Office ofthe CityAttorney City Hall

City of Santa Monica® 1685 Main Street Room 310 Santa Monica CA 90407-2200



### Office ofthe ChiefCounsel AGC-600 Federal AviationAdministrative 800 Independence Avenue SW Washington, DC 20591 Attention: FAAPart 16 DocketClerk Re: 

### FAADocketNo.16-14-04 DearDocket Clerk: August 14, 2014 Bradley C. .-.1chaud bradley.michaud@smgov.net

# ~[E~[E~\YJ~~ [ AUG 18 

## 2014 

# I

PART 16 DOCKETS

Enclosedplease find an original and 3 copies ofthe City ofSantaMonica'sMotionto Dismiss inthe above-referenced action. Also, enclosedwiththis filing in the above-referencedmatter, please find a face sheet together with a pre-paid, self-addressed envelope. Please stamp theface page as received, and returnthe face page inthe enclosed envelope. Thankyou. Verytrulyyours,

# ~ City Attorney's Office /bern

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

## _J 

# <C 

# z:


# - (.D


# - c::.t=: 

# 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 ofthe following grounds: 1. The subject matter ofthe 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 OFNATIONAL BUSINESSAIRCRAFT ASSOCIAT!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 ofthe reasons for seeking 7 

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

### by or filed with the Director ofthe FAA. 9 10 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 MOTIONTODISMISS 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 ofSanta Monica 5 

### (hereinafter "CITY") has not committed a violation ofany 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 ofthese 18 

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

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

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

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

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

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

### However, Complainants have no "right" to be lessees at SMO for a specific and guaranteed 26 27 1

### Complainants relegate comments about CITY's obligationsunderthe 1948 Instrument ofTransfer 28 

### and Grant Assurance 23 to a footnote, which are obviously not issues for which Complainants are seeking redress inthis Part 16 Complaint. As such, CITY simply states that it disagrees with Complainants' positions onthese issues andwill leave it at thatfor purposes ofthis proceeding.

41644 

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

### length oftime 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 ofthe 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 staffto "plan to implement further 8 

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

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

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

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

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

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

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

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

### dismissed in its entirety with prejudice. 18 

### II. 19 20 

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

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

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

### combination 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 GrantAssurance. 14 C.F.R 28 

### §16.23(b)(1).

41644 

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

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

### Complainants have not alleged that they will be "directlyandsubstantially" 

### affected by any 3 

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

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

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

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

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

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

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

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

### perhaps beyond, this is clearly NOT something the FAA has authority to do regardless of l3 

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

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

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

### 14 C.F.R §16.21. 17 

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

### board, or other form ofthird 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 SANTAMONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFTASSOCIATION, ETAL1 

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

### housing for thousands of Douglas workers. 3 

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

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

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

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

### the CITY. 9 

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

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

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

### various restrictions on high-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 ofAppeals affirmed, recognizing that Federal law does not preempt 17 

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

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

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

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

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

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

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

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

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

### obligated the CITY to operate the Airport until2015.

41644 

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

### 6 CITY OF SANTAMONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### 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 ofthe 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 ofthe grant agreement shall 9 

### remain in full force and effect throughout the useful life ofthe facilities developed or 10 

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

### throughout the useful life ofthe project items installed within a facility under a noise 12 

### compatibility program project, but in any event not to exceed twenty (20) years from the 13 

### date ofthe 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 GrantAgreement, using the same 20 

### contract number and project number as in the original Grant, solely to change the 21 

### description ofthe "airport development" to be instituted underthe 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 ofthe Grant Agreement remain in full force 27 28 

### and effect." (Please see Amendment No. 1 and Amendment No. 2 to the GrantAgreement, 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 ofthe 1984 Settlement Agreement,
8 

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

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

### extremes of either maintaining the status quo at the Airport or moving towards full closure. 1 1 

### At the conclusion ofthis 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 ofAugust 1, 2013; and, development of a City-funded pilot program for 16 

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

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

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

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

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

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

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

### should, 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 ofthe 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 ofthe 1984 Agreement, 

### it did 8

41644 CITY OF SANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OF NATIONAL BUSINESSAIRCRAFT ASSOCIATION, ET AL

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

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

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

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

### and Council. 6 7 

### In October 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 ofthe land. The District Court 10 

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

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

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

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

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

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

### expiration date. 18 

### In March of2014, staff returned to the City Council with further recommendations 19 

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

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

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

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

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

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

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

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

### 9

41644 CITY OFSANTA MONICA'S MOTION TO DISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### 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 staffto: offerto repay grantfunds to terminate the 5 

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

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

### offer to renew current leases for three years with one-year options thereafter atthe 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 J5 

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

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

### final decisions about SMO's future. 

### This position was reiterated by Deputy City Attorney 18 

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

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

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

### neighbors. But, the Council has made no decision aboutthe 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 THEPART 16 COMPLAINT OF NATIONAL BUSINESS AIRCRAFTASSOCIATION, ETAL1 

### 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 GrantAssurance. Instead, the CITY 10 

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

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

### practices that are as environmentally friendly as possible 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 lacksjurisdiction; 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 ofthese 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 AIRCRAFTASSOCIATION, ET AL1 

### 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 RegionalAirportAuthority, 

### 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 MunicipalAirportAuthority, 

### 2011 9 

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

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

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

### 14 C.F.R §16.23(b)(1). 12 

### Indeed, the Complaint does not identify any 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 ofthe CITY's grant obligations. These assertions are vague, 18 

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

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

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

### 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 sponsorfrom studying the
24 

### feasibility offuture airport plans." Kenneth 

### D. PaskarandFriends ofLaGuardia Airport v. 25 26 27 28 

### The PortAuthorityofNew York, 

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

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

### 12

41644 CITY OF SANTA MONICA'S MOTION TODISMISS THE PART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

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

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

### FAA Docket 3 

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

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

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

### Co. v. Pacific Oil 

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

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

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

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

### 392 U.S. 83, 10 

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

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

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

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

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

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

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

### 14 C.F.R 18 

### §16.23(b)(4) 19 

### It is axiomatic underfederal lawthat 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 relieffor 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 OFSANTA MONICA'S MOTION TODISMISS THEPART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

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

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

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

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

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

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

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

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

### In 10 

### Santa Monica AirportAssociation, eta/, v. City ofSanta Monica (hereinafter 

### "SMAA'), FAA 11 

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

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

### 1984 Settlement Agreement: "it is reasonable that the City has not provided long-term, full 14 15 

### service FBO leases to Complainants[.]" Similarly, the Directorfound 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 oftheir location on the airport 20 

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

### In the 

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

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

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

### to terminate Complainants' leases. Council has previously approved a policy 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 MOTIONTO DISMISS THEPART 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 SoughtTo Be Resolved 8 

### Is Outside OfThe Jurisdiction OfThe FAA Administrator. 9 

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

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

### FAA has jurisdiction in this case based on existing facts. 12 

### The explanation is simple: the Complaint falls outside ofthe Part 16 jurisdiction of 13 

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

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

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

## 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 ofthe arrest. 21 22 

### The Final Decision and Order in the SMAA 

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

### 21, is instructive on this point as well. In affirming the Director's decision to dismiss 24 

### that Complaint, 

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

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

### 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 MOTIONTODISMISS THEPART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ETAL

### (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 ofthe FAA. 10 

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

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

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

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

### 14 C.F.R 14 15 

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

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

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

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

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

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

### alleged concern in their June 11, 2014 letterto 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 ofthird party assistance." 

