1 Richard	K.	Simon,	Esq. 1700	Decker	School	Lane Malibu,	CA	90265 (310)	503‐7286 rsimon3@verizon.net

October	11,	2016

Office	of	the	Chief	Counsel Attention:	FAA	Part	16	Airport	Proceedings	Docket
AGC‐610 Federal	Aviation	Administration 800	Independence	Avenue,	S.W. Washington,	DC	20591

Re: Response to Santa Monica College Corrective Action Plan (Docket No. FAA

‐ 16

‐ 16

‐ 02)

Mark Smith, Kim Davidson Aviation, Inc., Bill’s Air Center, Inc., National Business Aviation Association, Inc. and Aircraft Owners and Pilots Association, Inc. v. City of Santa Monica, California

Dear	Sir	or	Madam:

On	September	 29,	 2016,	 the	Respondent	 City	 of	Santa	Monica	 (“Ci ty”)	 filed	in	 this docket	 a	 proposed	 Corrective	 Action	 Plan	 to	 address	 the	 complia nce	 issues	 raised	 in section	 III	 of	 the	 Complaint	 filed	in	 this	 docket	 on	 February	 5 ,	 2016	 by	Mark	Smith,	Kim Davidson	Aviation,	 Inc.,	Bill’s	Ai r	Center,	 Inc.,	National	Busi ness	Aviation	Association,	 Inc. and	 Aircraft	 Owners	 and	 Pilots	 Association,	 Inc.	 (collectively “Complainants”).	 	 To	 the extent	necessary,	the	Complainants	respectfully	seek	leave	to	b riefly	respond	to	that	filing, consistent	 with	 the	 reservations previously	 made	 in	 their	 Answe r	 dated	 August	 1,	 2016 and	restated	in	their	Supplement	and	Objections	dated	September 19,	2016.

The	 City	 has	 proposed	 to	 reimburse	Santa	Monica	Municipal	Airpo rt	 (“Airport”	 or “SMO”)	 for	 the	below‐fair	market	value	(“FMV”)	rent	paid	 to	 the Airport	by	Santa	Monica College	(“SMC”)	for	its	non‐aeronautical	use	of	property	at	the Airport	between	February	1, 2010	 and	 June	 30,	 2016.	 	 The	 City	 has	 computed	 the	 differential plus	 interest	 to	 be $1,103,146.19.		Complainants	do	not	object	to	this	proposal,	wh ich	appears	to	resolve	the allegations	 made	 in	 section	 III	 of	 the	 Complaint	 for	 the	 timefr ame	 within	 the	 applicable statute	of	limitations	through	June	30,	2016.2 However,	absent	 from	the	City’s	proposed	Corrective	Action	Plan is	any	discussion of	how	the	City	will	ensure	curre nt	and	future	compliance	(i.e. ,	after	June	30,	2016).

In	 its	 Answer	 dated	 July	 1,	 2016,	 the	 City	 represented	 that	 an element	 of	 its Corrective	Action	Plan	would	be	that,	no	later	than	June	30,	20 17,	the	City	would	reimburse the	Airport	for	any	differential between	the	rent	paid	by	SMC	i n	FY	2017	(July	1,	2016‐June 30,	2017)	and	the	FMV	of	the	property	at	issue.		However,	the	p roposed	Corrective	Action Plan	 does	 not	 actually	 include	 such	 a	 commitment.	 	 Nor	 does	 the proposed	 Corrective Action	Plan	evaluate	the	FMV	of	the	property	at	issue	for	FY201 7,	so	it	is	unclear	how	the amount	 of	 any	 differential	 for FY2017	 would	 be	 determined.	 	 Als o	 unclear	 is	 if	 the	 City intends	to	indefinitely	subsidize	the	SMC’s	leasehold	with	taxp ayer	funds,	or	if	it	intends	to enter	into	a	new	FMV‐based	lease	with	the	SMC	before	the	end	of FY2017. 1

Accordingly,	 the	 Complainants	 do	 not	 understand	 the	 City’s	 Sept ember	 29,	 2016 filing	to	resolve	all	of	the	issu es	raised	in	section	III	of	th e	Complaint,	and	urge	the	FAA	to promptly	issue	a	decision	requiri ng	full	compliance	by	the	City with	its	federal	obligations.

Respectfully	submitted,

1700	Decker	School	Lane Malibu,	CA	90265 310‐503‐7286 rsimon3@verizon.net

1 Of	course,	as	the	FAA	is	aware,	one	of	the	core	issues	in	this proceeding	is	the	City’s	failure to	 enter	 into	 new	 leases	 with	 aeronautical	 tenants	 of	 the	 Airpo rt,	 which	 should	 be prioritized	over	new	leases	with	non‐aeronautical	tenants.3 Certificate of Service

I	hereby	certify	that	I	have	this	day	caused	the	foregoing	comp laint	to	be	served	on the	following	persons	by	first‐cl ass	mail	with	a	courtesy	copy by	electronic	mail:

Rick	Cole City	Manager City	of	Santa	Monica 1685	Main	Street,	Room	209 Santa	Monica,	CA	90401 manager@smgov.net Marsha	Moutrie,	Esq. City	Attorney City	of	Santa	Monica 1685	Main	Street,	Room	310 Santa	Monica,	CA	90401 marsha.moutrie@smgov.net

Susan	Cline Acting	Director	of	Public	Works City	of	Santa	Monica 1685	Main	Street,	Room	116 Santa	Monica,	CA	90401 susan.cline@smgov.net Stelios	Makrides Airport	Manager City	of	Santa	Monica Airport	Administration	Building 3223	Donald	Douglas	Loop	South Santa	Monica,	CA	90405 stelios.makrides@smgov.net

Nelson	Hernandez City	of	Santa	Monica 1685	Main	Street Santa	Monica,	CA	90401 nelson.hernandez@smgov.net Scott	Lewis,	Esq.
Partner Anderson	&	Kreiger	LLP One	Canal	Park,	Suite	200 Cambridge,	MA	02141 slewis@andersonkreiger.com

Dated	this	11th	day	of	October,	2016.

1700	Decker	School	Lane Malibu,	CA	90265 310‐503‐7286 rsimon3@verizon.net