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	 (“City”)	 filed	in	 this	

docket	 a	 proposed	 Corrective	 Action	 Plan	 to	 address	 the	 compliance	 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	Air	Center,	 Inc.,	National	Business	Aviation	Association,	 Inc.	

and	 Aircraft	 Owners	 and	 Pilots	 Association,	 Inc.	 (collectively	 “Complainants”).	 	 To	 the	

extent	necessary,	the	Complainants	respectfully	seek	leave	to	briefly	respond	to	that	filing,	

consistent	 with	 the	 reservations	 previously	 made	 in	 their	 Answer	 dated	 August	 1,	 2016	

and	restated	in	their	Supplement	and	Objections	dated	September	19,	2016.	

The	 City	 has	 proposed	 to	 reimburse	Santa	Monica	Municipal	Airport	 (“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,	which	appears	to	resolve	the	

allegations	 made	 in	 section	 III	 of	 the	 Complaint	 for	 the	 timeframe	 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	current	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,	2017,	the	City	would	reimburse	

the	Airport	for	any	differential	between	the	rent	paid	by	SMC	in	FY	2017	(July	1,	2016‐June	

30,	2017)	and	the	FMV	of	the	property	at	issue.		However,	the	proposed	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	FY2017,	so	it	is	unclear	how	the	

amount	 of	 any	 differential	 for	 FY2017	 would	 be	 determined.	 	 Also	 unclear	 is	 if	 the	 City	

intends	to	indefinitely	subsidize	the	SMC’s	leasehold	with	taxpayer	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	 September	 29,	 2016	

filing	to	resolve	all	of	the	issues	raised	in	section	III	of	the	Complaint,	and	urge	the	FAA	to	

promptly	issue	a	decision	requiring	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	 Airport,	 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	complaint	to	be	served	on	

the	following	persons	by	first‐class	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