### /d. Complainants have alleged nothing more than that they sent two letters over a three week period to the CITY. (See Compl.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 AL1 

### disputed matter. 2 

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

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

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

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

### part ofthat public process ifthey so choose.
8 

## v. 9 

### CONCLUSION 10 

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

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

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

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

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

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

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

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

### or 2023; rather, the questions which the FAA can and should answer are 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 ofthe foregoing reasons, CITY 25 

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

### prejudice. 27 28

41644 17 CITY OFSANTA MONICA'S MOTIONTO DISMISS THE PART 16 COMPLAINTOFNATIONAL BUSINESS AIRCRAFT ASSOCIATION, ET AL1 

### 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 THEPART 16 COMPLAINT OFNATIONAL BUSINESS AIRCRAFTASSOCIATION, ET ALDEPARTMENT 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 PagesNOW 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 Pagesall documents and records pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or 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 Pages11.1.£. 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 PagesThe Sponsor's acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall·be evidenced by execution of this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance shall comprise a Grant Agreement, as provided by the Act, constituting the contractual obligations and rights of the United States and the Sponsor with respect to the accomplishment of 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"-------• 1994.

(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 fiTATE sut•Applleotion ld<nmio< A()plies. rlon ProlJfJpficatlon

. 

### 00 Con$tructioo 0 Construcuoo 

# . .C. DATE RECl!'fVED 8Y**~AAL** AOEHCV Fodtflllcklntllier 

### .... 3-b6-0239-06 0 Non-constrvction 

### 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,** urdzip code): N$me e:nd tmphooe number of the pcatson.to ba corTtact.od on matt«tinvo/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: (MtOroppropr/llolttar In box) 

## Kl 

# I9 

# I 51-16 

# Io

# I0 

# I0 

# I 7

# I9 

# Io 

# 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 

# Io 16 11, DEs.cRIPnV£llTLE OfAP-PUCAHT'S PROJECT:**~** ASSISTA.NCE HUMBER< 

### Blast walls; fencing/gates;- perimeter road '!TT\.t;, 

### alignment; repair taxiways and aprons, 1

### ighting/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£WBYSTA.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 6/15/93 DATE 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 !HEAJitlUCAHT D£UHOV£HT OH urfnD£IUJ. P£m' · "

g TOTAL 

# ' 1,783,000.00 

## .0Yu • 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 IVTHE QOV!RNIHO BODY OFTllE APPLICANT AND THE APPI.ICAJ.ft WILl COMpt,Y

### Wfni"THE A"n'A¢HED .USUI'U.HCU tFTK! Alllil'ANe£tsAWARDED 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 Ca1 ifornia Date 

### Association of Governments

Check one: State 

### 0 Local 

### IXJ Regional 

### 0 X Yes
___No Location of p1 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 2DEPARTMENT 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 ofthe United States Govern· ment relative to the development, operation, or- maintenance ofany 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 ofpending litigation orother 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 ofPart V ofthis Application, either bylimiting 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 Airport1 sUbject to the following exceptions, encumbrances, and adverse interests,

. all ofwhich 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 ofproperty interest in each area and lis'tand identifyfor each .allexceptions, encumbrances, andadverse interests ofevery kind and J!Glure,, including liens, easements, leases, etc. The separate areas ofland need orlly be identified here by the area number:s shown on theproperty map. FAA Form 5100-100 (4-761 Page 3a
.DEPARTMENT OF TRA_NSPORTATION - FEDERAL AVIATION ADMINI.STRATIDN 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 thatthe 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 beperformed, all ofwhich areas are identified on the aforementioned property map designated as Exhibit f<A'': None

(c) The Sponsor wiH·acquire within a reasonable tlme, and iffeasible prior to the completion ofall 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 ofany aeronautical activity atany airport owned or controlled by the Sponsorexcept as.follows: · . None

*State character of properly interest in each area and list and ide11tijyfor each all eXceptions, encumbrances, andadverse interests ofevery kind and nature, including liens, easements; leases, etc, The separate areas ofland need only be identified here by the area numbers·shown on theproperty map. FAA Form 5100-100 i4·J61 P"'l•3b FAA/4:. 81.()6913DEPARTMENT 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

**~o** 9, 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 1through 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 ofLine 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 TtDH A INI5TR TON 

## - A DM A 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•



# .. '·

,_ Totc.!.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 Specif.i cations for AlP 3-06-0239-06 are incdrporated by reference. PART IV PROGRAM NARRATIVE !Attach See Instructions) FAA form 5100-100 (6-73) SUPERSEDES F'AA FORM S100-

**~0** PAGES I THRU 7 Page 5

### PART IV- PROGRAM NARRATIVE APPLICATION FORFEDERALASSISTANCE SANTAMONICA AIRPORT

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

### Project 1- Blast Walls -Phase II Aircraftbastfromjets departing on Runway 3-21 hasbecome anincreasing problem at SantaMonica Airport. Phase I ofthe BlastWallProjectplacedwalls nearthe departure runup areas. The walls have effectively prevented debris from blowing across roadways andintoresidential areas. Phase II ofthe BlastWall Projectwill prevent and deflect the high velocity blast of departing aircraftfrom reaching theresidential areas east oftherunway end. This willprovide significantrelief to those affected bythe aircraftblast. 

### Project 2

- Fencing and Gates

- Phase II Runway incm·sions continueto be a problem at SantaMonica, requiringfurther restrictions on access. ThePhase I Access Control Projectinvolvedthe installation ofsix (6)access control gates andperimeter fencing. Additional signage, road closures, restrictions to access, and education ofusers have.reduced the number ofrunway incursions. Further actions are required, includingthe installationadditional access control gates andfencing. 

### Project 3 - PerimeterRoad Realignment ! 

### The circulation ofvehicles on the Airport's airside has caused significant safety problems overthepast several years. Numerous improvements havebeenmade toreduce runwayincursions andvehicle and aircraftconflicts includingthe installation of an FAA access control project. With all ofthe improvements, runway incursions continue 

### to be a significantproblem. To complete the safety improvements, the Cityproposed torealign the westperimeterroad to connect with AirportAvenue. 'rhis will greatly enhance safety by redirecting vehicles outside the air operations area. 

