. 1197 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) SECTION 10. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.

APPROVED AS TO FORM:
_______________________

DOUGLAS SLOAN

CITY ATTORNEY

12.B.c
Packet Pg. 1198 Attachment: PW - Resolution - Wastewater Service Rates [Revision 4] (7063 : Wastewater Service Rates (5 min)) 12B. Public Hearing
Sewer Rate Adjustment
6/10/2025
Item 12-B
June 10, 2025
Item 12-B
June 10, 2025

12.B.f
Packet Pg. 1199 Attachment: PowerPoint Presentation (7063 : Wastewater Service Rates (5 min)) Proposed Wastewater Rate Adjustment
• Proposed Five-Year Rate Increase of 7%, 7%, 7%, 6%, and 6% • Keep Pace with Inflation for Day-to-day Operations
• Maintain Routine CIP Projects to Prevent Costly Service Interruptions • Rehabilitate Key Infrastructure:
• Moss Avenue Pump Station (100% Reimbursed by City of Los Angeles) • Santa Monica Urban Runoff Recycling Facility (50% Cost Share with City of Los Angeles) Item 12-B
June 10, 2025
Item 12-B
June 10, 2025

12.B.f
Packet Pg. 1200 Attachment: PowerPoint Presentation (7063 : Wastewater Service Rates (5 min)) Recommended City Council Action

1. Hold a public hearing for the proposed five-year sewer rate adjustment

2. Adopt finding of CEQA Categorical Exemption pursuant to Section 15273

3. Receive public comments pursuant to Proposition 218 requirements

4. Consider all protests against the proposed sewer rate adjustments that have been submitted in accordance with Proposition 218

5. Adopting the resolution establishing five-year schedule of sewer rate adjustments to go into effect July 1, 2025
Item 12-B
June 10, 2025
Item 12-B
June 10, 2025

12.B.f
Packet Pg. 1201 Attachment: PowerPoint Presentation (7063 : Wastewater Service Rates (5 min)) THANK YOU…
Item 12-B
June 10, 2025
Item 12-B
June 10, 2025

12.B.f
Packet Pg. 1202 Attachment: PowerPoint Presentation (7063 : Wastewater Service Rates (5 min)) City Council
Report
City Council Meeting: June 10, 2025
Agenda Item: 12.C
1 of 10
To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Public Hearing and Adoption of an Emergency Interim Zoning Ordinance to Permit the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill 1123 on Vacant Parcels Zoned for Single-Unit Residential.

Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Statutory Exemption from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b).

2. Introduce and Adopt an Emergency Interim Zoning Ordinance Permitting the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill (SB) 1123 on Vacant Parcels Zoned for Single-Unit Residential.

Summary
On September 19, 2024, Governor Newsom approved Senate Bill 1123 (SB 1123) which is available for applicants to use as of July 1, 2025. Primarily, SB 1123 expands upon prior State law (SB 684) to allow a parcel zoned for single-unit residential to be ministerially subdivided to up to 10 parcels. While most aspects of SB 1123 are compulsory, there are areas such as the inclusion of Accessory Dwelling Units (ADUs) that are at the discretion of each local jurisdiction. On May 13, 2025, City Council gave direction to staff to return on June 10, 2025 with an ordinance to allow ADUs in conjunction with projects utilizing SB 1123. For reasons explained in more detail below, and in order to ensure that ADUs are available as an option for applications filed as of July 1, 2025, the ordinance is being presented as an Emergency Interim Zoning Ordinance (IZO).

12.C
Packet Pg. 1203
2 of 10
Discussion
Approved on September 19, 2024, and applicable to applications filed on or after July 1, 2025, SB 1123 amends the provisions of the Government Code that require local jurisdictions to approve certain subdivisions up to 10 units ministerially that started with SB 684. SB 684, which applies to applications filed after July 1, 2024, required local agencies to ministerially approve (1) a subdivision resulting in 10 or fewer parcels for certain housing development projects, and (2) a housing development project consisting of 10 or fewer units on a parcel resulting from a subdivision under SB 684. Currently, for a subdivision to be eligible for streamlined, ministerial review under SB 684, the resulting development must be located on a parcel zoned for multi-unit residential developments that are no larger than five acres and substantially surrounded by qualified urban uses.

Amongst other amendments, SB 1123 expands the ability to ministerially subdivide a parcel to now also apply to housing developments located on “vacant” parcels zoned for single-unit residential development if it meets certain criteria. The primary stated purposes behind this legislation are to (1) continue to address California’s statewide housing crisis, (2) address the housing crisis’s impacts on economic growth, homelessness, and cost of home ownership, and (3) address the shortfall between California’s housing needs and the available housing supply created by restrictive policies at both the local and state level.

Overview of SB 1123
Below is a high-level overview of how the City is required to implement SB 1123. This overview is based on staff’s preliminary understanding of SB 1123 after conducting an independent review of the statutory language and legislative history along with publicly available third-party analysis. However, anticipated guidance from the California Department of Housing and Community Development (HCD), which has enforcement authority over implementation of SB 1123, and any applicable judicial guidance that may be issued, may necessarily change the below interpretation and, consequently, the City’s implementation of SB 1123.

12.C
Packet Pg. 1204
3 of 10

1. What parcels will SB 1123 apply to?
SB 1123 applies to housing developments located on parcels zoned for singleunit residential development.

2. Are there eligibility requirements?
Yes. SB 1123 requires that a parcel be (1) “vacant,” (2) no larger than 1.5 acres, and (3) substantially surrounded by qualified urban uses (which is all of Santa Monica).

3. What does “vacant” mean for purposes of SB 1123?
SB 1123 defines “vacant” as “having no permanent structure, unless the permanent structure is abandoned and uninhabitable”.

4. Does SB 1123 have any displacement and/or tenant protections? Yes. SB 1123 does not apply to projects that would result in the demolition or alteration of any of the following types of housing:
• Housing that is subject to a recorded covenant, ordinance, or law that restricts rent or sales price to levels affordable to persons and families of low, very low, or extremely low income.
• Housing that is subject to any form of rent or sales price control through a local public entity’s valid exercise of its police power. • Housing occupied by tenants within the five years preceding the date of the application, including housing that has been demolished or that tenants have vacated prior to the submission of the application for a development permit.
• A parcel on which an owner of residential real property has exercised the owner’s rights under the Ellis Act to withdraw accommodations from rent

12.C
Packet Pg. 1205
4 of 10
or lease within 15 years before the date that the development proponent submits an application.

SB 1123 further clarifies that the following types of housing do not qualify as “vacant”, making parcels improved with these types of housing ineligible for development under SB 1123:
• Housing that is subject to a recorded covenant, ordinance, or law that restricts rent or sales price to levels affordable to persons and families of low, very low, or extremely low income.
• Housing that is subject to any form of rent or sales price control through a local public entity’s valid exercise of its police power. • Housing occupied by tenants within the five years preceding the date of the application, including housing that has been demolished or that tenants have vacated prior to the submission of the application for a development permit.

5. Are there subdivision limitations/requirements?
Yes. In addition to the parcel being required to be vacant, zoned for single-unit residential, no larger than 1.5 acres, and surrounded by qualified urban uses, SB 1123 requires that a subdivision of a parcel comply with the following:
• The parcel is located within an incorporated City
• The parcel is located within an urbanized area
• The parcel was not established pursuant to this section or Section 66411.7 (“SB 9/450”)
• The parcel is not located within one of the following areas:
o Prime farmland or farmland of statewide importance
o Wetlands
o High or very high fire hazard severity zone
o Hazardous waste site

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o Delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards o Special flood hazard area, unless a development proponent is able to satisfy all applicable federal qualifying criteria
o Regulatory floodway, unless the development has received a norise certification o Land identified for conservation in an adopted natural community conservation plan
o Habitat for protected species
o Land under conservation easement
• Newly created parcels shall be no smaller than 1,200 square feet (multiunit parcels require newly created parcels to only be 600 square feet) o Minimum parcel size, width, depth, frontage, and dimensions do not apply.

6. What types of housing may be developed under SB 1123? The housing units on the parcel proposed to be subdivided are one of the following:
• Constructed on fee simple ownership lots.
• Part of a common interest development (e.g., condominiums, planned developments, stock cooperatives, community apartment projects). • Part of a housing cooperative.
• Constructed on land owned by a community land trust (additional qualifiers apply).
• Part of a tenancy in common.

7. How many parcels can be created using SB 1123?

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SB 1123 allows for the ministerial subdivision of a parcel to up to 10 newly created parcels as long as they meet certain requirements and limitations. While the statutory language does not expressly state that a jurisdiction is required to allow a subdivision meeting eligibility requirements under SB 684 or SB 1123 to surpass its local density limits, on May 5, 2025, HCD issued a Technical Assistance to the City of Morro Bay regarding SB 684 that appears to have clarified that local density limits cannot prohibit the creation of up to 10 parcels, including parcels that make up common interest developments (i.e. ownership condos), as long as the project meets all requirements within the State law.

Because SB 1123 expands SB 684, and the language HCD analyzed does not appear to have been amended as part of SB 1123, it appears this analysis would similarly apply to projects applying under SB 1123.

City of Morro Bay – 2900 Alder Ave – Letter of Technical Assistance

8. What can be built on each resulting new parcel after subdivision? The HCD Technical Assistance letter to Morro Bay further appears to indicate that while SB 1123 allows for the creation of new parcels that might exceed or override standards compared to what is permitted in the subject zoning district, the maximum allowable density per the underlying zoning district still applies for each resulting parcel created. In the case of the R1 zoning district, this means that only one single-unit dwelling is permitted per newly created parcel. SB 1123 prohibits the addition of ADUs unless a local jurisdiction chooses to allow them.

