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m20210323.pdf 1 March 23, 2021 CITY OF SANTA MONICA CITY COUNCIL MINUTES MARCH 23, 2021 A regular meeting of the Santa Monica City Council was called to order by Mayor Himmelrich at 5:30 p.m., on Tuesday, March 23, 2021, via teleconference pursuant to the Governor’s Executive Order N-29-20 at https://primetime.bluejeans.com/a2m/live-event/rvxhjxyp Roll Call: Present: Mayor Sue Himmelrich Mayor Pro Tem Kristin McCowan Councilmember Phil Brock Councilmember Gleam Davis Councilmember Oscar de la Torre Councilmember Kevin McKeown Councilmember Christine Parra Also Present: Interim City Manager Lane Dilg Interim City Attorney George Cardona City Clerk Denise Anderson-Warren CONVENE On order of the Mayor, the City Council convened at 5:30 p.m., with all members present. MOMENT OF SILENCE At the request of the Mayor, the City Council took a moment of silence to acknowledge and mourn the tragedies in Atlanta and Boulder this past week. CLOSED SESSIONS There was no public comment on closed sessions. On order of the Mayor, the City Council recessed at 5:33 p.m., to consider closed sessions and returned at 6:35 p.m., with all members present, to report the following: 1.A. Conference with Legal Counsel – Existing Litigation – Litigation has been Initiated Formally Pursuant to Gov. Code Section 54956.9 (d) (1): Jad Alrabadi v. City of Santa Monica, et al., Los Angeles Superior Court, Case No. 18STCV08958. The Interim City Attorney advised the Plaintiff, who is wheelchair bound and suffers from cerebral palsy, alleges that his wheelchair was not properly secured when he boarded a Big Blue Bus on August 10, 2018. Plaintiff alleges that as a result his wheelchair fell backwards when the bus DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 2 March 23, 2021 made a turn, causing him to suffer severe injuries that have led to two surgeries to date. The City does not admit the allegations, but to avoid the expense and burden of further litigation, the City Attorney’s Office recommended settlement in the total amount of $1,500,000, of which $100,000 will be paid by Caring Connection, the company that employed plaintiff’s caretaker, who accompanied plaintiff on the bus. Motion by Councilmember Davis, seconded by Mayor Pro Tem McCowan, to approve Settlement No. 11148 (CCS), in the amount of $1,500,000. The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None 1.B. Conference with Real Estate Negotiator pursuant to Government Code Section 54956.8: Property: Parking Area East/Airport Park Expansion West (226,090 sf) and 3200 Airport Avenue (16,590 sf), Santa Monica, California; City Negotiators: Jennifer Taylor, Economic Development Manager, and Stelios Makrides, Chief Operations Officer/Airport Director; Owner of Record: City of Santa Monica; Persons to be negotiated with: Angel City Football Club; Under negotiation: Ground Lease and Building Lease Terms. The Interim City Attorney advised this matter was heard with no reportable action taken. SPECIAL AGENDA ITEMS: 2.A. Proclamation Declaring March 31, 2021 as Cesar Chavez Day in the City of Santa Monica, was presented 2.B. Commendations: EOC Staff (COVID-19 Pandemic), was presented. CONSENT CALENDAR: All items were considered and approved in one motion unless removed by a Councilmember for discussion. Member of the public Mark Verville commented on a Consent Calendar item. Motion by Councilmember Brock, seconded by Councilmember Davis, to approve the Consent Calendar, reading resolutions by title only and waiving further reading thereof. DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 3 March 23, 2021 The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, de la Torre, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None ANNUAL FINANCIAL REPORT 3.A. Presentation of the City’s Comprehensive Annual Financial Report, was approved. Recommended Action Staff recommends that the City Council receive and file the City’s Comprehensive Annual Financial Report (Financial Report), the independent auditors’ unmodified report for the City’s financial statements for the fiscal year ended June 30, 2020, and the Auditors’ Letter to Council. AMICUS BRIEF 3.B. Authorization to Join in Amicus Brief In Support of the City of New York in Marcia Melendez, et al. v. City of New York, et al., United States Court of Appeals for the Second Circuit, No. 20-4238-cv, was approved. Recommended Action Staff recommends that City Council authorize the City to sign on to an amicus brief to be filed by the Public Rights Project, the City of Chicago, and the City of Santa Monica in support of the constitutionality