### Project4- Repair, Seal Coat, and Mark ExistingTaxiways This project consists of a crack seal and seal coat ofthe existingnorth and south parallel taxiways. The condition ofthetaxiways at theAirport has deteriorated because offrequent use by large businessjet aircraft. Some ofthetaxiway pavementis part ofthe original runwaybuiltin 1942. Numerous longitudinal cracks exist onthe taxiway. Somereconstructionwillbe required inisolated areas where structural failures have occurredbecause ofthe larger aircraft using the facility. Page 1 of3

### Project 5 - Lighting and Signing This project consists ofthe installation ofrunway distanceremainingmarkers that are neededby largebusinessjetsrequiringthefull runwaylength. Additionally, guidance signs areto be installed to define therunwaybetter andto preventrunwayincursions. The final component ofthis projectis to recess taxiway lights inthose areas where above-ground lights are repeatedly struck by aircraftmaneuvering on the ground. 

### Project 6- Repair, Seal Coat and MarkExisting Parking ApronsPhaseII This project consist of a follow-up to the originalproject submitted aspart ofthe AIP-04 projectin 1988. The aircraftparking aprons havepermanentlybeen established as a result ofthe significant changethatoccurredin 1986 when the aeronautical activities weremovedfrom the southsideto thenorthside ofthe Airport. As 

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

### increasein aircrafttiedown capacity will Jc'esult with the reconfiguration ofthe aprons. 

### Project 7 - Aircraft Maintenance Runup Enclosure Aircraftrunup noise for maintenance inspections hasbecome anincreasing problem aturban airports like SantaMonica. The amount ofspace allocated on the Airportto conductthese operations safely and with as little intrusionto the surrour,tding neighborhoods has become increasingly difficult. The maintenance run up enclosureis requiredto abate the increasingnumber ofturbine engine runups attheAirport as this segmentof Santa Monica's traffic increases. The maintenance run up enclosure will handle businessjet aircraft with up to 60-foot wing spans. 

### Project 8 - Pave InfieldAreas The infield areas betweenthe north and southparallel taxiways andthe runway presently consist ofoilednative material. These areas have deteriorated, causing drainageproblems and debris thatis blown onto therunway byjetblasts. Project 8 will cap these areas with asphaltto eliminate drainage andFOD problems now being experienced. 

### Project 9 - RefurbishRotating Beacon Thepresent airport

**r~tating** 

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

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

- Phase II 

### $ 330,000 

### $ 297,000 Fencing/Gates 

### 111,111 100,000 PerimeterRoad Realignment 

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

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

### 63,889 57,500 Repair, Seal, andMark Aprons 

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

### 385,000 346,500 Pave InfieldAreas 

### 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 3A. General PARTY ASSURANCES Airport Sponsors

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

1. These assurances shall be compliedwith in theperformance ofgrant agreements for airport development, airport planning, and noise compatibilityprogramgrants to airport sponsors. 1-

- • - .- • 2. These assurances are required to be submitted as part ofthe p;·oject applicationby sponsors requestingfunds under the provisions oftheAirport and Airway ImprovementAct of 1982, as amendedby theAhport and AirwaySafety and CapacityExpansion Act of 1987, orthe Aviation Safely andNoiseAbatement Act of1979. As used herein, theterm, "public agency sponsor" means 

### apublic agency with control ofapublicuse airport; the term "private sponsor" means aprivate sponsor ofapublicuse airport; and the term 11Sponsof 11 includes public agency sponsors.andprivate sponsors. 3. Upon acceptance ofthegrant offerby thesponsor, these assurances areincorporated in andbecome partofthe grant agreement. B. DurationandApplicabll!ty. 1. Airport Development orNoise Compatibil!ty Program Projects Undertakenbya Public Agency Sponsor. The terms, conditions and assurances ofthe grant agreement shallremain in full force and effect throughout the useful life ofthe facilities developed or equipment acquiredfor anairport development ornoise c01npatibilityprogramproject, orthroughout the useful life oftheproject items installedwithin afacility under a noise compatibilityprogramproject, but in any eventnotto exceed twenty (20) years from the date ofthe acceptance ofa grantofferofFederalfunds for the project. However, there shallbeno limit on the duration ofthe .Ssurance against exclusive rights or the terms, conditions, andassurances with respect to realpropertyacquired with Federal funds. Furthermore, the duration ofthe Civil Rights assurances shall be as specified inthe assurance. 2. Airport Development orNoise CompatibilityProgram Projects Undertaken by a Private Sponsor. Theprecedingparagraph 1also applies to aprivate sponsor except that the useful life ofprojectitems instalied within afacility or the useful life offacilities developed or equipment acquired under an airport development or noise compatibilityprogram project shall 

### beno less than ten(10) years from the date of the acceptance ofFederal aidfor the project. 3. AirportPlanningUndertaken by a Sponsor. Unless otherwise specifiedin the grant agreement, onlyAssurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, 34 and 36in Section C apply to planningprojects. Theterms, conditions, and assurances ofthe grant agreement shall remaininfull force and effect during the life ofthe project. C. SponsorCertification, The sponsor hereby assures and certifies, with respect to this graotthat: 1. General Federal Requirements. Itwill complywith ali applicableFederal laws, regulations, executive orders, policies, guidelines and requirements as they relate tothe application, acceptance and use ofFederalfunds for this projectincludingbutnot limited to the following: Federal Legislation
a. FederalAviation Act of1958- 49 U.S.C. 1301, et seq. b. Davis-BaconAct- 40 U.S.C. 276(a), et seq.l/ c. FederalFair Labor StaodardsAct

-29 U.S.C. 201, et seq. Page 1 of 11

### UTheselaws do not apply to private sponsors.

**~/** 49 CFRPart 18 and OMB CircularA-87 contain requirementsfor State andlocal governments receiving Federal assistance, Any requirementslevied upon State and local governmentsby this regulation and circular shall also be applicableto private sponsorsreceiving Federalassistance under theAirport andAirway Improvement Act of 1982, as amended. · Specific assurances required to beincluded in grant agreementsby any ofthe above laws, regulations orcirculars areincorporated byreference inthegrant agreement. 2. Responsibility andAuth'orlty ofthe Sponsor.
a. PublicAgency Sponsor: Ithas legal authorityto applyfor the grant, andto finance and carry outtheproposed project; that a resolution, motion or similar actionhasbeenduly adopted orpassed as an official

# act ofthe applicant's governingbodyauthorizingthefiling ofthe application, including all understandings and assurances contained therein, and directing and authorizingthe personidentified as the officialrepresentative ofthe applicant to act in connectionwiththe · application and to provide such additional information as mayberequired. b.
.Private

**Spons~r!**Ithas legal imthorityto apply for thegrant andtofinance and carryout the proposedprojectand complywithall terms, conditions,'and assurances ofthis grant agreement. It shall designate an official representative and shallinwritingdirect and authorizethat person to file this application, including all understandings and assurancescontained therein; to act in connection with the application;

