M-030811CITY OE SANTA MONICA
CITY COUNCIL MINUTES
MARCH 8, 2011
A regular meeting of the Santa Monica City Council was called to order by Mayor Bloom at 5:50
p.m., on Tuesday, March 8, 2011, at City Council Chambers, 1685 Main Street.
Roll Call: Present: Mavor Richard Bloom
Councilmember Robert T. Holbrook
Councilmember Kevin McKeown
Councilmember Pam O'Connor
Councilmember Terry O'Day (arrived at 7:00 p.m.)
Councilmember Shriver (arrived at 6:50 p.m.)
Absent: Mayor Pro Tem Gleam Davis
Also Present: City Manager Rod Gould
City Attorney Marsha Jones Moutrie
Citv Clerk Maria M. Stewart
CONVENElPLEDGE On order of Mayor, the City Council convened at 5:50 p.m., with
Councilmembers Shriver, O'Day, and Mayor Pro Tem Davis absent.
Assistant City Attorney Joseph Lawrence led the assemblage in the
Pledge of Allegiance.
CLOSED SESSIONS There was no one present for public comment.
On order of the Mayor, the City Council recessed at 5:51 p.m., to
Councilmember• Shriven consider closed sessions and reconvened at 7:12 with Mavor Pro Tem
arrived at 6.30 p.m. Davis and Councilmember O'Connor absent, to report the following:
Councilmember O'Day 1-A: Conference with R
arrived at 7:00 p.m. Property:
City Negotiator:
Under Negotiation:
Owner of Record:
cal Property Negotiators
1814 Ocean Avenue
Miriam Mack, Economic Dev. Mgr.
Lease and Terms
Roscoe Real Estate L.P. (The Viceroy
hotel)
The City Attorney reported that this matter was not heard.
1-B: Conference `s~ith Legal Counsel -Existing Litigation:
March 8, 2011
Embassy LLC and PRG Embassy, LP v. City of Santa Monica et
al., Los Angeles Superior Court Case Number BS 119080.
The City Attorney reported that this matter was heard and no
reportable action was taken.
CONSENT CALENDAR:
1-C: Conference with Legal Counsel -Anticipated Litigation:
Consideration of whether to initiate litigation pursuant to
Government Code Section §49§b.9 (c): 9§4- 1§th Street -Case #
08COM113§, 2906 - 2nd Street -Case #09COM2037,1044 4th
Street, 1 case.
The City Attorney reported that this matter was heard and no
reportable action was taken.
1-D: Conference with Legal Counsel -Existing Litigation:
McKnight v. City of Santa Monica, Los Angeles Superior Court
Case Number BC 4§033b; Public Employment Relations Board
Case Number LA-CE §23-M.
The City Attorney reported that this matter was heard and no
reportable action was taken.
1-E: Confferenee with Legal Counsel -Anticipated Litigation:
Anticipate signitisant exposure to litigation pursuant to
Government Code Section §49§6.9 (b): 2 cases
The City Attorney reported that this matter was heard and no
reportable action was taken.
1-F: Conference with Legal Counsel -Existing Litigation:
Overove v. City of Santa Monica, Los Angeles Superior Court
Case Number SC 107126
Motion by Councilmember Holbrook, seconded by Councilmember
O'Day, to approve the City Attorney's recommended Settlement No.
9342 (CCS) in the amount of $24,000. The motion was approved by
the following vote:
AYES: Couneilmembers Holbrook, O'Day, McKeown,
Mayor Bloom
NOES: None
ABSTAIN: Councilmember Shriven
ABSENT: Councilmember O'Connor, Mayor Pro Tem Davis
All items were considered and approved in one motion unless
March 8, 2011
removed by a Councilmember for discussion.
Councilmember O'Connor Members of the public Joey Fullmer, Denise Barton, Jerry Rubin and
returned at ?:16 p. m. Linda Armstrong commented on various Consent Calendar items.
At the request of Councilmember Shriver, Item 3-C was removed
from the Consent Calendar. At the request of Mayor Bloom, Item
3-D was removed from the Consent Calendar.
Motion by Councilmember Holbrook, seconded by Councilmember
O'Connor, to approve the Consent Calendar except Items 3-C and 3-
D, reading resolutions by title only and waiving further reading
thereof The motion was approved by the following vote:
AYES: Councilmembers McKeown, O'Day, Holbrook,
O'Connor, Shriver, Mayor Bloom
NOES: None
ABSENT: Mayor Piro Tem Davis
1~"IINUTES 3-A: Approval of minutes of the February 8, February 13 and
February 22, 2011, City Council meetings, were approved as
submitted.
