SR 11-01-2011 4A10s
City Council Report
City of
Santa Monies
City Council Meeting: November 1, 2011
Agenda Item: _7A__
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Santa Monica Business Districts and the Local Economy Study Session
Recommended Action
Staff recommends that the City Council review and comment on issues relating to the
City's business improvement districts.
Executive Summary
This study session is intended to provide the City Council with an opportunity to hear
from Santa Monica's business improvement districts regarding matters affecting their
organizations and members. The business districts include Downtown Santa
Monica, Inc., Main Street Business Improvement Association, Pico Improvement
Organization and Montana Avenue Merchants Association, as well as the Santa Monica
Chamber of Commerce representing Santa Monica's other retail areas where business
improvement districts have not been established. This report also provides a brief
overview of the local economy and highlights key ways the City currently supports local
businesses.
Discussion
The last few years have been difficult for many businesses in Santa Monica as the
economy continues to recover slowly. Santa Monica is fortunate to have strong
business partners who are committed to keeping the City's business districts vibrant
and competitive.
The Economy
On the national level, the economy has been growing at a relatively slow pace after
emerging from the worst recession since World War II. The fourth quarter of 2010 was
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the sixth consecutive quarter of increased growth as measured by Real Gross Domestic
Product (GDP). Although retail sales, consumer spending, and consumer confidence
have all showed recent signs of improvement, there are still some troubling indications
in certain areas of the economy. For example, unemployment at national and local
levels remains at an all -time high. As of August 2011, Santa Monica's unemployment
rate stood at 10.5 percent, while Los Angeles County's rate hovered at 12.7 percent.
Reports show that while the housing market appears to have bottomed out, there has
not been significant recovery.
Taxable Sales: Historically, Santa Monica has been more resilient than its neighbors in
tough economic times due, in large part, to a relatively strong, diversified economy (see
Attachment A). However, the most recent recession has had an impact on taxable
sales in Santa Monica. Starting in 2006, taxable sales began dropping and remained
sluggish until 2010. During 2009 -2010, citywide taxable sales experienced positive
growth of 4.5 percent. Sales activity in the first quarter of 2011 was 13.3 percent higher
than the same quarter one year ago. This increase is, in part, due to the re- opening of
Santa Monica Place in August 2010, strong sales in motor vehicles, and new business
openings, which helped boost revenues in several categories, including general
consumer goods and restaurants. Higher fuel prices have increased revenue generated
from service stations, while also contributing to higher business operating expenses.
With the exception of the Third Street Promenade, retail sales growth in the City's
business improvement districts has been slower than in the City as a whole (see
Attachment B.)
The following table displays the annual percentage change in taxable sales per district.
N
Annual Percentage Change
2005 -06
2006 -07
2007 -08
2008 -09
2009 -10
Third Street Promenade
-4.7%
-2.9%
-5.5%
6.2%
10.3%
Santa Monica Place
- 12.9%
-26.4%
-39.5%
-37.1%
261.7%
Downtown Santa Monica
rest of area)
6.3%
-1.6%
-9.2%
-10.4%
-1.3%
Montana Avenue
-2.9%
7.0%
-12.6%
-15.7%
-3.3%
Pico Blvd.
-3.7%
7.0%
-4.6%
-6.5%
0.2%
Main Street
3.8%
5.8%
-8.0%
-4.2%
-1.2%
Citywide
0.6%
-2.36%)
-9.8%
-11.8%
4.5%
Source: i ne Hai Uompany
Retail Space: Shops and restaurants are key generators of pedestrian activity within
Santa Monica's business improvement districts. Vacant storefronts can disrupt the
pedestrian rhythm and detract shoppers and diners from traveling to the next storefront.
As a result, extended storefront vacancies can negatively affect the public's perception
of an area and adjacent shops and restaurants. While retail vacancies are not tracked
by the commercial real estate community in the same way as are office vacancies, a
recent review of online listings for available retail spaces under 30,000 square feet
identified 71 listings in Santa Monica, representing a total of 214,393 square feet of
retail space available for lease citywide. Monthly asking lease rates for these listings
ranged from $3.08 to $13.65 per square foot, per month. The same on -line listing
service reported that citywide, asking retail rental rates decreased between August
2011 and August 2010 by 4.8 percent, indicating a continuing soft retail real estate
market.
