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SR-417-009 (4)~_ ~ c~ty or Santa Monica~ City Council Report City Council Meeting: June 27, 2006 Agenda Item: ~' G To: Mayor and City Council From: Barbara Stinchfield, Director, Cammunity and Cultural Services Subject: A Second Modification to License Agreement 61543 with the County of Los Angeles for the use of parking spaces in the Civic Auditorium parking lot Recommended Action It is recommended that the City Council take the following actions. 1. Authorize the City Manager to negotiate and execute a Second Modification to License Agreement 61543 with the County of Los Angeles for the use of 325 parking spaces in the Civic Auditorium parking lot at a license fee of $7.27 per space or $583,599 per year. 2. Approve modifications of operational policies and responsibilities. Executive Summary On or about June 27, 1989, the County of Los Angeles and the City of Santa Monica executed License Agreement 61543 for the use of 450 parking spaces in the Santa Monica Civic Auditorium parking lot. This license agreement was for a two year term which was extended by the parties. On November 15, 2004 the parties executed a First Modification to License Agreement 61543 to extend the term of the agreement to the earlier of: 1 • Five (5) calendar years commencing from the Execution Date of the First Modification, November 15, 2004; or • One (1) calendar year after the transfer of real property located at 1725 Main Street, Santa Monica, California ("Courthouse Property") from the County of Los Angeles to the State of California. The First Modification also called for the City and County to meet in good faith to negotiate other License Agreement provisions. These negotiations resulted in the proposed Second Modification to License Agreement 61543. This agreement reflects a decreased number of parking spaces requested by the County, an increased license fee that provides a discount to the County, and revisions of operational policies and responsibilities. Discussion Background The Santa Monica Civic Auditorium parking lot serves a variety of customers including City employees, County employees and jurors, visitors to the Courthouse and City Hall, Auditorium event parking, and Santa Monica High School evening special event parking. The current public daily parking rate is $8.00 per space. The Santa Monica Courthouse was constructed without its own parking facilities. To provide parking for Courthouse employees, jurors, County law enforcement personnel, judges and commissioners, the County of Los Angeles entered into an agreement with 2 the City of Santa Monica in 1989 to provide 450 parking spaces in the Santa Monica Civic Auditorium parking lot, adjacent to the Courthouse. Under this agreement the County paid $3.00 per parking space or $324,000 annually for 450 spaces. Courthouse operations have changed significantly since 1991. Criminal cases were transferred to other jurisdictions, a new efficient jury reporting system was initiated, reducing the number of jurors called at one time, and the Culver City Courthouse was transferred to Santa Monica in 2005. In light of these changes the County has analyzed its parking requirements and reduced its request from 450 to 325 spaces. The County has agreed to pay a fee of $7.27 per space for 247 use days per year and will pay the same license fee for any spaces used beyond the 325 space base amount on a space available basis. This new agreement will generate a minimum annual revenue stream of $583,599 to the Civic Auditorium Fund, an increase of $259,599 per year. The Second Modification also clarifies and simplifies operational responsibilities and policies, including a provision for 25 reserved parking spaces and limited use of the parking lot after permitted hours and an agreement for the County to pay for employee keycards. The term of the License agreement, as set fourth in the First Modification, will remain in effect and the location of the parking spaces will remain in the Civic Auditorium parking lot adjacent to the Santa Monica Civic Auditorium. 3 Previous Council Actions On November 9, 2004, City Council approved Settlement Agreement No. 8416 (CCS) with the County of Los Angeles for the release of the covenant related to the Courthouse property and the building of the City's parking garage, and a First Amendment to License Agreement 61543. This agreement called for the City to extend the parking agreement with the County to allow the use of parking spaces for 5 years or one year after the State of California takes over the Courthouse property, whichever comes first, and authorized the City Manager to negotiate and execute the First Modification to License Agreement 61543. Budget/Financial Impact Approval of this agreement will increase parking revenue by $259,599 per year. This change will be reflected in final changes to the proposed City Budget. Prepared by: Carole A. Curtin, Manager, Santa Monica Civic Auditorium Approved: Forwarded to Council: Name: ~arb ra S'nc field L~P. a ont Ewell Director, Co uni y nd Cultural ty anager Services 4 •