m20220726 1 July 26, 2022
CITY OF SANTA MONICA
CITY COUNCIL MINUTES
JULY 26, 2022
A regular meeting of the Santa Monica City Council was called to order by Mayor Himmelrich at 5:37 p.m.,
on Tuesday, July 26, 2022, at City Council Chambers, 1685 Main Street, Santa Monica, CA.
Roll Call: Present: Mayor Sue Himmelrich
Mayor Pro Tem Kristin McCowan
Councilmember Phil Brock
Councilmember Gleam Davis
Councilmember Lana Negrete
Councilmember Oscar de la Torre
Councilmember Christine Parra
Also Present: City Manager David White
City Attorney Douglas Sloan
City Clerk Denise Anderson-Warren
CONVENE/PLEDGE
On order of the Mayor, the City Council convened at 5:37 p.m., with all
members present. Councilmember de la Torre led the assemblage in the
Pledge of Allegiance.
GENERAL PUBLIC
INPUT:
Members of the public David Whatley, Denise Barton, David Morris,
Jonathan Foster, and John Allen (time donated by Arthur Jeon) commented
on various local issues.
PUBLIC INPUT FOR
CLOSED SESSION,
SPECIAL AGENDA
ITEMS AND CONSENT
CALENDAR ONLY:
There was no public comment on Closed Session.
Member of the public Denise Barton commented on special agenda items.
Member of the public Denise Barton commented on consent calendar
items.
AGENDA
MANAGEMENT
On order of the Mayor, Item 16.D. was withdrawn at the request of the
proponents. The item was removed unanimously by voice vote with all
members present.
CLOSED SESSIONS
On order of the Mayor, the City Council recessed at 6:01 p.m., to consider
closed sessions and returned at 7:05 p.m., with all members present, to
report the following:
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3.A. Conference with Real Estate Negotiator pursuant to
Government Code Section 54956.8: Property: 1600 Ocean Front Walk,
6,449 sf. ft. (current), Santa Monica, California; City Negotiator: Elana
Buegoff, Pier Administrator; Owner of Record: City of Santa Monica;
Persons to be negotiated with: Heal the Bay; Negotiators: Tracy
Quinn, CEO and Marslaidh Ryan, Aquarium Director; Under
negotiation: Building Lease Terms
The City Attorney advised this matter was heard with no reportable action
taken.
3.B. Conference with Labor Negotiator: Government Code Section
54957.6 -- Agency Designated Representatives: City Manager David
White and Chief People Officer Lori Gentles; Bargaining Units: ATA-
Administrative Team Associates; IBT-California Teamsters Local 911;
FEMA-Santa Monica Fire Executive Management Association; FIRE-
Santa Monica Firefighters Local 1109 IAFF; MEA-Municipal
Employees Association; AFSCME Local 4819, Management Team
Association; PALSSU-Public Attorneys’ Legal Support Staff Union;
PAU- Public Attorneys Union; POA-Santa Monica Police Officer
Association; SMART TD-The International Association of Sheet
Metal, Air, Rail, and Transportation Division, Local 1785; STA-
Supervisory Team Associates; Coalition of Santa Monica City
Employees.
The City Attorney advised this matter was not heard.
SPECIAL AGENDA
ITEMS:
4.A. City Manager Report, was presented.
REPORT ON COUNCIL
TRAVEL
There was nothing to report on Council travel.
CONSENT CALENDAR: All items were considered and approved in one motion unless removed by a
Councilmember for discussion.
At the request of Councilmember Brock, Items 5A., 5.B. and 5.E. were
removed from the Consent Calendar.
At the request of Councilmember de la Torre, Item 5.C. was removed from
the Consent Calendar.
Motion by Councilmember Brock, seconded by Councilmember de la
Torre, to approve the Consent Calendar except for Items 5.A, 5.B., 5.C. and
5.E., reading resolutions by title only and waiving further reading thereof.
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The motion was approved by the following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
TELECONFERENCE
MEETINGS
5.D. Adoption of Resolution No. 11445 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA MAKING FINDINGS AS REQUIRED BY AB 361
TO PERMIT COUNCIL AND CITY BOARD, COMMISSION, AND
TASK FORCE MEETINGS TO CONTINUE TO BE CONDUCTED BY
TELECONFERENCE WHILE THE COVID-19 EMERGENCY
REMAINS IN PLACE”, was adopted.
Recommended Action
Staff recommends that Council adopt a resolution making the findings
required by AB 361 to continue teleconference meetings of the City
Council and City Boards, Commissions, and Task Forces through August
25, 2022.
