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SR 08-22-2023 5B City Council Report City Council Meeting: August 22, 2023 Agenda Item: 5.B 1 of 5 To: Mayor and City Council From: David White, City Manager, City Manager's Office Subject: Affirmation and Update of Los Angeles 2024 Summer Olympics and Paralympics Games Guarantee Letters to LA28 Recommended Action Staff recommends the Council: 1. Adopt a finding of Statutory Exemption pursuant to Section 15272 (Olympic Games) of the California Environmental Quality Act (CEQA) Guidelines; 2. Authorize the City Manager to submit a Venue Guarantee Letter (Attachment A) to LA28 for use of Santa Monica State Beach for Beach Volleyball during the 2028 Summer Olympics; and 3. Authorize the City Manager to submit a City Guarantee Letter (Attachment B) to LA28 for use of Santa Monica State Beach for Beach Volleyball during the 2028 Summer Olympics. Summary On September 13, 2016, the Santa Monica City Council approved the Venue and City Guarantee letters for the LA 2024 Summer Olympics and Paralympics (Attachments C and D). These letters served as an official commitment by the City to host the Olympic sport of beach volleyball, and outlined general guarantees related to the use of City facilities, infrastructure support, and an initial estimate of beach and parking lot rental costs. Council’s approval of these letters demonstrated Santa Monica's readiness and commitment to supporting the LA 2024 Summer Olympics and Paralympics bid. Exactly one year after Council’s approval of the guarantee letters, the International Olympic Committee (IOC) awarded the 2028 Summer Olympics and Paralympics to the City of Los Angeles, now known as LA28. To align with this new timeline, it is necessary 5.B Packet Pg. 20 2 of 5 to update the guarantee letters to reflect the transition from LA 2024 to LA28, reiterate the City of Santa Monica’s support for Los Angeles as the host city, and confirm Santa Monica’s commitment to hosting the Olympic sport of beach volleyball as a venue city. Following Council’s approval of the updated guarantee letters, staff would begin negotiating the Venue City Games Agreement, which would include more detailed terms and conditions. The draft agreement terms would first be vetted through a community outreach process in collaboration with LA28, and then brought to Council for approval in early 2024. Once Council has approved the Venue City Games Agreement, staff would then begin negotiating the Enhanced City Master Agreement, which would include all terms and conditions, financial obligations, and detailed commitments for municipal services. Discussion On September 13, 2016, the Council approved the Venue Guarantee Letters for the LA 2024 Summer Olympics bid. Los Angeles was one of four cities bidding to host the 2024 Olympic and Paralympic Games. The LA 2024 Exploratory Committee (LA 2024) sought conceptual approval and agreement to minimum terms for the venue use, which was anticipated to form the basis of the Venue Use Agreement if Los Angeles won the 2024 Games. Prior to the Council’s approval of the LA 2024 guarantee letters in 2016, staff conducted community outreach in partnership with the LA 2024 Communications Team and provided presentations to beach residents, Planning Commission, Recreation and Parks Commission, Pier Corporation Board, Santa Monica Pier Lessees Association, and the State Department of Parks and Recreation. On September 13, 2017, the IOC awarded the 2028 Summer O lympic and Paralympic Games to Los Angeles, while simultaneously awarding the 2024 Games to Paris, France. Now that LA 2024 has transitioned to LA28, it is necessary to update the Venue and City Guarantee letters accordingly. The Venue Guarantee establishe s the minimum 5.B Packet Pg. 21 3 of 5 terms, including the exclusive use period, rental fee, and reimbursement for the loss of parking revenue. The City Guarantee letter includes commitments by the City to not stage major events during the Games, protect the marketing rights of t he Los Angeles Organizing Committee for the Olympic and Paralympic Games (OCOG), provide basic public services, comply with local laws, and collaborate with the United States Department of Homeland Security on public safety efforts. The proposed beach volleyball venue on Santa Monica State Beach is the only Olympic sport that will be hosted in Santa Monica. The concept plan includes a temporary 12,000-seat stadium on the sand north of the Santa Monica Pier, warm-up and practice courts, and operational and broadcast components in Beach Lot 1 North (Attachment E). The plan also outlines security measures, transportation solutions, and construction schedules. In 2016, the rental fee for the venue was estimated to be approximately $3.7 million, based on established formulas and current rates, the rental fee would be updated to 2028 market rates. The preliminary construction plan would phase the closure of Beach Lot 1 North and the beach area as follows: • April and May 2028: Approximately 400 spaces in Beach Lot 1 North would be occupied. • June 2028: 800 spaces in Beach Lot 1 North would be occupied as well as the beach construction area. • July 14 – 30, 2028: LA28 Summer Olympic Games • July and August 2028 (dates TBD): Entire Beach Lot 1 North and beach venue area would be fenced. • August 2028 (dates TBD): tear down; approximately 800 parking spaces would be occupied in Beach Lot 1 North. The closure of Beach Lot 1 North and reduced parking capacity during the Games would have significant impacts. Alternative parking and transportation options, as well as a communication plan for residents and visitors, would be developed during the negotiation of the Venue Use Agreement. 