BIG BLUE BUS 3-B: BBB online store and website design -recommendation to
authorize the City Manager to negotiate and execute an amendment to
Contract No. 9094 (CCS) with Mortar Advertising, in the amotmt of
$14,300 for atotal of $95,435, for enhancements to the BBB's new
online store and website design, was approved.
AFF®I2DABLE HOUSING 3-C: Property management for City-owned affordable housing
properties -recommendation to authorize the City Manager to
negotiate and execute Contract No. 9343 {CCS) with Overland,
Pacific & Cutler, Inc., the amount of $143,236 over a 15-month
period, to provide property management services, including
contracting for and paying all operating costs, for City-owned
affordable housing properties located at 1616 Ocean Avenue, 419
Ocean Avenue and 1122 22nd Street, was presented
Councilmember Shriver advised he removed this matter from the
Consent Calendar to follow up on the comment from a member of the
public and ask if the tenants should have been given notice of The
proposed change in management. Staff provided additional
information and answered questions of Cormcil.
Motion by Councilmember Shriver, seconded by Councilmember
IVlarch 8, 2011
O'Day, to approve staff recommendation. The motion was approved
by the following vote:
AYES: Councilmembers McKeown, O'Day, Holbrook,
O'Connor, Shriver, Mayor Bloom
NOES: None
ABSENT: Mayor Pro Tem Davis
VICEROY HOTEL 3-D: Viceroy Hotel: Assignment of Lease -recommendation that
subject to satisfaction of the Labor Peace Provision of Section 6.11 of
the Lease, that the City Council authorize the City Manager to:
review and execute consent documents associated with the sale and
assignment of the Lease Agreement with Roscoe Real Estate Limited
Partnership to Seaside Hotel LP, for the Viceroy Hotel located at
1819 Ocean Avenue, Santa Monica; to review and execute consent
documents associated with the Sublease between Seaside Hotel, L.P,
and Seaside Hotel Lessee, Inc.; and, to execute other documents
required to affect the sale and assignment of the Lease Agreement and
Sublease, was presented.
Mayor Bloom advised he removed this item from the Consent
Calendar to clarify the proposed recommendation and obtain
assurances that the conditions reflect that all the relevant parties have
signed off on the labor part of the agreement. Staff confirmed the
conditions, provided additional information and answered questions
of Council.
Motion by Councihnember O'Day, seconded by Councilmember
O'Connor, to approve staff recommendation. The motion was
approved by the following vote:
AYES: Cormeilmembers Shriver, O'Connor, Holbrook,
O'Day, McKeown, Mayor Bloom
NOES: None
ABSENT: Mayor Pro Tem Davis
STUDY SESSION: 4-A: Water Self-Su~cieucy Strategy -recommendation that
WATER Council review and provide input on developing a plan to achieve
SELF-SUFFICIENCY water self-sufficiency by 2020, was presented.
Members of the public Conner Everts, Cargen Mazdelbaum, Mark
Gold, Andy Lipkin and Edward Osann spoke generally in support of
the recommendation and strategy.
Discussion ensued on the proposed strategy and public comment.
March 8, 2011
After discussion, on order of the Mayor, the information tivas received
and filed.
ORDINANCES: 7-A: Introduction and first reading of an ordinance of the City
PUBLIC PARKING of Santa Monica to amend Municipal Code Secfions 9.04.08.15.
STRUCTURES 060, 9.04.0815.070, 9.04.10.02.040 and 9.04.10.08.170 to
implement the Bayside Specific Plan and the Downtown Parking
Program and to facilitate the construction of new city-owned
parking structures, was presented with staff providing a
supplemental report making minor clarifications and including
recommendations and findings from the Planning Commission.
Member of the public Kathleen Rawson spoke hi support of the
proposed ordinance.