Office Space: Offices are important to Santa Monica's business districts as they supply
customers for many restaurants and shops. Significant vacancies can negatively affect
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nearby stores and restaurants. With over 8.2 million square feet of office space, Santa
Monica is home to several large, widely recognized companies and many smaller
companies and starts -ups. Santa Monica's office vacancies peaked at 16.2 percent in
the first quarter of 2010. By the second quarter of 2011, the office vacancy rate had
dropped to 9.6 percent, one of the lowest rates in California, while Class A office asking
rents had increased to $4.63 per square foot, an 11.4 percent increase from the
previous year. Downtown Santa Monica is experiencing its highest occupancy rate
since 2008.
Santa Monica Businesses: There are approximately 6,500 businesses in Santa Monica
that employ more than 73,000 people. Santa Monica's seventy -seven largest
employers (as defined with a staff of 100 or more) employ nearly 36 percent of the total
local workforce; however, nearly 88 percent of Santa Monica's businesses can be
categorized as small businesses that employ less than 20 people. Since 2008, the
number of people working in Santa Monica has dropped by eight percent, while the
number of businesses has remained steady, reflecting lower average employment per
business. The total number of new business licenses that the City processed in 2010
was approximately 1,700, an amount that has held steady for the last three years.
Business Improvement Districts: Santa Monica has four business districts that have
organized to help work towards the economic vitality of their areas. These four
business improvement districts represent nearly 20 percent of the total number of retail
business establishments in Santa Monica. The four Business Improvement Districts
( "BIDs ") are. the Pico Improvement Organization ( "PIO "); the Main Street Business
Improvement Association ( "MSBIA "); the Montana Avenue Merchants Association
( "MAMA "); and Downtown Santa Monica, Inc. ( "DTSM "). Each of the business districts
was established by ordinance of the City Council. PIO and MAMA are funded solely by
assessment on businesses, which the City collects and remits to the organizations.
DTSM and MSBIA receive revenues from both businesses and property owners, who
pay assessments for specialized services. PIC, MSBIA and MAMA receive annual
0
business -based assessments ranging from $80,000 to $115,000. Property -based
assessments vary depending on the size of the improvements or land. Attachment C
provides an overview of each BID, how it is organized, and its primary services.
The BIDs use their funds for marketing, supplemental services and promotional events,
all of which are designed to help to create more vibrant and viable business districts.
The mission of these business districts is to advocate for and represent business
interests, highlight issues affecting the community, and promote the economic stability
and growth of their member businesses.
Business Support Services
In addition to the BIDs, the Santa Monica Chamber of Commerce and the City serve as
resources to the local business community. The Chamber helps promote local area
businesses and works with professional, business, and community organizations for the
benefit of its members and the local economy. The City supports and promotes local
businesses through a variety of programs, including:
1. The Buy Local Santa Monica program was created by representatives of the
business community and the City to raise awareness of the community,
economic and environmental benefits of choosing local first. It is a free program
for all Santa Monica businesses designed to provide marketing support and to
build customer loyalty. To date, nearly 400 businesses have joined the Buy
Local campaign (www.buylocalsm.com).
2. The Santa Monica Alliance was formed jointly by the Chamber of Commerce and
the City to nurture Santa Monica's business climate
(www.santamonicaalliance.com). The partnership has intervened and been
responsible for helping to retain several large and small employers in Santa
Monica. The Alliance draws attention to City processes that impede business
operations. In response to concerns raised by the Alliance, the City has initiated
the e- Permits process for plan approval that includes response time targets to
encourage quicker turn - around time for plan review and approval. The City has
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also created an ombudsman to assist with permitting issues and has reached out
to welcome new businesses and thank existing businesses for choosing Santa
Monica.
3. The Santa Monica College Small Business Development Center ( "SBDC ")
provides free support and assistance to current and prospective small business
owners, including support on accessing financing (including SBA loans and
micro - credit) and low -cost workshops covering everything from financial planning
to social media marketing. The City partners with the SBDC on a variety of
programs and provides free rent at the Santa Monica Airport.
4. The Business Greening Program helps local businesses adopt environmental
practices that are sustainable and profitable. Managed by Sustainable Works,
the program reflects a partnership among the City, Convention & Visitors Bureau
and Chamber of Commerce.
.5. Santa Monica City Net is the City's broadband initiative to support an
environment for local businesses to compete in the global economy with
advanced network solutions. City Net's fiber optic network has been effective in
attracting technology companies to Santa Monica and supporting existing Santa
Monica businesses with a leading broadband infrastructure.
