Office of the City Attorney 

City Hall 

City of 

Santa Monica® 

1685 Main Street 

Room 310 

Santa Monica 

CA 90407-2200 

Office of the Chief Counsel 

AGC-600 

Federal Aviation Administrative 

800 Independence Avenue SW 

Washington, DC 20591 

Attention: FAA Part 16 Docket Clerk 

Re: FAADocketNo.16-14-04 

Dear Docket Clerk: 

August 14, 2014 

Bradley C. .-.1chaud 

bradley.michaud@s mgov.net 

~[E~[E~\YJ~~ 

[ AUG 18 2014 I 

PART 16 DOCKETS 

Enclosed please find an original and 3 copies of the City of Santa Monica's Motion to 

Dismiss in the above-referenced action. 

Also, enclosed with this filing in the above-referenced matter, please find a face sheet 

together with a pre-paid, self-addressed envelope. Please stamp the face page as received, and 

return the face page in the enclosed envelope. Thank you. 

Very truly yours, 

~ 

City Attorney's Office 

/bern 

tel: 31 o 458-8336 • fax: 310 395-6727 
_J 

<C 

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-(.D 

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0 

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: (310) 458-8336 

Facsimile: (310) 451-5862 

5 lance.gams@smgov.net 

6 Attorneys for Respondent 

CITY OF SANTA MONICA 

7 

8 

9 

10 

11 

12 

UNITED STATES DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, D.C. 

IN THE MATTER OF COMPLIANCE WITH 

13 FEDERAL OBLIGATIONS BY THE CITY OF 

SANTA MONICA, CALIFORNIA, 

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 

SUPPORTTHEREOF[PURSUANTT014 

C.F.R. §16.26(a),(b)] 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

PLEASE TAKE NOTICE that respondent CITY OF SANTA MONICA (hereinafter 

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

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

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

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

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

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

1. The subject matter of the Complaint is outside the jurisdiction and the authority of 

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 OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCI A T!ON, ET AL 

I 
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 of the reasons for seeking 

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

8 by or filed with the Director of the FAA. 

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 

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 CITY failed to take action that it is required to take under any Act or Grant Assurance. 

8 In fact, the Complaint does not even allege that the CITY has acted, or failed to act, in a 

9 way that violates any Act or any Grant Assurance. 1 

10 Complainants National Business Aircraft Association, Krueger Aviation, Inc., 

1 1 

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 order forcing 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 1 Complainants relegate comments about CITY's obligations under the 1948 Instrument of Transfer 

28 and Grant Assurance 23 to a footnote, which are obviously not issues for which Complainants are 

seeking redress in this Part 16 Complaint. As such, CITY simply states that it disagrees with 

Complainants' positions on these issues and will leave it at that for purposes of this proceeding. 

41644 

3 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
length of time in the future, whether it be for 1 year, 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 of the FAA's authority and 

4 

5 

6 

7 

power to exercise control over airport sponsors. 

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 

the CITY has "adopted proposals" directing CITY staff to "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 of compliance with 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 of the reasons it is seeking dismissal of the Complaint. Based upon any one or 

23 combination of the 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" of each Act that NBAA contends has been violated; nor 

27 

does it identify any present violation of any enumerated Grant Assurance. 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, ET AL 
Second, CITY seeks dismissal because the Complainants lack standing. 

2 Complainants have not alleged that they will be "directly and 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 of the 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 

l3 

the length of time 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, or the use of a dispute resolution 

18 board, or other form of third party assistance." /d. Complainants have alleged nothing 

19 

more than that they 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 

disputed matter. 

22 

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'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 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 protect the 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-war years, with the advent of jets 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-impact flight 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 except for the jet ban, which was invalidated on constitutional grounds; and 

16 the Ninth Circuit Court of Appeals 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 until2015. 

41644 

After the lease to the Federal government ended, the CITY accepted federal grants 

6 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 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 Grant that 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 of the grant agreement shall 

9 remain in full force and effect throughout the useful life of the facilities developed or 

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

II 

throughout the useful life of the project items installed within a facility under a noise 

12 

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

13 

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

14 

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

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

17 specifically in mind. 

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

19 

and the FAA executed "Amendment No. 1" to the Grant Agreement, using the same 

20 

contract number and project number as in the original Grant, solely to change the 

21 

description of the "airport development" to be instituted under the Grant Agreement. Then, 22 

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 of the Grant Agreement remain in full force 

27 

28 

and effect." (Please see Amendment No. 1 and Amendment No. 2 to the Grant Agreement, 

collectively attached to this Motion as Exhibit "B") 

7 

41644 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
In recent years, the Airport has continued to spawn controversies. The CITY has 

2 been involved in disputes with the aviation community and/or the 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 staff to 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. 

1 1 

At the conclusion of this three-phased "Visioning Process", an April30, 2013 staff report to 

12 

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

13 

adoption of a proposed Resolution revising SMO landing fees and applying them to all 

14 

15 aircraft as of August 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 staff to: 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 of the Airport; and, return 

22 

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

24 should, after the 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 of the Airport. 

27 

28 

Though the Visioning Process report did not take a position on whether the 

CITY should pursue closure of SMO at the expiration of the 1984 Agreement, it did 

8 

41644 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
conclude that the Airport status quo was unacceptable to a majority of the CITY residents 

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

3 Commission, residents, neighbors and members of the 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 of 2013, 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 of the land. The District Court 

10 dismissed the action based on, among other things, its conclusion that the Court lacked 

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 of this ruling is pending in the 

13 

Ninth Circuit. The expiration date of the 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 of the Motion only that the CITY was correct as to its interpretation of the 

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 staff to: continue to pursue CITY control of the 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 OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 CITY's General Fund; and continue receiving and assessing community input on 

2 preferences and possibilities for the potential future use of the land. 

3 After public comment and deliberation, Council added additional directions. 

4 

Specifically, the City Council directed staff to: offer to repay grant funds 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 of the 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 allow time 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 

J 5 Prior to the vote on the staff recommendations and the modifications thereto, 

16 the City Council publically and expressly confirmed that they 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 

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

22 

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 input from the Airport Commission and community before 

26 making any decisions on them. Such proposed leasing guidelines do not suggest that 

27 

28 

current tenants 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 OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 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 

for Agenda Item 8-A for 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 of the 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 Grant Assurance. Instead, the CITY 

10 continues to evaluate its options for the future of the 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 under the 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 may file 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) the complaint fails to state a claim. See 14 

21 

C.F.R. §16.26(b)(1)(i)-(iii). CITY believes and argues that under any or all of these grounds 22 

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 MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 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 

Sumner County Regional Airport Authority, 2010 WL 10241036, FAA Docket No. 16-07-16 

5 

(July 13, 201 0). "[l]n addressing allegations of noncompliance, the FAA will make a 

6 

7 determination as to whether an airport sponsor is currently in compliance with the 

8 applicable federal obligations." Larry L Davis v. Jackson Municipal Airport Authority, 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 Act that 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 of the entire AlP Grant Assurance regime" by making assertions 

17 about the duration of the 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 

discussing possible future plans for an airport DOES NOT violate any Federal obligations. 22 

23 "In fact, there is no Federal obligation which prevents an airport sponsor from studying the 

24 feasibility of future airport plans." Kenneth D. Paskar and Friends of LaGuardia Airport v. 

25 

26 

27 

28 

The Port Authority of New 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 manner that meets their federal obligations 

12 

41644 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 and is consistent with the approved Airport Master Plan and Airport Layout plan for the 

2 airport." (Citing Orange County Soaring Association 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 of the 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 under federal 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 

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

22 

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 OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 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 of which 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 that the exact opposite is true. In 

10 Santa Monica Airport Association, eta/, v. City of Santa 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 of the 

13 

1984 Settlement Agreement: "it is reasonable that the 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 user that 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 of their 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 of granting 

26 three year extensions and is still in the process of developing leasing guidelines. There is 

27 

28 

no evidence or even supportable contention that Complainants have been directly and 

substantially harmed by any actions of the CITY. 

