1 

### MARSHA JONES MOUTRIE, City Attorney JOSEPH LAWRENCE, Asst. City Attorney 2 

### LANCE S. GAMS, Deputy City Attorney IVAN CAMPBELL, Deputy City Attorney 3 

### 1685 Main Street, Room 310 Santa Monica, California 90401 4 

### Telephone: (31 0) 458-8336 Facsimile: (310) 451-5862 5 

### lance.gams@smgov.net 6 

### Attorneys for Respondent CITY OF SANTA MONICA 7 8 

# ~LE~LEO\WLE~ AUG 18 

## 2014 PART 16 DOCKETS

9 10 

### UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, D.C. 11 12 

### IN THE MATTER OF COMPLIANCE WITH 13 

### FEDERAL OBLIGATIONS BY THE CITY OF SANTA MONICA, CALIFORNIA, 14 15 16 17 

### FAA Docket No. 16-14-04 CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFT ASSOCIATION, 

### ET AL.; MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT THEREOF [PURSUANT TO 14 C.F.R. §16.26(a),(b)]
18 

### PLEASE TAKE NOTICE that respondent CITY OF SANTA MONICA (hereinafter 19 

### "CITY") files this Motion to Dismiss and requests that the Federal Aviation Administration 20 

### ("hereinafter "FAA") reject and dismiss the entire above-referenced Part 16 Complaint of 21 

### National Business Aircraft Association, Krueger Aviation, Inc., Harrison Ford, Justice 22 

### Aviation, Kim Davidson Aviation, Inc., Aero Film, Youri Bujko, James Ross, Paramount 23 

### Citrus LLC and Aircraft Owners and Pilots Association, with prejudice, pursuant to 14 24 

### C.F.R. §16.26(a),(b), on any or all of the following grounds: 25 

### 1. The subject matter ofthe Complaint is outside thejurisdiction and the authority of 26 

### the FAA Administrator as enunciated in 14 C.F.R. §16.1; 27 

### 2. The Complaint does not state a claim that warrants an investigation or further 28 

### action by the FAA; and

41644 1 CITY OFSANTAMONICA'S MOTIONTODISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL

### 3. The Complainants lack standing to file a Complaint under §§16.3 and 16.23. 2 

### Additionally, the Complaint should be dismissed, without prejudice, pursuant to 14 3 

### C.F.R. §16.27, because Complainants have failed to engage in good faith efforts to resolve 4 

### the disputed matter informally with the CITY as required under 14 C.F.R. §16.21. 5 

### This Motion will be based upon this Notice and the attached Memorandum of Points 6 

### and Authorities, which includes the requisite concise statement ofthe reasons for seeking 7 

### dismissal, and any further information, documentation or arguments as may be requested 8 

### by or filed with the Director ofthe FAA. 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 

### Dated: August 14, 2014

41644 

### B

2 

### MARS A JO ES MOUTRIE JOSEPH LAWRENCE LANCE S. GAMS IVAN CAMPBELL Attorneys for Respondent City of Santa Monica

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL

### MEMORANDUM OF POINTS AND AUTHORITIES 2 

### I. 3 

### INTRODUCTION 4 

### The Complaint should be dismissed with prejudice. The City of Santa Monica 5 

### (hereinafter "CITY") has not committed a violation of any Act or Grant Assurance, nor has 6 7 

### the CITYfailed to take action that it is required to take under anyAct or Grant Assurance. g 

### In fact, the Complaint does not even allege that the CITY has acted, orfailed to act, in a 9 

### way that violates any Act or any Grant Assurance. 1 10 

### Complainants National Business Aircraft Association, Krueger Aviation, Inc., 11 

### Harrison Ford, Justice Aviation, Kim Davidson Aviation, Inc., Aero Film, Youri Bujko, James 12 

### Ross, Paramount Citrus LLC and Aircraft Owners and Pilots Association (hereinafter 13 

### collectively referred to as "NBAA") spend considerable time in their pleading discussing 14 15 

### actions that the CITY has taken or attempted in the past 50 years to close or restrict 16 

### operations at Santa Monica Municipal Airport (hereinafter "SMO" or "the Airport"). 17 

### However, there are NO specific actions currently pending by the CITY to do either of these 18 

### things. On the contrary, and as admitted in the Complaint (p. 7, para. 27), the City Council 19 

### has previously voted to offer three (3) year lease extensions which would run through June 20 

### 30, 2018 and is in the process of considering proposed leasing guidelines. 21 22 

### Apparently unsatisfied and unwilling to await Council's consideration and approval of
23 

### new leasing guidelines for the Airport, Complainants are essentially seeking from the FAA 24 

### an orderforcing the CITY to lease its property to them for eight (8) more years until 2023. 25 

### However, Complainants have no "right" to be lessees at SMO for a specific and guaranteed 26 27 1Complainants relegate comments about CITY's obligationsunderthe 1948 Instrument ofTransfer 28 and Grant Assurance 23 to a footnote, which are obviously notissues for which Complainants are seeking redress 

### inthis Part 16 Complaint. As such, CITY simply states thatit disagrees with Complainants'positions onthese issues and will leave it atthatfor purposes ofthis proceeding.

41644 3 CITY OF SANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### length oftime in the future, whether it be for 1year, 3 years or 8 years. As a result, CITY's 2 

### leasing options and possible decisions in the future are subjects that should be and are well 3 

### beyond even the most liberal and expansive interpretations ofthe FAA's authority and 4 

### power to exercise control over airport sponsors. 5 6 

### NBAA's Complaint simply declares that the CITY has "made assertions" that its Grant Assurance obligations run only through 2014. Similarly, the Complaint declares that 7 

### the CITY has "adopted proposals" directing CITY staffto "plan to implement further 8 

### measures" and "consider" possible options for future activities and limitations at SMO. But 9 

### Part 16- an administrative enforcement mechanism- is not intended to afford advisory 10 

### opinions based on speculation or supposition as to an airport sponsor's plans for the future. 11 12 

### To the contrary, the Part 16 process is intended to address actual, current violations of Grant Assurance obligations and through it "the FAA may make a formal agency finding 13 

### regarding an airport sponsor's status ofcompliancewith its federal obligations." (Airport 14 

### Compliance Manual) Here, no violation has occurred, there is nothing for the FAA to 15 

### enforce, and CITY's compliance status- read, in compliance- is noticeably absent from 16 

### the Complaint. As a result, and for the reasons stated below, the Complaint should be 17 

### dismissed in its entirety with prejudice. 18 

### II. 19 20 

### CONCISE STATEMENT OF THE REASONS FOR SEEKING DISMISSAL
21 

### Pursuant to 14 C.F.R. §16.26(b)(1), CITY presents the following concise statement
22 

### ofthe reasons it is seeking dismissal ofthe Complaint. Based upon any one or 23 

### combination ofthe following, the FAA should dismiss NBAA's Complaint. 24 

### First, CITY seeks dismissal because the Complaint fails to state a claim that 25 

### warrants an investigation or further action by the FAA. In particular, the Complaint does not 26 

### set forth "the specific provisions" ofeach Act that NBAA contends has been violated; nor 27 

### does it identify any present violation of any enumerated GrantAssurance. 14 C.F.R 28 

### §16.23(b)(1).

41644 

### 4 CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETAL

### Second, CITY seeks dismissal because the Complainants lack standing. 2 

### Complainants have not alleged that they will be "directlyand substantially" 

### affected by any 3 

### alleged non-compliance. 14 C.F.R §16.23(a). Likewise, the Complaint fails to "[d]escribe 4 

### how the complainant[s] w[ere] directly and substantially affected by the things done or 5 

### omitted to be done by" CITY up to now. 14 C.F.R §16.23(b)(4). 6 7 

### Third, CITY seeks dismissal because the Administrator lacks jurisdiction to grant the
8 

### relief requested. As noted above, NBAA seeks an advisory opinion from the FAA as to 9 

### which ofthe several options the CITY is in the process of "considering" and "evaluating" 10 

### should be implemented in the future at SMO. Although Complainants would like the FAA to 11 

### commandeer control over CITY's leasing policies and options for the next 8 years, and 12 

### perhaps beyond, this is clearly NOT something the FAA has authority to do regardless of 13 

### the length oftime in the future that SMO will be operating as an airport. 14 15 

### Finally, CITY seeks dismissal because the Complainants have not engaged in "good 16 

### faith efforts to resolve the disputed matter informally" with the CITY. See 

### 14 C.F.R §16.21. 17 

### Complainants have not attempted "mediation, arbitration, orthe use of a dispute resolution 18 

### board, or other form of third party assistance." 

### /d. Complainants have alleged nothing 19 

### more than thatthey sent two letters over a three week period to the CITY. (See Complaint, 20 

### p. 9, paras. 31-34.) This is not initiating 

### or engaging 

### in good faith efforts to resolve the 21 22 

### disputed matter.
23 24 25 26 27 28 

### Ill. 

## FACTUAL BACKGROUND The CITY owns, and has always owned, SMO. The Airport's history began in the 1920's, when the CITY purchased undeveloped farmlands that included an airstrip. Over time, the Airport grew to its present size and configuration; and it became the home and manufacturing center for Douglas aircraft. Surrounding residential neighborhoods grew up 

### 5

41644 CITY OF SANTA MONICA'SMOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETAL1 

### around the Airport and very close to its runway ends. These neighborhoods provided the 2 

### housing for thousands of Douglas workers. 3 

### In 1941, the CITY leased the Airport to the United States in aid of the war effort and 4 

### to help protectthe Douglas factory; but the CITY retained its fee interest in the land. The 5 

### Federal government reconfigured the Airport and, together with the CITY, expanded it. In 6 7 

### 1948, after the war ended, the United States officially surrendered its leasehold interest to 8 

### the CITY. 9 

### In the post-waryears, with the advent ofjets and Douglas' departure from the CITY, 10 

### neighbors began protesting the Airport's adverse impacts. In 1975, to alleviate noise and 11 

### protect residents' quality of life, the CITY Council adopted noise limits, a night curfew, 12 

### various restrictions on high-impactflight training operations, a ban on helicopter operations, 13 

### and a jet ban. Litigation ensued. Ultimately, the United States District Court upheld all of 14 15 

### the ordinances exceptfor the jet ban, which was invalidated on constitutional grounds; and 16 

### the Ninth Circuit Court ofAppeals affirmed, recognizing that Federal law does not preempt 17 

### the CITY as "airport proprietor" from adopting ordinances intended to limit its own liability 18 

### and protect the CITY's "human environment". 19 

### While that litigation remained pending, the City Council adopted a new noise limit, its 20 

### enforcement was enjoined, and the City Council adopted a resolution declaring its intention 21 22 

### to close the Airport when legally possible. The then-pending litigation was settled with the
23 

### CITY 's promise to adopt a new Airport Master Plan and Noise Mitigation project. However,
24 

### airport users filed complaints with the FAA. The CITY and Federal government responded 25 

### by entering into negotiations about the Airport's future, which produced the 1984 Settlement 26 

### Agreement. By its own terms it resolved all then-pending disputes about the Airport and 27 28 

### obligated the CITY to operate the Airport until 2015.

41644 

### Afterthe lease to the Federal government ended, the CITY accepted federal grants 6 CITY OFSANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETALI 

### to fund Airport improvements; and the CITY leased parcels on the Airport land to various 2 

### tenants. In doing so, the CITY took care to ensure that all grant obligations and lease 3 

### terms ended in or before July 1, 2015, when the CITY would have no further obligation to 4 

### operate the Airport pursuant to the terms of the 1984 Settlement Agreement. 5 6 

### The last Grantthat the CITY accepted was for Project Number 3-06-0239-06,
7 

### conferred by Contract No. DTFA08-94-C-20857, which was executed on June 29, 1994. It
8 

### expressly provides that "the terms, conditions and assurances ofthe grant agreement shall 9 

### remain in full force and effect throughout the useful life ofthe facilities developed or IO 

### equipment acquired for an airport development or noise compatibility program project, or II 

### throughout the useful life ofthe project items installed within a facility under a noise I2 

### compatibility program project, but in any event not to exceed twenty (20) years from the I3 

### date ofthe acceptance of a grant offer of Federal funds for the project." (Please see Grant I4 I5 

### Agreement, Part V, Assurances, attached to this Motion as Exhibit "A") CITY accepted the I6 

### Grant in 1994, with the June 30, 2015 expiration date for the 1984 Settlement Agreement I7 

### specifically in mind. I8 

### This last Grant Agreement was amended twice. On November 8, 1999, the CITY I9 

### and the FAA executed "Amendment No. 1" to the GrantAgreement, using the same 20 

### contract number and project number as in the original Grant, solely to change the 2I 22 

### description ofthe "airport development" to be instituted underthe Grant Agreement. Then,
23 

### on August 27, 2003, CITY and the FAA executed "Amendment No.2" to the Grant 24 

### Agreement, again using the same contract number and project number as in the original 25 

### Grant, solely to increase the Grant amount by $240,600. This Amendment specifically 26 

### provides that "[alii other terms and conditions ofthe Grant Agreement remain in full force 27 28 

### and effect." (Please see Amendment No. 1and Amendment No. 2 to the Grant Agreement, collectively attached to this Motion as Exhibit "B") 

### 7

41644 CITY OF SANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESSAIRCRAFT ASSOCIATION, ETAL

### In recent years, the Airport has continued to spawn controversies. The CITY has 2 

### been involved in disputes with the aviation community and/orthe FAA over runway safety 3 

### and landing fees. Additionally, the CITY has defended multiple lawsuits and claims filed by 4 

### neighbors who have alleged that the Airport has endangered their health and safety, 5 

### among other complaints. 6 7 

### In December 2010, anticipating the expiration of the 1984 Settlement Agreement,
8 

### the City Council directed staffto proceed with a comprehensive public process regarding 9 

### the Airport's future. The process was designed to identify viable options between the 10 

### extremes of either maintaining the status quo at the Airport or moving towards full closure. II 

### Atthe conclusion ofthis three-phased "Visioning Process", an April 30, 2013 staff report to 12 

### Council summarized the findings of the process and recommended, among other things: 13 

### adoption ofa proposed Resolution revising SMO landing fees and applying them to all 14 15 

### aircraft as ofAugust 1, 2013; and, development of a City-funded pilot program for 16 

### retrofitting training aircraft with mufflers or other sound mitigation equipment. Council 17 

### approved these recommendations, and also directed staffto: continue identifying and 18 

### analyzing possibilities for current and future actions to reduce airport noise, air pollution 19 

### and safety risks through airport reconfiguration, revised leasing policies, voluntary 20 

### agreements, mandatory restrictions, and all other means; continue assessing the potential 21 

### risks and benefits of closing or attempting to close all or a portion ofthe Airport; and, return 22 23 

### to Council in 2014 with assessments so that Council could determine whether the CITY 24 

### should, afterthe expiration of its current obligations, implement additional changes to 25 

### reduce the Airport's adverse impacts and enhance its benefit to the community or pursue 26 

### closure of all or part ofthe Airport. 27 28 

### Though the Visioning Process report did not take a position on whetherthe CITY should pursue closure ofSMO atthe expiration ofthe 1984 Agreement, it did 8

