Agenda packet, first session — Santa Monica City Council, March 24, 2026 (part 5 of 6)

• 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

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Packet Pg. 1130 Attachment: Levine Act Disclosure Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services)

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

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

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

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

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

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Packet Pg. 1131 Attachment: Levine Act Disclosure Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

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

It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after 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. 1132 Attachment: Oaks Initiative Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services)

CITY OF SANTA MONICA

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

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-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. 1133 Attachment: Oaks Initiative Form - Archistar Signed (7595 : Award Agreement with Archistar to Provide AI Plan Check Review Services) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.M
1 of 2
To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Appointment of City Attorney and Authorization to Execute Agreement Recommended Action
Staff recommends that Council:

1. Appoint Heidi von Tongeln as City Attorney commencing on March 22, 2026; and

2. Authorize the Mayor to execute an employment agreement with Ms. von Tongeln for her service as City Attorney.

Discussion
On September 9, 2025, Council appointed City of Santa Monica Chief Deputy City Attorney Heidi von Tongeln to serve as Interim City Attorney pending final recruitment and hiring of a permanent City Attorney. That recruitment has now been completed.

An employment agreement has been negotiated with Ms. von Tongeln for her service as City Attorney, commencing on March 22, 2026. Ms. von Tongeln worked for Santa Monica City Attorney’s Office for 13 years and served as the Chief Deputy City Attorney of the Advisory Unit since 2022.

A copy of the agreement is attached as Exhibit A. This employment agreement sets out the full terms of the compensation and benefits to be provided to Ms. von Tongeln. The agreement has a term of five years. The City will pay Ms. von Tonglen a base annual salary of $ 395,352.00.

Because she will be serving as a “local agency executive” as defined in Government Code Section 3511.1(d), California law requires that Ms. von Tongeln’s pay be

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approved at a regular meeting, with an oral summary provided before final action is taken. See Government Code Sections 54953(d)(3), 54956(b).

Environmental Review
Pursuant to CEQA Section 21065, the employment agreement for Mr. Chi’s service does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment”. Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the employment agreement is not subject to CEQA. Additionally, the agreement 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 agreement is administrative in nature. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.

Financial Impacts and Budget Actions
Salary and benefits for the City Attorney position are included in the FY 2025-26 Budget.

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

A. Heidi von Tongeln City Attorney Employment Contract 031226

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CITY OF SANTA MONICA

EMPLOYMENT AGREEMENT
This Employment Agreement, entered into as of _________________, 2026 (“Execution Date”), by and between the City of Santa Monica, a California municipal corporation (the “City”), and Heidi von Tongeln (“von Tongeln” or “Employee”), is made with reference to the following.

RECITALS
A. On March 10, 2026, the Santa Monica City Council appointed von Tongeln to the position of City Attorney of the City of Santa Monica effective as of March 22, 2026 (“Employment Date”).

B. The City and von Tongeln wish to enter into an agreement setting forth the terms and conditions of von Tongeln’s employment as the City Attorney of the City of Santa Monica.

NOW, THEREFORE, the City and von Tongeln agree as follows:

TERMS AND CONDITIONS

1. Salary.

1.1 Commencing as of the Employment Date, the City agrees to pay Employee an annual base salary in the amount of $395,352.00, as established in the City’s Salary Schedule in effect as of that date for the position of City Attorney, and payable in installments in the same manner and at the same time as other City employees are paid.

1.2 In July of each year, commencing in July 2026, Employee’s annual base salary shall be automatically adjusted in the same percentage as any salary increase that may be granted to participants of the Executive Pay Plan (EPP) for that fiscal year.

2. Performance Evaluations. The City Council will complete formal performance evaluations of Employee’s performance in the position of City Attorney as follows: (a) initial evaluation after completion of first 6 months of employment as City Attorney; (b) second evaluation after completion of first 12 months of employment as City Attorney; (c) thereafter, an annual evaluation after completion of every 12 months of employment as City Attorney. Prior to the commencement of each annual evaluation period, Employee and the City Council will meet and jointly define goals, performance objectives, and measurable metrics for the evaluation period that they determine appropriate for the attainment of the City Council’s policy objectives and establish the relative priority among the various goals and performance objectives. The goals and performance objectives shall be defined in such a way that they are generally obtainable within time limits established by Employee and the City Council, in accordance with the annual operating and capital budgets and appropriations approved by the City Council. In addition to the annual performance evaluation, Employee may request additional performance evaluations, and

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Packet Pg. 1136 Attachment: Heidi von Tongeln City Attorney Employment Contract 031226 [Revision 1] (7613 : Appointment of City Attorney and Authorization the City Council in its discretion may conduct, whether at the request of Employee or on City Council’s own accord, additional performance evaluations. Upon mutual agreement, an annual performance evaluation shall be performed with the assistance of a mutually selected, third-party facilitator.

3. Benefits.

3.1 Executive Pay Plan. Except as otherwise provided in this Agreement, Employee shall have those benefits and privileges of employment provided to participants of the Executive Pay Plan, as may be amended from time to time. To the extent provisions in this Agreement differ from provisions in the Executive Pay Plan, the provisions of this Agreement shall control.

3.2 Current Leave Accrual Balances. As of the Employment Date, Employee’s maximum Vacation Leave accrual limit will increase to 504 hours. Employee may roll over 56 hours of accrued and unused MOU PERS N leave and 16 hours of Holiday Pay into Vacation Leave. Employee may also make a one-time conversion of 36 hours from the Personal Leave Bank to Cashable Management Leave and cash out those hours at the current City Attorney payrate with the EPP.

4. Home Ownership Option.

4.1 City shall make a home loan available to Employee at a fixed interest rate of 3.50 percent to purchase a home in the City of Santa Monica as Employee’s primary residence.

4.2 The loan shall be made on terms standard for residential real estate loans. The term of the loan shall be no less than 15 years and no more than 30 years. Payment options shall include “interest only” and “principal plus interest.” The loan will be secured by the real estate in the manner customary for residential loans.

4.3 The loan shall not exceed $2 million, and Employee agrees to provide a down payment of at least ten percent of the purchase price of the home.

4.4 Employee shall be responsible for property taxes and insurance. The City shall be named as an insured on such insurance.

4.5 Within two years of the date on which Employee’s employment by the City in the position of City Attorney ends, whether as the result of resignation, termination, separation, or for any other reason, Employee shall buy out the loan from the City by paying off all outstanding principal and interest.

5. Severance Pay and Severance Benefits.

5.1 The position of City Attorney may be terminated at the discretion of the City Council in accordance with the procedures set forth in City Charter Section 700. In

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Packet Pg. 1137 Attachment: Heidi von Tongeln City Attorney Employment Contract 031226 [Revision 1] (7613 : Appointment of City Attorney and Authorization the event of such a termination of Employee’s employment, or upon Employee’s separation from employment by mutual agreement documented in writing between the City and Employee, the City shall pay to Employee severance pay in an amount equal to 9 months of Employee’s base monthly salary, such payment to be made within 30 days of Employee’s termination or separation from employment.

Severance pay shall not be required pursuant to this Section, and Employee shall not be entitled to any severance pay only if: (a) Employee resigns or retires; (b) the termination of Employee from the position of City Attorney was the result of good cause as defined below; (c) Employee’s termination was the result of a conviction under section 5.3 below; or (d) Employee transfers from the position of City Attorney to any other position in City employment. For purposes of this Agreement, good cause is defined only as follows: (1) conviction of Employee, whether by verdict or plea of guilty or nolo contendere, of any crime of moral turpitude; (2) willful misconduct by Employee; or (3) proven failure of Employee to observe or perform any of her duties and obligations as City Attorney, if that failure continues for a period of 30 calendar days from the date of Employee’s receipt of written notice from the City Council specifying the acts or omissions deemed to constitute that failure.

5.2 As of the date on which Employee is no longer employed by the City as its City Attorney, unless Employee remains employed by the City in another position, Employee shall be paid all eligible accrued benefits under this Agreement.

5.3 If Employee is convicted of a crime involving an abuse of her office or position as City Attorney, all the following shall apply: (l) if Employee is provided with administrative leave pay pending an investigation, Employee shall be required to fully reimburse the City such amounts paid; (2) if the City pays for the criminal legal defense of Employee (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), Employee shall be required to fully reimburse the City such amounts paid; and (3) any severance pay pursuant to Section 5.1 above that Employee may have already received from the City shall be fully reimbursed to the City. For purposes of this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, or violation of the law under color of authority; or (2) a crime against public justice.

6. Exempt Employee. As City Attorney, Employee is an exempt employee under the Fair Labor Standards Act, works during normal business hours of the City, and is required to devote whatever time is necessary to accomplish the work of the City Attorney position without eligibility to accrue additional compensatory time or to be paid overtime compensation. As a result, Employee will not have to account for her work time on an hourly basis and will only need to account for each full day of absence that occurs on a regularly scheduled workday.

7. Notice of Resignation. If Employee decides to resign from employment by City in the position of City Attorney, Employee will provide the City Council with at least 60 days’ advance written notice.

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Packet Pg. 1138 Attachment: Heidi von Tongeln City Attorney Employment Contract 031226 [Revision 1] (7613 : Appointment of City Attorney and Authorization

8. Duration of Agreement. The parties acknowledge and agree that the terms and conditions of this Agreement apply to the complete term of Employee’s continuous performance of job duties in the position of City Attorney, provided as of the Employment Date and prior to the execution of this Agreement. This Agreement shall continue in full force and effect for a period of five years, commencing as of the Employment Date until March 10, 2031 (the “Initial Term”), or such earlier date on which Employee, pursuant to the terms of this Agreement, is no longer employed by the City as its City Attorney, whether as the result of resignation, termination, separation, or any other reason. On March 11, 2031, and on each succeeding March 11th while this Agreement is in effect, the Initial Term, and any subsequent term resulting from extension of this Agreement, shall be automatically extended for successive periods of one year.

9. Tuition Reimbursement. Consistent with participants of the Executive Pay Plan, Employee will be reimbursed for tuition and required study materials for career improvement or job enhancement courses approved by the Mayor up to $2,500/annually.

Professional dues, memberships, and continuing education are considered within the City Attorney’s Office department budget.

10. 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 the City and Employee.

11. No Presumption Against Any Party. This Agreement is the product of the efforts of all parties, and the terms of this Agreement shall not be construed or interpreted for or against any party solely on the grounds that the party proposed or drafted a particular clause.

12. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.

13. Venue and Jurisdiction. 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.

14. Severability. If any part, term, or provision of this Agreement is declared or determined by a court to be illegal, invalid, or unenforceable, the legality, validity, and enforceability of the remaining parts, terms, or provisions of this Agreement shall not be affected thereby, and the illegal, invalid, or unenforceable part, term, or provision shall either be deemed modified in such manner as to render such part, term, or provision legal, valid, and enforceable to the fullest extent permitted by law or shall be deemed not to be a part of this Agreement.

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Packet Pg. 1139 Attachment: Heidi von Tongeln City Attorney Employment Contract 031226 [Revision 1] (7613 : Appointment of City Attorney and Authorization

15. Waiver of Breach. A non-breaching party may waive the breach of any provision of this Agreement only by executing a writing. Waiver of any breach shall not be deemed to be a waiver of any other breach of the same or any other provision of this Agreement.

16. Indemnification. To the full extent of the law as provided by the California Government Claims Act (Gov. Code, §§ 810 et seq.), the City shall defend and indemnify Employee against any claim or action filed against Employee for injury or loss arising out of an act or omission occurring with the scope of the Employee’s duties on the City’s behalf for the period of Employee’s employment, subject to the limitation of the California Government Claims Act.

17. Electronic Signatures. Each party agrees that the transaction consisting of this Agreement may be conducted by electronic means. Each party agrees and acknowledges that it is such party’s intent, that if such party signs this Agreement using an electronic signature, it is signing, adopting, and accepting this Agreement and that signing this Agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Agreement on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Agreement in a usable format.

18. Counterparts. This Agreement may be executed simultaneously or in any number of counterparts, including both counterparts that are executed manually on paper and counterparts that are in the form of electronic records and are executed electronically, whether digital or encrypted, each of which shall be deemed an original and together shall constitute one and the same instrument.

In witness whereof, this Agreement was executed on the day and year first written above.

CITY OF SANTA MONICA,
a municipal corporation
By:

Caroline Torosis, Mayor Heidi von Tongeln, Employee
APPROVED AS TO FORM: ATTEST:

Susan Cola, Assistant City Attorney Denise Anderson-Warren, Interim City Clerk

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Packet Pg. 1140 Attachment: Heidi von Tongeln City Attorney Employment Contract 031226 [Revision 1] (7613 : Appointment of City Attorney and Authorization City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.N
1 of 15
To: Mayor and City Council
From: Oliver Chi, City Manager, Office of Economic Development Subject: Approval of Assignment and Amendment of Lease for the Victorian, Located at 2640 Main Street
Recommended Action
Staff recommends that City Council:

1. Adopt a finding of categorial exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;

2. Authorize the City Manager to negotiate and execute an Assignment and Amended Lease Agreement to transfer the leasehold interest for 2640 Main Street from Ocean Park Restaurant Corporation (OPRC) to The Santamonican Club, LLC, a California limited liability company; and,

3. Authorize the City Manager to accept payment of $278,094 for outstanding back rent due under the existing Lease Agreement with OPRC.

Executive Summary
On January 13, 2026, the City Council authorized staff to negotiate an assignment and amendment to the existing lease for the City owned property located at 2640 Main Street (The Victorian), to transition the leased premises from its current use as a restaurant, bar, and nightlife venue into a family-based recreation, events, and wellness destination serving all ages. As part of that direction, the Council requested also that the amended lease clarify the business ownership, provide repayment for back rent due to the City under the existing lease (which went unpaid by the tenant due to the City issuing incorrect lease payment amount bills), and identify new activations, community benefits, and capital investments under the amended lease. On March 10, 2026, staff presented the information requested for Council’s consideration in closed session, and direction was provided to move the new lease agreement forward.

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Discussion
The pandemic has significantly altered the restaurant and nightlife sector, leading to a shift in customer behavior and operational strategies. Restaurants and bars have had to adapt to evolving consumer preferences. Today’s consumers are seeking unique dining and immersive experiences with programming that encourages repeat visitation and broadens appeal to a wider range of audiences, including families. In response to evolving market conditions, the Santamonican Club LLC (“Operator”), the current business operator of The Victorian, proposes to transition operations accordingly.

During the past few weeks, pursuant to Council direction, staff has negotiated updated lease terms that would allow The Victorian to be converted into a family-based recreation, events, and wellness facility for members. The terms of the amended lease include the provisions outlined below.

Lease Assignment and Ownership
The lease for 2640 Main Street is currently between the City and Ocean Park Restaurant Corporation (“OPRC”), which operates the business commonly known as “The Victorian.” On February 25, 2026, the City received confirmation from OPRC of its intent to assign the existing lease and the remaining lease term to the Operator, which proposes to continue with the existing operations but under a new business name, “The Santamonican Club.”
Under the proposed assignment, OPRC would assign its leasehold interest to the Operator. As part of the amended lease, the Operator would assume responsibility for lease obligations, including payment of outstanding past due rent. OPRC would remain liable for all obligations accrued prior to assignment unless expressly released by the City, and the Operator would assume liability for repayment of outstanding rent.

Payment of Past Due Rent
As part of the City’s tenant audit program, it was identified that the City had consistently underbilled The Victorian, resulting in additional payments owed to the City. Under the

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amended lease, the Operator has agreed to repay $278,094 in back rent that was underbilled. The Operator will pay the full past due rent within six months of lease execution or issuance of a Certificate of Occupancy, whichever is earlier.

Lease Premises
The lease area, as outlined in yellow in the following exhibit, will remain unchanged.

The total lease premises encompass approximately 50,418 square feet. The Victorian building comprises approximately 12,961 square feet across three floors. The 25 onsite public parking spaces will also continue to utilized as they have historically been used, available for public use, consistent with current operations. The Operator has also agreed to manage and operate the parking facilities in accordance with the terms of the existing lease.

Lease Term
The original lease with OPRC commenced May 15, 1978, with five five-year options, expiring on May 14, 2033. Under the amended lease, the term would be amended to reflect a ten (10) year base term from April 1, 2026, with three five (5) year options to extend. The new 10-year base term would commence upon execution of an assignment and lease amendment.

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Updated Rent Structure
The proposed assignment and amended lease include an updated rent structure intended to support operational ramp-up and business stabilization during the renovation and transition period. The current rent under the existing lease with OPRC is approximately $22,000 per month, consisting of a combination of base rent and percentage rent.

Under the amended lease terms, the Operator would receive a one-time $10,000 rent concession upon execution of the assignment and amended lease. Thereafter, a rampup rate would be established at a fixed amount of $10,000 per month. This rent would remain in effect from lease execution through the earlier of (i) issuance of a Certificate of Occupancy for the new use or (ii) 18 months. This temporary ramp-up rent structure reflects that the facility will generate limited operating revenue during the estimated 12– 18 months renovation period and recognizes the Operator’s commitment to fund significant capital improvements to the property.

Upon issuance of the Certificate of Occupancy or the 18-month period, whichever is earlier, rent would increase to a fixed amount of $20,000 per month. Beginning in Year 5, rent would escalate by 3% annually, consistent with the escalation provisions outlined in the amended lease. Further, the amended lease will provide that the rent structure shall be available for City review at Year 5. This provision would provide the City an opportunity to negotiate rent adjustments based on market conditions and financial feasibility, as needed. This structure balances near-term revenue with long-term investment and activities of a City-owned asset.

Capital Investments & Project Scope
The Victorian, formerly known as the “Kyte House,” was constructed in 1903 and originally located at 1003 Ocean Avenue. In 1977, the structure was relocated to its current site at 2640 Main Street, together with the Heritage Museum’s “Roy Jones House.” Both houses were donated by a private developer who had initially planned to

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demolish the buildings but instead agreed to donate them and fund their relocation as a concession for redevelopment of the properties at 1003 and 1007 Ocean Avenue.

At nearly 123 years old, the Victorian has undergone various repairs and improvements over time. However, many building systems and prior capital improvements are now approaching the end of their useful life and require modernization. Under the amended lease, the Operator proposes to undertake significant capital improvements at Operator’s own expense, without public subsidy or rent credits. As part of the amended lease, the Operator proposes the following investments, with an estimated renovation and construction period of 12–18 months:
• Roof replacement
• Replacement of mechanical and HVAC systems
• Replacement interior and exterior flooring
• Exterior siding, paint, and façade improvements
• Commercial kitchen renovation
• Re-imagined all-day quick service coffee bistro
• Re-imagined full-service restaurant and bar
• Spa and wellness center
• A new pool
• Family/youth facility
• Fitness center featuring TechnoGym equipment
• Design, furniture, fixtures, and equipment
• Tile work, paneling, faux finishes, wall coverings, moldings, artwork & decorative finishes
• Built-in cabinetry and storage
• New audio/video and low-voltage automation systems for the entire property • Landscaping, preservation and addition of mature trees • Full perimeter fencing and security including new windows and doors Initial concept designs envision expanded green space, flexible outdoor programming areas, enhanced exterior improvements, a new pool, and additional wellness amenities.

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Green spaces
Flexible outdoor programing

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Extensive exterior improvements

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New pool
Wellness amenities

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Community Benefits
To ensure that proper community benefits are delivered, Council requested the following provisions for the amended lease:
• Support Sunday Farmers Market operations
• Maintain public access to the Santa Monica Heritage Museum Lawn • Host community events
• Local scholarship membership program
• Local hiring program
Based on that direction, staff engaged in discussions with The Victorian and have confirmed that the amended lease would require the Operator to provide an annual report to the City summarizing the community benefits that Operator provided under the lease, including community events, attendance, and partnerships. The other Community Benefit provisions we have been able to negotiate for the Operator to provide include:

Sunday Farmers Market Operations
The Sunday Farmers Market operates between 6:30 am and 3:00 pm. About 28 farmers, 14 food vendors, and 5 Main Street merchants set up on the parking lot, with community education booths and musicians operating on the driveway and lawn between the Victorian and Santa Monica Heritage Museum. The Victorian will makes its restrooms available to farmers and customers during the Market’s hours of operation and allows the Market to store items on-site.

As part of the amended lease, the Operator commits to continue providing the City with support, access, and use of the Victorian’s restrooms, storage, power / electricity, and water facilities to support the Sunday Farmer’s Market on Main Street.

Public Access to the Cultural Heritage Museum Lawn

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The amended lease would provide that the Operator will maintain the historic museum lawn as an open and visible community amenity consistent with the requirements of the Santa Monica Heritage Museum Lease. Of the customers who visit the Farmer’s Market each week, it is estimated that approximately 70% stay for one to two hours.

Many visitors picnic on the lawn while enjoying the food vendors and live entertainment.

Of the City’s four weekly farmers markets, the Sunday Market is widely regarded as the most family-friendly, largely due to the presence of this lawn. Public access to the lawn will not be reduced from existing conditions.

To improve safety and circulation between public and operational areas, the Operator proposes to locate the primary pedestrian access point to the lawn directly from Main Street rather than requiring pedestrians to cross through the active driveway circulation area to improve and enhance:
• Pedestrian safety by avoiding conflicts with vehicles entering and exiting the property
• A clear and visible entry point to the lawn from the public sidewalk • Allows the lawn to remain accessible while maintaining appropriate separation between the public green space and the operational areas of the Victorian lease premises
Historically, the site experienced operational challenges when circulation between the driveway and lawn areas was not clearly defined. Establishing a dedicated pedestrian access point from Main Street provides a safer and more predictable access point for visitors while maintaining the lawn's visibility and openness from the street.

The amended lease would provide that public access to the lawn will not be reduced and will remain consistent with existing Heritage Museum lease requirements. The lawn itself will remain visible and accessible from the street and available for public use during designated access periods. The Operator would commit continuing to work with the City to support appropriate public safety and maintenance efforts, to ensure the

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lawn remains a safe and welcoming environment for community use consistent with its intended purpose.

Supporting Cultural Heritage Museum & Community Partnership Events The Operator will continue to collaborate with the California Heritage Museum to support community-focused programming. While the museum will serve as the lead organizer and public-facing entity, the Operator will provide in-kind support including food and beverage, event resources, and marketing. These events, held multiple times per year, may benefit youth organizations, educational initiatives, or other charitable causes identified by the museum’s leadership further enriching community engagement through arts and cultural preservation.

Community Events
In response to Council’s desire for community events and activations, the amended lease would commit Operator to hosting free community gatherings throughout the year in coordination with neighborhood groups and local partners. The amended lease will include language that requires the Operator to provide an annual list of community events, and for the initial opening year, specific events include:
• A winter community event open to the broader Santa Monica community that could activate the lawn and surrounding Main Street area; • A spring event coordinated with the Main Street Business Improvement Association and neighborhood groups such as the Ocean Park Association; and, • A fall seasonal gathering celebrating neighborhood businesses and community organizations.

These events may be hosted directly by Operator, coordinated with neighborhood organizations, or co-sponsored with the City depending on the nature of the event.

Engagement & Community Support Activities

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The amended lease will include provisions requiring the Operator to perform numerous engagement & community support activities. In negotiations with the Operator, staff has been able to secure commitments for the following activities that will be included in the amended lease:
• Santa Monican Cares: Annual Charity Auction Gala
• The Operator will be required to host an annual, fully funded charity gala (valued at approximately $80,000), with all proceeds directed toward local organizations. The funds raised each year provide meaningful support to the selected beneficiary.
• Member-Selected Annual Charity Initiative
• Each year, the Operator will designate a “Member Charity of the Year,” selected by a member of The Victorian, to support a local nonprofit of their choice. The Operator will host a dedicated fundraising event, with proceeds supplemented by a direct contribution from the Operator. • Thanksgiving Foster Youth Giving Initiative
• The Operator will organize an annual Thanksgiving program supporting foster youth. Contributions will include bicycles, holiday meals, clothing, and essential care packages in partnership with local foster organizations. • Holiday Giving Initiative
• The lease will require the Operator to coordinate a seasonal donation initiative where members contribute curated gift packages for children and essential supply kits (hygiene products, warm clothing, etc.) for individuals experiencing homelessness throughout Santa Monica and greater Los Angeles.
• Local School Support Partnership
• The Operator will be required to connect with Santa Monica Malibu Unified School District to ascertain, identify, and develop an annual partnership

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program, to provide both financial and in-kind support for classroom resources, program funding, and enrichment initiatives. • Coastal Stewardship & Environmental Support
• The Operator will be required to coordinate and host at least one environmental initiative per year. Environmental initiatives could involve beach clean-up events / activities.
• First Responders Partnership & Annual Recognition Program • The Operator has offered to have the lease require them to establish an ongoing partnership with Santa Monica first responders by hosting an annual First Responders Recognition Dinner.

Local Hiring and Vendors
In support of the City’s goals to support the local economy and enhance employment opportunities, the amended lease would create a structure whereby the Operator would agree to retain all existing employees currently working at The Victorian. Further, the amended lease would require that the Operator hire local Santa Monica residents whenever possible, and would further set local hiring benchmarks and requirements.

The Operator will also be required via the amended lease to prioritize working with local Santa Monica vendors and businesses for services, programming partnerships, and event support, including a requirement that the Operator source a certain percentage of their ingredients for their food and beverage program from local farmers markets and producers.
“First Job” Program
The lease will also require that the Operator establish a “first job” program for local Santa Monica youth interested in the hospitality industry. The program will be structured to provide local youth with work and mentorship opportunities at The Victorian.

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Local Scholarship Membership Program
The amended lease would commit Operator to reserving up to 20% of total membership capacity for scholarship memberships available to qualifying Santa Monica residents.

Membership will be structured on a household basis, and programming is designed to serve the entire household together. Under this program, the Operator will waive membership fees, allowing scholarship members full access to the clubhouse.

Attachment A, prepared by the Operator, provides additional detail on the club’s commitment to fostering a diverse and inclusive membership base. It also outlines the framework for the family-oriented membership model and the structure and eligibility criteria of the scholarship program.

Environmental Review
This 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. The lease would be for the operation of the existing Victorian building and therefore, is exempt from CEQA pursuant to Section 15301.

Financial Impacts and Budget Actions
The recommended action is estimated to generate lease revenues of approximately $120,000 to $180,000 to the General Fund during the 12- to 18-month renovation phase. Once operational, the lease will generate $240,000 annually. The revenues will be deposited into account 01200016.414000.

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

A. Attachment A - Santamonican Club Membership Program
B. Attachment B - Santamonican - Levine (2026)
C. Attachment C - Santamonican Oaks (2026)

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The Santamonican Club’s Local Scholarship Membership Program The Santamonican is designed as a family-centered membership community, which differs from traditional private clubs or adult social clubs. The intention is to create a safe, welcoming environment where families of all ages can spend meaningful time together while participating in curated activities and programming designed for different stages of life.

Programming may include seasonal camps, daytime youth activities, family gatherings, garden and outdoor programming, educational workshops, parent networking opportunities, date-night events, and community-oriented gatherings. The goal is to provide a space where parents, children, and multigenerational families can connect, relax, and participate in thoughtfully designed activities that support family life and community building.

Because the space is curated and intentionally programmed, membership supports the operations, staffing, and programming that make these experiences possible. At the same time, we recognize that not every Santa Monica family will be able to participate through a full membership.

For that reason, the Santamonican will establish a Local Scholarship Membership Program intended to ensure that a diverse range of Santa Monica families can participate in the community.

Key elements of the program include:

Community-Focused Scholarships
A limited number of scholarship memberships will be reserved each year for Santa Monica residents who contribute meaningfully to the local community but may not otherwise have access to a membership.

These may include local educators, small business owners, nonprofit leaders, artists, entrepreneurs, and working parents who would benefit from the family-oriented programming and community environment.

Community Contribution Model
Unlike traditional private clubs that focus primarily on professional status or social recognition, scholarship selections will consider how individuals contribute to the community both inside and outside the club environment. This may include community leadership, educational involvement, creative work, neighborhood engagement, or service to the Santa Monica community.

Guest Participation
Many events and programs will allow members to bring guests, providing another way for families and community members to experience the space and programming without requiring a full membership.

Select community events throughout the year will also be open to the public.

Intentional and Diverse Community Building
The goal of the scholarship program is not simply to provide discounted access, but also thoughtfully build a diverse and inclusive family community within the club. The mix of members will reflect a wide range of backgrounds, professions, and life experiences that enrich the environment for families and children.

This approach reflects the long-standing values of the Santamonican’s founders and the broader team behind the project, who have always prioritized community engagement and diversity in their businesses.

By combining membership support, guest participation, scholarship opportunities, and community events, the Santamonican aims to create a welcoming space that serves both its members and the broader Santa Monica community.

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Packet Pg. 1156 Attachment: Attachment A - Santamonican Club Membership Program (7614 : Victorian Lease Assignment and Amendment) 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. 1157 Attachment: Attachment B - Santamonican - Levine (2026) (7614 : Victorian Lease Assignment and Amendment) 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. 1158 Attachment: Attachment B - Santamonican - Levine (2026) (7614 : Victorian Lease Assignment and Amendment) 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. 1159 Attachment: Attachment B - Santamonican - Levine (2026) (7614 : Victorian Lease Assignment and Amendment)

Page 2 ends

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

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

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

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Packet Pg. 1161 Attachment: Attachment B - Santamonican - Levine (2026) (7614 : Victorian Lease Assignment and Amendment)

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

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

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

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Packet Pg. 1162 Attachment: Attachment C - Santamonican Oaks (2026) (7614 : Victorian Lease Assignment and Amendment)

CITY OF SANTA MONICA

Public benefits include:

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

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

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

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

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

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

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

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

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

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

Prepared by: Title:

Signature: Date:

Email: Phone:

Permit #
FOR CITY USE ONLY:

Bid/PO/Contract #

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Packet Pg. 1163 Attachment: Attachment C - Santamonican Oaks (2026) (7614 : Victorian Lease Assignment and Amendment) 1 March 10, 2026
(NOT APPROVED)

CITY OF SANTA MONICA

CITY COUNCIL MINUTES
MARCH 10, 2026
A regular meeting of the Santa Monica City Council was called to order by Mayor Torosis at 5:35 p.m., on Tuesday, March 10, 2026, at City Council Chambers, 1685 Main Street, Santa Monica, CA.

Roll Call: Present: Mayor Caroline Torosis
Mayor Pro Tem Jesse Zwick (arrived at 6:42 p.m.)
Councilmember Lana Negrete
Councilmember Dan Hall
Councilmember Ellis Raskin
Councilmember Barry Snell
Councilmember Natalya Zernitskaya
Also Present: City Manager Oliver Chi
Interim City Attorney Heidi von Tongeln
Assistant City Clerk Maria Dacanay-Wisner
CONVENE/PLEDGE On order of the Mayor, the City Council convened at 5:35 p.m. to hear the 5:30 p.m. regular meeting and the 5:35 p.m. concurrently, with all members present except Mayor Pro Tem Zwick. Councilmember Zernitskaya led the assemblage in the Pledge of Allegiance.

STATEMENT OF

ACCOUNTABILITY
(LAND

ACKNOWLEDGEMENT)
The City of Santa Monica Statement of Accountability (Land Acknowledgement) was read into the record by Councilmember Raskin.

LEVINE ACT

DISCLOSURE
No Councilmembers made disclosures regarding the Levine Act (Govt Code Section 84308).

AGENDA

MANAGEMENT
Motion by Councilmember Hall, seconded by Councilmember to Negrete to hear the City Manager’s Report, Travel Announcements, and any Adjournments after item 2.A. The motion was approved by the following voice vote:

AYES: Councilmembers Negrete, Hall, Raskin, Snell, Zernitskaya, Mayor Torosis
NOES: None
ABSENT: Mayor Pro Tem Zwick

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Packet Pg. 1164 Minutes Acceptance: Minutes of Mar 10, 2026 5:30 PM (CONSENT CALENDAR) 2 March 10, 2026

PUBLIC INPUT FOR

GENERAL PUBLIC

COMMENT AND

SPECIAL AGENDA
ITEMS:

Members of the public Denise Barton, Mike Feinstein, Yana Shmuliver, Anthony, Fred Larian, Jackson McNeill, Johnathan Foster, Matthew Moroz, Brigid McBride, Laurence Cohen, Morgan Hunter Gross, Mike Montgomery and Anthony Jernigan commented on various local issues.

PROCLAMATIONS/

COMMENDATIONS/

SPECIAL AGENDA
ITEMS

2.A. Commendation: Rick Valte Retirement, was presented.

CITY MANAGER
REPORT
The City Manager Report was presented.

COUNCIL TRAVEL Council had no travel reports pursuant to AB 1234.

PUBLIC INPUT FOR

CONSENT CALENDAR

AND CLOSED SESSION
ONLY:

Members of the public Denise Barton commented on item 4.D. and Ivan Smason commented item 4.C.

Member of the public Denise Barton commented on item 5.A.

CONSENT CALENDAR: All items were considered and approved in one motion unless removed by a Councilmember for discussion.

Item 4.G. was pulled at the request of staff. Councilmember Hall recused himself from item 4.A. and removed item 4.C. from the Consent Calendar.

Motion by Councilmember Raskin, seconded by Councilmember Zernitskaya, to approve the Consent Calendar except for Item 4.A., 4.C., and

4.G., reading resolutions by title only and waiving further reading thereof.

The motion was approved by the following roll call vote:

AYES: Councilmembers Zernitskaya, Snell, Raskin, Hall, Negrete, Mayor Torosis
NOES: None
ABSENT: Mayor Pro Tem Zwick

REPLACEMENT

GROUNDWATER
SUPPLY WELL SM-14

4.B. Award Bid SP#2773 to Yellow Jacket Drilling Services, LLC, for the Construction of Replacement Groundwater Supply Well SM-14, was awarded.

Recommended Action
Staff recommends that the City Council:

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

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2. Award Bid #SP2773 to Yellow Jacket Drilling Services, LLC for the drilling of replacement groundwater supply well SM-14 for the Public Works

3. Department; and

4. Authorize the City Manager to negotiate and execute Agreement No. 11813 (CCS) with Yellow Jacket Drilling Services, LLC, in an amount not to exceed $2,100,000 (including a $281,325
contingency).

BENEFITS

ADMINISTRATION
SYSTEM

4.D. Award RFP to and Authorize the City Manager to Negotiate and enter into an Agreement with Businessolver for a Benefits Administration System, was awarded.

Recommended Action
Staff recommends the City Council.

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

2. Award RFP to Businessolver for a benefits administration system for the Human Resources Department;

3. Authorize the City Manager to negotiate and execute Agreement No. 11814 (CCS) with Businessolver in the amount not to exceed $1,497,019 (including a 10% contingency) for a total amount not to exceed $1,646,721 over a five-year period with future year funding contingent on Council budget approval.

POLICIES, PRACTICES

AND PROCEDURES

4.E. Second Reading and Adoption of Ordinance No. 2849 (CCS) to Amend Santa Monica Municipal Code Chapter 2.24, Purchasing System, to Modernize the City's Policies, Practices and Procedures, was approved.

Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

ECONOMIC RECOVERY
& LAND USE

FLEXIBILITY

4.F. Second Reading and Adoption of Ordinance No. 2850 (CCS) to:
(1) Permanently Adopting Economic Recovery Interim Zoning Ordinance 2825 (CCS) and (2) Amending the Text of Article 9 Zoning and Planning of the Santa Monica Municipal Code to Promote Economic Recovery and Increase Land Use Flexibility in the City’s Downtown and Citywide Areas by Streamlining, Simplifying, and Modifying Land Uses and Limitations, Updating Standards for Specific Uses and Activities, Including, But Not Limited to, Alcohol Permits and Review, Modifying Definitions, Adding Flexibility for Certain NonConforming Uses, Adjusting Standards Regarding the Applicability of Resource Recovery and Recycling Requirements and Trash Enclosure Dimensional Standards, and Making Other Minor Changes,

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Packet Pg. 1166 Minutes Acceptance: Minutes of Mar 10, 2026 5:30 PM (CONSENT CALENDAR) 4 March 10, 2026
Corrections, Clarifications, and Clerical Amendments, was approved.

Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

MINUTES 4.G. City Council - Regular Meeting - Feb 24, 2026 5:30 PM, was pulled at the request of staff.

MINUTES 4.H City Council - Special Meeting - Feb 28, 2026 9:00 AM was approved.

POET LAUREATE 4.C. Appointment of Jay Baldwin as the Poet Laureate for the 2026- 2028 Program Year, was presented.

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. Appoint Jay Baldwin as the City of Santa Monica’s Poet Laureate for the 2026-2028 Program Year and adopt Resolution No. 11740 (CCS).

Motion by Councilmember Hall, seconded by Councilmember Zernitskaya to approve the recommendation with direction to amend the resolution and program requiring City Council approval and defer appointments to the Library Department. Motion to amend by Councilmember Raskin to continue recognizing Poet Laureates at Council meetings. The maker and seconder found the amendment friendly. The motion was approved by the following roll call vote:

AYES: Councilmembers Negrete, Hall, Raskin, Snell, Zernitskaya, Mayor Torosis
NOES: None
ABSENT: Mayor Pro Tem Zwick

RECYCLABLE

MATERIALS

PROCESSING SERVICES
(Councilmember Hall left the
dais at 6:37 p.m.)

4.A. Award RFP# 452 to Potential Industries, Inc for Recyclable Material Processing Services, was presented.

Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemptions pursuant to Sections 15301 (Existing Facilities) and 15308 (Class 8 Actions for Protection of Environment) of the California Environmental Quality Act (CEQA) Guidelines;

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Packet Pg. 1167 Minutes Acceptance: Minutes of Mar 10, 2026 5:30 PM (CONSENT CALENDAR) 5 March 10, 2026

2. Award RFP# 452 to Potential Industries, Inc. for the processing and marketing of the City’s recyclable materials for the Public Works Department; and

3. Authorize the City Manager to negotiate and execute Agreement No. 11812 (CCS) with Potential Industries, Inc., in an amount not to exceed $3,337,952 (including a $865,395 contingency for five years, with one-additional five-year renewal option in the amount of $3,884,000, on the same terms and conditions) for a total amount not to exceed $7,221,952 over a 10-year period, with future year funding contingent on Council budget approval.

Motion by Councilmember Negrete, seconded by Councilmember Snell, to approve the recommendation. The motion was approved by the following roll call vote:

AYES: Councilmembers Zernitskaya, Snell, Raskin, Negrete, Mayor Torosis
NOES: None
ABSENT: Councilmember Hall, Mayor Pro Tem Zwick

CLOSED SESSIONS
(Councilmember Hall
returned to the dais at 6:39
p.m.)
(Mayor Pro Tem Zwick
arrived at 6:42 p.m.)
On order of the Mayor, the City Council recessed at 6:40 p.m., to consider Closed Sessions and returned at 8:24 p.m., with all members present, to report the following:

5.A. Conference with legal counsel - existing litigation - Gov. Code § 54956.9(d)(1): - John U.N.B. Doe, et al. v. City, et al.; LASC # 23STCV12746; John Doe 1, et al. v. City, et al.; LASC # 23STCV15009; Hector Orozco v. John Doe: Does 1-2; LASC # 23SMCV03120; John JPC Doe v. Doe City, et al.; LASC # 23STCV22020; John AD Doe, et al. v. City, et al.; LASC # 23STCV26548; John CW Doe, et al. v. City, et al.; LASC # 23STCV29623; John Doe (A.G.) v. Santa Monica Police Activities League, et al; LASC # 23SMCV06066; John GA DOE, et al. v. City, et al.; LASC # 24STCV06484; John U.L.W. Doe, et al. v. City, et al.; LASC # 24STCV06768; Joseph Garcia v. Santa Monica Police Activities League, et al.; LASC # 24SMCV01368; John Doe 15, et al. v.

City, et al.; LASC # 24STCV07647; John Doe 18, et al. v. City, et al.; LASC # 24STCV0239; John RR Doe, et al. v. City, et al.; LASC # 24STCV09398; John Doe 33, et al. v. City, et al.; LASC # 24STCV15580; John Doe 48 v. City, et al.; LASC # 24STCV15420; John Doe 49 v. City, et al.; LASC # 24STCV19296; John DD Doe v. City, et al.; LASC # 24SMCV04421; Jane EB Doe, et al. v. City, et al.; LASC # 24STCV24146; John Doe (V.D.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05049; John Doe (D.F.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05050; John Doe (D.G.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05051; Jane Doe 13, et al. v. City, et al.; LASC # 24STCV27233; John AM Doe,

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Packet Pg. 1168 Minutes Acceptance: Minutes of Mar 10, 2026 5:30 PM (CONSENT CALENDAR) 6 March 10, 2026
et al. v. City, et al.; LASC # 24STCV28433; John Doe v. City, et al.; LASC # 24SMCV05527; John Doe 53 v. City, et al.; LASC # 24STCV31763; John Doe (Y.M.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV06355; Jane Doe 16, et al. v. a Public Entity, et al.; LASC # 25STCV02235; John Doe 62, et al. v. City, et al.; LASC # 25STCV04414; John Doe 23 v. City, et al.; LASC # 25STCV05850; John Doe (E.B.) v. Santa Monica Police Activities League, et al.; LASC # 25STCV06354; Jane PB Doe, et al. v. City, et al.; LASC # 25STCV06880; John Doe 67 v. City, et al.; LASC # 25STCV10142; John Doe 68 v. City, et al.; LASC # 25STCV12089; John Doe 69, et al. v. City, et al.; LASC # 25STCV14031; John OR Doe, et al. v. City, et al.; LASC # 25STCV16251; John RD Doe, et al. v. City, et al.; LASC # 25STCV24158
The City Attorney advised this matter was heard with no reportable action taken.

5.B. Conference with legal counsel - existing litigation - Gov. Code § 54956.9(d)(1): City v. ICSOP, et al.; OCSC # 30-2022-01261243 The City Attorney advised this matter was heard with no reportable action taken.

5.C. Conference with real estate negotiator - Gov. Code § 54956.8; property: 256 Santa Monica Pier, Santa Monica, California; City negotiator: Oliver Chi, City Manager; owner of record: City of Santa Monica; persons to be negotiated with: Sean Ahaus, California Roadhouse, Inc., a California corporation d.b.a. California Roadhouse; under negotiation: price and terms of payment for lease The City Attorney advised this matter was heard with no reportable action taken.

ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 8:27 p.m.

ATTEST: APPROVED:

Maria Dacanay-Wisner Caroline Torosis
Assistant City Clerk Mayor

4.O
Packet Pg. 1169 Minutes Acceptance: Minutes of Mar 10, 2026 5:30 PM (CONSENT CALENDAR) 1 March 10, 2026
(NOT APPROVED)

CITY OF SANTA MONICA

CITY COUNCIL MINUTES
MARCH 10, 2026
A special meeting of the Santa Monica City Council was called to order by Mayor Torosis at 5:35 p.m., on Tuesday, March 10, 2026, at City Council Chambers, 1685 Main Street, Santa Monica, CA.

STATEMENT OF

ACCOUNTABILITY
(LAND

ACKNOWLEDGEMENT)
The City of Santa Monica Statement of Accountability (Land Acknowledgement) was read into the record by Councilmember Raskin.

LEVINE ACT

DISCLOSURE
No Councilmembers made disclosures regarding the Levine Act (Govt Code Section 84308).

PUBLIC INPUT FOR
CLOSED SESSION ONLY:

No members of the public commented on Closed Session items for the special meeting.

CLOSED SESSIONS
(Mayor Pro Tem Zwick
arrived at 6:42 p.m.)
On order of the Mayor, the City Council recessed at 6:40 p.m., to consider Closed Sessions and returned at 8:24 p.m., with all members present, to report the following:

5.A. Conference with legal counsel - potential initiation of litigation - Gov. Code § 54956.9(d)(4) – 1 case

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Packet Pg. 1170 Minutes Acceptance: Minutes of Mar 10, 2026 5:35 PM (CONSENT CALENDAR) 2 March 10, 2026
The City Attorney advised this matter was heard and direction was given by a vote of 7 to 0 to initiate litigation.

5.B. Conference with real estate negotiator - Gov. Code § 54956.8; property: 2640 Main Street, Santa Monica, California; City negotiator:

Oliver Chi, City Manager; owner of record: City of Santa Monica; persons to be negotiated with Adir Tal and Garner Gelson, The Santamonican Club, LLC, a California corporation d.b.a.

Santamonican; under negotiation: price and terms of payment for lease The City Attorney advised this matter was heard with no reportable action taken.

5.C. Public employee appointment - Gov. Code § 54957(b): consider public employee appointment; title: City Attorney; Gov. Code § 54957.6: conference with labor negotiator; City negotiator: Mayor/City Manager; unrepresented employee: City Attorney
The Mayor advised this matter was heard and Interim City Attorney Heidi von Tongeln accepted the Council’s offer. The City Attorney’s contract will be agendized for the March 24, 2026 Council meeting with an effective date of March 25.

ADJOURNMENT On order of the Mayor, the City Council special meeting adjourned at 8:27 p.m.

ATTEST: APPROVED:

Maria Dacanay-Wisner Caroline Torosis
Assistant City Clerk Mayor

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Packet Pg. 1171 Minutes Acceptance: Minutes of Mar 10, 2026 5:35 PM (CONSENT CALENDAR) City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 5.A
1 of 2
To: Mayor and City Council
From: Heidi Von Tongeln, Interim City Attorney, City Attorney's Office, Administration
Subject: Conference with legal counsel - existing litigation - Gov. Code § 54956.9(d)(1):

John U.N.B. Doe, et al. v. City, et al.; LASC # 23STCV12746; John Doe 1, et al. v. City, et al.; LASC # 23STCV15009; Hector Orozco v. John Doe: Does 1-2; LASC # 23SMCV03120; John JPC Doe v. Doe City, et al.; LASC # 23STCV22020; John AD Doe, et al. v. City, et al.; LASC # 23STCV26548; John CW Doe, et al. v. City, et al.; LASC # 23STCV29623; John Doe (A.G.) v. Santa Monica Police Activities League, et al; LASC # 23SMCV06066; John GA DOE, et al. v. City, et al.; LASC # 24STCV06484; John U.L.W. Doe, et al. v. City, et al.; LASC # 24STCV06768; Joseph Garcia v. Santa Monica Police Activities League, et al.; LASC # 24SMCV01368; John Doe 15, et al. v.

City, et al.; LASC # 24SMCV04421; Jane EB Doe, et al. v. City, et al.; LASC # 24STCV24146; John Doe (V.D.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05049; John Doe (D.F.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05050; John Doe (D.G.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV05051; Jane Doe 13, et al. v. City, et al.; LASC # 24STCV27233; John AM Doe, et al. v. City, et al.; LASC # 24STCV28433; John Doe v. City, et al.; LASC # 24SMCV05527; John Doe 53 v. City, et al.; LASC # 24STCV31763; John Doe (Y.M.) v. Santa Monica Police Activities League, et al.; LASC # 24SMCV06355; Jane Doe 16, et al. v. a Public Entity, et al.; LASC # 25STCV02235; John Doe 62, et al. v.

City, et al.; LASC # 25STCV04414; John Doe 23 v. City, et al.; LASC # 25STCV05850; John Doe (E.B.) v. Santa Monica Police Activities League, et al.; LASC # 25STCV06354;Jane PB Doe, et al. v. City, et al.; LASC # 25STCV06880; John Doe 67 v. City, et al.; LASC # 25STCV10142; John Doe 68 v. City, et al.; LASC # 25STCV12089; John Doe 69, et al. v. City, et al.; LASC # 25STCV14031; John OR Doe, et al. v. City, et al.; LASC # 25STCV16251; John RD Doe, et al. v. City, et al.; LASC # 25STCV24158

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Prepared By: Bradley Michaud, Legal Administrative Services Officer Approved Forwarded to Council

5.A
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Redevelopment Successor
Agency Report
City Council Meeting: March 24, 2026
Agenda Item: 11.A
1 of 1
To: Redevelopment Successor Agency
From: Denise Anderson Warren, Interim City Clerk, Records and Election Services Department
Subject: Approval of Minutes for Redevelopment Successor Agency Meeting Recommended Action
Staff recommends that the Redevelopment Successor Agency approve the minutes of the February 11, 2025 and January 13, 2026 meetings.

Prepared By: David Yakobson, Staff Assistant III
Approved Forwarded to Council
Attachments:

A. Draft Minutes - February 11, 2025
B. Draft Minutes - January 13, 2026

11.A
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1 February 11, 2025
(NOT APPROVED)

CITY OF SANTA MONICA

REDEVELOPMENT SUCESSOR AGENCY MEETING MINUTES
FEBRUARY 11, 2025
A regular and special meeting of the Santa Monica City Council was called to order by Mayor Negrete at 6:34 p.m., on Tuesday, February 11, 2025, at City Council Chambers, 1685 Main Street, Santa Monica, CA.

