SR 12-12-2017 3A
City Council Report
City Council Meeting: December 12, 2017
Agenda Item: 3.A
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations
Subject: Annual Reporting of Development Impact Fees
Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual
Reporting of Development Impact Fees per the Mitigation Fee Act (Government Code
66000-66025) and the FY 2016-17 Childcare Linkage Fee Report per SMMC Section
9.65.
Executive Summary
This report transmits the attached Annual Report on the status of funds collected from
the City’s development impact fees that qualify under the Mitigation Fee Act
(Government Code 66000-66025) (Attachment A). These fees, noted below, have been
authorized by the City Council to address funding of some of the highest priority long-
term needs of the community – child care, transportation, parks, affordable housing and
water consumption – that are directly impacted by new development. However, these
mitigation fees are only one way that Santa Monica addresses each of these priorities.
This Annual Report also satisfies the annual reporting requirement for the Child Care
Linkage Fee per SMMC Section 9.65.090.
It can take a number of years to accumulate sufficient funds to implement the relatively
high-cost projects the City's development impact fees are eligible to fund. Staff carefully
monitors the balance of funds and works to use the funds to complete eligible projects.
Following is a brief summary of each fee, the current balance, and a description of how
funds are being spent:
1. Child Care Linkage Fee – This fee is collected to address the increased demand
for child care triggered by the development of commercial projects. As of June
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30, 2017, the balance on hand for this fee totaled $2.6 million. No expenditures
were spent in FY 2016-17, however on June 14, 2016, as part of the CIP Budget
Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds
and General Fund dollars towards the construction of the Early Childhood Lab
School (ECLS), scheduled to begin construction in early 2018.
2. Transportation Impact Fee – This fee is collected on new development and
intensified land uses and is used to fund transportation improvements, such as
sidewalks, crossing improvements, traffic signal upgrades, transit, and bicycle
facilities. As of June 30, 2017, the balance on hand for this fee totaled $5.9
million. Approximately $4 million in funds have been budgeted to complete
public improvements. Staff closely monitors proposed development projects and
available resources and incorporates these projects into the CIP process.
3. Parks and Recreation Impact Fee – This fee is collected from new residential and
commercial development for the upgrade and/or expansion of parks and
recreation facilities needed to accommodate additional occupants. As of June
30, 2017, the balance on hand for this fee totaled $0.4 million. No expenditures
were spent in FY 2016-17 and staff anticipates utilizing the fund balance to
support completing the construction documents for the Airport Park Expansion
project.
4. Affordable Housing Commercial Linkage Fee – This fee is designed to contribute
to the creation of affordable housing production and preservation to offset the
additional need for affordable housing generated by new commercial
development. As of June 30, 2017, the balance on hand for this fee totaled
$52,400. Funds were distributed in FY 2016-17 to nonprofit affordable housing
developers to acquire and rehabilitate 12 affordable housing units on 26th Street.
Staff will continue to closely monitor proposed development projects and
available resources.
5. Water Demand Mitigation Fee – This fee is collected from new development to
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mitigate the total daily water consumption rate projected for the development. As
of June 30, 2017, the balance on hand for this fee totaled $2.9 million. Funds
were utilized on several public facilities and locations including turf removal,
installation of irrigation controllers and drip irrigation systems, exploratory boring
and water well construction, the retrofitting of restroom facilities at low-income
multi-family housing properties, plumbing fixture retrofits at City Hall, Public
Safety Facility, and Santa Monica Swim Center, and plumbing fixtures and
irrigation equipment audits at Santa Monica-Malibu Unified School District sites.
The information presented in this financial report is provided in compliance with State
law requirements and staff continues to monitor development projects and revenue
collected to ensure that fees are accounted for and expended in accordance with the
purposes for which they were collected as required by law.
Background
In 1987, Assembly Bill 1600 (AB1600), also known as the California Mitigation Fee Act,
codified the legal and procedural parameters for charging development impact fees as
set forth in Government Code 66000-66025. A development impact fee is a monetary
exaction other than a tax or special assessment that is charged by a local government
agency to an applicant of an approved development project to defray all or a portion of
the costs of public facilities related to the development project. The Mitigation Fee Act
defines “public facilities” broadly to include public improvements, public services, and
community amenities.
At the time that a Mitigation Fee is established, the purpose of the fee and its
anticipated use must be clearly identified. Per Government Code 66006, collection of
these fees requires separate funds or accounts to avoid commingling and requires that
information is reported within 180 days from year-end.
Per Government Code 66001, the City must also report on unexpended and expended
fee amounts, whether committed or uncommitted, for the fifth fiscal year following the
first deposit and every five years thereafter. Five-year reporting per Government Code
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66001 is not required for any fees this reporting period.
On December 5, 2006 (Attachment B), Council adopted ordinance Chapter 9.65 of the
Santa Monica Municipal Code (SMMC) to establish a childcare linkage fee program.
The ordinance requires an annual report to City Council within 180 days after the last
day of each fiscal year.
Discussion
The City publicly posted the annual Mitigation Fee Act Report, as required by AB1600
on November 22nd for the following fees: Childcare Linkage Fee, Transportation Impact
Fee, Parks and Recreation Impact Fee, Affordable Housing Commercial Linkage Fee,
and Water Demand Mitigation Fee.
Child Care Linkage Fee
This fee is intended to address the increased demand for child care triggered by the
development of commercial projects adding floor area of at least 7,500 square feet or
multi-family residential projects. Developers can satisfy the ordinance requirements by
either paying a fee or by agreeing to participate in the construction or establishment of
one or more child care facilities. Fees are computed annually on July 1, increasing by a
percentage equal to the Construction Cost Index as published by Engineering News
Record. Child Care Linkage Fees shall be paid by the final inspection date and prior to
the issuance of the Certificate of Occupancy.
The City established a Child Care Linkage Fee Reserve Account for the collection of
fees to be used to create new child care spaces.
Beginning
Balance
Fees Collected Interest Earned Expenditures Ending Balance
$2,481,594 $109,181 $23,381 $2,614,156
Uses
Section 9.65.070 of the ordinance establishing the Child Care Linkage Fee specifies
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that funds collected in the Child Care Linkage Fee Reserve Account shall be restricted
to costs related to property acquisition, development, and construction of child care
facilities within the City of Santa Monica, in addition to any administrative costs incurred
by the City to manage the reserve account. Eligible expenditures shall not include
ongoing operating expenses and general maintenance of child care facilities.
In FY 2016-17, no expenditures were made. To date, Council has approved $1,098,598
in available Child Care Linkage Fee funds and $5,563,000 of General Funds for use in
the construction of the Early Childhood Lab School (ECLS). The Early Childhood Lab
School (ECLS) is a joint Capital Improvement Project (CIP) of the City of Santa Monica
and Santa Monica College (SMC), located in the Civic Center and providing child care
and early education services for up to 110 young children. The State Architecture
(DSA) and the California Coastal Commission approved the building permits and
construction is scheduled to start in spring 2018 upon bidding and award of the
construction contract by the college. Staff has identified the ECLS as the kind of
candidate project that would be eligible for the disbursement of funds from the Child
Care Linkage Reserve Account.