41644 CITY OFSANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFTASSOCIATION,ET AL

### conclude that the Airport status quo was unacceptable to a majority ofthe CITY residents 2 

### who participated in the process. After the public hearing on April 30, 2013, the Airport 3 

### Commission, residents, neighbors and members ofthe aviation community continued to 4 

### express their views about SMO's operations and its future, both publicly and to CITY staff 5 

### and Council. 6 7 

### In October of2013, in order to clarify its rights to control the Airport land, the CITY
8 

### filed a lawsuit against the FAA to quiet title to the Airport land and also assert various 9 

### constitutional claims related to ownership and control ofthe land. The District Court 10 

### dismissed the action based on, among other things, its conclusion that the Court Jacked 11 

### jurisdiction over the quiet title claim and that the other claims were not ripe (because the 12 

### CITY had not acted to close the Airport). The CITY's appeal ofthis ruling is pending in the 13 

### Ninth Circuit. The expiration date ofthe grant assurances is not an issue in that litigation; 14 15 

### the District Court, having found it unnecessary to resolve the dispute, assumed for 16 

### purposes ofthe Motion only that the CITY was correct as to its interpretation ofthe 17 

### expiration date. 18 

### In March of 2014, staff returned to the City Council with further recommendations 19 

### regarding the future of SMO. (Please see City Council Staff Report dated March 25, 2014, 20 

### attached to the Complaint as Exhibit 6.) The Report recommended that the City Council 21 

### direct staffto: continue to pursue CITY control ofthe use of its airport land; begin 22 23 

### positioning the CITY for possible closure of all or part of SMO after July 1, 2015, including
24 

### the preparation of a preliminary conceptual plan for a smaller airport that excludes the 25 

### SMO's western parcel; continue to identify and undertake efforts by which the CITY might 26 

### reduce adverse impacts of SMO operations; increase efforts to ensure that the use of SMO 27 28 

### leaseholds is compatible with surrounding uses; revise leasing policies to maintain lease revenues at a level at which SMO would be self-sufficient and would not again burden the 9

41644 CITY OFSANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL

### CITY's General Fund; and continue receiving and assessing community input on 2 

### preferences and possibilities for the potential future use ofthe land. 3 

### After public comment and deliberation, Council added additional directions. 4 

### Specifically, the City Council directed staffto: offer to repay grantfunds to terminate the 5 

### contested obligations; complete contingency planning including work on a conceptual plan 6 7 

### for SMO's future while continuing to establish CITY control ofthe City-owned airport land;
8 

### offer to renew current leases for three years with one-year options thereafter at the CITY's 9 

### discretion; develop leasing guidelines sensitive to the environment and to remediation 10 

### needs and, once the guidelines are adopted, lease renewals and options should be 11 

### evaluated against the guidelines; evaluate options regarding fuel sales at SMO; and, 12 

### consider and allowtime to fulfill any obligations imposed upon CITY by the California 13 

### Environmental Quality Act (CEQA) in scheduling the exact time of its return to City Council. 14 15 

### Prior to the vote on the staff recommendations and the modifications thereto, 16 

### the City Council publically and expressly confirmed thatthey were not making any 17 

### final decisions about SMO's future. This position was reiterated by Deputy City Attorney 18 

### Ivan Campbell less than 2 months ago in his letter responding to Complainants' attorney 19 

### Richard Simon, when Mr. Campbell wrote "The City Council continues to consider the 20 

### Airport's future and to express concerns about the impacts on the health and safety of its 21 22 

### neighbors. But, the Council has made no decision aboutthe Airport's future." (Please see 23 

### Exhibit 12 to the Complaint) 24 

### On August 12, the City Council considered proposed leasing guidelines from staff, 25 

### but decided to seek additional inputfrom the Airport Commission and community before 26 

### making any decisions on them. Such proposed leasing guidelines do not suggest that 27 28 

### currenttenants at the Airport, including the Complainants, will not be offered new leases allowing them to remain at the Airport beyond June 30, 2015. On the contrary, such 

### 10

41644 CITY OFSANTAMONICA'S MOTION TODISMISS THEPART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### proposed leasing guidelines specifically contemplate leasing space to aviation and non2 

### aviation tenants beyond that date while the legal constraints on the CITY's authority to 3 

### control the Airport and Airport usage is resolved. (Please see certified copy of Staff Report 4 

### forAgenda Item 8-Afor the August 12, 2014 Santa Monica City Council Meeting, attached 5 

### to this Motion as Exhibit "C") 6 7 

### In summary, there have been no decisions made by the CITY as ofthe present time 8 

### that can be considered a violation of any Act or Grant Assurance, nor has the CITY failed to 9 

### take action that it is required to take under any Act or GrantAssurance. Instead, the CITY 10 

### continues to evaluate its options for the future ofthe Airport, while at the same time working II 

### to ameliorate SMO's negative impacts on surrounding neighborhoods, foster uses and 12 

### practices that are as environmentally friendly as possible underthe circumstances, and 13 

### make the Airport economically viable and self-sufficient. 14 15 

### IV. 16 

### THE FAA SHOULD EXERCISE ITS AUTHORITY AND DISMISS THE COMPLAINT 17 

### The Part 16 regulations establish that a respondent mayfile a motion to dismiss "[i]n 18 

### lieu of an answer". 14 C.F.R. §16.26(a). Such regulations specify three grounds for 19 

### mandatory dismissal of a complaint with prejudice: (1) the administrator lacks jurisdiction; 20 

### (2) the complainant lacks standing; and (3) thecomplaint fails to state a claim. See 

### 14 21 22 

### C.F.R. §16.26(b)(1)(i)-(iii). CITY believes and argues that under any or all ofthese grounds
23 

### the FAA should dismiss NBAA's Complaint with prejudice. Alternatively, the Complaint 24 

### should be dismissed because Complainants failed to initiate and engage in good faith 25 

### efforts to informally resolve the disputed matter as required by 14 C.F.R §16.21. 26 

### A. The Complaint Should Be Dismissed Because It Fails to State a Claim. 27 28 

### Part 16 provides a compliance enforcement mechanism. Thus, a Part 16 complaint must state "the specific provisions of each Act that the complainant believes were violated," 11

41644 CITY OF SANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETAL1 

### and must "[d]escribe how the complainant was directly and substantially affected by the 2 

### things done or omitted to be done by the respondents." 14 C.F.R §16.23(b)(1) and (4). 3 

### "Part 16 requires all relevant facts to be presented in the complaint documents." Moore v. 4 

### SumnerCounty RegionalAirportAuthority, 

### 2010 WL 10241036, FAA Docket No. 16-07-16 5 

### (July 13, 2010). "[l]n addressing allegations of noncompliance, the FAA will make a 6 7 

### determination as to whether an airport sponsor is currentlyin compliance with the 8 

### applicable federal obligations." Larry

### L. Davis v. Jackson MunicipalAirportAuthority, 

### 2011 9 

### WL 273404, FAA Docket No. 16-10-01 (Jan. 18, 2011) (emphasis in original). 10 

### NBAA's Complaint must be dismissed because it does not identify "the specific 11 

### provisions" that Complainants contend the CITY has violated. See 

### 14 C.F.R §16.23(b)(1). 12 

### Indeed, the Complaint does not identify any Actthat the CITY is currently violating. Nor 13 

### does the Complaint identify any particular Grant assurance that CITY is currently violating. 14 15 

### Instead, the Complaint alleges only that the CITY's "public announcements" implicate "the 16 

### validity and enforceability ofthe entire AlP Grant Assurance regime" by making assertions 17 

### about the duration ofthe CITY's grant obligations. These assertions are vague, 18 

### speculative, and notably hyperbolic. Making public statements about planning for the future 19 

### of SMO simply does not violate either statutes or grant obligations. 20 

### Indeed, the FAA has previously recognized and made clear that studying and 21 22 

### discussing possible future plans for an airport DOES NOT violate any Federal obligations.
23 

### "In fact, there is no Federal obligation which prevents an airport sponsorfrom studying the 24 

### feasibility offuture airport plans." Kenneth D. PaskarandFriends ofLaGuardia Airport v. 25 26 27 28 

### The PortAuthorityofNew York, 

### FAA Docket No. 16-11-04, Director's Determination, page 37. In Paskar, 

### the Director acknowledged and noted that "The FAA recognizes an airport sponsor's proprietary rights with regard to future airport planning. Airport sponsors retain the prerogative to develop their airports in any mannerthat meets their federal obligations 12

41644 CITY OFSANTA MONICA'S MOTION TODISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL

### and is consistent with the approved Airport Master Plan and Airport Layout plan for the 2 

### airport." (Citing Orange County SoaringAssociation Inc. v. Riverside County, 

### FAA Docket 3 

### No. 16-09-13, Director's Determination, page 25.) 4 

### The Complainants are seeking an improper "advisory" opinion based on speculation 5 

### about the CITY's plans. Maryland Casualty

### Co. v. Pacific Oil 

### Co., 312 U.S. 270, 273 (1941) 6 7 

### (The federal courts established pursuant to Article Ill ofthe Constitution do not render
8 

### advisory opinions. For adjudication of constitutional issues, 'concrete legal issues, 9 

### presented in actual cases, not abstractions,' are requisite."). Flast v. Cohen, 

### 392 U.S. 83, 10 

### 95 (1968) (no justiciable controversy is presented when the parties are asking for an 11 

### advisory opinion). Here, there simply is no concrete·dispute that is ripe for adjudication. 12 

### B. The Complaint Should Be Dismissed Because It Does Not Allege That the CITY 13 

### Has Taken Any Actions that Have "Directly and Substantially" Harmed 14 15 

### Complainants, And Therefore They Have No Standing To Bring The Complaint. 16 

### The Complaint must be dismissed because it does not allege that the CITY has
17 

### taken any actions that "directly and substantially" harm Complainants. See 

### 14 C.F.R 18 

### §16.23(b)(4) 19 

### It is axiomatic underfederal law that to have standing a party must be directly 20 

### affected. Hollingsworth v. Perry, 

### ---U.S.---, 133 S. Ct. 2652, 2662 (2013) (To have 21 22 

### standing, a litigant must seek relief for an injury that affects him in a "personal and
23 

### individual way."). Likewise, in order to have standing to file a complaint under 14 C.F.R 24 

### Part 16, a person must be "directly and substantially affected by any alleged non25 

### compliance." 14 C.F.R §16.23(a). 26 27 28 

### In this case, the Complaint fails because it lacks allegations of concrete harm to Complainants arising from CITY's actions. The allegations that "Complainants' businesses and operations already have been, currently are, and will continue to be adversely affected 13

41644 CITY OFSANTAMONICA'S MOTIONTO DISMISS THEPART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### by the City's repeated public announcements" concerning SMO's future are not only vague 2 

### and conclusory, but they are entirely unsupported in the Complaint and documents filed 3 

### therewith. On the contrary, and as Complainants recognize, the Santa Monica City Council 4 

### is considering new leasing guidelines as a part ofwhich tenants with leases set to expire on 5 

### June 30, 2015 would be offered three year extensions through the middle of 2018. 6 7 

### The assertion that such a provision would somehow be "contrary to the general 8 

### obligation of a sponsor to offer long-term leases to tenants" is unsupported by any 9 

### authority. In fact, there is authority which holds thatthe exact opposite is true. 

### In 10 

### Santa Monica AirportAssociation, eta/, v. CityofSanta Monica (hereinafter 

### "SMAA'), FAA 11 

### Docket No. 16-99-21, Director's Determination, page 21, the Director held that Santa 12 

### Monica did not have an obligation to extend long term leases given the language ofthe 13 

### 1984 SettlementAgreement: "it is reasonable thatthe City has not provided long-term, full 14 15 

### service FBO leases to Complainants[.]" Similarly, the Director found that "It would likely be 16 

### unreasonable for the Airport to be required to enter into a lease agreement with an FBO or 17 

### any aeronautical userthat would provide for the Airport to be operated as an airport beyond 18 

### July 1, 2015." The Director went so far as to state that "The FAA is unpersuaded that 19 

### month-to-month leases granted to Complainants as a result oftheir location on the airport 20 

### is an unreasonable condition on airport use." 21 22 

### In the 

### SMAA decision, the Director also recognized that there was no violation
23 

### where "complainants do not allege that the City has attempted or is attempting to terminate 24 

### their leases at the present time." Likewise, in the present case, the CITY is not attempting 25 

### to terminate Complainants' leases. Council has previously approved a policy ofgranting 26 

### three year extensions and is still in the process ofdeveloping leasing guidelines. There is 27 28 

### no evidence or even supportable contention that Complainants have been directly and substantially harmed by any actions ofthe CITY. 14

41644 CITY OFSANTA MONICA'S MOTIONTODISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFTASSOCIATION, ET AL

### The standing requirement ensures that the FAA's resources are not expended on 2 

### matters in which the Complainant's interest is insufficient to justifythe burden of processing 3 

### a Complaint under Part 16. Here, the Complainants' interest is insufficient, and scarce 4 

### public resources should not be expended when there are undoubtedly ripe and therefore 5 

### more pressing matters before the agency. 6 7 

### C. The Complaint Should Be Dismissed Because The Matter Sought To Be Resolved
8 

### Is Outside Of

### The Jurisdiction OfThe FAA Administrator. 9 

### The scope ofthe FAA's Part 16 jurisdiction is established by 14 C.F.R §16.1. 10 

### However, NBAA does not cite to any of §16.1's subsections to support its claim that the II 

### FAA has jurisdiction in this case based on existing facts. I2 

### The explanation is simple: the Complaint falls outside ofthe Part 16 jurisdiction of I3 

### the FAA Administrator. Not only does it involve the interpretation and determination ofthe 14 15 

### expiration date of a contract, but NBAA is seeking an advisory opinion as to the legality of 16 

### "possible" future conduct. It is seeking a determination that

## if the CITY does certain things
17 

### in the future it will violate its Grant conditions. This would be tantamountto a person being
I8 

### arrested for possession of marijuana because he is thinking ofobtaining some in the future 19 

### and does not believe that it should be illegal for him to do so, even though he is not in 20 

### possession of marijuana at the time of the arrest. 21 22 

### The Final Decision and Order in the 

### SMAA Part 16 proceeding, Docket No. 16-99-
23 

### 21, is instructive on this point as well. 

### In affirming the Director's decision to dismiss 24 

### that Complaint, the FAA Associate Administrator wrote: "The FAA understands that SMAA 25 

### is interested in establishing a record ofthe need for this Airport[
...]. While the FAA is 26 27 28 

### always supportive of protecting public airport assets, the purpose ofa Part 16 investigation process is to determinewhether or not an airport sponsor is in compliance with its Federal obligations in the current factual situation." (SMAA, Final Decision and Order, page 22.) 

