sr-081109-8bCity Council Meeting: August 11, 2009
Agenda Item:
To: Mayor and City Council
From: Barbara Stinchfield, Director of Community and Cultural Services
Subject: Future Use of Beach Property Leased by the Jonathan Club
Executive Summary
On July 14, 2009, the City Council heard a staff report, received a submission by the
Jonathan Club and heard public testimony on the issue of whether there has been a
material change in the need for public use of the three beach parcels currently leased to
the Jonathan Club. At the request of Council at that meeting, the item was continued
until July 28, 2009 when Council considered additional information provided by City staff
and a revised submission by the Jonathan Club. Public comment was received and
Council requested that the item be carried over until August 11th in order to give the
public adequate time to review the Club's proposal.
Discussion
The Jonathan Club ("the Club") proposes that the City and the Club enter into a "First
Amendment to Permit for Improvements and Lease Option Agreement" ("the First
Amendment") with the following major terms:
^ An Option Term of ten (10) years commencing January 1, 2010 to and including
December 31, 2019 at which time the term shall terminate automatically.
• Payment of Annual Rent to the City in the amount of $125,000 due on January
1St of each year during the Option Term.
• Concurrently with the payment of Annual Rent during the Option Term, an
Improvement Fund Contribution of $75,000 per annum to the City for capital
improvements on Santa Monica State Beach to be used at the sole discretion of
the City after consultation with the Club.
1
Release of the City from any claims connected with a prior rental overpayment
made by the Club, estimated to be $212,300.
^ Release of the Club from any claims connected with any prior encroachments on
Santa Monica State Beach adjacent to the three beach parcels.
If the City Council elects to approve these terms, staff will return with a resolution
containing the appropriate findings, and subsequently the City Manager will negotiate
and execute the First Amendment and seek approval from the California Department of
Parks and Recreation as required in the City's Santa Monica State Beach Operating
Agreement.
Prepared by: Barbara Stinchfield, Director of Community and Cultural Services
Approved:
Barbara Stinchfield
Director, Department of Community
And Cultural Services
Forwarded to Council:
2
~r Supplemental
Santa Monica City Council Report
~1~+ Zook
City Council Meeting: ,
Agenda Item: b®g
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community and Cultural Services
Subject: Future Use of the Beach Property Leased by the Jonathan Club
Executive Summary
On July 14, 2009, the City Council heard a staff report, received a submission by the
Jonathan Club, and heard public testimony on the issue of whether there has been a
material change in the need for public use of the three beach parcels currently leased to
the Jonathan Club. Council. also asked for additional information and continued the item
for deliberation. This report supplies information responsive to the Council's questions
and the Club's arguments, and transmits documents supporting the oral presentations
made by City staff.
Discussion
Council asked for additional information about the evidence on changes in beach usage
since entering into the lease in 1984. This request reflected an apparent disparity
between the information supplied by City staff and the information supplied by the Club.
City staff provided statistics on beach parking, which are set forth in the beach parking
statistics included as Exhibit A to this supplemental report. These statistics reflect a
three-fold increase in beach parking car counts and beach parking revenues from FY
1984/85 to FY 2007/08, and quantitative data detailing this increase.
The Jonathan Club submitted statistics maintained by the County and argued that these
statistics show a "50% or more" decline in the usage of the north beach during that
same period of time. This argument of a steep decline is not supported by information
received by City staff from the County Lifeguards who maintain records of estimated
beach attendance. A summary of the estimated beach attendance compiled from the
County Lifeguards is attached in Exhibit B. The County's records reflect estimated
attendance in excess of 6 million visitors in the north beach during different periods of
the lease term and does not support the Jonathan Club's claimed sharp decline in
usage. Photographs of the Santa Monica beach taken on July 4, 2008, attached as
Exhibit C, reflect the public popularity of Santa Monica State Beach.
1
In addition, the Club's lease was entered into during a period known as "EI Nino." "EI
Nino" caused a significant increase in water temperatures and resulted in additional
visitors to the beach during this unusual weather phenomenon. As weather conditions
invariably cause fluctuations in beach attendance, the period of "EI Nino" was an
anomaly according to the Lifeguard's representative. Even taking into consideration the
"EI Nino' factor, and other weather variables, the County's own statistics for the North
Beach area do not reflect a sharp decline.
Over the past. several years, the County Lifeguards also represented to the City that due
to significant numbers of organized recreational groups and surfing instructors entering
the water at Santa Monica State Beach and the resulting demands upon the Lifeguards
and threat to public safety, a permitting system to limit and regulate surf and sand
camps and surf instruction was required. The County Lifeguards explained that with the
significant numbers of individual swimmers and surfers in the surf, their ability to also
oversee increasing numbers of organized groups, particularly youth, entering the water
was compromised. In response to the County, the City Council adopted an emergency
ordinance in 2004 and a revised ordinance in 2007establishing apermitting system for
organized surf groups, sand camps and surf instructors based in part on the above
findings. Copies of the staff reports and ordinances are attached as Exhibits D and E.
With this process in place, the City-run programs continue to experience increases in
summer surf and sand camp registrations, increasing from. 876 youth in the summer of
2005 to 1,176 in 2008. These do not include the additional numbers of participants at
private camps receiving permits.
Additionally, at the July 14th hearing, City staff noted that, since the inception of the
lease in 1984, four large beach hotels have been built in Santa Monica. Exhibit F lists
those hotels and the number of rooms at each.
City staff also discussed the public amenities that are needed on the North Beach,
including paddle tennis courts and walkways providing expanded capacity on the
current beach pathway and additional pathways across the beach towards the water.
