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Packet Pg. 876 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 9 WHEREAS, on April 22, 2025, the Council provided further direction to extend the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales and service through April 30, 2025, for an additional 60 days; and
WHEREAS, on April 29, 2025, the Executive Director of Emergency Services issued a Fifth Supplement to the Second Revised Executive Order to implement Council direction from April 22 and extend the provisions of Section 5 to the Second Supplement through June 30, 2025; and
WHEREAS, on June 10, 2025, the City Council adopted Resolution Number 11668 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third and Fourth Supplements to the Executive Order, and ratifying the Fifth Supplement to the Executive Order; and
WHEREAS, on June 26, 2025, the Executive Director of Emergency Services issued a Sixth Supplement to the Second Revised Executive Order to: 1) allow Child Care and Early Education Facilities displaced by the Regional Fires to operate within the City’s nonresidential zones as a permitted use in existing buildings that were previously used as Child Care and Early Education Facilities; and 2) extend the provisions of Section 5 of the Second Supplement to August 31, 2025; and
WHEREAS, on July 29, 2025, the City Council adopted Resolution Number 11685 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, Docusign Envelope ID: E3C06E31-3E98-47EB-B824-7B99ECB9629C
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Packet Pg. 877 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 10 and the First, Second, Third, Fourth, and Fifth Supplements to the Executive Order, and ratifying the Sixth Supplement to the Executive Order; and WHEREAS, although the immediate fire danger has subsided, the City has continued to receive requests to accommodate individuals, schools, and businesses displaced by the Regional Fires; and
WHEREAS, the City has received additional inquiries from displaced schools, early childhood education centers, and small businesses seeking flexibility from regulations in order to temporarily or permanently relocate to the City; and WHEREAS, allowing for this additional flexibility will support displaced residents, students and businesses in their recovery from the Regional Fires while further supporting the City’s economic recovery efforts; and
WHEREAS, local businesses have reported that they are still experiencing economic impacts from the Regional Fires and face resulting economic uncertainty; and WHEREAS, allowing the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses, will provide additional opportunity for displaced businesses and economic recovery for local businesses; and
WHEREAS, further extending the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and
9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and Docusign Envelope ID: E3C06E31-3E98-47EB-B824-7B99ECB9629C
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Packet Pg. 878 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 11 conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales, will provide additional opportunities for economic recovery for local businesses.
NOW, THEREFORE, I, Oliver Chi, the Director of Emergency Services for the City of Santa Monica, do hereby issue the following supplemental order to become effective immediately, subject to ratification by the Council as may be required by the Municipal Code.
IT HEREBY ORDERED THAT:
1. The Second Revised Executive Order shall continue in full force and effect, except as modified and supplemented by the First, Second, Third, Fourth, Fifth, Sixth Supplements, and this Seventh Supplement.
2. Section 1 of the Second Revised Executive Order, as amended by the First, Second and Fourth Supplements to the Executive Order, is hereby amended as follows:
A. Within the City’s non-residential zones:
1. Schools, as that term is defined by Santa Monica Municipal Code Section 9.51.030(A)(11), and Child Care and Early Education Facilities, as that term is defined by Santa Monica Municipal Code Section 9.51.030(A)(3) that were displaced by the Regional Fires or expansions to existing schools to accommodate students displaced by the Regional Fires may operate as a temporary use without first obtaining a Conditional Use Permit or a Temporary Use Permit; and
2. Small businesses, as that term is defined by the United States Small Business Administration at 13 CFR § 121.105, and nonprofit organizations, that were operating in Los Angeles County and have been impacted or displaced by the Docusign Envelope ID: E3C06E31-3E98-47EB-B824-7B99ECB9629C
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Packet Pg. 879 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 12 Regional Fires may operate without first obtaining a Conditional Use Permit, or as a temporary permitted use without first obtaining a Temporary Use Permit.
3. The Director of the Community Development Department, or designee, may issue Temporary Use Permits in accordance with Santa Monica Municipal Code Chapter 9.44 for temporary uses supportive of economic recovery or to support businesses operating in Los Angeles County that were displaced by the Regional Fires, if the Director has determined that the temporary use will be compatible with the purposes of the district and surrounding land uses.
B. Within the City’s Residential Zones, Schools with existing Conditional Use Permits that are subject to occupancy limitations may expand to accommodate students from other campuses operated by the existing school displaced by the Regional Fires; Child Care and Early Education Facilities displaced by the Regional Fires may operate as a permitted use in existing buildings that were previously used as Child Care and Early Education Facilities.
C. Prior to occupancy and upon request by the City, schools operating or expanding under this Section shall submit a Parking and Loading Operations Plan to the Director of the Community Development Department for review and approval, which may be amended from time to time.
D. City Staff shall also prioritize any necessary permitting and inspections required, and strict adherence to building codes shall not be required on this temporary basis unless the provision directly affects health and safety; since it is the intent to accommodate those affected beyond the immediate fire emergency threat, City Staff are also directed to prepare and offer for Council approval solutions that would allow those schools, child care and early education facilities, small businesses and nonprofits Docusign Envelope ID: E3C06E31-3E98-47EB-B824-7B99ECB9629C
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Packet Pg. 880 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 13 displaced and temporarily relocating pursuant to this provision to remain for six to twelve months (or longer, as may be directed by Council) following their displacement.
3. The provisions of Section 5 of the Second Supplement are hereby extended and shall terminate on October 31, 2025, at 11:59 p.m., unless extended or expressly superseded by a further order of the Director of Emergency Services.
ADOPTED this 28th day of August 2025.
ATTEST:
___________________ By: _____________________________
NIKIMA NEWSOME OLIVER CHI
City Clerk City Manager
Director of Emergency Services
APPROVED AS TO FORM:
______________________
DOUGLAS SLOAN
City Attorney
Docusign Envelope ID: E3C06E31-3E98-47EB-B824-7B99ECB9629C 8/29/2025
8/29/2025
8/29/2025
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Packet Pg. 881 Attachment: K-Seventh Supplement Executive Order Local Emergency August 28, 2025 (7388 : Fire Emergency Order Extension) 1 CITY OF SANTA MONICA
EIGHTH SUPPLEMENT TO THE EXECUTIVE ORDER OF THE DIRECTOR OF
EMERGENCY SERVICES DECLARING THE EXISTENCE OF A LOCAL
EMERGENCY
WHEREAS, a life-threatening, destructive, widespread windstorm and extreme fire weather system commenced on Tuesday, January 7, 2025, impacting the Los Angeles metropolitan area, including the City of Santa Monica and the County and City of Los Angeles, and threatening life and safety, public and private property and structures, and other critical infrastructure; and
WHEREAS, the National Weather Service advised that damaging N/NE gusts of 50-80 mph, as well as isolated 80-100 mph gusts in the mountains and foothills, were expected across most of Los Angeles metropolitan area; and WHEREAS, commencing on January 7, 2025, the Palisades Fire and other major fires, including, but not limited to, the Eaton Fire located primarily in Altadena (Regional Fires) ignited in Los Angeles County, burning well over 40,000 acres; and WHEREAS, high winds, low humidity, and dry conditions increased the intensity and spread of the Regional Fires, causing imminent threats to life with Red Flag warnings in effect in Los Angeles and Ventura Counties and widespread dangerous windstorm conditions with damaging wind gusts of 50 to 80 mph were forecasted; and WHEREAS, the Regional Fires and windstorm conditions threatened structures, homes, and critical infrastructure, including power lines and water tanks, prompted evacuation orders and warnings, and impacted the access route to the Regional Fires communities; and
WHEREAS, along with the windstorm, the Regional Fires spread across more than 40,000 acres, damaging or destroying structures and prompting evacuation orders and Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 882 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 2 road closures, and continued to threaten structures, homes, and critical infrastructure over multiple days; and
WHEREAS, the National Weather Service issued a rare Particularly Dangerous Situation (PDS) Red Flag warning for 19 million people in the Los Angeles metropolitan area, which means there is a high risk of extreme fire behavior and very rapid growth due to dangerously high winds, low humidity, and extremely dry vegetation; and WHEREAS, this weather system caused extreme conditions such as power outages, damage to power poles, fallen trees, and extreme fire behavior, impacting significant transportation arteries, requiring long-term repair and threatening the integrity of the critical infrastructure; and
WHEREAS, based upon the above events, by reason of its magnitude, and the need to protect the health, safety, and welfare of the residents and property of the City of Santa Monica, and aid in the assistance of those affected by the Regional Fires, these events created conditions likely to become beyond the control of the normal services, personnel, equipment, and facilities of the regularly constituted branches and departments of the City Government, and that such emergency conditions require the mobilization of mutual aid resources and the ability to coordinate a multiagency response; and
WHEREAS, on January 7, 2025, as a result of the widespread windstorm and extreme fire weather, the Los Angeles County Board of Supervisors proclaimed a Local Emergency in the County of Los Angeles; and
WHEREAS, on January 7, 2025, the Mayor of the City of Los Angeles declared the existence of a Local Emergency throughout the City of Los Angeles to take such steps that are necessary for the protection of life and property; and Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 883 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 3 WHEREAS, on January 7, 2025, the Governor of the State of California declared a state of emergency to make additional resources available; and WHEREAS, the City of Santa Monica (the City) has a population of over 90,000 residents, is a major tourist destination, has two major hospitals and an airport within its jurisdiction, is a significant destination for business travel, and is adjacent to and contiguous on three sides with the City of Los Angeles, resulting in high volumes of residents and visitors traveling within and across the City’s borders; and WHEREAS, on January 7, 2025, the City activated its Emergency Operations Center to support ongoing emergency actions in response to the spread of the Regional Fires; and
WHEREAS, the City intends to continue to take bold and aggressive actions to protect the public health and safety during this local and state emergency; and WHEREAS, the above-described events created conditions of extreme peril and such conditions are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat; and
WHEREAS, the Regional Fires have displaced many thousands of residents who are in need of temporary housing; and
WHEREAS, on January 8, 2025, the City Manager, in his role as the Director of Emergency Services, (“Executive Director of Emergency Services”) issued an Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Executive Order”) declaring a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability an effective response to the Regional Fires; and
Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 884 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 4 WHEREAS, pursuant to the Executive Order, the Executive Director of Emergency Services further: 1) relaxed permitting requirements for schools and child care and early education facilities that were displaced; 2) suspended preferential parking rules and enforcement of Santa Monica Municipal Code Chapters 6.20, Home-Sharing and Vacation Rentals, and 6.22, Residential Leasing Regulations for persons who provide alternative accommodations to persons displaced; 3) triggered prohibitions on pricegouging under the Santa Monica Municipal Code and the California Penal Code; 4) prohibited landlords from evicting residential tenants based on the presence of unauthorized occupants or pets, if the occupant or pet has been displaced due to an evacuation order or poor air quality conditions; 5) imposed a curfew in all areas subject to a mandatory evacuation order; 6) suspended all previously-issued building permits for areas subject to mandatory evacuation orders and evacuation warnings; 7) triggered emergency procurement and expenditure provisions under Chapter 2.16; and 8) permits bed and breakfasts and hotels and motels to allow stays beyond 30 days; and WHEREAS, on January 10, 2025, the Executive Director of Emergency Services issued a Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Revised Executive Order”) restating the declaration of local emergency, and 1) prohibiting landscaping activities in areas subject to a Mandatory Evacuation Order; and 2) making other minor amendments and clarifications; and
WHEREAS, on January 10, 2025, at a Special Meeting of the City Council, the Council adopted Resolution Number 11639 (CCS) to: 1) ratify the Executive Order and Revised Executive Order; 2) proclaim a local emergency throughout the City; and 3) authorize the Executive Director of Emergency Services to take all actions related to the Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 885 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 5 protection of life and property that are reasonably necessary to respond to the local emergency caused by the Regional Fires; and
WHEREAS, on January 10, 2025, the City Council further directed staff to supplement the Executive Order to: 1) relax permitting requirements for small businesses and nonprofit organizations that were operating in Los Angeles County and have been impacted by the Regional Fires: 2) prioritize any necessary permitting and inspections for displaced schools, early childhood education centers, small businesses and nonprofit organizations, and clarify that strict adherence to building codes shall not be required on this temporary basis unless the provision directly affects health and safety; 3) grant priority on the City’s below market housing waitlist to households displaced by the Regional Fires with minor children currently attending SMMUSD schools or that work in the City at least 25 hours per week; 4) prohibit open flames during times of red flag warnings; and 5) make other minor clarifications and corrections; and WHEREAS, on January 14, 2025, the Executive Director of Emergency Services issued a Second Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Second Revised Executive Order”) to implement Council direction; and
WHEREAS, as of January 30, 2025, the Regional Fires destroyed more than 17,000 structures; and
WHEREAS, on January 31, 2025, the Executive Director of Emergency Services issued a First Supplement to the Executive Order to: 1) authorize schools with existing Conditional Use Permits in residential zones to expand to accommodate students from other campuses operated by the existing school displaced by the Regional Fires; 2) waive license fees for outdoor dining areas, sidewalk dining, parklets, and pier deck extended Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 886 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 6 dining for the month of February 2025; 3) authorize the Finance Department to grant hotels and motels a 30-day extension for payment of Transient Occupancy Taxes and the Tourism Marketing District Assessment due for December 2024; and 4) expanding criteria for Tier 1 priority on the City’s below market housing waitlist for income-qualifying households impacted by the Regional Fires; and
WHEREAS, on February 25, 2025, the City Council adopted Resolution Number 11645 (CCS), ratifying the Executive Order, the Revised Executive Order, the Second Revised Executive Order, and the First Supplement to the Executive Order; and WHEREAS, on February 25, the City Council further gave direction to phase out suspension of enforcement of Santa Monica Municipal Code Chapter 6.20, HomeSharing and Vacation Rentals, enforcement of Santa Monica Municipal Code 6.22.050,
6.22.060, and 6.22.070, Residential Leasing Regulations, and to clarify tenant protections for persons displaced that obtained housing during the suspension; and WHEREAS, on March 19, 2025, the Interim Executive Director of Emergency Services issued a Second Supplement to the Second Revised Executive Order to: 1) broaden the Order’s provisions to include schools and Child Care and Early Education Facilities that were expanding to accommodate students displaced by the Regional Fires; 2) terminate the portion of Section 3 of the Second Revised Emergency Order suspending enforcement of the provisions of the City’s Home-Sharing Ordinance as of April 18, 2025, and clarify that the resumption of enforcement does not require the eviction of any person occupying a rental unit pursuant to Section 3 of the Second Revised Emergency Order or terminate any tenant rights that any such person may have acquired; 3) expand the 30-day extension for payment of TOT and TMD to any request made on or before April 30, 2025; and 4) suspend certain provisions of Santa Monica Municipal Code 9.31.280, Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 887 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 7 Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales and service through April 30, 2025; and
WHEREAS, on March 28, 2025, the Interim Executive Director of Emergency Services issued a Third Supplement to the Second Revised Executive Order to discount license fees by 50% for outdoor dining areas, sidewalk dining, parklets, and pier deck extended dining for the month of March 2025; and
WHEREAS, unexpected traffic impacts may occur as a result of schools that have been displaced by the Regional Fires operating or expanding within the City as a temporary use, which may be alleviated through a Parking and Loading Operations Plan; and
WHEREAS, schools displaced by the Regional Fires that expect to operate within the City’s Downtown will experience unexpected costs arising out of parking fees for the City’s Downtown parking structure; and
WHEREAS, providing a discounted group rate to displaced schools will alleviate some unexpected financial burden while supporting use of the City’s Downtown parking structures; and
WHEREAS, in the months that have passed since the Regional Fires, persons displaced have had opportunity to find housing accommodations on a semi-permanent or permanent basis; and
Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 888 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 8 WHEREAS, expiration of emergency measures allowing modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests will allow for normal parking operations to resume; and WHEREAS, on April 16, 2025, the Interim Executive Director of Emergency Services issued a Fourth Supplement to the Second Revised Executive Order to: 1) require schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, to submit a Parking and Loading Operations Plan to the City; 2) provide a pro rata monthly Group Discount Rate for the City’s Downtown Parking Structures for the 35 remaining days of the Spring 2025 Semester for schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, that are located within the Downtown; and 3) terminate modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests permits set forth in Section 2 of the Second Revised Emergency Order as of April 30, 2025; and
WHEREAS, on April 22, 2025, the City Council adopted Resolution Number 11659 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First Supplement to the Executive Order, and ratifying the Second, Third, and Fourth Supplements to the Executive Order; and
WHEREAS, on April 22, 2025, the Council provided further direction to extend the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 889 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 9 allow for additional flexibility in alcohol sales and service through April 30, 2025, for an additional 60 days; and
WHEREAS, on April 29, 2025, the Executive Director of Emergency Services issued a Fifth Supplement to the Second Revised Executive Order to implement Council direction from April 22 and extend the provisions of Section 5 to the Second Supplement through June 30, 2025; and
WHEREAS, on June 10, 2025, the City Council adopted Resolution Number 11668 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third and Fourth Supplements to the Executive Order, and ratifying the Fifth Supplement to the Executive Order; and
WHEREAS, on June 26, 2025, the Executive Director of Emergency Services issued a Sixth Supplement to the Second Revised Executive Order to: 1) allow Child Care and Early Education Facilities displaced by the Regional Fires to operate within the City’s nonresidential zones as a permitted use in existing buildings that were previously used as Child Care and Early Education Facilities; and 2) extend the provisions of Section 5 of the Second Supplement to August 31, 2025; and
WHEREAS, on July 29, 2025, the City Council adopted Resolution Number 11685 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, and Fifth Supplements to the Executive Order, and ratifying the Sixth Supplement to the Executive Order; and WHEREAS, on August 28, 2025, the Executive Director of Emergency Services issued a Seventh Supplement to the Second Revised Executive Order to: 1) authorize the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 890 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 10 to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses; and 2) extend the provisions of Section 5 of the Second Supplement to October 31, 2025; and
WHEREAS, on September 9, 2025, the City Council adopted Resolution Number 11696 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth and Sixth Supplements to the Executive Order, and ratifying the Seventh Supplement to the Executive Order; and WHEREAS, although the immediate fire danger has subsided, the City has continued to receive requests to accommodate individuals, schools, and businesses displaced by the Regional Fires; and
WHEREAS, the City has received additional inquiries from displaced schools, early childhood education centers, and small businesses seeking flexibility from regulations in order to temporarily or permanently relocate to the City; and WHEREAS, allowing for this additional flexibility will support displaced residents, students and businesses in their recovery from the Regional Fires while further supporting the City’s economic recovery efforts; and
WHEREAS, local businesses have reported that they are still experiencing economic impacts from the Regional Fires and face resulting economic uncertainty; and WHEREAS, allowing the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses, will provide Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 891 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 11 additional opportunity for displaced businesses and economic recovery for local businesses; and
WHEREAS, after an initial higher volume of requests for Tier 1 priority due to impacts from the regional fires on the City's Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist, requests have dropped significantly in recent months, with only one request for Tier 1 priority submitted to the Housing Division from October 1 through October 22, 2025, evidencing demand for the preference has largely subsided; and
WHEREAS, the 6-month period of Tier 1 priority on the Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist that was granted under the Second Revised Executive Order to eligible persons impacted by the Regional Fires has expired for initial persons that were awarded the priority and will expire soon for others; and
WHEREAS, as the Emergency Housing Voucher (EHV) program sunsets and federal funding winds down, it is vital for the Housing Authority to focus its limited voucher program staff capacity on maintaining housing stability for current voucher program participants, particularly those transitioning from the EHV program into the Section 8 Housing Choice Voucher program to prevent displacement and homelessness; and WHEREAS, further extending the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and
9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 892 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 12 alcohol sales, will provide additional opportunities for economic recovery for local businesses.
NOW, THEREFORE, I, Oliver Chi, the Director of Emergency Services for the City of Santa Monica, do hereby issue the following supplemental order to become effective immediately, subject to ratification by the Council as may be required by the Municipal Code.
IT HEREBY ORDERED THAT:
1. The Second Revised Executive Order shall continue in full force and effect, except as modified and supplemented by the First, Second, Third, Fourth, Fifth, Sixth, and Seventh Supplements, and this Eighth Supplement.
2. Section 4 of the Second Revised Executive Order as modified and supplemented by the First Supplement is hereby terminated and is of no further force and effect except that households granted Tier 1 priority on the Below Market Housing waiting list or the Santa Monica Housing Authority waiting list shall retain that priority for a period of 6 months after being granted the priority.
3. The provisions of Section 5 of the Second Supplement are hereby extended and shall terminate on December 31, 2025, at 11:59 p.m., unless extended or expressly superseded by a further order of the Director of Emergency Services. ///
Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 893 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 13 ADOPTED this 23rd day of October 2025.
ATTEST:
___________________ By: _____________________________
NIKIMA NEWSOME OLIVER CHI
City Clerk City Manager
Director of Emergency Services
APPROVED AS TO FORM:
______________________
HEIDI VON TONGELN
Interim City Attorney
Docusign Envelope ID: 58941E81-F61E-414E-854F-5F86BED08A25
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Packet Pg. 894 Attachment: L-Eighth Supplement Executive Order Local Emergency October 23, 2025 (7388 : Fire Emergency Order Extension) 1 CITY OF SANTA MONICA
NINTH SUPPLEMENT TO THE EXECUTIVE ORDER OF THE DIRECTOR OF
EMERGENCY SERVICES DECLARING THE EXISTENCE OF A LOCAL
EMERGENCY
WHEREAS, a life-threatening, destructive, widespread windstorm and extreme fire weather system commenced on Tuesday, January 7, 2025, impacting the Los Angeles metropolitan area, including the City of Santa Monica and the County and City of Los Angeles, and threatening life and safety, public and private property and structures, and other critical infrastructure; and
WHEREAS, the National Weather Service advised that damaging N/NE gusts of 50-80 mph, as well as isolated 80-100 mph gusts in the mountains and foothills, were expected across most of Los Angeles metropolitan area; and WHEREAS, commencing on January 7, 2025, the Palisades Fire and other major fires, including, but not limited to, the Eaton Fire located primarily in Altadena (Regional Fires) ignited in Los Angeles County, burning well over 40,000 acres; and WHEREAS, high winds, low humidity, and dry conditions increased the intensity and spread of the Regional Fires, causing imminent threats to life with Red Flag warnings in effect in Los Angeles and Ventura Counties and widespread dangerous windstorm conditions with damaging wind gusts of 50 to 80 mph were forecasted; and WHEREAS, the Regional Fires and windstorm conditions threatened structures, homes, and critical infrastructure, including power lines and water tanks, prompted evacuation orders and warnings, and impacted the access route to the Regional Fires communities; and
WHEREAS, along with the windstorm, the Regional Fires spread across more than 40,000 acres, damaging or destroying structures and prompting evacuation orders and Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 895 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 2 road closures, and continued to threaten structures, homes, and critical infrastructure over multiple days; and
WHEREAS, the National Weather Service issued a rare Particularly Dangerous Situation (PDS) Red Flag warning for 19 million people in the Los Angeles metropolitan area, which means there is a high risk of extreme fire behavior and very rapid growth due to dangerously high winds, low humidity, and extremely dry vegetation; and WHEREAS, this weather system caused extreme conditions such as power outages, damage to power poles, fallen trees, and extreme fire behavior, impacting significant transportation arteries, requiring long-term repair and threatening the integrity of the critical infrastructure; and
WHEREAS, based upon the above events, by reason of its magnitude, and the need to protect the health, safety, and welfare of the residents and property of the City of Santa Monica, and aid in the assistance of those affected by the Regional Fires, these events created conditions likely to become beyond the control of the normal services, personnel, equipment, and facilities of the regularly constituted branches and departments of the City Government, and that such emergency conditions require the mobilization of mutual aid resources and the ability to coordinate a multiagency response; and
WHEREAS, on January 7, 2025, as a result of the widespread windstorm and extreme fire weather, the Los Angeles County Board of Supervisors proclaimed a Local Emergency in the County of Los Angeles; and
WHEREAS, on January 7, 2025, the Mayor of the City of Los Angeles declared the existence of a Local Emergency throughout the City of Los Angeles to take such steps that are necessary for the protection of life and property; and Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 896 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 3 WHEREAS, on January 7, 2025, the Governor of the State of California declared a state of emergency to make additional resources available; and WHEREAS, the City of Santa Monica (the City) has a population of over 90,000 residents, is a major tourist destination, has two major hospitals and an airport within its jurisdiction, is a significant destination for business travel, and is adjacent to and contiguous on three sides with the City of Los Angeles, resulting in high volumes of residents and visitors traveling within and across the City’s borders; and WHEREAS, on January 7, 2025, the City activated its Emergency Operations Center to support ongoing emergency actions in response to the spread of the Regional Fires; and
WHEREAS, the City intends to continue to take bold and aggressive actions to protect the public health and safety during this local and state emergency; and WHEREAS, the above-described events created conditions of extreme peril and such conditions are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat; and
WHEREAS, the Regional Fires have displaced many thousands of residents who are in need of temporary housing; and
WHEREAS, on January 8, 2025, the City Manager, in his role as the Director of Emergency Services, (“Executive Director of Emergency Services”) issued an Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Executive Order”) declaring a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability an effective response to the Regional Fires; and
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 897 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 4 WHEREAS, pursuant to the Executive Order, the Executive Director of Emergency Services further: 1) relaxed permitting requirements for schools and child care and early education facilities that were displaced; 2) suspended preferential parking rules and enforcement of Santa Monica Municipal Code Chapters 6.20, Home-Sharing and Vacation Rentals, and 6.22, Residential Leasing Regulations for persons who provide alternative accommodations to persons displaced; 3) triggered prohibitions on pricegouging under the Santa Monica Municipal Code and the California Penal Code; 4) prohibited landlords from evicting residential tenants based on the presence of unauthorized occupants or pets, if the occupant or pet has been displaced due to an evacuation order or poor air quality conditions; 5) imposed a curfew in all areas subject to a mandatory evacuation order; 6) suspended all previously-issued building permits for areas subject to mandatory evacuation orders and evacuation warnings; 7) triggered emergency procurement and expenditure provisions under Chapter 2.16; and 8) permits bed and breakfasts and hotels and motels to allow stays beyond 30 days; and WHEREAS, on January 10, 2025, the Executive Director of Emergency Services issued a Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Revised Executive Order”) restating the declaration of local emergency, and 1) prohibiting landscaping activities in areas subject to a Mandatory Evacuation Order; and 2) making other minor amendments and clarifications; and
WHEREAS, on January 10, 2025, at a Special Meeting of the City Council, the Council adopted Resolution Number 11639 (CCS) to: 1) ratify the Executive Order and Revised Executive Order; 2) proclaim a local emergency throughout the City; and 3) authorize the Executive Director of Emergency Services to take all actions related to the Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 898 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 5 protection of life and property that are reasonably necessary to respond to the local emergency caused by the Regional Fires; and
WHEREAS, on January 10, 2025, the City Council further directed staff to supplement the Executive Order to: 1) relax permitting requirements for small businesses and nonprofit organizations that were operating in Los Angeles County and have been impacted by the Regional Fires: 2) prioritize any necessary permitting and inspections for displaced schools, early childhood education centers, small businesses and nonprofit organizations, and clarify that strict adherence to building codes shall not be required on this temporary basis unless the provision directly affects health and safety; 3) grant priority on the City’s below market housing waitlist to households displaced by the Regional Fires with minor children currently attending SMMUSD schools or that work in the City at least 25 hours per week; 4) prohibit open flames during times of red flag warnings; and 5) make other minor clarifications and corrections; and WHEREAS, on January 14, 2025, the Executive Director of Emergency Services issued a Second Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Second Revised Executive Order”) to implement Council direction; and
WHEREAS, as of January 30, 2025, the Regional Fires destroyed more than 17,000 structures; and
WHEREAS, on January 31, 2025, the Executive Director of Emergency Services issued a First Supplement to the Executive Order to: 1) authorize schools with existing Conditional Use Permits in residential zones to expand to accommodate students from other campuses operated by the existing school displaced by the Regional Fires; 2) waive license fees for outdoor dining areas, sidewalk dining, parklets, and pier deck extended Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 899 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 6 dining for the month of February 2025; 3) authorize the Finance Department to grant hotels and motels a 30-day extension for payment of Transient Occupancy Taxes and the Tourism Marketing District Assessment due for December 2024; and 4) expanding criteria for Tier 1 priority on the City’s below market housing waitlist for income-qualifying households impacted by the Regional Fires; and
WHEREAS, on February 25, 2025, the City Council adopted Resolution Number 11645 (CCS), ratifying the Executive Order, the Revised Executive Order, the Second Revised Executive Order, and the First Supplement to the Executive Order; and WHEREAS, on February 25, the City Council further gave direction to phase out suspension of enforcement of Santa Monica Municipal Code Chapter 6.20, HomeSharing and Vacation Rentals, enforcement of Santa Monica Municipal Code 6.22.050,
6.22.060, and 6.22.070, Residential Leasing Regulations, and to clarify tenant protections for persons displaced that obtained housing during the suspension; and WHEREAS, on March 19, 2025, the Interim Executive Director of Emergency Services issued a Second Supplement to the Second Revised Executive Order to: 1) broaden the Order’s provisions to include schools and Child Care and Early Education Facilities that were expanding to accommodate students displaced by the Regional Fires; 2) terminate the portion of Section 3 of the Second Revised Emergency Order suspending enforcement of the provisions of the City’s Home-Sharing Ordinance as of April 18, 2025, and clarify that the resumption of enforcement does not require the eviction of any person occupying a rental unit pursuant to Section 3 of the Second Revised Emergency Order or terminate any tenant rights that any such person may have acquired; 3) expand the 30-day extension for payment of TOT and TMD to any request made on or before April 30, 2025; and 4) suspend certain provisions of Santa Monica Municipal Code 9.31.280, Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 900 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 7 Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales and service through April 30, 2025; and
WHEREAS, on March 28, 2025, the Interim Executive Director of Emergency Services issued a Third Supplement to the Second Revised Executive Order to discount license fees by 50% for outdoor dining areas, sidewalk dining, parklets, and pier deck extended dining for the month of March 2025; and
WHEREAS, unexpected traffic impacts may occur as a result of schools that have been displaced by the Regional Fires operating or expanding within the City as a temporary use, which may be alleviated through a Parking and Loading Operations Plan; and
WHEREAS, schools displaced by the Regional Fires that expect to operate within the City’s Downtown will experience unexpected costs arising out of parking fees for the City’s Downtown parking structure; and
WHEREAS, providing a discounted group rate to displaced schools will alleviate some unexpected financial burden while supporting use of the City’s Downtown parking structures; and
WHEREAS, in the months that have passed since the Regional Fires, persons displaced have had opportunity to find housing accommodations on a semi-permanent or permanent basis; and
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 901 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 8 WHEREAS, expiration of emergency measures allowing modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests will allow for normal parking operations to resume; and WHEREAS, on April 16, 2025, the Interim Executive Director of Emergency Services issued a Fourth Supplement to the Second Revised Executive Order to: 1) require schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, to submit a Parking and Loading Operations Plan to the City; 2) provide a pro rata monthly Group Discount Rate for the City’s Downtown Parking Structures for the 35 remaining days of the Spring 2025 Semester for schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, that are located within the Downtown; and 3) terminate modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests permits set forth in Section 2 of the Second Revised Emergency Order as of April 30, 2025; and
WHEREAS, on April 22, 2025, the City Council adopted Resolution Number 11659 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First Supplement to the Executive Order, and ratifying the Second, Third, and Fourth Supplements to the Executive Order; and
WHEREAS, on April 22, 2025, the Council provided further direction to extend the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 902 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 9 allow for additional flexibility in alcohol sales and service through April 30, 2025, for an additional 60 days; and
WHEREAS, on April 29, 2025, the Executive Director of Emergency Services issued a Fifth Supplement to the Second Revised Executive Order to implement Council direction from April 22 and extend the provisions of Section 5 to the Second Supplement through June 30, 2025; and
WHEREAS, on June 10, 2025, the City Council adopted Resolution Number 11668 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third and Fourth Supplements to the Executive Order, and ratifying the Fifth Supplement to the Executive Order; and
WHEREAS, on June 26, 2025, the Executive Director of Emergency Services issued a Sixth Supplement to the Second Revised Executive Order to: 1) allow Child Care and Early Education Facilities displaced by the Regional Fires to operate within the City’s nonresidential zones as a permitted use in existing buildings that were previously used as Child Care and Early Education Facilities; and 2) extend the provisions of Section 5 of the Second Supplement to August 31, 2025; and
WHEREAS, on July 29, 2025, the City Council adopted Resolution Number 11685 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, and Fifth Supplements to the Executive Order, and ratifying the Sixth Supplement to the Executive Order; and WHEREAS, on August 28, 2025, the Executive Director of Emergency Services issued a Seventh Supplement to the Second Revised Executive Order to: 1) authorize the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 903 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 10 to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses; and 2) extend the provisions of Section 5 of the Second Supplement to October 31, 2025; and
WHEREAS, on September 9, 2025, the City Council adopted Resolution Number 11696 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth and Sixth Supplements to the Executive Order, and ratifying the Seventh Supplement to the Executive Order; and WHEREAS, on October 23, 2025, the Executive Director of Emergency Services issued an Eighth Supplement to the Second Revised Executive Order to extend the provisions of Section 5 of the Second Supplement to December 31, 2025; and WHEREAS, on October 28, 2025, the City Council adopted Resolution Number 11713 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth, Sixth, and Seventh Supplements to the Executive Order, and ratifying the Eighth Supplement to the Executive Order; and WHEREAS, on December 16, 2025, the City Council adopted Resolution Number 11727 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth, Sixth, Seventh, and Eighth Supplements to the Executive Order; and
WHEREAS, although the immediate fire danger has subsided, the City has continued to receive requests to accommodate individuals, schools, and businesses displaced by the Regional Fires; and
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 904 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 11 WHEREAS, the City has received additional inquiries from displaced schools, early childhood education centers, and small businesses seeking flexibility from regulations in order to temporarily or permanently relocate to the City; and WHEREAS, allowing for this additional flexibility will support displaced residents, students and businesses in their recovery from the Regional Fires while further supporting the City’s economic recovery efforts; and
WHEREAS, local businesses have reported that they are still experiencing economic impacts from the Regional Fires and face resulting economic uncertainty; and WHEREAS, allowing the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses, will provide additional opportunity for displaced businesses and economic recovery for local businesses; and
WHEREAS, after an initial higher volume of requests for Tier 1 priority due to impacts from the regional fires on the City's Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist, requests have dropped significantly in recent months, with only one request for Tier 1 priority submitted to the Housing Division from October 1 through October 22, 2025, evidencing demand for the preference has largely subsided; and
WHEREAS, the 6-month period of Tier 1 priority on the Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist that was granted under the Second Revised Executive Order to eligible persons impacted by the Regional Fires has Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 905 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 12 expired for initial persons that were awarded the priority and will expire soon for others; and
WHEREAS, as the Emergency Housing Voucher (EHV) program sunsets and federal funding winds down, it is vital for the Housing Authority to focus its limited voucher program staff capacity on maintaining housing stability for current voucher program participants, particularly those transitioning from the EHV program into the Section 8 Housing Choice Voucher program to prevent displacement and homelessness; and WHEREAS, in adopting SMMC Chapter 6.22 on September 9, 2020, the City Council found and declared that “the City’s rental housing stock should, to the extent possible, be preserved for use as long-term permanent housing”; and WHEREAS, the temporary suspension of enforcement of SMMC Chapter 6.22, Residential Leasing Requirements, as to persons who rent to persons displaced by the Regional Fires pursuant to Section 3 of the Second Revised Executive Order expanded housing opportunities for displaced persons in need of medium-term and furnished housing who were unable to return to their homes for months after the fires; and WHEREAS, the demand for new medium-term furnished housing units among displaced persons has substantially decreased, as many households now have long term plans in place for rebuilding or permanently relocating, and the demand for permanent housing in Santa Monica remains high; and
WHEREAS, temporary housing, with lease terms of more than thirty days but less than a year, typically has a higher monthly price point than rental housing subject to annual leases, thereby increasing market pressure on rents and diminishing the supply of units available for permanent residence; and
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 906 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 13 WHEREAS, further extending the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and
9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales, will provide additional opportunities for economic recovery for local businesses.