Transportation Impact Fee
The City Council adopted ordinance Chapter 9.66 of the Santa Monica Municipal Code
on March 12, 2013 (Attachment C) to establish a Transportation Impact Fee for new
development and intensified land uses that will fund transportation improvements such
as new sidewalks, crosswalks, traffic signal upgrades, transit, and bicycle facilities that
are necessitated by the new trips associated with land use change. The fees are based
on residential units or commercial square footage. The fee is charged prior to issuance
of building permits, unless State law requires the City to accept later fee payment. The
Transportation Impact Fee reflects the costs associated with transportation
improvements and the amount of new auto trips that can be attributed to land use
changes.
Beginning Fees Collected Interest Earned Expenditures Ending Balance
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Balance
$3,455,224 $2,372,988 $72,553 $19,807 $5,880,958
Uses
In FY 2016-17, $19,807 was spent on the design cost of the Edison Safe Routes to
Schools project. Funds totaling $3,922,250 have been budgeted to help fund capital
projects such as the Lincoln Boulevard Neighborhood Corridor Phase I and Safe Routes
to School. Most visible next year will be physical changes near four neighborhood
schools to make it easier for students to walk and bike. The funds may be spent on
capital projects and staff to administer the fee; the projects are individually expensive
and additional resources to assist with the expenditures have not been allocated.
Staff continues to actively pursue funding through outside sources, including
competitive grants. Maintaining a balance in the account ensures that a local match will
be available for grants. Funds can be allocated once grants are received. Funds are
also crucial for project development to make them ready for grant funding, such as
preliminary design and outreach. Staff will continue to closely monitor proposed
development projects and revenue collection, and budget revenues during the 2018-
2020 CIP process to help advance capital projects to make it easier for people to walk,
bike, and take transit in Santa Monica.
Parks and Recreation Development Impact Fee
The City Council adopted ordinance Chapter 9.67 of the Santa Monica Municipal Code
on October 14, 2014 (Attachment D) to establish a Parks and Recreation Development
Impact Fee to provide a direct funding source from new residential and commercial
development for the upgrade and/or expansion of parks and recreation facilities needed
to accommodate additional occupants of the new developments.
Beginning
Balance
Fees Collected Interest Earned Expenditures Ending Balance
$313,561 $50,526 $4,385 $368,472
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Uses
In FY 2016-17, no expenditures were made. Staff anticipates utilizing the fund balance
to support completing the construction documents for the Airport Park Expansion
project.
Affordable Housing Commercial Linkage Fee
The City Council adopted Chapter 9.68 of the Santa Monica Municipal Code on June
23, 2015 (Attachment E) to establish the Affordable Housing Commercial Linkage Fee
to contribute to the creation of affordable housing production and preservation to offset
the additional need for affordable housing generated by new commercial development.
Beginning
Balance
Fees Collected Interest Earned Expenditures Ending Balance
$589,117 $46,891 $4,909 $588,480 $52,437
Uses
In FY 2016-17 sufficient funds were available to assist in the financing of the acquisition
and rehabilitation loan for 12 affordable housing units, and in May and June of 2017
$588,480 was disbursed.
Water Demand Mitigation Fee
The City Council adopted ordinance Chapter 7.16.050 of the Santa Monica Municipal
Code on March 19, 1991 to establish the Water Demand Mitigation Fee. The Water
Demand Mitigation Fee is a one-time fee the City charges new development to mitigate
the total daily water consumption rate projected for the development. The total daily
water demand for the project is calculated using standard water demand factors which
have been developed by City staff. The Water Demand Mitigation Fee is set at $3.00
for each gallon of daily water demand that must be mitigated. The fee is required
whenever a new single-family residence is constructed or addition of 50% or more to
existing square footage; for construction of a new multi-family building or addition of
new units; for construction of a new non-residential building or whenever there is a
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change of use, change or addition to new plumbing fixtures, addition of restaurant
seating, or addition of square footage.
Beginning
Balance
Fees Collected Interest Earned Expenditures Ending Balance
$3,711,652 $502,327 $1,345,894 $2,868,085
On July 1, 2017, the Water Demand Mitigation Fee was replaced with the Water
Neutrality Fee. The City will continue to collect Water Demand Mitigation revenues for
permit applications submitted prior to July 1, 2017 and will continue to report on it until
all funds are expended.
Uses
In FY 2016-17, Water Demand Mitigation fees funded the following public
improvements:
$902,772 was spent on the Irrigation Controller Replacement project. The
purchase of Calsense smart irrigation controllers replaced old irrigation
technology at various parks, medians, Woodlawn Cemetery, and various public
right-of-way landscape locations citywide. The Calsense smart irrigation
controllers, including component parts, were purchased to help increase the
City’s water delivery efficiency and staff’s ability to monitor irrigation
performance, make adjustments remotely and create real time reports related to
water use.
In support of meeting Living Building Challenge water self-sufficiency
requirements, an exploratory boring and well construction project was completed
on the west side of City Hall to supply the new City Services Building with potable
water at a cost of $284,590.
$7,190 was spent on several facility upgrades including retrofitting restrooms and
replacing faucets in City Hall, the Public Safety Facility building, and the Santa
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Monica Swim Center.
$80,342 was expended on the Southwest Environmental contract to retrofit toilets
as part of the toilet direct installation program for low-income multi-family
properties.
$71,000 was expended on fixture and irrigation equipment water audits and
retrofits at Santa Monica Malibu Unified School District sites within the city.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Stephanie Manglaras, Accounting Manager
Approved
Forwarded to Council
Attachments:
A. Development Impact Fees Report
B. December 5, 2006 Staff Report (Weblink)
C. March 12, 2013 Staff Report (Weblink)
D. October 14, 2014 City Council Resolution (Weblink)
E. June 23, 2015 Staff Report (Weblink)
F. Written Comment
City of Santa Monica
Development Impact Fees Report pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2017
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Residential $144.57 per unit
Hotel $3.44 per square foot
Retail $4.91 per square foot
Office $6.86 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2016-2017 2,481,594$ 109,181 23,381 2,614,156$
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
Child Care Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
Child Care Linkage Fee - The purpose of the Child Care Linkage Fee imposed and collected on development of commercial projects adding floor area of at
least 7,500 square feet or multi-family residential projects development within the City since fiscal year 2011/2012 is to fund property acquisition, development,
and construction of child care facilities in order to create new child care spaces.
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees
will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on
the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
The City expects construction of the Early Childhood Lab School (ECLS) will begin in March 2018.