of the City of New York’s tenant harassment ordinance that prohibits threatening tenants based on their status as an essential employee, status as a person impacted by COVID-19, or receipt of a rent concession or forbearance for any rent owed during the COVID-19 pandemic. EMERGENCY PROCLAMATION 3.C. Adoption of Resolution No. 11324 (CCS) entitled “AN EMERGENCY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PURSUANT TO CHAPTER 2.16 OF THE SANTA MONICA MUNICIPAL CODE RATIFYING THE PROCLAMATION OF EXISTENCE OF LOCAL EMERGENCY AND SUPPLEMENTAL PROCLAMATIONS THERETO”, was adopted. Recommended Action Staff recommends that Council adopt the proposed resolution ratifying the Executive Order issued by the Director of Emergency Services declaring the existence of a local emergency in the city of Santa Monica and the Supplements to that Order. 100 WILSHIRE BOULEVARD 3.D. Approval of Agreement Modification to Include Utility Costs at Rooftop Space at 100 Wilshire Boulevard, was approved. DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 4 March 23, 2021 Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #9798 with DE 100 Wilshire, LLC in the amount of $7,200 for additional license fees including the utility costs required for the City’s operation of its communications equipment for the Police Department. This will result in a ten-year agreement with a new total amount not to exceed of $569,356, with future year funding contingent on Council budget approval. STORMWATER 3.E. Adoption of Resolution No. 11325 (CCS) to entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TOAUTHORIZE ENTERING INTO PROPOSITION 1 STORM WATER GRANT PROGRAM FUNDING AGREEMENT WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FOR THE STORMWATER HARVESTING & TREATMENT PROJECT FOR GROUNDWATER INJECTION, PART OF THE SUSTAINABLE WATER INFRASTRUCTURE PROJECT (SWIP), AND DESIGNATE A REPRESENTATIVE/REPRESENTATIVES”, was adopted. Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution to accept the Prop 1 Storm Water Grant Program funds from the State Water Resources Control Board; 2. Authorize the City Manager or designee to negotiate and execute agreements to receive the funds; and 3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. MINUTES 3.F. Minutes of City Council - Special Meeting - March 9, 2021, were approved MINUTES 3.G. Minutes of City Council - Regular and Special Meeting - March 9, 2021, were approved. ORDINANCES: FLOODPLAIN ORDINANCE 7.A. Second Reading And Adoption Of Ordinance No. 2665 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OFSANTA MONICA MODIFYING CHAPTER 7.68 OF THE SANTA MONICA MUNICIPAL CODE TO UPDATE THE CITY’S FLOODPLAIN ORDINANCE TO MEET FEMA REQUIREMENTS FOR FLOOD INSURANCE”, was presented. Recommended Action Staff recommends that City Council waive reading in full and adopt the attached Ordinance. DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 5 March 23, 2021 Motion by Mayor Pro Tem McCowan, seconded by Councilmember Davis, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None MOBILITY 7.B. Second Reading And Adoption Of Ordinance No. 2666 (CCS) entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OFSANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 3.21.090 TO EXTEND THE TERM OF THE FIRST SHARED MOBILITY DEVICE PILOT PROGRAM FROM APRIL 30, 2021 TO JUNE 30, 2021; AMENDING CHAPTER 3.22 (SECOND SHARED MOBILITY DEVICE PILOT PROGRAM); AND AMENDING SECTION 3.12.600 TO AUTHORIZE THE USE OF CLASS 1 AND CLASS 2 ELECTRIC BICYCLES, BUT PROHIBIT THE USE OF MOTORIZED OR CLASS 3 ELECTRIC BICYCLES, ON THE BEACH BIKE PATH”, was presented. Recommended Action Staff recommends that City Council waive reading in full and adopt the attached Ordinance. Motion by Councilmember Parra, seconded by Councilmember Brock, to adopt the ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES: Councilmembers Parra, McKeown, Brock, de la Torre, Mayor Himmelrich NOES: Councilmember Davis, Mayor Pro Tem McCowan ABSENT: None Councilmember Davis stated she voted no on this item for the same reason she voted no for the first reading. She thinks this is unduly complicated and creates a situation which might cause a lot of confusion in our city with regards to dockless mobility particularly at times we know we're going to have lots of visitors in town for example this 4th of July holiday. AGENDA MANAGEMENT Motion by Mayor Himmelrich, seconded by Mayor Pro Tem McCowan, to approve hearing Item 8.B. before 8.A. The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, de la Torre, Mayor Pro Tem McCowan, Mayor Himmelrich DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 6 March 23, 2021 NOES: None ABSENT: None WATER INFRASTRUCTURE 8.B. Adoption of Resolution No. 11326 (CCS) entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO APPLY FOR FINANCIAL ASSISTANCE THROUGH THE WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT PROGRAM AND TO NEGOTIATE AND EXECUTE A FUNDING AGREEMENT”, was presented. Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution authorizing the City Manager to submit an application for credit assistance for up to $84,520,000 through the U.S. EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) Program; 2. Authorize the City Manager or designee to negotiate and execute all documents necessary for the credit assistance agreement with the U.S. EPA; 3. Authorize the Procurement Manager to issue a purchase order with the U.S. EPA for closing costs in an amount not to exceed $300,000; 4. Direct staff to proceed with an analysis of a revenue bond as an alternative to the WIFIA loan and to return to Council for authorization to issue such a bond if it is determined to be more favorable than the WIFIA loan; and 5. Authorize budget changes as outlined in the Financial Impacts & Budgets Actions section of this report. There was no public comment for this item. Questions asked and answered of staff included: what is an acre foot of water equivalent to; when this project is done, will there be any savings for residents, or will their rates soar; if the required RHNA housing is built, where does that put the city with water in the next seven to eight years; does that reduce our ability to be water sufficient; or in the case of more recycling of water and more wastewater management does that end up at a net for us; and, is the estimate to reduce water usage by 5% - 7% using SMART meters; with the 5% - 7% reduction, does the investment in SMART meters eventually pay for itself. Motion by Councilmember McKeown, seconded by Councilmember de la Torre, to adopt the attached resolution authorizing the City Manager to submit an application for credit assistance for up to $84,520,000 through the U.S. EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 7 March 23, 2021 Program; to authorize the City Manager or designee to negotiate and execute all documents necessary for the credit assistance agreement with the U.S. EPA; authorize the Procurement Manager to issue a purchase order with the U.S. EPA for closing costs in an amount not to exceed $300,000; to direct staff to proceed with an analysis of a revenue bond as an alternative to the WIFIA loan and to return to Council for authorization to issue such a bond if it is determined to be more favorable than the WIFIA loan; and, authorize budget changes as outlined in the Financial Impacts & Budgets Actions. The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None STAFF ADMINISTRATIVE ITEMS: SURPUS LAND 8.A. Adoption of Resolution No. 11327 (CCS) entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA, CALIFORNIA, DECLARING PURSUANT TO THE SURPLUS LAND ACT THAT CERTAIN REAL PROPERTY OWNED OR MASTER-LEASED BY THE CITY LOCATED AT 1636 5TH STREET AND THE CITY’S LEASEHOLD INTEREST IN 1333 4TH STREET IS SURPLUS LAND NOT NECESSARY FOR THE CITY’S USE, AND CERTAIN REAL PROPERTY OWNED BY THE CITY LOCATED AT 1318-20 4TH STREET IS EXEMPT SURPLUS LAND NOT NECESSARY FOR THE CITY’S USE AND PROPOSED FOR A 100% AFFORDABLE HOUSING DEVELOPMENT; FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND TAKING RELATED ACTIONS”, was presented. Recommended Action Staff recommends that the City Council: 1. Declare two City-owned properties located at 1636 5th Street (APN 4290-011-906) and 1333 4th Street (APN 4291-011-910) as “surplus land” as defined in Government Code Section 54221(b); 2. Declare one City-owned property located at 1318-1320 4th Street (APN 4291-012-900 & 901) as “exempt surplus land” as defined in Government Code Section 54221(f); 3. Adopt a Resolution declaring the City-owned properties at 1636 5th Street and 1333 4th Street as surplus land and the City-owned property at 1318 4th Street as exempt surplus land, and authorize the City Manager or his or her designee to take implementing actions necessary to comply with the Surplus Land Act (Government Code sections 54220 et seq.; 4. Authorize the City Manager or his or her designee to submit the report of declared surplus land and exempt surplus land as part of DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 8 March 23, 2021 the Annual Report to the California Department of Housing and Community Development (HCD), in conformance with state law. Members of the public Mary Marlow and Denise Barton spoke to the