Agenda packet — Santa Monica City Council, July 8, 2025 (part 1 of 8)

City of Santa Monica
City Council Meeting
AGENDA

LANA NEGRETE
MAYOR

ELLIS RASKIN CAROLINE TOROSIS

COUNCILMEMBER MAYOR PRO TEM

DAN HALL BARRY SNELL

COUNCILMEMBER COUNCILMEMBER

JESSE ZWICK NATALYA ZERNITSKAYA

COUNCILMEMBER COUNCILMEMBER

ELAINE POLACHEK

INTERIM CITY MANAGER

DOUGLAS SLOAN

CITY ATTORNEY

NIKIMA NEWSOME

CITY CLERK

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

City of Santa Monica Generated: 7/9/2025 11:04 AM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11663(CCS))

WAYS TO PROVIDE PUBLIC COMMENT
If you are interested in providing public comment at a City Council meeting, there are several ways to participate:
(1) Written public comment. In lieu of oral public comment, the public is strongly encouraged to submit written public comment on agenda items via email to [email protected]. For written public comment submitted by 12:00 pm on the day of the meeting, best efforts shall be made to have them available online for viewing. Please note the agenda item number in the subject line of your written comments.
(2) Oral public comment.
- In-person: Persons wishing to address the City Council regarding items on the agenda must be present and submit their name and address (optional) to the City Clerk before the public comment section is opened for that item or before the public hearing is opened where one is required by law. Register to speak at the Speaker Kiosk prior to the meeting. - Telephone: Persons wishing to address the Council by telephone must register at santamonica.gov/public-comment no later than 5:00 p.m. the day before a meeting. Showing electronic presentation materials are not permitted when commenting by telephone.

Oral public comment from any one individual is limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes per agenda item if speaking on multiple items. A member of the public may allocate time between items in one-minute increments up to 2 minutes and those requesting to speak on only one agendized item for the meeting may speak for up to 4 minutes on that one item. Except for noticed public hearings or quasi-judicial items, if more than 25 speakers are registered to speak during a public input section, the amount of time shall be reduced to 1 minute per speaker during that section.

Except for the author of the request, public comment on 15-items are limited to 1 minute.

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 $500 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. Information regarding the Levine Act can be found here or you can contact the FPPC.

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

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

2. Special Agenda Items (Commendations and
Proclamations presented).

3. Public Comment for Consent Calendar and Closed
Sessions Only.

4. Consent Calendar (All items considered in one
motion unless removed by a City Councilmember for
discussion. No public comment is permitted on
second readings.)

5. Closed Sessions.

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

10. Ordinances:
• 1
st Reading
• 2
nd Reading (No public comment is
permitted on second readings.)

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

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

16. Councilmember Discussion Items.

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

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

City of Santa Monica Generated: 7/9/2025 11:04 AM Page 3

AGENDAS

CITY OF SANTA MONICA

REGULAR MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
TUESDAY, JULY 8, 2025
MEETING BEGINS AT 5:30 PM

HOW TO PROVIDE PUBLIC COMMENT BY TELEPHONE
Persons wishing to address the City Council by telephone must register at santamonica.gov/public-comment no later than 5:00 p.m. the day before a meeting.

Donation of time and showing electronic presentation materials are not permitted when commenting by telephone.

CALL TO ORDER

PLEDGE OF ALLEGIANCE / LAND ACKNOWLEDGEMENT

ROLL CALL
City of Santa Monica Statement of Accountability (Land Acknowledgement) The City of Santa Monica is located on the land of Tovangaar. With great respect, the City acknowledges the Gabrieleño/Tongva as the First People of this ancestral and unceded territory of Kuruvungna, a village that we know as Santa Monica. We honor their elders, past and present, and the Gabrieleño descendants who are part of the Gabrieleño /Tongva tribes.

We recognize that these peoples are still here, and as settlers and kuyam (guests), we recognize our responsibility and obligation to care for their land in partnership with them.

The City of Santa Monica commits to work in partnership with the Gabrieleño/Tongva people to uplift their voices and visibility on their ancestral land.

LEVINE ACT DISCLOSURES AND ANNOUNCEMENTS / PROCEDURAL

MOTIONS

1. GENERAL PUBLIC INPUT AND COMMENT ON SPECIAL AGENDA ITEMS (For regular meetings, public comment is permitted on Special Agenda Items and items not on the agenda that are within the subject matter jurisdiction of the City. State law prohibits the City Council from taking any action on items not listed on the agenda, including issues City of Santa Monica Generated: 7/9/2025 11:04 AM Page 4 raised under this agenda item. For special meetings, public input is limited to scheduled Special Agenda Items only.)

1.A. Written Comments

2. SPECIAL AGENDA ITEMS

2.A. Proclamation: National Parks and Recreation Month

3. PUBLIC INPUT (ITEMS UNDER CONSENT CALENDAR AND CLOSED SESSION ONLY)

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

4.A. Award Bid to AAAdvantage Concrete Coatings for the Resurfacing of Parking Structure 5 Stairs
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and Section 15302 of the California Environmental Quality Act (CEQA) Guidelines;

2. Award Bid #4504 to AAAdvantage Concrete Coatings for resurfacing of Parking Structure 4 and 5 stairs for the Department of Transportation Parking Operations Division; and

3. Authorize the City Manager to negotiate and execute a contract with AAAdvantage Concrete Coating in an amount not to exceed $750,971 (including a 5% contingency) for two years.

4.B. Award RFP No. SP2740 to Craftwater Engineering, Inc. to Prepare a Permeable Surface Alley Master Plan
City of Santa Monica Generated: 7/9/2025 11:04 AM Page 5 Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of exemptions pursuant to Section 15262 and Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines;

2. Award RFP# SP2740 to Craftwater Engineering, Inc., a California-based company, to provide services for the development of a Permeable Surface Alley Master Plan for Public Works Department; and

3. Authorize the City Manager to negotiate and execute a professional services agreement with Craftwater Engineering, Inc. in an amount not to exceed $345,000 (including a $45,087 contingency) for three (3) years, with one renewal option of up to two (2) years.

4.C. Award Request for Proposal to Intercare Holdings Insurance Services, Inc. for Workers' Compensation Claims Administration Services
Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 442 to Intercare Holdings Insurance Services, Inc. for workers’ compensation claims administration services for the Finance Department; and

3. Authorize the City Manager to negotiate and execute an agreement with Intercare Holdings Insurance Services, Inc., in an amount not to exceed $4,281,974 for five years, with future year funding contingent on Council budget approval.

4.D. Award Request for Proposal No. 427 and Agreement to Insight Strategies for Leadership Training
Recommended Action:

Staff recommends that the City Council:

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

2. Award RFP# 427 to Insight Strategies for coaching and leadership development training for the Department of Transportation; and

3. Authorize the City Manager to negotiate and execute an agreement with Insight Strategies, for an amount not to exceed $145,000 in fiscal year FY25-

26. 4.E. Approval of the Pier Corporation Fiscal Year 2025-26 Budget and Work Plan; Approval of Updates to Pier Leasing Guidelines; and Authorization to Execute a Sixth Modification to Services Agreement between the City and Santa Monica Pier Corporation
Recommended Action
Staff recommends that the City Council:

City of Santa Monica Generated: 7/9/2025 11:04 AM Page 6

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

2. Approve the Santa Monica Pier Corporation Fiscal Year 2025-26 Budget and Work Plan;

3. Approve Updates to Pier Leasing Guidelines: and

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

4.F. Authorization to Accept Urban Area Security Initiative (UASI) 2024 Grant for Homeland Security Projects
Recommended Action
Staff recommends that the City Council:

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

2. Authorize the City Manager to accept a grant award in the amount of $2,498,772 from the 2024 Urban Area Security Initiative (UASI) for homeland security projects in the Fire and Police Departments;

3. Authorize the City Manager to execute all necessary documents to accept the grant and any subsequent grant modifications; and

4. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).

4.G. Award Contracts for Seismic Retrofit Program Engineering Reviews City of Santa Monica Generated: 7/9/2025 11:04 AM Page 7 Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 437 to Degenkolb Engineers for seismic structural engineering services for the Community Development Department;

3. Authorize the City Manager to negotiate and execute agreements with Degenkolb Engineers, in an annual amount not to exceed $80,000 (for three years, with two additional one-year renewal options in the amount of $80,000, on the same terms and conditions) for a total amount not to exceed $400,000 over a five-year period, with future year funding contingent on Council budget approval;

4. Award RFP# 437 to IDS Group for seismic structural engineering services for the Community Development Department;

5. Authorize the City Manager to negotiate and execute agreements with IDS Group, in an annual amount not to exceed $80,000 (for three years, with two additional one-year renewal options in the amount of $80,000, on the same terms and conditions) for a total amount not to exceed $400,000 over a fiveyear period, with future year funding contingent on Council budget approval;

6. Award RFP# 437 to Forell/Elsesser Engineers for seismic structural engineering services for the Community Development Department;

7. Authorize the City Manager to negotiate and execute agreements with Forell/Elsesser Engineers, in an annual amount not to exceed $80,000 (for three years, with two additional one-year renewal options in the amount of $80,000, on the same terms and conditions) for a total amount not to exceed $400,000 over a five-year period, with future year funding contingent on Council budget approval.

4.H. Approval to Ratify Issuance of Purchase Order to Jilk Heavy Construction, Inc. for the Pier Pile Emergency Repair
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of categorical exemptions pursuant to Section 15301 and Section 15269 of the California Environmental Quality Act (CEQA) Guidelines.

2. Ratify the Procurement Manager’s issuance of a purchase order with Jilk Heavy Construction, Inc. to repair pile 18M underneath the Santa Monica Pier for the Public Works Department. The emergency purchase was made as an exception to the competitive bidding process pursuant to Section 2.24.250(i) and is for a total amount not to exceed $60,000.

4.I. Approval of Offer Letter for Retired Annuitant Extra Help Services in the City Manager’s Office – Elaine Polachek
Recommended Action
Staff recommends that the City Council
City of Santa Monica Generated: 7/9/2025 11:04 AM Page 8

1. Adopt a finding of no possibility of significant effect pursuant to Section 15601(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;

2. Approve the offer letter to Elaine Polachek for her services as extra help during the transition to a new permanent City Manager; and

3. Authorize the Mayor to sign the offer letter on behalf of the City.

4.J. Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan
Recommended Action
Staff recommends that the City Council:

1. Approve the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan; and,

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

4.K. Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan and License Agreement with DTSM
Recommended Action
Staff recommends that the City Council:

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

2. Approve the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2025-26 Budget and Work Plan; and

3. Approve a Third Street Promenade Public-Serving Programs and Amenities License Agreement to allow DTSM to operate events with alcohol service within the new Third Street Promenade Entertainment Zone and to include a shared revenue opportunity for DTSM and the City.

4.L. Adoption of a Resolution Accepting the Tentative Agreements and Authorizing the City Manager to Execute Memoranda of Understanding with the California Teamsters Local 986 (Teamsters), and the Santa Monica Police Officers Association (POA) - New Item Received. 7/03/2025
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of categorical exemption pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines;

2. Adopt the proposed Resolution (Attachment A) accepting the Tentative Agreements (TA) and authorizing the City Manager to execute Memoranda of Understanding (MOU) with the California Teamsters Local 986 (Teamsters), and the Santa Monica Police Officers Association (POA);

3. Adopt the salary schedule (Attachment B); and

4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).

City of Santa Monica Generated: 7/9/2025 11:04 AM Page 9

4.M. City Council - Regular Meeting - May 27, 2025 5:30 PM - New Item Received. 7/03/2025

5. CLOSED SESSIONS

5.A. Conference with labor negotiator - Gov. Code § 54957.6: City negotiator:

Mayor/Personnel Director; unrepresented employees: City Manager and Interim City Manager - New Item Received. 7/03/2025

5.B. Conference with labor negotiator - Gov. Code § 54957.6: agency designated representatives: Interim City Manager Elaine Polachek, Human Resources Director Dana Brown, and Human Resources Manager Sarah Rebensdorf; bargaining units: Municipal Employees Association (MEA) and Santa Monica Firefighters Local 1109 (Local 1109) - New Item Received. 7/03/2025

5.C. PUBLIC EMPLOYEE - Government Code Section 54957(b): Consider the evaluation of performance of a public employee. Title: City Clerk - New Item Received. 7/03/2025

CITY MANAGER REPORT

TRAVEL ANNOUNCEMENT AND MAYOR'S HIGHLIGHT

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS

7. STUDY SESSION

7.A. Santa Monica Airport Conversion Project (SMACP) Preferred Scenarios Review
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding that the recommended actions herein do not constitute a project subject to the California Environmental Quality Act (CEQA) and are exempt under CEQA Guidelines Sections 15262, 15306, and 15062;

2. Hold a study session to review and comment on the potential feasibility of the three planning scenarios and review community feedback from the engagement activities; and

3. Provide direction to staff on how to proceed with respect to Phase 3b, the development of a Preferred Scenario, and the community engagement activities.

8. CONTINUED ITEMS
No items

9. ADMINISTRATIVE PROCEEDINGS
City of Santa Monica Generated: 7/9/2025 11:04 AM Page 10 No items

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

10.A. Introduction and Adoption of Emergency Ordinance Amending SMMC 4.08.780 to Include Additional Prohibited Items at Public Assemblies and Community Events
Recommended Action
Staff recommends the City Council:

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

2. Introduce and adopt an emergency ordinance amending Santa Monica Municipal Code Section 4.08.780 to expand the list of prohibited items at public assemblies and community events to enhance public safety and prevent the escalation of violence.

11. STAFF ADMINISTRATIVE ITEMS
No items

12. PUBLIC HEARINGS
No items

13. REPORTS OF BOARDS AND COMMISSIONS
No items

14. RESOLUTIONS
No items

15. WRITTEN COMMUNICATIONS OTHER THAN REPORTS OF COMMISSION AND

OFFICERS
No items

16. COUNCILMEMBER DISCUSSION ITEMS

16.A. Annual Appointments to the following Boards and Commissions: - New Item Received. 7/03/2025
Board/Commission No. of Term Special Requirements
City of Santa Monica Generated: 7/9/2025 11:04 AM Page 11 Appointme
nts
End
Date
Santa Monica Travel & Tourism,
Inc. 2
6/30/20
29 -
Transit Security Advisory
Committee 1
6/30/20
29 Law Enforcement experience

16.B. Recommendation to rescind the appointment of Larissa Shadchina to the Housing Commission seat for an affordable housing program participant who is or was unhoused, for a term ending on June 30, 2027 - New Item Received. 7/03/2025

16.C. Recommendation to accept Laurie Yehia's resignation from the Arts Commission and authorize the City Clerk to publish the vacancy. - New Item Received. 7/03/2025

16.D. Request of Mayor Pro Tempore Torosis, Councilmember Raskin and Councilmember Zwick to direct the City Attorney to return with right to recall and labor peace ordinances to protect both workers and the City’s proprietary and financial interest in revenue-generating City-owned property. - New Item Received. 7/03/2025

16.E. Request of Councilmembers Hall, Raskin, and Mayor Pro Tempore Torosis that in order to ensure taxpayer dollars are used transparently, lawfully, and for the benefit of all residents, the City Council direct Staff to schedule a Council study session no later than September 30, 2025 and present options to reform the conditions for official recognition of community organizations and participation in grant programs. - New Item Received. 7/03/2025

16.F. Request of Councilmembers Zwick and Hall that the City Council direct the City Manager and Community Development Department to report back within 30 days on how the City plans to change its processes to comply with new timing mandates for housing approvals contained within budget trailer bill AB 130, under which ministerial housing development project entitlements must be approved or denied within two months of application completeness or are otherwise deemed approved. - New Item Received. 7/03/2025

16.G. Request of Councilmembers Hall, Zwick, and Mayor Pro Tempore Torosis that the City Council direct the City Clerk, as part of her quinquennial boards and commissions review, to return with a study session by September 30, 2025 that examines possibilities to reorganize, consolidate, and deprecate where necessary to streamline processes for residents and businesses and reduce duplicative workstreams and additional costs to the taxpayer. - New Item Received. 7/03/2025

ADJOURNMENT
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, City of Santa Monica Generated: 7/9/2025 11:04 AM Page 12 please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 12 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online. Members of the public who submit written public comment on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.

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

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

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

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

City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 1.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Records and Election Services Department Subject: Written Comments
Prepared By: David Yakobson, Staff Assistant III
Approved Forwarded to Council
Attachments:

A. Written Comments

1.A
Packet Pg. 13
1 David Yakobson
From: Ashley Sundquist <[email protected]>
Sent: Tuesday, July 8, 2025 4:09 PM
To: Lana Negrete
Cc: Caroline Torosis; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; Jesse Zwick; councilmtgitems; [email protected]; Rebecca Cannara Subject: Request for Letter of Commendation from City of Santa Monica | Noah Bardach

EXTERNAL
Hello City Council,
As a proud board member of The Salvation Army Santa Monica, it is with immense delight and profound respect that I officially request a well-deserved commendation from the City of Santa Monica for my dear friend and neighbor, Noah Bardach. His selfless dedication and remarkable contributions embody the very best of our community, and he is a true inspiration to our team. This request comes not only from a place of personal admiration but also from a deep recognition of Noah's profound and sustained contributions to our beloved community.

Noah is a software executive, UI/UX expert and human rights advocate. He holds a PhD in Art History, with a focus on political art and propaganda theory. Noah has worked in diverse fields, from leading an organic agriculture project in Southern Mexico to serving as an expert in the Prints and Photographs Division of the Library of Congress. Together with Hope Farley, Noah co-founded Universal Human Rights Initiative in 2016.

Noah is the quintessential Angeleno, a man whose entire life has been woven into the vibrant fabric of this remarkable region. His roots run deep, beginning with his upbringing in Pacific Palisades.

Further cementing his connection to our community, he has lovingly raised his two wonderful daughters right here in Santa Monica, a testament to his unwavering commitment to our city and its future.

At the core of Noah's being is an extraordinary and palpable passion for people—a quality that illuminates every facet of his life. He is not merely an observer of human suffering but a fierce and unwavering advocate for human rights, perpetually striving to uplift, protect, and empower the vulnerable among us. Beyond his overarching humanitarian concerns, Noah possesses a truly remarkable and rare ability to forge deeply compassionate connections with individuals grappling with immense and often overwhelming struggles. Whether they are battling the insidious grip of alcohol or drug addiction, enduring the harsh realities of homelessness, or grappling with the debilitating weight of poverty, Noah approaches each person with genuine empathy and an open heart. His compassion is far from theoretical; it is a powerful, animating force that drives his every action and interaction.

It is specifically in profound recognition of his unparalleled and sustained contributions to The Salvation Army Santa Monica Corps that I am requesting this commendation. For nearly 5 years, Noah has served with unwavering dedication as the Thursday Night chef for Vintage Church’s “Love LA” Dinner, tirelessly preparing a hearty burrito meal that is not only delicious and incredibly nutritious. This is a consistent beacon of hope and sustenance. This vital service feeds approximately 150 of our unhoused neighbors every single week, without fail. This incredible act of generosity and Item 1
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1.A.a
Packet Pg. 14
Attachment: Written Comments [Revision 1] (7193 : Written Comments) 2 care takes place at the bustling corner of Fourth and Broadway, a place that has welcomed our community's most vulnerable for 132 years.

Within the vibrant and often demanding kitchen of The Salvation Army, Noah transcends the role of a mere chef; he is an inspirational leader, a mentor, and a guiding force. He is widely renowned for his fresh ideas, perpetually pushing the boundaries to enhance the quality, nutritional value, and overall impact of the meals provided. His commitment to excellence is not just a standard but an unwavering ethos, meticulously evident in every single dish he meticulously prepares. Don’t leave seeds in the peppers under his watch! Colleagues and the countless recipients of his generosity alike speak with immense admiration of his profound dedication and the sheer, consistent quality of the food. They understand implicitly that every minute detail is of paramount importance to Noah, reflecting his deep respect for those he serves. And, of course, a quintessential part of Noah's compassionate spirit is his warm, comforting hugs—a small yet profoundly significant gesture that embodies his genuine care and connection. The boundless, loving care he pours into preparing these meals for our neighbors each week is not just observed; it is truly palpable, resonating deeply with everyone who benefits from his kindness.

Beyond his extraordinary community work, Noah is equally devoted in his personal life. He is a loving and committed husband to Rebecca Cannara, an educator and a devoted human rights advocate, and father to their two cherished daughters, Anya and Deva. His personal life is as rich, fulfilling, and dedicated as his public service, showcasing a man of profound integrity and unwavering commitment to all aspects of his life.

As a proud and active board member of The Salvation Army Santa Monica, it is with immense delight, profound respect, and an undeniable sense of urgency that I officially request this deeply welldeserved commendation from the City of Santa Monica for Noah Bardach. His selfless dedication, his boundless compassion, and his remarkable contributions embody the very best of our vibrant community. Noah Bardach is not merely a valuable asset to Santa Monica; he is a true inspiration, a shining example of what it means to live a life dedicated to service, empathy, and excellence.

Please let me know if I can provide additional information to support this request for commendation.

With gratitude for your consideration,
Ashley
--
Ashley Sundquist
mobile: (443) 742-4342
email: [email protected]
josh: www.joshsundquist.com
me: www.adventureunabashedly.com
linkedin: https://www.linkedin.com/in/ashleysundquist/
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1.A.a
Packet Pg. 15
Attachment: Written Comments [Revision 1] (7193 : Written Comments) 1 David Yakobson
From: John Alle <[email protected]>
Sent: Thursday, July 3, 2025 9:46 AM
To: The Santa Monica Coalition
Cc: John Alle
Subject: REUNIFICATION

EXTERNAL
Three years ago in Santa Monica, then-Mayor Gleam Davis welcomed this homeless transient and many others to the City, declared them "sidewalk citizens," and stated ANYONE on the streets or public spaces 5 months or more had the same rights as any other resident. The "Housing First' strategy with lots of "wrap around" services has not worked. What if the City had instead spent its time and money trying to reunify these homeless with their families and hometowns?
Insta
https://www.instagram.com/reel/DLprAkBC3Iv/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== YouTube
https://youtu.be/vhaZU2pcgPk
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1.A.a
Packet Pg. 16
Attachment: Written Comments [Revision 1] (7193 : Written Comments) 2 David Yakobson
From: John Alle <[email protected]>
Sent: Friday, July 4, 2025 8:59 AM
To: The Santa Monica Coalition
Cc: John Alle
Subject: 4th of July, 2025
Follow Up Flag: Follow up
Flag Status: Completed

EXTERNAL
May the Stars and Stripes fly forever! The Santa Monica Coalition/Safe Cities commemorates our country's adoption of the Declaration of Independence and our nation's founding principles in 1776.

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Item 1
July 8, 2025
Item 1
July 8, 2025

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Attachment: Written Comments [Revision 1] (7193 : Written Comments) 3 David Yakobson
From: input25 <[email protected]>
Sent: Monday, July 7, 2025 7:52 PM
To: councilmtgitems
Subject: Public input Item 1

EXTERNAL
Item 1
July 8, 2025
Item 1
July 8, 2025

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Attachment: Written Comments [Revision 1] (7193 : Written Comments) 4 Item 1
July 8, 2025
Item 1
July 8, 2025

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Attachment: Written Comments [Revision 1] (7193 : Written Comments) 5 David Yakobson
From: Gina Debaca <[email protected]>
Sent: Tuesday, July 8, 2025 12:02 PM
To: Council Mailbox
Cc: councilmtgitems
Subject: Boards Commissions

EXTERNAL
Good Afternoon Council Members
Please Remember the Importance of the Neighborhood Boards and the Committees.

The Housing Commission is crucial as well as the other committees.

Please when reviewing any Boards & Committees that ONLY Santa Monica Residents be allowed to serve on any Board or committee.

Our current Commissions & Neighborhood Boards are the voices of Your Constituents.

Thank You,
Gina DeBaca
310-266-2810
Item 1
July 8, 2025
Item 1
July 8, 2025

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Attachment: Written Comments [Revision 1] (7193 : Written Comments) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 2.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Special Agenda Items
Subject: Proclamation: National Parks and Recreation Month Prepared By: Kennisha Williams, Administrative Staff Assistant Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.A
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Parking Operations (DOT) Subject: Award Bid to AAAdvantage Concrete Coatings for the Resurfacing of Parking Structure 5 Stairs
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and Section 15302 of the California Environmental Quality Act (CEQA) Guidelines;

2. Award Bid #4504 to AAAdvantage Concrete Coatings for resurfacing of Parking Structure 4 and 5 stairs for the Department of Transportation Parking Operations Division; and

3. Authorize the City Manager to negotiate and execute a contract with AAAdvantage Concrete Coating in an amount not to exceed $750,971 (including a 5% contingency) for two years.

Summary
Parking Structure 4 (PS4), located at 1321 2nd Street, and Parking Structure 5 (PS5), located at 1440 4th Street, are highly utilized facilities in Downtown Santa Monica, serving over 800,000 parkers annually. The two staircases in each structure (4 total), are worn and in need of resurfacing. The Department of Transportation (DOT) is recommending approval of a proposed project to remove the outdated vinyl staircase coverings and install a durable Silikal R-61 CQ floor system to enhance safety, durability, and appearance. This new system will provide improved slip resistance, durability against wear, and ease of maintenance, ensuring the stairwells remain functional for daily use. Staff is recommending negotiating and executing a contract with AAAdvantage Concrete Coating in an amount not to exceed $750,971 (including a 5% contingency). This would likely be a two-year contract with no renewal options.

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Discussion
PS4 and PS5 are vital components of Downtown Santa Monica's parking infrastructure, serving an average of over 800,000 parkers annually. Most users exit on foot via one of the two staircases located at opposite corners of each structure. Given the high volume of foot traffic, these staircases endure significant wear, causing the vinyl stair coverings to become dated and damaged over time.

DOT’s Parking Operations Division has identified the need to replace the existing stairwell surfaces to maintain the safety and functionality of the facility. The current vinyl covering no longer meets the demands of such high foot traffic, and its condition has deteriorated beyond routine maintenance. Furthermore, the lack of any documented refurbishments or updates makes it critical to address the issue proactively before the condition worsens.

Staff are recommending replacing the worn coverings with the Silikal R-61 CQ floor system. This flooring solution has been chosen for its durability, specifically designed for high-traffic areas like stairwells. It offers superior resistance to wear and tear, which is essential given the daily foot traffic. Additionally, the system’s slip resistance ensures a safer experience for users.

The Silikal system is resistant to a wide range of chemicals, making it ideal for the environmental conditions in parking structures. Its easy maintenance and quick curing time mean that the installation will result in minimal disruption to the daily use of PS4 and PS5, allowing the structures to remain accessible during the resurfacing process.

This project will address both safety and aesthetic concerns, ensuring that the staircases remain in good condition for years to come. Replacing the flooring will also improve the overall appearance of the parking structures, creating a more inviting and professional environment for those who use the facilities. With this long-lasting upgrade, PS4 and PS5 will continue to serve as reliable, attractive, and safe parking options for the Downtown Santa Monica community, thereby supporting economic development and Downtown business success.

Vendor Selection
Bidder Recommendation
Best Bidder AAAdvantage Concrete Coating

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Evaluation Criteria The bids were evaluated based on cost and experience.

Municipal Code SMMC 2.24.180
Submittal Received
AAAdvantage Concrete Coatings $357,605.00
Bid Data
Posted On Posted On Advertised In
(City Charter &
SMMC)
Vendors
Downloaded
Date Publicly
Opened
May 1, 2025 City’s Online
Bidding Site
Santa Monica
Daily Press
2 May 28, 2025
Justification to Award
Staff recommends AAAdvantage Concrete Coatings as the best bidder. They ranked high in the categories of cost and experience, making them the best bidder.

Experience in similar projects (such as at Santa Monica Place) and with the required materials is essential to this work. They also are a certified installer of the Silikal flooring system, which was a bid requirement, unless a suitable approved alternate material was proposed.

This is a public space with a high volume of foot traffic and the project must be installed correctly in order to create a safe and functional public area. AAAdvantage brings proven expertise, having successfully completed similar projects. Their extensive experience with Silikal ensures that the material will be properly applied, delivering lasting, high-performance results. Ultimately, the choice of AAAdvantage provides the City with the best value in terms of performance, durability, and longterm cost savings. This investment is justified by their ability to meet the City's material specifications, provide expert installation, and deliver a superior, more reliable solution.

Public Outreach
The project is anticipated to take up to five weeks, with a phased scheduling approach to ensure that both stairwells in each structure are not closed simultaneously. Parking staff and the City’s parking operator, SP Plus, will coordinate with AAAdvantage Concrete Coatings to minimize impacts on PS4 and PS5 users. Monthly permit holders will receive an email notification, and notices detailing the planned work will be prominently displayed at both the vehicular and pedestrian entrances to PS5.

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Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 and Section 15302 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located in the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The project would resurface and replace existing worn stairs in PS5, and therefore, it has been determined that the project would fall within the Class 1 and Class 2 categorical exemptions. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 applies to this project.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a contract with AAAdvantage Concrete Coatings for the PS5 Stair Resurfacing project.

Contract Request
FY 2025-26 Request
Amount
Department/CIP Account # Total Contract Amount
$700,000 C0104890.689000 $650,000
$50,971 01600004.529460 $100,971
$750,971 Total $750,971

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Prepared By: Joyce Perez, Principal Administrative Analyst Approved Forwarded to Council
Attachments:

A. AAAdvantage - Levine_Act_Disclosure
B. AAAdvantage Oaks_Initiative

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Attachment: AAAdvantage - Levine_Act_Disclosure (6888 : Award Contract for Parking Structures 4 and 5 Stair Resurfacing)

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Attachment: AAAdvantage - Levine_Act_Disclosure (6888 : Award Contract for Parking Structures 4 and 5 Stair Resurfacing)

CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

AAAdvantage Concrete Coatings
Name(s) of trustees, directors, partners, and officers:

Steven Nieri, President
Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Steven Nieri, President
Prepared by: Steven Nieri Title: President
Signature: Steven Nieri Date: 02/12/2025
Email: [email protected] Phone: 714-783-0965 FOR CITY USE ONLY:

Bid/PO/Contract # Permit #

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Attachment: AAAdvantage Oaks_Initiative (6888 : Award Contract for Parking Structures 4 and 5 Stair Resurfacing) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.B
1 of 7
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street Services
Subject: Award RFP No. SP2740 to Craftwater Engineering, Inc. to Prepare a Permeable Surface Alley Master Plan
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of exemptions pursuant to Section 15262 and Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines;

2. Award RFP# SP2740 to Craftwater Engineering, Inc., a California-based company, to provide services for the development of a Permeable Surface Alley Master Plan for Public Works Department; and

Summary
The City is required to comply with the National Pollutant Discharge Elimination System (NPDES) permit—also known as the Regional Permit—which mandates the reduction of pollution in runoff that flows into Santa Monica Bay through the Municipal Separate Storm Sewer System (MS4), commonly referred to as the City’s storm drain system. As part of the Regional Permit, a Watershed Management Program (WMP) was developed for cities (Permittees) in Jurisdictional Groups 2 and 3 - which are cities along the Pacific Coast within the Santa Monica Bay Watershed. The WMP covers most of Central Santa Monica Bay, excluding the Marina del Rey and Ballona Creek Watershed Management Areas, and applies to areas that discharge stormwater runoff into Santa

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Monica Bay. The WMP serves as a guide to help these Permittees tailor their stormwater programs to meet the requirements of the Regional Permit. The WMP identifies locations along streets or alleys where stormwater runoff can be intercepted before entering the MS4.

The installation of permeable surfaces in alleys would allow stormwater runoff to infiltrate into the underlying soil and recharge the groundwater aquifer. This reduces the volume of runoff entering the Santa Monica Bay, providing both water supply and water quality benefits in alignment with Regional Permit initiatives. These ideas, along with other urban runoff Best Management Practices (BMPs), would be consolidated into a Permeable Surface Alley Master Plan (Plan) and used as a guide for future implementation. On January 29, 2025, the City issued a Request for Proposals (RFP) to develop a Permeable Surface Alley Master Plan. Staff recommends Craftwater Engineering, Inc. to provide services for the development of a Permeable Surface Alley Master Plan in an amount not to exceed $345,000 (including $45,087 contingency) over an initial three-year period, with an option for a two-year renewal.

Discussion
The public right-of-way (ROW) along streets and alleys presents one of the City’s most extensive opportunities to implement stormwater Best Management Practices (BMPs).

Alleys alone account for approximately 120 miles of ROW within the City of Santa Monica and represent a significant share of the city’s impervious surface area. These surfaces channel stormwater runoff directly into the municipal separate storm sewer system (MS4) and ultimately into Santa Monica Bay, contributing to ongoing water quality challenges.

To explore innovative strategies for stormwater infiltration in the public right-of-way (ROW), the City has implemented a range of permeable surface treatments over the past decade. Between 2012 and 2016, Street Services installed pervious concrete, porous asphalt, or permeable pavers in more than 20 alleys citywide. More recent installations include pervious concrete gutters completed between 2018 and 2019, such as:

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• 2019: Euclid Court (1500 block) – 2,000 square feet
• 2018: 11th Court (1500 block) – 2,000 square feet
• 2018: 15th Court (1500 block) – 2,000 square feet
These pilot installations provided valuable insights into the performance of permeable infrastructure and reinforced the City’s commitment to improving water quality and enhancing local stormwater capture. However, over time, some sites experienced performance challenges. These issues highlighted the need for more detailed information about subsurface conditions during planning and design. At the time, site selection was informed by both visual inspection and the best available data, including shallow percolation testing conducted at six locations throughout the City—three along residential alleys and three along Arizona Avenue. Site selection also prioritized alleys within watersheds that consistently exceeded water quality standards, such as PicoKenter and Pier. Lessons learned from these early efforts have shaped a more datadriven approach that includes soil characterization and site-specific assessments to support more effective and resilient infrastructure.

The variability of soil conditions across the City’s alleys presents design challenges for stormwater best management practices (BMPs), reinforcing the need for detailed geotechnical and percolation analysis. Previous work conducted by the City’s consultants including shallow percolation testing, informed initial site selection and design consideration. Building on that foundation, the current scope proposes to expand this analysis to additional locations and depths, supporting a citywide strategy for implementing a broader range of BMP types, including those that utilize deeper infiltration systems where feasible.

Future BMP options under consideration include permeable pavements, infiltration trenches, and deep infiltration wells. The selection would be guided by prior studies, feasibility of infiltration based on percolation and boring data, and broader geotechnical and site-specific assessments. Tailoring BMPs designs to individual site conditions would ensure long-term performance and cost-efficiency.

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This planning effort builds on earlier successes to improve water quality, support groundwater recharge, and advance compliance with the Regional Permit. Permeable pavement technologies—such as porous asphalt, pervious concrete, and interlocking pavers—are proven tools for urban stormwater management. In Santa Monica, where annual rainfall averages approximately 13 inches, these systems can reduce runoff, filter pollutants, and support aquifer sustainability, as outlined in the 2022 Santa Monica Basin Groundwater Sustainability Plan.

The scope also includes exploring deep infiltration wells located downstream of pervious surfaces, which can bypass shallow utility zones and introduce water into deeper permeable soil layers. Maintaining dry base and subbase layers beneath existing alley surfaces would help preserve pavement integrity while advancing the City’s stormwater and sustainability goals.

Consultant Selection
Bidder Recommendation
Best Qualified Firm Craftwater Engineering, inc.

Evaluation Criteria Experience (expertise and past performance in relevant projects), References (client feedback and reliability), Work Plan/Timelines (approach to project execution and
adherence to schedule). Project Team (qualifications and capability of assigned personnel), and Cost (competitiveness and value of the proposed pricing). These criteria ensured a comprehensive assessment of each firms’ abilities to
successfully complete the project.

