SR 04-25-2023 5F
City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 5.F
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Airport
Subject: Approval of Airport Restaurant Lease with Clover Restaurants, Inc. and First
Modification to Agreement CCS# 10713 with Corporate Realty Group
Recommended Action
Staff recommends that Council:
1. Authorize the City Manager to negotiate and execute a Lease with Clover
Restaurants, Inc. (Clover) for restaurant, outdoor patio and parking space,
located at 3200 Airport Avenue, and reflecting the general terms and conditions
below;
2. Authorize the City Manager to negotiate and execute the first modification to
professional services agreement No. 10713 (CCS) in the amount of $107,377
with Corporate Realty Group (“CRG”), a California-based corporation, to provide
additional commercial real estate broker and consulting services for the Santa
Monica Airport and extend the term of the agreement. This will result in an
amended agreement expiring on December 31, 2024, for a total agreement term
of 6 years and 4 months, with a new total amount not to exceed $1,252,416 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.
Summary
Clover Restaurants, Inc. (“Clover”) proposes to lease approximately 8,500 square feet
of building, outdoor patio, and parking space (“Premises”) for restaurant use located at
3200 Airport Avenue at the Santa Monica Airport. The proposed restaurant would be
located next door to the existing Cloverfield Restaurant located at 3300 Airport Ave,
which is leased by the owners of Clover. The 3200 Airport Avenue property has been
vacant since January 31, 2023, to allow for extensive building renovations that are
expected to be completed by Summer 2024. The proposed lease with Clover would
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include an initial term of 11.5 years and one renewal option for five years. The initial
term includes one year of City’s building renovations and six months of ten ant’s
additional construction work. The term of this lease would extend beyond December
31, 2028, and is thus outside the parameters set forth in the current Airport Leasing and
Licensing Policy (Attachment A) and as such requires City Council approval. Securing a
tenant for the vacant space at 3200 Airport Avenue helps ensure the Airport Fund’s
financial self-sufficiency and aligns with the City’s priority of economic recovery. The
recommended lease with Clover will generate an estimated $5.015 million over the
initial 11.5-year term.
Corporate Realty Group (“CRG”), the City’s current real estate broker, will provide the
City with commercial real estate brokerage and consulting services for the proposed
lease agreement. A first modification to Agreement No.10713 (CCS) with CRG is
recommended to (1) provide for the additional commission associated with the
proposed lease and (2) extend the term of the contract to allow for payments of the
additional commission when they become due.
Discussion
Lease Term and Conditions
Clover seeks restaurant, outdoor patio, and parking space to create a commercial
operation with food and alcoholic beverages. Clover proposes to lease a portion of the
property at 3200 Airport Avenue. The lease would be for approximately 8,500 square
feet of restaurant space representing about half of the rentable area of the 3200 Airport
Avenue building. The proposed restaurant would be located next door to The Cloverfield
Restaurant located at 3300 Airport Ave and would be approximately 50% larger. The
City and Clover would finalize negotiations and execute a lease agreement based on
the following proposed terms and conditions.
• The proposed lease is a 11.5-year term that includes a 4% annual escalation
provision beginning at Year Two of the term of the lease (January 2025).
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• A security deposit equal to three months’ rent plus the first month’s rent would be
due at the execution of the lease agreement.
• The proposed monthly rent of $36,325 reflects market rate.
The building located at 3200 Airport Avenue is currently vacant to allow for the City to
complete substantial and necessary facility improvements on the building that was built
in 1947. Staff anticipates this work to last about a year and will be completed by July
2024, at which point Clover will perform additional construction for the restaurant for an
additional six months. Clover’s construction of the space is anticipated to conclude by
January 2025.
The Clover lease is expected to be executed in July 2023. The City will provide Clover
with 12 months of rent credit during the time that the City is occupying and working on
the premises (July 2023 through June 2024). Clover will be given an additional 12
months of rent credit (from July 2024 to June 2025) to cover the time that it spend s
improving the City’s property and for the investment they will have made in the building
to improve the space. In all, under the proposed lease, Clover will be given a total of 24
months of rent credit. Any improvements undertaken by Clover would revert to the City
at the conclusion of the lease term.