6. Liaison and Communication Services. The City's Office of Sustainability and the
Environment is responsible for developing and implementing policies and
initiatives that promote sustainable practices and protect the environment, while
the Housing and Economic Development Department is committed to promoting
a sustainable and vibrant economy in Santa Monica. Cooperatively, City staff
serve as liaisons to the business improvement districts as a means to facilitate
communication with City Hall and to target support to individual businesses.
D
BID Priorities
Staff invited each of the business improvement districts, as well as the Chamber of
Commerce, to attend the study session and make a ten - minute presentation to Council.
Staff also invited each BID to advise staff of particular areas of concern that they
wanted to bring to the Council's attention. The responses are included at Attachment D.
Financial Impacts & Budget Actions
There are no financial impacts associated with conducting the study session. If Council
wishes to implement new programs or practices, staff will return with an evaluation of
resource implications.
Prepared by: Erika Cavicante, Senior Development Analyst
Approved:
Housing and Economic Development
Attachments:
Forwarded to Council:
Rod Gould
City Manager
A. Santa Monica Employment (by NAICS Sector)
B. Taxable Sales
C. Overview of Business Improvement Districts
D. Written material from BIDS
E. Staff responses to written material from BIDS
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Attachment A
Santa Monica Employment (by NAICS Sector)
a ACCOMMODATION & FOOD SERVICES
PROFESSIONAL, SCIENTIFIC, & TECHNICAL
SERVICES
a HEALTH CARE & SOCIAL ASSISTANCE
® INFORMATION
RETAIL TRADE
a LOCAL GOVT
OTHER SERVICES
® REAL ESTATE & RENTAL & LEASING
m FINANCE & INSURANCE
® EDUCATIONAL SERVICES
m WHOLESALE TRADE
a ADMIN & SUPPORT & WASTE MGMT &
REMEDIATION
ARTS, ENTERTAINMENT, & RECRETION
,21 CONSTRUCTION
Source: 2010 Average Annual Employment, by NAICS Sector, or the Quarterly Census of Employment and Wages, CA EDD -Labor Market
$350;000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Attachment B
Taxable Sales for City of Santa Monica Business Districts
Annual Sales Adjusted to 2010 Dollars
2005 2006 2007 2008 2009 2010
Source: The HDL Company
—Third Street Promenade
— Downtown SM
(outside 3rd St & SM Place)
—SM Place
—Main Street
—Pico Blvd
—Montana Ave
Attachment C
Business Improvement Districts (BIDS) - Main, Montana, Pico, and Downtown Santa Monica
Annual Assessment Annual
District Contact Info Year Formed # of Businesses Mission Statement Boundaries Event
a. Main Street
Gary Gordon, Executive Director
Improve economic health and climate of
Main Street from Pico Blvd. (N)
1. Summer SOULStice
Tel: (310) 899 -9555
1984
$115,000
the Main Street business improvement
to Southern City Limits
2. Holiday Event
Email: msmastaff@netvip.com
350
district in Santa Monica.
just south of Marine Street
Oversees the Main Street Lighting and
Lighting and Sidewalk Cleaning Assessment District:
2008
$88,632
Sidewalk Cleaning Assessment District
157 properties
initiated in FY 03109.
b. Montana Avenue
Mark Wain, Chairperson
- Promote business and
Montana Ave. from centerine of 6th Court
1. Sidewalk Sale
Tel: (310) 525 -0234
1974
$100,000
commerce within the
to the centerline of 17th Street
2. Halloween Event
Email: caffeluxxe@griail.com
350
Montana Avenue Business
3. Holiday Walk
Improvement Area.
4. An Walk
c. Pico Boulevard
Robert (Bob) Kronovet, Chairperson
Promote business and
Pico Blvd. from the Pacific Ocean to the
1. Classic Car Show
Tel: (310) 829 -9303
2000
$80,000
commerce within the
Eastern City Limits at Centinela Blvd.
2. Ar Walk
Email: robertkronovet @earthlink.net
400
Santa Monica Pico Blvd
Business Improvement Area.
d. Downtown Santa Monica
Kathleen Rawson, CEO
DTSM, Inc. oversees several business-
Downtown: Wilshire Blvd, on the north,
DTSM, Inc. oversees
- Downtown Santa Monica, Inc, (DTSM, Ina)
1986
Downtown: $825,000
based and property4based Business
Broadway on the south, Second St on
hundreds of events and
Tel: (310) 393 -0355
625
Improvement Districts within Downtown
the west and Fourth Street on the east
produces annual community
Email: krawson @downtownsm.com
Santa Monica which includes the Cental
activities such as "ICE" —
1966
CBD: $150,000
Business District (CBD), and the new
CBD: Wilshire Blvd. on the north,
tlowntown's !be rink; and
930
Downtown Santa Monica Property
Colorado on the south, Ocean Ave on the
other holiday programs,
Based Assessment District(PSAD)
wrest, and and Seventh St on the east.
lighting and decorations.
