sr-060909-1h~J
~;,YO, City Council Report
Santa Monica
City Council Meeting: June 9, 2009
Agenda Item:. d '-
To:_ Mayor and City Council
From: Eileen Fogarty, Director, Planning and Community Development
Department
Subject: Contract Amendment for Services Related to the .Economic Analysis and
Forecasting for the Land Use & Circulation Element (LUCE) and EIR
Recommended Action
Staff recommends that City Council authorize the City Manager to execute a contract
amendment with Whitney & Whitney, Inc. (Contract #8868) for $80,000 to a total
amount not-to-exceed $225,000, for economic analysis services in conjunction with the
Land Use and Circulation Element (LUCE) Update.
Executive Summary
An intensive effort is underway to refine the Land Use and Circulation Element (LUCE)
Strategy Framework resulting in a Final LUCE. The LUCE will reflect the direction from
Council, transportation modeling, fiscal analysis, investigation of implementation
strategies, and continued community outreach. To this end, the City has also initiated
aspects of the environmental review process in compliance with the California
Environmental Quality Act (CEQA).
To ensure that the community vision as expressed through the LUCE can become a
reality, the land use planning effort considers economic and market trends affecting
Santa Monica. The .economic analysis performed by Whitney & Whitney will provide
additional dimensions to inform the City Council's decision-making on the Final LUCE,
including assistance with forecasting, updated market information, comparative
economic analysis of alternatives, peer review of strategies for implementation and
refinement of economic strategies to achieve community goals. These studies will assist
the City Council in the consideration of alternatives, and confirmation of policy directions
in the LUCE and implementing actions.
The firm of Whitney & Whitney has expertise in the Westside market, and Santa Monica
in particular, and was an important resource in development of the Strategy Framework,
including drafting the economic sustainability chapter, and the plans, programs and
policies to ensure fiscal sustainability.
The contract amendment for Whitney & Whitney is necessary to continue to benefit from
the firm's expertise as the LUCE is refined. The amount of $80,000 is available in the
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current year (FY 08-09) budget, and brings the total not-to-exceed contract amount to
$225,000.
Background
The LUCE Update has been a high priority for the City Council. The City Council
approved the LUCE Strategy Framework with revisions in July 2008. The Framework
identifies an integrated land use and transportation strategy for Santa Monica that
conserves residential areas.
The Strategy Framework is being refined based on City Council direction, transportation
modeling, fiscal analysis, investigation of potential implementation strategies, and
continued community outreach. This multi-pronged effort incorporates the
environmental assessment, in compliance with CEQA requirements, including
evaluation of alternatives and assessment of outcomes.
Effective land use planning demands consideration of economic and market trends
affecting Santa Monica to ensure that the community vision as expressed through the
Final LUCE can become a reality. For example, it is critical to understand where the
market would lead without intervention, or where public effort is necessary to achieve
specific goals. These efforts are best done simultaneously and revisited periodically as
markets are fluid and change over time. Economic analysis will inform the Council as to
how it is possible to achieve the LUCE goals and objectives for a sustainable economy,
benefit neighborhoods adjacent to commercial and transit corridors, and create
affordable and workforce housing.
As part of this stage in the LUCE process, the City is performing comparative analysis
at the macro-scale through acity-wide fiscal analysis and at the micro-scale through
testing of implementation alternatives. These analyses can be used in the consideration
of alternatives and to confirm the rationality of policy directions in the LUCE and
implementing actions.. The professional services provided by Whitney & Whitney are
assisting in these analyses.
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Discussion
Whitney & Whitney has been a valuable resource for the City through the development
of the LUCE Strategy Framework chapter on economic sustainability, including the
plans, programs and policies to ensure fiscal sustainability. The proposed contract
amendment will allow continued involvement and assistance in economic refinement of
the land use planning effort, and will set the stage for the future implementation
strategies. such as the Zoning Ordinance update. Specifically, the primary tasks to
ground the refinements of the LUCE in market conditions include:
• Continued assessment of existing and future market conditions, including retail and
commercial trends, and continued assessment of market opportunities,
• Comparative analysis of implementation alternatives to ensure they are realistic and
economically feasible, and consideration of phasing strategies,
• Continued assistance in forecasting for the LUCE horizon year of 2020 and technical
resolution of State and County data sources,
• Assistance and peer review for comparative analysis of pro-forma testing, and assist
in the formulation of economic strategies to ensure positive effects on the community
are provided as part of changes in activity centers and along commercial transit
corridors,
• Assistance and peer review of fiscal analysis to facilitate a meaningful comparison
between the LUCE policies and EIR alternatives, including incorporation of the
potential efficiencies of concentrating new development in specific locations
associated with transit and other public services,
• Provide detailed market knowledge of West Los Angeles and Santa Monica
subareas as a foundation for economic analysis,
• Prepare presentation materials to summarize key economic findings, strategies and
recommendations.