The Jonathan :Club proposes to construct public paddle tennis courts north of the Club
and adjacent to public parking. However, the Club's proposed location may not be
suitable. In response to the City's request for paddle tennis courts when it was seeking
its coastal permit for the Annenberg Community Beach House, the California Coastal
Commission's expressed concerns about extending the line of development further
seaward, adverse cumulative impact on public access, and obstruction of public coastal
views. The Coastal Commission rejected the City's requested location. Copies of the
relevant pages of the Coastal Commission staff report and permit are attached as
Exhibit G, and a full copy of the staff report will be available at the meeting. In contrast,
the parcels leased by the Jonathan Club are suitable for development of recreational
amenities contemplated for the North Beach, including paddle tennis courts in that they
would not occur westward of the line of existing development along North Beach. Two
of the parcels are dirt, and Parcel 2 is currently adjacent to privately owned courts
surrounded by fencing and would not obstruct views.
2
The Jonathan Club asserts that the parcels are landlocked and not accessible. The
aerial photograph attached as Exhibit H identifying the pedestrian accessway
immediately south of the Club providing public access from PCH to the beach, and the
public parking to the north, reflects the parcels are accessible for recreational amenities
and would further promote public recreational'space in the North Beach. City staff is
prepared to respond to any further questions that the City Council may have in
response to this additional information.
Prepared by: Barbara Stinchfield, Director, Community and Cultural Services
Barbara Stincntiela
Director, Community and Cultural
Services
LIST OF ATTACHMENTS
A.Summary of Beach Parking Car Counts and Revenues By Fiscal Year
B. Los Angeles County Lifeguard Attendance and Service Level Statistics
C. Photos of the Santa Monica Beach on July 4, 2008
D. June 8, 2004 Staff Report Approving Emergency Ordinance to Regulate Group
Use of Water at Santa Monica State Beach
E. January 8, 2007 Staff Report relating to Water Activities, Surfing and Surf
Instruction at the Santa Monica State Beach
F. Increase in Number of Beachfront Hotels since 1984
G California Coastal Commission Staff Report Re Application Number 05-06-225,
dated 1/26/06, Applicant City of Santa Monica, Project Location City of Santa
Monica; and Permit
H. Aerial Photograph
3
Approved: Forwarded to Council
ExxlsiT A
Summary of Beach Parking Car Counts
.and Revenues By Fiscal Year
Fiscal Year End
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
2000/2001
1999/2000
1998/1999
1997/1998
1996/1997
1995/1996
1994/1995
1993/1994
1992/1993
1991/1992
1990/1991
1989/1990
1988/1989
1987/1988
1986/1987
1985/1986
1984/1985
Beach Parking Revenues
$5,550,577
$5,413,321
$5,111,353
$4,465,179
$4,913,557
$4,468,541
$4,912,695
$4,127,134
$3,229,785
$3,555,866
$3,703,912
$3,844,574
$2,978,019
$2,304,540
$1,948;584
$2,485,020
$2,462,850
$2,578,783
$2,494,488
$2,264,764
$ 2, 643,140
$1, 924,479
$1, 776,442
$1,670,690
Parking Count
1,640,733
1,635,707
1,572,374
1,387,921
992,195
969,595
860,476
751,384
512,760
618,794
688,159
704,025
475,370
431,785
364,353
417,750
370,021
533,695
488,848
484,221
517,553
517,322
539,967
533,913
ExxISIT B
SANTA MONICA NORTH STATISTICS
1984-2008
Year Attendance Rescues Preventions Ordinance Enf.
1984 7,800,050 775 40,844 n/a
1985 5,437,800 418 59,545 n/a
1986 4,367,650 442 43,341 n/a
1987 6;198,850 512 57,066 n/a
1 ggg x,370,700 229 50,388 17,881
1 ggg 5,677,750 765 59,027 20,282
4990 5,329,300 529 56,529 22,117
1991 5,233,750 388 45,046 17,278
1 ggg 7,621,085 518 47,836 20,555
1993 6,366,550 574 49,295 19,370
1994 4,735,500 416 50,229 18,019
1995 4,304,985 238 39,328 17,263
1996 . 5,928,850 745 53,997 17,634
1997 6,403,750 524 53,931 18,030
1 ggg 5,666,500 812 66,810 18,015
1 ggg 6,319,300 721 56,549 16,083
200 4,435,200 595 75,324 18,063
2001 4,724,300 478 67,733 18,064
2002 3,139,650 565 58,067 19,641
ZOOS 4,862,690 522 79,379 21,670
204 3,713,900 488 69,123 18,083
2005 3,287,850 343 48,100 10,019
2006 6,444,650 426 71,515 19,415
2~~7 2,865,850 284 62,643 25;520
2008 6,498,960 512 76,550 26,961
Santa Monica North Attendance
9,000,000
8,000,000
7,000,000
6,000,000
m
m 5,000,000
v
d 4,000,000
..
a 3,000,000
2, 000, 000
1, 000, 000
0
q~P ~0 0~ g0 00' 0~` 90 96 ~O p`L ~R b~ ~`b
~9 ^~ ~~ ~g ~~ ^~ ~~ ^9 ti~ ti~ ti~ ti~ tip
Year
Santa Monica North Rescues
900
800
700
600
m
F 500
v
w 400
m
K
300
200
100
0
0~` WrO 0p pp 0~' 0~` prO 0p Op p~' ph prO pp
'~~ h°j r~°' ,~°' ^°' ~Q ^9 ^°~ tip tip rL0 ryp tip
Year
ExxISIT C