The 11.5-year term of the proposed lease is estimated to begin in July 2023 and expires
on December 31, 2034. An option to renew for an additional five years, if exercised,
would expire on December 31, 2039, and would be set at the market rate at the
beginning of the option period. The term of the lease extends beyond the anticipated
closure date of the Airport and thus requires City Council approval.
The proposed lease would be Triple Net wherein the tena nt is required to pay all
property taxes and assessments (including possessory interest tax), insurances and
utilities. Additionally, Clover would be responsible for all services, repairs,
replacements, maintenance, improvements, or items related to compliance associated
with the premises. Clover would be required to comply with all City building code
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regulations, planning standards, and any applicable FAA regulation, as a condition of
the lease.
Clover would employ approximately 30 workers on-site. Therefore, Clover would be
subject to the Transportation Demand Management (TDM) requirements of the City to
address any transportation and/or parking management issues.
Modification to CRG Contract
On July 24, 2018, the City authorized an agreement with CRG for commercial real
estate brokerage and consulting services in an amount not to exceed $1,145,039 over a
three-year period, plus two one-year options to renew. The final renewal option will
expire on August 31, 2023.
CRG will provide the City with commercial real estate brokerage and consulting services
for the proposed lease agreement. Should the proposed lease be approved and
executed, the real estate commission fee due to CRG is estimated to be $107,377
based on a 3% commission for the initial five years of the term, and 1.5% for years six
to ten. Half of the commission ($53,689) would be due upon execution of the lease on
or about July 2023 (FY2023-24), and the remaining half paid when tenant begins
construction of the restaurant space, estimated on or around July 2024 (FY2024-25).
There would be no commission obligation for the five-year renewal option if exercised.
The commission rates are consistent with the terms of CRG’s agreement with the City
and conform to industry standards.
The commission amount, in addition to other pending commissions due to CRG, would
exceed the current contract amount authorized in the City’s Agreement No. 10713
(CCS). Therefore, staff recommends a first modification to the agreement with CRG to
increase compensation by $107,377 from funds available in the Airport Fund Budget.
Due to the timing of the City’s obligation for payment of the commissions, staff
recommends that the term of the agreement be extended to December 31, 202 4.
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Environmental Review
The proposed lease is categorically exempt from the California Environmental Quality
Act (CEQA) under Section 15301. Section 15301 of the CEQA State Guidelines
provides Class 1 (existing facilities) exemption for projects that consists of the
operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of
existing public or private structures, facilities, mechanical equipment, or topographical
features, involving negligible or no expansion of the existing or former use. The lease
would not result in any significant modifications to the existing space at 3200 Airport
Avenue. Therefore, the project is categorically exempt as set forth in Section 15301 of
the CEQA State Guidelines.
Past Council Actions
Meeting Date Description
8/14/2018
(Attachment A)
Santa Monica Airport Leasing and Licensing Policy
7/24/2018
(Attachment B)
Authorize Agreement to Corporate Realty Group, Inc. for
Commercial Real Estate Broker Services at the Santa Monica
Airport following RFP process
Financial Impacts and Budget Actions
The recommended lease with Clover would generate an estimated $5.015 million over
the initial 11.5-year term. If executed in July 2023, the proposed lease would increase
FY2023-24 Airport revenues by $191,429 (first month’s rent and three-month security
deposit). Future revenues generated by the proposed lease would be included in the
budget.
Staff seeks authority to approve available funding from the Airport Fund to increase the
amount of the agreement with the Corporate Real Estate Group for comme rcial real
estate leasing services. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2022-23
Request
Amount
Future Years Dept Account # Total Revised
Contract Amount
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10713 $1,145,039 0 $107,377 57500001.552010 $1,252,416
Prepared By: Kate Schlesinger, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. AIRPORT LEASING AND LICENSING POLICY 2018-08 (1)
B. CRG SR 2878 7242018 meeting
C. 20220614_Con_CRG_FY22_OAKS_
D. 20221222_Oaks Clover Restaurants Inc.
E. 201809_Contract-CRG-10713- signed
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SANTA MONICA CITY COUNCIL AIRPORT LEASING AND LICENSING POLICY
Purpose. The purpose of this Airport Leasing and Licensing policy is to
establish and declare City policy on matters related to airport leasing. This
Leasing Policy shall be used by the City Manager to analyze leasing and
licensing issues, to present leasing and licensing recommendations to the City
Council, and to render leasing and licensing decisions under the authority
granted by the City Council.