NOW, THEREFORE, I, Oliver Chi, the Director of Emergency Services for the City of Santa Monica, do hereby issue the following supplemental order to become effective immediately, subject to ratification by the Council as may be required by the Municipal Code.
IT HEREBY ORDERED THAT:
1. The Second Revised Executive Order shall continue in full force and effect, except as modified and supplemented by the First, Second, Third, Fourth, Fifth, Sixth, Seventh, and Eighth Supplements, and this Ninth Supplement.
2. Section 3 of the Second Revised Executive Order, as modified and supplemented by the Second Supplement, is hereby amended to read as follows:
Enforcement of the provisions of Santa Monica Municipal Code Chapter 6.20, Home-Sharing and Vacation Rentals, as against persons who provide alternative accommodations within the City of Santa Monica to persons displaced by the Regional Fires is, suspended through and including April 18, 2025; and enforcement of Santa Monica Municipal Code 6.22.050, 6.22.060, and 6.22.070, Residential Leasing Regulations, as against persons who (a) provide alternative accommodations within the Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 907 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 14 City of Santa Monica to natural persons displaced by the Regional Fire whose tenancies began on or before December 31, 2025 and (b) sublease no more than one rental housing unit within the City, is suspended. All lease agreements for new tenancies entered into on or after January 1, 2026, shall comply with all requirements of Chapter 6.22. This timelimited suspension of enforcement is consistent with Council direction; since it is the intent to accommodate those affected beyond the immediate fire emergency threat, City Staff are also directed to prepare and offer for Council approval solutions that would allow those displaced to remain in their alternative accommodations, whether furnished or not, residence or not, including with a lease for a term less than one year to remain for six to twelve months (or longer, as may be directed by Council) following their displacement.
This section does not provide a basis for a short-term rental host, home-sharing host, or landlord to do any of the following: (a) unilaterally terminate a short-term rental agreement, home-share agreement, or rental housing agreement before the end of the agreed upon rental period; (b) evict or otherwise compel a person who has established a tenancy to vacate a rental unit without judicial process; or (c) terminate a tenancy that is subject to Article XVIII or XXIII of the City Charter, or Section 1946.2 of the Civil Code, for a reason other than one provided by the applicable just cause eviction law. This section also does not require a short-term rental host, home-share host, or landlord to cease renting to a person occupying the rental unit on or before April 19, 2025, so long as the rental period is for at least 31 consecutive days; nor does this section require a landlord to cease renting to any tenant a rental housing unit that is not the tenant’s primary residence, is furnished, and/or is subject to a lease of less than one year, so long as the tenant is a person displaced by the Regional Fires who began renting the rental housing unit on or before December 31, 2025.
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 908 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 15 3. The provisions of Section 5 of the Second Supplement are hereby extended and shall terminate on February 28, 2026, at 11:59 p.m., unless extended or expressly superseded by a further order of the Director of Emergency Services.
ADOPTED this 19th day of December 2025.
ATTEST:
___________________ By: _____________________________
NIKIMA NEWSOME OLIVER CHI
City Clerk City Manager
Director of Emergency Services
APPROVED AS TO FORM:
______________________
HEIDI VON TONGELN
Interim City Attorney
Docusign Envelope ID: 9283C865-37AA-4A0D-91A2-56E96D9205FB
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Packet Pg. 909 Attachment: M-Ninth Supplement to Proclamation-Local Emergency-2025 Palisades Fire December 19, 2025 (7388 : Fire Emergency Order 1 CITY OF SANTA MONICA
TENTH SUPPLEMENT TO THE EXECUTIVE ORDER OF THE DIRECTOR OF
EMERGENCY SERVICES DECLARING THE EXISTENCE OF A LOCAL
EMERGENCY
WHEREAS, a life-threatening, destructive, widespread windstorm and extreme fire weather system commenced on Tuesday, January 7, 2025, impacting the Los Angeles metropolitan area, including the City of Santa Monica and the County and City of Los Angeles, and threatening life and safety, public and private property and structures, and other critical infrastructure; and
WHEREAS, the National Weather Service advised that damaging N/NE gusts of 50-80 mph, as well as isolated 80-100 mph gusts in the mountains and foothills, were expected across most of Los Angeles metropolitan area; and WHEREAS, commencing on January 7, 2025, the Palisades Fire and other major fires, including, but not limited to, the Eaton Fire located primarily in Altadena (Regional Fires) ignited in Los Angeles County, burning well over 40,000 acres; and WHEREAS, high winds, low humidity, and dry conditions increased the intensity and spread of the Regional Fires, causing imminent threats to life with Red Flag warnings in effect in Los Angeles and Ventura Counties and widespread dangerous windstorm conditions with damaging wind gusts of 50 to 80 mph were forecasted; and WHEREAS, the Regional Fires and windstorm conditions threatened structures, homes, and critical infrastructure, including power lines and water tanks, prompted evacuation orders and warnings, and impacted the access route to the Regional Fires communities; and
WHEREAS, along with the windstorm, the Regional Fires spread across more than 40,000 acres, damaging or destroying structures and prompting evacuation orders and Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 910 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 2 road closures, and continued to threaten structures, homes, and critical infrastructure over multiple days; and
WHEREAS, the National Weather Service issued a rare Particularly Dangerous Situation (PDS) Red Flag warning for 19 million people in the Los Angeles metropolitan area, which means there is a high risk of extreme fire behavior and very rapid growth due to dangerously high winds, low humidity, and extremely dry vegetation; and WHEREAS, this weather system caused extreme conditions such as power outages, damage to power poles, fallen trees, and extreme fire behavior, impacting significant transportation arteries, requiring long-term repair and threatening the integrity of the critical infrastructure; and
WHEREAS, based upon the above events, by reason of its magnitude, and the need to protect the health, safety, and welfare of the residents and property of the City of Santa Monica, and aid in the assistance of those affected by the Regional Fires, these events created conditions likely to become beyond the control of the normal services, personnel, equipment, and facilities of the regularly constituted branches and departments of the City Government, and that such emergency conditions require the mobilization of mutual aid resources and the ability to coordinate a multiagency response; and
WHEREAS, on January 7, 2025, as a result of the widespread windstorm and extreme fire weather, the Los Angeles County Board of Supervisors proclaimed a Local Emergency in the County of Los Angeles; and
WHEREAS, on January 7, 2025, the Mayor of the City of Los Angeles declared the existence of a Local Emergency throughout the City of Los Angeles to take such steps that are necessary for the protection of life and property; and Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 911 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 3 WHEREAS, on January 7, 2025, the Governor of the State of California declared a state of emergency to make additional resources available; and WHEREAS, the City of Santa Monica (the City) has a population of over 90,000 residents, is a major tourist destination, has two major hospitals and an airport within its jurisdiction, is a significant destination for business travel, and is adjacent to and contiguous on three sides with the City of Los Angeles, resulting in high volumes of residents and visitors traveling within and across the City’s borders; and WHEREAS, on January 7, 2025, the City activated its Emergency Operations Center to support ongoing emergency actions in response to the spread of the Regional Fires; and
WHEREAS, the City intends to continue to take bold and aggressive actions to protect the public health and safety during this local and state emergency; and WHEREAS, the above-described events created conditions of extreme peril and such conditions are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat; and
WHEREAS, the Regional Fires have displaced many thousands of residents who are in need of temporary housing; and
WHEREAS, on January 8, 2025, the City Manager, in his role as the Director of Emergency Services, (“Executive Director of Emergency Services”) issued an Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Executive Order”) declaring a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability an effective response to the Regional Fires; and
Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 912 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 4 WHEREAS, pursuant to the Executive Order, the Executive Director of Emergency Services further: 1) relaxed permitting requirements for schools and child care and early education facilities that were displaced; 2) suspended preferential parking rules and enforcement of Santa Monica Municipal Code Chapters 6.20, Home-Sharing and Vacation Rentals, and 6.22, Residential Leasing Regulations for persons who provide alternative accommodations to persons displaced; 3) triggered prohibitions on pricegouging under the Santa Monica Municipal Code and the California Penal Code; 4) prohibited landlords from evicting residential tenants based on the presence of unauthorized occupants or pets, if the occupant or pet has been displaced due to an evacuation order or poor air quality conditions; 5) imposed a curfew in all areas subject to a mandatory evacuation order; 6) suspended all previously-issued building permits for areas subject to mandatory evacuation orders and evacuation warnings; 7) triggered emergency procurement and expenditure provisions under Chapter 2.16; and 8) permits bed and breakfasts and hotels and motels to allow stays beyond 30 days; and WHEREAS, on January 10, 2025, the Executive Director of Emergency Services issued a Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Revised Executive Order”) restating the declaration of local emergency, and 1) prohibiting landscaping activities in areas subject to a Mandatory Evacuation Order; and 2) making other minor amendments and clarifications; and
WHEREAS, on January 10, 2025, at a Special Meeting of the City Council, the Council adopted Resolution Number 11639 (CCS) to: 1) ratify the Executive Order and Revised Executive Order; 2) proclaim a local emergency throughout the City; and 3) authorize the Executive Director of Emergency Services to take all actions related to the Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 913 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 5 protection of life and property that are reasonably necessary to respond to the local emergency caused by the Regional Fires; and
WHEREAS, on January 10, 2025, the City Council further directed staff to supplement the Executive Order to: 1) relax permitting requirements for small businesses and nonprofit organizations that were operating in Los Angeles County and have been impacted by the Regional Fires: 2) prioritize any necessary permitting and inspections for displaced schools, early childhood education centers, small businesses and nonprofit organizations, and clarify that strict adherence to building codes shall not be required on this temporary basis unless the provision directly affects health and safety; 3) grant priority on the City’s below market housing waitlist to households displaced by the Regional Fires with minor children currently attending SMMUSD schools or that work in the City at least 25 hours per week; 4) prohibit open flames during times of red flag warnings; and 5) make other minor clarifications and corrections; and WHEREAS, on January 14, 2025, the Executive Director of Emergency Services issued a Second Revised Executive Order of the Director of Emergency Services of the City of Santa Monica Declaring the Existence of a Local Emergency (“Second Revised Executive Order”) to implement Council direction; and
WHEREAS, as of January 30, 2025, the Regional Fires destroyed more than 17,000 structures; and
WHEREAS, on January 31, 2025, the Executive Director of Emergency Services issued a First Supplement to the Executive Order to: 1) authorize schools with existing Conditional Use Permits in residential zones to expand to accommodate students from other campuses operated by the existing school displaced by the Regional Fires; 2) waive license fees for outdoor dining areas, sidewalk dining, parklets, and pier deck extended Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 914 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 6 dining for the month of February 2025; 3) authorize the Finance Department to grant hotels and motels a 30-day extension for payment of Transient Occupancy Taxes and the Tourism Marketing District Assessment due for December 2024; and 4) expanding criteria for Tier 1 priority on the City’s below market housing waitlist for income-qualifying households impacted by the Regional Fires; and
WHEREAS, on February 25, 2025, the City Council adopted Resolution Number 11645 (CCS), ratifying the Executive Order, the Revised Executive Order, the Second Revised Executive Order, and the First Supplement to the Executive Order; and WHEREAS, on February 25, the City Council further gave direction to phase out suspension of enforcement of Santa Monica Municipal Code Chapter 6.20, HomeSharing and Vacation Rentals, enforcement of Santa Monica Municipal Code 6.22.050,
6.22.060, and 6.22.070, Residential Leasing Regulations, and to clarify tenant protections for persons displaced that obtained housing during the suspension; and WHEREAS, on March 19, 2025, the Interim Executive Director of Emergency Services issued a Second Supplement to the Second Revised Executive Order to: 1) broaden the Order’s provisions to include schools and Child Care and Early Education Facilities that were expanding to accommodate students displaced by the Regional Fires; 2) terminate the portion of Section 3 of the Second Revised Emergency Order suspending enforcement of the provisions of the City’s Home-Sharing Ordinance as of April 18, 2025, and clarify that the resumption of enforcement does not require the eviction of any person occupying a rental unit pursuant to Section 3 of the Second Revised Emergency Order or terminate any tenant rights that any such person may have acquired; 3) expand the 30-day extension for payment of TOT and TMD to any request made on or before April 30, 2025; and 4) suspend certain provisions of Santa Monica Municipal Code 9.31.280, Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 915 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 7 Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales and service through April 30, 2025; and
WHEREAS, on March 28, 2025, the Interim Executive Director of Emergency Services issued a Third Supplement to the Second Revised Executive Order to discount license fees by 50% for outdoor dining areas, sidewalk dining, parklets, and pier deck extended dining for the month of March 2025; and
WHEREAS, unexpected traffic impacts may occur as a result of schools that have been displaced by the Regional Fires operating or expanding within the City as a temporary use, which may be alleviated through a Parking and Loading Operations Plan; and
WHEREAS, schools displaced by the Regional Fires that expect to operate within the City’s Downtown will experience unexpected costs arising out of parking fees for the City’s Downtown parking structure; and
WHEREAS, providing a discounted group rate to displaced schools will alleviate some unexpected financial burden while supporting use of the City’s Downtown parking structures; and
WHEREAS, in the months that have passed since the Regional Fires, persons displaced have had opportunity to find housing accommodations on a semi-permanent or permanent basis; and
Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 916 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 8 WHEREAS, expiration of emergency measures allowing modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests will allow for normal parking operations to resume; and WHEREAS, on April 16, 2025, the Interim Executive Director of Emergency Services issued a Fourth Supplement to the Second Revised Executive Order to: 1) require schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, to submit a Parking and Loading Operations Plan to the City; 2) provide a pro rata monthly Group Discount Rate for the City’s Downtown Parking Structures for the 35 remaining days of the Spring 2025 Semester for schools operating or expanding under Section 1 to the Second Revised Emergency Order, as amended, that are located within the Downtown; and 3) terminate modifications to parking regulations for Temporary Preferential parking permits or 30 day Overnight Beach Residents & Guests permits set forth in Section 2 of the Second Revised Emergency Order as of April 30, 2025; and
WHEREAS, on April 22, 2025, the City Council adopted Resolution Number 11659 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First Supplement to the Executive Order, and ratifying the Second, Third, and Fourth Supplements to the Executive Order; and
WHEREAS, on April 22, 2025, the Council provided further direction to extend the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and 9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 917 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 9 allow for additional flexibility in alcohol sales and service through April 30, 2025, for an additional 60 days; and
WHEREAS, on April 29, 2025, the Executive Director of Emergency Services issued a Fifth Supplement to the Second Revised Executive Order to implement Council direction from April 22 and extend the provisions of Section 5 to the Second Supplement through June 30, 2025; and
WHEREAS, on June 10, 2025, the City Council adopted Resolution Number 11668 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third and Fourth Supplements to the Executive Order, and ratifying the Fifth Supplement to the Executive Order; and
WHEREAS, on June 26, 2025, the Executive Director of Emergency Services issued a Sixth Supplement to the Second Revised Executive Order to: 1) allow Child Care and Early Education Facilities displaced by the Regional Fires to operate within the City’s nonresidential zones as a permitted use in existing buildings that were previously used as Child Care and Early Education Facilities; and 2) extend the provisions of Section 5 of the Second Supplement to August 31, 2025; and
WHEREAS, on July 29, 2025, the City Council adopted Resolution Number 11685 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, and Fifth Supplements to the Executive Order, and ratifying the Sixth Supplement to the Executive Order; and WHEREAS, on August 28, 2025, the Executive Director of Emergency Services issued a Seventh Supplement to the Second Revised Executive Order to: 1) authorize the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 918 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 10 to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses; and 2) extend the provisions of Section 5 of the Second Supplement to October 31, 2025; and
WHEREAS, on September 9, 2025, the City Council adopted Resolution Number 11696 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth and Sixth Supplements to the Executive Order, and ratifying the Seventh Supplement to the Executive Order; and WHEREAS, on October 23, 2025, the Executive Director of Emergency Services issued an Eighth Supplement to the Second Revised Executive Order to extend the provisions of Section 5 of the Second Supplement to December 31, 2025; and WHEREAS, on October 28, 2025, the City Council adopted Resolution Number 11713 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth, Sixth and Seventh Supplements to the Executive Order, and ratifying the Eighth Supplement to the Executive Order; and WHEREAS, on December 16, 2025, the City Council adopted Resolution Number 11727 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth, Sixth, Seventh, and Eighth Supplements to the Executive Order; and
WHEREAS, on December 19, 2025, the Executive Director of Emergency Services issued an Ninth Supplement to the Second Revised Executive Order to: 1) revise the provisions of the Section 3 of the Second Revised Executive Order, as modified by the Second Supplement, to provide for the commencement of enforcement of SMMC sections 6.22.050, 6.22.060, and 6.22.070 for lease agreements or new tenancies Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 919 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 11 entered into on or after January 1, 2026; and 2) extend the provisions of Section 5 of the Second Supplement to February 28, 2026; and
WHEREAS, on February 10, 2026, the City Council adopted Resolution Number 11737 (CCS), re-ratifying the Executive Order, the First and Second Revised Executive Order, and the First, Second, Third, Fourth, Fifth, Sixth, Seventh, and Eighth Supplements to the Executive Order and ratifying the Ninth Supplement to the Executive Order; and
WHEREAS, although the immediate fire danger has subsided, the City has continued to receive requests to accommodate individuals, schools, and businesses displaced by the Regional Fires; and
WHEREAS, the City has received additional inquiries from displaced schools, early childhood education centers, and small businesses seeking flexibility from regulations in order to temporarily or permanently relocate to the City; and WHEREAS, allowing for this additional flexibility will support displaced residents, students and businesses in their recovery from the Regional Fires while further supporting the City’s economic recovery efforts; and
WHEREAS, local businesses have reported that they are still experiencing economic impacts from the Regional Fires and face resulting economic uncertainty; and WHEREAS, allowing the Director of the Community Development Department, or designee, to issue Temporary Use Permits for temporary uses that are supportive of economic recovery or to support businesses that were operating within Los Angeles County but displaced by the Regional Fires, which the Director has determined will be compatible with the purposes of the district and surrounding land uses, will provide Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 920 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 12 additional opportunity for displaced businesses and economic recovery for local businesses; and
WHEREAS, after an initial higher volume of requests for Tier 1 priority due to impacts from the regional fires on the City's Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist, requests have dropped significantly in recent months, with only one request for Tier 1 priority submitted to the Housing Division from October 1 through October 22, 2025, evidencing demand for the preference has largely subsided; and
WHEREAS, the 6-month period of Tier 1 priority on the Below Market Housing waitlist and the Santa Monica Housing Authority’s waitlist that was granted under the Second Revised Executive Order to eligible persons impacted by the Regional Fires has expired for initial persons that were awarded the priority and will expire soon for others; and
WHEREAS, as the Emergency Housing Voucher (EHV) program sunsets and federal funding winds down, it is vital for the Housing Authority to focus its limited voucher program staff capacity on maintaining housing stability for current voucher program participants, particularly those transitioning from the EHV program into the Section 8 Housing Choice Voucher program to prevent displacement and homelessness; and WHEREAS, in adopting SMMC Chapter 6.22 on September 9, 2020, the City Council found and declared that, “the City’s rental housing stock should, to the extent possible, be preserved for use as long-term permanent housing”; and WHEREAS, the temporary suspension of enforcement of SMMC Chapter 6.22, Residential Leasing Requirements, as to persons who rent to persons displaced by the Regional Fires pursuant to Section 3 of the Second Revised Executive Order expanded Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 921 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 13 housing opportunities for displaced persons in need of medium-term and furnished housing who were unable to return to their homes for months after the fires; and WHEREAS, the demand for new medium-term furnished housing units among displaced persons has substantially decreased, as many households now have long term plans in place for rebuilding or permanently relocating, and the demand for permanent housing in Santa Monica remains high; and
WHEREAS, temporary housing, with lease terms of more than thirty days but less than a year, typically has a higher monthly price point than rental housing subject to annual leases, thereby increasing market pressure on rents and diminishing the supply of units available for permanent residence; and
WHEREAS, further extending the provisions of Section 5 of the Second Supplement to the Emergency Order, which suspended certain provisions of Santa Monica Municipal Code 9.31.280, Restaurants, Limited-Service and Take-Out Only, and
9.31.290, Restaurants with Entertainment, and specific alcohol-related standards and conditions of approval established pursuant to any Alcohol Determination, Alcohol Exemption, or Conditional Use Permit entitlements to allow for additional flexibility in alcohol sales, will provide additional opportunities for economic recovery for local businesses.
NOW, THEREFORE, I, Oliver Chi, the Director of Emergency Services for the City of Santa Monica, do hereby issue the following supplemental order to become effective immediately, subject to ratification by the Council as may be required by the Municipal Code.
Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 922 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order 14 IT IS HEREBY ORDERED THAT:
1. The Second Revised Executive Order shall continue in full force and effect, except as modified and supplemented by the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, and Ninth Supplements, and this Tenth Supplement.
2. The provisions of Section 5 of the Second Supplement are hereby extended and shall terminate on April 30, 2026, at 11:59 p.m., unless extended or expressly superseded by a further order of the Director of Emergency Services. Notwithstanding the effective date of this Supplement, the provisions of this Section shall be effective as of March 1, 2026.
ADOPTED this 18th day of March 2026.
ATTEST:
__________________________ By: _____________________________
DENISE ANDERSON-WARREN OLIVER CHI
Interim City Clerk City Manager
Director of Emergency Services
APPROVED AS TO FORM:
______________________
HEIDI VON TONGELN
Interim City Attorney
Docusign Envelope ID: 53AAC95A-0945-414F-95EE-953E6BCB1DB3
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Packet Pg. 923 Attachment: N-Tenth Supplement to Proclamation-Local Emergency-2025 Palisades Fire March 18, 2026 (7388 : Fire Emergency Order City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.G
1 of 3
To: Mayor and City Council
From: Heidi Von Tongeln, Interim City Attorney, City Attorney's Office, Administration
Subject: Adoption of Resolution Ratifying Homelessness Emergency Proclamation Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Adopt the proposed resolution ratifying the 2025 Proclamation of the City Council of the City of Santa Monica Declaring a Local Emergency on Homelessness.
Executive Summary
On March 11, 2025, in accordance with Santa Monica Municipal Code (SMMC) Chapter
2.16, the City Council adopted the 2025 Proclamation of the City Council of the City of Santa Monica Declaring a Local Emergency on Homelessness (the “2025 Proclamation”).
