m20221213 1 December 13, 2022
CITY OF SANTA MONICA
CITY COUNCIL MINUTES
DECEMBER 13, 2022
A regular meeting of the Santa Monica City Council was called to order by Mayor Davis at 5:33 p.m., on
Tuesday, December 13, 2022, at City Council Chambers, 1685 Main Street, Santa Monica, CA.
Roll Call: Present: Mayor Gleam Davis
Mayor Pro Tem Lana Negrete
Councilmember Phil Brock
Councilmember Oscar de la Torre
Councilmember Christine Parra
Councilmember Caroline Torosis (arrived at 6:11 p.m.)
Councilmember Jesse Zwick
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 5:33 p.m., with all
members present except Councilmember Torosis. Councilmember Zwick
led the assemblage in the Pledge of Allegiance.
AGENDA
MANAGEMENT
Motion by Mayor Davis, seconded by Councilmember Brock, to suspend
the Council Rules for Item 12.A. and allow the Protest advocate 10 minutes
total to address the issues, which may be divided between the primary
statement and rebuttal, and 10 minutes for the proposed franchisee to speak.
The motion was unanimously approved by voice vote, with
Councilmember Torosis not present.
Motion by Mayor Davis, seconded by Mayor Pro Tem Negrete, to hear the
kiosk Item 12.A. after Item 8.A. The motion was unanimously approved
by voice vote, with Councilmember Torosis not present.
GENERAL PUBLIC
INPUT:
Members of the public Olga Zurawska, Lucian Tudor, Denise Barton,
Abraham Chapman, and Jonathan Foster 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 items.
Member of the public Denise Barton commented on special agenda items.
Member of the public Jerry Rubin commented on consent calendar items.
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PROCLAMATIONS/
COMMENDATIONS
4.A. Presentation of American Public Works Association’s B.E.S.T.
Award for the Sustainable Water Infrastructure Project, was presented.
CLOSED SESSIONS
Councilmember Torosis
arrived at 6:11 p.m.
Councilmember de la Torre
was excused at 7:00 p.m.
Councilmember de la Torre
returned at 8:38 p.m.
On order of the Mayor, the City Council recessed at 6:02 p.m., to consider
closed sessions and returned at 8:38 p.m., with all members present, to
report the following:
3.A. Conference with Labor Negotiator: Government Code Section
54957.6 -- Agency Designated Representatives: City Manager David
White and Chief People Officer Lori Gentles, Human Resources
Manager Robert Scalise, Alexander Volberding, Liebert Cassidy
Whitmore; Bargaining Unit: ATA-Administrative Team Associates.
The City Attorney advised this matter was heard with no reportable action
taken.
3.B. Conference with Legal Counsel – Existing Litigation –
Litigation has been initiated formally pursuant to Gov. Code Section
54956.9(d)(1): City of Santa Monica v. The Insurance Company of the
State of Pennsylvania, et al., LASC Case No. 21STCV36027
The City Attorney advised this matter was heard with no reportable action
taken.
3.C. Conference with Legal Counsel – Existing Litigation –
Litigation has been initiated formally pursuant to Gov. Code Section
54956.9(d)(1): John VMA Doe, et al. v. City of Santa Monica, et al.,
Case No. 22STCV30598; John TAU Doe, et al. v. Santa Monica PAL,
et al., Case No. 22STCV19401; John Doe 1-4 v. Does 1-50, Case No.
21STCV34537; John Doe 5 and John Doe 6 v. Does 1-50, Case No.
22STCV08765; John JH Doe v. Police Activities League, et al., Case
No. 21STCV24491; John Doe (D.C.) v. Santa Monica Police Activities
League, et al., Case No. 21STCV47551; John Doe (MU) v. Santa
Monica PAL, et al., Case No. 22STCV17022; John Doe #1, John Doe #2
and John Doe #3 v. Santa Monica PAL, et al., Case No. 22STCV03113;
John Doe 142 v. Doe 1, Doe 2, and Doe 3, Case No. 22STCV01268; Jose
Villaseñor v. City of Santa Monica, et al., Case No. 22STCV17835
The City Attorney advised this matter was heard with no reportable action
taken.
3.D. Conference with Legal Counsel – Existing Litigation –
Litigation has been initiated formally pursuant to Gov. Code Section
54956.9(d)(1): Jerry Vergara, Jr., et al. v. City of Santa Monica, et al.,
Case No. BC684705
The City Attorney advised this matter was heard with a Settlement
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Agreement in the amount $7 million, with the city funding $1 million. The
City Attorney reported that Settlement agreement No. 11341 (CSS) in the
amount of $7 million was approved unanimously by voice vote, with all
members present.
SPECIAL AGENDA
ITEMS:
4.B. City Manager Report, was presented.
REPORT ON COUNCIL
TRAVEL
Councilmembers Brock and Parra reported that they traveled to Kansas
City, MO to attend the National League of Cities conference where they
were able to network with other city officials where discussions took place
on homelessness, affordability, climate change, sustainability, and the
opioid epidemic.