City of Santa Monica
Development Impact Fees Report pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2017
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single Family, Area 1 $8,231.11 per unit
Single Family, Area 2 $8,447.72 per unit
Multi-Family, Area 1 $2,815.91 per unit
Multi-Family, Area 2 $3,574.04 per unit
Multi-Family, Area 3 $2,815.91 per unit
Retail, Area 1 $22.74 per square foot
Retail, Area 2 $32.60 per square foot
Office, Area 1 $10.51 per square foot
Office, Area 2 $11.70 per square foot
Medical Office, Area 1 $30.43 per square foot
Medical Office, Area 2 $32.27 per square foot
Hospital, Area 2 $15.92 per square foot
Lodging, Area 1 $3.90 per square foot
Lodging, Area 2 $3.90 per square foot
Industrial, Area 1 $1.30 per square foot
Industrial, Area 2 $1.41 per square foot
Auto Sales and Display
Areas, Area 1 $1.30 per square foot
Auto Sales and Display
Areas, Area 2 $1.41 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2016-2017 3,455,224$ 2,372,988 72,553 19,807 5,880,958$
Edison Safe Routes to School project- $19,807, 20% of total expended costs for FY1617 were funded through TIF.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees
will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on
the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
The Pedestrian Improvements at Four Schools project is currently in the Design phase, with Construction anticipated to begin in September 2018.
The City expects the Edison Safe Routes to School Project to begin Construction in May 2018.
Transportation Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
Non-Residential (sq. ft.)
Residential (dwelling unit)
Transportation Impact Fee - The City Council adopted an ordinance on February 26, 2013 which established a Transportation Impact Fee for new
development and intensified land uses that will fund transportation improvements such as new sidewalks, crosswalks, traffic signal upgrades, transit, and
bicycle facilities that are necessitated by the new trips associated with land use change. The fees are based on residential units or commercial square footage.
The fee is charged prior to issuance of building permits, unless state law requires the City to accept later fee payment. The Transportation Impact Fee reflects
the costs associated with transportation improvements and the amount of new auto trips that can be attributed to land use changes.
City of Santa Monica
Development Impact Fees Report pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2017
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single Family Residential $7,928.04 per unit
Multi-Family Residential -
Studio/1 Bedroom $4,296.26 per unit
Multi-Family Residential -
2+ Bedrooms $6,919.90 per unit
Retail $1.55 per square foot
Office $2.40 per square foot
Medical Office $1.32 per square foot
Lodging $3.23 per square foot
Industrial $1.35 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2016-2017 313,561$ 50,526 4,385 368,472$
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees
will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on
the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No construction of public improvements have been identified. The City has not determined sufficient funds have been collected.
Parks and Recreation Development Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
Parks and Recreation Development Impact Fee - The purpose of the fee, is to provide a direct funding source from new residential and commercial
development to be used solely for the acquisition and development of open space, parkland, and recreation facilities to meet demand generated by occupants
and users of the new development.
City of Santa Monica
Development Impact Fees Report pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2017
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Retail $10.12 per square foot
Office $11.64 per square foot
Hotel/Lodging $3.19 per square foot
Hospital $6.39 per square foot
Industrial $7.82 per square foot
Creative Office $9.96 per square foot
Medical Office $7.15 per square foot
Institutional $10.62 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2016-2017 589,117$ 46,891 4,909 588,480 52,437$
Percentage of Total
Public Improvement Cost
Funded with Fees Cost
Total Development Costs
as of June 30, 2017
11.38%588,480$ 5,171,732$
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees
will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on
the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
Sufficient funds were available to assist in the financing of the acquisition and rehabilitation loan beginning May 2017.
Affordable Housing Commercial Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
Affordable Housing Commercial Linkage Fee - A fee paid to the City by an applicant for approval of certain development projects, to contribute to the creation
of affordable housing production or preservation to offset additional need for affordable housing generated by new commercial development.
Acquisition and Rehabilitation loan for 12
affordable housing units at 2621, 2622, and
2627 26th Street
Public Improvement Description
City of Santa Monica
Development Impact Fees Report pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2017
(A) A brief description of the type of fee in the account or fund.
seats or square footage.
(B) The amount of the fee.
Project Fee
Single-Family $990.00
Studio/Single Apartment:$315.00
1 Bedroom Apartment:$375.00
2 Bedroom Apartment:$570.00
3 Bedroom Apartment:$750.00
Duplex (2 Apartments):$900.00
Non-Residential:
To be determined by the
Civil Engineering Plan
Checker
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2016-2017 3,711,652$ 502,327 1,345,894 2,868,085$
*
*
*
*
*
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees
will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive
on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
City facility upgrades, Woodlawn Cemetery Irrigation Retrofit, Smart Irrigation Controllers installation, Landscape and Irrigation Conversions, Rotary Nozzle
Retrofits, Toilet Direct Installation Project, SMMUSD Audits and Retrofits, and the City Services Building Production Well were scheduled for fiscal year 16-
17. Funding for San Vicente Medians Landscape Plan/Design was earmarked for FY 2016-17. Programmatic changes may result in funding reallocation.
Water Demand Mitigation projects for FY 2018-19 and FY 2019-20 will be approved through the Capital Improvement Program budget.
Water Demand Mitigation Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
F) An approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
The Water Demand Mitigation Fee - A one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the
development. The total daily water demand for the project is calculated using standard water demand factors which have been developed by City staff. The
water demand mitigation fee is set at $3.00 for each gallon of daily water demand which must be mitigated. Effective, July 1, 2017, the Water Demand
Mitigation Fee was replaced with the Water Neutrality Fee. The City will continue to collect Water Demand Mitigation revenues for permit applications
submitted prior to July 1, 2017.
This fee is required when:
• Single-Family Residence -- for construction of a new residence or whenever adding 50% or greater to the square footage.
• Multi-Family -- for construction of a new building or whenever new units are added.
• Non-Residential -- for construction of a new building or whenever there is a change of use, changing or adding plumbing fixtures, or adding restaurant
Multi-Family (condominium fees same as apartments):
City of Santa Monica facility plumbing fixture retrofits at City Hall (1685 Main Street), Public Safety Facility (333 Olympic Drive), Santa
Monica Swim Center (2225 16th Street) ($7,190; 100% WDM fees)
Santa Monica-Malibu Unified School District facility plumbing fixture and irrigation equipment water audits ($71,000; 100% WDM Fees)
Santa Monica low-income housing multi-family direct toilet install program at various locations (Southwest Environmental) ($80,342; 100%
WDM fees)
City Services Building (1685 Main Street) exploratory boring and water well construction to meet Living Building Challenge water self-
sufficiency requirements ($284,590; 100% WDM fees)
Turf removals & drip irrigation systems (Clean Cut Landscape), Calsense smart irrigation controllers and other landscape improvements at
various City parks, medians, Woodlawn cemetery and public right of ways ($902,772; 100% WDM fees)
From:deeonn la
To:Council Mailbox; councilmtgitems; Kevin McKeown Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; PamOConnor; Terry O’Day; Ted Winterer
Subject:City Council 12/12/17 agenda item 3-A - Opposition to Use of Childcare Linkage Fees to Pay for Construction ofECLS
Date:Tuesday, December 12, 2017 11:59:41 AM
To: City Council
RE: City Council 12/12/17 agenda item 3-A
I am writing to protest the expenditure of Child Care Linkage Fees to help pay for the
construction of the Santa Monica College Early Childhood Lab School (“ECLS”), which will
represent the seventh SMC satellite campus (Airport Arts Campus, Bundy Campus, Center for
Media & Design, Emeritus College, Malibu Campus, Performing Arts Campus).
