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Home My WebLink About07-13-2021 - Agenda Pkg - CC Regular MeetingTuesday, July 13, 2021 5:00 PM City of Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 City Council Mayor Justin Massey Mayor Pro Tem Michael Detoy Councilmembers Stacey Armato Mary Campbell Raymond Jackson Regular Meeting Agenda Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Executive Team Angela Crespi, Deputy City Manager Viki Copeland, Finance Director Eduardo Sarmiento, City Clerk Paul LeBaron, Chief of Police Angela Crespi, Interim Public Works Director Ken Robertson, Community Development Director Vanessa Godinez, Human Resources Manager Kelly Orta, Community Resources Manager City Treasurer Karen Nowicki City Attorney Michael Jenkins Suja Lowenthal, City Manager 1 July 13, 2021City Council Regular Meeting Agenda VIEWING OPTIONS FOR PUBLIC MEETINGS Public meetings are broadcast live on Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach. Additional viewing options are provided as a courtesy. ZOOM: Join the meeting link if available or participate by phone YOUTUBE CHANNEL: https://www.youtube.com/c/CityofHermosaBeach90254 CITY WEBSITE: www.hermosabeach.gov and visit the Agendas/Minutes/Videos page ***PLEASE NOTE: IF YOU EXPERIENCE TECHNICAL DIFFICULTIES WHILE VIEWING THE MEETING ON ONE OF THESE PLATFORMS, PLEASE TRY ONE OF THE OTHER VIEWING OPTIONS*** Page 2 City of Hermosa Beach Printed on 7/19/2021 2 July 13, 2021City Council Regular Meeting Agenda 5:00 P.M. - CLOSED SESSION CALL TO ORDER ROLL CALL PUBLIC COMMENT ON THE CLOSED SESSION AGENDA JOIN THE VIRTUAL MEETING AT: https://us02web.zoom.us/j/87032785286?pwd=RGVVZnduNGVIVGJLOFlvaFNuYTBlUT09 OR PARTICIPATE BY PHONE: •Toll Free: 877-853-5257 •Meeting ID: 870 3278 5286, then # •Passcode: 513185 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 6 to unmute your line. Comments from the public are limited to 3 minutes per speaker. RECESS TO CLOSED SESSION MINUTES: Approval of minutes of Closed Session held on June 22, 2021.21-0427a. CONFERENCE WITH LEGAL COUNSEL: Existing Litigation Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Case: Donna Bauer v. Hermosa Beach, et al. Case Number: 19 STCV 32667, Los Angeles Superior Court 21-0426b. CONFERENCE WITH LEGAL COUNSEL: Workers Comp Litigation Pending Litigation - Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Case: Christopher Alkadis v. City of Hermosa Beach WCAB Number: ADJ13727382 21-0428c. ADJOURNMENT OF CLOSED SESSION Page 3 City of Hermosa Beach Printed on 7/19/2021 3 July 13, 2021City Council Regular Meeting Agenda 6:00 P.M. - REGULAR AGENDA PUBLIC COMMENT City Hall will be closed to the public until further notice. Virtual Meetings are held pursuant to Executive Order N-29-20 issued by Governor Gavin Newsom on March 17, 2020. Members of the public may email comments to Esarmiento@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date. Members of the public may also participate by phone. JOIN THE VIRTUAL MEETING AT: https://us02web.zoom.us/j/87032785286?pwd=RGVVZnduNGVIVGJLOFlvaFNuYTBlUT09 OR PARTICIPATE BY PHONE: •Toll Free: 877-853-5257 •Meeting ID: 870 3278 5286 •Participant ID: 513185 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 6 to unmute your line. Comments from the public are limited to 3 minutes per speaker. Oral and Written Communication Persons who wish to have written materials included in the agenda packet at the time the agenda is published on the City's website must submit the written materials to the City Manager's office by email (esarmiento@hermosabeach.gov) or in person by noon of the Tuesday, one week before the meeting date. Written materials pertaining to matters listed on the posted agenda received after the agenda has been posted will be added as supplemental materials under the relevant agenda item on the City's website at the same time as they are distributed to the City Council by email. Supplemental materials may be submitted via eComment (instructions below) or emailed to esarmiento@hermosabeach.gov. Supplemental materials must be received before 4:00 p.m. on the date of the meeting to ensure Council and staff have the ability to review materials prior to the meeting. Supplemental materials submitted after 4:00 p.m. on the date of the meeting or submitted during the meeting will be posted online the next day. Submit Supplemental eComments in three easy steps: Note: Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information (i.e. phone numbers, addresses, etc) that you do not want to be published. 1. Go to the Agendas/Minutes/Video webpage and find the meeting you’d like to submit comments on. Click on the eComment button for your selected meeting. 2. Find the agenda item for which you would like to provide a comment. You can select a specific agenda item/project or provide general comments under the Oral/Written Communications item. 3. Sign in to your SpeakUp Hermosa Account or as a guest, enter your comment in the field provided, provide your name, and if applicable, attach files before submitting your comment. Page 4 City of Hermosa Beach Printed on 7/19/2021 4 July 13, 2021City Council Regular Meeting Agenda I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. CLOSED SESSION REPORT V. ANNOUNCEMENTS - UPCOMING CITY EVENTS VI. APPROVAL OF AGENDA:This is the time for the City Council to change the order in which it takes up items on this agenda, remove and/or continue agenda items and pull items from the consent calendar for separate consideration. VII. PROCLAMATIONS / PRESENTATIONS INTRODUCTION OF LIFEGUARDS21-0407a. SOUTHERN CALIFORNIA EDISON ANNUAL RELIABILITY REPORT21-0408b. Hermosa Beach Reliability and Resources PresentationAttachments: NATIONAL PARKS AND RECREATION MONTH21-0409c. VIII. CITY MANAGER REPORT - The City Manager and staff may provide brief reports on pending City business. Longer oral reports to be provided are as follows: POLICE CHIEF UPDATE21-0410a. IX. PUBLIC PARTICIPATION -- ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC: This is the time for members of the public to address the City Council on any items within the Council's jurisdiction not on this agenda, on items on this agenda as to which public comment will not be taken (City Manager Reports, City Councilmember Reports Consent Calendar items that are not pulled for separate consideration and Future Agenda Items), on written communications, and to request the removal of an item from the consent calendar. Public comments on the agenda items called City Manager Reports, City Councilmembers