Santa Monica
Realignment
Plan
City Council Meeting
October 28, 2025
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• Staff has for the past several months spent significant time listening, observing, and assessing key issues impacting the overarching direction of Santa Monica • It is clear that during the past 5-7 years, a series of cascading events have combined to erode the vitality that for so long defined our City
• COVID pandemic
• Tourism collapse
• Local economic decline
• Increased visible public safety incidents
• Homelessness growth in scale and acuity
• Deferred maintenance throughout key civic spaces
• Childhood sexual-abuse settlements
• Erosion in public confidence
2 Background
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• There exists today a sense in the community that our City has been knocked down, and that we have lost the focus, capacity, and confidence that once defined Santa Monica
• Free cash reserves have fallen from a high of $435.8M (FY 2017-18) to $158M (FY 2025-26) today – with only $98M of that amount unobligated
• In FY 2024-25, we saw a 6% drop in Sales Tax Revenues and a 10% drop in TOT Revenues, creating a projected structural General Fund operating deficit of $29.1M in FY 2026-27 • Private sector investment in the City has plummeted, characterized by an office market that has a projected vacancy rate of ~35%, and a retail market that has a projected vacancy rate of ~16% • Public safety incidents and homelessness have created a pervasive sense of disorder • City workforce morale strained
• No overarching plan for how to solve for the myriad of issues facing Santa Monica 3 Santa Monica at a Crossroad
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• Every member of the City Council has rejected the narrative that Santa Monica’s best days are behind us
• In working with the City Council, all have spoken with staff about the need to develop a comprehensive, scalable, and executable plan to bring Santa Monica back • There have been lots of ideas, programs, and projects identified during the past several years to help reinvigorate the City
• What we have lacked to date is clarity
• For the City to play its part in revitalizing Santa Monica, we have to create organizational clarity around purpose, culture, and priorities
• And to help create that clarity, after extensive discussions with the City Council, residents, and businesses, the Executive Team engaged in a 2-day planning retreat in late August 4 Finding Our Way Back
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5 Creating Clarity
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• As staff assessed the most important issues for the City organization to achieve, we identified that we don’t need to rebuild Santa Monica
• The foundation of the City is still sturdy… so instead of rebuilding, what Santa Monica needs is to engage in a process of Realignment
• That overarching concept of Realignment suggests a need to make focused investments today, in order to achieve the strategic priorities identified by the City Council to realize a revitalized Santa Monica
• Achieving Safe Neighborhood & Clean Streets
• Activating Economic Opportunity & Growth
• Developing Affordable, Livable, & Secure Housing
• Creating Organizational Capacity
• Building Organizational Health
6 Realignment
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Safe Neighborhoods Program
Clean Streets Program
1. Public Safety & Clean Streets
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• A key element of our plan seeks to align existing and new resources in a way that addresses the areas of the City that have the greatest levels of disorder • The City’s downtown is where 36% of all calls for police services originate, and where 50% of all calls regarding homeless issues originate
• The safe neighborhood program also seeks to expand our capacity to better address public safety incidents that occur throughout Santa Monica 8 Safe Neighborhoods Program Summary
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• A Renewed Focus on Public Safety Downtown
• Establish a new Police Substation at Santa Monica Place Mall • Suite 122, located next to the Tesla store
• Merge existing special enforcement teams into a reformatted Downtown Services Unit (DSU) • Double the base staffing level to 8 – 10 DSU police officers assigned daily specifically to Downtown • Compliment DSU team w/ additional public safety and outreach resources • Overlap of regular patrol officer deployments results in a daily addition of 5 additional police officers in Downtown • Plan also integrates 2 HLP Officers to support homeless and social service outreach efforts Downtown • Add 8 new Public Safety Officers, to provide a daily non-sworn presence on the Promenade, Palisades Park, Tongva Park, Reed Park, and the Downtown parking garages
• Expand the Police Department’s Crime Impact Team (CIT) and Traffic Enforcement Operation • To enhance public safety response in other parts of the City, the plan looks to expand the CIT into a 7-member team • The CIT is a specialized unit that is deployed to solve for specific law enforcement issues located throughout the City • In addition, the plan seeks to expand our motor / traffic enforcement unit • Authorize 10 Police Officer Overhires
• We currently have 43 police officers who are eligible for retirement • Given that it takes 12 – 18 months to train and deploy a new police officer, the plan calls for the addition of 10 police officer overhires 9 Realigned Police Services Deployment Plan