Motion by Councilmember McKeown, seconded by Councilmember
O'Day, to introduce and hold first reading of the ordinance amended
to include the recommendations and findings from the Planning
Commission and clarifications included in the supplemental report,
reading by title only and waiving further reading thereof. The motion
was approved by the following vote:
AYES: Councilmembers Shriver, O'Connor, Holbrook,
O'Day, iLlcKeown, Mayor Bloom
NOES: None
ABSENT: Mayor Pro Tem Davis
STAFF ITEMS: 8-A: Business terms and authorizations related to a public/
CIVIC AUDITORIUM private partnership with the Nederlander Organization for the
use and programming of the Santa Monica Civic Auditorium -
recommendation to approve the negotiated business terms for the use
and programming of the Civic Center Auditorium by the Nederlander
Organization; and, authorize the City Mariager to negotiate a
presenting AgreEment No. 9344 (CCS) with the Nederlander
Organization, was presented.
Members of the public Kim Baker, Jerry Rubin, Michael Robert
Myers, Linda Jassim, Mike Bone and David Newberg commented
and spoke generally in favor of the recommendation.
Considerable discussion ensued on the merits of the proposal and the
financial elements and planning involved under the different,
proposed options.
March 8, 2011
Motion by Councilmember McKeown, seconded by Councilmember
Holbrook, to approve recommendation, amended with direction to
staff to return with alternative funding and possible naming rights for ',
the Civic Auditorium. The motion was approved by the following
vote:
AYES: Couneilmembers McKeown, O'Day, Holbrook,
O'Connor, Shriver, Mayor Bloom
NOES: None
ABSENT: Mayor Pro Tem Davis
PA G ASSESSMENT 8-B: Civic Center/Downtown Parking Assessment -
recommendation to: Authorize development of a parking demand
reduction program designed to address event parking needs; approve
siting for a potential subterranean Civic Center Parking Facility with
the smallest feasible footprint beneath the existing Civic Center
surface parking lot, and determine number of spaces using analysis of
actual demand; and, defer construction of a potential new Civic
Center Parking Facility until after the completion of the major
pazking structure projects in The downtown and dependent on increase
in demand or reduction in supply, was presented.
Members of the public Gregg Heacock, Cindy Pfifer, Jeff Klocke,
Kent Smith, Eric Faber, Don Camacho, Steve Gibson, Anne Pearson,
Chris Volaski, Marlene Gordon, Zina Josephs, Murray Gould, Ellen
Brennan and Mike Feinstein commented on the various aspects of the
recommendation.
Motion by Councilmember O'Connor, seconded by Councilmember
O,Day, to approve staff recommendation, including the analysis for
the daily parking demand for the businesses on the Pier. The motion
was. approved by the following vote:
AYES: Councilmembers O'Connor, Holbrook, O'Day,
McKeown, Mayor Bloom
NOES: Councilmember Shriver
ABSENT: Mayor Fro Tem Davis
SPECIAL JOINT On order of the Mayor, the Council recessed the regular Council
MEETING WITH THE meeting and reconvened to a joint meeting with the Parking Authority
PARKING AUTHORITY at 10:47 p.m., with Mayor Pro Tem Davis absent.
INTERIM DOWNTOWN 8-C: Interim Downtown Parking Plan -recommendation That
6 March 8, 2011
PARKING PLAN City Council authorize the price incentive of $68.75 per month to
current downtown monthly parking pass holders to relocate to the
Civic Center; direct staff to develop a combined monthly parking pass
and monthly Big Blue Bus pass; and direct staff to proceed with
actions necessary to facilitate the demolition of buildings located at
1338-42 and 1334-36 5th Streets after the expiration of existing leases.
Recommendation that the City Council and the Parking Authority
authorize the City Manager/ Executive Director to negotiate and
execute a 4th amendment to Lease No. 1828 with Douglas Emmet
1998 that would enable the City to reimburse an amotmt not to exceed
$20 per month for each space relinquished in Parking Structure 2,
through January 1, 2026, was presented.
Members of the public Denise Barton, Mark Weintraub, Howard
Robinson, Kathleen Rawson, John Warfel, Peggy Molloy, and Chris
Harding expressed concerns regarding the loss of parking spaces due
to the proposed demolition of the buildings.
Motion by Councilmember Shriver, seconded by Councilmember
O'Connor, to approve the price incentive of $68.75 per month to
current downtown monthly parking pass holders to relocate to the
Civic Center; direct staff to develop a combined monthly parking pass
and monthly Big Blue Bus pass; and direct staff to proceed with
actions necessary to facilitate the demolition of buildings located at
1338-42 and 1334-36 5th Streets after the expiration of existing leases,
and amend to include the flexibility for staff on pricing up in the
Downtown and down in the Civic Center to create enough of a gap to
make the plan happen; to eliminate to the extent possible the capacity
to game the system by paying the daily rate; to make the shuttle
service coincident with the opening of the incentive program; and to
have regular updates from staff.
