Councilmember Katz stated that he would be voting against this item because he believes it is a mistake to hire contract employees for inspection purposes.

Mayor Pro Tem Bloom asked questions of staff.

Motion by Mayor Pro Tem Bloom, seconded by Councilmember O=Connor to approve the staff recommendation. The recommendation was approved by the following vote:

AYES: Councilmembers McKeown, O=Connor, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: Councilmember Katz

ABSENT: Councilmembers Genser, Holbrook

On order of the Mayor, the City Council recessed at 5:56 p.m., and reconvened, with all members present at 7:10 p.m.

Councilmember Genser arrived at 6:00 p.m.

2-A: Conference with Legal Counsel B Existing Litigation: Tino Degen v. City of Santa Monica, Case No. SC 060 575.

ACTION: Heard. No reportable action taken.

Councilmember McKeown recused himself during Item 2-B to avoid the appearance of a conflict of interest since he lives near the project.

2-B: Conference with Legal Counsel B Existing Litigation: Chateau 16^th Street Villas, LLC and Norman Salter v. City of Santa Monica, Case No. BS 065 985.

Motion by Mayor Pro Tem Bloom, seconded by Mayor Feinstein, to approve the settlement agreement as follows: 1) Developer will redesign the project in accordance with the Development Standards set forth in Interim Ordinance No. 1977. 2) The CUP vesting tentative map shall be remanded to City Council for further hearing. The hearing shall be scheduled on the first available City Council date following submission of the revised plans by the developer, review and compliance check by Planning, and completion of CEQA review and completion of the staff report and the redesigned plans. The parties currently anticipate that the hearing date would be September 11, 2001. 3) Prior to the City Council meeting the developer shall share its revised plans with and solicit input from affected neighborhood groups. 4) The developer will pay the affordable housing fees under the Ordinance and fee resolution in effect when its application was deemed approved. 5) If the City Council grants the CUP and the vesting tentative map, the lawsuit will be dismissed with prejudice, which means it can=t be renewed. If the City Council denies the CUP or vesting tentative map, the parties will go forward with the Court hearing on their Petition for a Writ of Mandate. 6) The Developer acknowledges that the City must comply with CEQA before approving the Developer=s revised project. Given the redesign, staff will reevaluate whether the Class 32 CEQA exemption can be used. 7) Each side will bear its own attorney=s fees and costs for the litigation.

The motion was approved by the following vote:

AYES: Councilmembers Holbrook, O=Connor, Genser, Katz, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: None

ABSENT: Councilmember McKeown returned to the dais.

2-C: Conference with Legal Counsel B Existing Litigation: Michael Duffy v. City of Santa Monica, Case No. SC 061 611.

ACTION: Heard. No reportable action taken.

2-D: Conference with Legal Counsel B Existing Litigation: Alice Cole, et al., v. City of Santa Monica, Case No. SC 055 183.

ACTION: Heard. No reportable action taken.

2-E: Conference with Legal Counsel B Existing Litigation: Pico Neighborhood Association v. City of Santa Monica, Case No. SC 063 874.

ACTION: Heard. No reportable action taken.

2-F: Conference with Legal Counsel B Existing Litigation: City of Santa Monica v. Maria Stewart, Case No. SC 067 033.

ACTION: Heard. No reportable action taken.

2-G: Conference with Legal Counsel B Existing Litigation: Ring Trading Corp. v. City of Santa Monica, Case No. BC 172 044 (consolidated with Mountain View Mobile Inn Residents Association, Inc. v. City, Case No. SC 052 672).

ACTION: Heard. No reportable action taken.

2-H: Conference with Legal Counsel B Existing Litigation: David Levy, et al. v. City of Santa Monica, Case No. SC 063 147.

ACTION: Heard. No reportable action taken.

2-I: Conference with Legal Counsel Anticipated Litigation.