9. Can a jurisdiction impose development standards on an SB 1123 project? Yes. The City can impose objective zoning standards, objective subdivision standards, or objective design standards that are related to the housing development or to the design or improvement of a parcel, as long as they do not

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conflict with the provisions implementing SB 1123, Government Code Sections 65852.28 and 66499.41, including, but not limited to:
• Impose a height limit less than the height allowed pursuant to the underlying zoning district.
• Impose any requirement that applies to a project solely or partially on the basis that the subdivision or housing development receives approval under SB 1123
• Require a setback between units, except as required in the California Building Code.
• Require parking to be enclosed or covered
• Impose side and rear setbacks from the original lot line greater than four feet for new construction.
• Impose parking requirements when a parcel is located within one-half mile walking distance of either a high-quality transit corridor or if there is a car share vehicle located within one block of the parcel.
• Impose the following development sizes:
o For a housing development project consisting of three to seven units, inclusive, floor area ratio standard that is less than 1.0. o For a housing development project consisting of 8 to 10 units, inclusive, floor area ratio standard that is less than 1.25. o The average total area of floorspace for the proposed housing units on the lot proposed to be subdivided does not exceed 1,750 net habitable square feet

10.Does the Santa Monica Municipal Code Chapter 9.64, the City’s Affordable Housing Production Program, apply to projects utilizing SB 1123? Yes. The housing development project on a parcel proposed to be subdivided is required to comply with any local inclusionary housing ordinances adopted by a local agency.

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11.What is the process to approve a subdivision submitted pursuant to SB 1123? The City is required to review a subdivision pursuant to SB 1123, or a housing development project on a parcel that has been subdivided under SB 1123, ministerially, without discretionary review or a hearing, within 60 days from the date an application is deemed complete. If a local agency does not act within 60 days, the application shall be deemed approved.

12.Can a jurisdiction deny a subdivision application submitted pursuant to SB 1123? Yes. A jurisdiction can deny an application that does not meet all the requirements of SB 1123 or any applicable objective standard. And, if a project does otherwise meet all the requirements of SB 1123 and all applicable objective standards, the jurisdiction may deny the project only “if it makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact” on “public health and safety and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.”

13.What other modifications did SB 1123 make?
In addition to the above, SB 1123 modified the minimum density requirements of SB 684 based on whether the subject parcel is identified in a jurisdiction’s housing element
Council Direction
As mentioned above, there are areas of SB 1123 that give local jurisdictions discretion to decide for themselves. One of these areas is the application of ADUs. SB 1123 states that “a local agency is not required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels created through the exercise of the authority contained within this section.” Additionally, if a local jurisdiction does decide to permit ADUs, “the units shall not count as residential units” when determining how many units

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can be established within developments that have subdivided a parcel pursuant to SB 1123.

On May 13, 2025, City Council gave direction to staff to return with an ordinance to allow ADUs in conjunction with projects utilizing SB 1123. The attached Emergency IZO implements this direction in order to be effective in time for SB 1123’s effective date of July 1, 2025. Staff have also received inquiries and stated interest in the use of SB 1123 when it becomes available. With approval of this ordinance, all applicable provisions under State ADU law and the City’s local implementation will be available to parcels created utilizing SB 1123, including, but not limited to, the number of ADUs that can be permitted on a single parcel.

Policy Question
Council’s direction to allow ADUs was in conversation with the applicability of SB 1123 within the City’s single-unit dwelling zoning districts. However, SB 1123 was only an expansion of an already existing Government Code. As the Government Code applies to more than just single-unit residential zoned parcels, staff asks the following policy question:

Policy Question:

Should ADUs be permitted in all projects that utilize Government Code 66499.41, which includes parcels within both single-unit and multi-unit zoning districts?
Options:
➢ Yes, allow ADUs in all zoning districts utilize Government Code 66499.41
➢ No, only allow ADUs when Government Code 66499.41 is utilized on parcels zoned for single-unit residential.

Environmental Review

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The amendment to the Zoning Ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b), which states that an ordinance to implement Government Code Sections 65852.28 and 66499.41 (SB 1123/SB 684) shall not be considered a project subject to CEQA (Section 21000 et seq of the Public Resources Code).

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

Prepared By: Ross Fehrman, Principal Planner
Approved Forwarded to Council
Attachments:

A. 2025.06.10 - SB 1123_EIZO
B. Written Comments
C. PowerPoint Presentation

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1 City Council Meeting: June 10, 2025 Santa Monica, California EMERGENCY INTERIM ZONING ORDINANCE NUMBER _________ (CCS) (City Council Series)

AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SANTA MONICA PERMITTING THE ESTABLISHMENT OF ACCESSORY

DWELLING UNITS (ADUS) AS PART OF PROJECTS UTILIZING SENATE BILL (SB) 1123 ON VACANT PARCELS ZONED FOR SINGLE-UNIT RESIDENTIAL WHEREAS, California has a statewide housing crisis, represented by a shortage of nearly 3,500,000 homes; and
WHEREAS, California’s housing crisis stifles economic growth, contributes to the homelessness epidemic, consumes an ever-growing share of the paychecks of working families, and holds millions of households back from realizing the California dream of home ownership; and
WHEREAS, the State has declared that restrictive zoning, land use, and burdensome permitting policies at the local and state level are a major cause of the shortfall between California’s housing needs and the available supply of housing; and WHEREAS, home ownership is still the primary way in which most Americans build wealth and assets; and
WHEREAS, California has the third highest median home price in the country and the high cost of housing has pushed what was once a modest goal further and further out of reach for most people of color; and
WHEREAS, home ownership rates in California are among the lowest nationwide, and in recent years those numbers have continued downward, including a 3.19 percent decline from 2020 and 2022; and

12.C.a
Packet Pg. 1213 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 2 WHEREAS, while the home ownership gap is an issue throughout the country, the rate of African American and Latinx home ownership is significantly worse in California – at a national level, African Americans and Latinx have a home ownership rate of 42 percent and 47 percent, respectively, while here in California, that rate drops down to 35 percent and 42 percent, respectively; and
WHEREAS, the Legislative Analyst’s Office has identified a lack of housing supply as one of the culprits for the severe home ownership gap; and WHEREAS, the office’s 2016 housing affordability report found that “the state’s housing shortage also makes many Californians, not only low-income residents, more likely to commute longer distances, live in overcrowded housing, and delay or forgo home ownership”; and
WHEREAS, according to the Urban Institute, multifamily construction built for sale accounted for only 5.4 percent of all multifamily starts and only 2.7 percent of all singlefamily and multifamily home construction for the first three quarters of 2021; and WHEREAS, houses cost more in California due to increased costs, heavy regulatory hurdles, and mandatory features and fees that add tens of thousands of dollars to the cost of each unit; and
WHEREAS, as production has slowed and changed, for-sale inventory has tightened, particularly for entry-level homes; and
WHEREAS, higher home prices have translated to less diversity in who is able to purchase a home; and

12.C.a
Packet Pg. 1214 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 3 WHEREAS, home ownership is a powerful tool to close the racial and ethnic wealth gap across the State of California and nationwide; and
WHEREAS, the production of new market-rate housing frees up existing, more affordable housing elsewhere in the region for sale or rent to lower and middle-income households; and
WHEREAS, based on these realities, on September 19, 2024, Governor Newsom signed and approved Senate Bill 1123 (SB 1123) which becomes operative on July 1, 2025; and
WHEREAS, SB 1123 expands upon prior State law (SB 684) to allow a “vacant” parcel zoned for single-unit residential to be ministerially subdivided to up to 10 ownership units; and
WHEREAS, while most aspects of SB 1123 are compulsory, there are some areas that are at the discretion of each local jurisdiction, including the ability to include Accessory Dwelling Units (ADUs) in SB 1123 projects; and WHEREAS, SB 1123 states that “a local agency is not required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels created through the exercise of the authority contained within this section”; and WHEREAS, however, if a local jurisdiction does decide to permit ADUs, “the units shall not count as residential units” when determining how many units can be established within developments that have subdivided a parcel pursuant to SB 1123; and

12.C.a
Packet Pg. 1215 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 4 WHEREAS, in order to provide more diverse housing options for residents in Santa Monica, on May 13, 2025, City Council gave direction to staff to return on June 10, 2025 with an ordinance to allow ADUs in conjunction with projects utilizing SB 1123; and WHEREAS, there are numerous applicants in the City that would like to avail themselves of these provisions, including the ability to include ADUs in their projects, as soon as SB 1123 becomes operative on July 1, 2025; and
WHEREAS, with approval of these interim zoning regulations, all applicable provisions under State ADU law and the City’s local implementation will be available to parcels created by utilizing SB 1123, including, but not limited to, the number of ADUs that can be permitted on a single parcel; and
WHEREAS, the City is still evaluating all aspects of SB 1123 and will return at a future date with a more comprehensive ordinance upon receipt of guidance from the State on SB 1123’s implementation, including, but not limited to anticipated guidance from the California Department of Housing and Economic Development (HCD); and WHEREAS, there exists a current and immediate threat to public health, safety, and welfare requiring this Emergency Interim Zoning Ordinance due to: (1) statewide and local housing crisis; (2) Council’s direction to expand housing choices within the City through the establishment of Accessory Dwelling Units as part of projects utilizing SB 1123 on vacant parcels in the single-unit residential zoning districts; (3) the several applicants seeking to utilize these provisions as soon as SB 1123 becomes operative on July 1, 2025; and (4) staff’s limited ability to bring forward permanent changes to the City’s Municipal Code by the July 1, 2025 effective date.