Municipal Code SMMC 2.24.190

RFPs Received
Craftwater Engineering, Inc.

Tetra Tech

RFP Data
Date
Posted
Posted On Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened

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01/30/25 City’s Online
Bidding Site
Santa Monica Daily
Press
64 03/14/25
Justification to Award
Vendor proposals were evaluated by an Evaluation Committee from the Public Works Department using the criteria outlined in the RFP, which included experience, references, work plans and timelines, project team, and cost. Following a thorough evaluation, Craftwater Engineering, Inc. was identified as the best-qualified firm due to their demonstrated expertise in stormwater management. Their strong track record of successful project delivery and ability to provide responsive, high-quality services were significant factors in this determination.

Craftwater Engineering, Inc. showcased extensive experience in analyzing geotechnical data and developing master plans for BMPs implementation. Their work plans were detailed and well-structured, outlining clear methodologies for executing geotechnical analysis, and BMPs recommendations. They proposed a highly qualified project team, and experienced technical staff, further demonstrating their capability to meet the City’s needs.

Craftwater Engineering, Inc. received the highest scores during the evaluation process in both technical approach and ability to deliver quality results. Their commitment to thorough data analysis, compliance with local regulations, and practical design recommendations ensures that the City receives valuable insights for effective stormwater management.

Based on their qualifications, comprehensive work plan, and exceptional evaluation results, staff recommend awarding the contract to Craftwater Engineering, Inc.

Environmental Review
The award for permeable surface alley master plan services is exempt from CEQA pursuant to Section 15262 (Feasibility and Planning Studies), which exempts feasibility and planning studies for possible future actions that the agency, board, or commission has not approved, adopted, or funded. Additionally, the agreement is categorically

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exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines which states that CEQA does not apply “where it can be seen with certainty that there is no possibility 5 of 6 that the activity in question may have a significant effect on the environment.” This agreement would provide a master plan and preliminary designs, and no physical improvements are being implemented at this time.

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

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Clean Beaches and Ocean Parcel Tax Fund (16) and the Stormwater Management Fund (52) to award a contract to Craftwater Engineering, Inc. for professional services in developing a Permeable Surface Alley Master Plan. Funds are available in the FY 2025-26 Capital Improvement Program Budget for this project.

Contract Request
Funding Source FY 2025-26
Request Amount
Account # Total Contract
Amount
Clean Beaches and
Ocean Parcel Tax
$300,000 C5204620.689000 $300,000
Stormwater
Management
$45,000 C1604620.689000 $45,000
Total $345,000 Total: $345,000
Future year funding is contingent on Council budget approval.

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Prepared By: Mohammad Dakwar, Civil Engineering Assistant Approved Forwarded to Council
Attachments:

A. LevineAct
B. OaksInitiative

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City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

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Attachment: LevineAct (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

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Attachment: LevineAct (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
DATE: January 25, 2024
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $250 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.

State law requires a party to a proceeding to disclose any contributions exceeding an aggregate $250 that the party and their agents have made to an officer of the City within the preceding 12 months. The Disclosure Form is intended to assist City officials with recognizing when they have an obligation to disclose and recuse themselves, and to aid parties with their disclosure obligations.

1. To what sort of proceedings is the disclosure form applicable? The Levine Act applies to all discretionary entitlements and contracts, with the exception of labor contracts, personal employment contracts, and contracts that must be awarded to the lowest responsive/responsible bidder. It does not apply to ministerial approvals.

For instance, the Levine Act applies to the following:

Building and development permits
Conditional use permits
Contracts generally (unless an exception applies):
o Contracts for goods, services, professional services
o Real property contracts for purchase, sale, lease
o Contract amendments
o Settlement agreements
o Small contracts, including purchase orders, and zero dollar contracts (no de minimis exception)
Public street abandonments
Private development plans
Professional license revocations
Rezoning of specific real estate parcels
Event permits
Rulemaking procedures affecting a particular industry where only a small number of businesses are affected

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Attachment: LevineAct (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan)

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Special district formation proceedings involving the creation of a special use or benefit to the person in the district
Tentative subdivision and parcel maps
Zoning variances
Vacation of a public easement across private property
Pre-applications, such as for General Plan Amendment, considered by the legislative body prior to filing of formal application
Contracts entered under the City Manager’s Authority
Closed session items that may result in a contract/settlement agreement approved by Council (real estate or litigation)
It does not apply to:

Purely ministerial decisions
General policy decisions or rules where the interests affected are many and diverse
Ordinances and resolutions (except items like development agreements adopted by ordinance)
Ballot measures
Departmental policies
Council rules
Contracts awarded to the lowest responsive/responsible bidder (not applicable in Santa Monica)
Labor contracts and project labor agreements
Personal employment contracts
Allocation of resources in the City budget

2. Who is required to disclose?
A “party” to a proceeding is any person who files an application for, or is the subject of, a proceeding. In general, a person or company who applies for a permit, license, or right to use property in a particular way, which requires the City’s discretionary approval, will qualify as a party.

Parties are also required to disclose contributions by their agents. An “agent” is someone who (1) represents a party to a proceeding for compensation; and (2) appears before or otherwise communicates with the City for the purpose of influencing the pending proceeding. This can include law firms, architects, engineers, consultants, and similar entities. Both the individual and their employer or firm are considered “agents.” A party should also disclose contributions of other entities majority owned by the party, as well as contributions of any other entity whose contributions it directs or controls.

3. What must be disclosed?
A party must disclose campaign contributions over $250 made in the prior twelve months.

A “contribution” is anything of value for which the party has not received full consideration, including money, nonmonetary items, payments made for advertising or

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Attachment: LevineAct (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan)

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other expenses coordinated with a candidate or committee, loans, tickets to political fundraisers, etc.

4. Who is considered an officer of the City?
An “officer” is anyone who may make, participate in making, or attempt to influence a decision in the proceeding or who exercises authority over officers who may do so. This includes elected officials, members of appointed boards and commissions, the City Manager, and any individual who is a candidate for elected office or who has been a candidate in the twelve months prior to the decision. This definition is included on the Disclosure Form.

5. When should the disclosure occur?
The Disclosure Form must be completed (1) by a party to a contract with the City (or that party’s agent) at the time the party submits a response to a Request for Proposal or other competitive solicitation, enters into contract negotiations with the City, or executes a contract with the City, whichever is earliest; or (2) by a party to a license, permit, or other entitlement proceeding before the City at the time the party (or their agent) submits the license, permit, or entitlement application to the City. The party (or their agent) must submit a supplemental form if they make any new reportable contributions while the same contract, license, permit, or other entitlement is being considered. The party (or their agent) must also use the form if they need to correct any previously submitted form.

Parties are solely responsible for completing the form accurately, and could face penalties for failure to do so. The California Fair Political Practices Commission (FPPC) is the body who enforces violations of the Levine Act. If a party is uncertain about whether they are required to report or combine a contribution, they should consult with their attorney.

Nothing herein constitutes legal advice and individuals are urged to consult with their own attorney regarding the requirements of the law. To the extent there is any inconsistency, the language of the Levine Act and FPPC Regulations govern over this notice. Resources for officers, parties, participants, and agents, are available on the FPPC’s website at https://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html

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Attachment: LevineAct (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan) Craftwater Engineering, Inc.

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Attachment: OaksInitiative (6962 : Award RFP No. SP2740 Permeable Surface Alley Master Plan) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.C
1 of 8
To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department, Risk Management Subject: Award Request for Proposal to Intercare Holdings Insurance Services, Inc. for Workers' Compensation Claims Administration Services
Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 442 to Intercare Holdings Insurance Services, Inc. for workers’ compensation claims administration services for the Finance Department; and

Summary
The City's Workers' Compensation Program has undergone significant transformation since the implementation of a Third-Party Administrator (TPA) pilot program in 2017, which became permanent in 2022. Under this program, Intercare Holdings Insurance Services, Inc. (Intercare), a private claims administrator, manages workers' compensation claims for the Department of Transportation (DoT). This program has achieved exceptional results, reducing the DoT’s workers’ compensation costs. In contrast, costs for in-house administered departments have risen significantly. This increase is partly due to a smaller claims team managing a higher volume of complex cases, leading to longer processing times. These delays pose operational risks and potential compliance challenges for the in-house self-administered program.

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Staff aims to expand the TPA program model to all non-public safety departments, based on a comprehensive cost-benefit analysis projecting potential savings of $666,000 to $3.5 million over five years. Following a recently completed Request for Proposal (RFP) process, staff requests Council approval to contract with Intercare for workers' compensation claims administration across all City departments, except Fire and Police. Those two departments will continue operating under the in-house selfadministered program for sworn employees. Additionally, as part of the TPA transition, the self-administered program will be realigned to ensure adequate staffing for claims management, optimizing performance and reducing compliance risks.

Discussion
The City’s Workers’ Compensation Program is self-insured and has a Self-Insured Retention (SIR) of up to $1 million per occurrence. Additional insurance limits are secured through PRISM, a Joint Powers Authority comprised of cities, counties, school districts, and special districts.

Program performance is measured using three critical financial indicators:
• Total Program Liabilities: The aggregate value of all open claims, including projected future expenditures for both self-insured and excess insurance components.
• SIR Program Liabilities: Direct financial obligations for claims falling under the City’s SIR threshold, excluding liabilities covered by excess insurance. • Program Expenses: Costs for medical treatment, disability payments to injured employees, and miscellaneous expenses such as legal fees and medical bill review.

Self-insured employers, such as the City of Santa Monica, can either administer claims in-house or subcontract this service to a third-party administrator. The administration of claims involves processing and investigating claims, providing injured employees with medical care and all other State-mandated benefits, and resolving claims promptly.

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The city has operated a self-administered model since 2001, overseen by the Risk Management Division. Since that time, workers' compensation costs have continued to accelerate. Between FY 2007-08 to FY 2016-17, total program liabilities increased by

98.0%, while program expenses grew by 69.1% over the same period. In response, Risk Management implemented strategic cost control measures, including the "Wow, That's Fast" Program, which provides comprehensive case management services and on-site mobile medical services, to injured sworn public safety personnel in the Fire and Police Departments.

Third-Party Administrator (TPA) Program
In early 2017, a cross-departmental working group assessed the TPA model as a possible cost-containment strategy. The assessment revealed several advantages over self-administered programs. Most significantly, a well-established TPA has more resources to support better claim outcomes. Resource advantages include enhanced supervisory and backup resources for claim examiners, dedicated claim assistants, and in-house ancillary services, such as fraud investigations, staff training, and medical management. All these resources ensure that claims are managed effectively even when the assigned examiner is out of the office. In contrast, the City’s self-administered program is not resourced appropriately to provide this level of service. Furthermore, increasing staff to achieve optimal service levels would be cost prohibitive. Additionally, TPAs can provide their employees with incentives for consistently exceeding claim resolution performance targets.

Based on the working group’s assessment, a pilot program was implemented for DoT, primarily due to its sizable workforce, which consists of employees in both physically demanding and sedentary jobs. On July 25, 2017 (Attachment A), Council approved the selection of Intercare to provide TPA services to manage the workers’ compensation claims for DoT as a pilot program.

The pilot program demonstrated significant improvements in both total liabilities and total expenses for DoT. The results from the five-year pilot program are outlined below:

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• Total Program Liabilities for DoT’s claims declined from $7.4 million to $4.7 million by June 30, 2022. In contrast, total liabilities for the claims from all other departments increased from $21.9 million to $23.3 million. • Program Expenses during FY 2021-22 for claims managed by Intercare decreased by 16.0% from FY 2016-17. By comparison, program expenses for claims managed by in-house staff increased by 55.1%.

On July 12, 2022 (Attachment B), Council approved extending the agreement with Intercare through August 31, 2025, to permanently transition DoT’s workers’ compensation claims management. At that time, staff did not recommend an immediate program-wide expansion that included sworn public safety employees, as they receive enhanced workers' compensation benefits, including injury presumptions, 4850 disability benefits, and higher permanent disability payments, making it more complex to project potential cost savings from transitioning to a TPA model.

Since that time, staff has continued to assess the self-administered program, evaluating the effectiveness of the TPA model, and exploring the potential to reduce workers’ compensation costs by shifting portions of the city's self-administered responsibilities to a TPA. Since its inception, the TPA program has consistently demonstrated superior performance compared to self-administered claims across the key metrics.

Below are the program results for the seven years since the program started:

Total Program Liabilities
Pilot Began
As of 10-31-17
Year Seven
As of 6-30-24
Monetary
Change
Percentage
Change
TPA $7,444,460 $3,921,751 -$3,522,709 -47.3%
Self-Administered $21,874,938 $32,100,624 $10,225,686 46.7% • SIR $18,808,173 $20,385,073 $1,576,900 8.4%
• Excess of SIR $3,066,765 $11,715,551 $8,648,786 282.0% Program Expenses
FY 2016-17 FY 2023-24 Monetary
Change
Percentage
Change
TPA $3,320,028 $2,654,022 -$665,940 -20.1%
Self-Administered $7,438,771 $13,888,102 $6,449,331 86.7%

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It is important to note that the significant increase reflected in Total Program Liabilities for self-administered claims is primarily due to three catastrophic claims from the Fire and Police Department, resulting in the Excess of SIR Liabilities increasing by 282%.

These catastrophic claims also significantly impacted Total Program Expenses for the claims administered in-house. If the expenses were adjusted to exclude these three claims, adjusted program expenses during FY 2023-24 increased by 52.5%.

Self-Administered Program
Following the City’s restructuring in 2020, the self-administered program operates with one fewer dedicated Workers' Compensation claims administration position. After a significant downward trend in claims since FY 2019-20, the number of new claim filings increased 20% last fiscal year as compared to FY 2022-23. Consequently, the inventory of open claims for the self-administered program is at pre-FY 2019-20 levels. Staff currently handle approximately 150 claims per examiner, as compared to 110 claims per examiner for Intercare.

The City’s workers’ compensation claims have also become more complex. The severity rate, defined as the percentage of claims involving lost time and/or litigation, increased by 11% from FY 2022-23 to FY 2023-24. Additionally, the frequency of claim filings has increased for cumulative trauma injuries, which are common in an aging workforce, resulting from performing repetitive physically and/or mentally demanding tasks over long periods. Claims staff spend a significant amount of time managing each of these claims, as they typically involve extensive medical treatment for various body parts.

These challenges have created a cascade of operational and financial risks. Delayed claim resolution directly drives up both program expenses and liabilities. Additionally, there is now an elevated risk of non-compliance with State Workers' Compensation regulations, potentially exposing the City to significant fines and penalties. Perhaps most critical, failure to meet the Claims Administration Standards established by PRISM, the Joint Powers Authority providing the City's excess coverage, could result in the loss of essential workers' compensation insurance protection.

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Recommendation for TPA Program Expansion
Given the TPA program’s demonstrated long-term success, staff seeks to expand the TPA model across additional departments. The expansion will focus exclusively on nonpublic safety departments due to several factors that complicate cost-benefit projections for Police and Fire Departments, as described previously.

A cost-benefit analysis was conducted to compare the TPA program expansion to the self-administered program as it operates now. Below is a summary of the analysis, presenting three case scenarios:

Assumptions Based on
TPA’s Performance
Savings in Program
Expenses Over 5 Years
Reduction in Program
Liabilities Over 5 Years
Best
Case
100% Reduction in Expenses
75% Reduction in Liabilities $3,492,417 $1,489,732
Average
Case
75% Reduction in Expenses
50% Reduction in Liabilities $2,079,171 $993,155
Worst
Case
50% Reduction in Expenses
25% Reduction in Liabilities $665,926 $496,577
Based on significant projected improved performance and cost savings, staff recommends expanding the TPA program to all City departments except Fire and Police. The expansion will include a comprehensive transition plan that prioritizes seamless continuity for employees with open claims, ensuring uninterrupted medical services and benefit payments, as well as clear communication protocols throughout the transition process.

Following the expansion, the TPA will administer approximately half of the City's workers' compensation claims, while Risk Management staff will continue to manage the remainder. The internal resources will be realigned to support both programs effectively. For the TPA program, this includes establishing a dedicated liaison role (Risk Management staff) to coordinate between the TPA, the departments, Human Resources, Payroll, and employees on workers' compensation matters. For the selfadministered program, realignment will provide adequate supervisory and backup resources to claims staff, ensuring optimal performance and reducing compliance risk.

Vendor Selection

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Bidder Recommendation
Best Qualified Firm Best Qualified Firm
Evaluation Criteria
(include all that apply)
Incentive plan, staffing commitment, understanding goals/objectives, price, value add/breadth of services, stability/references Municipal Code SMMC 2.24.190
RFPs Received
Acclamation Insurance
Management Services, Inc.

Elite Claims Management, Inc. Innovative Claim Solutions, Inc.

Intercare Holdings Insurance
Services, Inc.

RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
04/11/2025 City's Online
Bidding Site Santa Monica Daily Press 22 05/06/2025
Justification to Award
The Evaluation Committee, comprised of the Finance, DoT, and Human Resources Departments, evaluated the RFP submission from the four firms. Based on the evaluation criteria established in the RFP and criteria in SMMC 2.24.190, staff recommends Intercare Holdings Insurance, Inc. as the best qualified firm to provide workers’ compensation claims administration services based on their understanding of the City’s goals/objectives, their staffing commitment, breadth of services, and proven track record of providing this service to the City and a competitively priced proposal.

Environmental Review
This contract is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The award contract would provide workers’ compensation claims administration services for the City. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Past Council Actions
Meeting Date Description
7/25/2017
(Attachment A)
Authorize agreement with Intercare Holdings Insurance
Services, Inc. following an RFP process

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7/12/2022
(Attachment B)
Authorize the first modification of the agreement with
Intercare Holdings Insurance Services, Inc.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Self Insurance, Workers’ Compensation Fund to award an agreement with Intercare for Workers’ Compensation Claims Administration services.

Agreement Request
FY 2025-26
Request Amount
Department Account # Future Years
Amount
Total Agreement
Amount
$673,321 74800002.534510 $3,608,653 $4,281,974
Future year funding is contingent on Council budget approval.

Prepared By: Luis Hernandez, Executive Administrative Assistant Approved Forwarded to Council
Attachments:

A. 7.25.17 Staff Report (Attachment A)
B. 7.12.22 Staff Report (Attachment B)
C. Oaks Initiative Form (Attachment C)
D. Levine Act Disclosure Form (Attachment D)

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City Council
Report
City Council Meeting: July 25, 2017
Agenda Item: 3.B
1 of 8
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Edward F King, Director, Department of Transportation
Subject: Workers' Compensation Claims Administration Services Recommended Action
Staff recommends that the City Council:

1. Award RFP #105 to Intercare Holdings Insurance Services, Inc., a Californiabased company, for workers’ compensation claims administration services;

2. Authorize the City Manager to negotiate and execute an agreement with Intercare Holdings Insurance Services, Inc. for three years, with two one-year renewal options in an amount not to exceed $1,699,509 over a five-year period, with future year funding contingent on Council budget approval; and

3. Authorize the City Manager to negotiate and execute a first modification to agreement #10234 in the amount of $113,800 with TCS Risk Management Services, LLC, a California-based company, for workers’ compensation data analysis and consulting services. This will result in a five-year amended agreement with a new total amount not to exceed $326,300, with future year funding contingent on Council budget approval.

Executive Summary
The Finance Department and Big Blue Bus (BBB) are requesting to engage in a threeyear pilot program to determine the most cost-effective model for managing workers’ compensation claims. BBB will serve as the test group for the pilot program. As proposed, administration of BBB’s workers’ compensation claims will transfer from inhouse staff in the Risk Management Division of the Finance Department to a private claims administrator, referred to as a “Third Party Administrator” (TPA). Pilot program performance will be evaluated and monitored by BBB and Finance throughout the pilot period.

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Attachment: 7.25.17 Staff Report (Attachment A) (7035 : Workers' Compensation Claims Administration Services) 2 of 8
In order to pursue the pilot program, staff from the Finance, BBB and Human Resources Departments solicited formal proposals from TPAs for workers’ compensation claims administration services. Based on this process, staff recommends that the City enter into an agreement with Intercare Holdings Insurance Services, Inc. for an amount not to exceed $1,699,509 over a five-year period. In addition, staff recommends that the City amend its existing contract with TCS Risk Management Services, the City’s workers’ compensation consultant, for assistance with transitioning claims administration services to the TPA and tracking and monitoring the pilot program’s performance. The amendment will cost $113,800 and result in a new agreement amount not to exceed $326,300.

Background
The City’s workers’ compensation costs continue to grow at an accelerated pace. In FY 2017-18 alone, the City’s contributions to the Workers’ Compensation Self-Insurance Fund increased by 50%. Further, contributions are projected to rise by 10% annually thereafter if current claims trends continue. In response to this, the Finance Director convened a Workers’ Compensation Working Group composed of the Assistant City Manager, City Attorney, Human Resources Director, and Risk Manager for the purpose of promoting initiatives to curb the City’s growing workers’ compensation costs. Under the guidance of the Working Group, a variety of pilot cost control projects have been put in place across the City. Examples include the “Wow, That’s Fast” Program, which provides comprehensive case management services to injured sworn personnel and post-job-offer functional capacity testing to ensure prospective employees are capable of safely carrying out essential job functions prior to placement. The most recent idea to emerge from the Working Group involves a BBB/Risk Management Division proposal to contract with a TPA to manage the BBB’s workers’ compensation claims. The idea was intriguing to the Working Group due to the many advantages a reputable and established TPA could have over an in-house program, and it resulted in the development of a three-year pilot program proposal to determine which model is more cost-effective. The details of the pilot program proposal follow.

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Attachment: 7.25.17 Staff Report (Attachment A) (7035 : Workers' Compensation Claims Administration Services) 3 of 8
Discussion
The Risk Management Division of the Finance Department is responsible for managing the City’s Workers’ Compensation Program. In this capacity, the Department has relied on in-house personnel to administer workers’ compensation claims since 2001. The decision to use internal or external staff to administer claims is unique to each employer. In 2001, the City selected an internal management model in hopes of improving program outcomes through direct control over claims administration. Over the past two decades, however, TPAs have made advancements in the quality, sophistication, and breadth of services offered to their clients. TPAs also have a variety of advantages over an in-house program like the City’s. A few key examples include:
• TPAs can provide their employees with incentives for consistently exceeding performance targets. Public sector compensation plans are not set up to contemplate incentive plans of this nature.
• Due to size, TPAs have systems in place to automatically redeploy examiner staff when the account’s assigned examiner is out of the office (e.g., vacation, medical/family leaves, etc.). This ensures that claims continue to move forward when the assigned examiner is unavailable. The City’s program is too small to provide this type of back-up.
• TPAs have more resources available to support claims staff and improve outcomes. An established TPA can provide everything from proprietary risk management information systems (RMIS) that offer unique capabilities (e.g., employees can track claim status and medical appointments on smart phones, etc.) to in-house training units devoted to keeping claims staff up-to-date on the latest developments/best practices in the workers’ compensation arena. • TPAs are able to spread their fixed administrative costs (e.g., administrative staff, training, RMIS, office rents, etc.) across all of their clients.

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Attachment: 7.25.17 Staff Report (Attachment A) (7035 : Workers' Compensation Claims Administration Services) 4 of 8
Collectively, these advancements and advantages have positioned TPAs to provide very cost-effective claims administration services. This information was presented to the Working Group and prompted their subsequent support for pursuing a pilot program to determine whether the City could benefit from using a TPA to manage its workers’ compensation claims.

Pilot Program Proposal
The Working Group selected BBB to serve as the test group for the pilot program. BBB represents a little over one-quarter of the City’s workers’ compensation open claim inventory and generates roughly 90 to 100 new claims per year. Further, it receives claims from a cross-section of workers that mirrors the City’s total inventory of claims (i.e., claims from workers performing sedentary jobs and physically demanding jobs).

These characteristics, coupled with the BBB’s keen desire to be more involved in managing its workers’ compensation claims, make it the ideal test group in the City for the pilot program.

Once BBB was selected for the pilot, a group of staff from BBB, Finance/Risk Management, and Human Resources was assembled to develop and issue an RFP for claims administration services. The group also established the following parameters for pursuing the pilot program:
• Implementation: The TPA will manage all of BBB’s existing workers’ compensation claims and any new claims received during the pilot period. BBB staff, in turn, will serve as the TPA’s primary contact throughout the pilot program. BBB already handles certain human resources-oriented tasks with internal staff, and as such, is uniquely positioned to effectively oversee the efforts of a TPA.

The balance of the City’s claims will continue to be managed by the City’s inhouse staff in Risk Management. Efforts of the in-house staff previously devoted to BBB will be redeployed to the remaining claim inventory. This will bring down internal staff caseloads to approximately 110 claims per examiner, which is

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equivalent to the TPA examiner caseload requirements set out in the RFP and considered an industry best practice.
• Ongoing Oversight: BBB, Finance/Risk Management, and Human Resources will work together to closely monitor the TPA’s performance during the pilot period to ensure that any issues with TPA performance are detected and addressed in a timely manner.
• Employee Notification: Injured employees with open workers’ compensation claims will be provided ample notice of the changeover so all questions/concerns can be addressed and all medical services and benefit payments continue without interruption.
• Accounting Arrangements: The BBB’s share of the Workers’ Compensation Self-Insurance Fund’s (Fund 59) assets and liabilities will be calculated and transferred to a newly created fund so that pilot program financial performance can be accurately tracked. Once these figures are available, staff will return to Council for authorization to create a Transit Workers’ Compensation SelfInsurance Fund and transfer the assets/liabilities. • Program Evaluation: BBB and Finance/Risk Management will evaluate the pilot program’s success against a set of objective performance measures (e.g., total cost per claim, lost-time per claim, total open claim inventory, overhead costs per claim, etc.) and subjective performance measures (e.g., employee satisfaction surveys, employee focus groups, etc.) throughout the pilot period and at its conclusion. BBB and Risk Management will be responsible for reporting out at regular intervals to the Working Group on the pilot program’s performance. At the conclusion of the three-year pilot period, the Working Group will make a recommendation to the City Council as to whether the TPA contract should be terminated, extended for BBB only (thus the inclusion of the two, one-year

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renewal options), or possibly expanded to include a larger segment of the City’s workers’ compensation claims.

TPA Selection Results
On March 7, 2017, the City published an RFP for workers’ compensation claims administration services for the BBB. The RFP was posted on the City’s online bidding site and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 373 potential firms were notified of the RFP and 31 downloaded the bid. The following seven firms submitted a response:

AdminSure Inc.; Athens Administrators; Broadspire Services Inc.; CorVel Corporation; Intercare Holdings Insurance Services, Inc.; Tristar Risk Management; and York Risk Management Services.

An evaluation panel comprised of staff from BBB, Finance/Risk Management, and Human Resources evaluated all seven RFP responses based on the criteria in SMMC

2.24.073, including price, staffing commitment, understanding of program goals and objectives, references/experience, incentive plan commitment, and value-added services. The panel used the criteria to narrow the field to four firms who were invited to make on-site presentations. The interviews confirmed all four of the firms were capable of competently fulfilling the RFP’s scope of work and offered competitive pricing and value-added services. On balance, however, Intercare Holdings Insurance Services offered the best combination of staffing, transit claim experience, references, and price.

Therefore, staff recommends Intercare Holdings Insurance Services as the bestqualified firm to provide the claims administration services requested in the RFP.

Contracted Services Policy
While the City’s Contracted Services Policy contemplates physical or manual work as opposed to professional services, the intent of the policy, coupled with its evaluation criteria, provided staff with guidance for assessing the appropriateness of pursuing the pilot program. Specifically, the proposal contained in this staff report meets the “spirit” of at least five of the criteria set out in the policy: 1) it is a pilot program; 2) the City would benefit cost-wise from the contractor’s economies of scale; 3) the contractor is

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better positioned to respond to workload fluctuations; 4) the contractor is equipped with back-up staffing options; and 5) the contractor’s performance can be measured through objective means. In light of this, staff determined that pursuit of the pilot program was consistent with the Council’s policy for contracting out services.

TCS Contract
The City currently has an agreement in place with TCS Risk Management Services, LLC for workers’ compensation consulting services. The contract was awarded to TCS by the City Council at its December 2015 meeting (attachment A) after engaging in a competitive selection process. TCS provides Risk Management with indepth quarterly analyses on the financial and operational performance of the Workers’ Compensation Program. Staff is requesting to amend TCS’s agreement to include assistance with developing the pilot program’s performance measures, transitioning claims administration services to the TPA, and monitoring pilot program performance. This assistance will ensure the TPA transition goes smoothly for staff and injured workers, and BBB and Risk Management are able to closely and accurately monitor the pilot program’s performance. The contract amendment will cost $113,800.

Financial Impacts and Budget Actions
The agreement to be awarded to Intercare Holdings Insurance Services, Inc. is for an amount not to exceed $1,699,509 over a five-year period. FY 2017-18 contract costs total $327,900. Further, the agreement modification to be awarded to TCS Risk Management Services, LLC is $113,800 for an amended agreement total not to exceed $326,300. This will increase the FY 2017-18 contract costs by an additional $41,067.

Funds for the initial payments required in FY 2017-18 for both agreements have been budgeted in the Workers’ Compensation Self-Insurance Fund (Fund 59) in account 59235.555060. Once the Transit Workers’ Compensation Self-Insurance Fund referenced in the “Discussion” portion of this staff report is created (September 2017), the new Transit Workers’ Compensation Self-Insurance Fund will reimburse Fund 59 for all costs incurred to date for these two agreements. All subsequent expenses for the Intercare agreement will be paid out of the Transit Workers’ Compensation SelfInsurance Fund. All subsequent expenses for the TCS agreement will be paid out of

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Attachment: 7.25.17 Staff Report (Attachment A) (7035 : Workers' Compensation Claims Administration Services) 8 of 8
Fund 59. However, each year, the Transit Workers’ Compensation Self-Insurance Fund will reimburse Fund 59 for its share of TCS’s expenses. Future funding for both agreements is contingent on Council budget approval.

Prepared By: Deb Hossli, Risk Manager
Approved Forwarded to Council
Attachments:

A. December 15, 2015 Staff Report
B. Intercare Holdings Insurance Services Inc Oaks Form

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Attachment: 7.25.17 Staff Report (Attachment A) (7035 : Workers' Compensation Claims Administration Services) City Council
Report
City Council Meeting: July 12, 2022
Agenda Item:
1 of 5
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Approval of First Modification to Agreement with Intercare Holdings Insurance Services, Inc. for Workers' Compensation Claims Administration Services Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10506 in the amount of $1,090,267 with Intercare Holdings Insurance Services, Inc. (Intercare) for workers’ compensation claims administration services. This will result in an eight-year amended agreement with a new total amount not to exceed $2,789,776, with future year funding contingent on Council budget approval.

Summary
The City Council authorized a pilot program at the Big Blue Bus, now Department of Transportation (DoT) to determine the most cost-effective model for managing workers’ compensation claims. Consequently, effective November 1, 2017, claims administration responsibilities for all Big Blue Bus claims transferred from the City’s in-house workers’ compensation staff to Intercare, a Third-Party Administrator (TPA). Based on the pilot program’s performance, staff recommends a permanent shift to a TPA for management of DoT’s workers’ compensation claims. The current agreement with Intercare is set to expire on August 31, 2022. Intercare agreed to extend the agreement for three years with no year-to-year increase for the first year of the extension and 1.5% annual increase each year thereafter. Staff believes that such a modification to the agreement would be prudent and cost-effective for the City. The extension will provide additional time for the City to evaluate moving its entire Workers’ Compensation Program to the

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TPA model and engage with bargaining groups regarding any potential labor relations issues.

Discussion
The Risk Management Division of the Finance Department is responsible for managing the City’s self-insured Workers’ Compensation Program. Self-insured employers can either administer the claims in-house or subcontract this service to a TPA. In 2001, the City moved to the internal management model to improve program outcomes through direct control and provide better customer service to injured employees. As a result, the Risk Management Division’s staff became responsible for coordinating medical care and financial benefits to injured workers, as mandated by State regulations.

Pilot Program: Background
In early 2017, a cross-departmental working group, tasked with developing initiatives to contain the City’s rising workers’ compensation costs, conducted an assessment of the TPA model. The working group found that the TPA model offers several advantages over a self-administered program like the City’s. Most significantly, a well-established TPA has more resources to support better claim outcomes. TPAs, by virtue of working with more than one client agency, have the ability to provide more supervisory and backup resources for their claims examiners, as well as dedicated assistants responsible for all clerical tasks. This ensures that claims are managed effectively even when the assigned examiner is out of the office. The City’s self-administered program is too small to have this level of staffing. In addition, many TPAs have in-house units to provide ancillary workers’ compensation services, such as fraud investigations, staff trainings, and medical management.

Given a favorable assessment of the TPA model, the working group developed a threeyear pilot program to determine whether the City could benefit from using a TPA to manage its workers’ compensation claims. The Big Blue Bus was selected as the Department to pilot the model primarily due to its sizable workforce consisting of employees in both physically demanding and sedentary jobs, and the Department’s desire to be more involved in management of its claims. On July 25, 2017 (Attachment A), Council approved the pilot program and the selection of Intercare as the TPA to manage the workers’ compensation claims for the Big Blue Bus. As a result, the City entered into an agreement with Intercare for three years with two one-year renewal

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Attachment: 7.12.22 Staff Report (Attachment B) (7035 : Workers' Compensation Claims Administration Services) 3 of 5
options (Attachment B). To avoid making any major changes to the City’s Workers’ Compensation Program during the pandemic, staff exercised the two renewal options, extending the duration of the pilot program to five years. This ensured stability for injured employees already dealing with the effects of the public health crisis.

Pilot Program: Assessment and Recommendation
Staff evaluated the pilot program’s success against a set of objective performance measures. The results from the pilot program are outlined below. It is important to note that most of the claims administered by City staff were filed by sworn public safety employees, who receive more generous workers’ compensation benefits, which makes those claims more costly.
• Total Liabilities (i.e., an estimated future value of all open claims) for DoT’s claims declined from $7.4 million to $5.4 million by March 31, 2022. In contrast, total liabilities for the claims from all other Departments increased from $21.9 million to $26.1 million.
• Total Expenses during FY 2020-21 for claims managed by Intercare increased by

0.4% from FY 2016-17. By comparison, total expenses for claims managed by in-house staff increased by 25.2%.
• In FY 2020-21, Temporary Disability Payments (i.e., payments for lost wages) per open claim for DoT increased by $628 from FY 2016-17. For all other Departments, the payments increased by $6,080.

Given the pilot program’s success, staff prepared a cost-benefit analysis to project savings if a TPA took over the administration of the remaining workers' compensation claims. The analysis is based on Intercare’s performance with DoT’s claims over the duration of the pilot program. It assumes that a TPA would achieve the same cost savings in total liabilities and total expenses for the Public Works Department since its employees receive the same State workers’ compensation benefits as DoT employees.

Sworn public safety employees, however, are entitled to a different set of benefits (e.g., injury presumptions, 4850 disability benefit, higher permanent disability, etc.). As such,

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Attachment: 7.12.22 Staff Report (Attachment B) (7035 : Workers' Compensation Claims Administration Services) 4 of 5
it is harder to project the cost savings – if there are any – that a TPA might achieve for claims from the Fire and Police Departments. The analysis below accounts for this difference by presenting three scenarios showing varying levels of impact on total liabilities and expenses when shifting all claims to a TPA:
• Scenario #1, a TPA would achieve a 50% reduction in liabilities and expenses for the Fire and Police Departments when compared to reductions achieved for the DoT over four years of the pilot program.
• Scenario #2, which staff believes to be the most likely scenario, assumes that reductions for these two departments would be 25% of what Intercare has achieved for the DoT.
• Scenario #3, assumes a TPA would not be able to reduce total liabilities and total expenses for claims from the Fire and Police Departments. As a result, in the third scenario, unlike under the other two scenarios, the City would not realize savings from shifting to the TPA model.