By adopting the Airport Lease Policy, the City Council seeks, to the extent
consistent with the Consent Decree signed by the City of Santa Monica
and the U.S. Justice Department on behalf of the Federal Aviation
Administration, to have an airport tenant mix that:
• Is harmonious with the nearby built environment by protecting the
health and safety of Airport neighbors.
• Maintains a sustainable Airport Fund that is independent from the
General Fund and other subsidies.
• Comports with any applicable legal requirements and protects the
City’s rights that relate to leases at the Airport.
• Continues to provide opportunities for arts, education, and culture,
including, but not limited to, the Artist Space Program administered
in conjunction with Cultural Affairs Division.
• Establishes practices and procedures for evaluating potential
leasehold interests, and for lease management and administration.
• Fosters uses and practices that are sensitive to the environment and
protect the health of Airport neighbors and users and protect the City
from future environmental damage exposure.
General Provisions. The majority of the Airport revenue is derived from
leases. To help support the Airport’s fiscal self‐sufficiency, all rents, fees,
and charges must reflect fair market value. To achieve the goals of the
Leasing Policy, the policy shall be managed in a manner consistent with
the following standards:
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SECTION A: USES
1. Authorized Uses: Authorized uses include: (a) uses required by the
Consent Decree; and (b) low intensity uses that are compatible with
surrounding uses, serve the adjacent community, and are consistent with
the City's environmental goals and policies. Examples of uses in category
(b) include, but are not limited to: parks and open space, arts/cultural,
creative space, professional theaters, museums, artist studios, art
galleries, photograph studios, uses customary or incidental to the
production or distribution of motion pictures, educational facilities,
professional and general offices, public or private schools existing prior to
September of 1984, warehouses, self‐storage/public mini‐warehouses,
and restaurants with 500 square feet of floor area or less.
2. Conditionally permitted uses: Parking and automobile storage lots
and structures. Restaurants with over 500 square feet of floor area.
Theaters. New public or private schools or educational institutions.
3. Prohibited Uses: Prohibited uses include: any use involving the
manufacture, processing, storage, or treatment of products, which by
nature of the operation is likely to be obnoxious or offensive to the
surrounding environment; construction of new general office buildings;
any use not specifically authorized as a permitted or conditionally
permitted use; and high intensity uses that are incompatible with the
surrounding residential uses.
SECTION B: TERMS AND CONDITIONS
1. Term for Hangars. All hangars shall be leased on a month‐to‐month basis.
2. Term for Tie‐Downs. All tie‐downs shall be leased on a month‐
to‐ month basis.
3. Term for Aeronautical Service Providers. Consistent with the terms of
the Consent Decree, aeronautical service providers may be offered up
to three‐year lease terms that comport with this Leasing Policy and the
Minimum Standards for Commercial Aeronautical Services at Santa
Monica Municipal Airport (the “Minimum Standards”), so long as the
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expiration date of the lease does not extend beyond December 31,
2028.
4. Term for Non‐Aviation Tenants. Lease terms may be month‐to‐month
or longer. However, no lease shall have a term that goes beyond
December 31, 2028.
5. Environmental Responsibility. New requests to lease and existing
leases shall be reviewed to assess potential negative effects on the
environment. The City may require environmental studies or testing
as appropriate and necessary, and any needed remediation shall be
performed prior to establishment of new uses. All lessees shall be
responsible for any environmental contamination, resulting from
their prior use, as a condition to a renewed or extended lease.
Environmental clean‐up will be required as a condition of any renewal
or extension. At the time of the application, an assessment of the
proposed use will be conducted, and appropriate insurance and/or
remediation requirements will be incorporated into the lease based
on proposed usage.