14 

41644 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, 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 justify the 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 Of The FAA Administrator. 

9 The scope of the 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. 

12 

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

13 

the FAA Administrator. Not only does it involve the interpretation and determination of the 

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 lf the CITY does certain things 

17 in the future it will violate its Grant conditions. This would be tantamount to a person being 

18 arrested for possession of marijuana because he is thinking of obtaining 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 of the need for this Airport[ ... ]. While the FAA is 

26 always supportive of protecting public airport assets, the purpose of a Part 16 investigation 

27 

28 

process is to determine whether 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'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
(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 

8 Part 16 Complaint, other than dismissal, will involve a prospective and hypothetical 

9 exercise only, which should not take up the time and resources of the 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 matter with the CITY. See 14 C.F.R 

14 

15 §16.21. "Good faith" efforts at informal resolution may include "mediation, arbitration, or the 

16 use of a dispute resolution board, or other form of third party assistance." Good faith efforts 

17 would not include asking the CITY to "renounce" its belief that 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 if the CITY were 

20 

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

21 

alleged concern in their June 11, 2014 letter to the CITY (please see Exhibit 11 to the 

22 

23 Complaint), given that such a renunciation would not guaranty that the Complainants would 

24 be offered tenancies at SMO until2023, or even beyond 2015. 

25 Complainants have not attempted "mediation, arbitration, or the use of a dispute 

26 

27 

28 

resolution board, or other form of third party assistance." /d. Complainants have alleged 

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

Compl.1]1]31-34.) This is not initiating or engaging in good faith efforts to resolve the 

16 

41644 

CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 disputed matter. 

2 Despite its belief as to the expiration date of the 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 of that 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 of this 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, or for establishing lease terms. The FAA need not 

18 address in this proceeding the issue of whether the CITY's Grant obligations expire in 2015 

19 

or 2023; rather, the questions which the FAA can and should answer are whether the 

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 of the 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 SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL 

BUSINESS AIRCRAFT ASSOCIATION, ET AL 
1 Dated: August 14, 2014 

2 

3 

4 

5 

6 

7 

8 

9 

10 

II 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

41644 

18 

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 

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. DTFAOS-94-C-20857 

TO: City of Santa Monica, California 

(herein called the "Sponsor") 

FROM: 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: 

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 perimeter 

road; Construct blast walls -Phase 2; Install perimeter fence 

including gates, 

all as more particularly described in the Project Application . 

• 

Page 1 of 5 Pages 
NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of the 

Airport and Ain<ay Improvement Act of .1982, as amended by the Airport and Ain<ay 

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 sllowable 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 mede 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 assuranc·es 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 Pages 
all 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 othenvise, 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 specification$ 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 any 

projects for airport development or noise compatibility for which funds are 

provided under this grant. The sponsor will 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 

minimum: 

11.1.a. The name of the person representing the Sponsor who has overall 

respons~bility for contract administration for the project and the 

authority to take necessary actions to comply with the contract. 

11.1. b. Names of testing laboratories and consulting engineer firms with 

quality control responsibilities on the project, together with the 

description of the services provided. 

11.l.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). 

1l.l.d. Qualifications of engineering supervision and construction 

inspection personnel. 

ll.l.e. A listing of 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 
11.1.£. Procedures for ensuring that the tests are take~ in accordance 

with the program, that they.are documented daily, that the proper 

corrective actions, 'iVhere 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. deseribed in paragraph 12.2, or 

failure to perform such tests, shall, absent any eompelling 

justification, result in a reduction in Federal participation for eosts 

incurred in conneetion with construetion of the applieable pavement. Sueh 

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 eommensurate 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 results 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 Pages 
The 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 the'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. 

UNITED STATES OF AMERICA 

FEDERAL AVIATION ADHINISTRATION 

WESTERN-PACIFIC REGION 

By: 

Part II - Acceptance 

LrJ 

P. Milligan, Supe~isor 

Standards Section 

The sponsor does hereby ratify and adopt all assurances, statements, 

representations, ,;·rarranties, covenants, and agreements contained in the Project 

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 _ ___:2~9~t"'h,_ __ day of _ __,J,_,un=e"-------• 19 94. 

(SEAL) By: 

City of Santa Monica, California 

~~ 

Name of Sponsor 

AttestL~d:{J~ Sponsor's Designated Official 

Representative 

Title: City Manager 

Title: City Clerk 

CERTIFICATE OF SPONSOR'S ATTORNEY 

I, __ M_ar_s_h_a_J_._M_o_u_t_rt_·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 th~t will prevent full performance by 

the Sponsor. Further, it is my opinion that the said Grant Agreement constitutes a 

legal and binding obligation of the Sponsor in accordance with the terms thereof, 

Dated at Santa. Monica, CA this 29tbday of -~J~u~n~e~---' 1994. 

Sponsor's Attorney 

Page 5 of 5 Pages 
APPLICATION FOR i z. DATE SUI-MITTED ~~ ldentiHar 

FEDERAL ASSISTANCE 6/15/93 t. T'r'PE Of" IU!IMISSION: i 3, DATE JltECfiVElHiY fiT ATE sut• Applleotion ld<nmio< 

A() plies. rlon ProlJfJpficatlon . 

00 Con$tructioo 0 Construcuoo . .C. DATE RECl!'fVED 8Y ~AAL AOEHCV Fodtflllcklntllier .... 0 Non-constrvction 3-b6-0239-06 0 Non-Con"'""' ion AIP 

5. "PPLICA.HT INFORMAnOH 

UIQlllName: ~nizatlonal Unit: 

City of Santa Monica Santa Monica .Municipal Airport 

Add! II'$$ (QlWJ city, count)', ~tats, urd zip code): N$me e:nd tmphooe number of the pcatson.to ba corTtact.od on matt«t invo/vir.g 

3223 Donald Douglas Loop South lh!.s applicali:on (givt .,.. coda) • 

Santa Monica, CA 90405-3279 Timothy A. 1'/alsh (31 0) 458-8591 

(Los Angeles County) 

'· EM.PL.OYEII: ID£NTlFJC.4.nON NUMBER (EIH): 7. lYI'E 01' Al't'1.IC.U<T: (MtOr oppropr/llolttar In box) Kl I 9 I 51-16 I o I 0 I 0 I 7 I 9 I o I A. State H. lodepo• Idol'' Sehool Oi$1. 

B. County L SUtt.Conttolled INtilutlon of Hiqhof l.eami<>Q 

I, lYI'E 01' """LICATl<>N: 

c. J.lunlclpal J. Privott l.loi-.'O<~ty 

o. ToYttllhip K Indian Tribe 

[]!·New· 0 Contlnutt!on 0 Rovidon E. lntt< ... tt L lndMduol 

t1 Rfwislon, ttnter IPP'OI)fiatv ~tt~r{s) ln box{es): 0 0 

F. lntorinunlelpal Lt. Ptofit Ofpanizalion 

G. Spoelal Oiltrlot N. Ott... (Spo¢1fy): 

A. fncrease Award 8. Oecreus Awttrd C. lnefN:sa Ouretlon 

0. OectU$$ Our11tion Othe< (!pecily): t. IWI! Of'F£1)£1VJ. AO!NOY: 

Federal Aviation Admini.stration 

1C. CATALOG OF '!CERAI. DO~E$nC 12 I o 1. 1 I o 16 11, DEs.cRIPnV£ llTLE Of AP-PUCAHT'S PROJECT: ~ ASSISTA.NCE HUMBER< Blast walls; fencing/gates;- perimeter road 

'!TT\.t;, alignment; repair taxiways and aprons, 1 i ghting/signing; aircraft run-up enclosure; pave 

12. AA£4.1 An!CT!O II'( PROJECT (Cili$S, counti,s, Jfl./9$, •fc,): infield areas; and refurbish rotating beacon. 

City of Santa t·1onica and. Los Angeles 

County, California 

U. HIOPO-&EO PROJECT: U. CONOAESSIONAl. DISmiCTS c)~; 

Stint Date Ending Date •· Applieant j b. P,oje<t 

July 1994 Sept. i 995 ·28th 28th . tS. EUlMATED FUNOJNO: 11. IS. A.PPLICo\TlON SU&JEcry'TO UVJ£W BY STA.TE !X!Ct.mVE OAOER 1Zl72 f"ROCES$1 

•· Federal. $ 1,604,700 .00 •• . YES THIS PREAPPLICAllOWA?Pt.ICATION WAS J.IAOE AVAJLABI..E TO THE 

STATE EXECIJT1VE OllOER 12372 PROCESS FOR REVIEW ON: 

b. Applicant $ ·- 178,300.oo DATE 6/15/93 

c. Sate ' .00 0 b NO. P!lQGAAI.IIS NOT CC\IERED BV E.O. 12372 

d.l.oo&J ' .00 

.. 0 OR PRCGAAJ.I KAS NOT BEEN SElECTED BY STATE FOR REVlEW 

e. Other s .00 

f. Program lnc:omt s .00 17. t1 !HE AJitlUCAHT D£UHOV£HT OH urf nD£IUJ. P£m' · " 

g TOTAL ' 1,783,000.00 .0 Yu • tf -y.,, • ettld1 an axpllnaUon. IX! No 

. 