LABOR NEGOTIATIONS 5.F. Adoption of Resolution No. 11446 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ACCEPTING THE TENTATIVE AGREEMENT AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A
MEMORANDUM OF UNDERSTANDING WITH THE CALIFORNIA
TEAMSTERS LOCAL 911” and authorizing the City Manager to
negotiate and execute Memoranda of Understanding No. 11293 (CCS)
with the California Teamsters Local, was adopted.
Recommended Action
Staff recommends that the City Council:
1. Adopt the proposed Resolution (Attachment A) accepting the
tentative agreement and authorizing the City Manager to negotiate
and execute a Memorandum of Understanding with the California
Teamsters Local 911;
2. Adopt the salary schedule (Attachment B); and
3. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report.
MINUTES 5.G. Minutes of City Council - Regular Meeting - June 14, 2022, were
approved.
MINUTES 5.H. Minutes of City Council - Special Meeting - July 14, 2022, 6:00
PM, were approved.
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RECYCLED WATER
MASTER PLAN
5.A. Award Bid and Enter into Agreement No. 11294 (CCS) with
Kennedy/Jenks Consultants, Inc., to Prepare a Recycled Water Master
Plan, was presented.
Recommended Action
Staff Recommends that the City Council:
1. Award RFP# 318 to Kennedy/Jenks Consultants, Inc., to provide
professional services for the development of a Recycled Water
Master Plan;
2. Authorize the City Manager to negotiate and execute a professional
services agreement with Kennedy/Jenks Consultants, Inc., in an
amount not to exceed $363,000 to provide professional services for
the development of a Recycled Water Master Plan; and
3. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report.
Councilmember Brock pulled this item to ask staff if the city is taking into
account the proposed State Regional Housing Needs Assessment (RHNA)
requirements in relation to the Recycled Water Master Plan.
Motion by Councilmember Brock, seconded by Mayor Himmelrich, to
approve the staff recommendation. The motion was approved by the
following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
DOMESTIC WATER AND
WASTEWATER MASTER
PLANS
5.B. Award Bid and enter into Agreement No. 11295 (CCS) with
Arcadis U.S., Inc. to Update the City's Domestic Water and
Wastewater Master Plans, was presented.
Recommended Action
Staff Recommends that the City Council:
1. Award RFP# 317 to Arcadis U.S., Inc. to update the City’s Domestic
Water & Sanitary Sewer Master Plans for the Public Works
Department;
2. Authorize the City Manager to negotiate and execute a Professional
Services Agreement with Arcadis U.S., Inc., in an amount not to
exceed $805,160 over a five-year term; and
3. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report.
Councilmember Brock pulled this item to ask staff if the city is taking into
account the proposed State Regional Housing Needs Assessment (RHNA)
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requirements in relation to the Domestic Water and Wastewater Master
Plans.
Motion by Councilmember Brock, seconded by Councilmember de la
Torre, to approve the staff recommendation. The motion was approved by
the following vote:
AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
MICHIGAN AVENUE
GREENWAY & 20TH
STREET PROJECT
5.C. Award Construction Contract No. 11296 (CCS) to Access
Pacific, Inc. for Michigan Avenue Greenway & 20th Street Project, was
presented.
Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP2474 to Access Pacific, Inc. for construction services
for the Michigan Avenue Greenway & 20th Street Project for the
Public Works Department;
2. Authorize the City Manager to negotiate and execute a contract with
Access Pacific, Inc. in an amount not to exceed $2,110,170
(including a 15% contingency);
3. Authorize the Director of Public Works to issue any necessary
change orders to complete additional work within contract authority;
and
4. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report.
Councilmember de la Torre pulled this item to ask staff questions regarding
the possibility of losing residential parking on 17th Street during the project;
what is the net loss of parking with this project; and, is staff aware of traffic
circulation problems.
Motion by Councilmember de la Torre, seconded by Councilmember Parra,
to approve the staff recommendation. The motion was approved by the
following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None.
710 BROADWAY 5.E. Adoption of a Resolution entitled “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SANTA MONICA ACCEPTING
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AND APPROVING THE FINAL PARCEL MAP FOR TRACT NO.
83099 TO SUBDIVIDE A PROPERTY AT 710 BROADWAY”, was
presented.
Recommended Action
Staff recommends that the City Council adopt the attached resolution
approving Final Tract Map No. 83099 for a 61-unit airspace subdivision
located at 710 Broadway to allow the commercial and residential
components of the project to be separately leased, financed, or sold, the
option of 280 residential units to be sold as condominiums, and to vacate a
portion of an alley (7th Court).