Reports, Consent Calendar items that are not pulled for separate consideration and Future Agenda Items will only be heard at this time. Further, comments on public hearing items are heard only during the public hearing. Members of the audience may also speak during discussion of items removed from the Consent Calendar for separate consideration; during Public Hearings; and, during discussion of items appearing under Municipal Matters. Page 5 City of Hermosa Beach Printed on 7/19/2021 5 July 13, 2021City Council Regular Meeting Agenda All comments from the public under this agenda item are limited to three minutes per speaker, but this time allotment may be reduced due to time constraints. The City Council acknowledges receipt of the written communications listed below. No action will be taken on matters raised in oral and written communications, except that the Council may take action to schedule issues raised in oral and written communications for a future agenda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. WRITTEN COMMUNICATION21-0404a. Recommendation:Staff recommends City Council receive and file the written communication. WRITTEN COMMUNICATION from Arthur Schaper (Submitted 6-25-21 at 5.55 p.m.) Attachments: X. CITY COUNCILMEMBER COMMENTS: Councilmembers may briefly respond to public comments, may ask a question for clarification or make a brief announcement or report on his or her own activities or meetings attended. UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES 21-0405a. SUPPLEMENTAL attachment Economic Developement Committee Progress Report (Submitted 7-13-21 at 4.43 p.m.) Attachments: XI. CONSENT CALENDAR: The following matters will be acted upon collectively with a single motion and vote to approve with the majority consent of the City Council. Councilmembers may orally register a negative vote on any consent calendar item without pulling the item for separate consideration prior to the vote on the consent calendar. There will be no separate discussion of these items unless a Council member removes an item from the Consent Calendar, either under Approval of the Agenda or under this item prior to the vote on the consent calendar. Items removed will be considered under Agenda Item XII (12), with public comment permitted at that time. The title is deemed to be read and further reading waived of any ordinance listed on the consent calendar for introduction or adoption. CITY COUNCIL MEETING MINUTES (City Clerk Eduardo Sarmiento) REPORT 21-0406 a. Recommendation:Staff recommends City Council approve the following minutes: 1. June 22, 2021 Regular City Council Meeting 2. October 13, 2020 Regular City Council Meeting 3. October 19, 2020 Adjourned Regular City Council Meeting 4. October 27, 2020 Regular City Council Meeting 1. 06-22-21 Regular City Council Mtg. Minutes 2. 10-13-20 CC Regular City Council Mtg. Minutes 3. 10-19-20 Clark Building Community Forum Mtg. Minutes 4. 10-27-20 Regular City Council Mtg. Minuets Attachments: Page 6 City of Hermosa Beach Printed on 7/19/2021 6 July 13, 2021City Council Regular Meeting Agenda CHECK REGISTERS (Finance Director Viki Copeland) REPORT 21-0412 b. Recommendation:Staff recommends City Council ratify the following check registers. 1. 6-10-21 2. 6-17-21 3. 6-28-21 4. SUPPLEMENTAL Email from Howard Longacre (Submitted 7-12-21 at 4.29 a.m.) 5. SUPPLEMENTAL Ecomment from Carolyn Petty (Submitted 7-12-21 at 7.25 p.m.) 6. SUPPLEMENTAL Ecomment from Matt McCool (Submitted 7-13-21 at 12.15 p.m.) Attachments: 2019-20 COMPREHENSIVE ANNUAL FINANCIAL REPORT (ANNUAL REPORT) (Including Report from Independent Auditor) (Finance Director Viki Copeland) REPORT 21-0416 c. Recommendation:Staff recommends City Council receive and file the 2019-20 Comprehensive Annual Financial Report (Annual Report), which includes the report from Gruber and Associates, the City's independent auditors. 2019-20 Comprehensive Annual Financial ReportAttachments: ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF JUNE 2, 2021 (Community Resources Director Kelly Orta) REPORT 21-0398 d. Recommendation:Staff recommends City Council receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of June 2, 2021. Minutes of June 2,2021Attachments: LOS ANGELES COUNTY FIRE SERVICES AND AMBULANCE MONTHLY REPORT FOR MAY 2021 (Emergency Management Coordinator Brandy Villanueva) REPORT 21-0414 e. Recommendation:Staff recommends City Council receive and file the May 2021 Fire and Ambulance monthly report. Fire and Ambulance Monthly Report_May 2021Attachments: APPROVAL OF A SPECIAL EVENT LONG-TERM AGREEMENT WITH SHAKESPEARE BY THE SEA FOR ITS ANNUAL EVENT HELD AT VALLEY PARK (Senior Recreation Supervisor Lisa Nichols) REPORT 21-0390 f. Recommendation:Staff recommends City Council: 1. Approve a two-year agreement with Shakespeare by the Sea for its annual event held at Valley Park; and 2. Authorize the Mayor and City Council to execute the agreement, subject to approval by the City Attorney (Attachment 1). Page 7 City of Hermosa Beach Printed on 7/19/2021 7 July 13, 2021City Council Regular Meeting Agenda Proposed Agreement between the City of Hermosa Beach and Shakespeare by the Sea Attachments: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH APPROVING THE GRANT OF FUNDS FROM THE STATE COASTAL CONSERVANCY FOR HERMOSA BEACH PARKING LOT GREENING PROJECT (Environmental Programs Manager Doug Krauss) REPORT 21-0397 g. Recommendation:Staff recommends City Council: 1. Adopt Resolution 21-7279 approving the grant of funds from the state Coastal Conservancy for Hermosa Beach Parking Lot Greening Project; and 2. Authorize the City Manager, or designee, to act as a representative to negotiate and execute on behalf of the City all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements. 1. Draft Grant Agreement 2. Resolution 21-7279 Attachments: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH CONTINUING THE TEMPORARY CLOSURE OF PARTS OF CITY STREETS AS PART OF THE COVID-19 PANDEMIC RESPONSE AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (Environmental Programs Manager Doug Krauss) REPORT 21-0396 h. Recommendation:City Staff recommends City Council adopt a resolution continuing the temporary closure of parts of City streets as part of the COVID-19 pandemic response and finding the same exempt from the California Environmental Quality Act (CEQA). Draft ResolutionAttachments: ORDINANCE 21-1432 OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING CHAPTER 8.60 OF THE HERMOSA BEACH MUNICIPAL CODE TO COMPLY WITH THE DEPARTMENT OF WATER RESOURCES’ MODEL WATER EFFICIENT LANDSCAPE ORDINANCE (City Clerk Eduardo Sarmiento) REPORT 21-0413 i. Recommendation:Staff recommends City Council waive full reading and adopt by title Ordinance No. 21-1432. Ordinance 21-1432Attachments: APPROVAL OF A SPECIAL EVENT LONG-TERM AGREEMENT WITH THE INTERNATIONAL SURF FESTIVAL FOR ITS ANNUAL EVENT HELD ON THE BEACH (Senior Recreation Supervisor Lisa Nichols) REPORT 21-0411 j. Recommendation:Staff recommends City Council: 1. Approve a three-year agreement with the International Surf Festival for its annual event held on the beach; and 2. Authorize the Mayor and City Council to execute the agreement, subject to approval by the City Attorney (Attachment 1). 