Motion to amend by Councilmember Holbrook, to include the option
of long-term parking at the Main Library. The motion was accepted
as friendly.
City Attorney Moutrie clarified for the record that the aLithority to be
delegated to the City Manager is to lower the discounted rates as
suggested, if in his judgment, that action will fulfill Council's
objective of causing parkers to relocate during this interim period.
The motion, as amended and clarified, was approved by the following
vote:
AYES: Councilmembers Shriver, O'Connor, Holbrook,
March 8, 2011
O'Day, McKeown, Mayor Bloom
NOES: None
ABSENT: Mayor Pro Tem Davis
Motion by Authority/Councilmember O'Connor, seconded by
AuthoritylCouncilmember O'Day, to authorize the City Manager/
Executive Director to negotiate and execute a 4th amendment to
Lease No. 1828 with Douglas Emmet 1948 that would enable the City
to reimburse an amount not to exceed $20 per month for each space
relinquished in Parking Structure 2, through January 1, 2026. The
motion was approved by the following vote:
AYES: Authority/Councilmember O'Day, Holbrook, Shriver
O'Connor, Chair/Mayor Bloom
NOES: Authority/Councilmember McKeown
ABSENT: Chair Pro Tem{Mayor Pro Tem Davis
Authority(Counciimember McKeown stated, for the record, that he
voted "no" because he feels this action rewards an opportunistic
demand on public money.
ADJOURNMENTJSPECIAL On order of the Mayor, the special joint meeting of the City Council
JOINT MEETING WITH and the Parking Authority was adjourned and a special joint meeting
REDEVELOPMENT with the Redevelopment Agency was convened at 11:50 p.m., with '',_ ___
AGENCY Mayor Pro Tem Davis absent.
VOTE TO CONTINUE Motion by Councilmember McKeown, seconded by Councilmember
PAST 11:00 P.M. O'Connor, to continua past 11:00 p.m. The motion was approved by
voice vote, with Councilmember Shriver voting in opposition and
with Mayor Pro Tem Davis absent.
REDEVELOPMENT 8-D: Bank Loan Financing and Payment of Redevelopment
FUNDS Funds to Finance Redevelopment Priority Capital Projects,
Modification of a Contract for Bond Counsel Services and
Authorization for City Manager to Exercise Options in
Agreement No. 9340 - reconmiendation #hat the Redevelopment
Agency adopt a Resolution No. 530 (RAS} identifying parameters for
and authorizing the Executive Director to enter into an agreement
with Wells Fargo Bank and take all necessary actions to obtain a bank
term loan in the amount of $60,000,000 for purposes of financing
redevelopment priority capital projects; and authorize prepayment of
payments due to the City pursuant to Implementing Agreement No.
9318 to Cooperation Agreement No. 9267 including the $60,000,000
from the Wells Fargo Bank term loan. Recommendation that the City
Council direct the Director of Finance to segregate the prepayment by
the Agency of funds due the City pursuant to Implementing
Agreement No. 9318 to Cooperation Agreement No. 9267, including
March 8, 2011
funds drawm from the Wells Fargo Bank Term Loan into a designated
account earmarked solely for funding redevelopment priority capital
projects; authorize the City Manager to negotiate and execute a
modification to increase the not-to exceed amoiurt by $130,000 to
$350,000 for the existing agreement with Stradling, Yocca, Carlson,
and Rauth for legal services related to the issuance of debt financing
by the City; authorize the City Manager to exercise the options to
purchase Agency real property pursuant to Second Implementation
Agreement No. 9340 (CCS); and, approve the proposed budgeT
changes, was presented.
Member of the public Denise Barton spoke in opposition to the
proposal.