Number of cases: Four.Motion by Councilmember Katz, seconded by Councilmember O=Connor, to approve settlement terms and conditions with Cabot and Linda Brown regarding a construction trailer that they placed on their property. The terms of the settlement are as follows: 1) The City will not take any enforcement action with request to Temporary Use Permit 00-0046 conditions regarding on-site parking and on-site trash bin storage so long as the Browns remove the on-site construction trailer and transfer the construction activities that are now in the trailer to their garage on or before July 13, 2001. 2) Until August 31, 2001, the Browns will continue to store the trash bin that is now on-site as reasonably practical. 3) The Browns will not sue the City in connection with the Temporary Use Permit. The motion was approved by the following vote:

AYES: Councilmembers Katz, Genser, McKeown, Bloom, Holbrook, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: None.

ABSENT: None.

Councilmember McKeown wished Irmgard Lennel, a Santa Monica resident, a Happy 100^th Birthday.

Mayor Mayor Pro Tem Bloom requested that a 13 item be added to the agenda because there is a need for immediate action and the facts arose after the posting of the agenda. The request is that the City Council consider authorizing staff to bid at auction on a Wurlitzer Band Organ that has historical significance to the City of Santa Monica.

Motion by Councilmember Katz, second by Mayor Pro Tem Bloom, to add this item to the agenda. The motion was approved unanimously by voice vote, with Councilmember Holbrook absent.

Councilmember Holbrook arrived at 7:15 p.m.

6-A: Appeal of Landmarks Commission decision designating 1333 Ocean Avenue as a City Landmark B recommendation to uphold the Landmarks Commission decision designating the structure located at 1333 Ocean Avenue as a City Landmark, and deny the appeal. Appellant: Sherman Stacey, Esq.

On order of the Mayor, this matter was continued to July 24, 2001.

7-A: Introduction and first reading of an ordinance entitled AAN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 4.65 TO THE SANTA MONICA MUNICIPAL CODE CREATING MINIMUM WAGE REQUIREMENTS APPLICABLE TO BUSINESSES IN THE COASTAL ZONE AND EXTENDED DOWNTOWN CORE WITH GROSS RECEIPTS OVER $5,000,000 AND TO THE CITY AND ITS SERVICE CONTRACTORS@, was presented.

The following members of the public spoke in support of the ordinance: Reverend Sandie Richards, Edwin Valdez, Derek Smith, Dona Van Bloemen, and Doug Appel.

The following members of the public spoke in opposition of the ordinance: Chuck Allord, Gorton Valley, and Dwayne Garman.

Mary Ann Powell, CEO of Pacific Park requested a defined Safe Harbor exemption based on the proposal previously made by SMART. James Adler, appearing on behalf of the operator of Pacific Park, spoke regarding hardship exemption criteria and requesting that a task force be instituted to look at the hardship exemption criteria outlined by SMART. Erika Zucker spoke in support of the ordinance, including clarifications in the ordinance and supporting the formation of a task force. Mike Ram regarding landlord-renter issues with businesses in the coastal area.

Joey Fullmer and Jerome Schnitzer expressed various concerns.

Motion by Councilmember McKeown, seconded by Mayor Feinstein, to introduce and hold first reading of the ordinance, reading by title only and waiving further reading thereof, with proposed revisions by the City Attorney as follows: the definition of coastal zone will be changed as defined in the proposed revisions; the definition of the extended downtown core will be defined as listed on page 7 of the draft ordinance changing Fifth Court to Fifth Street; the definition of Employee will end after the word Alicense@ and delete the balance of the paragraph; the definition of Employer will be deleted; under Gross Receipts Threshold the Consumer Price Index shall be referred to as the Consumer Price Index for Urban Wage Earners and Clerical Works in Los Angeles County; add a definition of Minimum Wage as per the proposed revisions to be the last definition in the definitions= section; strike the Section entitled Minimum Compensation for Employees and in its place add a new section entitled Wage Payment Requirements which is attached to the supplemental report, including the following text: AThe Gross Receipts of a contractor, subcontractor, lessee, or sublessee received at the location for performing part of the business activities of the private person or corporation shall be included in determining whether the gross receipts threshold is exceeded@; under Exemption for Severe Economic Hardship, the word AEmployer@ shall be changed to Aemployer@; under Prohibitions against Retaliation and Circumvention, the word Aindividual@ shall substitute for the word AEmployee@; and the word AEmployer@ shall be substituted with Aemployer@ in the ordinance.