Below is a summary of the results from the analysis.

Likelihood Impact Annual Savings
Scenario #1 25% High $898,845
Scenario #2 50% Medium $351,756
Scenario #3 25% None ($195,333)
Given the uncertainty in cost savings realized from shifting all other departments to the TPA model, as well as the additional staffing disruption that it would create in the Risk Management Division, staff does not believe that a program-wide shift is feasible at this time. Staff therefore recommends a permanent shift to the TPA model for the management of DoT’s workers’ compensation claims only. However, the Risk Management Division would like the option to consider shifting portions of its in-house program to a TPA as attrition occurs over time and if ongoing analysis continues to show that a TPA can assist with lowering the City’s liabilities. As such, staff is requesting an authorization from the Council to extend the contract with Intercare, set to expire on August 31, 2022, for an additional three years. After three years, staff will

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complete a new request for proposal (RFP) process and reconsider the manner in which the program is delivered.

Past Council Actions
Meeting Date Description
July 25, 2017
(attachment A)
Authorize agreement with Intercare Holdings Insurance Services, Inc. following an RFP process
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Self Insurance, Workers’ Compensation Fund to increase the amount of the agreement with Intercare Holdings Insurance Services, Inc. for Workers’ Compensation Claims Administration Services.

The annual cost for the first year of the extension is $358,025, which is the same as the cost for the last year of the current agreement; each year thereafter contains an annual increase of 1.5%. Future year funding is contingent on Council budget approval.

Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified
Request
Amount
Dept Account #
Total Revised
Contract
Amount
10506 $1,699,509 $1,090,267 74800002.534510 $2,789,776
Prepared By: Oles Gordeev, Risk Manager
Approved Forwarded to Council
Attachments:

A. 7.25.17 Staff Report (Attachment A)
B. Intercare Executed Agreement (Attachment B)
C. Intercare Oaks Initiative Disclosure Form

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Attachment: 7.12.22 Staff Report (Attachment B) (7035 : Workers' Compensation Claims Administration Services)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.

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Attachment: Oaks Initiative Form (Attachment C) (7035 : Workers' Compensation Claims Administration Services)

CITY OF SANTA MONICA

OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: ___Agnes Hoeberling Title: ____CEO___________________ Signature: ______________________________________ Date: ________________ Email: [email protected]________ Phone: _818-459-8212_____ FOR CITY USE ONLY:

Bid/PO/Contract # ____________________________ Permit # ___________________________

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Attachment: Oaks Initiative Form (Attachment C) (7035 : Workers' Compensation Claims Administration Services) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

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Attachment: Levine Act Disclosure Form (Attachment D) (7035 : Workers' Compensation Claims Administration Services) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

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Attachment: Levine Act Disclosure Form (Attachment D) (7035 : Workers' Compensation Claims Administration Services) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.D
1 of 5
To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Operations
Subject: Award Request for Proposal No. 427 and Agreement to Insight Strategies for Leadership Training
Recommended Action:

Staff recommends that the City Council:

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

2. Award RFP# 427 to Insight Strategies for coaching and leadership development training for the Department of Transportation; and

3. Authorize the City Manager to negotiate and execute an agreement with Insight Strategies, for an amount not to exceed $145,000 in fiscal year FY25-26.

Summary
Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation (DOT), operates 194 transit buses across 69 square miles of greater Los Angeles providing more than 800,000 rides each month. The dynamic operations of BBB require skilled Motor Coach Operator Supervisors to manage service delivery across the region.

DOT periodically provides leadership training to enhance supervisory effectiveness, improve employee engagement and support a culture of safety and accountability within BBB. The work of Motor Coach Operator Supervisors is high contact and often stressful, requiring deft conflict management skills and quick thinking. A comprehensive training program enables the entire Supervisory team to have a unified approach to addressing operational issues. Staff recommends awarding an agreement to Insight Strategies to provide coaching and leadership development for Motor Coach Supervisors at BBB in an amount not to exceed $145,000 on a one-year agreement in fiscal year FY25-26.

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Discussion
Motor Coach Operator Supervisors (“Supervisors”) play a critical role in ensuring the safe, reliable, and efficient operation of Big Blue Bus’s transportation service across a 58-square-mile service area. Eighteen supervisors oversee 317 Motor Coach Operators (“MCOs”), supporting 19 routes, demanding strong leadership and the ability to align MCOs with the agency’s operational goals.

Supervisor service delivery responsibilities include managing on-street operations through utilizing a fleet management communications system to address service disruptions. Every day, supervisors are faced with decisions involving maintenance, construction, accidents, weather, traffic congestion, major events, social unrest, and infrastructure failures like power outages or traffic signal malfunctions. Regular collaboration with the Police and Fire Departments in the City of Santa Monica, City of Los Angeles, Los Angeles County, the Sheriffs, Los Angeles World Airports (LAX), and UCLA jurisdictions are essential to maintaining operational safety and security. Given the breadth of their responsibilities, a unified supervisor management approach is essential to fostering effective communication and conflict management with various stakeholders.

Additionally, each supervisor is responsible for personnel management including monitoring attendance, performance management and conducting annual performance evaluations. Supervisor special assignments include managing MCO work bids, uniform inspections, vacation bids, and re-routing bus service for approximately 25 special events annually.

Effective leadership is a well-established factor in organizational performance. The last structured leadership training for BBB Supervisors occurred in 2018. Combined with staff turnover, this has left one-third of the current supervisory team without certified leadership training.

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Insight Strategies will provide supervisors with in-person training and outcome-based workshops through 10 days of coaching in one-on-one and group settings. The curriculum will cover a wide range of leadership development activities, role-playing exercises with both external and internal customers, and individualized assessments to aid Supervisors in conflict management and managing the MCOs. Insight Strategies have developed similar programs at peer transportation agencies such as LA Metro, Culver City Transit, and Long Beach Transit, among others. Industry best practices suggest that effective leadership at the supervisory level directly contributes to improved employee performance, lower turnover and better service outcomes.

Vendor Selection
Bidder Recommendation
Best Qualified Firm Insight Strategies
Evaluation Criteria
(include all that apply)
Price; the depth of experience, ability, capacity and skill of the personnel to perform the services; ability to perform services promptly and as needed; industry recognition and reputation; ability to provide future services as needed and price.

Municipal Code SMMC 2.24.190
Apogee Global RMS Insight Strategies, Inc.

Bellwether Training, LLC MA Consulting Services Inc
BNX Financial Solutions, LLC DBA Newleaf Training and Development California Creative Solutions Inc. Nextec Inc.

Cenmic Management LLC RefineM LLC
Cosmicways LLC Richwood International
CS-amsco Sagacy Coaching
Eli Patrick & Co. SNVA LLC
Evolution Service Corporation Veer Insight
Fundamental Consulting LLC
RFP Data
Date
Posted Posted On
Advertise In
(City Charter &
SMMC)
Vendors
Downloaded
Submittals
Received
Date Publicly
Opened
12/6/2024 City's
Online
Bidding
Site
Santa Monica Daily
Press
56 18 1/8/2025
RFPs Received

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Best Bidder Justification
Eighteen proposals were submitted and evaluated by an evaluation committee comprised of representatives from DOT spanning the Operations, Maintenance, Finance and Administrative divisions along with one staff member from the Human Resources Department.

Staff established a short list of the three top proposals which moved onto reference checks.

After reviewing the proposals and verifying references (including LA Metro), staff recommends Insight Strategies as the best qualified consultant to develop and lead a training program based on qualifications, breath of development opportunities offered, price and industry related experience providing leadership training for transit agencies across the country.

Environmental Review
The award of an agreement is exempt from CEQA pursuant to Section 15061(b)3) of the CEQA Guidelines. This agreement is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” This agreement will provide the City with a specialized program in leadership training to ensure supervisors can effectively manage their staff. Therefore, it can be seen with certainty that the proposed agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Big Blue Bus Fund to award an agreement with Insight Strategies for coaching and leadership development training for Motor Coach Operator Supervisors.

Agreement Request
FY 2025-26
Request Amount Account #
Total Agreement
Amount
$145,000 60600013.552013 $145,000
Future year funding is contingent on Council budget approval.

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Prepared By: Peter Seller, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Insight Strategies - OAKS
B. Insight Strategies - LEVINE ACT

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CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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Attachment: Insight Strategies - OAKS (7057 : Award RFP 427 and Agreement to Insight Strategies for Leadership Training)

CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Bid/PO/Contract # ____________________________ Permit # ___________________________

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Attachment: Insight Strategies - OAKS (7057 : Award RFP 427 and Agreement to Insight Strategies for Leadership Training) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

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Attachment: Insight Strategies - LEVINE ACT (7057 : Award RFP 427 and Agreement to Insight Strategies for Leadership Training) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

NoneN/A N/A 01/02/2025 Catie Butler Operations Manager Insight Strategies Inc.

N/A

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Attachment: Insight Strategies - LEVINE ACT (7057 : Award RFP 427 and Agreement to Insight Strategies for Leadership Training) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.E
1 of 5
To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Approval of the Pier Corporation Fiscal Year 2025-26 Budget and Work Plan; Approval of Updates to Pier Leasing Guidelines; and Authorization to Execute a Sixth Modification to Services Agreement between the City and Santa Monica Pier Corporation
Recommended Action
Staff recommends that the City Council:

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

2. Approve the Santa Monica Pier Corporation Fiscal Year 2025-26 Budget and Work Plan;

3. Approve Updates to Pier Leasing Guidelines: and

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

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

The SMPC is required to prepare an annual budget and business work plan to set forth its goals and objectives for the ensuing fiscal year. In accordance with the Services Agreement, the SMPC submits its FY 2025-26 work plan and budget to Council

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for its review and approval. If approved, the SMPC’s Services Agreement will be extended to June 30, 2026.

Under the Services Agreement, the SMPC board is also charged with the development of policy guidelines pertaining to leasing, events, sponsorship and marketing which are updated from time to time and subject to Council approval. SMPC submits to Council for its review and approval an update of the Leasing Guidelines and will present updates of the events, marketing and sponsorship guidelines, as well as a three-year visioning plan at a future meeting.

Discussion
The SMPC FY 2025-26 Budget (Attachment A) and Work Plan (Attachment B) describe in detail the activities and programs SMPC will undertake in the upcoming fiscal year.

SMPC Budget
The SMPC presents a balanced budget of $2.5M for the 2025-26 Fiscal Year. The SMPC’s main sources of income are event rentals, filming, corporate promotions and partnerships, followed by the City’s annual grant. SMPC’s FY 2025-26 Budget projects total revenues in the amount of $2,532,000 and estimated total expenditures in the amount of $2,523,310. This will result in a projected surplus of $8,690.

The SMPC’s prior Fiscal Year’s budget was projected to close with a $14,000 surplus.

However, SMPC year-end actuals for FY2024-25, projects the budget will end with a surplus of $91,000.

Revenues
Projected revenues include: City funding of $150,000; revenues of $2,080,000 from deck and carousel rentals, filming, corporate promotions and partnerships; $200,000 from donations and grants; and $102,000 from licensing, guided tours, registration fees, food/beverage sales, merchandise sales and advertising. As shown in the budget (Attachment A), the main source of revenue is event deck rentals. In an effort to diversify its income streams, the SMPC strategy has been to grow additional revenue generating initiatives including utilizing its status as a 501c3 nonprofit to seek out donations and grants. Overall, the FY 2025-26 projects a 19% growth in revenue from the prior year’s budget.

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Expenditures
Projected expenses include: $1,120,000 for personnel expenses comprised of salaries, benefits and related services; $587,000 for expenses related to facility charges (e.g.

Pier Deck and Carousel rentals) including payments to the City; $585,000 for SMPCproduced Pier programming such as Pier 360, Locals' Night series, Wellness & Waves, Dia de Los Muertos, Save the Pier play, Samo PRIDE and the debut of an annual PIERfect Benefit fundraising gala; $155,310 for marketing; $10,000 for merchandise; and $60,000 for contingencies.

SMPC Work Plan
The attached FY 2025-26 Work Plan describes SMPC’s accomplishments for the prior fiscal year and details the new and continuing activities SMPC plans to perform during the new fiscal year.

For the 2025-26 Fiscal Year, the SMPC’s focus will be on providing support for the City’s efforts to expand large-scale event opportunities at the pier and beach; producing and building upon the Pier Corporation’s own year-round schedule of free event programming; and enhancing the organization’s fiscal sustainability through the inaugural annual fundraising gala, and the creation of a “Friends of the Santa Monica Pier” to solicit donations and raise funds to support the SMPC’s activities.

Also presented in the Work Plan are the SMPC Board of Directors-approved Mission Statement, Vision Statement and Company Values.

Extension of Service Agreement
The Services Agreement between the City and SMPC (Contract No. 10101 CCS) will expire on June 30, 2025. Staff seek authorization to extend the Services Agreement term through June 30, 2026, to coincide with the 2025-26 Fiscal Year.

Leasing Guidelines
The Santa Monica Pier Leasing Guidelines (Guidelines) set forth the general policy objectives and practices for leasing and licensing of City-owned commercial properties on the Pier. The parameters provided are intended to promote standardized, equitable,

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efficient and transparent management of the tenant recruitment, selection and negotiation process, as well as to identify the standards of performance that are expected of Pier tenants. Periodically, the Guidelines are updated to reflect new standards, processes and policies.

Updates to the Guidelines from the previous 2017 version are shown in redline. The proposed revisions are intended to enhance transparency in the tenant selection process.

Commission Action
The SMPC Board of Directors approved the revised Pier Leasing Guidelines on June 16, 2025, and approved the FY 2025-26 budget and Work Plan on April 28, 2025.

Environmental Review
The approval of the SMPC FY 2024-25 budget and work plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The work plan provides activities and programs that would not result in a significant adverse physical impact on the environment, and therefore, is exempt from CEQA.

Past Council Actions
Meeting Date Description
7/09/2024
(Attachment D)
Approval of FY 2024-25 Budget and Work Plan and
extension of Services Agreement through 6/30/2025
6/13/2023
(Attachment E)
Approval of FY 2023-24 Budget and Work Plan and
extension of Services Agreement through 6/30/2024
6/14/2022
(Attachment F)
Approval of FY 2022-23 Budget and Work Plan and
extension of Services Agreement through 6/30/2023
6/22/2021
(Attachment G)
Approval of FY 2021-22 Budget and Work Plan and
extension of Services Agreement through 6/30/2022
7/14/2020
(Attachment H)
Approval of FY 2020-21 Budget and Work Plan and
extension of Services Agreement through 6/30/2021
7/14/2015
(Attachment I)
Council Authorization of five-year Services Agreement with SMPC. Contract No. 10101 (CCS)
Financial Impacts and Budget Actions

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Staff seeks authority to extend the Services Agreement term by one year. The available funding from the Pier Fund for the Services Agreement with the SMPC is included in the FY 2025-26 Adopted Budget in the Community Development Department. No additional financial impact or budget action is necessary. Future year funding is contingent on Council budget approval.

Annual Services Agreement Extension
Agreement FY 2025-26
Amount
Account Number Annual Agreement
Amount
10101 $150,000 53700002.540150 $150,000
Prepared By: Elana Buegoff, Pier Administrator
Approved Forwarded to Council
Attachments:

A. SMPC Budget 2025-26
B. FY2025-2026 Work Plan
C. 2025_Pier Leasing Guidelines_Redline
D. FY 2024-25 SMPC Budget and Work Plan Staff Rpt (Web Link) E. FY 2023-24 SMPC Budget and Workplan Staff Rpt (Web Link) F. FY 2022-23 SMPC Budget and Work Plan Staff Rpt (Web Link) G. FY 2021-22 SMPC Budget and Work Plan Staff Rpt (Web Link) H. FY 2020-21 SMPC Budget and Work Plan Staff Rpt (Web Link) I. 2015 Authorization of Services Agreement Staff Rpt (Web Link)

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Proposed Projected Actuals Proposed
2024/2025 2024/2025 2025/2026
Income
City Funding $150,000 $150,000 $150,000Facilities - Event Deck Rental $775,000 $1,211,000 $1,200,000Facilities - Film Permits $250,000 $178,000 $200,000Facilities - Merry Go-Round Rental $100,000 $135,000 $120,000Facilities - Corporate Promotions $250,000 $145,000 $200,000Partnerships $360,000 $240,000 $360,000Food and Beverage Sales $10,000 $10,000 $10,000Licensing and New Revenue (Pier Sign License, Tour Revenue) $25,000 $18,000 $30,000Registration Fees (Pier 360) $17,000 $17,000 $17,000Merchandise Sales $20,000 $20,000 $25,000Advertising (Pier App Generated Income, etc.) $20,000 Donations and Grants (Cirque du Soleil grant, Fundraising Gala #1) $170,000 $100,000 $200,000TOTAL INCOME $2,127,000 $2,224,000 $2,532,000 Expenses
Facilities - City Refund - Merry Go-Round $45,000 $47,000 $45,000Facilities - City Refund - Pier Deck $325,000 $450,000 $450,000Facilities - Event Staffing, Security & Supplies (Tours, Gala coordinator) $75,000 $85,000 $80,000 Facilities - Offisite Storage (4 months FY25/26) $6,000 $0 $12,000 People - Wages & Salaries $700,000 $690,000 $775,000People - Benefits (Health Ins, Payroll Tax, Wrkrs Comp, 403b) $170,000 $174,000 $210,000People -Meetings, Office Supplies, Retreat, Training, Website Dev & Main $70,000 $54,000 $70,000 People - Services, Audit, Insurance, Consultant $55,000 $55,000 $65,000Marketing Creative (Design $12,000 $15,000 $46,000Marketing Promotions, Travel, Marketing Summit $35,000 $36,000 $80,310Partnerships & Development $29,000Pier Produced Programming (Pier 360, Locals' Night, Wellness & Waves, Dia de los Muertos, Holidays, "STP" Play, PRIDE, Fundraising Gala) $550,000 $510,000 $585,000Merchandise $10,000 $7,000 $10,000Depreciation $6,000Planning Contingency (<3%) $60,000 $10,000 $60,000TOTAL EXPENSE $2,113,000 $2,133,000 $2,523,310NET INCOME $14,000 $91,000 $8,690 Santa Monica Pier Corporation Budget 2025/2026

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Attachment: SMPC Budget 2025-26 (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and FY2025-2026 Work Plan
for
Santa Monica Pier Corporation

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) FY2025-2026 Work Plan
Table of Contents:

I. Letter from the Executive Director Page 1
II. Mission Statement Page 3
Vision Statement
Company Values
III. Board of Directors Page 4
Staff Members
IV. Map of Santa Monica Pier Page 5
V. Accomplishments of Recent Fiscal Year 2024-2015 Page 6 VI. The Year Ahead: Fiscal Year 2025-2026
a. Assist the City in Expanding Economic
Opportunities & Planning Page 9
b. Pier Corporation Programming Page 10
c. New Enhancements & Opportunities for Pier
Visitorship & Enjoyment Page 10
d. The Pier Corporation as a Leading Nonprofit Page 11

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 1 FY2025-2026 Work Plan
Letter from the Executive Director
This fall the Santa Monica Pier will celebrate its 116th year of bringing millions of locals, visitors and admirers to enjoy escape and excitement above the Pacific Ocean.

On behalf of the Santa Monica Pier Corporation (Pier Corporation), I’m delighted to share our work plan for Fiscal Year 2025-2026. This document summarizes the Pier Corporation’s accomplishments during Fiscal Year 2024-2025 as well as the organization’s strategic work plan for Fiscal Year 2025-2026.

We are looking forward to embarking on a year of exciting opportunities that will include:
- Supporting the Cit’s efforts to expand large-scale event opportunities that can help Santa Monica as a whole;
- Continuing to produce and build upon the Pier Corporation’s own year-round schedule of free event programming;
- Creating new enhancements and opportunities for Pier visitorship and enjoyment, and;
- Enhancing the Pier Corporation’s reputation as a vital community nonprofit organization through steps including the debut of an annual fundraising event, recognition of the efforts of community members who have contributed to the success and significance of the Santa Monica Pier, and the creation of a “Friends of the Santa Monica Pier” to better support improvements to the Santa Monica Pier and its visitor experience.

The Santa Monica Pier is approximately the size of a 3-block city street, upon which are an amusement park, an aquarium, a trapeze school, four retail shops, seven restaurants, 13 licensed vendor carts, and one iconic 103-year-old antique carousel that is housed within an official National Historic Landmark. Fishing and street performance add to the daily scope of activities on the Pier, as well as frequent brand activations, art installations and free-and-open-to-the-public programming. All of these and our iconic setting drew an estimated 11-12 million visitors throughout the past year.

During the past year the Pier Corporation adopted a new mission statement, vision statement, and company values, then developed a 3-Year Vision Plan and 10-Year North

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 2 Star Goals for the organization. Fiscal Year 2025-2026 will see the implementation of the 3- Year Vision Plan driving towards our long-term goals of stronger financial stability and a greater leadership role both on the Pier and within the community while simultaneously maintaining its focus on the overall Pier visitor experience.

To those who joined us on the Pier last year and to those we’ll see in the coming year:
thank you for sharing this special place with us.

Sincerely,
Jim Harris
Executive Director
Santa Monica Pier Corporation

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 3 Santa Monica Pier Corporation Mission Statement
The Santa Monica Pier Corporation curates the pleasure pier experience for locals, visitors and admirers.

Santa Monica Pier Corporation Vision Statement
The Santa Monica Pier Corporation (SMPC) is the preeminent pleasure pier advocate. As the 501(c)3 organization responsible for the Pier experience, we preserve and develop the memorable character of the iconic Santa Monica Pier and its unique feeling of escape and excitement. We acknowledge and cultivate the nostalgia of locals and visitors alike while asserting its Southern California beach culture identity.

The SMPC champions the following:

1. A brand experience centered around wellness, environmental stewardship, historical integrity, and leisure

2. Access to a welcoming & belonging Pier community

3. Recognized excellence in the civic nonprofit sector

4. Leadership in envisioning the future management of the Santa Monica Pier Santa Monica Corporation Company Values
The Santa Monica Pier values the following:
• Inclusion
• Stewardship
• Collaboration
• Community
• Preparedness
• Health
• Resilience
• Boldness

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 4 Santa Monica Pier Corporation Board of Directors
Board Chair Vice-Chair Secretary/Treasurer Carter Rubin Randi Parent David Newberg

Julieta Giner Misti Kerns Nicholas Rolston Peter Trinh Santa Monica Pier Corporation Staff Members
Executive Director: Jim Harris
Operations Director: Aurora Piña
Activations Manager: Anne Railsback
Business Development Manager: Dana Moorehead
Marketing & Brand Manager: Kayla Nieto
Events & Filming Specialist: Leo Erickson
Facilities & Weekend Specialist: Corey Hart

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 5 Map of Santa Monica Pier 2025

1 2
3 4
5 7
8 9
14 15
16 17
18 18
20 13
11 10
12 21
19 6
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WWW.SANTAMONICAPIER.ORG
Soda Jerks Ice Cream
Seaside on the Pier
Currently Available Under RFP
The Albright - SM Pier Seafood
Bubba Gump Shrimp Co.

Pier Burger
Snackville at Pacific Park
Mariasol Cocina Mexicana
Heal the Bay Aquarium (under the Pier)
National Landmark Looff Hippodrome with
Merry Go-Round
Pier Shop & Visitor Center
66 to Cali
Blazing Saddles Bike Rentals & Tours
Heal the Bay Aquarium Gift Shop
Oatman Rock Shop
Marlene’s Beachcomber
Playland Arcade
Santa Monica Trapeze School
Pier Gear
Pacific Park
Santa Monica Pier Bait & Tackle
- Parking Lot
- Safety & First Aid
- Public Elevator
- Bike Path - Volleyball Courts
- Wheelchair Access
Electric Vehicle
Charging Stations
- Public Restrooms
- Bike Racks
- Fishing Deck
- Parking Pay Station
- Original Muscle
Beach -
P

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 6 Accomplishments of the Recent Fiscal Year 2024-2025
Throughout Fiscal Year 2024-2025 the Santa Monica Pier Corporation continued its postpandemic recovery and rebuilding process, recording its most successful year of growth in Pier Corporation-produced events and in facility rentals to outside organizations for events and filming. Other revenue sources including corporate partnerships, sponsorships, and donations fell short of projected expectations for the fiscal year, yet each of those sources did grow considerably from Fiscal Year 2023-2024. The organization also turned its attention to the future with the creation of a 3-year vision plan and 10-year North Star goals and the development of a task force focused upon the upcoming Pier Bridge Replacement Project.

A highly important part of the Pier Corporation’s efforts toward curating the Pier visitor experience has long been the creation and production of free public events. For 35 years (from 1985 to 2019) the organization produced the Twilight Dance Series (later known as Twilight Concert Series), widely recognized as one of the Los Angeles area’s premier summer events. The Pier Corporation has continued to conceive of and produce a yearround slate of free public events including the Pier 360 Beach Festival (since 2010), Wellness & Waves (since 2012), Dia de los Muertos on the Pier (since 2020), Locals’ Nights (since 2022) and several others. Fiscal Year 2023-2024 saw the growth of each program, as well as the addition of some new programs:

Pier 360 Beach Festival
The Pier’s official “kickoff to summer” event has become the Pier Corporation’s marquis free public event, featuring paddleboard races, swim races, beach volleyball competitions, lifeguard competitions, skateboarding, roller skating, live music, Polynesian dance performances, and a popup Museum of Beach Culture which shares the history of ocean/beach sports and the Santa Monica Pier’s vital role toward the development of each. In June 2025 the event expanded that history museum into the Merry Go-Round Building and added a strongman competition that recalled and honored the iconic original Muscle Beach.

Wellness & Waves
Originally branded as Roga (Run + Yoga) and rebranded Wellness & Waves after the pandemic, this event grew from its traditional two 8-week sessions per year to this year’s 26-week run of Saturday mornings of run, yoga and mat Pilates.

Dia de los Muertos on the Pier
Arguably the most beautiful couple of days on the Pier each year, this traditional Mexican celebration grew from a modest celebration inside the Pier’s Merry GoRound Building to 2024’s full 2-day festival utilizing both that building and the Pier Parking Deck. The Mexican Consulate General attended this year’s event was so impressed that they have committed to support and participate in the 2025 event.

Locals’ Nights

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 7 An invitation to the local community to come celebrate their pier, this event featuring live entertainment and activities and classic car shows provided by Santa Monica individuals and organizations continues to evolve and grow in popularity year-over-year during its September-through-May third Thursdays. “Save the Pier!” Play
Honoring the efforts of the dedicated community members who stood up to City Hall and literally saved the Pier from demolition in 1972-1973, this 1-hour-long melodrama celebrated its 10th year of production with the addition of a handful of new musical numbers.

Holiday Cheer on the Pier
Continuing the tradition established in 2019 of celebrating the winter holidays by decorating the windows of the Merry Go-Round Building for the holidays and featuring an evening of performances by Bob Baker Marionettes, 2024 saw an expansion to three weekly marionette performances and the addition of children’s story time readings. The event also crossed over with the December Locals’ Night, which featured a holiday sand sculpture (resurrecting a nearly forgotten Santa Monica tradition).

SAMO Pride “Fierce Fables”
The Pier Corporation partnered in June 2024 with The Crow Comedy Club to introduce a new addition to the City-wide SAMO Pride celebration with “Fierce Fables” – a Saturday morning children’s event inside the Merry Go-Round Building featuring Drag Queen Storytime and Face Painting. The concept continued for SAMO Pride 2025, but with a modification to the name to “Fabulous Fables” and expanded its footprint and offerings with the creation of a small fair.

Santa Monica Pier 115th Birthday Celebration
A celebration of the culmination of the Pier’s first 115 years in September 2024 featured an outdoor screening of the movie Barbie. The celebration drew greater than usual press attention and, as reported by Los Angeles Metro, was the catalyst for a 68% increase in ridership to the downtown Santa Monica area on September 6 (event date) proving the Pier’s ability to draw attention and people to Santa Monica.

As stewards of the preservation and sharing of the Pier’s 115-year history, the Pier Corporation has recently developed two highly informative and enjoyable programs: A Walk Through Pier History, a ticketed walking tour program launched in the summer of 2023; and A Talk Through Pier History, a free monthly live slideshow/lecture presentation which debuted in February 2024.

The Pier Corporation also rents out the Pier’s public spaces for private events and filming base camps on behalf of the City of Santa Monica, creating income opportunities for the Pier Corporation and for the City. Income from these venue rentals has grown immensely during the post-pandemic years, due in part to the Pier being a spacious outdoor venue as

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 8 well as the organization’s marketing efforts to establish the Pier as a premier event venue.

This category has become the primary revenue source for the Pier Corporation during the post-pandemic era.

The Pier’s success at attracting events has led to venue rentals comprising nearly twothirds of our revenue. The Pier Corporation wants to make sure we maintain a diversified stream of income in order to ensure stability and to avoid risks caused by event disruptions such as those experienced during the COVID-19 pandemic. Venue rentals were reduced to nothing, as were corporate partnerships and sponsorships which were attached to Pier Corporation-produced free public events. At the same time, the City of Santa Monica faced its own financial crisis and was forced to cut grant funding for the Pier Corporation from $750,000 to $150,000 per year.

During the development of the organization’s 3-Year Vision Plan and 10-Year North Star Goals the primary focus was to diversify funding sources and build up a reasonable reserve fund to protect against disruptions to our core revenue sources. The result has been the organization putting more focus into exercising its 501(c)3 nonprofit status and developing programs and initiatives which will encourage support from the greater Pier-loving community. Among those is the production of the Pier Corporation’s first-ever fundraising event, which was originally slated to take place in March 2025, within Fiscal Year 2024- 2025, but due to the recent, tragic Palisades Fire, has been delayed and rescheduled for September 2025 and as such is now part of the Work Plan for Fiscal Year 2025-2026.

Throughout this recent fiscal year, the Pier Corporation has paid close attention to developments and events that will undoubtedly have substantial impacts upon the Pier’s businesses and the Pier visitor experience. Included among those are the Pier Bridge Reconstruction Project slated to take place in Fall 2025 through December 2027, the FIFA World Cup held at Sofi Stadium and the NBA All-Star Weekend held at the Intuit Dome in 2026, the National Football League Super Bowl at Sofi in 2027, and the Summer Olympics held throughout Los Angeles in 2028. The Pier Corporation formed an ad hoc Pier Bridge Task Force in partnership with City Staff and representatives from the Santa Monica Pier Lessees Association in 2024 to keep up to date with developments and planning for the Pier Bridge Reconstruction Project and plans to continue with that committee model for future impactful events.

In summary, the Santa Monica Pier Corporation has built upon its core responsibilities to the community, to the City, and to the Santa Monica Pier and is currently taking steps toward becoming more sustainable and more valuable to its locals, its visitors, and its admirers.

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 9 The Year Ahead: Fiscal Year 2025-2026
Fiscal Year 2025-2026 will be a year of noticeable change for the Santa Monica Pier Corporation as it works to assist the City of Santa Monica with the expansion of economic opportunities, further enhances its own programs, creates new meaningful and impactful ways to share the Pier experience, and takes a great leap forward toward establishing its identity as a leading, impactful nonprofit organization.

The upcoming year’s highlights will include:

ASSIST THE CITY IN EXPANDING ECONOMIC OPPORTUNITIES & PLANNING Pier/Beach Zone
In 2024 the City Council directed City of Santa Monica Staff to bring more events – particularly large-scale events – into Santa Monica. City Staff has been considering revising policies for events on the beach in order to make it more attractive to event producers. In parallel, throughout 2024-2025 Pier Corporation Staff has been meeting with members of City Staff about the prospect of the Pier Corporation assuming marketing of and management of events on the beach areas immediately north and south of the Pier. The purpose is two-fold: The Pier Corporation already has a successful marketing and management program for its unique events venues and can best drive revenue to both the Pier Corporation and the City, and the Pier Corporation can best assure that events booked on the Pier-adjacent beach areas will not conflict with events on the Pier. The hurdles to achieve the Pier Corporation assuming management of this “Pier/Beach Zone” are relatively small: Some changes to the City’s short-term privatization of and signage restrictions are needed, and the Pier Corporation’s role of management of the beach areas needs to be added to the organization’s Services Agreement with the City.

Create Opportunities for Larger Concert-type Events on the Pier In 2013 the City of Santa Monica placed a cap of no more than 500 attendees for all concert-type events at the Pier not produced by either the City of Santa Monica or the Santa Monica Pier Corporation. With the aforementioned City Council direction for more events, and with many people expressing desire for the return of concerts to the Pier, the Pier Corporation will reach out to the City to help determine the best path toward returning large-scale concert events on the Pier Parking Deck. We will pursue this in a way that enhances the visitor experience, support the Pier’s business tenants, ensures the Pier remains a good neighbor, and achieves public safety requirements.

Establish the Pier as an Entertainment Zone
In September 2024 Governor Newsom signed SB-969 allowing municipalities to designate “Entertainment Zones” in public spaces in which restaurants and bars can serve alcohol that may be taken outside of the serving establishment. The Pier is ideally set up as a location that Santa Monica should designate as such an area. The

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 10 Pier’s best asset is its outdoor, open-flow atmosphere, and it is already set up with designated, securable entry/exit points where the management of open containers remaining within the venue can be achieved. The Pier Corporation will work with City Staff to explore the possibility of establishing and managing the Pier as an “Entertainment Zone”.

Preparations for High-Profile, Extremely Large-scale Events in Los Angeles During the next three years the Los Angeles area will host the FIFA World Cup (2026), NBA All-Star Weekend (2026), NFL Super Bowl LXI (2027), and the Summer Olympics (2028). Their presence within the Los Angeles area and the popularity of the Pier as a tourist attraction will bring large numbers of visitors to the Pier, as well as the prospect of a lot of interest in events and parties associated with each of the high-profile sporting events. The Pier Corporation Board of Directors will create a committee including representatives from City Staff and the Santa Monica Pier Business Association to plan for the potential impacts each of these large-scale events will have on visitorship and rental revenue.

PIER CORPORATION PROGRAMMING
The Pier’s Regular Annual Events
The Pier Corporation will continue with its annual slate of events throughout the year, including Locals’ Nights, Wellness & Waves, “Save the Pier!” Play, Dia de los Muertos at the Pier, Holiday Cheer on the Pier, SAMO Pride “Fabulous Fables”, and the Pier 360 Beach Festival, each with new enhancements and expectations of increased attendance and enjoyment.

History Program
Programs that share the Pier’s history will continue to evolve in order to satisfy an increasing appetite. Already the Pier Corporation has been approached by Air B&B Experiences about a special, “exclusive” hybrid version of A Walk Through Pier History and A Talk Through Pier History, which is now in-development and will be launched in mid-2025. Additionally, Pier Corporation Staff is preparing a new, regular-running series of short history videos released on a weekly or bi-weekly schedule.

NEW ENHANCEMENTS & OPPORTUNITIES FOR PIER VISITORSHIP & ENJOYMENT Pier Day(s) with Hearts and Hands of Hope
In the fall of 2025, the Pier Corporation will partner with nonprofit organization Hearts and Hands of Hope to create and execute the very special experience of bringing underserved children who have never been to the Pier to come enjoy it for the first time. The event, currently under the working title of “Pier Day” (subject to change), will include rides and games at Pacific Park, rides on the Merry Go-Round, and lunch provided within a dedicated venue space on the Pier Parking Deck.