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• Metro Partnership to Address End-of-Line Issues
• Staff has been engaged in discussions w/ Metro Police Chief Bill Scott to develop an MOU partnership framewok that would enable the City to assist with enforcement actions on the train platforms in Santa Monica
• Relocating SaMoShel out of Downtown, Replace w/ Healing Center Service Model • Identify a new, more suitable location for SaMoShel and the Access Center, outside of the Downtown • Institute a new sheltering framework focused on a healing center model • Rather than just congregate sheltering, the reimagined SaMoShel would integrate and pair services and linkages to transitional housing, in an effort to not just house an individual, but to help that person heal • Invest in City Attorney’s Criminal Unit
• The plan looks to add two staff members to the Criminal Unit in the CAO, which will result in the ability to file on ~90% of all legally fileable citations and arrests made by the police department • Assess New Policy Program Options
• Assess viability of instituting a new Vehicle Habitation Ordinance • Review options around expanding the SamoBridge facility to provide the police department with an additional service enhancement resource 10 Public Safety Supporting Enhancement Efforts
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• In addition to enhancing public safety, the Realignment plan calls for an investment into improving Santa Monica’s physical environment, especially in key public spaces • $3.5 million Downtown capital improvement program
• $500,000 in funding to support improvements in other BID locations • Vision Zero program enhancements
11 Clean Streets Program Summary
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• Key elements associated with the $3.5 million Downtown capital program are built around the following projects
• Urban Forestry & Green Infrastructure
• Streetscape & Public Realm Enhancements
• Civic Identity & Placemaking
• Downtown Event Readiness
• Park & Beachside Maintenance
12 Downtown Capital Improvement Plan
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• Key Downtown improvements related to
urban forestry elements include:
• Tree pruning for mature Ficus corridors (2nd,
4th, 5th Streets) to address overgrowth,
improve safety, and visibility
• Planting 37 new 36” box trees in vacant wells
to restore canopy and pedestrian comfort
• Regrading and refreshing 403 tree wells with
decomposed granite to eliminate trip hazards
and enhance aesthetics
13 Urban Forestry & Green Infrastructure
Viable Vacant Tree Well Locations
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• Key streetscape enhancements planned for the Downtown include:
• Repaint crosswalks / scrambles at 8 major intersections to improve pedestrian safety and wayfinding • Broadway @ 2nd Street
• Broadway @ 4th Street
• Santa Monica @ 2nd Street
• Santa Monica @ 4th Street
• Arizona @ 2nd Street
• Arizona @ 4th Street
• Santa Monica @ Ocean Avenue
• Broadway @ Ocean Avenue
• Replace and modernize signage and pavement markings, including Accessible Pedestrian Signal pedestrian buttons and visual clutter reduction
• Repair 20,000 sq. ft. of sidewalks in the Downtown, and replace damaged pavers in the 1200 block of the Promenade
• Install a safety barrier at Parking Structure 4 to prevent falls • Replace 125 concrete trashcans Downtown with secure, weather-resistant models 14 Streetscape & Public Realm Enhancement
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• The focus of this capital improvement program area is to visually unify Downtown’s gateways and civic edges
• Repair the water fountains at City Hall and Tongva Park, restoring civic amenities • Gateway upgrades at Lincoln, 4th, and 5th Streets: native landscaping, recycled-water irrigation, and sustainable design
• 4th Street median improvements with signage and native plantings to mark Downtown’s entry • Artist-designed crosswalk at Colorado & Ocean and future Broadway Bridge artwork (2027 implementation) to create iconic visual anchors
15 Civic Identity & Placemaking
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16 Lincoln Off-Ramp
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17 4th & 5th Street Off Ramp
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18 4th Street Median
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19 Thermoplastic Scramble @ Ocean / Colorado
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20 Broadway Bridge Graphic Update
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• The focus of this capital improvement program area is to modernize tools for efficient, safe activation of public spaces Downtown
• Standardized traffic control plans for common Downtown events • This is intended to reduce the time and expense associated with coordinating street-based events located in common areas of the Downtown
• New anti-vehicle barriers for the Farmers Market and Arizona Avenue events 21 Downtown Event Readiness
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• The focus of this capital improvement program area is to restore high-use beach infrastructure that defines the visitor experience in Santa Monica • Acquire a new Tymco 600 beach sweeper for cleaner beach parking lots and enhanced first impressions
• Repair and upgrade restrooms #16 & #17 near the Pier and Muscle Beach with new doors, locks, and hardware