**~·d** to provide such additionalinformationas mayberequired. 3. SponsorFundAvailability. Ithas sufficientfunds availablefor that portion oftheprojectcosts which are not to bepaid by the UnitedStates.· Ithas sufficientfunds available to assureoperation and. maintenance ofitems fundedunder thegrantagreementwhich it will own or control. 4. GoodTitle
a. Itholds good title, satisfactory to theSecretary, to thelanding area ofthe airport or site thereof, orwill give assurance satisfactorytothe Secretarythat good titlewillbe acquired. b. For noisecompatibilityprogramprojects to be carriedout on thepropertyofthe sponsor, it holds good title satisfactorytotheSecretarytothat portionoftheproperty upon which Federalfunds will be expendedorwill give assurancetotheSecretarythatgood title wilt'beobtained. 5. Preserving Rights and Powers.
a. Itwill nottakeorpermit any action whichwould operate to depriveit ofany ofthe rights and powers necessary to perform anyor all the terms, conditions, and assurances in thegrant agreement withoutthe written approval oftheSecretary, andwill actpromptlyto acquire, extinguish ormodify anyoutstandingrights orclaims ofright ofotherswhich would interferewith suchperformancebythe sponsor. This shall be done in a manner acceptable to theSecretary. b. It will not sell, lease, encumber or otherwise transfer or dispose ofanypart ofits title orother interests in the propertyshown on ExhibitA to this application or, for anoise compatibilityprogram project, thatportionofthepropertyuponwhich Federal funds havebeen expended,for the duration oftheterms, conditions, and assurancesin the grant agreement without approvalbytheSecretary. If the transferee is found by theSecretaryto be eligible under the Airportand Airway ImprovementAct of 1982to assume the obligations ofthe grant agreementand to have thepower, authority, and financial resources to carry out all sucl1 obligations, the sponsor shallinsert in the contract or document transferringordisposing ofthesponsor's interest, and makebinding upon the transferee, all ofthe terms, conditions and assurances contained in this grant agreement. Page 3 of 1111. LocalApproval, Inprojects involving the construction or extension ofany runwayat any general aviation airportlocated astride a line separatingtwo countieswithin a single state, ithas received approval for the project from thegoverningbodyofallvillages incorporated under theJawsofthe statewhich are located entirelywithinfive miles ofthenearestboundaryofthe airport, U. TerminalDevelopment Prerequisites. Forprojectswhich mclude terminal development ata public airport, it has, on the date ofsubmittalofthe project grant application, all the safetyequipmentrequired for certification ofsuchairportnnder section612 oftheFederalAviationAct of 1958 and afl the security equipmentrequiredby rule ofregulation, and has provided for access to thepassenger enplaningand deplaningareaofsuchairportto passengers enplaningor deplaningfrom aircraft'other than air carrier aircraft.· 13, AccountingSystem, Audit, n!ld Recordkeeping Requirements. a, . Itshallkeep,all project accounts andrecordswhichfully disclose the**~m9unt** anci disposition by therecipient oftheproceeds ofthe grant, the total costofthe projectinconnection withwhich the grant is given orused, andtheamount and nature ofthatportion ofthe cost ofthe projectsuppliedby othersources, andsuch otherfinancial recordspertinent to theproject. The accounts and records shall bekept in accordance withan accounting system that will facilitate an effective auditin accordance with theSingleAuditActof 1984. · b. Itshallmake

### av~ilable to the Secretaryand tile Comptroller Generalofth\) UnitedStates, or any oftheir duly authorized representatives, for thepurpose ofaudit and examination, anybooks,' documents,papers, andrecords oftherecipientthatarepertinentto thegrant. TheSecretarymay require that an appropriateauditbeconductedby a recipient. Inany caseinwhich an . ' independent audit is made ofthe accounts

### ofa sponsorrelatingtothedisposition ofthe proceeds ofa grantorrelatingto the projectinconnectionwithwhich the grantwas given or used, it shall file a certified copy ofsuch audit with theComptroller GeneraloftheUnitedStatesnot later than six (6) months**foll~wing** the close ofthefiscal yearfor which the auditwasmade:. 14, MinimumWage Rates. Itshallioclude, ioall contracts in excess of$2,000 forwork onanyprojects funded underthe grant agreementwhich iovolve labor, provisions establishing minimumrates ofwages, to bepredeterminedby the SecretaryofLabor, in accordancewith the Davis-Bacon Act, as amended (40 U.S.C276a--276a-5),which contractors shallpay to skilled 1mdunskiUed labor, and such minimum rates shallbestatedin theinvitationfor bids and shallbeincluded in proposals orbids for wqrk. 15, Veteran's Preference. Itshallinclude, in all contracts forwork on anyprojectsfunded under the grant agreementwhich involvelabor, suchprovisions as are necessarytoinsure that, intheemployment of labor(exceptinexecutive, administrative, and supervisorypositions), preferenceshallbegiven to veterans ofthe Vietnam era and disabledveterans as defmed io Section515(c)(1) and (2) ofthe Airport andAirway ImprovementAct of 1982, However, this preference shall apply onlywhere the individuals are available and qualified to perform thework to which theemploymentrelates. 16. Conformityto Plans andSpecifications. Itwill executetheprojectsubject to plans, specifications, and schedules approvedbythe Secretary. Suchplans, specifications, and schedules shallbesubmitted to the Secretaryprior to commencement ofsite preparation, construction, or otherperformance underth.is grant agreement, and, uponapprovalby theSecratary, shallbeincorporated ioto this grant agreement. Any modifications to the approvedplans, specifications, and schedules shall alsobe subject to approval by the Secretary andincorporationioto thegrant agreement. 17, Construction InspectionandApproval. Itwill provide andmaintain competent technical supervision at the construction sitethroughouttheprojectto ensure that the work conformswith theplans, specifications, and schedules approved by the Secretaryfor theproject. Itshall subject the .constructionwork on anyproject contaioed in an approved project applicationtoiospection and approvalby theSecretary and'such work shallbein accordance.with regulations andprocedures PageS of 11repair, restoration, orreplacement ofany structureorfacility which is substantially damaged or destroyed due to an act ofGod orother condition or circumstancebeyond the control ofthe sponsor. b. Itwill suitablyoperate and maintain noise compatibilityprogramitems that it owns or controls uponwhich Federalfunds have beenexpended. 20. Hazard Removal andMitigation. Itwill take appropriate action to assure that such terminalairspace as is required to protect instrument and visual operations to the airport(including established minimum flight altitudes) willbe adequatelycleared andprotectedby removing, lowering, relocating, marking, orlighting or otherwise mitigating existing airporthazardsand bypreventingthe establishmentor creation offuture airport hazards: 21. CompatibleLandUse. Itwill takeappropriate action, includingthe adoptionofzoninglaws, to the extentreasonable, torestrict the use ofthe landadjacentto or in theimmediatevicinity of!heairport to activities andpurposescompatiblewithnormal airport operations, includinglanding and takeoffof aircraft. In addition, iftheprojectis for noise compatibilityprogramimplementation, itwill notcause Of permit any change.in landuse, within itsjurisdiction, thatwill reduce the compatibility, withrespect to theairport, ofthenoise compatibilityprogrammeasures uponwhich Federalfundshave beenexpended. 22, EconomicNondiscrimination.
a. Itwill makeits airport available as an airport for public use on fair andreasonableterms and without unjust discrimination,to all types, kinds, and classes ofaeronauticaluses. b.<