The Attorney stated for the record a minor correction on the resolution.
Councilmember Brock pulled this item to ask questions, including: when
did the plan of apartments, with some affordable housing, turn into 280
condominium units; and if Council approved 280 units to be sold as
condominiums.
Motion by Councilmember Brock, seconded by Councilmember de la
Torre, to postpone the item until the August 23rd council meeting.
Substitute motion by Councilmember Davis, seconded by Mayor
Himmelrich, to table the item until later in the evening for staff to be
available to answer Council’s questions. The substitute motion was
approved by the following vote:
AYES: Councilmembers Parra, Davis, Negrete,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: Councilmembers Brock, de la Torre
ABSENT: None
PUBLIC INPUT ON
REMAINING AGENDA
ITEMS:
Members of the public Denny Zane, William Handelsman, Michael Soloff,
Jon Katz, and, Sonya Sultan commented on Item 8.A.
Members of the public John Berry and Neil Gitnick commented on 10.A.
Member of the public Elliot Gordon commented on Item 11.A.
Members of the public Denny Zane, William Handelsman, Michael Soloff,
Arthur Jeon (time donated by John Alle), Jonah Breslau, Nora Bohn, Ericka
Lesley, Sonya Sultan, Giacomo Valentini, Denise McGranahan, and Austin
Humble commented on 11.B.
Member of the public Nicole Phillis commented on 11.C.
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Members of the public Denny Zane, William Handelsman, Michael Soloff,
Jon Katz, Ericka Lesley, Sonya Sultan, Nicole Phillis, Caroline Torosis,
Anastasia Foster, Wayne Bauer, Mathew Millen, Jay Johnson, Cristina
Navarro, Ellis Raskin, and, Phyllis Dudick commented on 11.D.
Members of the public Denise Barton and Olga Zurwaska (time donated by
David Morris) commented on Item 16.B.
Member of the public David Whatley commented on Item 16.C.
CONTINUED ITEMS:
BALLOT MEASURE
8.A. Certification of Qualified Initiative Petition Measure to
Establish Added Funding for Homelessness Prevention, Affordable
Housing, and Schools and Adoption of Resolution No. 11448 (CCS)
entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA SUBMITTING TO THE VOTERS AN INITIATIVE
MEASURE TO AMEND SANTA MONICA MUNICIPAL CODE
CHAPTER 6.96 AND ADD CHAPTER 4.90 TO PROVIDE A THIRD
TIER TRANSFER TAX RATE FOR PROPERTY TRANSFERS OF
$8,000,000 OR MORE WITH AN ELEVEN-MEMBER RESIDENT
OVERSIGHT COMMITTEE”, was presented.
Recommended Action
Staff recommends that the City Council:
1. Receive and file the attached Certification of Qualification
regarding an Initiative Measure to Establish Added Funding for
Homelessness Prevention, Affordable Housing, and Schools by
Amending Santa Monica Municipal Code Chapter 6.96 to provide a
Third Tier Transfer Tax Rate for Property Transfers of $8,000,000 or
more with an Eleven-Member Resident Oversight Committee;
2. Adopt the attached resolution requesting and directing the actions
necessary to place the measure on the November 8, 2022 General
Municipal ballot.
Questions asked and answered of staff included: with there not being a
threshold, does it mean that over time, more homes will qualify for this
dollar amount; is there a legal limit on what we can charge for a tax rate; is
it a legal requirement for the tax to be the sellers obligation; question of
viability, if this tax could cause an increase cost; as this tax is enacted, what
methodology would the Council have to change it, and would it change the
applicability; would this have to go back to the voters; would the
percentage increase for homeless programs increase; does any of this
funding go to what is being seen on the streets (direct services); what is the
main reason that tax avoidance could be an issue; are there any exemptions
in the measure; is it really possible that with this tax, some developers
might leave Santa Monica and take their projects somewhere else; is a
consumer price index a detriment to this measure; when considered the
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unevenness, was a carryover fund considered; when looking at Los
Angeles’ tax rate, did the report look at all of the underlying tax rates to
know for sure that Santa Monica would have the highest rate; if Malibu
succeeds, what happens to the dollars received, does it stay with Santa
Monica schools only; what is included in the concept of Oversight; is there
an audit function for this oversight committee; is it true that only Charter
cities can set transfer rates; why do most cities not take advantage of this
transfer tax; and, is there language in other cities that is not in our Charter
that could help us capture.