Roll Call: Present: Chair Lana Negrete
Chair Pro Tem Caroline Torosis
Agency Member Jesse Zwick
Agency Member Dan Hall
Agency Member Ellis Raskin
Agency Member Barry Snell
Agency Member Natalya Zernitskaya
Also Present: Executive Director David White
Agency Attorney Douglas Sloan
Agency Secretary Nikima S. Newsome
CONVENE On order of the Chair, the Redevelopment Successor Agency convened to a joint meeting with the City Council at 6:34 p.m., with all members present.

REPORT ON MEETING

COMPENSATION
Pursuant to State law, the Secretary announced that members will receive no compensation for meeting as the Redevelopment Successor Agency.

CONSENT CALENDAR:

JOINT MEETING WITH

THE REDEVELOPMENT

SUCCESSOR AGENCY
There being a Consent Calendar for the City Council and the Redevelopment Successor Agency, on order of the Mayor, with consensus of the Councilmembers, the Council convened to a joint meeting with the Redevelopment Successor Agency at 6:34 p.m., and the two Consent Calendars were heard concurrently, with all members present.

All items were considered and approved in one motion unless removed by a member for discussion.

Item 4.F. was removed at the request of staff.

At the request of Agency Member Hall, Item 4.A. was removed from the Consent Calendar.

Motion by Agency Member Raskin, seconded by Agency Member Zernitskaya, to approve the Consent Calendar except for Items 4.A and 4.F., reading resolutions by title only and waiving further reading thereof. The

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Packet Pg. 1175 Attachment: Draft Minutes - February 11, 2025 [Revision 1] (7608 : RSA Minutes (1 min)) 2 February 11, 2025
motion was approved by the following vote:

AYES: Agency Members Zernitskaya, Snell, Raskin, Hall, Zwick, Chair Pro Tem Torosis, Chair Negrete
NOES: None
ABSENT: None
MINUTES 4.J. Minutes for Redevelopment Successor Agency Meeting, were approved.

Recommended Action
Staff recommends that the Redevelopment Successor Agency approve the minutes of the December 17, 2024 meeting

MOTION TO

RECONSIDER
Motion by Agency Member Raskin, seconded by Agency Member Hall, to reconsider Item 4.I. and to remove the item from the Consent Calendar and to hear it simultaneously with Item 4.A. The motion was approved by unanimous voice vote with all members present.

CONSENT CALENDAR:

MANAGEMENT

SERVICES

4.A. Award Request for Proposal to Meeder Public Funds, Inc. for Non-Discretionary Investment Advisory and Portfolio Management Services, was approved with item 4.I.

Recommended Action
Staff recommends that the City Council:

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

2. Award RFP# 431 to Meeder Public Funds, Inc. for non-discretionary Investment Advisory and Portfolio Management services for the Finance Department; and

3. Authorize the City Manager to negotiate and execute an agreement with Meeder Public Funds, Inc., in an estimated amount not to exceed $510,000 for three years, with two additional one-year renewal options in the amount of $340,000, on the same terms and conditions for a total amount not to exceed $850,000 over a five-year period, with future year funding contingent on Council budget approval

ANNUAL INVESTMENT

POLICY UPDATE

4.I. Approve City's Updated Investment Policy and Extend the Delegation of Investment Authority, was presented.

Recommended Action
Staff recommends that the City Council:

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

2. Review and approve the City’s revised Investment Policy.

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Packet Pg. 1176 Attachment: Draft Minutes - February 11, 2025 [Revision 1] (7608 : RSA Minutes (1 min)) 3 February 11, 2025

3. Extend the delegation of investment authority to the Director of Finance, as City Treasurer, from March 1, 2025 through February 28, 2026.

Staff also recommends that the Redevelopment Successor Agency Governing Board:

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

2. Review and approve the City Investment Policy for Redevelopment Successor Agency Investments.

3. Extend investment authority to the Treasurer of the Redevelopment Successor Agency, from March 1, 2025 through February 28, 2026.

Questions asked and answered of staff included: what will constitute as a quorum for this body; will the city be investing in crypto currency; how will monthly reports be delivered to Council; and does the Audit Subcommittee have any auditing ability.

Motion by Agency Member Hall, seconded by Chair Pro Tem Torosis, to approve the staff recommendation with direction to include a requirement that a minimum of three members constitute a quorum and for the members of the Investment Committee to be required to file a Form 700 consistent with the requirements of members of boards and commissions. The motion was approved by the following vote:

AYES: Agency Members Zwick, Hall, Raskin, Snell, Zernitskaya, Chair Pro Tem Torosis, Chair Negrete
NOES: None
ABSENT: None
ADJOURNMENT On order of the Chair, the Redevelopment Successor Agency meeting was adjourned at 8:45 p.m.

ATTEST: APPROVED:

Nikima S. Newsome Lana Negrete
Agency Secretary Chair

11.A.a
Packet Pg. 1177 Attachment: Draft Minutes - February 11, 2025 [Revision 1] (7608 : RSA Minutes (1 min)) 1 January 13, 2026
(NOT APPROVED)

CITY OF SANTA MONICA

REDEVELOPMENT SUCESSOR AGENCY MEETING MINUTES
JANUARY 13, 2026
A special meeting of the Santa Monica Redevelopment Successor Agency was called to order by Chair Torosis at 7:09 p.m., on Tuesday, January 13, 2026, at City Council Chambers, 1685 Main Street, Santa Monica, CA.

Roll Call: Present: Chair Caroline Torosis
Chair Pro Tem Jesse Zwick
Agency Member Dan Hall
Agency Member Ellis Raskin
Agency Member Barry Snell
Agency Member Natalya Zernitskaya

Absent: Agency Member Lana Negrete
Also Present: Executive Director Oliver Chi
Interim Agency Attorney Heidi von Tongeln
Assistant Agency Secretary Maria Dacanay-Wisner
CONVENE On order of the Chair, the Redevelopment Successor Agency convened to a joint meeting with the City Council at 7:09 p.m., with all members present except Agency Member Negrete.

REPORT ON MEETING

COMPENSATION
Pursuant to State law, the secretary announced that the members will receive no compensation for meeting as the Redevelopment Successor Agency.

STAFF

ADMINISTRATIVE
ITEMS:

TAX ALLOCATION

REFUNDING BONDS

11.A. Adoption of Resolution No. 49 (SA) Authorizing Issuance of Tax Allocation Refunding Bonds, Series 2026 (refinancing of the 2006 T ABs and the 2011 TABs), was presented.

Recommended Action
Staff recommends that the Successor Agency:

1. Adopt Resolution No. 49 (SA) Authorizing Issuance of Tax Allocation Refunding Bonds and approving the related documents and other actions in connection with the issuance of Tax Allocation

2. Refunding Bonds (Attachments A, B, C, D and E).

11.A.b
Packet Pg. 1178 Attachment: Draft Minutes - January 13, 2026 [Revision 1] (7608 : RSA Minutes (1 min)) 2 January 13, 2026

3. 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.

Questions asked and answered of staff included the expected interest rate with the new issuance and if the City could reissue new bonds and refund if interest rates decrease.

Motion by Agency Member Raskin, seconded by Agency Member Hall, to approve items 11.A. and 11.B. The motion was approved by the following vote:

AYES: Agency Members Hall, Raskin, Snell, Zernitskaya, Chair Pro Tem Zwick, Chair Torosis
NOES: None
ABSENT: Agency Member Negrete
MINUTES 11.B. Approval of Minutes for Redevelopment Successor Agency Meeting, were approved with item 11.A.

Recommended Action
Staff recommends that the Redevelopment Successor Agency approve the minutes of the December 16, 2025 meeting
ADJOURNMENT On order of the Chair, the Redevelopment Successor Agency meeting was adjourned at 7:15 p.m.

ATTEST: APPROVED:

Maria Dacanay-Wisner Caroline Torosis
Assistant Agency Secretary Chair

11.A.b
Packet Pg. 1179 Attachment: Draft Minutes - January 13, 2026 [Revision 1] (7608 : RSA Minutes (1 min)) Redevelopment Successor
Agency Report
City Council Meeting: March 24, 2026
Agenda Item: 11.B
1 of 5
To: Redevelopment Successor Agency
From: Oscar Santiago, Director, Finance Department
Subject: Adoption of Resolution Approving the Form of a Preliminary Official Statement and Continuing Disclosure Certificate for Tax Allocation Refunding Bonds (2026)
Recommended Action
Staff recommends that the Redevelopment Successor Agency:

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. Adopt the attached Resolution approving the form of the Preliminary Official Statement and the Continuing Disclosure Certificate for the 2026 Tax Allocation Refunding Bonds, and authorizing certain other actions in connection therewith (Attachments A, B and C).

Summary
Staff is requesting that the Successor Agency to the Redevelopment Agency of the City of Santa Monica (Successor Agency) adopt the attached Resolution approving the form of the Preliminary Official Statement and Continuing Disclosure Certificate relating to the 2026 tax allocation refunding bonds (2026 Bonds), and authorizing certain other actions in connection therewith. The 2026 Bonds will be issued to refund the prior Series 2006 and Series 2011 Bonds (together, Prior Bonds) for debt service savings. The Prior Bonds are currently outstanding in the principal amount of $56,925,000.

The refinancing is expected to result in gross savings of around $13.5 million over the life of the 2026 Bonds, which is equivalent to a net present value savings of

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approximately $8.2 million. This will equate to an average annual reduction in total debt service payments of approximately $844,763 per year. This same reduction in annual debt service payments is expected to free up additional property tax revenues for distribution to affected taxing entities, which would result in an average annual increase of approximately $117,700 in property tax revenues to the City.

Final savings achieved will not be determined until the sale of the 2026 Bonds and will depend upon market conditions at the time of sale.

Background
On January 13, 2026, the Successor Agency authorized the issuance and sale of the 2026 Bonds by Resolution No. 49 (SA).

On February 10, 2026, the Los Angeles County Third Supervisorial District Consolidated Oversight Board approved the issuance of the 2026 Bonds pursuant to Resolution No. OB3 2026-62. With the authorization to move forward, the California Department of Finance (DOF) 60-day review process was initiated on February 18, 2026. Staff and the Successor Agency’s financing team are ready to present the Preliminary Official Statement to the Successor Agency for consideration and approval prior to pricing the 2026 Bonds. The 2026 Bonds will be issued and sold only upon receiving DOF approval.

Discussion
The proposed 2026 Bonds are estimated to have a par amount of $50.6 million and a final maturity of July 1, 2042. Based on market conditions as of February 23, 2026, it is anticipated that a current refunding of the Prior Bonds will produce net present value savings of approximately $8.2 million over the life of the 2026 Bonds and an annual average reduction in debt service payments of $844,763 between 2027 and 2042.

Previously, as presented at the January 13th meeting, the underwriter projected $7.0 million in net present values savings, or 12.2% of refunded par. The increase in estimated savings is due to improved conditions in tax-exempt interest rates since

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January 2026.

The reduction in annual debt service payments is estimated to increase tax revenues available for distribution to affected taxing entities, including the City. It is estimated that the refinancing will result in an average annual increase of $117,700 in property tax revenues to the City based on current market conditions. Final interest rates and the resulting savings will depend upon market conditions at the time the 2026 Bonds are priced and sold, which is currently anticipated to occur in April 2026.

Staff recommends adoption of the attached Resolution. The Resolution approves the form of a Preliminary Official Statement and Continuing Disclosure Certificate relating to the 2026 Bonds and authorizes certain other actions in connection therewith. • Preliminary Official Statement: The Preliminary Official Statement is the “offering document” for the 2026 Bonds. It describes the Successor Agency, the source of repayment and security for the 2026 Bonds, and certain risks associated with the purchase of the 2026 Bonds.

A form of the Preliminary Official Statement for the 2026 Bonds (POS) has been prepared by Staff with the assistance of Anzel Galvan, the Successor Agency’s Bond Counsel and Disclosure Counsel. The POS was prepared based on information provided by and in coordination with Urban Futures, Inc. (Municipal Advisor), HdL Coren & Cone (Fiscal Consultant), Stifel Nicolaus & Company, Incorporated (Underwriter). The form of POS is attached as Attachment B.

The distribution of the POS is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require that the POS to include all facts that would be material to an investor of the 2026 Bonds. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to purchase or sell the 2026 Bonds. If the members of the Successor Agency’s governing

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board concludes that the POS includes all facts that would be material to an investor in the 2026 Bonds, it must adopt a resolution that authorizes staff to execute a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 to the effect that the POS has been “deemed final.”
The Securities and Exchange Commission (SEC), the agency with regulatory authority over the Successor Agency’s compliance with the federal securities laws, has issued guidance as to the duties of the Successor Agency with respect to its approval of the POS. Under said guidance, if a member of the governing board of the Successor Agency has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the 2026 Bonds, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the POS. The steps that a member could take include becoming familiar with the POS and questioning staff and consultants about the disclosure of such facts. • Continuing Disclosure Certificate: The Continuing Disclosure Certificate will be delivered by the Successor Agency for the benefit of owners of the 2026 Bonds and in order to assist the Underwriter in complying with Rule 15c2- 12(b)(5) adopted by the Securities and Exchange Commission. This document describes various annual and certain event reporting and disclosure obligations of the Successor Agency, as required by federal securities laws. The form of Continuing Disclosure Certificate is attached as Attachment C.

Environmental Review
The adoption of the Resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines (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.” If enacted, the issuance

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of tax allocation refunding Bonds would create revenue and promote equity for the City and as such, is administrative in nature. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA
Financial Impacts & Budget Actions
Refinancing of the Prior Bonds will result in a reduction in annual debt service payments that will free up additional property tax revenues for distribution to affected taxing entities, including the City. It is estimated that the refinancing will result in an average annual increase of $117,700 in property tax revenues to the City based on current market conditions. The estimated revenues and cost savings has been included in the FY 2025-27 Biennial Budget.

Prepared By: Oscar Santiago, Director
Approved Forwarded to Council
Attachments:

A. Attachment A - Successor Agency Resolution
B. Attachment B - Preliminary Official Statement
C. Attachment C - Continuing Disclosure Certificate

11.B
Packet Pg. 1184
RESOLUTION NO. ____ (SA)

RESOLUTION OF THE OF THE SUCCESSOR AGENCY TO

THE REDEVELOPMENT AGENCY OF THE CITY OF

SANTA MONICA APPROVING THE FORM OF THE

PRELIMINARY OFFICIAL STATEMENT AND THE

CONTINUING DISCLOSURE CERTIFICATE RELATING TO
THE 2026 TAX ALLOCATION REFUNDING BONDS, AND

AUTHORIZING CERTAIN OTHER ACTIONS IN

CONNECTION THEREWITH
WHEREAS, the Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Successor Agency”) approved the issuance of one or more series tax allocation refunding bonds (the “2026 Bonds”) by Resolution No. 49 (SA) (the “Resolution”), at its meeting on January 13, 2026, for the purpose of achieving debt service savings; and WHEREAS, the Los Angeles County Third Supervisorial District Consolidated Oversight Board approved of the issuance of the 2026 Bonds by its Resolution No. OB3 2026-62 at its meeting on February 10, 2026; and
WHEREAS, the Successor Agency wishes at this time to approve the form of a Preliminary Official Statement and form of the Continuing Disclosure Certificate relating to the 2026 Bonds;

NOW THEREFORE, THE SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY OF THE CITY OF SANTA MONICA, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals; Capitalized Terms. All of the recitals herein contained are true and correct and the Successor Agency so finds. Capitalized terms used but not defined in this resolution have the meaning given to such terms in the Resolution.

Section 2. Approval of the Official Statement. The form of the Preliminary Official Statement relating to the 2026 Bonds (the “Preliminary Official Statement”) presented herewith is hereby approved. Each of the City Manager and the Finance Director of the City, or their respective written designee (each an “Authorized Officer” and collectively, the “Authorized Officers”), acting on behalf of the Successor Agency, are, and each of them is, hereby authorized and directed, for and in the name of the Successor Agency, to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the Preliminary Official Statement. The Authorized Officers are each hereby further authorized and directed to execute, approve and deliver the final Official Statement in the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be recommended by the Successor Agency’s General Counsel or Anzel Galvan LLP (“Disclosure Counsel”), and approved by the Authorized Officer executing the same, said execution being conclusive evidence of such approval. Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the 2026 Bonds and is directed to deliver copies of any final Official Statement to all actual purchasers of the 2026 Bonds.

Attachment A

11.B.a
Packet Pg. 1185 Attachment: Attachment A - Successor Agency Resolution (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 2 Section 3. Approval of Continuing Disclosure Certificate. The form of the Continuing Disclosure Certificate relating to the 2026 Bonds (the “Continuing Disclosure Certificate”) presented herewith is hereby approved. The Authorized Officers are each hereby authorized and directed to execute and deliver the Continuing Disclosure Certificate in the form presented at this meeting with such changes, insertions and omissions as may be recommended by the Successor Agency’s General Counsel or Disclosure Counsel and approved by the Authorized Officer executing the same, said execution being conclusive evidence of such approval.

Section 4. Miscellaneous. Each of the Authorized Officers and other appropriate officers of the Successor Agency acting alone, is authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents and contracts that they may deem necessary or advisable in order to consummate the sale, execution and delivery of the 2026 Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, the Resolution, the 2026 Bonds, the Indenture, the Bond Purchase Agreement, and the Escrow Agreements, each in order to facilitate the issuance of the 2026 Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, including, without limitation, to amend any of the legal documents entered in connection with the Prior Bonds in order to effectuate the defeasance and refunding of such Prior Bonds, to execute irrevocable refunding instructions with respect to the Prior Bonds, to secure municipal bond insurance for any or all of the 2026 Bonds and/or a debt service reserve policy to fund any reserve account or fund established for the 2026 Bonds, if available (which may include entering into a mutual insurance agreement(s) therefor), to request subordination of any amounts required to be paid to an affected taxing entity to any or all of the 2026 Bonds, as the Authorized Officer may require or approve, in consultation with Bond Counsel and the Municipal Advisor, and any such actions heretofore taken by such officers in connection therewith are hereby ratified, confirmed and approved.

Section 5. Effective Date. This Resolution shall take effect immediately upon its adoption and the City Clerk, as Secretary of the Successor Agency, shall certify the vote adopting this resolution.

APPROVED AS TO FORM:

Heidi Von Tongeln
Interim Successor Agency General
Counsel
Attachment A

11.B.a
Packet Pg. 1186 Attachment: Attachment A - Successor Agency Resolution (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 3 Adopted and approved by the Successor Agency to the Redevelopment Agency for the City of Santa Monica, this 24th day of March 2026.

Caroline Torosis
Chair
I, Denise Anderson-Warren, Interim City Clerk of the City of Santa Monica, as Interim Secretary of the Successor Agency to the Redevelopment Agency of the City of Santa Monica, do certify that the foregoing Resolution was duly adopted at the meeting of the Successor Agency to the Redevelopment Agency of the City of Santa Monica held on March 24, 2026, by the following vote AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST
Denise Anderson-Warren
Interim
Successor Agency Secretary
Attachment A

11.B.a
Packet Pg. 1187 Attachment: Attachment A - Successor Agency Resolution (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure Agenda Version
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

PRELIMINARY OFFICIAL STATEMENT DATED ___________, 2026
NEW ISSUE—BOOK-ENTRY ONLY Ratings : S&P: “AA” (Insured) S&P: “__” (Underlying)
See “CONCLUDING INFORMATION—Ratings”
In the opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, under existing law and subject to certain qualifications described herein, the interest on the 2026 Bonds is excludable from gross income for federal income tax purposes. In addition, interest on the 2026 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, interest on the 2026 Bonds may affect the federal alternative minimum tax applicable to certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS.” $[PAR]*

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
2026 TAX ALLOCATION REFUNDING BONDS
Dated: Delivery Date Due: August 1, as shown on the inside front cover page The Successor Agency to the Redevelopment Agency of the City of Santa Monica 2026 Tax Allocation Refunding Bonds (the “2026 Bonds”) will be delivered as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York, and will be available to Beneficial Owners in integral multiples of $5,000 under the book-entry system maintained by DTC. Beneficial Owners will not be entitled to receive delivery of bonds representing their ownership interest in the 2026 Bonds. The principal of and interest (which interest is due February 1 and August 1 of each year, commencing August 1, 2026) on the 2026 Bonds will be payable by U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”), to DTC for subsequent disbursement to DTC Participants, so long as DTC or its nominee remains the registered owner of the 2026 Bonds. See the caption “THE 2026 BONDS—Book-Entry System.”
The 2026 Bonds are being issued pursuant to an Indenture of Trust, dated as of April 1, 2026, by and between the Trustee and the Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Successor Agency”): (i) to refund certain bonds issued by the former Redevelopment Agency of the City of Santa Monica (the “Former Agency”), as described under the caption “REFUNDING PLAN”; (ii) to pay the premium for a municipal bond insurance policy for the 2026 Bonds; (iii) to pay the premium for a municipal debt service reserve insurance policy for the 2026 Bonds; and (iv) to pay certain other costs of issuance of the 2026 Bonds.

The 2026 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity. See the caption “THE 2026 BONDS—Redemption.”
The 2026 Bonds are limited obligations of the Successor Agency payable solely from and secured by tax increment revenues deposited in the Redevelopment Property Tax Trust Fund and payable from amounts on deposit therein after payments of certain County of Los Angeles administrative costs, payments to certain taxing agencies, and certain other obligations, and from the amounts on deposit in certain funds held under the Indenture as more fully described herein. Taxes levied on the property within the Former Agency’s project areas on that portion of the taxable valuation over and above the taxable valuation of the base year property tax roll will be deposited in the Redevelopment Obligation Retirement Fund and administered by the Successor Agency and the Trustee in accordance with the Indenture.

The scheduled payment of principal of and interest on the 2026 Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the 2026 Bonds by ___________. See the captions “INTRODUCTION—Bond Insurance” and “BOND INSURANCE” and Appendix I—“SPECIMEN MUNICIPAL BOND INSURANCE POLICY.”
[INSURER LOGO]
This cover page of the Official Statement contains information for quick reference only. It is not a complete summary of the 2026 Bonds. Investors should read the entire Official Statement to obtain information essential to the making of an informed investment decision. Attention is hereby directed to certain risk factors more fully described herein.

The 2026 Bonds are not a debt of the City of Santa Monica, the State of California, or any of its political subdivisions (except the Successor Agency), and neither said City or State, nor any of its political subdivisions (except the Successor Agency), is liable hereon, nor in any event shall the 2026 Bonds be payable out of any funds or properties other than those of the Successor Agency. The 2026 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The principal of and interest on the 2026 Bonds are payable solely from Tax Revenues (as defined herein) allocated to the Successor Agency after the payment of certain costs and other obligations payable on a senior basis as described herein and other funds as set forth in the Indenture.

The 2026 Bonds are offered, when, as and if issued, subject to the approval of Anzel Galvan LLP, San Francisco, California, Bond Counsel. Certain legal matters will be passed on for the Successor Agency by the City Attorney of the City of Santa Monica, as counsel to the Successor Agency, and Anzel Galvan LLP, as Disclosure Counsel to the Successor Agency, for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, LLP, Newport Beach, California, for the Trustee by its counsel and for the 2026 Insurer by its counsel. It is anticipated that the 2026 Bonds will be available for delivery through the facilities of DTC on or about April __, 2026. [STIFEL LOGO]
Dated: ________________, 2026
* Preliminary; subject to change.

Attachment B

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Packet Pg. 1188 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure

MATURITY SCHEDULE
Base CUSIP†
_____
$[PAR]*

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
2026 TAX ALLOCATION REFUNDING BONDS
Maturity Date
(August 1)
Principal
Amount
Interest
Rate Yield Price CUSIP†
$__________ _____% Term Bond due August 1, 20__ Yield: _____% - Price: _____ CUSIP† : _____
$__________ _____% Term Bond due August 1, 20__ Yield: _____% - Price: _____ CUSIP† : _____
* Preliminary; subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2026 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only.

None of the Underwriter, the Successor Agency or the City, or their agents or counsel, assume responsibility for the accuracy of such numbers.

Attachment B

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Packet Pg. 1189 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY SANTA MONICA
Santa Monica, California

CITY COUNCIL AND

SUCCESSOR AGENCY MEMBERS
Caroline Torosis, Mayor
Jesse Zwick, Mayor Pro Tem
Lana Negrete
Dan Hall
Ellis Raskin
Barry Snell
Natalya Zernitskaya

SUCCESSOR AGENCY/CITY STAFF
Oliver Chi, City Manager
Susan Cline, Assistant City Manager
Denise Anderson-Warren, Interim Secretary/City Clerk
Oscar Santiago, Director of Finance
Heidi von Tongeln, Interim City Attorney
Susan Cola, Assistant City Attorney

SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Anzel Galvan LLP
San Francisco, California
Municipal Advisor
Urban Futures, Inc.

Walnut Creek, California
Fiscal Consultant
HdL Coren & Cone
Diamond Bar, California
Trustee
U.S. Bank Trust Company, National Association
Los Angeles California
Verification Agent
Causey Public Finance, LLC
Denver, Colorado
Attachment B

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Packet Pg. 1190 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure

GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been authorized by the Successor Agency or the Underwriter to give any information or to make any representations with respect to the 2026 Bonds other than as contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been given or authorized by the Successor Agency or the Underwriter.

Use of Official Statement. This Official Statement is submitted in connection with the sale of the 2026 Bonds described in this Official Statement and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement does not constitute a contract between any 2026 Bond owner and the Successor Agency or the Underwriter.

Preparation of this Official Statement. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure made by the Successor Agency, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,” “expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties.

Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material.

This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the 2026 Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the Successor Agency or the other parties described in this Official Statement, since the date of this Official Statement.

Document Summaries. All summaries of the Indenture or other documents contained in this Official Statement are made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. All references in this Official Statement to the Indenture and such other documents are qualified in their entirety by reference to such documents, which are on file with the Successor Agency.

No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.

No Registration with the SEC. The issuance and sale of the 2026 Bonds have not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)(2) and 3(a)(12), respectively, for the issuance and sale of municipal securities.

Public Offering Prices. The Underwriter may offer and sell the 2026 Bonds to certain dealers and dealer banks and banks acting as agents at prices lower than the public offering prices stated on the inside cover page of this Official Statement, and the Underwriter may change such public offering prices from time to time.

Bond Insurer. _____________ (the “2026 Insurer”) makes no representation regarding the 2026 Bonds or the advisability of investing in the 2026 Bonds. In addition, the 2026 Insurer has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the 2026 Insurer, supplied by the 2026 Insurer and presented under the heading “BOND INSURANCE” and “Appendix I—SPECIMEN MUNICIPAL BOND INSURANCE POLICY”.

Website. The City of Santa Monica maintains an Internet website. The information maintained on such website is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the 2026 Bonds.

Attachment B

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Attachment B

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Packet Pg. 1192 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure [INSERT MAP OF REDVELOPMENT PROJECT AREAS
]
Attachment B

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Packet Pg. 1193 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure

TABLE OF CONTENTS
i
INTRODUCTION ...........................................................1 Authority and Purpose ..............................................1 The City and the Successor Agency .........................1 The Project Areas......................................................2 Security for the 2026 Bonds; Tax Allocation
Financing...............................................................3 Senior Obligations ....................................................4 Issuance of Parity Debt.............................................4 Tax-Exemption on 2026 Bonds................................5 Bond Insurance .........................................................5 Reserve Account.......................................................5 Audited Financial Statements...................................5 Further Information...................................................6 REFUNDING PLAN.......................................................6 General......................................................................6 Verification of Mathematical Computations ............7 Estimated Sources and Uses of Funds......................7 THE 2026 BONDS ..........................................................8 Authority for Issuance ..............................................8 Description of the 2026 Bonds .................................8 Book-Entry System...................................................9 Redemption...............................................................9 Annual Debt Service...............................................11 SECURITY FOR THE 2026 BONDS...........................11 General....................................................................11 Tax Revenues..........................................................13 Redevelopment Obligation Retirement Fund;
Deposit of Tax Revenues....................................15 Transfer of Amounts by Trustee.............................15 Tax Increment Financing ........................................17 Recognized Obligation Payment Schedule.............19
Last and Final Recognized Obligation Payment
Schedule ..............................................................22 Statutory Pass-Through Payments..........................24 BofA Credit Agreement..........................................24 Issuance of Additional Indebtedness ......................25 BOND INSURANCE ....................................................26 PROPERTY TAXATION IN CALIFORNIA...............26
Property Tax Collection Procedures.......................26 Unitary Property .....................................................29 Article XIIIA of the State Constitution...................30 Appropriations Limitation – Article XIIIB.............31 Articles XIIIC and XIIID of the State
Constitution.........................................................31 Proposition 87.........................................................32 Redevelopment Plan Limits....................................32 Appeals of Assessed Values...................................32 Proposition 8...........................................................33 Propositions 218 and 26..........................................33 Future Initiatives.....................................................34

THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF
SANTA MONICA.........................................................34 THE EARTHQUAKE PROJECT AREA......................35
General....................................................................35 The Redevelopment Plan; No Financial Limits .....35
Land Use.................................................................36 Largest Property Taxpayers....................................37 Historical Assessed Values.....................................40 Levy and Collections..............................................40 Assessment Appeals...............................................41 Office Vacancy Rates.............................................42 Transfers of Ownership ..........................................43 New Development..................................................43

PROJECTED TAX REVENUES AND DEBT
SERVICE COVERAGE................................................44 RISK FACTORS ...........................................................45 Reduction in Taxable Value ...................................46 Concentration of Ownership...................................46 Risks to Real Estate Market....................................47 Reduction in Inflation Rate.....................................47 Levy and Collection of Taxes.................................47 City Declaration of Fiscal Distress.........................48 State Budget Issues.................................................49 Recognized Obligation Payment Schedule.............50
Last and Final Recognized Obligation Payment
Schedule..............................................................52 Parity and Subordinate Debt...................................53 Challenges to Dissolution Act................................53 Bankruptcy and Foreclosure...................................54 Estimated Revenues................................................55 Hazardous Substances............................................55 Natural Disasters.....................................................56 Climate Change and Sea Level Rise.......................59 Cybersecurity..........................................................60 Changes in the Law ................................................60 Investment Risk ......................................................60 Secondary Market...................................................61 IRS Audit of Tax-Exempt Bond Issues..................61 Loss of Tax Exemption...........................................61 Bonds Are Limited Obligations..............................61 Bond Insurance.......................................................62 Limitations on Remedies........................................63 No Acceleration ProvisionError! Bookmark not defined.

TAX MATTERS ...........................................................63 General....................................................................63 Original Issue Premium and Discount....................64 Post Issuance Matters.............................................64 CONCLUDING INFORMATION................................65 Underwriting...........................................................65 Municipal Advisor..................................................65 Verification of Mathematical Computations..........66
Legal Opinion.........................................................66 Litigation ................................................................66 Ratings....................................................................67 Continuing Disclosure ............................................68 Miscellaneous.........................................................69 Attachment B

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APPENDIX A FISCAL CONSULTANT REPORT............................................................................................... A-1 APPENDIX B SUMMARY CERTAIN PROVISIONS OF THE INDENTURE ...................................................B-1 APPENDIX C FORM OF BOND COUNSEL OPINION.......................................................................................C-1 APPENDIX D BOOK-ENTRY ONLY SYSTEM.................................................................................................. D-1

APPENDIX E ANNUAL COMPREHENSIVE FINANCE REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025.................................................................................................................................E-1 APPENDIX F STATE DEPARTMENT OF FINANCE LETTER.........................................................................F-1 APPENDIX G FORM OF CONTINUING DISCLOSURE CERTIFICATE......................................................... G-1 APPENDIX H SUPPLEMENTAL INFORMATION—THE CITY OF SANTA MONICA AND COUNTY OF LOS ANGELES.............................................................................................................................. H-1 APPENDIX I SPECIMEN MUNICIPAL BOND INSURANCE POLICY............................................................I-1 Attachment B

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Packet Pg. 1195 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 1 $[PAR]*

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
2026 TAX ALLOCATION REFUNDING BONDS

INTRODUCTION
This Official Statement, including the cover page, is provided to furnish information in connection with the sale by the Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Successor Agency”) of its $[PAR]* 2026 Tax Allocation Refunding Bonds (the “2026 Bonds”). Capitalized terms used herein and not defined have the meanings set forth in Appendix B— “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE.”
Authority and Purpose
The 2026 Bonds are being issued pursuant to the Constitution and laws of the State of California (the “State”), including Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code (the “Bond Law”), the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code (the “Redevelopment Law”), the Dissolution Act (as defined below) and an Indenture of Trust, dated as of April 1, 2026 (the “Indenture”), by and between the Successor Agency and U.S.

Bank Trust Company, National Association, as trustee (the “Trustee”). See the caption “THE 2026 BONDS—Authority for Issuance.” The 2026 Bonds and any additional debt (“Parity Debt”) issued as bonds pursuant to the Indenture are collectively referred to herein as the “Bonds.” The 2026 Bonds are being issued to: (i) refund the Redevelopment Agency of the City of Santa Monica Earthquake Recovery Redevelopment Project 2006 Tax Allocation Refunding Bonds, Series A (the “2006 Bonds”), which are outstanding in the aggregate principal amount of $15,875,000, and the Redevelopment Agency of the City of Santa Monica Earthquake Recovery Redevelopment Project 2011 Tax Allocation Bonds (the “2011 Bonds”), which are outstanding in the aggregate principal amount of $41,050,000, as described under the caption “REFUNDING PLAN— General”; (ii) pay the premium for a municipal bond insurance policy (the “2026 Policy”) for the 2026 Bonds; (iii) pay the premium for a municipal debt service reserve insurance policy for the 2026 Bonds (the “2026 Reserve Policy”); and (iv) pay certain other costs of issuance of the 2026 Bonds.

See the caption “REFUNDING PLAN—Estimated Sources and Uses of Funds.” The City and the Successor Agency
The City of Santa Monica, California (the “City”), is in the western portion of the County of Los Angeles (the “County”). It is bordered by the City of Los Angeles on three sides and by the Pacific Ocean to the west. The City encompasses an area slightly greater than eight square miles and has an estimated population of 93,212 as of January 1, 2025.

The City is a full-service city that provides residents with a police department, fire department, a regional transportation network, water, refuse and recycling, street maintenance, parking, public wi-fi, a high speed fiber optic network, parks, affordable housing, economic * Preliminary; subject to change.

Attachment B

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Packet Pg. 1196 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 2 development, library services, rent control, recreational, cultural and educational services. It was incorporated as a general law city in 1886 and became a charter city in 1945.

See Appendix H—“SUPPLEMENTAL INFORMATION—THE CITY OF SANTA MONICA AND COUNTY OF LOS ANGELES” for more general information about the City and the County.

The Former Agency was activated by ordinance of the City Council adopted on August 13, 1957, pursuant to the Redevelopment Law. The City Council served as the governing body of the Former Agency and exercised all the rights, powers, duties and privileges of the Former Agency.

On June 29, 2011, Assembly Bill No. 26 (“AB X1 26”) was enacted as Chapter 5, Statutes of 2011, together with a companion bill, Assembly Bill No. 27 (“AB X1 27”). A lawsuit entitled California Redevelopment Association, et al. v. Matosantos, et al., was brought in the State Supreme Court challenging the constitutionality of AB X1 26 and AB X1 27. In a published decision (53 Cal. 4th 231 (Dec. 29, 2011)), the State Supreme Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the State, including the Former Agency, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies.

The primary provisions of AB X1 26 relating to the dissolution and winding down of former redevelopment agency affairs are Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section 34170) of Division 24 of the Health & Safety Code of the State, as amended on June 27, 2012 by Assembly Bill No. 1484 (“AB 1484”), enacted as Chapter 26, Statutes of 2012, and as further amended on September 22, 2015 by Senate Bill 107 (“SB 107”), enacted as Chapter 325, Statutes of 2015 (collectively, as amended from time to time, the “Dissolution Act”).

Pursuant to Section 34173 of the Dissolution Act, the City Council of the City serves as the successor agency to the Former Agency. Subdivision (g) of Section 34173 of the Dissolution Act, which was added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities shall not merge and that the liabilities of the Former Agency will not be transferred to the City, nor will the assets of the Former Agency become assets of the City.

The Project Areas
The 2026 Bonds are principally payable from Tax Revenues. Tax Revenues generally consist of tax increment revenues deposited, or eligible for deposit, into the Successor Agency’s Redevelopment Property Tax Trust Fund after payment of certain County of Los Angeles administrative costs, payments to certain taxing agencies, and other certain senior payments, as described herein. Tax Revenues are generated within the Santa Monica Earthquake Redevelopment Project (the “Earthquake Project Area”), the Downtown Redevelopment Project Area (the “Downtown Project Area”), the Ocean Park Redevelopment Project Area 1A (“Ocean Park Project Area 1A”) and the Ocean Park Redevelopment Project Area 1B (“Ocean Park Project Area 1B”) (collectively, the “Project Areas”).

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Packet Pg. 1197 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 3 agencies, totaling approximately $138 million. Of that amount, approximately $128 million (93 percent) of Tax Revenues were generated within the Earthquake Project Area. No bonds with a pledge or lien on the tax revenues from the Downtown Project Area, the Ocean Park Project Area 1A or the Ocean Park Project Area 1B senior to or on a parity with the 2026 Bonds will remain outstanding on the date the 2026 Bonds are issued. Given the relative magnitude of Tax Revenues generated within the Earthquake Project Area, the projections in this Official Statement assume that the Downtown Project Area, the Ocean Park Project Area 1A and the Ocean Park Project Area 1B will not generate tax increment revenues in the future. Accordingly, the discussion of historical and projected Tax Revenues in this Official Statement and in the Fiscal Consultant Report is limited to the Earthquake Project Area.

The Earthquake Project Area encompasses approximately 2.89 square miles or 35 percent of the City’s total land area of 8.3 square miles. The land within the Earthquake Project Area is predominantly used for residential and commercial purposes. See the caption “THE EARTHQUAKE PROJECT AREA” and the Fiscal Consultant Report attached hereto as Appendix A for more information with respect to the Earthquake Project Area.

Security for the 2026 Bonds; Tax Allocation Financing
Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance that adopts the redevelopment plan becomes the base year valuation. Assuming that the taxable valuation never drops below the base year level, the taxing agencies thereafter received that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations.

The Dissolution Act authorizes refunding bonds, including the 2026 Bonds, to be secured by a pledge of moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditor-controller with respect to a successor agency, which are equivalent to the tax increment revenues that were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment projects.

The 2026 Bonds are secured by “Tax Revenues.” Tax Revenues generally consist of tax revenues generated within the Project Areas that are deposited or are available for deposit by the County Auditor-Controller in the Redevelopment Property Tax Trust Fund established for the Successor Agency (the “Redevelopment Property Tax Trust Fund” or “RPTTF”) established by the County Auditor-Controller for the Successor Agency, and payable from amounts on deposit therein after payments of certain administrative costs of the County.

The Indenture also permits certain other payments to be made to certain taxing agencies (under the Statutory Pass-Through Payments, as defined herein) by the Los Angeles County-Auditor Controller (the “County-Auditor Controller”) and payments to Bank of America, N.A. pursuant to that certain Credit Agreement dated as of May 1, 2008, between Bank of America, N.A., and the Successor Agency, as successor to the Former Agency (as amended or otherwise modified from time Attachment B

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Packet Pg. 1198 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 4 to time, the “BofA Credit Agreement”), prior to payment of debt service on the 2026 Bonds. The BofA Credit Agreement is secured solely by the former Housing Set-Aside (as defined herein) from the Earthquake Project Area according to its terms. Accordingly, the Successor Agency’s obligation to make payments thereunder is senior to the payment of debt service on the 2026 Bonds, but only to the extent tax revenues represent the former Housing Set Aside from the Earthquake Project Area.

See the caption “SECURITY FOR THE 2026 BONDS—Tax Increment Financing.” See also “— Senior Obligations” below.

Pursuant to the Indenture, the Successor Agency will deposit moneys derived from the Project Areas constituting Tax Revenues promptly upon receipt thereof into the Special Fund established under the Indenture and maintained within the Redevelopment Obligation Retirement Fund established pursuant to Section 34170.5(a) of the Dissolution Act. Moneys held in the Special Fund will be transferred to the Trustee at the times specified in the Indenture to make payments of principal of and interest on the 2026 Bonds, all as described further under the caption “SECURITY FOR THE 2026 BONDS.” The Indenture grants to Owners of the 2026 Bonds a pledge of, lien on, and security interest in the Tax Revenues and the Redevelopment Obligation Retirement Fund, including the Special Fund therein, and all amounts in the Redevelopment Property Tax Trust Fund, and will attach, be perfected and be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Successor Agency, irrespective of whether such parties have notice of the Indenture.

The Successor Agency has no power to levy property taxes and must look specifically to the allocation of taxes as described above. See the captions “SECURITY FOR THE 2026 BONDS” and “RISK FACTORS.”
Senior Obligations
The use of Tax Revenues to pay debt service on the 2026 Bonds is subject to the prior payment of permitted administrative costs of the County Auditor-Controller and Statutory PassThrough Payments. See the captions “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Property Tax Administrative Costs” and “SECURITY FOR THE 2026 BONDS—Tax Increment Financing—Tax Sharing” for a description of the County’s administrative costs and the Successor Agency’s obligation to make Statutory Pass-Through Payments.

The Indenture also allows for the use of Tax Revenues to pay make payments under the BofA Credit Agreement prior to debt service on the 2026 Bonds, but only to the extent tax revenues were pledged as security for such payments under the BofA Credit Agreement. The BofA Credit Agreement is secured solely by the former Housing Set-Aside (as defined herein) from the Earthquake Project Area according to its terms. See the caption “SECURITY FOR THE 2026 BONDS—BofA Credit Agreement” for a description of the Successor Agency’s obligations under the BofA Credit Agreement.

Issuance of Parity Debt
The Indenture permits the Successor Agency to issue Parity Debt to refund outstanding 2026 Bonds or other Parity Debt issued in the future, subject to compliance with certain requirements set forth in the Indenture. See “SECURITY FOR THE 2026 BONDS—Issuance of Additional Indebtedness.” Upon the issuance of the 2026 Bonds and the completion of the refunding of the 2006 Bonds and the 2011 Bonds described under the caption “REFUNDING PLAN,” no bonds with Attachment B

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Packet Pg. 1199 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 5 a pledge or lien on the Tax Revenues senior to or on a parity with the 2026 Bonds will remain outstanding except the BofA Credit Agreement, but only to the extent tax revenues were pledged as security for such payments under the BofA Credit Agreement.

Tax-Exemption on 2026 Bonds
In the opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, under existing law and subject to certain qualifications described below, interest on the 2026 Bonds is excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended. Interest on the 2026 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the 2026 Bonds is exempt from California personal income taxes. See “TAX MATTERS.”
Bond Insurance
The scheduled payment of principal of and interest on the 2026 Bonds when due will be guaranteed under the 2026 Policy to be issued concurrently with the delivery of the 2026 Bonds by [INSURER] (the “2026 Insurer”). See the captions “—Authority and Purpose” and “BOND INSURANCE.”
Reserve Account
A subaccount (the “2026 Subaccount”) within the Reserve Account for the 2026 Bonds will be established pursuant to the Indenture in an amount equal to the initial Reserve Requirement for the 2026 Bonds of $_______, which will be satisfied by the delivery of the 2026 Reserve Policy by the 2026 Insurer. The Reserve Requirement for the 2026 Bonds will not increase, but may decrease, following the Closing Date. See “SECURITY FOR THE 2026 BONDS—Transfer of Amounts by Trustee—Reserve Account.” The Successor Agency is not required to fund a debt service reserve account in connection with the issuance of Parity Debt in the future.

Audited Financial Statements
The City’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025 (the “City ACFR”) is attached to this Official Statement as Appendix E. The City ACFR includes the audited financial statements of the Successor Agency for the fiscal year ended June 30, 2025. Said financial statements were audited by LSL, LLP (the “Auditor”). The Auditor has not been asked to consent to the inclusion of the City ACFR, or audited financial statements of the Successor Agency therein, in this Official Statement and has not reviewed this Official Statement. See the caption “CONCLUDING INFORMATION—Audited Financial Statements.” As described in this Official Statement, the 2026 Bonds are payable from and secured by a pledge of Tax Revenues and certain funds and accounts established and held by the Trustee under the Indenture. The 2026 Bonds are not a debt of the City.

Attachment B

11.B.b
Packet Pg. 1200 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 6 Further Information
Brief descriptions of the 2026 Bonds, the Indenture, the Successor Agency, the Former Agency and the City are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the Bond Law, the Redevelopment Law, the Dissolution Act, the Constitution and the laws of the State as well as the proceedings of the Former Agency, the Successor Agency and the City are qualified in their entirety by reference to such documents. References herein to the 2026 Bonds are qualified in their entirety by the form thereof included in the Indenture and the information with respect thereto included herein copies of which are all available for inspection at the offices of the City Clerk, City of Santa Monica, 1685 Main Street, Santa Monica, California 90401.

REFUNDING PLAN
General
The Successor Agency expects to apply a portion of the proceeds of the 2026 Bonds, together with other funds on hand, to cause the defeasance of the 2006 Bonds and the 2011 Bonds on the date the 2026 Bonds are issued (the “Closing Date”), and to refund the 2006 Bonds and the 2011 Bonds on ________, 2026 (the “Redemption Date”) at a redemption price that is equal to the principal amount of said bonds then outstanding, plus accrued interest thereon, without premium. The 2006 Bonds and the 2011 Bonds to be refunded are described in the following tables and are referred to collectively in this Official Statement as the “Refunded Bonds.” Refunded 2006 Bonds
Maturity Date
(July 1)
Outstanding
Principal Amount Interest Rate CUSIP†
2026 $3,705,000 4.500% 802447 EX6
2027 3,870,000 4.600 802447 EY4
2028 4,050,000 5.000 802447 EZ1
2029 4,250,000 4.625 802447 FA5
Source: Stifel, Nicolaus & Company, Incorporated.

Refunded 2011 Bonds
Maturity Date
(July 1)
Outstanding
Principal Amount Interest Rate CUSIP†
2032 $ 7,105,000 5.000% 802447 FB3
2036 11,390,000 5.875 802447 FC1
2042 12,600,000 5.875 802447 FD9
2042 9,955,000 5.000 802447 FE7
Source: Stifel, Nicolaus & Company, Incorporated.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2026 CUSIP Global Services. All rights reserved.

CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the Successor Agency, the City or the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers.

Attachment B

11.B.b
Packet Pg. 1201 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 7 Pursuant to separate Escrow Agreements, each dated as of the Closing Date (collectively, the “Escrow Agreements”), by and between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee and escrow agent for the Refunded Bonds (in such capacity, the “Escrow Agent”), the Successor Agency will cause a portion of the proceeds of the 2026 Bonds to be delivered to the Escrow Agent for deposit in the applicable escrow fund established under the Escrow Agreements (each, an “Escrow Fund” and collectively, the “Escrow Funds”). A portion of the amounts to be delivered by or on behalf of the Successor Agency to the Escrow Agent on the Closing Date, together with amounts transferred from funds and accounts established in connection with the Refunded Bonds, will be invested in federal securities, and the remainder will be held in cash, uninvested. Said federal securities will be scheduled to mature in such amounts and at such times and bear interest at such rates as to provide funds (together with cash deposits) that are sufficient to pay the regularly scheduled principal of and accrued interest on the Refunded Bonds through the Redemption Date and to pay the redemption price of the remaining outstanding amount of the Refunded Bonds on the Redemption Date.

The sufficiency of the deposits to each Escrow Fund for the purposes described above will be verified by Causey Public Finance, LLC, Denver, Colorado (the “Verification Agent”). Assuming the accuracy of such computations, as a result of the deposit and application of funds as provided in the Escrow Agreements, the applicable series of Refunded Bonds will be defeased pursuant to the provisions of the indenture of trust under which the Refunded Bonds Verification of Mathematical Computations
Upon issuance of the 2026 Bonds, the Verification Agent will deliver a report on the mathematical accuracy of certain computations based upon certain information and assertions provided to it by the Underwriter relating to the adequacy of the cash and/or the maturing principal of and interest on the federal securities to be deposited in the Escrow Funds to pay the respective redemption prices of the Refunded Bonds.

Estimated Sources and Uses of Funds
The estimated sources and uses of the 2026 Bonds and other available moneys are summarized as follows:

Total
Sources:

Principal Amount of 2026 Bonds $
[Plus/Less] Original Issue [Premium/Discount]
Plus Other Available Moneys(1)
Total Sources: $
Uses:
2006 Bonds Escrow Fund $
2011 Bonds Escrow Fund
Costs of Issuance(2)
Total Uses: $
(1) Consists of moneys on deposit in funds and accounts of the Refunded Bonds. (2) Includes fees and expenses of Bond and Disclosure Counsel, Municipal Advisor, Fiscal Consultant, Trustee, Escrow Agent, printing expenses, rating agency fees, Underwriter’s discount, premiums for the 2026 Policy and the 2026 Reserve Policy, and other miscellaneous costs.