### 15

41644 CITY OF SANTA MONICA'SMOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETAL1 

### (Emphasis added.) 2 

### The 1984 Settlement Agreement ensures that the status quo at the Airport will be 3 

### maintained at least until July 1, 2015. Litigation between the CITY and the Federal 4 

### government is pending and likely to continue well beyond that date. Likewise, all evidence 5 

### points to lease extensions for most if not all Complainants, and others, for at least several 6 7 

### more years beyond even that date. Any determinations made with regard to the instant s Part 16 Complaint, other than dismissal, will involve a prospective and hypothetical 9 

### exercise only, which should not take up the time and resources ofthe FAA. 10 

### D. The Complaint Should Be Dismissed Because Complainants Failed To Make A 11 

### Sufficient Good Faith Attempt At Informal Resolution Before Filing The Complaint. 12 

### The Complaint should be dismissed because Complainants have not engaged in 13 

### good faith efforts to informally resolve the disputed matterwith the CITY. See 

### 14 C.F.R 14 15 

### §16.21. ''Good faith" efforts at informal resolution may include "mediation, arbitration, orthe 16 

### use of a dispute resolution board, or other form ofthird party assistance." Good faith efforts 17 

### would not include asking the CITY to "renounce" its beliefthat the Grant obligations expire 18 

### in 2015, as the Complainants requested in their June 25, 2014 letter to Deputy City 19 

### Attorney Ivan Campbell. (Please see Exhibit 13 to the Complaint.) Even ifthe CITY were 20 

### to do this, it would not allow Complainants "to understand and plan for the future", their 21 22 

### alleged concern in their June 11, 2014 letterto the CITY (please see Exhibit 11 to the · 23 

### Complaint), given that such a renunciation would not guaranty thatthe Complainants would 24 

### be offered tenancies at SMO until 2023, or even beyond 2015. 25 26 27 28 

### Complainants have not attempted "mediation, arbitration, or the use of a dispute resolution board, or other form ofthird party assistance." /d. 

### Complainants have alleged nothing more than that they sent two letters over a three week period to the CITY. (See 

### Compl.**~~** 

### 31-34.) This is not initiating 

### or engaging 

### in good faith efforts to resolve the 16

41644 CITY OF SANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFTASSOCIATION, ETAL1 

### disputed matter. 2 

### Despite its belief as to the expiration date ofthe Grant obligations, the City Council 3 

### has not yet made any decisions about SMO's future or even about its leasing policy and 4 

### guidelines, which are still under consideration. The public process on the future of SMO is 5 

### continuing. Complainants and their representatives have been and can continue to be a 6 7 

### part ofthat public process if they so choose. 8 

## v. 9 

### CONCLUSION 10 

### Complainants want more than the law and regulations allow. They want the FAA to 11 

### exceed its authority, which, in the context ofthis Part 16 proceeding, is limited to ensuring 12 

### that CITY is presently in compliance with its Grant obligations to make SMO available for 13 

### aeronautical use on reasonable terms and without unjust discrimination- which there is no 14 15 

### doubt but that it is. Complainants say they want to be able "to understand and plan for the 16 

### future". Such a desire is common. However, Part 16 is not a procedure for obtaining 17 

### advisory opinions about the future, orfor establishing lease terms. The FAA need not 18 

### address in this proceeding the issue ofwhether the CITY's Grant obligations expire in 2015 19 

### or 2023; rather, the questions which the FAA can and should answer are whetherthe 20 

### Complaint states a valid claim and whether the Complainants have standing to make it. 21 22 

### Complainants cannot establish a right to long-term leases at SMO or even a right to 23 

### the future certainty that they would like to have. They are simply not entitled to any relief 24 

### from the FAA in this proceeding. As such, and for all ofthe foregoing reasons, CITY 25 

### respectfully requests that the Director grant this Motion and dismiss the Complaint with 26 

### prejudice. 27 28

41644 

### 17 CITY OF SANTAMONICA'S MOTION TODISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESSAIRCRAFT ASSOCIATION, ETAL2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 

### Dated: August 14, 2014

41644 

### 18 

### Attorneys for Respondent City of Santa Monica

CITY OFSANTA MONICA'S MOTIONTODISMISS THE PART 16 COMPLAINTOF NATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL

# EXHIBIT 'A',,.,.. .

**~,**

TO: FROM: DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, D.C. 20590 GRANT AGREEMENT Part I - Offer

Date of Offer 

## JUN 2 7 1994 santa Monica Municipal Airport/Planning Area Project No. 3-06-0239-06 Contract No. DTFA08-94-C-20857

City of Santa Monica, California (herein called the "Sponsor") The United States of America (acting through the Federal Aviation Administration, herein called "FAA") WHEREAS, ·the Sponsor has submitted to the FAA a Project Application dated June 2, 1994, for a grant of Federal funds for a project at or associated with Santa Monica Municipal Airport/Planning Area which Project Application, as approved by the FAA, is hereby incorporated herein and made a part hereof; and WHEREAS, the FAA has approved a project for the Airport or Planning Area (herein called the "Project") consisting of the following 1 Pave infield areas; Install runway distance remaining signs and guidance signs and flush mounted taxiway lights; Seal and mark north ·and south·parallel taxiways and parking aprons; Construct maintenance run-up enclosure; refurbish airport beacon; realign west perimet"er road; Construct blast walls -Phase 2; Install perimeter fence including gates,
ell as more particularly described in the Project Application
.



## •

Page 1 of 5 Pages 

## I" NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of the Airport and Ainfay Improvement Act of .1982, as amended by the Airport and Ainfay Safety and Capacity Expansion Act of 1987, herein called the "Act", and/or the Aviation Safety and Noise Abatement of 1979, and in consideration of (a) the Sponsor's adoption and ratification of the presentations and assurances contained in said Project Application and its acceptance of this Offer as hereinafter provided, and (b) the"benefits to accrue to the United States and the public from the accomplishment of the Project and compliance with the assurances and conditions as herein,provided. THE FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES to pay, as the United States share of the "allowable costs incurred in accomplishing the Project, 90.00 percentum. The Offer is made on and subject to the following terms and conditions: Conditions 1. The maximum obligation of the United States payable under this offer shall be $1,604,700.00. For the purpose of any future grant amendments which may increase the foregoing maximum obligation of the United States under the provisions of Section 512(b) of the Act, the following amounts are being specified for this purpose: $0 "$1,604,700.00 for planning for airport development or noise program implementation 2. The allowable costs of the project shall not include any costs determined by the FAA to be ineligible for consideration as to allowability under the Act
.. 3. Payment of the United States share of the allowable project costs will be made pursuant to and in accordance with the provisions of such regulations and procedures as the Secretary shall prescribe. Final determination of the United States share will be based upon the final audit of the total amount of the allowable project costs and settlement will be made for any upward or downward adjustments to the Federal share of costs, 4. The Sponsor shall carry out and complete the project without undue delays and in accordance with the terms hereof, and such regulations and procedures as the Secretary shall prescribe, and agrees to comply with the assurances which were made part of the project application. 5. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Sponsor. 6. This offer shall expire and the United States shall not be obligated to pay any part of the costs of the project unless this offer has been accepted by the Sponsor on or before June 30, 1994, or such subsequent date as may be prescribed in writing by the FAA. 7. The Sponsor shall take all steps, including litigation if necessary, to recover Federal funds spent fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in any other manner in any project upon which Federal funds have been expended. For the purposes of this Grant Agreement, the term "Federal funds" means funds however used or disbursed by the Sponsor that were originally paid pursuant to this or any other Federal grant agreement. It shall obtain the approval of the Secretary as to any determination of the amount of the Federal share of funds. It shall return the recovered Federal share, including funds recovered by settlement, order, or judgement, to the Secretary. It shall furnish"to the Secretary, upon request, Page 2 of 5 Pagesall documents and records pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or other efforts taken to recover such funds, All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such Federal share shall be approved in advance by the Secretary. 8. The United States shall not be responsible or liable for damage to property or injury to persons which may arise from, or be incident to, compliance with. this Grant-Agreement, 9. It is understood and agreed by and between the parties hereto that this Grant Offer is made and accepted upon the basis of Engineer's estimate; and the parties hereby Covenant and agree that within 160 calendar days from the date of acceptance of this Grant Offer the Sponsor shall furnish final plans and specifications ·to the Federal Aviation Administration (FAA) and that no construction work will commenCe hereunder nor will there be any advertisement for bids for accomplishment of such work until the said final plans and specifications have been approved by the FAA; and the parties do hereby Covenant and agree that any reference made in this Grant Offer or in the aforesaid Project Application to plans and specifications shall be considered as having reference to said final plans and specifications as so approved. 10. Buy American Requirement. Unless otherwise approved by the FAA, it will not acquire or .permit any contractor or subcontractor to acquire any steel or manufactured products produced outside the United States to be used for eny projects for airport development or noise compatibility for which funds ere provided under this grant. The sponsor <rill include in every contract a provision implementing this special condition. 11. The Sponsor agrees to perform the following: 11.1. Furnish a construction management program to FAA prior to start of construction which shall detail the measures and procedures to be used to comply with the quality control provisions of the construction contract, including, but not limited to, all quality control provisions and tests required by the Federal specifications. The program shall include as a minl.mumt 11.1.a. The name of the person representing the Sponsor who has overall responsibility for contract administration for the project and the authority to take necessary actions to comply with the contract. 11.1.b. Names of tesdng laboratories and consulting engineer firms with quality control responsibilities on the project, together with the description of the services provided. 11.1.c. Procedures for determining that testing laboratories to meet the requirements of the applicable American Society of Testing Material's standards on laboratory evaluation, referenced in the contract specifications (D 3666, C 1077). ll.l.d. Qualifications a£ engineering supervision and construction inspection personnel. ll.l.e. A listing o£ all tests required by the contract specifications, including the type and frequency of tests to be taken, the method of sampling, the applicable test standard, and the acceptance criteria or tolerances permitted for each type of test. Page 3 of 5 Pages·.•

ll.l.f. Procedures for ensuring that the tests axe taken in accordance with the program, that they·are documented daily, that the proper corrective acti.ons, where necessary, are undertaken. 11.2. Submit at completion of the project, a final test and quality control report documenting the results of all tests performed, highlighting those tests performed, highlighting those tests that failed or did not meet the applicable standard. The report shall include the pay reductions applied arid reasons for accepting any out-of-tolerance material. An interim test and quality control report shall be submitted, if requested· by the FAA. 11.3, Failure to provide a complete report as. described in paragraph 12.2; or failure to perform such tests, shall, absent any compelling justification, result in a reduction in Federal participation for costs incurred in connection with construction of the applicahle pavement. Such reductions shall be at the discretion of the FAA and will be based on the type or types of required tests not performed or not documented and will be commensurate with the proportion of applicable pavement with respect to the total pavement constructed under the grant agreement. 11.4. The FAA, at its discretion, reserves the right to conduct independent tests and to reduce grant payments accordingly if .such independent tests determine that sponsor test resu1ts are inaccurate. 12. The attached new Part V Assurances are hereby incorporated hereto, and hereby substituted in lieu of those in the Sponsor's Project Application, and made a part hereof.

Page 4 of 5 PagesThe Sponsor's acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall·be evidenced by execution of this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance shall comprise a Grant Agreement, as provided by the Act, constituting the contractual obligations and rights of the United States and the Sponsor with respect to the accomplishment of·tha'Project and compliance with the assurances and conditions as ·provided herein. Such Grant Agreement shall become effective upon the Sponsor's

acceptance of this Offer.

Bys

Part II - Acceptance P. Milligan, Supervisor Standards Section

The sponsor does hereby ratify and adopt all assurances, statements, representations, \•Jat'ranties, covenants, and agreements contained in the Projec.t Application and incorporated materials referred to in the foregoing Offer and does hereby accept this Offer and by such acceptance agrees to comply with all of the terms and conditions in this Offer and in the Project Application. Executed this 29th

(SEAL)

Title: City Clerk day of 

## _ ____,J_,un"""e'-------, 1994.

By: City of Santa Monica, California Name of Sponsor



# ~~ Sponsor's Designated Official Representative Title: City Manager

CERTIFICATE OF SPONSOR'S ATTORNEY 

### l,

___ M
__

ar __

s_h_a
__ J
__

.__

M_o_u_t_ri_._e
_______ , acting as Attorney for the Sponsor do hereby certify: That in my opinion the Sponsor is empowered to enter .into the foregoing Grant Agreement under the laws of the State of California. Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor relating thereto, and find that the acc.eptance thereof by said Sponsor and Sponsor's official representative has been duly authorized and the execution thereof is in all respects due and proper and in accordance with the laws of the said State and the Act. In addition, for grants involving projects to be_ carried out on property not mmed by the Sponsor, there are no legal impediments that will prevent full performance by the Sponsor. Further, ·it is my opinion that the said Gra)lt Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof. Dated at Santa.Monica, CA this Z9thday of

Page 5 of 5 Pages

### APPLICATION FOR 

### ' z. DATE SUIJ.MrnED**~** Identifier 

### FEDERAL ASSISTANCE 

### 6/15/93 f. TYPE Ofl' IU8MISS10H: '·DATE llEct:IVED-IIVtTATE sut•Application ldentH;o. !.&Jplic&rlon PrsiiJp/ic•tlon [X) Construction 0 CorlllrvcUon

...DATU REC!l'VED BY f'£Df:RA.L M!NCY Fodtflll 5d.ent1Hur 

## .... 3-:.06-0239-06 0 Non-Conslruetion 0 Non-<:onstruotlon 

### AlP S. APPt.ICAHT INFORUA.nOH U!Qal Name; Org.aniutloo.al Unit: 

### Ci t.v of Santa Monica Santa Monica.Municipal Airport**Addr~t$-t** (giWJ city, c;o.unty, JW9, .ndzip cod9): Name and WJepOone niJmbec of the person.to be contiiCttd on**matt«~** irwolving 

### 3223 Donald Douglas Loop South this**applle~~lion (givt~ana**  cods) · 

### Santa Monica, CA 90405-3279 Timothy A. 1'/alsh (31 0) 458-8591 (Los Angeles County) S. !MPJ..OYEA IOENTlFJCAnON NlJMilER (EIH): 1. 1'IP!Of' AHIJ<W<T: (on!Or oppropri110 lottor In box) 

### I!J 

### 19 

### I 51-16 

# I a

# I0 

# I0

# I 7

# I9 

# Io

# I A. SUit H. lndepondonl $:hoo! DiS!. B. County I. SUit.COntroUod 1nst1M1on ol H;ghof leamlr>Q I. TYPE OF .A.PPL.teAnoN: 

### c. l.lunlclp.tl J. Privott\.Jnlw!$1ty c. ToWNhip K. Indian Tribe i]·Naw · 

### 0 COnllnUJtlon 

### 0**~den** "· lnlt<Jtolt L lndMd<UII t1**~on,** .nter 1pproprial•**~tt~r(J)** In box{es): 

## 0 . 0 F. lntormunlelpal tJ. Profit Ofganization G. Spo.:lal C!ltrlct N. Other (Spoclfy): A. tncru.se Award B. Decrease Award C. lneraate Duration 0. OeerU$8 Duration Olhe< (<peclly): t. H..UI! OFf£Dt:RA1. AO.!NCV': 

### Federal Aviation Administration 10. CATA.t..OG OF JI'EDERA.l. DOM!"ST1C 

# 12 I o

# 1. 1 

# Io 

# 16**~1.** 0£sc.q1PTIV£ trn.E OfAHUCAHT'ti PROJECT:**~** .U.SIST.\HCE NUMBEA: 

### Blast walls; fencing/gates;- perimeter road

. 'T!ll..E: 

### alignment; repair taxiways and aprons, 1 ighting/signing; aircraft run-up enclosure; pave 12. ARLUii AfP'ECT!D BY PROJECT (citles. countfel, state.s. •tc.): 