11. TO TliE lEST OF NY KHOWl.EOOE .&.NO i!LIEF. AU. OATAIH nil$ APftUCA.TlONHEA»UCATlON AAE TMUE AHCI COAAEOT, TM£ DOCUMENT KA.$11Eaf DULY 

AVTHOAtnD IV THE QOV!RNIHO BODY OF TllE APPLICANT AND THE APPI.ICAJ.ft WILl COMpt,Y Wfni "THE A"n'A¢HED .USUI'U.HCU tFTK! Alllil'ANe£ ts AWARDED 

a. TVPO'd' N.ame of·Authociled Rapfe.sentative I b. Titkl c. TMphono mimbet 

John Ja 1 il i City Manaaer ( 31 o'\· 458-8301 

d. SiQn.alure ol Authorired Raprb$€1ntttlve 1. Date ~ned 

+vi-. ;[~' 06/02/94 

.....,e'f'IOUS t:.OH•ons Not Uuble _sr.anoard o<m •-~'. tRcV <4·88) 

Authorized for 'Local Reproduction 
U.S, DEPARTMENT OF TRANSPORTATION ' . _JERAL AVIATION ADMINISTRATION 

OMO NO, 60·R0t&4 

PART II 

PROJECT APPROVAL INFORMATION 

SECTION A 

Item 1. 

Does this assistance request require State, 

regional, or other priori~y rating? 

Item 2. 

local, 

Yes 

Does this assistance request require State, or local 

advisory, educational or health clearances? 

No 

Name afGaverning Body-------------~ 

Priority Rating ------------~-----

Name of Agency or Board ___________________ ___ 

Yes X No (Attach Documentation) 

Item 3. 

Does this assistance request require dearinghouse review (Attach Comments) 

in accordance with OMB Circular A-95? 

---Yes _..eX_ No 

Item 4. 

Does this assistance request requi·re State 1 loco!, 

regional or other planning approval? 

__ X"-. Yes-~,. No 

Item 5. 

Is the propo·sed project covered by an approved 

comprehensive pian? 

Name of Approving Agency Soutflern Ca 1 i fornia 

Date Association of Governments 

Check one: State 0 

Local IXJ 

Regional 0 

X Yes ___ No Location of p 1 on ___ _,Cwi_,t".l.y_,_o _,_f~S,.,a"'n"'t"'a'--'-M"'o"-n'-'i-"c-"a __ 

Item 6. 

Will the assistance requested serve a Federal Nome of Federal Installation------------

installation? Yes_-.f>_No Federal Population benefiting from Project ______ _ 

Item 7. 

Will the assistance requested be on Federal land 

or installation? 

Name of Federollnstallation ____________ _ 

Location of Federal Land _____________ _ 

___ Yes_-A_No Percent of Project----------------

Item 8. 

Will the assistance requested h-ave on 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 

pro[ect previous, pending, or anticipated? 

Yes X 

No 

No 

See instruction for additional information to be 

provided. 

Number of: 

Individuals 

Families 

Businesses 

Forms 

See instructions for additional information to be 

provided. 

FAA Form SlQQ.lQQ (6·73) SUPERSEDES FAA FOAM 5100·10 PAGES 1 THRU 7 Page 2 
DEPARTMENT OF TRANSPORTATION- FEDERAL AVIATION ADMINISTRATION 

PART IT· SECTION C 

The Sponsor hereby represents and certifies as £o1Iows: 

1. 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 substantial portion of aeronautical· services from 

the southside of the Airport to the northside .. The northside provides compatible 

land use adjacent to airport operations that the so.uthside did not provide. This 

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 default on any obligation t<> the United States or any agency of the United States Govern· 

ment relative to the development, operation, or- maintenance of any airport, except as stated herewith: . 

None 

3. Possible Disabilities.-There are no facts or circumstances (inc1uding the existence of effective or proposed le.ases 1 use 

agreell!ents or other legal instruments affecting use of tbe Airport or the existence of pending litigation or other legal proceedings) 

which in reasonable 'probability might make it impossible for the Sponsor to carry out and complete· the Project or carry out the 

provisions of Part V of this Application, either by limiting its legal or financial ability or other:wise, except as follows: 

None 

4. Land.-{ a) The Sponsor holds the following property interest in the following areas of land* which are to he developed 

or used as part of or ·in connection with the Airport 1 sUbject to the following exceptions, encumbrances, and adverse interests, 

. all of which areas are identified on the aforemention.ed property map designated as Exhibit HA ": 

The City of Santa Monica has title in fee to all 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 of property interest in each area and lis't and identify for each .all exceptions, encumbrances, and adverse interests 

of every kind and J!Glure,, including liens, easements, leases, etc. The separate areas of land need orlly be identified here by the 

area number:s shown on the property map. 

FAA Form 5100-100 (4-761 Page 3a . 
DEPARTMENT OF TRA_NSPORTA TION - FEDERAL AVIATION ADMINI.STRA TIDN OMS NO. 04·R020~ 

PART II. SECTION C (Continued) 

The Sponsor further certifies that the above is ~ased on a title examination by a qualified attorney or title company and that 

such attorney or title company has determined that the Spons'or holds the above property interests. 

(b) The Sponsor will acquirt; within a reason"ahle 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 woZ.k is to be performed, 

all of which areas are identified on the aforementioned property map designated as Exhibit f<A '': 

None 

(c) The Sponsor wiH·acquire within a reasonable tlme, and if feasible prior to the completion of all construction work under 

the Project, the following property interest 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, aU of which areas are identified on the aforementioned 

property map designated as Exhibit "A": 

None 

5, Exclusive Rights.~ There is no grant of an exclusive right "for the conduct of any aeronautical activity at any airport owned 

or controlled by the Sponsor except as.follows: · . 

None 

*State character of properly interest in each area and list and ide11tijy for each all eXceptions, encumbrances, and adverse interests 

of every kind and nature, including liens, easements; leases, etc, The separate areas of land need only be identified here by the area numbers·shown on the property map. 

FAA Form 5100-100 i4·J61 P"'l•3b 

FAA/4:. 81.()6913 
DEPARTMENT OF TRANSPORTATION . FEDERAL AVIATION ADMINISTRATION OMB NO SQ..R0t~4 

PART Ill- BUDGET INFORMATION- CONSTRUCTION -

SECTION A - GENERAL 

1. Federal Domestic Assistance CatalOg No~,,,., .. ,.;., 20.106 

2, Functionol or Othe( Breakout ..... , .......... , , . , 

SECTION B- CALCULATION OF FEDERAL GRANT 

--~- ... U~a o.n,I,Y for revisions 

Toto! 