Motion by Councilmember Davis, seconded by Councilmember Negrete, to
adopt the staff recommendation. The motion was approved by the following
vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
Councilmember Brock agreed to write the Argument against for this
measure.
TABLED ITEM
710 BROADWAY
5.E. Adoption of Resolution No. 11447 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ACCEPTING AND APPROVING THE FINAL PARCEL MAP
FOR TRACT NO. 83099 TO SUBDIVIDE A PROPERTY AT 710
BROADWAY”, was reopened from earlier in the meeting.
Recommended Action
Staff recommends that the City Council adopt the attached resolution
approving Final Tract Map No. 83099 for a 61-unit airspace subdivision
located at 710 Broadway to allow the commercial and residential
components of the project to be separately leased, financed, or sold, the
option of 280 residential units to be sold as condominiums, and to vacate a
portion of an alley (7th Court).
Staff responded to questions previously asked of Council, included, but not
limited to: are all of the units affordable housing or condominiums;
shouldn’t the staff report reflect fully what is being considered, because
what staff is presenting is completely different from what is in the staff
report; and, why would a developer take advantage of this option to change
from rentals to more affordable condos to buy.
Motion by Councilmember Brock, seconded by Councilmember Davis, to
approve the recommendation.
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The motion was approved by the following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
ORDINANCES:
NON-ELECTRIC
PEDICABS
10.A. Introduction and First Reading of an Ordinance to Amend
SMMC Sections 3.12.010 and 3.12.600 to allow non-electric pedicabs
on Beach Bike-Path and recodify SMMC Section 3.12.380 prohibiting
vehicle driving and parking on sidewalks and parkways, was presented.
Recommended Action
Staff recommends that the City Council Introduce for First Reading an
Ordinance to do the following: (1) amend SMMC Section 3.12.010, Traffic
Regulations, to define “Beach Bike-Path” and “Beach Promenade”; (2)
amend Chapter 3.12.600 to permit pedicab operations on the Beach Bike-
Path; and (3) recodify Section 3.12.380 prohibiting vehicle driving and
parking on sidewalks and parkways.
Questions asked and answered of staff included: how are the providers
being distributed permits, and how many are going to be issued; how is the
number of permits being issued devised, and, can it be a dozen instead.
Motion by Councilmember Negrete, seconded by Councilmember Brock,
to introduce and hold first reading of 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, Negrete, Davis, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
OCEAN AVENUE
PROJECT
10.B. Second Reading and Adoption of Ordinance No. 2710 (CCS)
entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROVING THE DEVELOPMENT AGREEMENT
NO. 11297 (CCS) BETWEEN THE CITY OF SANTA MONICA, A
MUNICIPAL CORPORATION, AND BELLE VUE PLAZA, A
CALIFORNIA LIMITED PARTNERSHIP, AND OCEAN
AVENUE PARTNERS, LLC, A DELAWARE LIMITED LIABILITY
COMPANY (COLLECTIVELY, “THE DEVELOPER”), was presented.
Recommended Action
Staff recommends that City Council adopt the attached Ordinance.
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Motion by Councilmember Davis, seconded by Mayor Himmelrich, to adopt
the ordinance, reading by title only and waiving further reading thereof. The
motion was approved by the following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
STAFF
ADMINISTRATIVE
ITEMS:
BALLOT MEASURE
11.A. Adoption of Resolution No. 11449 (CC) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA SUBMITTING TO THE VOTERS A MEASURE TO AMEND
THE CITY CHARTER TO REMOVE SECTIONS 1011 AND 1012 AND
ALLOW THE CITY COUNCIL TO ESTABLISH AND DEFINE THE
POWERS AND DUTIES OF THE PERSONNEL
BOARD BY ORDINANCE”, was presented.
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution (Attachment A) placing a measure
on the November 8, 2022 ballot that would remove Sections 1011
and 1012 from the Santa Monica City Charter to allow the City
Council to adopt an ordinance to establish and define the powers
and duties of the Personnel Board in the Santa Monica Municipal
Code; and
2. If the resolution placing an amendment to remove Sections 1011
and 1012 from the City Charter on the November 8, 2022, ballot
(Attachment A) is approved, authorize City Council members to
file written arguments for or against the measure and direct the
City Attorney to prepare an impartial analysis.
Questions asked and answered of staff included: is there a statutory basis
for the concern that Personnel board members expressed that removing this
from the Charter will limit their powers and duties; would add wording
saying that the powers and duties would remain the same as listed in the
Charter, and can that language be changed in the resolution to help alleviate
their concerns; what extra rights does this body have as a Charter body, and
what rights do they have moving to the Municipal Code; and, is there any
reason to have the Council oversee this Chartered body.