22 Parks & Beachside Maintenance
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• In addition to Downtown capital plan, other elements associated with the clean streets program include
• Targeted Investments – Key Commercial Corridors
• In order to provide capital support for other Santa Monica commercial corridors, the plan allocates $500,000 towards engaging with our local BID partners to make targeted investments to improve the physical infrastructure in identified areas
• Vision Zero Plan Enhancements
• The program also recommends deploying Vision Zero focused infrastructure enhancements, while also embedding pedestrian and bike safety design elements into overall capital planning efforts, with key investments outlined below • Adding staff capacity to improve responsiveness for striping, signage, and roadway maintenance • Adding staff capacity for traffic engineering, mobility analysis, and street safety implementation • Allocating an additional $500,000 / year to be able to deliver quick-build and long-term capital projects that enhance pedestrian and bicycle safety, particularly in the Downtown, school zones, and high-injury corridors 23 Additional Clean Streets Programs
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Large Format Activations
Reopen all Library Branches
Modernize Development Services / Permitting Processes
Reduce Sidewalk Dining / Parklet Fees
Temporarily Suspend TDM Survey Requirement
Explore Expansion of Entertainment Zone Opportunities
2. Activating Economic Growth
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• There are encouraging signs that our focus on Safe & Clean priorities will pay dividends in spurring renewed local economic growth
• For instance, we have been engaged with the current decision makers at Santa Monica Place and the City’s establishment of a Downtown Substation has spurred a renewal of leasing interest at the mall • These possible new tenants will supplement the pending opening of Club Studio and Arte Museum in the former Bloomingdale’s location
• The plan developed for consideration recognizes though that Santa Monica’s ongoing success will be dependent in part on our ability to stimulate economic growth and private sector reinvestment back into the City
• Realignment can’t occur if our local office environment continues to be characterized by a ~35% vacancy rate, and if ~16% of our retail storefronts remain empty for the foreseeable future • To help bolster and activate local economic activity, the Realignment plan contemplates the implementation of a series of programs and regulatory adjustments • These project concepts have been inspired by City Council ideas, engagement with the brokerage community, and discussions with local property and business owners 25 Economic Revitalization Plan Elements
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• The plan developed identifies a need to program our public spaces with regularly occurring and appropriately scaled activation events, particularly in the Downtown core and at the Pier
• Creating regular, monthly activation events on the Promenade, which could include the deployment of music and festival-type activity, in partnership with DTSM • Allocating funding to support activation events within the boundaries of our other BIDs • Facilitating the development of a large-scale Santa Monica Music Festival in 2026 26 New Large Format Activations
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• In addition to creating community, libraries provide individuals with the resources needed to pursue economic opportunities
• Currently, Fairview Branch and Ocean Park Branch libraries are only open for self-service 2-days per week
• Main Library is open for service 5 days per week
• Pico Branch is open for full service 5 days per week, while Montana Branch library is open for full service 3 days per week • The plan developed would reopen the Fairview & Ocean Park branch libraries for full service 3 days per week starting January 1, 2026
• Further, the plan contemplates transitioning to 4 days of full service at Fairview, Ocean Park, and Montana Branch Libraries starting July 1, 2026
27 Reopening All Branch Libraries
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• Significant time and energy has been
invested in coordinating new internal plan
check processes, and within 180-days, new
systems will be deployed to facilitate the
identified plan check turnaround times
• In addition, the plan proposes investing
one-time funds to pilot the Archistar AIbased plan check program, which was originally introduced to the City by Mayor
Negrete
• The Archistar pilot would be focused on
providing plan check services for ADU projects
28 Modernize Permitting Processes
• The plan developed recognizes that to spur economic growth, the City needs to provide business operators with greater certainty regarding plan check / permitting timelines
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• Given current macro-economic circumstances – which have created a challenging restaurant business environment in our region – the plan proposes that the City provide restaurants a lifeline by simplifying and reducing the costs associated with facilitating sidewalk and parklet expansions
• This concept was initially explored by Mayor Negrete and members of the City Council several years ago, and proposed program updates include:
• Waiving the City portion of the wastewater capacity fee (~$1,400 per seat) • Restaurants will still have to pay the City of LA Hyperion wastewater fee (~$400 per seat) • Reducing monthly license fees to $1.00 / square foot for sidewalk dining, and $2.00 / square foot for parklets
• Adopting new permitting regulations that delete redundant design standards to streamline sidewalk dining and parklet permitting approval processes
29 Facilitating Sidewalk Dining & Parklets
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• The plan proposes that the City also institute the following regulatory adjustments • Entertainment Zone Expansion
• Explore the possible expansion of Entertainment Zone Downtown, while also assessing the viability of creating Entertainment Zone areas for our other BIDs and at the Pier • Temporary Suspension of TDM Survey
• In an effort to lessen the regulatory burden for local businesses, the plan suggests suspending the requirement that employers submit their annual Transportation Demand Management (TDM) survey to the City 30 Other Proposed Regulatory Adjustments
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Adopting Vacant Property & Rent Registry Ordinances
Adding Code Enforcement Resources
Focus Direct Housing Development Efforts Downtown
3. Housing
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• Housing stability underpins the City’s broader health, and the plan contemplates the development of new housing options, coupled with the preservation and protection of existing housing units in Santa Monica
• Key program adjustments in the plan include consideration of vacant property and rent registry policies, expanded code enforcement operations, and focusing the City’s direct housing efforts in the Downtown core
32 Advancing Housing Stability Policies
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• For the past few months, staff has been working to advance development of the vacant property and rent registry ordinances, to help bolster the preservation of existing housing units and to encourage the redevelopment of vacant properties • Vacant Property Registration Program
• There currently exist around 170 vacant properties in the City, with 30-40 of those properties in substantial disrepair • The new vacant property registration ordinance would provide additional tools for the City to enforce property maintenance standards
• Under the program, vacant properties would be categorized as follows – 1) properties that are entirely unoccupied; 2) construction sites where work has ceased for 90+ days; and 3) properties where fewer than 35% of units are occupied • Then, identified vacant properties would be classified into one of four different tiers depending on the condition of the vacant property, with a monitoring fee paid based on the overall condition of the property • Rent Registry Program
• The rent registry seeks to collect and document details on the approximate 15,000 non-rent controlled housing units in Santa Monica
• This will allow the City to better monitor conditions associated with market rate rental housing stock in the City • Given implementation considerations, once adopted, the proposed ordinance provides the City time during the next year to coordinate details with the Rent Control Board
33 Vacant Property & Rent Registry Ordinances
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• To ensure our ability to implement the provisions of the vacant property and rent registry ordinances, coupled with a desire to improve livability throughout Santa Monica, the plan calls for the addition of new code enforcement team staffing • The plan contemplates adding 2 new personnel, to create a team of 10 total code enforcement officers
• This staffing level would allow us to provide code enforcement coverage 7 day per week, and would facilitate the ability to handle complaint-based code inquiries from the public, while also proactively tackling vacant properties, residential habitability issues, and address unpermitted work 34 Adding Code Enforcement Resources
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• As the City continues to pursue implementation of our Housing Element, the plan considers focusing the City’s direct pursuit of housing development opportunities in the Downtown core
• A housing focus in this area has the dual benefits of supporting the revitalization of the Promenade, while also allowing the City to focus its efforts on developing compelling land assets we own in the downtown area
• Concurrently, staff also would recommend initiating studies to identify policy options that would, without jeopardizing certification of the Housing Element, encourage future housing development along our boulevards to remain compatible with adjacent residential neighborhoods 35 Focus Development Attention Downtown
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Restore Public Works & Infrastructure Maintenance Capacity Full Ambulance Operator Program Deployment
Strategic Use of City Land Assets
Assess Potential Revenue Generating Projects
4. Creating Organizational Capacity
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• In order to facilitate implementation of the Realignment plan, and to be able to maintain the proposed programmatic and capital enhancements, the City will have to create greater organizational capacity
• The plan seeks to reinvests in key operations across the City, while also developing a more strategic approach to developing four key pieces of land in the Downtown core 37 Facilitating Implementation of Realignment Plan