2000
PBAD: $3,450,000
initiated in FY 08109.
DTSM, Inc. also provides
436 properties
READ : Ocean Ave to the west, Seventh St,
enhanced maintenance and
to the east, Santa Monica Freeway to the
manages the Ambassador
south, Wilshire Boulevard on the north.
Program.
Attachment D
Top Five Issues
Santa Monica Chamber of Commerce / Top Shared Concerns of BIDs
1. Business ombudsperson in the Office of the City Manager
2. City sponsorship of Chamber and BID - organized community events
3. Quarterly district walk - throughs with liaisons from City Hall
4. Consistency of enforcement for new businesses and remodels
5. Implementation of a shuttle to precede or correspond with the light rail
Downtown Santa Monica, Inc.
1. Parking Availability
2. Infrastructure Improvements
3. Circulation and Way - finding
4. Food Trucks
5. Street Feedings
Pico Improvement Organization
1. Mandate Zoning Regulations to stimulate active frontage
2. Ombudsperson to assist with guidelines and checklists on how to open new businesses
3. Parking: Update Meters to accept cards and One Park -Free Day a month
4. Traffic Light needed at 31 st & Pico
5. Deregulate signage restrictions
Main Street Merchants Association
1. Employee Parking Program
2. New and improved Crosswalks
3. Transportation Fee Adjustment (businesses whose employees are walking, cycling,
carpooling, or taking the bus should be rewarded).
4. City pursuit of contractual change in Lot 11
5. Zoning change north of OPB to allow 2 restaurants per block instead of one (as 21block
are allowed south of OPB).
Montana Avenue Merchants Association
1. Parking Availability
2. Infrastructure Condition
3. Street Safety
4. Food Trucks
5. Absentee Ownership
Attachment E
Staff Response to the Top Five Issues Submitted by the Santa Monica Chamber of
Commerce and the Business Improvement Districts
Santa Monica Chamber of Commerce / Ton Shared Concerns of BIDs
1. Business ombudsperson in the Office of the City Manager
In 2010, the City Manager's Office assigned David Martin with the responsibility of
assisting Santa Monica's businesses with strategic issues. David Martin is now the
Director of the Planning and Community Development Department. He will be keeping
his ombudsman role as it relates to planning and building and safety matters. Other key
divisions including Parking, Business and Revenue Operations, ISD and Finance have
designated lead contacts to respond to individual questions affecting local businesses.
The Economic Development Division continues to provide staff support to the BIDs as
the City's liaison officers and assists the business organizations and individual businesses
with economic development matters. The lead contacts outlined above meet on a
quarterly basis, under the umbrella of the Santa Monica Alliance, with Chamber staff,
representatives of the local business community and local real estate brokers.
2. City co- production of Chamber and BID - organized community events
A City co- produced event is one that has significant City staff involvement in both the
planning and the implementation of the event, together with a non -city entity. To be
considered an event co- produced by the City, City staff must be involved in all aspects of
the event including creative direction, funding and fund development, marketing and
media relations, and staffing and support services.
On October 25. 2011, an ordinance amending the City's Community Events Ordinance
was introduced for first reading, and presents two important changes: Under Santa
Monica Municipal Code Section 4.68.080(d), a permit application fee and /or
administrative fee is not required for events that are produced or co- produced by the City
or by City- funded entities contractually required to operate or oversee specific public
venues used for community events. Further, under Section 4.68.140(a), regardless of the
event organizer, City departmental service charges incurred in connection with or due to
the permittee's activities under the permit must be paid. In addition to the variety of
events that the City produces in -house (e.g. SM Festival, GLOW), the City also co-
produces events on a case -by -case basis, depending on Council direction and City
programmatic goals and objectives. Recent co- produced events include the Buy Local
EXPO, the Honoring the Sea opening event for the World Festival of Sacred Music, and
the Alternative Car/ Build Shows. In this current fiscal year, Council approved a
discretionary fund in the amount of $2,500 each to support the Pico (PIO), Main
(MSBIA) and Montana (MAMA) BIDs with the costs of organizing community events
(e.g. police staffing, fire inspections, permit fees, temporary use permits for sidewalk
sales, etc.). Co- produced events have revenue implications. Further review may be
necessary, at Council direction, to address this issue, as there are potentially some
significant staff and budget implications involved. There may also be further
opportunity for campaigns, such as Buy Local Santa Monica, to offer marketing
sponsorship support to the BIDs for events that help to raise awareness of local
businesses and the buy local messaging, pending available funding.