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) 11 Expectations are that this will become an annual event and, depending upon budget, funding opportunities and overall response to the initial event in fall 2025, may be done more than once annually. The Pier Corporation recognizes the potential for grant funding, donations and sponsorships specifically toward this event, and will pursue accordingly.

Launch of New Pier App
Pier Corporation staff has been developing and is almost ready to launch a Pier App which may be downloaded onto a personal electronic device (phone, Ipad, etc.) and will feature a Pier directory of businesses, a schedule of events, business specials, merchandise promotion & sales, and other useful information for interested visitors.

The app is also expected to be a modest revenue generator for the organization.

THE PIER CORPORATION AS A LEADING NONPROFIT
A PIERfect Benefit
Originally scheduled for March 2025, the Pier Corporation’s first-ever fundraising event, “A PIERfect Benefit” will now take place on September 6, 2025. The event will be held inside the National Landmark Merry Go-Round Building (official name: Looff Hippodrome) and will feature unique entertainment, a live auction and a silent auction, a special observance of the “Golden Hour” (sunset), and the presentation of the “Santa Monica Pier Award” to two individuals in recognition of their contributions to the success of the Pier. The event, as well as the award, will become an annual fundraising tradition.
“Friends of the Santa Monica Pier”
The Pier Corporation is a 501(c)3 nonprofit organization that can - and does - accept donations in return for tax-deductible benefits to donors. However, since the organization’s board of directors is appointed as volunteer advisors by the Santa Monica City Council, they are not a fundraising board. The organization plans to create a new 501(c)3 organization with a separate “give or get”-style board of directors assembled specifically for fundraising to help support the Pier Corporation a well as to fundraise for projects mutually identified by both organizations such as Pier-specific enhancements (art, statues of Pier heroes), projects (helping fund needed City CIPs on the Pier) and initiatives (ambassador program) that will help to assure the best Pier visitor experience possible.

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Attachment: FY2025-2026 Work Plan (7062 : Approval of the Pier Corp Fiscal Year 2025-26 Budget and Work Plan) Approved by the SMPC: May 15, 2017
June 16, 2025
Approved by City Council: June 13,
2017_

SANTA MONICA PIER LEASING GUIDELINES
These Santa Monica Pier Leasing Guidelines (“Guidelines”) provide the framework for fair and consistent leasing and licensing of City-owned property on the Santa Monica Pier. The Guidelines provide parameters and general policy on the mix of uses, standards and terms, and tenant recruitment and selection. They reflect the general intent and goals of the City of Santa Monica (“City”) at the time they were approved and do not convey any right upon anyone, or impose any obligation on the City. The City may from time-to-time change these Guidelines or depart from these Guidelines without liability to anyone.

If in the event a proposed lease or license diverges from these Guidelines, City Council approval and notice to SMPC is required.

1. INTRODUCTION

1.1. Background
The Santa Monica Pier began in 1909 with the construction of the Municipal Pier – the straight portion that begins at the base of the bridge from Ocean Avenue and continues for more than 1,500 feet over the beach and Santa Monica Bay. Santa Monica Pier’s ability to attract large crowds impressed Charles Looff, an amusement park pioneer who had built Coney Island’s first carousel in New York. In 1916, after negotiations with the City of Santa Monica, Looff constructed his “Pleasure Pier” alongside the Municipal Pier (now known as the Newcomb Pier). The Pleasure Pier featured the landmark Looff Hippodrome building, which now is listedhas been added to the list on the National Register of Historic Places and houses an operating vintage wooden merry-go-round.

Today, the Santa Monica Pier (“Pier”) is known as one of the region’s premier recreational and entertainment destinations, attracting over six 10 million visitors annually. The Pier offers spectacular ocean vistas, year -round events, and attractions, and is home to a changing collection of restaurants, shops, activities, and experiences.

1.2. Unique Character of Pier and Pier Environment
The Santa Monica Pier has been an icon for both the local community and Southern California for over a century. Over this time, it has provided a broad variety of entertainment and experiences that directly relate to its beach and ocean setting. These activities and services are predominately specific to the Pier’s on-going “microculture”, history and surrounding community rather than a replication of things at other piers and places. The maintenance of the Pier’s own “personality” is a core value of the Santa Monica community and central to the recruitment and selection of tenants and licensees.

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2. LEASING GOALS AND OBJECTIVES
The Pier is a valuable City historic resource of the City tothat can be developed, used, and preserved as a public resource for the enjoyment byof the general public. The commercial leasing and licensing program on the Pier is to be City managed for the benefit of the general public and in a manner consistent with the following goals and objectives:

I. Promote and maintain the compatible uses of City-owned property available for lease and license located on the Pier in a manner supporting an attractive, safe, and accessible environment for visitors andall guests (a Guest is any person who visits the residential community;Pier).

II. Provide for a diversity of business, entertainment, eventevents, educational, and cultural activities as well as active and passive recreational opportunities on the Pier;.

Promote
III. Operators on the Pier provide quality and value of goods, food, and services provided by the commercial operators on the Pier;.

I.IV. Establish pricing of leasehold and license occupancies that reflects fair market value to help support that supports the fiscal self-sufficiency of the Pier;Assure access to and use of City-owned properties by the general public through a leasing and licensing program that promotes the orderly and equitable management of tenancies and licenses;supports viability for the economic success of the leaseholder/licensee.

IV.V. Preserve and promote the unique, mix of uses and services that are eclectic and maintain the community recreational character and animation of the Pier;.

V.VI. Preserve and build on the historic elements and character of the Pier while ensuring its relevance and vitality to current and future generations;.

Achieve
VI.VII. For operators on the Pier to achieve fiscal, social and environmental sustainability;.

VII. Enhance access and encourage both local and distant visitors to visit and enjoy the Pier;
VIII. Harmonize with the surrounding beach and downtownnearby business community;.

IX. Take an incremental but continuous approach to change to advance commercial, cultural and civic opportunities on the pier; and.

X. Seek a mix of uses and tenants that will contribute to the animation of the Pier.

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3. MANAGEMENT STRUCTURE
Leasing and licensing on the Pier is the responsibility of the City of Santa Monica through its Office of Pier Management (“OPM”) in coordination with the City’s Economic Development Division. OPM also oversees Pier maintenance and operations. Pier events, filming and marketing are managed by the Non-Profit Santa Monica Pier Corporation (“SMPC”) in accordance with Event and Marketing Guidelines developed by the SMPC and the OPM subject to Council approval.

4. VISION FOR THE PIER AND GUIDING PRINCIPLES

4.1 Pier Leasing Vision Statement
A Santa Monica Pier that provides an historic platform and a legacy of colorful visitor experiences to showcase contemporary events; a community asset that attracts, welcomes and entertains local, regional, national and international visitors of all incomes, abilities and interestsguests from all walks of life and from all points on the globe; a landmark that offers an enticing and changing array of site-appropriate active and passive experiences and attractions.

4.2 Pier Guiding Principles
I. The Pier will be a signature attraction of the City of Santa Monica, known and recognized world-wide and enjoying a broad base of local community support.

II. The Pier will be an easily accessible and visually prominent destination within the City.

III. The Pier will provide enticing year-round experiences and attractions for visitors, with the goal of attracting and engaging guests of all ages, social, and economic status.

IV. The Pier will attract and engage visitors of all ages and incomes.

V.IV. The historic fabric and character, as well as the environmental sustainability and structural integrity of the Pier will be documented, celebrated, maintained and improved.

VI.V. Pier programming will include both traditional and cutting -edge current entertainment, cultural, athletic and educational experiences.

VII.VI. Promotions, sponsorships and private and public revenue-producing events, will largely off-setoffset the cost of popular and free public programming.

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5. SUB AREAS AND USES

5.1 Areas
The Pier is approximately 9 acres in size and consists of two adjoining piers:

I. Municipal Pier. The Municipal Pier is the primary walkway of the Pier. It is approximately 2.5 acres in size and 1,500 feet in length. This public strolling corridor provides the main access to restaurants, shops, amusement (e.g. carousel, Pacific Park) and recreation (fishing, walking, viewing) areas, vending carts and performers.

II. Newcomb Pier. Located south of and adjacent to the Municipal Pier, the Newcomb Pier (also known as the Pleasure Pier) is approximately 6.6 acres, of which 2.2 acres is currently used for public parking and special event space.

Most merchants, facilities, and events are on the Newcomb Pier while vending carts, kiosks and fishing activities are primarily on the Municipal Pier.

5.2 Commercial and Public Areas
The Pier presently has approximately 130,000 square feet of leasable commercial space comprised of buildings, kiosks, carts and deck area. The current Pier tenant mix is approximately 70 percent amusement, 25 percent dining, four percent educational and one percent retail.

Public facilities and service areas on the Pier include the Carousel building which houses City and SMPC offices; a Harbor Guards station; a Police Sub-Station; a Pier Maintenance workshop; and a second-floor public observation deck. In addition, there are central and west end public restroom facilities, a central trash & recycling shed, and a 270 space public parking lot. (also known as the Pier Deck for event licensing).

The “Santa Monica Pier Development Program” approved by Council on February 9, 1988, supported a development program that consisted of approximately 150,000 square feet of commercial area. A new planning effort under developmentThe goal of this program by the City with the assistance of the SMPC, will would be to explore access enhancements, potential expansion of existing activities, and new commercial and civic opportunities. This enhancement effort, and future efforts, may alter the overall mix of activities and usesbe used on the Pier over time to reflect the needs of the Pier and public and changing market conditions.

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6. GENERAL LEASING STANDARDS
Leases and licenses shall be consistent with the Pier Leasing Goals and Objectives.

I. The Santa Monica Pier is public property; therefore, all leases and licenses will be subject to an open and competitive public process.

II. Lease renewals will not be automatically offered to tenants. As vacancies arise either by lease expiration or earlier termination, recruitment for occupancy will be conducted in accordance with the Leasing Guidelines.

III. Preferred Uses include, but are not limited to, a range of entertainment and commercial products and services that will appeal to and serve both the residential community and area visitors. The City may change uses as leases expire in order to attract a tenant mix consistent with the Guideline’s goals and objectives.

IV. In order toTo promote merchant diversity on the Pier the award of multiple leaseholds and/or licenses to an individual tenant, licensee or operator is discouraged but may be allowed subject to conditions provided under Section 7.5.

V. All prospective tenants must provide evidence of economic viability and appropriateness to the Pier of their proposed uses and business plan, as well as their capacity and ability to develop and maintain their operation. for the short and long term, and meet their financial obligations to the City.

VI. Tenants and licensees will be expected to provide quality, visitor- supporting services or activities throughout the term of their lease or license, including sustained high levels of maintenance and cleanliness. Leases and Licenses will contain performance standards to ensure on-going quality and service. Failure to maintain performance standards will be considered a material breechbreach and subject the lease or license to termination.

VII. Tenants and licensees are expected to be active members of the Pier community, participating in its operational life and working together with the City and other tenants to enhance the Pier visitor experience. Tenants are strongly encouraged to join and participate in the Santa Monica Pier Businesses Association.

VIII. Assignment or subletting of leases is prohibited without. Any request to assign or sublet must first have the written consent of the Landlord. Landlord’sThe landlord’s consent will be subject to express standards and conditions set forth in the lease.

Assignment or subletting of licenses is prohibited without exception.

IX. Operation and improvements to lease and license areas are subject to the City’s standard regulatory review and approval process.

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7. MINIMUM/BASIC LEASE TERMS AND CONDITIONS

7.1 Diversity & Permitted Uses
The City will seek operators who offer creative, imaginative and unique merchandise, food options and activities that are thematically compatible with the Pier yet not overly duplicative of the products and services already offered on the Pier.

In order to
To maintain an appropriate tenant mix consisting of distinct and diverse merchandise, food and services the City will endeavor to limit the number of merchants who carry the same or similar types of offerings. A ‘Permitted Use’ clause shall be included in every lease and license to describe the type of business that will be operated within the leased premises or license area.

The Permitted Use description should clearly describe the type of business the tenant or licensee intends to operate and the merchandise, food or service the tenant intends to offer for sale.

The purpose of the Permitted Use clause is to regulate the duplication of merchandise or services; however, it does not grant any tenant or licensee an exclusive right to sell any item or service. ExclusivityExclusive rights shall not be granted to any merchant on the Pier.

7.2 Term
Rental lease terms for commercial space on the Pier shall be negotiated based on the level of capital investment, use, size of the space (leases for larger footprints are normally for longer terms) and complementary character of the operation with the Pier Leasing Goals and Objectives.

These factors also will be balanced against the City’s policy of ensuring that public sites periodically do become available for a public competitive process.

To maintain the vitality of the Pier the City needs to insureensure its ability to address the mix of uses and activities on the Pier over time. Therefore, it needs to have a variety of lease and license timeframes and not have the majority of licenses or leases with very long terms or the majority ofmost leases ending simultaneously-- thus limiting the City’s ability to deal with evolutionary changes in Pier visitor needs.

7.2.1. Recommended Terms for Leases and Licenses
I. Portable Vending Carts
The recommended term for vending cart licenses is from 6 months to 1 year. These licenses should be subject regularly to a public process to accommodate uses that meet contemporary Pier needs and to allow frequent opportunities for businesses interested in operating on the Pier.

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II. Fixed Location Kiosks
The recommended term for fixed location kiosk licenses and concessions is from 3 years to 5 years.

III. Deck Space Rental
The recommended term for the commercial license of deck space is from 1 day to 2 years, depending upon use and circumstances.

IV. Viewers and Transmitters
The recommended term for license and concession of cameras, antennas, and coin-operated telescopes and binoculars range is from 1 to 5 years depending on use and circumstances.

V. Retail Shops, Restaurants, Amusements and Aquarium
The recommended terms of leases for retail shops, restaurantrestaurants, attractions and th ethe aquarium range from 5 years to 25 years -- inclusive of any option periods.

Generally, terms of five years will be granted if there is no substantial new capital investment in structures, structural improvements or equipment. If a tenant is required to make substantial new capital investment in structures, structural improvements or equipment then terms of ten years to twenty-five years may be considered. Additional options to extend the term provided under Section 7.5, may be offered contingent upon the amortization and financial requirements of new investment and findings of benefit to the City.

VI. Leaseholds Subject to Development Agreements
Terms of leaseholds that are subject to a Development Agreement will be negotiated with the City of Santa Monica. A Development Agreement is a negotiated contract with the City that includes a developer’s contribution of significant community benefits and requires review by the Planning Commission and the Landmarks Commission, and final approval by the City Council.

7.3 Rates
Rents, fees and charges on the Pier are expected to reflect fair market value. Adjustments can be made to provide for diverse uses consistent with the Pier Leasing Goals and Objectives or significant offsetting capital investment that provides the Pier permanent benefits also consistent with the Goals and Objectives.

In addition to a base rent, the City may elect to requirerequest that a lease includeincludes a percentage

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rent provision, which can be differentiated by categories of sales. The City, as Landlord, shall have the right to audit tenant's financial records to ascertain that the gross sales figures reported by the tenant are accurate.

Leaseholds with preferred uses for research and public educational purposes (e.g. Santa Monica Pier Aquarium) may be maintained at other than fair market rental rates. The City will seek to reasonably minimize its costs associated with these activities by participating in ancillary gross receipts from commercial activities at educational facilities.

7.4 Hours of Operation
The Santa Monica Pier is a public venue open 365 days per year 24 hours per day. The number of days and hours of operations may be adjusted if the City mandates any emergency or needs for safety and security purposes. Pier merchants will be encouraged to remain open forto conduct business with adjustments related to the time of year, weather, and type of business. Minimum business hours when all businesses are expected to be in operation, unless otherwise specified, shall be daily between the hours of 11 am and 9 pm. Tenants will not be required to operate on Christmas Day and Thanksgiving.

7.5 Modifications Based on Findings of Exceptional Community Benefit Diversity of ownership in Section 6. IV and the length of term in Subsection 7.2.1. V may be modified if all four of the following findings can be made and documented:

I. The proposed project will provide an exceptional opportunity to fulfill a goal or objective of the Pier Guiding Principles and will enhance the unique character and the viability of the Pier.

II. The proposed project will require substantial capital investment and provide an exceptional return opportunity to the City.

III. The proposed project will enhance the mix of uses on the Pier while still being consistent with the Pier’s unique character.

IV. The proposed project will provide a significant enhancement to the visitor experience at the Pier.

7.6 Triple Net Lease
Unless otherwise specified, the Tenant shall pay all City, County, and State fees including but not limited to the following list: property taxes and, assessments (including Possessory Interest Tax), insurance, utilities and Common Area Maintenance Fees--as (defined below--in section 7.7) as well as any duly- enacted future assessment or fee that the City may elect to institute.

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7.7 Common Area Maintenance Fees
As a condition of occupancy of a Pier building, Leasehold tenants shall pay a proportionate share of the City’s Common Area Maintenance (“CAM”) cost to manage, maintain and provide security to Santa Monica Pier. On January 1, 2000, the applied Common Area Maintenance cost was modified to provide for a fixed CAM payment with biennial increases of not less than three percent (3%) and no greater than six percent (6%) per annum. The City may adjust the CAM fee from time to time. Currently the CAM fee is $7.6510.68 per square foot per year.

7.8 General Operational and Performance Standards
Tenants must maintain high quality and uniform standards of operation and service to sustain and increase demand for their business, maintain positive customer experience, and enhance the overall reputation of the Santa Monica Pier. In order toTo achieve the highest standards of operations the following standards may be incorporated into each lease and license:

I. Tenants are expected to staff and operate their businesses in a first-class and reputable manner, commensurate with transacting a high volume of business on the Pier.

II. Periodically, Landlord or Tenant may engage a third party “mystery shopper” to visit and evaluate Pier businesses. Tenant will provide an action plan for improvement if so, requested by the Landlord.

III. Tenants shall respond to Landlord’s written inquiries regarding any complaints or issues, including postings on social media sites related to Tenant’s operations.

Tenant will provide an action plan for improvement if so, requested by the Landlord.

I.IV. Food operations that receive a designation from the Los Angeles County Department of Health of less than an “A” more than three times during the term of the lease or license, except to the extent that any such rating is restored to an “A” within 30 days of receiving the lower grade, will be in default and breach of the lease/license.

Landlord recognizes that third party action may require additional time to reinstate “A” rating and may request tenant to provide an action plan for improvement.

II.V. Any Lease extension option will be conditioned upon the Tenant’s economic performance. For example, Tenants with a percentage rent clause should have reached rent levels requiring percentage rent payments to City for at least two of the four rental years immediately prior to the expiration of the lease.

III.VI. Landlord may establish an annual review process to be performed by Office of Pier Management Staff to evaluate key criteria utilizing a standardized rating scale that includes a review of reaching required rent payments for those Tenant’s with a percent rent clause.

IV.VII. Each Lease or License may have additional operational and performance standards applicable to the particular Tenant’s operation.

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7.9 Maintenance and Environmental Responsibilities
Lessees and Licensees shall be responsible for maintaining their facilities in attractive and safe conditionconditions, in compliance with applicable building codes and all applicable environmental laws, ordinances, regulations and standards. This includes all areas under their lease, the facades and exterior presentations, and appurtenance’sappurtenances of their facility or operation.

8. CITY POLICY PROVISIONS

8.1 Labor Peace
The City owns the Pier and has a financial or proprietary interest in Pier businesses engaged in visitor-serving commercial activities. Some of these businesses are in industries that have a history of labor/management conflict. Risk of interruption of rental revenue and common area maintenance fees received by the City from Pier businesses would be minimized if such businesses were assured of labor peace. An appropriate labor peace provision would minimize the City’s exposure to revenue interruption and disruption of public recreational enjoyment of the Pier.

Therefore, new or substantially amended agreements for leasehold operationoperations shall provide that the tenant will not engage in practices that impede employees’ ability to organize and contract with a labor organization for the purpose of collective bargaining. Such prohibited practices include harassment, intimidation, “captive audience” anti- union meetings or illegal terminations of workers in retaliation for organizing. A substantial amendment is defined as a change of use of the property, an increase in seating or square footage of more than 25%, or an extension of lease duration. Tenant engagement in prohibited practices shall constitute an event of default under the terms of the lease. Affected leases would be those businesses having five or more full or part-time employees that engage in restaurant or visitor-serving entertainment activities such as arcades, amusement parks and nightclubs.

8.2 Sustainability
The City of Santa Monica is committed to meeting its existing needs without compromising the ability of future generations to meet their own needs. Therefore in order to conserve and enhance local resources, safeguard human health and the environment, maintain a healthy and diverse economy, and improve the livability and quality of life for all community members in Santa Monica, each new or

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substantially amended agreement for leasehold operation shall include provisions that require sustainable practices including:to advance the City’s broad goals of Carbon Neutrality, Water Self Sufficiency, and Zero Waste including:

A. Carbon Foot Print Reduction. Tenant shall use best efforts to help meet City-wide carbon footprint reduction goals by taking actions to improve energy conservation by minimizing unnecessary use of electricity and water, minimizing or eliminatingreducing the use of hazardous or toxic materials, and minimizing single- occupancy vehicle trips by facilitating employee use of alternative transportation modes such as carpools, buses, vanpools, and bicycles. A list of green business best practices is available at: www.sustainableworks.org B. Healthy Food/Sustainable Food Provision. Tenant shall exercise best efforts to procure and promote healthy and sustainable food practices on the Premises. Approaches include utilizing locally and sustainably grown, organic foods from California; offering meatless menu options and food that has been minimally processed; and reducing food packaging waste. Tenant is expected to participate in recycling and composting programs offered by the City. Information on the City’s Sustainable Food Commitment is available at:
www.sustainablesm.org/food
A.C. Non-Recyclable Food Service Container Ban. Tenant shall comply with the City of Santa Monica Ordinance (S.M.C.C. 5.44) banning non-recyclable plastic disposable foodservice containers. Information on the Non-Recyclable Food Service Container Ban is available at: www.sustainablesm.org/container.santamonica.gov - Disposable Food Service Ware Ordinance
D. Single Use Carryout Bag Ban. Tenant shall comply with the City of Santa Monica Ordinance (S.M.C.C. 5.45) banning the use of single-use plastic carry-out bags.

Information on the Single-Use Carryout Bag Ban is available at:
www.sustainablesm.org/bag
A.E. Forest Stewardship Council Approved Products. Tenant is expected to follow the recommendations of the Forest Stewardship Council recommended products list in procurement of supplies.

F. Tenants are strongly encouraged to demonstrate a commitment to sustainability by pursuing green business certification through the Santa Monica Green Business Certification Program which helps foster more livable communities with healthier environments, while also conserving resources and helping businesses cut costs. To learn more about how to join the Green Business Certification program or to participate in the business greening program please contact Sustainable Works at:
www.sustainableworks.org
For additional resources related to the City’s Sustainability programs or to speak with someone in the Office of Sustainability to discuss the Sustainable City Plan, Water Conservation, Climate Action and Adaption, Electric Vehicles, Shared Mobility, and Green Building please visit:
santamonica.gov - Sustainable and Connected

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8.3 Landlord’s Licensing Program
The Landlord and The Santa Monica Pier Corporation may engage in sponsorship programs applicable to all tenants on the Santa Monica Pier. Tenant shall agree to participate in and be subject to such sponsorship program(s) so long as the terms of sponsor products, goods and/or services are at least as favorable to Tenant as the terms of agreements applicable to the same products, goods and/or services supplied to Tenant for use on the Premises at the time of Landlord’s or Pier Corporation’s request for Tenant participation--provided that such sponsorship program does not violate any contractual agreements entered into by Tenant.

9. DESIGN GUIDELINES
The Santa Monica Pier 1987 Design Guidelines remain the primary reference regarding structures on the Pier, encouraging a balanced respect for the historic architectural elements and unique character of Pier with the intent to advance the range of activities and services to enhance the visitor experience and success of Pier operations and businesses. All public and private structural modifications and other improvements proposed on the Pier will be subject to review for consistency with the Design Guidelines, without exception.

The City’s Economic Development Division in its proprietary capacity as Landlord must review and approve in writing all proposed modifications before any regulatory action, including submission of applications to Planning or Building and Safety. The regulatory permit and entitlement process involves the City as regulator, not as Landlord. These are entirely separate roles and approval of one does not mean approval by the other.

10. TENANCY RELATIONSHIPS
All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable for leasing or licensing by the City to individual tenancies or licensees will be in accordance with agreements prepared by the City. Each tenant or licensee will be responsible for interior maintenance and repair and utility consumption at its sole expense, and the City generally will retain responsibility for maintenance and repair of roofs and exterior of City buildings, and of the Pier deck and substructure unless otherwise specified in the lease or license. Structures constructed by tenants are subject to interior and exterior maintenance and repair by the tenant at its sole expense. The City shall have a right to inspect all tenant improvements, including fixed assets that will revertbe reverted to the City at the end of the lease term, for the purpose of determining maintenance and repair needs. If necessary, Tenant is responsible for making repairs to, or replacing, such fixed assets at its sole expense.

11. TENANT RECRUITMENT
All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable for leasing or licensing will be subject to a public procurement and solicitation process to identify prospective tenants and licensees whose financial and professional experience, and products and/or services are consistent with the Leasing Goals and Objectives set forth herein.

Prospective tenants will be sought by publicly noticing the availability of a leasing opportunity on the City’s web site and through other appropriate forms of communication designed to reach the

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intended audience. This may include printed and electronic advertisements in appropriate websites, trade journals or newspapers;, display banners on the property; and other forms of outreach to potential operators. In addition, the City may retain a qualified commercial real estate brokerage firm or listing agent to market the leasing opportunity, identify prospective tenants, and cooperate with other realtors.

All prospective tenants must submit a Lease or License Application to the City. InformationThe information contained in the Lease or License Application shall describe the proposed use for the available space; provide information about the respondents’ experience; provide references; describe in detail the financial capability of the respondent to perform; and set forth preliminary terms and conditions.

12. EVALUATIVE CRITERIA AND SELECTION
Leasing opportunities at the Pier are very limited. Therefore, each lease is vital in order toTo maintain a vibrant mix of uses and sustainable Pier business environment. This requires an extensive outreach effort and a thorough review and selection process.

The Pier Manager will appoint an evaluation panel to review all applications submitted to the City. The panel will include representatives from the Office of Pier Management; the Economic Development Division; the Santa Monica Pier Corporation; and other City staff and other organizations and consultants as appropriate.

The panel will review and evaluate applications based on a uniform criteriacriterion that may include but are not limited to provides transparency in the following: (i)process as follows with a total of 100 base points to be scored with up to an additional 10 Bonus points.

If the panel proposes different evaluation criteria weighting, these weights should be disclosed to the Pier Manager to be presented to the Pier Corporation Leasing Committee as described below.

1. 20 points (20%) character, reputation, training, and experience of the prospective tenant or licensee; (ii).

2. 20 points (20%) ability, capacity, and skill of the prospective tenant or licensee to perform; (iii) the intendent usages under the terms of the lease.

3. 20 points (20%) quality, price, and pricevalue of the services or goods to be provided; (iv).

4. 20 points (20%) uniqueness and compatibility of proposed product or service with the Santa Monica Pier, (v)

5. 20 points (20%) financial capability; for operations (short and (vi) length of tenure in an Exemplary Manner (see below) on the Pier.long term), Capital Improvements, proposed rent terms and meeting financial obligations to the City.

The selection process will include additional bonus

6. Bonus Points (10 points) Bonus points for existing Pier tenants and licensees who are deemed to have operated in an Exemplary Manner. (defined below).

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The term “Exemplary Manner” will mean and refer to those Pier tenant or licensees who meet all of the following criteria: Merchants that throughout the term of their lease or license have:
(i) provided consumers with relevant and quality merchandise, food and activities, (ii) demonstrated a track record of good customer service, (iii) regularly updated and invested in their operation and premises;. (iv) demonstrated increasing sales volume over time;.
(v) have been productive and active members of the Pier Community; and (vi) complied with all lease or license provisions, as well as all applicable local, state and federal laws and regulations.

Proposers may be asked by the panel to participate in an oral interview in order to clarify or elaborate on their proposal and to demonstrate samples of products or services. The panel also may request verification of credit history and may contact references.

The evaluation panel will provide to the Pier Manager with its analysis and recommendation of a preferred respondent or respondents, inclusive of appropriate bonus points. The panel’s recommendation also may be to reject all responses, solicit additional information from one or more respondents, or to enter intoan exclusive lease or license negotiations with a preferred respondent.

The panel's recommendation and scoring of the recommended respondent(s) will be shared with the Pier Corporation's Leasing Committee before the recommendation is brought to the Pier Corporation Board of Directors

13. LEASE APPROVALS & DELEGATION OF AUTHORITY
The City Manager has the authority to negotiate and execute leases and licenses with terms of three years or less for usesuse in accordance with this Leasing Guideline, and based on the basis of written agreements prepared and approved as to form by the City Attorney.

Leases and licenses with terms of occupancy greater than three years and less than twenty-five years, shall require a recommendation of the Pier Corporation Board to the City Manager to enter into a lease or license with the preferred respondent subject to specific terms and conditions; enter into exclusive negotiations with a preferred respondent; reject the recommendation; or direct that additional information be solicited prior to making a determination. In negotiating leases, staff will refer to any suggestions or recommendations of the board.

Negotiation of leases and licenses with terms of occupancy greater than twenty- five years shall require authorization by the Council following a recommendation from the Pier Corporation Board.

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The City Attorney will prepare and approve as to form all lease and license agreements for review and execution by the prospective tenant or licensee. The executed lease or license agreement will be submitted to the City Manager If determined to be in accordance with the Leasing Guidelines, Pier Corporation Board recommendation, and Council authorization if required, the City Manager will execute the agreement.

PROTEST/

14. APPEAL PROCESS
Applicants who are not selected as the preferred respondent by the evaluation panel will be informed by letter or email. Protestant may file a written protest with the City’s Economic Development Manager no more than seven (7) calendar days following the notification. The written protest must set forth, in detail, all grounds for the protest, including without limitation all facts, supporting documentation, legal authorities and arguments in support of the grounds for the protest. All factual contentions must be supported by competent, admissible and credible evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to this procedure shall be rejected as invalid. The protest must include the name, address, and telephone number of the person representing the protesting party.

The Economic Development Manager shall review the merits and timeliness of the protest and issue a written decision to the Protestant within ten (10) calendar days of receipt of the protest.

The decision of the Economic Development Manager may be appealed to the City’s Housing and EconomicCommunity Development Director by filing a letter appeal within ten (10) calendar days offrom the date of the Economic Development Manager’s decision. The letter of appeal shall set forth, in detail, all grounds for the appeal, including without limitation all facts, supporting documentation, legal authorities and arguments in support of the grounds for the appeal. All factual contentions must be supported by competent, admissible and credible evidence. Any matters not set forth in the letter of appeal shall be deemed waived. Any letter of appeal not conforming to this procedure shall be rejected as invalid.

The City’s Housing and Economic Development Director, with consultation from the City Attorney’s office, shall review the merits and timeliness of the letter of appeal and issue a written decision to the Protestant within seven (7) calendar days of receipt of the letter of appeal. The decision of the Director is final.

The Evaluation Panel will be informed of an appeal by the City’s Economic Development Manager when they receive the written protest. The Evaluation Panel will receive updates during each step of the appeals process.

Attachment A. Santa Monica Pier Lease and License Inventory

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ATTACHMENT A.

SANTA MONICA PIER LEASE AND LICENSE INVENTORY (Updated Dec. 2013May 2025) As of the date of adoption of these Guidelines, the buildings and areas on the Santa Monica Pier available for lease or license consists of (but are not be limited to) the following:

Leases/Concessions:

Address Current User/Use Term
Expiration
(inc.
options)/
Status
Notes
1600 Ocean Front Walk Heal the Bay Aquarium/marine
educational facility
June 2018
m2m holdover
Council-authorized new
lease with HTB -- in
process.
200-A Santa Monica
Pier
Pier Shop/retail and visitor
information
April 2014
m2m holdover
Agreement with SMPC
and operated by SMTT.
200-B Santa Monica
Pier
Soda Jerks/ ‘old fashion’ soda
fountain.

July 2025
250 Santa Monica Pier Seaside on the Pier/full-service
restaurant
December 2038
256 Santa Monica Pier Vacant Recruitment in process
258 Santa Monica Pier The Albright/counter-service
restaurant (seafood)
Oct. 2041
301 Santa Monica Pier Bubba Gump Shrimp Co./fullservice restaurantMay 2027 310 320 Santa Monica
Pier
Blazing Saddles/ bicycle rentals Oct 2004
m2m holdover
322 Santa Monica Pier Heal the Bay Gift
Shop/aquarium themed
souvenirs
June 2028
330 Santa Monica Pier Pier Burger/counter-service
restaurant
Oct 2028
350 Santa Monica Pier Playland Arcade/arcade June 2031
370 Santa Monica Pier Santa Monica Trapeze
School/trapeze school
Aug. 2024
m2m holdover
Council authorized new
lease with SMA-- in
process
380 Santa Monica Pier Pacific Park/ amusement park May 2070 401 Santa Monica Pier Mariasol Cucina/full-service
restaurant
March 2028
404 Santa Monica Pier Santa Monica Bait and
Tackle/fishing tackle and
souvenirs
June 2004
m2m holdover
Kiosks and Carts
Current User/Use Status Notes
66 to Cali/route 66 souvenirs m2m holdover Kiosk by police substation Marlene’s Beachcomber/souvenirs,
beach items.
m2m holdover Kiosk adjacent to Playland Arcade

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Oatman Rock Shop/ souvenirs m2m holdover Kiosk across from central plaza Hats Amazing/ hats m2m holdover Mobile vendor
Redline/ sunglasses m2m holdover Mobile vendor
Candy Carousel/ popcorn ,candy m2m holdover Mobile vendor Pier Photo Company/souvenirs m2m holdover Mobile vendor Japadog/hotdogs m2m holdover Mobile vendor
Pier Tamales/ tamales, esquites m2m holdover Mobile vendor Tees R Us/t-shirts m2m holdover Mobile vendor
Downtown Food Commissary/fruit m2m holdover Mobile vendor Windy Time/wind chimes, souvenirs m2m holdover Mobile vendor Two Photos in One/photographs m2m holdover Mobile vendor LA Beach/ kites, souvenirs m2m holdover Mobile vendor
Beach Signs and Gifts/ signs, souvenirs m2m holdover Mobile vendor

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Report
City Council Meeting: July 8, 2025
Agenda Item: 4.F
1 of 3
To: Mayor and City Council
From: Matthew Hallock, Fire Chief, Fire Department
Ramon Batista, Police Chief, Police Department
Subject: Authorization to Accept Urban Area Security Initiative (UASI) 2024 Grant for Homeland Security Projects
Recommended Action
Staff recommends that the City Council:

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

3. Authorize the City Manager to execute all necessary documents to accept the grant and any subsequent grant modifications; and

4. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).

Summary
Each year, the Federal government allocates grant funding to enhance regional preparedness for disasters, emergencies, and other threats to homeland security. For the Urban Area Security Initiative (“UASI”) 2024 grant cycle, $2,498,772 was awarded to the Santa Monica Fire and Police Departments as part of the U.S. Department of Homeland Security (“DHS”), Federal Emergency Management Agency’s Urban Area Security Initiative Grant. The City of Los Angeles administers the UASI grant on behalf of the Los Angeles-Long Beach Urban Area, which includes Santa Monica. Staff recommends that the City accept the UASI 2024 grant funds and enter into a

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subrecipient agreement with the City of Los Angeles for a performance period of September 1, 2024 to May 31, 2027.