REPORT ON MEETING
COMPENSATION
Pursuant to State law, City Clerk Denise Anderson-Warren announced that
Council will receive no compensation for meeting as the Redevelopment
Successor Agency.
CONSENT CALENDAR:
JOINT MEETING WITH
THE REDEVELOPMENT
SUCCESSOR AGENCY
There being a Consent Calendar for the Redevelopment Successor Agency,
the Mayor, with the consensus of the Councilmembers, convened to a joint
meeting with the Redevelopment Successor Agency at 8:49 p.m., and the
two Consent Calendars were heard concurrently, with all members present.
Councilmember Parra stated for the record that for Items 5.B., 5.L., and
5.N. that she is employed by the City of Culver City and that she has
checked with legal counsel and she has no conflict of interest on any of
these items.
All items were considered and approved in one motion unless removed by
an Agency/Councilmember for discussion.
At the request of Agency/Councilmember Parra, Items 5.D. and 5.F. were
removed from the Consent Calendar.
Motion by Chair/Mayor Pro Tem Negrete, seconded by
Agency/Councilmember Brock, to approve the Consent Calendar except for
Items 5.D. and 5.F., reading resolutions by title only and waiving further
reading thereof. The motion was approved by the following vote:
AYES: Agency/Councilmembers de la Torre, Torosis, Brock, Parra,
Zwick, Chair/Mayor Pro Tem Negrete, Chair/Mayor Davis
NOES: None
ABSENT: None
TELECONFERENCE
MEETINGS
5.A. Adoption of Resolution No. 11485 (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
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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.
GROUNDWATER
SUSTAINABILITY PLAN
5.B. Award Request for Proposal and Enter into Professional
Services Agreement No. 11342 (CCS) with Dudek for the Santa Monica
Groundwater Sustainability Plan Implementation, was approved.
Recommended Actions
Staff recommends that the City Council:
1. Adopt a finding that the procurement of a consultant to assist the
City in implementing the Groundwater Sustainability Plan is not a
project within the meaning of the California Environmental Quality
Act (CEQA); or, alternatively, is subject to the commonsense
exemption under CEQA Guideline 15061(b)(3).
2. Award RFP #331 for the Santa Monica Groundwater Sustainability
Plan Implementation to Dudek, a California-based company, for
compliance with the California State Sustainable Groundwater
Management Act (Act) for the Santa Monica Basin Groundwater
Sustainability Agency where the City of Santa Monica is the lead
agency.
3. Authorize the City Manager to negotiate and execute Agreement
No. 11342 (CCS) with Dudek, in an amount not to exceed
$1,256,200 (including a $114,200 contingency) for five years with
future year funding contingent on Council budget approval.
4. Authorize the City Manager or designee to negotiate cost-sharing
Agreement No. 11343 (CCS) with the City of Los Angeles
Department of Water and Power (LADWP) and other member
agencies (City of Beverly Hills, City of Culver City, and Los
Angeles County), if applicable, for the $1,256,200 contract. The
LADWP may contribute up to 20% of the total project cost as one
of five member agencies in the Santa Monica Basin Groundwater
Sustainability Agency.
AIRPORT 5.C. Award Request for Proposal to Aeroplex Group Partners, LLC,
for Airport Self-Service Fuel Operator, was approved.
Recommended Action
Staff recommends that the City Council:
1. Award RFP #335 to Aeroplex Group Partners, LLC, a California-
based company for services as a commercial self-service fuel
operator to manage the City of Santa Monica's self-serve fuel station
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for retail aviation fueling services at Santa Monica Airport for the
Public Works Department;
2. Authorize the City Manager to negotiate and execute Contract No.
11344 (CCS) with Aeroplex Group Partners, LLC, in an amount not
to exceed $1,267,200 for three years with two additional one-year
renewal options at the City's discretion for $422,400 for the first
renewal year and $422,400 for the second renewal year for a total
amount not to exceed $2,112,000 (including a 10% contingency)
over a five-year period with future year funding contingent on
Council budget approval; and
3. Adopt a finding of Categorical Exemption pursuant to Section 15301
(Existing Facilities), of the California Environmental Quality Act
(CEQA) Guidelines.
PIER IMPROVEMENTS
PROJECT
5.E. Approval of First modification to the construction contract
11129 (CCS) with West Valley Investment Group, Inc. for additional
construction services for the Pier Improvements Project, was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt the finding that the scope of work contemplated in the first
modification to the construction contract 11129 (CCS) is
categorically exempt as a Class 2 exemption pursuant to Section
15302 of the CEQA Guidelines; and,
2. Authorize the City Manager to negotiate and execute a first
modification to the construction contract 11129 (CCS) in the amount
of $160,000.00 to West Valley Investment Group, Inc. for additional
construction services for the Pier Improvements Project. This will
result in an amended agreement with a new total amount not to
exceed $5,744,127.00.
BANKING SERVICES 5.G. Approval of First Modification to Banking Services Agreement
with MUFG Union Bank, N.A. to provide banking services, was
approved.
