sr-121311-3bAY City Council Report
Santa Monica
City Council Meeting: December 13, 2011
Agenda Item: 33 =13
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Acting Director of Finance
Subject: License Agreements with State of California and County of Los Angeles
for the Use of Parking Spaces in the Civic Center
Recommended Action
Staff recommends that the City Council:
1) Authorize the City Manager to negotiate and execute parking license agreements
with the State of California ( "State ") and County of Los Angeles ( "County ") for use of
the Civic Center Parking facilities for a period of five -years with five one -year options
to extend for up to a total of ten years.
2) Authorize a month -to -month extension of the current agreement until such time as
the new agreements are executed.
Executive Summary
On or about June 27, 1989, the City and County entered into License Agreement 61543
for the use of parking spaces in the Santa Monica Civic Auditorium lot. The Agreement
was amended pursuant to a First Modification in 2004, a Second Modification in 2006,
and a Third Modification in 2009. The City, State, and County seek to enter into new
license agreements to continue to provide parking for County and courthouse
employees, jurors, and visitors. The new agreements are substantially similar to
previously executed agreements, with the exception that the State and County have
agreed to shuttle their employees from a remote lot, at times when the City shuttles its
own employees, to accommodate Civic Center construction projects. The license
agreements will generate revenue of approximately $656,134 annually, which is already
included in the Fiscal Year 2011 -13 budget.
Background
The Santa Monica Civic Auditorium parking lot serves a variety of customers, including
City employees, County employees and jurors, visitors to the Courthouse and City Hall,
and Auditorium and Santa Monica High School evening special event attendees. The
current public daily parking rate is $9.00 per space, including 10% City tax.
The Santa Monica Courthouse was constructed without its own parking facilities. To
provide parking for Courthouse employees, jurors, County law enforcement personnel,
judges and commissioners, the County of Los Angeles entered into an agreement with
the City of Santa Monica in 1989 to utilize 450 parking spaces in the Santa Monica Civic
Auditorium parking lot, adjacent to the Courthouse, at a rate equal to the pre -tax daily
parking rate. A separate agreement is now needed with the State since courthouse
operations were assumed by the State.
Discussion
The current agreement with the County of Los Angeles, which includes parking for State
employees, terminates on December 31, 2011. Staff has been negotiating with the
State and County since summer 2011 on terms related to continuing to provide
courthouse parking in the Civic Center. The terms of the proposed agreement are
similar in nature to the current agreement or other Council- adopted policies. The major
terms of the agreement include:
Term — Five years with five one -year options to extend to provide flexibility for the
proposed Civic Center projects.
• Rate — The rate for non - reserved spaces would be equal to the pre -tax public
daily rate, currently $8.15 per space, per day. The State and County are exempt
from payment of the parking facility tax per Santa Monica Municipal Code
Section 6.70.090. Payment of the pre -tax daily rate in lieu of the publically
available monthly rate of $82.50 would allow the State and County to continue to
have guaranteed access to parking every work day. Reserved spaces would be
provided at a cost equal to three times the daily rate, currently $24.45, and would
only be charged on work days. The spaces would not be reserved on weekends.
In compliance with the City's general parking operations procedures, the County
and City would work to minimize the number of reserved spaces. The State has
not requested any reserved spaces.
Shuttle — The State and County would agree to shuttle their employees from a
remote lot under the following circumstances:
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• Removal of more than 25 % of total parking spaces in the Civic Center;
• Scheduling of a large event at the Civic Auditorium;
• Construction of a parking structure in the Civic Center area; or
• Issuance of a Notice to Proceed for the redevelopment of the Civic Center
area; and
• The City provides its own employees a shuttle to a remote lot.
The agreement further specifies that the City will pay for shuttle services
provided to State and County employees at the basic level of service. If either
the State or County request a different stop or shuttle frequency, they will be
required to cover any incremental costs.
Given the complexity of the County and State approval processes, staff also
recommends that, should the agreements not be executed by January 1, 2012, staff
would be authorized to extend the current agreement on a month -to -month basis not to
exceed three months.
Financial Impacts & Budget Actions
The proposed parking license agreements are anticipated to provide $656,134 in annual
revenues at account 01225.407800. Revenues have been included in the FY2011 -2012
adopted budget.
Prepared by: Donald Patterson, Assistant Director — Finance
Approved: Forwarded to Council:
Ajo A L — 177%
Gi i caval e -H ghes Rod Gould
Director of Finance City Manager
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Reference Contract Nos.
9515 (CCS) and
9516 (CCS)