### infield areas; and refurbish rotating beacon. City of Santa !·1onica and. Los Angeles County, California
U. PROPOSEO.PROJECT: ,•• CONO'IESSIONAl. DISTRICTS OF: SUJrl Oate Ending Date •- App'icant 

## lb. Prcja<t 

### July 1994 Sept. i 

### 995 ·28th 28th l 15. EUIWATED FUNDiNG: 11.1t. AP1'1.1CI.t10H SUBJECT' TO f!;EVJEW IV'STATE !XECUTlVE ORG£R 1U71 PftOCES$1 e. Flderal. $ 

### 1,604,700 .00 

# •• ·YES THIS PREAPPLlCATIOWAPPI.ICAllON WAS I.IADE AVAILABLE TO THE STATE EXEWT1VE ORDER 12372 PROCESS FOR ReVIEW ON: b. .Applicant 

# • ·----- 

### 178,300 .oo 6/15/93 CATE
c. State 

# ' .00 NO.O 

## b PRClGRAM IS NOT COVERED BY E.O. 12372 d. l.oc&l 

# • .00 

## 0 

# ... OR PROGAAI.I HAS NOT BEEN SE!.ECTEC Ill' STATE FDA REVIEW •. 01,., I .00 f. Program lni;Omtl 

# • .00 17, tlTHE APPUC.AHT D£UMOUENT OH/I.H'fFEOEAAL DOT1'
. "
g TOTAl. 

# • 1,783,000.00 

# .o Y&t ' If "'Yt:t,• attiCh en**exp{ln~tion.** 

### IX] No
11. TO ntE lESTOF NY KNOWUDQ! AHCI lli,.IEF,ALL DA.TA tN Tt!IS AHLJe4,TIONIPRE»'PP.telnoN**~E** TftUE AND CORIIECT, TK£ tiOCUW!NTfiA;' l££H DU1.Y AVTHOAI.nD B'r' THE QOVERNIHO 60DY OF lltE APPUCA.Hl' AND THE .AP9LICAHTWJU CCloMP'LY wmt THE ATrACH£0 AUUIU.HC!S lfTHE .UJI$TAWC"E IS AWAROf!D
•· Typod Name of-Authodz1td Repruentative 

# I b. Titk! c. TMphooo nUmbet 

### John Jalili City Manaqer (31

# of 458-8301 d.**~Mture** of Authorized ReprQ&ntalive •· o.te s.gnee

# ~**;f~** 06/02/94 ....,av10us t:.c1111011s Not Us.able _::ttandard. r::orm**.".~' ~** **IR~~v** .C·8-8) Authorized for 'Local Reproduction' U.S, DEPARTMENT OF TRANSPORTATION •_JERAL AVIATION ADM!N!STRATlON OMS NO, 80..R0184 

### PART II PROJECT APPROVAL INFORMATION SECTION A Item l. Does this assistance request require Stoh3: 1 local, regional, or other

**priori~y** rating? Yes Item 2. Does this- assistance request require State, or local advisory, educational or hea!th clearances? No Nome of Governing Body-------------- Priority Rating

**---------------~--**
Nome ofAgency or

Boord __________________ _ Yes 

### X No (Attach Documentation) Item 3. Does this assistance request require clearinghouse review (Attach Comments) in accordance with OMB Circular A-95? X

___Yes--- No Item 4. local, Does this assistance request requi-re State, regional or other planning approval?



### __ X"-- Yes ---,- No Item 5. Is the propo·sed proiect covered by an approved comprehensive p·Jan? Nome of Approving Agency 

### Southern Ca1

### ifornia Dote 

### Association of Governments

Check one: Stole 

### 0 Local 

### llO Regional 

### 0 X Yes
___No 

### L ocotion of p1 on ___ 

### _,C'-'i-'t".Ly-"o-'"f_S"'a..,n_,_t.,a,__,_M,o""n'-'i""c,a
__ Item 6. Will the assistance requested serve a Federal Name of Federal Installation------------ instollation? Yes_....a_No Federal Population benefiting from Project______ _ Item 7. Will the assistance requested be on Federal land or installation? Nome of Federollnstollation_. ___________ _ Location of Federol Land_____________ _

___Yes--A-No Percent of Project---------------- Item 8. Will the assistance requested hove an impact or effect on the environment? 

### X

___Yes
___No Item 9. Will the assistance reqUested cause .the displacement of individuals families, businesses, or farms? Yes X Item 10. Is there other related Federal assistance on this proiect previous, pending, or anticipated? Yes 

### X No

No See instruction for

**add~tional** information to be provided.
Number of: ·

Individuals Families Businesses Farms See instructions for additional information to be provided.

FAA Form 5100.100 {6·73) SUPERSEDES FAA FORM 5100·10 PAGES I THRU 7 Pogo 2DEPARTMENT OF TRANSPORTATION- FEDERAL

**AVIATI~N** ADMINISTRATION OMB NO, 04·R0209 

### PART 

## IT- SECTION C
The Sponsor hereby represents and certifies as follows; I. Compatible Land Use.-The Sponsor has taken' the following actions to assure compatible usage of land adjacent to or in the vicinity

**o~** the airport:
. The Airport Layout Plan shifts a

**substanti~l** portion of

**ae~onautic~l·** services.from the southside of the Airport to the norths1de
.. The

**norths1d~** prov1des

**~ompat1b:e** land use adjacent to airport operations that the so.uthside d1d not prov1de, Th1s action has significantly decreased the impact of aircraft noise and fumes on the noncompatible land use adjacent to the Airport.

2. Defaults.-The Sponsor is not in defaulton any obligation tathe United States or any agency ofthe United States Govern**me~t** relative to the development, operation,ormaintenance ofany airport, except as stated herewith: .

None

3. Possible Disabiiities.-There are no facts or circumstances (including the existence of effective or proposed le.ases, use

**agree~ents** or other legal instruments affecting use oftbe Airport or the existence ofpendinglitigation orother legal proceedings) which in reasonable 'probability might make it impossible for the Sponsor to carry out and complete'the Pro/·ect or carry out the provisions ofPart V ofthis Application, either bylimiting its legal or financial ability or other-wise, except as fo lows:

None

4.- Land.-{a) The Sponsor holds the following property interest in the following areas of land* which are to be developed or used as part of or ·in connection with the Airport, sUbject to the following exceptions, encumbrances, and adverse interests,

. all ofwhich

**are~s** are identified on the aforemention.ed property map designated as Exhibit HA": The City of Santa Monica has title'in fee to arl property indicated on the Property Map, "Exhibit A" (refer·to the Preapplication submitted June 

### 16, 1993). Easements to.the Southern California Edison Company, General Telephone Company, Southern Counties Gas Company, and Los Angeles County Flood Control District are identified on Exhibit A and do not affect the proposed projects.
*State character ofproperty interest in each area and listand identifyfor each .allexceptions, encumbrance-s, andadverse interests ofevery kind and

**~~;ature,_** including liens, easements, leases, etc, The separate areas ofland need only be identified here by the area

**numbe~s** shown on theproperty map. FAA Form 5100-100 14·761 Page 3a
.DEPARTMENT OF TRA_NSPORTATION - FEDERAL AVIATION ADMINI.STRATION OMS NO. 04·R0209
PART II- SECTION C (Continued)
The Sponsor further certifies that the above is based on a title examination by a qualified attorney or title company and that such attorney or title con'l.pany has determined thai the Spons'or holds the above property interests, (b) The Sponsor will

**acquir~** within a reason"able time, but in any event prior to the start of any construction work under

.the Project, the followirig property interest in the following areas of land* on which such construction wofk is to beperformed, all ofwhich areas are identifiedon the aforementioned property map designated as Exhibit uA,: None

(c) The Sponsor will acquire within a reasonable time, and if feasible prior to the completion ofall constructiOn work under the Project, the following property i.nterest in the following areas of land* which are to he developed or used as part of or in connection with the Airport as it will be .upon completion of the Project, all of which areas are identified on the aforementioned property map designated as Exhibit "A 11 : None

5, Exclusive Rights.-There is no grant of an exclusive rightJorthe conductofany aeroMutieal activity at any airport owned or controlled by the Sponsor except asJollows: . None

*State character of property interest in. each area and list and identifyfor each all eXceptions, encumbrances, andadverse interests ofevery kind and nature, including liens, easements, leases, etc. The separate areas ofland need only be identified here by the area numbers·shown on theproperty map. FAA Form 5100-100 (4-761 Pags 3b FAAAC 81{)6913DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATI N 

# . 0 OMB NO 80 R0184 

### PART Ill- BUDGET INFORMATION- CONSTRUCTION SECTION A - GENERAL 1. Federal Domestic Assistance Catalog No., , , . , , , , , ; , , 

### 20.106 2, Functional or Other Breakout , , , , , , , , , , • , , , , , , , , , 

### SECTION B- CALCULATION OF FEDERAL GRANT
':,

**--~-** .. - _**U:;,~J** o_n_l_y for

**r~;~vislons** Total Cost C!assificotion Amount Latest Approved Adjustment· Re.:;vli"ed Amount tor(-) 1. Administration expense 

## s $ 

## s 10,000,00 2. Preliminary expense 

### 30 000.00 3 •. Land,structures, right-of-way ' 

### -0- •: · 4. Architectural engineering gasic lees 

### ' 120,000.00

5. Other architectural engineering lees 

### -0-



### . 6. Project inspection fees 

### 143,000,00 7. Land development 

### -0- 8. Relocation Expenses 

### -0- 9. Relocation payments to Individuals and Businesses 

### -0- 10. Demolition and removal 

### -0- 11. Construction and project-improvement 

### 1 480 000.00 12. Equipment · 

### -0- 13. Miscellaneous 

### -0- 14. Total (Lines 11hrough 13) 

### 1 783 000.00 15. Estimated Income (if applicable) 

### -0- 16. Net Project Amount (Line 14 minus 15) 

### 1'783'000.00 17. Less: Ineligible

**Exclusio~s** 

### -0- 18. Add: Contingencies 

### -0- 19. Total Project Amt. (Excluding Rehabilitation Grants) 

### 1'783,000.00 2D. Federal Share requested of Line 19 

### 1.604.700 00 21. Add Rehabilitation Grants Requested (!00 Percent) 

## -n22. Total Federal grant requested (Lines 20 &21) 

### 1,604,700.00 23. Grantee share 

### 178,300.00 24. Other shares

**~~--** -- **-o~** 25. Total project (Lines 22, 23 &24) 

## s 

## s s 1,783,000.00 FAA Form 5100-100 (613) SUPERSEDES FAA FORM 5100-10 PAGES f THRU 7 Page4.DEPARTMENT OF TRAN.SPORTATION- FEDERAL AVIATION AOMJNJSTRATION OMa NO to Rou.- SECTION 

### C- EXCLUSIONS

---- .

Clo:u.iflc?rion**lnw;ligi~l·** rQr**E~<c!..,Q.,d** from Potr;c:**ipo:;~t** ion Contingency**Pro:;~**...bion 26 Ill til


# .. $ $ 

# •

.· 

### '·

. d•



# .. '·

. 

## ,.**Toto:;~**Is $ s SECTION D

- PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE 27. Grantee Share 

## s 178,300.00 a. Securities



### .. 

# . b. Mortgages c. Appropriations (By Applicant) d. Bonds e. Tax L?vies f. Non Cash g. Other(Explain] ' h. TOTAL- Grantee share 

### 178,300.00 28. OtherShares a. State b. other c. Total Oth81 Shares 29. TOTAL 

## s 178,300.00 SECTION E

- REMARKS 

### p Part V Assurances are 'incorporated herein. 

## p Title VI DOT Assurances are incorporated herein. p "Exhibit A", Property Map; is incorporated by reference (see ?reapplication submitted June 16, 1993). 

# p Plans and Specifications for AIP 3-06-0239-06 are incorporated by reference. PART IV PROGRAM NARRATIVE_(AttocJ, See Instructions) FAA form 5100-100 (S-731 SUPERSEDES FAA FORM Sl00.10 PAGES 1 THRU 7 Page 5

### PARTIV- PROGRAMNARRATIVE APPLICATIONFORFEDERAL ASSISTANCE SANTAMONICA AIRPORT

SantaMonica, California AlP Project No. 3-06-0239-06 

### Project 1- Blast Walls

- Phase II Aircraftbastfromjets departing on Runway 3-21 has become anincreasing problem at SantaMonica Airport. Phase I ofthe BlastWallProjectplacedwalls nearthe departure run up areas. The walls have effectively prevented debris from blowing across roadways andintoresidential areas. Phase II ofthe BlastWall Project will prevent and deflect the high velocityblast ofdeparting aircraftfrom reachingthe residential areas east oftherunway end. This will provide significantrelief to those affectedbythe aircraftblast. 

### Project 2

- Fencing and Gates

- PhaseII Runway incursions continueto be a problem at SantaMonica, requiringfurther restrictions on access. ThePhase I Access Control Project involvedthe installation of six (6)access control gates andperimeterfencing. Additional signage, road closures, restrictions to access, and education ofusers have.reduced thenumber ofrunway incursions. Further actions are required, includingthe installation additional access control gates andfencing. 

### Project 3- 

### PerimeterRoad Realignment ! 

### The circulation ofvehicles on theAirport's airside has caused significant safety problems over the past several years. Numerous improvements havebeenmade toreduce runwayincursions and vehicle and aircraftconflicts includingthe installation of anFAA access control project. With all ofthe improvements, runway incursions continue to be a significantproblem. To complete the safety improvements, the Cityproposed to realignthe westperimeterroad to connect with Airport Avenue. This will greatly enhance safety byredirecting vehicles outside the air opemtions area. 