Attachment B

11.B.b
Packet Pg. 1202 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 8 THE 2026 BONDS
Authority for Issuance
The 2026 Bonds are authorized for issuance pursuant to the Indenture, the Bond Law, the Redevelopment Law and the Dissolution Act. Direction to undertake the issuance of the 2026 Bonds and the execution of the related documents was authorized by the Successor Agency pursuant to Resolution No. 49 (SA), adopted on January 13, 2026 (the “Resolution”), and by the Los Angeles County Third Supervisorial District Consolidated Oversight Board (the “Oversight Board”) pursuant to Resolution No. OB3 2026-62, adopted on February 10, 2026 (the “Oversight Board Resolution”).

Written notice of the Oversight Board Resolution was provided to the State Department of Finance (the “DOF”) pursuant to the Dissolution Act, and the DOF requested a review within five business days of such written notice. On _________, 2026, the DOF provided a letter to the Successor Agency stating that based on the DOF’s review and application of the law, the Oversight Board Resolution approving the 2026 Bonds to refund the Refunded Bonds is approved by the DOF.

A copy of DOF’s letter approving the issuance of the 2026 Bonds to refund the Refunded Bonds is attached to this Official Statement as Appendix F.

Description of the 2026 Bonds
The 2026 Bonds will be issued in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof, so long as no 2026 Bond will have more than one maturity date. The 2026 Bonds will be dated as of their Closing Date.

Interest on the 2026 Bonds will be payable semiannually on February 1 and August 1 in each year, commencing on [August 1, 2026] (each, an “Interest Payment Date”). Each 2026 Bond will bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months) from the Interest Payment Date next preceding the date of authentication thereof, unless (a) it is authenticated after a Record Date and on or before the following Interest Payment Date, in which event it will bear interest from such Interest Payment Date; or (b) it is authenticated on or before [July 15, 2026], in which event it will bear interest from its Closing Date; provided, however, that if, as of the date of authentication of any 2026 Bond, interest thereon is in default, such 2026 Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.

Interest on the 2026 Bonds (including the final interest payment upon maturity or redemption) is payable when due by wire or check of the Trustee mailed on the Interest Payment Date to the Owner thereof at such Owner’s address as it appears on the Registration Books at the close of business on the preceding Record Date; provided that at the written request of the Owner of at least $1,000,000 aggregate principal amount of the 2026 Bonds, which written request is on file with the Trustee as of any Record Date, interest on such 2026 Bonds will be paid on the succeeding Interest Payment Date by wire to such account in the United States as will be specified in such written request. The principal of the 2026 Bonds and premium, if any, upon redemption, are payable in lawful money of the United States of America upon presentation and surrender thereof at the Principal Corporate Trust Office of the Trustee.

Attachment B

11.B.b
Packet Pg. 1203 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 9 Book-Entry System
DTC will act as securities depository for the 2026 Bonds. The 2026 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the 2026 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See Appendix D for further information with respect to DTC and its book-entry system.

Redemption*
Optional Redemption. The 2026 Bonds maturing on or prior to August 1, 20__ are not subject to optional redemption. The 2026 Bonds maturing on or after August 1, 20__, are subject to optional redemption prior to their respective maturity dates as a whole, or in part by lot, on any date on or after August 1, 20__, by such maturity or maturities as shall be directed by the Successor Agency (or in absence of such direction, pro rata by maturity and by lot within a maturity), from any source of available funds. Such optional redemption shall be at a redemption price equal to 100 percent of the principal amount to be redeemed, plus accrued but unpaid interest to the date fixed for redemption, without premium.

Mandatory Sinking Fund Redemption. The 2026 Bonds maturing August 1, 20__ and August 1, __ (the “2026 Term Bonds”) shall also be subject to mandatory redemption in whole, or in part by lot, on August 1 in each year, commencing August 1, 20__ and August 1, 20__, respectively, as set forth below, from sinking fund payments made by the Successor Agency to the Principal Account pursuant to the Indenture, at a redemption price equal to the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on August 1 in the respective years as set forth in the following tables; provided however, that (y) in lieu of redemption thereof such 2026 Term Bonds may be purchased by the Successor Agency pursuant to the Indenture, and (z) if some but not all of such 2026 Term Bonds have been optionally redeemed pursuant to the provisions of the Indenture described under the caption “—Optional Redemption of 2026 Bonds,” the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of such 2026 Term Bonds so redeemed, to be allocated among such sinking fund payments in integral multiples of $5,000 as determined by the Successor Agency. 2026 Term Bonds of 20__
August 1 Principal Amount
* Preliminary, subject to change.

Attachment B

11.B.b
Packet Pg. 1204 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 10 2026 Term Bonds of 20__
August 1 Principal Amount
Notice of Redemption; Rescission. The Trustee on behalf and at the expense of the Successor Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least 20 but not more than 60 days prior to the redemption date, (i) to any Insurer and to the Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, (ii) to the Securities Depositories and (iii) post to the Electronic Municipal Market Access (“EMMA”) internet website maintained by the Municipal Securities Rulemaking Board and, if designated in a Written Request of the Successor Agency filed with the Trustee, to one or more additional Information Services; but such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect therein shall affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice shall state the redemption date and the redemption price, shall state, in the case of an optional redemption described above, that such redemption is conditioned upon the timely delivery of the redemption price by the Successor Agency to the Trustee for deposit in the Redemption Account, shall designate the CUSIP number of the Bonds to be redeemed, shall state the individual number of each Bond to be redeemed or shall state that all Bonds between two stated numbers (both inclusive) or all of the Bonds Outstanding are to be redeemed, and shall require that such Bonds be then surrendered at the Principal Corporate Trust Office of the Trustee for redemption at the redemption price, giving notice also that (subject to timely delivery of the redemption price by the Successor Agency to the Trustee for reposit in the Redemption Account) further interest on such Bonds will not accrue from and after the redemption date, and that notice of optional redemption shall be canceled and annulled if for any reason funds will not be or are not available on the date fixed for redemption, as provided in the Indenture.

The Successor Agency has the right to rescind any notice of optional redemption by written notice to the Trustee on or prior to the date fixed for redemption and such recission does not constitute an Event of Default under the Indenture. Any such notice of optional redemption shall be canceled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default under the Indenture. The Successor Agency and the Trustee shall have no liability to the Owners or any other party related to or arising from any such rescission or cancellation of redemption. The Trustee shall mail notice of such rescission of redemption in the same manner and to the same recipients as the original notice of redemption was sent.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the Bonds so called for redemption shall have Attachment B

11.B.b
Packet Pg. 1205 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 11 been duly deposited with the Trustee, such Bonds so called shall cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice.

Purchase in Lieu of Redemption. In lieu of redemption of the Bonds, amounts on deposit in the Special Fund or in the Principal Account may also be used and withdrawn by the Successor Agency and the Trustee, respectively, at any time, upon the Written Request of the Successor Agency, for the purchase of the Bonds at public or private sale as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as the Successor Agency may in its discretion determine. The par amount of any Bonds so purchased by the Successor Agency in any twelve-month period ending on August 1 in any year shall be credited towards and shall reduce the par amount of the Bonds required to be redeemed pursuant to a Supplemental Indenture on August 1 in each year; provided that evidence satisfactory to the Trustee of such purchase has been delivered to the Trustee by said August 1.

Annual Debt Service
The table below shows the annualized debt service on the 2026 Bonds, assuming no optional redemption prior to maturity.

Bond Year Ending
August 1 Principal Interest Total
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
Total
Source: Stifel, Nicolaus & Company, Incorporated.

SECURITY FOR THE 2026 BONDS
General
The Dissolution Act requires the County Auditor-Controller to determine the amount of property taxes that would have been allocated to the Former Agency (pursuant to subdivision (b) of Attachment B

11.B.b
Packet Pg. 1206 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 12 Section 16 of Article XVI of the State Constitution) had the Former Agency not been dissolved pursuant to the operation of AB X1 26, using current assessed values on the last equalized roll on August 20, and to deposit such amount in the Redevelopment Property Tax Trust Fund for the Successor Agency established and held by the County Auditor-Controller pursuant to the Dissolution Act. Section 34177.5(g) of the Dissolution Act provides that any bonds authorized to be issued by the Successor Agency will be considered indebtedness incurred by the dissolved Former Agency, with the same legal effect as if the bonds had been issued prior to the effective date of AB X1 26, in full conformity with the applicable provision of the Redevelopment Law that existed prior to that date; will be included in the Successor Agency’s Recognized Obligation Payment Schedule and will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to the Dissolution Act. Property tax revenues pledged to any bonds authorized to be issued by the Successor Agency under the Dissolution Act, including the 2026 Bonds, are taxes allocated to the Successor Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 16 of Article XVI of the State Constitution. See the caption “—Recognized Obligation Payment Schedule” and Appendix B—“SUMMARY CERTAIN PROVISIONS OF THE INDENTURE.” Pursuant to Section 33670(b) of the Redevelopment Law and Section 16 of Article XVI of the State Constitution, and as provided in the Redevelopment Plans for the Project Areas, taxes levied upon taxable property in the Project Areas each year by or for the benefit of the State, any city, county, district, or other public corporation (herein sometimes collectively called “taxing agencies”) after the effective date of the ordinance approving the redevelopment plan, or the respective effective dates of ordinances approving amendments to the redevelopment plan that added territory to the Project Areas, as applicable, are to be divided as follows:
(a) To Taxing Agencies: That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the Project Areas as shown upon the assessment roll used in connection with the taxation of such property by such taxing agency last equalized prior to the effective date of the ordinance adopting the redevelopment plan, or the respective effective dates of ordinances approving amendments thereto that added territory to the Project Areas, as applicable (each, a “base year valuation”), will be allocated to, and when collected will be paid into, the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid; and
(b) To the Former Agency/Successor Agency: Except for that portion of the taxes in excess of the amount identified in (a) above which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989 for the acquisition or improvement of real property, which portion shall be allocated to, and when collected shall be paid into, the fund of that taxing agency (as discussed under the caption “PROPERTY TAXATION IN CALIFORNIA—Article XIIIA of the State Constitution”), that portion of the levied taxes each year in excess of such amount, annually allocated within the redevelopment plan limit, when collected will be paid into a special fund of the Former Agency. Section 34172(a) of the Dissolution Act provides that, for purposes of Section 16 of Article XVI of the State Constitution, the Redevelopment Property Tax Trust Fund will be deemed to be a special fund of the Successor Agency to pay the debt service on indebtedness incurred by the Former Agency or the Successor Agency to finance or refinance the redevelopment projects of the Former Agency.

Attachment B

11.B.b
Packet Pg. 1207 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 13 That portion of the levied taxes described in paragraph (b) above constitutes the amount required under the Dissolution Act to be deposited by the County Auditor-Controller into the Redevelopment Property Tax Trust Fund. In addition, Section 34183 of the Dissolution Act effectively eliminates the January 1, 1989 date referred to in paragraph (b) above. SB 107 provides that debt service override revenues approved by the voters for the purpose of supporting pension programs or capital projects or programs related to the State Water Project that are not pledged to or not needed for debt service on Successor Agency debt will be allocated and paid to the entity that levies the override. No such overrides are pledged as security for the 2026 Bonds.

The 2026 Bonds are secured by “Tax Revenues.” Tax Revenues generally consist of tax revenues generated within the Project Areas that are deposited or are available for deposit in the Redevelopment Property Tax Trust Fund established by the County Auditor-Controller for the Successor Agency and payable from amounts on deposit therein after payments of certain administrative costs of the County Auditor-Controllers. The Indenture also permits Statutory PassThrough Payments by the County-Auditor Controller and payments to Bank of America, N.A. pursuant to the BofA Credit Agreement prior to payment of debt service on the 2026 Bonds, but only to the extent tax revenues were pledged as security for such payments under the BofA Credit Agreement, as described under the caption “SECURITY FOR THE 2026 BONDS—Tax Increment Financing.” See also “—Senior Obligations” below.

The Successor Agency has no power to levy and collect taxes, and various factors beyond its control could affect the amount of Tax Revenues available in any fiscal year (defined as July 1 through June 30) to pay the principal of and interest on the 2026 Bonds. See the captions “—Tax Increment Financing,” “—Recognized Obligation Payment Schedule,” “PROPERTY TAXATION IN CALIFORNIA” and “RISK FACTORS.”
The 2026 Bonds are not a debt of the City, the State, or any of its political subdivisions (except the Successor Agency), and neither said City or State, nor any of its political subdivisions (except the Successor Agency), is liable hereon, nor in any event shall the 2026 Bonds be payable out of any funds or properties other than those of the Successor Agency. The 2026 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

Tax Revenues
The Indenture provides that, subject to certain senior payments described therein, all Tax Revenues, the Redevelopment Obligation Retirement Fund, including the Special Fund therein, and all amounts in the Redevelopment Property Tax Trust Fund are irrevocably pledged to secure the payment of the principal of and interest on the 2026 Bonds and all Parity Debt, without preference or priority for series, issue, number, dated date, sale date, date of execution or date of delivery. Such pledge constitutes a lien on and security interest in the Tax Revenues, the Redevelopment Obligation Retirement Fund, including the Special Fund therein, and all amounts in the Redevelopment Property Tax Trust Fund, and will attach, be perfected and be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Successor Agency, irrespective of whether such parties have notice of the Indenture; provided however, that the County AuditorController is authorized by Section 34183(a) of the Dissolution Act to use Tax Revenues to pay the County’s administrative costs allowed under Section 34182 and Section 95.3 of the Revenue and Taxation Code and is required by Section 34183(a)(1) of the Dissolution Act to pay the Statutory Pass-Through Payments to taxing entities (unless such payments are subordinated to payments on the Attachment B

11.B.b
Packet Pg. 1208 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 14 2026 Bonds and Parity Debt pursuant to Section 33607.5(e) of the Redevelopment Law or Section 34177.5(c) of the Dissolution Act) and provided further that the Successor Agency may use Tax Revenues to make payments under the BofA Credit Agreement on a basis senior to the 2026 Bonds, but only to the extent tax revenues were pledged as security for such payments under the BofA Credit Agreement. Except for the Tax Revenues, such amounts and such funds and accounts, no other moneys, funds, accounts or properties of the Successor Agency are pledged to, or otherwise liable for, the payment of principal of or interest or redemption premium (if any) on the 2026 Bonds or Parity Debt except as provided in the following paragraph with respect to the 2026 Bonds and other Bonds. See the captions “—Statutory Pass-Through Amounts,” “—BofA Credit Agreement,” “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Property Tax Administrative Costs,” “—Tax Increment Financing—Tax Sharing,” and “—Elimination of Housing Set-Aside.”
The Indenture further provides that the Debt Service Fund and any fund or account or subaccounts created under the Indenture (other than the Costs of Issuance Fund and the Rebate Fund), including amounts on deposit therein (including proceeds of the 2026 Bonds), are irrevocably pledged under the Indenture to secure the payment of the principal of and interest on the 2026 Bonds and other Bonds without preference or priority for series issue, number, dated date, sale date, date of execution or date of delivery. Such pledge will constitute a first and exclusive lien on and security interest in the Debt Service Fund and any other fund or account created under the Indenture (except for the 2026 Subaccount of the Reserve Account, which will only secure the 2026 Bonds, and any subaccounts therein created in the future in connection with the issuance of Parity Debt, which subaccounts will only secure such Parity Debt), and including amounts on deposit therein (including proceeds of the 2026 Bonds), and will attach, be perfected and be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Successor Agency, irrespective of whether such parties have notice of the Indenture.

Under the Indenture, “Tax Revenues” is defined to mean all taxes that are deposited or available for deposit by the County Auditor-Controller in the Redevelopment Property Tax Trust Fund established for the Successor Agency, all as provided in Section 34172(d) of the Dissolution Act.

Under the Indenture, the Successor Agency and the Trustee acknowledge that Section 34177.5(g) of the Dissolution Act provides that the 2026 Bonds and Parity Debt are further secured by a pledge of, and lien on moneys deposited in the Redevelopment Property Tax Trust Fund held by the County Auditor Controller related to the Successor Agency, which moneys, subject to (i) the payment by the County Auditor Controller of certain amounts to the County for administrative costs allowed under Section 34182 and Section 95.3 of the Revenue and Taxation Code, the Statutory Pass-Through Payments to taxing entities (unless such payments are subordinated to payments on the 2026 Bonds and Parity Debt pursuant to Section 33607.5(e) of the Redevelopment Law or Section 34177.5(c) of the Dissolution Act), and (ii) the payments by the Successor Agency under the BofA Credit Agreement, but only to the extent tax revenues were pledged as security for such payments under the BofA Credit Agreement, constitute Tax Revenues as defined in the Indenture.

Taxes levied on the property within the Project Areas on that portion of the taxable valuation over and above the taxable valuation of the applicable base year property tax roll with respect to the various territories within the Project Areas will be deposited in the Redevelopment Property Tax Trust Fund for transfer by the County Auditor-Controller to the Successor Agency’s Redevelopment Obligation Retirement Fund on January 2 and June 1 of each year to the extent required for payments Attachment B

11.B.b
Packet Pg. 1209 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 15 listed in the Successor Agency’s approved Recognized Obligation Payment Schedule in accordance with the requirements of the Dissolution Act. See the caption “—Recognized Obligation Payment Schedule.” Moneys deposited by the County Auditor-Controller into the Successor Agency’s Redevelopment Obligation Retirement Fund for payment of debt service on the 2026 Bonds will be transferred by the Successor Agency to the Trustee for deposit in the Debt Service Fund established under the Indenture and administered by the Trustee in accordance with the Indenture.

In consideration of the acceptance of the 2026 Bonds and other Bonds by those who will hold the same from time to time, the Indenture constitutes a contract between the Successor Agency and the Owners from time to time of the 2026 Bonds, and the covenants and agreements set forth in the Indenture to be performed on behalf of the Successor Agency will be for the equal and proportionate benefit, security and protection of all Owners of the 2026 Bonds and other Bonds without preference, priority or distinction as to security or otherwise of any of the 2026 Bonds and other Bonds over any of the others by reason of the number or date thereof or the time of sale, execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly provided in the Indenture.

Redevelopment Obligation Retirement Fund; Deposit of Tax Revenues Pursuant to the Indenture, a special fund to be known as the “Special Fund” will be established and held by the Successor Agency within the Redevelopment Obligation Retirement Fund. The Special Fund will be held by the Successor Agency separate and apart from other funds of the Successor Agency.

Subject to the prior payments permitted by the Indenture, the Successor Agency will deposit all of the Tax Revenues received with respect to each Bond Year into the Special Fund promptly upon receipt thereof by the Successor Agency in accordance with the Indenture. Except as may be provided to the contrary in the Indenture or in any Supplemental Indenture or Parity Debt Instrument, upon receipt by the Successor Agency of money from the Redevelopment Property Tax Trust Fund requested in accordance with the Indenture, on each January 2 and June 1 or other date(s) on which Redevelopment Property Tax Trust Fund moneys are distributed to the Successor Agency, and deposit of such amounts into the Special Fund, all Tax Revenues received by the Successor Agency in excess of such amounts will be released from the pledge and lien under the Indenture and will be applied in accordance with the Redevelopment Law and the Dissolution Act, including but not limited to the payment of debt service on any subordinate debt. Prior to the payment in full of the principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable under the Indenture and under any Supplemental Indentures or other Parity Debt Instrument, the Successor Agency will not have any beneficial right or interest in the moneys on deposit in the Special Fund, except as may be provided in the Indenture and in any Supplemental Indenture or other Parity Debt Instrument.

Transfer of Amounts by Trustee
The Indenture establishes a trust fund to be known as the “Debt Service Fund,” and an “Interest Account” and “Principal Account” therein (together with the Reserve Account and the 2026 Bonds Subaccount therein established under the Indenture), which will be held by the Trustee under the Indenture in trust. Moneys in the Special Fund will be transferred by the Successor Agency to the Trustee in the following amounts, at the following times, and deposited by the Trustee, on a prorata basis amongst series of Bonds, in the following respective special accounts, which are established in the Debt Service Fund, and in the following order of priority (provided that, if on the Attachment B

11.B.b
Packet Pg. 1210 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 16 fifth (5th) Business Day prior to the date the Successor Agency is required to transfer amounts on deposit in the Special Fund to the Trustee amounts on deposit therein are insufficient to make the following deposits, taking into account amounts required to be transferred with respect to Bonds other than the 2026 Bonds, the Successor Agency will immediately notify the Trustee in writing of the amount of any such insufficiency and the Trustee will deposit amounts received from the Successor Agency into sub-accounts of the Interest Account and/or Principal Account, as applicable, on a pro-rata basis):

Interest Account. On or before the fifth (5th) Business Day preceding each Interest Payment Date, commencing with the Interest Payment Date of [August 1, 2026], the Successor Agency will withdraw from the Special Fund and transfer to the Trustee, for deposit in the Interest Account an amount which when added to the amount contained in the Interest Account on that date, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such Interest Payment Date. No such transfer and deposit need be made to the Interest Account if the amount contained therein is at least equal to the interest to become due on the next succeeding Interest Payment Date upon all of the Outstanding Bonds. All moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it becomes due and payable. The Trustee will establish a “2026 Account” within the Interest Account for payment of interest due on the 2026 Bonds, and may establish sub-accounts within the Interest Account for the payment of interest due on other Bonds, provided that all such Bonds shall be paid on a parity basis.

Principal Account. On or before the fifth (5th) Business Day preceding August 1 in each year in which principal is due on any Bonds, the Successor Agency will withdraw from the Special Fund and transfer to the Trustee for deposit in the Principal Account an amount which, when added to the amount then contained in the Principal Account, will be equal to the principal becoming due and payable on the Outstanding Bonds, including pursuant to mandatory sinking account redemption, on the next August 1. No such transfer and deposit need be made to the Principal Account if the amount contained therein is at least equal to the principal to become due on the next August 1 on all of the Outstanding Bonds. All moneys in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds, including by mandatory sinking account redemption, as the same becomes due and payable. The Trustee will establish a “2026 Account” within the Principal Account for payment of principal due on the 2026 Bonds within the Principal Account for payment of principal due on the 2026 Bonds, and may establish additional subaccounts within the Principal Account for the payment of principal due on the 2026 Bonds and other Bonds, provided that all such Bonds will be paid on a parity basis.

Reserve Account. A separate account known as the “Reserve Account,” and a “2026 Subaccount” therein, will be established and held by the Trustee under the Indenture. The 2026 Subaccount will serve solely as security for payments of the 2026 Bonds payable by the Successor Agency pursuant to the Indenture.

The Reserve Requirement for the 2026 Bonds or any series (or multiple series) of Parity Debt for which a reserve account or fund is to be funded will be calculated, as of any date of computation, as the lesser of: (i) 125 percent of the average Annual Debt Service with respect to such series (or multiple series) of Bonds, (ii) Maximum Annual Debt Service with respect to such series (or multiple series) of Bonds, or (iii) with respect to such series (or multiple series) of Bonds, 10 percent of the original principal amount of such series (or multiple series) of Bonds (or, if such series (or multiple series) of Bonds has more than a de minimis amount of original issue discount or premium, 10 Attachment B

11.B.b
Packet Pg. 1211 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 17 percent of the issue price of such series (or multiple series) of Bonds; provided, that in no event shall the Successor Agency, in connection with the issuance or incurrence of Parity Debt be obligated to deposit an amount in the Reserve Account (or subaccount thereof) which is in excess of the amount permitted by the applicable provisions of the Tax Code (as hereinafter defined) to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, in the event the amount of any such deposit into the Reserve Account (or subaccount thereof) is so limited, the Reserve Requirement with respect to the 2026 Bonds or any series (or multiple series) of Parity Debt for which a reserve is to be funded shall, in connection with the issuance of such Parity Debt, be increased only by the amount of such deposit as permitted by the Tax Code; and, provided further that the Successor Agency may meet all or a portion of the Reserve Requirement by depositing a Qualified Reserve Account Credit Instrument meeting the requirements of the Indenture.

The Reserve Requirement for the 2026 Bonds will be satisfied by the delivery of the 2026 Reserve Policy by the 2026 Insurer on the Closing Date with a stated policy amount of $__________.

The Successor Agency will have no obligation to replace the 2026 Reserve Policy or to fund the 2026 Subaccount of the Reserve Account with cash if, at any time that the 2026 Bonds are Outstanding, any rating assigned to the 2026 Insurer is downgraded, suspended or withdrawn or amounts are not available under the 2026 Reserve Policy, other than in connection with a draw on the 2026 Reserve Policy. See the caption “BOND INSURANCE.”
No Reserve Account Required for Parity Debt. The Indenture permits the issuance of Parity Debt without funding a reserve account for such Parity Debt. In the event the Successor Agency has insufficient revenues to pay debt service on the 2026 Bonds and Parity Debt, Tax Revenues would be applied pro-rata to the payment of the 2026 Bond and Parity Debt. See the captions “SECURITY FOR THE 2026 BONDS—Issuance of Additional Indebtedness” and “RISK FACTORS—Parity Debt Issued Without Reserve.”
The 2026 Subaccount of the Reserve Account established under the Indenture for the 2026 Bonds secures payment solely of the 2026 Bonds, and will not secure payment of Parity Debt. If the Successor Agency issues Parity Debt secured by a reserve account under a Supplemental Indenture, the Successor Agency will establish one or more separate subaccounts in the Reserve Account for the purpose of securing such Parity Debt. Such subaccounts within the Reserve Account will not be available to pay debt service on the 2026 Bonds. See Appendix B—“SUMMARY CERTAIN PROVISIONS OF THE INDENTURE” under the caption “SECURITY OF BONDS; FLOW OF FUNDS—Deposit of Amounts by Trustee—Reserve Account” for further information with respect to the procedure for drawing upon the Reserve Account and subaccounts therein.

Tax Increment Financing
General. Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation. Assuming that the taxable valuation exceeds the base year level, the taxing agencies thereafter received that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the increase in Attachment B

11.B.b
Packet Pg. 1212 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 18 valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations.

The Dissolution Act authorizes refunding bonds, including the 2026 Bonds, that are issued by a successor agency to be secured by a pledge of moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditor-controller with respect to that successor agency, which are equivalent to the tax increment revenues that were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment projects, less amounts deducted pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs of the county auditor-controller. Under the Indenture, Tax Revenues consist of the amounts deposited or available for deposit from time to time in the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the Dissolution Act. Successor agencies have no power to levy property taxes and must look specifically to the allocation of taxes as described above. See the caption “RISK FACTORS.”
Tax Sharing. The Redevelopment Law authorized redevelopment agencies to make contractual payments to school districts and other taxing agencies to alleviate any financial burden or detriments to such taxing agencies caused by a redevelopment project. The Former Agency did not enter into any pass-through agreements with respect to the Earthquake Project Area. Additionally, Sections 33607.5 and 33607.7 of the Redevelopment Law required mandatory tax sharing applicable to redevelopment projects adopted on or after January 1, 1994, or amended after January 1, 1994 in certain respects specified in such statutes (the “Statutory Pass-Through Payments”). Further, redevelopment project areas adopted on or after January 1, 1985 and prior to January 1, 1994 were subject to payments to schools and to other affected taxing agencies that elected to receive tax revenue payments set forth under Section 33676 of the Redevelopment Law (“33676 Payments”).

The Redevelopment Plan for the Earthquake Project Area was adopted on or after January 1, 1994; therefore, the Successor Agency is required to make Statutory Pass-Through Payments but not 33676 Payments. See the caption “—Statutory Pass-Through Payments” below for a description of the Successor Agency’s obligation to make Statutory Pass-Through Payments with respect to the Earthquake Project Area. See also the caption “PROPERTY TAXATION IN CALIFORNIA— Section 33676 Election.”
The Dissolution Act requires the County Auditor-Controller to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed as Statutory PassThrough Payments to the taxing entities on each January 2 and June 1 before amounts are distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Successor Agency’s Redevelopment Obligation Retirement Fund, unless: (i) Statutory Pass-Through Payment obligations have been made subordinate to debt service payments for the bonded indebtedness of the Successor Agency; (ii) the Successor Agency has reported, by filing a Notice of Insufficiency with the County Auditor-Controller, no later than the December 1 or May 1 preceding the applicable January 2 or June 1 distribution date, as applicable, that the total amount available to the Successor Agency from the Redevelopment Property Tax Trust Fund allocation to the Successor Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency and from funds that have or will become available through asset sales and all redevelopment operations, is insufficient to fund the Successor Agency’s enforceable obligations, Statutory PassThrough Payments and the Successor Agency’s administrative cost allowance for the applicable six-month period; and (iii) the County Auditor-Controller and the State Controller have concurred Attachment B

11.B.b
Packet Pg. 1213 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 19 with the Successor Agency that there are insufficient funds for such purposes for the applicable sixmonth period.

The Dissolution Act provides for a procedure by which the Successor Agency may make Statutory Pass-Through Payments subordinate to the 2026 Bonds. The Successor Agency has not undertaken the requisite procedures to subordinate the Statutory Pass-Through Payments to the payment of debt service on the 2026 Bonds and, therefore, the pledge of Tax Revenues to secure the payment of debt service on the 2026 Bonds when due is subordinate to the Statutory Pass-Through Payments. See the caption “TAX REVENUES” for projections of Tax Revenues. See “THE EARTHQUAKE PROJECT AREA” for additional information regarding assessed values and Tax Revenues generated in the Earthquake Project Area.

Elimination of Housing Set-Aside. Before the dissolution of the Former Agency, the Redevelopment Law required the Former Agency to set aside not less than 20 percent of the gross tax increment allocated to the Former Agency from the Earthquake Project Area, i.e., the “Housing SetAside,” in the Former Agency’s Low and Moderate Income Housing Fund, to be expended for low and moderate income housing purposes. Generally, the Former Agency was authorized to use the Housing Set-Aside to pay debt service on bonds solely to the extent that the proceeds of such bonds were used to finance or refinance low and moderate income housing projects. In contrast, under the Redevelopment Law, the Former Agency was authorized to use the portion of tax increment that was not part of the Housing Set-Aside (the “Non-Housing Portion”) to pay debt service on all bonds and other indebtedness of the Former Agency incurred to finance or refinance redevelopment projects for the Earthquake Project Area, subject to limitations set forth in the indentures or other governing documents.

The Dissolution Act has eliminated the Low and Moderate Income Housing Fund and the requirement to deposit the Housing Set-Aside into such fund. The Redevelopment Property Tax Trust Fund flow of funds under the Dissolution Act makes no distinction between obligations that were, in whole or in part, secured by and payable from the Housing Set-Aside and obligations that were solely secured by and payable from the Non-Housing Portion. In effect, after the Former Agency’s dissolution, all of the Successor Agency’s outstanding obligations are paid from Redevelopment Property Tax Trust Fund disbursements without distinction between obligations related to housing and non-housing projects. However, the Dissolution Act did not affect the enforceability of any pledge made by the Former Agency of the former Housing Set-Aside to secure indebtedness. The BofA Credit Agreement, which pre-dates the Dissolution Act, is secured solely by the former Housing Set-Aside from the Earthquake Project Area according to its terms, and the 2026 Bonds are payable from the former Housing Set-Aside only after payment of debt service under the BofA Credit Agreement. See the caption “—BofA Credit Agreement.” Recognized Obligation Payment Schedule
On or before each February 1, with respect to each fiscal year, the Dissolution Act requires successor agencies to prepare and approve, and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as such term is defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. As defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required debt service, reserve set-asides and any other payments required under an indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency, as well as other obligations Attachment B

11.B.b
Packet Pg. 1214 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 20 such as loans, judgments or settlements against the former redevelopment agency, any legally binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy, contracts necessary for the administration or operation of the successor agency, and amounts borrowed from the Low and Moderate Income Housing Fund. A reserve may be included on the Recognized Obligation Payment Schedule and held by the successor agency when required by the bond indenture or when the next property tax allocation will be insufficient to pay all obligations due under the provisions of the bond for the next payment due in the following half of the calendar year.

Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on a Recognized Obligation Payment Schedule are the following: (i) the Low and Moderate Income Housing Fund; (ii) bond proceeds; (iii) reserve balances; (iv) administrative cost allowance; (v) the Redevelopment Property Tax Trust Fund (but only to the extent that no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or otherwise required under the Dissolution Act); or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the former redevelopment agency, as approved by the oversight board).

Under the Dissolution Act, if an enforceable obligation provides for an irrevocable commitment of revenue and where allocation of such revenues is expected to occur over time, the successor agency may petition the DOF to provide written confirmation that its determination of such enforceable obligation as approved in a Recognized Obligation Payment Schedule is final and conclusive, and reflects the DOF’s approval of subsequent payments made pursuant to the enforceable obligation. If the confirmation of approval is granted, then the DOF’s review of such payments in future Recognized Obligation Payment Schedules is limited to confirming that they are required by the prior enforceable obligation. In 2013, the DOF issued a final and conclusive determination that the 2006 Bonds and 2011 Bonds are enforceable obligations.

The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments listed in the Recognized Obligation Payment Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation Payment Schedule. Each annual Recognized Obligation Payment Schedule may be amended once, provided that (i) the Successor Agency submits the amendment to DOF no later than October 1, (ii) the Oversight Board makes a finding that the amendment is necessary for the payment of approved enforceable obligations during the second half of the Recognized Obligation Payment Schedule period (from January 1 to June 30, inclusive), and (iii) the Successor Agency may only amend the amount requested for payment of approved enforceable obligations.

DOF must notify the Successor Agency and the County Auditor-Controller as to whether the Successor Agency’s requested amendment is approved at least 15 days before the January 2 property tax distribution.

The Recognized Obligation Payment Schedule must be submitted by the Successor Agency, after approval by the Oversight Board, to the County Administrative Officer, the County AuditorController, the DOF and the State Controller by February 1 in each year with respect to the Successor Agency’s payment obligations during the next fiscal year. If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day that the schedule is not submitted. Additionally, the Successor Agency’s administrative cost allowance will be reduced by 25 percent for any fiscal year for which the Successor Agency does not submit an Oversight Boardapproved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline. If Attachment B

11.B.b
Packet Pg. 1215 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 21 the Successor Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the Successor Agency or the DOF or any affected taxing entity will have standing to, and may request a writ of mandate to, require the Successor Agency to immediately perform this duty. The Successor Agency has submitted each prior Recognized Obligation Payment Schedule on or before the statutory deadline. Such Recognized Obligation Payment Schedules have included, among other items, amounts required to pay debt service on outstanding indebtedness as well as its administrative cost allowance. For additional information regarding procedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications thereof on the 2026 Bonds, see the caption “RISK FACTORS—Recognized Obligation Payment Schedule.” With respect to each Recognized Obligation Payment Schedule submitted by the Successor Agency, the Dissolution Act requires the DOF to make a determination of the enforceable obligations and the amounts and funding sources available to pay approved enforceable obligations no later than April 15. Within five business days of the determination by the DOF, the Successor Agency may request additional review by the DOF and an opportunity to meet and confer on disputed items, if any. The DOF will notify the Successor Agency and the County Auditor-Controller as to the outcome of its review at least 15 days before the June 1 property tax distribution date preceding the applicable Recognized Obligation Payment Schedule period. Additionally, the County AuditorController may review a submitted Recognized Obligation Payment Schedule and object to the inclusion of any items that are not demonstrated to be enforceable obligations and may object to the funding source proposed for any items, provided that the County Auditor-Controller must provide notice of any such objections to the Successor Agency, the Oversight Board and the DOF at least 60 days prior to the next property tax distribution date.

See the caption “—Last and Final Recognized Obligation Payment Schedule” below for a description of the Last and Final Recognized Obligation Payment Schedule (a “Last and Final ROPS”) authorized by the Dissolution Act to be filed pursuant to SB 107. The Successor Agency is not currently eligible to file a Last and Final ROPS because the payments under the BofA Credit Agreement vary based on a variable rate of interest and are not set forth in a payment schedule.

The Dissolution Act provides that the scheduled payments on bonds issued by a successor agency with the approval of the oversight board and DOF shall be listed in the Recognized Obligation Payment Schedule and shall not be subject to further review and approval by DOF or the State Controller. To ensure the timely payment of debt service on the 2026 Bonds, the Successor Agency covenants in the Indenture on or before each February 1 (or at such earlier time as may be required by the Dissolution Act), for so long as any Bonds are outstanding, to submit an Oversight Board-approved Recognized Obligation Payment Schedule to the DOF and to the County AuditorController that includes, from the first Tax Revenues distributed to the Successor Agency on each January 2 and June 1 Redevelopment Property Tax Trust Fund distribution date to request:
(i) property tax revenues to be distributed from the Redevelopment Property Tax Trust Fund on each January 2 in an amount sufficient to pay all debt service coming due under the BofA Credit Agreement during the then-current Bond Year prior to any payment being made with respect to the 2026 Bonds or any Parity Debt or for any other purpose (specifically, the payments due on the following January 15 and July 15),
(ii) property tax revenues to be distributed from the Redevelopment Property Tax Trust Fund on each January 2 in an amount sufficient to pay all debt service coming due on the 2026 Attachment B

11.B.b
Packet Pg. 1216 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 22 Bonds and any Parity Debt during the then-current Bond Year (specifically, the payments due on the following February 1 and August 1), and
(iii) any amount required to cure any deficiency in the Reserve Account pursuant to the Indenture or a reserve account established under any Parity Debt Instrument (including any amounts required due to a draw on any Qualified Reserve Account Credit Instrument (including the 2026 Reserve Policy) as well as all amounts due and owing to the 2026 Insurer under the Indenture or to any other Insurer).

The Successor Agency covenants in the Indenture to comply with the requirements of the Dissolution Act, including without limitation to file all required statements and hold all public hearings required under the Dissolution Act to assure compliance by the Successor Agency with its covenants under the Indenture. See Appendix B—“SUMMARY CERTAIN PROVISIONS OF THE INDENTURE.”
Last and Final Recognized Obligation Payment Schedule
SB 107 amended the Dissolution Act to permit a successor agency to submit a Last and Final ROPS for approval by the oversight board and the DOF if: (i) the successor agency’s only remaining debt is administrative costs and payments pursuant to enforceable obligations with defined payment schedules; (ii) all remaining obligations have been previously listed on a Recognized Obligation Payment Schedule and approved by the DOF; and (iii) the successor agency is not a party to outstanding or unresolved litigation. The Last and Final ROPS must list the remaining enforceable obligations of the successor agency in the following order: (A) enforceable obligations to be funded from the Redevelopment Property Tax Trust Fund: (B) enforceable obligations to be funded from bond proceeds or other legally or contractually dedicated or restricted funding sources: and (C) loans or deferrals authorized for repayment to the city that created the redevelopment agency or the successor to the former redevelopment agency’s housing functions and assets. The Last and Final ROPS must also include the total outstanding obligation and a schedule of remaining payments for each enforceable obligation described in (A) and (B) above, and the total outstanding obligation and an interest rate of 4 percent, for any loans or deferrals listed pursuant to (C) above. The Last and Final ROPS shall also establish the maximum amount of Redevelopment Property Tax Trust Funds to be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid. The approval of the DOF is required for any Last and Final ROPS to become effective.

The county auditor-controller shall also review the Last and Final ROPS and provide any objection to the inclusion of any items or amounts to the DOF.

Successor agencies may only amend an approved Last and Final ROPS twice. Approval by the oversight board and the DOF is required for any amendment to a Last and Final ROPS to become effective. The Dissolution Act provides the DOF with 100 days to approve or deny an amendment to a Last and Final ROPS. Each amended Last and Final ROPS approved by the DOF will become effective in the subsequent Redevelopment Property Tax Trust Fund distribution period. If an amended Last and Final ROPS is approved less than 15 days before the date of the property tax distribution, the Last and Final ROPS will not be effective until the subsequent Redevelopment Property Tax Trust Fund distribution period.

Any revenues, interest, and earnings of the successor agency, including proceeds from the disposition of real property, that are not authorized for use pursuant to the approved Last and Final ROPS shall be remitted to the county auditor-controller for distribution to the affected taxing entities.

Attachment B

11.B.b
Packet Pg. 1217 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 23 A successor agency shall not expend more than the amount approved for each enforceable obligation listed on the approved Last and Final ROPS. The county auditor-controller shall no longer distribute property tax to the successor agency’s Redevelopment Property Tax Trust Fund once the aggregate amount of property tax allocated to the successor agency equals the total outstanding obligation approved in the Last and Final ROPS. Commencing on the effective date of the approved Last and Final ROPS, the successor agency shall not prepare or transmit annual Recognized Obligation Payment Schedules.

After the Last and Final ROPS is approved by the DOF, the county auditor-controller will continue to allocate moneys in the successor agency’s Redevelopment Property Tax Trust Fund pursuant to Section 34183 of the Dissolution Act; however, the county auditor-controller will allocate such moneys in each fiscal period, after deducting the county auditor-controller’s administrative costs, in the following order of priority: (A) pass-through payments pursuant to Section 34183(a)(1) of the Dissolution Act, (B) scheduled debt service payments on tax allocation bonds listed and approved in the Last and Final ROPS, (C) scheduled payments on revenue bonds listed and approved in the Last and Final ROPS, but only to the extent the revenues pledged for them are insufficient to make the payments and only if the successor agency’s tax increment revenues were also pledged for the repayment of bonds, (D) scheduled payments for debts and obligations listed and approved in the Last and Final ROPS to be paid from the Redevelopment Property Tax Trust Fund, (E) payments listed and approved on the Last and Final ROPS that were authorized but unfunded in prior periods, (F) repayment of loans and deferrals to the city that created the redevelopment agency or the successor to the former redevelopment agency’s housing functions and assets that are listed and approved on the Last and Final ROPS, and (G) any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers described in (A) to (F), above, shall be distributed to taxing entities in accordance with Section 34183(a)(4) of the Dissolution Act.

If a successor agency sends a Notice of Insufficiency to the county auditor-controller stating that the total available amounts in the Redevelopment Property Tax Trust Fund will be insufficient to fund the successor agency’s current or future fiscal year obligations, and if the county auditorcontroller concurs that there are insufficient funds to pay the required obligations, the county auditorcontroller may divert subordinated pass-through payments to the successor agency pursuant to Section 34183(b) of the Dissolution Act. See the caption “—Tax Increment Financing.” The Successor Agency has not undertaken the requisite procedures to subordinate the Statutory PassThrough Payments to the payment of debt service on the 2026 Bonds. Accordingly, it will not be permitted to submit Notices of Insufficiency as described above in the event the total available amounts in the Redevelopment Property Tax Trust Fund are insufficient to fund the successor agency’s current or future fiscal year obligations.

The Successor Agency is not currently eligible to file a Last and Final ROPS because the payments under the BofA Credit Agreement vary based on a variable rate of interest and are not set forth in a payment schedule. The loan outstanding under the BofA Credit Agreement matures on June 1, 2028. Further, the Successor Agency has covenanted in the Indenture not to submit to the Oversight Board or the DOF a request for the final amendment permitted for its Last and Final ROPS without the prior written consent of the 2026 Insurer unless all amounts that could become due to the 2026 Insurer are included as a line item on the Last and Final ROPS, as amended.

Attachment B

11.B.b
Packet Pg. 1218 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 24 Statutory Pass-Through Payments
Assembly Bill 1290 (Chapter 942, Statutes of 1993) (“AB 1290”), effective January 1, 1994, eliminated the statutory authority for negotiated pass-through agreements and provided a formula for mandatory tax sharing, applicable to redevelopment plans adopted on or after January 1, 1994 or amended after January 1, 1994 to add territory or make certain other amendments. These payments, which are to begin the fiscal year following the year a redevelopment plan was adopted (if after January 1, 1994) or the fiscal year following the year that a redevelopment plan’s original plan limitations would have taken effect (in the case of pre-1994 redevelopment plans), are calculated using the increase in revenue above the amount of revenue generated by the project area in the year that the redevelopment plan was adopted or the former limit would have been reached, as applicable.

Under the Dissolution Act, in particular Section 34183, the County Auditor-Controller is obligated to remit these Statutory Pass-Through Payments to the affected taxing entities from the Successor Agency’s RPTTF on each January 2 and June 1 RPTTF distribution date.

Generally speaking, the Statutory Pass-Through Payments are calculated as follows under the Redevelopment Law:
“Tier 1.” following the adoption of the project area or the expiration of the amended time limit, as applicable, and thereafter, 25 percent of tax increment revenues (after deducting the Housing Set-Aside amount); plus,
“Tier 2.” for the eleventh year following the triggering event and thereafter, 21 percent of revenues in excess of tenth year revenue (after deducting the Housing Set-Aside amount); plus, “Tier 3.” for the thirty-first year following the triggering event and thereafter, 14 percent of revenues in excess of thirtieth year revenues (after deducting the Housing Set-Aside amount).

The payments of the Statutory Pass-Through Payments to the affected taxing entities are allocated among each affected taxing entity in proportion to the share of property taxes each affected taxing entity received in the year funds are allocated. As indicated above, amounts specified as payable to affected taxing entities are computed after deducting the Housing Set-Aside amounts even though the Successor Agency no longer deposits such amounts into the Low and Moderate Income Housing Fund under the Dissolution Act.

The Successor Agency has not undertaken the requisite procedures to subordinate the Statutory Pass-Through Payments to the payment of debt service on the 2026 Bonds and, therefore, the pledge of Tax Revenues to secure the payment of debt service on the 2026 Bonds when due is subordinate to the Statutory Pass-Through Payments.

BofA Credit Agreement
On May 1, 2008, the Former Agency entered into the BofA Credit Agreement with Bank of America, N.A. The BofA Credit Agreement initially provided a line of credit of up to $50 million (the “Line of Credit”), secured by future property tax increment revenues from the Earthquake Project Area to the extent they represented the Housing Set-Aside. The Former Agency drew on the Line of Credit in full. In accordance with the BofA Credit Agreement, on January 30, 2012, the entire $50 million draw was converted to a term loan (the “Term Loan”). The Term Loan bears interest Attachment B

11.B.b
Packet Pg. 1219 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 25 calculated by reference to the federal funds rate as described in the BofA Credit Agreement and matures on June 1, 2028. Equal payments of principal plus accrued interest are due semiannually on each January 15 and July 15. As of the date of this Official Statement, the Term Loan was outstanding in the principal amount of $7,575,757. The Successor Agency’s obligation to make payments under the BofA Credit Agreement from Tax Revenues is senior to the 2026 Bonds only to the extent such revenues represent the former Housing Set-Aside from the Earthquake Project Area.

Issuance of Additional Indebtedness
No Additional Senior Obligations. Under the Indenture, the Successor Agency has covenanted that it will not issue additional bonds or incur additional obligations that are payable from Tax Revenues on a senior basis to the 2026 Bonds or any Parity Debt issued or incurred in the future.

Upon the issuance of the 2026 Bonds and the completion of the refunding of the Refunded Bonds as described under the caption “REFUNDING PLAN” no bonds or other indebtedness with a pledge or lien on the Tax Revenues senior to the 2026 Bonds will remain outstanding except the BofA Credit Agreement (but only to the extent such revenues represent the former Housing SetAside from the Earthquake Project Area).

Parity Debt. Section 34177.5(a) of the Dissolution Act presently permits successor agencies to issue bonds or incur other indebtedness secured by property tax revenues comprised of former tax increment revenues required by the Dissolution Act to be deposited into the respective Redevelopment Property Tax Trust Fund for the applicable successor agency under limited circumstances, including to provide savings to the successor agency provided that (A) the total interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (B) the principal amount of the refunding bonds or the indebtedness will not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. If the foregoing conditions are satisfied, the initial principal amount of the refunding bonds or indebtedness may be greater than the outstanding principal amount of the bonds or other indebtedness to be refunded. The successor agency may pledge to the refunding bonds or other indebtedness the revenues pledged to the bonds or other indebtedness being refunded, having the same lien priority as the pledge of the bonds or other obligations to be refunded.

In addition to the 2026 Bonds, the Successor Agency may issue Parity Debt to refund any outstanding 2026 Bonds or Parity Debt for savings, in such principal amount as will be determined by the Successor Agency. The Successor Agency may issue and deliver any such Parity Debt subject to the following conditions precedent:
(a) No Event of Default under the Indenture or an event of default under any Parity Debt Instrument will have occurred and be continuing unless cured by the issuance of such Parity Debt; (b) The Parity Debt must be issued to provide savings to the Successor Agency in compliance with Health and Safety Code Section 34177.5(a); (c) A Supplemental Indenture or Parity Debt Instrument must be adopted which must (i) state the applicable reserve requirement, if any, and the amount, if any, from the proceeds of sale of such Parity Debt or the stated amount of Qualified Reserve Account Credit Instrument to be Attachment B

11.B.b
Packet Pg. 1220 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 26 deposited in a separate subaccount of the Reserve Account or other debt service reserve account or fund as provided in such Supplemental Indenture or Parity Debt Instrument, to be held as separate security for such series of Parity Debt; (ii) designate accounts and subaccounts within the Debt Service Fund, including within the Reserve Account if applicable, to be used in connection with such Parity Debt; and (iii) set forth such other provisions that are appropriate or necessary and are not inconsistent with the provisions of the Indenture;
(d) Such Supplemental Indenture or Parity Debt Instrument is not permitted to provide as a remedy for any event of default thereunder a declaration that all of such Parity Debt then outstanding, and the interest accrued thereon, is due and payable immediately; and (e) The Successor Agency must deliver to the Trustee a Written Certificate of the Successor Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in the Indenture have been satisfied.