6. Rates. All new and renewed leases will be leased at prevailing
market rates and rates will be adjusted to stay current with market
conditions and as new/renewed leases arise.
7. Percentage Rent Provision. In addition to a base rent, the City may
elect to require that certain leases include a percentage rent provision,
which can be differentiated by categories of sales. The City shall have
the right to audit tenant's financial records to ascertain that the gross
sales figures reported by the tenant are accurate.
8. Existing Tenants. All existing airport tenants will be given the
opportunity to submit a lease application to the City. The City is under
no obligation to offer lease agreements. Submitting an application to
the City does not obligate the City to enter into lease negotiations,
offer a lease agreement, or execute a lease agreement. The decision to
execute a lease agreement will be made solely within the City’s
discretion as landlord and property owner.
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9. Whole Building Leases. Whole building leases may, at the City’s
discretion, be subject to public Requests for Proposals intended to
optimize leasehold occupancy and the self‐sustainability of the airport.
Tenants under a whole building lease shall be responsible for
maintenance and repair of said buildings.
10. Transfer of Interest. Space sharing is prohibited without the written
consent of the City and granting or withholding consent will be
conditioned on express standards and conditions set forth in the lease.
11. Lease and License Areas. Operation and improvements to lease and
license areas are subject to the City’s standard regulatory rules,
review and approval process.
12. Triple Net Leases. The City may require tenants to pay all property
taxes and assessments (including Possessory Interest Tax), insurance,
and utilities.
13. Commercial Operations Permit (COP). Prospective tenants proposing
to use the Santa Monica Airport to engage in an activity that requires
a business license from the City are required to acquire a commercial
operations permit issued by the City Manager. All COPs will be
presented to the Airport Commission for their recommendation and
comment prior to City Manager’s approval.
14. Master Tenants. Master tenant agreements are to be phased out in
an orderly transition.
15. Sub‐Leasing. New sub‐leasing shall be prohibited. Existing sub‐
tenancies shall be subject to an orderly phase‐out at the sole
discretion of the City.
16. Insurance. Airport lease agreements shall minimize the City’s
financial and economic risk, by incorporating reasonable
indemnification and insurance provisions.
17. Daily and Transient Users. Daily and transient uses shall be permitted.
SECTION C: PERFORMANCE STANDARDS
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1. Compatible and Harmonious. All lessees shall use the airport and any
airport property in a manner that is compatible with City policies and with
the adjacent residential uses; to encourage activities that complement
adjacent residential and commercial uses; to establish practices that are
sensitive to the environment and protect the City from future
environmental exposure; and for aeronautical service providers, comply
with the Minimum Standards.
2. All City‐owned buildings appropriate and suitable for leasing may be
subject to a public procurement and solicitation process to identify
prospective tenants and licensees whose financial and professional
experience, and products and/or services are consistent with the Leasing
Standards set forth herein.
3. All prospective tenants must submit a Lease or License Application to the
City. Information contained in the Lease Application shall describe the
proposed use for the available space; provide information about the
respondent; provide references; describe in detail the financial capability
of the respondent to perform; and set forth preliminary terms and
conditions.
4. Hangars
a. Hangars that have a land lease agreement with the City will be
on a month‐to‐month tenancy under a City approved lease
agreement which will be updated as deemed necessary by the
City.
5. Recruitment for artist day studios will adhere to the criteria set forth by
the Cultural Affairs Division of Community and Cultural Services
Department. Candidate tenants for available Artist Day Studio space are
required to file Program applications for screening purposes, and
qualifying artists are selected only from the screened waiting list.
SECTION D: MAINTENANCE AND TENANT IMPROVEMENTS
1. All leaseholders shall be responsible for maintaining their facilities in
attractive and safe condition, in compliance with applicable building and
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life safety codes and all applicable environmental laws, ordinances,
regulations and other city standards.
2. Facilities will be inspected prior to new or extended leasehold occupancy
and refurbished, by the City or tenant (at the City’s election), to a decent,
safe and sanitary condition appropriate for use. If tenant makes
improvements to the facility as a mutually agreed upon condition of a
lease, the City must first review and approve the proposed design and
scope of work. All necessary building permits must be obtained, and the
work must be inspected for compliance with applicable code(s).