Government Code Section 8630 requires local governmental authorities to renew a local emergency every 60 days until the governing body terminates the local emergency. Accordingly, this staff report recommends adopting the attached Resolution ratifying the 2025 Proclamation. (Attachment A).
Discussion
On February 14, 2023, the City Council adopted a Proclamation Declaring a Local Emergency on Homelessness due to the homelessness crisis in the region, which continues to grow, leading to deplorable living conditions and illness and deaths of
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unhoused and unsheltered persons in the region. On May 14, 2024, the City Council adopted a further Proclamation Declaring a Local Emergency on Homelessness (“the 2024 Proclamation”), which was utilized to advance several key initiatives related to homelessness.
On March 11, 2025, because the conditions that existed at the time the 2024 Proclamation was adopted persist, the City Council adopted the 2025 Proclamation, which extends the local emergency on homelessness through December 31, 2026. The 2025 Proclamation allows the City to expeditiously increase City services and programs to address and prevent homelessness. Specifically, the extension enables the City to, among other things, receive additional county, state, and federal resources to address the homelessness crisis, prevent rental price gouging, streamline and expedite certain City processes, leverage City resources to support people who are experiencing homelessness or at risk of experiencing homelessness or to address local impacts of homelessness, and allows the City Manager to take all available actions authorized under Santa Monica Municipal Code Chapter 2.16. On April 22, 2025, the City Council adopted Resolution Number 11658 (CCS), ratifying the 2025 Proclamation. On June 10, 2025, the City Council adopted Resolution Number 11669 (CCS), on July 29, 2025, the City Council adopted Resolution Number 11686 (CCS), on September 9, 2025, the City Council adopted Resolution Number 11697 (CCS), on October 28, 2025, the City Council adopted Resolution Number 11712 (CCS), on December 16, 2025, the City Council adopted Resolution Number 11726 (CCS), and on February 10, 2026, the City Council adopted Resolution Number 11738 (CCS) re-ratifying the 2025 Proclamation.
Thus far in FY 2025-26, the Proclamation has facilitated rapid progress on a number of priority initiatives aimed directly at addressing homelessness, notably including expansion of the City’s C3 outreach teams, expansion of Right to Counsel services, and a new housing retention/bridge financial assistance program. Staff anticipates ongoing near-term use of the Proclamation to implement additional activities contemplated in the Realignment Plan as well as to efficiently operationalize Measure A funds.
Staff now recommends that Council adopt the attached resolution re-ratifying the 2025 Proclamation declaring the existence of a local emergency in the City of Santa Monica and authorizing specified actions in response to that local emergency.
Environmental Review
The 2025 Proclamation Declaring a Local Emergency on Homelessness would have no effect on the environment, and therefore, is categorically exempt from CEQA pursuant
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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.” Fiscal Impacts
None.
Prepared By: Heidi Von Tongeln, Interim City Attorney
Approved Forwarded to Council
Attachments:
A. Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26
B. 2025 Proclamation Declaring Local Emergency on Homelessness C. Written Comments
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Packet Pg. 926
1 City Council Meeting: March 24, 2026 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)
AN EMERGENCY RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA RATIFYING THE 2025 PROCLAMATION OF THE
CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING A LOCAL
EMERGENCY ON HOMELESSNESS
WHEREAS, Santa Monica Municipal Code Chapter 2.16 empowers the City Manager, as the Director of Emergency Services (“Director”), to request that the City Council proclaim the existence or threatened existence of a local emergency if the City Council is in session; and
WHEREAS, on February 14, 2023, the City adopted a Proclamation Declaring a Local Emergency on Homelessness due to the homelessness crisis in the region, which continues to grow, leading to deplorable living conditions and illness and deaths of unhoused and unsheltered persons in the region, which was extended to May 31, 2024; and
WHEREAS, on May 14, 2024 the City adopted a further Proclamation Declaring a Local Emergency on Homelessness (the “2024 Proclamation”), which was utilized to advance several key initiatives related to homelessness; and WHEREAS, based on the 2024 Point-In-Time Homeless Count (“2024 PITC”) data, there were 75,312 people experiencing homeless in Los Angeles County; and WHEREAS, based on the 2024 PITC data for Service Planning Area 5 (SPA 5), the SPA Santa Monica is in, there were 5,383 people experiencing homelessness; and WHEREAS, based on the 2024 PITC data, there were 774 people experiencing homelessness in Santa Monica; and
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Packet Pg. 927 Attachment: Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26 (7390 : Homelessness 2 WHEREAS, the Los Angeles County Metropolitan Transportation Authority (Metro) conducted an End of Line Survey in January 2025, and found 39 unhoused persons were unsheltered at the Santa Monica Downtown Metro Station given Metro’s current End of Line policy, which requires deboarding of all passengers and belongings at the end of the line when trains go out of service; and
WHEREAS, according to a U.S. Department of Health and Human Services report published in October 2023, the fastest growing group in the nation’s population of people experiencing homelessness is older adults, composing nearly half of the homeless population nationwide, and a number that is expected to triple by 2030, and older adult homelessness has increased by 25% in the Los Angeles Continuum of Care between 2020 and 2024; and
WHEREAS, a California Statewide Study of People Experiencing Homelessness (CASPEH) found that high housing costs and low income left participants vulnerable to homelessness, and that the most common reason for leaving housing was economic; and WHEREAS, the Los Angeles County’s COVID-19 Eviction Moratorium that protected tenants from eviction who were under 80% of Area Median Income who were unable to pay rent due to the pandemic expired March 31, 2023, and tenants had up to twelve (12) months to repay past due rent owed to avoid risk of eviction; and WHEREAS, the number of eviction lawsuits provided to the Santa Monica City Attorney’s office in 2024 increased by over 28% from the number provided in 2023, with
84.8% of 2024 eviction lawsuits based on nonpayment of rent, suggesting even more tenants at risk of eviction and homelessness than in 2023; and
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Packet Pg. 928 Attachment: Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26 (7390 : Homelessness 3 WHEREAS, on March 11, 2025, because the conditions that existed at the time the 2024 Proclamation was adopted persist, the City Council adopted the 2025 Proclamation of the City Council of the City of Santa Monica Declaring a Local Emergency on Homelessness (the “2025 Proclamation”); and
WHEREAS, the 2025 Proclamation extends the local emergency on homelessness through December 31, 2026, and allows the City to expeditiously increase City services and programs to address and prevent homelessness; and WHEREAS, specifically, the extension of the local emergency effectuated by the 2025 Proclamation enables the City to, among other things, receive additional county, state, and federal resources to address the homelessness crisis, prevent rental price gouging, streamline and expedite certain City processes, leverage City resources to support people who are experiencing homelessness or at risk of experiencing homelessness or to address local impacts of homelessness, and to allow the City Manager to take all available actions authorized under Santa Monica Municipal Code Chapter 2.16; and
WHEREAS, on April 22, 2025, the City Council adopted Resolution Number 11658 (CCS), ratifying the 2025 Proclamation; and
WHEREAS, on June 10. 2025, the City Council adopted Resolution Number 11669 (CCS), on July 29, 2025, the City Council adopted Resolution Number 11686 (CCS), on September 9, 2025, the City Council adopted Resolution Number 11697 (CCS), on October 28, 2025, the City Council adopted Resolution Number 11712 (CCS), on December 16, 2025, the City Council adopted Resolution Number 11726 (CCS), and on
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Packet Pg. 929 Attachment: Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26 (7390 : Homelessness 4 February 10, 2026, the City Council adopted Resolution Number 11738 (CCS) re-ratifying the 2025 Proclamation; and
WHEREAS the findings included in the 2025 Proclamation are included herein as if stated in full.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The 2025 Proclamation of the City Council of the City of Santa Monica Declaring a Local Emergency on Homelessness (“Exhibit A”) is hereby ratified.
SECTION 2. It is hereby proclaimed that a local emergency now exists throughout the City. It is further proclaimed and ordered that during the existence of this local emergency the powers, functions, and duties of the Director of Emergency Services and the emergency organization of this City shall be those prescribed by State law and by the ordinances and resolutions of this City.
SECTION 3. The City Council authorizes the City Manager, in capacity as the Director of Emergency Services, to take all actions related to the protection of life and property that are reasonably necessary to respond to the local emergency.
SECTION 4. The local emergency shall be deemed to continue and exist until December 31, 2026, unless its termination is earlier proclaimed by the City Council. As required by law, the City Council shall review the need to continue the state of emergency every 60 days until this resolution is terminated.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Resolution, or the 2025 Proclamation ratified herein is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall
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Packet Pg. 930 Attachment: Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26 (7390 : Homelessness 5 not affect the validity of the remaining portions of this Resolution or the 2025 Proclamation. The City Council hereby declares that it would have passed this Resolution and the 2025 Proclamation and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
HEIDI VON TONGELN
Interim City Attorney
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Packet Pg. 931 Attachment: Resolution for Ratification of 2025 Proclamation Declaring State of Emergency on Homelessness 03.24.26 (7390 : Homelessness
4.G.b
Packet Pg. 932 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 933 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 934 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 935 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 936 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 937 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 938 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation)
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Packet Pg. 939 Attachment: 2025 Proclamation Declaring Local Emergency on Homelessness (7390 : Homelessness Emergency Proclamation) 1 David Yakobson
From: ALAN MONT <[email protected]>
Sent: Tuesday, March 24, 2026 11:31 AM
To: councilmtgitems
Cc: Oliver Chi; Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya
Subject: Remove Item 4G
EXTERNAL
City Council Members,
Please remove Item 4G from the agenda. A declaration or proclamation on this topic simply restates the obvious and creates additional work for staff without delivering tangible results. This pattern of symbolic actions consumes time and resources that should instead be directed toward real solutions.
Santa Monica’s homelessness crisis must be treated as the top priority. Until the homeless problem is meaningfully addressed, most of the other items on your agenda will have limited impact on residents’ daily lives.
Thank you for your consideration.
Alan Mont
Resident
Item 4-G
March 24 2026
Item 4-G
March 24 2026
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Packet Pg. 940 Attachment: Written Comments (7390 : Homelessness Emergency Proclamation) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.H
1 of 5
To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Award RFP to and Authorize the City Manager to Enter into Agreements with USMD Direct, Inc., Southern California Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group, Inc. for Occupational Medical Testing Program (OMTP) Services for the Human Resources and Finance Departments
Recommended Action
Staff recommends the City Council.
1. Adopt a finding of no significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines
2. Award RFP to USMD Direct Inc., Southern California Permanente Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group Inc. to provide occupational medical testing services for the Human Resources and Finance Departments.
3. Authorize the City Manager to execute an agreement with USMD Direct Inc. in an amount not to exceed $297,000 (including a 15% contingency) for a total amount not to exceed $341,550 over a five-year period, with future year funding contingent on Council budget approval.
4. Authorize the City Manager to execute an agreement with Southern California Permanente Medical Group (Kaiser Permanente) in an amount not to exceed $565,110 (including a 15% contingency) for a total amount not to exceed $649,877 over a five-year period, with future year funding contingent on Council budget approval.
5. Authorize the City Manager to execute an agreement with Pacific Harbor Medical Group Inc. in an amount not to exceed $2,292,900 (including a 15% contingency) for a total amount not to exceed $2,636,835 over a five-year period, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica (City) currently engages two vendors to provide Occupational Medical Testing Program (OMTP) services for current employees and new hires for
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both offsite and onsite service locations. In response to the existing contracts expiring on June 30, 2026, the Human Resources Department is seeking to execute agreements for Occupational Medical Testing Program services. Following the competitive Request for Proposal (RFP) process, staff recommends awarding RFP #464 to three vendors:
USMD Direct Inc., Southern California Permanente Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group Inc.
Pacific Harbor Medical Group Inc. has been selected as the main service provider for the full scope of occupational medical testing services. Southern California Permanente Medical Group (Kaiser Permanente) has been selected as an additional service provider, offering convenient service locations throughout Southern California, to service select new hire preemployment medical testing. USMD Direct Inc., the third highest scoring respondent, has been selected to provide onsite mobile services, which allows active employees to reduce the time away from work while obtaining services.
Awarding to three vendors allows greater flexibility for new hires to visit convenient locations throughout Southern California and allows the City the pivot if one vendor abruptly ceases business operations or terminates our contract in the future, which has previously occurred.
Discussion
The Human Resources and Finance Departments coordinate the OMTP with assistance from operating departments and rely on private medical providers to carry out the testing required by the program. To comply with state and federal regulations, the City is required to provide employees in certain classifications with services such as commercial driver medical examinations, Peace Officer Standards and Training (POST) medical examinations, hazmat physicals, tuberculosis screenings, respirator medical clearance, and various vaccinations. In addition, as part of the OMTP, all job candidates offered employment in physically demanding positions undergo a preemployment physical exam. The City engages in onsite OMTP services such as commercial driver medical examinations, tuberculosis screenings, and various vaccinations to reduce the time employees spend completing the examination, resulting in lower operational burden for employees and the City.
4.H
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3 of 5
On November 24, 2025, staff issued RFP #464 for OMTP services. In response, staff recommends awarding to the three highest scoring vendors: USMD Direct Inc., Southern California Permanente Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group Inc.
Provider Selection
Bidder Recommendation
Best Qualified
Person/Firm
USMD Direct Inc, Southern California Permanente Medical Group (Kaiser Permanente), Pacific Harbor Medical Group Inc.
Evaluation Criteria
(include all that apply)
Compliance with service standards; Consultation services; Cost; Compliance with scope of work; Experience/references
Municipal Code SMMC 2.24.190
RFPs Received
Agile Occupational Medicine, PC Bio-Care, Inc. Southern California Permanente Medical Group
(Kaiser Permanente)
Pacific Harbor Medical Group Inc. USMD Direct, Inc.
RFP Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
11/24/2025
City’s Online
Bidding site:
OpenGov
Santa Monica Daily Press 23 1/12/2026
Justification to Award
Based on the criteria, the evaluation committee recommends awarding RFP 464 to the three highest-scoring respondents: USMD Direct Inc, Southern California Permanente Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group Inc. Pacific Harbor Medical Group Inc., the highest scoring respondent, is recommended as our main service provider who can provide the full scope of occupational medical testing services including fit-4-duty testing. Pacific Harbor Medical Group employs doctors with long-term experience providing occupational medical testing services. Southern California Permanente Medical Group (Kaiser Permanente), the second highest scoring respondent, is recommended as an additional provider offering convenient service locations throughout Southern California to service select new hire preemployment medical testing. USMD Direct Inc., the third highest scoring respondent, is recommended for onsite mobile services for active employees to reduce the time away from work while gaining services. USMD Direct Inc. was the lowest mobile provider with the smallest space needs to service employees onsite. Three vendors provide the full scope of services with greater flexibility for new hires to visit convenient locations throughout Southern California and allow the City the ability to pivot if one vendor ceases business operations or terminates our contract in the future.
4.H
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4 of 5
Environmental Impact
The agreement for occupational medical services is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The agreement would provide administrative services to the City and would not result in physical effects. Therefore, it can be seen with certainty that the contract 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 starting in fiscal year 2026-27 from the Risk Management, Workers' Compensation Fund to award agreements with USMD Direct Inc, Southern California Permanente Medical Group (Kaiser Permanente), and Pacific Harbor Medical Group Inc. to provide occupational medical testing services for the City’s employees and new hires.
Contract Request
Contract
FY 2025-26
Request
Amount
FY 2026-27
Request
Amount
Future Year
Modified
Request Amount
Department
Account #
Total
Contract
Amount
USMD Direct Inc. $0 $68,310 $273,240 74800002.552010 $341,550 Southern
California
Permanente
Medical Group
(Kaiser
Permanente)
$0 $129,975 $519,902 74800002.552010 $649,877
Pacific Harbor
Medical Group Inc. $0 $527,367 $2,109,468 74800002.552010 $2,636,835 Total $0 $725,652 $2,902,611 $3,628,262
Future year funding is contingent on Council budget approval.
4.H
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5 of 5
Prepared By: Jennifer Garcia, Benefits Administrator
Approved Forwarded to Council
Attachments:
A. PHMG Oaks
B. PHMG_Levine Act Form
C. OAKS_INITIATIVE_FORM
D. Kaiser_Levine Act Form
E. USMD Oaks
F. USMD_Levine Act Form
4.H
Packet Pg. 945
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r!.',. rr.-l*r' 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 lnitiative requires the City to provide this notice and information about the lnitiative'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 XXll-Taxpayer Protection. lt 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 lnternal 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 approvalworth more than $25,000 over a 12-month period.
In orderto 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." lf 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'
4.H.a
Packet Pg. 946 Attachment: PHMG Oaks (7463 : Occupational Medical Testing Program (OMTP)) f,..t. l..ahl CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks lnitiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a "public benefit." lf 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:
Pacific Harbor Medical Group
Name(s) of trustees, directors, partners, and officers:
Satish Patel, M.D.
Peter Mikhail. D.O.
Satish Patel, M.D.
Peter Mikhail, D.O.
Joseph Mikhail, M.D.
Paz Eilat, M.D.
Joseph Mikhail, M.D.
Paz Eilat, M.D.
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Peter Mikhail, D.O. 1;1b. Physician/Partner Signature: Date: January 12,2026
FOR CITY USE ONLY:
Bid/PO/Contract # Permit#
Email: peter. [email protected] phone: 310-642-1911
4.H.a
Packet Pg. 947 Attachment: PHMG Oaks (7463 : Occupational Medical Testing Program (OMTP))
4.H.b
Packet Pg. 948 Attachment: PHMG_Levine Act Form [Revision 1] (7463 : Occupational Medical Testing Program (OMTP))
4.H.b
Packet Pg. 949 Attachment: PHMG_Levine Act Form [Revision 1] (7463 : Occupational Medical Testing Program (OMTP))
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.
4.H.c
Packet Pg. 950 Attachment: OAKS_INITIATIVE_FORM [Revision 1] (7463 : Occupational Medical Testing Program (OMTP))
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
4.H.c
Packet Pg. 951 Attachment: OAKS_INITIATIVE_FORM [Revision 1] (7463 : Occupational Medical Testing Program (OMTP))
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4.H.d
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4.H.d
Packet Pg. 956 Attachment: Kaiser_Levine Act Form [Revision 1] (7463 : Occupational Medical Testing Program (OMTP))
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.
4.H.e
Packet Pg. 957 Attachment: USMD Oaks (7463 : Occupational Medical Testing Program (OMTP))
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
4.H.e
Packet Pg. 958 Attachment: USMD Oaks (7463 : Occupational Medical Testing Program (OMTP))
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Packet Pg. 963 Attachment: USMD_Levine Act Form [Revision 1] (7463 : Occupational Medical Testing Program (OMTP)) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.I
1 of 5
To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Maintenance
Subject: Award Bid #4508 to and Authorize the City Manager to enter into an Agreement with Cummins, Inc. for Overhaul, Replacement and Repair of Cummings Engines and Battery Electric Propulsion Systems for the Department of Transportation
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) and a finding of no possibility of significant effects pursuant to Section 15061 (b)(3) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid # 4508 to Cummins Inc. for overhaul, replacement, and repair of Cummins engines and battery electric propulsion systems for the Transportation Department; and
3. Authorize the City Manager to negotiate and execute an agreement with Cummins Inc., in an amount not to exceed $6,148,984, including a 10% contingency, for a five-year period with future year funding contingent on Council budget approval.
Summary
Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation (DOT), operates 195 transit buses across 69 square miles of greater Los Angeles providing an average of 820,000 rides each month. BBB currently operates 159 transit buses fueled by renewable natural gas and powered by Cummins Inc. (Cummins) compressed natural gas (CNG) engines and operates an additional 34 battery electric transit buses (BEBs) with Cummins electric propulsion systems. The Federal Transit Administration sets the useful life of transit buses at 12 years or 500,000 miles and, based on these criteria, 66 of the City’s transit buses are approaching the midpoint of
4.I
Packet Pg. 964
2 of 5
their useful life. Over the useful life of a CNG transit bus, their engines experience normal wear that may require engines to be rebuilt or replaced. Similarly, BEB propulsion system components such as batteries and high-voltage components may require replacement due to degradation.
This bid also includes overhauls and rebuild of diesel engines for Santa Monica Fire Department (SMFD) heavy-duty apparatus. SMFD has 19 heavy duty pumper trucks, ladder trucks, and utility vehicles with diesel engines that require regular repair and overhauls to support their continued operation. Staff recommends that Bid #4508 be awarded to Cummins to provide overhaul, replacement and repair services for transit buses and SMFD apparatus in an amount not to exceed $6,148,984 over a five-year period.
Discussion
Transit bus engine components experience regular wear over their 12-year useful life that may result in the need to replace or repair engine cylinder components and other assorted engine parts. Engine in-chassis overhauls become necessary near the middle of a transit bus’s useful life around six years of age or 250,000 miles to prevent buses from failing in-route, disrupting passenger service and resulting in costly repairs. Inchassis overhaul of engines involves rebuilding existing engines that are approaching the middle of their useful life, restoring the engine to a state similar to that of a new engine. By overhauling engines as they approach mid-life, DOT is better able to control its maintenance costs and reduce service interruptions. For comparison, the cost of a new bus in 2025 was $1,136,360 and the cost of overhauling a CNG engine under this bid is $21,195. Scheduling in-frame engine overhauls allows for work to be done in a timely manner on an as-needed basis throughout the year to reduce transit bus down time.
The award of Bid #4508 to Cummins would allow DOT to enter into an agreement for the replacement of engines that cannot be overhauled due to significant wear or damage. Any engines replaced under this agreement would be replaced by the lowest emission natural gas engines available, minimizing harmful Nitrogen Oxides (NOx) emissions. DOT is committed to the City of Santa Monica’s sustainability goals, currently operating 34 battery electric transit buses, and this agreement would also allow for the replacement of high-voltage powertrain equipment. Electric powertrain
4.I
Packet Pg. 965
3 of 5
components such as traction motors, inverters, and high-voltage batteries may experience failures or degradation in performance over the useful life of a BEB, thus requiring replacement. Additionally, DOT is responsible for the maintenance of SMFD’s 19 frontline heavy-duty fire apparatus with diesel engines. Cummins is able to overhaul, repair and replacement of these engines as needed to maintain the vehicles in good operating condition.
Awarding Bid #4508 to Cummins would enable DOT to enter into an agreement to overhaul, repair and replace its transit bus CNG engines and high-voltage propulsion system equipment, and diesel engines for its SMFD heavy-duty apparatus to ensure that these vehicles remain ready for service. Staff recommends that Bid #4508 be awarded to Cummins, Inc. for engine and high-voltage propulsion system overhaul, repair, and replacement services.
Vendor Selection
Bidder Recommendation
Best and Only Bidder Cummins Inc.
Evaluation Criteria Price, experience.
Municipal Code SMMC 2.24.180
Submittals Received
Cummins Inc. $6,148,984
McMaster Carr Supply No Bid
Bid Data
Date Posted Posted On
Advertised In (City
Charger & SMMC)
Vendors
Downloaded
Date Publicly
Opened
12/19/2025
City's Online
Bidding Site
Santa Monica Daily
Press 15 1/22/2026
Additional Vendor Outreach & Justification to Award
Bids were evaluated based on the criteria in SMMC 2.24.180 including price and experience. Cummins Inc. is the original manufacturer of natural gas engines and electric propulsion systems that power DOT’s fleet of transit buses and provided a response that met the City’s requirements. One bidder submitted a “No Bid” response stating that they could not provide the specified services. Based on price and experience, Cummins Inc. is recommended as the best and only bidder.
4.I
Packet Pg. 966
4 of 5
Environmental Review
The contract for engine and electric propulsion system overhaul, repair, and replacement services is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) and Section 15061 (b)(3) of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The overhaul, repair, and replacement of transit bus and Fire Department heavy-duty apparatus would not result in any modifications to existing maintenance facilities and would not expand or materially change existing maintenance operations or increase the City’s fleet of transit buses. Therefore, this is categorically exempt as set forth in Section 15301 of the CEQA Guidelines. Additionally, the contract 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 contract would provide for engine overhaul, repair, and replacements and would not have a physical impact on the environment.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus fund and General Fund to award a contract with Cummins Inc. for overhaul, repair, and replacement of engines and electric propulsion systems.
Contract/Agreement Request
Funding
Source(s) FY 2026-27 Amount for
Future
Years
Department/CIP Account # Total Contract
Request Amount
Amount
General $79,147 $316,586 01190001.529470 $395,733
Big Blue Bus
(BBB) $1,150,650 $4,602,601 C6004750.689000 $5,753,251
Total $6,148,984
Future year funding is contingent on Council budget approval.
4.I
Packet Pg. 967
5 of 5
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Cummins Oaks
B. Cummins Inc_Levine Act Disclosure
4.I
Packet Pg. 968
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 a12- 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 establishedland 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 revenueinterest:
Prepared by: Title:
Signature: Date:
Email: Phone:
FOR CITY USE ONLY:
Bid/PO/Contract # Permit #
Cummins Inc. (dba Cummins Sales and Service)
Cummins operates with a board of Directors.
https://www.cummins.com/company/leadership/board-of-directors [email protected]
None
Uma Vajapeyazula
01/21/2026
Vice President - Western Zone
812-374-4708
Docusign Envelope ID: 5F8EB6BA-CEE6-47A1-BB83-5396617F2D17
4.I.a
Packet Pg. 969 Attachment: Cummins Oaks (7534 : Award Bid for Cummins Engine Overhaul) 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.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal.
Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form. https://www.smgov.net/departments/council/ https://www.santamonica.gov/departments/rent-control https://www.smgov.net/boards/ Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $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.
X
N/A
N/A
N/A
N/A
4.I.b
Packet Pg. 970 Attachment: Cummins Inc_Levine Act Disclosure (7534 : Award Bid for Cummins Engine Overhaul) 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.
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.
Cummins Inc. (dba Cummins Sales and Service)
Senior Bid Administrator
N/A
February 27, 2026
Lauren Stanislav
4.I.b
Packet Pg. 971 Attachment: Cummins Inc_Levine Act Disclosure (7534 : Award Bid for Cummins Engine Overhaul) 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.
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 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
4.I.b
Packet Pg. 972 Attachment: Cummins Inc_Levine Act Disclosure (7534 : Award Bid for Cummins Engine Overhaul)
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
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 $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.I.b
Packet Pg. 973 Attachment: Cummins Inc_Levine Act Disclosure (7534 : Award Bid for Cummins Engine Overhaul)
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
4.I.b
Packet Pg. 974 Attachment: Cummins Inc_Levine Act Disclosure (7534 : Award Bid for Cummins Engine Overhaul) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.J
1 of 5
To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Parking Operations (DOT) Subject: Approval of Second Modification of Agreement with Modaxo for Parking Citation Processing and Automated Bike Lane Enforcement Citations for the Department of Transportation
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15321 (Enforcement Actions by Regulatory Agencies) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second modification to agreement #11031 in the amount of $120,000 with Modaxo Corporation for parking citation processing and payment services for automated bike lane enforcement citations for the Department of Transportation. This will result in a nine-year amended agreement with a new total amount not to exceed $13,520,000 with future year funding contingent on Council budget approval.
Executive Summary
In Fiscal Year 2024-25, the City of Santa Monica (City) issued 220,000 parking citations that generated $10.9 million in General Fund parking citation revenues, as well as 90,000 residential and recreational parking permits that generated a combined $3.8 million in General Fund and Beach Recreation Fund revenues. Conduent, now Modaxo Traffic Management USA, Inc. (Modaxo), has provided parking permit fulfillment and citation payment solution services to the City under agreement #11031 (CCS) since June 2020.
In February 2026, the Department of Transportation’s Mobility Division launched an automated bike lane enforcement program, governed by California Assembly Bill (AB)
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361. This program uses cameras mounted on City parking enforcement vehicles to capture videos of illegal parking events in bike-only zones as evidence for automated citations.
Automated bike lane enforcement activities require technology and a workflow to review and issue citations and to collect fines and any late fees. Citation processing services for parking citations issued manually by traffic services officers are already being provided by Modaxo under agreement #11031, but this specific automated citation program was not anticipated at the time the contract budget was developed in 2020.
Therefore, staff requests approval for a second modification to the contract with Modaxo to increase the budget to cover automated bike lane enforcement citation processing.
The cost of citation processing for the automated bike lane enforcement program over the remaining two 2-year renewal options of the Modaxo contract is estimated to not exceed $120,000 by June 30, 2029, assuming the final option with Modaxo is exercised.
Background
On June 25, 2020, following a competitive procurement process, the City awarded a five-year contract plus two 2-year renewal options to Conduent State and Local Solutions, Inc., for a not-to-exceed total of $13.4 million dollars. Subsequently, Conduent was acquired by Modaxo Traffic Management USA, Inc. and an agreement acknowledging the new entity was executed by the City on March 29, 2024. Conduent, now Modaxo, provides parking permits and citation processing and collections and delinquent account collections management services to the City using a software platform called e-Tims®.
Upon approval from the City Council in January 2026, the Mobility Division launched an Automated Bike Lane Enforcement program using AI-assisted cameras that are being mounted on seven Santa Monica Police Department (SMPD) parking enforcement vehicles. The City is expected to begin issuing citations in July 2026 following a mandatory 60-day warning period. Staff requests approval for a second modification to agreement #11031 with Modaxo to increase its budget authority by $120,000 over the
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remainder of the contract term to process citations for the automated bike lane enforcement program.