Amendment by Councilmember Genser, seconded by Mayor Pro Tem Bloom, to include both sides of Wilshire and both sides of Colorado by using the definition that was covered in the draft ordinance (page 7) and change Fifth Court to Fifth Street. The amendment was accepted as friendly by the maker and seconder of the motion.

Councilmember Katz recused himself from the ensuing discussion regarding a hardship exemption process.

The main motion was approved by the following vote:

AYES: Councilmembers O=Connor, McKeown, Genser, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: Councilmembers Holbrook and Katz

ABSENT: None

Motion by Mayor Feinstein, seconded by Councilmember Genser, to direct staff to form the working group to establish administrative regulations and instructions as soon as possible and to prioritize the work regarding exemptions and hardships.

The motion was approved by voice vote, with Councilmembers Holbrook and Katz voting in opposition.

11-A: Resolution Number 9677(CCS) entitled: AA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING THE CITY=S INTENTION TO ELECT TO BE SUBJECT TO THE PUBLIC EMPLOYEES= MEDICAL AND HOSPITAL CARE ACT@, was adopted.

Motion by Councilmember Genser, duly seconded, to combine items 11A & 11B. The motion carried unanimously by voice vote, with all members present.

11-B: Resolution Number 9678(CCS) entitled: AA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ELECTING TO BE SUBJECT TO PUBLIC EMPLOYEES= MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO THE NON-PERS ELECTED OFFICIALS CATEGORY AND FIXING THE EMPLOYER=S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER=S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS@, was adopted.

Member of the public Joey Fullmer expressed her concerns.

Councilmember Holbrook stated for the record that he feels this is very discriminatory because there are a number of circumstances where people of opposite sex can=t get married because of loss of a retirement benefit or religious problem or someone not willing to grant a divorce, but we have to have insurance.

Motion by Councilmember Holbrook, seconded by Councilmember Katz, to adopt resolutions for items 11-A and 11-B, reading by title only and waiving further reading thereof. The motion was approved by the following vote:

AYES: Councilmembers Katz, Genser, McKeown, O=Connor, Holbrook, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: None

ABSENT: None

12-A: Request of Jerry Rubin to address Council requesting that representatives of City-recognized neighborhood organizations (The Neighborhood Council) do not bar the public from attending and observing the Neighborhood Council Meetings, was presented.

Member of the public Pam Vavra spoke regarding the Neighborhood Council meetings and how the neighborhood organizations view them. Member of the public Chuck Allord spoke in favor of the request.

Staff provided information concerning the use of City facilities with regard to meetings.

Motion by Councilmember Genser, seconded by Mayor Feinstein, to receive and file the item. Motion approved unanimously by voice vote.

12-B: Request of Ron Pickard to address Council requesting a waiver of fees for the U.S. Constitution Day Parade and to approve an alternate route.

Ron Pickard informed Council that the U.S. Constitution Day Parade will not take place this year.

Motion by Councilmember Katz, seconded by Mayor Feinstein, to receive and file the request.

On order of the Mayor, the City Council recessed at 9:30 p.m., and reconvened at 9:36 p.m., with all members present.

12-C: Request of Naia Sheffield to address Council requesting review of the leasing guidelines procedures, and requesting that the bidding on the Pier leases be reopened, was presented.

Members of the public Kelly Bixby, Rick Howard, Cindy Pfieffer, and Mike Ram spoke in support of Ms. Sheffield=s request.

Members of the public Joe Natoli spoke in opposition of Ms. Sheffield=s request.

Discussion ensued. On order of the Mayor, the item was received and filed.

12-D: Request of David Ganezer to address Council requesting that The Santa Monica Observer be appointed as the Official Newspaper of the City, pursuant to Charter Sections 6.09 and 6.17, was presented.

On order of the Mayor, the item was received and filed.

13-A: Request of Mayor Pro Tem Bloom to request Council direct staff to prepare an ordinance: (a) banning the sale of small, easily concealable handguns known as "pocket rockets"; (b) requiring thumb printing on dealer record of sales for purchase of firearms and requesting the State to require all prospective firearm buyers in California to be fingerprinted; and (c) requiring an annual criminal background clearance for the purchase of ammunition, was presented.

Member of the public Chuck Allord spoke in opposition to the ordinance.