Agenda: http://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1129
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual Reporting of
Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and the
FY 2016-17 Childcare Linkage Fee Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand for child care
triggered by the development of commercial projects. As of June 30, 2017, the balance on
hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the CIP Budget
Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds and General Fund
dollars towards the construction of the Early Childhood Lab School (ECLS), scheduled to begin
construction in early 2018."
These Child Care Linkage Fee funds, plus additional General Fund dollars, will go towards
"the construction of the Early Childhood Lab School (ECLS), scheduled to begin construction in
early 2018," EVEN THOUGH Santa Monica College has $462,892,008 in facility bond
funds remaining, according to the July 19, 2017 minutes of the SMC Citizens Bond Oversight
Committee -
- http://www.smc.edu/ACG/CitizensBondOversightCommittee/Documents/Print%20CBOC%2010-
25-2017%20Agenda%20Final.pdf
2017/12/12 05:30 PM City Council Regular Meeting - Web ...
santamonicacityca.iqm2.com
The meeting is not available at this time, please check back later. Go back to the page you wereon.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
Fees collected to address the increased demand for child care triggered by the development
of commercial projects will INSTEAD go to help pay for construction of the ECLS. Rather than
fulfilling child care needs triggered by the development of commercial projects, the ECLS
will INSTEAD provide child care primarily for employees of the City of Santa Monica, the RAND
Corporation, and Santa Monica College.
This is what we already know:
1. The ECLS was originally proposed as a maximum 25 feet high and 12,500 sq. ft. building and
7,500 sq. ft. play area. That has now changed to 3 buildings up to 40 feet high building 24,000
gross sq. ft. (net 19,152 sq. ft.) and a gross total of approximately 32,381 sq. ft. of outdoor space
for child play areas and landscaping (almost tripling the size of the original plan), spanning over
approximately 1.5 acres. The ECLS will provide childcare for only 110 children.
2. The lease agreement for the ECLS provides that: (a) the City will lease public land to SMC for
FREE for a period of 55 years (with consecutive 10 year extensions), (b) the City (a/k/a our tax
monies) will contribute $6.5 Million to the construction of the ECLS (this is in addition to $7
Million allocated by SMC through a bond which our taxes are paying for), (c) Rand, SMC and City
employees will receive enrollment priority (irrespective of whether they reside in Santa Monica),
and (d) SMC will enter into an agreement with a third party to operate the ECLS.
3. The Growing Place will be operating (and receiving all of the revenues from) the ECLS and the
City will receive NOTHING. Residents were provided with no information as to how The Growing
Place was chosen, but note that the Executive Director of The Growing Place is part-time faculty
at SMC in the ECE Department.
With respect to use of City funds for childcare, residents want spending that will benefit
residents. The use of Childcare Linkage Fee funds for the ECLS does not accomplish that.
Sincerely,
DeAnne Ozaki (Santa Monica resident)
2FWREHU - smc.edu
www.smc.edu
Santa Monica Community College District Citizens’ Bond Oversight Committee MEETING –OCTOBER 25, 2017 AGENDA A meeting of the Santa Monica Community College ...
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Nikki Kolhoff
To:Council Mailbox; councilmtgitems; Kevin McKeown Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; PamOConnor; Terry O’Day; Ted Winterer
Cc:Lane Dilg
Subject:City Council 12/12/17 item 3-A -- Child Care Linkage Fees
Date:Tuesday, December 12, 2017 11:55:34 AM
Dear City Council
I agree with the comment of the majority of the FOSP Board below and incorporate it
herein in its entirety. In addition I make the following comments.
The use of any childcare linkage fees for the ECLS is an improper use of these
funds. I am including the new City Attorney on this comment because an evaluation
of staff's determination that this is an appropriate use is necessary.
First, the ECLS does not relate to new commercial development. It was planned
years ago and set in motion with Rand's $500,000 payment for priority and tuition
reduction in its Development Agreement in 2000. Therefore it can't possibly be "new"
development for which these funds were intended.
Second, pursuant to the lease, the children served by the ECLS are not children of
employees in new commercial development but rather the employees of Rand, SMC
and the City.
Third, this is an SMC Lab School and satellite campus and should not receive any city
funds for construction. It is interesting to note that City Staff and Councilmembers
have gone out of their way to tell the public that no City funds will be used forconstruction and then huge payments of city funds are hidden in consent items like
this.
When a resident emailed Council in October about, among other things, free rentforever for the ECLS, Gleam Davis gave this response with respect to the history of
the project and use of City funds.
"I am afraid that there has been a misinformation campaign around the earlychildhood center. Let me just address a few that you have been told: First, the lab
school is a joint project of the City and SMC. The City made the decision to place the
lab school in the Civic Center years ago when it adopted the Civic Center plan. The
City brought SMC into the project because SMC had resources to help pay for thecost of building the center which can serve as a lab school for its early childhood
educator program. So this is not a SMC land grab. It simply is an opportunity to find
some synergy between the City's commitment to build an early childhood learning
center and SMC's program to educate early childhood education professionals. Withthe low rent arrangement, the City is contributing the land and SMC is contributing the
cost of building the structure. No one is getting anything for free."
It would appear that the misinformation is coming from the City and not the residents
challenging the misuse of funds.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
I urge Council to reject the report.
I also request that the City Attorney investigate whether any childcare linkage fees
may be legally used for the ECLS and return the fees already allocated to the project
in the meantime.
Regards, Nikki Kolhoff
Santa Monica Resident
From: zinajosephs@aol.com
To: council@smgov.net, CouncilMtgItems@smgov.net, kevin@mckeown.net,
tony.vazquez@smgov.net, gleam.davis@smgov.net, sue.himmelrich@smgov.net,
pam.oconnor@smgov.net, terry.oday@smgov.net, ted.winterer@smgov.net
Cc: zinajosephs@aol.com
Sent: 12/12/2017 10:53:47 AM Pacific Standard Time
Subject: FOSP: City Council 12/12/17 item 3-A -- Child Care Linkage Fees
December 10, 2017
To: City Council
From: Board of Directors, Friends of Sunset Park
RE: City Council 12/12/17 agenda item 3-A
1) A majority of the FOSP Board members reject the staff recommendation to accept this report,
and we protest the expenditure of Child Care Linkage Fees to help pay for the construction of
the Santa Monica College Early Childhood Lab School, i.e., the seventh SMC satellite campus
(Airport Arts Campus, Bundy Campus, Center for Media & Design, Emeritus College, Malibu
Campus, Performing Arts Campus).
Agenda: http://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1129
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual
Reporting of Development Impact Fees per the Mitigation Fee Act (Government Code
66000-66025) and the FY 2016-17 Childcare Linkage Fee Report per SMMC Section
9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand
for child care triggered by the development of commercial projects. As of June 30,
2017, the balance on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the
CIP Budget Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee
funds and General Fund dollars towards the construction of the Early Childhood Lab
School (ECLS), scheduled to begin construction in early 2018."