Recommended Action
Staff recommends that the City Council authorize the City Manager to
negotiate and execute a first modification to agreement #10554 (CCS) with
MUFG Union Bank, N.A., a California-based company, to extend the term
for an additional two years for banking services. This will result in a
seven-year amended agreement with no change to the estimated contract
value of $300,000 with future year funding contingent on Council budget
approval.
HOUSING 5.H. Annual Report on Low-Mod Housing Income Asset Fund, was
approved.
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Recommended Action
Staff recommends that the Redevelopment Successor Agency:
1. Receive the Annual Report on the Low- and Moderate-Income
Housing Asset Fund for Fiscal Year 2021-22 and authorize the City
Manager to post the report on the City's website by December 31,
2022; and
2. Direct the City Manager to present the independent audit of the Low-
and Moderate-Income Housing Asset Fund to the Council upon
completion of the independent audit of the
City’s Annual Comprehensive Financial Report (ACFR) and
authorize the City Manager to post the results of the audit on the
City's website after presentation to City Council.
HEAL THE BAY
AQUARIUM
5.I. Approval of Amended and Restated Lease No. 11345 (CCS) for
Heal the Bay Aquarium at 1600 Ocean Front Walk and Short-term
License for a Heal the Bay Gift Shop at 322 Santa Monica Pier, was
approved.
Recommended Action
Staff recommends that the City Council:
1. Make a determination that the actions to execute an Amended and
Restated Lease and License and waiver of certain Pier Leasing
Guidelines as set forth in recommended actions #2 and #3 are
exempt under CEQA guideline 15061(b)(3) and 15302.
2. Authorize the City Manager to negotiate and execute an Amended
and Restated Lease and short-term License with Heal the Bay
(Tenant) doing business as Heal the Bay Aquarium to incorporate
provisions negotiated by the parties; and
3. Waive the Pier Leasing Guidelines competitive procurement
requirement in granting the Lease and License.
FUELING STATION 5.J. Award Bid for Maintenance and Repair of SMDOT's
Liquefied/Compressed Natural Gas (L/CNG) Fueling Station, was
approved.
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4429 to Clean Energy for maintenance and repair
services to Santa Monica Department of Transportation’s natural gas
fueling facility;
2. Authorize the City Manager to negotiate and execute Agreement No.
11346 (CCS) with Clean Energy, in an amount not to exceed
$1,344,710 including a $122,246 contingency and a 4% cost
escalator in years two through five, over a five-year period with
future year funding contingent on Council budget approval;
3. Adopt a finding of Categorical Exemption pursuant to Section 15301
(Existing Facilities), of the California Environmental Quality Act
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(CEQA) Guidelines. The bid award for the maintenance and repair
of SMDOT’s fueling station would not result in any modifications to
existing liquified or compressed natural gas facilities.
SQL REPORT
DEVELOPMENT
5.K. Approval of Agreement Modification to SA Technologies (SQL
Report Development Services), was approved.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to
Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second
modification to Agreement #11081 in an amount not to exceed
$65,000 with SA Technologies, Inc., (SAT), a California-based
company, for services related to SQL report development. This will
result in a 30-month amended agreement with a new total amount
not to exceed $255,000, with future year funding contingent on
Council budget approval.
GROUNDWATER
SUBBASIN
5.L. Adoption of Resolution No. 11486 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AUTHORIZING THE CITY MANAGER TO NEGOTIATE
AND ENTER INTO A CALIFORNIA STATE DEPARTMENT OF
WATER RESOURCES SUSTAINABLE
GROUNDWATER MANAGEMENT GRANT PROGRAM
AGREEMENT FOR THE SANTA MONICA GROUNDWATER
SUBBASIN RECHARGE AND MONITORING PROJECT”, was adopted.
Recommended Action
Staff recommends that the City Council:
1. Adopt the finding that the proposed five monitoring wells in the
Santa Monica Basin are exempt from CEQA pursuant to Section
15303 (Section 15303 (New Construction or Conversion of Small
Structures), Section 15304 (Class 4 – Minor Alterations to Land),
and Section 15306 (information Collection) of the CEQA
Guidelines.
2. Adopt the attached resolution authorizing the application for grant
funds in the amount of up to $20,000,000 from the California State
Department of Water Resources Sustainable Groundwater
Management (SGM) Grant Program for the Santa Monica
Groundwater Subbasin Recharge and Monitoring Project in the
Public Works Department.
3. Authorize the City Manager to execute all necessary documents to
apply for the grant, accept the grant, if awarded, and accept all grant
renewals, if awarded.
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POLICE DEPARTMENT
GRANT
5.M. Adoption of Resolution No. 11487 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AUTHORIZING THE ACCEPTANCE OF A GRANT
AWARD IN THE AMOUNT OF $44,000 FROM THE STATE OF
CALIFORNIA GRANT ASSISTANCE PROGRAM FOR THE
ALCOHOLIC POLICING PARTERNSHIP PROGRAM”, was approved
and adopted.