Discussion
The UASI program directly supports the national priority of expanding regional collaboration within the National Preparedness Goal, which is guidance from DHS that sets forth what is required for a local community to be prepared for all types of disasters and emergencies. The UASI grant is intended to assist participating jurisdictions in developing integrated regional systems for prevention, protection, response, and recovery from natural or human-made disasters. These funds cannot be used for general purposes and must be specified at the time of application. Homeland security purchases must be pre-approved by the state and align with grant guidelines. There is no local match for the UASI program.

For the UASI 2024 grant cycle, $2,498,772 was awarded to the Santa Monica Fire and Police Departments. Of the $1,120,000 awarded to the Police Department, the major approved expenditures include:
• $1,000,000 to upgrade radios to ensure interoperability • $120,000 for the purchase of multi-utility vehicles for Chemical, Biological, Radiological, Nuclear, and high yield Explosives (CBRNE) Incident Response Of the $1,378,772 awarded to the Fire Department, the major approved expenditures include:
• $700,000 for the Regional Training Delivery model which creates and disseminates regional training on behalf of the Los Angeles Area Fire Chiefs’ Association (LAAFCA)
• $200,000 for the Regional Training Officer who works on regional training on behalf of LAAFCA
• $181,000 for Tactical Executive Command and Control Training • $94,050 for Satellite Training Centers Sustainment and Maintenance Environmental Review
The acceptance of federal grant funds is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the

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CEQA Guidelines, which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The grant funds would enhance public safety with equipment, programs, training, and exercises. Therefore, it can be seen with certainty that the acceptance of federal grant funds is exempt from CEQA.

Financial Impacts and Budget Actions
Staff seeks authority to accept a grant totaling $2,498,772 from the U.S. Department of Homeland Security, Federal Emergency Management Agency for UASI 2024 to fund projects, purchase equipment, and fund training in support of overall regional goals to promote effective information gathering, sharing, and response to threats and/or acts of terrorism.

Approval of the recommended action requires the following budget amendment to the Miscellaneous Grants Fund.

FY 2025-26 Grant Budget Changes
Establish Revenue Budget Appropriate Funds
Account Number Amount Account Number Amount
20190001.40428i $1,378,772 20190001.55518i $1,378,772
20180001.40428i $1,120,000 20180001.55518i $1,120,000
If modifications or renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval.

Prepared By: Jonathan Tang, Principal Administrative Analyst Approved Forwarded to Council

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City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.G
1 of 5
To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Award Contracts for Seismic Retrofit Program Engineering Reviews Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 437 to Degenkolb Engineers for seismic structural engineering services for the Community Development Department;

4. Award RFP# 437 to IDS Group for seismic structural engineering services for the Community Development Department;

5. Authorize the City Manager to negotiate and execute agreements with IDS Group, in an annual amount not to exceed $80,000 (for three years, with two additional one-year renewal options in the amount of $80,000, on the same terms and conditions) for a total amount not to exceed $400,000 over a five-year period, with future year funding contingent on Council budget approval;

6. Award RFP# 437 to Forell/Elsesser Engineers for seismic structural engineering services for the Community Development Department;

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Summary
To meet the demands of the City’s Seismic Retrofit Program (Program), the Building and Safety Division contracts with structural engineering consultants with expertise in reviewing large, complex buildings. Currently, Building and Safety staff do not have the capacity to review two of the hazardous building types identified by the Program: Nonductile Concrete (NDC) and Steel Moment Frame (SMF). These buildings tend to be large, complex, multi-story structures. The consultants will review structural evaluation reports and seismic retrofit plans submitted by outside engineers and architects for structures on the City’s list of Potentially Seismically Vulnerable Buildings (PSVB). The Building and Safety Division is seeking to contract with three consultants to assist with the tasks of both plan review and structural evaluation report review to ensure that 1) structural analyses are comprehensively reviewed by qualified individuals, and 2) the current level of plan check service to customers is not compromised. The full cost of these services would be recouped through seismic fees adopted in the FY2025-26 budget.

Discussion
The City’s PSVB list encompasses nearly 2,000 buildings. Non-Ductile Concrete (NDC) and Steel Moment Frame (SMF) buildings comprise roughly 150 of the overall total; however, they are the largest and most complex building types on the list. Submitted plans and structural evaluation reports for these buildings must be reviewed by the City to determine compliance with seismic retrofit requirements. Staff do not have the same capacity to review these complex building types as quickly and accurately as outside firms who specialize in large building review; therefore, outside consultant services are necessary to maintain a high level of service.

In 2018, the City executed contracts with Degenkolb Engineers and IDS Group to provide these specific structural engineering services in support of the Program. A link to the Staff Report for the third and final modification to these agreements is attached.

Following the expiration of both agreements, the Building and Safety Division issued a Request for Proposals (RFP), completing a competitive bid process to enable continued specialized review of projects. There are approximately 27 NDC buildings and 58 SMF buildings remaining on the PSVB list. NDC buildings are required to complete a retrofit

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by October of 2027 and would likely be the primary focus of the proposed contracts.

The City may receive some SMF submissions as well, though they are due to complete construction by 2037. Prior work by consultants in this area was largely focused on review of structural evaluation reports. However, most owners intending to submit structural evaluations have already done so, so this new set of contracts will be largely focused on plan review.

Building and Safety is requesting authority to award $1,200,000 to fund these reviews on an as-needed basis. All expenditures to consultants for these reviews would be recouped in full through established Seismic Retrofit fees. Staff recommends executing contracts with Degenkolb Engineers, IDS Group, and Forell/Elsesser Engineers to perform these services. Having three firms available for this task gives the City flexibility in assigning reviews and makes it possible to send reports to multiple firms if a high volume is received in a short period of time, ensuring that turn-around times remain reasonable for customers. Degenkolb would be the primary recipient of submissions, as they were the highest scoring respondent to the request for structural engineering services, followed by IDS Group and Forell/Elsesser, respectively.

Vendor Selection
Bidder Recommendation
Best Bidders Degenkolb Engineers; IDS Group; Forell/Elsesser Engineers Evaluation Criteria
(include all that
apply)
Submittals were evaluated based on firm experience, project team, project approach, cost, and quality control. Evaluators primarily focused on the quality of services offered; the ability, capacity and skill of the bidder to perform the services; the capacity of the bidder to provide the service promptly, within the time specified, and without delay or interference; the character, integrity, reputation, judgment, training, experience and efficiency of the bidder; the overall cost of services, and the bidder’s approach to quality control.

The City is not required to select the bid with the lowest price.

Municipal Code SMMC 2.24.190
Submittals Received by Rank
Bidder 1 Degenkolb Engineers Bidder 3 Forell/Elsesser Engineers Bidder 2 IDS Group Bidder 4 Maffei Structural Eng.

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Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendor
Responses
Date Publicly
Opened
04/11/2025 City's Online
Bidding Site
Santa Monica Daily
Press
13 05/08/2025
Best Bidder Justification
The City is making three awards based on RFP #437. An evaluation committee of three Building and Safety staff members ranked the top three proposals as follows: 1.

Degenkolb Engineers; 2. IDS Group; 3. Forell/Elsesser Engineers. Firms were ranked primarily on their overall experience, the size/capacity of the firm, the qualifications/experience of the staff potentially working on this project, the systems in place for quality control, and overall cost of services. Reviews determined that Degenkolb leads in nearly every category, which is why they were top ranked.

Environmental Review
The award agreements are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The award agreements are covered by the common-sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement will provide the City with structural engineering services that will be performed entirely remotely, online, using City software systems.

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

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Past Council Actions
Meeting Date Description
03/16/18 (attachment
A)
Council authorizes professional services agreements with Degenkolb Engineers, IDS Group.
06/28/22 (attachment
E)
Council authorizes third modification to professional services agreements with Degenkolb Engineers and IDS group.

Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award contracts with Degenkolb Engineers, Forell/Elsesser Engineers, and IDS Group for structural engineering services.

Contract Request
Consultant FY 2025-26 Budget
Request Amount
Future Years
Amount
Department
Account #
Total Contract
Amount
Degenkolb $80,000 $320,000 01700004.552010 $400,000
Forell/ $80,000 $320,000 01700004.552010 $400,000
IDS Group $80,000 $320,000 01700004.552010 $400,000
Future year funding is contingent on Council budget approval.

Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council
Attachments:

A. March 6, 2018 Staff Report (Web Link)
B. OAKS Degenkolb
C. OAKS IDS Group
D. OAKS Forell
E. June 28th, 2022 Staff Report (Web Link)
F. Levine Act - Degenkolb Engineers
G. Levine Act - IDS Group
H. Levine Act - Forell/Elsesser Engineers

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CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

4.G.b
Packet Pg. 121 Attachment: OAKS Degenkolb (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Bid/PO/Contract # ____________________________ Permit # ___________________________ Sandy Hohener Principal
5/6/2025
[email protected] 213.596.4946
Degenkolb Engineers
Devon Lumbard, Garrett Hagen, Holly Razzano, Kenda Salisbury, Laurie Johnston, Stacy Bartoletti, Tricia Ruby, Lauren Evans, William Siegel, Maury Ballif, Jorn Halle, Michael Braund None

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Packet Pg. 122 Attachment: OAKS Degenkolb (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

This information is required by City Charter Article XXII—Taxpayer Protection.

It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after theofficial votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of SantaMonica.

Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seeking a “publicbenefit.” If the“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.

4.G.c
Packet Pg. 123 Attachment: OAKS IDS Group (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-monthperiod;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: Title:

Signature: Date:

Email: Phone:

Permit #
FOR CITY USE ONLY:

Bid/PO/Contract #

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Packet Pg. 124 Attachment: OAKS IDS Group (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

This information is required by City Charter Article XXII—Taxpayer Protection.

Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seekinga“publicbenefit.” Ifthe“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.

4.G.d
Packet Pg. 125 Attachment: OAKS Forell (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-monthperiod;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: Title:

Signature: Date:

Email: Phone:

Permit #
FOR CITY USE ONLY:

Bid/PO/Contract #
Forell | Elsesser Structural Engineers
Rene Vignos , Chris Petteys, Allen Nudel
Rene Vignos , Chris Petteys, Allen Nudel, Steve Marusich, Geo Bomba Geo Bomba, SE Principal
6/5/2025
[email protected] 650 269 0559

4.G.d
Packet Pg. 126 Attachment: OAKS Forell (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

4.G.f
Packet Pg. 127 Attachment: Levine Act - Degenkolb Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

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Packet Pg. 128 Attachment: Levine Act - Degenkolb Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

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Packet Pg. 129 Attachment: Levine Act - Degenkolb Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

4.G.f
Packet Pg. 130 Attachment: Levine Act - Degenkolb Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

4.G.f
Packet Pg. 131 Attachment: Levine Act - Degenkolb Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
The Levine Act prohibits City Officers from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $500 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form. https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards/
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________ Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

4.G.g
Packet Pg. 132 Attachment: Levine Act - IDS Group (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) City of Santa Monica Levine Act Disclosure Form
Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIATHAT THE FOREGOING IS TRUEAND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

4.G.g
Packet Pg. 133 Attachment: Levine Act - IDS Group (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $500 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.

State law requires a party to a proceeding to disclose any contributions exceeding an aggregate $500 that the party and their agents have made to an officer of the City within the preceding 12 months. The Disclosure Form is intended to assist City officials with recognizing when they have an obligation to disclose and recuse themselves, and to aid parties with their disclosure obligations.

For instance, the Levine Act applies to the following:
• Building and development permits
• Conditional use permits
• Contracts generally (unless an exception applies):
o Real property contracts for purchase, sale, lease
o Contract amendments
o Settlement agreements
o Contracts for goods, services, professional services that are not awarded pursuant to a competitive process
• Public street abandonments
• Private development plans
• Professional license revocations
• Rezoning of specific real estate parcels
• Event permits
• Rulemaking procedures affecting a particular industry where only a small number of businesses are affected
• Special district formation proceedings involving the creation of a special use or benefit to the person in the district
• Tentative subdivision and parcel maps

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• Zoning variances
• Vacation of a public easement across private property • Pre-applications, such as for General Plan Amendment, considered by the legislative body prior to filing of formal application
• Contracts entered under the City Manager’s Authority
• Closed session items that may result in a contract/settlement agreement approved by Council (real estate or litigation)
It does not apply to:
• Contracts under $50,000
• Contracts where no party receives financial compensation • Contracts between two or more public agencies
• Competitively bid contracts that are required by law, agency policy, or agency rule to be awarded pursuant to a competitive process
• Purely ministerial decisions
• General policy decisions or rules where the interests affected are many and diverse
• Ordinances and resolutions (except items like development agreements adopted by ordinance)
• Ballot measures
• Departmental policies
• Council rules
• Labor contracts and project labor agreements
• Personal employment contracts
• Allocation of resources in the City budget

3. What must be disclosed?
A party must disclose campaign contributions over $500 made in the prior twelve months.

A “contribution” is anything of value for which the party has not received full consideration, including money, nonmonetary items, payments made for advertising or

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Page 3 ends

other expenses coordinated with a candidate or committee, loans, tickets to political fundraisers, etc.

4.G.g
Packet Pg. 136 Attachment: Levine Act - IDS Group (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

4.G.h
Packet Pg. 137 Attachment: Levine Act - Forell/Elsesser Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) City of Santa Monica Levine Act Disclosure Form
Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIATHAT THE FOREGOING IS TRUEAND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

4.G.h
Packet Pg. 138 Attachment: Levine Act - Forell/Elsesser Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $500 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.

4.G.h
Packet Pg. 139 Attachment: Levine Act - Forell/Elsesser Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

Page 2 ends

3. What must be disclosed?
A party must disclose campaign contributions over $500 made in the prior twelve months.

A “contribution” is anything of value for which the party has not received full consideration, including money, nonmonetary items, payments made for advertising or

4.G.h
Packet Pg. 140 Attachment: Levine Act - Forell/Elsesser Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews)

Page 3 ends

other expenses coordinated with a candidate or committee, loans, tickets to political fundraisers, etc.

4.G.h
Packet Pg. 141 Attachment: Levine Act - Forell/Elsesser Engineers (7119 : Award Contracts for Seismic Retrofit Program Engineering Reviews) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.H
1 of 3
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Public Landscape Subject: Approval to Ratify Issuance of Purchase Order to Jilk Heavy Construction, Inc. for the Pier Pile Emergency Repair
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of categorical exemptions pursuant to Section 15301 and Section 15269 of the California Environmental Quality Act (CEQA) Guidelines.

Summary
The City of Santa Monica’s Public Landscape Division of the Public Works Department maintains the Santa Monica Pier, which is a national historical landmark and an iconic destination with a long history of public support and interest. It houses many private businesses, public attractions, and City offices and facilities. The pier is supported by piles throughout the entirety of the structure. These wood columns are crucial to the structural integrity of the pier. Pile 18M is located at the undercrossing between the bike path and the pedestrian walkway, immediately below the on-site parking deck. It is exposed not only to the standard environmental factors that exist around the pier, but also to wear and tear from the bike and foot traffic that traverses the undercrossing daily. The pier is regularly maintained and inspected by a dedicated Pier Maintenance crew, who discovered that pile 18M had severely deteriorated, was no longer

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structurally sound, and needed to be repaired immediately. As such, staff procured emergency repair services and issued a purchase order to Jilk Heavy Construction, Inc. per Santa Monica Municipal Code (SMMC) 2.24.240.

Discussion
The Santa Monica Pier’s pile 18M is integral to the structural support of the parking lot and has experienced rapid deterioration at its base, which required immediate repair. A contract for this type of repair does not currently exist. Therefore, staff attempted to obtain authorization through an informal bid process. However, the only quote received exceeded the quick quote informal bid threshold. Due to the urgent nature of addressing this item, staff determined that action could not wait for a formal bid, and the Procurement Manager authorized the use of the Emergency Purchase authority on May 21, 2025.

Exception to Competitive Bidding
Staff awarded a purchase order to Jilk Heavy Construction, Inc. to repair pile 18M underneath the Santa Monica Pier as an exception to competitive bidding per Municipal Code 2.24.250(i). The structural integrity of the Pier is critical to public safety and requires this repair as an emergency purchase.
i. A solicitation is made under the emergency procedures set forth in Section

2.24.240(d)(3). If pile 18M remained in the state of deterioration, the structural integrity of the Santa Monica Pier, specifically the parking lot area, would be at risk of collapse, which would threaten public safety of visitors to the Santa Monica Pier and beach, and would damage both private and public property.

Environmental Review
The emergency repair of pile 18M under the Santa Monica Pier is categorically exempt pursuant to Section 15301 (Existing Facilities) and Section 15269 (Emergency Projects) of the California Environmental Quality Act (CEQA) Guidelines. Section 15301 (Class 1 – Existing Facilities) exempts projects that consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15269(b) exempts

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emergency repairs to publicly or privately owned service facilities necessary to maintain service essential to the public health, safety or welfare. Emergency repairs include those that require a reasonable amount of planning to address an anticipated emergency. The purchase order would provide for emergency repair of the existing pile to ensure public safety and therefore is categorically exempt from CEQA review under CEQA Guidelines Section 15301 and Section 15269.

Financial Impacts and Budget Actions
The purchase order to Jilk Heavy Construction, Inc. for the emergency repair of pile 18M underneath the Santa Monica Pier was issued from the current budget in the Pier Fund.

Purchase Order
FY 2024-25
Request Amount Department Account # Total Contract Amount $60,000 53500001.529160 $60,000
Total $60,000
Prepared By: Leah Cornelius, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Oaks Form
B. Levine Form

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4.H.a
Packet Pg. 145
Attachment: Oaks Form (7126 : Pier Pile Emergency Repair)

4.H.b
Packet Pg. 146
Attachment: Levine Form (7126 : Pier Pile Emergency Repair)

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Packet Pg. 147
Attachment: Levine Form (7126 : Pier Pile Emergency Repair)

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Packet Pg. 148
Attachment: Levine Form (7126 : Pier Pile Emergency Repair)

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Packet Pg. 149
Attachment: Levine Form (7126 : Pier Pile Emergency Repair)

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Packet Pg. 150
Attachment: Levine Form (7126 : Pier Pile Emergency Repair) City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.I
1 of 3
To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Approval of Offer Letter for Retired Annuitant Extra Help Services in the City Manager’s Office – Elaine Polachek
Recommended Action
Staff recommends that the City Council

1. Adopt a finding of no possibility of significant effect pursuant to Section 15601(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;

2. Approve the offer letter to Elaine Polachek for her services as extra help during the transition to a new permanent City Manager; and

3. Authorize the Mayor to sign the offer letter on behalf of the City.

Summary
On January 21, 2025, the City Council appointed Elaine Polachek to serve as Interim City Manager, commencing upon the departure of former City Manager David White and continuing until the completion of recruitment for a permanent City Manager. On February 3, 2025, Ms. Polachek began providing extra help services for a limited duration, where she worked in a part-time capacity at the direction of Mr. White to facilitate a smooth leadership transition to ensure a continuity of City business. Upon Mr. White’s departure on February 20, 2025, Ms. Polachek then assumed the position of Interim City Manager; her services in this position will terminate as of July 14, 2025, when Oliver Chi will begin his employment as the City’s new permanent City Manager.

However, to avoid disruption in services to the Santa Monica community and to support the continuing needs of public business during this transition in leadership with and the onboarding of Mr. Chi, staff recommends that Council re-appoint Ms. Polachek as “extra help” on a part-time basis in the City Manager’s Office, due to her specialized skills at

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this executive level. As a retired annuitant, Ms. Polachek’s appointment is subject to the requirements of Government Code Section 21221(g). In accordance with these requirements, under the terms of the offer letter, Ms. Polachek’s hourly rate will be $197.41 (which equates to an annual salary of $410,604); her services will be for a limited duration to commence on July 14, 2025, until the end of the month; and she will receive no additional benefits. Because she will be serving as a “local agency executive” as defined in Government Code section 3511.1(d), California law requires that Ms. Polachek’s pay be approved at a regular meeting, with an oral summary provided before final action is taken. See Government Code sections 54953(c)(3), 54956(b).

Environmental Review
The offer letter for Ms. Polachek’s extra help services as a retired annuitant are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The offer letter is administrative in nature. Therefore, it can be seen with certainty that the offer letter would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Salary for retired annuitants appointed for a limited duration as extra help are included in the FY 2025-26 budget.

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Prepared By: Sasha Sargent, Executive Administrative Assistant Approved Forwarded to Council
Attachments:

A. PERS Annuitant TempPTofferltr_EPolachek 07.2025

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July X, 2025
Elaine Polachek
261 S. Reeves Drive #105
Beverly Hills, CA 90212
Re: Offer of Temporary, Part-Time Employment – Limited Duration Dear Elaine:

It is my pleasure to extend this offer of temporary, part-time employment. The specific terms of your appointment are as follows:
• Your start date is Monday, July 14, 2025, and your end date is Thursday, July 31, 2025.
• Your rate of pay is $197.41 per hour.
• You will be scheduled to work approximately 20 hours a week. • You are not entitled to receive any additional benefits, incentives, compensation in lieu of benefits, or other forms of compensation. • Your appointment is “extra help” due to specialized skills that are needed to perform work of a limited duration in the City Manager’s Office to avoid disruption in services to the community and support the continuing needs of public business during the transition in leadership with and onboarding of a new City Manager; your appointment is not to be a vacant budgeted position.
• As a temporary, as-needed employee, your employment status is at will and may end with or without cause or advance notice at any time. • As a CalPERS retired annuitant, your hours of work may not exceed 960 hours in a fiscal year (July 1st through June 30th) for all combined CalPERS employers by whom you are employed.

This offer of employment is made with the City’s understanding and belief that it complies with State law governing employment of CalPERS retirees. However, the City cannot guarantee that CalPERS may otherwise determine in the future that your employment is not consistent with limitations on post-retirement employment. Therefore, your acceptance of this offer of employment is done so at your own risk. If CalPERS finds that your post-retirement employment with the City violates restrictions on employment of retirees, the City will not be responsible for, and you agree to waive any and all claims against the City for, any loss or damage occasioned by you because of any such findings. Please review A Guide to CalPERS Employment After Retirement (Pub 33) to ensure you understand the rules for working after retirement.

If you accept this offer of temporary, part-time employment, please sign below and return this letter to my attention.

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Packet Pg. 154 Attachment: PERS Annuitant TempPTofferltr_EPolachek 07.2025 [Revision 1] (7160 : Approval of Offer Letter for Retired Annuitant Extra Help If you have any questions regarding this matter, please do not hesitate to contact Human Resources Director Dana Brown at (310) 458-8940 or [email protected].

Sincerely,
Lana Negrete
Mayor
Acknowledgement and Waiver:
“I, _______________________ (print full name), acknowledge receipt of this Offer of Temporary, Part-Time Employment – Limited Duration. I understand this employment is to perform work of a limited duration and subject to CalPERs’ rules for working after retirement. I have reviewed A Guide to CalPERs Employment After Retirement (Pub 33) and am aware of the rules for postretirement employment and the consequences for failure to comply. I confirm that I meet the prerequisites for a retired annuitant appointment with the City of Santa Monica. I agree that if CalPERS finds my employment with the City violates CalPERS’ restrictions on employment after retirement, the City will not be responsible for, and I agree to waive any and all claims against the City for, any loss or damage I incur because of any such finding.
_______________________________________ ______________________ Signature Date
Note: Upon acceptance, please retain original and return a signed copy of this letter to the Human Resources Department, City of Santa Monica, 1685 Main Street, Room 101, Santa Monica, CA 90401.
cc: Human Resources
Hiring Department

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Packet Pg. 155 Attachment: PERS Annuitant TempPTofferltr_EPolachek 07.2025 [Revision 1] (7160 : Approval of Offer Letter for Retired Annuitant Extra Help City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.J
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To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan
Recommended Action
Staff recommends that the City Council:

1. Approve the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan; and,

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

Summary
In 2012, in partnership with local hotels, Santa Monica Travel and Tourism (SMTT) established the Santa Monica Tourism and Marketing District (SMTMD) to fund targeted marketing and promotions to increase overnight room sales. Funding for the marketing programs and activities is derived from assessments and revenues collected from the hotels operating within the boundaries of the SMTMD. The attached SMTMD Annual Report (Annual Report) summarizes the proposed programs and activities for the upcoming Fiscal Year 2025-26, including the SMTMD budget, hotel report, and marketing plan. Staff recommends that Council review and approve the Annual Report in accordance with the State laws governing tourism marketing districts.

Discussion
Under Streets and Highway Code Section 36650, the Santa Monica Tourism and Marketing District (SMTMD) is required to prepare Annual Reports providing the

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

In accordance with Section 36650, the SMTMD has submitted its 2025-2026 Annual Report (Attachment D), including the work plan and budget for Council approval. The following overview summarizes the proposed expenditures to be funded with SMTMD assessments in the upcoming fiscal year.

SMTMD Reporting Year FY 2025-26
Revenues
Estimated SMTMD Assessments 7,105,554
Bank Interest 1,800
Total Revenues* $7,107,354
Expenditures
Cost of Programs
Travel Industry Sales 1,350,000
Marketing 1,604,608
Meetings, Incentives, Conferences,
and Exhibitions

300,000
Client Services
Public Relations
25,000
372,413
General and Administrative Services 705,000

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Salaries & Benefits 2,333,870
Contingency Fund 355,278
Fixed Asset 61,185
Total Expenses $7,107,354
Estimated Carry-over from Previous Fiscal Year $0
Estimated In-Kind Contributions $265,000
* This does not include $2,994,004 in City funding included in the FY 2025-26 Proposed Budget for a services agreement with SMTT that the City provides SMTT annually to continue SMTT’s tourism and marketing programs, operate Visitors Centers, produce collateral materials, create brand awareness, and promote Santa Monica through print and social media.

The SMTMD expenditures and services for FY 2025-26 are budgeted at $7,107,354 to fund programs and services that focus on five strategic areas:

1. Drive Balanced Demand for the Destination

2. Enhance the Brand and Steward the Destination Experience

3. Champion the Value of Tourism

4. Strengthen Strategic Partnerships and Relationships

5. Ensure Operational Excellence
The FY 2025-26 workplan continues to leverage Visit California and Los Angeles Tourism & Convention Board’s efforts with core goals centered on strengthening and enhancing Santa Monica as a brand, marketing and promoting Santa Monica as a tourism destination, increasing occupancy, establishing partnerships within the tourism community, private sector, and government entities to position Santa Monica as a filming destination, and expanding a presence in emerging markets.

The proposed FY 2025-26 budget was approved by the Tourism Marketing District Committee and the Santa Monica Travel and Tourism (SMTT) Board of Directors at a joint meeting on June 4, 2025. It reflects a consumer price increase of 2%. Council may approve the annual report or may modify any section contained in the annual report and approve it as modified. As the assessment formulas in the SMTMD remain as approved in 2017, staff recommend Council approve the attached Annual Report.

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Environmental Review
The SMTMD’s FY 2025-26 workplan is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The annual report provides a summary update of the activities and funding of the SMTMD. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Past Council Actions
Meeting Date Description
Attachment A - 7/9/2024 Council approved the Annual Report for FY 2024-25 (Calendar Year 2024) representing the seventh report
for the SMTMD renewal term.

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

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

Attachment D FY 2025-26 Annual Report
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.

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Prepared By: Nia Tang, Economic Development Administrator Approved Forwarded to Council
Attachments:

A. Attachment A - 7/9/2024 Staff Report (Web Link)
B. Attachment B - 11/1/2016 Staff Report (Web Link)
C. Attachment C - 12/11/2012 Staff Report (Web Link)
D. Attachment D - FY 2025 - 26 Annual Report
E. Oaks 2025
F. Levine 2025

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

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

Submitted to:

Jennifer Taylor, Economic Development Manager, City of Santa Monica Oscar Santiago, Director of Finance, City of Santa Monica Prepared by:

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

Fiscal Year 2024-2025
Submitted on April 1, 2025: ________
Enclosures:

Attachment A. 2025-2026 Budget
Attachment B. TMD ADR Assessment for 2024
Attachment C. Tourism Marketing District Plan
Attachment D. 2025-2026 Operating Plan

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Packet Pg. 161 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 2 of 7 April 1, 2025
Santa Monica Travel and Tourism
TMD Report Plan for Fiscal Year 2024-2025
Section One – Proposed Boundary Changes
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(1): Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.

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

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Packet Pg. 162 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 3 of 7 April 1, 2025
Section Two – Programs and Services for Fiscal Year 2025-2026 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(2): The improvements and activities to be provided for that fiscal year.

Programs and Services:

See Attachment D: 2025-2026 Operating Plan.

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Packet Pg. 163 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 4 of 7 April 1, 2025
Section Three – Approved Budget for Fiscal Year 2025-2026 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(3): An estimate of the cost of providing the improvements and the activities for that fiscal year.

Response: See Attachment A. 2025-2026 Budget. The 2024-2025 Budget was presented to the SMTT Board of Directors on March 12, 2025, where the Board of Directors approved the budget as presented unanimously. Minutes from the March 12, 2025, Board of Directors Meeting adopting the 2025-2026 budget will be presented at the June 4, 2025, Joint Annual Board and TMD Committee Meeting. Following the June 4, 2025 meeting, SMTT will forward the final minutes within 48 hours to the Economic Development Department.

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Packet Pg. 164 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 5 of 7 April 1, 2025
Section Four – Assessment Rates
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(4): The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.

Response:

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

The TMD Hotel Committee held their regular quarterly meeting on February 11, 2025, voting unanimously to move the July 1, 2025, assessment start date to January 1, 2026, and unanimously voting to increase the TMD collection rates for calendar year 2026, the rates for calendar year 2026 are listed below:

Average Daily Rate Assessment Per Occupied Room Per Night for January 1, 2025
Tier 3: $100-$199.99 $2.30
Tier 2: $200-$300 $6.25
Tier 1: Over $300 $7.25
See Attachment B. TMD ADR Assessment for 2024.

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Packet Pg. 165 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 6 of 7 April 1, 2025
Section Five – Carryover Dollars from Fiscal Year 2024-2025 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(5): The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.

Response: There are estimated to be no carryover dollars from fiscal year 2024-2025.

The contingency balance for fiscal year ending June 30, 2024, was $264,759 (4.27% of the annual funds per the SMTMD plan).

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Packet Pg. 166 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Annual Report Page 7 of 7 April 1, 2025
Section Six – Estimated In-Kind Contributions for Fiscal Year 2025- 2026
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(6): The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

Response: The projected in-kind contributions for the year 2025-2026 are $265,000.

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

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Packet Pg. 167 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 1 SANTA MONICA TRAVEL & TOURISM

PROGRAMS AND SERVICES OPERATING PLAN
July 1, 2025 – June 30, 2027

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Packet Pg. 168 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 2 TABLE OF CONTENTS
Executive Summary --------------------------------------------------------------------------------------------- 3 One Plan, Two Funding Sources ---------------------------------------------------------------------------- 6 Funding Sources ------------------------------------------------------------------------------------------------- 8 Programs & Services-------------------------------------------------------------------------------------------10 Lane 1: Drive Balance Demand for the Destination----------------------------------------------------16 Travel Trade – Domestic & International Markets ------------------------------------------------------17 Santa Monica Meet---------------------------------------------------------------------------------------------26 Lane 2: Enhance the Brand and Steward the Destination Experience----------------------------29 Experience Management Plan (EMP) ---------------------------------------------------------------------29 Tourism Improvement District (TID)------------------------------------------------------------------------30 Brand Campaign ------------------------------------------------------------------------------------------------30 Paid Media--------------------------------------------------------------------------------------------------------31 Santa Monica City Shared Identity Project ---------------------------------------------------------------32 Content and Social Media ------------------------------------------------------------------------------------32 santamonica.com -----------------------------------------------------------------------------------------------34 Santa Monica Restaurants -----------------------------------------------------------------------------------35 Media Relationships--------------------------------------------------------------------------------------------35 Crisis Communications ----------------------------------------------------------------------------------------37 Lane 3: Champion the Value of Tourism------------------------------------------------------------------40 Board Engagement---------------------------------------------------------------------------------------------41 Community & Civic Relations --------------------------------------------------------------------------------42 Santa MoniCARES ---------------------------------------------------------------------------------------------43 Tourism Industry Leadership---------------------------------------------------------------------------------44 I Am Santa Monica ---------------------------------------------------------------------------------------------44 “I Am Your Destination” Program ---------------------------------------------------------------------------45 Lane 4: Strengthen Strategic Partnerships ---------------------------------------------------------------47 Strategic Partnerships -----------------------------------------------------------------------------------------47 Lane 5: Ensure Operational Excellence-------------------------------------------------------------------50 Operational Excellence ----------------------------------------------------------------------------------------50 Emergency Preparedness ------------------------------------------------------------------------------------51 Destination Marketing Accreditation Program (DMAP)------------------------------------------------51 Closing-------------------------------------------------------------------------------------------------------------53

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Packet Pg. 169 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 3 EXECUTIVE SUMMARY
Dear Santa Monica Community and Tourism Business Partners, On behalf of the entire Board of Directors and Santa Monica Travel & Tourism (SMTT) staff members, we are pleased to present our program and services operating plan covering July 1, 2025, through June 30, 2027.

We’ve come a long way over the past four years and our destination continues to experience growth. However, due to recent natural disasters and the current geopolitical climate, there are many factors threatening a full recovery. Historically, prior to the pandemic, our visitor origin to Santa Monica was at a steady 50% from key international markets. Targeting and attracting this visitor base has been a strategic approach for decades as international visitors use public transport, stay longer in the destination and have a higher spend when here. While we are seeing international travel rebound at our hotels, the journey to full recovery continues as visa processing times remain elevated and the changing political landscape poses an increased threat. As an example of this, Canada recently called for a travel boycott to the United States.

While Santa Monica was fortunate to avoid any damage to infrastructure, the Los Angeles wildfires created a media perception locally, domestically and internationally that our city was closed for business. As such, our team has been aggressive to correct this media narrative and raise awareness that our beachside city is fully open for business and welcoming travelers. In fact, less than 2% of Los Angeles County burned. However, more work is needed to raise awareness of this.

Despite these headwinds, the United Sates is on the brink of a historic travel surge with mega events like the 2026 World Cup and 2028 Summer Olympic Games taking place in Los Angeles. Santa Monica is bound to benefit from these. However, the U.S. Travel Association has shared that advancements in travel technology are needed for us to fully capitalize on the opportunities. Specifically, enhancements are needed to visa processing, airport screening and staffing and customs wait times.

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

More optimistically, the U.S. Travel Association estimates that domestic leisure travel spending will grow 3.9% in 2025, equally 2019 levels. Air travel volumes are expected to continue growing into 2026 and beyond, bringing further optimism for our industry.

Visit California shows a similar forecast with total domestic visitor spending expected to grow by 3% in 2025. With international travelers, price remains a top barrier. However, this segment is still expected to grow by 22% in 2025.

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Packet Pg. 170 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 4 Santa Monica’s tourism industry is a critical source of jobs and revenue that contributes to a thriving and sustainable local economy. Pre-pandemic, visitor spending was nearly $2 billion with Transient Occupancy Tax (TOT) generating over $58 million into the City of Santa Monica’s general fund, providing for essential city services, including police and fire, parks, libraries, education and road improvements.

To ensure a strong, resilient and vibrant Santa Monica, our internal work is just as important as our external efforts. Over the next year, SMTT will continue to produce our annual economic impact study and utilize available research tools to help identify trends and track results. Additionally, this information will help to inform the Santa Monica Experience Management Plan (EMP) - a roadmap for the future which outlines nine strategies to optimize the Santa Monica experience for our residents and visitors through 2032 to preserve and enhance our quality of life. Each strategy has a dedicated localized committee to guide and ensure that progress is shared and stays on track. This plan is a collaborative vision created with the support of the City of Santa Monica, along with residents, businesses and community leadership. The EMP remains a priority as we rebuild the tourism industry and guide execution of those strategies for overall communitywide success.