12.C.a
Packet Pg. 1216 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Notwithstanding anything to the contrary in the Santa Monica Municipal Code, housing development projects and subdivisions located on parcels zoned for single-unit dwellings that are eligible for ministerial approval under SB 1123, codified at Government Code Sections 65852.28 and 66499.41, may establish Accessory Dwelling Units in accordance with Santa Monica Municipal Code Section 9.31.025, Accessory Dwelling Units and Junior Accessory Units.

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

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective immediately upon adoption. Pursuant to Sections 615 and 619 of the City Charter, and

12.C.a
Packet Pg. 1217 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 6 Section 9.46.090 of the Municipal Code, for the reasons stated in the recitals above, the staff report accompanying this ordinance, oral and written testimony received by the City Council, and City Council discussion, the City Council declares this ordinance to be necessary as an emergency measure for preserving the public peace, health, and safety, with the result that this ordinance shall be introduced and adopted at the same meeting and shall become effective immediately upon its adoption.

SECTION 5. This Ordinance shall be of no further force and effect sixty days from its effective date, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090(C).

APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney

12.C.a
Packet Pg. 1218 Attachment: 2025.06.10 - SB 1123_EIZO (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing 1 David Yakobson
From: Elizabeth Van Denburgh <[email protected]>
Sent: Tuesday, June 10, 2025 11:59 AM
To: Barry Snell; [email protected]; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Natalya Zernitskaya; councilmtgitems
Subject: City Council Mtg. - 6/10/25 - Wilmont Board OPPOSES -- Request for Pilot Program Allowing Market-Rate Housing Projects.

EXTERNAL
Dear Mayor Negrete and City Council Members,
The Wilshire Montana Neighborhood Coalition (Wilmot) Board of Directors opposes Item

12.C, which misuses the Council’s emergency powers in order to rush through a massive increase in residential density limits. The Council undoubtedly knows this will be unpopular with, and unwanted by, residents of this city, and by declaring a farcical “emergency,” the Council would knowingly and deliberately circumvent the normal process of public deliberation and review.

According to the proposed resolution, “the City is still evaluating all aspects of SB 1123,” and the Staff Report is based on staff’s preliminary understanding of the bill. And yet, through a proposed misuse of the Council’s emergency powers, facing the effective date for SB 1123 mere weeks away, the Council is presented with an emergency interim ordinance – no review, deliberation, or public vetting by the Planning Commission, and no guidance from the California Department of Housing and Community Development (HCD) about adding ADUs to the ordinance.

In the nearly nine months since SB 1123 was signed into law, has the City sought technical assistance from HCD? In the nearly nine months since SB 1123 was signed into law, has the City assessed the impacts of adding ADUs to our city’s SB 1123 implementing ordinance, such as impacts to infrastructure, public services (including fire, police, and other emergency response), and environment? Why now, nearly nine months after SB 1123 was signed into law, would the Council bypass review by our city’s Planning Commission by fabricating an “emergency”? Does the Council view a thorough public vetting by the Planning Commission as an unnecessary inconvenience, not wanting to be bothered by views that are contrary to those of the developers that requested this Emergency Interim Zoning Ordinance? How could you in good conscience possibly accept that “there exists a current and immediate threat to public health, safety, and welfare” that requires allowing developers to include ADUs in development projects that could already convert single-family lots into ten-unit subdivisions? The Council must reject this proposed misuse of its emergency powers, reject the reckless and unwarranted addition of ADUs, and instead consider an Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1219 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 SB 1123 implementing ordinance through the normal process of public deliberation and review. Failing to do this would destroy the Council’s credibility to challenge the misuse of emergency powers at another level of government, which the Council members should be very circumspect about doing at this particular moment in time.

Many Thanks,
Wilshire Montana Neighborhood Coalition
Board of Directors
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1220 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: Edward Cronin <[email protected]>
Sent: Tuesday, June 10, 2025 12:00 PM
To: councilmtgitems
Subject: Agenda Item 12.C - City Council Meeting 6/10/25

EXTERNAL
Hello,
I would like to submit a public comment statement regarding the below agenda item:

12.C. Public Hearing and Adoption of an Emergency Interim Zoning Ordinance to Permit the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill 1123 on Vacant Parcels Zoned for Single-Unit Residential.

I would like to express my support for the adoption of ADU's in conjunction with SB1123. The addition of ADU's with the primary dwelling units provides the necessary flexibility to create more missing middle housing in the City of Santa Monica.

I would also urge City Council to consider removing objective zoning, subdivision and design standards to the ADU's as well, to be consistent with the intent of the state code 65852.28(b)(2):
65852.28(b)(2)
'a local agency shall not impose on a housing development an objective zoning/subdivision/design standard that does or is any of the following:' (c) - Requires a setback between the units, except as required in the California Building Code (Title 24 of the California Code of Regulations).

Specifically, City Council should consider the adjustments to the following objective design standards to ensure that a minimum of 1750sf of livable area per primary unit can actually be built, as well as the necessary flexibility to build ADU's:
 Removal of all setbacks from any newly created interior lot line.  Removal of all stepbacks to the primary units and ADU's  A reduction of the front setback requirement to a minimum of 15ft in single unit residential zones.
 An increase of one storey in height and an additional 11ft.  An increase in FAR to achieve a minimum of 1750sf of livable area per primary unit.

Thank you for your consideration.

Sincerely,
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1221 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 4 To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

Edward Cronin, RA, ARBV, Architect
Founding Principal
e: [email protected]
p: 971 303 4641
OPEN Office
5880 Blackwelder St.

Culver City, CA 90232
openoffice.design
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1222 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: [email protected]
Sent: Tuesday, June 10, 2025 11:57 AM
To: councilmtgitems; Barry Snell; Caroline Torosis; Dan Hall; Ellis Raskin; Jesse Zwick; Lana Negrete; Natalya Zernitskaya; Armine Chaparyan
Cc: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]
Subject: FOSP: City Council 6/10/25 agenda item 12-C -- OPPOSE

EXTERNAL
June 9, 2027
To: Mayor Negrete and City Council Members
From: Board of Directors, Friends of Sunset Park
RE: 6/10/25 agenda item 12-C -- OPPOSE
The FOSP Board opposes Item 12-C, which misuses the Council’s emergency powers in order to rush through a massive increase in residential density limits. The Council, by declaring an “emergency,” is circumventing the normal process of public deliberation and review.

According to the proposed resolution, “the City is still evaluating all aspects of SB 1123,” and the Staff Report is based on staff’s preliminary understanding of SB 1123.

And yet, through a proposed misuse of the Council’s emergency authority, facing the effective date for SB 1123 mere weeks away, the Council is presented with an emergency interim ordinance – no review, deliberation, or public vetting by the Planning Commission, and no guidance from the California Department of Housing and Community Development (HCD) about adding ADUs to the ordinance.

In the nearly 9 months since SB 1123 was signed into law, has the City sought technical assistance from HCD? In the nearly 9 months since SB 1123 was signed into law, has the City assessed the impacts of adding ADUs to our city’s SB 1123 implementing ordinance, such as impacts to infrastructure and public services, including fire, police, and other emergency response? Why now, nearly 9 months after SB 1123 was signed into law, would the Council bypass review by our city’s Planning Commission by fabricating an “emergency”? Does the Council view a thorough public vetting by the Planning Commission as an unnecessary inconvenience, not wanting to be bothered by views that are contrary to those of the developers that requested this Emergency Interim Zoning Ordinance?
How could you in good conscience accept that “there exists a current and immediate threat to public health, safety, and welfare” that requires allowing developers to include ADUs in development projects that could already convert single-family lots into ten-unit subdivisions? Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1223 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 The FOSP Board urges the Council to reject this proposed misuse of its emergency powers, reject the reckless and unwarranted addition of ADUs, and instead consider an SB 1123 implementing ordinance through the normal process of public deliberation and review. Failing to do this would destroy the Council’s credibility to challenge the misuse of emergency powers at another level of government, which the Council members should be very circumspect about doing at this particular moment in time.

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1224 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: Richard Milanesi <[email protected]>
Sent: Tuesday, June 10, 2025 11:55 AM
To: councilmtgitems
Cc: Lana Negrete; Dan Hall; [email protected]; Jesse Zwick; Natalya Zernitskaya; [email protected]; Ellis Raskin
Subject: REJECT 12 C

EXTERNAL
To the Members of the City Council,
I respectfully urge you to reject Item 12C—the proposed emergency interim ordinance permitting ADUs on SB1123 projects.

A. There Is No Legitimate Emergency
SB1123 was signed into law in September 2024, with a delayed effective date of July 1, 2025— intentionally allowing local jurisdictions time to develop thoughtful, compliant ordinances. Rather than using this time to engage with SB1123’s potential for moderate-income housing, the Council instead focused on SB9—legislation unrelated to the kind of projects SB1123 was meant to support. A few prospective applicants and an approaching implementation date do not constitute an emergency. If urgency exists, it is a result of the Council’s own inaction, which does not satisfy the legal threshold for emergency legislation.