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the acceptance of a grant
awarded in the amount of $44,000 from the California Department
of Alcoholic Beverage Control (ABC) for the 2022-23 ABC-OTS
Grant Program in the Police Department.
2. Authorize the City Manager to execute all necessary documents to
accept the grant and all grant renewals.
3. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report.
FIRE DEPARTMENT
GRANT
5.N. Authorization to Accept the 2021 State Homeland Security
Grant, was approved.
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to accept a grant awarded in the amount
of $185,000 from the Federal Emergency Management Agency for the
2021 State Homeland Security Grant Program in the Fire Department,
and to accept all grant renewals;
2. Authorize the City Manager to execute all necessary documents to
accept the grant, all grant renewals, and modifications. Authorize
budget changes as outlined in the Financial Impacts & Budget
Actions section of this report.
FIRE DEPARTMENT 5.O. Approval of Fourth Modification to Agreement with Kovatch
Mobile Equipment Corporation to Purchase One Fire Engine, was
approved.
Recommended Action
Staff recommends that the City Council authorize the City Manager to
negotiate and execute a fourth modification to agreement #10409 in the
amount of $405,227 with Kovatch Mobile Equipment (KME) Corporation
for the purchase of a fire engine for the Fire Department. This will result in
a seven-year amended agreement with a new total amount not to exceed
$6,771,740 with future year funding contingent on Council budget
approval.
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TRANSIENT
OCCUPANCY TAX
RATES
5.P. Adoption of Resolution No. 11488 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ESTABLISHING MARCH 1, 2023 AS THE
IMPLEMENTATION DATE OF THE TRANSIENT OCCUPANCY TAX
RATES IN MEASURE CS”, was adopted.
Recommended Action
Staff recommends that the City Council adopt a resolution setting the
implementation date for Measure CS (increasing the City’s Transient
Occupancy Tax rate by 1 percentage point for hotels and by 3 percentage
points for home-shares) as March 1, 2023.
JOINT MEETING WITH
THE REDEVELOPMENT
SUCCESSOR AGENCY
RECOGNIZED
OBLIGATION PAYMENT
SCHEDULE
5.Q. Adoption of Resolution Nos. 41 (SA) and 42 (SA) Approving the
Annual Recognized Obligation Payment Schedule (ROPS), was
adopted.
Recommended Action
Staff recommends that the Redevelopment Successor Agency:
1. Adopt a finding that the adoption of a recognized obligation
payment schedule and administrative budget is not a project within
the meaning of the California Environmental Quality Act (CEQA);
or, alternatively, is subject to the commonsense exemption under
CEQA Guideline 15061(b)(3).
2. Adopt resolutions approving the Agency’s recognized obligation
payment schedule and administrative budget for July 1, 2023
through June 30, 2024.
PUBLIC SAFETY
REFORM AND
OVERSIGHT
COMMISSION
5.R. Adoption of Resolution No. 11489 (CCS) entitled “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA REQUIRING CERTAIN MEMBERS OF THE PUBLIC
SAFETY REFORM AND OVERSIGHT COMMISSION TO COMPLETE
REQUIRED TRAINING BY FEBRUARY 1, 2023, SETTING FORTH
THAT THE CITY COUNCIL INTENDS TO SUSPEND OR REMOVE
ANY COMMISSIONER WHO FAILS TO COMPLETE THE TRAINING
BY FEBRUARY 1, 2023, AND DIRECTING THE CITY MANAGER TO
PROVIDE THE COMMISSIONERS WITH A REASONABLE
OPPORTUNITY TO FULFILL ANY REMAINING TRAINING
REQUIREMENTS”, was adopted.
Recommended Action
Staff recommends that the City Council adopt the attached Resolution
requiring completion of training by the Public Safety Reform Oversight
Commission members.
MINUTES 5.S. Minutes of City Council - Regular Meeting - September 27,
2022, were approved.
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MINUTES 5.T. Minutes of City Council - Special Meeting - November 29, 2022,
were approved.
MINUTES 5.U. Minutes of City Council - Special Meeting – December 6, 2022,
were approved.
ADJOURNMENT OF
JOINT MEETING
On order of the Chair/Mayor, the joint meeting with the Redevelopment
Successor Agency was adjourned at 9:04 p.m., and the regular meeting of
the City Council was reconvened, with all members present.
PARK CONDITION
ASSESSMENT PROJECT
5.D. Award RFP #SP2672 to Bureau Veritas Technical Assessments
LLC for Professional Services for the Park Condition Assessment
Project, was presented.
Recommended Action
Staff recommends that the City Council:
1. Award RFP #SP2672 to Bureau Veritas Technical Assessments
LLC for preparation of a park condition assessment for the Public
Works Department;
2. Authorize the City Manager to negotiate and execute professional
services Agreement No. 11347 (CCS) with Bureau Veritas
Technical Assessments LLC in an amount not to exceed $168,000
(including a 10% contingency); and
3. Adopt a finding of no possibility of significant effect pursuant to
Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines.