Member of the public Art Casillas expressed his concerns. Member of the public Jerry Rubin spoke in support the ordinance.

Motion by Mayor Pro Tem Bloom, seconded by Councilmember Genser, to approve the request. The motion was approved unanimously by voice vote, with all members present.

13-B: Request of Councilmember Holbrook to direct staff to define the term "affordable department stores" and explore incentives to encourage development of the use. Incentives may include, but not be limited to, revised development standards, financial assistance, and modifications to zoning districts, was presented.

Member of the public Mike Ram expressed his concerns.

Motion by Mayor Feinstein, seconded by Councilmember O=Connor to continue the meeting past 11:00 p.m. The motion was approved unanimously by voice vote, with all members present.

Motion by Councilmember O=Connor, seconded by Councilmember Holbrook to pursue strategies providing affordable shopping in Santa Monica.Motion to amend by Mayor Pro Tem Bloom to look at retaining local, non-chain business. The motion was accepted as friendly.

The motion was approved unanimously by voice vote, with all members present.

Request of Mayor Pro Tem Bloom that the City Council consider authorizing staff to bid at auction on a Wurlitzer Band Organ that has historical significance to the City of Santa Monica, was presented.

Motion by Mayor Pro Tem Bloom, seconded by Councilmember McKeown to approve the request and that the Council discretionary fund be used to finance the bid, if successful.

Substitute Motion by Councilmember Genser, seconded by Mayor Pro Tem Bloom to approve the request and to authorize staff to spend the entire amount in the discretionary fund to finance the bid, if successful. The substitute motion was approved by the following vote:

AYES: Councilmembers Holbrook, O=Connor, McKeown, Genser, Katz, Mayor Pro Tem Bloom, Mayor Feinstein

NOES: None

ABSENT: None

13-C: Annual vacancy appointments to various boards and commissions. (Continued from June 12, 2001)

Member of the public Dwayne Garman-Faux expressed his concerns regarding street performers sitting on the Bayside District Corporation Board of Directors.

Councilmember Genser nominated Jean Gebman for reappointment to the Airport Commission for a term ending June 30, 2005. There being no other nominations, Mr. Gebman was appointed by acclamation.

Councilmember Katz nominated Joan Charles and Iris Oliveras for reappointment to the Architectural Review Board for terms ending June 30, 2005. There being no other nominations, Ms. Charles and Ms. Oliveras were appointed by acclamation.

The Arts Commission appointment continued to July 10, 2001 by unanimous consensus.

Mayor Feinstein nominated Wally Marks III, William Tucker, and John Warfel for appointment to the Bayside District Corporation for terms ending June 30, 2005. There being no other nominations, Mr. Marks, Mr. Tucker, and Mr. Warfel were appointed by acclamation.

On order of the Mayor, two annual appointments to the Building and Safety Commission were continued to July 10, 2001.

Councilmember Genser nominated Kristina Andresen for appointment to the Building and Safety Commission for a term ending June 30, 2005. There being no other nominations, Ms. Andresen was appointed by acclamation.

Councilmember Genser nominated Audrey Parker and John Whitbread for reappointment to the Accessibility Appeals Board for terms ending June 30, 2005. There being no other nominations, Ms. Parker and Mr. Whitbread were appointed by acclamation.

Mayor Pro Tem Bloom nominated Ed Muzika for reappointment to the Commission on Older Americans for a term ending June 30, 2005. There being no other nominations, Mr. Muzika was appointed by acclamation.

Mayor Pro Tem Bloom nominated Barry Seid for appointment to the Commission on Older Americans for a term ending June 30, 2005. There being no other nominations, Mr. Seid was appointed by acclamation.

Mayor Pro Tem Bloom nominated Rosemary Regalbuto for reappointment to the Commissioner Emeritus position on the Commission on Older Americans for a term ending June 30, 2003. There being no other nominations, Ms. Regalbuto was appointed by acclamation.

Mayor Feinstein nominated Darlene Evans and Patricia Galarza for appointment to the Commission on the Status of Women for terms ending June 30, 2005. There being no other nominations, Ms. Evans and Ms. Galarza were appointed by acclamation.

On order of the Mayor, one vacancy on the Commission on the Status of Women was continued to July 10, 2001.