Previous Council Actions
Meeting Date Description
4/28/2020 Award Request for Proposal and Enter into Agreement with Conduent State and Local Solutions, Inc. for Parking Permits and Citation Services
9/24/2024 Award Contract to Hayden Al, Inc. for Automated Bus Lane Enforcement Services
1/13/2026 Approval of First Modification of Contract with Hayden AI for Launch of Bike Lane Enforcement Program
Discussion
The Mobility Division of the Santa Monica Department of Transportation (DOT) continually evaluates opportunities to enhance City streets so that people walking, biking, riding transit, driving or scooting can travel safely and comfortably. In the interest of further safety on the City’s bike lane network, and in response to direction provided by the City Council in Agenda Item 16E at its September 12, 2023, meeting, Mobility staff proposed implementing an automated bike lane enforcement program using vehicle-mounted cameras, similar to the Automated Bus Lane Enforcement (ABLE) program being operated by DOT’s Big Blue Bus (BBB) division. California Assembly Bill (AB) 361, approved on October 8, 2023, allows local jurisdictions to monitor and enforce bicycle lanes using cameras mounted on parking enforcement vehicles.
A 45-day pilot conducted in May and June 2024 with cameras mounted on two parking enforcement vehicles recorded 1,679 events. 263 of these events were adjudicated as causing the greatest risk to road users due to the extent the vehicles blocked the bike lane. The pilot results suggested that an automated bike lane enforcement program would offer safety and quality-of-life benefits to all road users.
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The City Council approved an AB 316 bike lane enforcement program in the FY2025-27 biennial budget and then, on January 13, 2026, approved a first modification of Contract # 11617 with Hayden AI to equip up to seven SMPD parking enforcement vehicles with cameras for an automated bike lane enforcement program. The project is currently on track to begin a 60-day warning period in May 2026, and staff expect citations to be issued beginning in July 2026. A second modification of Contract #11031 with Modaxo is needed to add citation processing services for the automated bike lane enforcement program to the existing budget of the Modaxo contract.
Environmental Review
This contract for citation processing for bike lane enforcement is categorically exempt from CEQA pursuant to Section 15321 of the CEQA Guidelines. Section 15321 exempts project from CEQA that are actions by regulatory agencies to enforce a law or general rule administered or adopted by the regulatory agency. The contract is for citations for automated bike lane enforcement on up to seven SMPD vehicles per California AB 361.
Therefore, this contract is exempt pursuant to Section 15321.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase the amount of agreement #11031 with Modaxo for citation processing services to include automated bike lane enforcement citation processing.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
FY 2025-26
Modified
Request
Amount
Future
Years
Amount Dept/CIP Account #
Total Revised
Contract
Amount
11031 $13,400,000 $5,500 $114,500 01600002.550010 $13,520,000 Future year funding is contingent on Council budget approval.
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Prepared By: Barbara Andres, Customer Experience and Innovation Administrator
Approved Forwarded to Council
Attachments:
A. Award Request for Proposal and Enter into Agreement with Conduent State and Local Solutions, Inc. for Parking Permits and Citation Services (Web Link) B. Award Contract to Hayden Al, Inc. for Automated Bus Lane Enforcement (Web Link)
C. Approval of First Modification of Contract with Hayden AI for Launch of Bike Lane Enforcement Program (Web Link)
D. CT# 11031 Conduent_Original Contract
E. #11031 Modaxo_formerly Conduent_1st Modification
F. Modaxo-Trellint OAKS FY25-26
G. Modaxo_Levine Act Signed 11-18-25
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Contract No. 11031 (CCS)
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica (“City”) and CONDUENT State & Local Solutions, Inc. (“CONDUENT”) (referred to herein collectively as the “Parties”), is made with reference to the following:
RECITALS:
A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. CONDUENT is qualified to do business, and is doing business, in the State of California. CONDUENT represents it has the background, knowledge, experience and expertise necessary to provide the services set forth in this Agreement.
C. The City and CONDUENT now desire to enter into an agreement for CONDUENT to provide professional services to the City.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERMS AND CONDITIONS
1. Term.
1.1 Initial Term. This Agreement begins on the Execution Date and terminates on June 30, 2025, unless sooner terminated in accordance with Section 14 (“Initial Term”).
1.2 Option to Extend Term. The City, in its sole and absolute discretion, shall have the option to extend this Agreement for two (2) additional periods of two (2) years each (“Extension Periods”). The City may exercise its options by letter to CONDUENT from its City Manager, and the exercise of the option shall automatically extend the term of this Agreement up through the Extension Period.
2. CONDUENT Services. CONDUENT will perform all of the services (“Services”) described in Exhibit A, Scope of Services. CONDUENT will complete the Services in accordance with Exhibit B, Pricing Schedule.
3. City Services. The City agrees to:
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3.1 Make available to CONDUENT any currently existing documents, data or information required for the performance of the Services.
3.2 Designate a representative authorized to act on behalf of City.
3.3 Promptly examine and render findings on all documents submitted for staff review by CONDUENT.
4. Compensation. The City will compensate CONDUENT for the Services performed in an amount not to exceed $7.2 million dollars for the Initial Term, with two optional two year renewal options in an amount not to exceed $3.1 million dollars for each Extension Period, for a total not to exceed amount of $13.4 million dollars over a total nine year period, as set forth in Exhibit B.
5. Monthly Invoices and Fee Disputes. CONDUENT shall provide City with a monthly invoice that reflects an itemization and fee analysis of all fees earned by CONDUENT for the preceding period. City may contest or reject the invoice, in whole or in part, and will provide CONDUENT with a written statement summarizing its objection to the invoice as within thirty (30) days of the date of the invoice and the City will pay all undisputed invoice amounts. Upon receipt of City's written statement, CONDUENT shall have ten (10) days to provide a detailed written response to City that addresses each raised objection. The parties shall in good faith attempt to informally resolve their dispute.
If an informal resolution is not reached within ten (10) days of City's receipt of CONDUENT’s response, the matter will be deemed unresolved and City may, at its sole discretion, refer the matter to a neutral mediator or to other dispute resolution services. City may elect to pay the disputed amounts under protest and not as admission or waiver of its claims against CONDUENT. If the matter is referred to dispute resolution, the parties may continue to attempt to informally resolve their dispute until a determination on the merits of the dispute is issued by the presiding officer. Either party may appeal the decision of the presiding officer to a court of competent jurisdiction.
City shall bear all dispute resolution costs prior to a determination on the merits.
Should City prevail, or if CONDUENT refuses to participate, City is entitled to all of its reasonable dispute resolution costs in addition to repayment of any disputed amounts already paid to CONDUENT and may adjust or offset future payments to CONDUENT accordingly.
6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
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6.1 All notices, demands, requests or approvals to the City:
City of Santa Monica
Planning & Community Development
Parking Operations
1444 4th street
Santa Monica, California 90401
Attention: Parking Operations Division Manager
Re: Contract No. <11031>
with a copy to:
Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Contract No. <11031>
6.2 All notices, demands, requests or approvals to CONDUENT:
Conduent State & Local Solutions, Inc.
12410 Milestone Center Drive, Fifth Floor
Germantown, MD 20876
Attn: Legal Department
with a copy to:
CONDUENT
606 South Olive Street, 23rd Floor
Los Angeles, CA 90014
Attention: Ms. Ann Muenster-Nuiry
CC: Mr. Leo Urteaga
Re: Contract No. <11031>
7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another.
Neither the City nor its officers or employees will have any control over the conduct of CONDUENT any of CONDUENT’s agents, employees, or subconsultants, except as otherwise provided in this Agreement.
8. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement.
This Agreement may be modified only by written agreement signed by City and CONDUENT, and approved as to form by the City Attorney.
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9. Insurance. Prior to commencing work, CONDUENT must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by CONDUENT or CONDUENT’s agents, representatives, employees or subconsultants for the duration of this Agreement. CONDUENT must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.
10. Defense and Indemnification.
10.1 Indemnification. As to CONDUENT’s Services produced under this Agreement, CONDUENT agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the acts, errors and/or omissions of CONDUENT, or CONDUENT’s employees, agents, officers, and subconsultants.
CONDUENT’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding CONDUENT’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from CONDUENT, if City chooses to do so. If it is determined by a court of law that the Losses did not arise from Conduent’s negligence or willful misconduct, then Conduent’s indemnification obligations hereunder for those Losses shall cease and the City shall return to Conduent any costs Conduent has incurred to indemnify the City for said Losses. In accepting the tender of any Losses for Indemnification, Conduent may proceed with the indemnification of those Losses with a reservation of rights.
10.2 Enforcement Costs. CONDUENT agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 10.1.
10.3 Damages. Neither party shall be liable for indirect, consequential, exemplary or punitive damages, regardless of the form of action, whether in contract, tort or otherwise, and even if it has been advised of the possibility of such damages.
Under no circumstances shall CONDUENT be liable for City's failure realize savings or other revenues from CONDUENT’s performance of services under this Agreement.
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11. Prohibition Against Transfers.
11.1 CONDUENT may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s consent will be null and void, and any assignee, hypothecate or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.
11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of CONDUENT or of any general partner or joint venturer or syndicate member of CONDUENT, if a partnership or joint venture or syndicate exists, which results in changing the control of CONDUENT, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.
12. Permits and Licenses. CONDUENT, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.
13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.
14. Default and Termination.
14.1 If CONDUENT fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of fourteen (14) days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to CONDUENT.
14.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving sixty (60) days written notice to CONDUENT. Upon termination of this Agreement, City will pay CONDUENT any compensation earned, unpaid and undisputed, including all previously approved capitalized and unamortized costs for professional services and development costs provided in accordance with included in Exhibit B “Pricing Schedule” up to the effective date of termination.
14.3 Suspension for Convenience: The City has the option, at its sole and absolute discretion and without cause, of suspending this Agreement, in whole or in part, by giving sixty (60) days’ written notice to CONDUENT (“Suspension Period”). City shall pay CONDUENT for any compensation earned, unpaid DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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and undisputed, including all previously approved capitalized and unamortized costs for professional services and development costs provided in accordance with Exhibit B “Pricing Schedule” up to the effective date of the Suspension Period. No later than three (3) days after receiving a notice to suspend, CONDUENT shall promptly suspend the performance of Services to the extent specified in the notice and use commercially reasonable efforts to mitigate the impact of the suspension including utilizing its personnel and equipment in such a manner so as to minimize the cost and expense associated with the suspension. Upon receiving a notice to resume Services from the City, CONDUENT shall use commercially reasonable efforts to promptly resume Services, but CONDUENT shall resume Services by no later than fourteen (14) days after receiving a notice to resume Services. During the Suspension Period, City reserves all rights to continue use of the e-TIMS web-based parking management software program and the Business Objects web-based software program. The City shall reimburse CONDUENT for temporary wind down costs accrued, if any, during the suspension period in an amount not to exceed $50,000.
15. Compliance with Law. CONDUENT must comply with all laws of the State of California and the United States, and all ordinances, rules, and regulations enacted or issued by City.
16. Discrimination. CONDUENT may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.
17. Nuisance. CONDUENT may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.
18. Records.
18.1 CONDUENT must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subconsultant costs, or other direct costs. CONDUENT must keep the records, together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.
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18.2 CONDUENT must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles. CONDUENT must clearly identify all records and make them readily accessible to the City. At the City’s request, not more than three times each year at a mutually agreed time, CONDUENT must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records, but excluding any CONDUENT proprietary information include cost records.
18.3 CONDUENT must allow the City to have free access to CONDUENT’s books and records and to inspect all work, data, documents, proceedings and activities directly related to this Agreement but excluding any Conduent proprietary information include cost records. The City has the right to examine or audit CONDUENT’s records, and CONDUENT agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 10% or more in information reported by CONDUENT, CONDUENT agrees to pay all actual and direct costs of the City’s audit.
19. Citations Records and Sharing of Information. CONDUENT shall maintain an online inquiry system allowing for viewing and access to the citation database for Santa Monica. Scofflaw eligibility will be calculated and displayed in real time.
CONDUENT shall maintain files on each parking citation referred to it for processing under this Agreement on a computer system database. Said files shall contain any and all records relating to the performance of services under this Agreement, including but not limited to payments, collection efforts, disposition, and all other similarly relevant information generated during the course of processing citations. Reports in digital format detailing citation information and processing shall be made available to City and made accessible by computer. Hard copies of CONDUENT’s files may be requested on a monthly basis, or if necessary, more frequently, and at no cost to City.
20. Storage of Citation Records. CONDUENT shall store and maintain all records relating to and generated by the issuance and processing of a parking citation, including those described in Section 19 of this Agreement, for a period of no less than two (2) years from the original citation date. CONDUENT shall not destroy any records prior to the three-year period for retaining records. After the three-year period, CONDUENT may destroy any eligible records at its discretion.
21. Contractor’s Limitations. CONDUENT may not at any time institute any legal action related to the performance or non-performance of any of the Services described in Section 2 of this Agreement without first best efforts to attempt to meet with City and DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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serving the City with written confirmation following such meeting or CONDUENT’S attempts to meet.
22. Use of Approved Forms. All forms, notices, and correspondence utilized by CONDUENT in the performance of Services under this Agreement must conform to state and local law and must be approved in advance by City with such approval to be done in a timely and efficient manner and will not be unreasonably withheld.
23. Work Product; Reports.
23.1 Any work product prepared or caused to be prepared by CONDUENT or any subconsultant solely for this Agreement will be the exclusive property of City.
No work product given to or prepared by CONDUENT or any subconsultant pursuant to this Agreement may be made available to any individual or organization by CONDUENT without prior written approval by City.
23.2 At the City’s request, CONDUENT must furnish reports concerning the status of the Services.
24. Standard of Care. CONDUENT agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of CONDUENT’s profession currently practicing in the same locality under similar conditions.
CONDUENT represents that it is skilled in the professional calling necessary to perform the services and duties agreed to be performed by CONDUENT under this Agreement, and that the services required pursuant to this Agreement shall be performed in a good workman-like manner commensurate with the established and generally accepted industry standards of care. The City relies upon the stated skill and knowledge of CONDUENT to perform the services and duties according to this standard of care.
25. Staffing. If necessary, the Parties will re-evaluate staffing needs every three months based on citation issuance and associated activities. CONDUENT shall provide personnel in sufficient number to ensure that all required services are performed in accordance to the standards described in Exhibits A and B. If City requests a reevaluation of CONDUENT’s staffing determinations, CONDUENT will meet with City to discuss revising the number of staff required. CONDUENT agrees that all services shall be performed by qualified and experienced personnel.
26. Subconsultants.
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26.1 If CONDUENT proposes to have any subconsultant perform any part of the Services, CONDUENT must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subconsultant, and the total price or hourly rates used in preparing an estimated cost for the subconsultant’s services. The City, in its sole discretion, may grant or deny the request.
26.2 CONDUENT will be responsible for the quality of any subconsultant’s work.
Every subcontract or agreement of any kind entered into between CONDUENT and any subconsultant (or between any subconsultant and others) must contain the following provision:
This agreement is consistent with all terms and conditions of the Agreement No. 11031 (CCS) entered into between the City of Santa Monica and CONDUENT
on^^____________________.
27. Compliance with Data Security Requirements.
27.1 CONDUENT shall use best practices in the industry to comply with the Payment Card Industry’s Data Security Standard Requirements in effect as of the date that the platform is delivered to the City and provide a secure environment for all data in its possession or processed by the Solution.
27.2 Data Ownership. All vehicle, and transaction data originally collected from City, regardless of where the Services is hosted, is and shall at all times remain the sole and exclusive property of the City. For at least ninety (90) days following the expiration or termination of this Agreement, CONDUENT shall make available to the City for download a file of all such data in commaseparated values (“.csv”) format along with attachments in their native format.
CONDUENT is not permitted to use any such data for any purpose except as necessary to provide and operate the Solution for the city under this Agreement unless pre-approved in writing by City. CONDUENT shall not use such data for its own purposes or disclose, share, sell, or license it to third parties. CONDUENT shall destroy copies of such data within ninety (90) days of expiration or termination of this Agreement. CONDUENT shall provide a perpetual, non-exclusive, irrevocable right and license to the City to use any database formats and data sets created by CONDUENT out of such data.
27.3 Patches. During such time that the City has an agreement with CONDUENT, if any software is part of CONDUENT’s provided Services, CONDUENT agrees that the Software will be adequately patched to have the latest vendor-supplied security patches installed, including operating system and application patches, on the operational start date of the Agreement. CONDUENT is responsible for having all patches tested before DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89 6/25/2020
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being installed. CONDUENT shall be responsible for ensuring that all such patches, of which CONDUENT provides notice, are properly updated as necessary.
27.4 Antivirus Software. CONDUENT shall deploy approved antivirus software on all applicable components that store, process, or transmit parking transaction data, which CONDUENT will install before the platform is operational. CONDUENT shall not install any malicious software or computer contaminants including, without limitation, viruses, worms, time bombs, Trojan horses, ransomware, spyware, scareware, or any other hostile or intrusive code, files, scripts, or programs. CONDUENT shall be responsible for ensuring that all necessary antivirus software is properly maintained and updated as necessary.
27.5 Network Access. If CONDUENT has access to any passwords or log-in information of the City in connection with the Services, CONDUENT shall ensure that proper user authentication and password management for all non-consumer users and administrators is installed, or configured, on all Solution components and use its best efforts to make sure the password and log-in information is secure. CONDUENT shall comply with the City’s minimum standards. Each system user or administrator must be removed immediately upon separation from CONDUENT (i.e. termination from employment with CONDUENT or from the City’s account).
27.6 Survival. The obligations in this section shall survive expiration or termination of this Agreement.
28. Data Breach. For purposes of this Agreement, “Data Breach” means the unauthorized acquisition, access, use, or disclosure of confidential information that compromises the security, confidentiality, or integrity of such information. In the event of any Data Breach of CONDUENT’s cloud environment, CONDUENT shall promptly notify City and cooperate with any remedial and notification requirements.
28.1CONDUENT shall provide notice by email and telephone of any Data Breach as soon as possible, but no later than 24 hours after learning of the Data Breach. The notice shall include a detailed report of the information breached, including names, contact information, and data that was compromised.
28.2 Immediately following notification of a Data Breach, CONDUENT shall coordinate with City to jointly investigate the incident, and CONDUENT agrees to (1) assist with any investigation; (2) provide City with access to facilities and operations impacted by the Data Breach; (3) provide status reports on any internal investigations as frequently as requested by City; (4) facilitate interviews with CONDUENT’s employees and others involved in the Data Breach; and (5) make available all relevant documents and data, DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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electronic or in paper form, necessary to comply with all applicable laws, regulation, industry standards as otherwise requested by City.
28.3 CONDUENT shall immediately remedy any Data Breach and, at CONDUENT ’s sole expense, take all necessary steps to prevent any further Data Breach in accordance with all applicable privacy rights, laws, regulations, and standards.
28.4 CONDUENT shall not inform any third party of a Data Breach without first obtaining City’s written consent to do so, other than to inform a complainant that the matter or inquiry has been forwarded to the appropriate City office for review or as otherwise required by law. CONDUENT shall consult with City to determine (1) whether notice of a breach should be provided to any individuals, regulators, law enforcement agencies, consumer reporting agencies, or others as required by law, regulation, or otherwise in the City’s discretion; and (2) the content of any such notice, whether and what type of remediation may be offered, and the nature and extent of any such remediation.
28.5 CONDUENT shall fully cooperate in any litigation or other action deemed necessary by the City following any Data Breach.
29. Intellectual Property.
29.1 The City exclusively and solely owns all City Data and the intellectual property therein. CONDUENT further agrees to execute any documents necessary for the City to perfect, memorialize, or record the City's ownership rights in City Data. For purposes of this Agreement, "City Data" means all intellectual property of the City, including but not limited to occupancy data, financial records, programming configurations of the parking meters, GIS location and rates, and other operational data and tailored operational programming.
29.2 CONDUENT may not provide or disclose any City Data to any third party without the City's prior written consent.
29.3 Any subcontract entered into by CONDUENT relating to this Agreement, to the extent allowed hereunder, must include a like intellectual property provision to ensure that the City's ownership rights in City Data are preserved and protected as intended in this Agreement. Failure of CONDUENT to comply with this requirement or to obtain the compliance of its subcontractors with such obligations constitutes a breach of this Agreement and will subject CONDUENT to damages paid to the City and the imposition of all sanctions allowed by law, including but not limited to termination of this Agreement.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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29.4CONDUENT represents and warrants that it owns or has acquired all requisite rights and licenses to use all intellectual property embodied, practiced or employed in CONDUENT being used by the City.
29.5CONDUENT hereby grants the City, including its departments, commissioners, officials, officers, employees, consultants, and agents (collectively, "City") all the rights and licenses required to use the CONDUENT intellectual property as described in this Agreement. Such rights and licenses are non-assignable, non-transferable and non-exclusive, and specific only to use by the City within the City under the terms of this Agreement.
29.6Nothing in this Agreement will be construed as assigning, selling, conveying, or otherwise transferring any ownership rights or title in CONDUENT intellectual property, including but not limited to pre-existing or independently developed intellectual property, materials, software, methodologies, tools, or inventions, that are developed, conceived or created for any CONDUENT business purpose, or any derivative works to any of the foregoing.
29.7CONDUENT understands the nature of public information and the requirement for the City to adhere to all rules and laws that apply to public information, such as the Freedom of Information Act, Public Records Act, and the like. However, the City also understands that the Services contain CONDUENT intellectual property, copyrights, and trade secrets that do not exist in the public domain. Therefore, the City agrees that it will not knowingly agree, assist, or sell any equipment or allow any third party to gain access to equipment, software, or documentation provided by CONDUENT for any purposes including reverse engineering or evaluation without the prior written consent of CONDUENT, or as mandated by applicable law.
29.8This Section 29 will survive expiration or termination of this Agreement.
30. Agent. Except as City may specify in writing, CONDUENT shall have no authority, expressed or implied, to act on behalf of the City in any capacity whatsoever as an agent. CONDUENT shall have no authority expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
31. Force Majeure. Neither party shall be responsible for delays or failure in performance resulting from acts beyond the control of such parties. Such acts shall include, but are not limited to, Acts of God, strikes, riots, acts of war, whether or nor not formally declared, acts of terrorism, epidemics, fire, communication line failure, delays in manufacturing, distribution or transportation, earthquakes or other disasters.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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32. Errors in Processing Citations. Furthermore, CONDUENT shall use all care necessary in the processing of citations for City. CONDUENT will be responsible for resolving equipment malfunctions or errors made by its personnel that impact, or have the potential to impact, CONDUENT’s performance under this Agreement.
Errors are to be resolved at no additional charge to City. In the event that CONDUENT’s errors are not resolved timely, CONDUENT shall be liable for any loss of revenue incurred by City attributable to CONDUENT’s errors. City shall reimburse CONDUENT for any reasonable expenses incurred by CONDUENT for the correction of errors caused by erroneous or inaccurate information provided to CONDUENT by City. CONDUENT shall not be responsible for losses or expenses incurred by City as a result of erroneous or inaccurate information provided to CONDUENT by City or third parties.
33. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.
34. Venue and Jurisdiction. The City and CONDUENT agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.
35. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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36. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.
Exhibit A Scope of Services
Exhibit B Pricing Schedule
Exhibit C Insurance Requirements
Exhibit D Performance Standards and Penalties
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
GEORGE CARDONA
Acting City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
LANE DILG
Interim City Manager
ABC Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89 George S. Cardona
6/25/2020
Interim City Attorney
6/25/2020
Vice President
Conduent State & Local Solutions, Inc.
Holly Cooper
Lane Dilg
6/25/2020
City Attorney 6/25/2020
Denise Anderson-Warren
City Clerk
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Exhibit A
Scope of Services
A. PROJECT NARRATIVE
By way of this Exhibit A to the Agreement entered into between CITY and CONDUENT for the providing of Parking Citation Processing and Permit Fulfillment Services, CITY and CONDUENT agree to the scope of services described herein. CITY reserves all of its rights and remedies under the Agreement, including but not limited to requiring CONDUENT to perform and provide services in a manner consistent with this Exhibit A.
This Exhibit A is comprised of several main components, or categories of responsibility, which include: General Information Processing; System Requirements; Financial Deposits and Reconciliation; Parking Permit Services; Citation Processing Services; Department of Motor Vehicles and State of California Franchise Tax Board Services; Reporting Requirements; Customer Service Center; Correspondence Processing; and Adjudication Processing.
CONDUENT shall be required to have its corporate headquarters, maintain a field office or processing services office within a sixty-mile radius of CITY. All services performed for this contract by CONDUENT’s personnel or any of its subcontractors shall be located within the United States.
The Agreement between CONDUENT and CITY requires several dedicated staff. These dedicated positions consist of a Project Manager, a Project Analyst, a Payment Processing Clerk, a Quality Assurance Representative, a Reconciliation Representative, three (3) customer service representatives ("CSR"), and two (2) Permit Processing Representatives. CONDUENT shall have sufficient cross trained staff to meet' all correspondence and payment processing requirements for the contract.
Shared staffing for the "dedicated" functions listed above shall be at appropriate levels to maintain compliance with the Agreement. At CITY'S request, CONDUENT shall prepare and submit audit reports to enable the CITY to determine if staffing levels and contract performance are in compliance with this Agreement.
Any complaints by third parties received by CITY and about CONDUENT shall be forwarded to CONDUENT within 72 hours. All forwarded complaints received by CONDUENT shall be investigated and responded to DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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either in writing, e-mail, or telephone within ten (10) calendar days of CONDUENT receipt of the complaint.
The response shall include the results of CONDUENT investigation and, if applicable, the measures taken or to be adopted to prevent similar future complaints.
The Project Manager shall be the day to day point person with the accountability and responsibility of delegating all work functions required under the Agreement and insuring contract performance standards are met.
All project employees shall be expected to receive training at a level to provide the services required by the Agreement.
All electronic and hard-copy information shall be stored and retained in accordance with the CITY'S records retention schedule. Subject to Section 18 of this Agreement, the CITY reserves the right to inspect stored records to ensure compliance with the CITY'S records retention policy.
CONDUENT shall provide the necessary document management and information systems equipment to ensure that all required services are performed subject to the defined performance standards in Exhibit D Performance Standards & Penalties.
CONDUENT shall furnish all necessary user manuals and instruction guides for accessing the CITY’s Citation Processing and Permit Management System.
Manuals and guides should provide step-by step instructions and a list and description of any and all codes used in CONDUENT systems accessed by CITY.
Business Process Rules. No later than sixty (60) days from the Execution Date, CONDUENT shall develop and provide City with a set of standard protocols and procedures (hereinafter referred to as "Business Process Rules" or "BPR") for the performance of all project services contemplated by this Agreement. CONDUENT shall develop the BPR with significant insight from City on City’s current and future citation processing needs. The BPR will be used to standardize procedures for handling both telephone calls and correspondence within thirty (30) days of its implementation.
B. GENERAL INFORMATION PROCESSING
CONDUENT is responsible for processing CITY'S citation correspondence and payments, of approximately 30,000 pieces of mail received annually. The DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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duties and tasks of General Information Processing shall include, but not be limited to, the following actions:
1. Opening all correspondence and determining what action is required.
2. Processing correspondence within two (2) business days from date of receipt.
3. Obtaining prior approval from the CITY on all standard forms, notices of delinquent violation, and correspondence, and ensure that all forms conform to applicable California Vehicle Codes (CVC).
4. Entering what action was taken into CONDUENT’s computer software operating system (e.g. temporary suspension, letter to respondent, permit issuance, cancellation, etc.).
5. Taking appropriate actions to ensure resolution of complaints or questions.
6. Implementing appropriate control and monitoring procedures to ensure that payments and correspondence are processed to completion.
7. Providing CITY operations or procedures manual and required MIS reports listed in the scope of services by e-mail and/or hard copy on demand at no cost within 2 business days of request.
8. Providing a post office box within 60 miles of the CITY where all incoming correspondence and payments are to be mailed. Mail is to be picked up from the post office at least once per business day.
9. Providing a bonded courier to pick up and deliver mail including but not limited to, batched parking citations, parking permit applications, payments, correspondence, and management reports to and from specified locations.
10. Storing electronic filings, citations, and physical/electronic correspondence and applications in an easily retrievable format in accordance with the City’s records retention schedule.
11. Filing and storing citations in an easily retrievable format for a minimum of five (5) years then dispose in accordance with City direction.
C. SYSTEM REQUIREMENTS
CONDUENT’S responsibilities and tasks for System Requirements consists of, but is not limited to, the following:
1. Maintaining system database and physical system security in such a way as to provide complete confidentiality and protection from unwanted access.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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2. Providing web-browser-based, responsive design, websites that do not require any plugins for the public to pay and contest parking citations and to procure and manage their permits accounts.
3. Providing Active Directory Federation Services (ADFS) Integration, to be implemented with new eTIMS® re-platform in calendar year 2021.
4. Maintaining Level 1 PCI-compliance for online payment systems.
5. Providing real-time data transfer from the Citation Issuance Software (CitySight® Enforcement) to the Citation Processing system (eTIMS®).
6. Providing workflow automation with ability to comply with legal timelines, notifications, and record requirements.
7. Providing workflow automation for submittal/reviewal/approval/denial of parking permit applications with document upload functionality.