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3. Quarterly district walk - throughs with liaisons from City Hall
City staff from various departments including Public Works, Housing and Economic
Development, and Planning and Community Development have participated in business
district walk - throughs as requested. The Economic Development Division (EDD)
provides staff liaisons to the boards of the four business improvement districts (PIO,
MSBIA, MAMA, Downtown SM Inc), the Buy Local SM Steering Committee and Santa
Monica Alliance Committee. EDD staff who attends the monthly board meetings serves
as a point of contact for City services for these organizations and can coordinate
scheduled walk - throughs of the BID districts with other City staff, as needed. BID
representatives are also encouraged to report problems through the GoRequest on -line
reporting system.
4. Consistency of enforcement for new businesses and remodels
Planning and Community Development (PCD) has instituted several strategic, systemic,
and staffing innovations to improve the plan review and permitting processes, reduce
timeframes, achieve better outcomes, and provide professional and proficient services.
New systems include the E -plan permitting which was unveiled this year to expedite the
permit and review process, reduce time, and save money by eliminating the need to
submit multiple copies of plans. In addition, the Building and Safety Division appointed
an ombudsman/envoy to assist businesses and residential property owners and added a
new code compliance division manager to provide pro- active code compliance support
and consistent enforcement.
5. Implementation of a shuttle to precede or correspond with the light rail
As stated in the LUCE, multi -modal transit connections are a high priority for the City,
and efforts are underway to expand safe walking and bike routes, bike parking, and bike
and ride options. Providing multi -modal options for the three Exposition Light Rail
stations is a crucial element of the service. City Council considered these issues on
September 27, 2011 during the discussion of Coordinated Planning and Implementation
of Circulation Improvements in the Downtown and Light Rail Station Areas.
In addition, the City initiated "Downtown Ride," an interim service to improve parking
and circulation in anticipation of the upcoming renovation of parking structures in the
Downtown area. Council discussed the Interim Parking Plan on March 8, 2011. The
service is being closely monitored to determine rider demand for this type of shuttle in
comparison with existing service along the 4°i St. and 2nd St. corridors.
Elsewhere in the City, Big Blue Bus and Planning and Community Development staff are
in the process of planning ways to improve circulation and transit options to serve the
other Expo stations and the business districts. Route 5 is in place to serve the Bergamot
Station and Memorial Park stations, but service enhancements will likely be required to
transport the projected increase of riders. Several transit options are being considered
alone and in combination, including shuttles, dedicated vehicle lanes, fixed -route transit
options and dedicated bus lanes. An additional goal of the study will be to determine a
replacement for the service provided by the retired Tide Ride to meet the needs of various
downtown and hotelier stakeholders. The Bike Action Plan will be going before the
Council for approval in November. One of the key components of the Plan is to provide
for first-mile/last—mile bike facilities that encourage bike use to and from the stations.
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Downtown Santa Monica, Inc.
1. Parking Availability
The City has been working closely with DTSM, Inc. on parking needs in the Downtown.
An Information Item posted on August 24, 2011, outlined the City's Interim Parking Plan
that would be in effect during the time of several public works construction projects in
the Downtown over the next several years, and the plans to provide and manage public
and private parking resources in the near -term. Parking strategies that are currently being
implemented include the rebuilding and expansion of Parking Structure 6, the provision
of replacement parking for Parking Structure 3 and implementation of shared parking
strategies to better utilize existing facilities, such as real time parking availability
signage, higher use of perimeter lots, and utilization of privately owned spaces during
off -peak periods (e.g. evening, weekends). (See also Pico Issue #3 response). The
Downtown Specific Plan will develop long term parking strategies to address the LUCE
expansion of the downtown borders and define continuing policies to support the vision
for the Downtown.
2. Infrastructure Improvements
DTSM has stated that infrastructure and public amenities around the Downtown need to
be updated and refreshed. Staff from Public Works is conducting an assessment to
address the condition of improvements and the items requiring upgrading/replacement.