## ~~-**~Y agreeme~Lcontract,**  lease or

## ~·ther ar;angemeUt'_Unde;\vhiCh

## ~**·~ight** or privilege at ti1;e , airportis granted to any person, firm, or corporation to.conduct·or enga·ge in aiiy aeronaUtical activity for furnishing services tothe public at theairport, the sponsorwill insertand enforce provisions requiring the contractorto- · · (1) furnish said services on afair, equal, and not unjustly disc;irninatorybasis to allusers thereof, and · · (2) charge fair, reasonable, and notunjustly discriminatoryprices for eachunit orservice, provided, that the contractor maybe allowed to make reasonable andnondiscriminatory discounts, rebates, or other similar types ofprice reductions to volume-purchasers.
c. Eachfrxed-based operator at any airportowned by thespons'or shallbesubject tothesame rates, fees, rentals, and other charges as are uniformly applicable to all otherf1Xcd-based operators makiogthesame orsimilar uses ofsuch airport andutilizing the sameor slmilarfacilities. d. Each air carrier usiog such airport shall havetherightto serviceitselfor to use any fixed-based operator thatis authorized orpermittedby the airport to serve any air carrierat such airport. e. Each air**carri~r** using such airport (whether as atenant, nontenant, or subtenant ofanother air carrier tenant) shallbesubjectto such nondiscriminatory and substantiallycomparablerules, regulations, conditions, rates, fees, rentals, and othercharges with respect to facilities directly and substantiallyrelated to providing air transportation as are applicable toall such air carrierswhich make similaruse ofsuch airport andwhichutilize slmilar facilities, subject toreasonable classifrcations such as tenants or nontenants and signatorycarriers and non-signatory carriers. Classification or status as tenants or signatory shallnotbeunreasonablywithheld by anyairportprovided an air carrierassumes obligations substantiallysimilar to those alreadyimposed on air carriersin such classifrcations or status. f. Itwill notexercise orgrant any right or privilegewhich operates toprevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, butnot limited to maintenance, repair, andfueling) thatit may choose to perform. Page7 of 1126. Reports und Inspections. Itwill submit to theSecretarysuch annual or specialfinancial and operationsreports as the Secretarymayreasonablyrequest. A report oftheAirportbudgetwillbe available to thepublicat reasonabletimes andplaces. For airport developmentprojects, itwill also make the airport and all airport records and documents affecting the airport, including deeds, leases, operation anduse agreements, regulations and otherinstruments, available for inspectionbyany duly authorized agent ofthe Secretaryupon reasonablerequest. Fornoise compatibilityprogramprojects, it will also make records and documents relating to theprojectand continuedcomplinncewithterms, conditions, and assurances ofthe grantagreement including deeds, leases, agreements, regulations, and otherinstruments, availablefor inspectionby any d\Jly authorized agentofthe Secretary upon reasonablerequest.

,. ' '·' ' ·i 27. Use ofGovernmentAircraft. Itwillmakeavailable all ofthe facilities ofthe airport developedwith Federal frnancialassistanceand all thoseusable for landing and takeoffofaircraft to the United States for usebyGovermnent aircraft in commonwith other aircraft at all times without charge,except, ifthe use by Govermnent aircraft is substantial, charge maybemade for a reasonable share, proportional to such use, for the costofoperatingand maintainingthe facilities used. Unless otherwisedeterminedby the Secretary, or otherwiseagreed to by the

**~ponsor** andtheusing agency, substantial use ofanairportby Govcrmnent aircraftwill beconsidered to existwhenoperations ofsuch aircraft are in excess ofthose which;inthe opinion oftbe Secretary, wouldundulyinterferewith use ofthelanding areasbyother authorized aircraft, oi during any calendarI!l<inth that- ·
u. •



### Fi~e (5) ormore Governmentaircraft

# aie regularlybased atthe airport or on land adjacent thereto; or b
...Thetotalnumber ofmovements(countingeach landing as a movement) ofGovernment aircraft is 300 or.more, or the gross accumulative weight ofGoverriment aircraft using the ' airport (thetotalmovements ofGovermnent irlrcraft multipliedby gross weights ofsuchaircraft) is in excess offive millionpounds. ,.'
. 28. La;dforFederalFacilities, Itwill furnish without costto the Federal Governmentfor use in connection with any

### air traffic contfol orair navigation activities, orweather-reporting and communication activities related to air traffic control, any areas oflandorwater, orestatetherein, orrightsin buildings ofthe sponsor as the Secretaryconsiders necessary ordesirable for construction, operation, and maintennnce atFederal expense ofspace orfacilities for suchpurposes. Stich areas or anyportion thereof will bemadeavailable as provided hereinwithin four montbs after receipt ofa writtenrequestfrom the Secretary. 29; AirportLayout Plan
a. Itwill keepup to date at all times nn airportlayoutplanofthe airportshowing (1) boundaries of airport and aJI proposed additions thereto, together withtheboundaries ofall offsite areas owned or controlledbythe sponsorfor airportpurposesnnd proposed additions thereto; (2) the location nnd nature ofall existingandproposedairportfacilities and structures (such asrunways, taxiways, aprons, terminal buildings, hangars and roads), including all proposedextensions and reductions ofexisting airport facilities; and (3) thelocationofall existing and proposed nonaviation areas and ofall existing improvements thereon. Such airport layout plan and each amendment, revision, or modification thereof, shall be subject to the approval ofthe Secretary which approval shallbeevidencedby the signature ofa duly authorized representative ofthe Secretary on the face ofthe airport layoutplan. The sponsor will not make orpermit any changes or alterations in the airport or in anyofits facilities which arenotin conformitywith the airportlayout plan as approved bythe Secretarynnd which might, in the opinion ofthe Secretary, adversely affect the safety, utility, orefficiency ofthe airport. b. Ifa change or alteration inthe airport oritsfacilities is made which the Secretary determines adversely affects the safety, utility, or efficiency ofanyfederally owned, leased, orfunded propertyon or offthe airport andwhichis not in conformitywith the airportlayoutplanas approvedby the Secretary, the owner or operatorwill, ifrequestedby theSecretary (1) eliminatesuch adverse effectin a manner approved by the Secretary; or (2) bear all costs ofrelocating suchproperty (orreplacement thereof) to a site acceptable to theSecretaryandall costs ofrestoring suchproperty (orreplacement Page9 of 11CURRENTFAAADVISORYCIRCULARSFORAlPPROJECI'S EffectiveDate: 6/1/94
NUMBER . SUBJECT 70/7460-lH ObstructionMarkingand Lighting CHG 1&2