Contractor/Consultant Selection
City Council approved the original contract with Whitney & Whitney, Inc. for professional
services on December 11, 2007. An RFO was distributed to five firms to procure
additional economic and financial expertise in order to develop a list of qualified
consultants. Whitney & Whitney has extensive public and private sector experience, and
a detailed knowledge of market and financial conditions in the Westside of Los Angeles,
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particularly in the areas of financial analysis and market forecasting. Mr. Whitney has
established both a national and international presence, and participated as a panelist in
the LUCE Industrial Lands workshop prior to being retained as a consultant.
Budget/Financial Impact.
Funds of $80,000 are available in account 01265.555060 after aone-time transfer of
$80,000 from Salaries and Wages in account 01265.511680 due to vacancies.
Prepared by: Francie Stefan, Community & Strategic Planning Manager
Approved:
Director, Pta~fiing
Development Dep
Forwarded to Council:
,,~~'''''-- .'w. ~ r ~,
P. ont Ewell
City Manager
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State of the Utility System
in Santa Monica
Southern California Edison
Mark Olson
Local Public Affairs
June 2009
C Environmental Energy Policies
AB 32 CA Global Warming
Solutions Act of 2006
33% renewable portfolio
standard by 2020
SB 1368
SB 1078 and AB 380
20% renewable
generation by 2010
Greenhouse Gases Emission
Performance Standard
SCE: Investing in the Future
• 45,000 - 50,000 new customers
annually, historically
• 12,000 new customers this year
due to economic downturn
• Will invest $20 billion during next 5
years to help reduce the nation's
dependency on foreign oil
• SCE grid enhancement to include:
- Installing new poles, wires and
substations, as needed
- Installing more than five million
new technologically advanced
meters fry
Investing in Cleaner, Smarter Energy for the Future
• Electric Plug-in Hybrid Vehicles
• Technology for Electrifying the
Port of Long Beach
• Smart Circuits
• Edison SmartConnectT"'
Advanced-metering
program
• Smart Transmission
Initiative
SCE Investment in i
• 2009-2010
In the City of Santa Monica, SCE is investing or planning to invest,
build, construct....
• 5 High Voltage Underground Switches to Replace
• 4 High Voltage Underground Cable Replacements
• 7 Replace Overhead Equipment
• Replace Poles - As Determined
• Continued Inspection and Maintenance Upgrades
• Utility Underground Project - 18t" Street/20t" Street/Ashland Place
Leader in Procuring Clean, Renewable Energy
SCE has the largest portfolio of renewable generation in the nation
SCE's Diverse Portfolio: Power Mix Comparison
0
,~~,___ 100% 100%
Nature
SCE 2007' California 20072 US 20073
Total 42% 39% 27%
Tehachapi Renewable Transmission Project
TI"1T1'1 . _ ._11 _I _1 w r~~ w e~ n i ~
2009 SCE Rate Forecast
• Electric rates are increasing
nation-wide
• Rate changes will help SCE
maintain reliability while building a
cleaner, smarter more efficient
electric grid for the future
• Increases will vary according to
customer type and usage
• SCE always looks to reduce its
operational costs before seeking
rate increases
• SCE offers many money-saving,
energy-efficiency and
conservation programs and
services
SCE Energy-Efficiency Programs and Services
Award-winning, energy saving
customer programs for homes
and businesses
Energy-efficiency rebates for
pool equipment, heating and air
conditioning, lighting and
appliances
CARE and FERA Programs to
provide financial relief for
income-qualified households
Local government energy
partnerships
Summary
^ SCE is streamlining its operations and enhancing its electric grid to make it cleaner
and smarter to meet the regions' ever increasing demand for power
^ We will continue to be a leader in procuring power from renewable generation
sources to protect the environment and reduce the state and the nation's
dependency on foreign oil
^ To help our customers use energy wisely and lower their electric bills, SCE offers a
variety of conservation tips and energy-efficiency programs and services
^ We are committed to partnering with city leaders, civic and community-based
organizations, business owners and residents to reduce or eliminate the impact of
project operations on local communities
For more information:
Please visit www.sce.com or call me: 310-315-3201
CA's Investor-Owned Electric Utilities
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Reference Amendment to
Contract No. 8868 (CCS).