B. The Ordinance Appears Tailored to a Single Developer The only known parcel that would immediately benefit is a vacant lot on Stanford Street, reportedly owned by an out-of-state corporate developer with ties to Councilmembers Hall and Zwick. Crafting an emergency ordinance to benefit one private entity undermines public trust and sets a troubling precedent. Any project on that site should be evaluated through standard procedures, not expedited under questionable claims of emergency.

I urge you to reject—or at the very least, table—this ordinance. It is neither justified nor in the public interest.

Respectfully,
Richard Milanesi
Santa Monica

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1225 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Nikki Kolhoff <[email protected]>
Sent: Tuesday, June 10, 2025 11:21 AM
To: councilmtgitems
Cc: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Barry Snell; Ellis Raskin; Natalya Zernitskaya
Subject: June 10, 2025 City Council Item 12C - OPPOSE - Another Fake Emergency

EXTERNAL
Dear Mayor Negrete and City Council members,
THERE IS NO EMERGENCY.

It is so disgusting that this City Council is claiming that we have an emergency in order to push this zoning change through. Really, an emergency? As a reminder, the President is citing an "emergency" to send federal agents into our town and we all understand that was manugactured. Yet you expect us to believe “there exists a current and immediate threat to public health, safety, and welfare” in Santa Monica? And you expect us to believe that "emergency" is solved by allowing developers to build more market-rate ADUs?
We have a state-approved Housing Element. We are not required to do more, certainly not without following our established public process.

You are already proposing to implement SB1123, the law passed by the State Legislature. We are not required to do more, certainly not without following our established public process.

THERE APPEARS TO BE ONLY ONE PARCEL ELIGIBLE FOR THIS SOLUTION.

It is is very disturbing that no data is presented by staff or council to show how this "solution" solves for the "emergency." Residents have only been able to identify ONE vacant R-1 lot. ONE. And that lot is suspiciously owned by a developer who has unsuccessfully tried to build on an R-1 lot and appears to be lobbying certain councilmembers and staff to make new law to benefit their desired projects.

And this "solution" of course takes years to permit and build, with absolutely no immediate impact on the claimed "emergency". This merits an investigation, not a concession.

I urge you to reject this "solution" to a manufactured "emergency". We have an established process for zoning changes and it should be followed. Vote NO on 12C.

Regards,
Nikki Kolhoff
Santa Monica Resident and Voter
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1226 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Noma Boardmember <[email protected]>
Sent: Tuesday, June 10, 2025 10:28 AM
To: Barry Snell; [email protected]; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Natalya Zernitskaya; councilmtgitems
Cc: Bruce Leddy; Nancy Coleman
Subject: 6-10-25 ITEM 12.C - OPPOSE

EXTERNAL
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

TO: Mayor Negrete and Council Members
RE: ITEM 12.C, June 10, 2025 – OPPOSE
The Board of NOMA opposes Item 12.C, which misuses the Council’s emergency powers in order to rush through a massive increase in residential density limits. The Council undoubtedly knows this will be unpopular with, and unwanted by, residents of this city, and by declaring a farcical “emergency,” the Council would knowingly and deliberately circumvent the normal process of public deliberation and review.

The Board of NOMA
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1227 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 NOMA'S Next Meeting: Thur. Aug. 7th
at 7PM on ZOOM
https://us02web.zoom.us/j/81526517066
smnoma.org
[email protected]
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1228 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: Cynthia Rose <[email protected]>
Sent: Tuesday, June 10, 2025 10:07 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

Housing costs are too high, and working families and essential workers are being pushed farther away because there aren’t enough homes that meet people’s needs. Right now, it’s too easy to tear down an old home and build a luxury mansion, but it’s not as easy to build modest starter homes that help families and workers stay rooted in our community.

SB 1123 is a chance to change that and create more affordable housing options in our single-family neighborhoods. I urge you to make sure Santa Monica’s implementation of SB 1123 is clear, transparent, and focused on unlocking the full potential of this new law.

Please also ensure that accessory dwelling units (ADUs) are allowed as part of these new housing opportunities, so that families, seniors, and caregivers have more options to stay in the communities they love.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Cynthia Rose
90404
Cynthia Rose
Sent from imobile device, please excuse random acts of autocorrect....

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1229 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 4 David Yakobson
From: Dustin Shahan <[email protected]>
Sent: Tuesday, June 10, 2025 9:53 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Dustin Shahan
90401
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1230 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 5 David Yakobson
From: Mark Borenstein <[email protected]>
Sent: Tuesday, June 10, 2025 9:47 AM
To: councilmtgitems
Subject: You should reject Item 12C on the Agenda today Attachments: City council email.docx

EXTERNAL
Please provide my comments to the council members. Thank you very much.

Mark Borenstein
Sent from my iPad
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1231 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) To the Members of the City Council:

I urge you to reject Item 12C, on your Agenda for June 10, 2025, which concerns adoption of an emergency interim ordinance to allow ADUs on projects developed under SB1123.

A. THERE IS NO EMERGECY. SB 1193 was signed into law last September, but was not effective until July 1, 2025. There are both mandatory and discretionary provisions in the new law that requires thoughtful consideration by local jurisdictions, and the legislature wisely gave cities and counties 10 months to develop local ordinances to implement SB1123. Instead of focusing on SB1123 which actually has the potential for creating near moderate income housing, our council improperly and illegally tinkered for most of that 10 months with the local SB9 ordinance. SB9 was never designed for developer constructed multifamily moderate income projects.

The claim there are “numerous applicants” or just “several applicants” who allegedly want to build ADUs on SB1123 projects, even if true, does not create a emergency. Nor does the July 1, 2025 effective date for SB1123. The urgency, if there really is an urgency, is entirely caused by the inaction of the City Council. And that inaction does not create an emergency.

Even if there were inquiries about ADUs (and there is no evidence it is true), there is absolutely no need to adopt this ordinance on an emergency basis. Not only is the public peace, health and safety NOT impacted if this ADU law is not immediately passed, there is no emergency as a practical matter. After the City approves any tentative tract map under SB1123 to divide an R-1 lot into as many as 10 separate parcels, the developer must then have the tentative map approved by Los Angeles County, a process that could take up to a year. The City cannot issue any building permits until a final tract map is approved. The developer will have many months before it can submit the actual plans-whether the plans include an ADU or not, for building anything.

In addition, as noted below, there is only one vacant lot that may currently qualify for development under SB1123. Developers will first need to make an existing lot “vacant” by demolishing an existing single family home. That process also takes time, and certainly not something that justifies “emergency” action by the City Council.

B. There is No SB1123 Implementing Ordinance. The City has not started drafting an ordinance to implement SB1123. Like SB9, SB1123 is a new approach to building housing in R-1 zones. The City took more than a year to develop the SB9 ordinance Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1232 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) because there was many important policy issues to consider, which demanded an intensive public debate. Not only was there a detailed and lengthy staff report concerning the implications of different policy options, there was a public hearing before the Planning Commission, and there were several recommendations from the Commission which the Council considered, at another public hearing. There was meaningful public input. That could have happened with SB1123; the Legislature gave the City plenty of time.

That process should happen now. There are even more issues too consider under SB1123. This statute would benefit from careful and extensive consideration by City staff, the Planning Commission and, importantly, the public. Remember that the statute SB1123 amended was originally for projects in multifamily housing zones.

The addition of vacant lots in R-1 zones in SB1123 was a last minute add on.

SB1123 requires review to reconcile a multifamily statute grafted onto a single family lot.

In addition, SB1123 is designed to create very small parcels on which small homes can be constructed. An additional ADU would likely also be quite small. How to apply the City’s ADU ordinance, designed for larger lots, to the smaller parcels created by SB1123, is not obvious.

City Staff has not developed an SB1123 draft ordinance; it has not analyzed all of the impacts for our City that SB1123 could cause. This is especially important since any developer could buy a home in any R-1 zone and make that parcel “vacant” simply by demolishing the house. Instead of developing the primary SB1123 ordinance, the Staff suggests an emergency interim ordinance that is attached to nothing, without any meaningful evaluation by anyone and without an emergency.

C. The “Emergency” Is Designed to Impact Only One Vacant Lot. It is no less improper for the City to govern by “emergency” action, than it is for the White House to govern by executive order. That is especially true when the only vacant lot currently available for SB1123 subdivision in Santa Monica is a lot owned by an out of state corporate developer on Stanford Street. The apparent owners of the corporation are close friends with council member Dan Hall and worked closely with council member Jesse Zwick to increase the overall number of possible units on the parcel. The result of the “emergency” ordinance is to increase the value of this developer’s vacant R-1 lot. It is never responsible government to declare an “emergency” to help one company. That LLC may eventually create high end Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1233 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) housing of some sort on the vacant lot, which if done respectfully might even be supported by the neighborhood. But ramming an “emergency” ordinance down the throats of the voters never creates sensible housing policy.

The Council should reject this ill-concieved “emergency” ordinance.

Thank you for considering my comments.

Mark Borenstein
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1234 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 6 David Yakobson
From: Jason Mastbaum <[email protected]>
Sent: Tuesday, June 10, 2025 8:52 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Jason
90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1235 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: kent Strumpell <[email protected]>
Sent: Monday, June 9, 2025 10:42 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

SB 1123 is a chance to change that and create more affordable housing options in our single-family neighborhoods.

I urge you to make sure Santa Monica’s implementation of SB 1123 is clear, transparent, and focused on unlocking the full potential of this new law.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Kent Strumpell
1211 Michigan Ave
Santa Monica 90404
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1236 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 David Yakobson
From: Barbara Filet <[email protected]>
Sent: Monday, June 9, 2025 10:42 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

SB 1123 is a chance to change that and create more affordable housing options in our single-family neighborhoods.