We look to the future with hope, even as we reflect on the ongoing effects of this major global disruption. To rebuild our community, we must focus on investments, partnerships, innovation, and collaboration with all sectors. This will help strengthen our businesses, keep jobs in our area, and sustain the vital tourism revenues that support essential city services for our residents, businesses, employees, and visitors.

Just as our community came together to support our neighbors in the Los Angeles wildfires, so too will we come together to ensure our beachside city is offering the best visitor experience possible.

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

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

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Packet Pg. 171 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 5 ONE PLAN, TWO FUNDING SOURCES
While Santa Monica Travel & Tourism (SMTT) is supported through two funding sources, the organization operates from one cohesive strategic plan. Our two-year rolling strategic plan will align with the strategies in the Santa Monica Experience Management Plan (EMP) that provides a roadmap for destination success through 2032.

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

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

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

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

There are hundreds of Santa Monica businesses (beyond our hotels) that directly benefit from a strong visitor base. City funding ensures the promotion of those local businesses and provides opportunities for them to reach and serve that visitor base. Small businesses are some of the most dependent on us, as they often are less equipped to gain high visibility and reach domestic and international visitors to stimulate visitor spending. This is more critical than ever as we rebuild from the economic downturn.

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Packet Pg. 172 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 6 City funding allows us to provide basic services to more than eight million visitors once they are in our community. It helps steer them to our businesses in each neighborhood, communicate local ordinances and provide public safety tips to ensure they responsibly enjoy their Santa Monica experience, an area that will require further attention as visitation grows.

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

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Packet Pg. 173 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 City Contract,
$2,994,004.00
Other Income,
$190,000
Visitor Center Retail
Sales Revenue,
$85,000
TMD Collections,
6,813,435
2025-2026 Funding Sources
City Contract Other Income Visitor Center Retail Sales Revenue TMD Collections TIS, $1,243,002
Marketing, $1,754,608
Visitor Services,
$216,330
MICE, $375,000
Client Services, $155,120
Public Relations,
$646,898
General & Administrative,
$1,454,000
Salaries & Benefits,
$3,802,224
Fixed Asset, $98,185
2025-2026 Total Budget Expenditures
TIS Marketing Visitor Services
MICE Client Services Public Relations
General & Administrative Salaries & Benefits Fixed Asset (37% of total budget)

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Packet Pg. 174 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 City Contract,
$2,994,004
City Other Income,
$200,000
Visitor Center Retail Sales
TMD Collections Revenue, $135,000 ,
7,125,967
2026-2027 Funding Sources
City Contract City Other Income Visitor Center Retail Sales Revenue TMD Collections TIS , $1,381,413
Marketing,
$1,625,000
Visitor Services,
$209,000
MICE, $355,000
Client Services,
Public Relations $230,213 ,
$650,000
General &
Administrative,
$1,530,098
Salaries & Benefits,
$4,023,463
Fixed Asset,
$98,185
2026-2027 Total Budget Expenditures
TIS Marketing Visitor Services
MICE Client Services Public Relations
General & Administrative Salaries & Benefits Fixed Asset (38% of total budget)

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Packet Pg. 175 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 9 CITY FUNDING USE BY DEPARTMENT
Programs and services utilizing city funding are outlined below by department:

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

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Packet Pg. 176 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 10 • Promptly answer all correspondence related to convention and visitors’ facilities in Santa Monica and disseminate information through correspondence, media publicity and personal contacts that favorably advertises advantages and opportunities.
• Promote travel and tourism activities that will bring additional revenue to the city and local businesses.
• Host familiarization tours (FAMs) for leading domestic and international travel industry buyers, journalists, editors, influencers and broadcasters. • Proactively secure broadcast segments that showcase the Santa Monica visitor experience.
• Attend global and domestic media networking events that connect the travel industry with top-tier journalists, editors, influencers and broadcasters. • Direct efforts toward cultivating a dynamic and contemporary brand presence aimed at fostering visitor engagement and stimulating economic growth. • Drive awareness and participation in community-based charitable initiatives utilizing the Santa MoniCARES website, collateral materials and advertising channels.
• Provide complimentary promotional opportunities to local partners, encompassing 360-degree video capture, social media promotion, destination signage and exposure on santamonica.com.
• Expand Santa Monica’s competitiveness for groups by advising and supporting group marketers.
• Assist and explore opportunities to expand and improve existing products, services and experiences.
• Periodically review public and private facilities and services in Santa Monica necessary for travel and tourism activities, with the goal to advise the city and business community of concerns and needed improvements that align with the Experience Management Plan (EMP).
• Facilitate roundtable educational sessions for local businesses. • Publish and inform tour companies and drivers of all bus loading zones in the destination.
• Pursue integrated marketing campaigns and experiential brand activations in designated target markets.
• Create promotional videos for key pillars, such as culinary, health & wellness and outdoor activities. These videos will provide us with exciting content to house on our website and share through social media and newsletters and use as pitching materials to secure media coverage.
• Develop Virtual Reality (VR) tours of destination experiences and businesses. • Begin development of short- and long-range sponsorship and partnership programs for SMTT, including:
• Route 66 Centennial in 2026
• 2026 NBA All-Star 2026

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Packet Pg. 177 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 11 • 2026 FIFA World Cup 26
• 2027 Super Bowl LXI
• 2028 Olympic & Paralympic Games
• Continue to elevate our destination brand refresh and address new luxury hotel and business additions in collateral.
• Update destination photography and videography as needed to evolve the brand. 2025-2026 Programs / Additions
• Expand to sales audiences in the Middle East to ensure Santa Monica is well positioned to attract a wide range of international visitors. • Expand and re-engage media in India to ensure Santa Monica is featured in travel outlets positioning the city as a must-visit destination. • Act on learnings of Santa Monica Experience Management Plan (EMP). • Continue to elevate brand collateral for luxury markets and MICE. • Submit Santa Monica Travel & Tourism to brand design, travel, hospitality and group/ MICE industry publication awards for recognition. • Plan new opportunities for partners and local businesses to work with us and be featured on our website such as a more robust “Like a Local” section marketed toward residents.
• Work with our new Agency of Record (AOR) to make seasonal landing pages and our Trip Planner more robust with partner suggestions and specials. • Introduce Matador AI chatbot to santamonica.com.
• Increase dynamic itineraries on our website to drive traffic, increase SEO and highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate on social media with partners, local businesses and influencers while sharing more dynamic videos and evolving with social media trends.
• Develop engaging campaigns for residents to be a part of to promote our value. • Support and promote the Santa Monica 150th Anniversary celebrations. • Make our Route 66 landing page more robust with events and specials, while seeking out further partner involvement opportunities. This includes the launch of a Route 66 song contest.
• Seek out opportunities for a new “Taste of Santa Monica” culinary event with local chefs and publish a Santa Monica cookbook on a regular basis to expand upon Santa Monica as a culinary destination.
• Collaborate with Visit California on culinary offerings, through participation in the Visit California Culinary Committee.
• Launch marketing committee to seek out business community involvement in marketing opportunities and needs.

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Packet Pg. 178 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 12 • Expand retail merchandise line through custom merchandise creation and brand partnerships.
2026-2027 Programs/Additions
• As budget permits, expand sales and PR markets in emerging global markets including India, the Middle East, Brazil and Mexico.
• Expand upon luxury brand photography and offerings to reflect Santa Monica’s new business growth.
• Pursue an opportunity to create a Santa Monica Fashion Week appealing to leisure and sport-enthusiast travelers.
• Increase web traffic to seasonal landing pages and partner specials year over year (YOY).
• Support current EMP committees and add additional committees in line with goals.

Visitor Services
• Operate three Visitor Information Center locations, plus a mobile Visitor Center that serves community events. Visitor Center staff serve when needed as distribution points for city programs and during emergencies. They serve as ambassadors in providing information and services to residents and many of Santa Monica’s 5.3 million annual visitors, 365 days a year.
• Support local community events on site including, but not limited to: National Night Out, Pier 360, local BID holiday events, Buy Local, MAINopoly, Summer SOULstice, ICE Santa Monica, Annual Christmas Tree Lighting at Santa Monica Place and Meet Me Under the Fig Tree.
• Themed lighting on locations to further welcome visitors, celebrate holidays and highlight city-wide events.
• Continue to serve as a city-wide distribution point for resources and information for Santa Monica businesses, residents and visitors.
• Share information and celebrate the positive impacts of tourism for the community at the Annual Tourism Summit, which is a gathering of business, civic and nonprofit organizations. The Tourism Summit is a shared expense between City and TMD during the month of May which is California Tourism Month. • Provide curbside drop-off service for Santa MoniCARES donation collections benefiting Santa Monica-based nonprofits.
• Respond to text-on-demand requests seven days a week during operating hours at Visitor Information Centers.
• Explore and implement AI tools to provide information 24 hours, 7 days a week to potential and visiting individuals.
• Provide Route 66 certificate of completion for travelers who complete the route. • Measure overall number of visitors served.

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Packet Pg. 179 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 13 2025-2026 Programs/Additions
• Advance development plan for Visitor Service locations upgrades, both physically and technologically.
• Finalize plan for Visitor Center product and signage, including SMTT’s mobile vehicle, in line with the brand refresh creative.
• Have Santa Monica representation outside of SoFi for international visitors in town for the FIFA 2025 Club World Cup and 2026 World Cup
• Bring back and revisualize an augmented reality visitor guide application that shows reviews of each business and restaurants in Santa Monica. • More representation at local Santa Monica community events and periodic popups at farmers markets. • Prepare for bulk order retail program for retail to local businesses. 2026-2027 Programs/Additions
• Touch screen kiosk(s) or tablet at all VC locations that can bridge the language barrier between our staff and international guests.
• 1-, 2- or 3-day itinerary booklets at all locations for Santa Monica and surrounding attractions.
• Merchandise pop-ups showcasing our merchandise around the city. • Follow up on Route 66 stamp booklet campaign for centennial.

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Packet Pg. 180 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 14 5 STRATEGIC LANES OF WORK
SMTT’s five strategic areas of focus are the foundation of our work plan. Here we outline the programs, initiatives and staff efforts that help propel our strategies to success for the destination:

LANE 1: DRIVE BALANCED DEMAND FOR THE DESTINATION
Objectives:
• Increase year over year (YOY) transient occupancy tax (TOT) and average daily rate (ADR). Increase domestic travel levels from target markets. • Increase international visitation from key target markets. • Grow average length of stay from 1.46 to 1.73 nights. Ultimate target: achieve an average length of stay of 2.0 nights in Santa Monica.
• Increase overnight visitation to support key regional and local events. • Position Santa Monica as the premier overnight base for regional events. • Tap into high-net-worth individuals without overstepping the destination’s core clientele.
• Boost site inspections to hotels and venues by 20%.
• Further develop luxury destination offerings and experiences.

It is important to emphasize that several major sporting events are taking place in Los Angeles including the:
• 2026 NBA All Star.
• 2026 FIFA World Cup.
• 2026 U.S. Women's Open.
• 2027 Super Bowl LXI.
• 2028 Olympic & Paralympic Games.

As such, it is crucial for SMTT to utilize and work on these relationships for future bookings and partnership programs.

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

Destination Performance
• Occupancy.
• Average Daily Rate (ADR).
• Revenue per available room.
• Visitor makeup (% domestic vs. international).
• Transient Occupancy Tax (TOT) generated.

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Packet Pg. 181 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 15 • Retail and sales taxes generated.
• Tourism Marketing District (TMD) collections.
• Employment sustained in our industry.

SMTT Programs Performance
• Room nights booked during campaigns.
• Website traffic and links out to partner websites.
• Increase in social media activity.
• Incentive and meetings business booked.
• Travel trade bookings.
• Overall economic growth year-over-year.

TRAVEL TRADE – DOMESTIC & INTERNATIONAL MARKETS
As mentioned, in the executive summary, many challenges remain and while international inbound travel to the U.S. and California continues to increase, there are several hurdles impacting a full recovery. First, the current geopolitical climate is rife with threats. An example of this is Canada’s recent call to boycott travel to the United States. Additionally, travelers from key inbound markets who are applying for visitor visas for the first time are experiencing wait times that are exceedingly high. Third, with the strength of the U.S. dollar, price continues to be a top pain point for international travelers. Finally, international airlift into LAX still is not at sufficient levels and much growth is needed.

A new report by the Commission on Seamless and Secure Travel warns that the U.S. air travel system is at risk of being overwhelmed by a surge in demand due to major global events like the 2026 FIFA World Cup, 2028 Olympic Games, and the U.S. 250th anniversary. The report outlines urgent recommendations for modernizing air traffic control technology, addressing air traffic controller shortages, and enhancing security measures to ensure smooth and efficient travel. These advancements aim to improve security, reduce delays, and help position the U.S. as a global leader in travel by making the travel system more efficient in the face of growing demand.

The U.S. Travel Association is calling for immediate action from the White House and Congress to implement the Commission's recommendations. Key steps include establishing a task force to lead efforts for major upcoming events, improving visa processing and security measures, and investing in advanced airport screening technology. The report emphasizes the importance of streamlining customs procedures and utilizing biometrics to reduce wait times for travelers. With these improvements, the U.S. could unlock a significant economic opportunity and avoid the frustrations of overcrowded airports, but it requires swift and coordinated action from the government.

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Packet Pg. 182 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 16 Listed below is our proposed plan and framework to keep Santa Monica top-of-mind among travel agents, tour operators and meeting planners during this crucial time. We will increase international programs in countries that have historically been top source markets for our destination, and which are expected to have the fastest travel recovery.

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

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

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

Exploratory Markets:
• Mexico.
• India.
• Brazil.
• GCC: Bahrain, Kuwait, Qatar, Saudi Arabia, UAE.
• Japan.
• South Korea.
• China.

A continued investment in the luxury segment will remain a focal point for our domestic and international strategies. In 2025, SMTT renewed marketing partnerships with three of the leading luxury travel networks: Virtuoso, Serandipians and Signature Travel Network. These partnerships provide exclusive access to luxury advisors and clients in North America and abroad and have successfully provided us with unique opportunities for joint marketing, webinars, tradeshows and in-person events.

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

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Packet Pg. 183 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 17 Along those lines, we will be looking to our neighbor to the south, Mexico, and exploring opportunities to potentially grow visitation from this market and, budget permitting, the others listed above.

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

United States
Travel Network/Consortia Partnerships
• Virtuoso.
• Signature.

Trade Shows/Events
• IPW Fort Lauderdale.
• ILTM North America.
• ILTM Cannes.
• Brand USA Travel Week.
• Go West Summit.
• Virtuoso Travel Week.
• Signature Travel Conference.
• Visit California Connections/Luxury Forum.
2025-2026 Programs/Additions
• Training Programs:
o Virtuoso Training Webinar.
o Visit California STAR to launch updated content.
• Develop Route 66 programs to increase hotel bookings during the centennial. • Identify final partners and launch for Route 66 programs to increase hotel bookings.
• Continue awareness and marketing on Route 66 centennial experiences and packages.

United Kingdom/Ireland
Trade Shows/Events
• Santa Monica Sales Mission.
• Visit California Pan Euro Media Roadshow.

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Packet Pg. 184 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 18 • Visit California Connections/Luxury Forum.
• Virtuoso Forum UK/Ireland.
• Virtuoso On Tour UK/Ireland.
• Brand USA Travel Week Europe.
• Visit USA Summer Affair.
• Aer Lingus Roadshow.
• Unite USA Event.

Campaigns
• Hotelbeds x Visit California.
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego). • Tour Operator, Brand USA and Visit California Co-Ops. • Hablo & Hablo Talks.
• Expedia & Hotels.com digital B2C campaign.
• Bonotel Marketing Campaign.
• Hotelbeds six-month marketing campaign.
2025-2026 Programs/Additions
• Explore activation and Sister City partnerships in Brighton and London.

Canada
• Travel Network/Consortia Partnerships
• Virtuoso Forum Canada.
• Virtuoso On Tour Canada.
• Travel Leaders Roadshow.
• Ensemble Travel Group.

Trade Shows/Events
• Santa Monica Sales & Media Mission.
• Visit California Reverse Sales & Media Mission.
• Visit California Connections/Luxury Forum.
• Ensemble Skyline.
• Discovery America AGM.
• Trevello Tradeshow and Trainings.

Campaigns
• Air Canada Vacations.
• Expedia Canada.

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Packet Pg. 185 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 19 • Trevello Travel Group.
• Tour Operator, Brand USA, Virtuoso and Visit California Co-Ops. • The Travel Agent Next Door (TTAND) B2B.
• SpoiledAgent.com.
2025-2026 Programs/Additions
• Porter Airlines Luxury Travel Advisor FAM.
• Seasonal Toronto activation showcasing Santa Monica.

France
Trade Shows/Events
• IFTM Top Resa.
• Visit USA Workshops.
• Brand USA Travel Week Europe.
• Visit California Roadshow.
• Visit California Connections/Luxury Forum.
• ILTM Cannes.
• Visit California Pan Euro Media Roadshow
Campaigns
• Tour Operator Co-Ops.
• Havas Voyages Marketing Campaign.
• Hotelbeds 6-month marketing campaign.
2025-2026 Programs/Additions
• Execute activation in market, budget permitting.

Germany
Trade Shows/Events
• Visit USA Germany Roadshow.
• Visit USA Consumer Shows.
• Brand USA Travel Week Europe.

Campaigns
• CANUSA Touristik.

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Packet Pg. 186 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 20 • CRD (with Greater Palm Springs & San Diego).
• FTI.
• America Unlimited/Feinreisen.
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego). • Opodo and Visit California Co-Op.
• HotelPlan (with Greater Palm Springs & San Diego).
• The German Beach Volleyball Association.
• Hotelbeds 6-month marketing campaign.
• Visit California Pan Euro Media Roadshow
Australia/New Zealand
Trade Shows/Events
• Visit California Sales & Media Missions.
• Visit USA Expos and Brand USA B2B Days.
• Visit California Connections/Luxury Forum.
• ILTM Asia Pacific.
• Brand USA Travel Agent Expo.
• Virtuoso Connects, Travel Week and On Tour.

Campaigns
• Flight Centre x Visit California.
• SXSW Sydney Brand USA’s “USA House” activation.
• Helloworld.
• Luxury Escapes.
• MTA Travel.
• Christmas Road Sales Mission.
• Tour Operator, Brand USA and Visit California Co-Ops. • Los Angeles Tourism & Convention Board Roadshow.
• Quantas Best of North America Training Day.
2025-2026 Programs/Additions
• Santa Monica Sales & Media Mission.
• Training Programs:
o Virtuoso Web15
o Visit California STAR Module update annually

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Packet Pg. 187 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 21 Global
Trade Shows/Events
• ILTM Cannes.
• ILTM APAC.
• ILTM Brazil.
• ILTM North America.
• Visit California Connections/Luxury Forum.
• Virtuoso Travel Week.
• Virtuoso On Tour.
• IPW Fort Lauderdale.
• Go West.
• Brand USA Travel Week Europe.
• Brand USA Marketplace.
• Private Luxury Events Program.
• TFest Luxury Trade Show.

Campaigns
• Bonotel.
• Hotelbeds.
• Visit California Co-Ops.
• Brand USA Co-Ops.
• Airline Co-Ops.
2025-2026 Programs/Additions
• Leveraging Visit California and the Los Angeles Tourism & Convention Board’s efforts, SMTT may join exploratory activities in potential growth markets for Santa Monica including, but not limited to, Mexico, Brazil, India, Japan, South Korea and the Nordics. Activities may include sales missions, familiarization trips (FAMs) and industry events, budget permitting.

SANTA MONICA MEET
SMTT’s group sales team (Santa Monica Meet) has continued initiatives to represent our destination as a top choice for meetings and events both domestically and internationally.

Looking ahead, Santa Monica Meet will continue to do this by fortifying and building strategic partnerships with meetings-focused industry partners, as well as attending events to showcase our beach city to meeting and event professionals. Larger events like Genesis Invitational, Frieze LA and other major events in Santa Monica continue to be the focus for SMTT and the hotel community. As a result of the LA Wildfires, Genesis

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Packet Pg. 188 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 22 Invitational had to move their 2025 tournament from Pacific Palisades to Torrey Pines, leading to a major loss of contracted room revenue for many Santa Monica hotels.

Additionally, the loss of the American Film Market (AFM) after 32 years will take time to replace and although an attempt was made to win AFM back in 2025, ultimately Santa Monica was not selected for the upcoming market. The return of Cirque du Soleil, other cultural experiences, new and upgraded product and new venues will help to keep Santa Monica top of mind.

The future continues to look brighter with the news of several major sporting events coming to the greater Los Angeles region in the next five years. As stated above, some of these include the 2025 Concacaf Nations League Finals, 2025 FIFA Club World Cup, 2026 FIFA World Cup, 2026 U.S. Women's Open Championship, 2026 NBA All-Star, Super Bowl LXI 2027 and 2028 Summer Olympic & Paralympic Games.

Santa Monica hotels are looking to retain legacy groups and secure new group business in the corporate, entertainment, incentive, sports and association segments. From the growing list of major sports events, to the enhancements currently being worked on at Los Angeles International Airport (LAX) and welcoming back cultural events like Frieze Los Angeles and Cirque du Soleil to Santa Monica, Santa Monica will also be a top choice for meeting planners and groups looking to stay in Los Angeles for ultimate VIP experiences and events.

We continue to see an increase in request for proposals (RFP) volume and hotels continue to receive short-term leads as soon as in the month, for the month, as well as RFPs for as far out as 2028 and beyond. For the domestic and international MICE market, factors such as tariffs, politics, inflation and negative media messaging (LA wildfires), many corporations are taking additional measures to ensure meetings and events are being considered in suitable destinations.

Key factors that will contribute to the success of group sales efforts:
• Increasing hotel partner participation at trade shows and sales missions. • Actively partnering with Visit California’s Professional Meetings & Events (PME) Taskforce (which SMTT serves on) and programming.
• Retaining SMTT’s Client Advisory Board and increasing the number of members YOY.
• Updating client network on new and updated hotel portfolio including hotel rebrands, renovations and unique event space updates.
• Site inspection assistance for qualified meeting planners. • New video and photography assets (virtual tours, updated meeting space images, hotel videos, etc.).
• Showcasing new experiences like LA Tech Week’s Innovation Hub, Cirque du Soleil, Frieze LA and more for unique incentive group experiences.

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Packet Pg. 189 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 23 • Focusing on groups that are a fit for Santa Monica hotels (i.e. 25-125 rooms on peak).

As outlined below, Santa Monica Meet will exhibit at key trade shows and events to engage meeting professionals:

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

Sales Missions in Key Target Markets
• Phoenix Metro.
• Northeast (New York & Boston).
• Salt Lake City.
• Northern California.

Trade Shows and Roadshows
• IMEX America.
• Prestige Global.
• Visit California Professional Meetings & Events Roadshows. • Retreat Resources Roadshows.
• C&IT Forum (International).
• HelmsBriscoe Annual Business Conference.
• IBTM America.
2025-2026 Programs/Additions
• Phoenix Sales Mission.
• East Coast Sales Mission.
• IMEX Frankfurt.
• Northstar Sports Leadership Forum.

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Packet Pg. 190 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 24 2026-2027 Programs/Additions
• IBTM World.
• The Meetings Show.
• AMEX Interaction – EMEA Market.

Additionally, Santa Monica Meet will renew its partnership with Cvent as the industry leader in lead generation. SMTT will also seek new ways to secure business via new or alternative channels, such as Facebook groups like Fete and Entertainment Travel Community, MICE FAMs, and new industry events like PlannerHero roadshows and IMEX Frankfurt. However, the foundation of our group sales efforts will continue to be rooted in representing our beach city as a top destination for memorable and impactful events and securing new and repeat business for the future.

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Packet Pg. 191 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 25 LANE 2: ENHANCE THE BRAND AND STEWARD THE DESTINATION EXPERIENCE Objectives:
• Maintain positive social sentiment across facets: accommodations, dining, retail, wellness, cleanliness and safety, returning to pre-pandemic levels. • Continuously optimize branding and assets to ensure cohesive collateral. • Expand luxury brand photography and collateral for luxury markets and MICE 25/26 & 27/28.
• Increase web performance: Optimize SEO, increase monthly visits, page visits per visit, average time on site year over year by 5-8%.
• Increase partner referrals year over year by 5 - 10%. • Successfully launch sales and production of annual visitor guide and map in house. • Bolster Santa Monica’s culinary identity to increase culinary tourism. • Foster relationships with community marketing experts, to ensure a robust and diverse marketing perspective.
• Explore and expand industry recognition opportunities. • Increase partner referrals year over year by 5-10%.
• Increase positive press coverage of the destination year over year by 10%; India market by 20% (Y1); Mexico market by 20% (Y2); Middle East market 20% (Y3) and (Y4); Brazil market by 20% (Y5).
• Increase Social Media Followers year over year by 1 – 5% dependent on platform, while also evaluating emerging channels
• Instagram: 60k (Y1), 64K (Y2), 68K (Y3) 73K (Y4), 78K (Y5) • Facebook: 79K (Y1), 80K (Y2), 81K (Y3), 82K (Y4), 83K (Y5) • X (Twitter): 42K (Y1), 43.5K (Y2), 45.5K (Y3), 47.5K (Y4), 50.5K (Y5) • Increase retail merchandise sales.
• Create a campaign to commemorate the Route 66 centennial – (Y1 & Y2). • Develop a campaign to celebrate and support Santa Monica’s 150th Anniversary (Y1).
• Steward the Experience Management Plan (EMP), to ensure goals are met.

Key Initiatives/Strategies:
• Plan both visitor and local focused content and marketing initiatives. • Elevate brand collateral for luxury markets and MICE (Y1). • Expand luxury brand photography and offerings (Y2).
• Submit SMTT to brand design, travel, hospitality, and group/MICE industry publication awards.
• Plan new opportunities for partners/ local businesses to work with us and be featured on our website such as the “Like a Local” section.

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Packet Pg. 192 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 26 • Make seasonal landing pages and Trip Planner more robust with partner suggestions/specials.
• Increase dynamic itineraries on website to drive traffic, increase SEO, highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate with partners, local businesses and influencers on social media, share more dynamic videos. • Plan and create Route 66 landing page, events, partner involvement opportunities like commemorative decals in car dealership windows and passport incentive for visitors, create retail commemorating Route 66, and activate social media engagements.
• Seek out opportunity for a new Taste of Santa Monica event with local chefs and publish a Santa Monica cookbook.
• Support and promote the Santa Monica 150th Anniversary celebrations. • Collaborate with Visit California on culinary offerings, through participation in the Visit California Culinary Committee.
• Launch marketing committee (Y1).
• Expand retail merchandise line through custom merchandise creation and brand partnerships.
• Ensure all Santa Monica businesses are utilizing partner portal services and are scheduled for Threshold 360 services.
• Increase web traffic to seasonal landing pages and partner specials year over year (Y1 - Y5).
• Support current EMP committees and add additional committees, in line with next goals (Y2-5).

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

For the first few years of the plan, we will focus on implementing programs for four of our nine key strategies (in bold below). A committee has been created for each of these strategies consisting of a cross section of key members of the community. Each committee has been appointed an SMTT facilitator to ensure open communications between all stakeholders in the EMP process:
• Ensure Santa Monica continues to be a safe and clean place. • Support livability for Santa Monica residents.
• Highlight and leverage cultural and historic experiences. • Promote a diversity of retail, dining and evening experiences.

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Packet Pg. 193 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 27 • Foster memorable accommodation experiences that enhance the value proposition.
• Facilitate the viability of small and unique businesses. • Sustainably invest in making Santa Monica the greenest beach city in the U.S. • Support and enhance Santa Monica’s most important assets. • Enhance mobility for Santa Monica visitors, residents and workforce.

A governance committee has also been created to ensure that progress is made on each strategy and to prioritize short- and long-term goals. While SMTT is spearheading this process, we do not independently control or own the Plan, nor all the initiatives that will be pursued. A consultant has been retained to facilitate the first years of the implementation phase and guide the process city-wide.

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

TOURISM IMPROVEMENT DISTRICT (TID)
In 2022 SMTT created the TID and works with participating hotels to create a voluntary tourism services district to support supplemental clean and safe services along Ocean Front Walk and the adjoining public right of way. This program has proven successful to the environment and SMTT has an agreement with Chrysalis to staff and execute this program, with pilot program funding from SMTT and continuing funding from participating hotels through a voluntary assessment.

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

As we transitioned into 2024, SMTT proceeded into the second half of the rebrand’s phased approach, concentrating on finalizing the brand's visual identity, refining the brand campaign and overseeing video and photo production.

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Packet Pg. 194 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 28 Moving into a new year, SMTT has signed a new AOR, 62ABOVE. The savvy team has already kicked things off by producing a drone video highlighting the message that Santa Monica is open for business following the Los Angeles wildfires.

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

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

The campaigns are focused on and will deliver on the following key performance indicators (KPIs):
• Increasing direct bookings to hotels and increase TOT revenues. • Increasing weekday hotel stays and business travel.
• Increasing length of stay and overall spend of visitors. • Increasing referrals to Santa Monica businesses via the Partner Portal. • Driving traffic to santamonica.com campaign landing page. • Increasing bookings through online travel agencies.
• Increasing social media presence and driving traffic to santamonica.com.

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

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

SMTT’s social media strategy for the coming year will be to increase engagement and followers outside of the greater Los Angeles area, with a focus on top domestic feeder and international markets. SMTT’s in-house Social Media Manager has and will continue to spearhead fostering organic community engagement and crafting captivating content spotlighting Santa Monica's premier attractions, spanning outdoor dining, arts, culture,

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Packet Pg. 195 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 29 recreational activities and more. We also plan to expand our social media presence by exploring new and underutilized identified platforms and partnering with key travel industry influencers who align with the values of Santa Monica to promote the destination to their followers.

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

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

Community Newsletter
• Audience: Local Businesses, Hotel General Managers (GMs) and Sales/ Marketing staff, guest-serving employees, restaurants, retail, BIDs, SMTT Board, City Partners, SMTT Partner Agencies.
• Cadence: Monthly.
• Content: Santa Monica in the news, new businesses, SMTT updates and programs, upcoming events.

Consumer Newsletter
• Audience: Consumers, Santa Monica Residents, Santa Monica Visitors, those who opt in at santamonica.com.
• Cadence: Monthly.
• Content: News about hotels, cultural happenings, shopping, food & drink, things to do and special offers.

Sea the Good Newsletter – sent on behalf of Santa MoniCARES • Audience: Community Newsletter distribution list, Santa Monica Residents, other non-profits in the community, Santa Monica Visitors, those who opt in at SantaMoniCARES.org.
• Cadence: Quarterly.
• Content: newsletter highlighting inspiring and admirable news stories.

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Packet Pg. 196 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 30 Travel and Trade Newsletter
• Audience: Travel Agents, Operators and Meeting Planners. • Cadence: Quarterly.
• Content: Hotel updates, new business openings, upcoming events, what’s new.

International Newsletters
• Audience: Markets with SMTT representation receive a newsletter catering to travel, trade and consumers.
• Current markets: Canada, United Kingdom/Ireland, France, Germany and Australia/New Zealand.
• Cadence: Monthly/Quarterly.
• Content: Hotel updates, new businesses openings, upcoming events, what’s new and things to do in Santa Monica.

SMTT will continue to work with key targeted publications and freelance journalists to develop timely articles and blog posts to ensure content on santamonica.com is attracting organic traffic; addressing visitor needs; and highlighting how the destination is on the cutting edge of travel, culinary, health and wellness, cultural experiences, shopping and sustainability trends.

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

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

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

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Packet Pg. 197 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 31 to spotlight local events and provides advertising avenues for businesses seeking exposure to an engaged audience interested in building itineraries and inspiration for visiting Santa Monica, thereby generating local revenues.

The goals of santamonica.com remain consistent:

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

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

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

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

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Packet Pg. 198 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 32 We will continue to share the innovative efforts our community is taking to be a leader in sustainability. Media and consumer interest in this topic has grown significantly and we’re fortunate that the City of Santa Monica has prioritized sustainability since the development of the Sustainable City Plan in 1994, and additional work on this front in the community continues to be noteworthy.

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

SMTT is also focusing storytelling opportunities on our community as a highly desirable destination for culinary enthusiasts, as we showcase our four weekly farmers markets and diverse dining options, including 18 Michelin-recommended restaurants. SMTT will continue to identify opportunities for themed press visits, offering itineraries that showcase the breadth of our bounty. These will focus on the community’s culinary expertise, as well as the new experiential product in market, and will emphasize more attendance at local events. This will help showcase how much is happening in our community that residents and visitors can enjoy. Health and wellness is an additional area of outreach to travel journalists, who continue to show interest in the abundance of opportunities including beach yoga, bike tours, beach volleyball, pickleball, mindfulness classes, spa experiences and healthy eating. The Route 66 Centennial in 2026 also presents an excellent opportunity for storytelling.

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

SMTT will leverage opportunities to connect with journalists on media missions and international activations with other partners in the following markets:
• Australia/New Zealand
• Canada
• France
• Germany
• India
• Brazil
• Japan
• Mexico
• United Kingdom/Ireland

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Packet Pg. 199 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 33 We will continue working with a media monitoring and distribution platform to increase domestic and global reach to journalists, bloggers and influencers and measure the effectiveness of our public relations output.

SMTT will also support and work with the city in getting the word out about city service improvements, hotels and businesses that are undergoing renovations/ remodeling and updates to showcase the incredible economic impact these projects will offer Santa Monica.

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

Our team has also focused on relationships with the City of Santa Monica, Santa Monica Police Department, Santa Monica Fire’s Communications Department Public Information Officers and the communications teams in California destination marketing organizations.

This is to ensure our relationships continue to grow and emergency contact information is shared, so we can swiftly respond to crises and support each other’s efforts. We continue to share information in conjunction with the City of Santa Monica to provide official messages to our business community, visitors and Santa Monica residents on santamonica.com, social media channels, community newsletters and news updates.

This was most recently evidenced by our work during the Los Angeles wildfires.

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

These videos will provide us with exciting content to house on our website and share across social media and in newsletters, while providing content to share with news media to attract coverage.

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Packet Pg. 200 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 34 • Assess progress on the Experience Management Plan (EMP) and potentially expand to strategies beyond the top four.
• Relaunch the website with brand refresh creative.
• Create dedicated landing pages with language translation options for each international market where SMTT has representation.
• Begin planning, securing and spreading awareness of brand partnerships for upcoming major events including:
o 2024/2025 Cirque Du Soleil
o 2026 NBA All-Star Game
o 2026 FIFA World Cup
o 2026 Route 66 Centennial
o Super Bowl LXI 2027
o LA28 Olympics
• Expand media efforts into identified key international markets. • Provide extensive media training for greater Communications team and SMTT leadership.
2025-2026 Programs/Additions
• Continue to elevate brand collateral for luxury markets and MICE. • Submit Santa Monica Travel & Tourism to brand design, travel, hospitality and group/ MICE industry publication awards for recognition. • Plan new opportunities for partners and local businesses to work with us and be featured on our website such as a more robust “Like a Local” section marketed toward residents.
• Work with our new Agency of Record (AOR) to make seasonal landing pages and our Trip Planner more robust with partner suggestions and specials. • Increase dynamic itineraries on our website to drive traffic, increase SEO and highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate on social media with partners, local businesses and influencers while sharing more dynamic videos and evolving with social media trends.
• Develop engaging campaigns for residents to be a part of to promote our value. • Make our Route 66 landing page more robust with events and specials, while seeking out further partner involvement opportunities.
• Seek out opportunities for a new “Taste of Santa Monica” culinary event with local chefs and publish a Santa Monica cookbook on a regular basis to expand upon Santa Monica as a culinary destination.
• Collaborate with Visit California on culinary offerings through participation in the Visit California Culinary Committee.

