With only one or two points of discussion, councilmembers voted unanimously 7-0 to move forward with the fiscal year 2022-23 year-end budget proposals.
As per the Staff report, this included, but was not limited to: establishing new classifications and salary rates for various listed positions, revising the City’s master fee schedule to revise certain user fees and charges, authorize the City Manager to accept a grant award from the California Library Literacy Services and from the Justice and Mental Health Collaboration Program.
It also authorizes the City Manager to negotiate with Exodus Recovery for the Services, Treatment and Empowerment Program for the City Attorney’s Office and to negotiate and execute funding agreements with developers and existing businesses to provide funding to support coordination of large-scale development projects.
Finally, it authorizes staff to amend the City’s fiscal policies to add the plan to replenish funding leveraged to pay for legal settlements and COVID-related losses. In addition to the pandemic, this relates largely to the unfortunate Eric Uller settlements.
"The budget included no cost adjustments to improve service delivery, delivery and a small number of focused investments to begin restoration of youth programs and to enhance public safety. But we knew that we were facing some extraordinary unfunded liabilities that were arising out of allegations of sexual abuse by a former city employee and volunteer, said Gigi Decavalles, Director of Finance for the City of Santa Monica, said during her presentation to council.
"These liabilities were resolved this past April when Council approved settlements with 124 claimants in the amount of $122.5 million. At that point, resolving all the lawsuits at that point against the city. The accounting adjustments related to those settlements are primarily what we’re asking Council to approve for fiscal year 22-23," Decavalles added.
Councilmember Caroline Torosis asked for a few more details regarding the new Community Development deputy director of special projects role, to which Decavalles clarified, "The role will be to oversee large projects that are moving to the process. So not just within the community development department, but also work with other departments of Public Works, mobility, all the different places that projects need to go to for their approvals."
She also indicated that this role would oversee both the massive Fairmont Miramar project and the equally as ambitious Ocean Ave/Santa Monica Blvd proposal.
Firstly, the existing 262,000-square-foot luxury Fairmont hotel and an adjacent parking lot will be replaced with a 500,000-square-foot mixed-use development including 312 hotel rooms, 60 condos, 6,600 square feet of retail space, three cafe/restaurants and 285 underground parking spaces. Across the street, there will be a 40,500 square foot, five-story multifamily residential building containing 42 affordable rental units.
Secondly, approximately half of the 1300 block beginning at the intersection of Ocean Ave and Santa Monica Blvd will be transformed into a Frank Gehry-designed, mixed use complex of questionable architectural taste that will include housing, a hotel, restaurants plus shops and an art museum.
Both of these enormous engineering endeavors are expected to be completed before the 2028 Olympic Games arrive in Los Angeles, continuing the City’s surging tsunami of redevelopment.
Mayor Gleam Davis alluded to a "concierge service" that was offered to Santa Monica Place "so that they could get opened by a particular date."
"One of the reasons for wanting to get both the Miramar and the Ocean Avenue project going is that when they’re open, they will start to generate more revenue for the city," Davis said, adding that this new appointment would help facilitate a faster completion time to which David Martin, Community Development Director, concurred.
Ultimately, a motion was made to approve all items, one through 12 by Torosis and seconded by Councilmember Phil Brock and was passed unanimously 7-0.