8. Providing online permit application and payment portal for all permit programs with the ability by qualified personnel internal (City staff) or external (contractor) to validate and verify information.
9. Providing real-time inquiry function for California Department of Motor Vehicles (“DMV”) citation/registered owner (RO) information and disabled placard information through eTIMS®
10. Maintaining CITY’s parking permit account address database in eTIMS® with editing functionality.
11. Providing real-time address validation for new parking permit applications.
12. Integrating with the California Department of Motor Vehicles to acquire registered owner name and address information and placing vehicle registration holds, including acquiring name and address information as allowed by the 50 State DMV agencies.
13. Administering the State of California Franchise Tax Board Intercept programs
14. Providing user-defined reports requested by CITY
15. Providing an online permit application and renewal portal
16. Providing real-time permit issuance data for handheld enforcement through CitySight® Enforcement.
D. FINANCIAL DEPOSITS & RECONCILIATION
CONDUENT’S duties and tasks for the handling of financial deposits and reconciliation shall include, but not be limited to, the following actions:
1. Providing a separate Post Office Box for CITY where payments, administrative review and administrative hearing correspondence, and other documents are to be mailed.
2. Providing a secure lockbox management system for the processing of payments. Mail pick-up from post office shall be at least once per business day. This requirement includes providing remote deposits via electronic DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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checks in compliance with the Check Clearing for the 21st Century Act (Check 21 Act).
3. Sorting and batching all incoming mail by postmark date for payment posting.
4. Entering and processing payments received within one (1) business day from receipt, including opening all mail received, entering suspense date, verifying payment amounts, updating eTIMS®, making daily bank deposits and weekly cash deposits by armored vehicle for payments received in lockbox and checks that are not able to be processed through remote deposits.
5. Daily reconciliation of all payments entered with bank deposits.
6. Daily reporting of bank deposits made for CITY. Bank deposits shall be made within 24 hours of processing of payment on a daily basis.
7. Filing and storing all source documents in an easily retrievable system available to CITY within two (2) business days.
8. CONDUENT ‘S system must track rebilling on partial payments, checks returned for insufficient funds, vehicle change of ownership, and re-entered citations for payment.
9. CONDUENT must provide for payment by credit card (VISA, MasterCard, Discover, and American Express), and be capable of securing immediate authorization from the banking institution. Payments made by credit card are to be immediately updated in data base in real time. Payments will be made by automated telephone system.
10. CITY may in the future assess a convenience fee or other charge on all payments made by credit card. CONDUENT will provide proposal to implement this process as required.
11. Entering, processing, verifying and updating of all payments within one business day including credit cards, checks and cash collected by lockbox, on line payments, and payment field office in accordance with acceptable financial practices.
12. Deposits shall be made into CITY'S designated bank account daily. All on line and IVR transactions must be PCI certified.
13. CITY may choose to use its own credit card merchant or the vendor account.
14. Reporting credit card payments by merchant ID on a daily, weekly, monthly, yearly statement with the citation number, citation amount, permit number, permit account, and permit type.
15. On-line updating of monthly payments at the Department of Motor Vehicles.
16. Providing CITY with a field office for walk-in payments to be located within a 15-mile radius.
17. CITY will specify the bank to be used for daily bank deposits. If the CITY changes banks during the term of the contract, CONDUENT will provide a proposal to implement this process as required.
18. Payments to be applied to funds shall be reconciled each day before preparation of deposits.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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19. Generating notices for partial payments.
20. Investigating cash overages and shortages of any amount each business day of the deposit date and reporting findings to CITY.
21. Tracking partial payments and checks returned for insufficient funds.
22. Providing documentation to CITY for processing refunds within 72 hours after confirmation a case has been dismissed and/or overpayment has been made.
23. Storing and filing all payment information to facilitate special collections and credit reporting services.
24. Posting payment information from all sources within 24 hours of receipt and no later than the end of the following business day
25. Tracking progress of payments, re-entered payments, change of ownership, declaration of non-ownership, refunds, correspondence and administrative review process
E. CITATION DATA PROCESSING
CONDUENT’S duties and tasks for Citation Data Processing include the integration of approximately 300,000 new citation records annually for CITY, which consists of, but is not limited to, the following procedures:
1. Providing an integrated system to track citation from issuance to adjudication, payment, and collections in real time.
2. Providing real-time data transfer from the CitySight® Citation Issuance Software to the eTIMS® Citation Processing system with on-line confirmation, showing the number of citations transferred and received by CONDUENT.
3. Maintaining system compatibility with CITY’s handled citation devices with the capability of uploading all citation data fields.
4. Providing authorized account users capability to correct citation issuance dates, duplicate citations, violation codes, and fine amounts, and suspend citations
5. Updating of citation records and the ability to enter comments and attach digital photographs/documents to a citation record
6. Coordinating any changes in CITY policy related to Citation Data Processing. CONDUENT will provide proposal to implement new policies as required
7. Receiving, data stamping, batching and data entering handwritten citations into the eTIMS® system within two (2) business days from collection from CITY'S enforcement office.
8. Filing and storing of citations in an easily retrievable format in accordance with CITY'S records retention schedule.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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9. Providing online real-time citation information for customers, including citation issue date, delinquent date, amount owed, and other open citations with the same license plate numbers; all searchable by license plate or citation number
10. Programming CITY’s approved citation lifecycle (timelines) into eTIMS® with automated noticing, penalties, and registration holds, and collections.
The citation lifecycle may be adjusted and/or suspended due to special circumstances and events approved by CITY officials.
11. Tracking customer name, address, other contact information, vehicle type, and vehicle registrations including storing and tracking previous and current owner information when transfer of vehicle ownership has occurred.
12. Maintaining and updating of a combined scofflaw file for all vehicles that are have accumulated five (5) or more delinquent parking citations in neighboring jurisdictions, as mutually agreed. The scofflaw file shall include jurisdictions that are clients of CONDUENT that have been legitimately sanctioned in writing by the respective agency to access shared database information and tow the vehicle, subject to the provisions of California Vehicle Code Section 22561.(i)(1).
13. Maintaining and updating of confidential vehicle database for exemptions authorized by the City that are uploaded to the CitySight® Enforcement software application.
14. Storing and tracking car rental agency reports with responsible billing parties.
15. Identifying duplicate citations
16. Maintaining editing capability to correct dates, suspend citations, and correct violation codes and fine amounts.
17. Maintaining on-line communications during the principal hours of work (8 am to 5 pm Monday through Friday, except holidays) when the parking citation processing system, including all subsystems, is available to CITY and to respond to public inquires.
18. Maintaining System availability at 98% per month. CONDUENT shall provide objective and mutually agreeable methods of measurement to enable CITY to monitor the availability level.
19. Providing integration with the CITY’s permit database to capture violations that are outstanding when processing license plate specific permit renewals and new applications. CONDUENT’s systems will flag applications at the time of permit renewal and new applications by interfacing with the eTIMS® citation database to ensure that all outstanding citations are paid before any parking permit is issued.
20. Preparing a report at end of each Fiscal Year, in accordance with California Vehicle Code Section 40200.3(b) setting forth the number of cases processed, and all financial and/or citation payments received and distribute, along with any other information that may be required by the issuing agency.
This report is public record and shall be delivered to each issuing agency at DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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the end of each fiscal year. If the City requests, the CONDUENT shall hire and independent auditor to prepare a report. The City shall pay the costs of the audit report upon the City’s written approval on auditor’s cost.
21. Per California Vehicle Code Section 40200.3(b), CONDUENT shall prepare a report at the end of each fiscal year setting forth the number of cases processed and all financial and/or citation payments received and distributed, along with any other information that may be required by state law. This report is a public record and shall be delivered to CITY at the end of each fiscal year. At CITY'S request, CONDUENT shall hire an auditor to prepare the report. CITY shall bear the cost of the audit after approving of the auditor's cost estimate.
22. Providing a payment plan solution that complies with California Assembly Bill 503 adopted in 2018, which creates a process that allows individuals with outstanding parking citations to repay their fines while preserving their ability to register and drive their vehicles.
23. Providing alternate citation payment plans dictated by new CITY policy.
CONDUENT will provide proposal to implement new payment plan policies as required.
DMV, Out of State Vehicles, and Ownership Registration
24. Retrieving registered owner information for In-State and Out-Of-State plates.
25. CONDUENT is responsible for any and all fees associated with obtaining registered owner information.
26. Maintaining on-line communications with the 50 State DMV headquarters and Transportation Ministries in Canada and Canada.
27. Tracking and troubleshooting of DMV requests returned as incomplete (“No Hit”) or with an error code provided.
28. Validation of DMV vehicle makes upon return of registered owner information to ensure proper make of vehicle is issued citation.
29. Continuously attempting to retrieve registered owner information for all unpaid parking citations without registered owner information in the system.
30. Mailing collection letters to out-of-state owners.
31. Mailing all parking violation notices within the time frame stipulated and required by the California Vehicle Code after the date of citation issuance.
32. Processing and mailing “Drive Away” notices to registered owners of vehicles that drive away prior to the issuing officer attaching the citation to the vehicle. The notice must be mailed out to the registered owner within fifteen (15) calendar days of the citation issuance as required by the California Vehicle Code.
33. Process citation correction notices where the issuing officer determines that there is incorrect data in the parking citation. A copy of the correction shall DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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be mailed by CONDUENT to the registered owner within in a timeframe specified by the CITY.
34. Providing the necessary postage, correspondence, and ability to track forms to meet all applicable State and local laws regarding citation processing and adjudication.
35. Generating delinquent notices for unpaid citations twenty-one (21) days after the issued date of the violation within a time frame as directed by the CITY.
36. Mailing notices to lessees or renters of cited vehicles, including loaner vehicles, when provided with proof of written lease or rental agreement as required by the California Vehicle Code.
DMV Registration Holds/Releases
37. Placing on-line DMV holds and/or releases on delinquent accounts daily.
38. Processing DMV holds or releases within 48 hours. The timetable to establish a registration hold at DMV shall be at the discretion of the CITY or as established by local, state, and federal law.
39. Placing registration holds on the unpaid balance, for citations that have not been paid in full, have not established and qualified for payment plan, or who do not comply with the terms of an approved payment plan.
40. Providing additional grace periods, as authorized by the CITY, which will automatically allow for additional payment processing time.
41. Providing monthly report of all reported vehicle make mismatches and bad address mail returns, which shall include citation number, license plate number with state, and error explanation.
42. Accepting electronic file from DMV (registered owner information) and DMV payments files.
43. Reporting of monthly holds placed and payments made at DMV.
44. Release registration holds daily upon City’s request.
Franchise Tax Board (FTB) Intercept Program
45. Identifying the individuals to be intercepted via FTB program
46. Generating mail notifications prior to file submission adhering to the FTB guidelines.
47. Processing FTB annual intercept program in coordination with the CITY.
48. Providing monthly modification files if the amount to be intercepted has changed.
49. Processing timely refunds in the event of overpayment and/or misidentification F. REPORTING REQUIREMENTS
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CONDUENT shall provide standards reports as defined by the City, including, but not limited to:
1. Number of citations issued
2. Percentage paid prior to issuance of 1st notice, after issuance of 1st notice, of total issued
3. Percentage dismissed
4. Percentage closed (paid/dismissed)
5. Number of citations matched to DMV data, matched to CA DMV data, matched to out-of-state DMV data
6. Number of delinquent notices issued
7. Number of citations sent to collection
8. Dollar amount of gross collections
9. Number of citations paid
10. Dollar amount and number of bounced check fees paid
11. Dollar amount and number of citations processed by lockbox
12. Dollar amount and number of citations processed by City cashiering
13. Dollar amount and number of citations processed by WEB payment
14. Dollar amount and number of citations processed by Pay By Phone
15. Dollar amount and number of citations processed by DMV payment
16. Dollar amount and number of refunds issued
17. Average dollar amount of gross/net ticket collected
18. Dollar amount and number of tickets paid by special collections
19. Dollar amount of collections fee for special collections
20. Number of customer service calls dialed in/completed
21. Estimated average delay/length in minutes in answering customer service calls
22. Number of customer correspondence received
In addition, CONDUENT must generate on a monthly basis management information system (MIS) reports to be provided to CITY. The reports shall include the following:
1. Outstanding correspondence (beginning backlog);
2. Total pieces of correspondence received;
3. Total pieces of correspondence processed;
4. Remaining correspondence (ending backlog); and
5. Any unresolved correspondence.
6. Citations transmitted
7. Citations received
8. Administrative reviews requested
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9. Administrative reviews (1st level) assigned
10. Administrative reviews (1st level) completed
11. Administrative reviews (1st level) outstanding
12. Administrative hearings (2nd level) requests received
13. Administrative hearings (2nd level) assigned on docket
14. Administrative hearings (2nd level) completed with disposition
15. Administrative hearings (2nd level) outstanding without disposition G. CUSTOMER SERVICE REQUIREMENTS
CONDUENT’s duties and tasks for the Customer Service Center shall consist of managing approximately 130,000 calls annually, and shall include, but not be limited to, the following:
1.Providing CITY with a domestic toll-free telephone line and a separate local line for international customers that is staffed between the hours of 8 a.m. and 5 p.m., Monday through Friday, except holidays and/or operational for payments by IVR 24 hours a day, 7 days a week.
2.Providing professional and courteous customer service personnel trained in business processing rules approved by CITY.
3.Provide a field office for walk-in payments to be located within a 15-mile radius of the city
4.Providing staff to respond to telephone inquiries regarding how to contest a violation, determine outstanding penalty amounts or delinquent fees, identify time frames, and any other pertinent information in order to contest a citation by mail or in-person.
5.Staffing and/or rerouting calls in the event the connection to the computer network is disrupted.
6.CONDUENT shall be required to monitor and record calls for quality assurance subject to the same terms for English or Spanish speaking customers.
7.Operating a customized Interactive Voice Response (IVR) System in English and Spanish to accept payments and provide information. The automated system must provide real time information on each citation, including amount owed and open citations by license plate number. The IVR system shall be able to provide information on how to pay and contest citations. The IVR system shall offer the caller the option of transferring directly to a live customer service representative during normal business hours.
8.Monitoring the call acceptance rate, call completion rate and longest and shortest call wait time. An incomplete telephone call is defined as a call terminated after 30 seconds have elapsed from the time an individual's call is received in CONDUENT’s telecommunications system.
9.Producing monthly reports for CITY to verify contract performance requirements. In order for CITY to monitor the performance service levels DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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described in this Exhibit A, CONDUENT'S telephone system must automatically provide the following information in its reports to CITY:
a. Total number of incoming calls.
b. Total number of calls processed.
c. Total number of calls handled by an automated voice response system.
d. Total number of calls handled by public service representatives. e. Total number of calls disconnected as a result of a public "hangup." f. Total number of busy calls.
g. A system availability report to determine the time period of calls inaccessible due to failure of CONDUENT’s system.
h. Percentage of incoming calls completed.
i. Average wait time per call.
j. Average time per call, with high and low amounts.
10. Monitoring the telephone system during business hours. CONDUENT shall monitor all conversations between CONDUENT’s employees and third parties, and maintain recorded audio files of these conversations. CITY and CONDUENT are committed to maintaining quality assurance and ensuring that contract performance levels are met.
11. CITY requires a computerized or digital responding system that can be accessed by CITY and can attach a recorded call to a citation record.
12. Making hourly adjustments to staffing levels based on volume of calls received and average wait time.
H. CORRESPONDENCE PROCESSING
CONDUENT’s duties and tasks for processing correspondence shall include, but not be limited to, the following actions:
1. Providing staff or a translation services with the required expertise to promptly and efficiently process and respond to all correspondence in standard English within two (2) business days from the date and time received.
2. Mailing of first notices, final notices, returned check notices, partial payment notices, DMV hold letters, administrative review and administrative hearing result letters, drive-away notices, delinquent notices and special collection notices, parking permit renewal notices, parking program informational items or any other notices required by the City or CVC.
3. Sorting and batching all incoming correspondence by postmark date for payment posting and correspondence processing. Envelopes shall be kept on file with correspondence.
4. Formatting all notices and letters using Custom #10 window envelopes with CITY'S return address. The interior #9 must also be customized with CITY'S DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1005 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 13 -
address that is post net bar-coded with FIM per the U.S. Postal Service requirements.
5. Processing of correction notices and notifying CITY of citations unable to be entered because of incorrect information.
6. Processing incoming mail for parking permits renewals and.
7. Generating customized notices for incomplete or incorrect information or payments.
8. Forwarding correspondence to CITY that is either outside the scope of services and/or requires special attention.
9. Providing computer imaging hardware and software that is capable of integrating all aspects of work for correspondence received and generated by CONDUENT.
I. ADMINISTRATIVE ADJUDICATION PROCESS
CONDUENT’s duties and tasks related to the administrative adjudication of contested citations shall include, but not be limited to, the following actions:
1. CONDUENT shall coordinate the administrative review process consistent with the procedure for persons contesting parking citations as set forth by the laws of the State of California.
2. Scheduling of weekly hearings conducted in-person every fifteen minutes, and/or by written declaration. CITY'S hearings shall be scheduled for a time convenient to all parties concerned, and in accordance with state law, and approximately three weeks in advance.
3. CONDUENT shall provide staff to prepare all documentation related to a case and assemble an electronically transmitted file or hard copy data file into a case folder that must be delivered to the appropriate hearing location.
Individuals may be given the option by letter to choose to report to alternate locations set up by the CITY for in-person hearings with a minimum 3-week notification provided to CONDUENT of new location(s).
4. Hearings by written declaration are distributed to evenly distribute work flow, and supplement the hearing officer's time at each location. Written declarations are not always assigned to the issuing agency that generated the citation. CONDUENT shall not maintain a backlog of written declarations.
5. CONDUENT shall respond to individuals submitting requests online at the first and/or second administrative review stages by email for convenience and regular mail for compliance with California state law.
a. Santa Monica Police Department handles the first-level review process (“Initial Review”) and any special review requests such as late review requests.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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b. An independent hearing officer handles the second-level review process (“Administrative Review”).
c. The City’s Finance Department is responsible for reviewing and approving any special fee waiver or penalty waiver requests such as deferral of Administrative Hearing deposits.
6. Providing return receipt confirmation for all payments and/or administrative review requests made through the internet by sending an email to the individual by email before the next business day.
7. CONDUENT shall provide an on-line scheduling service to individuals submitting requests for hearings via the internet in real-time, indicating availability of hearing dates and times by specific City location. The individual will be -mailed a receipt indicating the date, time and location of the hearing with any appropriate instructions for each citation contested.
8. CONDUENT shall develop a method for transfer hearing files to CITY and to the hearing examiner for processing electronically.
9. The hearing schedule shall be accessible online to the hearing examiner and to CITY, and be sorted by date, indicating the time of the hearing, name of the individual requesting the hearing, citation number, license plate number, violation code, the name of the city where the citation was issued, and the name of the city where the hearing is scheduled. The schedule shall be updated or revised by the CONDUENT in real time to reflect any hearings that have been added or rescheduled.
10. CONDUENT shall have the capability of receiving the hearing examiner’s decision by email. The hearing examiner shall provide the processing agency with transmittal indicating the number of cases forwarded by email, and the processing agency shall confirm the number of cases received in real time.
The hearing examiner shall forward a computer disk containing the disposition of cases to the CONDUENT according to the City's instructions.
11. CITY and the hearing examiner will receive weekly update reports by hard copy and/or by e-mail for any cases that do not have a decision entered and are outstanding for seven (7) days or more. The individual contesting the citation will receive a response to the hearing by the processing agency in the manner requested by the individual, by first class mail or e-mail.
12. Generate management reports.
13. Utilize document imaging technology for files received by the processing company and transferred to the hearing officer pending disposition of each case.
14. Track all citations and disposition report data information on a daily basis.
15. Track and schedule court hearings and appeals.
16. Suspend action while appeals are under investigation.
17. Upload supporting evidence submitted by customers in support of their appeals to their citation record.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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18. Provide a FAQ page to assist customers through the appeals or correction process.
19. Provide a customer service interface that supports automated appeal processing and payment.
20. Provide online appeal function attachment capability.
21. Record hearing data and comments for historical background and attach to account.
22. Process hearing decisions in eTIMS.
23. Generate letters and use customized liability reason codes.
J. PARKING PERMITS FULFILLMENT AND SERVICE REQUIREMENTS The Parking permit interface shall be capable of capturing and managing data related to the issuance of all types of parking permits issued by the CITY, whether they are new accounts or renewal applications. CONDUENT's duties and tasks for the processing and fulfillment of CITY parking permits shall include, but not be limited to, the following:
1. CONDUENT will provide and manage the following online systems for the purchase and administration of these account types:
a. Residential Permit Account Renewals
b. New Permit Account Applications
c. One Day Temp Permits
d. Annual Day Beach Permits
e. Annual Senior Beach Permits
f. Preferential Business Account Types – Main Street Lots, Midtown Lots, and Pico
2. Providing CITY customers the ability to complete permit applications and upload documents online, demonstrating evidence of residency, vehicle ownership and photo identification, with City-established criteria.
3. Providing CITY customers the ability to create their own residential permit accounts using ID/Password authentication to manage, edit, and update their vehicle, license plate number, permit, and contact information.
4. Providing CITY customers the ability to renew and cancel their permits online.
5. Providing address validation for new residential permit application made online so only addresses within CITY block limit tables are eligible to apply.
6. Providing work flow system that allows online review, approval, denial of parking permit applications by CITY staff or by CONDUENT as designated by the CITY.
7. Allowing partially completed permit applications to be completed at another time by the applicant or CITY staff.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1008 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 16 -
8. Providing a “Frequently Asked Questions” (“FAQ”) page to assist applicants through the permit application process.
9. Providing a basket feature [shopping cart] that allows multiple permits to be registered to one residence in one transaction with multiple fee options based on the permit type and amounts purchased
10. Providing automated expiration date and renewal noticing via mail and email to permit holder with CITY determined parameters.
11. Providing customers who opt in to receive email and/or text, messages regarding the approval or status of their permit application.
12. Providing real-time permit issuance data such as, but not limited to, permit number, license plate, residential address, district number, and valid dates to CitySight® Enforcement software.
13. Check for unpaid parking citations and disallow issuance of permits before citations are paid.
14. Allow for seamless processing of payment of unpaid citations before allowing online issuance of permits.
15. Allow for the removal and addition of various parking permit zones and addresses as approved by CITY.
16. Allow residents in residential parking permit zones to request guest permits online.
17. Emailing receipts for permits purchased online.
18. Tracking customer name, address, email address, phone number, parking permit history, vehicle type, and vehicle registrations.
19. Providing the City the ability to edit customer permit accounts/records (e.g., customer name, address, phone number, email address, vehicle information, notes, etc.), and maintain an audit history for all inputs and changes made by staff/contractor
20. Allow for notes to be added by City staff to accounts during and after the permit registration process.
21. Allow City staff to search, update information, perform queries, and run reports and reconciliations.
22. Providing the City the ability to monitor the number of permit applications that have been approved, been rejected, or that are in pending status.
23. Providing the City the ability to communicate information via mass email/text with all or certain groups of current permit holders who opt-in.
24. Providing customizable, permission-based user groups for different levels of access for the City specific to the user’s roles and responsibilities.
25. Providing customizable permit type accounts for any/all permit programs based on CITY Parameters
26. Providing report creating tools with various criteria selections.
27. Providing the ability to set a limit for the number of permits allowed per permit type (e.g., two Visitor permits per address).
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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28. Providing a variable rate fee structure based on parking permit type including prorations as approved by City Council.
29. Providing option for the CITY to procure parking permit stock directly from the CONDUENT.
30. Provide a parking permit inventory stock module/report that tracks all permits issued, available, destroyed regardless if CONDUENT or City processes the permit.
K. CITY Responsibilities
1. Provide CONDUENT with permit stock, including stickers and hangtags.
2. Provide all necessary information to CONDUENT to set up new business rules and information to set up tables (account types, action codes, block limits, district codes, permit codes, prefix codes, street names, suffix codes, zip codes).
3. Review and process all incoming new permit application in eTIMS® Workflow
4. Issue temporary permits for to City patrons visiting Go SaMo center.
5. Process all other permit types not listed in CONDUENT responsibilities
6. Provide CONDUENT with information needed for all correspondence letters and order confirmations that may be sent to residents. CITY to review and approve draft letters produced by CONDUENT.
7. Notify CONDUENT of any changes needed on website regarding fees, general information, etc.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1010 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 1 -
Exhibit B
Pricing Schedule
The City will compensate CONDUENT for the Services performed in an amount not to exceed $7.2 million dollars for the Initial Term, with two additional two year renewal options in an amount not to exceed $3.1 million dollars for each Extension Period, for a total not to exceed amount of $13.4 million dollars over a total nine year period.
The CITY shall compensate CONDUENT for its services according to the terms below.
1. Primary Price Components
Per Citation Processing Fee Citation issuance is based on City of Santa Monica only.
1.1 Electronic Data Processing
Year 1 (July 2020-June 2021)
Fixed Monthly Fee up to 17,500 citations: $31,325.00
Additional Citations: $1.79 each
Year 2 (July 2021-June 2022)
Fixed Monthly Fee up to 20,000 citations: $36,874.00
Additional Citations: $1.79 each + CPI
Year 3 (July 2022-June 2023)
Fixed Monthly Fee up to 21,500 citations: $40,829.00
Additional Citations: $1.79 each + CPI
Year 4 (July 2023-June 2024)
Fixed Monthly Fee up to 21,500 citations: $42,054.00
Additional Citations: $1.79 each + CPI
Year 5 (July 2024-June 2025)
Fixed Monthly Fee up to 21,500 citations: $43,315.00
Additional Citations: $1.79 each + CPI
Option Year 6 (July 2025-June 2026)
Fixed Monthly Fee up to 21,500 citations: $44,615.00
Additional Citations: $1.79 each + CPI
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Option Year 7 (July 2026-June 2027)
Fixed Monthly Fee up to 21,500 citations: $45,953.00
Additional Citations: $1.79 each + CPI
Option Year 8 (July 2027-June 2028)
Fixed Monthly Fee up to 21,500 citations: $47,332.00
Additional Citations: $1.79 each + CPI
Option Year 9 (July 2028-June 2029)
Fixed Monthly Fee up to 21,500 citations: $48,752.00
Additional Citations: $1.79 each + CPI
1.2 Delinquent Account Collections 22%*
1.3 City Processing Credit $0.25 per citation
1.4 Credit Card Collections Fees Merchant Fee Direct Pass Through
1.5 Permit Fulfillment Service
Year 1 (July 2020-June 2021)
Monthly Fulfillment Fee: $7.00 per account
Renewal Notices: $0.30 per mailing
Meter Postage: Direct Pass Through
Year 2 (July 2021-June 2022)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.31 per mailing
Meter Postage: Direct Pass Through
Year 3 (July 2022-June 2023)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.32 per mailing
Meter Postage: Direct Pass Through
Year 4 (July 2023-June 2024)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.33 per mailing
Meter Postage: Direct Pass Through
Year 5 (July 2024-June 2025)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.34 per mailing
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1012 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 3 -
Meter Postage: Direct Pass Through
Option Year 6 (July 2025-June 2026)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.35 per mailing
Meter Postage: Direct Pass Through
Option Year 7 (July 2026-June 2027)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.36 per mailing
Meter Postage: Direct Pass Through
Option Year 8 (July 2027-June 2028)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.37 per mailing
Meter Postage: Direct Pass Through
Option Year 9 (July 2028-June 2029)
Monthly Fulfillment Fee: $7.00 per account + CPI
Renewal Notices: $0.38 per mailing
Meter Postage: Direct Pass Through
1.6 Additional Programming development $175.00/hour
2. Other Fees
2.1 Annual Consumer Price Index (“CPI”) Adjustments
CONDUENT will be entitled to CPI adjustments based on the increase in the cost of living index equal to the percentage increase in the U.S. Department of Labor, Consumer Price Index, All Urban Consumer CPI (Los AngelesAnaheim-Riverside) starting in Year Two (July 2021).
2.2 Delinquent Account Collections 22%*
* CONDUENT will be paid a 22% per citation assigned to collections. For partial payments, CONDUENT shall be paid collection fee on a prorated basis. Timing of collection notices and the application of any collection fees to be mutually agreed upon by CITY and CONDUENT. These costs are passed through to the customer and reimbursed to the City as revenue when the parking citation is paid per California Vehicle Coe Section 40200.3).
2.3 Postal Rate Increases
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1013 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 4 -
CONDUENT will be responsible for all postage costs associated with the mailing of all notices, including the first two notices (non-collections notices) and delinquent ticket notices associated with secondary collections.
CONDUENT will also be responsible for all postage rate increases for the length of the AGREEMENT term, including option years.
2.4 Reimbursement for Postage and Mailing
The CITY and CONDUENT agree to negotiate in good faith the corresponding fees associated with the Additional Mailings contemplated under Exhibit A Scope of Services. Such fees shall be negotiated on a case-bycase basis for each distinct Additional Mailings projects. CONDUENT shall invoice the City monthly for such fees, which shall be payable to CONDUENT within thirty (30) days of receipt of such invoice.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1014 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 1 -
Exhibit C
Insurance Requirements and Verifications
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).