Motion by Councilmember Brock, seconded by Mayor Himmelrich, to place
the measure on the ballot with an amendment to revert to the original
question to expand the residency requirement, but to leave the Personnel
Board in the City Charter.
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The motion was approved by the following vote:
AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
Mayor Pro Tem McCowan agreed to write the Argument in Favor of this
measure.
BALLOT MEASURE 11.B. Adoption of Resolution No. 11450 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA SUBMITTING TO THE VOTERS A MEASURE TO AMEND
CHAPTER 6.96 OF THE SANTA MONICA MUNICIPAL CODE TO
ESTABLISH A THIRD TIER TAX RATE OF TWENTY DOLLARS PER
THOUSAND DOLLARS OF CONSIDERATION FOR REAL
PROPERTY VALUE TRANSFERRED IN EXCESS OF EIGHT
MILLION DOLLARS, ACCOMPANIED BY AN ADVISORY
MEASURE ASKING WHETHER POTENTIALLY INCREASED
REVENUES FROM ESTABLISHING A THIRD TIER REAL
PROPERTY TRANSFER TAX SHOULD BE SPENT ON SERVICES TO
ADDRESS HOMELESSNESS, PROTECT SENIORS AND LOW-
INCOME RESIDENTS FROM HOUSING DISPLACEMENT,
BEHAVIORAL HEALTH SERVICES, PUBLIC SAFETY AND
EMERGENCY RESPONSE SERVICES, LIBRARY SERVICES, AFTER-
SCHOOL PROGRAMS, AND TRAFFIC SAFETY IMPROVEMENTS
AROUND PUBLIC SCHOOLS, AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2022, AND
AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN
ARGUMENTS FOR OR AGAINST THE MEASURES AND
DIRECTING THE CITY ATTORNEY TO PREPARE IMPARTIAL
ANALYSES OF THE MEASURES”, was presented.
Recommended Action
Staff recommends that the City Council:
1. Adopt a resolution to place a transfer tax measure and advisory
measure on the November 8, 2022, ballot (Attachment A), which
would:
a) Amend Chapter 6.96 of the Santa Monica Municipal Code to
establish an additional third tier transfer tax rate of $20 per
thousand dollars of consideration or property value
transferred, which would apply solely to the amount of
consideration or value transferred in excess of $8 million,
subject to certain exemptions, and be collected in addition to
existing transfer tax rates that apply to the entire transfer
amount; and
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b) Allow voters to express their preference that if the
Comprehensive Real Property Transfer Tax Measure is
adopted, should its additional revenue be used for: (a)
services to address homelessness, protect seniors and low-
income residents from housing displacement, and behavioral
health; (b) public safety and emergency response teams to
address safety issues on City streets and in parks; (c) the
reopening and staffing of public libraries; (d) after-school
programs for public school children; and (e) crossing guards
near public schools; and
c) Identify Council Members, if any, who wish to prepare
arguments for or against each measure; and
d) Direct the City Attorney to prepare an impartial analysis of
each measure.
Questions asked and answered of staff included: comparing measures, how
long is the sunset clause on this measure; since this measure does not have
an advisory committee, is there anything to stop the Council from creating
one; is there a sense that the 10-year sunset clause would put the city in a
volatile state, and is there any concern; if we had a 10-year sunset clause,
how would the city handle it to keep from going off the cliff; is there a way
to extend the sunset without going back to the voters; when figuring the $9
- $21 million, were the exemptions considered; if the Council wanted to
terminate this tax, they wouldn’t have to go back to the voter; the Council
could take away the sunset clause without going to the voter; is there some
time period that would be better than 10 years for a sunset clause; when
looking at transfer taxes in other jurisdictions, were there any specific uses
of those transfer taxes; how much of the GH and GSH funds went to
housing; if there was another city state of emergency, could these funds be
used to save the general fund again; and what would be the difference
between reinstating the first sale exemption versus keeping the exemption.
Considerable discussion ensued on topics including, but not limited to: this
is considered a bridge matter to help city services get past the results of the
pandemic, until we get back to regular revenues; comparison between the
two transfer taxes, and that they both deserve to be on the ballot for the
voters to decide; the sunset clause should be extended, 10-years is so short,
or require a supermajority of Council to be able to extend it, without having
to go back to the voters; if we are sincere, the first property sale exemption
should be reconsidered to reinsert it; need to be cautious about how much
to increase the tax; there is a political limit on how much parcel tax space
do we want to use on this one tax; put the question to the voters and let
them decide; concern that if this measure is increased too much, it will be
too similar to the citizen measure; provide emergency need for those most
in need who are losing their housing; willing to accept a 10-year sunset
clause, with a supermajority in favor or extending the sunset for 5-years,
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one time; increase $3 to $4; recommend 20 percent of the funds go to
homeless services.