. . 150/5100-14C Archltectnral, Engineering, andPlaniting ConsultantServices forAirport Grant Proiects . 150/5210-5B ... Painting,MarkingandLil!htingofVehicles Used onanAirport 150/5210-78 AircraftFireand Rescue Communications
. 150/5210-14 AiroortFire andRe8cue Personnel ProtectiveClothing 150/5210-15 Airnort Rescue& Frrefightilll!StationBuildingDesign 150/5210-18 Systemsfor InteractiveTrainingofAirport Personnel 150/5220-4B WaterSuoolvSvstemsfor AircraftFireandRescueProtection 150/5220-lOA GuideSpecificationforWater/FoamTypeAircraft Re8cue andFtrefJghting Vehicles 150/5220-DB RlinivaySurfaceConditionSensorSpecificationGuide 150/5220-14A AiroortFireandRescue VehicleSpecificationGuide ·150

### I5220-16A AutomatedWeather Obser\'iugSystems for NonFederalApplications 150/5220-17A DesignStandardsfor AircraftRescueFrrefJl!htingTralninJiFacilities 

# - 150/5220-18 BuildingsforStorageandMaintenance ofAirportSnowandIce Control EqUipmentandMaterials · · · · 150/5220-19
. GuideSpecificationforSmall, Dual-AgentAircraftRescueandFirefighting Vehicles 150/5220-20 AirportSnowandIce ControlEquipment ... CHGl 150/5220-21 GuideSpecificationfor Lifts UsedtoBoardAirlinePassengersWith Mobility CHG1 Impairments 150/5300-13 AirportDesign CHG1 2&3 150/5300-14 DesimofAircraftDeicingFacilities 15QL5300-15 Use ofValue Engineering for EJigineering Design ofAirport GrantProiects 150/5320-SB Ali portDrainage 150/5320-6C AirportPavementDesign andEvaluation CHG1&2 150/5320-12B

**Measuremen~** Construction, andMaintenance ofSkid ResistantAirport ·PavementSurfaces 150/5320"14 Airport Landscapingfor Noise Control Purposes 150

## I5325-4A RunwayLengthRequirements for Airport Design CHG1 150/5340-lG Standards for AirQOrt MarkillJ!s 150 /5340-4C InstallationDetails for Runway CenterlineTouchdownZoneLightingSystems CHG1&2 150/5340-5B Segmented CircleAirportMarkerSystem CHG1 150/5340-14B EconomyApproach LightingAids CHG1&2 150/5340-178 StandbvPower for NonFAAAirportLightingSvstems 150/5340-lSC Standards for AirportSignSystems CHGl



# ..34. Policies,Standards, and Specifications. Itwill carry out the project in accordancewith**policies~** standards, andspecifications approved by theSecretaryincluding butnotlimited to the advisory circulars listed in the CurrentFAAAdvisory Circulars forAlP Projects, datedJune 1.1994 andincluded in this grant, andin accordancewith applicable statepolicies, standards, andspecifications approvedby the Secretary. 35. Relocation and Real PropertyAcquisition. (1)Itwill beguided in acquiringreal property, to the greatest extent practicableunderStatelaw, bytheland acquisitionpoliciesin SubpartBof49 CFRPart24 .andwillpay or reimbursepropertyowners for necessaryexpenses as specified in Subpart B. (2) Itwill provide a relocation assistance program offeringtheservicesdescribed inSubpartC andfair and reasonablerelocationpayments and assistanceto displacedpersons asrequiredinSubparts D andE of49 CFRPart24; (3) Itwill make available\vithin a reasonableperiodoftimeprior todisplacement comparablereplacementdwellings to displacedpersons inaccordancewithSubpartE of49CFRPart24. 36. Drug-FreeWorkplace. Itwill proVide a drug-freeworkplace at thesiteofwork specifiedin the grantapplicationinaccordancewith49 CFRPart29 by(1)publishing a statementnotifYingits employees thatthe unlawful manufacture, distribution, dispensing, possession oruseofa controlledsubstanceis prohibitedin thesponsor'sworkplace and specifyingtheactions thatwillbetakenagainstits employeesfor violation ofsuch prohibitions; (2) establishinga drug-free awarenessprogramtoinform its employees about the dangers ofdrugabuseinthe workplace and any available drugcounseling,rehabilitation, and employees assistanceprograms; (3) notifyingtheFAA\vithin ten (10) days afterreceiving notice ofan employee criminal drugstatute convictionfora violation occurringin theworkplace; and (4) makinga goodfaith effort tomaintain a drug-freeworkplace.

Page 11 of 1104/07/2008 13:05 310725&849 

### FAA LAX ADO PAGE 04

Fax frol'lll U.S. Department ofTf"",,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 ofsanta Monica, (hereinafter retemod to as the 'Sponsor"), accepted by said Sponsoron the 5th dayofJune, 1994, be amended a$ hereinafter provided. NOW I HI::REFORE, WITNeSSETH; Ttlat In conslderaflon ofthe benefits to acaueto the parties hereto, the FAA on behalf ofthe'\Jnlted Statea, on the one part, and the Sponsor. on the otller part, ao hereby mutually agree U1<1t ..,;d Grant 1\greemcntbe 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 andtlush mounled trodway lights; seal and mark north and south parallel taxiways; constn.Jct blastwalls -Phase 11: install polirT'14;1tc»rfonee- lnctudlno

**o='-tA~;** mhabirrtate north and souttl aircrafttledown areas; rehabifltate aircraft tiedown areas adjacent

### to Taxiway B.

IN WITNESS

**WHEREO~.** the parties hereto have oau•ed this Amendmentto said GrantAgreementto be duly executed as ofthe 8th day oL.J!.QYember 1999.

3187256849 UNITED STATES OF .AMERICA FEDERAL AVlAilON ADMINISTRAilON WES'TERN-PACIFIC REGION

84/07/88 16:38 Pg: 404/07/2008 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 of2 Pages Project No. 3-0e-0239-oe Contract No. OTFAO!I-94-C-20857 City**of~S.anta** Monica (Name of Sponsor)

1. 