4. Cyber Liability: Cyber Liability Insurance, with limits not less than 1,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations
5. Employee Fidelity Bond Insurance: Employee fidelity bond insurance: Employee fidelity bond insurance covering services provided by Contractor in the amount of Five Hundred Thousand Dollars ($500,000)”.
If the Consultant maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to any broader coverage and DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of a combination of (1) CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and (2) CG 20 37).
b. Primary Coverage: For any claims related to this Agreement, the Consultant’s insurance shall be primary coverage at least as broad as Insurance Services Offices Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: Consultant hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Consultant may acquire against the City of Santa Monica by virtue of payment of any loss. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of Santa Monica may require the Consultant to purchase coverage with a lower retention or provide satisfactory proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Santa Monica.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1016 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 3 -
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A-:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
CONDUENT shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the CONDUENT’s obligation to provide them. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If CONDUENT, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages from the Consultant resulting from said breach.
Subcontractors
CONDUENT shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if CONDUENT does not have employees. CONDUENT must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1017 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 1 -
Exhibit D
Performance Standards & Penalties
The Agreement between CITY and CONDUENT shall provide for performance standards and penalties to ensure acceptable levels of services provided to CITY. CITY reserves the right to waive any performance penalty at its discretion. The assessment or non-assessment of penalties, however, does not affect CITY'S option to terminate the Agreement for repeated failure to comply with service levels. Assessed penalties shall be in accordance with the level of severity of CONDUENT’s departure from the standards of performance established in this Exhibit D. As used in this Exhibit, all references to “month” shall mean a calendar month, and all references to time shall refer to time in the Pacific Standard Time zone.
A. DELAY IN PROCESSING PAYMENTS AND/OR CORRESPONDENCE
1. All payments, and correspondence shall be processed by CONDUENT in the manner and within the timeframe provided for by the business processing rules (BPR) described in Exhibit A of the Agreement between CITY and CONDUENT. Provided however, no such requirements shall be more demanding or strict than as set forth in this Exhibit D nor shall such BPR have any penalties associated therewith except as provided for in this Exhibit D. Neither the BPR nor the Performance Standards may be changed except by written agreement of the parties.
2. If any payments are not properly processed, verified, entered, and updated within one (1) business day, CONDUENT will be assessed a penalty in an amount equal to the interest income lost to CITY for the amount of the late deposit. In addition, a penalty will be assessed for each occurrence in a calendar month in the following manner:
First occurrence in month= $200 penalty
Second occurrence in month = $300 penalty
Third occurrence in month = $400 penalty
Fourth occurrence and above in month $500 penalty
(The maximum penalty amount per month is $500)
3. CONDUENT shall reimburse CITY each month for any accumulated daily payment account shortages.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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4. Because missed pickups result in late posting of payments received, there will be a penalty for each month in which one or more batches of mail are not picked up from the USPS at the designated time. The penalty will be assessed in the below manner for each occurrence of missed mail pickups from the USPS.
First occurrence in month = $200 penalty per month
Second occurrence in month= $300 penalty
Third occurrence in month= $400 penalty
Fourth occurrence and above in month= $500 penalty
(The maximum penalty amount per month is $500)
5. If CONDUENT fails to process 100% of all correspondence received by mail or electronically within three (3) business days from receipt, a penalty will be assessed for any shortfall as set forth in the chart below:
% of Correspondence Not
Timely Processed Daily Penalty
1% $200
2% $400
3% $600
4% $800
5%+ $1,000
(The maximum penalty amount per business day is $1,000) Correspondence includes initial reviews, administrative hearings, and court appeals.
B. PROCESSING ACCURACY
1. CONDUENT agrees to perform all violation processing in accordance to the Business Plan Requirements (BPR) with a 98% processing accuracy rate on a monthly basis.
Where CONDUENT’s performance is below the 98% accuracy rate and a citation is permanently suspended by mutual agreement of the parties, CONDUENT shall be liable for the penalty set forth in paragraph C.2. below, if the citation was suspended as a direct result of:
(i) CONDUENT’s failure to comply with the BPRs; or
(ii) CONDUENT’s error and the cited third party was not afforded due process according to the California Vehicle Code, and as a result had to be dismissed by CITY staff or CITY's Administrative Hearing Examiner.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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2. CONDUENT’s penalty for the shortfall in accuracy shall be assessed per citation based on the face value of the citation adjusted by the average payment rate not to exceed $1,500.00 in the aggregate per month.
C. SYSTEM MALFUNCTIONS OR INTERUPTIONS
1. CONDUENT shall correct, at no cost to CITY, all system malfunctions.
2. The computer network must maintain on-line system availability at 98% during principal hours of work when the parking citation processing system, including all subsystems, available to CITY and the public for its intended use. The principal hours of work are defined as being Monday through Friday between 8:00am and 5:00pm (Pacific standard time) (except holidays). During non-principal work hours, the system must maintain 95% availability between 5:01 pm and 11:59 pm (Pacific standard time) and 90% availability between 12:00 am and 7:59am (Pacific standard time). Prescheduled maintenance shall not count towards this calculation provided the maintenance window was communicated to the CITY.
3. The system availability requirement shall not be in effect during the period of time that CONDUENT is experiencing a force majeure event as described in Section 31 of this Agreement, at which time the standards governing force majeure event that supersede system availability standards.
4. CONDUENT agrees to provide access to eTIMS® via web portal and make the system available during the principal hours of work as defined in section C(2) of this Exhibit.·
D. SYSTEM DISCONTINUANCE
1. In the event that CONDUENT upgrades the ticket management system, CONDUENT shall provide a minimum of one hundred eighty (180) days’ written notice of intent to cancel support or maintenance of the previous ticket management system.
E. CUSTOMER SERVICE CENTER
1. A 96% monthly call completion rate must be maintained by the CONDUENT. The call completion rate shall be calculated by taking the call completion total against the total calls accepted. Penalties will be assessed for any shortfall as set forth in the chart below:
% of calls below 96% completion rate standard Monthly Penalty Up to 1% $200
2% $400
3% $600
4% $800
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1020 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement - 4 -
5%+ $1,000
(The maximum penalty amount per month is $1,000)
2. If the average answer delay in the call center exceeds two minutes in any given month a penalty of $250 will be charged for each quarter minute over two minutes of average answer delay, or wait time. The average wait time will be calculated and reported to the customer on a monthly basis according to the reported average wait time.
F. CASHIERING OFFICE
1. The interior appearance of the public area in the building shall be consistent with general workplace standards and characteristics representative of that maintained by CITY. Staff coming in contact with the public shall wear a badge with their first name.
DocuSign Envelope ID: 2C360DDB-2FB9-4384-A3F7-9357ECEDFC89
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Packet Pg. 1021 Attachment: CT# 11031 Conduent_Original Contract (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement 1 FIRST MODIFICATION OF AGREEMENT NO. 11031 (CCS)
This First Modification of Agreement Number 11031 (CCS) (“First Modification”), entered into as of _________________ (“Execution Date”), by and between the City of Santa Monica, a municipal corporation (“City”), and Modaxo Traffic Management USA Inc. (“Modaxo”) is made with reference to the following:
RECITALS
A. On or about June 25, 2020, the City and Conduent State & Local Solutions Inc. entered into Agreement Number 11031(CCS) for parking citation processing and payment services (“Original Agreement”).
B. On or about March 29, 2024, the City, Modaxo Traffic Management USA Inc., and Conduent State & Local Solutions Inc. entered into a Consent, Assignment and Assumption Agreement of Agreement Number 11031(CCS) (Assumption Agreement) which transfers to Modaxo all rights, benefits, duties, and obligations Conduent State & Local Solutions Inc. may have under the Original Agreement. The Original Agreement and Assumption Agreement may be referred to collectively herein as the “Agreement”.
C. The City and Modaxo desire to modify the Original Agreement to incorporate additional services related to automated bus lane enforcement services, as provided by Hayden AI Technologies, Inc., pursuant to the authorization granted under Agreement No. 11617, and in compliance with Assembly Bill 917 regarding data privacy and processing.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Agreement as follows:
1. The first paragraph preamble of the Original Agreement is hereby deleted and replaced with the following paragraph:
This Professional Services Agreement (“Agreement”) entered into as of 06/25/2020 (“Execution Date”), by and between the City of Santa Monica (“City”) and Modaxo Traffic Management USA Inc. (“Conduent” or “Modaxo”) (referred to herein collectively as the “Parties”) is made with reference to the following:
2. Section 2 of the Agreement entitled “Conduent Services” shall be deleted in its entirety and replaced with the following paragraph:
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506 3/24/2025
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Packet Pg. 1022 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 2 Modaxo Services. Modaxo will perform all of the services described in Exhibit A, Scope of Services (“Services”) and the additional services (“Additional Services”) described in Exhibit A-1. Modaxo will complete the Services in accordance with Exhibit B, Pricing Schedule, and the Additional Services in accordance with Exhibit B-1, Pricing Schedule for Additional Services.
3. The following paragraph shall be added to Section 4 of the Agreement entitled “Compensation”:
Additional Services Compensation. The City shall compensate Modaxo for the Scope of Services in Exhibit A of the Original Agreement and Additional Services outlined in Exhibit A-1 in a total amount not to exceed seven million two hundred thousand dollars ($7.2 million) for the Initial Term, with two additional two-year renewal options in an amount not to exceed three million one hundred thousand dollars ($3.1 million) for each Extension Period, for a total not to exceed amount of thirteen million four hundred thousand dollars ($13.4 million) over a total nine-year period.
4. Subsection 27.2 (Data Ownership) of Section 27 (Compliance with Data Security Requirements) is hereby deleted and replaced with the following:
27.2 Data Ownership. All vehicle, and transaction data originally collected from City, regardless of where the Services is hosted, is and shall at all times remain the sole and exclusive property of the City. Data shall be stored and disposed of in compliance with all applicable federal and state laws, including but limited to AB 917. Modaxo is not permitted to use any such data for any purpose except as necessary to provide and operate the Solution for the City under this Agreement unless preapproved in writing by the City. Modaxo shall not use such data for its own purposes or disclose, share, sell, or license it to third parties.
Modaxo shall provide a perpetual, non-exclusive, irrevocable right and license to the City to use any reports and data collected for the City by Modaxo in performance of this Agreement.
5. Exhibit D (Performance Standards and Penalties) of the Agreement is modified to add the following section as set forth in Exhibit D-1:
G. AUTOMATED BUS LANE ENFORCEMENT SYSTEM STANDARDS:
Modaxo shall not incur any performance penalties due to the City’s inability or non-performance of the tasks provided in Exhibit A-1, City Responsibilities.
6. Exhibit A-1, Exhibit B-1, and Exhibit D-1 are attached hereto and incorporated herein Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1023 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 3 by this reference.
7. Execution in Counterparts. This First Modification may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification. Any signature to this First Modification transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
8. Except as expressly modified by this First Modification, all other terms and conditions of the Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By:
______________________________
RICK COLE
City Manager
ABC Corporation
#VENDOR
By:
_______________________________
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
DOUGLAS SLOAN
3/22/2025
City Attorney
3/24/2025
Trellint
Jim Vaca
General Manager
Interim City Manager
3/24/2025
Elaine Polachek 3/25/2025
Nikima Newsome
City Clerk
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Packet Pg. 1024 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 4 Exhibit A - 1
Additional Services
Modaxo shall provide and support a software interface to the City for the City’s contract with Hayden AI Technologies Inc. (Hayden AI) an Automated Bus Lane Enforcement System (“ABLE System”) that will accept violation data and allow the parties to process violation data received from Hayden AI’s camera technology (“Modaxo Image Review System”). The image review system will enable approved City Staff to review, approve, or reject violations and issue Notices of Violation or Warning Notices.
Modaxo shall be compensated by the City for the Additional Services described in this Exhibit A-1 at the rates described in Exhibit B-1.
The Additional Services shall be co-terminus to the Initial Term or, as applicable, to the extension term as described in the Agreement.
Deliverables and Tasks
User Acceptance Testing
Deliverables, as identified herein, unless otherwise specified, shall be made available to the City for user acceptance testing and accepted by the City within fourteen (14) calendar days of delivery to the City by Modaxo, unless the City requests revisions to such deliverable in which case Modaxo will have fourteen (14) days to address the City’s requested revisions and return such revisions to the City upon which the City will have a further fourteen (14) calendar days to review and approve such deliverable. If a deliverable is not accepted by the City in writing within fourteen (14) days of the revised deliverable being provided, such deliverable will be deemed accepted by Modaxo.
Deliverable 1: Digital Image and Violation Data Collection and Processing Modaxo will receive digital images and violation data captured by Hayden AI to create a violation evidence package for the City to complete a final review and authorize the issuance of a citation or reject the evidence. Modaxo will complete the following tasks to provide the Additional Services:
Task 1.1: Provide the City with Modaxo image review processing system supporting the life cycle of violation processing. The system will enable designated City staff to:
• Review, reject, or approve violation events.
• Access all violation-related data and images.
• Perform searches, update records, and dismiss or void events.
Task 1.2: Retrieve violation evidence data from the Hayden AI secure site daily, upload the data into the Modaxo image review system, and send approved violations or warnings to the City’s citation processing system (eTIMS®).
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1025 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 5 Task 1.3: Provide the City access to the Modaxo image review processing system for viewing violation evidence packages; information accessible in the Modaxo image review processing system shall include relevant violation images, video, and metadata. All images will be stored in a format agreed upon by both parties. Evidence package information to consist of:
• Two (2) context still images of the vehicle identified as parked in the bus lane or bus zone. • One (1) region of interest shot of the vehicle license plate. • Vehicle license plate information.
• One (1) 10-second video of incident.
• Associated metadata to store: time, date, location, bus number, and violation type.
Deliverable 2: Secure Online Reports for Citation Data Management Modaxo will provide secure, web-based reports to manage all ABLE-related data, in compliance with applicable privacy laws.
Task 2.1: Maintain the confidentiality, integrity, and availability of collected data as required by CA Assembly Bill (AB) 917. Data will not be shared, repurposed, or monetized except as mutually agreed herein.
Task 2.2: Provide a secure database for storing violation data and images to support the review of ABLE evidence packages.
Task 2.3: Implement reports for City to view and manage violation data, including rejected and approved violations.
Task 2.4: Create a database that enables City staff to search, sort, and analyze violation data by various parameters, including event date, bus route and bus identification number, vehicle plate, and reject category.
All metadata required in Section 6.2 are to be maintained by Modaxo.
Deliverable 3A: California Department of Motor Vehicle Data Integration Modaxo will provide integration with the California Department of Motor Vehicles (“DMV”) database for the purpose of retrieving the registered owner (“RO”) information necessary for the evidence package review process in accordance with applicable law.
Task 3.1: Enable integration with the California DMV to retrieve RO information based on a vehicle license plate (“VLP”) number of the vehicle identified as parked in the bus lane or bus zone.
Task 3.2: Process DMV name and address transactions and update records as needed. The system will allow manual entry of RO information when required. The Modaxo system will update the evidence and violation processing database overnight.
Task 3.3: Submit RO data requests to the DMV every business day with re-requests sent per prescribed timelines. Modaxo is not responsible for any monetary damages resulting from the dismissal of potential violations due to inability to obtain RO information within the statutorily Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1026 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 6 provided processing timeline.
Deliverable 3B: Out-of-State (OOO) Department of Motor Vehicle Data Integration Modaxo will facilitate communication with out-of-state (“OOS”) DMV offices to obtain RO information necessary for the evidence package review process in accordance with applicable law.
Submit requests to appropriate OOS DMV on a fixed schedule which varies by state, and with rerequests sent per prescribed timelines. Re-requests to be sent as allowed for in final processing timeline. Modaxo is not responsible for any monetary damages resulting from the dismissal of potential violations due to inability to obtain RO information within the statutorily provided processing timeline.
Task 3.1: Enable retrieval of RO information from OOS DMV’s based on the VLP images of the vehicle identified as parked in the bus lane or bus zone.
Task 3.2: Process DMV name and address transactions and update records as needed. The system will allow manual entry of RO information when required. The Modaxo system will update the evidence and violation processing database overnight.
Deliverable 4: Reports
Modaxo will make available to the City weekly reports based on violation data:
• Citations approved, by officer and violation type.
• Citation dismissals, by officer and violation type.
• Records updated and any errors encountered during processing.
Deliverable 5: Image Review System Training and Documentation Modaxo will provide training and documentation for City staff.
Task 5.1: Conduct training sessions for City personnel. Modaxo shall provide the City with the opportunity for three (3) training sessions to be conducted at a mutually agreed upon date, time and location.
Task 5.2: Provide access to user and functional manuals.
Deliverable 6: System Integration and Notice Development Modaxo will support the integration of Hayden AI’s camera system evidence package data into Modaxo’s image review and violation processing system (“System”) and send approved evidence package data to the City’s current citation processing system, eTIMS®. Events will be ingested from Hayden AI and processed through Modaxo’s System and eTIMS according to the following general schedule:
Step Description Processing System Schedule (Calendar Days) #1: Violation Capture Hayden AI Day 1
#2: Ingestion Modaxo’s System Days 2-4
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1027 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 7 #3: SMPD Review SMPD Manual Cite Review Days 4 - 10
#4: Transfer to eTIMS eTIMS Days 10-11
#5: Printing and Mailing
including Warning/Violation
Notices
Modaxo Vendor Days 11-14
Task 6.1: Integrate Hayden AI’s evidence package data into Modaxo’s System with City accepted/approved violation/warning events transmitted as parking violations to eTIMS® following the City’s current business rules and citation lifecycle.
Task 6.2: Facilitate the development of Notices of Infraction and Warning Notices by sending evidence package information to eTIMS®. The evidence package will consist of:
• Two (2) context still images of the vehicle parked in the bus lane or bus zone. • One (1) region of interest shot of the vehicle license plate. • One (1) 10-second video of incident.
• Associated metadata to provide will be: time, date, location, bus number, VLN, registered owner information, and violation type.
Task 6.3: Configure eTIMS® to support the processing of metadata and images from the approved Hayden AI ABLE violation evidence packages:
• Configure eTIMS® to align ABLE citation processing with the City’s existing parking citation processing business rules and life cycles.
• Configure eTIMS® citation records to accommodate data fields related to ABLE violations such as – time, date, location, bus number/bus route, etc. • Create new notice/violation types (Bus Lane and Bus Stop) with eTIMS® business rules and program logic to support payment, customer service, and adjudication processes. • Set-up eTIMS® reports to support ABLE violation processing and payments. • Establish on-line web capability for motorists to view ABLE evidence packages via weblink and ID code sent as part of the notice of violation.
Deliverable 7: Additional Compliance and Features
• Warning Notices: The Modaxo eTIMS® system will issue warning notices only during the first 60 days of enforcement. The 60-day warning period will also apply if new ABLE camera systems are installed on additional bus routes after the initial implementation period. The City shall be responsible for notifying Modaxo of the date any warning period will commence and terminate.
• Data Security: Modaxo will ensure that all such data is stored securely, managed, and purged as set out herein, and in accordance with applicable law. • Customization: Modaxo will work with the City to develop violation rejection codes tailored to specific enforcement needs (e.g., bus lane/bus stop violations, etc.).
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1028 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 8 Deliverable 8: Evidence Package
• Evidence package will be delivered to City by Modaxo via Modaxo’s System within four days including weekends from the time when the evidence was captured by Hayden AI. • Once the City completes the adjudication of the evidence package via Modaxo’s System, Modaxo will be responsible for processing and mailing the Notices of Infraction within three days after the City has ruled on the status of the evidence package. • Modaxo will secure the RO information from CADMV or OOS DMV when available prior to making the evidence package ability to City via Modaxo’s System.
Deliverable 9: Request to Review of the Video Image Evidence by Registered Owner • In compliance with California statute, Modaxo agrees to develop and provide public access to a web-based portal to accept request to view video images from a vehicle registered owner and allow review of the video through the online portal. Modaxo will develop and provide a webbased portal. • If the registered owner does not have a way to view the video images on the public access webbased portal, information will be provided that the recipient can visit a City of Santa Monica public library and use the computer there.
• Modaxo agrees to provide notification of how a registered owner may request access to the video image.
Deadline for Delivery of Completed Modaxo Image Review System to City • By no later than 90 days after the Execution Date of this First Modification, Modaxo must deliver to City for City’s approval a completed and functioning Modaxo Image Review System.
City Responsibilities
To process citations issued under the ABLE enforcement system in compliance with California statute, the City must complete the following tasks:
• Modaxo’s System: Use Modaxo’s System to initiate an evidence package review daily. • Citation Review: Complete citation reviews within 10 days of violation. For the purposes of this section, the receipt of evidence package is the date that the evidence package is viewable in Modaxo’s System.
• Review Actions: Complete the following tasks:
1. Log into Modaxo’s System and review the evidence package in the review queue.
2. Review CA DMV No-Hit in the Vehicle Registration No-Hit Queue.
3. Verify, approve, or reject events and use the reject reasons below to categorize the event.
4. If the event is rejected, staff shall select one of the following reasons:
- Test Event
- 11 Days Older
- Accident
- Awaiting Right Turn
- Construction/Slurry/Resurfacing
- Dark Environment (Rain)
- Duplicate
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1029 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 9 - Equipment Malfunction - Location Error - No violation - Other - Plate - Foreign - Plate - Obstructed/Not Visible - Plate - Unreadable/Damaged - Poor Image - Vehicle - Police - Vehicle - Fire - Vehicle - Authorized Transit (e.g., Dash/School, etc.) - Vehicle - Local State/Federal Government - Vehicle - Utilities - Vehicle - ADA/Paratransit - Vehicle Moving - Video Skipping or Poor Quality - Special Event Closure - Warning Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1030 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 10 Exhibit B - 1
Pricing Schedule for Additional Services
The City shall compensate Modaxo for the Scope of Services in Exhibit A of the Original Agreement and Additional Services outlined in Exhibit A-1 in a total amount not to exceed $7.2 million for the Initial Term, with two additional two-year renewal options in an amount not to exceed $3.1 million for each Extension Period, for a total not to exceed amount of $13.4 million over a total nine-year period.
Additional Services described in this Exhibit A-1 are at the following rate:
Item Description Price
Fixed Monthly Service Fee $ 2,425.00 (Subject to annual CPI adjustment) Per Citation/Warning/ABLE Notice
Fee
$ 0.65 (Subject to annual CPI adjustment)
Monthly Fee per Camera per Bus $ 100.00 (Subject to annual CPI adjustment) Postage Direct pass through per notice of violation mailed Estimated annual costs based on a pilot program of 10 buses issuing approximately 500-550 citations per month:
$ 49,746 Year 1
$ 51,227 Year 2, assumed at 3% CPI
$ 52,764 Year 3, assumed at 3% CPI
$ 54,347 Year 4-Option, assumed at 3% CPI
$ 55,978 Year 5-Option, assumed at 3% CPI
The Additional Services shall be co-terminus to the Initial Term or, as applicable, to the extension term as described in the Agreement.
The Fixed Monthly Service Fee, Per Citation Notice Fee, and Monthly Fee per Camera per Bus set out above shall be adjusted annually as described in the Original Agreement (Exhibit B, Section
2.1).
Postage fees shall be reimbursed directly to Modaxo by the City.
The Fixed Monthly Service Fee, Per Citation Notice Fee, Monthly Fee per Camera per Bus, and Postage costs, for the ABLE System services shall be invoiced by Modaxo to the City monthly.
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1031 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane 11 Exhibit D - 1
Performance Standards & Penalties
G. AUTOMATED BUS LANE ENFORCEMENT SYSTEM STANDARDS
MODAXO shall not incur any performance penalties due to the City’s and Hayden AI Technologies inability or non-performance of the tasks provided in Exhibit A-1, Responsibilities.
Docusign Envelope ID: 2645E4B2-28ED-45C4-8635-8BDC85A57506
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Packet Pg. 1032 Attachment: #11031 Modaxo_formerly Conduent_1st Modification (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after theofficial votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of SantaMonica.
All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seeking a “publicbenefit.” If the“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.
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Packet Pg. 1033 Attachment: Modaxo-Trellint OAKS FY25-26 (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement Citation
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-monthperiod;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
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Packet Pg. 1034 Attachment: Modaxo-Trellint OAKS FY25-26 (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement Citation 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.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal.
Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form. https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards/
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $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. ✔
Docusign Envelope ID: EE817EC9-C830-4C17-A611-483ECA7267B1
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Packet Pg. 1035 Attachment: Modaxo_Levine Act Signed 11-18-25 (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement 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.
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 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.
Scott Winks Group Leader Modaxo Traffic Management USA Inc.
Docusign Envelope ID: EE817EC9-C830-4C17-A611-483ECA7267B1 11/18/2025
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Packet Pg. 1036 Attachment: Modaxo_Levine Act Signed 11-18-25 (7569 : 2nd Modification of Contract with Modaxo for Automated Bike Lane Enforcement City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.K
1 of 8
To: Mayor and City Council
From: Oliver Chi, City Manager, Office of Economic Development Subject: Approval of Lease Agreement with California Roadhouse, Inc. for 256 Santa Monica Pier
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines
2. Authorize the City Manager to negotiate and execute a Lease Agreement with California Roadhouse, Inc. for 256 Santa Monica Pier.
Summary
After a competitive assessment process consistent with the City’s Pier leasing guidelines – which included engagement and review by the Santa Monica Pier Corporation Board (SMPC) – staff is recommending that the City Council authroize a lease with California Roadhouse for the property idetnified as 256 Santa Monica Pier (256 SMP). Of note, California Roadhouse was selected in part due to their commitment to reviving live music and ability to quickly activate the space within after lease execution.
Discussion
The City engaged California Realty Group (CRG) to initiate a competitive leasing process for 256 SMP to attract high-quality tenants aligned with the strategic goals of the SMPC as outlined in the Pier Leasing Guidelines. CRG created the marketing brochure (Attachment A) and marketed the opportunity on LoopNet, CoStar, National Retail Email, Local Broker Email Marketing, National Broker List, and to the City’s Pier
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Leasing interest list. There were over 100 inquiries, dozens of tours, and 9 submittals by the deadline of July 10, 2025.
Timeline of Key Activities
• Broker Received Nine Proposals by Deadline: July 10, 2025 • First-Round Evaluation (9 Teams): July 17, 2025
• Second-Round Evaluation (5 Teams): August 27, 2025
• Third-Round Interviews (2 Teams): September 2 & 4, 2025 • Pier Leasing Committee – September 29, 2025
• Pier Corporation Board – December 15, 2025
• Commence Lease Negotiation – December 16, 2025
The two finalists, Mixue and California Roadhouse, demonstrated strong financial capacity, a clear business vision, and willingness to provide temporary activation during permitting. Both were invited to present on:
• Business concept
• Team qualifications and capacity
• Temporary activation strategy
• Minimum term requirements
• Construction timeline
• Anticipated opening date
Ultimately, California Roadhouse stood out as the best fit as their vision aligns with Santa Monica’s music and culinary culture. The dining menu offers hearty and healthy options: ranging from traditional burgers and steaks to vegan and gluten-free options along with smoothies, coffee, and craft beer. The team includes seasoned restauranteurs and music professionals with deep ties to the Santa Monica community.
California Roadhouse emphasized its commitment to reviving live music at the Pier and can start temporary activation within weeks of lease execution. In addition, they are expected to have minor downtime with primarily renovation in the kitchen, enhancements to the acoustics and monitor displays, and (furniture, fixtures, and equipment (“FF&E”) upgrades.
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Proposed Terms:
The table below outlines the key terms and conditions of the proposed Lease as agreed to in concept by the City and California Roadhouse.
PREMISES 256 Santa Monica Pier
TENANT California Roadhouse, Inc.
USEABLE SF Approx 4,112 SF (3,039 SF interior + 1,073 SF patio) TERM Five (5) Year Initial Term + Five (5) Year Option to Extend* *contingent upon completion of tenant improvements within City approved construction schedule.
RENT Six months following the commencement date, tenant’s rent would be $26,728 monthly ($6.25/SF interior + exterior) subject to annual Consumer Price Index (CPI) adjustments, plus NNN. Base rent shall be subject to an annual increase of three (3%) percent.
CAM Tenant would pay Common Area Maintenance (CAM)
charges at a rate of $10.66 per square foot annually.
Beginning July 1, 2027, CAM will adjust every two years based on CPI, with increases capped at no less than 3%
and no more than 6% annually.
PERMITTED USE Subject to regulatory approvals, the premises would operate as a casual dining restaurant featuring American cuisine with vegan options, alcoholic and non-alcoholic beverages, smoothies, and coffee, together with a curated live music daily program.
The use also includes catering, take-out service, private events, limited branded merchandise sales, and minor
ancillary entertainment elements. Alcohol service will
require appropriate licensing, and the tenant must operate in a high-quality, reputable manner consistent with active Pier operations. Free live-music performances within the first month of lease commencement and will continue until active construction.
CONDITION As-Is.
TENANT IMPROVEMENTS / CITY
ADVANCE
The lease would provide for a one-time City capital
contribution of up to $500,000 (the “City Advance”) to fund eligible capital improvements and permanently affixed
furniture, fixtures, and equipment (FF&E). All purchases shall be made consistent with city purchasing policy. Funds
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may be used only for approved capital improvements and
FF&E, including:
• Commercial kitchen systems
• HVAC, electrical, plumbing, and life safety upgrades
• Stage, sound, and lighting infrastructure
• Built-in bar improvements
• Structural or code-related improvements
• Associated architectural, engineering, and permitting costs
All City-funded improvements and FF&E would become
property of the City upon installation at the end of the lease.