Councilmember Negrete proposed an amendment to the recommendation to
adjust from $20 per thousand dollars to $30 per thousand dollars and direct
the difference will go 100 percent to affordable housing projects, and that
the sunset should be increase to 15 or 20 years instead of 10 years.
Motion by Councilmember Brock, to amend the measure by adding a 10-
year sunset clause, the city council could approve a 5-year extension, with a
Supermajority vote; make the amount $23 per thousand dollars; part of the
Advisory measure $7 per thousand of the money to provide housing
assistance and increase the POD program for seniors.
Councilmember Davis, seconded the motion, with amendments, at least 30
percent of the proceeds would go to programs to housing assistance and
address housing displacement; prior to the expiration of the sunset clause,
the Council can vote by a supermajority to extend the sunset by 5-years,
one time only; proposed $25 per thousand dollars instead of $23 per
thousand. The amendments were accepted as friendly by the maker.
Councilmember Davis, proposed a friendly amendment to reinstate the first
property sale exemption after construction. The amendment was not
accepted as friendly by the maker.
Councilmember de la Torre, proposed a friendly amendment on the
Advisory to add something that addresses the achievement gaps through
afterschool programs and youth centers. The motion was not considered
friendly by the maker.
The motion, with amendments was approved by the following vote:
AYES: Councilmembers de la Torre, Brock, Negrete, Davis, Parra,
Mayor Pro Tem McCowan
NOES: Mayor Himmelrich
ABSENT: None
Mayor Himmelrich voted no because she believes the Council is forgoing
an opportunity to make a really big difference in this city and in the lives of
those people who are overburdened in housing, and that we are turning our
backs on those in need. We continue to turn our backs on the connection
between homeless and supportive housing and permanent supportive
housing. Ultimately, this was an opportunity for the Council to support a
measure that would have done all those things, and instead we are forgoing
a housing measure that 10,000 people in this city have voted to move
forward in favor of a slush fund for the City Council to hang ornaments on
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its special little City Council tree.
Motion by Councilmember Davis, seconded by Mayor Pro Tem McCowan,
to incorporate into the ballot initiative to reinstate the exemption for the
first transfer after construction, as it was set forth at the July 12th meeting.
The motion did not pass by the following vote:
AYES: Councilmembers Davis, Brock, Mayor Pro Tem McCowan
NOES: Councilmembers Parra, Negrete, de la Torre,
Mayor Himmelrich
ABSENT: None
Councilmember Brock agreed to write the Argument in Favor of this
measure.
CONTINUE MEETING In accordance with council rules, the Mayor posed the question if Council
would like to continue past midnight and hear the remainder of the items.
The motion was unanimously approved by voice vote, with all members
present.
BALLOT MEASURE 11.C. Ballot measure for business license tax on the sale, distribution,
delivery, and consumption of cannabis, was presented.
Recommended Action
Council could either direct staff to develop a cannabis study program that
includes research to support the preparation of a comprehensive ordinance
governing nonmedicinal commercial cannabis activity, a community
outreach component, and a proposal to place a measure for a cannabis
business license tax on the November 2024 general election ballot or adopt
a resolution to place a cannabis business license tax measure on the
November 2022 general election ballot.
Questions asked and answered of staff included: do we know how many of
our residence buy or use cannabis, and where do they buy it; there’s
nothing from establishing regulations regarding cannabis, and then put the
tax on the ballot in 2024; what is the cost for administration for the tax;
and, what is the connection between taxation and a safe product.
Councilmember Brock, proposed alternative ballot wording: “Shall the
measure to establish a business tax on every licensed cannabis business
(including adult-use nonmedicinal cannabis retailers, distribution,
manufacturing, cultivation, laboratory testing, or any other licensed
cannabis business) and retailers of products containing psychoactive
cannabinoids, including cannabinoids derived from industrial hemp, up to
10% of gross receipts on cannabis and/or hemp-derived psychoactive
products sold in the City, which all together could generate an estimated
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$3–5 million annually until repealed, be adopted?
Motion by Councilmember Brock, seconded by Councilmember Negrete, to
adopt Resolution No. 11451 (CCS), as amended. The motion was approved
by the following vote:
AYES: Councilmembers Parra, Negrete, Brock, de la Torre,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: Councilmember Davis
ABSENT: None
Councilmember Davis voted no because adding another tax runs the risk of
harming the other taxes.
