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sr-081109-8b (2)City 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 Additional documents available for review in City Clerk's Office.