Subordinate Obligations. The Successor Agency has various enforceable obligations that are, or will be, listed on the Successor Agency’s Recognized Obligation Payment Schedules and paid from moneys deposited in the Successor Agency’s Redevelopment Property Tax Trust Fund from time to time. Except as described in this Official Statement, the Successor Agency has determined that these obligations are either subordinate to the 2026 Bonds or not secured by a pledge of Tax Revenues. Nothing in the Indenture prevents the Successor Agency from issuing additional bonds or incurring other loans, advances or indebtedness payable from Tax Revenues on a subordinate basis to the 2026 Bonds.

BOND INSURANCE
[To come from 2026 Insurer]

PROPERTY TAXATION IN CALIFORNIA
Property Tax Collection Procedures
Classification. In the State, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” Secured and unsecured property is entered on separate parts of the assessment roll maintained by county assessors. The secured classification includes property on which any property tax levied by a county becomes a lien on that property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property arising pursuant to State law, regardless of the time of the creation of other liens. See the caption “RISK FACTORS—Bankruptcy and Foreclosure” for certain limitations on the priority of secured tax liens under federal law, however.

Generally, ad valorem taxes are collected by a county for the benefit of the various taxing agencies (cities, schools and special districts) that share in the ad valorem tax (each, a taxing entity) and successor agencies eligible to receive distributions from the respective Redevelopment Property Tax Trust Fund.

Attachment B

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Packet Pg. 1221 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 27 Collections. The method of collecting delinquent taxes is substantially different for secured and unsecured property. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of the property securing the taxes to the State for the amount of taxes which are delinquent. Counties have four ways of collecting unsecured personal property taxes: (i) initiating a civil action against the taxpayer; (ii) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (iii) filing a certificate of delinquency for record in the county recorder’s office to obtain a lien on certain property of the taxpayer; and (iv) seizing and selling personal property, improvements or possessory interests belonging or assessed to the assessee.

Penalty. A 10 percent penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector on or about June 30 of each fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5 percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10 percent penalty also applies to delinquent taxes with respect to property on the unsecured roll, and further, an additional penalty of

1.5 percent per month accrues with respect to such taxes beginning on varying dates related to the tax bill mailing date.

Delinquencies. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. The County has not adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (known as a “Teeter Plan”), as provided for in Section 4701 et seq. of the Revenue and Taxation Code of the State. Accordingly, the amount of tax increment revenues that are allocated to the Successor Agency depends upon the actual collections of taxes within the Project Areas. The Successor Agency receives adjustments for redemption payments on delinquent collections. In addition, the Successor Agency receives supplemental taxes and refunds, if any, are deducted from amounts available for deposit to the Redevelopment Property Tax Trust Fund. Substantial delinquencies in the payment of property taxes could impair the timely receipt by the Successor Agency of Tax Revenues.

Supplemental Assessments. California Revenue and Taxation Code Section 75.70 provides for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Prior to the enactment of this law, the assessment of such changes was permitted only as of the next tax lien date following the change, which delayed the realization of increased property taxes from the new assessments for up to 14 months. Revenue and Taxation Code Section 75.70 provides increased revenue to the Redevelopment Property Tax Trust Fund to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of the Project Areas subsequent to the January 1 lien date. To the extent that such supplemental assessments occur within the Project Areas, Tax Revenues may increase.

However, because supplemental assessments cannot be accurately projected, no provision has been made by the Fiscal Consultant to reflect the impact of supplemental assessments on Tax Revenues.

See the Fiscal Consultant Report attached to this Official Statement as Appendix A for a description of supplemental revenues historically allocated to the Successor Agency.

Attachment B

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Packet Pg. 1222 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 28 Property Tax Administrative Costs. In 1990, the State Legislature enacted Senate Bill (“SB”) 2557 (Chapter 466, Statutes of 1990) which allows counties to charge for the cost of assessing, collecting and allocating property tax revenues to local government jurisdictions in proportion to the tax-derived revenues allocated to each. SB 1559 (Chapter 697, Statutes of 1992) explicitly includes redevelopment agencies among the jurisdictions which are subject to such charges. In addition, Sections 34182 and 34183(a) of the Dissolution Act allow administrative costs of the County Auditor-Controller for the cost of administering the provisions of the Dissolution Act, as well as the foregoing SB 1559 amounts, to be deducted from Tax Revenues. Over the past five years, the County’s total administrative charge for the Earthquake Project Area, deducted from the Redevelopment Property Tax Trust Fund allocations to the Successor Agency, amounted to approximately 1.33 percent of the total gross tax revenue allocation to the Redevelopment Property Tax Trust Fund from such project area for such period. The Fiscal Consultant assumes that the County property tax administration will continue to be annually charged at this percentage factor to the gross tax revenue generated by the Earthquake Project Area in subsequent fiscal years. See the projections set forth in the Fiscal Consultant Report attached as Appendix A and under the caption “TAX REVENUES—Projected Tax Revenues” herein.

Pass-Through Agreements. Prior to 1994, under the Redevelopment Law, a redevelopment agency could enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the redevelopment agency’s determination was appropriate to alleviate any financial burden or detriment caused by the redevelopment project. Such agreements normally provide for payment or pass-through of tax increment revenue directed to the affected taxing agency, and, therefore, are commonly referred to as pass-through agreements or tax sharing agreements. The Former Agency did not enter into any passthrough agreements with respect to the Earthquake Project Area.

Statutory Pass-Through Payments. The payment of Statutory Pass-Through Payments results from: (i) redevelopment plans adopted, on or after January 1, 1994 or redevelopment plan amendments which add territory in existing project areas after January 1, 1994; and (ii) redevelopment plan amendments that eliminate, extend or increase one or more limitations within a redevelopment plan (such as the removal of the time limit on the establishment of loans, advances and indebtedness). The calculation of the amount due to affected taxing entities is described in Sections 33607.5 and 33607.7 of the Redevelopment Law. See the caption “SECURITY FOR THE 2026 BONDS—Statutory Pass-Through Payments” for a discussion of the Successor Agency’s obligation to pay Statutory Pass-Through Payments to affected taxing agencies. Also see the caption “SECURITY FOR THE 2026 BONDS—Tax Increment Financing—Tax Sharing.” Section 33676 Election. Prior to the enactment of AB 1290, redevelopment project areas adopted between January 1, 1985 and prior to January 1, 1994 were subject to payments to schools and to other affected taxing agencies that elected to receive tax revenue payments set forth under Section 33676 of the Redevelopment Law (defined above as “33676 Payments”). The annual payments represent that portion of property taxes that are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code (and referred to as the 2 percent inflation allocation). Because the Earthquake Project Area was adopted on or after January 1, 1994, no taxing entities within the Earthquake Project Area are entitled to receive or are receiving payments under Section 33676.

Recognized Obligation Payment Schedule. The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid, only those payments Attachment B

11.B.b
Packet Pg. 1223 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 29 listed in the Recognized Obligation Payment Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation Payment Schedule. Before each February 1, with respect to the following fiscal year, the Dissolution Act requires successor agencies to prepare and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County AuditorController to the Successor Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to each June 1 property tax distribution date. See the caption “SECURITY FOR THE 2026 BONDS— Recognized Obligation Payment Schedule” and “RISK FACTORS—Recognized Obligation Payment Schedule.” See also “SECURITY FOR THE 2026 BONDS—Last and Final Recognized Obligation Payment Schedule” for a description of the Last and Final ROPS authorized by the Dissolution Act pursuant to SB 107.

Unitary Property
Assembly Bill (“AB”) 2890 (Statutes of 1986, Chapter 1457) provides that, commencing with fiscal year 1988-89, assessed value derived from State-assessed unitary property (consisting mostly of operational property owned by utility companies) is to be allocated county-wide as follows: (i) each tax rate area will receive the same amount from each assessed utility received in the previous fiscal year unless the applicable county-wide values are insufficient to do so, in which case values will be allocated to each tax rate area on a pro rata basis; and (ii) if values to be allocated are greater than in the previous fiscal year, each tax rate area will receive a pro rata share of the increase from each assessed utility according to a specified formula. Additionally, the lien date on Stateassessed property was changed from March 1 to January 1.

AB 454 (Statutes of 1987, Chapter 921) further modified Chapter 1457 regarding the distribution of tax revenues derived from property assessed by the State Board of Equalization. AB 454 provides for the consolidation of all State-assessed property, except for regulated railroad property, into a single tax rate area in each county. AB 454 further provides for a new method of establishing tax rates on State-assessed property and distribution of property tax revenue derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is located. The intent of AB 2890 and AB 454 is to provide redevelopment agencies with their appropriate share of revenue generated from property assessed by the State Board of Equalization.

To administer the allocation of unitary tax revenues to redevelopment agencies, the County Auditor- Controller no longer includes the taxable value of utilities as part of the reported taxable values of a project area; therefore, the base year value of the Earthquake Project Area has been reduced by the amount of utility value that existed originally in the base year. In fiscal year 2025-26, the County Auditor-Controller is expected to allocate approximately $1.2 million of unitary tax revenue to the Earthquake Project Area. The projections of Tax Revenues in the Fiscal Consultants Report and this Official Statement assume that unitary revenues for fiscal year 2026-27 and each fiscal year thereafter will remain constant at the fiscal year 2025-26 amount. See the caption “TAX REVENUES—Projected Tax Revenues.”
Attachment B

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Packet Pg. 1224 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 30 Article XIIIA of the State Constitution
On June 6, 1978, State voters approved an amendment (commonly known as Proposition 13 or the Jarvis-Gann Initiative) which added Article XIIIA to the State Constitution. Article XIIIA limits the amount of ad valorem taxes on real property to 1 percent of “full cash value” of such property, as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the State fiscal year 1975-76 tax bill under ‘full cash value,’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” Furthermore, the “full cash value” of all real property may be increased to reflect the rate of inflation, as shown by the consumer price index, not to exceed 2 percent per year, or may be reduced. Each year the State Board of Equalization announces the applicable adjustment factor. Since the adoption of Proposition 13, inflation has, in most years, exceeded 2 percent and the announced factor has reflected the 2 percent cap. The changes in the California Consumer Price Index from October of one year and October of the next year are used to determine the adjustment factor for the January assessment date.

The table below reflects the inflation adjustment factors for Fiscal Year 2026-27, the current Fiscal Year, and the 10 prior fiscal years.

Historical Inflation Adjustment Factors
Fiscal Year Inflation Adj. Factor
2016-17 1.525%
2017-18 2.000
2018-19 2.000
2019-20 2.000
2020-21 2.000
2021-22 1.036
2022-23 2.000
2023-24 2.000
2024-25 2.000
2025-26 2.000
2026-27 2.000
Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by substantial damage, destruction or other factors, and to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster and in other special circumstances.

Article XIIIA: (i) exempts from the 1 percent tax limitation taxes to pay debt service on:
(a) indebtedness approved by the voters prior to July 1, 1978; or (b) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition; (ii) requires a vote of two-thirds of the qualified electorate to impose special taxes, or certain additional ad valorem taxes; and (iii) requires the approval of two-thirds of all members of the State Legislature to change any State tax laws resulting in increased tax revenues.

The validity of Article XIIIA has been upheld by both the State Supreme Court and the United States Supreme Court.

Attachment B

11.B.b
Packet Pg. 1225 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 31 In the general election held on November 4, 1986, voters of the State approved two measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to provide that the terms “purchase” and “change of ownership,” for the purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of: (1) real property between spouses; and (2) the principal residence and the first $1,000,000 of other property between parents and children. This amendment to Article XIIIA may reduce the rate of growth of local property tax revenues.

Proposition 60 amended Article XIIIA to permit the State Legislature to allow persons over the age of 55 who sell their residence and buy or build another of equal or lesser value within two years in the same county to transfer the old residence assessed value to the new residence. As a result of the State Legislature’s action, the growth of property tax revenues may decline.

Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement is shown at 100 percent of assessed value and all general tax rates reflect the $1 per $100 of taxable value (except as noted).

Tax rates for voter-approved bonded indebtedness and pension liabilities are also applied to 100 percent of assessed value. No such tax rate overrides for bonded indebtedness are pledged to the 2026 Bonds.

Appropriations Limitation – Article XIIIB
On November 6, 1979, State voters approved Proposition 4 (also known as the Gann Initiative), which added Article XIIIB to the State Constitution. Article XIIIB limits the annual appropriations of the State and its political subdivisions to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The “base year” for establishing such appropriations limit is State fiscal year 1978-79, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies.

Section 33678 of the Redevelopment Law provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness is not deemed to be the receipt by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning of Article XIIIB, nor will such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to the limitation of, any other public body within the meaning or for the purpose of the Constitution and laws of the State, including Section 33678 of the Redevelopment Law. The constitutionality of Section 33678 has been upheld in two State appellate court decisions. On the basis of these decisions, the Successor Agency does not believe that it is subject to Article XIIIB and has not adopted an appropriations limit.

Articles XIIIC and XIIID of the State Constitution
At the election held on November 5, 1996, Proposition 218 was passed by the voters of California. The initiative added Articles XIIIC and XIIID to the State Constitution. Provisions in the two articles affect the ability of local government to raise revenues. The 2026 Bonds are secured by sources of revenues that are not subject to limitation by Proposition 218. See the caption “— Propositions 218 and 26.”
Attachment B

11.B.b
Packet Pg. 1226 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 32 Proposition 87
On November 8, 1988, the voters of the State approved Proposition 87, which amended Article XVI, Section 16 of the State Constitution to provide that property tax revenue attributable to the imposition of taxes on property within a redevelopment project area for the purpose of paying debt service on certain bonded indebtedness issued by a taxing entity (not the Former Agency or the Successor Agency) and approved by the voters of the taxing entity after January 1, 1989 will be allocated solely to the payment of such indebtedness, and not to redevelopment agencies. SB 107, which became effective on September 22, 2015, amended Section 34183(a)(1) of the Dissolution Act to provide that such debt service override revenues approved by the voters for the purpose of supporting pension programs or capital projects or programs related to the State Water Project that are not pledged to or not needed for debt service on successor agency debt will be allocated and paid to the entity that levies the override. No such overrides are pledged as security for the 2026 Bonds.

See “SECURITY FOR THE 2026 BONDS—General.”
Redevelopment Plan Limits
In 1993, the State legislature passed AB 1290, Chapter 942, Statutes 1993, which, among other things, required redevelopment agencies to adopt time limits in each redevelopment plan specifying: (i) the last date to incur debt for a redevelopment project; (ii) the last date to undertake redevelopment activity within a project area; (iii) the last date to collect tax increment revenue from a project area to repay debt; and (iv) a limitation on the number of dollars of taxes that could be allocated to the former redevelopment agency from the applicable project area.

SB 107, which became effective September 22, 2015, amended the Dissolution Act to provide that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Successor Agency set forth in the Redevelopment Plan are not effective for purposes of paying the Successor Agency’s enforceable obligations such as the 2026 Bonds. Accordingly, the projections set forth in this Official Statement and in the Fiscal Consultant Report attached to this Official Statement as Appendix A do not take into account the time and financial limitations set forth in the Redevelopment Plan for the Earthquake Project Area. See the captions “THE EARTHQUAKE PROJECT AREA.”
Appeals of Assessed Values
Pursuant to State law, a property owner may apply for a reduction of the property tax assessment for such owner’s property by filing a written application, in a form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board.

In the County, a property owner desiring to reduce the assessed value of such owner’s property in any one year must submit an application to the County Assessment Appeals Board (the “Appeals Board”). Applications for any tax year must be submitted by November 30 of such tax year. Following a review of each application by the staff of the County Assessor’s Office, the staff makes a recommendation to the Appeals Board on each application which has not been rejected for incompleteness or untimeliness or withdrawn. The Appeals Board holds a hearing and either reduces or confirms the assessment. The Appeals Board generally is required to determine the outcome of appeals within two years of each appeal’s filing date. Any reduction in the assessment ultimately Attachment B

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Packet Pg. 1227 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 33 granted applies only to the year for which application is made and during which the written application is filed. The assessed value increases to its pre-reduction level for fiscal years following the year for which the reduction application is filed. However, if the taxpayer establishes through proof of comparable values that the property continues to be overvalued (known as “ongoing hardship”), the Assessor has the power to grant a reduction not only for the year for which application was originally made, but also for the then current year as well. Appeals for reduction in the “base year” value of an assessment, which generally must be made within three years of the date of change in ownership or completion of new construction that determined the base year, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. Moreover, in the case of any reduction in any one year of assessed value granted for “ongoing hardship” in the then current year, and also in any cases involving stipulated appeals for prior years relating to base year and personal property assessments, the property tax revenues from which Tax Revenues are derived attributable to such properties will be reduced in the then current year. In practice, such a reduced assessment may remain in effect beyond the year in which it is granted. See the caption “THE EARTHQUAKE PROJECT AREA—Assessment Appeals” and Appendix A for information regarding the appeals pending with respect to the top 10 property taxpayers within the Earthquake Project Area.

Proposition 8
Proposition 8, approved in 1978 (California Revenue and Taxation Code Section 51(b)), provides for the assessment of real property at the lesser of its originally determined (base year) full cash value compounded annually by the inflation factor, or its full cash value as of the lien date, taking into account reductions in value due to damage, destruction, obsolescence or other factors causing a decline in market value. Reductions pursuant to Proposition 8 may be initiated by the County Assessor or requested by the property owner, and such reductions apply only to a single tax year.

After a roll reduction is granted pursuant to Proposition 8, the property is reviewed on an annual basis to determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases must be in accordance with the full cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.

The County Assessor has the ability to use Proposition 8 criteria to apply blanket reductions in valuation to classes of property affected by particular negative economic conditions. The Successor Agency is aware that the County Assessor made such reductions to assessed values of residential property in the Earthquake Project Area and the City generally during the recession that started in 2008. The Fiscal Consultant Report does not assume any future reductions in assessed valuations as a result of Proposition 8, but there can be no assurance that additional Proposition 8 reductions will not be made in the future. See the caption “THE EARTHQUAKE PROJECT AREA.”
Propositions 218 and 26
On November 5, 1996, State voters approved Proposition 218—Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Attachment B

11.B.b
Packet Pg. 1228 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 34 Amendment. Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges. On November 2, 2010, California voters approved Proposition 26, the “Supermajority Vote to Pass New Taxes and Fees Act.” Proposition 26 amended Article XIIIC of the State Constitution by adding an expansive definition for the term “tax,” which previously was not defined under the State Constitution. Tax Revenues securing the 2026 Bonds are derived from property taxes which are outside the scope of taxes, assessments and property-related fees and charges which are limited by Proposition 218 and outside of the scope of taxes which are limited by Proposition 26.

Future Initiatives
Articles XIIIA, XIIIB, XIIIC and XIIID to the State Constitution and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to the State’s initiative process. From time to time other initiative measures could be adopted, further affecting Agency revenues or the Successor Agency’s ability to expend revenues.

THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
The Former Agency was established by the City Council of the City on August 13, 1957, pursuant to the Redevelopment Law. On June 29, 2011, AB X1 26 was enacted as Chapter 5, Statutes of 2011, together with a companion bill, AB X1 27. A lawsuit entitled California Redevelopment Association, et al. v. Matosantos, et al., was brought in the State Supreme Court challenging the constitutionality of AB X1 26 and AB X1 27. In a published decision (53 Cal. 4th 231 (Dec. 29, 2011)), the State Supreme Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the State, including the Former Agency, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies.

Pursuant to Section 34173 of the Dissolution Act, the City Council of the City serves as the successor agency to the Former Agency. Subdivision (g) of Section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities shall not merge and that the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City.

The Successor Agency is governed by the seven-member legislative body (the “Board”) which consists of the City Council of the City. The Mayor acts as the Chair of the Board, the City Clerk as its Secretary, the City Manager serves as the chief administrative officer of the Successor, and the Director of Finance of the City as the chief financial officer of the Successor Agency.

All powers of the Successor Agency are vested in the Board. Pursuant to the Dissolution Act, the Successor Agency is a separate public body from the City and successor to the organizational status of the Former Agency, but without any legal authority to participate in redevelopment activities except to complete any work related to an approved enforceable obligation.

The Successor Agency is tasked with expeditiously winding down the affairs of the Former Agency pursuant to the procedures and provisions of the Dissolution Act. Under the Dissolution Act, many Attachment B

11.B.b
Packet Pg. 1229 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 35 Agency actions are subject to approval by the Oversight Board, as well as review by the DOF. The State has strict laws regarding public meetings (known as the Ralph M. Brown Act) which generally make all Board and Oversight Board meetings open to the public in a similar manner as City Council meetings.

THE EARTHQUAKE PROJECT AREA
General
The 2026 Bonds are principally payable from Tax Revenues. Tax Revenues generally consist of tax increment revenues deposited, or eligible for deposit, into the Successor Agency’s Redevelopment Property Tax Trust Fund, after payment of certain County of Los Angeles administrative costs, Statutory Pass-Through Payments, and, with respect to the former Housing SetAside from the Earthquake Project Area, payments under the BofA Credit Agreement, as described herein.

In Fiscal Year 2024-25, the Project Areas collectively generated tax increment revenues, after payments of certain County of Los Angeles administrative costs and payments to certain taxing agencies, totaling approximately $138 million. Of that amount, approximately $128 million (93 percent) of Tax Revenues were generated within the Earthquake Project Area. Given the relative magnitude of Tax Revenues generated within the Earthquake Project Area, the projections in this Official Statement conservatively assume that the Downtown Project Area, the Ocean Park Project Area 1A and the Ocean Park Project Area 1B will not generate tax increment revenues in the future.

Accordingly, the discussion of historical and projected Tax Revenues in this Official Statement and in the Fiscal Consultant Report is limited to the Earthquake Project Area.

On January 17, 1994, the Northridge Earthquake occurred with serious consequences in the City. Selection of the Earthquake Project Area boundaries was guided by inclusion of the most severely damaged properties in need of public assistance for repair and recovery; approximately 90 percent of all red-tagged and approximately 80 percent of all yellow-tagged buildings in the City at the time of formation were included in the Earthquake Project Area. The Earthquake Project Area encompasses approximately 2.89 square miles or 35 percent of the City’s total land area of 8.3 square miles. The Earthquake Project Area is generally bounded by Pico Boulevard on the south, 26th Street on the east, Montana Avenue on the north and Pacific Coast Highway/Ocean Front Walk to the west.

The Redevelopment Plan; No Financial Limits
Under the Redevelopment Law, a city or county that activated a redevelopment agency was required to adopt, by ordinance, a redevelopment plan for each redevelopment project to be undertaken by the redevelopment agency. A redevelopment agency could only undertake those activities within a redevelopment project specifically authorized in the adopted redevelopment plan.

A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law, rather than a “plan” in the customary sense of the word.

In general, each redevelopment plan originally included specified time and financial limitations applicable to each project area. SB 107, which became effective September 22, 2015, amended the Dissolution Act to provide that the time limits for receiving property tax revenues and the limitation on the amount of property tax revenues that may be received by the Former Agency and the Successor Agency set forth in the applicable redevelopment plan are not effective for Attachment B

11.B.b
Packet Pg. 1230 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 36 purposes of paying the Successor Agency’s enforceable obligations such as the 2026 Bonds.

Accordingly, the projections set forth in this Official Statement and in the Fiscal Consultant Report attached to this Official Statement as Appendix A were prepared without regard to the time and financial limitations set forth in the Redevelopment Plan for the Earthquake Project Area.

As previously described, on January 17, 1994, the Northridge Earthquake occurred with serious consequences in the City. The President declared the earthquake to be a major disaster under federal law. On June 21, 1994, pursuant to the Redevelopment Law, the Disaster Project Law, the California Constitution, and all applicable local codes and ordinances, the City adopted the Redevelopment Plan for the Project by Ordinance No. 1747 and established the Earthquake Project Area. Redevelopment of the Earthquake Project Area pursuant to the Redevelopment Plan to finance:
(1) planning, design and/or redevelopment of areas which in need of maintenance, repair, restoration, demolition or replacement as a result of the Northridge Earthquake; (2) protecting and promoting sound development and redevelopment of earthquake-stricken areas and injurious conditions through the employment of appropriate means; (3) installation of new or repairing or replacing existing public improvements, facilities and utilities in areas which are currently inadequately served with regard to such improvements, facilities and utilities; and (4) other means as determined appropriate by the Former Agency.

Land Use
The following table summarizes the current land use in the Earthquake Project Area by the number of parcels and by assessed value for fiscal year 2025-26. The assessed values shown have been reduced to reflect homeowner exemptions.

Table 1
Earthquake Project Area
Land Use by Net Taxable Assessed Value
Fiscal Year 2025-26
Land Use
Category
# of
Parcels
Net Taxable
Assessed Values
% of
Total
Residential 6,476 $ 9,469,565,651 41.77%
Commercial 1,014 10,351,010,797 45.66
Industrial 161 660,007,864 2.91
Vacant (1) 104 217,707,709 0.96
Miscellaneous 6 15,700,640 0.07
Recreational 13 67,584,739 0.30
Govt. Owned 2 50,328,165 0.22
Institutional 101 277,251,482 1.22
Exempt 357 -- 0.00
Subtotals: 8,234 $ 21,109,157,047 93.11%
Cross Reference (2) 753,621,623 3.32
Unsecured 808,270,899 3.57
Subtotals: $1,561,892,522 6.89%
Totals: 8,234 $22,671,049,569 100.00%
(1) Vacant parcels are not owned by governmental entities and total 18.81 acres according to Assessor’s maps and other County records.
(2) Represent possessory interest values assigned by the County Assessor in recognition of long-term leaseholds of property.

Source: Los Angeles County Assessor; HdL Coren & Cone.

Attachment B

11.B.b
Packet Pg. 1231 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 37 As shown in the previous table, land within the Earthquake Project Area is predominantly used for residential (41.77 percent) and commercial (45.66 percent) purposes. See the Fiscal Consultant Report attached hereto as Appendix A for information regarding the categories of land uses.

Largest Property Taxpayers
The following table lists the ten largest payers of property taxes in the Earthquake Project Area for fiscal year 2025-26. See “RISK FACTORS – Concentration of Ownership” for a discussion regarding the risks associated with the concentration of ownership among the ten largest payers of property taxes in the Earthquake Project Area.

Table 2
Earthquake Project Area
Top Ten Property Taxpayers
Fiscal Year 2025-26
Property Owner
Total
Assessed
Value
% of Total
Assessed
Value
% of Total
Incremental
Value Primary Land Use
Douglas Emmett Inc. (1) (2) $1,447,285,053 6.38% 7.69% Commercial Office Buildings California Colorado Center LLC (1) 607,322,519 2.68 3.23 Commercial Office Buildings Water Garden Company LLC (1) 589,318,389 2.60 3.13 Commercial Office Buildings New Santa Monica Beach Hotel LLC (1) (2) 373,310,063 1.65 1.98 Regent Santa Monica Beach Hotel Verbena WRC LP (2) 276,555,444 1.22 1.47 Multi-Family Residential/Commercial Prudential Global Investment Management (2) 227,232,817 1.00 1.21 Multi-Family Residential/Commercial Santa Monica Proper JV LLC (1) (2) 208,318,314 0.92 1.11 Multi-Family Residential/Hotel Hart Arboretum LLC (2) 206,572,218 0.91 1.10 Multi-Family Residential Crown Farm Partners LLC (2) 172,697,446 0.76 0.92 Commercial Office Buildings Santa Monica Hotel Owner LLC (1) 169,387,277 0.75 0.90 Hilton Santa Monica Hotel & Suites Top Taxpayer Total Values: $4,277,999,540
Project Area Assessed Value: $22,671,049,569 18.87%
Project Area Incremental Value: $18,830,844,692 22.72%
(1) The respective total assessed values shown for these property owners include unsecured assessed values. See the Fiscal Consultant Report attached to this Official Statement as Appendix A for a breakdown of total assessed value by secured and unsecured values.
(2) Property has assessment appeals pending on secured and unsecured assessments. See “—Assessment Appeals” below.

Source: Los Angeles County Assessor; HdL Coren & Cone.

Douglas Emmett Inc. Douglas Emmett Inc. (“Douglas Emett”) is a publicly traded real estate investment company that owns and operates Class A office buildings and luxury apartment communities in coastal submarkets of Los Angeles, including Santa Monica, and in Honolulu.

Within the Earthquake Project Area, Douglas Emmet owns several office buildings across 15 parcels.

The buildings are concentrated in downtown Santa Monica near Third Street Promenade, Santa Monica Place, Main Street and Montana Avenue. Douglas Emmett also owns the apartment Attachment B

11.B.b
Packet Pg. 1232 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 38 communities branded as 1221 Ocean Avenue and Pacific Plaza within the Earthquake Project Area, both of which appear on the unsecured roll.

California Colorado Center LLC. California Colorado Center LLC, an affiliate of BXP, Inc. (“BXP”), formerly Boston Properties Inc., owns two parcels within the Earthquake Project Area. The parcels have been developed as the Colorado Center. Colorado Center is a six‑building,

1.2‑million‑square‑foot office campus in Santa Monica’s media and entertainment district known as “Silicon Beach.” The campus spans a full 15‑acre city block and serves technology, media, and other office tenants. Colorado Center sits steps from the Metro E Line’s Bergamot Station, providing rail access to downtown Los Angeles. According to BXP, the buildings were acquired in 2016 and have an approximate age between 35 and 42 years. BXP reports that in the previous three years, two significant or large office tenants vacated their space at Colorado Center – HBO and Bird Global/Bird Rides Inc. (a micromobility company that operates shared electric scooters and e‑bikes for short‑distance urban transportation). However, BXP reports that Colorado Center has a current occupancy level of approximately 90 percent.

Water Garden Company LLC. Water Garden Company LLC (“Water Garden Company”), a real estate investment company advised and controlled by J.P. Morgan Asset Management, owns four parcels within the Earthquake Project Area comprising The Water Garden. The Water Garden is a 17‑acre, Class A office campus in Santa Monica’s “Silicon Beach” district, spanning multiple glass office towers and low‑rise buildings around lakes, fountains, and landscaped gardens. The complex includes approximately 1.27 million square feet of office space across eight buildings, with three levels of subterranean parking and extensive outdoor plazas and courtyards for tenants. J.P. Morgan Asset Management placed The Water Garden office campus up for sale in November 2022, reportedly seeking approximately $1.4 billion. To the Successor Agency’s knowledge, J.P. Morgan Asset Management continues to maintain its ownership interest in The Water Garden.

New Santa Monica Beach Hotel LLC. New Santa Monica Beach Hotel LLC (“New Santa Monica Beach Hotel”) is the owner of Regent Santa Monica Beach. The Regent Santa Monica Beach is a luxury oceanfront resort that originally opened in late 2023 following a $4 million renovation that refreshed its guestrooms and corridors, and enhanced accessibility features. The property was previously operated as the Loews Santa Monica Beach Hotel, which closed in early 2023 after the previous owner chose not to renew its lease. The Regent Santa Monica Beach offers 167 high‑end guestrooms and suites, along with resort amenities, and is located on the Santa Monica beachfront near the Santa Monica Pier along Ocean Avenue.

Verbena WRC LP. Verbena WRC LP (“Verbena”), a real estate investment partnership, owns 1420 5th Street in downtown Santa Monica. The property is a mixed‑use, primarily multifamily apartment building with ground‑floor commercial space. It is in the Downtown/Third Street Promenade neighborhood, a short walk from the beach and the Expo light‑rail terminus. Constructed in 2012, the building is a roughly 62,000‑square‑foot mid‑rise complex with approximately 50 residential units.

Prudential Global Investment Management. Prudential Global Investment Management, now known as PGIM, Inc. (“PGIM”), is the asset‑management arm of Prudential Financial, Inc., a publicly traded real estate company. PGIM owns 11 parcels within the Earthquake Project Area consisting of mixed‑use commercial properties, including a residential community branded The Charlie Santa Monica. The Charlie Santa Monica is in the Mid‑City neighborhood of Santa Monica Attachment B

11.B.b
Packet Pg. 1233 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 39 and is marketed as a luxury apartment community. It consists of two low‑rise, Class A apartment buildings, along with ground‑floor retail space.

Santa Monica Proper JV LLC. Santa Monica Proper JV LLC (“Santa Monica Proper JV”), is the joint‑venture ownership entity for the Santa Monica Proper Hotel, a luxury lifestyle hotel developed by The Kor Group with Goldman Sachs as the lead capital partner. The hotel occupies a full‑block site in the City’s commercial corridor. Opened in 2019, it offers 267 guest rooms and suites divided between a restored 1920s landmark building and a contemporary new tower.

Amenities include a rooftop pool deck with a restaurant and bar, a lobby lounge, several additional food‑and‑beverage venues, roughly 8,000 square feet of meeting and event space, and nearly 7,000 square feet of ground‑floor retail.

Hart Arboretum LLC. Hart Arboretum LLC is the owner of The Plaza at the Arboretum. The Plaza at the Arboretum is a luxury rental community and convenience retail center. The property consists of five, seven-story buildings, with two central courtyards, with 350 apartment units and approximately 9,500 square feet of retail space.

Crown Farm Partners LLC. Crown Farm Partners LLC (“Crown Farm Partners”) is an affiliate of Northwestern Mutual’s real estate investment structure and functions as a holding vehicle for income‑producing property. Within the Earthquake Project Area, Crown Farm Partners owns a creative‑office campus branded as Colorado Campus. The property consists of multiple low‑rise industrial buildings that have been converted into roughly 73,000–92,000 square feet of office space on a two‑acre site in the City’s Colorado Avenue tech and media corridor.

Santa Monica Hotel Owner LLC. Santa Monica Hotel Owner LLC is the owner of the Hilton Santa Monica Hotel & Suites. The hotel offers 286 guest rooms and suites in an eight‑story building, with many rooms configured as larger suites aimed at families, business travelers, and visitors to the nearby “Silicon Beach” tech hub. Originally built in 1990 and long operated as the DoubleTree Suites by Hilton Santa Monica, the property underwent a two‑year renovation and was relaunched in 2021 as the Hilton Santa Monica Hotel & Suites, with redesigned interiors and upgraded amenities.

Unsecured Assessed Value. Some of the assessed value of property owned by the top ten property taxpayers in the Earthquake Project Area is unsecured value. By its nature, unsecured property is less stable than secured property because it consists of assets that are not permanently affixed to real estate. Accordingly, the assessed values of unsecured property are more likely to fluctuate from year to year due to factors such as depreciation of equipment, relocation or removal of assets, and changes in ownership of these movable items. These inherent characteristics make unsecured property less stable as a revenue source compared to secured property. The Fiscal Consultant notes that unsecured assessed value of property owned by the top ten property taxpayers in the Earthquake Project Area have remained relatively consistent from year to year in the previous [10] years.

See the Fiscal Consultant Report attached hereto as Appendix A for additional information regarding the ten largest property taxpayers.

Attachment B

11.B.b
Packet Pg. 1234 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 40 Historical Assessed Values
The following table summarizes the historical assessed values and incremental assessed values of the Earthquake Project Area for the current fiscal year and the previous nine fiscal years.

Table 3
Earthquake Project Area
Historical Assessed Values
Fiscal
Year Secured (1) Unsecured
Total
Assessed
Values (1)
%
Change
Incremental
Assessed
Value (1)
%
Change
2016-17 $13,557,938,474 $485,966,354 $14,043,904,828 -- $10,226,866,951 -- 2017-18 14,240,201,293 486,420,839 14,726,622,132 4.86% 10,912,448,488 6.70% 2018-19 15,326,485,616 535,282,153 15,861,767,769 7.71 12,032,149,988 10.26 2019-20 16,682,592,901 611,624,420 17,294,217,321 9.03 13,455,325,030 11.83 2020-21 17,580,842,320 683,561,849 18,264,404,169 5.61 14,425,804,428 7.21 2021-22 18,161,857,953 680,646,088 18,842,504,041 3.17 15,003,904,300 4.01 2022-23 19,096,239,712 699,398,774 19,795,638,486 5.06 15,948,462,468 6.30 2023-24 20,177,327,691 752,081,586 20,929,409,277 5.73 17,083,258,808 7.12 2024-25 20,909,350,287 789,914,660 21,699,264,947 3.68 17,858,643,973 4.54 2025-26 21,862,778,670 808,270,899 22,671,049,569 4.48 18,830,844,692 5.44 (1) Include state assessed non-unitary utility property.

Source: Los Angeles County Assessor; HdL Coren & Cone.

Levy and Collections
As previously indicated, the County has not adopted a Teeter Plan. As a result, property tax payments are adjusted for delinquencies, redemptions, penalties or interest, and property tax revenues from the Earthquake Project Area reflect actual collections. The following table shows the property tax collection rates for the Earthquake Project Area for fiscal years 2020-21 through 2024-25. [The collections data for fiscal year 2025-26 is not yet available.] Table 4
Earthquake Project Area
Historical Collection Rates
Fiscal
Year
Original
Tax Levy
Current Year
Apportioned
Current Year
Supplemental
Revenue
Prior Year
Collections
Total
Apportioned
Current
Year
Collection %
Total
Collection %
2020-21 $151,109,962 $148,643,756 $3,468,192 $(1,383,395) $150,728,553 98.37% 99.75% 2021-22 151,218,434 149,259,985 4,011,256 (2,281,306) 150,989,935 98.70 99.85 2022-23 162,392,828 158,868,492 5,859,640 (2,820,308) 161,907,824 97.83 99.70 2023-24 178,959,107 175,303,396 5,772,515 (2,730,831) 178,345,081 97.96 99.66 2024-25 188,498,464 182,555,691 2,557,195 (3,932,990) 181,179,896 96.85 96.12 Source: Los Angeles County Assessor; HdL Coren & Cone.

Attachment B

11.B.b
Packet Pg. 1235 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 41 Collection rates are a comparison of current year revenues to the adjusted tax roll assessed values at the end of each fiscal year. Prior year collections included supplemental revenues, escaped assessment revenues from prior years and penalties. According to the Fiscal Consultant, the collection rates for the Earthquake Project Area were comparable to the collection rates for other taxing entities within the County for each year shown. Collection rates have not been factored into the projections of Tax Revenues in this Official Statement or in the Fiscal Consultant Report.

Assessment Appeals
Property taxable values determined by the County Assessor may be subject to an appeal by the property owner. There are two basic types of assessment appeals provided for under California law. The first type of appeal, commonly referred to as a base year assessment appeal, involves a dispute on the valuation assigned by the Assessor immediately subsequent to a change in ownership or completion of new construction. If the base year value assigned by the Assessor is reduced, the valuation of the property cannot increase in subsequent years more than 2 percent annually unless and until another change in ownership and/or additional new construction activity occurs. The second type of appeal, commonly referred to as a Proposition 8 appeal, can result if factors occur causing a decline in the market value of the property to a level below the property’s then current taxable value.

Assessment appeals are annually filed with the County Assessment Appeals Board for a hearing and resolution. The resolution of an appeal may result in a reduction to the Assessor’s original taxable value and a tax refund to the property owner. A property owner can file for a regular assessment appeal with the County between July 2 and November 30. Revenue and Taxation Code Section 1604 allows up to two years for an assessment appeal to be decided. Six of the top ten taxpayers within the Earthquake Project Area currently have pending assessment appeals. Additional appeals to assessed values in the Earthquake Project Area may be filed from time to time in the future.

The Successor Agency cannot predict the extent of these appeals or their likelihood of success. However, for purposes of the projections of Tax Revenues shown in this Official Statement and the Fiscal Consultant Report attached hereto as Appendix A, the Fiscal Consultant reviewed appeals data from the County for fiscal years 2020-21 through 2025-26 as of December 24, 2025 to determine the impact pending appeals may have on Tax Revenues in the future. The Fiscal Consultant reports that for such period, as of December 24, 2025, there were 493 appeals pending with respect to assessed values in the Earthquake Project Area seeking a total reduction in assessed value of approximately $7 billion. According to the Fiscal Consultant Report and based on information provided by the County, the Fiscal Consultant estimates that, assuming a 15.04 percent reduction in assessed value (based on the average of actual reductions of assessed value for fiscal years 2020-21 through 2025-26 of 15.04 percent), the assessed values of the Earthquake Project Area would decrease by approximately $857 million resulting in a reduction in Tax Revenues of approximately $8.5 million. The projections of Tax Revenues from the Earthquake Project Area prepared by the Fiscal Consultant and set forth in this Official Statement take into account reductions in assessed values related to pending appeals based on such estimate.

With respect to pending appeals among the ten largest property taxpayers, the Fiscal Consultant reports that the maximum aggregate loss in assessed value is approximately $3.4 billion (or 15.12 percent of the Earthquake Project Area incremental assessed value for fiscal year 2025-26).

See the Fiscal Consultant Report attached to this Official Statement as Appendix A for more Attachment B

11.B.b
Packet Pg. 1236 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 42 information with respect to assessment appeals within the Earthquake Project Area, including pending appeals of six of the ten largest property taxpayers.

Table 5
Earthquake Project Area
Historical Assessment Appeals Summary (1)
Total
No. of
Appeals
No. of
Resolved
Appeals
No. of
Successful
Appeals
Average
Reduction
No. of
Pending
Appeals
Value Under
Appeal from
Pending
Appeals
Estimated No.
of Appeals
Allowed
Estimated
Reduction on
Pending
Appeals
Allowed
811 318 259 15.04% 493 $6,993,518,114 402 $856,481,678 (2) (1) As of December 24, 2025.
(2) Estimated loss on pending appeals is included in the projections of Tax Revenues in the Fiscal Consultants Report and this Official Statement as a reduction in assessed values in fiscal year 2026-27. See the Fiscal Consultant Report and “PROJECTED TAX REVENUES AND DEBT SERVICE COVERAGE.”
Source: Los Angeles County Assessor as of December 24, 2025; HdL Coren & Cone.

Resolution of appeals is determined by factors unique to the individual assessment, such as vacancy and rental rates, circumstances of hardship, and comparable sales. An appeal may be withdrawn by the applicant, the County Assessment Appeals Board may deny or modify the appeal at hearing or by stipulation, or the final value may be adjusted to an amount other than the stated opinion of value.

The projections of Tax Revenues included in the Fiscal Consultant Report and this Official Statement assume that no Proposition 8 reductions or restorations will occur in fiscal year 2025-26 or any fiscal year thereafter.

Office Vacancy Rates
The Successor Agency’s ability to make payments on the 2026 Bonds will depend on various factors including the economic strength of the Earthquake Project Area. The Earthquake Project Area is subject to risks generally associated with urban real estate markets, including elevated office vacancies that can depress rental income, reduce market values, and weaken the tax base. High and sustained vacancy levels in income-producing office properties often provide a basis for property owners to seek reductions in assessed value through assessment appeals, particularly where actual income and occupancy no longer support existing tax assessments. Successful appeals can lead to lower assessed values and, consequently, lower property payments, which in turn would reduce incremental taxable value within the Earthquake Project Area and decrease the Tax Revenues allocated to the Redevelopment Property Tax Trust Fund to pay debt service on the 2026 Bonds.

Such market-driven changes in occupancy, valuation, and assessment appeal activity are beyond the Successor Agency’s control.

As previously described, based on the assessed value for fiscal year 2025-26, the land within the Earthquake Project Area is predominantly used for residential (41.77 percent) and commercial (45.66 percent) purposes. In addition, the properties owned by the three largest property taxpayers consist of office buildings that collectively account for approximately 12 percent and 14 percent of the assessed value and the incremental assessed value, respectively, within the Earthquake Project Area.

Attachment B

11.B.b
Packet Pg. 1237 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 43 The City’s office market has shifted from a low‑vacancy, landlord‑favored environment before 2020 to a high‑vacancy, tenant‑favored one in 2025, with downtown Santa Monica particularly affected by remote work and corporate relocations. In 2019, Santa Monica’s office vacancy rate was estimated at approximately 13 percent, according to a Los Angeles Business Journal submarket summary, reflecting a tight pre‑pandemic market with strong demand from tech and media tenants. According to CBRE’s quarterly snapshot for the fourth quarter of 2025, the office vacancy rate within the City was approximately 26 percent (for Class A and Class B office space combined) and overall availability was near 36 percent. CBRE further reports that the West Los Angeles submarket (which includes Santa Monica, Century City, Beverly Hills, Westwood, etc.) posted a direct Class A vacancy rate of about 20 percent for the quarter, with overall availability near 31 percent (CBRE does not publish office space vacancy rates for the City broken-out by class). For comparison, CBRE’s Greater Los Angeles snapshot shows metro‑wide vacancy at 25.1 percent for the fourth quarter of 2025.

The projections of Tax Revenues set forth in the Fiscal Consultant Report attached as Appendix A and this Official Statement do not take into reductions in value resulting directly or indirectly from elevated office vacancy rates beyond the estimates described under caption “—Assessment Appeals” above. See “RISK FACTORS—Reduction in Taxable Value” and “— Risks to Real Estate Market.”
Transfers of Ownership
Changes in assessed valuations due to transfers of ownership occurring after the lien date for fiscal year 2025-26 (January 1, 2025) will affect taxable values for fiscal year 2026-27. After January 1, 2025, there have been 60 transfers of single family residential real property and 185 transfers of non-single family residential real property within the Earthquake Project Area where the sales price can be confirmed. Such sales are expected to increase fiscal year 2026-27 assessed values in the Earthquake Project Area by approximately $216 million. The projections of Tax Revenues set forth in the Fiscal Consultant Report attached as Appendix A and this Official Statement include the increase in assessed values in the Earthquake Project Area because of said sales.

New Development
According to the Fiscal Consultant, new development continues to occur within the Earthquake Project Area that is above and beyond changes of ownership. However, no additional assessed value has been included in the projections of Tax Revenues in the Fiscal Consultant Report and this Official Statement with respect to new development within the Earthquake Project Area.

Attachment B

11.B.b
Packet Pg. 1238 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 44 PROJECTED TAX REVENUES AND DEBT SERVICE COVERAGE
As shown in Table 3, the total assessed value in the Earthquake Project Area has increased over 60 percent since fiscal year 2016-17 and approximately 20 percent since fiscal year 2021-22.

The Fiscal Consultant prepared projections of Tax Revenues from the Earthquake Project Area assuming 2 percent incremental growth in assessed values of real property commencing in fiscal year 2026-27 and each fiscal year thereafter and they are shown in Table 6. Other assumptions made by the Fiscal Consultant in calculating the projected Tax Revenues are described in the Fiscal Consultants Report. See Appendix A.

Table 6
Earthquake Project Area
Projection of Assessed Values and Tax Revenues
(Assuming 2% Annual Growth)
(000s Omitted)
(1) Represent the County’s Section 2557 charges and administrative collection fees of approximately 1.33 percent of gross tax increment.

See “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Property Tax Administrative Costs.” (2) Represent Statutory Pass-Through Payments. See “SECURITY FOR THE 2026 BONDS – Statutory Pass-Through Payments.” (3) Projected assessed values for fiscal year 2026-27 include (i) reductions in assessed values of approximately $857 million relating to pending assessment appeals (see “THE EARTHQUAKE PROJECT AREA—Assessment Appeals”), and (ii) increases in assessed values of approximately $216 million relating to transfers of ownership after January 1, 2025 (see “THE EARTHQUAKE PROJECT AREA—Transfers of Ownership”).

Source: HdL Coren & Cone.

Fiscal
Year
Total
Taxable
Assessed
Value
Total
Incremental
Assessed
Value
Gross
Tax
Increment
Less:

County
Administrative
Fees (1)
Less:

Statutory
Pass-Through
Payments (2)
Gross Tax
Revenues
2025-26 $22,671,050 $18,830,845 $189,535 $(2,518) $(50,955) $136,062 2026-27 22,531,034 18,690,829 188,135 (2,499) (50,537) 135,099 2027-28 22,970,596 19,130,391 192,531 (2,558) (52,119) 137,854 2028-29 23,418,950 19,578,745 197,014 (2,617) (53,860) 140,537 2029-30 23,876,271 20,036,066 201,588 (2,678) (55,636) 143,274 2030-31 24,342,738 20,502,533 206,252 (2,740) (57,447) 146,065 2031-32 24,818,535 20,978,330 211,010 (2,803) (59,295) 148,912 2032-33 25,303,847 21,463,642 215,863 (2,868) (61,179) 151,817 2033-34 25,798,866 21,958,661 220,814 (2,933) (63,101) 154,779 2034-35 26,303,785 22,463,580 225,863 (3,001) (65,062) 157,800 2035-36 26,818,803 22,978,598 231,013 (3,069) (67,062) 160,882 2036-37 27,344,121 23,503,916 236,266 (3,139) (69,102) 164,025 2037-38 27,879,945 24,039,740 241,624 (3,210) (71,183) 167,232 2038-39 28,426,486 24,586,281 247,090 (3,282) (73,305) 170,502 2039-40 28,983,957 25,143,753 252,664 (3,357) (75,470) 173,838 2040-41 29,552,578 25,712,374 258,351 (3,432) (77,678) 177,241 2041-42 30,132,572 26,292,367 264,151 (3,509) (79,930) 180,711 Attachment B

11.B.b
Packet Pg. 1239 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 45 Table 7 shows projected debt service coverage based on total debt service on the 2026 Bonds assuming 2 percent incremental growth in assessed values of real property commencing in fiscal year 2026-27 and each fiscal year thereafter.