### Project 4- Repair, Seal Coat, and Mark ExistingTaxiways This project consists of a crack seal and seal coat ofthe existing north and south parallel taxiways. The condition oftb,e taxiways at theAirport has deteriorated because offrequent use by largebusinessjet aircraft. Some ofthetaxiway pavementis part ofthe originalrunwaybuiltin 1942. Numerous longitudinal cracks exist on thetaxiway. Somereconstructionwillbe required inisolated areas where structural failures have occurred because ofthe larger aircraftusing the facility. Page 1 of 3

## ., Project 5 - Lighting and Signing This project consists ofthe installationofrunway distance remainingmarkers that are neededby largebusinessjets requiringthefull runway length. Additionally, guidance signs areto be installedto define therunwaybetter andto preventrunwayincursions. The final component ofthis projectis to recess taxiway lights inthose areas where above-ground lights arerepeatedly struck by aircraftmaneuvering on the ground. Project 

### 6- Repair, Seal Coat and MarkExisting Parking Aprons

- Phase II This project consist of a follow-up to the original project submitted aspart ofthe AIP-04 projectin 1988. The aircraftparking aprons havepermanentlybeen established as a result ofthe significantchangethat occurredin 1986 whenthe aeronautical activities weremoved from the southsideto the northside ofthe Airport. As 

# aresult, some ofthe Cityparking areas require crack repair, seal coat, andtiedownreconfiguration. An

### increase in aircrafttiedown capacity will result with thereconfiguration ofthe aprons. Project 7 - Aircraft MaintenanceRunup Enclosure Aircraftrunup noisefor maintenanceinspections hasbecome anincreasing problem aturban airports like SantaMonica. The amount ofspace allocated on the Airport to conductthese operations safely and with as little intrusionto the surroui).ding neighborhoods has become increasingly difficult. The maintenance run up enclosure is requiredto abate the increasingnumber ofturbine engine runups atthe Airport as this segmentof Santa Monica's trafficincreases. The maintenance runup enclosure will handlebusinessjet aircraft with up to 60-foot wing spans. Project 8 - Pave InfieldAreas The infield areas betweenthenorth and southparallel taxiways andtherunway presently consist ofoiled nativematerial. These areas have deteriorated, causing drainageproblems and debris thatis blown onto the runwaybyjetblasts. Project 8 will cap these areas with asphaltto eliminate ch·ainage andFODproblems now being experienced. Project 9 - RefurbishRotating Beacon Thepresent airport

**r~tating** 

### beacon is low-powered and difficultto see at night or inlow visibility in the Los Angeles Basin. The beacon is over 40 years old andis in need ofreplacement. Additionally, the existing tower needspainting and repairs. Page 2 of 3

### SANTA MONICA AIRPORT AlP 3-06-0239-06 PROJECT COST SUMMARY Total Federal Local Project Cost Share Share



## ., Blast Walls

- Phase II 

### $ 330,000 

### $ 297,000 

### $ 33,000 Fencing/Gates 

### 111,111 100,000 11,111 PerimeterRoad Realignment 

### 311,000 279,900 31,100 Repair, Seal, andMark Taxiways 

### 202,000 181,800 20,200 Lighting and Signing 

### 63,889 57,500 6,389 Repair, Seal, and Mark Aprons 

### 220,000 198,000 22,000 AircraftMaintenance Runup Enclosure 

### 385,000 346,500 38,500 Pave InfieldAreas 

### 125,000 112,500 12,500 Refurbish Rotating Beacon 

### 35.000 31.500 3.500 TOTAL $1,783,000 $1,604,700 $178,300

Page 3 of 3A. General PARTY A,SSURANCES AirportSponsors

October 1, 1990 ]Incorporatesrevisions ofAssurances 9and26 (11/04/92)]

1. These assurances shall be compliedwith in the performance ofgrant agreements for airport development, airport planning, and noise compatibilityprogram,grants to airport sponsors. 

# . . . ' ' . 2. These assurances are required to be submitted'aspart ofthe**p~oject** application by sponsors requestingfunds under the provisions ofthe Airport and Airway ImprovementAct of 1982, as amended by theAirport and Airway Safety and CapacityExpansionAct of1987, or the Aviation Safety andNoise Abatement Act of 1979. As used herein, theterm, "public agency sponsor" means a public agencywith control ofapublic use airport; the term "private sponsor" means aprivate sponsor ofapublicuse airport; and the term '1sponsoru includes public agencysponsorS·and private sponsors. 3. Upon acceptance ofthegrant offer by the sponsor, these assurances areincorporatedin andbecome partofthe grant agreement.. B. Duration and Applicabll!ty. 1. Airport Development orNoise CompatibilityProgram Projects Undertaken by a Public Agency Sponsor. Tlieterms, conditions and assurances ofthe grant agreement shall remainin full force and effect throughout the usefullife ofthe facilities developed or equipment acquired for an airport development ornoise cOJ11patibilityprogramproject; orthro'ughout theusefullife oftheproject items installedwithin afacilityunder a noise compatibilityprogramproject, but in any eventnot to exceed twenty (20) years from the date ofthe acceptance ofa grant offer ofFederalfunds for the project. However,there shallbeno limit on the duration ofthe .Ssurance against exclusive rights or the terms, conditions, and assurances with respect to realproperty acquiredwith Federal funds. Furthermore, the duration ofthe CivilRights assurances shall be as specifiedinthe assurance. 

## z. Airpor! Development orNoise CompatibilityProgram Projects Undertaken by a Private Sponsor. Theprecedingparagraph 1 also applies to aprivate sponsor except that the useful life ofprojectitems installed within afacility or the useful life offacilities developed or equipment acquired under an airport development or noise compatibilityprogram project shallbe'no less than ten(10) years from the date of the acceptance**o~**Federal aid for the project. 3. AirportPlanningUndertaken by a Sponsor. Unless otherwise specifiedin the grant agreement, onlyAssurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, 34 and36inSection C apply to planning projects. The terms, conditions, and assurances ofthe grant agreement shallremaininfall force andeffect during thelife ofthe project. C. SponsorCertification. The sponsor herebyassures and certifies, with respect to this grant that: 1. General Federal Requirements. Itwlllcomplywith all applicableFederallaws,regulations, executive orders, policies, guidelines and requirements as they relate to the application, acceptance and use ofFederalfunds for this project including but.not limited to thefollowing: Federal Legislation a, FederalAviation Act of1958

- 49 U.S.C. 1301, et seq. b. Davis-BaconAct- 40 U.S.C. 276(a), et seq.l/ c. FederalFairLabor StandardsAct- 29 U,S.C. 201, etseq. Page 1 of 11**~/** Theselaws do not applyto private sponsors. 

### 'J./ 49 CFR Part 18 and OMB CircularA-87 containrequirements for State and local governments receivingFederal assistance. Any requirements levied upon State and local governments bythis regulation and circular shall also be applicable to private sponsors receiving Federalassistance under the Airport andAirwayImprovement Act of1982, as amended. · Specific assurances required to be included in grant agreementsby any ofthe above laws, regulations or circulars are iocorporatedbyreference io the grant agreement. 2. Responsibility andAuth.orlty oftheSponsor.
a. PublicAgency Sponsor: Ithas legal authorityto applyfor the grant, and to finance and carry out the proposed project; that a resolution, motion orsimilar action has beenduly adopted or passed as an official

# act ofthe

**applicant'~** governingbody authorizing the filing ofthe application, including allunderstandings and assurances contained therein, and directing and authorizing the personidentified as the officialrepresentative ofthe applicantto act inconnectionwith the · application and to providesuch additional information as may berequired.

·b. Private

**Spon~6,;**

## Ithas legalimthorlty to apply for the grlint and to fmance and carry out the proposed project and complywith all terms, conditions;and assurances"ofthisgrant agreement. It shall designate an officirurepresentative and shallin writingdirect and authorize that person to ftle this application, including illu'nderstandings and assurances contained therein; to act in connection with the application; ru,'d toprovide suchadditionalinformationasmaybe required. 3. SponsorFundAvailability.' It has sufficientfunds available for that portion ofthe projectcosts which are not to be paid by theUnitedStates.· Ithas sufficientfunds available to assure operation and • maintenance ofitemsfunded under thegrant agreementwhich itwill own or control. 4. GoodTitle
a. Itholds good title, satisfactory to the Secretary, to the landing area ofthe airport or site thereof, orwill give assurance satisfactoryto the Secretarythat good title willbe acquired. b. For noise compatibilityprogram projects to be carried out onthe property ofthe sponsor, it holds good title satisfactorytothe Secretaryto thatportion ofthepropertyupon whichFederalfunds will be expended orwill give assurance tothe Secretarythat good titlewill.be obtained. 5. PreservingRights and Powers. a, Itwill nottake orpermit any actionwhichwould operate to deprive it ofanyoftherights and powers necessary to perform anyor all the terms, conditions, and assurances in the grant agreement without the written approval ofthe Secretary, andwill actpromptlyto acquire, extinguish ormodify any outstandiogrights or clahns ofright ofothers which wouldinterferewith suchperformanceby the sponsor. This shallbe done in a manner acceptable to the Secretary. b. It will not sell, lease, encumber or otherwise transfer or dispose ofanypart ofits title or other interests in theproperty shown on ExhibitAto this application or, for anoise compatibilityprograro project, thatportion ofthe propertyuponwhich Federal funds have been expended, for the duration ofthe terms, conditions, and assurances in the grant agreement without approvalby the Secretary. If the transferee is found bythe Secretary

### to be eligible under the Airport and AirwayImprovementAct of 1982

### to assume the obligations ofthe grant agreement and to have the power, authority, and financial resources to carryout all such obligations, the sponsor shall insert in the contract or document transferring or disposing ofthe sponsor's interest, and make binding upon the transferee, all ofthe terms, conditions and assurances contained in this grant agreement. Page 3 of 1111. LocalApproval. Inprojects involving the construction or extensionofanyrunway at anygeneral aviation airportlocated astride a line separatingtwo countieswithina single state, ithas received approval for theprojectfrom thegoverningbodyofallvillages incorporatedunder thelawsofthe statewhich are located entirelywithin five miles ofthenearestboundaryofthe airport. U. Terminal DevelopmentPrerequisites. Forprojectswhich include terminal development at a public airport, it has, on the date ofsubmittaloftheprojectgrantapplication, all the safeljequipmentrequired for certification ofsuch airportunder section612 oftheFederalAviationAct of1958 and afl the security equipmentrequiredbyrule ofregulation, andhas providedfor

**a~cess** to thepassenger enplaning and deplaning area ofsuch airportto passengers enplaning or deplaningfrom aircraft'other thanair carrier aircraft., 13. AccountingSystem, Audit,

**ar~d** Recordkeeping Requirements.
a•. Itshall keep,all project accounts and



### r~cords whichfullydisclose the



### ~m9unt and disposition by the recipient oftheproceeds ofthegrant, thetotal cost ofthe projectin connection withwhich the grantis given orused, andtheamountand nature ofthatportion ofthe cost ofthe project suppliedby othersources, and such otherfinancial records pertinent to theproject. The accounts and records shall bekeptin accordance with an accounting system that will facilitate an effective auditin accordance with the SingleAuditAct of 1984. · ' b. Itshallmake



### av~ilable to theSecretaryand the Comptroller Generalofth\'UnitedStates, or any oftheir duly authorized representatives, for

## thepurpose ofaudi\and examination, anybooks,· documents,papers, andrecords oftherecipient'that arepertinentto thegrant. TheSecretarymay require that an appropriateaudit beconductedby arecipient. Inanycase inwhich an , ' independent audit is made of the accounts

# ofa sponsorrelatingtothedisposition oftheproceeds ofa grant orrelatingto the projectin connectionwithwhich thegrantwas given orused, it shall file a certified copy ofsuch audit withtheComptroller General oftheUnitedStatesnot later thansix (6) months foll9'ving the closeofihefiscal yearfor which the audit was made:.. · 14. MinimumWage Rates. Itshallinclude,inall contracts in excess of$2,000 forwork on any projects funded under the grant agreementwhich involvelabor,provisions establishing minimum rates ofwages, tobepredeterminedby theSecretary ofLabor, in accordance withtheDavis-BaconAct, as amended (40 U.S.C276a--276a-5),which contractors shallpay to skilled 1md.unskilled labor, and such minimum rates shallbestatedinthe invitationfor bids and shallbeincluded in proposals orbids for W9rk. 15. Veteran's Preference, Itshallinclude, in all contractsfor work onanyprojects funded under the grant agreementwhich involve labor, suchprovisions as arenecessaryto insure that, inthe employment of labor( exceptillexecutive, administrative, and supervisorypositions), preferenceshallbegiven to veterans ofthe Vietnamera anddisabledveterans as defined in Section515(c)(1) and (2) oftheAirport and Airway ImprovementAct of 1982. However, this preference shall apply only where the individuals are available and qualified to perform thework to which the employmentrelates. 16. Conformityto Plans and Specifications. Itwillexecutethe projectsubject to plans, specifications, and schedules approvedbythe Secretary. Suchplans, specifications, and schedules shallbe submitted to the Secretaryprior to commencement ofsite preparation, construction, or otherperformance under this grant agreement, and, upon approvalby theSecratary, shallbeincorporatedinto this grantagreement Any modifications tothe approved plans, specifications, and schedules shall alsobe subject to approval by the Secretaryandincorporationinto thegrant agreement. 17, ConstructionInspectionandApproval. It

### will provide andmaintain competenttechnical supervision at the construction site throughoutthe projectto ensure thatthe work conformswith theplans, specifications, and schedules approvedby the Secretaryfor theproject. Itshall subject the ,constructionwork on any project containedin an approvedproject application to inspection and approval by theSecretaryand'such work shallbein accordancewithregulations andprocedures Page5 of 11repair, restoration, orreplacement ofany structure orfacilitywhich is substantially damaged or destroyed due to an act ofGod orother condition or circumstancebeyond the control ofthe sponsor. b. Itwill suitablyoperate and maintain noise compatibilityprogramitems that it owns orcontrols uponwhich Federalfunds have beenexpended, 20. Hazard Removal and Mitigation, Itwill take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport(including established minimum flight altitudes) \vill be adequately cleared andprotected by removing, lowering, relocating, marking, orlighting or otherwisemitigating existing airporthazardsand bypreventingthe establishment or creationoffuture airport hazards: 21. CompatiiJleLandUse. Itwill takeappropriate action, including the adoption ofzoning laws, to the extentreasonable, torestrict theuseofthe land adjacent to or in theimmediatevicinity of!lleairport to activities and purposes compatible\vithnormal airport operations,includinglanding and takeoffof aircraft. In addition, ifthe project is for noise compatibilityprogramiroplementation, itwillnot cause or permit any change.in landuse, within itsjurisdiction, thatwillreduce the compatibility, withrespect to the airport, ofthe noise compatibilityprogrammeasuresuponwhich Federalfunds have been expended. 22, EconomicNondiscrimination.