Motion by Aaencv Member McKeown. seconded by Agency Member
O'Connor, that the Agency adopt Resolution No. 530 (RAS} entitled:
"A RESOLUTION OF THE SANTA MONICA REDEVELOP-
MENT AGENCY IDENTIFYING PARAMETERS FOR AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO
AN AGREEMENT WITH WELLS FARGO BANK AND TAKE
ALL NECESSARY ACTIONS TO OBTAIN A BANK TERM
LOAN IN THE AMOUNT OF $60,000,000 FOR PURPOSES OF
FINANCING REDEVELOPMENT PRIORITY CAPITAL
PROJECTS"; and authorize prepaymient of payments due to the City
pursuant to Implementing Agreement No. 9318 to Cooperation
Agreement No. 9267 including the $60,000,000 from the Wells Fargo
Bank term loan. The motion was approved by the following vote:
AYES: Agency Members McKeown, O'Day, Holbrook,
O'Connor, Chair Bloom
NOES: Agency Member Shriven
ABSENT: Chair Pro Tem Davis
Councilmember Shriven advised, for the record, he voted in
opposition not because he is not in favor of the project but because he
has not had time to adequately study the proposal.
Motion by Councilmember McKeown, seconded by Councihnember
O'Connor, that the City Council direct the Director of Finance to
segregate the prepayment by the Agency of funds due the City per
Implementing Agreement No. 9318 to Cooperation Agreement No.
9267, including funds drawn from the Wells Fargo Bank Term Loan
into a designated account earmarked solely for fiu~ding
redevelopment priority capital projects; authorize the City Manager to
negotiate and execute a modification to increase the not-to exceed
amotmt by $130,000 to $350,000 for the existing agreement with
March 8, 2011
Stradling, Yocca, Carlson, and Rauth for legal services related to the
issuance of debt financing by the City; authorize the City Manager to _ _
exercise the options to purchase Agency real property pursuant to 2nd
Implementation Agreement No. 9340 (CCS); and, approve the
proposed budget changes. The motion was approved by the following
vote:
AYES: Councilrnembers O'Connor, Holbrook, O'Day,
McKeown, Mayor Bloom
NOES: Councilmember Shriver
ABSENT: Mayor Pro Tem Davis
ADJ®i7RNMENT OF On order of the Mayor, the Special Joint meeting with the
SPECIAL JOINT Redevelopment Agency was adjotuned and the regular City Council
MEETING meeting reconvened aL 12:12 a.m., with Mayor Pra Tem Davis absent.
C®UNCIL ITEMS: 13-A: Annual appointment to one position on the Pier
APPOINTMENTS Restoration Corporation for terms ending on November 11, 2014.
On order of the Mayor, the floor was opened for nominations.
Mayor Bloom nominated Alan Lipski.
Councilmember McKeown nominated Barry Snell
Mr. Snell was appointed by the following vote:
Lipski: Councilmember O'Connor, Mayor Bloom
Snell: Councihnembers McKeown, O'Day, Holbrook,
Shriver
Absent Mayor Pro Tem Davis
AIRPORT COMMISSION 13-B: Appointment to one unscheduled vacancy on the Airport
Commission for a term ending on June 30, 2011.
On order of the Mayor, the floor was opened for nominations.
Councilmember McKeown nominated David Goddard. There being
no other nominations, Mr. Goddard was appointed by acclamation,
with Mayor Pro Tem Davis absent.
RELOCATION ASSISTANCE 13-C: Request of Councilmember Mcl~eown that the Council
direct staff to explore issues raised in the Rent Control Board
memo to Council of February 22nd, including the amount and
s#ructure of relocation assistance in certain no-fault evictions,
and the e%tension of relocafion assistance and tenant harassment !,
protections to non-controlled units where tenants gained no-fault ''
10 March 8, 2011
eviction protections with the passage of Measure RR; and return
_ with recommendations and suggested potential changes to City
ordinances for Council considerafion, was presented.
There was no one present for public comment.
Motion by Councilmember McKeown, seconded by Councilmember
Shriver, to approve request. The motion was tmanimously approved
by voice vote, with Mayor Pro Tem Davis absent.
USE OF COUNCIL 13-D: Request of Mayor Bloom that the City Council waive
CHAMBERS customary fees for use of the Council Chambers to allow the
California State Historical Resources Commission to host a
public meeting on Thursday, May 19, 20ll, from 9:OOa.m., to
4:00 p.m., was presented.
There was no one present for public comment.
Motion by Councilmember O'Connor. seconded by Councilmember
Shriver, to approve request. The motion was unanimously approved
by voice vote, with Mayor Pro Tem Davis absent.
PUBLIC INPUT: On order of the Mayor, the City Council meeting vvas adjourned at
12:24 a.m., in memory of Alan Tainsky.
ATTEST: APPROVED:
~~
\ ~° ~
Maria M. Stewart Richard Bloom
City Clerk Mayor
1 i March 8, 2011