This item was pulled by Councilmember Parra.
Motion by Councilmember Parra, seconded by Councilmember Zwick, to
approve the recommended action. The motion was approved by the
following vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Parra, Zwick,
Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: None
DATA CENTER 5.F. Award Request for Proposal to Impex Technologies, Inc. for
Modernization of the City's Data Center, was presented.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Exemption pursuant to 15061(b)(3) (Common
Sense Exemption) of the California Environmental Quality Act
(CEQA) Guidelines.
2. Award RFP #316 to Impex Technologies, Inc, a California-based
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corporation, for Hyperconverged Infrastructure (HCI) and Cloud-
hosted Disaster Recovery solution to provide on-premises Nutanix
server equipment, installation, and integration services to replace the
existing Hewlett Packard Enterprise servers and storage systems; and
3. Authorize the City Manager to negotiate and execute Agreement No.
11348 (CCS) with Impex Technologies, Inc., in an amount of
$933,273 for three (3) years, with two additional one-year renewal
options of $311,091 per year for a total amount not to exceed
$1,555,455. (including a 10% contingency), with future year funding
contingent on Council budget approval.
Pulled by Councilmember Parra to ask questions of staff.
Questions asked and answered of staff included: what was the agreement
amount with the previous vendor, and was that a one-year agreement, and
did it include maintenance; in the agreement being proposed, is
maintenance included; did the previous system include a cloud host; is this
new system the latest and best available out there; and, will this solution
reduce the recovery process time.
Motion by Councilmember Brock, seconded by Councilmember Parra, to
approve the recommendation. The motion was approved by the following
vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Parra, Zwick,
Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: None
PUBLIC INPUT ON
REMAINING AGENDA
ITEMS:
Member of the public Denise McGranahan commented on Item 8.A.
Member of the public Denise Barton commented on Item 11.A.
Members of the public Michelle Gray, Denise Barton, Natalya Zernitskaya
commented on Item 11.B.
CONTINUED ITEMS:
HOUSING
8.A. Request of Councilmembers Parra, Brock and de la Torre to
direct the City Manager to evaluate the impacts and feasibility of
changing the Santa Monica Housing Authority Payment Standard
basis to Small Area Fair Market Rate and increasing select zip
code/unit size categories to 120% SAFMR to mitigate negative impacts
as recommended by the Housing Commission by mid-December, was
presented.
Question asked and answered of staff included, if more money is given,
will that reduce the number of vouchers given.
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Motion by Councilmember Brock, seconded by Mayor Pro Tem Negrete, to
adopt the staff recommendation. The motion was unanimously approved by
voice vote, with all member present.
PUBLIC HEARINGS:
KIOSK PROGRAM
12.A. Public Hearing and Introduction for First Reading of an
Ordinance to Award a Franchise Agreement for RFP 300: Digital
Wayfinding and Out-of-Home Advertising Kiosk Program, was
presented.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Sections 15303
(New Construction or Conversion of Small Structures) and 15311
(Accessory Structures) of the California Environmental Quality Act
(CEQA) Guidelines in accordance with the Environmental Review
section of this report;
2. Hold a public hearing, receive public comment, and hear protests, if
any, for the award of RFP 300: Digital Wayfinding and Out-of-
Home Advertising Kiosk Program;
3. Introduce for first reading the attached ordinance to award a
franchise to BIG Outdoor for the installation, operation, and
maintenance of a digital wayfinding and out-of-home advertising
kiosk network for a 20-year term, per the terms and conditions stated
in the ordinance (Attachment A);
4. Authorize the City Manager to negotiate and execute franchise
Agreement No. 11349 (CCS) with BIG Outdoor for a total of 20
years, per the terms and conditions stated in the ordinance; and
5. Authorize budget changes as outlined in the Financial Impacts &
Budget Actions section of this report in the event that the franchise is
awarded.
The City Attorney read into the record the following statement:
“The attorneys in our office have read the many emails from IKE and have
reviewed the protest package they submitted.
The many accusations and complaints about the process lack factual
support and do not accurately reflect the law and the RFP itself. Some of
the accusations may even amount to defamation.
The City has followed the process set forth in the RFP. In fact, it was IKE
who attempted to go outside the process to supplement its offer following
the solicitation and submittals of best and final offers after seeing the offer
of Big Outdoor.
This RFP process does allow for some flexibility and judgment in the
City’s determination of responsiveness and qualifications. That flexibility
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and judgment have been appropriately exercised. Also, some of the
challenges asserted fail to recognize and understand what the RFP actually
states, for example, demonstrating the proposer will manage the various
aspects of the project, not necessarily the proposer performing every
function directly.
The intellectual property issues raised have been addressed by counsel for
Big Outdoor, but on its face it appears the challenges lack merit, as IKE
claims rights to content that is neither novel or originated by them, but is
somewhat common and obvious. Also, there have been multiple variations
proposed, but IKE chose to single out one, understanding that may share
little in common with the final designs, which are yet to be agreed upon.