Councilmember de la Torre agreed to write the Argument in favor for this
measure.
RENT CONTROL
BALLOT MEASURE
11.D. Adoption of a Resolution entitled “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SANTA MONICA SUBMITTING
TO THE VOTERS A MEASURE TO AMEND ARTICLE XVIII OF THE
CITY CHARTER TO REVISE REQUIREMENTS FOR OWNERS TO
EVICT TENANTS FOR OWNER-OCCUPANCY, REVISE ELECTION
PROCEDURES, AND LOWER THE CAP ON THE ANNUAL
GENERAL ADJUSTMENT AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2022, AND
AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN
ARGUMENTS FOR OR AGAINST THE MEASURE AND DIRECTING
THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
OF THE MEASURE” and a Resolution entitled (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA SUBMITTING TO THE VOTERS A MEASURE TO
PROVIDE THE RENT CONTROL BOARD WITH AUTHORITY TO
DISALLOW OR, ALTERNATIVELY, MODIFY OTHERWISE-
ALLOWED ANNUAL GENERAL ADJUSTMENTS TO RENT
CEILINGS DURING A STATE OF EMERGENCY DECLARED BY
THE PRESIDENT OF THE UNITED STATES OR THE GOVERNOR,
OR UPON THE DECLARATION OF A LOCAL EMERGENCY BY THE
CITY COUNCIL OR DIRECTOR OF EMERGENCY SERVICES,
WHILE MAINTAINING THE LANDLORD’S ABILITY TO PETITION
FOR AN UPWARD RENT ADJUSTMENT, AT THE GENERAL
MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8,
2022, AND AUTHORIZING CITY COUNCILMEMBERS TO FILE
WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURE AND
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL
ANALYSIS OF THE MEASURE”, was presented.
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Recommended Actions
1. Per City Council direction on July 12, 2022, adopt the attached
resolution (Attachment A) placing a measure on the November 8,
2022, ballot that would amend Article XVIII of the City Charter
reduce the Annual General Adjustment from 6% to 3%, effective
January 1, 2023 to be placed on the November ballot; and
2. Per Council direction on July 12, 2022, adopt the attached resolution
(Attachment B) placing a measure on the November 8, 2022, ballot
that would amend Article XVIII of the City Charter to authorize the
Rent Control Board to freeze or modify otherwise-allowed annual
general adjustments to rent ceilings during a declared state of
emergency by the President of the United States, the Governor, or
upon a declaration of a local emergency by the City Council or
Director of Emergency Services, while maintaining the landlord’s
ability to petition for an upward rent adjustment; and
3. Authorize City Councilmembers to file written arguments for or
against and direct the City Attorney to prepare an impartial analysis
for each measure.
Questions asked and answered of staff included: clarification that March 1
renters would pay 0%, then in September it would increase to 3%; are there
additional funds available to those who demonstrate a need for assistance;
how many people are considered rent-burdened; what if the small landlords
are the ones who end up getting stuck receiving zero increase for the next
four years, this may be the thing that pushes them to sell and get out of the
rental market; how do we make sure those who need the relief, will receive
it; has Rent Control thought about having a Study session with Council,
and if so, what would that study session look like; and, what are the
unattended consequences of offering landlords zero increase.
Considerable discussion ensued on topics including, but not limited to:
bringing a new concept on Rent Control at the last minute, without any
public comment or public input is not the appropriate way to make laws;
we need to be responsible and just approve the rental cap; it’s irresponsible
to create a new method of rent control just on the fly, without any public
input from the stakeholder; and, drop the no increase from four-years to
one-year, with a 3 percent increase for everybody else.
Motion by Councilmember Negrete, seconded by Councilmember de la
Torre, to propose an amendment to place on the ballot instead of the
recommendation #1 with a proposed Tenant Income Inequality Relief Plan
to include the following key points:
• The annual general adjustment will be ZERO for units with rents
at or below the citywide median Maximum Allowable Rent (MAR)
for 2021
o MAR reported by the Santa Monica Rent Control Board for each of
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the four unit-size classifications.
• This methodology would ELIMINATE ALL INCREASES for
units with rents below the following:
o Zero-bedroom units with MAR’s at or below $1,528
o One-bedroom units with MAR’s at or below $1,995
o Two-bedroom units with MAR’s at or below $2,500
o Three-bedroom units with MAR’s at or below $2,791
• For controlled rental units above the MAR, the current Annual
General Adjustment methodology would remain in effect.