Table 7
Projected Debt Service Coverage
(Assuming 2% Annual Growth)
(000s Omitted)
(1) The Successor Agency’s obligation to make payments under the BofA Credit Agreement from Tax Revenues is senior to the 2026 Bonds only to the extent such revenues represent the former Housing Set-Aside from the Earthquake Project Area. (2) Represents Bond Year debt service. See “SECURITY FOR THE 2026 BONDS—Recognized Obligation Payment Schedule” for a description of the Successor Agency’s covenant to file Recognized Obligation Payment Schedules and the timing of anticipated distributions of Tax Revenues to the Successor Agency.

Source: HdL Coren & Cone; Stifel, Nicolaus & Company, Incorporated.

RISK FACTORS
The following information should be considered by prospective investors in evaluating the 2026 Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the 2026 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks.

Given the relative magnitude of Tax Revenues generated within the Earthquake Project Area and the assumption herein and the Fiscal Consultant Report that the Downtown Project Area, the Ocean Park Project Area 1A and the Ocean Park Project Area 1B will not generate tax increment revenues in the future, the following discussion is limited to the Earthquake Project Area.

Fiscal
Year
Gross Tax
Revenues
Less:

BofA Credit
Agreement
Payments (1)
Tax Revenues
Available for
Debt Service
2026 Bonds
Debt Service (2)*
Debt Service
Coverage*
2025-26 $136,062
2026-27 135,099
2027-28 137,854
2028-29 140,537
2029-30 143,274
2030-31 146,065
2031-32 148,912
2032-33 151,817
2033-34 154,779
2034-35 157,800
2035-36 160,882
2036-37 164,025
2037-38 167,232
2038-39 170,502
2039-40 173,838
2040-41 177,241
2041-42 180,711
Attachment B

11.B.b
Packet Pg. 1240 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 46 Reduction in Taxable Value
Tax Revenues allocated to the Redevelopment Property Tax Trust Fund are determined by the amount of incremental taxable value in a project area and the current rate or rates at which property in the project area is taxed. The reduction of taxable values of property in the Earthquake Project Area caused by economic factors beyond the Successor Agency’s control, such as relocation out of the Earthquake Project Area by one or more major property owners, sale of property to a nonprofit corporation exempt from property taxation or the complete or partial destruction of such property caused by, among other eventualities, earthquake or other natural disaster, could cause a reduction in the Tax Revenues that provide for the repayment of and secure the 2026 Bonds. Such reduction in Tax Revenues could have an adverse effect on the Successor Agency’s ability to make timely payments of principal of and interest on the 2026 Bonds.

As described in greater detail under the caption “PROPERTY TAXATION IN CALIFORNIA—Article XIIIA of the State Constitution,” Article XIIIA provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a 2 percent increase for any given year, or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above).

Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value base over the term of the 2026 Bonds could reduce Tax Revenues available to pay debt service on the 2026 Bonds when due.

In addition to the other limitations on and required application under the Dissolution Act of Tax Revenues on deposit in the Redevelopment Property Tax Trust Fund, as described in this Official Statement, the State electorate or Legislature could adopt a constitutional or legislative property tax reduction with the effect of reducing Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and available to the Successor Agency. Although the federal and State Constitutions include clauses generally prohibiting the Legislature’s impairment of contracts, there are also recognized exceptions to these prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Revenues and adversely affect the source of repayment and security of the 2026 Bonds.

Concentration of Ownership
Based upon the fiscal year 2025-26 locally assessed tax roll reported by the County Assessor, the ten largest property taxpayers in the Earthquake Project Area owned approximately 18.87 percent of the assessed value within the Earthquake Project Area and approximately 22.72 percent of the total incremental assessed value within the Earthquake Project Area. Concentration of ownership presents a risk in that if one or more of the largest property owners were to default on their taxes, or were to successfully appeal the tax assessments on property within the Earthquake Project Area, a substantial decline in Tax Revenues could result. Six of the ten largest property taxpayers within the Earthquake Project Area have pending assessment appeals. The Fiscal Consultant reports that the maximum aggregate loss in assessed value from pending appeals among the ten largest property taxpayers is approximately $3.4 billion (or 15.12 percent of the Earthquake Project Area incremental assessed value for fiscal year 2025-26). See the caption “THE EARTHQUAKE PROJECT AREA— Largest Property Taxpayers” for more information about these ten largest property taxpayers and see “THE EARTHQUAKE PROJECT AREA—Assessment Appeals” for information as to pending appeals of tax assessments.

Attachment B

11.B.b
Packet Pg. 1241 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 47 Risks to Real Estate Market
The Successor Agency’s ability to make payments on the 2026 Bonds is dependent upon the economic strength of the Earthquake Project Area. The general economy of the Earthquake Project Area is subject to all of the risks generally associated with urban real estate markets. Real estate prices and development may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs, the supply of or demand for competitive properties in such area, the market value of property in the event of sale or foreclosure and other similar factors. Furthermore, real estate development within the Earthquake Project Area could be adversely affected by limitations of infrastructure or future governmental policies, including governmental policies to restrict or control development, changes in real estate tax rates and other operating expenses, zoning laws and laws relating to threatened and endangered species and hazardous materials and fiscal policies, as well as natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses. In addition, if there is a decline in the general economy of the Earthquake Project Area, the owners of property within the Earthquake Project Area may be less able or less willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of Tax Revenues by the Successor Agency from the Earthquake Project Area.

Because assessed values do not necessarily indicate fair market values, the declines in fair market values in recent years may have been even greater than the declines in assessed valuations, although it is also possible that market values could be greater than assessed valuations at any given time. No assurance can be given that the individual parcel owners will pay property taxes in the future or that they will be able to pay such taxes on a timely basis. See the caption “—Bankruptcy and Foreclosure” for a discussion of certain limitations on the City’s ability to pursue judicial proceedings with respect to delinquent parcels.

Reduction in Inflation Rate
As described in greater detail previously, Article XIIIA of the State Constitution provides that the full cash value of real property used in determining taxable value may be adjusted from year to year to reflect the rate of inflation, not to exceed a 2 percent increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2 percent, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2 percent. The Successor Agency is unable to predict if any adjustments to the full cash value of real property within the Earthquake Project Area, whether an increase or a reduction, will be realized in the future. See “PROPERTY TAXATION IN CALIFORNIA—Article XIIIA of the State Constitution.” Levy and Collection of Taxes
The Successor Agency has no independent power to levy or collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the Tax Revenues, and accordingly, could have an adverse impact on the security for and the ability of the Successor Agency to pay debt service on the 2026 Bonds when due.

Attachment B

11.B.b
Packet Pg. 1242 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 48 Likewise, delinquencies in the payment of property taxes by the owners of land in the Earthquake Project Area, and the impact of bankruptcy proceedings on the ability of taxing agencies to collect property taxes, could have an adverse effect on the Successor Agency’s ability to make timely payments on the 2026 Bonds. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Delinquencies,” the County has not adopted a Teeter Plan. Accordingly, the amount of tax increment revenues that are allocated to the Successor Agency depends upon the actual collections of taxes within the Earthquake Project Area. The Successor Agency receives adjustments for redemption payments on delinquent collections. In addition, the Successor Agency receives supplemental taxes and refunds, if any, are deducted from amounts available for deposit to the Redevelopment Property Tax Trust Fund. Substantial delinquencies in the payment of property taxes could impair the timely receipt by the Successor Agency of Tax Revenues.

City Declaration of Fiscal Distress
On September 9, 2025, the City Council adopted a resolution identifying local fiscal distress (the “Fiscal Distress Resolution”) in response to a serious and worsening financial condition driven by both decreased revenues and increased liabilities, including ongoing litigation related to former City employee Eric Uller. The resolution was adopted as a tool to support a broader strategy for ongoing fiscal stability and an overall City realignment plan.

The City is a full‑service municipality that has historically relied on tourism- and travelrelated tax revenues, but it experienced a sudden 26.8 percent decline in General Fund revenues in fiscal year 2020‑21 due to the COVID‑19 pandemic. The decline prompted a 23.9 percent budget reduction and the elimination of 299 permanent and 122 temporary positions. Services remain below pre‑pandemic levels, numerous capital projects are unfunded, and the City’s fiscal year 2025‑26 General Fund budget includes $484.3 million in adjusted expenditures compared to $473.5 million in expected revenue, with forecasts showing a structural deficit and uncertainty that revenues will meet projections. Against this backdrop, the City has had repeated interactions with other governmental entities, regulatory bodies, and grant funding agencies, which revealed that the City’s current fiscal condition was not widely understood. The Fiscal Distress Resolution was adopted with the intention of filling that gap and serve as a clear factual statement of the City’s fiscal distress when seeking regulatory relief and funding.

A central driver of the City’s financial distress is the Uller matter. To date, the City has paid more than $229 million in settlements tied to alleged sexual abuse by former City employee Eric Uller occurring 20 to 30 years ago, largely funded by drawing down General Fund reserves and borrowing over $52 million from other City funds, leaving reserves at only 61 percent of pre‑pandemic levels; [178] additional claimants are seeking several million dollars more. These liabilities have severely depleted the City’s financial resources and are explicitly recognized in the Fiscal Distress Resolution as a key factor in the deterioration of the City’s fiscal condition, especially in light of California Assembly Bill 218 (2019) (“AB 218) and California Assembly Bill 452 (2023), which effectively eliminated the statute of limitations for sexual abuse claims. See the caption “CONCLUDING INFORMATION—Litigation” for additional information regarding the claims against the City relating to Uller.

Attachment B

11.B.b
Packet Pg. 1243 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 49 In response, under the Fiscal Distress Resolution, the City Council updated its fiscal policy (originally adopted during the pandemic) to temporarily reduce the required General Fund operating contingency reserve from 15 percent to 12.5 percent of the following year’s operating and capital budget and subsidies, with a commitment to restore the reserve by 0.5 percent per year back to 15 percent if revenues recover. The Fiscal Distress Resolution also acknowledges broader economic risks, including potential federal policy changes (tariffs, mass deportations, tax cuts, deregulation) and a persistently inflationary environment with rising labor and goods costs, which compound the City’s challenges.

Taken together, these conditions—structural deficits, depleted reserves, significant interfund borrowing, uncertain revenues, rising costs, and substantial abuse-related liabilities—led the City Council to declare that Santa Monica is experiencing fiscal distress and to direct the City Manager to take all necessary steps to address, alleviate, and mitigate the distress.

As previously described, under the Dissolution Act, the Successor Agency is a separate public entity from the City, two entities shall not merge, and the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City.

Furthermore, the 2026 Bonds are special obligations of the Successor Agency; and, except as provided in the Indenture, they are payable solely from Tax Revenues. However, a city’s financial distress can put downward pressure on assessed values over time by eroding the very services and conditions that make property desirable. As a city draws down reserves, delays capital projects, and struggles to maintain service levels, buyers and investors may begin to discount properties in that jurisdiction relative to nearby communities with stronger fiscal positions. At the margin, concerns about higher future taxes, reduced public safety and amenities and potential declines in the quality of infrastructure can weaken demand, which may be reflected in lower market prices and, over time, in reduced assessed values through the normal assessment and appeal process. Over an extended period of financial distress, the combination of service cuts, visual signs of underinvestment, and uncertainty about future policy responses can reinforce this effect, creating a feedback loop in which fiscal stress and softening assessments exacerbate one another.

As part of the Realignment Program, the City has committed approximately $60 million from reserves over the next two years to support business activity, public safety, and core maintenance, including doubling the size of the downtown police unit, enhancing visible security in key commercial areas, and investing in streetscape and corridor improvements to make business districts more attractive. The City is also streamlining a previously burdensome permitting process and reducing costs for outdoor dining to encourage new investment and faster tenant build‑outs. It is simultaneously pursuing operational budget adjustments, debt refinancing, and other cash‑saving measures that are projected to generate more than $30 million in additional revenue and cost savings over the next two years. These efforts are intended to help return the City’s General Fund to a positive structural position by mid‑2027. No assurance can be provided that the City’s finances will not materially adversely affect Tax Revenues in the future.

State Budget Issues
AB X1 26 and AB 1484 were enacted by the State Legislature and Governor as trailer bills necessary to implement provisions of the State’s budget acts for its fiscal years 2011-12 and 2012-13, respectively, and constituted efforts to address structural deficits in the State general fund budget. In general terms, these bills implemented a framework to transfer cash assets which were previously held by redevelopment agencies to cities, counties and special districts to fund core public services, Attachment B

11.B.b
Packet Pg. 1244 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 50 with assets transferred to schools offsetting State general fund costs (then projected savings of $1.5 billion). There can be no assurance that additional legislation will not be enacted in the future to additionally implement provisions relating to the State budget or otherwise that may affect successor agencies or tax increment revenues, including Tax Revenues. See the caption “—Changes in the Law.”
SB 107, which made extensive amendments to the Dissolution Act, was enacted following the adoption of the State fiscal year 2015-16 budget, after having initially been presented as AB 113, a trailer bill to the State fiscal year 2015-16 budget. SB 107 changed the process for submitting Recognized Obligation Payment Schedules from a six-month to an annual process, authorized successor agencies to submit and obtain DOF approval of a Last and Final ROPS to govern all remaining payment obligations of successor agencies, altered the provisions governing the distribution of Redevelopment Property Tax Trust Fund moneys attributable to pension and State Water Project tax rate overrides and eliminated the impact of financial and time limitations in redevelopment plans for purposes of paying enforceable obligations, among other changes to the Dissolution Act. These statutory amendments impact the manner in which successor agencies claim Redevelopment Property Tax Trust Fund moneys for enforceable obligations and, for some successor agencies, impact the amount of Redevelopment Property Tax Trust Fund moneys that will be available for payment of a successor agency’s enforceable obligations.

Information about the State budget is regularly available at various State-maintained websites. Text of proposed and adopted budgets may be found at the website of the DOF, http://www.dof.ca.gov, under the heading “California Budget.” An impartial analysis of the budget is posted by the Legislative Analyst’s Office (the “LAO”) at http://www.lao.ca.gov. In addition, various State official statements, many of which contain a summary of the current and past State budgets and the impact of those budgets on cities in the State, may be found at the website of the State Treasurer, http://www.treasurer.ca.gov. The information referred to is prepared by the respective State agency maintaining each website and not by the Successor Agency or the Underwriter, and the Successor Agency and the Underwriter take no responsibility for the continued accuracy of these Internet addresses or for the accuracy, completeness or timeliness of information posted thereon, and such information is not incorporated herein by these references.

For additional information regarding the 2025-26 State Budget, see the DOF’s website at www.dof.ca.gov and the LAO’s website at www.lao.ca.gov.

None of the websites or webpages that are referenced above is in any way incorporated into this Official Statement. They are cited for informational purposes only. Neither the Successor Agency nor the Underwriter makes any representation whatsoever as to the accuracy or completeness of any of the information on such websites.

There can be no assurance that additional legislation will not be enacted in the future to additionally implement provisions relating to the State budget or otherwise that may affect successor agencies or tax increment revenues.

Recognized Obligation Payment Schedule
The Dissolution Act provides that, commencing on the date that the first Recognized Obligation Payment Schedule is valid thereunder, only those obligations listed in the Recognized Obligation Payment Schedule may be paid by the Successor Agency from the funds specified in the Attachment B

11.B.b
Packet Pg. 1245 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 51 Recognized Obligation Payment Schedule. Before each February 1, with respect to the following fiscal year, the Dissolution Act requires successor agencies to prepare and submit to the successor agency’s oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as described under the caption “SECURITY FOR THE 2026 BONDS—Recognized Obligation Payment Schedule”) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund by the County AuditorController to the Successor Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to the June 1 property tax distribution date. See the caption “SECURITY FOR THE 2026 BONDS— Recognized Obligation Payment Schedule.” In the event that the Successor Agency fails to file a Recognized Obligation Payment Schedule with respect to a fiscal year, the availability of Tax Revenues to the Successor Agency could be adversely affected for such period.

In the event that a successor agency fails to submit to the DOF an oversight board-approved Recognized Obligation Payment Schedule complying with the provisions of the Dissolution Act within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations, the DOF may determine if any amount should be withheld by the applicable county auditor-controller for payments for enforceable obligations from distribution to taxing entities pursuant to clause (iv) below, pending approval of a Recognized Obligation Payment Schedule. Upon notice provided by the DOF to the county auditorcontroller of an amount to be withheld from allocations to taxing entities, the county auditorcontroller must distribute to taxing entities any moneys in the Redevelopment Property Tax Trust Fund in excess of the withholding amount set forth in the notice, and the county auditor-controller must distribute withheld funds to the successor agency only in accordance with a Recognized Obligation Payment Schedule when and as approved by the DOF.

Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the Dissolution Act, the county auditor-controller is to distribute funds for each six-month period in the following order specified in Section 34183 of the Dissolution Act:
(i) First, to each local agency and school entity, to the extent applicable, amounts required for pass-through payments that such entity would have received under provisions of the Redevelopment Law, as those provisions read on January 1, 2011, including any contractual and statutory pass-through payments. Pension or State Water Project override revenues that are not pledged to or not needed for debt service on successor agency debt will be allocated and paid to the entity that levies the override;
(ii) Second, to the Successor Agency for payments listed in its Recognized Obligation Payment Schedule;
(iii) Third, to the Successor Agency for the administrative cost allowance, as defined in the Dissolution Act; and
(iv) Fourth, the remainder is distributed to the taxing entities in an amount proportionate to such taxing entity’s share of property tax revenues in the tax rate area in such fiscal year (without adjustment for pass-through obligations).

Attachment B

11.B.b
Packet Pg. 1246 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 52 If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations and the DOF does not provide a notice to the County Auditor-Controller to withhold funds from distribution to taxing entities, amounts in the Redevelopment Property Tax Trust Fund for such fiscal year would be distributed to taxing entities pursuant to clause (iv) above.

Additionally, regardless of whether Redevelopment Property Tax Trust Fund moneys are sufficient to pay all contractual and statutory pass-through payments and enforceable obligations, the County Auditor-Controller will disburse moneys to taxing agencies for contractual and statutory pass-through payments prior to disbursing any moneys to the Successor Agency for debt service on the 2026 Bonds or other enforceable obligations unless the Successor Agency files a Notice of Insufficiency in accordance with the procedure described in the Dissolution Act. The Successor Agency has not undertaken the requisite procedures to subordinate the Statutory Pass-Through Payments to the payment of debt service on the 2026 Bonds and, therefore, the pledge of Tax Revenues to secure the payment of debt service on the 2026 Bonds when due is subordinate to the Statutory Pass-Through Payments.

See the caption “SECURITY FOR THE BONDS—Recognized Obligation Payment Schedule” and Appendix B for a description of the Successor Agency’s covenant in the Indenture to file Recognized Obligation Payment Schedules.

The Dissolution Act also imposes certain penalties if the Successor Agency does not timely submit a Recognized Obligation Payment Schedule for each fiscal year. Specifically, a Recognized Obligation Payment Schedule must be submitted by the Successor Agency, after approval by the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the DOF and the State Controller by February 1 in each year with respect to the following Fiscal Year. If the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule by such deadline, the City will be subject to a civil penalty equal to $10,000 per day for every day that the schedule is not submitted. Additionally, the Successor Agency’s administrative cost allowance will be reduced by 25 percent for any fiscal year for which the Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline. If the Successor Agency fails to submit a Recognized Obligation Payment Schedule by the February 1 deadline, any creditor of the Successor Agency or the DOF or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the Successor Agency to immediately perform this duty. The Successor Agency has submitted each prior Recognized Obligation Payment Schedule on or before the statutory deadline.

Last and Final Recognized Obligation Payment Schedule
SB 107 amended the Dissolution Act to permit certain successor agencies with limited remaining obligations to submit a Last and Final ROPS for approval by the oversight board and the DOF. The Last and Final ROPS must list the remaining enforceable obligations of the successor agency, including the total outstanding obligation amount and a schedule of remaining payments for each enforceable obligation. The Last and Final ROPS shall also establish the maximum amount of Redevelopment Property Tax Trust Funds to be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid.

Attachment B

11.B.b
Packet Pg. 1247 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 53 Any revenues, interest, and earnings of the successor agency, including proceeds from the disposition of real property, that are not authorized for use pursuant to the approved Last and Final ROPS shall be remitted to the county auditor-controller for distribution to the affected taxing entities.

A successor agency shall not expend more than the amount approved for each enforceable obligation listed on the approved Last and Final ROPS and once the successor agency has received Redevelopment Property Tax Trust Fund moneys equal to the amount of the total outstanding obligations approved in the Last and Final ROPS, the county auditor-controller will not allocate further Redevelopment Property Tax Trust Fund moneys to the successor agency.

Successor agencies may only amend an approved Last and Final ROPS twice. If the Successor Agency prepares and obtains DOF approval of a Last and Final ROPS and subsequently amends the Last and Final ROPS two times, the Successor Agency may be unable to make unexpected or unscheduled reserve deposits or payments due to the Insurers of 2026 Bonds or other Parity Debt.

See the caption “SECURITY FOR THE 2026 BONDS—Last and Final Recognized Obligation Payment Schedule” for a discussion of the requirements for a Last and Final ROPS and the mechanics for allocation of Redevelopment Property Tax Trust Fund moneys pursuant to an approved Last and Final ROPS.

The Successor Agency is not currently eligible to file a Last and Final ROPS because the payments under the BofA Credit Agreement vary based on a variable rate of interest and are not set forth in a payment schedule. The loan outstanding under the BofA Credit Agreement matures on June 1, 2028. The Successor Agency has covenanted in the Indenture not to submit to the Oversight Board or the California Department of Finance a request for the final amendment permitted for its Last and Final ROPS without the prior written consent of the 2026 Insurer unless all amounts that could become due to the 2026 Insurer are included as a line item on the Last and Final ROPS, as amended.

Parity and Subordinate Debt
The Indenture permits the issuance by the Successor Agency of certain refunding indebtedness which may have a lien upon the Tax Revenues on parity with the lien of the 2026 Bonds. The Successor Agency has covenanted not to issue any additional obligations with a lien on Tax Revenues senior to the lien of the 2026 Bonds. See “SECURITY FOR THE 2026 BONDS— Limitations on Additional Indebtedness” for a description of the conditions precedent to issuance of such additional obligations. The Indenture does not limit the issuance of tax allocation bonds or other indebtedness secured by a pledge of tax increment revenues subordinate to the pledge of Tax Revenues securing the 2026 Bonds.

Challenges to Dissolution Act
Several successor agencies, cities and other entities have filed judicial actions challenging the legality of various provisions of the Dissolution Act. One such challenge is an action filed on August 1, 2012, by Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, “Syncora”) against the State, the State Controller, the State Director of Finance, and the County Auditor-Controller on his own behalf and as the representative of all other County Auditors in the State (Superior Court of the State of California, County of Sacramento, Case No. 34-2012- 80001215). Syncora is a monoline financial guaranty insurer domiciled in the State of New York Attachment B

11.B.b
Packet Pg. 1248 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 54 and has provided bond insurance and other related insurance policies for bonds issued by former California redevelopment agencies.

The complaint alleged that the Dissolution Act, and specifically the “Redistribution Provisions” thereof (i.e., California Health and Safety Code sections 34172(d), 34174, 34177(d), 34183(a)(4), and 34188) violate the “contract clauses” of the United States and California Constitutions (U.S. Const. art. 1, §10, cl.1; Cal. Const. art. 1, §9) because they unconstitutionally impair the contracts among the former redevelopment agencies, bondholders and Syncora. The complaint also alleged that the Redistribution Provisions violate the “Takings Clauses” of the United States and California Constitutions (U.S. Const. amend. V; Cal Const. art. 1 §19) because they unconstitutionally take and appropriate bondholders’ and Syncora’s contractual right to critical security mechanisms without just compensation.

After hearing by the Sacramento County Superior Court on May 3, 2013, the Superior Court ruled that Syncora’s constitutional claims based on contractual impairment were premature. The Superior Court also held that Syncora’s takings claims, to the extent based on the same arguments, were also premature. Pursuant to a Judgment stipulated to by the parties, the Superior Court on October 3, 2013, entered its order dismissing the action. The Judgment, however, provides that Syncora preserves its rights to reassert its challenges to the Dissolution Act in the future. The Successor Agency does not guarantee that any reassertion of challenges by Syncora or that the final results of any of the judicial actions brought by others challenging the Dissolution Act will not result in an outcome that may have a material adverse effect on the Successor Agency’s ability to timely pay debt service on the 2026 Bonds.

Bankruptcy and Foreclosure
The payment of the property taxes from which Tax Revenues are derived and the ability of the County to foreclose the lien of a delinquent unpaid tax may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights (such as the Soldiers’ and Sailors’ Relief Act of 1940 discussed below) or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a foreclosure action could be delayed due to crowded local court calendars or delays in the legal process. The various legal opinions to be delivered concurrently with the delivery of the 2026 Bonds (including Bond Counsel’s approving legal opinions) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.

Although bankruptcy proceedings would not cause the liens to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings because federal bankruptcy laws may provide for an automatic stay of foreclosure and sale of tax sale proceedings. Such delay would increase the possibility of delinquent tax installments not being paid in full and thereby increase the likelihood of a delay or default in payment of the principal of and interest on the 2026 Bonds. Moreover, if the value of the subject property is less than the lien of property taxes, such excess could be treated as an unsecured claim by the bankruptcy court. Further, should remedies be exercised under the federal bankruptcy laws, payment of property taxes may be subordinated to bankruptcy law priorities. Thus, certain claims may have priority over property taxes in a bankruptcy proceeding even though they would not outside of a bankruptcy proceeding.

Attachment B

11.B.b
Packet Pg. 1249 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 55 In addition, the United States Bankruptcy Code might prevent moneys on deposit in the Redevelopment Obligation Retirement Fund from being applied to pay interest on the 2026 Bonds and/or to redeem 2026 Bonds if bankruptcy proceedings were brought by or against a landowner and if the court found that such landowner had an interest in such moneys within the meaning of Section 541(a)(1) of the United States Bankruptcy Code.

Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of property taxes or the timing of enforcement thereof. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure covenant, a six-month period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if a court concludes that the ability to pay such taxes or assessments is materially affected by reason of such service.

Estimated Revenues
In estimating that Tax Revenues will be sufficient to pay debt service on the 2026 Bonds, the Successor Agency has made certain assumptions with regard to present and future assessed valuation in the Earthquake Project Area, future tax rates and percentage of taxes collected. The Successor Agency believes these assumptions to be reasonable, but there is no assurance that these assumptions will be realized. To the extent that the assessed valuation and the tax rates are less than expected, the Tax Revenues available to pay debt service on the 2026 Bonds will be less than those projected and such reduced Tax Revenues may be insufficient to provide for the payment of principal of, premium (if any) and interest on the 2026 Bonds.

Hazardous Substances
While governmental taxes, assessments, and charges are a common claim against the value of a taxable parcel, other less common claims may be relevant. One example is a claim with regard to a hazardous substance. The Successor Agency has no knowledge of any hazardous substances located in the Earthquake Project Area that, in its judgment, are reasonably likely to result in a material and adverse impact on total assessed values in the Earthquake Project Area. However, the Successor Agency has not undertaken, and does not intend to undertake, an independent investigation of the Earthquake Project Area for the purpose of identifying hazardous substances. However, the presence of hazardous substances with such an effect is possible, and there can be no assurance that previously unknown conditions will not be discovered in the future.

The presence of hazardous substances on a parcel may result in a reduction in the value of a parcel. In general, the owners and operators of a taxable parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but State and local laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the taxable parcels be affected by a hazardous substance is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. Further, such liabilities may arise not simply Attachment B

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Packet Pg. 1250 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 56 from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of the property that is realizable upon a delinquency and foreclosure.

Further, it is possible that liabilities may arise in the future with respect to any of the taxable parcels resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not only from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of a taxable parcel that is realizable upon a delinquency.

Natural Disasters
The City, like all California communities, may be subject to unpredictable seismic activity, high winds, wildfires, landslides or flooding in the event of unseasonable rainfall or other natural disasters. Seismically induced ground shaking has affected the City in the past and is expected to affect the City in the future.

Seismic Risks. Seismic activity represents a potential risk for damage to buildings, roads, and property within the Earthquake Project Area. The City is crossed by an active west–east trending fault system commonly referred to as the Santa Monica fault. The Santa Monica fault is a northdipping, high angle fault that extends for a distance of approximately 25 miles through the communities of Beverly Hills, Westwood, Santa Monica, and Pacific Palisades, before going offshore parallel to the Malibu coastline. The Santa Monica fault is one segment of a much longer system of faults, referred to as the Southern Frontal Fault System, that forms the southern boundary of the Transverse Ranges geomorphic province. Given its length, rupture on the Santa Monica fault on its own is estimated to be capable of generating a magnitude 6.8 earthquake.

Outside of the City, the San Andreas fault is the major active fault in the State, which is approximately 40 miles from the City. Several active or potentially active faults are located closer to the City, including the San Jacinto, the Palos Verdes, the Malibu Coast, and the Newport-Inglewood faults. Major recent earthquakes in the region occurred in 1987 (Whittier Narrows), 1994 (Northridge), and 2019 (Ridgecrest). The Northridge 1994 earthquake had a magnitude of 6.7 on the Richter scale and dramatically affected the City.

In addition, land that is susceptible to seismic activity may be subject to liquefaction during the occurrence of such event. According to the City’s Local Hazards Mitigation Plan, certain areas within the City are susceptible to liquefaction in the event of an earthquake. The areas include: (i) the coastline; (ii) the southwestern limits of the City, extending northward from Marina del Rey to the City’s southern boundary across Marine Park and eastward to near the southwestern corner of the Santa Monica airport; (iii) near the northeastern corner of the City, between Brentwood Country Club to the north and just south of Santa Monica Boulevard on the south; and (iv) an area approximately between Olympic Boulevard to the north, Pearl Street to the south, Gateway Boulevard on the east, and the southeast projection of Franklin Street on the west. A portion of the Earthquake Project Area is within the liquefaction hazard zones in the City. This fourth area extends into the east-central edge of the City. The City’s coastal bluffs and hillsides may also be subject to landslides and slope failures.

Attachment B

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Packet Pg. 1251 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 57 Offshore earthquakes off the coast of the City could also cause tsunamis and seiche. A tsunami is a sea wave generated by a submarine earthquake, landslide or volcanic eruption. A seiche is another form of earthquake-or landslide-induced wave or oscillation that can be generated in an enclosed body of water such as a lagoon or harbor. Certain parts of the City are within a tsunami hazard zone designated by the California Geological Survey. The zone within the City extends approximately 700 to 1,500 feet inland from the coast and places all structures and parking lots west of the Pacific Coast Highway and Appian Way within the area susceptible to tsunami inundation.

These structures include the Santa Monica Pier and buildings associated with it, in addition to the residential and commercial buildings on the west side of the roads mentioned above. North of the Pier, the inundation limits are defined by the base of the sea bluffs, as the height of the bluffs provide a natural constraint to the inland advancement of the runup. According to the City’s Local Hazards Mitigation Plan, significant damage to the base of the bluffs and Pacific Coast Highway can be expected. In the southwestern portion of the City, the inundation limits extend locally to Neilson Way. This places several multi-family residential structures within the hazard zone. In addition to the Pier, City-owned or managed facilities located in the inundation hazard zone include Beach Maintenance, the Santa Monica Urban Runoff Recycling Facility, and the Annenberg Community Beach House. Tsunamis and seiches have both caused damage in the Santa Monica area in the past.

An earthquake along one of the faults in the vicinity of the City, either known or unknown, could cause a number of casualties and extensive property damage, including within the Earthquake Project Area. The effects of such an earthquake could be aggravated by aftershocks and secondary effects such as fires, landslides, liquefaction and other threats to public health, safety and welfare. If an earthquake were to substantially damage or destroy taxable property within the Earthquake Project Area, the assessed valuation of such property would be reduced. Such a reduction of assessed valuations could result in a reduction of the Tax Revenues.

Flood Risks. A relatively small portion of the City along the coastline is within a 100-year flood zone susceptible to storm flooding and storm surges. The areas consist of the beach westsouthwest of Pacific Coast Highway north of the Pier, and approximately west of the Marvin Braude Bike Trail south of the Pier. According to the City’s Natural Hazards Mitigation Plan, 85 buildings are known to be located within the FEMA-mapped 100-year flood zone along. Several of these properties are City-owned. Most of the City is mapped as having a minimal flood hazard, with the majority of the City located outside the 500‐year flood zone. None of the property in the Earthquake Project Area is located within a within 100-year flood zone.

Flooding within the City may also be caused by failures of reservoirs and dams in the vicinity of the City. The Stone Canyon Reservoir is located about 4.1 miles northeast of the City near the residential neighborhood of Bel Air. It is owned and operated by the Los Angeles Department of Water and Power. It is an earthen embankment reservoir constructed in 1924 and has a storage capacity of about 3.4 billion gallons. Given its size, the Stone Canyon Reservoir’s dam is also under the jurisdiction of the California Division of Dam Safety. According to the City’s Natural Hazards Mitigation Plan, if the dam were to fail, the eastern portion of the City, in the area between about Olympic and Pico Boulevards, would be inundated. Specifically, the flood waters from Stone Canyon Reservoir are expected to have a peak velocity of 1 to 3 feet per second, have a maximum depth of 1 to 10 feet, and arrive in the eastern part of the City approximately an hour to an hour-anda-half after the dam failure. As of 2022, the California Division of Safety of Dams lists this reservoir as certified, with a satisfactory assessment, and with an “extremely high” downstream hazard. The extremely high downstream hazard is assigned to reservoirs that are expected to cause considerable loss of human life or would result in an inundation area with a population of 1,000 or more.

Attachment B

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Packet Pg. 1252 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 58 The portion of the city within the dam inundation failure zone for Stone Canyon reservoir is larger than the area susceptible to coastal flooding but is still limited. The southeastern edge of the Earthquake Project Area near the Santa Monica Freeway and Cloverfield Boulevard is within, or in very close proximity to, the dam inundation failure zone for Stone Canyon reservoir.

Wildfire Risks. In recent years, drought conditions in the State have led to increased risk of wildfire. In particular, certain electrical operators in the State have seen their distribution and transmission lines cause billions of dollars in property damage and the loss of lives. In 2023, as in several prior years, for example, devastating wildfires burned in various communities in the State, causing wide-spread damage. In 2025, communities in the County, including Pacific Palisades, Malibu and Altadena, experienced widespread devastation from wildfires causing losses of life, thousands of burned homes, and billions of dollars in property damage.

Although, historically, the City has not experienced a wildfire within its limits, the City is bordered to the north by natural areas that have burned in the past and could burn again in the future.

Moreover, recent past wildfires in California, including the devastating January 2025 fires in the Los Angeles region, have shown that wildfires can easily spread into developed areas, especially when wildfires burn at or near the wildland-urban interface (“WUI”), with ignited structures then sustaining and transmitting the fire from one building to the next.

The Palisades fire is currently considered the third most-damaging historical fire in California based on the number of structures destroyed. The damage caused by the Palisades fire is still being assessed, with a total cost not likely to be known for several years. Building safety assessments of the area burned indicates that 6,837 structures were destroyed, and another 973 structures were damaged.

Most of Pacific Palisades north of Sunset Boulevard burned. The Palisades fire prompted wildfire evacuation orders for the City after coming within one-half mile of the City limits. However, no land or structures in the City burned during the Palisades fire.

Following the January 2025 Palisades fire, CAL FIRE has issued a new map that places the northern portion of the City within a Very High Fire Hazard Zone. Narrow strips to the south of the Very High Fire Hazard Zone are also now considered as having a high and moderate fire hazard.

While no portion of the Earthquake Project Area is located within an area designated as a High or Very High Fire Hazard Zone by CalFire, the Earthquake Project Area is in very close proximity to the northern portion of the City that is within a Very High Fire Hazard Zone and the 2025 Palisades showed that urban landscapes can burn and transmit fire. In addition, there are at least three canyons in the southern flanks of the Santa Monica Mountains that could convey a wildfire to the northern city boundaries. Property damage within, or in the vicinity of, the Earthquake Project Area due to wildfires could result in a reduction of the Tax Revenues that secure the 2026 Bonds.

On January 16, 2025, Governor Gavin Newsom issued Executive Order N-10-25 (the “Governor’s Order) which canceled penalties, costs and interest on overdue property taxes within certain zip codes affected by the Palisades and Eaton Fires during calendar year 2025. This will likely cause a delay in the payment of property taxes by property owners in areas affected by Governor’s Order. Unless property owners within the affected areas pay their property taxes voluntarily or have mortgage impound accounts, it is possible bonds payable from property taxes in such areas will experience a need to draw on reserve accounts or a payment default. Although no area within the City is included in the Governor’s Order, in the event of a major fire or other natural disaster affecting the Earthquake Project Area, a similar order affecting the Earthquake Project Area Attachment B

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Packet Pg. 1253 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 59 could impact Tax Revenues and, therefore, the ability of the Successor Agency to make timely debt service payments on the 2026 Bonds.

The property within the Earthquake Project Area may also be at risk from other events of force majeure, such as damaging storms, fires and explosions, strikes, sabotage, pandemics, riots and spills of hazardous substances, among other events. The Successor Agency cannot predict what force majeure events may occur in the future.

Climate Change and Sea Level Rise
Climate change, including change caused by human activities, may have adverse effects on the Earthquake Project Area. As greenhouse gas emissions continue to accumulate in the atmosphere, climate change is expected to intensify, increasing the frequency, severity and timing of extreme weather events such as coastal storm surges, drought, wildfires, floods and heat waves, and raising sea levels.

To combat the possible effects of climate change on the City, in 2019, the City adopted its Climate Action and Adoption Plan (the “CAAP”). The CAAP is a comprehensive, community-driven roadmap to reduce greenhouse gas emissions. Building on past progress—already achieving a 20 percent emissions reduction below 1990 levels—the CAAP sets an interim target of reducing emissions 80 percent below 1990 levels by 2030, putting the City on a path to carbon neutrality by or before 2050. The CAAP identifies the City’s key climate risks, including extreme heat, drought, sea level rise, coastal flooding, and air quality degradation, and prioritizes protections for vulnerable populations. Adaptation actions are organized across four focus areas: climate ready community, water self-sufficiency, coastal flooding preparedness, and low carbon food & ecosystems. The CAAP commits public investment, coordinated governance, and ongoing community engagement, with regular progress reporting to ensure accountability.

Sea-level rise is the increase in the ocean’s surface height due to the melting of glaciers and sea ice as well as the thermal expansion of sea water at high temperatures. According to the City’s Natural Hazards Mitigation Plan, sea level rise in the City is anticipated to result not only in property damage and losses, but also disruption of schools, businesses, and transportation. The Santa Monica Pier, a major tourist destination and source of income for many, will be impacted by higher waves and a higher volume of water; both of these conditions can damage the structure. The City has estimated that sea level rise will cost the City millions of dollars in losses to City infrastructure and in non-market value associated with the public’s use of the beach and other coastal resources.

In an effort to counteract some of the impacts of seal level rise, the City has adopted a Local Coastal Program Land Use Plan (“LCP LUP”) that establishes policies and adaptation strategies.

These policies and strategies are to be implemented in phases as changes due to sea level rise occur.

The LCP LUP outlines policies for hazard zone properties, as well as a roadmap for adaptation to make the City more resilient to sea level rise. For instance, the City is exploring natural solutions to improve the biodiversity and resiliency of its beaches, while addressing the potential impacts of sea level rise. One such measure is a pilot program for dune creation in the North Beach area that successfully increased the height of the dunes and is now being expanded.

Projections of the impacts of global climate change on the City and the Earthquake Project Area are complex and depend on many factors that are outside the Successor Agency’s control. The various scientific studies that forecast the amount and timing of adverse impacts of climate change Attachment B

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Packet Pg. 1254 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 60 are based on assumptions contained in such studies, but actual events may vary materially. Also, the scientific understanding of climate change and its effects continues to evolve. Accordingly, while the City has considered climate change in its planning, the Successor Agency is unable to forecast with certainty when adverse impacts of climate change will occur or the extent of such impacts.

While the impacts of climate change may be mitigated by the City’s past and future investment in adaptation strategies, the Successor Agency can give no assurance about the net effects of those strategies and whether the City will be required to take additional adaptive mitigation measures.

Cybersecurity
The City, like other public and private entities, relies on a large and complex technology environment to conduct its operations, and consequently faces the threat of cybersecurity incidents.

Such incidents can result from unintentional events, or from deliberate attacks by unauthorized entities or individuals attempting to gain access to the information technology systems of the City to misappropriate assets or information or to cause operational disruption and damage. The City and its departments face cyber threats from time to time, including but not limited to hacking, viruses, malware, phishing, distributed denial-of-service, and other attacks on computers, networks, and systems. The City has not experienced a major cyber attack that resulted in a material compromise of the system, data loss, or financial loss.

The City is also reliant on other entities and service providers in connection with the administration of the 2026 Bonds, including without limitation, the County and the Trustee. No assurances can be given that the City’s security and operational control measures will guard against all cyber threats and attacks. The results of any attack on the City’s computer and informationtechnology systems could adversely affect the City’s or Successor Agency’s operations and damage the City’s digital networks and systems, and potential losses from such attacks, as well as the costs of defending against future attacks, could be substantial. In addition, cyber attacks could result in delays in receipt of Tax Revenues from the County Auditor-Controller, or transfer of Tax Revenues to the Trustee for payment of debt service on the 2026 Bonds.

Changes in the Law
There can be no assurance that the State electorate will not at some future time adopt initiatives or that the State Legislature will not enact legislation that will amend the Dissolution Act, the Redevelopment Law or other laws or the Constitution of the State resulting in a reduction of Tax Revenues, which could have an adverse effect on the Successor Agency’s ability to pay debt service on the 2026 Bonds.

Investment Risk
Funds held under the Indenture are required to be invested in Permitted Investments as provided under the Indenture. See Appendix B for a summary of the definition of Permitted Investments. The funds and accounts of the Successor Agency, into which a portion of the proceeds of the 2026 Bonds will be deposited and into which Tax Revenues are deposited, may be invested by the Successor Agency in any investment authorized by law. All investments, including the Permitted Investments and those authorized by law from time to time for investments by municipalities, contain a certain degree of risk. Such risks include, but are not limited to, a lower rate of return than expected and loss or delayed receipt of principal. See also the caption “—Bankruptcy and Foreclosure.”
Attachment B

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Packet Pg. 1255 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 61 Secondary Market
There can be no guarantee that there will be a secondary market for the 2026 Bonds, or, if a secondary market exists, that the 2026 Bonds can be sold for any particular price. Although the Successor Agency has committed to provide certain financial and operating information on an annual basis, there can be no assurance that such information will be available to Owners of the 2026 Bonds on a timely basis. See the caption “CONCLUDING INFORMATION—Continuing Disclosure” and Appendix G. Any failure to provide annual financial information, if required, does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon the then prevailing circumstances. Such prices could be substantially different from the original purchase price.

IRS Audit of Tax-Exempt Bond Issues
The Internal Revenue Service has a program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the 2026 Bonds will be selected for audit by the Internal Revenue Service. It is also possible that the market value of the 2026 Bonds might be affected as a result of such an audit of the 2026 Bonds (or by an audit of similar municipal obligations).

Loss of Tax Exemption
As discussed under the caption “TAX MATTERS,” in order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2026 Bonds, the Successor Agency have covenanted in the Indenture and the Tax Certificate relating to the 2026 Bonds not to take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest on the 2026 Bonds under Section 103 of the Internal Revenue Code of 1986, as amended. Interest on the 2026 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance, as a result of acts or omissions of the Successor Agency subsequent to the issuance of the 2026 Bonds in violation of such covenants with respect to the 2026 Bonds. Should such an event of taxability occur, the 2026 Bonds are not subject to redemption by reason thereof and will remain outstanding until maturity or unless earlier redeemed pursuant to the redemption provisions of the Indenture.

Bonds Are Limited Obligations
Neither the faith and credit nor the taxing power of the Successor Agency (except to the limited extent set forth in the Indenture), the City, the State or any political subdivision thereof is pledged to the payment of the 2026 Bonds. The 2026 Bonds are special obligations of the Successor Agency; and, except as provided in the Indenture, they are payable solely from Tax Revenues. Tax Revenues could be insufficient to pay debt service on the 2026 Bonds as a result of delinquencies in the payment of property taxes or the insufficiency of proceeds derived from the sale of land within the Successor Agency following a delinquency in the payment of the applicable property taxes. As discussed under the caption “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection Procedures—Delinquencies,” under its current policies, the County Auditor-Controller distributes 100 percent of tax increment revenues allocated to each redevelopment successor agency in the Attachment B

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Packet Pg. 1256 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 62 County without regard to delinquencies in the payment of property taxes. However, there can be no assurance that such policies will not be changed in the future. The Successor Agency has no obligation to pay debt service on the 2026 Bonds in the event of insufficient Tax Revenues, except to the extent that money is available for such purpose in the Redevelopment Obligation Retirement Fund, the Debt Service Fund and the Reserve Account (and subaccounts therein).

Bond Insurance
In the event of default of the payment of the scheduled principal of or interest on the 2026 Bonds when all or some becomes due, the Trustee on behalf of any owner of the 2026 Bonds will have a claim under 2026 Policy for such payments. In the event the 2026 Insurer makes a payment to Owners of the 2026 Bonds under 2026 Policy, the 2026 Insurer will be subrogated to the rights of such Owners of the 2026 Bonds to direct and consent to remedies with respect to the 2026 Bonds.

The 2026 Insurer may direct and must consent to any remedies with respect to the 2026 Bonds and the 2026 Insurer’s consent may be required in connection with amendments to any applicable documents relating to the 2026 Bonds. See [Appendix B—“SUMMARY CERTAIN PROVISIONS OF THE INDENTURE—SECURITY OF BONDS; FLOW OF FUNDS—Provisions Relating to 2026 Insurance Policy.”]
The 2026 Insurer is expected to insure all the 2026 Bonds and will therefore have the ability to direct the actions of the Trustee give consents and waivers and take other actions without regard to the views of the owners of the 2026 Bonds. As a result, Owners of the 2026 Bonds may be limited in the rights and remedies they are able to exercise in the event of a default by the Successor Agency under the Indenture. The 2026 Insurer may have different business and other interests than the Owners of the 2026 Bonds.

The long-term ratings on the 2026 Bonds are dependent in part on the financial strength of the 2026 Insurer and its claims paying ability. The 2026 Insurer’s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the 2026 Insurer and the ratings on the 2026 Bonds will not be subject to downgrade and such event could adversely affect the market price of the 2026 Bonds or the marketability (liquidity) for the Bonds. See “CONCLUDING INFORMATION—Ratings” herein.

The obligations of the 2026 Insurer are unsecured contractual obligations and in an event of default by the 2026 Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies.

Neither the Successor Agency nor the Underwriter has made independent investigation into the claims paying ability of the 2026 Insurer and no assurance or representation regarding the financial strength or projected financial strength of the 2026 Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the Successor Agency to make the payments on the 2026 Bonds and the claims paying ability of the 2026 Insurer, particularly over the life of the investment. See “BOND INSURANCE” herein for further information regarding the 2026 Insurer and 2026 Policy, which includes further instructions for obtaining current financial information concerning the 2026 Insurer.

Attachment B

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Packet Pg. 1257 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 63 Limitations on Remedies
Remedies available to the Owners of the 2026 Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the 2026 Bonds or to preserve the tax-exempt status of the 2026 Bonds.

Enforceability of the rights and remedies of the Owners of the 2026 Bonds, and the obligations incurred by the Successor Agency, may become subject to the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against governmental entities in the State.

See the caption “—Bankruptcy and Foreclosure.”
Bond Counsel has limited its opinion as to the enforceability of the 2026 Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion.

The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners.

TAX MATTERS
General
In the opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, under existing law and subject to certain qualifications described below, interest on the 2026 Bonds is excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Tax Code”). Interest on the 2026 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the 2026 Bonds is exempt from California personal income taxes. The proposed form of opinion of Bond Counsel with respect to the 2026 Bonds to be delivered on the date of issuance of the 2026 Bonds is attached as Appendix C.