Nonetheless, it is Big Outdoor’s obligation to perform if awarded the
franchise, and they have represented that they can and will.
We believe the City’s process and determinations are legally defensible.
Nonetheless, your legal options tonight are the following:
1. Continue the matter, before or after hearing the protest and public
comment.
2. Approve the Staff recommendation as set forth in the Agenda and
their report, approving the First Reading of the ordinance; it would
then return for final adoption on January 10.
3. Reject the Staff recommendation, and/or uphold the protest, with
direction to return with a Resolution of Intention to award to IKE.
4. Reject the Staff recommendation, and/or uphold the protest, with
direction to terminate this process and initiate a new RFP.”
Victor de la Cruz and Jibran Shermohammed presented on behalf of the
protest advocate.
Andrew Kugler and Brad Berkley presented on behalf of the proposed
franchisee.
Members of the public Jerry Rubin, Natalya Zernitskaya, Aaron Wexler,
Dhun May, Philip Recht, Zachary Gaidzik, and Emory Cunningham, spoke
to the recommended action.
Questions asked and answered of staff included: what are the liabilities the
city could face if we decided to go with IKE; do we have any legal risk by
rejecting both applicants; if we rejected both bids today, how quickly and
efficiently could we put out a new Request for Proposals (RFP), with
expanded terms; if we go back through this process again, could we bring
this back by April; by rejecting both proposals, are we exposing ourselves
to litigation from Big Outdoors; if we go back out, won’t we still have to do
a process that is as in-depth as this current process; even if we were able to
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get out the RFP in a timely manner, how long will the rest of the evaluation
process take; what advantages have we gained during this time that would
allow an expedited process if we had to go back out again; do we have full
confidence that Big Outdoors can deliver on the financials they set forth; if
we were to move forward today with Big Outdoor, how soon will the first
deposit be made into the general fund; what were our consultant cost during
this process; were the subcontractor’s financials looked at during this
process; is the amount of space being used for community content
adjustable after the contract is signed; is the unsold time negotiable to be
given back to small businesses; are we already working with the Coastal
commission to let them know that this is coming down the pike; is it true
that the minimum guarantee does not happen until the first 25 are installed;
how was the decision made for the 16 to 20 week timeline to create the
kiosk; when vetting the numbers, how can it be determined the revenues are
comparable when it has been said that the ads will be different for
municipal governments; how did the scoring process change so drastically
between the first and second rounds; address the issue about the superlative
report that was out in the community; and, if we continue with this process,
and if IKE decides to move forward with a lawsuit, will that keep us from
moving forward with BIG Outdoors.
Considerable discussion ensued on topics including, but not limited to:
because we’ve gone through such a strenuous process, we should just move
forward because it doesn’t seem like it would be beneficial to go back out
and do another RFP process; want to make sure what is on our streets are
beneficial to residents, kiosk will benefit everyone and will fit what Santa
Monica stands for; prefer to do another RFP process; does not want to get
caught up in litigation; wants an experienced operator that already has
kiosk in other cities on the streets; that the kiosk benefit residents, small
businesses, visitors; what is being proposed is the same offer that the
winning proposal has submitted, and now that has become the baseline for
a new RFP; it would be a bad approach to not go with the staff’s
recommendation, and instead start the process over again; concerned about
the city’s reputation if the only reason for going back out is because the
company that is preferred by some didn’t get selected; and, we don’t know
that if we go back out to do another RFP, we won’t get the same result or
even the best result.
Motion by Councilmember Brock, seconded by Councilmember Torosis, to
vacate the current award to, and reissue a new RFP with a $4 million signing
bonus at a minimum, look for an experience vendor, with 50% revenue after
the installation of the first kiosk.
Councilmember Zwick proposed a friendly amendment to move forward
with Big Outdoor, but with a $4 million Minimum Annual Guarantee
(MAG). The motion was considered friendly by the maker and seconder of
the motion.
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Substitute motion by Councilmember de la Torre, seconded by Mayor Pro
Tem Negrete, to approve the staff recommendation.
The substitute motion, to adopt the staff recommendation, was approved by
the following vote:
AYES: Councilmembers de la Torre, Parra, Zwick,
Mayor Pro Tem Negrete, Mayor Davis
NOES: Councilmembers Torosis, Brock
ABSENT: None
CONTINUE MEETING
Councilmember Brock was
excused at 11:43 p.m.
Motion by Councilmember Torosis, seconded by Mayor Davis, to continue
the Council meeting past 11 pm, in accordance with the Council Rules.
The motion was unanimously approved by voice vote, with
Councilmember Brock absent.
ORDINANCES:
LOBBYISTS
Councilmember Brock
returned at 11:47 p.m.