,. ,.- a, Itwill make its airport available as ari airporaor**publi~** use onfair andreasonable terms and without unjust discrimination, to all types, kinds, andclasses ofaeronauticaluses. · b.< 

## fu· ariy

## agreeme~t: contract, lease or

## ~ther**arr'angeme~t·Unde~** WhiCh

## ~·~ight or privilege at tiie
. airportis granted to anyperson, frrm, or corporation to.condUct·ar engage in

### aiiy aeronaUtical activity for furnishing services to the public at the airport, the sponsorwill insert and enforce provisions requiring the contractorto- .. · (1) funlish said services on a fair, equal, andnotunjustly disc;iminatorybasis to allusers thereof, and

- · (2) charge fair, reasonable, and notunjustly discriminatorypricesfor eachunit orservice, provided, that the contractormaybe allowed to make reasonable and nondiscriroinatory discounts, rebates, or othersimilar types ofprice reductions tovolume·purchasers.
c. Eachfixed-based operator at any airportowned by thesponsor shallbesubject to thesame rates, fees, rentals, and other cl)arges as are uniformly applicable to all other fiXed-based operators makingthesame or similaruses ofsuch airport andutilizing the sameor similarfacilities. d. Each air carrier using such airport shallhave the righttoservice itselforto use any fiXed-based operator thatis authorized or permittedby the airport to serve any air carrier atsuch airport.
e. Each air carrierusing such airport (whether as a tenant,nontenant, orsubtenant ofanother air carriertenant) shallbesubject to such nondiscriminatory and substantiallycomparablerules, regulations, conditions, rates, fees, rentals, and other charges with respectto facilities directly and substantiallyrelated toproviding airtransportationas are applicableto all such air carriers which make similaruse ofsuch airport andwhich utilize similarfacilities, subject toreasonable classifications such as tenants ornontenants and signatory carriers andnon-signatory carriers. Classification orstatus as tenants or signatory shall notbe unreasonablywithheld by any airportprovided anair carrierassumes obligations substantiallysimilar to those aireadyimposed on air carriers in such classifications or status. f. Itwill not exercise orgrant any right orprivilege which operates to prevent any person, firm, or corporationoperatingaircraft onthe airport from performinganyservices on its own aircraftwith its own employees (including,but not limited to maintenance, repair, andfueling) that it may choose to perform. Page7 of 1126. Reports and Inspections. Itwill submit to theSecretarysuch annual or specialfinancial and operationsreports as theSecretarymayreasonablyrequest. A reportoftheAirportbudgetwillbe available to thepublic at reasonable times andplaces. For airport developmentprojects, itwill also make the airport imd all airport records and documents affecting the airport, including deeds, leases, operation anduse agreements, regulations and other instruments, available for inspectionbyany dulyauthorized agent oftheSecretaryuponreasonablerequest. Fornoise compatibilityprogramprojects, it will also make records and documentsrelating to theproject and continuedcompliancewithterms, conditions, and assurances ofthe grant agreeinent includingdeeds, leases, agreements,

**regulations~** and btherinstrumentsJ availablefor inspectionby any duly authorized agentofthe Secretaryupon reasonablerequest.
,. ;, ' ../ '
. •i '· . . 27. Use ofGove,:nment Alrcran: Itwillmake available all ofthefacilities oftheairport developedwith Federalfimlnciat'assistance and all those usablefor landingandtakeoffofaircraft to theUnited States for use byGovernmentaircraftin commonwith other aircraft atall thnes without charge, except, iftheuse · by Government aircraftis substantial, chargemaybemade for a reasonable share, proportional to such use, for the cost ofoperatingand maintainingthe facilities used. Unless otherwisedeterminedbythe Secretary, or otherwiseagreed to by the sponsor and the using agency, substantial use ofan airportby Government aircraftwill beconsidered t'o exist when operations ofsuch aircraft are in excess ofthose which;inthe opinion oftheSecretary,wouldundulyinterfereiyith use ofthe landing areasbyother authorized aircraft, or during any calendarmonth that- ' • . .. I , a. · Fi;e (5) or



### mo~e Government aircraft

# aie regularlybased attheairport or on land adjacent thereto; or b. ·,'Thetotal';;J,;ber ofmovements (countingeach landing as a movement) ofGovernment aircraftis 300 or,more, or the gross accumulative weight ofGovernment aircraftusing the ' airport (thetotalmovements ofGovermnentirlrcraft multipliedbygross weights ofsuchaircraft) is in excess offive millionpounds. .,., '

.. '

.. . .. . ' . 28. Landfor FederalFacilities. Itwill furnish without costto theFederal Governmentfor use in connectionwith any

### air trafficCont!ol or 

### airnavigation activities, or weather-reporting and communication activitiesrelated to air traffic control, any areas ofland orwater, orestate therein, orrights inbuildings ofthe sponsor as theSecretaryconsiders necessary or desirable for construction, operation, and maintenance atFederalexpense ofspace orfacilities for such purposes. Stichareas or anyportionthereof will bemade available as provided hereinwithin four months afterreceipt ofa writtenrequestfrom the Secretary. · 29: AirportLayout Plan
a. Itwill keep up to date at alltimes an airportlayoutplan ofthe airportshowing (1) boundaries of airport anda_llproposed additions thereto, together withtheboundaries ofall offsite areas owned or controlledby the sponsorfor airportpurposes and proposed additions thereto; (2) thelocation and nature ofall existing'andproposed airportfacilities and structures (such as runways, taxiways, aprons, terminalbuildings,hangars and roads), including all proposed extensions and reductions ofexisting airport facilities; and (3) thelocation ofall existing and proposed nonaviation areas and ofall existing improvements thereon. Such airport layout plan and eachamendment, revision, or modification thereof, shall be subject to the approval ofthe Secretarywhich approval shallbeevidencedby the signature ofa duly authorized representative ofthe Secretary on the face ofthe airport layoutplan. The sponsor willnot make orpermit any changes or alterations in the airport orin anyofits facilities which arenot in conformitywith the airport layout planas approved by theSecretaryand which might, inthe opinion oftheSecretary, adversely affect the safety, utility, orefficiency ofthe airport. b. Ifa change or alteration inthe airport orits facilities is madewhichthe Secretary determines adversely affects the safety, utility, or efficiencyofanyfederally owned, leased, orfunded property on oroffthe airport andwhichis not inconformitywith the airportlayoutplanas approvedby the Secretary, theowner or operatorwill, ifrequestedby theSecretary (1) elhninatesuch adverse effectin a manner approved by theSecretary; or (2) bear all costs ofrelocating suchproperty (or replacement thereof) to a site acceptable to theSecretaryand all costs ofrestoring suchproperly (orreplacement Page9 of 11CURRENTFAAADVISORYCIRCULARSFORAlPPROJECI'S Effective Date: 6/1/94
NUMBER .SUBJECT 70/7460-lH . ObstructionMarkingand Lighting CHG1&2 150f5100·14C Archltectnral, Engineering, andPlaruiing Consultant Services for Airport Grant Projects .. 150 /5210-5B ... Painting.Marking andLighting ofVehicles Used onanAirport 150/5210-78 AircraftFireand Rescue Communications .·· . .. 150/5210-14 AimortFire andRescuePersonnel ProtectiveClothini>; 150/5210-15 Airnort Rescue & F'rrefighting StationBuildingDesign 15Q/5210-18· Svstems forInteractiveTrainingofAimortPersonnel 150/5220-48 WaterSupplySystemsforAircraftF'rre andRescueProtection 150/5220-lOA GuideSpecificationforWater/FoamTyp<>AircraftRescue andF'rrefJghting

. . . Vehicles 150/5220-'13B RlinwaySurfaceConditionSensorSnecificationGuide 150/5220-14A Airport FireandRescueVehicleSpecification Guide '150/5220·16A AutomatedWeatherObserviru!Svstems for NonFederalAonlications l50/5220-17A DesignStandardsfor AircraftRescueFirefighting

### Ttai.niniiFacilities
. 150/5220-18 Buildings forStorage andMaintenance ofAirportSnowandIceControl EauiomentandMaterials ·· - · · · · 150/5220-19
. GuideSpecificationforSmall, Dual-AgentAircraftRescue andFrrefighting Vehicles · ... 150/5220-20 AirportSnowandIce ControlEquipment CHG1 .. 150/5220-21 GuideSpecificationforLifts Usedto BoardAirlinePassengersWithMobility CHGl Impairments 150/5300-13 AirportDesign CHG1 2&3 150/5300-14 DesignofAircraft Deicing Facilities 150/5300-15 Use ofValueEngineeringfor EngineeringDesignofAirport GrantProjects 150/5320-SB AiioortDrainage 150/5320-6C AirportPavementDesignandEvaluation CHG1&2 150 /5320-lZB

**Measuremen~** Construction, and. MaintenanceofSkidResistantAirport

.. ·PavementSurfaces 150

### I5320"14 Airoort Landscapingfor Noise ControlPurposes 150 /5325-4A RunwayLength Requirements for AirportDesign CHG1 150/5340-1G Standards for AirportMarkings 150/5340-4C Installation DetailsforRunwayCenterlineTouchdownZoneLightingSystems CHG1&2 150/5340-SB SegmentedCircleAirport MarkerSystem CHGl 150/5340-148 EconomyApproach LightingAids CHG1&2 150 _/5340-17B StandbyPower for NonFAAAiroortLil!htinsrSvstems 150/5340-18C Standards for AirportSign Systems CHG1 

## .-34. Policies, Standards, and Specifications. Itwill carry out the project in accordance with policies, standards, and specifications approved by the Secretaryincluding butnotlimited to the advisory circulars listed in the CurrentFAAAdvisoryCirculars forAIPProjects, dated .Tune 1.1994 and included in this grant, andin accordance with applicable statepolicies, standards, and specifications approved by the Secretary. 35. Relocation and Real PropertyAcquisition. (1)Itwill beguldedin acquiringreal property, to the greatest extent practicable under State law, bythe land acquisitionpoliciesinSubpartB of49 CPRPart24 .andwill pay orreimbursepropertyowners for necessary e><penses as specified in SubpartB. (2) Itwill provide a relocation assistanceprogram offeringthe services described inSubpartCandfair and reasonablerelocationpayments and assistanceto displaced persons as requiredin Subparts D andE of49 CFRPart24; (3) Itwillmake available\vithin a reasonableperiod oftimepriorto displacement comparablereplacementdwellings to displacedpersonsinaccordancewith SubpartE of49 CFRPart24. 36, Drug-FreeWorkplace, ItwillproVide a drug-free workplace atthesite ofwork specifiedinthe grant applicationinaccordance with49 CFRPart29 by (1) publishinga statementnotifYingits employees that the unlawful manufacture, distribution, dispensing, possession oruse ofa controlled substanceis prohibitedin thesponsor'sworkplace and specifying the actions thatwill betaken against its employees for violation ofsuchprohibitions; (2) establishing a drug-free awareness program toinform its employees aboutthedangers ofdrug abuse intheworkplace andany available drug counseling, rehabilitation, and employees assistanceprograms; (3) notifYing theFAA\vithin ten (10) days afterreceiving notice ofan employee criminal drugstatute convictionfor a violation occurringin the workplace; and (4) making a goodfaith effort to maintain a drug-freeworkplace.

'

. 

## ..

Page 11 of 11

# EXHIBIT 'B'04/07/2008 13:05 3107255849 

### FAA LAX ADO PAGE 84

Fax frol!'l U.5. Department CJ.fTrGnspultalion Federal Aviation AdminiStration f'ago 1 of

**2P~goo** Contract No. OTFADS-94-C-20857 Santa Monica Airport Santa Monica. California AMeNDMENT NO. 1 TO GRANTAGREEMENT FOR PROJECT NO. 3-0a..o239-06 WHEREAS, the Pederal A'v'tation Adminietratlon (hereinafter

**r~f~rrer1** tn as th1'11. "FAA"') has d$term!ned tt to be ln the Interest of the Unibod States that the Grant Agreement between the FAA, acting for and on behalf of the United States. and Ihe city ofSsnta Monica, (hereinafter referred to as the 'Sponsor"), accepted by said Sponsoron the Bth dayofJune, 1994, be amended ao hereinafter P""'ldcd. NOW I Ht:REFORE, WITNESSETH: Th:<>t In coMideration of !he beneilts to accrue 1D the parties hereto, the F'M on behaH of1he'\.Jnlted States, on the one part, and the Sponsor, on the other part, co hereoy mutually agree u.. t.,.id GrantAgreement 1><> and "'horeby amended asfollows: Delete the airport development descrtbed on page one and substitute in lieu thereof the following <lescribed airport development. Pave infield areas; install runway distance remaining signs 3nd guidance sl!jns and

**~ush** mounted t"'<iway lights: seal and marl< north and south parallel taxiways; constructblastwalls -Phass II; install

**porirrwtc~r**f4:1nee. Jnctudfno

**a~tA..o;;** rP.habirrtate north and .scuth aircrafttledown areas; rehabifitate aircraft tiedown areas adjacent

### to Taxiway B.

IN WITNESS

**WHEREO~,** the parties here!D have caused this Amendment to said Grant Agreementto be duly executed as ofthe 8th day of._Noyember '1999.

3187256849 UNITED STATeS OF AMERICA FEDERALAVIATlON ADMJNISTRATlON WESTERN-PACIFIC REGION

84/87/88 16:38 Pg: 404/07/2008

**13:0~** 3107256849 FAA LAX ADO PAGE 05

Fax fro,. Title: Ci

### tv Manager (SEAL) 

# A;::-1_,, •.



# ~.o. **Qony=-~** Title: City Clerk

CERTIFICATE OF SPONSOR'S ATTORNEY Page 2 of2 Pages ProJect No. 3-0C-Q239·0e Contract No. OTFAOS.94·C.20857 City

**of~S.anta** Monica (NarTe of Sponsor)

I,

**_lM'!Ja!Jr::s~hl!auJ,uo~n!!!e~s:uM:!!OlJU.wt!olrc..lL!.** eL_
__, acting as Attorney forthe city of Santa Monica, (hereinafter referred to as the "Spon•o(1 do hereby certify:

That 1have examined the foregoing: Amendment to the Grant

**Agreern~~::Jnl** and the

**pro~edlng~** tekan by ihc Sponsor relating thereto, and finding the exe.;utl()n thereof by said Sponsor has been duly authorized and is In all nospects due and proper and In aocordance with the laws of the state of Califomla, and further that, in my opinion, said Amendment to Grant AgJMment consfltutos a legal and binding obiiQation of me Sponsor In

**au~u•Qanoe** with the tenns !hereof. Dated at 

### Santa Monica •this Bth day of Noyember ,1999
.

sy:



# --~-Dl--.l..jJ.Icw~U:~§~!-<IIU~A~tvl!.f-c'"rn.k:<w.iv.A~-"""·_ lltla:
_ **__:C~i~t:J.Y...;A!:!.t~t:=o:.!.r.!!ne yl-**  ________ _

31B7256B49 Pg: 504(0712008 13:05

U.S. Department ofTransportation Federal Aviation Administration 3107256849 FAA LAX ADO PAGE 02

Page 1 of2 Pages



# Gntr<~ct No. DTF'AOI!->14-C-200 Santa Monica Airport/Planning Nea Santa Monica, California
AMENDMENT NO.2TO GRANT AGREEMENT FOR PROJECT NO, NO. 3..06-0239.()6 WHEREAS, the Federal Aviation Administration (hereinafter referred to as the "FAA") has determined itto be in the Interest of the United States that the Grant Agreement between the FAA, acting for and on behalf of the United States, and the city of Santa Monica, (hereinafter referred to as the "Sponsor"), accepted by said Sponsor on tho 29th day of June, 1994, be amended in conformance with Sponsor's letter dated September 27, 2002. NOWTHEREFORE, WITNESSETH: Ti1atln consideration of the benefits to.accrue to tho parties hereto. the FAA on

**beha~** ofthe United States, on the one part, and the Sponsor, on the other part, do hereby mu!Ualiy agree thatsaid Grant Agreement be and Is hereby amendedas follows: The maximum obligation 5tated 

### on page 2, condition 1, is hereby increased by $240,600.00, from $1,604,700.00 to $1 ,845,300.00.

All otherterms and conditions ofthe Grant Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendmentto said GrantAgreement to be duly executed as

## or the 27

**d~y**or Auguat, 2000.

Fax frofl'l 311l7256849 UNITED STATES OF AMei'I.ICA FEDERAL AVIATION ADMINISTRATION WESTERN·PACIFIC R.EGION



# JLP~ 

# JJ P. Milligan
. Supervisor, Standards Section

ll4/ll7 /llB 1& :38 Pg: Z(SEAL) 

## ·----\ 

# -......_ Attest:

# ~~-**.-.,_~.** Titlo: City CJerk By: Title:

### -~

## __a.o\:_ <6- :l'l- 

## o;. rAA LAX ADO PAGE B3
Page 2 of2 Pages Contract No. DTFAOS-94-C-20857 Santa MonicaAirport/Planning Area scnto Monica, Califomha