Cost C!csslflcotlon Amount 

LQtast Approved Ad[v$tm4nt' Re<Jvifed 

Amount t Of(-) 

J. Administration expense s s s 10,000,00 

2. Preliminary expense 30 000 00 

3 .. Lan!l,structures, righl-of-way ' -0- ., 

. 4. Arthiteclural engineering ~asic fees • 120,000.00 

5. Other architectural engineering fees -0- . 6. Projectinspection fees 143,000.00 

7, Land development -0-

8. Relocation Expenses ~o9, Relocation payments to Individuals and Businesses -0-

10. Demolition and removal -0-

11. Construction and projecHmpwvement 1 480 000.00 

12. Equipment · -0-

13. Miscellaneous . . -0-

14. Total (Lines 1 through 13) 1 783 000.00 

15. Estimated Income (if applicable) -0-

16. Net Projecl 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 

20. Federal Share requested of Line 19 1 .604. 700 00 

21. Add Rehabilitation Grants Requested (100 Percent) -0-

21. Total Federal grant requested (Lines 20 & 21) 1,604,700.00 

23. Granlee share 178,300.00 

24. Other shares --"- -- -0-

25. Total project (Lines 12, 23 & 14) s s $ 1,783,000.00 . FAA form 5100~100 (613) SUPERSEDES FAA FORM 5100 10 PAGES I THRU 7 Pogo 4. 
DEPARTMENT OF TRANSPORTATION - FEDERAL AVI A TtDH A DM INI5TR A TON I 

.. 

SECTION C -EXCLUSIONS -~"-

Cla~:s.Hk~dan ln.~:ligi~le for e .... -:l ... d"d lrorn 

Ponic:lpotion Contingo.,c:y Provbioro 

26 Ill t21 

.. $ • . 

b 

'· 

d • 

.. 

'· 

,_ T otc.!.s s s 

SECTION D - PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE 

27. Grantee Share s 178,300.00 

a. Securities --- ... 

b. Mortgages 

c. App10priations (By Applicant) 

d. Bonds 

e. Tax L?vies 

f. Non Cash 

g. Other (Explain) 

h. TOTAL - Grantee shaJe 178,300.00 

2R. OtheJ Shares I 

a. State 

b. OtheJ 

c. Total Othe. Shares 

29. TOTAL s 178,300.00 

I 

SECTION E - REMARKS 

b Part V Assurances are ·incorporated herein. 

p Title VI DOT Assurances are incorporated herein. 

b "Exhibit A", Property Map; is incorporated by reference (see ?reapplication submitted 

June 16, 1993). 

p Plans and Speci f.i cations for AlP 3-06-0239-06 are i ncdrporated by reference. 

PART IV PROGRAM NARRATIVE !Attach See Instructions) 

FAA form 5100-100 (6-73) SUPERSEDES F' AA FORM S 100- ~0 PAGES I THRU 7 Page 5 
PART IV- PROGRAM NARRATIVE 

APPLICATION FOR FEDERAL ASSISTANCE 

SANTA MONICA AIRPORT 

Santa Monica, California 

AIP Project No. 3-06-0239-06 

Project 1-Blast Walls -Phase II 

Aircraft bast from jets departing on Runway 3-21 has become an increasing 

problem at Santa Monica Airport. Phase I of the Blast Wall Project placed walls 

near the departure runup areas. The walls have effectively prevented debris from 

blowing across roadways and into residential areas. Phase II of the Blast Wall 

Project will prevent and deflect the high velocity blast of departing aircraft from 

reaching the residential areas east of the runway end. This will provide 

significant relief to those affected by the aircraft blast. 

Project 2 - Fencing and Gates - Phase II 

Runway incm·sions continue to be a problem at Santa Monica, requiring further 

restrictions on access. The Phase I Access Control Project involved the 

installation of six (6)access control gates and perimeter fencing. Additional 

signage, road closures, restrictions to access, and education of users have. reduced 

the number of runway incursions. Further actions are required, including the 

installation additional access control gates and fencing. 

Project 3 - Perimeter Road Realignment 

! 

The circulation of vehicles on the Airport's airside has caused significant safety 

problems over the past several years. Numerous improvements have been made 

to reduce runway incursions and vehicle and aircraft conflicts including the 

installation of an FAA access control project. With all of the improvements, 

runway incursions continue to be a significant problem. To complete the safety 

improvements, the City proposed to realign the west perimeter road to connect 

with Airport Avenue. 'rhis will greatly enhance safety by redirecting vehicles 

outside the air operations area. 

Project 4-Repair, Seal Coat, and Mark Existing Taxiways 

This project consists of a crack seal and seal coat of the existing north and south 

parallel taxiways. The condition of the taxiways at the Airport has deteriorated 

because of frequent use by large business jet aircraft. Some of the taxiway 

pavement is part of the original runway built in 1942. Numerous longitudinal 

cracks exist on the taxiway. Some reconstruction will be required in isolated 

areas where structural failures have occurred because of the larger aircraft using 

the facility. 

Page 1 of 3 
Project 5 - Lighting and Signing 

This project consists of the installation of runway distance remaining markers 

that are needed by large business jets requiring the full runway length. 

Additionally, guidance signs are to be installed to define the runway better and to 

prevent runway incursions. The final component of this project is to recess 

taxiway lights in those areas where above-ground lights are repeatedly struck by 

aircraft maneuvering on the ground. 

Project 6-Repair, Seal Coat and Mark Existing Parking ApronsPhase II 

This project consist of a follow-up to the original project submitted as part of the 

AIP-04 project in 1988. The aircraft parking aprons have permanently been 

established as a result of the significant change that occurred in 1986 when the 

aeronautical activities were moved from the southside to the northside of the 

Airport. As a result, some of the City parking areas require crack repair, seal 

coat, and tiedown reconfiguration. An increase in aircraft tiedown capacity will 

Jc'esult with the reconfiguration ofthe aprons. 

Project 7 - Aircraft Maintenance Runup Enclosure 

Aircraft runup noise for maintenance inspections has become an increasing 

problem at urban airports like Santa Monica. The amount of space allocated on 

the Airport to conduct these operations safely and with as little intrusion to the 

surrour,tding neighborhoods has become increasingly difficult. The maintenance 

run up enclosure is required to abate the increasing number of turbine engine runups at the Airport as this segment of Santa Monica's traffic increases. The 

maintenance run up enclosure will handle business jet aircraft with up to 60-foot 

wing spans. 

Project 8 - Pave Infield Areas 

The infield areas between the north and south parallel taxiways and the runway 

presently consist of oiled native material. These areas have deteriorated, causing 

drainage problems and debris that is blown onto the runway by jet blasts. Project 

8 will cap these areas with asphalt to eliminate drainage and FOD problems now 

being experienced. 

Project 9 - Refurbish Rotating Beacon 

The present airport r~tating beacon is low-powered and difficult to see at night or 

in low visibility in the Los Angeles Basin. The beacon is over 40 years old and is 

in need of replacement. Additionally, the existing tower needs painting and 

repairs. 

Page 2 of 3 
SANTA MONICA AIRPORT 

AlP 3·06·0239-06 

PROJECT COST SUMMARY 

Total Federal 

Project Cost Share 

Blast Walls - Phase II $ 330,000 $ 297,000 

Fencing/Gates 111,111 100,000 

Perimeter Road Realignment 311,000 279,900 

Repair, Seal, and Mark Taxiways 202,000 181,800 

Lighting and Signing 63,889 57,500 

Repair, Seal, and Mark Aprons 220,000 198,000 

Aircraft Maintenance Run up 

Enclosure 385,000 346,500 

Pave Infield Areas 125,000 112,500 

Refurbish Rotating Beacon __ 35.000 31,500 

TOTAL $1,783,000 $1,604,700 

Local 

Share 

$ 33,000 

11,111 

31,100 

20,200 

6,389 

22,000 

38,500 

12,500 

3.500 

$178,300 

Page 3 of 3 
A. General 

PARTY 

ASSURANCES 

Airport Sponsors 

October 1, 1990 

1Jncorporates revisions of Assurances 9 and 26 (11/04/92)] 

1. These assurances shall be complied with in the performance of grant agreements for airport 

development, airport planning, and noise compatibility programgrants to airport sponsors. 1- - • - .- • 

2. These assurances are required to be submitted as part of the p;·oject application by sponsors 

requesting funds under the provisions of the Airport and Airway Improvement Act of 1982, as 

amended by the Ahport and Airway Safety and Capacity Expansion Act of 1987, or the Aviation Safely 

and Noise Abatement Act of 1979. As used herein, the term, "public agency sponsor" means a public 

agency with control of a public use airport; the term "private sponsor" means a private sponsor of a publicuse airport; and the term 11Sponsof11 includes public agency sponsors.and private sponsors. 