10.A. Second Reading and Adoption of an Ordinance entitled “AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AMENDING SANTA MONICA MUNICIPAL CODE
SECTION 4.85.010, DEFINITIONS, AND ADDING SECTION 4.85.015
TO PROHIBIT ANY INDIVIDUAL FROM SERVING OR
CONTINUING TO SERVE ON A CITY BOARD, COMMISSION, TASK
FORCE, OR ADVISORY BOARD IF THAT INDIVIDUAL HAS
ENGAGED IN LOBBYING ACTIVITIES IN THE CITY OF SANTA
MONICA IN THE TWO YEARS PRIOR TO APPOINTMENT”, was
presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Considerable discussion ensued on the following, including, but not limited
to: concerns that this is overly broad, and is going to affect current members
who are serving on boards and commissions; advocating for a one year
prohibition instead of two years, which is sufficient amount of time; and that
this should only apply to members going forward, not backwards.
Motion by Councilmember de la Torre, seconded by Councilmember
Torosis, to reintroduce the ordinance with an amendment to the ordinance
changing the two-year prohibition to one-year.
Substitute motion by Mayor Pro Tem Negrete, seconded by Councilmember
Brock, to adopt the original ordinance, reading by title only and waiving
further reading thereof.
Councilmember Zwick, proposed a friendly amendment to have whatever is
adopted to not have it apply to anyone who is currently serving on a board
or commission. It would only apply going forward with future appointments.
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The motion was considered friendly by the maker and the seconder.
The motion to reintroduce the ordinance for first reading, with the
amendment was approved by the following vote:
AYES: Councilmembers de la Torre, Torosis, Brock, Parra, Zwick
Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: None
BUILDING PERMITS 10.B. Second Reading and Adoption of Ordinance No. 2730 (CCS)
entitled “AN ORDINANCE OF THE SANTA MONICA CITY COUNCIL
AMENDING MUNICIPAL CODE SECTION 8.08.060 TO EXTEND
THE EXPIRATION DATE OF BUILDING PERMIT APPLICATIONS
FOR PROJECTS REQUIRING A COASTAL DEVELOPMENT
PERMIT”, was presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Motion by Mayor Pro Tem Negrete, seconded by Councilmember Torosis,
to adopt the ordinance, reading by title only and waiving further reading
thereof. The motion was approved by the following vote:
AYES: Councilmembers Zwick, Parra, Brock, Torosis, de la Torre,
Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: None
REMOTE-CONTROLLED
PERSONAL DELIVERY
DEVICES
10.C. Second Reading and Adoption of Ordinance No. 2731 (CCS)
entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL
SECTION 3.12.1055 TO AUTHORIZE THE DEPLOYMENT AND
OPERATION OF REMOTELY CONTROLLED PERSONAL
DELIVERY VEHICLES AND DEVICES AND PROHIBIT THE
OPERATION OF AUTONOMOUS PERSONAL DELIVERY VEHICLES
AND DEVICES”, was presented.
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Motion by Councilmember Torosis, seconded by Mayor Pro Tem Negrete,
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, Torosis, Brock, Parra, Zwick
Mayor Pro Tem Negrete, Mayor Davis
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NOES: None
ABSENT: None
AGENDA
MANAGEMENT
Motion by Councilmember Torosis, seconded by Councilmember Parra, to
continue Items 11.A. and 11.B., to the January 10, 2023, meeting. The
motion was unanimously approved by voice vote, with all members
present.
AFFORDABLE HOUSING 10.D. Introduction and Adoption of Emergency Interim Zoning
Ordinance No. 2732 (CCS) entitled “AN EMERGENCY INTERIM
ZONING ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA TO UPDATE DENSITY BONUS
REQUIREMENTS FOR 100% AFFORDABLE HOUSING
DEVELOPMENTS”, was presented.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that no subsequent environmental review is
required pursuant to California Environmental Quality Act (CEQA)
Guidelines § 15162 based on a determination that the proposed
project was analyzed as part of the 2021-2029 6th Cycle Housing
Element Environmental Impact Report (EIR) [SCH No.
20212269242021] that was certified by Council on October 12,
2021 with an Addendum to the EIR approved on October 11, 2022.
2. Introduce and adopt an emergency interim zoning ordinance to
allow 100% affordable housing projects that receive unlimited
density and up to three stories or 33 feet in additional height under
State Density Bonus Law to request additional waivers or
reductions of development standards.
Questions asked and answered of staff including: why is this ordinance
only for 60 days; does this cause an elimination of Open space for tenants;
has there been any impact market research done; could the Pico
neighborhood be carved out of this ordinance for now; would these waivers
only apply to 100% affordable housing; is the reason to bring this forward
to bring our code in line with the state’s density code; we do need to rezone
in order to be in compliance with our RHNA numbers; are we committing
every effort to make sure we are doing everything we can to meet our
housing requirements, and making sure that the same amenities are being
offered for affordable housing that is offered to market housing; and, are
there certain projects that could be in jeopardy if this interim ordinance
isn’t passed tonight.
Considerable discussion ensued on topics included, but not limited to:
when considering 100% affordable housing, more consideration should be
given to placing housing all over the city, not saturating just two zip codes;
should look at open space, community gardens and what should be
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considered as part of providing housing; and, this will give staff some time
to look at the quality of life issues that exist in the Pico neighborhood.