2) These Child Care Linkage Fee funds, plus additional General Fund dollars, will go towards
"the construction of the Early Childhood Lab School (ECLS), scheduled to begin construction
in early 2018," EVEN THOUGH Santa Monica College has $462,892,008 in facility bond
funds remaining, according to the July 19, 2017 minutes of the SMC Citizens Bond Oversight
Committee -
- http://www.smc.edu/ACG/CitizensBondOversightCommittee/Documents/Print%20CBOC%2010-
25-2017%20Agenda%20Final.pdf
3) Fees collected to address the increased demand for child care triggered by the development
of commercial projects will INSTEAD go to help pay for construction of the SMC Early Childhood
Lab School.
4) Rather than fulfilling child care needs triggered by the development of commercial projects,
Item # 3A 12/12/2017
Item # 3A 12/12/2017
this SMC Lab School will INSTEAD provide child care primarily for employees of the City of
Santa Monica, the RAND Corporation, and Santa Monica College.
5) Therefore, we believe that those Child Care Linkage Fees should be returned and/or
not spent in this way.6) In addition, the City Council has approved leasing 230 parking spaces in the Civic Centersurface parking lot for the SMC Early Childhood Lab School facilities and parking needs for 55years for $0 per year.
7) Meanwhile, the City apparently charged the local school district $187,000 per year in
2016-17 for parking spaces in the same lot for Santa Monica High School staff and students.
8) Rather than require large development projects to include onsite child care, as was done with
the Colorado Center and the MTV/Viacom building, the City Council included child care for up to20 children in R1 (single family home) districts in the 2015 update of the Zoning Ordinance.
9) Then, on December 5, 2017, the City Council seems to have approved a 1st reading for azoning change that allows the demolition of single family home garages. The intended result ofthis change seems to be that demolition of garages for child care centers for up to 20 children inR1 districts would no longer require a variance, i.e., no public hearing.10) These actions taken by the City Council seem to be based on recommendations of the ChildCare and Early Education Task Force.Santa Monica has many Boards, Commissions, and Task Forces -- https://www.smgov.net/departments/clerk/boards -- whose members are appointed by the City
Council. Their members, meeting schedules, agendas, and minutes are posted on the citywebsite.Because their members are appointed by the City Council, they are covered by the Brown Actand have to post agendas 72 hours before each meeting, the meetings must be open to thepublic, and the agendas must include Public Comment.In contrast, the Child Care and Early Childhood Task Force members are not appointed by the
City Council, so they are not covered by the Brown Act. Their members, meeting schedules,
agendas, and minutes are not posted on the city website. The only information about the Task
Force meetings we can find posted online is on the CradleToCareer.org website. The agendas
are not posted ahead of the meetings, and a list of the members is not posted. The latest
minutes we can find are from June 2017.The FOSP supports child care and early childhood education, and we assume that all the peopleinvolved with the Task Force are well-intentioned. But this does not seem like a transparent
process for developing city policy.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:zinajosephs@aol.com
To:Council Mailbox; councilmtgitems; Kevin McKeown Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; PamOConnor; Terry O’Day; Ted Winterer
Cc:zinajosephs@aol.com
Subject:FOSP: City Council 12/12/17 item 3-A -- Child Care Linkage Fees
Date:Tuesday, December 12, 2017 10:54:32 AM
December 10, 2017
To: City Council
From: Board of Directors, Friends of Sunset Park
RE: City Council 12/12/17 agenda item 3-A
1) A majority of the FOSP Board members reject the staff recommendation to accept this report, and we
protest the expenditure of Child Care Linkage Fees to help pay for the construction of the Santa Monica
College Early Childhood Lab School, i.e., the seventh SMC satellite campus (Airport Arts Campus,
Bundy Campus, Center for Media & Design, Emeritus College, Malibu Campus, Performing Arts
Campus).
Agenda: http://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1129
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual Reporting
of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and
the FY 2016-17 Childcare Linkage Fee Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand for child
care triggered by the development of commercial projects. As of June 30, 2017, the balance
on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the CIP
Budget Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds and
General Fund dollars towards the construction of the Early Childhood Lab School (ECLS),
scheduled to begin construction in early 2018."
2) These Child Care Linkage Fee funds, plus additional General Fund dollars, will go towards
"the construction of the Early Childhood Lab School (ECLS), scheduled to begin construction in early
2018," EVEN THOUGH Santa Monica College has $462,892,008 in facility bond funds remaining,
according to the July 19, 2017 minutes of the SMC Citizens Bond Oversight Committee -
- http://www.smc.edu/ACG/CitizensBondOversightCommittee/Documents/Print%20CBOC%2010-25-
2017%20Agenda%20Final.pdf
3) Fees collected to address the increased demand for child care triggered by the developmentof commercial projects will INSTEAD go to help pay for construction of the SMC Early Childhood Lab
School.
4) Rather than fulfilling child care needs triggered by the development of commercial projects, this SMC
Lab School will INSTEAD provide child care primarily for employees of the City of Santa Monica, the
RAND Corporation, and Santa Monica College.
5) Therefore, we believe that those Child Care Linkage Fees should be returned and/or not spent
in this way.
6) In addition, the City Council has approved leasing 230 parking spaces in the Civic Center surface
Item # 3A 12/12/2017
Item # 3A 12/12/2017
parking lot for the SMC Early Childhood Lab School facilities and parking needs for 55 years for $0 per
year.
7) Meanwhile, the City apparently charged the local school district $187,000 per year in
2016-17 for parking spaces in the same lot for Santa Monica High School staff and students.
8) Rather than require large development projects to include onsite child care, as was done with the
Colorado Center and the MTV/Viacom building, the City Council included child care for up to 20 children
in R1 (single family home) districts in the 2015 update of the Zoning Ordinance.
9) Then, on December 5, 2017, the City Council seems to have approved a 1st reading for a zoning
change that allows the demolition of single family home garages. The intended result of this change
seems to be that demolition of garages for child care centers for up to 20 children in R1 districts would no
longer require a variance, i.e., no public hearing.
10) These actions taken by the City Council seem to be based on recommendations of the Child Careand Early Education Task Force.
Santa Monica has many Boards, Commissions, and Task Forces -- https://www.smgov.net/departments/clerk/boards -- whose members are appointed by the City Council.
Their members, meeting schedules, agendas, and minutes are posted on the city website.
Because their members are appointed by the City Council, they are covered by the Brown Act and have
to post agendas 72 hours before each meeting, the meetings must be open to the public, and the
agendas must include Public Comment.
In contrast, the Child Care and Early Childhood Task Force members are not appointed by the City
Council, so they are not covered by the Brown Act. Their members, meeting schedules, agendas, and
minutes are not posted on the city website. The only information about the Task Force meetings we can
find posted online is on the CradleToCareer.org website. The agendas are not posted ahead of the
meetings, and a list of the members is not posted. The latest minutes we can find are from June 2017.
The FOSP supports child care and early childhood education, and we assume that all the people involved
with the Task Force are well-intentioned. But this does not seem like a transparent process for
developing city policy.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Maryanne LaGuardia
To:councilmtgitems
Subject:item 3-A -- Child Care Linkage Fees
Date:Tuesday, December 12, 2017 11:52:28 AM
For all of the reasons set forth in the letter below, I object to the expenditure of Child Care Linkage Fees to help pay of the construction of the Santa Monica College Early Childhood Lab School. I believe this expenditure is beyond the scope and does not meet the purpose for these funds. The ECLS will do just fine without them, having all of the almost $500,000,000 in facility bond monies yet to spend, receiving already in excess of $6 million from the City, and a land lease of $1 per year.