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• Given the public safety and capital investments contemplated in the Realignment plan, the City will need to make critical investments in our Public Works and field operation to ensure a continued ability to maintain our infrastructure • Fully funding maintenance / cleaning of City parking structure • Adding staffing to our Downtown District Maintenance Team, to ensure an 7-day per week (plus evening) coverage in the City’s Downtown core
• Expanding our HoST Strike Team to better facilitate maintenance service requests • Adding groundskeeping and custodial staffing to maintain our facilities, parks, the Pier, and beaches • Given the new public safety resources contemplated, adding mechanic resources to maintain equipment and vehicles
• Returning to a 1 – 2 year urban forest tree pruning program 38 Restoring Public Works & Maintenance Capacity
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• Taking over all ambulance operations from McCormick effective February 2026 will cost ~$2.8 million / year in new staffing costs, but will generate ~$7 million / year in new ambulance service billing revenues
• In order to fully deploy the ambulance operator program, our Fire Department will need to add 2 Fire Captains, 8 permanent Ambulance Operators, and a team of 20 part-time personnel • The operation will also require the procurement of 6 ambulances, 4 of which would be used 24-hour per day while 2 would be utilized as day-cars to help with surge needs 39 Ambulance Operator Program Deployment
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• In order to build
-back the City’s cash reserves, the plan
contemplates deploying a strategic review of developing 4 key pieces of property in the Downtown • Kiss-and-Ride Lot (1.09 acres); Parking Structure 1 (0.75 acres); Old Fire Station 1 (0.34 acres); and 4th/5th/Arizona (2.57 acres) • To maximize land residuals, the plan concurrently recommends that the City adjust development standards and land use considerations for City-owned parcels in the Downtown Community Plan, and for all properties located in the Gateway Master Plan area • This would allow for creative proposals on private property in the Gateway area leading up to major global events such as the Olympics, while also providing certainty for housing projects at a key entrance to the Downtown
• Importantly, this would also provide more flexibility to maximize community benefit from City-owned sites, while supporting the City’s strategic objectives of economic growth and housing • Further, the City Council could consider the regulatory adjustments proposed for City-owned parcels and for properties located in the Gateway Master Plan for the other areas of the City’s downtown core 40 Strategic Use of City Land Assets
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• The plan also contemplates the exploration of three potential revenue generating projects
• Regional Fire Dispatch Operation
• Various fire department agencies on the West Side and in the South Bay have been thinking about developing a regional fire dispatch operation, and Santa Monica is especially well positioned to lead and house such an effort • Pier-to-Pier Ferry Concept
• A private developer has been assessing the viability of creating a ferry service that would link Malibu, Santa Monica, and Marina Del Rey, and the project, if achievable, could generate new revenues for the City while offering an interesting potential transit / mobility option
• Beach Lot Gondola Connector
• The City has previously considered a wide-ranging gondola project to link various parts of the City’s downtown core together, and staff believes a more limited assessment of such a project – which would involve linking our beach parking lots to the Pier – could serve as a viable project that creates a new transit / mobility option, while also potentially generating new revenues for the City
41 Assess Possible Revenue Generating Projects
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One-Samo Team-Oriented Organizational Culture
Equitable Compensation / Benefit Structures
5. Building Organizational Health
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• Over the past 5-7 years, the City organization has experienced one trauma after another – from the layoff process engaged during COVID, to the riots in May 2020, to the uneven way which resources have been deployed between our sworn and nonsworn staff • Execution of the Realignment plan will be dependent on the City organization doing its part, and the best way to achieve that reality is to create greater organizational health
• In order to minimize internal politics and confusion, while also boosting morale and productivity, the City’s management, operations, strategy, and culture need to fit together in a cohesive and interconnected way that makes sense
• The plan proposes the implementation of strategies aimed at building a distinctive organizational culture focused on team-orientation, along with identifying equitable benefit adjustments for our people
43 Getting Healthier
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44 Creating A Distinct, Intentional, One-Samo Culture
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• In light of the fact that recent MOU adjustments resulted in non-sworn staff receiving increases that were significantly below that provided to sworn staff, the plan proposes the following benefit adjustments