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Packet Pg. 201 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 35 • Launch marketing committee to seek out business community involvement in marketing opportunities and needs.
• Expand retail merchandise line through custom merchandise creation and brand partnerships.
• Ensure all Santa Monica businesses are utilizing partner portal services and are scheduled for Threshold 360 services.
2026-2027 Programs/Additions
• Expand upon luxury brand photography and offerings to reflect Santa Monica’s new business growth.
• Pursue an opportunity to create a Santa Monica Swim Week appealing to leisure and sport-enthusiast travelers.
• Increase web traffic to seasonal landing pages and partner specials year over year. • Support current EMP committees and add additional committees, in line with goals.

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Packet Pg. 202 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 36 LANE 3: CHAMPION THE VALUE OF TOURISM
Objectives:
• Achieve positive tourism economic outcomes as indicated in the Tourism Economic Impact Report.
• Establish baseline for and ensure year over year increase in positive resident sentiment.
• Increase SMTT services and programs utilized by Santa Monica residents. • Orient new city council and city leadership to the work and goals of SMTT. • Ensure that regional events have positive impacts for Santa Monica. • Uphold influential engagement level with boards and organizations with key initiatives aimed at advancing tourism and the benefits it provides to our community well-being.
• Maintain active board and committee engagement in effective industry organizations.
• Achieve a minimum of $30K (Y1), $50K (Y2) and $60K (Y3) in charitable/donated/in-kind value through the Santa MoniCARES Foundation.

Maintain min. $60K (Y4 & Y5).
• Visitor Center locations re-design to better serve visitors and residents. • Educate and support hotels with city required housekeeping trainings. • Expand on opportunities to incentivize/reach residents to use our services Key Initiatives/Strategies:
• Conduct quarterly intercept surveys to measure economic impacts of tourism. • Establish residential biannual surveys on tourism in Santa Monica. • Continue affiliation with local Business Improvement District leadership, city economic manager, and cultivate new opportunities to enhance tourism messaging and engagement.
• Retain position on SMBRC SM Bay Restoration Commission, voting board member, tourism representative.
• Maintain engagement and board service of SMTT staff on key industry specific boards, U.S. Travel, California Travel Association, Brand USA and others to support federal, state and local tourism education on the benefits of tourism. • Share and educate on Global Entry Program importance and reducing visa wait times.
• Hold fundraising partnerships and events for Santa MoniCares, Volleyween, Prom etc. that encourage participation from the industry and community who wish to give back.
• Emphasize local emergency occurrences with Santa MoniCares to increase charitable donations and in-kind (example: LA Wildfire Relief).

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Packet Pg. 203 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 37 • Identify new opportunities for SMTT board member engagement and development.
• Redesign visitor center locations and mobile vehicle to accommodate growing needs of locations, emergency and visitor serving needs and retail growth. • Work with EMP committee members to identify next priorities for the 2-3 year and 5-8 year time periods.
• Reestablish ongoing introductions and briefing for city council and new city leaders.
• Create a program to compliment the I am Santa Monica Ambassador program with a campaign annually to show “My Santa Monica” to drive residents to programs, activations and santamonica.com to support the brand and experience in our community.
• Assist as needed with required citywide Housekeeper training with community partners.

BOARD ENGAGEMENT
The SMTT Board of Directors are active participants in the implementation and execution of the Santa Monica Experience Management Plan (EMP). Board members are represented in the Governance Committee and each of the four strategic initiative committees that have been meeting since 2022. The SMTT Board, along with various city and community stakeholders, residents and local businesses will work as partners over the next ten years toward a shared vision and common goals. This will result in enhanced quality of life for all Santa Monica residents, a remarkable visitor experience that stands the test of time and a stronger, more resilient local economy.

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

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

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

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Packet Pg. 204 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 38 COMMUNITY & CIVIC RELATIONS
SMTT will continue to be a vocal champion on behalf of the tourism industry when required, while demonstrating the importance and positive economic impacts of tourism to the community utilizing the following channels as examples:
• Annual Tourism Summit.
• National Travel and Tourism Week.
• Community event presence and collateral distribution. • Buy Local’s Most Loved contest.
• Downtown Santa Monica holiday events/ICE Santa Monica/Roll @ Santa Monica. • Chamber of Commerce events.
• Main Street open street and holiday events.
• Martin Luther King, Jr. event.
• Volley-Ween.
• National Night Out.
• 4th of July Parade.
• Police Activities League events and drives.
• Santa Monica Pier 360.
• Santa Monica 150th Anniversary celebrations.
• PRIDE
• State of the City.
• Sustainable Quality Awards.
• I Wish I Had an Extra Bedroom Program, annually offering hotel discounts to residents over the holiday season.
• Pitching editors at local publications, including Santa Monica Daily Press and more.
• Speaking opportunities at City Council, Kiwanis Club, Rotary Club, Chamber of Commerce and Santa Monica High School Career Day.
• Reinstating the “Tourism Talks” column in Santa Monica Daily Press. • Supporting local events and organizations.

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

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Packet Pg. 205 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 39 network of tourism-serving businesses such as Volley-Ween and the That ‘70s Prom.

Additionally, Santa MoniCARES will focus on relief and recovery efforts related to any natural disasters or extreme events such as wildfires, earthquakes or other occurrences negatively impacting the community of Santa Monica and Los Angeles.

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

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

TOURISM INDUSTRY LEADERSHIP
SMTT will continue to be a proactive member of the tourism industry and share best practices by leveraging memberships with the following industry associations and taking opportunities to serve on leadership committees, boards of directors and attending or speaking at their annual conferences:
• Brand USA.
• California Travel Association (CalTravel).
• Destinations International.
• eTourism Summit.
• Meeting Professionals International (MPI).
• Certified Meetings Professional (CMP) status.
• Society for Incentive Travel Excellence (SITE).
• U.S. Travel Association’s Board of Directors (USTA).
• Southern California Association Governments - GLUE Council - Tourism Representative.
• California Comeback Taskforce.
• Independent Hospitality Coalition (IHC).
• Santa Monica Bay Restoration Commission (SMBRC) – Tourism Representative • Santa Monica Pier Corporation Board of Directors

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Packet Pg. 206 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 40 • Visit California (VCA) leadership and committee roles, including regional strategic tourism planning member with City Manager David White.
• SMTT will further leverage the strength of Visit California by aligning staff to Visit California-led committees relevant to their positions:
o DMO CEO Council- President/CEO
o International - Director of Global Business Development o Marketing – Vice President of Marketing
o Public Relations/Crisis – Vice President of Communications

I AM SANTA MONICA
“I Am Santa Monica" is an interactive business workshop designed to educate Santa Monica residents, businesses and employees about Santa Monica’s offerings. The program is designed specifically to inform and educate tourism-serving employees of businesses, residents and those interested in a potential employment in the tourism industry in Santa Monica about the destination, with a focus on customer service and hospitality training. This free, two-hour, interactive learning workshop includes a bus tour of Santa Monica and ends with a classroom session reviewing detailed take-home materials. Trained individuals become “Official Santa Monica Information Ambassadors” and are equipped with a database of facts, figures and “did you know” anecdotes about Santa Monica for use in customer interactions. Each “Official Santa Monica Information Ambassador” receives a certificate and take-home materials including a QR code to information and resources. There is also a digital version to offer the valuable classroom resources to students who are unable to participate at in-person sessions. The class can now be curated to a business’ individual needs and private, custom classes are available.

A database is being built to communicate with attendees on future happenings in the destination.
“I AM YOUR DESTINATION” PROGRAM
“I Am Your Destination” is the framework of the “I Am Santa Monica” program that we solicit to other cities who want to offer their own class, designed to be affordable and specifically for any tourism destination. The program sells for $15,000 and SMTT is ready to proactively target domestic destinations for potential purchase and utilizing attendance at industry trade shows and forums to attract destination marketing organizations to the program.

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Packet Pg. 207 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 41 LANE 4: STRENGTHEN STRATEGIC PARTNERSHIPS
Objectives:
• Generate a minimum of $265K (2025/2026) and $300K (2026/2027) in-kind or fair share value and grow annually.
• Secure a minimum of $175K in outside sponsorship dollars to offset program costs, (25/26) and growth of 8% annually.
• Increase year over year co-op opportunities including but not limited to FAM tours, advertising, social and media relations with Visit California and Brand USA. • Increase media reach with AOR and in kind, iHeart Radio, KCRW+. • Work with city community partnership manager to build upon opportunities with regional and local events i.e. Frieze Los Angeles, Independent Spirit Awards, Feb. (annual), LA Tech Week October 25, Route 66 Centennial 26, U.S. Women’s Open Championship June 26, FIFA World Cup June/July 26, Super Bowl LXI June 27, Summer Olympic Games 28.

Key Initiatives/Strategies:
• Further leverage SMTT staff members’ board or liaison role on BIDS, boards and commissions.
• Increase sponsorship by offering Visitor Information Centers, mobile vehicle for takeovers and activations.
• Outreach and increase local business participation in regional events via co-ops. • Expand partner opportunities: FAM tours, tradeshows and media. • Identify retail/brand partnerships (2025-2026).
• Complete TMD Renewal (2025-2026).
• EMP year over year increase in engagement and participation of community members.
• Increase participation in I Am Santa Monica by 10% (2025-2026) and 5% annually thereafter.
• Rebrand and increase sales of the I Am Your Destination program (2026-2027).

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Packet Pg. 208 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 42 STRATEGIC PARTNERSHIPS
Providing cost-effective and valuable programs for our partners is of critical importance.

Our tourism business partners look to SMTT to best represent the brand of Santa Monica and that’s why in 2023, Santa Monica Travel & Tourism generated over $300,000 of inkind support and $10,000 in fair share participation fees from tourism-serving businesses to further support SMTT programs. These valuable contributions do not come automatically. They are derived from our team members’ ongoing dialogue and education with our tourism business partners and through demonstrating a high standard of excellence, engagement and ROI with our programs.

To ensure our partners are aware of all the ways they can work with SMTT, our organization will continue to utilize the following channels:
• Quarterly General Managers meetings.
• Quarterly Marketing Committee and Director of Sales meetings. • TMD Committee meetings.
• Roundtable trainings and discussions.
• Partner Portal.
• santamonica.com.
• BID Board Meetings.
• Hospitality networking events showcasing new venues and opportunities to work with SMTT.
• New business intro program.
• Monthly community newsletter.
• Annual Tourism Summit.

SMTT will continue to solicit sponsorships and in-kind for its Annual Tourism Summit and other signature events to offset program costs.
2023-2024 Programs/Additions
• Generate a minimum of $25,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit and Volley-Ween. • Re-establish the marketing committee with city partners, stakeholders and local businesses.
2024-2025 Programs/Additions
• Generate a minimum of $35,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit, Volley-Ween, and work toward a large fundraising event.

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Packet Pg. 209 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 43 2025-2026 Programs/Additions
• Generate a minimum of $265K (2025-2026) in-kind and/or fair share value and grow annually.
2026-2027 Programs/Additions
• Generate a minimum of $300K in-kind and/or fair share value and grow annually. • Secure a minimum of $175K in outside sponsorship dollars to offset program costs (2025-2026) and growth of 8% annually.

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Packet Pg. 210 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 44 LANE 5: ENSURE OPERATIONAL EXCELLENCE
Objectives:
• Strengthen audit compliance. (annual)
• Launch customized real time SMTT dashboard. (25/26)
• Complete TMD renewal process. (26/27)
• Begin process for TID as a permanent voluntary program. (25) • Improve SMTT DEI initiatives. (ongoing)
• Increase SMTT staff participation in community events that align with our mission, vision and values. (annual)
• Conduct an annual board and leadership summit. (annual) • Destination Marketing Accreditation Program (DMAP) renewal. (25/26) • Lower employee retention rate to 6%.
• Update crisis plan to reflect climate change threats. (25/26) • Expanding safety training & implementation. (annual)
• Maximize organizational efficiency methods such as project management software and zoom phone. (25/26) & (annual)
• Maintain the shuttle service and explore alternative options for future.

Key Initiatives/Strategies:
• Improved internal audit controls, clear SOPs, reports, in-house training for accounting staff and audit trails. Hands on budget management for all departments by Director of Finance. Improved accounting training procedures. Regular spending analysis to identify cost savings. Develop quarterly accountability scorecards for individual departments.
• Launch our improved and customized real-time SMTT dashboard (2025), powered by Symphony, Datafy, and internal department reports. This will improve reporting processes to assist in more accurate forecasting.
• Develop in year 1, with completion and implementation aimed at year 3 by engaging a third-party vendor to assess the current TMD performance, a TMD impact study, engage our local stakeholders early in the process, define our proposed TMD structure, petition hotel support, present to city council, adoption and then execution.
• TID begin in year 1 with completion and launch in year 2 by engaging a third-party vendor to assess the current TID performance, a TID impact study, engage our local stakeholders early in the process, define our proposed TID structure, petition for support, present to city council, adoption and then execution. • Improve upon detailed training and development plans for all staff, launch employee recognition plans, strengthen our leaders by training the trainers, improving our DEI initiatives and fostering a positive work life balance.

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Packet Pg. 211 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 45 • By identifying events that support tourism, sustainability, culture and the community such as beach cleanups, small businesses, festivals and well-being events. Launch a community engagement committee run by employees which fosters peer to peer engagement.
• Leading into culture, encourages the team to feel ownership and have a say in our strategic planning process.
• Include training on CPR initiative, Narcan at locations, de-escalation training and 5 leaders to attend Community Emergency Response Team (CERT) training.

Conduct annual drills with staff.
• Promote to staff members our open-door policy, launch Asana platform for team project management solutions, invest in additional team building activities and familiarizing with the destination, allow more autonomy for employees to make their own decisions and feel a sense of ownership.
• Explore with city staff alternative options to DA of hotels paying for shuttle services. • Update our crisis plan to align with climate change and the potential impacts to tourism.

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

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

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

We continue to be a leader in equipment, technology and sustainability. When decommissioned, SMTT laptops, iPads and cell phones are erased to Department of Defense standards, then donated to either the Police Activities League, if the students can utilize; nonprofit Laptop Elf Company, who recycles the equipment for underprivileged youth and teachers; are traded in for a partial refund to support technological/device

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Packet Pg. 212 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 46 updates; or are recycled through one of the City of Santa Monica’s hazardous waste programs.

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

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

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

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

DESTINATION MARKETING ACCREDITATION PROGRAM (DMAP)
Santa Monica Travel & Tourism has long been proud of its participation in the Destination Marketing Accreditation Program (DMAP) through Destinations International. This globally recognized program serves as a visible industry distinction that defines quality and performance standards in destination marketing and management. The process includes submitting documentation of over 110 rigorous standards, including an annual operations plan, HR policies, technology plan, an updated crisis communications plan, a commitment to consumer research, adoption of the DMAP code of ethics and many other standards. SMTT submitted an annual progress report in 2023 and was re-certified as an approved DMAP Destination.

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

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Packet Pg. 213 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Santa Monica Travel Tourism
FISCAL YEAR 2025-2026 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $ 2,994,004.00 91.54% $ - 0.00% $ 2,994,004 29.68% Estimated TMD Revenue - 0.00% 6,813,435 99.97% 6,813,435 67.55% Bank Interest 1,800 0.06% 1,800 0.03% 3,600 0.04%
Other Income 190,000 5.81% - 0.00% 190,000 1.88%
Retail Revenue 85,000 2.60% - 0.00% 85,000 0.84%
Total Revenues $ 3,270,804 100.00% $ 6,815,235 100.00% $ 10,086,039 100.00% Cost of Programs
Travel Industry Sales $ - 0.00% $ 1,243,002 18.24% $ 1,243,002 12.32% Marketing 250,000 7.64% 1,504,608 22.08% $ 1,754,608 17.40% Visitor Services 216,330 6.61% - 0.00% $ 216,330 2.14%
MICE - 0.00% 375,000 5.50% $ 375,000 3.72%
Client Services 130,120 3.98% 25,000 0.37% $ 155,120 1.54% Public Relations 270,000 8.25% 376,898 5.53% $ 646,898 6.41% Total Cost of Programs $ 866,450 26.49% $ 3,524,508 51.72% $ 4,390,958 43.54% General & Administrative $ 799,000 24.43% $ 655,000 9.61% $ 1,454,000 14.42% Salaries & Benefits $ 1,568,354 47.95% $ 2,233,870 32.78% $ 3,802,224 37.70% Contingency Fund $ - 0.00% $ 340,672 5.00% $ 340,672 3.38% Fixed Asset $ 37,000 1.13% $ 61,185 0.90% $ 98,185 0.97% Total Expenses $ 3,270,804 100.00% $ 6,815,235 100.00% $ 10,086,039 100.00% Net Increase (Decrease) $ - 0.00% $ (0) 0.00% $ (0) 0.00% Revised 2025-2026 Forecasted Budget
City Contract TMD Total Budget

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Packet Pg. 214 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Santa Monica Travel Tourism
FISCAL YEAR 2026-2027 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $ 2,994,004 89.89% $ - 0.00% $ 2,994,004 28.63% Estimated TMD Revenue - 0.00% 7,125,967 99.97% 7,125,967 68.13% Bank Interest 1,900 0.06% 1,800 0.03% 3,700 0.04%
Other Income 200,000 6.00% - 0.00% 200,000 1.91%
Retail Revenue 135,000 4.05% - 0.00% 135,000 1.29%
Total Revenues $ 3,330,904 100.00% $ 7,127,767 100.00% $ 10,458,671 100.00% Cost of Programs
Travel Industry Sales $ - 0.00% $ 1,381,413 19.38% $ 1,381,413 13.21% Marketing 245,000 7.36% 1,380,000 19.36% $ 1,625,000 15.54% Visitor Services 209,000 6.27% - 0.00% $ 209,000 2.00%
MICE - 0.00% 355,000 4.98% $ 355,000 3.39%
Client Services 205,213 6.16% 25,000 0.35% $ 230,213 2.20% Public Relations 200,000 6.00% 450,000 6.31% $ 650,000 6.21% Total Cost of Programs $ 859,213 25.80% $ 3,591,413 50.39% $ 4,450,626 42.55% General & Administrative $ 805,098 24.17% $ 725,000 10.17% $ 1,530,098 14.63% Salaries & Benefits $ 1,629,593 48.92% $ 2,393,870 33.59% $ 4,023,463 38.47% Contingency Fund $ - 0.00% $ 356,298 5.00% $ 356,298 3.41% Fixed Asset $ 37,000 1.11% $ 61,185 0.86% $ 98,185 0.94% Total Expenses $ 3,330,904 100.00% $ 7,127,767 100.00% $ 10,458,671 100.00% Net Increase (Decrease) $ (0) 0.00% $ 0 0.00% $ (0) 0.00% ** Revised 2026-2027 Forecasted Budget
City Contract TMD Total Budget

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Packet Pg. 215 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism MEMO
February 25, 2025
To: Misti Kerns, Evan Edwards, SMTT
Re: TMD Reconciliation for 2024 and Tiers for 2025 – Final Review and Findings As per our agreement I have reviewed your provided Excel Spreadsheet I received February 24. Data were current for most properties through December 2024. My review included checking each property’s monthly and year-to-date rooms available, rooms sold, ADR calculation, and proposed 2025 Tier.

My findings are as follows:

Hotels for which I agree with SMTT calculations and proposed Tiers for 2025 (if no note then no change):

1. Bayside

2. CalMar

3. Casa del Mar

4. Cottage

5. Comfort Inn

6. Days Inn

7. Fairmont Miramar

8. Hampton

9. Hilton

10. Huntley Hotel

11. Le Merigot/(J.W. Marriott)

12. Ocean Lodge

13. Ocean Park Inn

14. Ocean View

15. Oceana

16. Palihouse

17. Palm Motel

18. Santa Monica Proper

19. Regent

20. Rest Haven Motel

21. Sea Blue

22. Sea Shore

23. Shangri-La

24. Shore Hotel

25. Shutters

26. The Ambrose

27. The Georgian

28. Viceroy
Hotels that will change tier:

1. Courtyard: drop to Tier 2, at $297.95 ADR thru
Dec.

2. Hotel Carmel: if data provided are correct will
remain in Tier 2 at $226.14 ADR thru Dec.

3. Gateway: at $199.22 ADR, would move T3.

4. Le Meridien/Delfina: at $275.97 ADR thru Dec.
to move to Tier 2.

5. Ocean Park Hotel: missing data; unable to
determine if still exempt; $90.48 ADR thru Dec.

6. Pierside: move to T1; at $317.18 ADR thru Dec.

7. Santa Monica Hotel: stays in T3 at $197.21 ADR
thru Nov.; Dec. data missing but unlikely to
change tier outcome.

8. Sea View: no data provided as you noted

9. Sonder Beacon: at $300.60 ADR thru Dec but
Aug. occupied rooms data missing. Should
remain in Tier 1.

10. Sure Stay BW: stays in Tier 3; at $195.61 ADR
thru Dec.
1041 S. Gramercy Drive l Los Angeles CA 90019
[email protected]
www.lsconsult.com

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Packet Pg. 216 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 2018-2027
September 29, 2016 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

SANTA MONICA TOURISM

MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN

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Packet Pg. 217 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26

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

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Packet Pg. 218 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 2
September 29, 2016
I. OVERVIEW
Developed by Santa Monica Travel & Tourism (SMTT), the Santa Monica Tourism Marketing District (SMTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. The SMTMD was formed in 2012 for a five (5) year term; lodging businesses now wish to renew it for an additional nine and one-half (9.5) years.

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

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

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

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

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

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

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Packet Pg. 219 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 3
September 29, 2016
Year $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*The initial “year” is January 1, 2018 through June 30, 2018 Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SMTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.

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

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

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Packet Pg. 220 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 4
September 29, 2016
II. ACCOMPLISHMENTS
The SMTMD is being renewed for the following reasons:

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

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

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

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Packet Pg. 221 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 5
September 29, 2016
x SMTT engaged a third party consultant to conduct focus groups with these meeting planners to better understand future meetings and incentives business opportunity for the destination.

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Packet Pg. 222 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 6
September 29, 2016
III. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, ninety-five (95) California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

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

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

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

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

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Packet Pg. 223 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 7
September 29, 2016
IV. BOUNDARY
The SMTMD will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Santa Monica with an average daily rate of $100 or more. Lodging businesses whose average daily rate increases to $100 will be assessed upon determination of the increase; likewise, lodging businesses whose average daily rate decreases to below $100 will not be assessed upon determination of the decrease. Average daily rate figures shall be updated annually.

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

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

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Packet Pg. 224 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 8
September 29, 2016
V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SMTMD funds are sales and marketing programs available only to assessed businesses. The assessment rate for each Tier will be commensurate with privileges and services provided to assessed businesses in each Tier as detailed in Appendix 4.

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

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

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

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

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

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Packet Pg. 225 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 9
September 29, 2016
in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by SMTT on an as-needed basis. Staff costs will be allocated based on work performed.

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

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

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

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

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

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Packet Pg. 226 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 10
September 29, 2016
Tier Average Daily Rate Assessment Per Occupied Room Per Night 1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
The SMTT may increase the assessment rate by a maximum of $0.25 per year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The assessment rate might not increase starting in fiscal year 2018-19, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of SMTMD efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized TMD budgets. If the maximum annual assessment increases are adopted by the SMTT Board, the estimated annual budget will increase as shown in the table below.

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

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

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

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Packet Pg. 227 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 SMTMD Management District Plan 11
September 29, 2016

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bonds shall not be issued.

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

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

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

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

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

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

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

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

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

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

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APPENDIX 1 – LAW

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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APPENDIX 2 – ASSESSED BUSINESSES

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

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APPENDIX 3 – BENEFIT STUDY

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Packet Pg. 246 Attachment: Attachment D - FY 2025 - 26 Annual Report (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Please attach additional pages if more space is required.

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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Packet Pg. 247 Attachment: Oaks 2025 [Revision 1] (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Please attach additional pages if more space is required.

CITY OF SANTA MONICA

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-month period;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ Santa Monica Travel & Tourism
Misti Kerns, Neil Carrey, Younes Atallah, Charlie Lopez-Quintana, Darlene Evans, Lauralee Asch, Karen Ginsberg, Tim Defuria, Jeff Klocke, Jan Williamson, Simon Fricker
None
Misti Kerns President/CEO
__ Digitally signed by Misti Kerns
Date: 2025.06.16 13:20:34 -07'00' 06/16/2026
[email protected] (310) 430-5039

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Packet Pg. 248 Attachment: Oaks 2025 [Revision 1] (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

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Packet Pg. 249 Attachment: Levine 2025 (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

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Packet Pg. 250 Attachment: Levine 2025 (7061 : Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan) City Council
Report
City Council Meeting: July 8, 2025
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To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan and License Agreement with DTSM
Recommended Action
Staff recommends that the City Council:

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

2. Approve the Downtown Santa Monica, Inc. (DTSM) Fiscal Year 2025-26 Budget and Work Plan; and

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

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The Downtown Santa Monica PBAD continues to be the business district that has been most heavily affected by the lasting impacts of the COVID-19 pandemic and the recent Los Angeles Wildfires, resulting in reduced tourism, population displacement and evolving hybrid working trends, all which have had the combined effect of reducing the number of visitors, shoppers and workers to our downtown. While tourism is slowly rebounding and new businesses are opening, the prolonged economic recovery is especially noticeable on the Third Street Promenade. The City and DTSM have a longstanding collaborative relationship and are prioritizing resources to help expedite the downtown district’s overall economic recovery, including addressing concerns of security, safety, maintenance and homelessness, while pursuing proactive, collaborative economic development efforts to retain and attract businesses and investment to the Downtown, as outlined in the FY 2025-26 Work Plan and Budget.

The adoption of the proposed Work Plan and Budget for Fiscal Year 2025-26 authorizes DTSM’s continued operations and the City’s quarterly revenue disbursement for services, in accordance with the Master Services Agreement. The license agreement will support DTSM’s ability to operate more events in the newly-adopted Third Street Promenade Entertainment Zone.

Discussion
DTSM is a 501(c)(3) non-profit organization that is under contract with the City to administer business and property-based assessment districts, including the management of a variety of programs, services, and operations to support economic stability, growth, and community life in downtown Santa Monica. DTSM provides hospitality and maintenance services, programs a year-round calendar of community events, including the SaMoPride Festival, the ICE skating rink activations on the Cityowned Lot 27 parking lot (5th Street at Arizona Avenue) and pickleball activations on the City-owned 1318 4th Street site (future housing development), the launch of the newly-approved Third Street Promenade Entertainment Zone and continued efforts to promote Downtown as a vibrant shopping, dining, and entertainment destination.

DTSM’s annual work plan is focused on maintaining a clean, safe and economically vibrant downtown district. Emphasis is on enhancing public safety through continued advocacy and deployment of private security, improving cleanliness across the public

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right-of-way and parking structures, and boosting foot traffic through community event activations. Efforts this last fiscal year and into the current Fiscal Year 2025-26 prioritize efforts to support Downtown’s continued resilience and revitalization, and its role as a welcoming destination for both locals and visitors.

On May 20, 2025, the DTSM Board adopted their annual budget and work plan, both of which are consistent with existing organizational priorities and investments, with significant funding priority for community safety.

Changes in this year’s budget include increased funds for the Downtown Outreach Program ($867,316 – a 328% increase from 2024 allocation), which pays for enhanced security-related outreach provided by Legion as well as ambassador-focused outreach provided by Block by Block. Legion and Block by Block are contractors hired by DTSM.

To support enhanced cleaning throughout the downtown, DTSM has also boosted funds for the Lincoln Boulevard and Colorado Avenue Maintenance line items (41% and 31% respectively, compared to the FY 2024-25 budget). To help fund these services, DTSM has reallocated some funding from the Parking Structure Maintenance line item, reduced funding allocated for decorative lighting and winter décor, and will utilize some unspent funds from FY 2024-25.

DTSM and the City continue to work closely together to identify the best strategies to support the health and vitality of the Promenade and overall downtown district, including adjusting services to prioritize clean and safe efforts throughout the area. In FY 2025- 26, the City’s Promenade Maintenance Team will assume a greater role in cleaning the Parking Structures and DTSM’s Block by Block team will assume responsibility for cleaning Zone 3 (the area bounded by 5th and 7th Streets, Wilshire Boulevard to Colorado Avenue). This “swap” in enhanced cleaning services is revenue neutral.

DTSM and City staff meet quarterly to evaluate the overall service delivery and results (Annual Work Plan attached).

DTSM is also prioritizing funding to support the new Entertainment Zone, with the goal of more robust event programming to reinvigorate public space, increase foot traffic and help attract new businesses to the downtown.

Funding for the programs, services, and operations comes from revenue generated from two business-based assessment districts:

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• The Central Business District (CBD), established in 1966, is funded by retail businesses in the CBD, and
• The Operation and Maintenance Assessment (Bayside Assessment), established in 1986, is funded by all businesses within the Bayside District.

And three property-based assessment districts:
• The Downtown Santa Monica Property-Based Assessment District (Downtown PBAD), established in 2008.
• The Lincoln Boulevard Property-Based Assessment District (Lincoln PBAD) established in 2015.
• The Colorado Avenue Overlay Zone (Colorado Overlay) established in 2015.

The Master Services Agreement between the City and DTSM requires the annual preparation and approval of a budget and work plan. In accordance with this requirement, DTSM has submitted its FY 2025-26 budget and work plan for Council review and approval.

FY 2025-26 Budget
DTSM has prepared a budget for FY 2025-26 of $9.6 million – with $9.39 million in anticipated revenue from property-based assessments, business assessments and income from enterprise programs -- and a forecasted $9.65 million in expenditures (attached). The deficit would be funded by DTSM cash reserves. However, DTSM is optimistic that they may be able to secure more event sponsorship revenue than forecasted to cover this funding gap. DTSM Board has opined that they currently have enough cash reserves to help fund any shortfalls over the next five years, in the event that DTSM Inc is not able to increase revenues through event and vending cart sponsorships. The DTSM Board of Directors adopted the annual budget and work plan on May 20, 2025. At their meeting on June 17, 2025, DTSM Board of Directors voted not to increase the annual assessments to help cover increased operating costs due to the availability of cash reserves. DTSM has not increased their annual assessments by

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Consumer Price Index (CPI) since 2020. Also attached is the most recent DTSM Annual Audit.

In response to the current economic climate, DTSM did not increase the assessment rates. Overall projected revenues reflect a one percent increase from DTSM’s FY 2024- 25 budget, but an overall reduction of six percent in the total budget amount.

Operational Work Plan for FY 2025-26
The proposed Work Plan details DTSM’s operational and programming initiatives for FY 2025-26 (attached). The work plan’s three strategic areas are:
1) Operations and Public Space Management: A clean, safe, and welcoming environment is the foundation for success in Downtown Santa Monica. DTSM provides enhanced services in the areas of public safety, custodial maintenance, and social outreach, while also providing oversight of City of Santa Monica services. Together, DTSM and the City fulfill the responsibility of creating a thriving and inviting community space for everyone. Operations and Public Space Management services make up 72.3% of the DTSM, Inc’s FY 2025-26 Budget. Several adjustments have been made within this category. A key change is the reallocation of a portion of Legion Corporation’s contract from Downtown Security Services line item to Downtown Outreach Program line item (resulting in a 328% increase in Outreach compared to FY 2024-25) to emphasize the increased attention on enhanced security through outreach and mitigation efforts.

Funds previously deployed to Parking Structure Maintenance have been reduced by 50% and reallocated to Zone 3, Lincoln and Colorado Boulevard Maintenance efforts as well as to the Outreach Program. The proposed service adjustments this year include reallocation of the City’s Promenade Maintenance staffing (2.5 FTE) to support Parking Structure Maintenance efforts. DTSM’s Block by Block team will, in turn, assume responsibilities for providing Zone 3 cleaning of the streets, sidewalks and alleys. This shift in services is revenue-neutral for both parties, as mandated by the DTSM Master Services Agreement. 2) Communications, Events, & Development: DTSM furthers the reputation and economic vitality of Downtown Santa Monica and the Third Street Promenade through consistent branded communications, hosted and facilitated events, and

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economic development. Communications, Events and Development services make up 20.7% of the DTSM FY 2025-26 Budget. This priority area includes the following directives: Community Events and Activations, Partnerships, Public Relations and Promotions, Economic Development and Advocacy, Data and Research, and Communications and Outreach. The Community Events and Activations line item has been increased by 33% from last year’s budget.

Approximately $150,000 in funding will be reallocated from the Promenade Micro-Activations line item to the Community Events line item. This shift aims to enhance the new Entertainment Zone, a central strategy for reinvigorating public space and increasing foot traffic downtown. DTSM will also continue to prioritize Economic Development, Public Relations and Advertising to help fund positive news on new business openings, to help promote the ease of doing business in Santa Monica and earmarking funds for more business events such as quarterly Broker Happy Hours, all done in close partnership with City’s Community Development Department.
3) Organization Management: DTSM is an efficient and effective organization that employs professional staff to manage relationships and services that support Downtown Santa Monica. These functions require centralized administrative support funded through revenues received by DTSM throughout the fiscal year.

Organizational Management services make up 7% of the DTSM FY 2025-26 Budget. This priority area includes Administrative Functions, Professional Support, and Board and Staff Education and Development.

Third Street Promenade Public-Serving Programs and Amenities License Agreement On September 10, 2018, the City and DTSM entered into a Third Street Promenade Public-Serving Programs and Amenities License Agreement to authorize DTSM, within the pedestrian area of the Third Street Promenade ("License Area") to provide publicserving programs and amenities to increase pedestrian experiences, enhance the sense of place, engage the community, and activate public use of the License Area.

Upon expiration, Council permitted an extension on July 25, 2023, with the addition of a

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Promenade Vending Cart Program for a term of four years, with three annual options to renew, for the Parties to assist and facilitate the Uses in the License Area to create an environment that encourages and supports the presence of pedestrians, enhances the sense of place, engages the community, and increases overall public visitation in and through the License Area.

In support of the newly-created Third Street Promenade Entertainment Zone, staff recommend granting DTSM the ability to expand the Vending Cart concept to include pop-up events with alcohol service (e.g. satellite beer gardens) within the new Third Street Promenade Entertainment Zone and to include a shared revenue opportunity for DTSM and the City. This will help to generate additional funding for both DTSM and City in support of downtown strategic priorities, including further marketing, events, capital improvement projects and clean/safe efforts.

Environmental Review
The proposed DTSM agreements with the City are exempt from CEQA pursuant to Section 15061(b)(3), which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreements are administrative in nature and would provide for continued operations and budgeting for DTSM services. Therefore, it can be seen with certainty that the recommended actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Past Council Actions
Meeting Date Description
07/09/2024
(attachment A)
DTSM FY24/25 Budget and Work Plan and Master Services
Agreement
07/25/2023
(attachment B)
Third Street Promenade Public-Serving Programs and
Amenities License Agreement
Attachment C DTSM Annual Audit 2024
Financial Impacts and Budget Actions
There are no immediate financial impacts or budget actions necessary as a result of the recommended actions. It is estimated that the license agreement will generate some

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additional revenue for both DTSM and City budgets, but the amount is currently unknown due to the new status of the Entertainment Zone. Staff will return to Council if specific budget actions are required in the future.