Motion by Councilmember de la Torre, seconded by Councilmember Parra,
to approve the recommendation and introduce and adopt at first reading of
the ordinance reading by title only and waiving further reading thereof,
with the amendment to carve out the Pico neighborhood.
The Assistant City Attorney read the amendment into the record.
The motion, as amended was approved by the following vote:
AYES: Councilmember Parra, Brock, de la Torre, Torosis,
Mayor Pro Tem Negrete, Mayor Davis
NOES: Councilmembers Zwick
ABSENT: None
STAFF
ADMINISTRATIVE
ITEMS:
AUDIT SUBCOMMITTEE
11.A. Adoption of a Resolution entitled “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING
AND RESTATING AUDIT SUBCOMMITTEE RULES OF CONDUCT
TO CLARIFY THE TIMING OF THE ELECTION OF THE AUDIT
SUBCOMMITTEE CHAIR AND VICE-CHAIR”, was continued to
January 10, 2023.
Recommended Action
Staff recommends that the City Council adopt the attached Resolution of
the City Council of the City of Santa Monica Amending and Restating
Audit Subcommittee Rules of Conduct to Clarify the Timing of the
Election of the Audit Subcommittee Chair and Vice-Chair (Attachment A).
COUNCIL RULES 11.B. Adoption of a Resolution entitled “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING
THE RULES OF ORDER AND PROCEDURE FOR THE CONDUCT OF
CITY COUNCIL MEETINGS AND REPEALING RESOLUTION
NUMBER 11427 (CCS)”, was continued to January 10, 2023.
Recommended Action
Staff recommends that the City Council:
1. Provide direction to staff to either continue the public input pilot as
is, return to the previous method for public input; or adopt a new
method based on modifications from the aforementioned options;
and,
2. Adopt the attached proposed resolution amending the City
Council’s Rules of Order and Procedure.
AGENDA
MANAGEMENT
Motion by Mayor Davis, seconded by Councilmember Brock, to give
direction to staff to continue with the Public Input pilot until the January
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10th meeting. The motion was unanimously approved by voice vote, with
all members present.
COUNCILMEMBER
DISCUSSION ITEMS:
AUDIT SUBCOMMITTEE
16.A. Appointment to Audit Subcommittee for unscheduled vacancy
of Councilmember seat for term ending 6/30/2023, was presented.
Mayor Davis volunteered to serve on the Audit Subcommittee. There being
no other nominations, Mayor Davis was appointed to the Audit
Subcommittee for a term ending June 30, 2023 unanimously by voice vote,
with all members present.
WESTSIDE CITIES
COUNCIL OF
GOVERNMENTS
16.B. Request of Mayor Davis to appoint a Councilmember as a
Governing Board Representative to the Westside Cities Council of
Governments (COG) and designate an Alternate Governing Board
Representative. The Joint Powers Authority and By-laws require each
City Council to designate one of its Councilmembers as a Governing
Board Representative and one Councilmember as an Alternate
Governing Board Representative, was presented.
The Mayor opened the floor to nominations.
Mayor Pro Tem Negrete nominated Councilmember Brock serve as the
representative, with herself (Negrete) as the alternate. Option 1
Councilmember Zwick nominated Councilmember de la Torre as the
representative, with himself (Zwick) as the alternate. Option 2
Councilmember Parra nominated Councilmember Brock for the
representative and Councilmember de la Torre as the alternate. Option 3
There was no appointment after the first vote based on the following:
Option 1 (Brock, Negrete): Brock, Negrete, Davis
Option 2 (de la Torre, Zwick): Zwick, Torosis, de la Torre
Option 3 (Brock, de la Torre): Parra
Council eliminated the third option with only one vote.
Councilmember de la Torre was selected as the Representative and
Councilmember Zwick as the Alternate to serve the Governing Board
Representative to the Westside Cities Council of Governments (COG) by
the following vote:
Option 1 (Brock, Negrete): Negrete, Brock
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Option 2 (de la Torre, Zwick): de la Torre, Torosis, Parra, Zwick, Davis
DISABILITIES
COMMISSION
16.C. Recommendation to accept Caron Block's resignation from the
Disabilities Commission and authorize the City Clerk to publish the
vacancy, was presented.
Motion by Mayor Davis, seconded by Councilmember Zwick, to adopt the
staff recommendation, with regret. The motion was unanimously approved
by voice vote, with all members present.
APPOINTMENT
RESCISSION
16.D. Recommendation to rescind the July 14, 2022 appointment of
Alexandra Blanc to the Disabilities Commission for failure to attend
Commission Meetings since Appointment; and, Authorization for the
City Clerk to Publish Vacancy, was presented.
Motion by Mayor Davis, seconded by Mayor Pro Tem Negrete, to adopt
the staff recommendation. The motion was unanimously approved by voice
vote, with all members present
ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 12:54 a.m.
ATTEST: APPROVED:
Denise Anderson-Warren Gleam Davis
City Clerk Mayor
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