1.Agreement between the City of Hermosa Beach and International Surf Festival to provide International Surf Festival Attachments: Page 8 City of Hermosa Beach Printed on 7/19/2021 8 July 13, 2021City Council Regular Meeting Agenda XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION - Items pulled from the Consent Calendar will be handled separately. Public comment will be taken prior to Council deliberation and action on each item pulled from the Consent Calendar. XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M. ADOPTION OF FISCAL YEAR 2021-22 BUDGET (Continued from June 29, 2021) (Finance Director Viki Copeland) REPORT 21-0403 a. Recommendation:Staff recommends City Council: 1. Hear public testimony regarding the Fiscal Year 2021-22 Budget (Attachments 1 and 2); 2. Approve increase in rates for legal services effective July 1, 2021 and approve an annual CPI adjustment commencing 2023 (Attachment 3); and 3. Adopt a Resolution approving the 2021-22 Budget as presented in Exhibit A (included in Attachment 4). 1. Link to Fiscal Year 2021-22 Preliminary Budget and CIP (Online Platform) 2. Link to Fiscal Year 2021-22 Preliminary Budget and CIP (PDF Version) 3. City Attorney_Proposed Rates 2021 4. Reso No. 21-xxxx - Budget Adoption 21-22 5. 2021-22 General Fund Summary 6. SUPPLEMENTAL Ecomment from Matt McCool (Submitted 6-29-21 at 1.16 p.m.) 7. SUPPLEMENTAL Presentation (Submitted 6-29-21 at 3.29 p.m.) Attachments: PUBLIC HEARING TO REVIEW DELINQUENT SOLID WASTE COLLECTION (REFUSE) CHARGES FOR CONSIDERATION OF PLACING SAID CHARGES ON THE PROPERTY TAX ROLLS AS A SPECIAL ASSESSMENT. THE ASSESSMENT WOULD AFFECT ONLY THOSE PROPERTIES WITH REFUSE BILLS DELINQUENT AS OF MARCH 31, 2021. (Environmental Programs Manager Douglas Krauss) REPORT 21-0395 b. Recommendation:Staff recommends City Council: 1.Receive testimony from affected property owners regarding delinquent refuse bills; and 2.Adopt the attached Resolution authorizing and requesting the County Assessor to place delinquent refuse charges for Athens Services, which remain 10 days following the hearing, as a special assessment for collection as part of the County tax collection process. 1. List of Properties 2. Notice of Hearing 3. Resolution 21-7284 Attachments: Page 9 City of Hermosa Beach Printed on 7/19/2021 9 July 13, 2021City Council Regular Meeting Agenda PUBLIC HEARING-HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT FISCAL YEAR 2021-2022 (Interim Public Works Director Angela Crespi) REPORT 21-0366 c. Recommendation:Staff recommends City Council: 1. Conduct a Public Hearing in connection with the levy of assessments for Hermosa Beach Landscaping and Street Lighting District 2021-2022; and 2. Adopt the attached Resolution confirming the diagram and assessment for Hermosa Beach Landscaping and Street Lighting District 2021-2022 and levying an assessment for the Fiscal Year beginning July 1, 2021and ending June 30, 2022. 1. Engineer’s Report 2. Draft Resolution Attachments: CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) REPORT 21-0422 d. Recommendation:Staff recommends City Council: 1. Reconsider the April 20, 2021 Planning Commission decision to deny the Conditional Use Permit Amendment; 2. Conduct the Public Hearing; and 3. Adopt draft resolution approving the Conditional Use Permit Amendment (CUP) 20-8 to provide onsite sale, service, and consumption of alcohol, limited to beer and wine indoors only, within the hotel lounge for registered guests only, seven days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) located at 1429 Hermosa Avenue, and determination that the project is Categorically exempt from the California Environmental Quality Act (CEQA). Page 10 City of Hermosa Beach Printed on 7/19/2021 10 July 13, 2021City Council Regular Meeting Agenda 1. Draft Resolution 2. Link to Planning Commission Staff Report, dated March 16, 2021 3. Link to Planning Commission Minutes, dated March 16, 2021 4. Link to Planning Commission Public Hearing, dated April 20, 2021 5. Link to Planning Commission Minutes, dated April 20, 2021 6. P.C. Denial Resolution 21-XX 7. Applicant's Modified Request 8. PC Reso No. 15-25 9. Notice Poster 10. SUPPLEMENTAL Ecomment from Bob Jones (Submitted 7-11-21 at 1.44 p.m.) 11. SUPPLEMENTAL Ecomment from Courtney Ryan (Submitted 7-11-21 at 2.09 p.m.) 12. SUPPLEMENTAL Ecomment from Andrea Jacobsson (Submitted 7-11-21 at 3.14 p.m.) 13. SUPPLEMENTAL Ecomment from Alma Robinson (Submitted 7-11-21 at 6.43 p.m.) 14. SUPPLEMENTAL Ecomment from Randy Balik (Submitted 7-12-21 at 8.06 a.m.) 15. SUPPLEMENTAL Ecomment from Javier Salazar (Submitted 7-12-21 at 10.54 a.m.) 16. SUPPLEMENTAL Ecomment from Tara McNamara Stabile (Submitted 7-13-21 at 5.53 a.m.) 17. SUPPLEMENTAL Ecomment from Kathy Knoll (Submitted 7-13-21 at 9.25 a.m.) 18. SUPPLEMENTAL Ecomment from Marina Boulanger (Submitted 7-13-21 at 9.55 a.m.) 19. SUPPLEMENTAL Ecomment from Jon David (Submitted 7-13-21 at 12.19 p.m.) 20. SUPPLEMENTAL Ecomment from Ira Ellman (Submitted 7-13-21 at 1.41 p.m.) 21. SUPPLEMENTAL Ecomment from Laura Pena (Submitted 7-13-21 at 2.19 p.m.) 22. SUPPLEMENTAL Ecomment from Daniel Rittenhouse (Submitted 7-13-21 at 2.42 p.m.) 23. SUPPLEMENTAL Ecomment from Peter Tucker (Submitted 7-13-21 at 2.59 p.m.) Attachments: XIV. MUNICIPAL MATTERS CITY COUNCIL CONSIDERATION OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION’S PROPOSED USAGE HOURS AND UPDATED USE POLICIES FOR THE KELLY PICKLEBALL COURTS (Senior Recreation Supervisor Lisa Nichols) REPORT 21-0417 a. Page 11 City of Hermosa Beach Printed on 7/19/2021 11 July 13, 2021City Council Regular Meeting Agenda Recommendation:Staff recommends City Council: 1. Approve the Parks, Recreation and Community Resources Advisory Commission's recommended changes to Kelly Pickleball Courts use policies including reservation provisions and the scheduling of clinics for beginner players; and updates to the court usage hours totaling 42 hours per week; and 2. Consider the Commission's recommendation to implement these updated use policies through a 90-day pilot program. 