• This charter amendment will sunset four (4) years after the date of
enactment. Upon expiration, the annual general adjustment
methodology will revert to the current methodology.
• The TIIRP is an equity-based methodology that prioritizes
protection for those arguably most in need while continuing to
protect others based on the existing city charter
• This plan allows Santa Monica to take a national lead in addressing
the serious issue of growing inequality
• The City’s Rent Control methodology has failed to help mitigate the
impact of the growing inequality that has developed since rent
control was introduced in 1979.
• TIIRP relies on housing providers to supply financial resources in
the form of reduced increases and to administer the program
through their own rent increase submission to the Rent Control
Board
• TIIRP DOES NOT ADD either additional cost or administrative
overhead to the city
• Under the TIIRP formula, housing providers sacrifice ALL annual
increases for the bottom tier 50% of the city’s rental units
o 50% (13,741) of our controlled units will not be subject to an
annual rent increase
o These units have the lowest rent which is related to the longest
term residents least able to afford changes in costs
o Housing providers would net roughly 2/3rds of what a 3% increase
would generate under the current methodology and the same as
what a 2% increase would generate
• TIIRP protects roughly 4,156 (43%) more units/households than
the even the 9,585-household number that has been claimed as
rent burdened.
• Almost all of the top 50% of controlled units have been leased
since 2016 at market rates
o Units were leased under standard income qualification criteria of
3x monthly lease costs
o Cap of $140 equates to $4.60 per day which is not a significant
issue at these levels
• The Sunset provision is intended to provide Council and Rent Board
flexibility:
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o Provide a financial bridge to cross the currently evolving economic
uncertainty of the next several years.
o Provides a period of time to develop a thoughtful and robust and up
to date rent control policy that permanently address the inequality
trends in our community
Councilmember Brock proposed a friendly amendment to eliminate all
increases be moved to one year and that the ceiling increase of $140 be
dropped to $70.
Mayor Himmelrich made an amendment to roll back the general adjustment
which would be capped at 3% instead of 6% and put it on the ballot to
become active January 1st, then drop down to 0% in March, then in
September the base increase would be 3% thereby balancing out the
increase to 3% and provide assistance for those who can’t afford the
increase or are having a difficult time paying the increase.
Motion by Councilmember Davis, seconded by Councilmember Brock, to
continue this item to a Special meeting on Friday, August 5, 2022. The
motion was unanimously approved by voice vote, with all members present.
COUNCILMEMBER
DISCUSSION ITEMS:
LEAGUE OF
CALIFORNIA CITIES
ANNUAL CONFERENCE
AND BUSINESS
MEETING
16.A. Designation of voting delegate and alternate(s) for the League of
California Cities Annual Conference and Business Meeting, to be held
September 7 - 9, 2022, in Long Beach, California, was presented.
Appointed Councilmember Brock as the voting member and Councilmember
de la Torre as the alternate member.
CIVILITY CODE 16.B. Request of Mayor Himmelrich and Councilmembers Davis and
de la Torre that the City Council adopt and promote the attached
statement against hate and direct the City Manager and City Clerk to
incorporate its language into the City’s Code of Ethics and the City
Council’s Code of Civility for public meetings, was presented.
Motion by Mayor Himmelrich, seconded by Councilmember Negrete, to
adopt the staff recommendation, and make this a citywide PR effort. The
motion was approved by the following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSTAIN: Councilmember de la Torre
SANTA MONICA SISTER
CITIES
16.C. Request of Mayor Pro Tem McCowan that the City Council
allocate up to $3,500 of their Discretionary Funds to the Santa Monica
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Sister Cities Association in support of travel to Brighton, England for
the official signing of a Friendship City agreement with the City of
Santa Monica, was presented.
Motion by Councilmember de la Torre, seconded by Councilmember
Negrete, to adopt the staff recommendation. The motion was approved by
the following vote:
AYES: Councilmembers Parra, Davis, Negrete, Brock, de la Torre
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
CHARTER AMENDMENT 16.D. Request of Councilmembers de la Torre and Brock that the
Council consider placing the attached proposed charter amendment, to
encourage the payment of living wages, encourage the production of
housing that is consistent with the proportion of affordable housing
mandated by the Regional Housing Needs Assessment, and discourage
irresponsible overdevelopment, on the November 2022 ballot for
consideration by the voters, withdrawn at request of the proponents.
ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 4:10 a.m.
ATTEST: APPROVED:
Denise Anderson-Warren Sue Himmelrich
City Clerk Mayor
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