City Manager

CERTIFICATE OF SPONSOR'S ATTORNEY I, Marsha Jones Moutrie ,acting as Attomey forthe Sponsor do herebycertify: That I have examined the foregoing Amendment to the Grant Agreement and the proceedings taken_**b~** the Sponsor r<>IEiting thereto, ond (Jq_ding thG execution thereof by said Sponsor**h~~** haen duly**authorize~** and IS**_1~** all respects due and proper and in accordance with the laws of the State of California, and further that, '" my op1mon. said Amendment to Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms tnereat. Dated at Santa Monica 'this 27th dayof
__ A_u.;:'il_u_s_t
___,2003.
By:

Fax frol'l Fg: 3

# EXHIBIT 'C'

### State of California County of Los Angeles City ofSanta Monica I, Vernice Hankins, Staff Assistant to the City Clerk of the City of Santa Monica, do hereby certify that to the best of my knowledge and beliefthe foregoing is a full, true and correct copy of Staff Report Item 8-A (Santa Monica Leasing Guidelines) from the August 12, 2014 

### City Council meeting, which is on file in the City Clerk's Department, and that I have carefully compared the same with the original. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal ofthe City ofSanta Monica, this 13th

### day ofAugust, 2014.



### Vernice Hankins StaffAssistant Ill, City Clerk's Office City ofSanta Monica

# e • 

# J Cityof Santa

**Monica~**



### To: Mayor and City Council 

# City Council Report
City Council Meeting: August 12, 2014 Agenda Item: 

## 8-A

. From:

Subject: Martin Pastucha, Director of Public Works/Airport Director Santa Monica Airport Leasing Guidelines Recommended Action 

### Staff recommends that the City Council approve the attached Leasing Guidelines for the leasehold and license management ofproperties at the Santa Monica Airport (Airport or SMO). Executive Summary 

### The Santa Monica Airport Leasing Guidelines (SMO Leasing Guidelines) set forth the

. general policy objectives and practices for leasing and licensing for all properties

currently situated at the Airport. The parameters provided are intended to promote standardized, equitable, efficient, and transparent management of the tenant recruitment, selection, and negotiation process, as well as identify the standards of performance that are expected of the Airport tenants. If Council· approves these proposed guidelines, staff will administer them and approve leases that are consistent with them; leases not conforming to the proposed guidelines would require Council approval. These guidelines were formulated based on: Council's direction to staff at its meeting on March 25, 2014; the legal obligations and legal constraints presently associated with the Airport land and its uses; environmental and remediation requirements; concerns about compatibility with surrounding neighborhoods; and the viability of the Airport Fund to remain independentfrom General Fund subsidies. Background 

### Santa Monica Airport is located on 227 acres, closely surrounded by single-family residential neighborhoods. The Airport consists of 187 acres of land currently designated and used for aviation activities and 40 acres currently. used for other purposes compatible with airport activities. As of the date of these guidelines the Airportfacilities are comprised of approximately 114 non-aviation and 11 aviation leases

.aswell as 186 license agreements for airplane hangars and aircraft parking areas (tiedowns). 

### 1

### The current Non-Aviation Airport Property leasing guidelines were approved by Council at its December 5, 2000 meeting. A major objective of those leasing guidelines was to provide leasing opportunities for the local arts community, which was being forced out of the City by new development and rising land values. Through the years artists have occupied various spaces at the Airport.
In recent years the City undertook an extensive visioning process for the future of the Airport property. Among other things, that process was intended to identify any opportunities for the Airport's future, short of closure, that would be more compatible with surrounding neighborhoods and to identify improvements to the infrastructure that might benefitthe community. Most recently, at the March 25, 2014 meeting Council provided direction to staff that, upon expiration, current leases may be renewed for three years with unlimited one-year renewals at the City's option. The direction to staff was to develop leasing guidelines sensitive to the environment, to neighbors' concerns and to remediation needs; and, once adopted, to apply the guidelines in assessing applications for lease renewals. Council also directed staffto consider the former Light Manufacturing and Studio District zoning standards as a model and to evaluate options regarding fuel sales at the Airport. Presently, use of the non-aviation Airport property is diverse and comprised of a museum, technical offices, artist day studios, educational facilities, contractor facilities, architectural offices, law offices, film related businesses, and general office space. Aviation use leases include flight schools, aviation service providers, hangars, and 'Fixed Based Operators (FBOs).
All Airport leases will expire on or before June 30, 2015. Staff from various City departments collaborated in engaging a qualified appraiser and auditors to establish future lease rates that will be applied to all new leases on the Airport in 2015. Prior to negotiating new leases with existing tenants staff will ensure that the tenants have met their obligations undertheir current lease agreements. 

### 2

### Discussion 

### The proposed Guidelines contain new policies and practices for leasing and licensing of Airport properties (Attachment A). They would supersede the current guidelines and become effective upon the date of Council's adoption. The Guidelines identify programs that mitigate, as much as possible, environmental impacts to the community, and maintain the viability of the Airport Fund independent from General Fund subsidies while the legal constraints on the City's authority to control the Airport and Airport usage is resolved. The new Guidelines have been developed with the following objectives: 1. Establish practices and procedures for evaluating potential leasehold interests, and for lease management and administration. 2. Foster 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 exposure. 3. Maintain compatibility of uses of non-aviation airport property with Santa Monica Airport operations and, consistent with applicable law, promote use of the aviation property in a manner compatible with the adjacent residential community. 4. Continue to provide opportunities for arts, education, and culture, including, but not limited to, the Artist Space Program administered in conjunction with Cultural Affairs Division. 5. Serve as the framework for achieving and maintaining a viable, sustainable Airport Fund that is independent from the General Fund and other subsidies. 6. Incorporate within these Guidelines the City's rights, legal obligations and legal constraints that relate to the Airport, the aviation leases and the use of the Airport. To ensure that the leasing program achieves its objectives it shall be managed in a manner consistent with the following standards: 1. Term: 

### The lease term may be month-to-month, or year-to-year for up to threeyears. However, the initial term of leases approved under these guidelines shall expire by June 30, 2018. After that date, annual renewals may be granted pursuant to these guidelines at City's discretion. Leases longer than three years 

### 3

### are outside the purview of these guidelines and therefore require Council approval. 2. Allowable Uses: 

### To the extent allowed by law, uses would be aviation, arts/cultural, creative space, professional, theaters, museum, educational, professional offices and other uses that are low intensity and serve the adjacent communitywhile implementing standards that are sensitive to the environment. 3. Environmental Responsibility:· 

### New lessee requests shall be reviewed to assess potential negative effects on the environment. The Airport may require environmental studies or testing as appropriate and necessary, and any needed remediation shall be performed prior to establishment of new uses. .Lessees seeking renewal or extended leases will also be responsible for any environmental contamination, resulting fromtheir prior use, as a condition to a renewed or extended lease. Atthe time of the application, an assessment ofthe proposed use will be conducted, and appropriate insurance and/or remediation requirements will be incorporated into the lease based on proposed usage. 4. Right of Refusal: 

### The Airport may refuse a lease application if it determines that the proposed use may create a high intensity use and/or expose the City to additional environmental exposure, or otherwise poses an unacceptable potential for harm to the public health and welfare orthe environment.
The majority ofthe Airport revenue is derived from leases. To help support the Airport's fiscal self-sufficiency, all rents, fees, and charges on the Airport must reflect fair market value for both aviation and non-aviation properties
.. Fair market rents for individual buildings on non-aviation airport properties and prevailing market rents for aviation properties will be appraised in the as-is condition quantified in the spring 2014 appraisal. Rental rates for new or renewed leases of airport properties will be set as follows: 1. Rates: 

### All new and renewed leases will be leased at Market Rate based on the appraisal commissioned by the City in 2014. The initial lease rates will be adjusted by the change in the Consumer Price Index (CPI) to stay accurate with market conditions as new/renewed leases arise. 2. Renewals: 

### For tenants who have three year leases, and who wish to be considered for lease extensions, would need to contact City staff in writing, no more than one year or less than 60 days before the lease terminates, to request the one-year lease extension. The City at its own discretion will approve or disapprove the one year extension for that year or any yearthereafter. 3. 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, as Landlord, shall have the right to 

### 4

### audit tenant's financial records to ascertain that the gross sales figures reported bythe tenant are accurate. 4. Existing Tenants: 

### All existing airport tenants in good standing that are current in rent payments, not otherwise in default of their current agreements, and agree to abide by the rules of the Airport as stipulated in Section 5 "Performance Standards" of the guidelines, will be offered the opportunity to retain use and occupancy of their currently leased premises subject to the "Term" provisions. 5. Whole Building Leases: 

### Whole building leases may, at the City's d,iscretion, be subject to public Requests for Proposals intended to optimize leasehold occupancy and the self-sustainability ofthe airport 6. Sub-Leases: 

### Assignment or subletting of leases or 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. · 7. 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. 8. Triple Net Leases: 

### Unless otherwise specified, tenants shall pay all property taxes and assessments (including Possessory Interest Tax), insurance, and utilities. 9. 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 priorto City Manager's approval. 10.Annual Adjustments: 

### All leases will be subject to annual CPI adjustment on their anniversary month. 11.Appraisals: 

### Properties will be appraised for fair market rental rates at three year intervals. Independence from General Fund Subsidies All Airport leases expire on or before June 30, 2015. Whatever the Airport's future, it is a City asset used by members of the public. And, to support its core public services, it must be self-sustaining as an enterprise and not dependent upon alternate funding. Given that the Airport's future is presently unknown and that it may take years until the City's ·legal authority is clarified by the courts, lease revenues at the Airport must be maintained to promote the Airport's ongoing self-sufficiency, avoid future subsidies from


### 5

### the General Fund, and repay the General Fund, which has historically subsidized the Airport. General Fund subsidies, as of June 30, 2013, reached $13.6 million. In contrast, during fiscal year 2013-14, the Airport Fund remained free of additional General Fund subsidies due in part to the adoption of the new landing fee structure that became effective August 1, 2013. Leasing is the Airport Fund's main revenue source. Revenue from current leases comprises approximately 63% oftotal Airport revenues, which is the largest component ofthe Airport Fund. The percentage of lease revenue contributing to the Airport Fund's total revenue will increase after July 1, 2015 with the addition of properties that will revert back to the City of Santa Monica. Atlantic Aviation and Gunnell Properties manage two of these properties. Both are located on Donald Douglas Loop North and were established under.a 30 year development agreement, which currently provides a land lease rental rate to the Airport. As the development agreements expire, the lease revenue for these properties will significantly increase as a result. of new rental agreements with prospective tenants, which include improvements on the properties. Use of Low Intensity Zoning Regulations Council suggested the use ofthe former Light Manufacturing and Studio District (LMSD) zoning standard as a model for the Guidelines. Some community members and the Airport Commission recommended LMSD as a viable solution in drafting the Airport's guidelines with the belief that LMSD satisfies the current federal obligations for the Airport. However, staff has significant concerns about the legality of this approach. LMSD's only permitted aviation use is for aircraft parts other than engines. Staff doubts that this sole aviation use will satisfy the City's current federal obligations. Nonetheless, the former LMSD standards may be useful, later, for planning future use of the Airport land.



### 6

### Environmental Concerns and Impacts on the Community At Council's direction to evaluate options regarding fuel sales at the Airport, staff has been in contact with major fuel providers to find alternative solutions to current aviation fuels available throughout· the aviation industry today capable of reducing the environmental impact to the community. Although some community members believe that the City can cease allowing the sale offuel altogether, it is staff's opinion that such actiq,n would most likely lead to litigation. It is uncertain when an alternative to 100 

### low lead (100LL) 

### Avgas will become available in the industry. 1DOLL 

### is the standard fuel used by piston engine aircraft and has been in the center of controversy due to the low levels oftetraethyllead contained in the fuel. Although the federal government has provided funding to find an unleaded alternative to this fuel, staff's research revealed that it will be a long and timely process until a replacement fuel to 100LL 

### makes its way to common use. Staff has continued their efforts and found approved alternatives to 1DOLL 

### available in the market today. Currently, only a handful of aviation fuel manufacturers have an unleaded aviation fuel alternative that can be used by most piston engine aircraft based at the Airport. The unleaded fuel requires operators to acquire an approved Supplemental Type Certificate. (STC) from the Federal Aviation Administration (FAA) prior to utilizing the fuel and it also requires that the Airport build the appropriate infrastructure (i.e. fuel tanks) to support the storage and dispensing of the fuel. Also, there is a 100 

### octane very low lead (1 OOVLL) 

### alternative fuel that can replace the 1DOLL 

### and can be used by the entire mix of aircraft using the Airport. This fuel does not require an STC prior to dispensing nor does it require additional infrastructure. The 100VLL 

### fuel uses approximately 20- 30% 

### less tetraethyl lead than the maximum allowed for standard 1DOLL 

### fuel. Staff is currently in talks with fuel manufacturers to determine the timeline of availabilityofthese fuels. Once commercially available, fuel service providers at the Airport would be required to offer unleaded avgas and 1 OOVLL 

### in lieu of 1DOLL.



### 7

### The proposed Guidelines also address a replacement fuel for JetA, the common fuel for reducing the turbine engine aircraft. The Guidelines propose that once an alternative fuel (e.g. biofuel) becomes available in the industry, fuel service providers at SMO will be required to sell a blended biofuel in lieu of JetA. Staff conducted research in the areas of biofuel, specifically blended biofuels (usually up to 50/50 blends), that could be used by all turbine engine aircraft without the requirement of an STC from the FAA. Studies have shown that biofuels, even at a 50/50 blend, could reduce ultra-fine particulars by as much as 60%. Furthermore, on June 4, 2013 United Airlines announced that they have executed an agreement with AltAir for delivery of 5 million gallons of biofuel sometime in 2014 for United Airline's operations out of Los Angeles International Airport. Staff is currently in talks with biofuel manufacturers, including AltAir, to determine biofuels' environmental benefits and timeline of availability to the industry of such biofuels. Because ofthese recent developments, staff is .confident that biofuels could be made available at SMO in the future. Offering alternative aviation fuels would be an incremental step in the City's effort to mitigate Airport impacts on the community, and it would avoid litigation as to whether the City has a federal obligation in providing fuel available for all aircraft currently using the Airport. Additional provisions in the proposed guidelines that would address impacts on neighbors and the environment are as follows: 1. Flight schools will be. requested to use newer type of 21ircraft that are quieter or use Federal Aviation Administration approved noise reduction technologies and leasing preference would be given to those that do. 2. Flight schools and tenants of the Airport will .be requested to· avoid· pattern operations during certain hours (i.e. weekends, holidays, nights) and leasing preference would be given to those that do. 3. Fixed Based Operators will be required to provide annual inspection reports to the City that show the condition of the existing underground fuel.tanks, to make repairs and remediate leaks, and to install any newtanks above ground. 4. Fixed B21sed Operators, mainten21nce facilities, and flight schools will have one year to replace existing gas or diesel-powered vehicles used to perform their 

### 8

### primary functions (i.e. fleet vehicles, Ground Power Units, aircraft tugs, etc.) with alternative fuel vehicles (i.e. CNG, Electric, etc.) Environmental Analysis The leasing guidelines identify the types of airport leases that will be within the authority

· of the City Manager to administer and approve. There is no issuance of a lease
.

involved, nor doany ofthe guidelines commit the Managerto approve certain leases, or limit the Manager's discretion to impose mitigation measures, adopt alternatives, or deny a lease application altogether. Further, these guidelines do not limit the City Council's full leasing authority going forward, nor do they commit the Council to lease or not lease any property in the future. Because .the City Council's action to approve the guidelines does not commit the City to a definite course of action on a project, it does not involve a project "approval" within the meaning of CEQA Guidelines section 15352(a). In addition, the approval of the guidelines is not a "project" under CEQA

·pursuant to CEQA Guidelines section 15378(b)(2), which excludes "general policy and

procedure making." Finally, even ifthe guidelines may be viewed as an activity that will ultimately involve the issuance of a lease, there is no possibility that their approval may have a significant effect on the environment given that they do not commit the City to any course of action and are so general as to make the evaluation of particular impacts too speculative for review. Consequently, even if the guidelines were to constitute a CEQA project, their approval is subject to the common sense exemption pursuant to CEQA Guidelines section 15061 (b)(3). Commission Action Staff presented an overview of the objectives and standards of the proposed leasing guidelines to the Airport Commission during their meeting on July 28, 2014 for consideration and comment. The Commission did not provide a formal recommendation orfeedback regarding these guidelines.