### Marsha Jones Moutrie , acting a•Attorney forthe city of Santa Monica, (hereinafter referred to as the "Sponsa(') do hereby certify:

That 1have 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: 584/87/2808 13:85

U.S. Department ofTranspo..wtion FederalAviation Administration 3107256849 FAA LAX ADO PAGE 02

Page 1of2 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 itto 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 ofJune, 1994, be amended in conformance with Sponsor's letter dated September27, 2002. NOWTHEREFORE, WITNESSETH: That In consideration of the benefit<: to.accrua to thg parties hereto. the FAA on

**beha~** ofthe 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 ofthe Grant Agreement remain in full force and effect. IN WITNESSWHEREOF, the parties hereto have caused this Amendmentto said GrantAgreement to be duly executed as or the 27

**d~y** ofAuguot, 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 2of2 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 herebycertify: 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 myopinion, 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 beliefthe foregoing is a full, true and correct copy of Staff Report Item 8-A (Santa Monica Leasing Guidelines) from the August 12, 2014 City Council meeting, which is on file in the City Clerk's Department, and that I have carefully compared the same with the original. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal ofthe City ofSanta Monica, this 131h

### day ofAugust, 2014.

Vernice Hankins StaffAssistant 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 independentfrom General Fund subsidies. Background 

### Santa Monica Airport is located on 227 acres, closely surrounded by single-family residential neighborhoods. The Airport consists of 187 acres of land currently designated and used for aviation activities and 40 acres currently used for other purposes compatible with airport activities. As of the date of these guidelines the Airportfacilities are comprised ofapproximately 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 benefitthe community. Most recently, at the March 25, 2014 meeting Council provided direction to staff that, upon expiration, current leases may be renewed for three years with unlimited one-year renewals at the City's option. The direction to staff was to develop leasing guidelines sensitive to the environment, to neighbors' concerns and to remediation needs; and, once adopted, to apply the guidelines in assessing applications for lease renewals. Council also directed staffto consider the former Light Manufacturing and Studio District zoning standards as a model and to evaluate options regarding fuel sales at the Airport. Presently, use of the non-aviation Airport property is diverse and comprised of a museum, technical offices, artist day studios, educational facilities, contractor facilities, architectural offices, law offices, film related businesses, and general office space. Aviation use leases include flight schools, aviation service providers, hangars, and 'Fixed Based Operators (FBOs).
All Airport leases will expire on or before June 30, 2015. Staff from various City departments collaborated in engaging a qualified appraiser and auditors to establish future lease rates that will be applied to all new leases on the Airport in 2015. Prior to negotiating new leases with existing tenants staff will ensure that the tenants have met their obligations 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 ofCouncil's adoption. The Guidelines identify programs that mitigate, as much as possible, environmental impacts to the community, and maintain the viability of the Airport Fund independent from General Fund subsidies while the legal constraints on the City's authority to control the Airport and Airport usage is resolved. The new Guidelines have been developed with the following objectives: 1. Establish practices and procedures for evaluating potential leasehold interests, and for lease management and administration. 2. Foster uses and practices that are sensitive to the environment and protect the health of Airport neighbors and users and protect the City from future environmental exposure. 3. Maintain compatibility of uses of non-aviation airport property with Santa Monica Airport operations and, consistent with applicable law, promote use of the aviation property in a manner compatible with the adjacent residential community. 4. Continue to provide opportunities for arts, education, and culture, including, but not limited to, the Artist Space Program administered in conjunction with Cultural Affairs Division. 5. Serve as the framework for achieving and maintaining a viable, sustainable Airport Fund that is independent from the General Fund and other subsidies. 6. Incorporate within these Guidelines the City's rights, legal obligations and legal constraints that relate to the Airport, the aviation leases and the use of the Airport. To ensure that the leasing program achieves its objectives it shall be managed in a manner consistent with the following standards: 1. Term: 

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

### 3

### are outside the purview of these guidelines and therefore require Council approval. 2. Allowable Uses: To the extent allowed by law, uses would be aviation, arts/cultural, creative space, professional, theaters, museum, educational, professional offices and other uses that are low intensity and serve the adjacent communitywhile implementing standards that are sensitive to the environment. 3. Environmental Responsibility:· New lessee requests shall be reviewed to assess potential negative effects on the environment. The Airport may require environmental studies or testing as appropriate and necessary, and any needed remediation shall be perl'ormed prior to establishment of new uses. Lessees seeking renewal or extended leases will also be responsible for any environmental contamination, resulting fromtheir prior use, as a condition to a renewed or extended lease. Atthe time ofthe application, an assessment of the proposed use will be conducted, and appropriate insurance and/or remediation requirements will be incorporated into the lease based on proposed usage. 4. Right of Refusal: The Airport may refuse a lease application if it determines that the proposed use may create a high intensity use and/or expose the City to additional environmental exposure, or otherwise poses an unacceptable potential for harm to the public health and welfare orthe environment.
The majority ofthe Airport revenue is derived from leases. To help supportthe 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 bythe tenant are accurate. 4. Existing Tenants: 

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

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

### Assignment or subletting of leases or space sharing is prohibited without the written consent of the City, and granting or withholding consent will be conditioned on express standards and conditions set forth in the lease. · 7. Lease and License Areas: 

### Operation and improvements to lease and license areas are subject to the City's standard regulatory rules, review and approval process. 8. Triple Net Leases: 

### Unless otherwise specified, tenants shall pay all property taxes and assessments (including Possessory Interest Tax), insurance, and utilities. 9. Commercial Operations Permit (COP): 

### Prospective tenants proposing to use the Santa Monica Airport to engage in an activity that requires a business license from the City, are required to acquire a commercial operations permit issued by the City Manager. All COPs will be presented to the Airport Commission for their recommendation and comment priorto City Manager's approval. 10.Annual Adjustments: 

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

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


### 5

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

### OOVLL in lieu of 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 ofthese recent developments, staff is .confident that biofuels could be made available at SMO in the future. Offering alternative aviation fuels would be an incremental step in the City's effort to mitigate Airport impacts on the community, and it would avoid litigation as to whether the City has a federal obligation in providing fuel available for all aircraft currently using the Airport. Additional provisions in the proposed guidelines that would address impacts on neighbors and the environment are as follows: 1. Flight schools will be requested to use newer type of 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 fueltanks, 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 ofthe 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 ifthe guidelines may be viewed as an activity that will ultimately involve the issuance of a lease, there is no possibility that their approval may have a significant effect on the environment given that they do not commit the City to any course of action and are so general as to make the evaluation of particular impacts too speculative for review. Consequently, even if the guidelines were to constitute a CEQA project, their approval is subject to the common sense exemption pursuant to CEQA Guidelines section 15061(b)(3). Commission Action Staff presented an overview of the objectives and standards of the proposed leasing guidelines to the Airport Commission during their meeting on July 28, 2014 for consideration and comment. The Commission did not provide a formal recommendation or feedback regarding these guidelines.