Appropriate rental credits for the approved work performed may be
negotiated as part of the lease. Any Tenant Improvement Credit that
exceeds two months’ worth of tenant monthly rent must be approved by
the Airport Director.
3. Each tenant or licensee will be responsible for interior maintenance and
repair at its sole expense, and the City generally will retain responsibility
for maintenance and repair of roofs, building exteriors, landscaping and
common use parking for all Airport‐managed leaseholds unless otherwise
specified in the lease or license. Tenants who lease whole buildings from
the City will be responsible for any and all maintenance, repair and
improvements including roofs, building equipment and exteriors of the
facilities as well as interior maintenance and repairs.
4. Tenants shall respond to the City’s written inquiries regarding any
complaints or issues. Tenant will provide an action plan for improvement
if so requested by the City.
5. As applicable, the above requirements may be incorporated in leases,
licenses and other agreements. In addition, the City may add to any Lease
or License further or different or additional operational and performance
standards as the City concludes are appropriate to the particular Tenant’s
operation.
6. Upon confirmation that the proposed tenancy is consistent with this
Leasing Policy, a lease agreement will be prepared for review by the City
Attorney and execution by the prospective tenant before being referred
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to the City Manager for approval. Leases for terms greater than terms
specified in these guidelines require City Council approval.
SECTION E: LEASE APPROVALS AND DELEGATION OF AUTHORITY
1. The City Manager has the authority to negotiate and execute month‐to‐
month leases, leases with aeronautical service providers, and leases that
expire prior to or on December 31, 2028, provided the City Manager finds
the proposed use is consistent with this Leasing Policy, the Minimum
Standards, and the Consent Decree. To be valid, such leases must be on
the basis of written agreements prepared and approved as to form by the
City Attorney. Leases for terms of occupancy of more than five years or
with an expiration date beyond December 31, 2028, or otherwise outside
the parameters established by this Policy, will require City Council
approval.
2. The City may cooperate with commercial real estate brokers who
are authorized to negotiate leases on behalf of prospective
tenants.
SECTION F: GENERAL PROVISIONS
This Leasing Policy may be altered by the City at any time, in its sole discretion,
and shall not create any right or reliance interest for any person.
Updated August 2018
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City Council
Report
City Council Meeting: July 24, 2018
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Airport
Subject: Award Agreement to Corporate Realty Group, Inc. for Commercial Real
Estate Broker Services at the Santa Monica Airport
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 167 to Corporate Realty Group Inc., a California-based company, to
provide commercial real estate broker and related consultant services for Santa
Monica Airport; and
2. Authorize the City Manager to negotiate and execute an agreement with
Corporate Realty Group Inc. in an amount not to exceed $430,611 (including a
10% contingency) for three years, with two one-year renewal options in the
amounts of $639,634 in year one and $74,794 in year two , for a total amount not
to exceed $1,145,039 over a five-year period, with future year funding contingent
on Council approval.
Summary
The City currently contracts with commercial real estate firm Corporate Realty Group
(CRG) to assist staff with commercial real estate broker and consulting services for
City-owned facilities at the Santa Monica Airport. Staff anticipates the continued need
for commercial real estate broker and consulting services in future fiscal years. Staff
recommends CRG to provide these services at the Santa Monica Airport for an amount
not to exceed $1,145,039 over a five-year period.
Discussion
The revenue derived from Airport leasing supports the City’s goals of achieving a
financially self-sufficient Airport, eliminating subsidies from the General Fund, and
repaying the principal and interest of past General Fund loans.
Staff anticipates the continued need for commercial real estate brokerage services.
There are certain facilities at the Airport that due to their size and/or complexity require
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the expertise of a commercial real estate broker to optimize marketing and negotiations
to yield maximum revenues for the City. Additionally, the commercial real estate broker
would provide consulting services to staff during other lease negotiations that might
arise during the term of the contract.
The commercial real estate broker services that would be provided by CRG for certain
facilities at the Airport would include but would not be limited to:
• marketing the properties,
• negotiating the terms of new and renewal leases,
• coordinating the execution of all attendant documents, and
• facilitating the completion of the leasing transactions.