The Tax Code contains a number of requirements that apply to the 2026 Bonds, and the Successor Agency has made certain representations and have covenanted to comply with each such requirement. Bond Counsel’s opinion assumes the accuracy of the representations made by the Successor Agency and is subject to the condition that the Successor Agency comply with the abovereferenced covenants. If the Successor Agency fails to comply with such covenants or if the representations are inaccurate or incomplete, interest on the 2026 Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the 2026 Bonds.

Except as expressly stated herein, Bond Counsel expresses no opinion regarding any tax consequences related to the ownership, sale or disposition of the 2026 Bonds, or the amount, accrual Attachment B

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Packet Pg. 1258 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 64 or receipt of interest on, the 2026 Bonds. Owners of the 2026 Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the 2026 Bonds.

Original Issue Premium and Discount
If the initial offering price to the public at which a 2026 Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes. If the initial offering price to the public at which a 2026 Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income to the extent properly allocable to each owner thereof subject to the limitations described in the limitation described herein. The original issue discount accrues over the term to maturity of the 2026 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such 2026 Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such 2026 Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the 2026 Bonds who purchase the 2026 Bonds after the initial offering of a substantial amount of such maturity. Owners of such 2026 Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2026 Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such 2026 Bonds under the federal alternative minimum tax.

Under the Tax Code, original issue premium is amortized on an annual basis over the term of the 2026 Bond (said term being the shorter of the 2026 Bond’s maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the 2026 Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a 2026 Bond is amortized each year over the term to maturity of the 2026 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized 2026 Bond premium is not deductible for federal income tax purposes. Owners of premium 2026 Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to federal income tax consequences of owning such 2026 Bonds.

Post Issuance Matters
The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the 2026 Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service (“IRS”) or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the Successor Agency, or about the effect of future changes in the Tax Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS.

Bond Counsel’s engagement with respect to the 2026 Bonds ends with the issuance of the 2026 Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the Successor Attachment B

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Packet Pg. 1259 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 65 Agency or the Owners of the 2026 Bonds regarding the tax-exempt status of the 2026 Bonds in the event of an audit examination by the IRS. Under current procedures, parties other than the Successor Agency and its appointed counsel, including the Owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the Successor Agency legitimately disagrees, may not be practicable. Any action of the IRS, including but not limited to selection of the 2026 Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for, or the marketability of, the 2026 Bonds, and may cause the Successor Agency or the Owners to incur significant expense.

Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the 2026 Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the 2026 Bonds. Prospective purchasers of the 2026 Bonds should consult their own tax advisors regarding any pending or proposed legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

CONCLUDING INFORMATION
Underwriting
The 2026 Bonds are being purchased by Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) pursuant to a bond purchase agreement (the “Purchase Agreement”), by and between the Underwriter and the Successor Agency. The Underwriter has agreed to purchase the 2026 Bonds at a price of $__________ (being the aggregate principal amount thereof, [plus/less] an original issue [premium/discount] of $___________ and less an underwriter’s discount of $____________). The Purchase Agreement provides that the Underwriter will purchase all the 2026 Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions.

The initial public offering prices stated on the inside front cover page of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2026 Bonds to certain dealers (including dealers depositing 2026 Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices.

Municipal Advisor
Urban Futures, Inc., Walnut Creek, California, has served as municipal advisor (“Municipal Advisor”) to the Successor Agency in connection with the 2026 Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities. Compensation Attachment B

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Packet Pg. 1260 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 66 for the Municipal Advisor’s services is entirely contingent upon the sale and delivery of the 2026 Bonds.

Verification of Mathematical Computations
The Verification Agent, an independent accountant, upon delivery of the 2026 Bonds, will deliver a report on the mathematical accuracy of certain computations, contained in schedules provided to them that were prepared by the Successor Agency, relating to the sufficiency of the cash and/or the maturing principal of and interest on the escrow securities to be deposited in the respective escrow funds for the Refunded Bonds, to pay, when due, the principal, whether at maturity or upon prior redemption, interest and redemption premium with respect to the Refunded Bonds.

The Verification Agent’s report will include the statement that the scope of its engagement is limited to verifying the mathematical accuracy of the computations contained in such schedules provided to it, and that it has no obligation to update its report because of events occurring, or date or information coming to its attention, subsequent to the date of its report.

Legal Opinion
The opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, approving the validity of the 2026 Bonds, stating that interest on the 2026 Bonds is exempt from federal personal income taxes and interest on the 2026 Bonds is exempt from California personal income taxes under present State income tax laws will be furnished to the Underwriter at the time of delivery of the 2026 Bonds at the expense of the Successor Agency. Compensation for Bond Counsel’s services is entirely contingent upon the sale and delivery of the 2026 Bonds.

A copy of the proposed form of Bond Counsel’s final approving opinion with respect to the 2026 Bonds is attached hereto as Appendix C. The legal opinion is only as to legality and is not intended to be nor is it to be interpreted or relied upon as a disclosure document or an express or implied recommendation as to the investment quality of the 2026 Bonds.

In addition, certain legal matters will be passed on for the Successor Agency by the City Attorney of the City, as counsel to the Successor Agency, and by Anzel Galvan LLP, as Disclosure Counsel, for the Underwriter by Stradling Yocca Carlson & Rauth, LLP, Newport Beach, California, as Underwriter’s Counsel, and for the Trustee by its counsel. Compensation for Disclosure Counsel and Underwriter’s Counsel is entirely contingent upon the sale and delivery of the 2026 Bonds.

Litigation
Successor Agency. There is no action, suit or proceeding known to the Successor Agency to be pending and notice of which has been served upon and received by the Successor Agency, or threatened, restraining or enjoining the execution or delivery of the 2026 Bonds or the Indenture or in any way contesting or affecting the validity of the foregoing or any proceedings of the Successor Agency taken with respect to any of the foregoing.

City of Santa Monica. As previously described, under the Dissolution Act, the Successor Agency is a separate public entity from the City, and the liabilities of the Former Agency will not be transferred to the City and vice versa. In addition, the 2026 Bonds are special obligations of the Successor Agency; and, except as provided in the Indenture, they are payable solely from Tax Attachment B

11.B.b
Packet Pg. 1261 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 67 Revenues. However, because a city’s financial distress can put downward pressure on assessed values over time, as previously described, the Successor Agency has determined that the pending claims against the City relating to Eric Uller are potentially relevant to the making of an informed investment decision with respect to the 2026 Bonds.

Eric Uller, a former City employee, was indicted by the Los Angeles County District Attorney’s Office in 2018 on five counts of sexual offenses against four minors arising from alleged incidents dating back to 1989, when he was volunteering and/or working as a City employee at the Santa Monica Police Activities League (“SM‑PAL”). After pleading not guilty, Uller was released on bail and was later found dead in his residence of an apparent suicide prior to a scheduled court appearance in November 2018.

Following Uller’s arrest and subsequent death, hundreds of individuals filed suits against the City and SM‑PAL alleging abuse by Uller between the late 1980s and early 2000s while he was associated with SM‑PAL. To date, the City has settled approximately 230 cases tied to alleged sexual abuse by Uller in four settlement rounds totaling more than $290 million. A fifth round of [178] additional claims of alleged sexual abuse by Uller is currently pending.

AB 218 is a California law that significantly expanded the time and scope for bringing civil claims arising from childhood sexual assault, increasing potential liability for public entities and other institutions. AB 218, effective January 1, 2020, broadened the definition of childhood sexual abuse to “childhood sexual assault,” extended the civil statute of limitations so that survivors can sue until at least age 40 or within five years of discovering their injury, and opened a three‑year “lookback window” (2020–2022) that temporarily revived many previously time‑barred claims. AB 218 also permits treble damages where a plaintiff proves a cover‑up by an institution, further increasing exposure for entities that failed to take reasonable steps to prevent abuse.

The City cannot predict whether any of the pending Uller claims will be resolved, the amount of monetary settlements, if any, or whether additional claimants will come forward in the future. Accordingly, the City cannot predict with certainty the potential remaining costs of litigation relating to the Uller claims. The City intends to pursue reimbursement and coverage from its insurance carriers. However, there can be no assurance that such coverage will be available or, if available, in what amount. See “RISK FACTORS—City Declaration of Fiscal Distress.” Ratings
S&P Global Ratings (“S&P”) has assigned the 2026 Bonds the rating of “___” based upon the delivery of 2026 Policy by the 2026 Insurer at the time of issuance of the 2026 Bonds. S&P has also assigned the 2026 Bonds the underlying rating of “___” without respect to the delivery of the 2026 Policy for the 2026 Bonds.

There is no assurance that the criteria required to achieve a rating on the 2026 Bonds will not change during the period that the 2026 Bonds remain outstanding. Any downward revision or withdrawal of such ratings may have an adverse effect on the market price of the 2026 Bonds. Such ratings reflect only the current views and current rating criteria of S&P (which views and rating criteria could change at any time), and an explanation of the significance of such ratings may be obtained from S&P. Generally, a rating agency bases its ratings on the information and materials that are furnished to it (which may include information and material from the Successor Agency that is not included in this Official Statement) and on investigations, studies and assumptions of its own.

Attachment B

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Packet Pg. 1262 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 68 The Successor Agency has covenanted in the Continuing Disclosure Agreement to file notices of any rating changes on the 2026 Bonds on the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/ (“EMMA”). See the caption “—Continuing Disclosure” and Appendix G. Notwithstanding such covenant, information relating to rating changes on the 2026 Bonds may be publicly available from S&P prior to such information being provided to the Successor Agency and prior to the date by which the Successor Agency is obligated to file a notice of rating change. Purchasers of the 2026 Bonds are directed to the rating agencies and their respective websites and official media outlets for the most current ratings with respect to the 2026 Bonds after the initial issuance of the 2026 Bonds.

The Successor Agency makes no representation as to the 2026 Insurer’s creditworthiness and no representation that the 2026 Insurer’s credit rating will be maintained in the future. S&P has previously taken action to downgrade the ratings of certain municipal bond insurers and has published various releases outlining the processes that S&P intends to follow in evaluating the ratings of financial guarantors. For some financial guarantors, the result of such evaluations could be a rating affirmation, a change in rating outlook, a review for downgrade or a downgrade. Potential investors are directed to S&P for additional information on S&P’s evaluations of the financial guaranty industry and individual financial guarantors, including the 2026 Insurer. See the caption “BOND INSURANCE” for further information relating to the 2026 Insurer.

Continuing Disclosure
The Successor Agency will covenant in its continuing disclosure certificate (the “Continuing Disclosure Certificate”) for the benefit of the holders and beneficial owners of the 2026 Bonds to provide, or cause a dissemination agent to provide, to the Municipal Securities Rulemaking Board through EMMA, certain financial information and other operating data on an annual basis no later than April 1 of each calendar year, commencing with the annual report for the fiscal year ended June 30, 2026 due no later than April 1, 2027, and to provide notice of certain enumerated events as required by Securities and Exchange Commission Rule 15c2-12(b)(5) under the Securities Exchange Act of 1934, as amended (the “Rule”). These covenants have been made to assist the Underwriter in complying with the Rule. The form of the Continuing Disclosure Certificate is attached to this Official Statement as Appendix G.

A default under the Continuing Disclosure Certificate is not a default under the Indenture and the sole remedy following a default is an action to compel specific performance by the Successor Agency with the terms of the Continuing Disclosure Certificate.

The Former Agency and the City have each previously entered into continuing disclosure undertakings under the Rule. Within the last five years, neither the City nor the Successor Agency failed to comply with their respective continuing disclosure undertakings under the Rule, except [______].

To assist the Successor Agency to comply with its continuing disclosure undertakings under the Rule, the Successor Agency has appointed the City’s Director of Finance to coordinate, on behalf the Successor Agency, the preparation and filing of annual disclosure reports by the Successor Agency and has adopted policies and procedures related thereto. In addition, the Successor Agency has engaged _____________ (the “Dissemination Agent”) to act as dissemination agent and to assist Attachment B

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Packet Pg. 1263 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure 69 the City’s Director of Finance and other City staff with the preparation of documents and other information to be provided by the Dissemination Agent in the future in accordance with the Rule.

Miscellaneous
All of the preceding summaries of the Indenture, the Bond Law, the Dissolution Act, the Redevelopment Law, other applicable legislation, agreements and other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the Successor Agency for further information in connection therewith.

This Official Statement does not constitute a contract with the purchasers of the 2026 Bonds.

Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized.

The execution and delivery of this Official Statement by the City Manager of the City, on behalf of the Successor Agency, has been duly authorized by the Successor Agency.

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF

SANTA MONICA
By:

City Manager
City of Santa Monica, California
Attachment B

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APPENDIX A

FISCAL CONSULTANT REPORT
Attachment B

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APPENDIX B

SUMMARY CERTAIN PROVISIONS OF THE INDENTURE
The following is a brief summary of certain provisions of the Indenture of Trust (the “Indenture”) authorizing the 2026 Bonds that are not otherwise described in the text of this Official Statement. Such summary is not intended to be definitive, and reference is made to the actual Indenture (copies of which may be obtained from the Trustee) for the complete terms thereof.

Attachment B

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APPENDIX C

FORM OF BOND COUNSEL OPINION
Upon issuance of the 2026 Bonds, Anzel Galvan LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
[Closing Date]
Successor Agency to the Redevelopment Agency
of the City of Santa Monica
Santa Monica, California
Re: $_________ Successor Agency to the Redevelopment Agency of the City of Santa Monica 2026 Tax Allocation Refunding Bonds
Ladies and Gentlemen:

We have acted as Bond Counsel to the Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Successor Agency”) in connection with the issuance by the Successor Agency of $_________ Successor Agency to the Redevelopment Agency of the City of Santa Monica 2026 Tax Allocation Refunding Bonds (the “Bonds”). The Bonds are issued pursuant to the provisions of the Community Redevelopment Law (being Part 1 of Division 24 of the California Health and Safety Code), Part 1.85 (commencing with Section 34170) of Division 24 of the California Health and Safety Code), Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code (the “Bond Law”), and an Indenture of Trust, dated as of April 1, 2026 (the “Indenture”), by and between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Indenture.

In our capacity as Bond Counsel, we have examined such law and such certified proceedings, certifications, opinions and other documents as we have deemed necessary to render this opinion.

Regarding certain questions of law material to our opinion, we have assumed the correctness of certain legal conclusions contained in the written opinion of the General Counsel to the Successor Agency, without undertaking to verify the same by independent investigation.

We have assumed the genuineness of all documents and signatures presented to us, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinion referred to in the preceding paragraph of this opinion.

Furthermore, we have assumed compliance with all covenants and agreements contained in the Bonds and the Indenture.

Based upon our examination of the foregoing, and in reliance thereon, we are of the opinion, under existing law, that:

Attachment B

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Packet Pg. 1267 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure C-2

1. The Bonds constitute the valid and binding limited obligations of the Successor Agency.

2. The Indenture has been duly executed and delivered by, and constitutes the valid and binding agreement of, the Successor Agency. The Indenture creates a valid pledge, to secure the payment of the principal of and interest on the Bonds, of Tax Revenues and the other assets pledged therefor under the Indenture, subject to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth in the Indenture.

3. Interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, interest on the Bonds is taken into account in determining annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in the preceding sentence is subject to the condition that the Successor Agency must comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the date hereof in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The Successor Agency has covenanted to comply with all applicable requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to the date hereof.

4. Interest on the Bonds is exempt from personal income taxation imposed by the State of California.

Except as expressly stated in paragraphs 3 and 4, we express no opinion regarding any tax consequences related to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on, the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds.

Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. The rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture are limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws affecting creditors’ rights, by the application of equitable principles, whether considered at law or in equity, and the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against public agencies in the State of California and laws relating to conflicts of interest.

We express no opinion as to any provision in the Bonds or the Indenture with respect to the indemnification, contribution, liquidated damages, penalty (including any remedy deemed to constitute a penalty), right of set-off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non-exclusivity of remedies, waiver or severability provisions contained therein, nor are we expressing any opinion with respect to the state or quality of title to or interest in any assets described in or as subject to the lien of the Indenture or the accuracy or sufficiency of the description contained therein of, or the remedies available to enforce liens on any assets thereunder.

We also express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and expressly disclaim any duty to Attachment B

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Packet Pg. 1268 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure C-3
advise the owners of the Bonds with respect to matters contained in the Official Statement or other offering material.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result and are not binding on the Internal Revenue Service or any court; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations, opinions, and covenants referenced above. Our engagement with respect to this matter has terminated as of the date hereof.

Respectfully submitted,
Attachment B

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Packet Pg. 1269 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure D-1

APPENDIX D

BOOK-ENTRY ONLY SYSTEM
The information in this Appendix concerning The Depository Trust Company (“DTC”), New York, New York, and DTC’s book-entry system has been obtained from DTC and the Successor Agency takes no responsibility for the completeness or accuracy thereof. The Successor Agency cannot and does not give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the 2026 Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the 2026 Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the 2026 Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the 2026 Bonds. The 2026 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the 2026 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies.

DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2026 Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of Attachment B

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Packet Pg. 1270 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure D-2
their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2026 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the bookentry system for the 2026 Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2026 Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2026 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2026 Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the 2026 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the 2026 Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures.

Under its usual procedures, DTC mails an Omnibus Proxy to the Successor Agency as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Principal, premium (if any), and interest payments on the 2026 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Successor Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee, or the Successor Agency, subject to any statutory or regulatory requirements as may be in effect from time to time. Principal, premium (if any), and interest payments with respect to the 2026 Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Successor Attachment B

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Packet Pg. 1271 Attachment: Attachment B - Preliminary Official Statement (7592 : Adoption of Resolution Approving the POS and Continuing Disclosure D-3
Agency or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as depository with respect to the 2026 Bonds at any time by giving reasonable notice to the Successor Agency or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, certificates representing the 2026 Bonds are required to be printed and delivered.

The Successor Agency may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, representing the 2026 Bonds will be printed and delivered to DTC in accordance with the provisions of the Indenture.

The information in this Appendix concerning DTC and DTC’s book-entry system has been obtained from sources that the Successor Agency believes to be reliable, but the Successor Agency takes no responsibility for the accuracy thereof.

Attachment B

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APPENDIX E

ANNUAL COMPREHENSIVE FINANCE REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2025
Attachment B

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-1

APPENDIXF

STATE DEPARTMENT OF FINANCE LETTER
Attachment B

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APPENDIX G

FORM OF CONTINUING DISCLOSURE CERTIFICATE
Attachment B

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APPENDIX H
SUPPLEMENTAL INFORMATION—

THE CITY OF SANTA MONICA AND COUNTY OF LOS ANGELES
Attachment B

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APPENDIX I

SPECIMEN MUNICIPAL BOND INSURANCE POLICY
Attachment B

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APPENDIX G

FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Successor Agency”) in connection with the issuance by the Successor Agency of its $_____ Successor Agency to the Redevelopment Agency of the City of Santa Monica 2026 Tax Allocation Refunding Bonds (the “Bonds”). The Bonds are being issued pursuant to an Indenture of Trust dated as of [April 1, 2026] (the “Indenture”), between the Successor Agency and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The Successor Agency covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Successor Agency for the benefit of the Holders of the Bonds and to assist the Participating Underwriter in complying with SEC Rule 15c2-12(b)(5).

Section 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the Successor Agency pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” shall mean April 1 of each year.
“Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.
“Dissemination Agent” shall mean __________, or any successor Dissemination Agent designated in writing by the Successor Agency and which has filed with the Successor Agency a written acceptance of such designation.
“Financial Obligation” means (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “Financial Obligation” shall not include municipal securities (as defined in the Securities Exchange Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule.
“Holders” shall mean, while the Bonds are registered in the name of The Depository Trust Company, any applicable participant in its depository system, or the Owner of any Bond for Federal income tax purposes.
“Listed Events” shall mean any of the events listed in Section 5(a) or 5(b) of this Disclosure Certificate.

Agenda Version
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“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the Official Statement dated __________, 2026, relating to the Bonds.
“Participating Underwriter” means Stifel, Nicolaus & Company, Incorporated, the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time.
“SEC” shall mean the Securities and Exchange Commission.

Section 3. Provision of Annual Reports.
(a) The Successor Agency shall, or shall cause the Dissemination Agent to, no later than each Annual Report Date, commencing April 1, 2027, with the report for Fiscal Year 2025-26, provide to the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Successor Agency may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Successor Agency’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate. The Successor Agency shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the Successor Agency hereunder.
(b) Not later than 15 Business Days prior to the Annual Report Date, the Successor Agency shall provide the Annual Report to the Dissemination Agent (if other than the Successor Agency). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the Successor Agency) has not received a copy of the Annual Report, the Dissemination Agent shall contact the Successor Agency to determine if the Successor Agency is in compliance with the previous sentence. If the Successor Agency is unable to provide to MSRB an Annual Report by the date required in subsection (a), the Successor Agency will send a notice to the MSRB. (c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
Attachment C

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(ii) if the Dissemination Agent is other than the Successor Agency, file a report with the Successor Agency certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports. Each Annual Report shall contain or incorporate by reference the following:
(a) The Successor Agency’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Successor Agency’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) The following information with respect to the Successor Agency and the Bonds for the fiscal year to which the Annual Report relates, which information may be provided by its inclusion in the audited financial statements of the Successor Agency for such fiscal year described in subsection (a) above:
(i) Principal amount of Bonds and any Parity Debt outstanding as of June 30 of the most recently-completed fiscal year.
(ii) The information in the following tables of the Official Statement for the current fiscal year: Tables 1, 2, 3, 6 and 7 (except that no projections are required). (iii) The information in Table 4 of the Official Statement for the most recently completed fiscal year.
(iv) The information regarding pending and resolved appeals substantially in the form of Table 5 as of June 30 of the preceding fiscal year for the immediately preceding five fiscal years (except that no projections are required).

The Successor Agency is not required to prepare projections or estimates of Tax Revenues in connection with preparation of the Annual Report. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Successor Agency or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The Successor Agency shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) The Successor Agency shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.

Attachment C

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(4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds.
(7) Modifications to rights of holders of the Bonds, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the Bonds, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the Successor Agency.
(13) The consummation of a merger, consolidation, or acquisition involving the Successor Agency, or the sale of all or substantially all of the assets of the Successor Agency (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.
(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a Financial Obligation of the Successor Agency, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the Successor Agency, any of which affect Bond holders, if material. (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the Successor Agency, any of which reflect financial difficulties.
(b) Upon the occurrence of a Listed Event, the Successor Agency shall, or shall cause the Dissemination Agent (if not the Successor Agency) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. (c) The Successor Agency acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)15 of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds.

The Successor Agency shall cause a notice to be filed as set forth in paragraph (b) above with respect Attachment C

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to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Upon the occurrence of any of these Listed Events, the Successor Agency will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the Successor Agency will cause a notice to be filed as set forth in paragraph (b) above.
(d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Successor Agency in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Successor Agency, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Successor Agency.

Section 6. Termination of Reporting Obligation. The Successor Agency’s obligation under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the maturity of the Bonds, the Successor Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).

Section 7. Dissemination Agent. The Successor Agency may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Successor Agency pursuant to this Disclosure Certificate.

Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Successor Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

Attachment C

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If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the Successor Agency to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Successor Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Successor Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Successor Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

The Successor Agency acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule 10b-5, promulgated under the Securities and Exchange Act of 1934, may apply to the Successor Agency, and that under some circumstances compliance with this Disclosure Certificate, without additional disclosures or other such action, may not fully discharge all duties and obligations of the Successor Agency under such laws.

Section 10. Default. In the event of a failure of the Successor Agency to comply with any provision of this Disclosure Certificate, the sole legal remedy of any Holder or Beneficial Owner of the Bonds or the Participating Underwriter shall be an action to compel performance. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture.

No Bondholder or Beneficial Owner may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the Successor Agency satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the Successor Agency shall have refused to comply therewith within a reasonable time.

Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Successor Agency agrees to indemnify and save the Dissemination Agent, its Attachment C

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officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct.

The obligations of the Successor Agency under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Successor Agency, the Dissemination Agent, the Participating Underwriter and Holders from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 13. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

Dated: ________, 2026 SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF

SANTA MONICA
By:

Director of Finance
City of Santa Monica
AGREED AND ACCEPTED:
____________________,
as Dissemination Agent
By:

Authorized Representative
Attachment C

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Report
City Council Meeting: March 24, 2026
Agenda Item: 11.C
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To: Mayor and City Council
From: Oliver Chi, City Manager, City Manager's Office
Subject: Santa Monica Realignment Plan Update
Recommended Action
Staff recommends that the City Council approve adjustments to the Santa Monica Realignment plan to transition towards operationalizing performance gains as new service delivery standards for public safety renewal, revitalization of key public spaces, and achievement of organizational stability and fiscal balance, via the following direction:

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 findings of categorical exemptions pursuant to Section 15301 (Existing Facilities), Section 15306 (Information Collection), Section 15273 (Rates, Tolls, Fares, and Charges), and Section 15324 (Regulations of Working Conditions) ;

2. Adopt a Resolution revising rates for Downtown Parking Structures 1-9 and Ken Edwards Center, establishing the Fitness and Wellness Business Validation Pilot Program and the School Validation Pilot Program, establishing prorated Residential Parking Permits, and revising parking access card prices (Attachment A);

3. Adopt a Resolution waiving the City of Santa Monica portion of the wastewater capacity fee for restaurant and restaurant expansion projects. (Attachment B);

4. Endorse the conceptual framework for a Retail to Restaurant Activation Program and provide direction regarding eligibility criteria and geographic prioritization for (1) retail-to-restaurant conversion projects and (2) the reactivation of secondgeneration restaurant spaces, with staff conducting additional outreach to architects, restaurant operators, commercial brokers, and other stakeholders to further refine program design prior to implementation;

5. Authorize staff to establish an Economic Development Fund reserve of $3,000,000 from available one-time General Fund resources, with expenditures subject to subsequent Council authorization;

6. Introduce for first reading an ordinance amending Santa Monica Municipal Code (SMMC) Chapter 6.44, to Establish Entertainment Zones in the Downtown core,

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on Portions of the Santa Monica Pier, and Along Portions of Main Street and Montana Avenues (Attachment C);

7. Introduce for First Reading an Ordinance to Provide for Additional Regulations Related to Sitting and Lying in the Public Right-of-Way and Possession of Open Alcoholic Beverage Containers to Coordinate with the Establishment of Entertainment Zones and Upcoming Major Events (Attachment D);

8. Adopt a resolution revising fees, including a permit and license fee waiver for unimproved sidewalk dining and a waiver of the City of Santa Monica portion of the wastewater capacity fee for simple tables and chairs outdoor Dining and Seating on Sidewalks. This is part of establishing the no-cost sidewalk dining program eliminating permit requirements and fees for qualifying basic outdoor dining configurations (Attachment E);

9. Introduce for first reading an ordinance amending SMMC Chapter 9.53, Transportation Demand Management, to Modify Mandatory Average Vehicle Ridership Survey Requirements by modernizing employer survey requirements through a self-attestation model (Attachment F);

10.Adopt a resolution temporarily waiving the City of Santa Monica portion of film permit application fees (Attachment G);

11.Authorize the City Manager to accept two grants from Los Angeles County Metropolitan Transportation Authority (Metro) for Open and Slow Streets Cycle Six (FIFA World Cup) and Seven (Olympic Games) awarded in the amount of $250,000 and $500,000, respectively, in the City Manager’s Office, and to accept all grant renewals;

12.Authorize the City Manager to negotiate and execute a first modification to agreement # 5247 in the amount of $250,000 with Revel Republic to create and implement artwork and / or produce and implement public programs and events in Santa Monica as a Production Partner for the Recreation and Arts Department.

This will result in a 5-year amended agreement with a new total amount not to exceed $500,000, with future year funding contingent on Council budget approval (Attachment H);

13.Approve all personnel changes (Attachment I), approve revenue adjustments, and appropriate expenditure budget adjustments for FY 2025-26 and FY 2026-27 (Attachment J), requires 5 votes;

14.Adopt a Resolution establishing new classifications and adopting salary rates for various listed positions (Attachment K);

15.Authorize staff to modify the Remote Work Program, establishing the In-Person Workplace Equity Benefit and establishing the Opt-Out Employee Support Program;

16.Adopt a Resolution accepting tentative agreements and authorizing the City Manager to execute Side Letters of Agreement with Local 1109 and POA, authorizing revised Executive Pay Plan and revised Confidential Unrepresented Employees Pay Plan equity updates (Attachment L);

17.Introduce for first reading the attached ordinance to amend Santa Monica Municipal Code Chapter 2.04 relating to Civil Service appointment and promotional rules (Attachment M);

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18.Authorize the City Manager to execute a contract with Segal Co. to conduct an enterprise-wide classification and compensation study. This recommended award is made as an exception to the competitive bidding process pursuant to SMMC Section 2.24.250 (c) and is for a total amount not to exceed $525,000, over a four-year period, with future year funding contingent on Council budget approval (Attachment N);

19.Receive an update and provide direction on potential regulations related to using vehicles for living quarters and rental of recreational vehicles to be used as living quarters in the public right-of-way (“vanlording”) and safe parking sites;

20.Authorize the City Manager to negotiate and execute a Memorandum of Understanding with Metro to enable the Santa Monica Police Department to conduct enforcement actions on Metro train platforms within the City;

21.Direct staff to conduct housing-first system of care community outreach; and

22.Provide direction to study the nonprofit housing development entity.

Executive Summary
On October 28, 2025, the City Council adopted the Santa Monica Realignment Plan, a comprehensive strategy aimed at restoring public safety, revitalizing key civic spaces, and rebuilding organizational strength, all in an effort to grow economic activity and return the City to fiscal balance.

The plan organized a series of interlocking programs and projects through five strategic priorities, funded through the use of $60 million in reserves previously allocated by the City Council. Through the Realignment Plan, the City also identified a series of new revenue measures and cost containment strategies that were designed to achieve a structurally balanced General Fund operating budget by FY 2027-28.

Since being authorized, staff has been working with a sense of urgency to execute the Realignment Plan, and the results to date have been significant. Consider just a few of the outcomes that have been delivered by the City.
• Part I crime is down 12.5%.
• The Police Department has achieved full sworn staffing for the first time in over 20 years.

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• The City Attorney’s Criminal Unit is now filing on approximately 88% of all legally fileable cases, up from 65-70% previously.
• Building plan check performance has improved to 92.5% on-time for first round reviews, an improvement of more than 40 percentage points in just four months. • All library branches are open for the first time since 2020.

Of particular note, as these operational enhancements have been advanced, the City Council has also adopted several new programmatic revenue measures and operational cost saving enhancements, such that when taking into account the options that exist with regard to the Joint Use Agreement with the Santa Monica Malibu Unified School District (SMMUSD), the City’s General Fund is now projected to achieve a structurally balanced budget without the use of reserves by FY 2026-27 – a full year ahead of the original plan.

These results demonstrate that the Realignment framework is sound and producing measurable outcomes.

At the same time, during the City’s most recent Executive Team retreat held this past January, staff has identified a critical insight: the progress achieved to date must be operationalized – embedded into the daily systems, structures, and culture of the City – to ensure that enhanced service levels being delivered now become the permanent standard for Santa Monica, rather than just a temporary surge. This involves expanding our Realignment strategic priorities of enhanced public safety, infrastructure improvements, and enhanced maintenance approach beyond just the City’s Downtown core, and to Santa Monica’s other commercial corridors and neighborhoods.

Operationalizing the Realignment Plan and establishing a new standard of organizational outputs across the City has been identified as critically important to City

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Council’s ongoing direction that we achieve a renaissance for Santa Monica. Because while the City has realized improvements on foundational elements related to public safety, clean streets, and organizational health, the private sector reinvestment needed to sustain long-term economic recovery in Santa Monica has not yet materialized at the scale required to achieve a revitalization of the local economy.

Accordingly, this report has been prepared to provide details that outline our current Realignment Plan accomplishments, deliver an update on the 2025 public safety gains that have been achieved, and to outline the City’s current budgetary status.

Further, to operationalize the Realignment Plan gains that we have achieved, staff is also recommending a series of targeted adjustments organized around four key themes.

1. Instituting a series of organizational adjustments, including departmental restructuring, establishing workplace scheduling standards, and making associated personnel adjustments.

2. Establishing a series of new economic development tools and strategies to catalyze private sector activity.

3. Adopting a series of new public safety enhancement policies.

4. Exploring new housing strategies to better address housing insecurity and homelessness related considerations.

I. Realignment Plan Accomplishments
Since the City Council adopted the Realignment Plan in October 2025, staff has moved aggressively to implement the programs, projects, and strategies included as part of the overarching effort. The following provides an overview of key accomplishments, organized by the five established Realignment strategic priorities.

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1. Safe Neighborhoods and Clean Streets
Public safety and the physical condition of our civic spaces were identified as the foundational priorities of the Realignment Plan. Progress across both areas has been substantial.
• Safe Neighborhoods
o The Police Department, under the leadership of Chief Darrick Jacob, has fully implemented the Realignment deployment model.

The reformatted Downtown Services Unit now consistently deploys 8-10 officers per day within the Downtown core, supported by dedicated bicycle patrols, multi-use vehicle teams working the beach and parking lots, and weekly coordination with the Homeless Liaison Program team.
o The Downtown Police Substation at Santa Monica Place Mall began construction on March 6, with a target completion date of late March 2026.
o A major milestone was reached when the Police Department achieved full sworn staffing for the first time in over 20 years. With the City’s approval of 10 over-hire positions, the department has added new officers and stabilized staffing levels across patrol and specialized units. The department currently has 23 open background investigations and has received 391 new applications since January 2026.
o The Crime Impact Team (CIT) is now operating with a specialized team of 4 officers and 1 sergeant, collaborating with the Criminal Investigations Division to target residential burglary crews, robbery crews, and organized retail theft groups. CIT regularly organizes organized retail theft operations in the Downtown footprint utilizing

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resources from the SMART center, CID, and DSU. These
intelligence-led deployments have resulted in 8 felony arrests related to organized retail theft.
o Traffic enforcement has expanded significantly with the addition of 2 full-time motor officers. The department has also secured the OTS STEP Grant, which supports operations focused on
motorcycle safety, bicycle and pedestrian safety, distracted driving, and impaired driving enforcement.
o On the prosecution side, the City Attorney’s Criminal Unit has successfully hired a new Legal Assistant and a Senior Legal Analyst as authorized under the Realignment Plan. The unit has seen a 40% increase in case submissions in the last quarter of 2025, compared to the same period in 2024. Upon implementation of the Realignment deployment model, the City Attorney’s Office has filed on approximately 88% of all fileable cases from October through December 2025, a significant improvement over the approximate 65-70% filing rate based on total submissions seen previously.
• Clean Streets
o The Downtown capital improvement program associated with the Realignment Plan is being is executing across all program areas. o Urban Forestry and Green Infrastructure
▪ 603 trees have been pruned in the Downtown core, with the 2 nd and 4th Street Ficus corridors complete, and 5th Street scheduled for completion in coming weeks.
▪ All 37 new 36-inch box trees have been planted in vacant wells to restore canopy and pedestrian comfort.

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▪ The tree-well regrading program is 20% complete, with work ongoing across 403 wells.
o Streetscape and Public Realm Enhancements
▪ The repair of 7,000 square feet of sidewalks in the
Downtown is advancing.
▪ Crosswalk repainting at 8 major intersections is in
contracting, with work anticipated to start in mid-March. ▪ Accessible Pedestrian Signal buttons have been ordered and installation is being scheduled.
▪ A safety barrier for Parking Structure 4 has been designed and submitted for plan review.
▪ New trash can replacements are being piloted, with threestream and single-stream container systems installed on the Promenade on February 5 for testing in coordination with DTSM.
o Civic Identity and Placemaking Investments
▪ The City has completed the installation of over 300 California native plants at gateway locations on Lincoln, 4th, and 5th Streets, with drip irrigation installed for recycled water connection.
▪ The 4th Street median has received native plantings, with signage in coordination.
▪ The City Hall fountain has been fully repaired, and flood damage to the Tongva Park fountain is being assessed.
▪ The Caltrans Delegated Maintenance Agreement has been activated, with the City having collected 5.17 tons of debris to date.
▪ The City’s Homeless Support Team (HoST) continues to
expand its impact, collecting a total of 744.68 tons of debris since October 2023. Of note, collection volumes have

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increased exponentially since adoption of the Realignment Plan – 436.02 tons of debris were removed in 2025, a 71.7% increase in activity compared with 2024 (253.97 tons
removed). Also, the HoST team removed 54.69 tons in
2023.
o Downtown Event Readiness
▪ This work includes the engagement of a consultant team to develop standardized traffic control plans for signature events, with anticipated completion by July 2026.
▪ Anti-vehicle barrier options for the Farmers Market and Arizona Avenue events are under evaluation, along with
options for Main Street.
o Parks and Beachside Maintenance Improvements
▪ The City has completed door and hardware upgrades at
beach restrooms 16 and 17, in addition to repainting those facilities.
▪ A new Tymco 600 beach sweeper has been ordered, with
expected delivery in December 2026.
o Citywide BID Improvements
▪ In addition to the Downtown capital program, the City has allocated $500,000 in targeted improvements across
commercial corridors in partnership with our Business
Improvement Districts.

2. Activating Economic Opportunity and Growth
Economic revitalization efforts have progressed on multiple fronts, though broader macroeconomic conditions continue to present challenges.

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• All Santa Monica Public Library locations are now open at least three days per week for the first time since 2020, with the Ocean Park and Fairview branches reopening in January 2026.
o The Realignment plan contemplates expanding to four days of full service at Fairview, Ocean Park, and Montana Branch Libraries starting July 1, 2026.
• Permitting modernization has produced notable early results. With the addition of contract support and interim process refinements, first-round plan check performance improved to 92.5% on-time by December 2025, an improvement of more than 40 percentage points in just four months. o The Archistar AI Plan Check pilot program is being rolled out, with contract approval with Archistar set for March 2026.
o In addition, staff continues to work to deploy the new Clariti land management system and the new permitting portal will further enhance service delivery. Of note, staff has flagged the Clariti permit system implementation process as in need of special attention, given technical issues that have been observed with our implementation partner.
• The Entertainment Zone on the Third Street Promenade – the first of its kind in Southern California, enabled by California Senate Bill 969 – launched with a soft rollout in June 2025 and has been operational on Fridays through Sundays.
o Participating businesses have reported positive impacts on foot traffic and customer activity.
• Staff has engaged event production partners to develop a coherent cultural activation framework for Downtown that will help identify and implement programming strategies intended to increase foot traffic, dwell time, and positive public perception.

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• Progress is being made towards launching a series of local activation events in Santa Monica that are tied to the World Cup in June / July 2026. • A large-scale music festival in partnership with Goldenvoice is advancing toward a licensing agreement (likely ready in April for City Council consideration), with the event scheduled for September 2026. • The City continues to make progress on licensing agreements to facilitate a broadcasting partnership event with ESPN in 2027.
• Multiple agreements are being matured with nations involved in the 2028 Olympics to locate hospitality / event facilities in Santa Monica. • Reduced outdoor dining program fees took effect in December 2025, lowering charges to $1 per square foot per month for sidewalk dining and $2 per square foot for parklets, while waiving portions of permit costs. o These adjustments have helped retain existing operators and attract new applicants, with 59 restaurants currently participating citywide.

3. Developing Affordable, Livable, and Secure Housing
Housing stability programs have advanced with foundational policy work and expanded enforcement capacity.
• The vacant property registration ordinances has been adopted by the City Council. The vacant property program will provide additional enforcement tools for the approximately 170 vacant properties in the City, with 30-40 of those in substantial disrepair.

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• The City’s rent registry ordinance has been adopted and will require registration of the City’s approximately 15,000 non-rent-controlled housing units, providing the City with critical data on market-rate rental housing conditions.
• Two new code enforcement officers have been hired, with initial training underway. When the full team of 10 is deployed, the City will have code enforcement coverage seven days per week, with the capacity to handle complaint-based inquiries while also proactively addressing vacant properties, residential habitability issues, and unpermitted work. • Staff has continued to advance a focus on housing development projects in the Downtown, prioritizing housing opportunities that exist on City owned land in the area. Further, planning staff has begun policy assessments 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

4. Creating Organizational Capacity
Organizational capacity investments are producing measurable results across the City operation.
• Public Works recruitments authorized under the Realignment Plan are substantially complete.
o The Downtown District Maintenance Team has been recruited and deployed for seven-day coverage including evenings.
o The expanded Homeless Support Team recruitment is complete with deployment expected in the next few months.
o Groundskeeping positions are filling across Tongva Park, Palisades Park, and beach maintenance operations.

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o A second tree pruning crew is now active, with 680 trees pruned in January alone, targeting at least 7,000 trees pruned by June 30. • The Ambulance Operator program launched successfully in February, with the City taking over ambulance operations from McCormick. • The Fire Department has also deployed a second Advanced Provider Unit, which delivers advanced medical assessment and care in the field to serve vulnerable populations, reduces 9-1-1 system strain and Emergency Department overcrowding, and creates a more efficient and cost-effective EMS system.

5. Building Organizational Health
The One SaMo organizational culture framework has been established and is being embedded across the City operation.
• The values of Humility, Integrity, Motivation, and Care are increasingly reflected in how teams operate, how staff are recognized, and how the organization approaches its work. Staff recognition programs have been implemented to identify and celebrate individuals and teams that exemplify the One SaMo values in their daily work.
• The non-sworn equity adjustments authorized in October have been implemented, representing a meaningful step toward creating more equitable compensation structures across the organization.

In addition, a Realignment Scorecard dashboard has been developed to provide the public with ongoing, transparent access to the City’s progress against its Realignment Plan commitments, per City Council. The scorecard is being finalized and will be accessible on the City’s website within the next few weeks, with an initial screenshot of the coming dashboard available below.

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II. 2025 Public Safety Update
Given the centrality of public safety to the Realignment Plan, this update report has been structured to provide a detailed review of Police Department operational outcomes for both calendar year 2025 and for the initial months following full deployment of the Realignment model.

SMPD Year-End Results (2024 to 2025)
During 2025, the Santa Monica Police Department shifted toward a more proactive, prevention-focused policing model emphasizing visible patrol, early intervention, and consistent presence in locations generating repeated calls for service. This approach,

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led by Chief Jacob, aligned the City’s public safety priorities and set the foundation for the Realignment deployment changes implemented in late-2025.

Key year-end results include:
• Part I crime (representing violent offenses and burglary) declined 12.5% (or by 599 crimes), from 4,793 in 2024 to 4,194 in 2025.
• Total calls for service decreased from 128,820 in 2024 to 124,848 in 2025, a reduction of 3.1%.
• Total arrests increased from 2,804 in 2024 to 3,446 in 2025, an increase of

22.9%.
• Traffic citations increased from 2,835 in 2024 to 5,723 in 2025, an increase of 102%.
• Officer-initiated activity increased by 7.5% between 2024 and 2025, as proactive enforcement moved from 40% of total workload in 2024 up to 43% in 2025.

Overall, during 2025, SMPD officers conducted more field contacts, investigative stops, and preventative enforcement actions, addressing violations during patrol rather than after escalation. Reductions in burglary and robbery contributed to the overall decline in serious crime, while officers conducted over 1,400 drug and narcotic-related enforcement actions during proactive patrol activity.

Post-Realignment Deployment (December 2025 — February 2026) As impressive as the full year 2025 public safety results have been, the postRealignment Plan activities in the Police Department demonstrate an even higher level of public safety output. Beginning in September 2025, SMPD began shifting deployment toward increased patrol presence in areas generating repeated calls for service. By December 2025, improved staffing levels allowed the deployment plan to

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be fully implemented. The deployment shift was guided by Chief Jacob’s four operational priorities, which are:

1. Reducing crime

2. Addressing homelessness impacts

3. Improving traffic safety

4. Strengthening community engagement
The initial results following full Realignment Plan implementation are significant.

First, traffic enforcement activity accelerated sharply. • Traffic stops increased substantially
o From 429 in December 2024 to 1,270 in December 2025 (196% increase) o From 1,094 in January 2025 to 1,554 in January 2026 (42% increase) o From 501 in February 2025 to 1,110 in February 2026 (122% increase) • Monthly traffic citations increased substantially
o Averaged 1,200 during the December 2025 through February 2026 period, compared to 480 per month during 2025 (150% increase)
o The December 2025 – February 2026 average of 1,200 monthly traffic citations compares favorably against 2024 levels also, when the City averaged 240 traffic citations per month (400% increase).

In addition, proactive drug enforcement intensified as increased field contacts led to more drug-related investigations.
• Drug-related investigations rose from 61 in December 2024 to 133 in December 2025 (118% increase).

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• Investigations increased from 65 in January 2025 to 175 in January 2026 (169% increase).
• Finally, investigations increased from 54 in February 2025 to 139 in February 2026 (157% increase).

Finally, weekly arrest activity in the Police Department has also been climbing steadily. • SMPD averaged 81 arrests per week in December, increasing to 94 per week in January (16% month-over-month increase), and 104 per week in February (11% month-over-month increase).

Taken together, these public safety indicators reflect a fundamental change in how the Police Department is operating. With outstanding leadership, stable staffing, and consistent deployment, officers are identifying issues earlier and addressing them during the initial encounter instead of returning repeatedly after escalation.

This approach supports the Realignment Plan by aligning police activity with housing, human services, public works, and regional partners so that recurring problems are addressed through coordinated action rather than isolated response. The longer-term objective is stabilization – fewer repeat calls, more consistent service delivery, and a clearer understanding among residents and businesses of what to expect from daily public safety operations.

III. Budget Update
At the time of adoption of the Realignment Plan, the City was facing significant fiscal headwinds, for both the City’s ongoing General Fund operating budget (an estimated $29.6 million operating deficit in FY 2026-27) and the City’s unobligated free cash position (which had decreased from $435.8 million in 2018, to approximately $155 million in non-restricted reserves today – with approximately $94 million of that amount unobligated in 2025).

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As part of the Realignment Plan, an overarching fiscal strategy was developed to institute new internal expenditure controls, secure new programmatic revenues, and account for the expiration of the Joint Use Agreement with the SMMUSD in 2027.

Taken together, those measures resulted in a projected fiscal model whereby the City would run a modest deficit in FY 2025-26 (~$1 million) and FY 2026-27 (~$597K), before achieving a net positive General Fund operating position of $3.4 million in FY 2027-28.

The chart below outlines the projected City’s General Fund budget position when the Realignment Plan was first adopted in 2025.

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 Significant Progress Made Towards Achieving Fiscal Stabilization Since adoption of the Realignment Plan in 2025, the City has been focused on implementing the key revenue measures and cost containment strategies identified as part of the program, and we have made progress more quickly than initially anticipated.

The following outline highlights the key fiscal / budgetary initiatives have been achieved during the past several months.
• Vacancy rate and hiring management practices are generating approximately $6 million per year in General Fund cost savings.

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• Optimizing investment earnings income has resulted in new annual revenues of approximately $1.0 million per year for the General Fund. • User fee adjustments and the credit card convenience fee program are generating approximately $1.8 million per year more than previously anticipated in combined new General Fund revenues.
• The digital signage program, adopted in December 2025, is projected to generate approximately $4.5 million per year in new General Fund revenues starting in Q1-2027.
• The parking rate update, implemented in January 2026, is projected to generate approximately $8.5 million per year in new General Fund revenues. • The Ambulance Operator program, which was fully launched in February 2026, is generating approximately $7 million per year in new General Fund revenues.

In total, the new program funding identified above represents approximately $28.8 million in new General Fund revenues that have been secured. Combined with continued prudent General Fund expenditure management, and taking into account the options that exist with the Joint Use Agreement with SMMUSD (an approximate $12 million per year contribution that currently is set to expire in 2027, and which can be extended if a proposed citizens’ initiative parcel tax measure qualifies for the ballot and is approved by the voters), the City’s General Fund is now projected to run a surplus of $5.4 million in FY 2026-27. A summary of our projected General Fund position through FY 2029-30 is outlined below:
• FY 2025-26: The City is projected to have a balanced General Fund budget, relying on the strategic use of reserves as planned in the Realignment Plan.

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• FY 2026-27: The City is projected to achieve a General Fund surplus of approximately $5.4 million, meaning that the full use of reserves as originally envisioned will not be necessary. Further, by the end of FY 2026-27, the City’s budgetary forecast identifies a structurally balanced General Fund. • FY 2027-28: The General Fund is projected to run a slight surplus of $3.3 million, as Realignment Plan revenue measures achieve full annualization. • FY 2028-29: The surplus is projected to grow further to approximately $10.8 million, reflecting full revenue maturation and the benefits of global events including the Super Bowl and the approach of the 2028 Olympics. • FY 2029-30: The operating budget is projected to return to run a modest surplus of $5.1 million as revenues return to a more typical non-Olympic year.

The following chart outlines the City’s current revised budgetary projections, based on approval of new Realignment Plan fiscal programs during the past several months.