recommended action. The Interim City Attorney made a modification to the resolution to recognize that the City does not own the property at 1333 4th Street, but rather has a leasehold interest in that property. Questions asked and answered of staff included: is there any downside to declaring a surplus property and being able to use it for affordable housing in the future; if a property is deemed surplus, can it be sold; if a property is deemed exempt, can it be considered for what type of uses; why would the city place these valuable properties as surplus to be sold, instead of maintaining them for affordable housing; why is staff requesting Parking Structure 3 be demolished now, when there isn’t a developer for that property; is it customary for the city to be responsible for demolition and not the developer; does it mean there will be no development on 4th & 5th and Arizona, as a result of the lease with Bank of America until 2026; once the property is deemed surplus on the 5th Street site, is there an adjacent developer who is interested in that property; and, before a large development could be built on that property, would it have to go through a rigorous planning process, and come back before Council. Motion by Councilmember Brock, seconded by Councilmember Parra, to declare two City-owned properties located at 1636 5th Street (APN 4290- 011-906) and the City’s leasehold interest in 1333 4th Street (APN 4291- 011-910) as “surplus land” as defined in Government Code Section 54221(b). The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None Motion by Mayor Pro Tem McCowan, seconded by Councilmember Davis, to Declare one City-owned property located at 1318-1320 4th Street (APN 4291-012-900 & 901) as “exempt surplus land” as defined in Government Code Section 54221(f). The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, de la Torre, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 9 March 23, 2021 Motion by Councilmember Davis, seconded by Mayor Pro Tem McCowan, to adopt Resolution No. 11327(CCS), declaring the City-owned properties at 1636 5th Street and the City’s leasehold interest in 1333 4th Street as surplus land and the City-owned property at 1318 4th Street as exempt surplus land, and authorize the City Manager or his or her designee to take implementing actions necessary to comply with the Surplus Land Act. The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None Motion by Councilmember Parra, seconded by Councilmember Brock, to authorize the City Manager or his or her designee to submit the report of declared surplus land and exempt surplus land as part of the Annual Report to the California Department of Housing and Community Development (HCD), in conformance with state law. The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, de la Torre, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None REPORT ON MEETING COMPENSATION Pursuant to State law, City Clerk Denise Anderson-Warren announced that Council will receive no compensation for meeting as the Public Finance Authority. SPECIAL JOINT MEETING On order of the Mayor, the City Council convened to a special joint meeting with the Public Financing Authority at 8:30 p.m., with all members present. BONDS ISSUANCE 8.C. Adoption of Resolutions Nos. 11328 (CCS) and 16 (PFA) Authorizing Issuance of Lease Revenue Refunding Bonds (Parking Structure 6 Project), Series 2021A and Series 2021B, was presented. Recommended Action Staff recommends that the City Council: 1. Adopt the attached Resolution Authorizing Issuance of Lease Revenue Refunding Bonds (Parking Structure 6 Project), Series 2021A and Series 2021B (Attachment A), and approve the related documents required for the Issuance of Lease Revenue Refunding Bonds (Parking Structure 6 Project), Series 2021A and Series 2021B (Attachments D, E, F, G, H and I). DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 10 March 23, 2021 Staff recommends that the Public Financing Authority: 1. Adopt the attached Resolution Authorizing Issuance of Lease Revenue Refunding Bonds (Parking Structure 6 Project), Series 2021A and Series 2021B (Attachment B), and approve the related documents required for the Issuance of Lease Revenue Refunding Bonds (Parking Structure 6 Project), Series 2021A and Series 2021B (Attachments C, D, E, F, G, H and I). There was no public comment for this item. Questions asked and answered of staff included, what collateral did we provide for parking structure #6. Motion by Councilmember McKeown, seconded by Councilmember Davis, that the City Council adopt Resolution No. 11328 (CCS) authorizing issuance of lease revenue refunding