Funds may not be used for working capital, inventory, food or beverage purchases, payroll (except construction labor), rent, utilities, debt service, or owner distributions.
Disbursement Structure
The City Advance will be disbursed in three stages:
1. $225,000 upon City approval of scope, budget, and
schedule
2. $225,000 upon documented expenditure of at least
$225,000
3. $50,000 retainage upon substantial completion, final inspection approval, and lien releases
Lease will include structured disbursement safeguards,
audit rights, and a five-year declining repayment (clawback) provision to protect public funds.
Worker Protections and Additional Conditions
Worker Protections
On February 10, 2026, the City adopted Ordinance Number 2847 (CCS), amending Santa Monica Municipal Code (SMMC) Chapter 4.66, Recall of Workers, to provide for recall of eligible workers laid off from hotels on City-owned property and eligible workers laid off from hospitality businesses located on the Santa Monica Pier, and adding SMMC Chapter 4.69, Retention of Workers, to provide for retention of workers for hospitality businesses on the Santa Monica Pier for a period of 90 days after a change in control of the business (the Worker Protection Ordinance).
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The Worker Protection Ordinance became effective on March 12, 2026, and its provisions will be applicable to the lease on a going-forward basis. In the event of a change in control of the California Roadhouse, the successor employer will be required to retain the employees of the prior employer for a period of 90 days after the change in control. This approach is consistent with how ordinances are generally applied and case law, particularly given there are consequences for violation of the ordinance, including monetary damages. California courts have rejected attempts to apply ordinances retroactively when doing so would impose new liability for conduct occurring before enactment. See, e.g., City of Monte Sereno v. Padgett (2007) 149 Cal.App.4th 1530.
Hospitality workers were displaced when Rusty’s Surf Ranch, the prior tenant at 256 SMP, ceased operations in 2025, prior to the effective date of the Worker Retention Ordinance. Although these workers do not qualify for retention rights under the Worker Protection Ordinance, City staff and California Roadhouse propose negotiated lease provisions that provide a retention pathway for the former Rusty’s workers pursuant to conditions that are similar to those in the Worker Protection Ordinance by ensuring that eligible former employees receive a meaningful opportunity to return to work at the leased premises through a structured interview process and mandatory minimum hiring percentages tied to a defined hiring window. Workers who are rehired are guaranteed at least 90 days of employment, during which they may only be terminated for good cause, lawful cause, or a bona fide reduction in force. The provision also requires written job offers, objective retention standards, and detailed recordkeeping, allowing the City to monitor and verify compliance.
These measures create a comprehensive worker retention framework that meet the goals of the Worker Protection Ordinance by promoting employment continuity and supporting workforce stability while preserving operational flexibility for the tenant.
The City Advance
The City’s financial contribution in the amount of $500,000 (the “City Advance”) to fund eligible capital improvements and FF&E would serve valid and legitimate public
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purposes. These purposes include, without limitation: (i) activation of publicly owned property; (ii) stimulation of local economic activity; (iii) generation of sales and other tax revenues; (iv) creation and retention of employment opportunities; (v) enhancement of neighborhood amenities and visitor-serving uses; and (vi) long-term occupancy, activation, and responsible stewardship of the Premises. Tenant’s receipt of the City Advance would be expressly conditioned upon the tenant’s continuous operation of its restaurant business at the leased premises and the ongoing provision of economic and community benefits to the City.
Recommendation and Next Steps
The following findings support the recommendation that Council approve the proposed five-year lease term, with an additional five-year extension option, in accordance with Section 7.5 of the Pier Leasing Guidelines.
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.
California Roadhouse proposes to reinvigorate the Pier’s live music scene and restore an important experiential element consistent with the Pier’s historic vibrancy. Based on the current tenant inventory outlined in the Pier Leasing Guidelines, California Roadhouse would serve as the only dedicated live music venue on the Pier. This distinctive use enhances the Pier’s identity, diversifies its offerings, and strengthens its long-term economic and cultural viability as a destination for residents and visitors alike.
II. The proposed project will require substantial capital investment and provide an exceptional return opportunity to the City.
The City Advance would enable substantial, long-term improvements that exceed cosmetic upgrades. The investment ensures that the space is modernized,
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energy-efficient, and positioned for sustained success. Importantly, receipt of the City Advance would be expressly conditioned upon California Roadhouse’s continuous operation of its restaurant and live music business at the leased premises and the ongoing provision of measurable economic and community benefits to the City. This structure protects the public’s investment while aligning the tenant’s performance with the City’s long-term objectives.
III. The proposed project will enhance the mix of uses on the Pier while remaining consistent with its unique character.
California Roadhouse will introduce a dynamic blend of dining and entertainment that expands the Pier’s existing mix of uses. The menu will feature a wide range of offerings, including:
• Traditional favorites such as steak and potatoes
• Smoothies and coffee service
• Vegetarian and vegan options
Live music programming creates an experiential destination that complements the Pier’s visitor-serving focus. This combination of culinary diversity and entertainment programming reinforces the Pier’s identity as a lively, inclusive, and community-oriented environment.
IV. The proposed project will provide significant enhancement to the visitor experience at the Pier.
California Roadhouse intends to partner with School of Rock to host student performances on its stage, providing young musicians with meaningful performance opportunities while creating engaging programming for visitors.
These performances will initially serve as temporary activation during permitting and transition then evolve into permanent weekend morning programming upon full operation. This initiative strengthens community ties, supports youth arts
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education, and enhances the Pier as a destination that celebrates local talent and intergenerational engagement.
Environmental Review
The lease agreement is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. Therefore, the lease of the existing property at 256 Santa Monica Pier is exempt from CEQA.
Financial Impacts and Budget Actions
The recommended action is estimated to result in an increase of $325,000 annually in rent to the Pier Fund. If approved, the revenue adjustments will be included in the FY 2026-27 Budget that will be proposed for adoption in June.
Prepared By: Wendy Siao, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. 256 SAMO Pier Flyer (Final)
B. 2025_Pier LeasingGuidelines_Approved
C. Levine Act Disclosure CAR
D. Oaks Intiative CAR
E. PW SB7 SB854 CAR
F. ADD-TO: Oaks Initiative Notice - California Roadhouse Inc_
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256 Santa Monica Pier
Santa Monica, CA 90401
World Famous
Santa Monica Pier !
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Packet Pg. 1045 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Premises 4,112 Sq Ft
Includes Patio
Term
Rent
3 Years
Longer Term Negotiable
Parking Municipal Lot
Available Immediate
Use Restaurant / Experiences
Contact Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
$6.50 PSF / NNN
CAM $0.89 PSF
Condition Restaurant with fixtures
- Plus annual increases
- Percentage rent considered
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1046 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1047 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1048 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) For Lease
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1049 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Location Map
Location
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
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Packet Pg. 1050 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) About The Santa Monica Pier
Visitors from Near and Wide
International Feeder Markets
The world famous Santa Monica Pier is a
major draw for tourism in the region, serving
as one of California’s top tourist attraction
and a significant economic driver.
o California: 54%
o US Residents: 25%
o International: 21%
Top International Visitors: UK/Ireland; Western
Europe; Asia; South America; Mexico/ Central
America; Western Canada; Scandanavia
*Photo & Data Credit: Santa Monica Pier Corporation
! 12+ Million Annual Visitors
! 4.5 Million Summer Visitors
! 65 Thousand Average Weekend Visitors
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing informationTerms of sale or lease are subject to change or withdrawal without notice
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Packet Pg. 1051 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) • Pacific Park & Roller Coaster
• Santa Monica Pier Carousel
• Heal the Bay Aquarium
• Fishing and Angling
• Outdoor Events, Concerts, Movies
Main Attractions
Filmed / On Location
"The Sting" (1973)
"Night Tide" (1961)
"Rebel Without a Cause" (1955):
"Lords of Dogtown" (2005):
"Forrest Gump" (1994):
"Iron Man" (2008):
"Her" (2013):
"Hannah Montana: The Movie" (2008):
"Three's Company" (1977-1984) TV Show
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1052 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Site Plan
For Lease
Carousel
Seaside
on the Pier
The
Albright
Pacific Park
Bubba
Gump
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1053 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Floor Plan
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1054 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Bring Us Your Big Ideas!
*Photo Credit: City of Santa Monica
Restaurant / Experiences
256 Santa Monica Pier
Santa Monica CA 90401
Contact:
Craig Zund
(310) 394-4050 x 4710
[email protected]
DRE# 01897508
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice.
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Packet Pg. 1055 Attachment: 256 SAMO Pier Flyer (Final) (7586 : CA Roadhouse Lease Agreement) Approved by SMPC: June 16, 2025
Approved by City Council: July 8, 2025
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 has 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 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 relate to its beach and ocean setting. These activities and services are 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 that can be developed, used, and preserved as a public resource for the enjoyment of the public. The commercial leasing and licensing program on the Pier is to be City managed for the benefit of the 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 all guests (a Guest is any person who visits the Pier).
II. Provide for a diversity of business, entertainment, events, educational, and cultural activities as well as active and passive recreational opportunities on the Pier.
III. Operators on the Pier provide quality and value goods, food, and services.
IV. Establish pricing of leasehold and license occupancies that reflects fair market value that supports the fiscal self‐sufficiency of the Pier; and supports viability for the economic success of the leaseholder/licensee.
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.
VI. Preserve and build on the historic elements and character of the Pier while ensuring its relevance and vitality to current and future generations.
VII. For operators on the Pier to achieve fiscal, social and environmental sustainability.
VIII. Harmonize with the surrounding beach and nearby business community.
IX. Take an incremental but continuous approach to change to advance commercial, cultural and civic opportunities on the pier.
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.
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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 guests 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, with the goal of attracting and engaging guests of all ages, social, and economic status.
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.
V. Pier programming will include both traditional and cutting-edge current entertainment, cultural, athletic and educational experiences.
VI. Promotions, sponsorships and private and public revenue‐producing events will largely offset the cost of popular and free public programming.
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.
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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. The goal of this program by the City with the assistance of the SMPC 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 be used on the Pier over time to reflect the needs of the Pier and public and changing market conditions.
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 to attract a tenant mix consistent with the Guideline’s goals and objectives.
IV. To 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
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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 breach 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. Any request to assign or sublet must first have the written consent of the Landlord. The landlord’s consent will be subject to express standards and conditions set forth in the lease.
IX. Operation and improvements to lease and license areas are subject to the City’s standard regulatory review and approval process.
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.
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. Exclusive 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 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 ensure 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
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license timeframes and not have the majority of licenses or leases with very long terms or most 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.
II. Fixed Location Kiosks
The recommended term for fixed location kiosk licenses and concessions is from 3 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, restaurants, attractions and the 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.
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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 base rent, the City may elect to request that a lease includes a percentage 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 to 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 significant enhancement to the visitor experience at the Pier.
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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, assessments (including Possessory Interest Tax), insurance, utilities and Common Area Maintenance Fees (defined in section
7.7) as well as any duly enacted future assessment or fee that the City may elect to institute.
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 $10.68 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. To 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.
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.
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
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Packet Pg. 1063 Attachment: 2025_Pier LeasingGuidelines_Approved (7586 : CA Roadhouse Lease Agreement) 9 | P a ge
the four rental years immediately prior to the expiration of the lease.
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.
VII. Each Lease or License may have additional operational and performance standards applicable to the Tenant’s operation.
7.9 Maintenance and Environmental Responsibilities
Lessees and Licensees shall be responsible for maintaining their facilities in attractive and safe conditions, 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 appurtenances 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 operations 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
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Packet Pg. 1064 Attachment: 2025_Pier LeasingGuidelines_Approved (7586 : CA Roadhouse Lease Agreement) 10 | P a ge
and diverse economy, and improve the livability and quality of life for all community members in Santa Monica, each new or substantially amended agreement for leasehold operation shall include provisions that require sustainable practices 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, reducing 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.
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 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: 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
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 be 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.
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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 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. The 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. To maintain a vibrant mix of uses and sustainable Pier business environment 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 criterion that provides transparency in the 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.
2. 20 points (20%) ability, capacity, and skill of the prospective tenant or licensee to perform the intendent usages under the terms of the lease.
3. 20 points (20%) quality, price, and value of the services or goods to be provided.
4. 20 points (20%) uniqueness and compatibility of proposed product or service with the Santa Monica Pier,
5. 20 points (20%) financial capability for operations (short and long term), Capital Improvements, proposed rent terms and meeting financial obligations to the City.
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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).
The term “Exemplary Manner” will mean and refer to those Pier tenant or licensees who meet all 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 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 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 an 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 use in accordance with this Leasing Guideline and based on 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.
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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.
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.
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 Community Development Director by filing a letter appeal within ten (10) calendar days from 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 Community 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.
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ATTACHMENT A.
SANTA MONICA PIER LEASE AND LICENSE INVENTORY (Updated May 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 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 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
Oatman Rock Shop/ souvenirs m2m holdover Kiosk across from central plaza Hats Amazing/ hats m2m holdover Mobile vendor
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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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Packet Pg. 1071 Attachment: 2025_Pier LeasingGuidelines_Approved (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1072 Attachment: Levine Act Disclosure CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1073 Attachment: Levine Act Disclosure CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1074 Attachment: Levine Act Disclosure CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1075 Attachment: Levine Act Disclosure CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1076 Attachment: Levine Act Disclosure CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1077 Attachment: Oaks Intiative CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1078 Attachment: Oaks Intiative CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1079 Attachment: Oaks Intiative CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1080 Attachment: Oaks Intiative CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1081 Attachment: Oaks Intiative CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1082 Attachment: PW SB7 SB854 CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1083 Attachment: PW SB7 SB854 CAR [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1084 Attachment: ADD-TO: Oaks Initiative Notice - California Roadhouse Inc_ [Revision 1] (7586 : CA Roadhouse Lease Agreement)
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Packet Pg. 1085 Attachment: ADD-TO: Oaks Initiative Notice - California Roadhouse Inc_ [Revision 1] (7586 : CA Roadhouse Lease Agreement) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.L
1 of 5
To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Award and Authorize the City Manager to Negotiate and enter into an Agreement with Archistar to Provide AI Plan Check Review Services Recommended Action
Staff recommends that 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 negotiate and execute a fiveyear agreement with Archistar, Inc. for AI-assisted plan check review. This recommended award is made as an exception to the competitive bidding process pursuant to Santa Monica Municipal Code (SMMC)
Section 2.24.250(g) and is for a total amount not-to-exceed $528,000 with future year funding contingent on Council budget approval.
3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of the report. (requires 5 votes)
Summary
Staff seeks approval to enter into an agreement with Archistar, Inc. to implement an AIassisted platform that supports early-stage plan review for single family residences, accessory dwelling units and tenant improvements. In light of the City’s declaration of fiscal distress and the economic disruption resulting from the Palisades fire, staff is requesting authorization for an exception to the competitive bidding process to accelerate deployment. Immediate implementation will help streamline development review, support reinvestment, and strengthen the City’s economic revitalization efforts.
Discussion
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Some jurisdictions have begun using AI-based tools to assist with portions of the development review process by analyzing digital plans and identifying potential inconsistencies with zoning standards early in the submittal process. At Council direction, staff has begun the process of incorporating AI into the City’s development services experience to support plan review for accessory dwelling units, single-family residences, and tenant improvements through a phased six-month implementation.
After reviewing demonstrations from Archistar, IchiPlan and CivCheck, staff determined that Archistar best meets the City’s needs for automating early-stage development and permitting workflows. Archistar integrates zoning regulations, parcel data, and spatial analysis to evaluate development potential at the property level and provide visual insights into feasibility, allowing staff and applicants to quickly understand requirements such as setbacks, height limits, and floor area ratios before submitting plans. The platform is already used by public sector agencies and aligns with broader efforts in California to modernize permitting, while also meeting the City’s responsible AI and security guidelines and integrating with the City’s new permitting system, Clariti, making it the best technical and operational fit to help streamline the permitting process.
The City is requesting authorization to contract with Archistar to address urgent economic recovery needs resulting from the recent regional fires. The fires have caused widespread disruption to the regional economy, including business closures, layoffs, and the displacement of residents. These impacts have created significant economic uncertainty for local businesses and investors and have placed additional pressure on the City’s economic recovery efforts.
The City is experiencing declining private sector investment at a time when economic revitalization is critical. Current market conditions reflect an estimated office vacancy rate of approximately 35 percent and a retail vacancy rate of approximately 16 percent.
These conditions threaten the City’s revenue base and long-term economic stability. At the same time, businesses and property owners affected by the fires require timely assistance to rebuild, reopen, or pursue new development opportunities.
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Modernizing the City’s development services and permitting processes is therefore essential to supporting recovery and restoring investor confidence.
Immediate implementation of Archistar will provide an advanced digital platform that streamlines development review, increases transparency for applicants, and accelerates permitting timelines. These capabilities will allow the City to more efficiently process development proposals and reduce barriers for businesses seeking to reinvest in the community.
Utilizing the standard competitive procurement process would significantly delay deployment of this critical technology, potentially taking several months to complete.
Such delays would prolong inefficiencies in the development review process at a time when the City must respond quickly to support economic recovery. Continued delays could discourage private investment, slow rebuilding efforts, and contribute to further economic stagnation and declining City revenues.
Archistar has been identified as the vendor best positioned to rapidly deploy a proven automated development assessment platform that integrates with existing permitting workflows and provides immediate value to applicants and City staff. Emergency procurement will allow the City to implement this tool without delay, ensuring that development services can more effectively support business recovery, economic revitalization, and the City’s long-term fiscal stability.
The initial contract request amount for FY 2025-26 is $300,000. Funding for the AI plan check services was approved by Council on October 28, 2025, as part of the City’s Realignment Plan and the ongoing costs for the additional years will be incurred by the Community Development Department. The annual cost for the contract beginning in year two is $45,000 and includes a 10% contingency, resulting in a not-toexceed amount of $528,000 over the five-year performance period.
Vendor Selection
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Exception to Competitive Bidding
Staff recommends that Archistar, Inc. be retained to provide proprietary, subscriptionbased AI plan check services as an exception to competitive bidding per the Procurement Division approved ECB #396 pursuant to SMMC Section 2.24.250(g). (g) Circumstances outside the control of the City, would result in substantial economic loss, substantially compromise a legal position, or substantially interfere with a required City operation
Past Council Actions
Meeting Date Description
10/28/2025
(attachment A)
Realignment Plan
Environmental Review
The award agreement is categorically 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 agreement will provide the City with AI plan check software.
Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a contract to Archistar, Inc. for AI plan check services.
Contract Request
FY 2025-26
Request Amount
Future Years
Amount
Department/CIP Account # Total Contract
Amount
$300,000 C0109190.689000 $300,000
$228,000 01700004.529230 $228,000
Total $528,000
Future year funding is contingent on Council budget approval.
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Prepared By: Denise Smith, Principal Administrative Analyst Approved Forwarded to Council
Attachments:
A. 102825 Realignment Staff Report
B. Levine Act Disclosure Form - Archistar Signed
C. Oaks Initiative Form - Archistar Signed
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City Council
Report
City Council Meeting: October 28, 2025
Agenda Item: 11.A
1 of 36
To: Mayor and City Council
From: Oliver Chi, City Manager, City Manager's Office
Subject: Santa Monica Realignment Plan
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Recommended Actions
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 July 1, 2027 via the following direction:
1. Approve all budget adjustments and personnel authorizations required to implement the Realignment plan (Attachments A, B, & C);
2. Adopt the Parking Fee Update Resolution (Attachment D);
3. Adopt the Credit Card Convenience Fee Resolution (Attachment E);
4. Adopt resolutions authorizing non-sworn employee benefit enhancements, a Citywide winter closure, and a wellness benefit for equity alignment (Attachment F & G);
5. Introduce for first reading 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);
6. Authorize staff to assess options for expanding the SaMo Bridge facility and development of a vehicle habitation ordinance;
7. Introduce for first reading 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);
8. Introduce for first reading 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);
9. Adopt the Outdoor Dining Fee Program Resolution to institute an updated fee reduction program for parklets and sidewalk dining (Attachment K);
10.Authorize staff to assess possible expansion of the Entertainment Zone program for the Downtown, the Pier, and business improvement districts;
11.Authorize staff to assess the Pier-to-Pier ferry, beach gondola, and regional fire dispatch concepts;
12.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;
13.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);
14.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);
15.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
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development on boulevards achieves compatibility with existing residential neighborhoods;
16.Authorize staff to pause Transportation Demand Management (TDM) survey requirements for businesses;
17.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;
18.Authorize staff to continue assessing a possible 2026 parcel-tax ballot measure to sustain City-SMMUSD funding through the Joint Use Agreement; and
19.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.
Executive Summary
Santa Monica today stands at a crossroads. Once the most vibrant and activated destination on the Westside – anchored by a bustling downtown, a thriving beach economy, and a strong civic identity – the City has spent the years since COVID in a prolonged period of instability.
Disorder, homelessness, and economic contraction have weakened public confidence.
Commercial vacancies, reduced levels of tourism, and physical deterioration of public spaces have reshaped once-lively corridors. Meanwhile, fiscal pressures – including rising costs, slowed revenues, and the childhood sexual-abuse settlements – have drawn down reserves and created a projected structural General Fund operating deficit of $29.6 million in FY 2026-27.
To address these issues, staff has been working to develop a series of interconnected programs, projects, and strategies to effectuate the City Council established priorities of Achieving Safe Neighborhoods and Clean Streets; Activating Economic Opportunity and Growth; and Developing Affordable, Livable, and Secure Housing.
The overarching game plan developed by staff in response to City Council policy objectives ultimately aims to achieve a Realignment in Santa Monica through a coordinated strategy to restore order, rebuild economic capacity, and re-establish longterm fiscal health. The plan calls for the strategic use of reserve funding previously allocated by the City Council to invest in public safety, capital infrastructure, and
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organizational capacity today, in order to facilitate and encourage a renewed level of private sector investment to spur ongoing local economic growth. Based on our financial modeling, this plan will achieve stabilization of the City operation with a projected balanced General Fund operating budget by FY 2027-28.
Background – A City at a Crossroads
For decades, Santa Monica was recognized as one of the most dynamic, prosperous, and well-run cities in California. Our downtown and waterfront served as regional centers of commerce and culture, and our civic finances were among the strongest in the state.
As a testament to that fact, on July 1, 2018, the City held approximately $435.8 million in free-cash reserves – a reflection of decades of prudent financial management.
Since then, that strength has eroded. The COVID-19 pandemic collapsed tourism and disrupted daily life. Businesses closed, the Promenade emptied, and public-space maintenance slipped. In the years that followed, multiple compounding challenges have emerged, including:
• Public safety incidents became more visible and volatile. • Homelessness grew in both scale and acuity.
• The local economic situation deteriorated – our office and retail vacancy rates across the City are among the highest in Los Angeles County, with retail vacancy rates approaching 16%, and office vacancies estimated at around 35%. • Deferred maintenance has come to define the visual experience in many civic spaces.
• Public confidence in government performance has eroded.
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• The crowds that once filled the Pier and Downtown have notably reduced.
These issues – along with other contributing factors, such as the Palisades Fire – have combined to create a reality where the City has seen a significant decline in TOT and sales tax revenues, which plummeted during the most recently completed fiscal year. In particular, for that FY 2024-25, the City experienced a 6% drop in Sales Tax Revenues and a 10% drop in TOT Revenues when compared against budgeted projects. This reality has created a more significant structural General Fund deficit that is now projected to reach ~$29.1 million annually in FY 2026-27.
Against this backdrop, the City’s overall financial cash position has also deteriorated.
Available free cash reserves have fallen from over $435.8 million in total in FY 2017-18, to approximately $158 million in non-restricted reserves today – with only $98M of that amount unobligated. While the erosion of the City’s cash position is largely attributable to childhood sexual-abuse settlements – totaling nearly $230 million to date – it is clear that the City’s fiscal strength has been severely depleted during the past 5-7 years.
The result has been a City that while still rich in potential, has lost much of the focus, capacity, and confidence that once defined it.
There is no doubt that the challenges we face as a community are real, and also – everyone here at the City believes that Santa Monica can find its way back.
To address this overarching situation, staff has been working to develop a comprehensive plan aimed at achieving the City Council’s priorities to effectuate a realignment predicated around restoring safety, revitalizing key civic spaces, growing economic activity, rebuilding City organizational strength, and returning the City to fiscal balance.
Discussion
The Santa Monica Realignment plan is a coordinated roadmap that organizes a series
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of interlocking programs and projects through five strategic priorities. Three of those strategic priorities are City Council identified objectives, which have been supplemented with two additional strategic priorities aimed at rebuilding capacity within the City organization. The identified programs and projects associated with the five strategic priorities are intended to work together to create a more resilient, inclusive, and livable City.
Those five identified strategic priorities include:
1. Achieving Safe Neighborhoods and Clean Streets
2. Activating Economic Opportunity and Growth
3. Developing Affordable, Livable, and Secure Housing
4. Creating Organizational Capacity
5. Building Organizational Health
An overview of the programs and projects associated with each strategic priority is outlined in greater detail below.
1. Achieving Safe Neighborhoods and Clean Streets
Public safety and cleanliness are the foundation of civic confidence. The realignment plans calls for a new deployment model that repositions the Police Department and allied field teams to create a sustained, visible presence Citywide, all while investing in a comprehensive capital improvement program to improve the look and feel of the City’s Downtown core.
Safe Neighborhoods Program Elements
From a safety perspective, this plan calls for completely reimagining public safety efforts in Santa Monica by aligning existing and new resources to address the areas of the City where we have the greatest concerns. In particular, this means refocusing our public
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safety and outreach services in our Downtown core, which is where 36% of all calls for police service related to crime originate, and where 50% of all calls for police service related to homeless issues occur.
Police Services Deployment Plan
To begin this public safety realignment process, the City will be establishing a new Downtown Police Substation at Santa Monica Place Mall, from which we plan to dispatch our reformatted Downtown Services Unit (DSU) team in the police department.
Until recently, the City typically staffed a daily 4-person DSU police team, with a convergence of up to 10 officers being deployed every Wednesday based on established work schedules. With the new Downtown Substation and a refocusing of our approach, the realignment plan calls for a complete restructuring of how we approach public safety efforts Downtown. The updated DSU deployment plan calls for the following:
• Merge several existing special enforcement teams into the DSU, which will result in the unit having a base staffing level of 8-10 officers daily who will provide directed enforcement Downtown (on bike patrols and foot patrols), with additional officers joining the unit as needed based on week-to-week circumstances that arise on the ground.
• Supplement the efforts of the DSU by overlapping our regular patrol officer deployment in the Downtown core, which results in the daily deployment of 5 additional police officers in the area.
• Integrate our homeless outreach and social service support team into the efforts of the DSU, with 2 HLP Team Officers deployed daily into the Downtown core. • Further support the efforts of our sworn police force by hiring 8 new Public Safety Officers, to provide a constant daily non-sworn presence at high impact areas including the Promenade, Palisades Park, Tongva Park, Reed Park, and our
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Downtown parking garages.
The overarching police services deployment plan also recognizes that we have to continue investing in public safety efforts in other parts of the City. Accordingly, the plan calls for expanding our Crime Impact Team (CIT) to ensure that our renewed public safety focus Downtown does not diminish our ability to respond to crime related issues in other parts of the City. In addition, we will be expanding our traffic enforcement / motor operation, with a focus on locations throughout Santa Monica that have a high number of traffic collision and documented unsafe driving activities.
Finally, on the police services front, we have identified that we have 43 sworn officers that are eligible to retire now. Given that it takes 12 – 18 months to train and deploy a new police officer, the plan calls for authorization of 10 police officer overhires, which will help to ensure that the City does not experience a shortage of sworn officers when existing staff make the decision to retire.
Public Safety Supporting Enhancement Efforts
Outside of direct police department adjustments, our overarching safe neighborhoods program recognizes the need to align other associated public safety related operations in the City to ensure that our expanded outreach and enforcement efforts are successful. Four of the key public safety supporting enhancement efforts that are included as part of our plan involve:
• Developing a partnership plan in cooperation with Metro to address impacts that exist from end-of-line train services in Santa Monica.
o Staff has had several discussions with our counterparts from Metro regarding what a partnership framework could look like. o Those conversations have been positive, and our team in the police department are working with new Metro Police Chief Bill Scott to ensure that training standards and enforcement techniques between our two agencies are aligned, in an effort to identify a pathway where the City will
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be able to assist Metro with enforcement actions on the train platforms that exist in Santa Monica.
• Relocating the SamoShel homeless shelter out of Downtown to a more suitable site, and replace the existing sheltering model with a “healing center” approach. o Santa Monica has pioneered numerous homeless outreach and support services through the years, and our current sheltering model provides another opportunity for the City to innovate on this front. o Our current shelter provides a low-barrier congregate setting, however, it does not integrate support services provided through the adjacent Access Center, or identify distinct and clear pathway to help individuals transition from a sheltering environment, to transitional housing, and finally to permanent housing.
o Through this effort, the City is proposing to not only relocate the existing SamoShel shelter to a more appropriate location outside of Downtown, but to reimagine how the new facility will operate. To date, staff has assessed that a healing center model – one where initial sheltering options are paired with addiction treatment & mental health services, and with a direct link to move from sheltering into transitional housing options – is the best way to coordinate homeless sheltering services that support an individual’s overall stabilization and recovery.