December 10, 2017
To: City Council
From: Board of Directors, Friends of Sunset Park
RE: City Council 12/12/17 agenda item 3-A
1) A majority of the FOSP Board members reject the staff recommendation to accept this
report, and we protest the expenditure of Child Care Linkage Fees to help pay for the
construction of the Santa Monica College Early Childhood Lab School, i.e., the seventh
SMC satellite campus (Airport Arts Campus, Bundy Campus, Center for Media & Design,
Emeritus College, Malibu Campus, Performing Arts Campus).
Agenda: http://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1129
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017
Annual Reporting of Development Impact Fees per the Mitigation Fee Act
(Government Code 66000-66025) and the FY 2016-17 Childcare Linkage Fee
Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased
demand for child care triggered by the development of commercial projects.
As of June 30, 2017, the balance on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of
the CIP Budget Adoption, Council approved $1,098,598 usage of Child Care
Linkage Fee funds and General Fund dollars towards the construction of the
Early Childhood Lab School (ECLS), scheduled to begin construction in early
2018."
2) These Child Care Linkage Fee funds, plus additional General Fund dollars, will go
towards "the construction of the Early Childhood Lab School (ECLS), scheduled to begin
construction in early 2018," EVEN THOUGH Santa Monica College has $462,892,008 in facility bond funds remaining, according to the July 19, 2017 minutes of the SMC
Citizens Bond Oversight Committee --
http://www.smc.edu/ACG/CitizensBondOversightCommittee/Documents/Print%20CBOC%2
010-25-2017%20Agenda%20Final.pdf
Item # 3A 12/12/2017
Item # 3A 12/12/2017
3) Fees collected to address the increased demand for child care triggered by the
development of commercial projects will INSTEAD go to help pay for construction of the
SMC Early Childhood Lab School.
4) Rather than fulfilling child care needs triggered by the development of commercial
projects, this SMC Lab School will INSTEAD provide child care primarily for employees of
the City of Santa Monica, the RAND Corporation, and Santa Monica College.
5) Therefore, we believe that those Child Care Linkage Fees should be returned
and/or not spent in this way.
6) In addition, the City Council has approved leasing 230 parking spaces in the Civic
Center surface parking lot for the SMC Early Childhood Lab School facilities and parking
needs for 55 years for $0 per year.
7) Meanwhile, the City apparently charged the local school district $187,000 per year in
2016-17 for parking spaces in the same lot for Santa Monica High School staff and
students. 8) Rather than require large development projects to include onsite child care, as was done
with the Colorado Center and the MTV/Viacom building, the City Council included child care
for up to 20 children in R1 (single family home) districts in the 2015 update of the Zoning
Ordinance.
9) Then, on December 5, 2017, the City Council seems to have approved a 1st reading for
a zoning change that allows the demolition of single family home garages. The intended
result of this change seems to be that demolition of garages for child care centers for up to
20 children in R1 districts would no longer require a variance, i.e., no public hearing.
10) These actions taken by the City Council seem to be based on recommendations of the
Child Care and Early Education Task Force.
Santa Monica has many Boards, Commissions, and Task Forces --
https://www.smgov.net/departments/clerk/boards -- whose members are appointed by the
City Council. Their members, meeting schedules, agendas, and minutes are posted on the
city website.
Because their members are appointed by the City Council, they are covered by the Brown Act and have to post agendas 72 hours before each meeting, the meetings must be open to the public, and the agendas must include Public Comment.
In contrast, the Child Care and Early Childhood Task Force members are not appointed
by the City Council, so they are not covered by the Brown Act. Their members, meeting
schedules, agendas, and minutes are not posted on the city website. The only information
about the Task Force meetings we can find posted online is on the CradleToCareer.org
website. The agendas are not posted ahead of the meetings, and a list of the members is
not posted. The latest minutes we can find are from June 2017.
The FOSP supports child care and early childhood education, and we assume that all the
people involved with the Task Force are well-intentioned. But this does not seem like a
transparent process for developing city policy.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Ann Maggio
To:councilmtgitems; Council Mailbox; Lane Dilg
Cc:Ann Maggio Thanawalla; Rick Cole; Sam Thanawalla
Subject:item 3-A for Dec. 12 REJECT STAFF RECOMMENDATION - Misappropriation of Funds & Liability Exposure linkingnon city group as an Advisory Arm to City Council
Date:Tuesday, December 12, 2017 11:58:19 AM
Dear City Council and City Attorney,
Thee origins and usage plans for Childcare Linkage fees, established in 2006, werepredicated on a need to supply childcare for office workers either on site or in theimmediate area. The survey, conducted in 2005 by Keyser Marston & Associates,determined that about 34 preschools spots would be needed for every 1,000 new nonresident office workers.
From the AB1600 Report ending June 30, 1016There is a reasonable relationship between new development upon which theChild Care Linkage Fees are charged and the need to address the increaseddemand for childcare within the City. In November 2005, Keyser MarstonAssociates, Inc., prepared a study that analyzed the linkages between child caredemand and new development. The study focused on the relationships betweenthe construction of new buildings and resulting job growth, new employees withchildren age 5 or under needing child care that can be met at or near theworkplace, the demand for child care spaces with the per square foot buildingarea of new construction, and the costs to build child care facilities prorated inproportion to the demand generated by new construction type. The study foundthat new development which does not include or contribute toward the cost ofchild care facilities will only serve to further exacerbate a shortage of child carespaces. Furthermore, the Child Care Linkage Fees charged will be used to fundeligible projects."
Where is the staff's information about how many new preschools have opened sincethe ordinance went into effect?
Dozens of new preschools have opened all over the city since 2006. How many newoffice workers have been added to the Civic Center and nearby since that time? Where is the information showing what percentage of preschool seats have beenabsorbed by the newly open preschools in the past 11 years?
Also, as you know, Santa Monica's declining child population means there are morepreschool seats than ever for non resident office workers.
Therefore, the allocation of Childcare Linkage fees for the construction of the ECLS isa misappropriation of public funds and not in accordance with the premise of theordinance for the fees. These fees should either be returned or allocated inaccordance with the ordinance.
From the AB1600 Report ending June 30, 1016There is a reasonable relationship between new development upon which theChild Care Linkage Fees are charged and the need to address the increaseddemand for childcare within the City. In November 2005, Keyser MarstonAssociates, Inc., prepared a study that analyzed the linkages between child caredemand and new development. The study focused on the relationships between
Item # 3A 12/12/2017
Item # 3A 12/12/2017
the construction of new buildings and resulting job growth, new employees withchildren age 5 or under needing child care that can be met at or near theworkplace, the demand for child care spaces with the per square foot buildingarea of new construction, and the costs to build child care facilities prorated inproportion to the demand generated by new construction type. The study foundthat new development which does not include or contribute toward the cost ofchild care facilities will only serve to further exacerbate a shortage of child carespaces. Furthermore, the Child Care Linkage Fees charged will be used to fundeligible projects."