FY 2025-26
Revised Budget
FY 2026-27
Approved
Budget Plan
Projection
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
REVENUES $ 476,298,558 $ 515,591,303 $ 544,598,597 $ 569,149,658 $ 581,467,367 Base Revenues $ 471,067,010 $ 490,037,101 $ 507,477,395 $ 529,294,769 $ 543,781,407 Realignment Plan Revenues $ 5,231,548 $ 25,554,202 $ 37,121,202 $ 39,854,890 $ 37,685,960 OPERATING EXPENDITURES $ (487,594,685) $ (514,926,127) $ (520,327,412) $ (537,114,227) $ (555,163,150) Base Expenditures $ (479,394,864) $ (497,755,130) $ (502,399,234) $ (518,492,270) $ (535,901,666) Realignment Plan Expenditures $ (8,199,821) $ (17,170,998) $ (17,928,178) $ (18,621,956) $ (19,261,484) CAPITAL EXPENDITURES $ (22,529,829) $ (21,426,552) $ (21,003,690) $ (21,189,404) $ (21,189,404) Base Expenditures $ (16,080,829) $ (21,426,552) $ (21,003,690) $ (21,189,404) $ (21,189,404) Realignment Plan Expenditures $ (6,449,000) $ - $ - $ - $ - ASSIGNED RESERVE BALANCE, PLUS REVENUES, MINUS EXPENDITURES $ (33,825,956) $ (20,761,376) $ 3,267,494 $ 10,846,027 $ 5,114,813 USE OF RESERVES $ 33,825,956 $ 26,174,044
NET GF STRUCTURAL POSITION $ - $ 5,412,668 $ 3,267,494 $ 10,846,027 $ 5,114,813 Additional Financial Strength Considerations
Beyond the core operating budget projections, several additional factors materially strengthen the City’s fiscal position.

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• The City is in active discussions to finalize major event licensing agreements (including FIFA World Cup activations, the Goldenvoice music festival, an ESPN broadcasting partnership, and Olympic hospitality arrangements) that are expected to generate significant direct revenues not reflected in the projections presented in this report.
• Further, the City’s available cash position remains strong at approximately $94 million in unobligated General Fund cash on hand.
• Also, the City Attorney’s Office has made meaningful progress in reducing the City’s exposure to contingent liabilities.

Taken together – a structurally balanced operating budget, anticipated event-driven revenues, a strong cash position, and an improved liability profile – these factors collectively create a level of fiscal stability that the City has not been able to achieved for multiple years, and provides the City Council with an environment where real options now exist for investing in the economic revitalization strategies needed to achieve a renaissance for Santa Monica. A more detailed discussion of these considerations is provided in the Budgetary Impacts section of this report.

IV. Operationalizing the Realignment – Executive Team Retreat Findings In January 2026, the City’s Executive Team convened its second quarterly off-site planning retreat to assess what has been working, what needs attention, and what should be prioritized to sustain the momentum generated by the Realignment Plan.

The retreat produced an important realization. The ET identified that there is a palpable energy, excitement, and hope throughout the City organization – new staff have been hired, new expectations are being established, and new processes are being deployed across every department. And through the work of our people, it is clear that our Realignment Plan is delivering real results.

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But the Executive Team also recognized a key risk – that the progress we have achieved to date could prove to be temporary if we do not now engage the hard work of embedding all of our new expectations into the daily systems, structures, and culture of our organization.

Enhanced service levels must become the permanent standard for Santa Monica – not a project to execute via a Realignment Plan, but rather, simply the way we do things here at the City.

This means that the work ahead of us is different from the work that has been completed to date. Launching programs and deploying resources was the first challenge. The next challenge is converting those programs into institutional practice, to ensure that what we are building endures beyond the urgency and the moment that created it.

To address these considerations, the Executive Team identified six global priorities that form the operational infrastructure needed to sustain Realignment Plan gains:

1. Remote Work Normalization. The ET identified a need to create a consistent, Citywide standard for remote work that prioritizes in-person collaboration, leadership presence, and organizational equity. Approximately 70% of the City’s workforce – public safety personnel, field crews, and front-line staff – work inperson every day. The current remote work program in the City has grown inconsistent across departments, creating multiple different employee experiences within the same organization.

2. Citywide Staff Training. The ET identified an urgent need to relaunch a comprehensive training program, with particular emphasis on frontline supervisor development. Effective supervision is the single most important lever for translating organizational values into daily practice, and the City’s training infrastructure requires renewed investment.

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3. Staff Engagement. Building organizational health requires consistent, intentional opportunities for staff connection and recognition. The ET identified a need to create regular Citywide engagement opportunities that build organically on existing events and reinforce the One SaMo culture.

4. Data Framework. To support continuous improvement, the City needs a rational and useful Citywide data framework, one that measures what matters, avoids data collection as busywork, and facilitates information sharing across departments. To begin, a Realignment Plan Scorecard has been established, and a workplan effort to leverage that work into a broader Citywide Scorecard is now underway.

5. Departmental Work Plans. The ET identified a need for a more structured framework through which departments articulate priorities, track progress, and engage in continuous improvement.

6. Habitability Response Framework. Current dispersed response protocols for habitability issues are producing sub-optimal outcomes and create a significant level of service delivery duplication. The ET identified a need to develop a centralized framework for addressing habitability concerns, including potential regulatory clarification and enhanced neighborhood preservation efforts.

These six priorities represent the operational infrastructure needed to convert Realignment Plan progress into permanent organizational capacity. Staff has been working to develop a series of recommended adjustments, which are outlined in the following section of this report, to address these priorities through targeted organizational restructuring, updated workplace standards, and strategic personnel investments.

Critically, operationalizing the Realignment Plan is not only an internal organizational imperative. It is also the essential precondition for economic revitalization. The City’s ability to attract and retain private sector investment depends on demonstrating

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consistently – every day – that Santa Monica delivers exceptional municipal services, maintains its public spaces to the highest standard, and operates as a responsive, reliable partner for the business community. The adjustments recommended in this report are designed to make that demonstration permanent.

V. Recommended Adjustments
Based on the progress achieved, the fiscal position of the City, and the operational priorities identified through the ET retreat, staff has been working to develop a series of recommended adjustments to establish the Realignment Plan project as the base level operating standard for the City, and to create an intentional investment of resources into spurring an economic revitalization – both of which will be necessary to achieve a renaissance in Santa Monica.

These recommended adjustments are organized into four categories, as follows:

1. Instituting Organizational Adjustments

2. Establishing New Economic Development Tools

3. Adopting New Public Safety Policies

4. Exploring New Housing & Homeless Response Strategies

1. Instituting Organizational Adjustments
The Realignment Plan launched new programs and deployed new resources across the City operation. And during the past few months, as staff has engaged the use of these new programs and resources, we have identified a series of additional organizational adjustments that are recommended for implementation, in order to sustain the programs we have established on a permanent basis. The adjustments include departmental restructuring, establishing new workplace scheduling standards, and instituting associated personnel / labor agreement adjustments.

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Departmental Restructuring
• Public Works Department Reorganization
o The most significant organizational adjustment recommended in this update is a comprehensive restructuring of the Public Works Department.

This second phase of realignment builds on the resources allocated previously and seeks to maximize their impact through selective restructuring of the department, aligning like-minded services, gaining operational efficiencies, and ensuring the City’s priority areas outside of the Downtown core consistently meet the highest standards of maintenance and appearance.
o The reorganization includes four major components.
▪ First, the creation of a new Downtown and Beach Maintenance Division that merges the existing Downtown maintenance team with the beach maintenance team under a unified, mission-driven structure. This division will ensure a renewed focus on Downtown and beach areas while also expanding enhanced cleaning services – including regular power washing, hand and broom cleaning, and enhanced sidewalk maintenance – to the City’s other key commercial corridors, including Montana Avenue, Wilshire Boulevard, Main Street, Pico Boulevard, and Ocean Park
Boulevard. This expansion will be supported through a partnership with Chrysalis, extending the enhanced maintenance model that has been successfully deployed in the Downtown to all of the City’s commercial districts.
▪ Second, the absorption of the Mobility Division from the Department of Transportation into Public Works Engineering. This
consolidation places the planning, design, construction, and maintenance of the City’s public right-of-way under a single

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department, enabling more streamlined delivery of roadway safety improvements and better alignment of capital project planning with ongoing maintenance operations.
▪ Third, the transfer of the City’s 311 Customer Support operation from the City Manager’s Office to Public Works. Approximately 70% of all 311 tickets are for Public Works-related matters. Placing the customer service function within the department that handles the vast majority of service requests will improve coordination, accelerate response times, and enable better alignment with upcoming software system improvements.
▪ Fourth, the reorganization of the Landscape and Parks operation into a consolidated unit, along with restructured reporting lines across multiple divisions to improve supervisory coverage and accountability.
o This reorganization adds a total of 12 positions across the department, including expanded administrative and supervisory support, additional technical staffing to address deferred maintenance and accelerate capital project delivery, and expanded community-facing support for customer service and public engagement.
o The reorganization also includes dedicated funding for contracted cleaning services along commercial corridors and enhanced custodial and landscaping services at libraries as operating hours increase. • Police Department Adjustments
o To operationalize the public safety gains documented in this report, the following additions to the Police Department are recommended.

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▪ A Police Captain position to oversee the Real-Time Crime Center (RTCC) and Dispatch / OEM operation. The RTCC is the
intelligence backbone of the proactive policing model that is driving the crime reduction results documented in this report. Dedicating a Captain-level position to this function establishes it as a core operational responsibility with permanent senior leadership, while also balancing out oversight responsibilities across the rest of the PD command structure.
▪ Two Lead Public Safety Dispatcher positions to support the increased workload generated by the surge in officer-initiated activity since the Realignment deployment model was
implemented.
▪ A Public Services Administrator to provide dedicated program management for the Public Safety Officers deployed across the City, including at the Promenade, Palisades Park, Tongva Park, Reed Park, and Downtown parking garages.
▪ Additional part-time crossing guards to provide crossing guard services at schools and key intersections, supporting the traffic safety priority and the City’s Vision Zero commitment.
▪ Two Animal Care Attendants to maintain service quality at the City’s animal shelter operation.
• Housing and Human Services – Rent Registry Launch
o To implement the rent registry program authorized under the Realignment Plan, a small investment of staffing is needed, as follows.

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▪ Three analyst positions are recommended in the Housing and Human Services Department: a Senior Administrative Analyst, a Data Analyst, and an Assistant Administrative Analyst.
▪ These positions will be responsible for launching the program and beginning the collection and analysis of data for the City’s approximately 15,000 non-rent-controlled housing units. • Human Resources – Training and Engagement
o In order to support our Citywide objective of enhancing training and employee engagement, an investment of resources will be needed in the Human Resources Department.
▪ Two positions are recommended – a Human Resources Analyst and a Human Resources Technician – to support the relaunch of Citywide training programs and employee engagement initiatives identified as priorities during the ET retreat.
▪ These positions will be essential to relaunching the Santa Monica Institute training program, developing targeted training for frontline supervisors, and coordinating regular staff engagement activities.

The recommendation also includes funding for a Learning Management System to support Citywide training delivery.

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• Community Development Department
o To support permitting improvements and to streamline our code enforcement operation – both of which play an important role in the economic recovery of the City – an investment of resources into the Community Development Department is recommended.
▪ To create better work flow in the Code Enforcement operation, two positions – a Code Enforcement Supervisor and a Lead Code Enforcement Officer – are recommended.
▪ In addition, to support and improve counter and permitting operations, a Customer Services Assistant and a Staff Assistant III are recommended.
• Economic Development Division Restructure
o To support an enhanced focus on economic development activities, a restructuring of the Economic Development Division is being proposed. ▪ The Economic Development Division is recommended for
reorganization into three focused divisions: Land Development, Real Property Management, and Business Attraction and
Retention. This structure aligns the division directly with the three functions most critical to closing the gap between the City’s foundational Realignment investments and the private sector reinvestment needed to sustain long-term economic recovery. ▪ The restructure also adds three positions to the economic development operation, including an Economic Development Administrator, an Administrative Analyst, and a Staff Assistant.

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▪ Two positions are also proposed for addition to strengthen the City’s major events capacity: an Administrative Analyst and an Event Coordinator.
• Other Departmental Adjustments
o There are a series of other more limited adjustments proposed across several other departments, as follows.
▪ City Attorney’s Office – the addition of a Deputy City Attorney, a Principal Legal Analyst, and a Senior Legal Analyst are recommended to facilitate operational improvements in the CAO by increasing capacity to engage in consumer protection
investigations; respond to requests for public records, which have seen a large increase in volume and complexity; and to more efficiently defend the City in complex litigation matters via in-house resources.
▪ Library Department – the addition of a Library Program Specialist and a part-time Library Assistant III are recommended to facilitate expanding services at all branch libraries to a minimum of 4-days per week of in-person service.
▪ Fire Department – the addition of 1 firefighter / paramedic to fully operationalize 7-day a week service for our APU program is recommended.
▪ Recreation & Arts Department – To support community event programming and online program registration efforts, the addition of a Recreation & Arts Administrator and a Community Recreation Systems Coordinator are recommended.

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▪ Department of Transportation – With the new parking validation programs being developed, adding a new Parking Permits
Assistant is recommended.

Remote Work Program Modifications
One of the six global priorities identified during the Executive Team retreat was the need to create a consistent, Citywide standard for remote work. Approximately 70% of the City’s workforce work in-person every day. Over the past several years, implementation of the City’s remote work program has grown inconsistent across departments, creating meaningfully different employee experiences within the same organization. Also, many of the City’s remote-eligible staff are managers and supervisors, and the ET identified that managing and caring for people well requires leaders to be present with their teams for mentoring, problem-solving, and the daily work of building trust.

To address these considerations – while also preserving meaningful remote work flexibility – the Executive Team has been working to develop a Remote Work Program modification proposal organized around a core principle: One SaMo means one set of expectations for all.

Under the proposed modification, the program would work as follows. • All Executive Team members will immediately transition to working a fully inperson schedule. • During the next several months, Department Heads will identify each position within their department as remote-eligible or non-remote-eligible, with Human Resources reviewing those determinations to ensure consistency across departments and alignment with operational needs.

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• Then, starting at some point in Q4-2026 / Q1-2027, remote-eligible employees will follow a standardized schedule of Tuesday through Thursday in-person, with Monday and Friday as remote work-days.
o Employees will also have an annual opportunity to modify their in-person or remote selection under the proposed program design.
o Department Heads will develop counter coverage and facility operating hour plans based on their specific service delivery needs. ▪ In recognition that some operations require additional scheduling flexibility, Department Heads may also authorize a 4/10 compressed work schedule for employees where operational circumstances support it.
▪ For public counter operations, Department Heads will have discretion to modify the remote work schedule so that participating employees who elect remote work may receive up to two remote days per week, depending on operational needs.
• To create equity and recognize the commitment of employees who are physically present every day, the modification includes an In-Person Workplace Equity Benefit, providing 8 hours per month of non-cashable and non-bankable leave time for those employees working a fully in-person schedule. • For employees who determine that the new remote work structure is incompatible with their life circumstances, the program design includes an OptOut Employee Support Program. o This program will be made available to all full-time employees Citywide with at least 6 months of active employment, and provides 6 months of paid Administrative Leave following an irrevocable voluntary resignation.

The City has been in active discussions with all bargaining units regarding this proposed modification, and if approved, staff will spend the next several months working to finalize program details with our labor group partners. In addition, staff is concurrently

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working to address office space, parking, and commuter support considerations associated with an increased mid-week in-person presence.

Personnel / Labor Agreement Adjustments
With the proposed Remote Work Program adjustments, coupled with an identification of internal equity adjustments that were identified subsequent to the adoption of the Realignment Plan (where public safety bargaining groups were not considered when instituting fully-paid medical coverage for non-sworn staff) and benefit alignment between bargaining groups, this update completes personnel and labor agreement adjustments across several work groups, as follows.
• Public Safety Labor Adjustments
o Staff recommends extending fully-paid medical insurance coverage to sworn police employees represented by the POA, who are now the only group to not have fully paid medical costs in the City. If adopted, this action would complete the equity commitment across all employee groups, ensuring that every employee of the City receives this foundational benefit.
o Members of Local 1109 previously gave up a 2% wage adjustment in order to secure fully-paid medical benefits, and it is recommended that an adjustment be made to compensate for that prior trade off. In addition, Local 1109 has agreed to modify overtime rules in an effort to create greater equity amongst how OT assignments are distributed, subject to ensuring that the adjustment creates no overall fiscal impact for either their members or for the City. That corresponding adjustment is also incorporated into this plan.
o To align employee benefits across bargaining unit groups that have interconnected benefits, it is recommended that a longevity pay and revised education incentive be instituted to address compaction between

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EPP participants and their subordinate employees. Currently qualifying public safety bargaining unit members receive a 14% longevity pay benefit. Accordingly, longevity pay is recommended to be set at 4% of salary for miscellaneous employees and at 11% for public safety employees who qualify in EPP. Also, public safety bargaining unit members receive a 12.8% for educational incentive. To address that issue, the education incentive for qualifying members is recommended to be set at 5% for all EPP participants. Finally, the Chief of Police is recommended to receive a $6,000 / year uniform allowance. • Other Personnel Adjustments
o During the last year’s negotiation process, Confidential Unrepresented Employees (CUE) were not provided with benefit levels commensurate with other labor groups. In light of that fact, staff recommends increasing the confidentiality premium for CUE employees to 3% of base salary. o Realigning salary levels for several Department Head positions is also recommended to ensure compensation parity between our Library, Communications, Recreation & Arts, Community Development, and City Clerk positions.
o Adopting clean-up ordinance language to align the City’s municipal code regulations with Charter required Civil Service provisions is recommended.
o Finally, staff recommends that the City launch a Citywide Class & Comp study by authorizing a contract with Segal Company.

2. Establishing New Economic Development Strategies
The Realignment Plan’s foundational investments in public safety, clean streets, and organizational capacity were designed to create the conditions necessary for renewed

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private sector investment in Santa Monica. The public safety data and capital improvement progress documented in this report demonstrate that those conditions are being established.

However, macroeconomic headwinds – including a challenging restaurant and hospitality environment, continued effects from the 2025 Palisades Fire, and reduced international tourism – have meant that creating favorable conditions alone has not yet been sufficient to catalyze the level of private investment the City needs to achieve a revitalization of the local economy.

For instance, HDL Q2-2025 data illustrates these challenges acutely. Restaurant and hotel sales declined 4.1% year over year, compared with a 1.4% decline across all sectors. Quick service restaurants experienced a 13.9% decline, fine dining declined

9.1%, and fast casual declined 8.2%. Operators are managing declining sales alongside rising costs for labor, food, and services.

To address this gap, staff has been assessing policy direction from the City Council to develop a coordinated economic development strategy. That assessment has resulted in the creation of a series of interconnected programs that span regulatory reform, direct financial incentives, active business attraction efforts, and strategic investments in major event programming. An overview of the program details included as part of this economic development strategy are outlined below.
• Economic Development Fund
o Staff recommends the establishment of a $3 million Economic Development Fund from available one-time General Fund reserves previously allocated by the City Council as part of the original Realignment Plan.
o This fund is envisioned to be used for the following programmatic activities:

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▪ Support restaurant attraction and tenant improvement incentives for new restaurants opening in the Downtown core and on the Promenade.
▪ Business attraction efforts for unique uses that would drive foot traffic Downtown.
▪ General business attraction and retention activities, including attendance at industry events such as ICSC.
▪ Seeding capital for the Rose Parade float program as directed by City Council.
▪ Support capital renewal efforts for the Promenade.
o Depending on the scale of the identified project, use of these funds would be brought back for City Council review and approval.
• Simple Tables and Chairs Sidewalk Dining Fee Waiver Program o Building on the outdoor dining fee reductions implemented in December 2025, staff recommends eliminating City fees and permit requirements for outdoor dining setups consisting solely of simple tables and chairs. o This change, modeled on a similar approach implemented in San Francisco, would eliminate permit requirements and associated fees for qualifying setups, reduce administrative time and costs for small businesses, and allow restaurant operators to focus resources on service, stabilization, and growth.
o 19 current simple-setup operators would see their monthly license fees eliminated, and up to 40 existing licensed sidewalk dining businesses could opt into the free program by transitioning to simple configurations.

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• Wastewater Fee Waiver for New Restaurants and Restaurant Expansion Projects
o In response to City Council direction, staff recommends adopting a resolution to waive the City portion of the wastewater capacity fee for restaurant and restaurant expansion projects.
o The City’s wastewater capacity fee currently costs new restaurant and hospitality uses approximately $1,400 per seat for buildings that have not previously been used for restaurant purposes or existing restaurants who add net new seats. For a 50-seat restaurant, this represents $70,000 in City fees before a single meal is served.
o Waiving this fee removes a significant financial barrier to restaurants that are essential to filling citywide vacancies and generating foot traffic, sales tax revenue, and community vibrancy.
o Restaurants will be required though to continue to pay the City of Los Angeles Hyperion wastewater fee of approximately $400 per seat. • Retail to Restaurant Activation Program
o In response to City Council direction, staff has been working to develop a Retail to Restaurant Activation Program to help accelerate activation of vacant and underutilized commercial spaces.
▪ The program will be developed in consultation with architects and restaurant operators to determine the areas of highest need, and to calibrate the level of City investment necessary to incentivize participation in the program.

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o The program would support both reactivation of dormant secondgeneration restaurant spaces and conversion of vacant retail spaces to restaurant or hospitality uses.
o While program details are still being developed, elements of the initiative are envisioned to include:
▪ Some type of forgivable loan option to help offset key start-up costs for qualified operators.
▪ Participation would occur through a competitive application process.
▪ Qualifying applicants would also receive no-cost case management support, as well as an expedited, coordinated City review process to help reduce start-up timelines and soft costs associated with restaurant activation.
• Entertainment Zone Expansion and Public Spaces Regulations o The Entertainment Zone on the Third Street Promenade – the first of its kind in Southern California – launched in June 2025 and has provided a meaningful new activation tool for the Promenade.
o Staff recommends expanding the Entertainment Zone program through four actions.
▪ Extending the Entertainment Zone to cover the entire Downtown core, providing greater programming flexibility for events and activations beyond the Promenade.
▪ Authorizing an event-based Entertainment Zone for the Santa Monica Pier, allowing alcohol consumption within designated boundaries during approved events.
▪ Extending Entertainment Zone authority to the Main Street Business Improvement District.

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▪ Extending event-based Entertainment Zone authority to the Montana Avenue Business Improvement District.
o This tiered approach provides each commercial district with a meaningful economic development tool tailored to its unique character. o In conjunction with the Entertainment Zone expansion, and in anticipation of upcoming major events, staff also recommends the concurrent adoption of updated Public Spaces Regulations to ensure that the expanded zones operate safely and effectively. The proposed ordinance would amend two sections of the Santa Monica Municipal Code.
▪ First, the prohibition against sitting and lying in the public right-ofway – currently applicable to the Third Street Promenade and the Downtown – would be extended to the commercially-zoned portions of Main Street and Montana Avenue, consistent with the planned expansion of Entertainment Zones in those areas.
• Like the Promenade, Main Street and Montana Avenue are both pedestrian-serving commercial districts with sustained high foot traffic. However, because these corridors are not pedestrian malls, obstruction of pedestrian access routes increases the likelihood that pedestrians will divert into travel lanes, creating exposure to vehicular conflict.
▪ Second, the City’s open container regulations – currently limited to parks and beaches – would be expanded to apply to all public property, including streets, alleyways, sidewalks, parkways, public buildings, public lavatories, parking facilities, parks, and beaches. • The existing exemption for areas covered by a City-issued license, permit, or lease would be maintained, and a new exemption would be added for areas within an established Entertainment Zone.

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• This expansion aligns the City’s open container framework with State law, which authorizes local jurisdictions to prohibit open containers on public property, while ensuring that Entertainment Zones continue to operate as intended.
• Downtown Parking Rate Adjustments & Validation Programs o The parking rate restructuring approved by Council has been implemented across the City, with the exception of Downtown Parking Structures 1-9 and the Ken Edwards Center.
o Following additional stakeholder feedback, staff recommends modified rates for these structures that extend the initial parking period to 90 minutes at $1, compared to the originally approved 30 minutes free.

Upper-tier rates would remain unchanged.
o In addition, staff recommends the establishment of two 12-month pilot validation programs.
▪ The Fitness and Wellness Business Validation Pilot Program provides qualifying Downtown businesses with $0.25 per validation – a 75% discount – with validations above 4,000 per month provided free.
▪ The School Validation Pilot Program provides free 30-minute validations for student drop-off and pick-up at three Downtown schools.
o In addition, staff is also recommending development of a future spendbased validation program for retail and restaurant businesses in partnership with DTSM.

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• Transportation Demand Management Program Modernization o The City’s TDM program has been identified by the business community as a significant source of regulatory friction.
o To reduce regulatory burdens and promote business friendliness, consistent with direction provided by Council in adopting the Realignment Plan in October 2025, staff recommends adoption of certain amendments to the Transportation Demand Management ordinance.
o The amendments would modify the submission requirement of the Average Vehicle Ridership survey for regulated employers with 30-249 employees, shifting it from an annual requirement to an optional annual submission as part of their annual Emission Reduction Plans. ▪ Staff would return to Council in fall 2028 to assess the efficacy of these program changes.
o Of note, employers with 250 or more employees must adhere to AQMD’s guidelines and requirements, as the City does not have sole regulatory authority over that threshold.
o Staff is also seeking authority from Council to create an alternative compliance option for employers with fewer than 250 employees, modeled after AQMD’s existing Air Quality Investment Program.
▪ Under this concept, funds collected from regulated employers who choose this option would be deposited in a restricted account and used by the City to support projects and initiatives aimed at further reducing emissions within the City.
o If approved, the following details summarize the proposed employer TDM annual compliance framework:

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▪ Employers w/ 10-29 Employees: Not subject to the Employer TDM ordinance
▪ Employers w/ 30-249 Employees: Submittal of annual employee vehicle survey will be optional, with an alternative compliance option being developed modeled after AQMD’s AQIP program whereby a fee is paid in lieu of survey results.
▪ Employers w/ 250+ Employees: Regulated employers may comply through submission of annual compliance documents to either the City or SCAQMD. Compliance can currently be achieved via AQMD’s AQIP program.
o This regulatory reform is an important signal to the business community that the City is serious about reducing unnecessary burdens on employers operating in Santa Monica.
• Temporary Waiver of City Film Permit Application Fees o The film industry in California is experiencing a period of significant disruption, with declining production activity and job losses being felt across the region.
o As part of the City’s broader economic development efforts, staff recommends temporarily waiving the City’s film permit application fees. o This waiver would apply only to the City’s application fee, which ranges from $350 to $700. Other costs associated with filming – including location fees, public safety staffing, and contractor fees paid to Film Santa Monica – would remain unchanged.
o The financial impact to the City is relatively small, but the waiver serves as a signal that Santa Monica is actively working to attract and retain film production during a challenging period for the industry.

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o Of note, other jurisdictions are implementing similar incentives, including the City of Los Angeles (which has introduced measures to reduce permitting barriers) and Culver City (which is currently offering free parking for production vehicles).
• Major Event Programming Investments
o To capitalize on the unprecedented concentration of major global events coming to the Los Angeles region over the next several years, staff recommends two actions to ensure the City is positioned to maximize the economic benefits of these events.
o First, staff recommends that the City Council authorize the acceptance of two grants from the Los Angeles County Metropolitan Transportation Authority for Open and Slow Streets events.
▪ $250,000 for a Cycle Six event associated with the FIFA World Cup ▪ $500,000 for a Cycle Seven event associated with the Olympic Games.
▪ Acceptance of these grants will allow Finance to open the grant accounts and keep the projects moving on schedule.
o Second, staff recommends authorizing a first modification to the City’s agreement with Revel Republic, increasing the Recreation and Arts Department’s Production Partner contractual services authority from $250,000 to $500,000.
▪ This increased authority will support the planned five-week FIFA World Cup 2026 Downtown Santa Monica activation running from June 11 through July 19, which the Major Events Team has developed in partnership with Recreation and Arts and DTSM. ▪ The activation will deliver a series of free and low-cost, familyfriendly programming tied to the World Cup, intended to foster

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community engagement, support local businesses, and create inclusive public experiences in the Downtown area.

3. Adopting New Public Safety Policies
The Realignment Plan’s public safety strategy has produced significant results – Part I crime down 12.5%, proactive officer-initiated activity increasing across every metric, and a fully staffed police department for the first time in over two decades. These gains reflect the deployment of new resources and a fundamentally different operational philosophy within the Police Department.

To build on this progress, staff recommends two additional public safety policy actions that address specific challenges the City continues to face: the impacts of end-of-line Metro rail service on the Downtown core, and the growing concerns associated with vanlording and vehicle habitation on City streets.

Metro Memorandum of Understanding
Since the opening of the Expo line, the City has enjoyed the benefits of expanded transit access, however, being at the end-of-line has also created real public safety impacts.

Metro’s Tap to Exit program has not meaningfully mitigated these impacts locally, as high late-night fare evasion rates, continued end-of-line displacement, and the absence of consistent platform enforcement have limited its effectiveness. As a result, the Santa Monica Police Department continues to respond to the downstream effects of Metro operations without enforcement authority on the platforms themselves, reinforcing a reactive rather than preventative public safety posture in the Downtown core.

To address that issue, staff has been engaged in discussions with Metro Police Chief Bill Scott to develop a Memorandum of Understanding that would enable SMPD to conduct enforcement actions on Metro train platforms within the City.

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In the assessment of staff, this MOU will have a meaningful impact in addressing the public safety concerns that have persisted since the opening of the Expo line, allowing the City to enjoy the benefits of transit service while effectively mitigating the negative public safety effects. Staff recommends that the City Council authorize the City Manager to negotiate and execute this agreement.

Vehicle Habitation, Safe Parking, & Vanlording Regulations When adopting the Realignment Plan, the City Council directed staff to explore an ordinance that would regulate vehicle habitation and prohibit the practice of renting out recreational vehicles for use as living or sleeping quarters on public streets, a practice commonly known as “vanlording.” Council further directed that the ordinance be tailored to avoid creating an ineffectual cycle of issuing citations, and instead establish a regulatory framework that assists those living in their vehicles with a pathway toward more sustainable and stable housing options.

This direction was provided in recognition of the vehicle habitation and vanlording related impacts that have emerged as a growing challenge in Santa Monica.

According to the 2025 Los Angeles Homeless Services Authority Homeless Count, the City has a homeless population of 812, with 10% (approximately 84 individuals across 23 cars, 52 vans, and 9 RVs) living in vehicles. This represents a 38% increase from 2024, when 61 individuals were identified as living in vehicles. Accordingly, this growth has also been accompanied by an increase in neighborhood safety complaints, public health concerns, and sanitation issues.

In response to City Council direction, staff has developed an ordinance that responds to this direction through two principal regulatory actions.

First, the ordinance prohibits the use of any vehicle for living quarters on any street or public property. The ordinance identifies specific evidence of vehicle habitation, including furniture set up in or around the vehicle such as chairs,

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tables, umbrellas, or portable cooking equipment, or evidence of human waste in or around the vehicle. The ordinance makes clear that evidence of vehicle habitation does not include the use of a vehicle for amelioration of sickness or other temporary physical conditions causing an inability to operate the vehicle.

Consistent with the City’s longstanding approach to its prohibition against camping in public spaces, the vehicle habitation prohibition would also be implemented through progressive enforcement focused first on engagement and connection to services.

This progressive approach contemplates an option for individuals to relocate to a City-sponsored Safe Parking site. If the Safe Parking option is not utilized, every effort will then be made to provide additional resources to help individuals transition to more appropriate living conditions, including referrals to SamoBridge, Project Homecoming, the City’s Therapeutic Transport Van, the Salvation Army, and the City’s network of regional service partners. Enforcement of criminal penalties would be a last resort, pursued only after services have been repeatedly offered and refused.

Second, the ordinance addresses vanlording, a growing concern across California in which individuals rent out recreational vehicles for use as living or sleeping quarters on public streets. This practice is unlicensed and unregulated, often involving unregistered, poorly maintained, and inadequately insured vehicles that create substandard housing conditions.

Unlike traditional landlords, vanlords are not subject to laws requiring the upkeep of rental housing, and those who rent from them are not afforded the protections of tenant rights or basic habitability standards. The practice frequently exploits low-income and unhoused residents.

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To address these concerns, the ordinance prohibits the advertisement, rental, leasing, or lending of recreational vehicles to be used for living or sleeping quarters within the public right-of-way.

While the Safe Parking and Vanlording ordinances are complete, staff is recommending that we hold off on moving this effort forward until we can secure a final Safe Parking site. Of note, staff has been in discussions, and was able to secure, 4 dedicated spaces at a safe parking site approximately 15 minutes from Downtown Santa Monica, just over the City’s eastern border, for the exclusive use of people living in their vehicles in Santa Monica, with the potential to increase capacity as necessary. However, neighboring jurisdictions subsequently intervened and created a circumstance that now prevents the City from securing those Safe Parking spots. Accordingly, staff has engaged a process to seek other Safe Parking options, and we intend to return to Council for consideration of the ordinance once Safe Parking spots are secured.

4. Exploring New Housing & Homeless Response Strategies The Realignment Plan identified Developing Affordable, Livable, and Secure Housing for All as one of the City’s five strategic priorities. Progress to date has included adoption of the vacant property registration and rent registry ordinances, expansion of code enforcement capacity, and a continued focus on housing development opportunities in the Downtown core. These actions represent important foundational work in preserving existing housing stock and creating the policy infrastructure for future production.

However, the City’s housing challenges extend beyond preservation and regulation.

Santa Monica needs to expand the production of affordable and mixed-income housing units, and we need to fundamentally redesign how we deliver homeless services so that our investments produce lasting housing outcomes rather than temporary shelter placements.

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The recommendations in this section address both of these imperatives, proposing a new approach to homeless response built around a housing-first system of care, and exploring a new vehicle for accelerating affordable housing production to supplement the City’s existing tools.

Housing-First System of Care – Community Outreach
The Realignment Plan identified the need to relocate the SamoShel homeless shelter / Access Center out of Downtown and reimagine the City’s sheltering model. Since October, staff has been developing a comprehensive proposal to transition from the current Access Center and SamoShel model to a Citycontrolled, housing-first system of care.

The current model, while it has served the community well for many years, provides the City with access to shelter capacity only, without City-controlled interim housing or permanent housing pathways. In practical terms, this means the City funds the impacts of homelessness without controlling the outcomes.

Conditions have also materially shifted since the model was established, including Metro end-of-line proximity effects, enhanced behavioral health acuity among the population being served, and increased calls for service and public disorder concentrated in the City’s primary Downtown commercial core.

The system of care being developed by staff envisions a fundamentally different approach, one where the City has access to and control over infrastructure at each step of a housing-first continuum: targeted shelter matched to population and acuity, interim housing that provides stabilization and step-down care, and permanent housing pathways that deliver durable exits from homelessness.

This model would also prioritize the Santa Monica Priority Population for local placements and create a managed pipeline that facilitates movement from shelter through stabilization to permanent housing. If successfully implemented, the model would transition the City from a position of managing homelessness

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impacts to one where we are managing housing outcomes, with clear accountability at every step of the continuum.

This is a significant undertaking that will affect neighborhoods, service providers, and the individuals and families the system is designed to serve. Accordingly, before finalizing any agreements or operational changes, staff recommends launching a comprehensive community engagement process. This engagement plan will include internal staff and commission engagement, coordination with homeless service providers, input from public safety departments, town hall meetings, and targeted outreach to neighborhoods located adjacent to proposed service sites. The engagement period is proposed for March through May 2026, with a report back to City Council in June 2026 that incorporates community feedback and presents refined proposals for formal Council consideration.

Nonprofit Housing Development Entity
The housing-first system of care described above addresses how the City delivers homeless services. But shelter and interim housing alone do not end homelessness – permanent housing is ultimately what provides durable exits, reduces long-term shelter demand, and breaks the cycle of individuals returning to the streets.

To build the permanent housing leg of the continuum, and to more broadly expand the City’s capacity to produce affordable and mixed-income housing, staff recommends that the City Council direct staff to study the creation of a Cityaligned nonprofit housing development entity.

Today, the primary vehicle for affordable housing production in Santa Monica – as in most California cities – is the Low-Income Housing Tax Credit (LIHTC) program. While LIHTC has been an essential tool and will continue to play a central role, it has well-documented limitations: the competitive allocation process is slow and uncertain, development timelines are lengthy, and the program’s income-targeting requirements limit flexibility in serving the full range

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of housing needs in the community. As a result, the City’s ability to directly produce housing at the pace and scale needed to support both its Housing Element goals and its system-of-care objectives is constrained.

A City-aligned nonprofit housing entity would supplement these existing programs by creating an additional production vehicle with several distinct advantages. The entity could secure land, finance and construct housing, and own and operate permanent housing assets – providing the City with direct control over the development pipeline. Also, by accessing tax-exempt financing and traditional bank lending based on rent rolls and income projections, the entity could achieve faster development timelines than tax-credit-only projects.

Separation of development risk from City operations would protect the General Fund while enabling a scalable, portfolio-based approach to housing production over time.

Perhaps most importantly, a nonprofit model would provide the City with flexibility that the traditional tax credit model does not offer. Rather than being limited to the income bands prescribed by federal programs, the entity could develop mixed-income housing serving a range of needs – from very low income through moderate and workforce levels – with custom income targeting aligned to City priorities. This flexibility would also allow the City to align housing placements with system-of-care priorities, so that permanent housing becomes an active tool in the continuum, supporting shelter exits, interim housing step-downs, and prevention of returns to homelessness.

This approach reflects a universalist model of housing delivery, one that serves a broad cross-section of the population rather than focusing exclusively on the lowest income tiers. While this model is more prevalent in international settings, instructive examples exist domestically, including the Housing Opportunities Commission of Montgomery County, Maryland, and the Atlanta Urban Development Corporation, both of which have demonstrated that municipal11.C Packet Pg. 1334
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aligned nonprofit entities can effectively develop and manage mixed-income housing portfolios at scale.

If authorized, staff will return to City Council with findings and recommendations regarding the feasibility, structure, and governance of such an entity at a future date.

VI. Budgetary Impacts
Staff has assessed the budgetary impacts associated with implementing the organizational adjustments, economic development tools, public safety policies, and new housing and homeless response strategies identified in this report. All of the identified adjustments can be instituted while maintaining a structurally balanced General Fund operating budget.

After accounting for all of the new operating expenditures, budgetary adjustments, and spending plan offsets, the net annual budgetary impact of the recommended adjustments is as follows:
• FY 2025-26: approximately $1.4 million
• FY 2026-27: approximately $3.9 million (inclusive of the Economic Recovery Reserve allocation)
• FY 2027-28: approximately $3.2 million
• FY 2028-29: approximately $3.9 million
• FY 2029-30: approximately $3.9 million
These numbers include operating cost adjustments; new revenues identified from the Realignment Plan; and all expenses associated with departmental reorganizations, new

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personnel, remote work / MOU / equity adjustments, and capital investments outlined in this report.

When those annual costs are factored into the existing budget, the all-in fiscal picture is as follows:
• FY 2025-26: Balanced, utilizing reserves as anticipated under the original Realignment Plan.
• FY 2026-27: Net structural position of approximately $13,000 (essentially breakeven after funding all recommended investments and the $3 million Economic Recovery Reserve)
• FY 2027-28: Net positive structural position of approximately $28,000. • FY 2028-29: Surplus of approximately $6.9 million, as revenue measures achieve full maturation.
• FY 2029-30: Surplus of approximately $1.2 million.

The chart below outlines our updated General Fund budgetary forecast, inclusive of all of the recommendations included in this report.

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FY 2025-26
Revised Budget
FY 2026-27
Approved
Budget Plan
Projection
FY 2027-28
Projection
FY 2028-29
Projection
FY 2029-30
REVENUES $ 477,098,558 $ 517,391,303 $ 546,386,097 $ 571,349,346 $ 583,653,921 Base Revenues $ 471,067,010 $ 490,037,101 $ 507,477,395 $ 529,294,769 $ 543,781,407 Realignment Plan Revenues $ 6,031,548 $ 27,354,202 $ 38,908,702 $ 42,054,578 $ 39,872,514 OPERATING EXPENDITURES $ (489,865,071) $ (525,163,166) $ (531,019,969) $ (548,339,357) $ (566,391,831) Base Expenditures $ (479,394,864) $ (497,755,130) $ (502,399,234) $ (518,492,270) $ (535,901,666) Realignment Plan Expenditures $ (10,470,207) $ (27,408,037) $ (28,620,735) $ (29,847,086) $ (30,490,165) CAPITAL EXPENDITURES $ (22,500,415) $ (13,947,843) $ (15,338,270) $ (16,098,146) $ (16,098,146) Base Expenditures $ (16,080,829) $ (21,426,552) $ (21,003,690) $ (21,189,404) $ (21,189,404) Realignment Plan Expenditures $ (6,419,586) $ 7,478,709 $ 5,665,420 $ 5,091,258 $ 5,091,258 ASSIGNED RESERVE BALANCE, PLUS REVENUES, MINUS EXPENDITURES $ (35,266,928) $ (21,719,706) $ 27,857 $ 6,911,843 $ 1,163,944 USE OF RESERVES $ 35,266,928 $ 24,733,072
NEW ECONOMIC RECOVERY RESERVE $ (3,000,000)
NET GF STRUCTURAL POSITION $ - $ 13,366 $ 27,857 $ 6,911,843 $ 1,163,944 Of note, the fiscal projections outlined above reflect the City’s core operating budget only, which consists of revenues and expenditures associated with ongoing City operations and the programmatic measures achieved through the Realignment Plan.

Those projections do not account for several additional factors that materially strengthen the City’s overall fiscal position.

First, the City is in active discussions to finalize a series of major event licensing agreements that are expected to generate significant direct revenues over the next several years. These include licensing fees associated with FIFA World Cup activation events in 2026; the Goldenvoice music festival scheduled for September 2026; a broadcasting partnership arrangement with ESPN anticipated for 2027; and Olympic hospitality and event facility agreements associated with the 2028 Games.

While these agreements are at various stages of negotiation and finalization, the combined direct revenue potential is conservatively anticipated to be significant, and none of those revenues are included in the fiscal projections presented in this report.

In addition, the City’s overall available cash-on-hand position remains strong. The City currently maintains approximately $94 million in available and unobligated General Fund cash on hand. While the City’s free cash reserves have declined materially from

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their peak of $435.8 million in 2018, our current position remains strong relative to our budgetary needs, and provides the City with a stable foundation from which to operate.

Further, given the advancement disposition and development of land owned by the City in the Downtown core, we can reasonably anticipate the further replenishment of our cash position within the next 24 – 36 months.

It is also important to note that the City has made meaningful progress towards reducing our exposure to contingent liabilities. Given the inherent uncertainties involved in litigation, the City’s risk levels may necessarily fluctuate, but through the deployment of new strategies by the City Attorney’s Office during the past several months, the City has achieved measurable improvements in its contingent liability environment, with the overall trajectory representing a material strengthening of the City’s risk profile.

When taken together, these factors – a structurally balanced operating budget, significant additional event-driven revenues anticipated over the next several years, a strong unobligated cash position, and meaningful improvement in the City’s contingent liability exposure – combine to create a new level of fiscal stability for Santa Monica, which is an operating environment that the City has not been able to achieve for multiple years.

VII. The Path Forward
Six months ago, the City Council adopted the Realignment Plan as a turning point for Santa Monica – a comprehensive strategy to restore safety, rebuild economic capacity, and re-establish long-term fiscal health. This update demonstrates that the strategy is working.

Crime is down 12.5%. The Police Department is at full sworn staffing for the first time in over two decades. The City Attorney is filing on nearly 90% of all fileable cases. Our Downtown capital program is executing. Our libraries are open. Our plan check turnaround has improved by more than 40 percentage points. And our General Fund is projected to achieve structural balance by the end of FY 2026-27.

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These results were not accidental. They reflect the focused effort of a City organization that is rebuilding itself around a shared set of values and a common purpose. The One SaMo framework – grounded in the behavioral values of Humility, Integrity, Motivation, and Care – is not a slogan. It is increasingly the way that our organization operates every day.

The adjustments recommended in this report are designed to ensure that the progress we have made become a permanent standard for City performance. The organizational restructuring embeds enhanced service levels into the daily operations of our departments. The Remote Work Program adjustments create both flexibility for our staff and a consistent environment in which our people can lead, collaborate, and deliver results together. The economic development investments create the tools needed to actively attract the private sector reinvestment that will sustain long-term recovery. The workforce adjustments honor our commitment to taking care of the people who serves this City. And the housing strategy represents a transformative shift from managing homelessness impacts to managing housing outcomes.

We are not yet where we need to be. But the foundation is being built – carefully, deliberately, and with a clear sense of purpose. As we transition from this period of realignment towards revitalization, this City has the talent, the resources, and the determination to lead the way towards a true renaissance for Santa Monica.

VIII. Environmental Review
The actions recommended in this report are exempt from CEQA pursuant to Section 15061(3), Section 15301 (Existing Facilities), Section 15306 (Information Collection), Section 15273 (Rates, Tolls, Fares, and Charges), and Section 15324 (Regulations of Working Conditions) of the CEQA Guidelines. The actions for a conceptual framework for a Retail to Restaurant Activation Program, the establishment of an Economic Development Fund Balance Reserve, the acceptance of grant funds, first modification of agreement with Revel Republic for arts programming and events, and modification to the TDM Ordinance, adoption of ordinance regulating public spaces, and MOU with Metro are exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense

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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”. These actions are administrative and programmatic in nature and would not result in physical impacts on the environment.

The resolutions to revise parking rates/fees, waive the Santa Monica portion of wastewater capacity fees for restaurants and restaurant expansions and outdoor dining, waive license fees and permit requirements for unimproved outdoor dining, and waive a portion of film permit fees are exempt pursuant to Section 15273 (Rates, Tolls, Fares, and Charges), which states that CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges. The ordinance to establish a new Entertainment Zones in Downtown, Santa Monica Pier, Montana Avenue, and Main Street is exempt pursuant to Section 15301 (Existing Facilities), which exempts 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 new EZs would not increase development or expand the existing use, but rather, would authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way within the EZ. These provisions of the ordinance would not result in adverse environmental impacts. The actions for budget adjustments and personnel authorizations, reclassification of positions, labor agreements, and revision to the remote work program are exempt pursuant to Section 15324 (Regulations of Working Conditions), which exempts actions to regulate employee wages, hours, or working conditions. The actions to conduct housing-first system of care community outreach and to study a nonprofit housing development entity are exempt pursuant to Section 15306 (Information Collection), which exempts basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource.

RECOMMENDATION

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Staff recommends that the City Council approve adjustments to the Santa Monica Realignment plan as outlined in this report, to transition towards operationalizing performance gains as new service delivery standards for public safety renewal, revitalization of key public spaces, and achievement of organizational stability and fiscal balance.