• Invest in the City Attorney’s Criminal Unit to support police and public safety efforts.
o The plan developed calls for adding support staff to the City Attorney’s Office, to increase prosecutorial capacity in the Criminal Unit. o This additional capacity will allow for a 10 to 15% increase in filing cases, resulting in filing rate of approximately 90% of legally fileable cases (based
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on citations and arrests from SMPD), amounting to prosecuting over 3,500 criminal cases a year for misdemeanors, including Municipal Code violations.
• Assess new policy and program options.
o As staff has been maturing the overall safe neighborhoods program options, two additional policy and program options have been identified that we plan to further explore.
o First, the City of San Diego has found great success in balancing neighborhood concerns without criminalizing unhoused families and individuals living in their vehicles. To that end, staff is suggesting the exploration of a new Vehicle Habitation Ordinance that would be tailored to ensure that the City does not create an ineffectual cycle of issuing tickets, but would instead create a regulatory framework to assist those living in their vehicles with a pathway towards more sustainable and stable housing options.
o In addition, the existing SaMoBridge facility has created an important tool that our police department uses to divert individuals away from criminal prosecution and towards services. An expansion of the SaMoBridge facility would serve as a useful programmatic tool, and staff is proposing to assess options that would add additional capacity in the existing facility.
Clean Streets Program Elements
In addition to deploying strategies and programs to enhance public safety, our overarching realignment plan also identifies the need to begin improving Santa Monica’s physical environment, in an effort to reinforce civic identity and elevating the resident and visitor interface with key public spaces in the City.
Targeted Downtown Capital Improvement Project
Downtown Santa Monica serves as both the City’s civic heart and also the gateway to
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the Pacific Ocean. Years of constrained budgets and heavy use have led to visible wear and deferred maintenance across streets, sidewalks, landscaping, and civic amenities. To address these concerns, we have developed a one-time capital investment plan that seeks to deploy a ~$3.5 million capital plan to refresh aging infrastructure, strengthen the City’s civic identity, and to restore Downtown Santa Monica’s public realm.
The projects we’ve envisioned are grouped into five key program areas as outlined below, and are intended to be implemented immediately, with most of the capital enhancements planned for completion by the early part of 2026.
Urban Forestry & Green Infrastructure
The focus of this capital improvement program area is to restore canopy health, fill tree gaps, and reestablish maintenance standards. Key deliverables include:
• Comprehensive tree pruning for mature Ficus corridors (2nd, 4th, 5th Streets) to address overgrowth, improve safety, and visibility.
• Plant 37 new 36” box trees in vacant wells to restore canopy and pedestrian comfort.
• Regrade and refresh 403 tree wells with decomposed granite to eliminate trip hazards and enhance aesthetics.
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Viable Vacant Tree Wells Locations Downtown
Streetscape & Public Realm Enhancements
The focus of this capital improvement program area is to repair and refresh the everyday walking and driving environment. Key deliverables include:
• Repaint crosswalks / scrambles at major intersections to improve pedestrian safety and wayfinding.
• Replace and modernize signage and pavement markings, including Accessible Pedestrian Signal pedestrian buttons and visual clutter reduction. • Repair 20,000 sq. ft. of sidewalks and replace damaged Promenade pavers. • Install a safety barrier at Parking Structure 4 to prevent falls. • Replace 125 concrete trashcans with secure, weather-resistant models.
Civic Identity & Placemaking: Boulevards to Beaches
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The focus of this capital improvement program area is to visually unify Downtown’s gateways and civic edges. Key deliverables include:
• Gateway upgrades at Lincoln, 4th, and 5th Streets: native landscaping, recycledwater 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. • Repair the water fountains at City Hall and Tongva Park, restoring civic amenities.
Lincoln Off-Ramp – Before & After
4 th & 5th Street Off Ramp – Before & After
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4 th Street Median – Before & After
Thermoplastic Scramble @ Ocean / Colorado (2027)
Broadway Bridge Graphic Update (2027)
Downtown Event Readiness
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The focus of this capital improvement program area is to modernize tools for efficient, safe activation of public spaces Downtown. Key deliverables include:
• Standardized traffic control plans for common Downtown events. • New anti-vehicle barriers for the Farmers Market and Arizona Avenue events.
Parks & Beachside Maintenance
The focus of this capital improvement program area is to restore high-use beach infrastructure that defines the visitor experience in Santa Monica. Key deliverables include:
• Acquire a new 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.
Targeted Investments In Key Commercial Corridors
In addition to the Downtown area, Santa Monica has several other vibrant commercial corridors, including business improvement districts (BIDs)located on Montana Avenue, Main Street, Pico Boulevard, and Ocean Park Boulevard. The realignment plan allocates $500,000 for use towards engaging with our BID partners to make targeted investments to improve the physical infrastructure in identified areas.
Vision Zero Enhancement Plan
As part of our overarching clean streets program elements, we are also focused on deploying Vision Zero plans focused on infrastructure enhancements, while also embedding pedestrian and bike safety design elements into overall capital planning efforts. Key investments on this front are outlined below. Staff plans on coordinating a review of all Vision Zero related improvements with the City Council in the first half of 2026, and among the proposed plan elements are the following:
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• Adding staff capacity for traffic engineering, mobility analysis, and street safety implementation.
• Adding staff capacity to improve responsiveness for striping, signage, and roadway maintenance.
• Allocating $500K / 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.
• Integrate Vision Zero goals into CIP planning and annual budget priorities, ensuring ongoing accountability.
2. Activating Economic Opportunity and Growth
Economic revitalization is essential to the City’s long-term sustainability. With our current local office environment characterized by a vacancy rate that is projected to be ~35%, and with our retail storefronts experiencing an approximate ~16% vacancy rate, our safe and clean efforts have to be bolstered with other projects and plans focused on stimulating economic growth and private sector investment in Santa Monica.
To that end, the Realignment plan developed by staff contemplates combining safety enhancements and physical infrastructure improvements with regulatory modernization to encourage and restore private sector activity and investment. Projects and plans identified by staff related to economic development activities are further outlined below.
Creating New Large-Format Activations
Assuming the City is able to improve public safety and local infrastructure considerations, programming public spaces with regular large format activations will be an important potential driver of expanded economic activity, particularly in the Downtown core and at the Pier. In an effort to create a regular cadence of large-scale
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events in the City, the plan developed calls for the allocation of funding to support the following activities:
• Creation of 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.
Combined, the above referenced programs and plans are intended to catalyze economic renewal in Santa Monica, while generating sustainable new revenues for the City.
Transition to a Modernized and Streamlined Development Services Experience To support economic growth opportunities, it will be vital that the City develop tangible improvements that streamline our existing permitting processes. Currently, local businesses and residents, in addition to the broader brokerage and real estate community in the region, characterize the City’s byzantine permitting process as an impediment to generating renewed private sector investment in Santa Monica.
To address this issue, our plan calls for investing staffing resources and deliberate attention to make needed changes to the City’s permitting operation. The key objectives of this effort are to:
• Modernize the permit system utilizing improved process and software to experience operational efficiencies; and
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• Centralize information to improve internal coordination on project review and also provide greater transparency for customers who can follow their permit journey from beginning to end.
The end result of this investment will be a commitment from the City to meet the following permit processing timelines:
Project Type Plan Review
Turnaround Times
Residential
ADU conversions 1 week
ADU new construction 2 weeks
Single Unit Dwelling new construction 3 weeks
Single Unit Dwelling remodel 2 weeks
Non-Residential & Mixed-Use
Nonresidential or mixed-use building new construction 5 weeks Retail / Office structural tenant improvement 2 weeks
Restaurant tenant improvement 2 weeks
Commercial non-structural tenant improvements 1 week
Improvements to the development services customer experience will launch in approximately 180 days centered around the City’s new Clariti land management system and a new permitting portal on the City’s website. Of note, while achieving these updated review times will include the use of new technology, the key adjustments being made are behind the scenes, where staff is engaged in a comprehensive assessment of existing practices to identify and remove bottlenecks, procedural requirements, and code changes to facilitate more efficient process in all permitting phases from concept through approvals and construction.
Piloting Archistar AI-Based Plan Check Program
In addition, our permitting realignment plan calls for exploring what could be possible on the plan check / permitting front. Staff is requesting the deployment of one-time resources to implement an initial pilot of the Archistar AI based plan check program, which is intended to facilitate a near instantaneous online review of plans for single-unit
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dwelling and ADU related projects. As an added benefit, this partnership between business and technology teams will also serve as a model for future deployment of the City’s enterprise technology.
Sidewalk Dining / Parklet Fee Reduction & Regulatory Streamlining Program To incentivize local restaurant expansion, staff recommends reducing and eliminating certain outdoor dining fees. Specifically, Council authority is requested to waive the City of Santa Monica portion of the wastewater capacity fee (approximately $1,400 per seat) and to reduce monthly license fees to $1.00 per square foot for sidewalk dining and $2.00 per square foot for parklets, compared to current rates of roughly $2–$4 per square foot. Restaurants will continue to pay the City of Los Angeles Hyperion wastewater fee of approximately $400 per seat.
The attached Interim Zoning Ordinance (IZO) makes limited amendments to SMMC Section 9.31.200 (Outdoor Dining and Seating on Sidewalks) by deleting redundant design standards and consolidating them within the Sidewalk Dining Guidelines. This streamlining improves clarity and allows design standards to be updated administratively while maintaining safety, accessibility, and consistency in the public right-of-way.
Temporary Suspension of TDM Survey Requirements
To reduce regulatory burdens on businesses, the plan calls for temporarily suspending the annual TDM survey requirements for businesses, which the City also suspended during the COVID pandemic.
Reopening All Library Branches
To provide opportunities for individuals to pursue economic opportunities, the plan calls for reopening all City branch libraries for service 3-days per week starting in January 2026, and expanding to 4-days per week service starting in July 2026.
Expansion of Entertainment Zone Opportunities
To allow for additional activation in the City, the plan calls for the City Council to
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authorize staff to explore expanding the Downtown Entertainment Zone, while also assessing ways to allow for Entertainment Zone activations for our other BIDs located through Santa Monica, and at the Pier.
3. Developing Affordable, Livable, and Secure Housing for All Housing stability underpins the City’s broader health, and the City’s overarching plan on this front contemplates the development of new housing options, coupled with the preservation and protection of existing housing units in Santa Monica. The realignment plan identifies several new programs to advance livability in the City, and additional details are outlined below.
Adopting Vacant Property & Rent Registry Ordinances
Approval of vacant property and rent registration ordinances will help to bolster the preservation of existing housing units, while encouraging the redevelopment of vacant properties in the City.
In 2023, Council adopted an updated property maintenance ordinance that resulted in the identification of approximately 170 vacant properties, with approximately 30-40 of those properties in substantial disrepair and require active monitoring. The new vacant property registration ordinance will provide additional tools for the City to enforce the requirements of the property maintenance ordinance by requiring that owners of vacant or substantially vacant properties to register their assets with the City, and depending on the condition of the property, pay an escalating fee for those parcels that are in greater states of disrepair. The ordinance enhances clarity and enforcement of vacant property standards without adding major new requirements, improving community safety and neighborhood preservation.
In addition, the rent registry will seek to require the owners of the ~15K non rentcontrolled housing units in Santa Monica to register with the City, to allow staff to better monitor conditions associated with market rate rental housing stock in the City. Staff has assessed the resources necessary to implement the rent registry, and we have studied rent registries from other jurisdictions in developing our proposed local
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ordinance. To coordinate an implementation process locally that allows time for the City to continue assessing possible partnership opportunities with the Rent Control Board in deploying our rental registry, the ordinance allows for the City to begin development of the rent registry program, while also allowing time during calendar year 2026 for the City and Rent Control Board staff to identify and coordinate on the best approach for implementation.
Adding Code Enforcement Resources
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, our plan calls for the addition of new code enforcement team staffing. The staffing proposal being put forward will allow code enforcement coverage seven days per week with the potential for evening staffing.
Focus Housing Development Projects Downtown
As the City continues to pursue implementation of our Housing Element, staff is seeking authority to focus the City’s direct pursuit of housing development opportunities in the Downtown core. This approach will have dual benefits – the revitalization of the Promenade will require an increase of housing in the downtown core, and also, the City owns particularly compelling land assets in the downtown area. Focusing on housing development opportunities Downtown will benefit the City in enhancing revenues earned from developing municipal property, and more people Downtown will accelerate the recovery of the Promenade.
Concurrent with focusing on housing developments downtown, staff also would recommend initiating studies to identify policy options that, without jeopardizing certification of the Housing Element, can help ensure that future housing development along our boulevards remains compatible with our existing residential neighborhoods.
This will serve to preserve our existing residential housing stock while advancing overarching housing production goals.
4. Creating Organizational Capacity
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In order to deliver on the overarching realignment plan – and to be able to maintain the proposed programmatic and capital enhancements outlined in this report – it will be critical that we build greater organizational capacity. This means restoring the staffing, infrastructure, and tools that enable effective service delivery. Years of attrition and constrained budgets have limited the City’s ability to keep pace with operational and capital needs, and our realignment plan seeks to reinvests in these foundations by restoring key field positions across the City operation to ensure that every department has the staffing depth needed to deliver results.
Restoring Public Works & Infrastructure Maintenance Capacity Given the public safety and capital improvement reinvestment associated with our overarching realignment plan, it will be crucial that we invest in our Public Works and maintenance operations to ensure that we can continue to maintain the proposed improvements contained in this report. Accordingly, the plan seeks to increase maintenance response capacity in the following ways:
• Fully funding the maintenance and cleaning operation for all City parking structures.
• Expanding the City’s existing Homeless Support Team (HoST) to a seven-day operation with new staff and equipment to better address illegal dumping, human waste cleanup, and 311 service requests.
• Adding new groundskeeping and custodial resources for Tongva, Palisades, and Reed Parks to mitigate the growing impacts of homelessness and weekend crowding.
• Adding a Pier Maintenance Assistant to support critical ongoing board and railing repairs.
• Adding three mechanic positions in the Fleet Division to ensure that vehicles and
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heavy equipment are maintained safely and cost-effectively without reliance on expensive external vendors.
• New leadership and frontline staffing are proposed for the Downtown District Maintenance Team, expanding supervisory coverage into nights and weekends to better coordinate cleanliness and sanitation efforts during the busiest hours of public use.
• To protect the City’s long-term environmental assets, the plan also restores the Urban Forest pruning program and reinstates a dedicated Urban Forester position.
• Finally, the plan contemplates the restoration of two Custodial I positions at the Annenberg Beach House to reduce overtime costs while maintaining service quality during both public and private events.
Full Deployment of the Ambulance Operator Program in 2026 Our plan calls for fully funding the ambulance operator program, to allow the City to take over all ambulance services from the private firm McCormick effective February 2026.
Doing so will require an operating cost outlay of ~$2.8 million / year, however, that investment will yield 100% of all ambulance transport billing revenues to the City.
Conservative projections indicate that this revenue stream will facilitate ~$7 million / year in new revenues to the City.
Strategic Use of City’s Land Assets & Removing Artificial Land Value Constraints To build back the City’s cash reserves, it will be vital that we take a more strategic approach to our real estate assets, such that we find ways to maximize corresponding land residual through an intentional development program for City property.
To that end, staff is recommending that the City reassess development standards, land uses and processes for City-owned parcels in the Downtown Community Plan and also
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consider the same for public and private parcels within the former Gateway Master Plan area bound by approximately 5th Street, Colorado Avenue, and the I-10 Freeway. 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 provide more flexibility to maximize community benefit from Cityowned sites and support the City’s strategic objectives of economic opportunity and growth and developing housing opportunities for all. Concurrently, the plan calls for the retention of real estate consulting services to conduct pre-development assessments for key City properties.
If approved, this would allow the City to solicit innovative proposals ensuring that public property is maximized not only for land residual revenues but for community benefit and be a catalyst for driving reinvestment in the Downtown through redevelopment or jointventure opportunities at all City-owned sites, with particular attention to the following properties Downtown:
• Kiss-and-Ride Lot (1.09 acres)
• Parking Structure 1 (0.75 acres)
• Old Fire Station 1 (0.34 acres)
• 4th/5th/Arizona (2.57 acres)
In addition, the City Council could consider the proposed regulatory adjustments for City-owned parcels and for properties located in the Gateway Master Plan for the other areas of the City’s downtown core.
Invest Modest Resources to Bolster Internal Support Services
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The overarching plans also calls for the deployment of modest resources to support internal City operations across the following areas:
• Marine Safety
• Special Events
• HR Operation
• Finance Operation
• EDD
Expend Staff Time to Assess Revenue Generating Projects Finally, the realignment plans recommends that the City Council authorize staff to explore three potential revenue generating projects that would add relevant capacity and new services in Santa Monica. Those three identified projects include:
• Explore leading the establishment a regional fire dispatch operation o Various fire department agencies on the West Side and in the South Bay have been thinking about developing a regional fire dispatch operation. o Santa Monica is especially well positioned to lead and house such an effort, and staff would recommend that the City Council authorize a further assessment of this potential operation.
• Explore implementation of the Pier-to-Pier ferry concept o A private developer has been assessing the viability of creating a ferry service that would link Malibu, Santa Monica, and Marina Del Rey. o Staff believes that if achievable, the project could generate new revenues
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for the City while offering an interesting potential transit / mobility option. • Explore implementation of a gondola initiative to connect our beach lots with the Pier
o Finally, the City has previously considered a wide-ranging gondola project to link various parts of the City’s downtown core together. o After assessing this opportunity, 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 would add a new transit / mobility option, while also potentially generating new revenues for the City.
The above identified strategies, if instituted, would serve to create significant new capacity at the City to allow for the implementation and continued maintenance of our overarching realignment plan.
5. Building Organizational Health
All of the realignment plan strategies, programs, and plans outlined in this report have one common connecting thread – the ability for the City organization to assume responsibility for executing on its core responsibilities.
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.
To achieve a renaissance in Santa Monica, such a result depends on a recovery within the City organization. After years of uncertainty and resource reductions, Santa Monica’s workforce is in absolute need of renewal and realignment. To address this situation, our overall realignment plans calls for instituting strategies to build a more distinctive organizational culture focused on team-orientation, along with identifying equitable adjustments for our people. Key elements of the plan are further outlined
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below.
Creating a Team-Oriented One SaMo Organizational Culture The City’s leadership team has invested significant time and attention to building a more intentional and deliberate workplace culture, focused on the following key elements:
• One Team
o We are one team… that exists to cultivate and shape a resilient, inclusive, and truly livable City – stable in foundation, prosperous in spirit, inspiring all to thrive.
• One Focus
o We have one focus… to differentiate ourselves by uniting as one City team, where individual responsibility is intertwined with a collective accountability to deliver exceptional services to our community – empowering Santa Monica to advance new ideas and push the boundaries of what a City can achieve.
• One SaMo
o We are One SaMo… where we prioritize the creation a team-oriented organizational culture that will be achieved through living our values every day.
▪ Humility
• Consistently put the needs of the team ahead of individual self-interest
• Be slow to seek attention for individual contributions to team results
• Share credit, and define success collectively rather than individually
• Deal positively with our operational, community, and
business realities
• Don’t think less of yourself, but instead… think of yourself less
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▪ Integrity
• Communicate clearly, concisely, and candidly
• Work hard, and hold ourselves accountable for our role in the delivery of results
• Set high expectations and ensure that our plans take an enterprise-wide view
• Show initiative and courage while staying enthusiastic about our people and work
• Do the right thing, and stay resilient
▪ Motivation
• Believe that skilled and motivated people working together can achieve greatness
• Stay curious and be obsessive in understanding our
customers and our business
• Demonstrate and build functional and technical capacity • Deliver outstanding results by making sound decisions utilizing facts and data
• Ensure process discipline while embracing a continuous improvement philosophy
▪ Care
• Display good judgement and intuition about group dynamics • Understand the impact that individual words and actions have on the broader team
• Include everyone by respecting, listening, helping, and appreciating others
• Enjoy the journey and have fun, but never at the expense of others
• Have a can-do, find-a-way attitude
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It will be an ongoing process to create this organizational culture, and to start, the realignment plan calls for an investment in HR resources to further embed into the DNA of our organization the One SaMo values of operating with Humility, Integrity, Motivation, and Care.
Creating More Equitable Compensation Structures
In an effort to strengthen workforce alignment through equitable pay and benefit structures, especially in light of the disparity between recent sworn and non-sworn MOU adjustments (where sworn staff received ~10% more in compensation than our nonsworn staff), the realignment plan calls for instituting the following benefits for nonsworn staff:
• 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 an annual winter closure for non-sworn staff during the weeks between Christmas and New Year.
In addition, in an effort to demonstrate a commitment to our staff, we are looking to provide all employees with a once-per-year reimbursement of $100 for wellness related activities. The cost of this benefit is nominal but would serve to reinforce the peoplecentered approach we plan to engage as an organization moving ahead.
Combined, the above referenced programs would serve to rebuild morale, clarify purpose, and re-center the organization around collective accountability.
Achieving a Balanced General Fund Operating Budget By Fiscal Year 2027-28 As noted previously, Santa Monica enters this realignment effort amid significant fiscal headwinds. TOT and Sales Tax revenues underperformed budget in FY 2024–25 (TOT down ~10%; Sales Tax down ~6%), and paid parking volumes also softened, together
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widening the projected structural General Fund operating deficit to $29.6 million in FY 2026-27.
Concurrently, 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 that cash is unobligated, given that the City Council allocated $60 million to support City operations as part of the FY 2025-26 budget approval process. Also, to emphasize, the reduction in the City’s free-cash levels is largely attributable to the childhood sexual-abuse settlement payouts, which have totaled nearly $230 million to date.
Within this fiscal context, staff has developed a 24-month budgetary program that funds the realignment plan and 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 bridge while sustainable revenue growth measures are instituted. Staff has also been assessing the viability of a 2026 parcel-tax measure to support ongoing City – Santa Monica Malibu Unified School District (SMMUSD) funding. Finally, the plan rebuilds cash reserves through strategic monetization of select City land assets in the Downtown core.
Details related to this assessment and the overarching financial strategy is outlined in greater detail below.
1. Expenditure Realignment and Focus on Underperforming Programs The budgetary realignment plan calls for the ongoing assessment of existing expenditure levels to identify prudent areas for operational efficiency and cost controls.
The key programs being deployed on this front achieve ~$7.5 million / year in ongoing positive General Fund benefit, as outlined below.
Vacancy Rates & Hiring Management
As the City continues to assess operational needs, effective management and analysis of our existing vacancy rates and staffing levels is estimated to generate ~$6 million /
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year in ongoing savings.
Operational Focus on Underperforming Programs
As part of our operational reviews, staff has identified several existing City programs that have been financially underperforming established historical baselines, including parking enforcement and fire inspection activities. When fully functional, these areas are estimated to generate a net positive ~$1.4 million / year in ongoing General Fund revenues.
Bond Refinance Options
The City has several current outstanding bond issuances that can be refinanced.
Pursuing this measure will result in cost savings of ~$100,000 / year.
2. Revenue Growth and Diversification
As part of the realignment plan, there are multiple recommended actions and programs that will create recurring and sustainable revenue streams. Conservative, compliancebased estimates are summarized below, projected to generate ~$24 million / year in ongoing annual revenues.
Initiative Policy Lever
Stabilized
Ongoing Annual
Revenue
Ambulance Operator
Program
Full cost recovery of EMS transport,
set to begin February 1, 2026 ~$7.0 million / year
Parking Program
Adjustments
Updated rates, validations, and
operating changes, set to go into effect
January 12, 2026
~$9.0 million / year
Credit Card
Convenience Fee Cost recovery on merchant fees ~$1 million / year Digital Signage
Concessions
Long-term ground leases / revenue
share, assuming 8 signs operational in
2027
$4.5 million / year
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Initiative Policy Lever
Stabilized
Ongoing Annual
Revenue
User Fee Updates &
Compliance
CPI true-ups; cost-of-service
alignment; enhanced TOT compliance $1.5 million / year
Investment Earnings
Based on projected cash holdings,
current interest rate environment, and
actual performance during the past
year
$1 million / year
Of note, revenue estimates above reflect stabilized performance, with timing set to be phased-in across FY 2025-26 to FY 2027-28, based on implementation milestones and market conditions.
3. 2026 Parcel-Tax Measure – $12 Million / Year School Partnership Backfill The City currently contributes ~$30 million / year to SMMUSD through the Joint Use Agreement ($12 million / year) and the Master Facilities (Measure YY / GS) Agreement ($18 million / year). The Master Facilities Agreement is set to expire in 2028, and in recognition of the historical partnership between the City and SMMUSD, staff would recommend that authorization be provided to extend that particular agreement beyond 2028.
The Joint Use Agreement, through which the City provides SMMUSD with $12 million / year in funding, is set to expire at the start of 2027. Part of the overarching fiscal realignment plan contemplates the possible advancement of a Citywide parcel tax, which would be sized to generate $12 million / year in new revenues to offset the funding amount provided by the City to SMMUSD through the Joint Use Agreement.
The City is currently conducting outreach activities to identify options for advancing the parcel tax measure, and it is recommended that the City Council authorize the continued assessment of this particular revenue generating option. Of note, although staff recommends continued assessment, the outreach and polling efforts could suggest
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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. Accordingly, if the proposed parcel tax does get advanced as a voter initiative, the City would no longer be involved in the effort and would instead process the measure as we would any other initiative.
Structurally Balanced General Fund Operating Budget By FY 2027-28 By strategically utilizing the $60 million that was previously set-aside by the City Council through the FY 2025-26 Budget Cycle, optimizing existing operations, and capturing new revenue streams, staff analysis identifies that the City’s overarching General Fund operating budget will be structurally balanced by FY 2027-28.
Leading up to FY 2027-28, the plan identifies that the City would run a modest deficit in FY 2025-26 (~$1 million) and FY 2026-27 (~$597K), and then achieve a net positive General Fund operating position of $3.4 million in FY 2027-28. Our current forward projection for the General Fund is outlined in the chart below.
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 Land-Asset Strategy to Replenish Cash Reserves
While the above identified strategies address the ongoing structural deficit in the City’s General Fund, those actions will not restore the City’s depleted cash reserves to more historically prudent levels that Santa Monica is accustomed to.
Accordingly, the realignment plan identifies a strategy – and allocates resources – that will allow us to engage in the proactive development of key land assets owned by the
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City in the Downtown core. Optimizing the development process (i.e., assessing highest and best use and entitling the project prior to disposing of the land), combined with relaxing development restrictions that are identified earlier in this report, will result in achievement of a higher land residual for the following key development opportunity sites:
• 4th/5th/Arizona – 2.57 acres
• Kiss-and-Ride Lot – 1.09 acres
• Parking Structure 1 – 0.75 acres
• 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, which would facilitate rebuilding the City’s cash reserve levels back towards the $200–$300 million range by 2028.
Financial Impacts
Implementation of the overarching realignment plan would see the City utilize $60 million in one-time funds previously set aside by the City Council to invest in public safety, capital enhancements, and economic recovery – all aimed at restoring market confidence and catalyzing private investment in Santa Monica. Adoption of the accompanying resolutions and ordinances will enable the operating measures described in this report, and the overarching strategy results in fiscal stabilization for the City, where we are projected to attain a structurally balanced General Fund operating budget by FY 2027-28, and to rebuild reserves toward prudent, pre-pandemic levels by FY 2028-29.
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Conclusion
This Realignment plan described in this report has been developed based on City Council direction, and represents a turning point for Santa Monica. It is both a roadmap for civic renewal and a call for fiscal discipline – a comprehensive effort to restore safety, economic vitality, and organizational strength. Truly, this is a plan to create a renaissance in Santa Monica, to help the City find its footing and return to being that community which demonstrates that which is possible. By adopting this framework and the associated programmatic efforts, Santa Monica will be positioned to once again exemplify the excellence and vitality that have long defined its identity.
Recommendation
That the City Council:
• Adopt the Santa Monica Realignment Game Plan;
• Approve all budget, personnel, and policy actions described herein; and • Direct staff to begin implementing the plan immediately.
Prepared By: Oliver Chi, City Manager
Approved Forwarded to Council
Attachments:
A. Budget Changes
B. Salary Resolution
C. Position and Classification Changes
D. Parking Fee Update Resolution
E. Credit Card Convenience Fees Resolution
F. Non-Sworn Employee Benefit Enhancements
G. Citywide Winter Closure for Equity Adjustment
H. Vacant Properties Registration
I. Rent Registry Ordinance
J. Sidewalk Dining Interim Zoning Ordinance
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K. Outdoor Dining Fees & Wastewater Fees Resolution
L. Resolution of Intention - Gateway and City Owned Site DCP Amendments M. Resolution of Intention - Gateway and CIty Owned Sites Zoning Ordinance N. Written Comments
O. PowerPoint Presentation
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Packet Pg. 1126 Attachment: 102825 Realignment Staff Report (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services) 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.
Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal.
Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form. https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards/
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $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.
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Packet Pg. 1127 Attachment: Levine Act Disclosure Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services) 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.
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 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.
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Packet Pg. 1128 Attachment: Levine Act Disclosure Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services) 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.
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 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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Packet Pg. 1129 Attachment: Levine Act Disclosure Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services)