Additionally, last night City Manager, Rick Cole, misspoke when he attempted tocorrect a comment made by community member, Ron Goldman, about the use ofGeneral Funds paying for the construction of the ECLS (Lab School) on Civic Centerpublic land. At the community meeting on Homelessness, Rick stated no generalfunds were allocated to support the construction of the ECLS.
However, the Jan. 24, 2017, Agenda Item 3J Staff Report says, "1. Childcare LinkageFee – This fee is collected to address the increased demand for childcare triggered bythe development of commercial projects. As of June 30, 2016, the balance on handfor this fee totaled $2.5 million. Council has approved usage of ChildcareLinkage Fee funds and General Fund dollars towards the construction ofthe Early Childhood Lab School (ECLS), formerly the Early ChildhoodEducation Center (ECEC)."
Additionally, City Council minutes show the council voted to approve $5.5 Million ofGeneral Fund monies after the city's redevelopment funds which had been allocatedfor the project were taken away by the state. Only half a million came from theDeveloper Agreement with Rand. Months later, when redevelopment moneyearmarked for SMMUSD was up for a vote, the council decided NOT to approve anallocation to cover the loss.
We ask the city be transparent in the form of a public statement to thecommunity, explaining exactly how much money the city has already usedto fund the ECLS. The public has a right to know how much of our tax money isbeing spent to fund this facility that at best will serve 33 local children and at best, 4local SMC students. We also ask the city retract any statements, including thosemade in Staff Reports, claiming the City Council approved any work done by a theEarly Childcare Task Force and make it publicly know that this is not a city sanctionedbody but instead operate outside the BROWN ACT.
Thank you,
The Thanawalla Family
"Unthinking respect for authority is the greatest enemy of truth." - Albert Einstein
This communication may be unlawfully collected and stored by theNational Security Agency (NSA) in secret. The parties to this email do notconsent to the retrieving or storing of this communication and any relatedmetadata, as well as printing, copying, re-transmitting, disseminating, or
Item # 3A 12/12/2017
Item # 3A 12/12/2017
otherwise using it. If you believe you have received this communication inerror, please delete it immediately.
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Tricia Crane
To:councilmtgitems; Ted Winterer; Kevin McKeown Fwd; Gleam Davis; Terry O’Day; Pam OConnor; Tony Vazquez;Sue Himmelrich; Clerk Mailbox; Rick Cole; Denise Anderson-Warren
Subject:Letter to City Council re Agenda Item 3.A (Childcare Linkage fees) Dec. 12, 2017
Date:Tuesday, December 12, 2017 1:36:16 PM
To: City Council
From: Board of Directors, Northeast Neighbors
RE: City Council 12/12/17 agenda item 3-A
Dear City Council,
A majority of the board of Northeast Neighbors on behalf of our tax paying members object to the
proposal by City staff that Child Care Linkage Fees generated by development be used to help pay for
the construction of the Santa Monica College Early Childhood Lab School.
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual Reporting
of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and
the FY 2016-17 Childcare Linkage Fee Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand for child
care triggered by the development of commercial projects. As of June 30, 2017, the balance
on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the CIP
Budget Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds and
General Fund dollars towards the construction of the Early Childhood Lab School (ECLS),
scheduled to begin construction in early 2018."
We oppose the use of Child Care Linkage Fee funds and additional General Fund dollars to be used for
the construction of the Early Childhood Lab School (ECLS).
The community is aware from the minutes of the SMC Citizens Bond Oversight Committee that Santa
Monica College has $462,892,008 in facility bond funds remaining, which should be used for the
construction of the ECLS.
Fees collected to address the increased demand for child care triggered by the development
of commercial projects should be used to benefit families throughout the city and NOT to help pay for
construction of the SMC Early Childhood Lab School, which will benefit primarily employees of the City of
Santa Monica, the RAND Corporation, and Santa Monica College.
Sincerely,
The Board of Northeast Neighbors
Clerk - Please include this letter in the public record for Agenda Item 3.A, City Councilmeeting of Dec. 12, 2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Tricia Crane
To:councilmtgitems; Ted Winterer; Kevin McKeown Fwd; Gleam Davis; Terry O’Day; Pam OConnor; Tony Vazquez;Sue Himmelrich; Clerk Mailbox; Rick Cole; Denise Anderson-Warren
Subject:Letter to City Council re Agenda Item 3.A (Childcare Linkage fees) Dec. 12, 2017
Date:Tuesday, December 12, 2017 1:36:16 PM
To: City Council
From: Board of Directors, Northeast Neighbors
RE: City Council 12/12/17 agenda item 3-A
Dear City Council,
A majority of the board of Northeast Neighbors on behalf of our tax paying members object to the
proposal by City staff that Child Care Linkage Fees generated by development be used to help pay for
the construction of the Santa Monica College Early Childhood Lab School.
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual Reporting
of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and
the FY 2016-17 Childcare Linkage Fee Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand for child
care triggered by the development of commercial projects. As of June 30, 2017, the balance
on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the CIP
Budget Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds and
General Fund dollars towards the construction of the Early Childhood Lab School (ECLS),
scheduled to begin construction in early 2018."
We oppose the use of Child Care Linkage Fee funds and additional General Fund dollars to be used for
the construction of the Early Childhood Lab School (ECLS).
The community is aware from the minutes of the SMC Citizens Bond Oversight Committee that Santa
Monica College has $462,892,008 in facility bond funds remaining, which should be used for the
construction of the ECLS.
Fees collected to address the increased demand for child care triggered by the development
of commercial projects should be used to benefit families throughout the city and NOT to help pay for
construction of the SMC Early Childhood Lab School, which will benefit primarily employees of the City of
Santa Monica, the RAND Corporation, and Santa Monica College.
Sincerely,
The Board of Northeast Neighbors
Clerk - Please include this letter in the public record for Agenda Item 3.A, City Councilmeeting of Dec. 12, 2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Christhild Andersen
To:Pam OConnor; Ted Winterer; Kevin McKeown Fwd; councilmtgitems; Gleam Davis; Sue Himmelrich; Terry O’Day;Tony Vazquez; Clerk Mailbox; Rick Cole; David Martin
Subject:City Coouncil Agenda 3 A
Date:Tuesday, December 12, 2017 3:23:37 PM
To City Council and City Staff,
I oppose that City Council should allow developers to pay Child Care linkage Fees, but instead require
them to install a childcare facility within their development. It will make for dedicated employees as they
do not have to spend extra time to drive to drop off or pick up their children at a further away child care
facility but have their children at their workplace and see them at lunch time. This reduces the amount of
creation of other child care businesses. So no need to have any in R1 neighborhoods.
I also appose the zoning change of allowing that in R1 districts a single family home garage can be torn
down. Please do not approve this zoning change as it will open the door for businesses in R1
neighborhoods like child care for 20 children which require more parking spaces. A special requirement of
for tearing down a garage for more parking spaces needs to be still part of a public hearing. It is contrary
to the LUCE Which promises to conserve neighborhoods.
Please respect the LUCE and our R1 neighborhoods.