bonds. The motion was approved by the following vote: AYES: Councilmembers de la Torre, Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None Motion by Authority Member McKeown, seconded by Authority Member de la Torre, that the Public Financing Authority adopt Resolution No. 16 (PFA) authorizing issuance of lease revenue refunding bonds. The motion was approved by the following vote: AYES: Authority Members Parra, Davis, McKeown, Brock, de la Torre, Chair Pro Tem McCowan, Chair Himmelrich NOES: None ABSENT: None MINUTES 8.D. Minutes for Public Financing Authority meeting, were presented. Recommended Action Staff recommends that the Public Financing Authority approve the minutes of the October 27, 2020 meeting. Motion by Chair Pro Tem McCowan, seconded by Authority Member McKeown, to approve the staff recommendation. The motion was approved by the following vote: AYES: Authority Members de la Torre, Brock, McKeown, Davis, Parra, Chair Pro Tem McCowan, Chair Himmelrich DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 11 March 23, 2021 NOES: None ABSENT: None ADJOURNMENT OF SPECIAL JOINT MEETING On order of the Chair/Mayor, the special joint meeting with the Public Finance Authority was adjourned at 8:35 p.m., and the regular meeting of the City Council was reconvened, with all members present. RENT RELIEF 8.E. Approval of COVID-19 Rent Relief for City Tenants, was presented Recommended Action Staff recommends that the City Council authorize the City Manager or designated staff to take the following actions regarding the current Rent Deferment Program that covers a subset of commercial tenants in City- owned properties who are currently enrolled in the program: 1. Extend the repayment term from September 30, 2021 to June 30, 2022; 2. Suspend rent increases in FY 2021-2022, for the months of July 1, 2021 to June 30, 2022; 3. Consider and provide direction regarding the additional rent relief measures outlined as Options 1 and 2 in this report; 4. Authorize staff’s discretion to administer the Rent Deferment Program specifically to Santa Monica Airport tenants in a manner that fully complies with the City’s contractual obligations under its Consent Decree and Settlement Agreement with the Federal Aviation Administration; and, 5. Authorize staff to amend the Ground Lease between the City and the Worthe Group to memorialize the requirement to pass through the value of a one-year rent freeze authorized by Council to subtenants, with priority given to non-profits at the Bergamot Arts Center. Members of the public Robert Berman, Marisa Caichiolo, Cindy Phiffer, Yossi Gorvin, Mary Marlow, Rose Shoshana, Greg Morena, Rubert Hitzig, Maria Guerrero, William Turner, Craig Krull, Tricia Crane, Charles Duncombe, Mike Myers, Don Camacho, Eddie Jauregui, Jack Mendoza, John Ruskin, and, Om Bleicher spoke on the recommended action. Councilmember de la Torre made a statement to avoid any perception of a conflict of interest on this item. His statement was as follows: “There are 60 businesses and some of those businesses at Bergamot have been supportive at fund raising events with space or donations with the Pico Youth and Family Center. I want to make sure that I personally avoid any potential or perception or conflict, and because of that, I will be recusing myself from this item.” DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 12 March 23, 2021 Councilmember de la Torre was excused at 10:03 p.m. Questions asked and answered of staff included: is there some reason that staff is not bringing back how the city can accommodate their tenants, until after the city receives Federal funding; is there some sort of timeline about when the expectation that everything will get back to 100% normal; are we waiting to invest some money to help businesses make money; what options does the city have to allocate one-time art funds; what can be done to assure tenants that the city is going to do as much as they can to help them; can the proposals be broken down by business groups in comparison to what staff is proposing; what is the minimum that needs to be done tonight in order to keep the tenants safe; and, what can be done to help the non-profits, so that they can continue to operate. Motion by Councilmember Brock, seconded by Councilmember McKeown, that the city extend its deferral of rents for city tenants who are commercial Tenant 1, for a period until June 30th under the same standards as the current commercial eviction moratorium. Those who are open, pay 50% of the rent, those who are still required to be closed by the health order can defer 100% of their rent. The repayment period