Recommendations from DTSM will be evaluated in terms of constructability, durability,
and compatibility with other materials, equipment and furniture. In addition, funding for
future improvements will need to be identified. Concerns about a broader strategy which
addresses the wayfinding, real time parking signage and circulation enhancements will be
incorporated into the Downtown Specific Plan. Implementation will require a funding
plan for future capital projects.
3. Circulation and Way- Finding
The capital projects planned in the Downtown area (Exposition Light Rail station,
Colorado Esplanade, Palisades Garden Walk, and new private development) will require
an updated wayfinding system to help direct residents, employees and visitors to their
destinations. The wayfinding system will need to address a broad range of issues that
relate to pedestrian, bicycle, transit and vehicle circulation, Exposition Light Rail station
access, district identity, visitor service and overall economic viability. Several major
studies, including the Bike Action Plan and Downtown Specific Plan include a limited
amount of funding for wayfinding conceptual design. Coordination of the wayfinding
design will be an important focus. Planning and Community Development (PCD) staff
will be working closely with DTSM and their consultants on the review, implementation
and coordination of an over- arching wayfinding program. PCD is also currently
completing the Real -Time Beach Parking project, which includes the installation of new
dynamic wayfinding signs at key entrances to the City, including the Downtown. These
signs will be designed and installed to ensure long -term compatibility with other future
wayfinding projects.
The efforts need to be coordinated, and system put in place that reflects the individuality
of the Downtown area while linking the wayfinding for this area to the City as a whole.
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4. Food Trucks
City Council conducted a Study Session on Mobile Vending Trucks on June 21, 2011,
and gave direction to staff to return with a recommendation to create a permanent
permitting mechanism to allow mobile food vending operations on private property, to
better control traffic and safety problems caused by food trucks on Main Street and
Pennsylvania Avenue, and to propose legislation that would give cities more flexibility to
manage on- street food vending for other than traffic and safety concerns. An
interdepartmental committee has been meeting to develop options for Council's
consideration. On November 8, 2011, Council is scheduled to consider an ordinance
regarding Main Street mobile vending trucks in light of the traffic and safety concerns
that these operations create.
5. Street Feedings
The City of Santa Monica's goal is to support an effective network of social services and
housing services for homeless people, linking outdoor meal providers with other social
services. Outdoor meal providers are typically ad hoc, informal or religiously
affiliated. Over the years, many of these outdoor groups have chosen Santa Monica as
the location to express their charitable actions. The City's policy, beginning as far back
as 1991, recognized that emergency services such as meal programs are most effective
when embedded with other support services to provide permanent solutions to end
homelessness. Outdoor meal providers assert that they have a right to conduct feedings
in public spaces and express the concern that moving their activities indoors might limit
access to food for some homeless persons. City staff continues to monitor the conditions
and impact of these activities carefully and enforce existing ordinances, when
warranted. City staff will continue efforts to engage these groups - including an outreach
letter to all known food distribution groups, periodic visits by staff to food distribution
sites and efforts to link them with existing indoor social services or other more
appropriate venues.
Pico Improvement Orizanization (P10)
1. Mandate Zoning Regulations to stimulate active frontage
PCD recently hired a dedicated Deputy Director for Special Projects to oversee the
comprehensive update of the City's zoning ordinance, in order to improve the clarity,
readability, and to implement the goals and policies of the LUCE. Outreach to
community stakeholders is underway and will include working with each BID. The
Zoning Ordinance update goals and timeline was presented to Council on October 25,
2011.
2. Ombudsperson to assist with guidelines and checklists on how to open new
businesses
Over the last year, City staff have revamped the City's website, adding new resources and
information to assist new and existing businesses, including a checklist on Opening a
Business in Santa Monica, an overview of business incentives and support available, key
contacts, economic data, online business license registration, GoRequest system and
more. Staff has also been working closely with the Chamber to create business
marketing materials, including the Passport Santa Monica and the SM Alliance website,
which links to both the City and Chamber websites and also provides case studies, key
City contacts, etc. Staff will continue to work with the BIDS to ensure they are aware of
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these resources and get feedback on other tools that may help them with outreach to their
new members. (See also Chamber Issues #1 and #3).
3. Parking: Update Meters to accept cards and One Park -Free Day a month
At the October 25, 2011 Council meeting, the Council authorized the City Manager to
negotiate and execute a sole source purchase and operating agreement for the purchase
and installation of 6,100 parking meters with ground sensors throughout the City. This
will result in all of Pico Blvd's parking meters being replaced with new meters that
accept credit cards and can be adjusted to accommodate varying parking time limits, peak
rates, etc.