Ms. Christel Andersen
Email: Christhildandersen@yahoo.com
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Estefania Zavala
To:Councilmember Kevin McKeown; Ted Winterer; Tony Vazquez; Terry O’Day; Pam OConnor; Gleam Davis
Cc:councilmtgitems; Katie E. Lichtig; Rick Cole; Karen Ginsberg
Subject:FW: Child Care Facility for the Ruling Class - to be funded with Development fees
Date:Tuesday, December 12, 2017 4:25:26 PM
Council –
Please see the email below regarding the childcare facility.
Best,
Estefania
From: Justine C Gilman [mailto:jgilman@usc.edu]
Sent: Tuesday, December 12, 2017 3:47 PM
To: Council Mailbox <Council.Mailbox@SMGOV.NET>
Subject: Child Care Facility for the Ruling Class - to be funded with Development fees
To: City Council
From: Board of Directors, Northeast Neighbors
RE: City Council 12/12/17 agenda item 3-A
Dear City Council,
A majority of the board of Northeast Neighbors on behalf of our tax paying members object to the
proposal by staff that Child Care Linkage Fees be used to help pay for the construction of the Santa
Monica College Early Childhood Lab School.
Agenda item 3-A: Annual Reporting of Development Impact Fees
"Recommended Action
Staff recommends that the City Council review and accept the FY 2016-2017 Annual Reporting
of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and
the FY 2016-17 Childcare Linkage Fee Report per SMMC Section 9.65....
"Child Care Linkage Fee – This fee is collected to address the increased demand for child
care triggered by the development of commercial projects. As of June 30, 2017, the balance
on hand for this fee totaled $2.6 million.
No expenditures were spent in FY 2016-17, however on June 14, 2016, as part of the CIP
Budget Adoption, Council approved $1,098,598 usage of Child Care Linkage Fee funds and
General Fund dollars towards the construction of the Early Childhood Lab School (ECLS),
scheduled to begin construction in early 2018."
We oppose the use of Child Care Linkage Fee funds, plus additional General Fund dollars, to be used for
the construction of the Early Childhood Lab School (ECLS).
The community is aware from the minutes of the SMC Citizens Bond Oversight Committee that Santa
Monica College has $462,892,008 in facility bond funds remaining, which should be used for the
Item # 3A 12/12/2017
Item # 3A 12/12/2017
ECLS.
Fees collected to address the increased demand for child care triggered by the development
of commercial projects should NOT help pay for construction of the SMC Early Childhood Lab School,which will provide child care primarily for employees of the City of Santa Monica, the RAND Corporation,and Santa Monica College.
Sincerely,
Justine Gilman
Santa Monica Resident
Clerk - Please include this letter in the public record for Agenda Item 3.A, City Council meeting of Dec.
12, 2017
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Nada
To:councilmtgitems; Ted Winterer; Gleam Davis; Tony Vazquez; Councilmember Kevin McKeown; Terry O’Day; SueHimmelrich; Pam OConnor
Cc:Brian Patrick O"Neil; Nada
Subject:Re: Residents for the Preservation of Gandara Park Neighborhood - City Council 12/12/17 Meeting Agenda Items7D and 3A
Date:Tuesday, December 12, 2017 5:28:34 PM
Dear Councilmembers,
We are writing to express concern regarding and opposition to the recommended actions for
Agenda Items 7D and 3A.
First, regarding Item 7D, which is described as a "Second Reading and Adoption of Ordinance
Adopting Changes, Corrections, and Clarifications to the City's Zoning Ordinance, Chapters
9.01 Through Chapter 9.52 of Article 9 of the Santa Monica Municipal Code", the Staff
recommends that City Council adopt the attached Ordinance.
We take particular issue with the change proposed to SMMC Section 9.28.070(A) (p. 3.75),
which changes the required parking for Single-Unit Residential Districts. The current law
requires that parking in a Single-Unit Residential District shall be located within an enclosed
garage. The proposed change would modify the ordinance as follows: “Required parking for
all other permitted use classifications in the Single-Unit Residential district shall not be
required to be located within an enclosed garage.” This would mean that all homes in Single-
Unit Residential Districts that were operated as businesses, such as preschools, could remove
the garage. This would effectively re-zone each of these homes for business and commercial
uses because it would be cost prohibitive for future buyers who wanted to use the home as a
dwelling since they would have to rebuild the demolished garages.
This proposed change in the ordinance was mischaracterized as “Zoning Ordinance Clean-Up”
and the Executive Summary in the December 5 City Council Report stated “The proposed
changes identified in this report are intended to provide clarification of standards, provide
consistency between regulations, and eliminate any potential confusion in the application of
standards without significantly altering the standards and regulations within the Zoning
Ordinance.” In reality, this change does, in fact, significantly alter the standards and
regulations within the Zoning Ordinance because it undermines and changes the purpose of
having Single-Unit Residential Units.
This proposed zoning ordinance change was introduced under cover of night, hidden within
other proposed changes, and presented without any public reading or proper notice, simply to
give the Applicant and the Staff an advantage in the Appeal filed by Residents for the
Preservation of Gandara Park Neighborhood to the Planning Commission Statement of Official
Action Approving Applications for Conditional Use Permit 17ENT-0075, Variance 17ENT-0147,
Item # 3A 12/12/2017
Item # 3A 12/12/2017
& Fence/Wall Modification 17ENT-0148 for 2953 Delaware Ave. This governing by subterfuge
is not only morally and ethically improper, it also strips residents of their due process rights
and does away with the notion of a transparent process for developing city policy.
We urge the City Council to reject this proposed zoning ordinance change outright or to
continue it to allow for further public comment and analysis of the long term effects this
change will have on Single-Unit Residential Districts.
Second, we also urge the City Council to reject the staff recommendation to accept the report
for Agenda Item 3A. We protest the expenditure of Child Care Linkage Fees to help pay for the
construction of the Santa Monica College Early Childhood Lab School.
Best regards,
Nada Shamonki
Member and Representative of the
Residents for the Preservation of Gandara Park Neighborhood
Item # 3A 12/12/2017
Item # 3A 12/12/2017
From:Johnson Thurston
To:Kevin McKeown Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; Pam OConnor; Terry O’Day; Ted Winterer; councilmtgitems
Subject:City Council 12/12/17 agenda item 3-A
Date:Tuesday, December 12, 2017 6:04:28 PM
Dear City Council Members,
Please do not use the Child Care Linkage Fees to help pay for the construction of the Santa
Monica College Early Childhood Lab School.
Instead, the fees should go towards childcare that all santa monicans can use.
Voting to use development offset fees to build exclusive childcare centers will further undermine good causes like public green space, public art, public transit and affordable
housing. Because people will increasing think things funding good causes are instead being in a discriminatory way, funneled to pay for exclusive groups.
Please stand up for equality in childcare access and vote down this offensive use of badly
needed funds.
Thank you,
Johnson Thurston Santa Monica CA
Item # 3A 12/12/2017
Item # 3A 12/12/2017
A COPY OF THIS STAFF
REPORT IS ALSO IN
LEGISLATIVE FILE NO.
211-031