Prepared By: Oliver Chi, City Manager
Approved Forwarded to Council
Attachments:

A. Attachment A - Parking Rates Resolution
B. Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion)
C. Attachment C - Ordinance to Amend Entertainment Zone Code D. Attachment D - Ordinance to Amend Public Spaces Regulations E. Attachment E - Resolution Waiving Certain Fees for Outdoor Dining and Seating on Sidewalks
F. Attachment F - Ordinance to Amend Transportation Demand Management Code G. Attachment G - Resolution To Waive Certain Film Permit Application Fees H. Attachment H - Revel Republic Contract #5247,OAKS and Levine Forms I. Attachment I - Personnel Changes
J. Attachment J - Budget Changes
K. Attachment K - Salary Resolution
L. Attachment L - Resolution Accepting Tentative Agreements (1109, POA, EPP, CUE)
M. Attachment M - Ordinance to Amend Civil Service Appointment and Promotional Rules
N. Attachment N - Segal Co. Levine and Oaks Initiative Forms O. Written Comments
P. PowerPoint Presentation

11.C
Packet Pg. 1341

ATTACHMENT A
1 City Council Meeting: March 24, 2026 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MONICA ESTABLISHING PARKING RATES AND PERMIT

FEES FOR ALL CITY PARKING FACILITIES AND RESOURCES
WHEREAS, the City of Santa Monica (the “City”) operates parking facilities in the Downtown area, including Parking Structures 1, 2, and 4 through 10, the Ken Edwards Center parking structure, the Main Library parking structure and surface lot, the Civic Center Parking Structure and the Civic Auditorium parking lot; parking lots in the Main Street area; parking lots in the Downtown area, parking lots in the Mid-City area along the Wilshire Boulevard corridor; parking lot at the Santa Monica Pier; and parking lots at the beaches; and
WHEREAS, City-operated parking facilities serve visitors to areas throughout the City, including those who are working, doing business, and attending community events; and
WHEREAS, the City has designated preferential parking zones throughout the City with parking restrictions for each zone in order to manage parking availability for residents within each zone; and
WHEREAS, the City has designated on-street parking spaces with parking meters in order to regulate and manage traffic circulation and parking availability; and WHEREAS, the City Council of the City of Santa Monica (the “City Council”) is authorized to set parking rates and permit fees, by resolution, for the City’s parking

11.C.a
Packet Pg. 1342 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
2 facilities, preferential parking zones, and on-street parking meters and pay machines; and WHEREAS, the location of and rates for parking directly impact traffic and parking circulation patterns, traffic congestion and other traffic hazards, and parking availability; and
WHEREAS, adjusting the parking rates and permit fees as a means of regulating the use of all City parking facilities and resources distributes the parking load more evenly between residents and visitors, and maximizes the utility and use of all City parking facilities and resources, thereby making parking easier, reducing traffic hazards and congestion, and promoting the public convenience, safety, and welfare; and WHEREAS, on July 10, 2012, the City Council endorsed parking rate and permit fee changes recommended in the Walker Parking Study and further adopted Resolution Number 10694 (CCS) (“Resolution No. 10694”) establishing parking rates and permit fees for all City parking facilities and resources; and
WHEREAS, on February 12, 2013, the City Council adopted Resolution Number 10732 (CCS) (“Resolution No. 10732”), adjusting certain rates for the Main Library parking structure; and
WHEREAS, on or about April 9, 2013, the City Council adopted Resolution Number 10743 (CCS) (“Resolution No. 10743”), establishing new parking rates in Downtown parking structures at the lowest price generally available to Downtown residents for those who are disabled and living in multi-family buildings with one hundred percent (100%) affordable housing units when no onsite parking is available; and

11.C.a
Packet Pg. 1343 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
3 WHEREAS, on June 25, 2013, the City Council adopted Resolution Number 10755 (CCS) (“Resolution No. 10755”), revising the City’s preferential parking permit rates; and WHEREAS, on January 27, 2015, the City Council adopted Resolution Number 10860 (CCS) (“Resolution No. 10860”), revising the parking rates and permit fees for City parking facilities and resources as set forth in Resolution No. 10755 in order to: establish fees for one-day visitor permits and visitor permits that are valid for six months or less in preferential parking zones; include exemptions from and reductions to rates for vehicles with disabled placards that were previously established but inadvertently omitted from Resolution No. 10755; authorize the waiver of parking fees for City meetings and cosponsored events, and events at Santa Monica High School, to allow for a more streamlined approval process and increase efficiency in the overall administration of the City’s parking resources; and include rates for certain City parking facilities that were inadvertently omitted from Resolution No. 10755; and
WHEREAS, on June 23, 2015, the City Council adopted Resolution Number 10889 (CCS) (“Resolution No. 10889”), to make administrative changes, include exemptions from permit rates for residents in the Beach Zone with disabled placards, and eliminate free parking for vehicles in the Southern Beach Zone after 4:00 p.m. in the winter; and WHEREAS, on May 10, 2016, the City Council adopted Resolution Number 10957 (CCS) (“Resolution No. 10957”), to increase rates at the Civic Center Parking Structure and Civic Auditorium parking lot; limit eligibility for monthly permits at Downtown Parking Structures 1 through 9, the Ken Edwards Center, the Main Library, the Civic Center Parking Structure, and the Civic Auditorium parking lot, and to make minor changes to address operational needs; and

11.C.a
Packet Pg. 1344 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
4 WHEREAS, on May 10, 2016, staff requested, and received, City Council concurrence on a proposed administrative increase to certain parking rates for parking facilities located in the City’s Downtown as a means of discouraging daily Expo Light Rail (“E-Line”) park and ride activity and to further the parking goals set forth in the City’s Land Use and Circulation Element (“LUCE”); and
WHEREAS, the City Manager, in accordance with authority granted by the City Council, administratively increased rates for parking structures in the City’s Downtown; and
WHEREAS, on June 27, 2017, Council adopted Resolution Number 11053 (CCS) (“Resolution No. 11053”) to: reflect the administrative increase implemented on May 17, 2016; increase certain parking rates at the Beach parking lots to better maximize use of all Beach parking supply, including South Beach lots, Central Beach lots, and North Beach lots; provide for a pilot discount validation program for employees of commercial establishments located in the City’s Downtown; and provide for payment by the Judicial Council of California and Superior Court of California, County of Los Angeles, for permits and validations assigned to the Civic Center Parking Structure and Civic Auditorium parking lot; and
WHEREAS, on April 24, 2018, the City Council adopted Resolution Number 11110 (CCS) (“Resolution No. 11110”), to: revise transient rates and permit fees at Parking Structure 1 through 10, Ken Edwards Center, and Main Library parking structure; make changes to the incremental weekday and weekend transient parking rates at the Civic Center Parking Structure and Civic Auditorium parking lot while maintaining the current daily maximum rates; extend the pilot Downtown employee discount validation program

11.C.a
Packet Pg. 1345 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
5 for through June 30, 2019; eliminate free disabled placard parking in the Main Library parking structure and Parking Structure 10 to ensure parking availability and discourage long-term storage parking in these facilities; increase the fee for an annual Senior Beach parking permit to align with Los Angeles County Beaches and Harbor parking permit rates; and provide minor adjustments to address operational needs; and WHEREAS, on May 8, 2018, the City Council adopted Resolution Number 11112 (CCS) (“Resolution No. 11112”), to include an extension of the bulk parking fee for the California Judicial Council through June 30, 2019 that was inadvertently omitted from Resolution No. 11110; and
WHEREAS, on June 12, 2018, the City Council adopted Resolution Number 11122 (“Resolution No. 11122”) to include an increase to preferential parking permit fees based on a cost of services fee study; and
WHEREAS, on April 30, 2019, the City Manager, in accordance with authority granted by the City Council, administratively increased rates for on-street parking meters, Main Street parking lots, Central Beach Zone parking lots, and Pier Deck parking lot rates to further the parking goals set forth in the City’s Land Use and Circulation Element (“LUCE”); and
WHEREAS, on June 25, 2019, the City Council adopted Resolution Number 11184 to extend the pilot Downtown employee discount validation program for two additional years through June 30, 2021, include an extension of the bulk parking fee for the California Judicial Council through June 30, 2020, and provide for minor adjustments to address operational needs, and

11.C.a
Packet Pg. 1346 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
6 WHEREAS, on January 14, 2020, the City Council adopted Resolution Number 11222 to adopt an administrative charge for overstaying at public electric vehicle charging stations beyond the maximum time to encourage turnover at parking spaces designated for public use; and
WHEREAS, on June 23, 2020, the City Council adopted Resolution Number 11265 to extend the bulk parking fee agreement for the State of California Judicial Council through June 30, 2021, eliminate free overnight parking in the Main Street surface parking lots, and provide for minor adjustments to address operational needs; and WHEREAS, on June 22, 2021, Council adopted Resolution Number 11345 to revise the preferential parking permit fees based on a cost of services fee study, extend the Downtown employee discount validation program for two additional years through June 30, 2023, to support the City’s business and economic recovery efforts, and provide for minor administrative adjustments to address operational needs; and WHEREAS, on February 22, 2022, Council adopted Resolution Number 11402 to authorize the City Manager or designee to establish hours operation for the Santa Monica Pier Deck Parking Lot; and
WHEREAS, on June 28, 2022, Council adopted Resolution Number 11434 to revise and increase the preferential parking permit fees by 3.1%, which reflects the Citywide salaries and benefits total compensation factor increase for FY 2022-23, and provide for minor administrative adjustments to address operational needs; and WHEREAS, on June 27, 2023, Council adopted Resolution Number 11537 to revise and increase the preferential parking permit fees by 4.0%, which reflects the

11.C.a
Packet Pg. 1347 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
7 Citywide salaries and benefits total compensation factor increase for FY 2023-24, extend the Downtown employee discount validation program for one additional year through June 30, 2024 to support the City’s business and economic recovery efforts, and establish a Pilot Beach Electric Vehicle Parking Permit at Beach Lot 5 South and a Pilot Electric Vehicle Parking Permit at lots 7, 8, 9, and 11 for EV drivers using the EV charging stations at these lots, and provide for minor administrative adjustments to address the operational needs; and
WHEREAS, on June 25, 2024, Council adopted Resolution Number 11596 to revise and increase the preferential parking permit fees by 3 . 7 %, which reflects the Citywide salaries and benefits total compensation factor increase for FY 2024-25, extend the Downtown employee discount validation program for one additional year through June 30, 2025 to support the City’s business and economic recovery efforts, extend the Pilot Beach Electric Vehicle Parking Permit at Beach Lot 5 South and Pilot Electric Vehicle Parking Permit at lots 7, 8, 9, and 11 for EV drivers using the EV charging stations at these lots, establish a fee for Overnight Parking Permits for Oversized Vehicles, and provide for minor administrative adjustments to address the operational needs; and WHEREAS, on June 24, 2025, Council adopted Resolution Number 11678 to revise and increase the preferential parking permit fees by 4.1%, which reflects the Citywide salaries and benefits total compensation factor increase for FY 2025-26, and provide for minor administrative adjustments to address operational needs, and WHEREAS, on June 24, 2025, Council adopted Resolution Number 11678 to extend the Downtown employee discount validation program for one additional year through June 30, 2026 to support the City’s business and economic recovery efforts, extend the bulk parking fee agreement for the State of California Judicial Council through

11.C.a
Packet Pg. 1348 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
8 June 30, 2026, continue the Pilot Electric Vehicle Parking Permit for Lots 7, 8, 9, and 11, make plug-in hybrids eligible for the Pilot Beach Electric Vehicle Parking Permit for Lot 5 South EV charging stations, increase preferential parking rates as directed by City Council at the May 27th, 2025 meeting, and provide for minor administrative adjustments to address operational needs, and
WHEREAS, on October 28, 2025, Council adopted Resolution Number 11715 to increase parking rates as directed by City Council at the August 12, 2025 meeting, create a discounted validation rate for downtown parking structures as directed by City Council at the August 12, 2025 meeting, create a Special Holiday Rate as directed by City Council at the August 12, 2025 meeting, create a new ADA Placard parking rate as directed by City Council at the August 12, 2025 meeting, and
WHEREAS, the City now desires to change rates for Parking Structures 1, 2, 4, 5, 6, 7, 8, 9, and Ken Edwards Center, change rates for 6 month Residential Parking and Visitor Permits, and change rates for Parking Access Cards, and WHEREAS, the City desires to restate all fees and rates set by Resolution Number 11715 as well as incorporate changes made by this Resolution.

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

SECTION 1. The parking rates established in this Resolution are effective on January 12, 2026April 13, 2026, and at such time as signs notifying the public of the provisions herein have been posted by the City, unless otherwise noted. Parking rates that require approval from the California Coastal Commission are effective upon approval by that body.

11.C.a
Packet Pg. 1349 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
9 SECTION 2. As used in this Resolution, the term “daily” means a period commencing upon the time of entry of a vehicle into a parking facility between 12:00 a.m. to midnight.

SECTION 3. The off-street parking rates listed in this Resolution apply to vehicles entering the specified off-street parking facility for the specified times, unless a special event is scheduled that is anticipated to increase traffic and parking demands. If a special event is scheduled, the daily maximum may be increased up to $75.00, with approval of the City Manager or the Director of the Department of Transportation, which approval may be granted based on the City’s best interests. The daily maximum may be set as either a flat rate per entry or an increased incremental rate based upon time of entry and duration of parking.

SECTION 4. The off-street parking rates listed in this Resolution apply to vehicles entering the specified off-street parking facility for the specified times, unless it is one of the following holidays; Memorial Day, July Fourth, or Labor Day. On these holidays, the daily maximum may be increased up to $75.00, with approval of the City Manager or the Director of the Department of Transportation, which approval may be granted based on the City’s best interests. The daily maximum may be set as either a flat rate per entry or an increased incremental rate based upon time of entry and duration of parking.

SECTION 5. The following weekday (Monday through Friday) and weekend (Saturday and Sunday) transient parking rates are established for Downtown Parking Structures 1, 2, and 4 through 8 and Ken Edwards Center parking structure:

1. Weekday parking rates shall be as follows:
a. First thirty one hour and thirty minutes shall be free$1.00; b. Next two one hours and thirty minutes shall be $32.00;

11.C.a
Packet Pg. 1350 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
10 c. Next two hours shall be $7.00;
d. Daily maximum shall be $20.00 per entry;
e. Lost tickets shall be charged $20.00 per ticket.

2. Weekend parking rates shall be as follows:
a. First one hour and thirty minutes shall be free$1.00; b. Next two one hours and thirty minutes shall be $4.00$3.00; c. Next two hours shall be $8.00;
d. Daily maximum shall be $22.00 per entry;
e. Lost tickets shall be charged $22.00 per ticket.

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

4. Parking on Sundays is free from 6:00 a.m. to 11:00 a.m. Vehicles entering these parking structures before 6:00 a.m. and leaving between 6:00 a.m. and 11:00 a.m. shall be subject to payment of all rates due from entry to 6:00 a.m.

Vehicles entering these parking structures after 6:00 a.m. and remaining in the structure after 11:00 a.m. shall be subject to payment of all rates due from 11:00 a.m. to exit. Vehicles parked in these structures before 6:00 a.m. and remaining after 11:00 a.m. shall be subject to payment of all rates due before and after the free period.

SECTION 6. The following weekday (Monday through Friday) and weekend (Saturday and Sunday) transient parking rates are established for Parking Structure 9:

1. Weekday parking rates shall be as follows:

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Packet Pg. 1351 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
11 a. First one hour and thirty minutes shall be free$1.00; b. Next two one hours and thirty minutes shall be $2.001.00; c. Next two hours shall be $5.00;
d. Daily maximum shall be $14.00 per entry;
e. Lost tickets shall be charged $14.00 per ticket.

2. Weekend parking rates shall be as follows:
a. First one hour and thirty minutes shall be $1.00free; b. Next two one hours and thirty minutes shall be $2.00$1.00; c. Next two hours shall be $6.00;
d. Daily maximum shall be $17.00 per entry;
e. Lost tickets shall be charged $17.00 per ticket.

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

4. Parking on Sundays is free from 6:00 a.m. to 11:00 a.m. Vehicles entering this parking structure before 6:00 a.m. and leaving between 6:00 a.m. and 11:00 a.m. shall be subject to payment of all rates due from entry to 6:00 a.m.

Vehicles entering this parking structure after 6:00 a.m. and remaining in the structure after 11:00 a.m. shall be subject to payment of all rates due from 11:00 a.m. to exit. Vehicles parked in this structure before 6:00 a.m. and remaining after 11:00 a.m. shall be subject to payment of all rates due before and after the free period.

SECTION 7. The following weekday (Monday through Friday) and weekend

11.C.a
Packet Pg. 1352 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
12 (Saturday and Sunday) transient parking rates are established for Parking Structure 10:

1. Weekday parking rates shall be as follows:
a. First two hours shall be $2.00;
b. Next one hour shall be $1.00;
c. Next one hour shall be $4.00;
d. Next one hour shall be $2.00;
e. Daily maximum shall be $15.00 per entry.

2. Weekend parking rates shall be as follows:
a. First two hours shall be $2.00;
b. Next two hours shall be $1.50;
c. Next one hour shall be $4.50;
d. Next one hour shall be $3.50;
e. Daily maximum shall be $18.00 per entry.

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 8. The following weekday (Monday through Friday) and weekend (Saturday and Sunday) transient parking rates are established for the Main Library and the Civic Center Parking Structure:

1. Weekday parking rates for the subterranean structure shall be as follows:
a. First thirty minutes shall be free;
b. Next thirty minutes shall be $1.00;

11.C.a
Packet Pg. 1353 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
13 c. Next one hour shall be $1.00;
d. Next one hour shall be $2.00;
e. Next one hour shall be $3.00;
f. Next one hour shall be $3.00;
g. Next one hour shall be $2.00;
h. Daily maximum shall be $14.00 per entry;
i. Lost tickets shall be charged $14.00 per ticket.

2. Weekend parking rates shall be as follows:
a. First thirty minutes shall be free;
b. Next one hour and thirty minutes shall be $2.00;
c. Next one hour shall be $2.00.
d. Daily maximum shall be $5.00 per entry;
e. Lost tickets shall be charged $5.00 per ticket.

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

4. Parking for vehicles less than 20 feet in length displaying current and valid disabled placards shall be free (for the Civic Center Parking Structure only not the Library Structure), except during events where a capacity crowd is anticipated. For purposes of this subsection 4, “capacity crowd” means an event that is anticipated to sell out. During capacity crowd events, vehicles displaying disabled placards shall be subject to payment of the applicable event rate.

5. The City Manager, the Director of the Department of Transportation, or the

11.C.a
Packet Pg. 1354 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
14 Parking Manager, is hereby authorized to waive parking fees at the Civic Center Parking Structure for up to twenty-five events at Santa Monica High School per school year (July 1 to June 30). Such waivers may be denied if there is a conflict with pre-existing activity, such as another event occurring at the Civic Center concurrent to the time of the Santa Monica High School event.

SECTION 9. The following transient parking rates are for the Main Library surface parking lot:

1. Parking rates for the surface parking lot shall be $1.50 per hour.

2. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates ($0.75 per hour).

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 10. The following weekday (Monday through Friday) and weekend (Saturday and Sunday) transient parking rates are established for the Civic Auditorium Parking lot:

1. Each hour shall be $1.50.

2. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates ($0.75 per hour).

3. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 11. The total number of monthly parking permits and validations to be sold shall be determined by the City’s Parking Manager, or the Director of the Department of Transportation, and distributed by location with the goal of ensuring that the utilization

11.C.a
Packet Pg. 1355 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
15 of parking facilities is distributed to maximize existing inventory based on occupancy.

Monthly parking permit fees for (i) employees working in a commercial establishment located within the area bounded by California Avenue, Lincoln Boulevard, Pico Boulevard, and Ocean Avenue, including businesses located on both the east and west sides of Lincoln Boulevard and north and south sides of Pico Boulevard; or (ii) residents living in buildings with no on-site parking within the area bounded by California Avenue, Lincoln Boulevard, Pico Boulevard, and Ocean Avenue, including buildings located on both the east and west sides of Lincoln Boulevard and north and south sides of California Avenue and Pico Boulevard; shall be:

1. Downtown Parking Structures 1, 2, and 4 through 8 and Ken Edwards Center – $176 per month for permits valid at all times.

2. Downtown Parking Structure 9 – $154 per month for permits valid at all times.

3. Downtown Parking Structure 10 – $154 per month for permits valid at all times.

4. Civic Center Parking Structure– $160 per month for permits valid at all times.

5. Main Library Parking Structure – $154.00 per month for permits valid at all times.

6. 1550 Lincoln Boulevard Structure -$154.00 per month for permits valid Monday through Friday from 6am to 7pm.

7. The City may offer up to a twenty-percent monthly volume discount for accounts with fifty or more permits as of May 10, 2016, to facilitate the distribution of parkers to facilities that are underutilized.

8. Monthly parking fees shall be $65.00 per month for vehicles with disabled placards owned and operated by residents of a multi-family building if:

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Packet Pg. 1356 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
16 a. The building is located within the area bounded by Second Street, Wilshire Boulevard, Fourth Street, and Colorado Avenue; and
b. One hundred percent of the building’s units are affordable housing; and c. No onsite parking exists for the building.

9. Commencing on June 27, 2017, and continuing through June 30, 2026, discounted parking validations shall be made available for employees working in commercial establishments located within the area bounded by California Avenue, Lincoln Boulevard, Pico Boulevard, and Ocean Avenue, including businesses located on both the east and west sides of Lincoln Boulevard and north and south sides of Pico Boulevard.
a. Validation for up to six hours of parking – $6.00
b. Validation for up to twelve hours of parking – $9.00

10. Free parking validations for parking sessions up to three hours (inclusive of any grace period) shall be made available to all current Santa Monica College Emeritus program students.

11. Free parking validations shall be made available to all Ken Edwards Center Senior program users.

12. Free parking validations for parking sessions up to ninety minutes shall be made available to all Main Library Public Services and Youth Program users.

13. 60-minute validations for parking structures 1, 2, 4 through 8, and KEC shall be $1.50 and must be purchased in a volume of a minimum of 500 at a time.

SECTION 12. The following rates are established for the Santa Monica Pier Deck

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Packet Pg. 1357 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
17 parking lot:

1. Summer (April 1 through October 31):
a. Weekday parking rates shall be $4.25 per hour; $20.00 daily maximum. b. Weekend parking rates shall be $4.25 per hour; $22.00 daily maximum.

2. Winter (November 1 through March 31):
a. Weekday parking rates shall be $3.00 per hour; $15.00 daily maximum. b. Weekend parking rates shall be $4.00 per hour; $18.00 daily maximum.

3. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

4. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

5. The City Manager or designee shall establish hours of operation for the Santa Monica Pier Deck Parking Lot.

6. No person shall park or leave standing any vehicle in the Santa Monica Pier Deck Parking Lot during times when it is prohibited pursuant to subsection (5) or without a valid parking permit.

SECTION 13. The following rates are established for the Northern Beach Zone, lots 9N through 4N:

1. Summer (April 1 through October 31) parking rates shall be $12.00 per entry on weekdays and $15.00 per entry on weekends.

2. Winter (November 1 through March 31) parking rates shall be $8.00 per entry

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Packet Pg. 1358 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
18 on weekdays and $12.00 per entry on weekends.

3. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

4. Bus parking shall be six times the daily rate.

5. Oversized vehicle parking shall be four times the daily rate.

6. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 14. The following rates are established for the parking lot at the Annenberg Community Beach House at Santa Monica State Beach:

1. Summer (April 1 through October 31) parking rates shall be $4.00 per hour; $15.00 daily maximum.

2. Winter (November 1 through March 31) parking rates shall be $4.00 per hour; $10.00 daily maximum.

3. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

4. Bus parking shall be six times the daily rate.

5. Oversized vehicle parking shall be four times the daily rate.

6. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 15. The following rates are established for the Central Beach Zone, Lots 1N, 3N, 1S, 2S, and 3S:

11.C.a
Packet Pg. 1359 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
19 1. Summer (April 1 through October 31) parking rates shall be $20.00 per entry.

2. Winter (November 1 through March 31) parking rates shall be $8.00 per entry on weekdays and $12.00 per entry on weekends.

3. Summer (April 1 through October 31) parking rates for lots or spaces designated for short-term parking shall be $3.00 per hour.

4. Winter (November 1 through March 31) parking rates for lots or spaces designated for short-term parking shall be $2.00 per hour.

5. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

6. Bus parking shall be six times the daily rate.

7. Oversized vehicle parking shall be four times the daily rate.

8. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 16. The following fees are established for the Southern Beach Zone, lots 4S and 5S:

1. Summer (April 1 through October 31) parking rates shall be $12.00 per entry on weekdays and $15.00 per entry on weekends.

2. Winter (November 1 through March 31) parking rates shall be $7.00 per entry on weekdays and $10.00 per entry on weekends.

3. Summer (April 1 through October 31) parking rates for lots or spaces designated for short-term parking shall be $3.00 per hour.

4. Winter (November 1 through March 31) parking rates for lots or spaces

11.C.a
Packet Pg. 1360 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
20 designated for short-term parking shall be $2.00 per hour.

5. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

6. Patrons of the Sunday morning Main Street Farmers Market shall be eligible to receive a refund of parking fees with proof of a purchase from the market.

No more than one refund shall be issued per person per day.

7. Vendors, staff, and performers of the Main Street Farmers Market shall be eligible for refunds or validations of parking fees.

8. Bus and Oversized vehicle parking shall be four times the daily rate.

9. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 17. The following permit rates are established for all beach zones:

1. Permits are available for employees working in a commercial establishment located along the beach or at the Santa Monica Pier at the following rates:
a. Annual $186 per year
b. Semi-Annual $126 per six months
c. Monthly $32 per month

2. Permits are available for employees working in a commercial establishment located along Main Street south of Pico Boulevard, including businesses on cross streets up to Neilson Way to the west of Main Street and up to Third Street to the east of Main Street, at the following rates:
a. Annual $186 per year

11.C.a
Packet Pg. 1361 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
21 b. Semi-Annual $126 per six months
c. Monthly $32 per month

3. Permits are available for California residents at the following rates:
a. Annual $186 per year
b. Semi-Annual $126 per six months
c. Monthly $32 per month
d. Senior Beach $30 per year

4. Commencing on January 12, 2026, and continuing through June 30, 2026, Pilot Beach Electric Vehicle Parking Permits shall be made available to California residents with electric vehicles (both fully electric and plug-in hybrids) for use at Beach Lot 5 South EV charging stations at the following rate:
a. Annual $97.50 per year
b. Electric Vehicles must be plugged in to use the Pilot Beach Electric Vehicle Parking Permit.

5. Permits are available for residents living within the Beach Zone, at the following rates:
a. Annual Overnight Resident Permit $180 per year
b. Annual Overnight Resident’s Guest Permit $180 per year c. Semi-Annual Overnight Resident Permit $90 per six months d. Semi-Annual Overnight Resident’s Guest Permit $90 per six months e. Monthly Overnight Resident Permit $18 per month

11.C.a
Packet Pg. 1362 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
22 f. Monthly Overnight Resident’s Guest Permit $18 per month g. A resident living within the Beach Zone may obtain one free annual resident permit with their current and valid disabled placard.

SECTION 18. The following rates are established for Downtown lots 27, 29, and 30:

1. Each thirty minutes shall be $1.50; $17.50 daily maximum.

2. The monthly parking rates shall be:
a. $132.00 per month for permits valid on weekdays only, from 6:00 a.m. to 7:00 p.m. Monday through Friday. Any vehicle parking outside of the valid times shall be subject to payment of the applicable parking rates listed in subsection 1 of this Section 17.
b. $82.50 per month for permits valid on weeknights and weekends only, from 4:00 p.m. to 6:00 a.m., Monday through Thursday, and from 4:00 p.m.

Friday to 6:00 a.m. Monday. Any vehicle parking outside of the valid times shall be subject to payment of the applicable parking rates listed in subsection 1 of this Section 17.

3. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

4. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 19. The following rates are established for Mid-City lots 7, 8, and 12:

1. Each hour shall be $1.25; $16.00 daily maximum.

11.C.a
Packet Pg. 1363 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
23 2. $65.00 per month for permits valid at all times.

3. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

4. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 20. The following rates are established for Main Street area lots 9, 10, 11, and 26:

1. Summer (April 1 through October 31) parking rates on Fridays, Saturdays, and Sundays shall be $2.50 per hour.

2. Summer (April 1 through October 31) parking rates on Mondays, Tuesdays, Wednesdays, and Thursdays shall be $2.00 per hour.

3. Winter (November 1 through March 31) parking rates for all days of the week shall be $1.50 per hour.

4. The monthly parking permit rate shall be $96.00.

5. Parking for vehicles displaying disabled placards shall be 50% of the posted parking rates.

6. For parking spaces reserved for construction or other exclusive use, the parking rate shall be three times the daily maximum.

SECTION 21. Commencing on January 12, 2026, and continuing through June 30, 2026, Pilot Electric Vehicle Permits shall be made available to California residents with electric vehicles (both fully electric and plug-in hybrids) for use at Lots 7, 8, 9, and 11 charging stations at the following rate:

11.C.a
Packet Pg. 1364 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
24 1. Annual $65 per year

2. Electric Vehicles must be plugged in to use the Pilot Electric Vehicle Parking Permit.

SECTION 22. The applicable parking rates for any parking facility not specified in this Resolution shall be equal to the parking rates for the closest adjacent on-street parking meters.

SECTION 23. In no case may parking rates for any off-street parking facility, including parking structures and parking lots be increased or decreased by more than 50% from the rates established herein. At any time, off-street monthly parking rates may not be increased or decreased more than ten percent with less than 30 days’ notice by posting in the affected facility. In no case shall monthly parking rates be increased or decreased more than 25% at any one time.

SECTION 24. Per the Santa Monica Municipal Code Chapter 3.16.170, the City Manager or designee is authorized to make on-street parking meter rate changes up to 25% not more than twice per year based on the City’s planning and transportation policies including the Land Use and Circulation Element (“LUCE”). Therefore, the following fees shall be established for all on-street parking meters and pay machines:

1. July 2012 to June 2019:
a. Downtown Meter Zone - $2.00 per hour
b. Beach Meter Zone - $2.00 per hour
c. Citywide (“All Other”) Meter Zone - $1.00 per hour

2. Effective July 1, 2019:

11.C.a
Packet Pg. 1365 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
25 a. Downtown Meter Zone - $2.50 per hour
b. Beach Meter Zone - $2.50 per hour
c. Citywide (“All Other”) Meter Zone - $1.25 per hour

3. Effective January 12, 2026:
a. Downtown Meter Zone -$3.00 per hour.
b. Beach Meter Zone -$3.00 per hour.
c. Citywide (“All Other”) Meter Zone -$1.50 per hour.

SECTION 25. The following fees shall be established for all preferential parking zones:

1. Annual permits shall be as follows:
a. Resident permits
i. First permit shall be $40.00;
ii. Second permit shall be $50.00;
iii. Third permit shall be $92.00;
iv. Fourth permit, and any additional permits, shall be $144.00 each. b. Visitor permits shall be $70.00 each.
c. A second permit, and any additional permits, for Zone P (Barnard Way) shall be $115.75.

2. Permits valid for six months or less shall be as follows:
a. Resident permits
i. First permit shall be $2420.00;

11.C.a
Packet Pg. 1366 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
26 ii. Second permit shall be $3025.00;
iii. Third permit shall be $5546.2000;
iv. Fourth permit, and any additional permits, shall be $86.472.00 each. b. Visitor permits shall be $4235.00 each.
c. A second permit, and any additional permits, for Zone P (Barnard Way) shall be $57.87.
d. A thirty-day temporary new resident permit shall be free. e. A one-day visitor permit picked up from the City Parking Office shall be $2.25.
f. A one-day visitor permit self-printed by the resident shall be free.

SECTION 26. The City reserves the right to round the parking fees down to the nearest whole dollar.

SECTION 27. Preferential parking permits for employees of businesses and commercial property owners, as set forth in Santa Monica Municipal Code Chapter 3.10, are available for $37.04 per three months.

SECTION 28. In accordance with SMMC 3.12.830 (b), Driveway parking permits are available to an owner or occupant of a single-unit commercial property for on-street parking in front of the driveway of that commercial property for $34.73 per year.

SECTION 29. Parking permits for overnight parking in residential areas for oversized vehicles may be issued by the City upon application of any person and are subject to the provisions in SMMC 3.12.900 (amended on February 13, 2024). Parking permits for overnight parking in residential areas for oversized vehicles shall be $2.08 per day for residents at a maximum of thirty days, and $10.41 per day for visitors at a

11.C.a
Packet Pg. 1367 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
27 maximum of one consecutive seven-day period per month.

SECTION 30. Short-term reserved parking may be purchased, if available, in any parking lot or parking structure for events, including, but not limited to, filming, construction or local events, at three times the maximum parking rate.

SECTION 31. In addition to the rates set forth above, for all parking spaces designated for use of public electric vehicle charging stations, whether off-street or onstreet, there shall be an additional overstay charge of $1.00 per minute for any vehicle that remains parked in the space beyond the maximum posted time allowed for charging in that space. The overstay charge shall be imposed beginning five minutes after the expiration of the maximum posted time allowed for charging in the space. The maximum overstay charge shall be $53.00. The overstay charge may be automatically charged to the account being used by a vehicle to charge at a smart public electric vehicle charging station.

SECTION 32. All parking rates and permit fees shall be per vehicle for the specified period and non-refundable once issued.

SECTION 33. All permits shall incur replacement fees as follows:

1. First replacement for a stolen permit shall be free only with a copy of a police report.

2. Second replacement for a stolen permit shall be 50% of the original permit rate only with a copy of a police report.

3. Third replacement for a stolen permit, any replacement for a lost permit, or replacement of a stolen permit without a copy of a police report shall be replaced upon payment of the full rate.

11.C.a
Packet Pg. 1368 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
28 SECTION 34. Parking passes or permits that are issued via access cards shall require payment of an initial non-refundable fee of $1015.00.

SECTION 35. All off-street parking rates set forth in this Resolution include parking facility tax in accordance with SMMC 6.70.020 and SMMC 6.70.025.

SECTION 36. The City Manager, or the Director of the Department of Transportation, is hereby authorized to waive parking fees, other than the overstay charge for parking spaces designated for use of public electric vehicle charging stations, for those attending City meetings and City-sponsored events that are free and open to the public, if the City Manager, or the Director of the Department of Transportation, determines that such waiver is in the City’s best interest, which may include, but not be limited to:
facilitating participation in the City’s public meetings, furthering Council policies, and encouraging participation in the City-sponsored events.

SECTION 37. The City Manager, or the Director of the Department of Transportation, is hereby authorized to issue parking permits to other governmental agencies to use in the course of business at no charge, if determined that such waiver is in the City’s best interest.

SECTION 38. Resolution No. 11678 11715 (CCS), adopted by the City Council on June 24October 28, 2025, is repealed in its entirety as of the effective date of the parking rates set forth in this Resolution, with the exception that to the extent any parking rates in this Resolution are determined to require Coastal Commission approval, those parking rates as previously set forth in Resolution No. 11678 (CCS) shall remain in effect until Coastal Commission approval of those parking rates is obtained.

SECTION 39. If there are any conflicts between the parking rates adopted in this

11.C.a
Packet Pg. 1369 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT A
29 Resolution and any parking rates adopted by prior resolution, the rates adopted in this Resolution shall take precedence.

SECTION 40. 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

11.C.a
Packet Pg. 1370 Attachment: Attachment A - Parking Rates Resolution (7560 : Realignment Plan Update)

ATTACHMENT B
1 City Council Meeting March 24, 2026 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MODIFYING CERTAIN PROVISIONS OF RESOLUTION NO. 11308 TO PROVIDE

CITYWIDE WASTEWATER CAPITAL FACILITY FEE SUBSIDIES FOR SIT DOWN

RESTAURANTS
WHEREAS, the City Council may establish, amend, or revise from time to time by resolution the City’s wastewater capital facility fees to be charged for any net increase in wastewater discharged pursuant to Section 7.04.460 of the Santa Monica Municipal Code; and
WHEREAS, the City is required by the City of Los Angeles to collect and transmit Amalgamated System Sewerage Facilities Charges (LA ASSFC) established by the City of Los Angeles per Contract 7473 (CCS) Section IIC for any net increase in wastewater discharge arising from new development, changes in land use, or increases in discharges from Industrial Dischargers within the City limits; and WHEREAS, on November 24, 2020, the City adopted Resolution No. 11308 to revise the wastewater capital facility fees that are assessed to restaurants and other establishments operating within the City of Santa Monica to recover the cost of increased demand on the City’s wastewater system from new development and/or changes in land use; and

11.C.b
Packet Pg. 1371 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update)

ATTACHMENT B
2 WHEREAS, sit down restaurants provide significant economic and community benefits, including job creation, local economic activity, and activation of commercial corridors; and
WHEREAS, wastewater capital facility fees applicable to sit-down restaurants may represent a significant upfront cost that can deter new establishments, expansions, or conversion of vacant spaces; and
WHEREAS, recent economic conditions, including increased operating costs, changing consumer patterns, and reduced margins, have disproportionately impacted full-service restaurants; and
WHEREAS, commercial vacancy and underutilized spaces remain a concern in the City of Santa Monica, and facilitating restaurant occupancy can help activate storefronts and support economic recovery; and
WHEREAS, restaurants and other hospitality uses can activate street-level storefronts, generate foot traffic, enhance pedestrian vibrancy and safety, and strengthen the City’s overall commercial ecosystem while protecting the health, safety, and economic welfare of the community; and
WHEREAS, the City Council desires to reduce barriers to the establishment and expansion of sit-down restaurants by subsidizing the City’s portion of wastewater capital facility fees while maintaining the fee structure established by Resolution No. 11308 (CCS); and

11.C.b
Packet Pg. 1372 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update)

ATTACHMENT B
3 WHEREAS, providing such targeted financial relief supports economic vitality while preserving required regional wastewater charges and the integrity of the City’s cost recovery framework;

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

SECTION 1. Definitions. “Sit-Down Restaurant” or “Full-Service Restaurant” shall mean a restaurant use in which food and beverages are ordered by and served to patrons while seated and for which payment is typically made after service, consistent with the definition of “Full-Service Restaurant” set forth in the Santa Monica Municipal Code, as may be amended from time to time. “Issued” shall mean the date on which a building permit or other applicable permit authorizing construction or tenant improvements is approved and released by the City for construction.

SECTION 2.Wastewater Capital Facility Fee Subsidy. Effective March 24, 2026, all qualifying Sit-Down Restaurants shall be eligible for a City-funded subsidy of the City of Santa Monica wastewater capital facility fees established by Resolution No. 11308 (CCS) where a net increase in wastewater discharge arises from the establishment, expansion, or change in land use to Sit-Down Restaurant provided that no building permit (or, where no building permit is required, other ministerial construction or tenant improvement permit that triggers the wastewater capital facility fee) has been issued for the project prior to the effective date of this Resolution. The underlying fee obligation shall remain in effect pursuant to Resolution No. 11308 (CCS); however, the City shall satisfy the City’s portion of such fees on behalf of the applicant through a General Fund appropriation. The City shall subsidize such fees from the City’s General Fund. This

11.C.b
Packet Pg. 1373 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update)

ATTACHMENT B
4 subsidy shall remain in effect unless and until modified or terminated by subsequent action of the City Council.

SECTION 3. Regional Wastewater Charges. Applicants receiving a subsidy under this Resolution shall remain responsible for payment of the Amalgamated System Sewerage Facilities Charges (LA ASSFC) established by the City of Los Angeles for any net increase in wastewater discharge arising from new development, changes in land use, or increases in discharges from Industrial Dischargers within the City limits. The amount of LA ASSFC charged to owners or developers of a property will be based on the City of Los Angeles’ Annual Report of Wastewater Flow and Strength Loadings and the Amalgamated System Sewage Generator Factors and paid in full at the time of permit issuance.

SECTION 4. Other Fees. Unless otherwise provided under a City resolution or policy, all other applicable City permitting, inspection, and regulatory fees shall continue to apply.

SECTION 5. Relationship to Prior Resolutions. Except as expressly provided herein, Resolution No. 11308 (CCS) shall remain in full force and effect. This Resolution does not amend the fee schedule established therein but instead provides for a Cityfunded subsidy of certain fees applicable to Sit-Down Restaurants.

SECTION 6. Application and Timing Requirements. The City Manager or designee shall require that requests for subsidy be submitted prior to or concurrently with application for a building permit or other permit that triggers the wastewater capital facility fee. Eligibility for subsidy shall be determined based on whether a building permit (or equivalent permit triggering the fee) has been issued as of the effective date of this

11.C.b
Packet Pg. 1374 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update)

ATTACHMENT B
5 Resolution. Projects for which a complete application has been submitted but for which no such permit has been issued as of the effective date shall be eligible, subject to compliance with this Resolution.

SECTION 7. Documentation and Verification. Applicants seeking subsidy shall provide documentation sufficient to demonstrate eligibility, including project scope, seating capacity, and change of use, as applicable. The City may verify such information prior to approval.

SECTION 8. Audit and Compliance. The City reserves the right to audit subsidy recipients. If a subsidy is issued in error or based on inaccurate information, the City may require repayment.

SECTION 9. Prospective Application. The subsidy established by this Resolution shall apply prospectively only to eligible projects for which a building permit or equivalent permit has not been issued as of the effective date of this Resolution.

SECTION 10. No Refunds for Prior Payments. No refunds shall be issued for wastewater capital facility fees paid prior to the effective date of this Resolution, nor shall the subsidy apply to any project for which a building permit or equivalent permit was issued prior to the effective date, regardless of whether the fees have been paid.

SECTION 11. Administration. The City Manager or designee may establish administrative controls such as maximum subsidy amounts per project as necessary to manage fiscal impacts within appropriated limits. The City Manager or designee is authorized to administer this Resolution and execute any agreements or documents necessary to implement the subsidy described herein.

11.C.b
Packet Pg. 1375 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update)

ATTACHMENT B
6 SECTION 12. Effective Date. This Resolution shall be effective immediately upon its adoption.

SECTION 13. The City Clerk shall certify 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, City Attorney

11.C.b
Packet Pg. 1376 Attachment: Attachment B - Resolution Waiving Wastewater Capacity Fee for Restaurants (New-Expansion) (7560 : Realignment Plan Update) Attachment C
1 City Council Meeting: March 24, 2026 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SECTION 6.44.030 OF CHAPTER 6.44 OF THE SANTA

MONICA MUNICIPAL CODE TO AUTHORIZE ENTERTAINMENT ZONES IN THE

DOWNTOWN CORE, ON PORTIONS OF THE SANTA MONICA PIER, AND

ALONGSIDE PORTIONS OF MAIN STREET AND MONTANA AVENUE
WHEREAS, the economic downturn starting with the COVID-19 pandemic, exacerbated by the recent Southern California wildfires, and continuing economic challenges nationwide, have had a devastating impact on Santa Monica’s restaurants, bars, and entertainment venues; and
WHEREAS, finding new ways to attract residents, workers, and visitors to our downtown and neighborhood commercial corridors will be critical to the continued recovery of the City’s nightlife sector and economy; and WHEREAS, across the country, numerous states, including Michigan, Ohio, North Carolina, and Kansas, have found success enlivening communities through the designation of areas where businesses may sell alcoholic beverages for consumption within public spaces adjacent to their licensed premises; and WHEREAS, in 2025, the State of California adopted Senate Bill 969, which authorizes cities and counties to create by ordinance Entertainment Zones to enable restaurants and bars to sell open containers of approved alcoholic beverages for consumption within Entertainment Zones; and

11.C.c
Packet Pg. 1377 Attachment: Attachment C - Ordinance to Amend Entertainment Zone Code (7560 : Realignment Plan Update) Attachment C
2 WHEREAS, the City has an important government interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and
WHEREAS, the continued impact of the pandemic, along with the impacts of the recent California wildfires, have resulted in businesses, and particularly restaurants and entertainment venues, suffering significant economic hardships; and WHEREAS, allowing people to buy open container drinks from local bars, restaurants, wineries, and breweries and enjoy them outside in designated public spaces during certain hours for the purpose of creating active, commercial corridors, will stimulate economic recovery; and
WHEREAS, on May 13, 2025, the City Council adopted Ordinance No. 2811 (CCS) (“Ordinance No. 2811”), which added Chapter 6.43, governing “Entertainment Zones” in the City, to the Santa Monica Municipal Code; and
WHEREAS, Ordinance No. 2811 was the first Entertainment Zone Ordinance in Southern California; and
WHEREAS, Section 6.43.030(a) of the Santa Monica Municipal Code provided for an initial entertainment zone on the Third Street Promenade; and WHEREAS, the Third Street Promenade Entertainment Zone has received praise from participating restaurants for attracting additional customers to the Promenade; and WHEREAS, data reflects an increase in attendance at existing and new events in the Third Street Promenade Entertainment Zone; and

11.C.c
Packet Pg. 1378 Attachment: Attachment C - Ordinance to Amend Entertainment Zone Code (7560 : Realignment Plan Update) Attachment C
3 WHEREAS, on January 22, 2026, Downtown Santa Monica, Inc. voted to support expanding the downtown entertainment zone to provide greater flexibility for event activations; and
WHEREAS, the City Council intends to establish an entertainment zone in Downtown Santa Monica which will be limited in the associated Management Plan to event-only activations until further direction from the City Council; and WHEREAS, the Santa Monica Pier is designated as a Public Pier pursuant to California Code of Regulations title 14, section 1.88, which describes Public Piers as, among other things, having the characteristics of unrestricted free access for the general public; and
WHEREAS, the City Council desires to establish a Pier Entertainment Zone to include the western Observation Deck and the Pier Parking Deck that is limited in the associated Management Plan to event-only activations until further direction from the City Council; and
WHEREAS, the Main Street and Montana Avenue Business Improvement Districts have expressed an interest in establishing event-based Entertainment Zones; and WHEREAS, the City Council desires to establish entertainment zones on Main Street and Montana Avenue that are limited in the associated Management Plans to event-only activations until further direction from the City Council; and WHEREAS, the City Council desires that the entertainment zones established by this ordinance be limited to event-only activations at this time to continue gathering data concerning operational requirements, including safety and controlling access; and

11.C.c
Packet Pg. 1379 Attachment: Attachment C - Ordinance to Amend Entertainment Zone Code (7560 : Realignment Plan Update) Attachment C
4 WHEREAS, the Santa Monica Police Department was consulted with the proposed entertainment zone expansions and provided feedback as detailed in the accompany staff report; and
WHEREAS, the City Council desires to amend Section 6.43.030 to authorize additional entertainment zones pursuant to Sections 23039.5 and 25690 of the California Business and Professions Code, subject to state and local regulatory approvals and activation in the Management Plans associated with each Entertainment Zone, in Downtown Santa Monica, in the Santa Monica Pier, Montana Avenue, and Main Street, as described below.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS (new text underlined):

SECTION 1. Santa Monica Municipal Code Section 6.43.030 is hereby amended to read as follows:

6.43.030 Entertainment Zones
(a) Third Street Promenade Entertainment Zone
(1) All public streets, sidewalks, and public rights-of-way on Third Street between Wilshire Boulevard and Broadway are hereby designated as the Third Street Promenade Entertainment Zone under Sections 23039.5 and 25690 of the California Business and Professions Code.
(2) Outdoor consumption of alcoholic beverages within the Third Street Promenade Entertainment Zone is authorized seven days a week between the hours of 8:00 a.m. and 2:00 a.m., subject to any additional limitations imposed by any ABC permit or license and by the Management Plan for the Third Street Promenade Entertainment

11.C.c
Packet Pg. 1380 Attachment: Attachment C - Ordinance to Amend Entertainment Zone Code (7560 : Realignment Plan Update) Attachment C
5 Zone. The City may temporarily limit the hours of operation of the Third Street Promenade Entertainment Zone if it deems it necessary to address specific public health and safety concerns.
(3) Off-site sale of open alcoholic containers by a participating holder of an ABC license or permit may consist of beer, wine, and/or distilled spirits subject to the conditions and limitations imposed on the establishment by their local entitlements or ABC privileges, and any additional limitations imposed by the Management Plan for the Third Street Promenade Entertainment Zone.
(b) Downtown Entertainment Zone
(1) With the exception of the areas contained within the Third Street Promenade Entertainment Zone, which are subject to subsection (a) and the Management Plan for the Third Street Promenade Entertainment Zone, all other public streets, sidewalks, and public rights-of-way from Ocean Avenue to 4th Street and from Wilshire Boulevard to Colorado Avenue, as further outlined in the map attached hereto as Attachment A, are hereby designated as the Downtown Entertainment Zone under Sections 23039.5 and 25690 of the California Business and Professions Code. The map of the Downtown Entertainment Zone shall be retained on file with the Office of the City Clerk.
(2) Outdoor consumption of alcoholic beverages within the Downtown Entertainment Zone is authorized seven days a week between the hours of 8:00 a.m. and 2:00 a.m., subject to any additional limitations imposed by any ABC permit or license and by the Management Plan for the Downtown Entertainment Zone. The City may

11.C.c
Packet Pg. 1381 Attachment: Attachment C - Ordinance to Amend Entertainment Zone Code (7560 : Realignment Plan Update) Attachment C
6 temporarily limit the hours of operation of the Downtown Entertainment Zone if it deems it necessary to address specific public health and safety concerns. (3) Off-site sale of open alcoholic containers by a participating holder of an ABC license or permit may consist of beer, wine, and/or distilled spirits subject to the conditions and limitations imposed on the establishment by their local entitlements or ABC privileges, and any additional limitations imposed by the Management Plan for the Downtown Entertainment Zone.
(c) Pier Entertainment Zone
(1) As the Santa Monica Municipal Pier is a designated as a Public Pier pursuant to California Code of Regulations title 14, section 1.88, certain public streets, sidewalks, and public rights-of-way on and around the Santa Monica Municipal Pier, including the Western Observation Deck and the Pier Parking Deck, as more fully described in the map attached hereto as Attachment B, are hereby designated as the Pier Entertainment Zone under Sections 23039.5 and 25690 of the California Business and Professions Code. The map of the Pier Entertainment Zone shall be retained on file with the Office of the City Clerk.
(2) Outdoor consumption of alcoholic beverages within the Pier Entertainment Zone is authorized seven days a week between the hours of 8:00 a.m. and 2:00 a.m., subject to any additional limitations imposed by any ABC permit or license and by the Management Plan for the Pier Entertainment Zone. The City may temporarily limit the hours of operation of the Pier Entertainment Zone if it deems it necessary to address specific public health and safety concerns.

Santa Monica City CouncilMarch 24, 2026

Santa Monica City Council
March 24, 2026