1. Action Plan for the Pickleball Stakeholders Focus Group 2. Summary of Proposed Actions from the PIckleball Stakeholders Focus Group 3. SUPPLEMENTAL Ecomment from Mary Young (Submitted 7-12-21 at 9.22 a.m.) Attachments: AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) REPORT 21-0420 b. Recommendation:Staff recommends City Council: 1. Award the construction contract for CIP 669 City Park Restrooms and Renovations, including the three alternate bid items to Aid Builders, Inc., the lowest responsible bidder, in the amount of $1,750,000; 2. Reject the bid protest from Cybertech Construction Company, Inc. regarding the missing addendum from Aid Builders, Inc. and waive the irregularity of Aid Builders, Inc.; 3. Authorize the Interim Director of Public Works to establish a 20 percent project contingency for a total amount of $350,000; 4. Adopt the attached resolution entitled "A Resolution of The City Council of The City of Hermosa Beach Approving the Construction of CIP 669 City Park Restrooms and Renovations Pursuant to Government Code Section 830.6 and Establishing a Project Payment Account"; 5. Authorize the Mayor to execute the construction contract and the City Clerk to attest, subject to approval by the City Attorney; and 6. Authorize the Interim Director of Public Works to file a Notice of Completion following completion of the project. Page 12 City of Hermosa Beach Printed on 7/19/2021 12 July 13, 2021City Council Regular Meeting Agenda 1. Bid Opening Results 2. Bid Protest Cyberteck AND Response AID 3. Draft Resolution 4. Draft Contract 5. SUPPLEMENTAL Attachment Cybertech bid (Submited 7-13-21 at 12.07 p.m.) 6. SUPPLEMENTAL Attachment Aid Builders Bid (Submitted 7-13-21 at 12.07 p.m.) 7. SUPPLEMENTAL Attachment Clark Field Restroom (Submitted 7-13-21 at 12.07 p.m.) 8. SUPPLEMENTAL Attachment Fort Lots O Fun Restroom (Submitted 7-13-21 at 12.07 p.m.) 9. SUPPLEMENTAL Attachment Seaview Park Restroom (Submitted 7-13-21 at 12.07 p.m.) 10. SUPPLEMENTAL Attachment South Park Restroom (Submitted 7-13-21 at 12.07 p.m.) 11. SUPPLEMENTAL Ecomment from Ronald Neer (Submitted 7-13-21 at 1.11 p.m.) 12. SUPPLEMENTAL Ecomment from Sean Olsen (Submitted 7-13-21 at 1.39 p.m.) 13. SUPPLEMENTAL Ecomment from Erik Charlton (Submitted 7-13-21 at 1.41 p.m.) 14. SUPPLEMENTAL Ecomment from Matt Schaub (Submitted 7-13-21 at 2.13 p.m.) 15. SUPPLEMENTAL Ecomment from Jeff Miller (Submitted 7-13-21 at 2.46 p.m.) Attachments: ASSIGNMENT AGREEMENT BETWEEN THE CITY OF WEST HOLLYWOOD AND THE CITY OF HERMOSA BEACH FOR THE EXCHANGE OF PROPOSITION A LOCAL RETURN FUNDS (Finance Director Viki Copeland) REPORT 21-0415 c. Recommendation:Staff recommends City Council: 1. Approve an Assignment Agreement for a Proposition A (Prop A) Local Return Fund Exchange with the City of West Hollywood for $700,000 in City of Hermosa Beach Proposition A funds in exchange for $490,000 of unrestricted funds from the City of West Hollywood; and 2. Authorize the City Manager to execute documents incident to the Agreement. Assignment Agreement with the City of West HollywoodAttachments: VACANCIES-BOARDS AND COMMISSIONS EXPIRATION OF TERMS-PARKS, RECREATION AND COMMUNITY RESOURCES COMMISSION (City Clerk Eduardo Sarmiento) REPORT 21-0421 d. Recommendation:Staff recommends City Council appoint three of the five candidates for the Parks, Recreation and Community Resources Advisory Commission to four-year terms ending June 30, 2025. Page 13 City of Hermosa Beach Printed on 7/19/2021 13 July 13, 2021City Council Regular Meeting Agenda 1. Jani Lange Application 2. Lauren Pizer Mains Application 3. E. Thomas Moroney Application 4. Isabel Rodriguez Application 5. Tara McNamara Stabile Application Attachments: CITY COUNCIL COMMITTEE REORGANIZATION JULY 2021 (City Clerk Eduardo Sarmiento) REPORT 21-0424 e. Recommendation:Staff recommends City Council: 1. Extend the decommission date for the Public Asset Naming Subcommittee; 2. Establish a Fiesta Hermosa Subcommittee with a defined scope and target decommission date; 3. Add and/or delete any other temporary subcommittees, as appropriate; 4. Appoint a delegate to the California Contract Cities Association; 5. Appoint an alternate to the Watershed Advisory Council of Santa Monica Bay Restoration Commission; 6. Consider other committee re-assignments or re-affirm current appointments; and 7. If delegate/alternate changes are made to the South Bay Cities Council of Government (SBCCOG), adopt the attached resolution to reflect the changes. 1. City Council Committee List as of 1-4-21.pdf 2. Draft SBCCOG Resolution 3. Committee Information Attachments: XV. FUTURE AGENDA ITEMS - Requests from Councilmembers for possible future agenda items and questions from Councilmembers regarding the status of future agenda items. No discussion or debate of these requests shall be undertaken; the sole action is whether to schedule the item for consideration on a future agenda. No public comment will be taken. Councilmembers should consider the city's work plan when considering new items. The existing list of future agenda items below is for information only. TENTATIVE FUTURE AGENDA ITEMS21-0423a. 1. Tentative Future Agenda.pdf 2. SUPPLEMENTAL Email from Howard Longacre (Submitted 7-13-12 at 1.23 p.m.) Attachments: XVI. ADJOURNMENT Page 14 City of Hermosa Beach Printed on 7/19/2021 14 July 13, 2021City Council Regular Meeting Agenda FUTURE MEETINGS AND CITY HOLIDAYS CITY COUNCIL MEETINGS: July 27, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 10, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 16, 2021 - Monday - Adjourned Regular Meeting: 5:00 PM - Tri-Agency Meeting with HBCSD and BCHD August 24, 2021 - Tuesday - No Meeting (Dark) September 14, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting September 28, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting October 12, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting October 23, 2021 - Saturday - Adjourned Regular Meeting: 9:00 AM - City Council Retreat October 26, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting November 9, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting (Mayor Transition) November 23, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting December 14, 2021 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting December 28, 2020 - Tuesday - No Meeting (Dark) BOARDS, COMMISSIONS AND COMMITTEE MEETINGS: July 21, 2021 - Wednesday - 6:00 PM - Public Works Commission Meeting July 20, 2021 - Tuesday - 6:00 PM - Planning Commission Meeting July 26, 2021 - Monday - 6:00 PM - Parks and Recreation Advisory Commission August 2, 2021 - Monday - 6:00 PM - Economic Development Committee Meeting August 3, 2021 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting August 17, 2021 - Tuesday - 6:00 PM - Planning Commission Meeting September 9, 2021 - Thursday - 7:00 PM - Parks and Recreation Advisory Commission Meeting September 13, 2021 - Monday - 6:00 PM - Economic Development Committee Meeting September 21, 2021 - Tuesday - 6:00 PM - Planning Commission Meeting September 15, 2021 - Wednesday - 6:00 PM - Public Works Commission Meeting October 4, 2021 - Monday - 6:00 PM - Economic Development Committee Meeting October 5, 2021 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting October 19, 2021 - Tuesday - 6:00 PM - Planning Commission Meeting November 1, 2021 - Monday - 6:00 PM - Economic Development Committee Meeting November 2, 2021 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting November 16, 2021 - Tuesday - 6:00 PM - Planning Commission Meeting November 17, 2021 - Wednesday - 6:00 PM - Public Works Commission Meeting December 6, 2021 - Monday - 6:00 PM - Economic Development Committee Meeting December 7, 2021 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting December 13, 2021 - Monday - 6:00 PM - Planning Commission Meeting Page 15 City of Hermosa Beach Printed on 7/19/2021 15 July 13, 2021City Council Regular Meeting Agenda CITY OFFICES CLOSED FRIDAY-SUNDAY AND ON THE FOLLOWING DAYS: September 6, 2021 - Monday - Labor Day November 11, 2021 - Thursday - Veteran's Day November 25, 2021 - Thursday - Thanksgiving Day Page 16 City of Hermosa Beach Printed on 7/19/2021 16 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0427 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of July 13, 2021 MINUTES: Approval of minutes of Closed Session held on June 22, 2021. City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™17 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0426 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of July 13, 2021 CONFERENCE WITH LEGAL COUNSEL:Existing Litigation Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Case:Donna Bauer v. Hermosa Beach, et al. Case Number:19 STCV 32667, Los Angeles Superior Court City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™18 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0428 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of July 13, 2021 CONFERENCE WITH LEGAL COUNSEL: Workers Comp Litigation Pending Litigation - Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Case: Christopher Alkadis v. City of Hermosa Beach WCAB Number: ADJ13727382 City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™19 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0407 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 INTRODUCTION OF LIFEGUARDS City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™20 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0408 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 SOUTHERN CALIFORNIA EDISON ANNUAL RELIABILITY REPORT City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™21 Circuit Reliability Review Hermosa Beach 2021 22 2 •Southern California Edison (SCE) is an Edison International company •One of the nation’s largest electric utilities •More than 130 years of history •Headquartered in Rosemead, California •Regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) •50,000 square miles of SCE service area across Central, Coastal, and Southern California •15 million residents through 5 million customer accounts •445 communities and 13 Native American tribes Who We Are 23 Our Grid To deliver safe, reliable, and affordable power, we monitor and maintain a vast electricity system 730,000 Transformers 119,000 Miles of Transmission and Distribution Lines 4,600 Circuits 1.4 Million Poles 50,000 Square Miles 324 425 Strengthening and Modernizing the Grid •Infrastructure reliability –updating underground cables, poles, switches, and transformers •Wildfire mitigation –hardening infrastructure, bolstering situational awareness capabilities, and enhancing operational practices •Transmission –connecting renewables, installing new substations, and updating lines •Grid readiness –updating the grid for impacts from new technologies •Long-term energy policy –supporting energy storage, electric vehicles, and renewables SCE plans to spend more than $5B each year to maintain, improve, and harden its infrastructure SCE’s investments support safe, reliable, affordable, and clean energy for our customers 2020 Capital Investments 235 miles of underground cable replaced 97 miles of overhead conductor replaced for public safety 11.1k distribution poles replaced 3.6k transmission poles replaced 79 underground structure replacements 526 Protecting Public Safety: Wildfire Mitigation Activities 2020 Year-End Progress Report –Data as of 12/31/20 627 Protecting Public Safety: Public Safety Power Shutoffs 7 •To reduce the threat of wildfires, SCE implements Public Safety Power Shutoffs (PSPS) to temporarily shut off power to some customers in areas with a high risk for wildfires to prevent the electric system from becoming the source of ignition •PSPS is used as a measure of last resort to protect public safety under dangerous fire weather conditions, including high winds, low humidity, and dry vegetation •Multiple methods are used to notify people in affected areas before, during and after a PSPS event •SCE provides resources to support customers during PSPS and offers several programs and rebates to help customers be prepared and more resilient during emergencies •SCE is working to reduce the impact of PSPS and is continuing to strengthen the electric grid to become more resilient in the face of extreme weather events 28 SCE.COM/Outage 829 Pathway 2045: Key steps California must take to reach carbon neutrality Creating a Clean Energy Future 9 100% of grid sales with carbon-free electricity 80 GW of utility -scale clean generation 30 GW of utility -scale energy storage 70% of all buildings will use efficient electric space and water heating 90% fewer GHG emissions from all- electric homes 26 million electric vehicles Over 1 million electrified medium and heavy duty vehicles 50% reduction in natural gas consumption 40% of the remaining natural gas is biomethane and hydrogen 30 Reliability Overview 1031 What