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

A. FY25-26 DTSM Annual Work Plan FINAL
B. Attachment B - Third Street Promenade License Agreement (Web Link) C. 2024 Downtown Santa Monica Audit Report
D. FY25-26 DTSM Adopted Budget
E. July 9, 2024 Council - Adoption of DTSM Annual Work Plan + Budget (Web Link) F. July 9, 2024 Council - Adoption of DTSM Annual Work Plan + Budget G. Written Comments

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1 DOWNTOWN SANTA MONICA, INC.

ANNUAL WORK PLAN + BUDGET
FY2025/26

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Packet Pg. 259 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 2 Table of Contents
Introduction 4Services
5Strategic Priorities
5Fiscal Year 2024/2025 Budget and Allocations
7Operations and Public Space Management
7Public Safety
8Advocacy and Oversight
8Parking Structure Custodial Maintenance
8Enhanced Custodial Maintenance
9Parks Attendants, Restroom Monitoring, and Social Outreach 9Placemaking and Beautification
9Communications, Events, & Development
10Community Events and Activations
8 Partnerships 8
Public Relations and Promotions 11Economic Development and Advocacy 11Data and Research
9 Communications and Outreach 12Organizational Management 12Administrative Functions
10 Professional Support 10
Board and Staff Education and Development 10
District Boundary Map 141
DTSM, Inc. Board Directory 152
Staff Directory 162
Exhibit A: DTSM, Inc. FY2024/2025 Budget 173
Exhibit B: DTSM, Inc. Operations Enhanced Maintenance Schedules 194 Parking Structure Maintenance Schedule 194
Lincoln Blvd and Colorado Ave Maintenance Schedule 204
Pressure Washing Schedule 215
Restroom Monitoring Schedule 215

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Packet Pg. 260 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 3 General Maintenance Schedule 226
Activity Frequency 16
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Packet Pg. 261 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 4 DOWNTOWN SANTA MONICA, INC.

FY2025-26 OPERATIONAL PLAN
Introduction
It is the mission of Downtown Santa Monica, Inc. ( DTSM, Inc.) to manage services and operations in Downtown Santa Monica while promoting economic stability, growth and community life within this unique neighborhood. To produce a strong and vibrant pedestrian-oriented downtown, DTSM, Inc. leverages its services, relationships and expertise to develop, implement, and maintain various programs for enhanced maintenance and security, marketing, events, promotions, and economic vitality to benefit Downtown Santa Monica.

To meet the challenges facing Downtown Santa Monica in Fiscal Year 2025/2026, DTSM, Inc. continues to focus on the foundations of a successful downtown: public safety, creating a clean and welcoming environment, activating a vibrant public space, and advocating for policies that support the business community. These priorities are reflected in this Operational Plan and budget.

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Packet Pg. 262 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 5 Services
DTSM, Inc. is contracted by the City of Santa Monica to provide services to the district and represent Downtown stakeholders. DTSM, Inc. functions are as follows:

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

2. Advocating on behalf of all Downtown stakeholders

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

4. Providing enhanced maintenance and public safety services Strategic Priorities
In Fiscal Year 2024/2025, the DTSM, Inc. Board of Directors determined its strategic priorities for the Fiscal Year 2025/2026. These priorities are as follows:

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

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

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

4. Activate public spaces in Downtown through events, activations, art, and improving the process in which businesses can open and operate Downtown. Increase funding for strategic communications and marketing efforts in support of additional promotions, events, and activations Downtown.

5. Improve communication and consensus building with all Downtown stakeholders, connect Downtown residents with local businesses and experiences, and support businesses through advocacy and practical programs. Create a strategic plan.

In Fiscal Year 2024/2025, Downtown Santa Monica, Inc. (DTSM, Inc.) made significant

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Packet Pg. 263 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 6 strides in advancing its strategic goals through a series of impactful initiatives.

The Santa Monica City Council authorized the continued deployment of private security services in Downtown Santa Monica, reinforcing public safety efforts. DTSM, Inc. also expanded its outreach team to deepen engagement with the unhoused population, furthering its commitment to compassionate, street-level support.

Custodial services remained active across City-owned parking structures and public rights-of-way, in coordination with City departments to streamline efforts and maintain high service standards.

DTSM, Inc. played a key advocacy role at the local and state levels, championing policy reforms designed to enhance the downtown experience. Highlights included recommending updates to Santa Monica’s Interim Zoning Ordinance to create a more business-friendly environment and supporting state legislation to enable the establishment of Entertainment Zones—laying the groundwork for a potential zone on the Third Street Promenade.

Community engagement saw notable growth through a robust calendar of events.

New celebrations for Halloween, Purim, and Asian American and Pacific Islander Heritage Month were introduced, joining returning favorites like Easter on the Promenade, Cinco de Mayo, Pride on the Promenade, and the City’s Official Holiday Tree Lighting. Ice at Santa Monica continued to draw crowds in its third post-hiatus season, though it was unfortunately cut short due to regional wildfires. Launched in July 2025, the roller skating rink, Roll at Santa Monica, brought a new community experience, though attendance did not meet expectations. Additionally, DTSM, Inc. partnered with Pickle Padel Paws and the City of Santa Monica to bring pickleball and padel courts—along with a dog park—to 1318 4th Street.

Efforts to communicate with stakeholders and promote local businesses were significantly intensified. DTSM, Inc.’s growing social media presence and marketing campaigns helped raise awareness and enhance the district’s visibility across both local and regional audiences.

Economic development was a central focus of the fiscal year. DTSM, Inc. launched a

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Packet Pg. 264 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 7 targeted campaign to spotlight Downtown Santa Monica’s economic vitality and future opportunities. This initiative resulted in widespread media coverage— including features in the Los Angeles Times and Los Angeles Business Journal—and a comprehensive paid media strategy spanning print, digital, and social platforms.

DTSM, Inc. also partnered with BISNOW to host a sold-out commercial real estate conference at the Fairmont Miramar Hotel, attracting industry leaders and potential investors.

Fiscal Year 2025/2026 Budget and Allocations
The DTSM, Inc. Board of Directors approved a budget of $9,649,151.10 for FY25/26.

DTSM, Inc. anticipates receiving $9,393,810.66 in revenue from property-based assessments, business license taxes, and income from enterprise programs. The Board determined to use $255,340.44 of carryover/unspent FY24/25 reserve funding to pay for the total expenditures for the fiscal year. (See Exhibit A, page 12.) The 2025/2026 budget contains allocations for Organizational Management, Communications, Events, and Development, and Operations and Public Space Management. The descriptions of these allocations and their unique directives are as follows:

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

Operations and Public Space Management services total $6,973,650.92 and make up 72.27% of the DTSM, Inc. budget and include the following directives:

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Packet Pg. 265 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 8 Public Safety
● Support the City of Santa Monica’s public safety officials in their efforts to keep Downtown safe
● Advocate on behalf of Downtown Santa Monica with City, County, and other government agencies charged with managing public safety to ensure they maintain a regular presence in Downtown
● Fund and oversee a security personnel deployed in Downtown Santa Monica ● Facilitate communication between parties engaged in preserving the safety of Downtown public spaces
Advocacy and Oversight
● Advise the City of Santa Monica on operations and services in the public right-of-way. Advocate for maximum effectiveness and efficiency in managing public resources
● Advise the City of Santa Monica on operations and services in public parking resources. Advocate for maximum effectiveness and efficiency in managing public parking resources
● Collaborate with the City of Santa Monica and related service vendors to ensure compliance with maintenance standards established by all parties working in the public right-of-way and on public property Parking Structure Custodial Maintenance
● Provide custodial maintenance services for Downtown public parking structures in accordance with the Services Agreement between DTSM, Inc. and the City of Santa Monica
● Starting this year, the City of Santa Monica’s Promenade Maintenance Team will assume a greater role in the parking structure maintenance by allocating

2.5 full time equivalent staff to perform cleaning services daily from 5:00 am to 1:30 pm in exchange for DTSM Inc. staff assuming responsibility for daily Zone 3 enhanced cleaning services, as detailed in Exhibit B. DTSM Inc. will continue to provide Downtown public parking structure custodial

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Packet Pg. 266 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 9 maintenance (for the restrooms) throughout the day and night and they will provide cleaning services (for parking structures overall) between 2:30 pm to 11:00 pm. This “swap” of services has been deemed “cost neutral” by the City of Santa Monica and DTSM, Inc. in accordance with the Downtown Master Services Agreement.

Enhanced Custodial Maintenance
● Provide enhanced custodial services to support a clean, active, and wellmanaged Downtown ● Conduct regular power washing and as-needed hot spot cleaning of key public spaces, including sidewalks, crosswalks, and alleys ● Promptly remove graffiti from public and private property and notify private property owners of other identified maintenance concerns and safety hazards
● Per above, DTSM, Inc. will provide enhanced cleaning maintenance services in Zone 3 in exchange for the City of Santa Monica’s Promenade Maintenance staff assuming responsibility for a portion of the Downtown parking structure cleaning maintenance as detailed in Exhibit B.

Parks Attendants, Restroom Monitoring, and Social Outreach ● Ensure a positive visitor experience in Downtown parking structure restrooms and in Downtown-adjacent parks by providing attendants and custodial maintenance services
● Deploy a Homeless Outreach Coordinator and Quality of Life team to work strictly in the Downtown District to collaborate with other advocacy groups and service providers to expedite services for individuals in need ● Partner with the City of Santa Monica and other community organizations in supporting initiatives to combat crime and homelessness Placemaking and Beautification
● Create engaging streetscapes and pedestrian spaces through the

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Packet Pg. 267 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 10 preservation of existing assets and investments in infrastructure, landscaping, amenities, and creative placemaking
● Participate in planning beautification and improvement projects for streets, sidewalks, and alleys across the district
● Work with the City of Santa Monica to maximize multi-modal transportation access and wayfinding in Downtown Santa Monica for all visitors ● Monitor permits for large-scale maintenance and construction, street and alley closures, and Third Street Promenade vehicle access. Mitigate impacts of temporary closures and provide advance communication to district stakeholders
● Collaborate with the City of Santa Monica to provide active street vendor management for Third Street Promenade and other public spaces ● Create, manage, and oversee Downtown decor and lighting programs Communications, Events, & Development
DTSM, Inc. furthers the reputation and economic vitality of Downtown Santa Monica and the Third Street Promenade through consistent, branded communications, hosted and facilitated events, and economic development.

Communications, Events & Development services total $1,997,945.14 and make up

20.71% of the DTSM, Inc. budget and include the following directives:

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

Partnerships
● Identify partnerships, sponsorships, and other funding opportunities for key

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Packet Pg. 268 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 11 programs supporting or enhancing Downtown Santa Monica ● Partner with Santa Monica Travel & Tourism, the Santa Monica Chamber of Commerce, and other local organizations to support tourism, economic development, and community engagement
Public Relations and Promotions
● Produce advertising and promotional campaigns to drive brand awareness and foot traffic to Downtown
● Produce and implement a 12-month public relations plan to reinforce the Downtown Santa Monica brand and keep Third Street Promenade top of mind for local visitors
● Strengthen local media relations by building and maintaining relationships with local editors and journalists
Economic Development and Advocacy
● Seek supplemental and diversified revenue streams to enhance programs and services. Maximize revenues generated by Downtown Santa Monica, Inc. events and activations
● Create and oversee licensed operations in public space, including community benefit activations, vendor management, and new programs ● Preserve the Downtown Santa Monica and the Third Street Promenade’s competitive advantages and economic viability through planning and advocating for reinvestment in short-term and long-term capital improvements
● Maximize the utility of private properties through zoning and ordinance changes, a streamlined permitting process and support for tenant selection by owners
● Advocate for new and existing revenues to fund maintenance, operations, and capital improvements in Downtown Santa Monica. Revenue-generating opportunities include advertising, new technology, and new funding sources ● Advocate on behalf of property and business owners on matters contributing

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Packet Pg. 269 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 12 to the overall vitality of business Downtown. Advise the City Council and its boards, commissions, and staff on the development of policies, plans, and ordinances impacting the trajectory of Downtown
Data and Research
● Produce regular data-driven reports to inform the decisions of DTSM, Inc., and support the Downtown community
● Position Downtown Santa Monica, Inc. as a central source of information on all aspects related to Downtown, including the economic vitality and market potential
● Track, analyze, and advise the City Council and its boards, commissions, and staff on public and private development projects
Communications and Outreach
● Develop communications and marketing strategic plans to reinforce Downtown Santa Monica’s brand positioning as a premier beach destination, and position Third Street Promenade as an experience-based destination ● Manage and produce content for Downtown Santa Monica’s communication channels, including website, newsletters, and social media ● Launch new and maintain existing stakeholder communications, such as newsletters and reports, to provide timely and relevant information ● Host stakeholder meetings to share updates on programs, collaborative opportunities and other essential information
● Produce a data-driven annual report to highlight the achievements of DTSM, Inc. in the prior fiscal year
● Conduct stakeholder surveys and program evaluations as needed to maximize the effectiveness of all DTSM, Inc. programs
Organizational Management
DTSM, Inc. is an efficient and effective organization that employs a professional staff to manage relationships and services that support Downtown Santa Monica. These

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Packet Pg. 270 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 13 functions require centralized administrative support funded through revenues received by DTSM, Inc. throughout the fiscal year. Organizational Management services total $677,555.04 and make up 7.02% of the DTSM, Inc. budget and include the following directives:

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

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Packet Pg. 271 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 14 District Boundary Map
The boundaries of the Downtown Santa Monica district extend from the east side of Ocean Ave to the east side of Lincoln Blvd. and from the I-10 freeway to the commercial parcels immediately north of Wilshire Blvd.

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Packet Pg. 272 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 15 DTSM, Inc. Board Directory
Chair Michele Aronson
Vice Chairs Luke Cain
Bruce Fairty
Berta Negari
Secretary/Treasurer Eric Sedman
Board Members Michelle Cardiel
Susan Cline
Jon Farzam
Edna Galindo
Joshua Gilman
Leo Pustilnikov
Lucian Tudor
Vacant Seat

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Packet Pg. 273 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 16 Staff Directory
Chief Executive Officer Andrew Thomas
Director of Marketing and Partnerships Ariana Gomez
Director of Operations and Placemaking Jeremy Ferguson
Special Events Manager Laura Borsecnik
Business & Community Development Manager Martin Ronzio-Garcia Public Space Manager Jennifer Humiston
Community Engagement Manager Tiffany Onyejekwe
Data and Research Manager Michael Lin
Administrative Office Manager Victor Greenwood

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Packet Pg. 274 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 17 Exhibit A: DTSM, Inc. FY2025/2026 Budget

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Packet Pg. 275 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 18 4.K.a
Packet Pg. 276 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 19 Exhibit B: DTSM, Inc. Operations Enhanced Maintenance Schedules
The following pages list the services in Downtown provided by DTSM, Inc. DTSM, Inc. and the City of Santa Monica work together to monitor the level of services provided to ensure maintenance work is completed throughout the assessment district.

Parking Structure Maintenance Schedule
The following duties are performed in Parking Structures during the stated shifts. Duties and shifts are subject to change based on need. All shifts document maintenance issues for reporting and respond to calls routed through the dispatch center, such as biohazards, lost items, broken glass, or other messes needing immediate attention. Large graffiti or graffiti placed in hard-to-reach areas that require aerial lifts or extendable ladders are out of the scope of DTSM, Inc. services.

Shift time from 10:00 p.m. – 6:30 a.m. [Structures 4 & 5] Close all restrooms for deep cleaning, floor-to-ceiling Shift time from 8:00 a.m. - 4:30 p.m. [Structures 4,5,9,10] Clean restrooms (empty trash, clean toilets/urinals, clean sinks, counters, mirrors, and replenish toiletries as needed)
Structures 9 and 10: receive daytime porter service after 9 a.m. and upon request.

Shift time from 2:30 p.m. – 11:00 p.m. [Structures 1,2,4,5,6,9,10] Clean restrooms daily (empty trash, clean toilets/urinals, clean sinks, counters, mirrors, replenish toiletries as needed, sweep/mop as needed
Pull all trash (2/3rds full), replace bags on every level of the parking structures, and wipe down cans Wipe down all structure interior signage, permanent and temporary, and fire and electrical boxes Remove or paint over small graffiti areas
Conduct pan and broom service as needed
Clean and disinfect areas of feces and urine as needed
Elevators: Sweep, mop and clean interior surfaces. Biohazard cleanup as needed.

Structures 9 and 10: receive daytime scheduled porter service, small graffiti removal, and spot cleaning before 9 p.m. and upon request.

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Packet Pg. 277 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 20 West side of 5th Street to west side of Lincoln, and from north side of Wilshire to north side of Olympic, including alleys (Zone 3):

DTSM, Inc. is responsible for sweeping, scrubbing, and pressure washing the alleys (5th, 6th, and 7th) and servicing trash cans in Zone 3. Frequency levels include daily monitoring/sweeping of debris, daily wiping and servicing of trash cans, sweeping the alleys five days per week, sweeping sidewalks twice weekly, scrubbing pavement, and pressure washing weekly. The following services are provided on an as-needed basis: spot cleaning + washing, treatment of stains, graffiti removal, sweeping and removing debris, tree well maintenance/weeding, addressing customer calls (e.g., additional cleanings, broken glass, animal waste), and non hazmat-related accident cleanup on sidewalks and in alleys. Document maintenance issues for reporting.

Lincoln Blvd and Colorado Ave Maintenance Schedule
Lincoln Blvd Shift time from 7:00 a.m. – 6:00 p.m.

Sweep and clean sidewalks on the east and west sides of Lincoln Blvd from Olympic to Wilshire.

Wipe down and clean all public infrastructure as needed Graffiti removal, bill and sticker removal
Vegetation management (manual weed abatement as needed) Document maintenance issues for reporting
Colorado Ave Shift time from 8:00 a.m. – 9:30 p.m.

Sweep and clean sidewalks on the north and south sides of Colorado Ave from Ocean Ave to Lincoln Blvd.

Wipe down and clean all public infrastructure as needed Graffiti removal, bill, and sticker removal
Vegetation management (manual weed abatement as needed) Document maintenance issues for reporting

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Packet Pg. 278 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 21 Pressure Washing Schedule
Enhanced Maintenance – Pressure Washing & Deep Cleaning in Downtown DTSM, Inc. conducts pressure washing and deep cleaning services throughout various locations in Downtown. Services are planned to be deployed in accordance with the following minimum schedule, which may be adjusted as resources permit.

Activity Frequency
Zone 1: Third Street Promenade Intersections 4x Annually Zone 1: Alleys (2nd & 3rd Courts) Once a week
Zone 2: Alleys Once a week
Zone 3: Alleys Once a week
Zone L: Lincoln Blvd. Sidewalks 4x Annually
Downtown Hotspots (Areas of Need) As Needed
Restroom Monitoring Schedule
The following restrooms are monitored, and custodial services are provided during all hours of public operation.
● Parking Structure 4 & 5: (check and light wipe every 15 minutes, cleaning and restocking paper products every two hours)
● Tongva Park
● Reed Park
● Palisades North (no overnight deep cleaning)
● Palisades South (no overnight deep cleaning)

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Packet Pg. 279 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 22 *Parking Structure 2 is open, but not monitored on Wednesdays and Saturdays from 7 a.m. to 1:30 p.m., and for other events as needed for special events and activations in Downtown.

General Maintenance Schedule
To care for infrastructure and improve the aesthetic of Downtown’s public spaces, DTSM, Inc. completes the following routine maintenance activities during the course of a year.

As needed Activity [All zones]
Paint public infrastructure (color-matching in response to graffiti, damage, etc.) Dinosaur landscaping refresh/replant
Dinosaur fountain maintenance semi-weekly/as needed, remove debris Tree light maintenance
Promenade overhead light canopy maintenance
Promenade paver repair
Sweep and remove trash from alleys and sidewalks
Pressure wash areas needing special attention
Remove stickers, bills, and graffiti
Wipe infrastructure such as cabinets, trash cans, street furniture, drinking fountains, bollards, bike racks, informational kiosks, on an as-needed basis, and remove graffiti Manual weed abatement
Document maintenance issues for reporting
Tree light electrical maintenance as needed:

Spotlights over Dino Fountains
Receptacles/outlets (GFCI replacement and junction boxes as part of 2nd and 4th Tree Lights). Fuses are connected to the receptacles.

Receptacles/Outlets on the Third Street Promenade. Fuses are connected to the receptacles.

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Packet Pg. 280 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 23 City of Santa Monica Public Works Maintenance Service Matrix The following pages contain a matrix outlining the services in Downtown provided by the Promenade Maintenance team of the City of Santa Monica Public Works Department. It is the responsibility of DTSM, Inc. to ensure maintenance work meets or exceeds the minimum levels of service established on creation of the assessment district.

Section - 3
rd Street Promenade:

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

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

Cleans in places scrubbers
can’t reach.

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

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Packet Pg. 281 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 24 Section - 3
rd Street Promenade, Promenade Maintenance, Cont’d.

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

4.K.a
Packet Pg. 282 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 25 Section – 3
rd Street Promenade, Public Landscape:

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

Prune & shape topiaries
Weed and detail succulent
beds
Lawn maintenance
• Once every six weeks
•3X weekly, as needed
Irrigation Inspection Check system and controller
for proper settings
• Weekly, as needed
West side of 5th Street to west side of Lincoln, and from north side of Wilshire to north side of Olympic (Zone 3):

The Public Landscape Division will inspect and maintain open spaces-related irrigation in Zone 3.

The City of Santa Monica will respond to the roadway after hours/off-duty emergency callouts for oil spills, water, and accidents.

4.K.a
Packet Pg. 283 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 26 Section - Parking Structures, Promenade Maintenance:

Shifts: Effective 1/1/15
5:00 a.m. to 1:30 p.m. 7 days a week
Parking Structures (1,2,4,5,6,9&10) Promenade Maintenance:

Service Description Frequency
PS 1,2,4,5,6,9&10 Motor sweep, scrub and
pressure wash
Pan and broom
maintenance
Clean and disinfect areas of
feces and urine
Remove Graffiti
Once daily, 7 days a week
(on a rotational basis).

Once Daily
As needed
Staircases Sweep, mop, and wipe down
all stairwells and landing
areas, pressure wash stairs,
landings, curbs, and islands
Once daily, 7 days a week
(on a rotational basis).

Trash Cans Clean and wipe down.

Change bags.

Once daily 7 days a week.

Elevators Sweep, mop and clean
interior surfaces.

Biohazard cleanup.

Once daily 7 days a week.

As needed

4.K.a
Packet Pg. 284 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 27 Shifts: Effective 1/1/15
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Parking Structures (Civic, Main Library and Ken Edwards) Promenade Maintenance:

Service Description Frequency
Bin Rooms
PS 1,2,4,5,6,9 & 10
+ Former PS3 Bin
Area
Pressure wash, degrease,
or scrub. Organize trash
and recyclables.
• Once daily, 7 days a
week
• Once 7 days a week
Grease
Interceptors:

PS 2 & 5
● Clean out sludge.
● Remove restaurant
grease
● Note: This is scheduled
by the Facilities Team
• PS 2 Annually
● PS 5 Biannual
Parking Structures, Public Landscape:

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

4.K.a
Packet Pg. 285 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 28 4.K.a
Packet Pg. 286 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 29 Section – Colorado Avenue, Arizona Avenue & Wilshire Boulevard:

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

Service Description Frequency
Pedestrian Walkways:

Sweeper

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

4.K.a
Packet Pg. 287 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 30 Trash Container Liners Pressure wash &
deodorize
• As needed
Colorado Avenue, Arizona Avenue & Wilshire Boulevard, 2nd to 4th Streets, Promenade Maintenance, Cont’d
Service Description Frequency
Spot Cleaning &
Customer Calls
Additional cleanings, graffiti,
broken glass, animal waste,
etc.
• As needed, 7
days a week
Off Duty
Emergency Call-outs
Oil spills, water, accidents, etc. • As needed
Section - Colorado Avenue, Arizona Avenue & Wilshire Boulevard, 2nd & 4th Streets, Public Landscape
2 ND & 4th Street
Service Description Frequency
Tree Trimming Regular • Every 3 years or
as needed, based
upon
Tree Well Maintenance Backfill tree wells with
decomposed granite
• As needed,
based upon
inspection.

Arizona Ave.

Service Description Frequency

4.K.a
Packet Pg. 288 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 31 Tree Trimming Regular • Every 3 years or
as needed, based
upon
Tree Well Maintenance Backfill tree wells with
decomposed granite
• As needed, based
upon inspection.

Wilshire Blvd.

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

Section - Transit Mall:

Sidewalks on both sides of the streets:
• Broadway east side of Ocean Avenue, stopping at 5th Street. • Santa Monica Boulevard from east side of Ocean Avenue, stopping at 5th Street.

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

Service Description Frequency
Monitoring Walk site, sweep &
remove debris
• Daily
Benches Spray & wipe, polish • Once daily, as needed

4.K.a
Packet Pg. 289 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 32 wood
Drinking Fountains Spray & wipe • Daily, as needed
Trash Containers Wipe top, remove trash,
replace bag
• Four times daily
Trash Container
Liners
Power wash clean • As needed
Bollards Spray & wipe • Once daily, 5 days a week
Informational Signs Spray & wipe • Once daily, 5 days a week Arbors Spray & wipe • Once daily, 5 days a week
Graffiti Monitor & Remove • As needed
Spot Cleaning &
Customer Calls
Additional cleanings,
graffiti, broken glass,
animal waste, etc.
• As needed
Off Duty
Emergency Call-outs
Oil spills, water,
accidents, etc.
• As needed

4.K.a
Packet Pg. 290 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 33 Section - Transit Mall, Public Landscape:

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

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

Irrigation Inspections Check system and
controller for proper
settings
Weekly

4.K.a
Packet Pg. 291 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 34 Section – Colorado, Broadway, Santa Monica Blvd., Arizona Avenue & Wilshire Blvd:

Sidewalks on both sides of streets from east side of 4th Street to 5th Street. (Note: DTSM assumes responsibility for Zone 3 – 5 th Street to
Lincoln Boulevard)
Service Description Frequency
Pedestrian Walkways:

Sweeper

Scrubber
Pressure Washer

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

4.K.a
Packet Pg. 292 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 35 Section - Alleys:
● 1
st Court: Between Ocean Avenue & 2nd Street from north side of Wilshire Boulevard to south side of Colorado Avenue.
● Mall Court West: Between 2nd Street and 3rd Street from north side of Wilshire Boulevard to south side of Broadway.
● Mall Court East: Between 3rd Street and 4th Street from north side of Wilshire Boulevard to south side of Broadway.
● 4th Court: Between 4th and 5th Streets from north side of Wilshire Boulevard to south side of Colorado Avenue.
● Note: DTSM is responsible for the Alleys in 5th, 6th & 7th Courts Shifts: Effective
5:00 a.m. to 1:30 p.m. 7 days a week
2:00 p.m. to 10:30 p.m. 7 days a week
Alleys, Promenade Maintenance:

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

As needed
Graffiti Monitor & Remove As needed

4.K.a
Packet Pg. 293 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 36 Alleys, Promenade Maintenance, Cont’d.

Weed suppression Remove weeds As needed,
Off Duty
Emergency Call-outs
Toxic spills, water, accidents, etc. As needed

4.K.a
Packet Pg. 294 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 37 Section – Colorado Ave. Esplanade:

From east side of 4th St. to the east side of Ocean Ave Note: DTSM is responsible for Zone 3 of Colorado Ave from 5th St. To Lincoln Blvd.

Service Description Frequency
Pedestrian Walkways:

Sweeper
Sweeper / scrubber

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

4.K.a
Packet Pg. 295 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 38 Landscape General Maintenance-using
current maintenance
specifications requirements
Twice monthly

4.K.a
Packet Pg. 296 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 39 City of Santa Monica Department of Transportation Service Matrix Downtown Parking Facility Maintenance Matrix
The Parking Division of the Department of Transportation conducts several related activities in support of Downtown Santa Monica Clean and Safe Initiatives. These operational efforts include:
● SP+ parking contract tasks related to cleanliness and monitoring of facilities
● City Staff inspection roles and management of resources applied to clean and safe activities
● Funding of interdepartmental efforts to provide for basic and enhanced security and cleanliness measures,
● Periodic evaluation of the effectiveness of anti-littering, graffiti, and human soiling countermeasures to adapt to changing
conditions, and
● Regular collaboration and meeting with DTSM and Public Works – Promenade Maintenance partners to solution more effective and joint cleanliness and safety countermeasures.

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

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

4.K.a
Packet Pg. 297 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 40 Downtown Parking Structures 1, 2, 4, 5, 6, 9 & 10:

Service Description Frequency
Public Elevators:

Usability
Inspection
Preventive
Maintenance
Major Repairs
Up-time Reports
Daily inspection of all publicly
accessible elevators OTIS conducts
monthly inspections/ minor repairs
As-needed safety, electronic, &
mechanical repairs Administrative
reporting of elevator availability
Once daily, 7 days a week
Monthly
Once daily, 5 days a week
Once a month
Parking Structure Safety Measures (PS 1, 2, 4, 5, & 6)
Service Description Frequency
Fire Alarm Testing Scheduling of routine testing
functions, subcontracts with
Allen Alarm and OTIS
• Four times annually
Fire Alarm Repairs SP+ subcontracts with ADT and
Redhawk to conduct on the
spot repairs
• As needed

4.K.a
Packet Pg. 298 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 41 Public Restrooms –
Plumbing Issues
SP+ porters and subcontractors
on-call to repair and replace
stuck plumbing
As needed
Public Restrooms –
fixture replacements
SP+ porters replace broken
sinks, urinals, toilets, mirrors,
hand dryers, and doors
Inspection once daily, 7 days/week. •
Fixture replacement as needed
PS 6 Emergency
Generator
Annual inspection and testing
of
emergency diesel/electric
generator
Annual inspection by subcontractor
Lighting Inspect stairwell, lobby, and
drive aisle lighting, replace
damaged or failed bulbs
Inspect daily/ 7 days/week
Replace as needed in batches, weekly
Graffiti
Countermeasures
SP+ collaboration with DTSM/
PW-PM, performs final paint
top coat
Inspection once daily, 7 days/week. • As
needed final top-coat paint applied after
PW or DTSM graffiti removal.

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

4.K.a
Packet Pg. 299 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 42 Curb Painting,
Pavement
delineation
Refresh curb paint and apply
pavement stencils.

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

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

Consult with Public Works as
necessary for extensive repairs
Inspect and report minor damage
once daily, 7 days per week
Assign subcontractor to conduct
minor repairs in batches as needed
Lane striping,
parking stalls,
directional arrows
Inspect and monitor wear of lane
striping, parking stencils, arrows,
and related pavement markings
Inspect weekly
Assign subcontractor to refresh
pavement markings every two years
Conduct spot repainting as needed
Parking Structure Access and Revenue Control Systems (PARCS) Ken Edwards Center; Main Library; Civic Center, PS 1, 2, 4, 5, 6, 7, 8, 9 & 10 Service Description Frequency
Ticket and Prepaid
Scanning Kiosks
and Pay-on-Foot
Machines
Inspect, replace stock,
repair damaged
customer interfaces, and
conduct preventive
maintenance.

Inspect once daily, 7 days/week
Replace ticket stock and money trays as needed,
Conduct repairs as needed
Entry & Exit Gate
arms
Inspect and replace as
need, daily
Inspect safe and proper operation of gate arms
Replace as needed
Ken Edwards
Center Parking
Structure
Inspect and monitor
PARCS machines Inspect
gate arms
Once daily, 7 days/week
Replace as needed

4.K.a
Packet Pg. 300 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 43 Main Library
Parking Structure
Inspect coin, cash, and
credit card readers,
change dispensers
Inspect gate arms
Once daily, 7 days a week
Replace as needed
Civic Center
Parking Structure
Inspect coin, cash, and
credit card readers,
change dispensers
Conduct incidental pan
& broom clean up
Inspect Lighting, fire
alarms, elevators
Once daily, 7 days a week
Cash and ticket
pullers
Inspect coin, cash, and
credit card readers,
change dispensers
Once daily, 7 days/week
Replace/ repair as needed
Customer
Interface,
Communication
equipment
Inspect voice, speaker,
and pin-hole camera
communication system
• Once daily, 7 days/week
-End-

4.K.a
Packet Pg. 301 Attachment: FY25-26 DTSM Annual Work Plan FINAL [Revision 2] (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) june 30, 2024
annual
financial
statements
downtown santa monica inc

WITH INDEPENDENT AUDITOR'S REPORT

4.K.c
Packet Pg. 302 Attachment: 2024 Downtown Santa Monica Audit Report (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan)

TABLE OF CONTENTS
Independent Auditor's Report
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
1-2
3 4
5 6
7-13

4.K.c
Packet Pg. 303 Attachment: 2024 Downtown Santa Monica Audit Report (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) J'on R. Dennis, CPA
Leighton C. Duncan, CPA
6300 Canoga Ave Suite 920
Woodland Hills, California 91367
www.dennisllp.com
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Downtown Santa Monica, Inc.

Opinion
We have audited the financial statements of Downtown Santa Monica Inc. (a California non-profit organization), which comprise the statement of financial position as of June 30, 2024, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Downtown Santa Monica Inc. as of June 30, 2024, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally ac-accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the “Auditor’s Re-possibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of Downtown Santa Monica Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in ac-accordance with accounting principles generally accepted in the United States of America (US GAAP), and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Downtown Santa Monica Inc’s ability to continue as a going concern for within one year after August 30, 2024.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Downtown Santa Monica Inc.’s internal control. Accordingly, no such opinion is expressed.

4.K.c
Packet Pg. 304 Attachment: 2024 Downtown Santa Monica Audit Report (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) INDEPENDENT AUDITOR’S REPORT
(continued)
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Downtown Santa Monica Inc’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Report on Summarized Comparative Information
We have previously audited Downtown Santa Monica Inc’s 2023 financial statements, and we expressed an unmodified audit opinion on those financial statements in our report dated October 17, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2023, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Los Angeles, California
August 30, 2024
6300 Canoga Ave Suite 920
Woodland Hills, California 91367
www.dennisllp.com

4.K.c
Packet Pg. 305 Attachment: 2024 Downtown Santa Monica Audit Report (7060 : Approval of the DTSM Fiscal Year 2025-26 Budget and Work Plan) 2024 2023
ASSETS
Current assets
Cash and cash equivalents $ 4,235,335 $ 2,312,159
Restricted cash 569,641 551,548
Accounts receivable, net 506,800 2,241,261
Prepaid expenses 43,613 58,146
Deposits and other assets 4,449 -
Total current assets 5,359,838 5,163,114
Non-current assets
Right of use, operating 722,492 824,734
Property and equipment, net 299,289 394,291
Total non-current assets 1,021,781 1,219,025
TOTAL ASSETS $ 6,381,619 $ 6,382,139

LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable $ 1,372,539 $ 1,239,209
Accrued vacation 75,834 44,036
Property based assessment reserves 618,186 605,815
Current portion of operating lease obligation 164,028 128,778 Total current liabilities 2,230,587 2,017,838
Long-term liabilities
Operating lease obligation, net of current portion 454,415 618,445 Total long-term liabilities 454,415 618,445
Total liabilities 2,685,002 2,636,283
Net assets
Without donor restrictions 3,696,617 3,745,856
With donor restrictions - -
Total net assets 3,696,617 3,745,856
TOTAL LIABILITIES AND NET ASSETS $ 6,381,619 $ 6,382,139

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT

Page 3 ends

Santa Monica City CouncilJuly 8, 2025

Santa Monica City Council
July 8, 2025