3. Upon acceptance of the grant offer by the sponsor, these assurances are incorporated in and become 

part of the grant agreement. 

B. Duration and Applicabll!ty. 

1. Airport Development or Noise Compatibil!ty Program Projects Undertaken by a Public Agency 

Sponsor. The terms, conditions and assurances of the grant agreement shall remain in full force and 

effect throughout the useful life of the facilities developed or equipment acquired for an airport 

development or noise c01npatibility program project, or throughout the useful life of the project items 

installed within a facility under a noise compatibility program project, but in any event not to exceed 

twenty (20) years from the date of the acceptance of a grant offer of Federal funds for the project. 

However, there shall be no limit on the duration of the .Ssurance against exclusive rights or the terms, 

conditions, and assurances with respect to real property acquired with Federal funds. Furthermore, the 

duration of the Civil Rights assurances shall be as specified in the assurance. 

2. Airport Development or Noise Compatibility Program Projects Undertaken by a Private Sponsor. 

The preceding paragraph 1 also applies to a private sponsor except that the useful life of project items 

instalied within a facility or the useful life of facilities developed or equipment acquired under an airport 

development or noise compatibility program project shall be no less than ten(10) years from the date of 

the acceptance of Federal aid for the project. 

3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in the grant agreement, 

only Assurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, 34 and 36 in Section C apply to planning projects. The terms, 

conditions, and assurances of the grant agreement shall remain in full force and effect during the life of the 

project. 

C. Sponsor Certification, The sponsor hereby assures and certifies, with respect to this graot that: 

1. General Federal Requirements. It will comply with ali applicable Federal laws, regulations, 

executive orders, policies, guidelines and requirements as they relate to the application, acceptance and use 

of Federal funds for this project including but not limited to the following: 

Federal Legislation 

a. Federal Aviation Act of 1958- 49 U.S.C. 1301, et seq. 

b. Davis-Bacon Act- 40 U.S.C. 276(a), et seq.l/ 

c. Federal Fair Labor Staodards Act - 29 U .S.C. 201, et seq. 

Page 1 of 11 
U These laws do not apply to private sponsors. 

~/ 49 CFR Part 18 and OMB Circular A-87 contain requirements for State and local 

governments receiving Federal assistance, Any requirements levied upon State and 

local governments by this regulation and circular shall also be applicable to private 

sponsors receiving Federal assistance under the Airport and Airway Improvement Act 

of 1982, as amended. · 

Specific assurances required to be included in grant agreements by any of the above laws, 

regulations or circulars are incorporated by reference in the grant agreement. 

2. Responsibility and Auth'orlty of the Sponsor. 

a. Public Agency Sponsor: It has legal authority to apply for the grant, and to finance and carry 

out the proposed project; that a resolution, motion or similar action has been duly adopted or passed 

as an official act of the applicant's governing body authorizing the filing of the application, 

including all understandings and assurances contained therein, and directing and authorizing the 

person identified as the official representative of the applicant to act in connection with the · 

application and to provide such additional information as may be required. 

b. . Private Spons~r! It has legal imthority to apply for the grant and to finance and carry out the 

proposed project and comply with all terms, conditions,' and assurances of this grant agreement. It 

shall designate an official representative and shall in writing direct and authorize that person to file 

this application, including all understandings and assurances contained therein; to act in connection 

with the application; ~·d to provide such additional information as may be required. 

3. Sponsor Fund Availability. It has sufficient funds available for that portion ofthe project costs which 

are not to be paid by the United States.· It has sufficient funds available to assure operation and. 

maintenance of items funded under the grant agreement which it will own or control. 

4. Good Title 

a. It holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, 

or will give assurance satisfactory to the Secretary that good title will be acquired. 

b. For noise compatibility program projects to be carried out on the property of the sponsor, it 

holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds 

will be expended or will give assurance to the Secretary that good title wilt' be obtained. 

5. Preserving Rights and Powers. 

a. It will not take or permit any action which would operate to deprive it of any of the rights and 

powers necessary to perform any or all the terms, conditions, and assurances in the grant agreement 

without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify 

any outstanding rights or claims of right of others which would interfere with such performance by the 

sponsor. This shall be done in a manner acceptable to the Secretary. 

b. It will not sell, lease, encumber or otherwise transfer or dispose of any part of its title or other 

interests in the property shown on Exhibit A to this application or, for a noise compatibility program 

project, that portion of the property upon which Federal funds have been expended, for the duration 

of the terms, conditions, and assurances in the grant agreement without approval by the Secretary. If 

the transferee is found by the Secretary to be eligible under the Airport and Airway Improvement Act 

of 1982 to assume the obligations of the grant agreement and to have the power, authority, and 

financial resources to carry out all sucl1 obligations, the sponsor shall insert in the contract or document 

transferring or disposing of the sponsor's interest, and make binding upon the transferee, all of the 

terms, conditions and assurances contained in this grant agreement. 

Page 3 of 11 
11. Local Approval, In projects involving the construction or extension of any runway at any general 

aviation airport located astride a line separating two counties within a single state, it has received approval 

for the project from the governing body of all villages incorporated under the Jaws of the state which are 

located entirely within five miles of the nearest boundary of the airport, 

U. Terminal Development Prerequisites. For projects which mclude terminal development at a public 

airport, it has, on the date of submittal of the project grant application, all the safety equipment required 

for certification of such airport nnder section 612 of the Federal Aviation Act of 1958 and afl the security 

equipment required by rule of regulation, and has provided for access to the passenger enplaning and 

deplaning area of such airport to passengers enplaning or deplaning from aircraft 'other than air carrier 

aircraft.· 

13, Accounting System, Audit, n!ld Record keeping Requirements. 

a, . It shall keep ,all project accounts and records which fully disclose the ~m9unt anci disposition 

by the recipient of the proceeds of the grant, the total cost of the project in connection with which the 

grant is given or used, and the amount and nature of that portion of the cost of the project supplied by 

other sources, and such other financial records pertinent to the project. The accounts and records shall 

be kept in accordance with an accounting system that will facilitate an effective audit in accordance 

with the Single Audit Act of 1984. · 

b. It shall make av~ilable to the Secretary and tile Comptroller General of th\) United States, or any 

of their duly authorized representatives, for the purpose of audit and examination, any books,' 

documents, papers, and records of the recipient that are pertinent to the grant. The Secretary may 

require that an appropriate audit be conducted by a recipient. In any case in which an . ' 

independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds 

of a grant or relating to the project in connection with which the grant was given or used, it shall file 

a certified copy of such audit with the Comptroller General of the United States not later than six (6) 

months foll~wing the close of the fiscal year for which the audit was made:. 

14, Minimum Wage Rates. It shall ioclude, io all contracts in excess of $2,000 for work on any projects 

funded under the grant agreement which iovolve labor, provisions establishing minimum rates of wages, 

to be predetermined by the Secretary of Labor, in accordance with the Davis-Bacon Act, as 

amended ( 40 U.S.C 276a--276a-5), which contractors shall pay to skilled 1md unskiUed labor, and such 

minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for 

wqrk. 

15, Veteran's Preference. It shall include, in all contracts for work on any projects funded under the grant 

agreement which involve labor, such provisions as are necessary to insure that, in the employment of 

labor( except in executive, administrative, and supervisory positions), preference shall be given to veterans 

of the Vietnam era and disabled veterans as defmed io Section 515(c)(1) and (2) of the Airport and Airway 

Improvement Act of 1982, However, this preference shall apply only where the individuals are available 

and qualified to perform the work to which the employment relates. 