is Reliability? •In simplest terms: Having dependable electricity when you need it. •Outages: •Maintenance outages (aka planned outages) •Repair outages (aka unplanned outages) •Sustained Outage = An outage lasting > 5 minutes •Momentary Outage = An outage lasting ≤ 5 minutes •Public Safety Power Shutoff (PSPS) 11 Major Event Day (MED) : A day in which the daily system SAIDI exceeds a threshold value. For the purposes of calculating daily system SAIDI, any interruption that spans multiple calendar days is accrued to the day on which the interruption began. Statisticall y, days having a daily system SAIDI greater than a threshold value are days on which the energy delivery system experienced stresses beyond th at normally expected (such as severe weather). Public Safety Power Shutoff (PSPS) : An operational protocol that SCE implements under extreme weather conditions in order to minimize the threat of wildfires and keep communities safe from potentially dangerous situations. These types of sustained outages ar e temporary and usually involve situations where high fire areas are experiencing adverse weather or public safety is at risk. 32 How Do We Measure Reliability? 1233 11Overview of Hermosa Beach There are 14 circuits that serve Hermosa Beach 1 Circuit Type Customers Circuit Type Customers Circuit Type Customers Circuit Type Customers ADDIS(16KV)3,765 --- CAMINO REAL(4.16KV)418 --- CARNELIAN(16KV)6,317 --- CLEO(4.16KV)947 --- CYLINDER(16KV)1,512 --- EL PASEO(4.16KV)559 --- HERMOSA(4.16KV)968 --- HILL(4.16KV)505 --- KEATS(4.16KV)164 --- KING(16KV)4,605 --- MORGAN(4.16KV)421 --- NO BEACH(4.16KV)615 --- OZONE(4.16KV)442 --- SO STRAND(4.16KV)346 --- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- Grand Total 21,584 Note: The number of customers listed represents the total number of customers on each circuit (not the local jurisdiction). 1334 BarChart SCE SYSTEMWIDE **Data is as of 03/16/2021, data can be slightly different due to outage data validation process Hermosa Beach Reliability History of Circuits Serving Hermosa Beach (No Exclusions) **“Exclusions” are days which utilities are allowed to remove from their metrics because the outages on those days were caused by acts of nature. 95.8 61.2 108.9 27.7 139.7 136.8 178.0 201.3 0.0 50.0 100.0 150.0 200.0 250.0 2017 2018 2019 2020 SAIDI (average minutes of sustained interruptions) 0.9 1.0 1.2 0.4 1.2 0.9 1.0 1.1 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 SAIFI (average frequency of sustained interruptions) 1.6 1.2 1.1 1.1 1.8 1.4 1.4 1.4 0.0 0.5 1.0 1.5 2.0 MAIFI (average frequency of momentary interruptions) 1435 SAIDIChart SAIDI = the cumulative amount of time the average customer is interrupted by “sustained” outages each year. Causes of Repair Outages in Hermosa Beach 2020 Equipment Failure 32.5% Operation 41.6% 3rd Party 0.9% Vegetation /Animal 0.0% Other 25.1% Contributions to SAIDI by Outage Cause▪Equipment Failure e.g., in-service failure of transformer, switch, or conductors ▪Vegetation/Animal e.g., tree branch, rodent, or bird causing a short circuit between conductors ▪Other e.g., patrolled but no cause found ▪Operations e.g., urgent maintenance w/o 3-day notice ▪3rd Party e.g., balloon, car hit pole, dig-in ▪PSPS e.g., Public Safety Power Shutoff 1536 SAIFIChart SAIFI = the number of times the average customer is interrupted by “sustained” outages each year Causes of Repair Outages in Hermosa Beach 2020 3rd Party 1.9% Equipment Failure 28.7% Operation 44.2% Other 25.2% Vegetation /Animal 0.0% Contributions to SAIFI by Outage Cause ▪Equipment Failure e.g., in-service failure of transformer, switch, or conductors ▪Vegetation/Animal e.g., tree branch, rodent, or bird causing a short circuit between conductors ▪Other e.g., patrolled but no cause found ▪Operations e.g., urgent maintenance w/o 3-day notice ▪3rd Party e.g., balloon, car hit pole, dig-in ▪PSPS e.g., Public Safety Power Shutoff 1637 1738 1839 Back-up Slides Reliability Histories of Circuits Serving Hermosa Beach Updated through Dec 2020 1940 Go-to SCE links and phone numbers Issue Type Contact Info Outages -report/status General Customer sce.com/localplanning www.sce.com/outage 1 -800-611-1911 1 -800-655-4555 File or get status of a claim www.sce.com/claims 800-251-3311 claims@sce.com Ensure clearance between vegetation & power lines 800-655-4555 Report a streetlight out https://www.sce.com/outage-center/report- street-light-outage OR My SCE app or call (800) 611 - 1911 #3 Medical Baseline https://www.sce.com/residential/assistance/medi cal-baseline 1 -800-684-8123 or 800-655-4555 Wildfire sce.com/wildfire wildfireoutreach@sce.com Public Safety Power Shutoffs www.sce.com/psps (which includes signing up for outage alerts) LNO Hotline: During PSPS IMT, monitored 24/7 for City Officials 1 -800-737-9811 Vegetation Management sce.com/safety/power-lines 1 -800-655-4555 or safetrees@sce.com Graffiti abatement To report graffiti on SCE facilities: Call AES toll - free number: 1 -866-421-4688 (for cities, not general public); Email: graffitihotline_aes_sce@yahoo.com 1 -866-421-4688 2041 CitySummary SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI 95.8 0.9 1.6 61.2 1.0 1.2 108.9 1.2 1.1 9.3 0.1 0.1 1.0 0.0 0.4 16.5 0.3 0.5 0.9 0.0 0.1 27.7 0.4 1.1 3rd Party 20%3%40%3%4%8%6%14%7%-----88%1%3%8%--99%1%2%43% Equipment Failure 74%82%49%61%50%8%76%62%24%59%80%-19%15%-18%17%60%27%15%1%32%29%25% Operation 3%8%2%15%38%-6%6%0%36%8%-81%85%-40%50%32%73%85%-42%44%13% Other 1%1%4%1%4%26%1%10%44%5%12%100%--12%40%30%----25%25%18% Vegetation/Animal -----36%11%7%26%--------------- Weather/Fire/Earthquake 3%5%5%19%5%22%------------------ PSPS ------------------------ SCE SYSTEMWIDE 139.7 1.2 1.8 136.8 0.9 1.4 178.0 1.0 1.4 17.1 0.2 0.3 17.2 0.2 0.4 71.4 0.3 0.4 95.5 0.4 0.4 201.3 1.1 1.4 Average Reliability of 14 Circuits Serving Hermosa Beach 4th Qtr 2020 20202017201820191st Qtr 2020 2nd Qtr 2020 3rd Qtr 2020 14 Circuits Serving Hermosa Beach -- Total Customers: 21,584 Notes: No outages are excluded from the metrics. Outage Causes: Other: e.g., patrolled but no cause could be found Operations: e.g., urgent maintenance w/o 3-day notice to customers 3rd Party: e.g., balloons, car hit pole, dig-in Vegetation/Animal: e.g., tree branch, rodent, or bird causing short circuit across conductors PSPS: e.g., Public Safety Power Shutoff SAIDI (minutes) = the cumulative amount of time the average customer is interrupted by “sustained” (longer than 5 minutes) ou tages. SAIFI (interruptions) = the number of times the average customer is interrupted by “sustained” outages. MAIFI (interruptions) = the number of times the average customer is interrupted by “momentary " (lasting 5 minutes or less) outages. 