Under the proposed agreement, CRG would receive the following commissions:
• For new long-term leases: 3% of the aggregate lease value (1-5 years), and
1.5% for the remaining lease term (6-10 years) for leases in which CRG is the
sole broker. In the event of a lease with two brokers (i.e. CRG and the tenant’s
broker), there would be an additional 3% of the aggregate lease value for years
1-5 for a total commission of 6% and an additional 2% of the aggregate lease
value for years 6-10 for a total commission of 4%.
• For lease renewals and expansions: 2% of the aggregate lease value (1-5
years), and 1% for the remaining lease term (6 -10 years) for leases in which
CRG is the sole broker. In the event of a lease renewal or expansions with two
brokers (i.e. CRG and the tenant’s broker), there would be an additional 2-4% of
the aggregate lease value for years 1-5 and an additional 1%-2% of aggregate
lease value for years 6-10.
• Month-to-month agreements: CRG would receive a commission equal to one
month’s rent for administrating new month-to-month leases.
• Consulting service fees would be based on an hourly rate schedule.
Anticipated costs for CRG’s services during the term of this agreement would be more
than offset by the lease revenues associated with the commission and consulting fees.
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It should be noted that anticipated costs for year four of this agreement include an
estimated commission of $571,486 for the renewal of the City’s current lease with Snap,
Inc. at 2800 Donald Douglas Loop North.
Consultant Selection
RFP Data
RFP Posting Date RFP Posted
On
RFP Advertised In
(City Charter & Municipal
Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
04/02/2018
City's
Online
Bidding
Site
Santa Monica Daily
Press 20 3 05/02/2018
RFPs Received
Corporate Realty Group
PAR Commercial Brokerage
Secured Properties, Inc.
Justification to Award
Responses to the RFP were reviewed by a selection panel from the Public Works Department
(Airport Division), Economic Development Division, and the Office of the City Manager.
Proposals were evaluated based on the criteria in SMMC 2.24.073 and criteria listed in the RFP,
including experience and technical competence, conceptual plan and approach, quality control,
cost of service/cost control, and references. Corporate Realty Group offered the most
comprehensive and relevant experience and expertise needed by the City. Based on the
criteria, staff recommends CRG as the best qualified firm.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with Corporate Realty Group for commercial
real estate broker and consulting services for City-owned facilities at the Santa Monica
Airport.
Contract
Request Amount FY 2018-19 Budget
Public Works Department Account #
Total Contractual
Amount Not to Exceed
$155,171 57500001-552010 $1,145,039
Future year funding is contingent on Council budget approval.
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Prepared By: Kate Schlesinger, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Corporate Realty Group 2018 Oaks Initiative Form
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Packet Pg. 141 Attachment: CRG SR 2878 7242018 meeting (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
CITY OF SANTA MONICA
LIVING WAGE ORDINANCE
Certification for Providers of Services to the City of Santa Monica
(Fiscal Year 21/22 – July 1, 2021 through June 30, 2022)
TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO
THE CITY OF SANTA MONICA IN EXCESS OF $54,200
The City of Santa Monica Municipal Code Chapter 4.65, Living Wage Ordinance (LWO),
establishes a Minimum Wage of $17.64 per hour for certain employees of contractors
providing services to the City where services exceed $54,200 or more and requires that
contractors also provide the same health care and other benefits to employees’ same
sex spouses and domestic partners as are provided to other employees’ spouses.
An employee covered by the LWO is any person who does not actually work as a
manager, supervisor, or confidential employee, and who is not required to possess an
occupational license.
The Living Wage Ordinance applies the services sought pursuant to this bid and bidders
are required to prepare and return the Living Wage Certification Form. If the bidder is
selected, the bidder must maintain payroll records that include, at minimum, the full
name of each employee providing services under the contract, job classification and
rate of pay. Bids that fail to include Certification Forms may be considered non-
responsive and excluded from further consideration.
Please prepare the following certification if you are a contractor engaging in a contract
for services with the City of Santa Monica in excess of $54,200.