for the deferred rent will be extended until three months after June 30th to September 30, 2021 as the start of the repayment period. The repayment term from repayment would be extended to begin September 1, 2021, and the expiration date for repayment would be June 30, 2022, subject to staff coming back with additional suggestions in the future. City staff should look for ways to assist the businesses in looking for additional funding from either Federal, State or local funding sources, as those become available and make efforts to provide assistance to the businesses to do whatever is necessary to qualify. Councilmember Davis proposed a friendly amendment, that the June 30, 2022 date be subject to reconsideration when this item is brought back as a larger package of relief for all of these businesses. The Interim City Attorney proposed revised language to address Council’s concerns to set the repayment period from September 1, 2021 to June 30, 2022, with direction to staff to return with a proposal to extend that repayment period and, potentially have a graduated payment program within that repayment period, as directed to staff to return. The maker and seconder accepted the amendment, with the language proposed. Councilmember Davis proposed a friendly amendment that whatever staff returns with, that not less than 20% of the American Rescue Plan dollars be devoted to relief for our current city tenants. Councilmember Davis pulled the motion from the main motion and decided to bring it back as direction to staff later in the evening. DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 13 March 23, 2021 The Interim City Attorney provided clarification about other items that needs to be included in the motion. 1) include the Worthe Group as part of this extension as a deferment, on the condition that they pass that through to the underlying tenants at Bergamot Station; 2) to suspend rent increases in FY 2021-2022, for the months of July 1, 2021 to June 30, 2022; and, 3)to authorize staff’s discretion to administer the Rent Deferment Program specifically to Santa Monica Airport tenants in a manner that fully complies with the City’s contractual obligations under its Consent Decree and Settlement Agreement with the Federal Aviation Administration. The additions to the motion were approved by the maker and the seconder. The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: Councilmember de la Torre Motion by Councilmember Davis, seconded by Mayor Himmelrich to give direction to staff, when they return with proposal regarding the American Recovery Act funds, that no less than 20 percent of those funds be directed towards small business recovery with an emphasis on those businesses for which the city is directly or indirectly landlord, and that we use those funds to preserve and promote those businesses in their current location or status. Mayor Pro Tem McCowan proposed a friendly amendment to include criteria that would allow some other struggling businesses in the community into this fund. The motion was not considered friendly by the maker, because the amendment is implied in the motion. Councilmember Davis, amended her motion to say set a goal of no less than 20 percent. The motion, as amended was approved by the following vote: AYES: Councilmembers Brock, McKeown, Davis, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: Councilmember de la Torre COUNCILMEMBER DISCUSSION ITEMS: Councilmember de la Torre returned at 11:05 p.m. 13.A. Request of Mayor Himmelrich, Mayor Pro Tem McCowan, and Councilmember Brock that the City Council affirm its support for splitting Santa Monica and Malibu into two separate independent school districts, but only if the terms of separation, including but not limited to the division of revenues and assets, are fair and just to students in Santa Monica schools, and provide robust and equal DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A 14 March 23, 2021 educational opportunity for both Malibu and Santa Monica students, was presented. Member of the public Jon Katz spoke on the recommended action. Motion by Councilmember Brock, seconded by Mayor Himmelrich, to approve the recommendation. The motion was approved by the following vote: AYES: Councilmembers Parra, Davis, McKeown, Brock, de la Torre, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None PUBLIC INPUT: Member of the public Jonathan Foster commented on various local issues. ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 11:16 p.m ATTEST: APPROVED: Denise Anderson-Warren Sue Himmelrich City Clerk Mayor DocuSign Envelope ID: 7608799C-F29F-4AA1-81A2-F95215ABC67A