2142 CircuitHistory1 SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI ADDIS(16KV) - Customers: 3,765 263.1 2.0 1.0 3.5 0.2 -460.2 3.6 3.8 ---1.1 0.0 0.8 70.8 1.2 1.7 --0.0 71.9 1.2 2.5 3rd Party ------8%28%------100%0%0%----0%0%33% Equipment Failure 100%100%100%81%91%-71%49%48%---100%100%-24%25%49%--100%25%25%33% Operation ---19%9%-3%7%-------53%71%51%---52%71%34% Other ---------------23%4%----22%4%- Vegetation/Animal ------18%16%52%--------------- Weather/Fire/Earthquake ------------------------ PSPS ------------------------ CAMINO REAL(4.16KV) - Customers: 418 ---74.4 1.0 -2.5 0.0 ---5.3 -----------5.3 3rd Party ------------------------ Equipment Failure ---100%100%-100%100%---------------- Operation ------------------------ Other -----------100%-----------100% Vegetation/Animal ------------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ CARNELIAN(16KV) - Customers: 6,317 110.3 0.6 2.4 97.8 1.1 1.0 110.5 1.1 -1.6 0.0 ---0.8 ------1.6 0.0 0.8 3rd Party 75%17%82%-----------100%--------100% Equipment Failure 18%71%18%100%100%-89%94%-94%91%----------94%91%- Operation 7%12%----11%6%-6%9%----------6%9%- Other ------------------------ Vegetation/Animal ------------------------ Weather/Fire/Earthquake ---0%0%100%------------------ PSPS ------------------------ CLEO(4.16KV) - Customers: 947 21.6 0.1 -2.8 0.0 2.0 --1.0 1.0 0.0 -5.6 0.0 -------6.6 0.0 - 3rd Party ------------------------ Equipment Failure 93%80%-------100%100%----------15%58%- Operation 7%20%-100%100%-------100%100%-------85%42%- Other -----50%--100%--------------- Vegetation/Animal -----50%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ Reliability Histories for Individual Circuits Serving Hermosa Beach - 1 of 4 2017 2018 2019 1st Qtr 2020 2nd Qtr 2020 3rd Qtr 2020 4th Qtr 2020 2020 2243 CircuitHistory 2 SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI CYLINDER(16KV) - Customers: 1,512 64.1 1.3 1.0 --2.0 1.8 0.0 1.0 2.9 0.0 ----0.4 0.0 -1.1 0.0 -4.3 0.0 - 3rd Party ------------------------ Equipment Failure 97%98%100%---------------100%100%-24%22%- Operation 3%2%----100%100%-100%100%----100%100%----76%78%- Other -----51%--100%--------------- Vegetation/Animal -----49%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ EL PASEO(4.16KV) - Customers: 559 70.3 0.9 1.0 ---70.0 1.1 1.0 77.9 0.1 -1.5 0.1 -37.4 1.6 ----116.9 1.7 - 3rd Party --100%-----100%--------------- Equipment Failure 100%100%----75%92%---------------- Operation ------25%8%-100%100%-100%100%-------68%6%- Other ---------------100%100%----32%94%- Vegetation/Animal ------------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ HERMOSA(4.16KV) - Customers: 968 110.9 1.0 2.6 4.0 0.1 1.0 1.7 0.0 -111.8 1.3 ---------1.3 111.8 1.3 1.3 3rd Party --39%-----------------100%--100% Equipment Failure 100%99%22%84%81%-10%20%-100%100%----------100%100%- Operation 0%1%-16%19%-90%80%---------------- Other --39%--100%------------------ Vegetation/Animal ------------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ HILL(4.16KV) - Customers: 505 170.9 1.0 2.0 80.5 2.0 1.9 1.2 0.1 3.0 1.7 0.0 ----0.6 0.0 1.5 ---2.2 0.0 1.5 3rd Party ---67%50%---33%--------------- Equipment Failure 95%97%51%2%0%----100%100%------100%---74%32%100% Operation 5%3%49%0%1%-100%100%1%------100%100%----26%68%- Other ---31%48%---66%--------------- Vegetation/Animal -----100%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ Reliability Histories for Individual Circuits Serving Hermosa Beach - 2 of 4 2017 2018 2019 1st Qtr 2020 2nd Qtr 2020 3rd Qtr 2020 4th Qtr 2020 2020 2344 CircuitHistory 3 SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI KEATS(4.16KV) - Customers: 164 --1.0 --3.0 --2.0 --------1.0 -----1.0 3rd Party ------------------------ Equipment Failure --100%--------------100%-----100% Operation ------------------------ Other -----33%--100%--------------- Vegetation/Animal -----67%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ KING(16KV) - Customers: 4,605 34.6 0.5 1.6 89.8 2.7 0.4 49.7 1.7 0.4 7.1 0.1 -2.6 0.0 -0.4 0.0 ----10.1 0.1 - 3rd Party ------------------------ Equipment Failure 94%97%100%44%25%100%79%61%----2%14%-------0%5%- Operation 6%3%-56%75%-5%1%-73%28%-98%86%-100%100%----80%53%- Other ------15%38%100%27%72%----------19%42%- Vegetation/Animal ------------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ MORGAN(4.16KV) - Customers: 421 79.2 2.3 3.8 253.5 1.0 2.0 0.2 0.0 1.0 --2.3 ---142.0 2.3 -43.2 0.7 -185.2 2.9 2.3 3rd Party --53%--------------------- Equipment Failure 5%0%----------------20%11%-5%2%- Operation 9%44%----100%100%3%---------80%89%-19%20%- Other 18%11%---50%--97%--100%---100%100%----77%77%100% Vegetation/Animal -----50%------------------ Weather/Fire/Earthquake 68%44%47%100%100%------------------- PSPS ------------------------ NO BEACH(4.16KV) - Customers: 615 6.7 0.0 1.0 15.0 0.1 5.0 11.7 0.1 2.0 0.1 0.0 -0.8 0.0 1.9 --2.5 ---1.0 0.1 4.4 3rd Party ---7%13%41%-----------50%-----29% Equipment Failure 57%9%100%93%87%-86%45%---------50%-----29% Operation 43%91%----14%55%-100%100%-100%100%-------100%100%- Other -----20%--100%-----100%--------43% Vegetation/Animal -----40%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ Reliability Histories for Individual Circuits Serving Hermosa Beach - 3 of 4 2017 2018 2019 1st Qtr 2020 2nd Qtr 2020 3rd Qtr 2020 4th Qtr 2020 2020 2445 CircuitHistory 4 SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI OZONE(4.16KV) - Customers: 442 --1.0 105.6 1.0 5.0 1.2 0.0 2.0 ------2.9 0.0 1.4 ---2.9 0.0 1.4 3rd Party -----20%------------------ Equipment Failure --100%100%100%-100%100%-------100%100%100%---100%100%100% Operation ------------------------ Other -----20%--100%--------------- Vegetation/Animal -----40%------------------ Weather/Fire/Earthquake -----20%------------------ PSPS ------------------------ SO STRAND(4.16KV) - Customers: 346 1.7 0.0 1.4 8.5 0.0 4.0 36.8 0.5 2.0 ------12.4 0.5 1.8 ---12.4 0.5 1.8 3rd Party ------100%100%-------97%92%----97%92%- Equipment Failure --73%100%100%25%-----------100%-----100% Operation 100%100%-------------3%8%----3%8%- Other --27%--25%--100%--------------- Vegetation/Animal -----50%------------------ Weather/Fire/Earthquake ------------------------ PSPS ------------------------ ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- Reliability Histories for Individual Circuits Serving Hermosa Beach - 4 of 4 2017 2018 2019 1st Qtr 2020 2nd Qtr 2020 3rd Qtr 2020 4th Qtr 2020 2020 2546 