### 9

### Financial Impacts 

### & BudgetActions 

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

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



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



### Rod Gould City Manager

A - Proposed Santa Monica Airport Leasing Guidelines



### 10ATIACHMENTA Approved by theAirport Commission:-'---- Approved by City Council: ___ _ SANTA MONICAAIRPORT LEASING GUIDELINES 

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

11. PURPOSE OF THESE LEASING GUIDELINES These guidelines have been developedto: 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 propertywith Santa Monica Airport operations and, consistent with applicable law, promote use of the aviation property in a manner compatible with the adjacent residential community. IV. Continue. to provide opportunities for arts, education, and culture, including, but not limited to, the Artist Space Program administered in conjunction with Cultural Affairs Division. V. Serve as theframework for achieving and maintaining a viable, sustainable Airport Fund that is independent from the General Fund and other subsidies. VI. Incorporate within these guidelines the City's rights, legal obligations and legal constraintsthat relate to the airport, the aviation leases and the use ofthe airport.
2. MANAGEMENTSTRUCTURE Leasing and licensing atthe Airport is the responsibility ofthe City ofSanta Monica Airport Division in coordination with the City's Economic Development Division. 3. GENERAL LEASING STANDARDS To ensure a program that achieves the purposes described above, the leasing program at the Airport shall be managed in a manner consistent with the following standards: I. Term: The lease term may be month-to-month, or year-to-year; for up to three-years. However, the initial term of leases approved under these guidelines shall expire by June 30, 2018. After that date, annual renewals may be granted pursuant to these guidelines at City.'s discretion. Leases longer than three years are outside the purview of these guidelines and therefore require Council approval. II. Allowable Uses: To the extent allowed by law, uses would be aviation, arts/cultural, creative space, professional, theaters, museum, educational, professional offices and other uses that are low intensity and serve the adjacent community while implementing standards that are sensitive to the environment. 2Ill. 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 ofthe application, an assessment of the proposed use will be conducted, and appropriate insurance and/or remediation requirements will be incorporated into the lease based on proposed usage. IV. Right of Refusal: The Airport may refuse a lease application if it determines 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 ofairport 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 ofsales. The City, as Landlord, shall have the right to audit tenant's financial records to ascertain that the gross sales figures reported by the tenant are accurate and that the appropriate percentage rent amount is paid. 

### 3IV. Existing Tenants: All existing airport tenants in good standingthatare 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 ofthis 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 occupancyandthe self-sustainability ofthe airport. VI. Sub-leases: Assignment or subletting of leases or space sharing is prohibited without the written consent of the Landlord. Landlord's granting or withholding consent will be subject to express standards and conditions set forth in the lease. VII. lease and license Areas: Operation and improvements to lease and license areas are subject to the City's standard regulatory rules, review and approval process. VIII. Triple Net Leases: Unless otherwise specified, tenants shall pay all property taxes and assessments (including Possessory Interest Tax), insurance, and· utilities. IX. Commercial Operations Permit (COP): Prospective tenants proposing to use the Santa Monica Airport to engage in an activity that requires a business license from the City, are required to acquire a commercial operations permit issued by the City Manager. All COPs will be presented to the Airport Commission for their recommendation and comment prior to City Manager's approval. X. Annual Adjustments: All leases will be subject to annual CPI adjustment on their anniversary month. XI. Appraisals: Properties will be appraised for fair market rental rates at three yearintervals. 5. PERFORMANCE STANDARDS All lessees shall use the airport and any airport property in a manner that is compatible with Santa Monica Airport operations and with the adjacent residential uses; to encourage activities that complement adjacent residential and commercial uses; and to establish 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 opportunityto renew 

### 4their leases and preference will be given to prospective tenants that abide bythe 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 ifthey abide by the following environmental standards. All FBOs will be required to minimize their environmental impact by performing the following improvements to current or as applicable proposed facilities: a. Ground Power Units (GPU} used to 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 ofthe lease to meetthis 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 1year from the signing ofthe lease to meetthis requirement. e. Hangars must be used only for the storage of aircraft and auxiliary equipment. f. Biofuels will be sold in lieu of JetA and 100 Very Low Lead and aviation unleaded fuels will be sold in lieu of 100 Low Lead as soon as these fuels are approved and commercially available. Ill. Aviation Maintenance Facilities 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 

### 5equipment. c. No subleasing is allowed. d. The City will request hangar owners to avoid from performing pattern operations at Santa Monica Airport during weekends, holidays, and evening hours. V. Tenants shall respondto Landlord's written inquiries regarding 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 airportconcludes are appropriatetothe particularTenant'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 ortenant (atthe City's election), to a decent, safe and sanitary condition appropriate for use. If tenant makes improvements to the facility as a mutually agreed upon condition of a lease, the City must first review and approvethe proposed design and scope ofwork. All necessary building permits must be obtained and the work must be inspected for compliance with applicable code{s). Appropriate rental credits for the approved work performed may be negotiated as part of the lease. Any Tenant Improvement Credit that exceeds two months' worth of tenant monthlyrentmust be approved bytheAirportDirector.
7. TENANCY RELATIONSHIPS Each tenant or licensee will be responsible for interior maintenance and repair at its sole expense, and the City generally will retain responsibility for maintenance and repair ofroofs, building exteriors, landscaping and common use parking for all Airportmanaged leaseholds unless otherwise specified in the lease or license. Tenants who lease whole buildings from the City will be responsible for any and all maintenance, repair and improvements including roofs, building equipment and exteriors of the facilities as well as interior maintenance and repairs. 8. TENANT RECRUITMENT All Citycowned buildings appropriate and suitable for leasing 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 Standardssetforth herein. 

### 6All prospective tenants must submit a Lease or License Application to the City. Information contained in the Lease Application shall describe the proposed use for the available space; provide information about the respondent; provide references; describe in detail the financial capability ofthe respondent to perform; and setforth preliminaryterms 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 leaseterms 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 leaseson behalfofprospectivetenants. Recruitmentfor artist day studios will adheretothe criteria setforth 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 onlyfrom the screened waiting list. 9. LEASE APPROVALS & DELEGATION OF AUTHORITY The City Manager has the authority to negotiate and execute leases with terms of three years or less on terms consistent with these Leasing Guidelines. To be valid, such leases must be on the basis ofwritten agreements prepared and approved as to form bythe CityAttorney. Leases for terms ofoccupancy greaterthan three years or otherwise outside the parameters established by these guidelines will be negotiated by City staffunderthe direction ofthe City Manager and will require City Council approval. 10. GENERAL PROVISIONS These guidelines may be altered by the City at any time, in its sole discretion, and shall not create any right or reliance interest for any person. These guidelines are intended to be consistent with, and subject to all requirements of law applicable to the City's operation of the airport, and shall not be interpreted or construed to conflictwith orto violate any such provision oflaw.



### 7

### CERTIFICATE OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES I, Bradley C. Michaud, declare: I am employed in the County of Los Angeles, State ofCalifornia. 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 CITYOF SANTA MONICA'S MOTION TO DISMISS on the interested parties in this action by enclosing the document(s) in a sealed envelope addressed as follows: Richard K. Simon, Esq. 1700 DeckerSchool Lane Malibu, CA 90265 rsimon3@verizon.net Office ofthe ChiefCounsel Attention: FAA Part 16 Docket Clerk AGC-600 Federal Aviation Administrative 800 Independence Avenue SW Washington, DC 20591 9-AWA-AGC-Part-16@faa.gov 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 ofthe Bar of this Court at whose direction the service was made.

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



# ~