I urge you to make sure Santa Monica’s implementation of SB 1123 is clear, transparent, and focused on unlocking the full potential of this new law.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Barbara FIlet
90404
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1237 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: T GROSSMAN <[email protected]>
Sent: Monday, June 9, 2025 11:15 PM
To: councilmtgitems; Council Mailbox; Lana Negrete
Subject: Re: Do not support 16.B

EXTERNAL
CORRECTION: this is. Re item 12 c
On Mon, Jun 9, 2025 at 10:57 PM T GROSSMAN <[email protected]> wrote:

Dear Mayor Negrete and Councilmembers,
I DO NOT support Santa Monica Forward’s call to pass Item 16.B. This item is poorly written and will NOT improve living conditions for our residents.

It is essential that feasibility analyses or additional justifications be required to use these flexible options. These kinds of studies are essential for rational planning that will incorporate our residents’ needs for environmental justice, adequate public utilities and sewer lines, open space, and locations suitable for groundwater permeability, the water source we will increasingly rely on in the future. Do not turn your back on the important information and analysis that feasibility studies give you, our city decision makers! While I support a family's decision to add an ADU on their lot according to their family needs, our city leaders must not ignore the value that green space found in SFR neighborhoods adds to our environmental needs. The yards found around SFR can provide green space that helps to cool off hot spots, hot spots being created by the use of cement and glass found in the dense housing now commonly found in our city, a city that is “park deprived” considering the growing number of housing units. Santa Monica is must be very thoughtful about allowing development that potentially destroys habitat for migrating birds and thoughtful about allowing buildings that do nothing to discourage bird strikes and heat islands. The drawbacks of particular developments must be carefully analyzed so the city can assist in mitigating harms to the environment, some of which could be permanent yet avoidable. Be smart. You can only pay attention if you receive the information
It is high time the city recognizes that cement is the third largest source of greenhouse gases in the world. Allowing building without carefully managing the development will contribute significantly to the GHG our City, County and State know is damaging to life on earth. Our city residents are expecting you to have integrity on environmental issues. Respect the positive contribution of green space, including that provided by SFR yards.

Please DO NOT pass Item 16.B as written and insist that careful analysis and feasibility studies be required before development is given the go light.

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1238 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 Thank you.

Tina Grossman
Resident since 1979
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1239 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: T GROSSMAN <[email protected]>
Sent: Monday, June 9, 2025 11:13 PM
To: councilmtgitems
Subject: Re: Automatic reply: Do not support 16.B

EXTERNAL
Correction : this is in reference to item 12C
On Mon, Jun 9, 2025 at 10:58 PM councilmtgitems <[email protected]> wrote:

Thank you for your email. Please be advised that this email will: 1) become part of the public record, 2) be filed with the City’s official records, and 3) be posted online at smgov.net/council/agendas. Comments will not be redacted and appear online as they are submitted.

If you plan to speak at the meeting and have an electronic presentation to show, please submit it to [email protected] no later than 12 PM on the day of the meeting.

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

Thank you,
The City Clerk’s Office
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1240 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Leonora <[email protected]>
Sent: Monday, June 9, 2025 3:45 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
[Your Name]
[Your ZIP]
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1241 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Allon Percus <[email protected]>
Sent: Monday, June 9, 2025 11:56 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123
Follow Up Flag: Follow up
Flag Status: Completed

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Allon Percus
Santa Monica, CA 90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1242 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 David Yakobson
From: Hank Koning <[email protected]>
Sent: Monday, June 9, 2025 11:03 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123
Follow Up Flag: Follow up
Flag Status: Flagged

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Hank Koning
Santa Monica Resident
909 25th St.
90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1243 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: Stu Selonick <[email protected]>
Sent: Monday, June 9, 2025 11:01 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Stu Selonick
90405
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1244 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 4 David Yakobson
From: Jacob Wasserman <[email protected]>
Sent: Monday, June 9, 2025 10:44 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Cc: Council Mailbox
Subject: Item 12.C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Councilmembers,
As a Santa Monica resident and voter, I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Jacob Wasserman
90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1245 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Joanne Leslie <[email protected]>
Sent: Sunday, June 8, 2025 9:49 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
[Your Name]
[Your ZIP]
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1246 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 1 David Yakobson
From: Eleanor Huntington <[email protected]>
Sent: Monday, June 9, 2025 5:35 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Eleanor Huntington
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1247 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 2 David Yakobson
From: Tracey Alexander <[email protected]>
Sent: Sunday, June 8, 2025 9:45 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

Please also ensure that accessory dwelling units (ADUs) are allowed as part of these new housing opportunities, so that families, younger adults, seniors and caregivers have more options to stay in the communities they love.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and our workforce as it is to build luxury homes for a few.

Thank-you for your dedication and leadership.

Sincerely,
Tracey Alexander
90272
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1248 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 3 David Yakobson
From: Boris Suchkov <[email protected]>
Sent: Sunday, June 8, 2025 3:38 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Boris Suchkov
90405
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1249 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 4 David Yakobson
From: Homegrown Recording & Collective <[email protected]> Sent: Sunday, June 8, 2025 1:01 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Danny Pravder
90043
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1250 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 5 David Yakobson
From: Phoebe Kiekhofer <[email protected]>
Sent: Sunday, June 8, 2025 11:41 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

SB 1123 is a chance to change that and create more affordable housing options in our single-family neighborhoods.

I urge you to make sure Santa Monica’s implementation of SB 1123 is clear, transparent, and focused on unlocking the full potential of this new law.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Phoebe Garfinkel
90402
Sent from my iPhone
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1251 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 6 David Yakobson
From: Andy Herman <[email protected]>
Sent: Sunday, June 8, 2025 10:59 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Rev Fr James J. Andrew Herman
retired priest of St. Monica Catholic Church
90025 (mailing ZIP)
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1252 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 7 David Yakobson
From: Eli Gill <[email protected]>
Sent: Sunday, June 8, 2025 10:17 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Eli Gill
90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1253 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 8 David Yakobson
From: Brent Cohen <[email protected]>
Sent: Sunday, June 8, 2025 10:04 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Oppose Item 12.C – SB 1123 Needs Thoughtful Implementation

EXTERNAL
Dear Mayor Negrete and Councilmembers,
As a longtime Santa Monica homeowner, I support SB 1123’s goal of allowing modest new housing on vacant lots in single-family zones. But I urge you to pause before expanding it further under Item 12.C.

Adding ADUs and JADUs into SB 1123 implementation without a clear framework risks confusion, overbuilding, and unintended impacts on infrastructure and neighborhood character.

Homeowners like me aren’t anti-housing. We want to be part of the solution—and we support smallscale infill when it’s done with transparency, good design, and proper planning.

Please don’t rush this. SB 1123 can be a helpful tool, but it needs a measured approach—not policy-byadvocacy letter. We need time to get this right.

Thank you,
- Brent Cohen (90405)
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.
photo Brent Cohen
310-613-0204 | [email protected]
GMT +8
Santa Monica, CA
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Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1254 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) 9 David Yakobson
From: Sam Shapiro-Kline <[email protected]>
Sent: Sunday, June 8, 2025 7:07 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Item 12C: Allow ADUs and Please Support an Effective Framework to Implement SB 1123

EXTERNAL
Dear Mayor Negrete and City Councilmembers,
I am writing to urge you to adopt a strong and effective framework to implement SB 1123 in Santa Monica.

More homes of all shapes and sizes strengthen Santa Monica. Let’s make sure it’s just as easy to build starter homes for families and workers as it is to build luxury homes for a few.

Thank you for your leadership.

Sincerely,
Sam Shapiro-Kline
90403
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.b
Packet Pg. 1255 Attachment: Written Comments (7094 : Emergency Interim Zoning Ordinance to Allow ADUs in Conjunction with Projects Utilizing SB1123) City Council
SB 1123 Emergency Interim Zoning Ordinance
June 10, 2025
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1256 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to Purpose
• Provide a high-level overview of how the City is required to implement SB 1123
• Implement May 13, 2025 Council direction to allow Accessory Dwelling Units (ADUs) in conjunction with projects utilizing SB 1123 • Emergency Interim Zoning Ordinance
• Immediately effective in time for SB 1123’s effective date of July 1, 2025 • Public inquiries and stated interest in the use of SB 1123 when it becomes available
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1257 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to SB 1123 - Background
• Effective July 1, 2025
• Builds upon prior State law (SB 684) which required local agencies to ministerially approve projects on parcels zoned for multi-unit residential developments:

1. Subdivision resulting in 10 or fewer parcels for certain housing development projects; and

2. Housing development project consisting of 10 or fewer units on a parcel resulting from a subdivision under SB 684.
• Expands the Government Code to apply to parcels zoned for single-unit residential, with some additional limitations and provisions
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1258 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to SB 1123 - Overview
The following overview is based on staff’s preliminary understanding of SB 1123; however, anticipated guidance from HCD and any applicable judicial guidance that may be issued may change the below interpretation and, consequently, the City’s implementation of SB 1123. • Expands Government Code Sections 65852.28 and 66499.41 to now apply to single-unit residential zoning districts (R1 & OP1)
• Parcels must be:
• “Vacant”, which is defined as “having no permanent structure, unless the permanent structure is abandoned and uninhabitable” at time of application submittal • No larger than 1.5 acres; and
• Surrounded by qualifies urban uses (which is all of Santa Monica) • Includes displacement/tenant protections
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1259 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to SB 1123 - Overview
• Locational restrictions include, but are not limited to:
• Parcels created utilizing “SB 9/450”
• Parcels within high or very high hazard severity zones • Parcels within a delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards
• Newly created parcels must be at least 1,200 SF in size. • Most applicable subdivision types permitted:
• Fee simple ownership lots
• Common interest developments (e.g., condominiums, planned developments, stock cooperatives, community apartment projects).
• Allows a local inclusionary ordinance to apply (SMMC Chapter 9.64 – Affordable Housing Production Program) Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1260 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to SB 1123 - Overview
• Allows for the ministerial subdivision of a parcel to up to 10 newly created parcels and may surpass local density limits (interpretation based on HCD Technical Assistance issued on May 5, 2025 to the City of Morro Bay) • Defaults to the underlying zoning district to determine what can be build on each newly created parcel • Example: Within the R1 zoning district, one single-unit dwelling can be built on each newly created parcel • May impose objective standards on development, but does not permit the following:
• Height limits less than the underlying zoning district • Setbacks between units
• Side and rear setback from the original lot line greater than 4’ • Parking within ½ mile walking distance of high-quality transit corridor • Development sizes that would not provide for the following:
• 1.0 FAR for project consisting of 3-7 units
• 1.25 FAR for projects consisting 8-10 units
• Average total area of floorspace exceeding 1,750 SF
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1261 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to Policy Question
Background:

Council’s direction to allow ADUs was related to the applicability of SB 1123 within the City’s single-unit dwelling zoning districts. However, SB 1123 was only an expansion of an already existing Government Code that also applies to multi-unit residential zoning districts.

Policy Question:

Should ADUs be permitted in all projects that utilize Government Code 66499.41, which includes parcels within both single-unit and multi-unit zoning districts? Options:
 Yes, allow ADUs in all zoning districts utilize Government Code 66499.41  No, only allow ADUs when Government Code 66499.41 is utilized on parcels zoned for single-unit residential.

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1262 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to Recommended Council Action

1. Adopt a finding of Statutory Exemption from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b).

Item 12-C
June 10, 2025
Item 12-C
June 10, 2025

12.C.c
Packet Pg. 1263 Attachment: PowerPoint Presentation (7094 : Emergency Interim Zoning Ordinance to City Council
Report
City Council Meeting: June 10, 2025
Agenda Item: 16.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Records and Election Services Department Subject: Request from the Santa Monica Library Board to assign a Council member as the Board’s Council Liaison
Prepared By: David Yakobson, Staff Assistant III
Approved Forwarded to Council
Attachments:

A. Request from the Library Board
B. Written Comments

16.A
Packet Pg. 1264
Santa Monica Public Library
601 Santa Monica Boulevard
Santa Monica, CA 90401
Santa Monica
Public Library
Board
Judith Meister
Chair
Dana Newman
Vice Chair
Antonio Spears
Jason Lin
Lucien
Plauzoles
June 24, 2024
Santa Monica City Hall
1685 Main Street, RM 209
Santa Monica, CA 90401
Dear Mayor Brock and City Councilmembers,
On behalf of the Santa Monica Library Board, I am writing to request a council member be assigned as a Council Liaison to the Library Board per Resolution Number 11510, Section 15. Council Liaisons.

As you may know, the practice of council appointed liaisons to boards and commissions was a standard practice in years past. We see the value in bringing on a liaison to inspire a well-informed council member who can advocate for the library and understand the challenges facing the library as well as the significant positive impacts the library provides to our community. A board liaison would have the benefit of hearing the Board’s perspective in addition to the usual reports from City staff. We often have the chance to meet with library board members from other communities who report this practice to be helpful in bringing more attention to the library.

As you are aware, the library is one of the remaining City departments that has not yet returned to pre-Covid budget levels. We are fortunate that the library staff, under the able and creative leadership of Director Erica Cuyugan, has been able to find ways to expand services and programs with limited resources. Board discussions with a Council Liaison may help to identify other creative ways to generate resources.

The library is one of our most cherished community institutions. Library staff and board members regularly engage with the public. Serving as a Council Liaison is a great opportunity to be out in the community and hear directly from residents.

We look forward to the chance to welcome a Council Liaison to the Library Board.

Sincerely,
Judith Meister, Chair
Santa Monica Public Library Board
cc: Erica Cuyugan, Director of Library Services

16.A.a
Packet Pg. 1265 Attachment: Request from the Library Board (7120 : 16.A..Library Board request for Council liaison) 1 David Yakobson
From: Judith Meister
Sent: Tuesday, June 10, 2025 10:21 AM
To: councilmtgitems
Cc: Erica Cuyugan
Subject: Item 16A - Appointment of Council Liaison to Library Board Dear Mayor Negrete and Council Members,
On behalf of the Library Board, I would like to clairfy our request for a Council Liaison. Our original request from June, 2024 is attached to the 16 Item. At that time Council Member Parra volunteered to be the liaison. Since Ms. Parra did not run for re-election, she did not serve as liaison. We are renewing our request at this time and urge the Council Members to consider appointing a liaison who may gain a better understanding of the Library's contribution to our residents as well as the critical need for more funding.

We were hopeful that additional funding for the libraries would be included in the proposed FY 2025-27 budget in response to the outpouring of community support for Fairview Library in April of this year.

Supporters were asking not only to keep Fairview open, but to restore full service to both Fairview and Ocean Park branches, which are open with self-service only two days per week.

We overlook the contribution of libraries to the wellbeing and safety of our neighborhoods. They offer access and a safe place to go for all ages. Libraries address everyday needs for many segments of our community– information, programs, free technology. Our library staff partner with public safety personnel. Libraries are our trusted places and are uniquely positioned to reimagine public safety.

We welcome a Council Liaison to join with our board and staff to help restore our libraries as the anchor to the community and neighborhoods, and a dynamic space for learning, curiosity, and connection.

Sincerely,
Judith
Judith Meister
Chair, Santa Monica Library Board
[email protected]
Item 16-A
June 10, 2025
Item 16-A
June 10, 2025

16.A.b
Packet Pg. 1266 Attachment: Written Comments (7120 : 16.A..Library Board request for Council liaison) City Council
Report
City Council Meeting: June 10, 2025
Agenda Item: 16.B
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Records and Election Services Department Subject: Request for Pilot Program Allowing Market-Rate Housing Projects Request of Councilmember Zwick, Mayor Pro Tem Torosis, and Mayor Negrete that the City Council direct the City Manager to return with a pilot program allowing market-rate housing projects more flexibility in how they provide affordable housing units off-site as a means to incentivize housing production for approved projects that are unable to proceed due to economic uncertainty. The pilot program should include provisions to ensure that the off-site affordable housing units are constructed and also allow housing projects to be eligible for density bonus, incentives/concessions, and modifications under State density bonus law.

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

A. Written Comments

16.B
Packet Pg. 1267
1 David Yakobson
From: Nikki Kolhoff <[email protected]>
Sent: Tuesday, June 10, 2025 11:22 AM
To: councilmtgitems
Cc: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Barry Snell; Ellis Raskin; Natalya Zernitskaya
Subject: June 10, 2025 City Council Item 16B - OPPOSE - No market-rate Projects

EXTERNAL
Dear Mayor Negrete and City Council members,
Please stop promoting market-rate development in Santa Monica. We don't need it.

This study shows that the biggest factor in the cost of housing is the income of residents in the area.

See: https://catalystsca.org/new-study-by-fed-economists-directly-contradicts-yimby-narrative-onhousing-prices/. This one is especially for Jesse who claims "all" the studies he has read say density increases affordability. That is false. But will he read this study or choose not to so he can continue to make his intentionally uninformed statement?
Density does not lead to affordability here where demand is inelastic. Trickle down housing doesn't work. We have already permitted more than double our RHNA target for market rate housing. So there is absolutely no reason to incentivize developers to build more market-rate rental units - more 100% UNafdordable projects.

And what does it even mean "for approved projects that are unable to proceed due to economic uncertainty"? What uncertainty? That they might not make as much money as they'd like if they include any affordable? So what. That is not the City of Santa Monica's problem.

Plus, those of us who have lived here for a while (compared to our council members who only recently moved here), have already seen the cycle of bogus "off-site" fees and promises fail. Stop wasting our time.

We have real problems to address in Santa Monica and building more market rate rental units isn't one of them. I urge you to vote NO on 16B so staff can focus on the real issues facing our residents TODAY.

Regards,
Nikki Kolhoff
Santa Monica Resident and Voter
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1268 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Cynthia Rose <[email protected]>
Sent: Tuesday, June 10, 2025 10:06 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Subject: Please Pass Item 16.B as Written to Support More Homes

EXTERNAL
Dear Mayor Negrete and Councilmembers,
I support Santa Monica Forward’s call to pass Item 16.B as written. This important item will make it easier to build new homes in our city by allowing developers to meet affordable housing requirements off-site or through partnerships with non-profit builders.

It is essential that no feasibility analyses or additional justifications be required to use these flexible options. These kinds of studies slow down and politicize the creation of new housing, adding unnecessary red tape and delays to urgently needed projects.

Santa Monica has already approved 4,000 new homes, including more than 400 below market rate homes, yet these remain unbuilt because of economic barriers. Removing hurdles like feasibility studies will help these homes break ground and deliver housing for people who need it.

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Cynthia Rose
90404
Cynthia Rose
Sent from imobile device, please excuse random acts of autocorrect....