• Investing a modest amount (~2% of personnel costs) to provide non-sworn staff with an increase in the City’s medical coverage levels from the current rate of 92% - 94%, to being fully paid by the City • Provide non-sworn with an annual winter closure during the weeks between Christmas and New Year • Though this program, non-sworn staff who are required to work during the winter closure would be provided with an allocation of cashable leave time
• All other non-sworn personnel would be provided with leave time during the winter closure • Also, in an effort to demonstrate a commitment to our staff, the plan calls for providing all employees with a once-per-year reimbursement of $100 for wellness related activities
45 Instituting Equity Based Benefit Adjustments
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Balanced Operating Budget By FY 2027-28
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• The Realignment plan includes careful budgetary analysis that achieves a structurally balanced General Fund Operating Budget by FY 2027-28
• The plan combines prudent expenditure controls with strategic use of the previously allocated $60 million in reserves as a 24-month bridge to invest in needed public safety, capital, and operational enhancements now
• Further, the plan identifies revenues and expenditure controls that achieves $31.5 million / year in net positive General Fund operating position
• The plan proposes an extension of the $18 million / year Master Facilities Agreement with the Santa Monica Malibu Unified School District (SMMUSD), which is currently set to sunset in 2028 • The overall plan also contemplates a possible parcel tax measure in 2026, to account for the $12 million / year in funding provided to SMMUSD through the Joint Use Agreement • Finally, the plan rebuilds the City’s cash reserves through strategic monetization of select City land assets in the Downtown core
47 The Realignment Plan Is Fiscally Sustainable
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• From an operating budget perspective, the proposed plan incorporates the following key elements:
• ~$7.5 million / year in expenditure realignment and cost savings through vacancy rate & hiring management; a focus on currently underperforming programs; and refinancing existing bond debt • ~$24 million / year in new revenue, from the following sources:
• DT Parking Program: $9 million / year
• Ambulance Operator: $7 million / year
• Digital Signage Revenues: $4.5 million / year
• User Fees / Compliance: $1.5 million / year
• Credit Card Fee Adjustments: $1 million / year
• Investment Earnings: $1 million / year
• The operating budget plan also contemplates a possible parcel tax measure in 2026 that would be sized to raise ~$12 million / year
48 Operating Budget Stabilization
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• The City currently contributes $30 million / year to the SMMUSD through the Joint Use Agreement ($12 million / year) and the Master Facilities Agreement ($18 million / year)
• Staff recommends extending the $18 million / year Master Facilities Agreement, which is currently set to expire in 2028
• Concurrently, the plan contemplates continuation of outreach and polling activities to gauge community support for a potential parcel tax sized to generate $12 million / year, consistent with the funding provided via the Joint Use Agreement to SMMUSD (which is set to expire at the start of 2027)
• Preliminary analysis indicates that the parcel tax would cost ~$43 / month per parcel if assessed on a flat per-parcel basis • Alternatively, the parcel tax could be assessed based on the lot square footage of each parcel, at a rate of around $0.08 / square foot
• Of note, although staff recommends continued assessment of the parcel tax, the outreach and polling efforts could suggest that the City may not want to advance the measure • Also, one or more citizens’ initiatives could be advanced for a parcel tax in the future, and in such an instance, the City would no longer be involved in the effort and would instead process the measure as we would any other initiative 49 Proposed 2026 Parcel Tax Measure
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50 Realignment Plan Operating Budget Forecast
FY 2024-25
Actuals
FY 2025-26
Revised
Budget
FY 2026-27
Approved
Budget Plan
Projection
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
Balance -6,668,402 -24,323,081 -29,058,979 -15,839,928 -10,301,304 -13,224,061 Reserves 6,668,402 31,851,732 21,479,866
Starting Fund Balance with Use of Reserves 0 7,528,651 -7,579,113 -15,839,928 -10,301,304 -13,224,061 Organizational Capacity Building Costs 0 -12,049,821 -22,870,998 -24,328,178 -25,121,956 -25,961,484 One-time Capital Costs 0 -7,699,000 0 0 0 0
New Revenue Streams 0 11,201,476 29,852,952 43,566,452 46,796,947 44,706,279 Net Revenues over Costs 0 -8,547,345 6,981,954 19,238,274 21,674,991 18,744,795 Net GF Structural Position 0 -1,018,693 -597,158 3,398,346 11,373,687 5,520,734 Item 11-A
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• The City’s cash position has materially eroded from $435.8 million in free cash on July 1, 2018, down to roughly $158 million in non-restricted reserves today • Of note, only approximately $98 million of the City’s current cash reserves are unobligated, given that the City Council allocated $60 million to support City operations as part of the FY 2025-26 budget process