In addition to generating revenue, parking meters are deemed to be an effective tool in
managing parking supply and demand in the business districts. Parking is currently free
on Pico Blvd every Sunday. Establishing additional free parking days has revenue
implications and may also lead to other parking problems, such as employee parking at
the expense of customer parking.
4. Traffic Light needed at 31st & Pico
In response to a request from the PIO, PCD staff including the City's Transportation
Engineering group recently reviewed the intersection of 31s` Street/Pico
Boulevard. There is an existing marked crosswalk at this location with an in- roadway
warning light (IRWL) system. Staff reviewed available traffic count, speed survey, and
accident data for this location, and conducted field reviews. This data was used to
complete a traffic signal warrant analysis. The analysis showed that the current traffic
volumes, crash history, measured vehicle speeds, and field conditions do not warrant the
installation of a new traffic signal at this location. Staff is currently reviewing existing
signage at this location, with the possibility of installing a radar speed feedback sign for
eastbound traffic, pending funding.
5. Deregulate signage restrictions.
At the MU 10, 2011 meeting, Council reviewed and approved discrete amendments to
the City's sign ordinance based on extensive community outreach and consultation with
the business community. These amendments include providing greater flexibility in how
sign area is calculated, allowing pedestrian oriented projecting signs, and allowing small,
changeable -copy. Signs in the pedestrian oriented districts of Main Street (Zoning is
CM), Pico Boulevard (Zoning is C2) and the Bayside District (Zoning is BSC).
Main Street Business Improvement Association (MSBIA)
1. Employee Parking Program
Staff is currently working with the MSBIA to .explore additional Employee Parking
options, including the potential for Main Street employees to park in the southern beach
lots year round and after sunset. This arrangement would increase the parking supply for
Main Street customers and provide parking relief for the area residents by removing the
employee cars that are parking for free in the neighborhood and those that are parking at
metered spaces in the commercial district. The primary issue has been with parking in
the south beach lots after dusk.
5
2. New and improved crosswalks
In response to a request from the MSBIA, PCD staff including the City's Transportation
Engineering group recently reviewed the potential for a new cross walk to be introduced
on Main Street mid -block between Ashland and Hill. This is a feasible option, but would
require the removal of seven on- street parking spaces. Staff is awaiting feedback from
MSBIA on whether they want to proceed with this, recognizing that on- street parking is a
limited and highly desired resource on Main Street.
3. Transportation Fee Adjustment
(For businesses whose employees are walking, cycling, carpooling, or taking the bus
should be rewarded).
PCD is currently preparing an updated Transportation Demand Management ordinance.
Policy decisions to be made will include the appropriate level of fees, fee discounts and
what fees can be spent on. Staff anticipates bringing this to Council as part of the ongoing
implementation of the Land Use and Circulation Element, as it calls for aggressive
implementation of transportation demand management techniques.
4. City pursuit of contractual change in Lot 11 with Perloff to arrange for public
use of the dedicated tenant parking spaces for evening and weekend hours
The City entered into an Easement Agreement with the Bernard Perloff Trust that
provided the City an easement through its property to Lot 11, and in return grants to the
Trust exclusive use of 22 parking spaces in Lot 11 during the work week. During the
weekend, the Trust is required to pay the City the monthly parking fee if it wants
exclusive use of any of the 22 parking spaces.
5. Zoning change north of Ocean Park Boulevard to allow 2 restaurants per block
instead of one
This request will be explored through an upcoming Interim Zoning Ordinance process as
well as through the Zoning Ordinance Update process.
Montana Avenue Merchants Association (MAMA)
1. Parking Availability
PCD staff has surveyed all the businesses and property owners on Montana Avenue
regarding parking needs and availability. Shared parking strategies are a priority stated in
the LUCE. The survey findings revealed limited shared parking opportunities within the
existing supply on Montana Avenue. Continued investigation of alternatives and options
for shared parking in this area will be a priority for the Travel Demand Management
Program Manager to help address this need (as soon as this position is filled). In the
interim, staff will continue to work with MAMA and their members to review parking
options on a case -by -case basis. The new parking meters with varying rates adjusted to
peak parking periods will also help improve the parking options on Montana Avenue. To
help offset the need for car parking, the City coordinated recently with each of the BIDS
and individual businesses, including Montana Avenue, to install bike racks in each of the
business districts.