16. Conformity to Plans and Specifications. It will execute the project subject to plans, specifications, and 

schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the 

Secretary prior to commencement of site preparation, construction, or other performance under th.is grant 

agreement, and, upon approval by the Secratary, shall be incorporated ioto this grant agreement. Any 

modifications to the approved plans, specifications, and schedules shall also be subject to approval by the 

Secretary and incorporation ioto the grant agreement. 

17, Construction Inspection and Approval. It will provide and maintain competent technical supervision 

at the construction site throughout the project to ensure that the work conforms with the plans, 

specifications, and schedules approved by the Secretary for the project. It shall subject the 

.construction work on any project contaioed in an approved project application to iospection and 

approval by the Secretary and' such work shall be in accordance .with regulations and procedures 

PageS of 11 
repair, restoration, or replacement of any structure or facility which is substantially damaged or 

destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. 

b. It will suitably operate and maintain noise compatibility program items that it owns or controls 

upon which Federal funds have been expended. 

20. Hazard Removal and Mitigation. It will 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) will be adequately cleared and protected by removing, lowering, relocating, 

marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or 

creation of future airport hazards: 

21. Compatible Land Use. It will take appropriate action, including the adoption of zoning laws, to 

the extent reasonable, to restrict the use of the land adjacent to or in the immediate vicinity of !he airport 

to activities and purposes compatible with normal airport operations, including landing and takeoff of 

aircraft. In addition, if the project is for noise compatibility program implementation, it will not cause Of 

permit any change .in land use, within its jurisdiction, that will reduce the compatibility, with respect to 

the airport, of the noise compatibility program measures upon which Federal funds have been expended. 

22, Economic Nondiscrimination. 

a. It will make its airport available as an airport for public use on fair and reasonable terms and 

without unjust discrimination, to all types, kinds, and classes of aeronautical uses. 

b.< ~~- ~Y agreeme~Lcontract, lease or ~·ther ar;angemeUt'_Unde; \vhiCh ~ ·~ight or privilege at ti1;e , 

airport is granted to any person, firm, or corporation to .conduct ·or enga·ge in aiiy aeronaUtical activity 

for furnishing services to the public at the airport, the sponsor will insert and enforce provisions 

requiring the contractor to- · · 

(1) furnish said services on a fair, equal, and not unjustly disc;irninatory basis to all users 

thereof, and · · 

(2) charge fair, reasonable, and not unjustly discriminatory prices for each unit or service, 

provided, that the contractor may be allowed to make reasonable and nondiscriminatory 

discounts, rebates, or other similar types of price reductions to volume-purchasers. 

c. Each frxed-based operator at any airport owned by the spons'or shall be subject to the same 

rates, fees, rentals, and other charges as are uniformly applicable to all other f1Xcd-based operators 

makiog the same or similar uses of such airport and utilizing the same or slmilar facilities. 

d. Each air carrier usiog such airport shall have the right to service itself or to use any fixed-based 

operator that is authorized or permitted by the airport to serve any air carrier at such airport. 

e. Each air carri~r using such airport (whether as a tenant, nontenant, or subtenant of another air 

carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, 

regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and 

substantially related to providing air transportation as are applicable to all such air carriers which make 

similar use of such airport and which utilize slmilar facilities, subject to reasonable classifrcations such 

as tenants or non tenants and signatory carriers and non-signatory carriers. Classification or status as 

tenants or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes 

obligations substantially similar to those already imposed on air carriers in such classifrcations or 

status. 

f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or 

corporation operating aircraft on the airport from performing any services on its own aircraft with its 

own employees (including, but not limited to maintenance, repair, and fueling) that it may choose to 

perform. 

Page 7 of 11 
26. Reports und Inspections. It will submit to the Secretary such annual or special financial and 

operations reports as the Secretary may reasonably request. A report of the Airport budget will be 

available to the public at reasonable times and places. For airport development projects, it will also make 

the airport and all airport records and documents affecting the airport, including deeds, leases, operation 

and use agreements, regulations and other instruments, available for inspection by any duly authorized 

agent of the Secretary upon reasonable request. For noise compatibility program projects, it will also make 

records and documents relating to the project and continued complinnce with terms, conditions, and 

assurances of the grant agreement including deeds, leases, agreements, regulations, and other instruments, 

available for inspection by any d\Jly authorized agent of the Secretary upon reasonable request. ,. ' '·' ' ·i 

27. Use of Government Aircraft. It will make available all of the facilities of the airport developed with 

Federal frnancial assistance and all those usable for landing and takeoff of aircraft to the United States for 

use by Govermnent aircraft in common with other aircraft at all times without charge, except, if the use 

by Govermnent aircraft is substantial, charge may be made for a reasonable share, proportional to such 

use, for the cost of operating and maintaining the facilities used. Unless otherwise determined by the 

Secretary, or otherwise agreed to by the ~ponsor and the using agency, substantial use of an airport by 

Govcrmnent aircraft will be considered to exist when operations of such aircraft are in excess of those 

which; in the opinion of tbe Secretary, would undulyinterfere with use of the landing areas by other 

authorized aircraft, oi during any calendar I!l<inth that- · 

u. • Fi~e (5) or more Government aircraft aie regularly based at the airport or on land adjacent 

thereto; or 

b ... The total number of movements( counting each landing as a movement) of Government aircraft is 

300 or .more, or the gross accumulative weight of Goverriment aircraft using the ' 

airport (the total movements of Govermnent irlrcraft multiplied by gross weights of such aircraft) is in 

excess of five million pounds. ,. ' . 

28. La;d for Federal Facilities, It will furnish without cost to the Federal Government for use in 

connection with any air traffic contfol or air navigation activities, or weather-reporting and communication 

activities related to air traffic control, any areas of land or water, or estate therein, or rights in buildings 

of the sponsor as the Secretary considers necessary or desirable for construction, operation, and 

maintennnce at Federal expense of space or facilities for such purposes. Stich areas or any portion thereof 

will be made available as provided herein within four montbs after receipt of a written request from the 

Secretary. 

29; Airport Layout Plan 

a. It will keep up to date at all times nn airport layout plan of the airport showing (1) boundaries of 

airport and aJI proposed additions thereto, together with the boundaries of all offsite areas owned or 

controlled by the sponsor for airport purposes nnd proposed additions thereto; (2) the location nnd 

nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, 

terminal buildings, hangars and roads), including all proposed extensions and reductions of existing 

airport facilities; and (3) the location of all existing and proposed nonaviation areas and of all existing 

improvements thereon. Such airport layout plan and each amendment, revision, or modification 

thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the 

signature of a duly authorized representative of the Secretary on the face of the airport layout plan. 

The sponsor will not make or permit any changes or alterations in the airport or in any of its facilities 

which are not in conformity with the airport layout plan as approved by the Secretary nnd which 

might, in the opinion of the Secretary, adversely affect the safety, utility, or efficiency of the airport. 

b. If a change or alteration in the airport or its facilities is made which the Secretary determines 

adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on 

or off the airport and which is not in conformity with the airport layout plan as approved by the 

Secretary, the owner or operator will, if requested by the Secretary (1) eliminate such adverse effect in 

a manner approved by the Secretary; or (2) bear all costs of relocating such property (or replacement 

thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement 

Page9 of 11 
CURRENT FAA ADVISORY CIRCULARS FOR AlP PROJECI'S 

Effective Date: 6/1/94 

NUMBER . SUBJECT 

70/7460-lH Obstruction Marking and Lighting 

CHG 1&2 . . 

150/5100-14C Archltectnral, Engineering, and Planiting Consultant Services for Airport 

Grant Proiects . 

150/5210-5B ... Painting, Marking and Lil!hting of Vehicles Used on an Airport 

150/5210-78 Aircraft Fire and Rescue Communications . 