5.B Packet Pg. 22 4 of 5 Environmental Analysis Conceptual approval for the Olympic Games is statutorily exempt from CEQA pursuant to Section 15272 of the State CEQA Guidelines, which states that “CEQA does not apply to activities or approvals necessary to the bidding for, hosting or staffing of, and funding or carrying out of Olympic Games under the authority of the International Olympic Committee, except for the construction of facilities necessary for such Olympic Games.” The construction of the temporary stadium on the beach would be subject to further review to determine the level of environmental clearance necessary. Past Council Action Meeting Date Description 09/13/2016 (Attachment F) Approval of City and Venue Guarantee Letters for the Los Angeles 2024 Summer Olympics and Paralympics Bid Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council in the future with specific budget actions upon approval of the Venue City Games and Enhanced City Master Agreements. Prepared By: Melissa Spagnuolo, Community Partnerships Manager Approved Forwarded to Council Attachments: A. Venue Guarantee Letter LA28 (draft) B. City Guarantee Letter LA28 (draft) C. Venue Use Guarantee Letter LA 2024 D. City Guarantee Letters LA 2024 5.B Packet Pg. 23 5 of 5 E. Aerial View of Proposed Venue Site F. City Council Staff Report - September 13, 2016 (Web Link) 5.B Packet Pg. 24 [________] [_], 2023 International Olympic Committee Chateau de Vidy 1007 Lausanne Switzerland Attention: Thomas Bach, President Los Angeles Organizing Committee for the Olympic and Paralympic Games 2028 10900 Wilshire Blvd., Suite 700 Los Angeles, CA 90024 Attention: Casey Wasserman, Chairperson Re: Venue Guarantee – 2028 Olympic and Paralympic Games Dear President Bach and Mr. Wasserman: On behalf of the City of Santa Monica (the “City”), as the owner of a certain Venue (as defined in the Guarantee described below) within the City, we are pleased to reiterate our complete support for the City of Los Angeles’ election as host of the 2028 Olympic and Paralympic Games (the “2028 Games”). The City remains honored that the Venue is to host certain 2028 Games events and hereby confirms that the attached guarantee letter dated September 14, 2016 re: Venue Use Guarantee – Los Angeles 2024 (G2.20 / Stage 2 Candidature Questionnaire Olympic Games 2024) (the “Guarantee”) previously provided by the City in relation to the 2024 Olympic and Paralympic Games candidature process continues to apply, mutatis mutandis, in the context of the 2028 Games, with relevant dates adjusted to comparative dates for the 2028 Games. The City looks forward to partnering on what we are confident will be a tremendously successful Games. Thank you. Sincerely, The City of Santa Monica By: ________________________ [NAME] [TITLE] City of Santa Monica ATTACHMENT A5.B.a Packet Pg. 25 Attachment: Venue Guarantee Letter LA28 (draft) [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) [________] [_], 2023 International Olympic Committee Chateau de Vidy 1007 Lausanne Switzerland Attention: Thomas Bach, President Los Angeles Organizing Committee for the Olympic and Paralympic Games 2028 (“LA28”) 10900 Wilshire Blvd., Suite 700 Los Angeles, CA 90024 Attention: Casey Wasserman, Chairperson Re: City Guarantee – 2028 Olympic and Paralympic Games Dear President Bach and Mr. Wasserman: On behalf of the City of Santa Monica (the “City”), we are pleased to reiterate our complete support for the City of Los Angeles’ election as host of the 2028 Olympic and Paralympic Games (the “2028 Games”). The City remains honored to participate in the 2028 Games as a venue city and hereby confirms the attached guarantee letters dated February 1, 2016 re: Candidature Questionnaire Olympic Games 2024 – Stage 1 (G1.2 and 1.3) and September 14, 2016 re: Stage 2 (G2.2, 2.3, 2.11, 2.13, 2.25, 2.31 and 2.32) previously provided by the City in relation to the 2024 Olympic and Paralympic Games candidature process continues to apply, mutatis mutandis, in the context of the 2028 Games. Notwithstanding the foregoing, State and City laws regarding street vending have been revised since signing the guarantee letters referenced above; however, the City will work in good faith with LA28 to ensure that appropriate legislation is in place in the City to regulate unauthorized street trading and will reference the appropriate legislation in the Venue City Games Agreement. The City looks forward to continuing to work with the City of Los Angeles as the 2028 Games approach. The return of the Olympic and Paralympic Games to the United States in 2028 will be a watershed event in our nation’s history, and we look forward to partnering on what we are confident will be a tremendously successful Games. Thank you. Sincerely, The City of Santa Monica By: ________________________ [NAME] [TITLE] City of Santa Monica Attachment B5.B.b Packet Pg. 26 Attachment: City Guarantee Letter LA28 (draft) [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) ATTACHMENT C5.B.c Packet Pg. 27 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 28 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 29 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 30 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 31 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 32 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 33 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 34 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 35 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 36 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 37 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.c Packet Pg. 38 Attachment: Venue Use Guarantee Letter LA 2024 [Revision 2] (5783 : Affirmation of LA 2024 Agreements for LA28) ATTACHMENT D5.B.d Packet Pg. 39 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.d Packet Pg. 40 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.d Packet Pg. 41 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.d Packet Pg. 42 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.d Packet Pg. 43 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) 5.B.d Packet Pg. 44 Attachment: City Guarantee Letters LA 2024 [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28) ATTACHMENT E 5.B.e Packet Pg. 45 Attachment: Aerial View of Proposed Venue Site [Revision 1] (5783 : Affirmation of LA 2024 Agreements for LA28)