Mayor Feinstein nominated Nathaniel Trives for reappointment to the Convention & Visitors Bureau for a term ending June 30, 2005. There being no other nominations, Mr. Trives was appointed by acclamation.

On order of the Mayor, one vacancy on the Convention & Visitors Bureau was continued to July 10, 2001.

Councilmember McKeown nominated Warren Malfer for reappointment to the Housing Commission for a term ending June 30, 2005, and Lovonia Cross and Lewis Steele for terms ending June 30, 2003. There being no other nominations, Mr. Malfer, Ms. Cross, and Mr. Steele were appointed by acclamation.

Councilmember McKeown nominated Chloe Edwards Bird for appointment to the Housing Commission for a term ending June 30, 2005. There being no other nominations, Ms. Bird was appointed by acclamation.

Councilmember O=Connor requested that the appointment to the seat of local historian on the Landmarks Commission be continued to July 24, 2001. Councilmember O=Connor nominated Barbara Schnitzler for appointment to the Landmarks Commission for a term ending June 30, 2005. There being no other nominations, Ms. Schnitzler was appointed by acclamation.

Mayor Pro Tem Bloom nominated Dan Stern for reappointment to the Library Board for a term ending June 30, 2005. There being no other nominations, Mr. Stern was appointed by acclamation.

On order of the Mayor Feinstein, the City Clerk was requested to republish the vacancy for the Metropolitan Cooperative Library System Advisory Board. Request by Councilmember Genser that the Library post within its community. Request for Councilmember Holbrook that a description of the Board be included in the posting/publishing.

Councilmember Katz nominated Thomas Tolman for reappointment to the Personnel Board for a term ending June 30, 2006. There being no other nominations, Mr. Tolman was appointed by acclamation.

On order of the Mayor, one unscheduled vacancy on the Personnel Board was continued to July 10, 2001.

Councilmember Katz nominated Arlene Hopkins for appointment to the Planning Commission. Councilmember O=Connor nominated Tony Anthony Loui for reappointment to the Planning Commission. Arlene Hopkins was appointed to the Planning Commission for a term ending June 30, 2005, by the following vote:

Hopkins: Councilmembers Holbrook, McKeown, Katz, Mayor Pro Tem Bloom, Mayor Feinstein

Loui: Councilmembers O=Connor

Abstain: Councilmember Genser

Mayor Pro Tem Bloom nominated Conway Collis for appointment to the Recreation & Parks Commission for a term ending June 30, 2005. There being no other nominations, Mr. Collis was appointed by acclamation.

Mayor Pro Tem Bloom nominated Lori Nafshun for appointment to the Recreation & Parks Commission for a term ending June 30, 2004. There being no other nominations, Ms. Nafshun was appointed by acclamation.

Mayor Feinstein nominated Samoan Barish and Dr. Eleanor Blumenberg for appointment to the Social Services Commission for terms ending June 30, 2005. There being no other nominations, Ms. Barish and Dr. Blumenberg were appointed by acclamation.

13-D: Three appointments to full terms on the Pier Restoration Corporation; one with a term ending November 9, 2004 (continued from April 10, 2001), and two with terms ending November 8, 2005. (Continued from June 12, 2001)

Member of the public Dwayne Garman-Faux expressed his concerns regarding street performers sitting on the Pier Restoration Corporation Board of Directors.

Motion by Councilmember Katz, seconded by Mayor Feinstein, to continue the item to July 10, 2001, as a continued item at the beginning of the agenda. Motion approved by the following vote:

AYES: Councilmembers Holbrook, McKeown, Katz, Mayor Feinstein

NOES: Councilmembers O=Connor, Genser, Mayor Pro Tem Bloom

ABSENT: None

Councilmember Katz was excused at 11:40 p.m.

Members of the public Joseph D. PaoLucci, Jennie Scheer, Pro Se, and Jerry Rubin spoke regarding the Santa Monica Disabilities Commission.

On order of the Mayor, the City Council meeting was adjourned at 11:44 p.m. to July 10, 2001, in memory of Mr. Wille Patton, Rachel Diaz Holguin, and Charlotte Feinstein.

ATTEST:

Beth Sanchez

Assistant City Clerk

APPROVED:

Michael Feinstein

Mayor