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1269 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 2 David Yakobson
From: Dustin Shahan <[email protected]>
Sent: Tuesday, June 10, 2025 9:55 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Dustin Shahan
90401
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1270 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 3 David Yakobson
From: Soloff, Michael <[email protected]>
Sent: Tuesday, June 10, 2025 9:09 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Cc: [email protected]; [email protected]
Subject: Item 16B
Attachments: 6.10.25 SMRR ltr re Item 16B.pdf

EXTERNAL
Please find attached a letter from Santa Monicans for Renters’ Rights regarding Item 16B on tonight’s City Council agenda.

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1271 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) June 10, 2025
RE: Item 16.B on City Council’s January 28, 2025 Agenda Dear City Councilmembers,
We are writing to express the support of Santa Monicans for Renters’ Rights (“SMRR”) for development of a pilot program to allow greater flexibility in how market-rate housing projects contribute to the creation of deed-restricted affordable housing units in Santa Monica in order to create more affordable housing than that which otherwise will occur under the existing requirements of the State Density Bonus Law (“SDBL”) and Santa Monica’s Affordable Housing Production Program (“AHPP”). When developing this pilot program, the City should consider all of the resources at its disposal,1
and all of the potential models of affordable housing
creation,2 in order to determine how market-rate housing projects can best assist an integrated affordable housing creation strategy (and how market-rate developers can be incentivized to proceed in the manner that most assists that strategy). The City then should present its proposal and supporting analysis to the relevant Commissions and the public well in advance of any City Council adoption of the proposed pilot program. If properly designed and justified, the City Council then should authorize a true pilot program of limited size to test in the real world the assumptions underlying the supporting analysis.

Thank you for your consideration of SMRR’s views on this matter.

Sincerely,
Denny Zane Mike Soloff
Co-Chair, Santa Monicans for Renters’ Rights Co-Chair, Santa Monicans for Renters’ Rights 1 These include public land, funds generated by 2016 Measure GSH and 2022 Measure GS, and the ability to exchange density bonuses for contributions to affordable housing creation by the market rate developers (which could include building affordable units on their land or public land, financial contributions, and/or donations of land). 2 These include direct building of units with or without tax credit or other governmental subsidies, social housing (i.e., building mixed income projects on public land or other offsite land—or side by side projects like the Related project—that require less or no government subsidies to operate), and private capital projects (like Fly Away Homes or others).

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1272 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 4 David Yakobson
From: Jason Mastbaum <[email protected]>
Sent: Tuesday, June 10, 2025 8:52 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Jason
90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1273 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Abel, Richard <[email protected]>
Sent: Tuesday, June 10, 2025 6:12 AM
To: Lana Negrete; Caroline Torosis; [email protected]; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Richard Abel
90402]
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1274 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Allison Riley <[email protected]>
Sent: Monday, June 9, 2025 5:18 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; '[email protected]' Subject: SM City Council Meeting Item 16.a.

Attachments: 250608 SM Fwd Support Offsite AH.pdf

EXTERNAL
Please find attached our comment letter for item 16.a. on your Council Agenda.

Allison Riley, she/they
Co-Executive Director, Venice Community Housing
building affordable housing and communities since 1988
200 Lincoln Blvd., Venice, CA 90291
Office: 424-268-5120
Main: 310.399.4100
Fax: 310.399.1130
Email: [email protected]
VCH acknowledges our presence and work on the traditional, ancestral and unceded territory of the Tongva, Kizh, and Gabrielino peoples.

VCH stands and strives to act in solidarity with the Black Lives Matter movement.

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1275 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) June 9, 2025
Santa Monica City Council
1685 Main Street, Room 250
Santa Monica, CA 90401
VIA Email: [email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected]
Subject: Venice Community Housing Corporation Supports Item 16.B Dear Mayor and Councilmembers:

On behalf of Venice Community Housing Corporation, a non-profit, community-based organization committed to developing and preserving affordable housing across the Westside, I am writing to express our support for Item 16.B, which would expand flexibility in how developers meet their affordable housing obligations—specifically by allowing the construction of off-site affordable units in partnership with mission-driven, non-profit developers like us.

As an organization deeply committed to developing affordable, community-driven housing, we believe this policy change could unlock urgently needed homes for low-income individuals and families. We understand there are currently 443 below market rate units are required to be built in association with 57 mixed-income projects approved by the city of Santa Monica, that are stalled. Creating an opportunity for market rate developers to fund affordable housing built by non-profit organizations and meet their obligations is potentially an attractive opportunity for nonprofit organizations.

It would behoove the City remove unnecessary obstacles and embrace a variety of tools that enable these homes to be produced alongside the market rate homes proposed. We need many tools to build the necessary housing to meet the needs of the community.

We urge the Council to approve this item. We look forward to working with the City of Santa Monica to bring more affordable housing to life.

Sincerely,
Allison Riley
Co-Executive Director
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1276 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 4 David Yakobson
From: Scott Epstein <[email protected]>
Sent: Monday, June 9, 2025 11:00 PM
To: councilmtgitems
Cc: Azeen Khanmalek; Jake Pierce; Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya
Subject: Abundant Housing LA supports item 16.B
Attachments: Santa Monica - 06-10-25 Agenda Item 16.B - Support.pdf

EXTERNAL
Dear Santa Monica City Council Members:

Please find attached a letter of support for Item 16.B on tomorrow's council agenda.

Very best,
Scott Epstein
(He/Him)
Policy and Research Director, Abundant Housing LA
516-721-6056
453 Spring Street, Suite 1201
Los Angeles, CA, 90013
We request that candidates do not send us confidential campaign strategy information, including polling data or other information that is not publicly available.

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1277 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) June 9, 2025
Subject: 6/10/25 Agenda Item 16.B: Support
Dear Santa Monica City Council Members,
We write today in support of Item 16.B, which directs the city to facilitate new housing production by enabling more flexible options for affordable housing requirements. We urge you to pass this item as written, and to ensure that developers can by default select the option that works best for their particular project, whether that means providing affordable units on- or off-site.

Santa Monica suffers from sky-high housing costs, while at the same time every one of its neighborhoods is characterized as highest or high opportunity. More housing of all types and for all incomes is needed across the city. Flexibility around how the provision of affordable units is achieved will help deliver badly needed market rate and deed-restricted units to Santa Monica.

While creating mixed-income buildings where possible is desirable, we are much more concerned with building mixed-income communities, and opening up access to high opportunity cities like Santa Monica, so more people can enjoy all that the beautiful city by the sea has to offer.

We urge you to pass Item 16.B as written and remove any process hurdles so that Santa Monica can deliver more housing of all kinds more quickly.

Sincerely,
Scott Epstein, Policy and Research Director
Abundant Housing LA
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1278 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 6 David Yakobson
From: kent Strumpell <[email protected]>
Sent: Monday, June 9, 2025 10:42 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings. Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Kent Strumpell
1211 Michigan Ave.

Santa Monica 90404
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1279 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 7 David Yakobson
From: Barbara Filet <[email protected]>
Sent: Monday, June 9, 2025 10:41 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings. Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Barbara FIlet
90404
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1280 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Leonora <[email protected]>
Sent: Monday, June 9, 2025 3:45 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.
[Your Name]
[Your ZIP]
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1281 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Sarah Letts <[email protected]>
Sent: Monday, June 9, 2025 1:01 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Cc: Tara Barauskas
Subject: HCHC SUPPORTS Agenda item 16B

EXTERNAL
Dear Mayor Negrete and Councilmembers,
On behalf of Hollywood Community Housing Corporation (HCHC), a non-profit organization committed to developing and operating aƯordable rental housing, I am writing to express our strong support for Item 16.B as written because it would expand flexibility in how developers meet their aƯordable housing obligations— specifically by allowing the construction of oƯ-site aƯordable units in partnership with mission-driven, non-profit developers like HCHC.

I am reminded of The Arroyo (64 aƯordable apartments located at 1626 Lincoln Blvd) that I started while I worked at CCSM up through 2016, and that Tara Barauskas expertly completed in 2018. The Arroyo fulfilled the inclusionary housing requirements of a market rate development to be constructed within ¼ of a mile of The Arroyo. It was challenging to find a site within ¼ mile of the market rate development, so I applaud the plan to develop a pilot program that allows for more flexibility in how aƯordable housing units are provided oƯ-site.

Allowing developers to fulfil their aƯordable housing requirements through oƯ-site construction and partnerships is a practical, cost-eƯective solution to the challenge of housing community members across income levels.

These collaborations could enable us to build high-quality, 100% aƯordable communities that serve those most in need.

We urge the Council to approve this item as written—without requiring feasibility analyses or justifications that could delay construction of new homes. Instead, let’s focus on getting units built. Every delay prolongs the housing crisis for Santa Monica residents and workers who face rent burdens, housing insecurity, or are forced into long commutes.

While there is value in creating mixed-income buildings, creating a truly inclusive, mixed-income city must be the primary goal. Concerns about whether below-market-rate units are co-located with market-rate units should not override the urgent need for actual homes. We can—and must—pursue both equity and scale.

We look forward to working with the City of Santa Monica to bring more aƯordable housing to life.

16.B.a
Packet Pg. 1282 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 2 David Yakobson
From: Allon Percus <[email protected]>
Sent: Monday, June 9, 2025 11:46 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

It is essential that no feasibility analyses or additional justifications be required to use these flexible options.

These kinds of studies slow down and politicize the creation of new housing, adding unnecessary red tape and delays to urgently needed projects.

