SR-308-001-01
February 28, 2006 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate and
Execute an Operating Agreement with the State of California for
Santa Monica State Beach
INTRODUCTION
This report recommends that the City Council authorize the City Manager to
negotiate and execute a new long-term operating agreement with the State of
California for the development, operation, control and maintenance of Santa
Monica State Beach.
BACKGROUND
In 1981, the City and State of California entered into a twenty-five (25) year
agreement to provide for the development, operation, control and maintenance of
Santa Monica State Beach by the City. The State’s Department of Parks and
Recreation and the City have had a longstanding partnership dating back to 1949
for the provision of beach and recreation services to the public and the
preservation of the natural and cultural resources of Santa Monica State Beach.
The current agreement expires on December 31, 2006 and the State and City
propose to enter into a new operating agreement that would expire in 2051.
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DISCUSSION
The terms and conditions of the proposed agreement remain essentially the
same as the current agreement. The City’s obligations include maintaining and
operating the beach, including public parking and beach concessions that are
accessible and subject to the use and enjoyment of the general public. The City
may adopt rules and regulations that they are consistent with the rules and
regulations applicable to the California State Park System. The City may grant
concession and management services agreements provided that they are
consistent with the California Public Resources Code, thus requiring an invitation
to bid specifying the minimum acceptable rent and maximum term of the
agreement. Substantive improvements made to public facilities are subject to
State approval and must be in accordance with the State’s standards for
construction and completion of improvements. The proposed agreement also
includes a new termination clause, requested by the State that can be exercised
by either party upon 24 months notice. Revenue generated from all sources at
Santa Monica State Beach must be used for the development, renovation,
operation and maintenance of the beach and its facilities.
As directed by City Council in January 2005, City staff contacted the office of the
Director of California State Parks requesting the authority to establish an off-
leash dog area on Santa Monica State Beach under the terms of the proposed
operating agreement. State Parks position remains that it strictly enforces a no
dogs policy on all State beaches in the Angeles District including Santa Monica
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State Beach. Therefore an off-leash dog area would not be permitted on Santa
Monica State Beach under the terms of the proposed operating agreement.
The October 24, 2051 expiration date of the proposed operating agreement is set
to coincide with the expiration date of a currently existing agreement between the
City, State Parks and the State Lands Commission that conveys jurisdiction of
the filled tide and submerged lands on Santa Monica State Beach from the State
Lands Commission to State Parks and subsequently to the City. This
agreement, in conjunction with the proposed operating agreement, allows the
City to take full responsibility for all State lands that constitute Santa Monica
State Beach.
As directed by City Council in December 2004 and as required by the Grant
Agreement with the Annenberg Foundation, the City and State have entered into
a separate operating agreement for the rehabilitation, operation and maintenance
of 415 Pacific Coast Highway known as the Marion Davies Estate. That
agreement has a fifty (50) year term with an option to extend for an additional fifty
(50) years. Revenue generated from the operation of the 415 PCH site will be
used to maintain the site.
BUDGET/FINANCIAL IMPACTS
In consideration of the services performed by the City, the State authorizes the
use of Santa Monica State Beach by the City on a rent-free basis. The
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agreement does not obligate the State to provide funding for operations or
improvements and therefore, the City is solely responsible for operations and
capital improvements. Funds to operate the beach and revenues derived from its
operation are appropriated annually in the City’s Beach Fund. In FY 05/06, the
City will spend $3,767,003 to operate and maintain Santa Monica State Beach.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate
and execute an operating agreement with the State of California Department of
Parks and Recreation for Santa Monica State Beach as outlined in this staff
report.
PREPARED BY: Barbara Stinchfield, Director
Elaine Polachek, Open Space Manager
Department of Community and Cultural Services
Marsha Moutrie, City Attorney
Reference Contract No. 8562 (CCS)
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