G
2. Infrastructure Condition
Staff from HED, Public Works and PCD met with representatives from MAMA to review
general streetscape and maintenance issues on Montana Avenue. Should the nature of the
desired improvements be beyond maintenance, the City staff team would work with
MAMA to define the scope of a streetscape improvement plan and implementation
program, including funding strategies. Funding for both the planning and implementation
would need to be identified and the work effort identified in multiple departments' work
programs.
3. Street Safety (pedestrian safety issue)
In response to a request from City Crossing Guard staff, PCD staff including the City's
Transportation Engineering group recently reviewed the intersection of 9t" and Montana.
There is an existing marked crosswalk at this location and it is utilized during the day by
school children with a pedestrian crossing guard. Staff has reviewed available traffic
counts, speed surveys, and accident data for this location, and has also conducted field
reviews. This data was used to complete a traffic signal warrant analysis. The analysis
showed that the current traffic volumes, crash history, measured vehicle speeds, and field
conditions do not warrant the installation of a traffic signal or stop sign at this location.
Furthermore, during the field reviews by staff, a number of pedestrians were observed
crossing the street with vehicles yielding. Based on the findings, staff is considering the
installation of new signage with flashing LED lights at the boarders. The installation of
this new signage as well as additional features to increase the visibility of the crosswalks
and enhance motorist awareness at other locations will be included in a broader
evaluation of pedestrian mobility and access issues along Montana Avenue from 9th to
20th Street that staff is about to begin. The City will be initiating speed surveys in 2012 in
order to comply with State regulations regarding the establishment of speed limits on
local roadways.
4. Food Trucks
Please see the response to No.4 DTSM
5. Absentee Ownership
Engaging property owners in the activities of the BID area is important for the success of
an area. There are many ways that the BIDS can reach out to property owners to advise
them about the plans and programs for their areas. Some methods include newsletters,
invitations to meetings, requests for financial assistance to support marketing efforts, and
requests for information about rental opportunities. City staff can assist by providing
property owner contact information for the BIDS and general marketing materials (e.g.
Passport to Santa Monica) to raise awareness of business opportunities and resources.
7
W6 1 2011
From: Misti Kerns [mailto:mkerns @santamonica.com]
Sent: Tuesday, November 01, 20113:20 PM
To: Gleam Davis; Terry O'Day; Robert Hollbrook; Richard Bloom Fwd; Bobby Shriver; Kevin McKeown Fwd; Pam
O'Connor
Cc: Sonia Ramos; Rod Gould
Subject: Tonights meeting Business Improvement Districts
Good afternoon! We applaud your efforts in hearing the issues that our BIDS are faced with on a daily
basis. Tonights meeting will allow you to hear from many and we thank you in advance for your time and
to limit the speakers will communicate to you via email from the visitors standpoint.
We wear two hats tonight - SMCVB and a merchant on Main Street.
Tourism as you know is a billion dollar industry that employs over 13,000 employees in Santa Monica and
as we welcome millions of visitors a year to our destination - it is critical that the destination deliver all
that we market and our brand promise of the experience we claim to offer.
The mission of SMCVB states that we "work to increase visitor expenditures, tourism revenues and local
employment through promotion of THE AREA as a travel destination."
THE AREA encompasses all of our business improvement districts and all of our neighborhoods. It is
critical that our entire destination be as successful, vital and sustainable as possible. We market each area
as a unique experience and hope that the collaboration between, BIDS, Chamber, SMCVB and the city
will continue to identify the priorities that will result in continued positive change for our city.
Many of the things you have heard tonight:
Circulation, way - finding, parking for visitors to our areas and employees, attractive storefronts, safety,
cleanliness etc are all at the top of the list from the standpoint of keeping tourism employment and
revenues up as well. National Geographic recently named Santa Monica one of the world's top ten beach
cities - and this draws visitors.
As a merchant on Main St, we support the priorities that Gary has set out for you from the Main Street
Merchants. We respect that the shared priorities should be considered first, however hope that the
improvements to the unique area of Main St will keep the South side of our town a great place for visitors
and residents alike. Thank you!
MISTI KERNS, CMP CDME
President /CEO
Santa Monica Convention & Visitors Bureau
1920 main street, suite b, santa monica, ca 90405
phone 310.319.6263, fax 310.319.6273
trade hotline 800.771.2322 (nationwide)
consumer hotline 800.544.5319 (nationwide)
email mkerns0santamonica.com
web www.santamonica.com
social media facebook I ouv tube I twitter
q —A
NOV 12911
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