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Allon Percus
Santa Monica, CA 90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1283 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 3 David Yakobson
From: Tara Barauskas <[email protected]>
Sent: Monday, June 9, 2025 11:14 AM
To: councilmtgitems; Lana Negrete; Caroline Torosis; Jesse Zwick; Barry Snell; Dan Hall; Ellis Raskin; Natalya Zernitskaya
Subject: Support for Item 16B (June 10th) - inclusionary housing Attachments: 1986_001.pdf
Importance: High

EXTERNAL
Please see attached letter of support. Thank you.

Tara
Tara Barauskas, LEED AP
Executive Director
Community Corporation of Santa Monica
1410 2nd Street, Suite 200
Santa Monica, CA 90401
(310) 394-8487 ext. 133
[email protected]
www.communitycorp.org
I acknowledge with respect and gratitude the Tongva, Kizh, and Chumash Peoples on whose traditional territory I live and work.

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1284 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1285 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 4 David Yakobson
From: Hank Koning <[email protected]>
Sent: Monday, June 9, 2025 11:02 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Hank Koning
Santa Monica Resident
909 25th St.

Santa Monica 90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1286 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 5 David Yakobson
From: Stu Selonick <[email protected]>
Sent: Monday, June 9, 2025 11:01 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Stu Selonick
90405
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1287 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 6 David Yakobson
From: Jacob Wasserman <[email protected]>
Sent: Monday, June 9, 2025 10:44 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Cc: Council Mailbox
Subject: In Support: Item 16.B

EXTERNAL
Councilmembers,
As a Santa Monica resident and voter, I support Item 16.B as written. This important item will make it easier to build new homes in our city by allowing developers to meet affordable housing requirements off-site or through partnerships with non-profit builders.

It is essential that no ostensible feasibility analyses or additional justifications be required to use these flexible options. These kinds of studies slow down and politicize the creation of new housing, adding unnecessary red tape and delays to urgently needed projects.

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings. Housing is housing, and we should make it easier to provide it for everyone.

Please pass item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you,
Jacob Wasserman
90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1288 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 1 David Yakobson
From: Eleanor Huntington <[email protected]>
Sent: Monday, June 9, 2025 5:35 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Eleanor Huntington
90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1289 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 2 David Yakobson
From: Tracey Alexander <[email protected]>
Sent: Sunday, June 8, 2025 9:38 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Tracey Alexander
90272
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1290 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 3 David Yakobson
From: Jeremy Bamberger <[email protected]>
Sent: Sunday, June 8, 2025 6:04 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Jeremy Bamberger
90405
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1291 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 4 David Yakobson
From: Boris Suchkov <[email protected]>
Sent: Sunday, June 8, 2025 3:37 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunities and strengthen our community.

Thank you.

Boris Suchkov
90405
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1292 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 5 David Yakobson
From: Homegrown Recording & Collective <[email protected]> Sent: Sunday, June 8, 2025 1:01 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Danny Pravder
90043
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1293 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 6 David Yakobson
From: Phoebe Kiekhofer <[email protected]>
Sent: Sunday, June 8, 2025 11:41 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings. Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Phoebe Garfinkel
90402
Sent from my iPhone
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1294 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 7 David Yakobson
From: Andy Herman <[email protected]>
Sent: Sunday, June 8, 2025 10:55 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Rev Fr James J Andrew Herman
retired priest of St. Monica Catholic Church
90025 (mailing ZIP)
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1295 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 8 David Yakobson
From: Eli Gill <[email protected]>
Sent: Sunday, June 8, 2025 10:16 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Eli Gill
90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1296 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 9 David Yakobson
From: Brent Cohen <[email protected]>
Sent: Sunday, June 8, 2025 10:04 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Oppose Item 16.B – Keep Affordable Housing Accountable

EXTERNAL
Dear Mayor Negrete and Councilmembers,
As a 30-year Santa Monica homeowner, I support responsible housing growth—but I urge you to vote no on Item 16.B as written.

The idea that construction has stalled in Santa Monica is simply inaccurate. The City’s own dashboard shows over 800 units currently under construction and thousands more in the pipeline. Market conditions—not city policy—are the primary cause of any slowdown.

Item 16.B would let developers offload affordable housing responsibilities to off-site projects, with little to no oversight or feasibility review. That’s not smart policy—it’s a shortcut with long-term consequences.

We need flexibility, yes—but with real accountability. Removing feasibility studies and other safeguards would weaken our ability to ensure affordable units actually get built, and built in the right places.

Please revise or reject this item. Let’s encourage new housing without handing over the reins to developers unchecked.

Sincerely,
- Brent Cohen (90405)
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.
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310-613-0204 | [email protected]
GMT +8
Santa Monica, CA
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Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1297 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 10 David Yakobson
From: Steve Tarzynski <[email protected]>
Sent: Sunday, June 8, 2025 9:49 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.

Stephen Tarzynski
90403
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1298 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 11 David Yakobson
From: Joanne Leslie <[email protected]>
Sent: Sunday, June 8, 2025 9:48 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Please Pass Item 16.B as Written to Support More Homes

We need new homes at all income levels to create a mixed-income city, not just mixed-income buildings.

Housing is housing, and we should make it easier to provide it for everyone.

Please pass Item 16.B as written and remove these hurdles so we can unlock housing opportunity and strengthen our community.

Thank you.
[Your Name]
[Your ZIP]
Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1299 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 12 David Yakobson
From: Sam Shapiro-Kline <[email protected]>
Sent: Saturday, June 7, 2025 3:01 PM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems; [email protected] Subject: Explainer on Item 16.B and Letter in Support

EXTERNAL
Mayor & Councilmembers,
I am writing in support of Item 16.B directing the city to facilitate housing production through flexibility in the provision of off-site affordable housing units. Additionally, I know that the logic behind this item can be a bit wonky, and I have included my own explainer of why this policy is a smart one at the end! Passing the item as written would allow housing projects to meet their affordable housing requirements through partnerships with non-profit developers and/or building below market rate units off-site. Further, the city should not require any kind of feasibility analysis or justification to make use of this option for complying with affordable housing requirements on the part of developers, so as not to slow down or politicize the creation of new housing.

Today, the construction of new homes in Santa Monica is not moving forward due to the high costs of building, providing below market rate units, and paying for administrative and impact fees to the city. Santa Monica has approved more than 4,000 proposed homes which are not breaking ground due to economic infeasibility. It is crucial that the council do everything within its power to get these projects started and deliver desperately needed new housing in the city.

Building off-site or through partnerships is a powerful tool to reduce the cost of complying with Santa Monica’s affordable housing requirements. While I and Santa Monica Forward support the creation of housing at all income levels, we are concerned that the cost of complying with the city’s affordable housing requirements is preventing the creation of both market rate homes and the below market rate homes included in for-profit housing projects.

While there is value in creating mixed-income buildings including BMR units, it is far more important to create a mixed-income city that includes enough homes for all. Concerns about whether new BMR homes will be located elsewhere from new market rate homes should be treated as secondary - let’s just get them all built.

Detailed Explainer:
 Today’s Policy and Market Conditions
o Affordable Housing Policy: Santa Monica requires market rate housing projects to provide 15% of units as affordable housing / below market rate. While Santa Monica nominally has a policy allowing off-site affordable housing, functionally it is impossible to use because housing projects would not benefit from State Density Bonus Law which is crucial to making projects feasible. o Market Conditions & Feasibility: Approximately 4,000 homes are approved to be built in market rate housing projects, including 443 below market rate homes. These projects are currently “infeasible,” shown by the fact that no new projects are breaking ground. Projects are generally infeasible when building them is not very profitable taking into account the cost to build and current rents.
 Why Action is Needed:

Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1300 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects) 13 o To address our housing crisis, Santa Monica needs to build more homes for people across the income spectrum, both market rate and below market rate. o Many factors making projects infeasible today are not controllable locally, such as labor costs or interest rates. Meanwhile, it would exacerbate the housing crisis if the city did nothing to help build more units, and instead waited until rents increased (projects might become feasible if rents go up).
o Developers proposing housing projects in Santa Monica have indicated that changing the law to allow building the required below market rate units off-site and in partnership with non-profit developers would make some projects feasible, and get them building again!  What Action is Proposed:
o Item 16.B proposes to allow market rate housing projects to meet their affordable housing requirements through building below market rate units off-site while still being able to use State Density Bonus Law.
o With this change, below market rate units could also be built by non-profit affordable housing developers active in the city such as Community Corporation of Santa Monica, Venice Community Housing, EAH, or Hollywood Community Housing. o For-profit developers would make a payment to the non-profit developer which would function as part of the equity needed in the affordable housing project, and then the non-profit would raise additional funds through typical channels like tax credit loans.  Why is this a smart policy?
o First, it will help get more homes built including below market rate homes! In the current economic and tax environment, projects aren’t moving forward. This would lower the cost of complying with Santa Monica’s affordable housing requirements, while building just as many below market rate units.
o Second, in the long-term it could support goals such as building a significant volume of below market rate housing at the airport, advocated for as “Cloverfield Commons.” These projects could partner with market rate housing projects elsewhere in the city and receive funding.

Thank you,
Sam Shapiro-Kline
Santa Monica Forward Steering Committee
Abundant Housing Los Angeles, State Policy Committee Chair Item 16-B
June 10, 2025
Item 16-B
June 10, 2025

16.B.a
Packet Pg. 1301 Attachment: Written Comments (7118 : Pilot Program for Market Rate Housing Projects)

Santa Monica City CouncilJune 10, 2025

Santa Monica City Council
June 10, 2025