• To replenish our cash reserves, the plan contemplates the strategic disposition of 4 key pieces of City-owned land at 4th/5th/Arizona (2.57 acres); the Kiss-and-Ride Lot (1.09 acres); Parking Structure 1 (0.75 acres); and Old Fire Station 1 (0.34 acres) • If we advance the correct strategy in developing the four above identified properties, the City could reasonably expect to create $100 - $200 million in value • This would facilitate rebuilding the City’s cash reserve levels back towards the $200 - $300 million range by 2028
51 Replenishing City’s Cash Reserves
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Next Steps
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• The Realignment plan is intended to represent a turning point for Santa Monica, and serves as the start of consideration of a proactive series of programs and policies that staff has developed in response to City Council feedback and direction • This is not the end of the conversation, but is instead the beginning of a proactive agenda that the City intends to pursue during the next 24-months to achieve a civic renewal in Santa Monica • This plan, developed with the City Council’s guidance, has been built on a comprehensive effort to restore safety, economic vitality, and organizational strength… so Santa Monica can return to being that City which demonstrates what’s possible
53 Realignment In Santa Monica
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October 28, 2025
Item 11-A
October 28, 2025
• Staff recommends that the City Council adopt the Santa Monica Realignment plan as the City’s guiding framework for public safety renewal, revitalization of key public spaces, and achievement of organizational stability and fiscal balance by FY 2027-28 via the following direction:
• Approve all budget adjustments and personnel authorizations required to implement the Realignment plan (Attachments A, B, & C); • Adopt the Parking Fee Update Resolution (Attachment D); • Adopt the Credit Card Convenience Fee Resolution (Attachment E); • Adopt resolutions authorizing non-sworn employee benefit enhancements that include a Citywide winter closure and the Coalition Medical Agreement Contract #11663, along with a $100 / year wellness benefit for all City employees (Attachments F (updated) & G); • Introduce for first reading of an ordinance amending Chapter 13.04, Vacant Properties, of Article 13, Neighborhood Preservation, of the City of Santa Monica Municipal Code to require the registration of vacant properties (Attachment H); • Authorize staff to assess options for expanding the SamoBridge facility and development of a vehicle habitation ordinance; • Introduce for first reading of an ordinance amending Santa Monica Municipal Code Chapter 4.25 regarding the registration of rental housing units not subject to local rent control (Attachment I); • Introduce for first reading of an interim zoning ordinance amending Santa Monica Municipal Code Section 9.31.200, Outdoor Dining and Seating on Sidewalks, to promote economic recovery by simplifying the City’s outdoor dining program (Attachment J); • Adopt the Outdoor Dining Fee Program Resolution to institute an updated fee reduction program for parklets and sidewalk dining (Attachment K);
54 Next Steps
Item 11-A
October 28, 2025
Item 11-A
October 28, 2025
• Authorize staff to assess possible expansion of the Entertainment Zone program for the Downtown, the Pier, and business improvement districts; • Authorize staff to assess the Pier-to-Pier ferry, beach gondola, and regional fire dispatch concepts; • Authorize staff to explore opportunities to update development standards, land uses, and processes for City-owned sites in the Downtown Community Plan area and public and private sites within the former Gateway Master Plan area to provide more flexibility to unlock land value and redevelopment potential; • Adopt a Resolution of Intention directing the Planning Commission to initiate an amendment to the text of the Downtown Community Plan to allow flexibility in development standards, land uses, and processes for the city to manage its real estate assets and provide flexibility in development standards, land uses, and processes for public and private parcels within the former Gateway Master Plan area (Attachment L); • Adopt a Resolution of Intention directing the Planning Commission to initiate an amendment to the text of the Zoning Ordinance to provide flexibility in development standards, land uses, processes, and permit expiration timeframes for projects in the Downtown (Attachment M); • Authorize staff to focus City housing development efforts in the Downtown core, and concurrently direct that staff initiate studies to identify policy options that do not jeopardize Housing Element certification and also ensures that future development on boulevards achieves compatibility with existing residential neighborhoods; • Authorize staff to pause Transportation Demand Management (TDM) survey requirements for businesses; • Authorize staff to extend the Master Facilities Agreement (Measure YY / GS) with the Santa Monica Malibu Unified School District (SMMUSD) beyond its current 2028 expiration date; • Authorize staff to continue assessing a possible 2026 parcel-tax ballot measure to sustain City-SMMUSD funding through the Joint Use Agreement; and • 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. 55 Next Steps
Item 11-A
October 28, 2025
Item 11-A
October 28, 2025