9

### Financial Impacts & 

### BudgetActions 

### There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared 

### by: Stelios Makrides, Airport Manager Approved:



### Martin Pastucha Director of PublicWorks/Airport Director Attachments: Forwarded to Council:



### Rod Gould· City Manager

A- Proposed Santa Monica Airport Leasing Guidelines



### 10ATTACHMENT A Approved bytheAirport Commission:-'---- Approved by City Council: ___ _ SANTA MONICAAIRPORT LEASING GUIDELINES 

### The Santa Monica Airport Leasing Guidelines ("Guidelines") provide theframeworkfor fair and consistent leasing and licensing of City-owned properties ot the Santa Monica Airport. The Guidelines provide parameters and general policy on aIIowed uses, standards and terms, and tenant recruitment and selection. They reflect the general intent and goals ofthe City ofSanta Monica {"City") at the time they were approved and do not convey any right upon anyone, or impose any obligation on the City. INTRODUCTION Santa Monica Airport is one of the oldest single-runway, general aviation airports in the country. It is located on 227 acres, bordered on three sides by single-family residential neighborhoods. The Airport consists of 187 acres currently designated for aviation related activities and 40 acres currently designated for compatible "non-aviation" uses- specifically commercial activities that do rwt depend orrely on the airportfor their business. As ofthe date ofthese guidelines there are approximately 11 aviation leases, 186 licenses for airplane hangars and aircraftparking areas (tie-downs) and 114non-aviation leases and licenses on the Airport. Aviation uses include flight schools, aviation service providers, hangars, and Fixed Based Operators. Non-aviation uses are diverse, and include restaurants, museum,theatre, arts studios, and creative and general office uses. Lease and license revenue accountsfor 63% oftotal annual Airport revenues and supports the Airport's goal of achieving financial self-sufficiency, reduction in future subsidies from the General Fund; and the repayment of the principal of past General Fund subsidies. Historically, the Airport's operation and maintenance has been subsidized by the General Fund. As ofJune 30, 2013, the Airport has a principal debt obligation to the General Fund· of$13.6 million. All Airport leases expire on or before June 30, 2015. Whatever its future, the airport and its property remains a City asset. These leasing guidelines take into account Council's direction on March 25, 2014, the legal obligations and constraints relating to the airport, the aviation leases and the use of the airport, and the purpose for which airport leases have been developed, as specified below.

11. PURPOSE OF THESE LEASING GUIDELINES These guidelineshave been developedto: I. Establish practices and procedures for evaluating potential leasehold interests, and for lease managementand administration. II. Foster 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 exposure. Ill. Maintain compatibility of uses of non-aviation airport propertywith Santa Monica Airport operations and, consistent with applicable law, promote use of the aviation property in a manner compatible with the adjacent residential community. IV. Continue. to provide opportunities for arts, education, and culture, including, but not limited to, the Artist Space Program administered in conjunction with Cultural Affairs Division. V. Serve as theframework for achieving and maintaining a viable, sustainable Airport Fund that is independent from the General Fund and other subsidies. VI. Incorporate within these guidelines the City's rights, legal obligations and legal constraints that relate tothe airport, the aviation leases and the use ofthe airport.
2. MANAGEMENT STRUCTURE Leasing and licensing atthe Airport is the responsibility ofthe City ofSanta Monica Airport Division in coordination with the City's Economic Development Division. 3. GENERAL LEASING STANDARDS To ensure a program that achieves the purposes described above, the leasing program at the Airport shall be managed in a manner consistent with the following standards: I. Term: The lease term may be month-to-month, or year-to-year; for up to three-years. However, the initial term of leases approved under these guidelines shall expire by June 30, 2018. After that date, annual renewals may be granted pursuant to these guidelines at City's discretion. Leases longer than three years are outside the purview of these guidelines and therefore require Council approval. II. Allowable Uses: To the extent allowed by law, uses would be aviation, arts/cultural, creative space, professional, theaters, museum, educational, professional offices and other uses that are low intensity and serve the adjacent community while implementing standards that are sensitive to the environment. 

### 2

### Ill. Environmental Responsibility: New lessee requests shall be reviewed to assess potential negative effects on the environment. The Airport may require environmental studies or testing as appropriate and necessary, and any needed remediation shall be performed prior to establishment of new uses. Lessees seeking renewal or extended leases will also be responsible for any environmental contamination, resulting from their prior use, as a condition to a renewed or extended lease. At thetime ofthe 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. IV. Right of Refusal: The Airport may refuse a lease application if it determines thatthe proposed use may ·create a high intensity use and/or expose the City to additional environmental exposure, or otherwise poses an unacceptable potential for harm to the public health and welfare or the environment and it's within the City's legal constraints presently associated with the Airport land and its uses 4. RATES AND RENEWALS Rents, fees and charges on the Airport shall reflect fair market value for both aviation and non-aviation properties. Fair market rents for individual buildings on non-aviation airport properties and prevailing market rentsfor aviation properties will be appraised in the as-is condition quantified in the spring 2014 

### appraisal. Rental ratesfor newor renewed leases ofairport properties will be set asfollows: I. Rates: All new and renewed leases will be leased at Market Rate based on the appraisal commissioned bythe City in 2014. 

### The initial appraisal lease rates will be adjusted by the change in the Consumer Price Index (CPI) as to stay accurate to market conditions as new/renewed leases arise, and until the next market studyis conducted. II. Renewals: For tenantswho have three (3) year leases, and who wish to be considered for lease extensions, would need to contact City staff in writing, no more than one year or less than 60 days before the lease terminates, to request the one-year lease extension. The City at its own discretion will approve or disapprove the one year extension for that year or any year thereafter. Ill. Percentage Rent Provision: In addition to a base rent, the City may elect to require that a lease include a percentage rent provision, which can be differentiated by categories ofsales. The City, as Landlord, shall have the right to audit tenant's financial records to ascertain that the gross sales figures reported by the tenant are accurate and that the appropriate percentage rent amount ispaid. 3IV. Existing Tenants: All existing airport tenants in good standingthat are current in rent payments, not otherwise in default of their current agreements, and agree to abide by the rules of the Airport as stipulated in Section 5 "Performance Standards" below, will be offered the opportunityto retain use and occupancy of their currently leased premises subject to the "Term" provisions prescribed in Section 3.1 ofthis report. V. Whole Building Leases: Whole building leases may, atthe City's discretion, be subject to public Requests for Proposals intended to optimize l.easehold occupancyandthe self-sustainabilityofthe airport. VI. Sub-Leases: Assignment or subletting of leases or space sharing is prohibited without the
.written consent of the Landlord. Landlord's granting or withholding consent will be subject to express standards and conditions set forth in the lease. VII. 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. VIII. Triple Net Leases: Unless otherwise specified, tenants shall pay all property taxes and assessments (including Possessory Interest Tax), insurance, and utilities. IX. 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. X. Annual Adjustments: All leases will be subject to annual CPI adjustment on their anniversary month. XI. Appraisals: Properties will be appraised for fair market rental rates at three yearintervals. 5. PERFORMANCE STANDARDS All lessees shall use the airport and any airport property in a manner that is compatible with Santa Monica Airport operations and with the adjacent residential uses; to encourage activities that complement adjacent residential and commercial uses; and to establish practicesthat are sensitive to the environment and protect the City from future environmental exposure.

I. Flight Schools & Flying clubs Existing flight schools and flying clubs will be provided the opportunityto renew 

### 4their leases and preference will be given to prospective tenantsthat abide by the following performance standards: a. All flight schools and flying clubs will be requested to use newertype aircraft that are quieter (i.e. light sport) or use Federal Aviation Administration approved noise reduction technologies in reducingtheir noise footprint. b. All flight schools and flying clubs will be requested to avoid performing pattern operations at Santa Monica Airport during weekends, holidays, and evening hours. 11. Fixed Based Operators (FBOs) Existing FBOs will be provided the opportunity to renew their leases and prospective FBOs to obtain a lease ifthey abide by the following environmental standards. All FBOs will be required to minimize their environmental impact by performing the following improvements to current or as applicable proposed facilities: a. Ground Power Units {GPU) used to powerjet aircraft on the ramp must be performed by CNG or electric power vehicles, or by in-ground wiring. FBOs will have 1 yearfrom the signing ofthe leaseto meetthis requirement. b. All newfuel tanks constructed must beabove ground. c. Annual inspection reports will be provided to the Airport that shows the condition ofthe existing underground tanks. d. All diesel- or gas-powered vehicles and equipment used by the FBOs to perform their primary functions, such as fleet vehicles and equipment, must be powered by alternative fuels (i.e. CNG, Electric, etc.). FBOs will have 1year from the signingofthe lease to meetthis requirement. e. Hangars must be used only for the storage of aircraft and auxiliary equipment. f. Biofuels will be sold in lieu of JetA and 100 Very Low Lead and aviation unleaded fuels will be sold in lieu of 100 Low Lead as soon as these fuels are approved and commercially available. Ill. Aviation Maintenance Facilities Maintenancefacilities will be required to minimize their environmental impact by ensuring that all vehicles used inside the Airport Operations Area {AOA) are powered byalternativefuels. IV. Hangars · a. Hangarsthat 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. b. Hangars must be used only for the storage of aircraft and auxiliary 

### 5equipment. c. No subleasing is allowed. d. The City will request hangar owners to avoid from performing pattern operations at Santa Monica Airport during weekends, holidays, and evening hours. V. Tenants shall respondto Landlord's written inquiries regarding anycomplaints or issues, including postings on social media sites related to Tenant's operations. Tenant will provide an action·plan for ·improvement if so requested by the Landlord. VI. 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 airport concludes are appropriatetothe particularTenant'soperation. 6. MAINTENANCE AND TENANT IMPROVEMENTS All leaseholders shall be responsible for maintaining their facilities in attractive and safe condition, in compliance with applicable building and life safety codes and all applicable environmental laws, ordinances, regulations and standards. Airport facilities will be inspected prior to new or extended leasehold occupancy and refurbished, bythe City ortenant (atthe 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 ofwork. 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 theAirport Director. 7. TENANCY RELATIONSHIPS 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 ofroofs, building exteriors, landscaping and common use parking for all Airportmanaged 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. 8. TENANT RECRUITMENT All Citycowned buildings appropriate and suitable for leasing r:nay be subject to a pl,lblic 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 setforth herein. 

### 6All 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 ofthe respondent to perform; and setforth preliminarytermsand conditions. Upon confirmation that the proposed tenancy is consistent with: General Leasing Standards; verification of references and credit history; mutual preliminary concurrence in proposed lease terms and conditions; and approval of a Commercial Operations Permit, a lease agreement will be prepared for review by the City Attorney and execution by the prospective tenant before being referred to the City Manager for approval. Leases for terms greater than terms specified in these guidelines require Council approval. Staff may cooperate with commercial real estate brokers who are authorized to negotiate leases.on behalfofprospectivetenants. Recruitment for artist day studios will adheretothe criteria setforth bythe Cultural



### Affai~s Division of Community and Cultural Services Department. The Airport and Cultural Affairs work together to maintain the list and update financial qualificat'ions. Candidate tenants for available Artist Day Studio space are required to file Program applications for screening purposes, and qualifying artists are selected onlyfrom the screened waiting list. 9. LEASE APPROVALS & DELEGATION OF AUTHORITY
. The City Manager has the authority to negotiate and execute leases with terms of

.three years or less on terms consistent with these Leasing Guidelines. To be valid, such leases must be on the basis ofwritten agreements prepared and approved as to form by the City Attorney. Leases for termsofoccupancy greaterthanthreeyears or otherwise outside the parameters established by these guidelines will be negotiated by City staffunderthe direction ofthe City Manager and will require City Council approval. 10. GENERAL PROVISIONS These guidelines 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. These guidelines are intended to be consistent with, and subject to all requirements of law applicable to the City's operation of the airport, and shall not be interpreted or construed to conflictwith ortoviolate any such provision oflaw.



### 7

### CERTIFICATE OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I, Bradley C. Michaud, declare: I am employed in the County of Los Angeles, State of California. My business address is 1685 Main Street, Santa Monica, California 90401. I am over the age of eighteen years and not a party to the action in which this service is made. On August 14, 2013, I served the document(s) described as CITY OF SANTA MONICA'S MOTION TO 

### DISMISS on the interested parties in this action by enclosing the document(s) in a sealed envelope addressed as follows: Richard K. Simon, Esq. 1700 DeckerSchool Lane Malibu, CA 90265 rsimon3@verizon.net Office ofthe ChiefCounsel Attention: FAA Part 16 Docket Clerk AGC-600 Federal Aviation Administrative 800 Independence Avenue SW Washington, DC 20591 9-AWA-AGC-Part-16@faa.gov

**~** 

### BY MAIL: I am "readily familiar" with this firm's practice for the collection and the processing of correspondence for mailing with the United States Postal Service. In the ordinary course of business, the correspondence would be deposited with the United States Postal Service at 1685 Main Street, Santa Monica, California 90401, with postage thereon fully prepaid the same day on which the correspondence was placed for collection and mailing at the firm. Following ordinary business practices, I placed for collection and mailing with the United States Postal Service such envelope at 1685 Main Street, Santa Monica, California 90401.

**~** 

### BY ELECTRONIC SERVICE: Based on a court order or an agreement of the parties to accept electronic service, I caused the documents to be sent to the person(s) at the electronic services address(es) listed above. D [State] I declare under penalty of perjury under the laws of the State of California that the above is true and correct.

**~** 

### [Federal] I declare that I am employed in the office of a member ofthe Bar of this Court at whose direction the service was made.

Executed on August 14, 2014, at Santa Monica, C

# ~rE~lEDWrE~ AUG 18 

## 2014 Case No.: 16-14-04 BFflrilenJ Michaud io 9-AWA-AGC-Part

**1~ART** 

### 16 DOCKETS Cc: Lance Gams Dear Sir or Madam: 0811412014 06:45PM

Attached please find the City ofSanta Monica's Motion to Dismiss in the above-referenced Part 16 action. An original and three copies will follow by U.S. Mail. All parties have been served. Ifyou have any questions or concerns, please contact Lance Gams atthe number below oryou may email him at lance.gams@smgov.net. 

### Bradley Michaud CityAttorney's Office 1685 Main Street, Room 310 Santa Monica, CA 90401 310.458.8336
Please considerthe environment before printing this e-mail.