150/5210-14 Airoort Fire and Re8cue Personnel Protective Clothing 

150/5210-15 Airnort Rescue & Frrefightilll! Station Building Design 

150/5210-18 Systems for Interactive Training of Airport Personnel 

150/5220-4B Water Suoolv Svstems for Aircraft Fire and Rescue Protection 

150/5220-lOA Guide Specification for Water/Foam Type Aircraft Re8cue and FtrefJghting 

Vehicles 

150/5220-DB Rlinivay Surface Condition Sensor Specification Guide 

150/5220-14A Airoort Fire and Rescue Vehicle Specification Guide 

·150 I 5220-16A Automated Weather Obser\'iug Systems for NonFederal Applications 

150/5220-17A Design Standards for Aircraft Rescue FrrefJl!hting TralninJi Facilities - 150/5220-18 Buildings forStorage and Maintenance of Airport Snow and Ice Control 

EqUipment and Materials · · · · 

150/5220-19 . Guide Specification for Small, Dual-Agent Aircraft Rescue and Firefighting 

Vehicles 

150/5220-20 Airport Snow and Ice Control Equipment ... 

CHGl 

150/5220-21 Guide Specification for Lifts Used to Board Airline Passengers With Mobility 

CHG1 Impairments 

150/5300-13 Airport Design 

CHG1 2&3 

150/5300-14 Desim of Aircraft Deicing Facilities 

15QL5300-15 Use of Value Engineering for EJigineering Design of Airport Grant Proiects 

150/5320-SB Ali port Drainage 

150/5320-6C Airport Pavement Design and Evaluation 

CHG1&2 

150/5320-12B Measuremen~ Construction, and Maintenance of Skid Resistant Airport 

·Pavement Surfaces 

150/5320"14 Airport Landscaping for Noise Control Purposes 

150 I 5325-4A Runway Length Requirements for Airport Design 

CHG1 

150/5340-lG Standards for AirQOrt MarkillJ!s 

150 /5340-4C Installation Details for Runway Centerline Touchdown Zone Lighting Systems 

CHG1&2 

150/5340-5B Segmented Circle Airport Marker System 

CHG1 

150/5340-14B Economy Approach Lighting Aids 

CHG1&2 

150/5340-178 Standbv Power for NonFAA Airport Lighting Svstems 

150/5340-lSC Standards for Airport Sign Systems 

CHGl 

.. 
34. Policies, Standards, and Specifications. It will carry out the project in accordance with policies~ 

standards, and specifications approved by the Secretary including but not limited to the advisory circulars 

listed in the Current FAA Advisory Circulars for AlP Projects, dated June 1.1994 and included in this 

grant, and in accordance with applicable state policies, standards, and specifications approved by the 

Secretary. 

35. Relocation and Real Property Acquisition. (1) It will be guided in acquiring real property, to the 

greatest extent practicable under State law, by the land acquisition policies in SubpartB of 49 CFR Part 24 

.and will pay or reimburse property owners for necessary expenses as specified in Subpart B. (2) It will 

provide a relocation assistance program offering the services described in Subpart C and fair and 

reasonable relocation payments and assistance to displaced persons as required in Subparts D and E of 49 

CFR Part 24; (3) It will make available \vithin a reasonable period of time prior to displacement 

comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24. 

36. Drug-Free Workplace. It will proVide a drug-free workplace at the site of work specified in the 

grant application in accordance with 49 CFR Part 29 by (1) publishing a statement notifYing its employees 

that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is 

prohibited in the sponsor's workplace and specifying the actions that will be taken against its employees for 

violation of such prohibitions; (2) establishing a drug-free awareness program to inform its employees 

about the dangers of drug abuse in the workplace and any available drug counseling, rehabilitation, and 

employees assistance programs; (3) notifying the FAA \vithin ten (10) days after receiving notice of an 

employee criminal drug statute conviction for a violation occurring in the workplace; and (4) making a 

good faith effort to maintain a drug-free workplace. 

Page 11 of 11 

04/07/2008 13:05 310725&849 FAA LAX ADO PAGE 04 

Fax frol'lll 

U.S. Department 

of Tf"",,mspu1taUo11 

Fedora! Aviation 

Admlnistra:uon 

f'agc 1 Of 2P11QOC 

Contract No. DTFADB-94-C.20B57 

Santa Monica Airport 

Santa Monica, California 

AMENDMENT NO. 1 TO GRANT AGREEMENl FOR PROJECT NO. 3-0!Hl23SHJ6 

WHEREAat the t=edeml A.,;iation 1\dmlnietratlon (hereinafter r~f~~t1 tn ru; the. "FAA") has determined it to be In the 

Interest of the United States that the Grant Agreemenl between the FAA, acting for and on behalf of the United 

States. and the city of santa Monica, (hereinafter retemod to as the 'Sponsor"), accepted by said Sponsor on the 5th 

day of June, 1994, be amended a$ hereinafter provided. 

NOW I HI::REFORE, WITNeSSETH; 

Ttlat In conslderaflon of the benefits to acaue to the parties hereto, the FAA on behalf of the'\Jnlted Statea, on the 

one part, and the Sponsor. on the otller part, ao hereby mutually agree U1<1t ..,;d Grant 1\greemcnt be end lo horeby 

amended M follows: 

Delete the airport development descrtbed on page one and substirute in lieu thereof the f<>llowlng described 

airport development, 

Pave h'lfield areas; Install runway distance remaining signs and guidance slgns and tlush mounled 

trodway lights; seal and mark north and south parallel taxiways; constn.Jct blast walls -Phase 11: install 

polirT'14;1tc»r fonee- lnctudlno o='-tA~; mhabirrtate north and souttl aircraft tledown areas; rehabifltate aircraft 

tiedown areas adjacent to Taxiway B. 

IN WITNESS WHEREO~. the parties hereto have oau•ed this Amendment to said Grant Agreement to be duly 

executed as of the 8th day oL.J!.QYember 1999. 

3187256849 

UNITED STATES OF .AMERICA 

FEDERAL AVlAilON ADMINISTRAilON 

WES'TERN-P ACIFIC REGION 

84/07/88 16:38 Pg: 4 
04/07/2008 13:05 3107256849 FAA LAX ADO PAGE 05 

Fax fro"' 

Title: City Manager 

(SEAL) 

All=-'- l! p • ===)g), ~0 ':-d 

Tnle: Ci t:y Cl er:~ 

CERTIFICATE OF SPONSOR'S ATTORNEY 

Page 2 of 2 Pages 

Project No. 3-0e-0239-oe 

Contract No. OTF AO!I-94-C-20857 

City of~S.anta Monica 

(Name of Sponsor) 

1. Marsha Jones Moutrie , acting a• Attorney for the city of Santa Monica, (hereinafter referred to as 

the "Sponsa(') do hereby certify: 

That 1 have examined the foregoing Amen(lment to the Grant Agreernt:Jnt and the proGeedlng:s taken by the 

Sponsor reteting thereto, and finding the oxec:utlon !hereof by $aid Sponsor has been duly autl1ortzed and is In all 

respects due and proper and In accordance with the laws of the State of California, and further that, in my opinion, 

said Amendment to Grant Agreement constltutes a legal and binding obligation of tne S)lonsor In auou1~ance with 

the terms thereof. 

Dated at Santa Monica , this 8th day of November ,1999. 

11tle: _ ___.:C,_,i,:t:.~..Y...:A.!.:t:.:t::::o_,_rn::.:e::.;Y,_ ________ _ 

318725&849 Pg: 5 
84/87/2808 13:85 

U.S. Department 

of Transpo..wtion 

Federal Aviation 

Administration 

3107256849 FAA LAX ADO PAGE 02 

Page 1 of 2 Pages 

Contr<lct No. DTFAOR-94-C-20857 

Santa Monica Airport/Planning Area 

Santa Monica, California 

AMENDMENT NO. 2 TO GRANT AGREEMENT FOR PROJECT NO. NO. 3-06-0239..06 

WHEREAS, the Federal Aviation Administration (hereinafter referred to as the "FAA") has determined it to be in the 

Interest of the United States that the Grant Agreement between the FAA, acting tor and on behalf of the United 

States, and the city of Santa Monica, (hereinafter referred to as the "Spon$Or"), accepted by said Sponsor on tho 

29th day of June, 1994, be amended in conformance with Sponsor's letter dated September 27, 2002. 