Your signature on this certification grants the City permission to review any and all
payroll books and records and any company documents pertaining to the benefits
offered to employees to assure your compliance with the LWO during the term of the
contract.
Please direct any questions to:
City of Santa Monica Finance Department
Attention: Living Wage Compliance Section
1685 Main Street, Mail Stop 09
Santa Monica, CA 90401
You can also contact staff regarding living wage ordinance questions by e-mail at
finance.mailbox@smgov.net or by phone 310-458-8281.
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Packet Pg. 142 Attachment: 20220614_Con_CRG_FY22_OAKS_ (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
CITY OF SANTA MONICA
LIVING WAGE ORDINANCE CERTIFICATION
July 1, 2021 through June 30, 2022
TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE
CITY OF SANTA MONICA IN EXCESS OF $54,200
MINIMUM WAGE - $17.64 per hour
Please read, complete, and sign the following:
THIS CONTRACT IS SUBJECT TO THE LIVING WAGE ORDINANCE
THIS CONTRACT IS NOT SUBJECT TO THE LIVING WAGE ORDINANCE
If this contract is not subject to the Living Wage Ordinance requirements, please note the reason below
and attach supporting documentation for exemption. For example, in order to be exempt pursuant to a
collective bargaining agreement, a signed collective bargaining agreement must be attached.
(a) ________ contractor is a government agency and is exempt
(b) ________ contractor is a City grantee and is exempt
(c) ________ contractor is a non-profit corporation and is exempt
(d) ________ contractor is an employer whose employees are covered by a bona fide collective
bargaining agreement where the waiver is explicitly set forth in an agreement in
clear and unambiguous terms
(e) ________ contractor is a corporation providing banking services
The undersigned, on behalf of himself or herself individually and on behalf of his or her business or
organization, hereby certifies that he or she is fully aware of Santa Monica’s Living Wage Ordinance
(LWO), and the applicability of the LWO, and the applicability of the subject contract, as determined
herein. The undersigned further agrees to be bound by all terms of the LWO, as mandated in all sections
of Santa Monica Municipal Code, Chapter 4.65. If, at any time during the term of the contract, the
answers to the questions posed herein change so that Contractor would be subject to the LWO,
Contractor will promptly notify the Director of Finance in writing. Contractor further understands and
agrees that the failure to comply with the LWO, this certification, or the terms of the Contract as it applies
to the LWO, shall constitute a default of the Contract, which shall be grounds for termination. City shall
have the right to examine all books and records of the Contractor as they relate to compliance with the
LWO. Payroll records shall at a minimum include the full name of each employee performing labor or
providing services under the contract, job classification, and rate of pay.
These statements are made under penalty of perjury under the laws of the State of California.
Printed Name: _______________________________________Title: _______________________________
Signature: __________________________________________ Date: _______________________________
Contractor: ________________________________________ Bid Number (if applicable):_____________
Service Description:
_______________________________________________________________________________________
_______________________________________________________________________________________
x
Craig Zund Principal
6/14/22
Corporate Realty Group, Inc.
Real estate brokerage and consulting.
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CITY OF SANTA MONICA
OAKS INITI ATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public off icial from receiving, and a person or entity from conferring, specified
personal benef its or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists f or persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
inf ormation must be updated and supplied every 12 months.
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Packet Pg. 144 Attachment: 20220614_Con_CRG_FY22_OAKS_ (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
CITY OF SANTA MONICA
OAKS INITI ATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benef its include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Corporate Realty Group, Inc.
Craig Zund
Craig Zund
Craig Zund Principal
6/14/22
craig@corprg.com (310) 570-5011
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5.F.dPacket Pg. 146Attachment: 20221222_Oaks Clover Restaurants Inc. (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.dPacket Pg. 147Attachment: 20221222_Oaks Clover Restaurants Inc. (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 148Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 149Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 150Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
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5.F.ePacket Pg. 153Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
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5.F.ePacket Pg. 155Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 156Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
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5.F.ePacket Pg. 158Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 159Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)
5.F.ePacket Pg. 160Attachment: 201809_Contract-CRG-10713- signed (5641 : Airport Restaurant Lease and CCS# 10713 First Modification)