NOW THEREFORE, WITNESSETH: 

That In consideration of the benefit<: to.accrua to thg parties hereto. the FAA on beha~ of the United States. on the 

one part, and the Sponsor, on the other part, do hereby mutually agree that said Grant Agreement be and Is hereby 

amended "s follows: 

The maximum obligation stated on page 2, condition 1. is hereby increased by $240,600.00, 

from $1,604,700.00 to $1,845,300.00. 

All other terms and conditions of the Grant Agreement remain in full force and effect. 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to said Grant Agreement to be duly 

executed as or the 2 7 d~y of Auguot, 2000. 

Fax fro., 318725&849 

UNITED STATES OF AMr!ftiCA 

FEDERAL AVIATION ADMINISTRATION 

WESTERN-PACIFIC REGION 

Supervisor, Standards Section 

1!4/87/1!8 1&:38 Pg: 2 
(SEAl) 

......___....,\ - . 

Attest: .~1 -~ 

Titlo: City CJ"'rk 

By: 

Title: 

rAA LAX ADO PAGE B3 

Page 2 of 2 Pages 

Contract No. DTFAOB-94-C-20857 

santa Monica Airport/Planning Area 

Santa Monica, California 

City Manager . (Typed TIUt: ur Sf'~n~ur'.s Ov:sJgnated Offlr;;JCII nepresentoti·~¢) 

CERTIFICATE OF SPONSOR'S ATTORNEY 

I, Marsha Jones Moutrie , acting as Atlomey for the Sponsor do hereby certify: 

That I have examined the foregoing Amendment to the Grant Agreement and the proceedings taken by the 

Sponsor r<>lating thereto, and fiqding tho &x&cution thereof by said Sponsor h•~ heen duly authorized and is in all 

respects due and proper and in accordance with the Jaws ot the State of California, and further that, in my opinion, 

said Amendment to Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with 

the terms thereof. 

Dated at Santa Monica 'this 27th dayof _ _:A;;:u;;:g::.u.--s_t.--__ ,2003. 

By: 

Fax from. Fg: 3 

State of California 

County of Los Angeles 

City of Santa 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 

belief the 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 of the City of Santa Monica, this 131

h day of August, 2014. 

Vernice Hankins 

Staff Assistant Ill, City Clerk's Office 

City of Santa Monica 
e • ~ 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 of properties 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 independent from 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 

Airport facilities are comprised of approximately 114 non-aviation and 11 aviation leases 

. as well 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 benefit the 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 staff to 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 under their 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 

community while 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 perl'ormed 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 the time of the 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. 

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 or the environment. 

The majority of the 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 year thereafter. 

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 

by the 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 of the 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 prior to 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% of total Airport revenues, which is the largest component 

of the 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 of the 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 of fuel altogether, it is staff's opinion that such 

acti~n would most likely lead to litigation. 

It is uncertain when an alternative to 100 low lead (1 OOLL) Avgas will become available 

in the industry. 1 OOLL is the standard fuel used by piston engine aircraft and has been 

in the center of controversy due to the low levels of tetraethyllead 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 1 OOLL makes its way to common use. Staff has continued their 

efforts and found approved alternatives to 1 OOLL 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 1 OOLL 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 1 OOVLL fuel uses approximately 20-

30% Jess tetraethyl lead than the maximum allowed for standard 1 OOLL fuel. Staff is 

currently in talks with fuel manufacturers to determine the time line of availabilityof these 

fuels. Once commercially available, fuel service providers at the Airport would be 

required to offer unleaded avgas and 1 OOVLL in lieu of 1 OOLL. 

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 of these 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 aircraft 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 new tanks above ground. 

4. Fixed Based Operators, maintenance 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 do any of the guidelines commit the Manager to 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 if the 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 or feedback regarding these guidelines. 

9 
Financial Impacts & Budget Actions 

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 Public Works/Airport Director 

Attachments: 

Forwarded to Council: 

Rod Gould 

City Manager 

A - Proposed Santa Monica Airport Leasing Guidelines 

10 
ATIACHMENTA 

Approved by the Airport Commission:-'----

Approved by City Council: ___ _ 

SANTA MONICA AIRPORT LEASING GUIDELINES 

The Santa Monica Airport Leasing Guidelines ("Guidelines") provide the framework for 

fair and consistent leasing and licensing of City-owned properties at the Santa Monica 

Airport. The Guidelines provide parameters and general policy on a II owed uses, 

standards and terms, and tenant recruitment and selection. They reflect the general 

intent and goals of the City of Santa 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 not depend or rely on the airport for their business. 

As of the date of these guidelines there are approximately 11 aviation leases, 186 licenses 

for airplane hangars and aircraftparking areas (tie-downs) and 114 non-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 accounts for 63% of total 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 of June 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. 

1 
1. PURPOSE OF THESE LEASING GUIDELINES 

These guidelines have been developed to: 

I. Establish practices and procedures for evaluating potential leasehold 

interests, and for lease management and 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 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. 

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 the framework 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 to the airport, the aviation leases and the use 

of the airport. 

2. MANAGEMENT STRUCTURE 

Leasing and licensing at the Airport is the responsibility of the City of Santa 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 the time of the 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 

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 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 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: 

I. Rates: All new and renewed leases will be leased at Market Rate based on 

the appraisal commissioned by the 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 study is conducted. 

II. Renewals: For tenants who 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 of sales. 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 is paid. 

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IV. 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" below, will be offered the opportunity to retain use 

and occupancy of their currently leased premises subject to the "Term" 

provisions prescribed in Section 3.1 of this report. 

V. Whole Building leases: Whole building leases may, at the City's discretion, be 

subject to public Requests for Proposals intended to optimize l.easehold 

occupancy and the self-sustainability of the 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 

year intervals. 

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 practices that 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 opportunity to renew 

4 
their leases and preference will be given to prospective tenants that abide by the 

following performance standards: 

a. All flight schools and flying clubs will be requested to use newer type aircraft 

that are quieter (i.e. light sport} or use Federal Aviation Administration 

approved noise reduction technologies in reducing their 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. 

II. Fixed Based Operators (FBOs) 

Existing FBOs will be provided the opportunity to renew their leases and 

prospective FBOs to obtain a lease if they 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 power jet aircraft on the ramp must be 

performed by CNG or electric power vehicles, or by in-ground wiring. FBOs 

will have 1 year from the signing of the lease to meet this requirement. 

b. All new fuel tanks constructed must be above 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 1 year 

from the signing of the lease to meet this 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 

Maintenance facilities will be required to minimize their environmental impact by 

ensuring that all vehicles used inside the Airport Operations Area (AOA) are 

powered by alternative fuels. 

IV. Hangars· 

a. Hangars that 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 

5 
equipment. 

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 respond to Landlord's written inquiries regarding any complaints 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 appropriate to the particular Tenant's operation. 

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, by the City or tenant (at the 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 of work. 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 the AirportDirector. 

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 of roofs, 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 may be subject to a 

public 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 set forth herein. 

6 
All 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 of the respondent to perform; 

and set forth preliminary terms and 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 behalf of prospective tenants. 

Recruitment for artist day studios will adhere to the criteria set forth by the Cultural 

Affai~s Division of Community and Cultural Services Department. The Airport and 

Cultural Affairs work together to maintain the list and update financial 

qualifications. Candidate tenants for available Artist Day Studio space are required 

to file Program applications for screening purposes, and qualifying artists are 

selected only from 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 of written agreements prepared and approved as 

to form by the City Attorney. Leases for terms of occupancy greater than three years 

or otherwise outside the parameters established by these guidelines will be 

negotiated by City staff under the direction oft he 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 

conflict with or to violate any such provision of law. 

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 Decker School Lane 

Malibu, CA 90265 

rsimon3@verizon.net 

Office of the Chief Counsel 

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 

li!l 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. 

li!l 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. 

li!l [Federal] I declare that I am employed in the office of a member of the Bar of 

this Court at whose direction the service was made. 

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

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