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0409 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 NATIONAL PARKS AND RECREATION MONTH City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™47 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0410 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 POLICE CHIEF UPDATE City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™48 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0404 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 WRITTEN COMMUNICATION Recommended Action: Staff recommends City Council receive and file the written communication. Attachments: 1.Email from Arthur Schaper submitted June 25, 2021 City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™49 From:Arthur Schaper To:Eduardo Sarmiento Subject:Fw: Reject CRT, No Letter to Hermos Beach School Board Date:Friday, June 25, 2021 7:27:45 PM Arthur Schaper, Organization Director Website: MassResistance.org Email: arthur@massresistance.org Workcell: (781) 474-3005 Main Office: (781) 890-6001 From: Arthur Schaper Sent: Friday, June 25, 2021 5:55 PM To: citycouncil@hermosabeach.gov; City Clerk, (310) 318-0204 Subject: Reject CRT, No Letter to Hermos Beach School Board Dear Hermosa Beach City Council: My name is Arthur Schaper, and I am the Organization Director for MassResistance. We are the international pro-family group that makes the difference. We were very grateful to provide assistance to a number of activists in Hermosa Beach, in their fight against the push for racist, hateful, cultural marxist propaganda called Critical Race Theory, along with the push to normalize LGBT perversion in the city school district. https://www.massresistance.org/docs/gen4/21b/CA-derailing-CRT-in-Hermosa- Beach/index.html It is appalling to me that a city council such as yours wants to lecture everyone else about fighting systemic racism, when the abusive bullying of your body pushed out one of your former colleagues, Mr. Hany Fangary. An immigrant and an upstanding volunteer in the community, Mr. Fanagary did not deserve the disrespect you levelled towards him. In his own words, Fangary told the local Patch: 50 Fangary, who was serving his second term on the HB city council, was passed over as mayor in November of 2019 and 2020. His colleagues on council elected to do so. Fangary, who filed a lawsuit over his first pass over as mayor, told MB Patch, "When you get slapped in the face by colleagues you considered friends, you learn your lesson. Never again." So, this is how the "majority white" city council treats immigrants? Really?! Shame on the Hermosa Beach city council for this shabby treatment! You have no business making any statements or taking any stance against racism of any kind, since you clearlly exhibited it without reserve. Critical Race Theory and its attending philosophies will only promote more of the same racist bigotry which you showed to Mr. Fangary. Don't bother sending any letter of support for that corrupt curriculum to the Hermosa Beach school board. Instead, each of you should write a letter tendering your resignation. Sincerely, Arthur Schaper, Organization Director Website: MassResistance.org Email: arthur@massresistance.org Workcell: (781) 474-3005 Main Office: (781) 890-6001 51 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0405 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™52 ECONOMIC DEVELOPMENT COMMITTEE PROGRESS REPORT AND TIMELINE Update for Economic Development Committee June 7, 2021 ECONOMIC DEVELOPMENT STRATEGY Initiatives Approved by Economic Development Committee as of 5/3/21 1. Work with Business Community to Explore Formation of Business Improvement District (approved for Economic Development Strategy by Economic Development Committee 11/2/20) 2. Development Assistance Committee/Development Review Committee (approved for Economic Development Strategy by Economic Development Committee 11/2/20) 3. Develop Business Visitation Program (approved for Economic Development Strategy by Economic Development Committee 11/2/20) 4. Vibrant Business Districts – Explore Making the Expanded Outdoor Dining Areas Permanent (approved for Economic Development Strategy by Economic Development Committee 12/7/20) 5. Encourage Retail Attractiveness for Competitive, Strengthened Retail (approved for Economic Development Strategy by Economic Development Committee 12/7/20) DOWNTOWN 6. Focused Update of Downtown Revitalization Strategy, including Preservation of Downtown Retail and Restaurants on First Floor (approved for Economic Development Strategy by Economic Development Committee 1/4/21) 7. Develop Identity/Vision for the Downtown (approved for Economic Development Strategy by Economic Development Committee 1/4/21) 8. Introduce and Facilitate Downtown Experiences (activate public spaces, add interest for residents and visitors) (approved for Economic Development Strategy by Economic Development Committee 1/4/21) GATEWAYS AND CORRIDORS 9. Beautification Program, including gateway entries and funding sources (approved for Economic Development Strategy by Economic Development Committee 4/5/21) 53 10. Façade Improvement Program (approved for Economic Development Strategy by Economic Development Committee 4/5/21) 11. Wayfinding Signs (approved for Economic Development Strategy by Economic Development Committee 4/5/21) MUSIC AND ENTERTAINMENT 12. Long Term Policies to Allow Outdoor Music in Business Locations (approved for Economic Development Strategy by Economic Development Committee 5/3/21) 13. Program to Allow Outdoor Music in Public Spaces (approved for Economic Development Strategy by Economic Development Committee 5/3/21) 14. Explore Music Events and Activities to Celebrate Hermosa Beach Music History and Provide Musical Experiences for Community and Visitors (approved for Economic Development Strategy by Economic Development Committee 5/3/21) ECONOMIC DEVELOPMENT COMMITTEE TIMELINE July 12, 2021 Meeting Receive Comprehensive Progress Report September/October 2021 Complete Economic Development Strategy Initiative Identification November/December 2021 Prioritize and Finalize Economic Development Strategy Initiatives for Recommendation to City Council January 2022 Meeting Receive Comprehensive Progress Report and Planning Meeting for 2022 Work January – June 2022 Work on Priority Economic Initiatives for Recommendation to City Council 54 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0406 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 CITY COUNCIL MEETING MINUTES (City Clerk Eduardo Sarmiento) Recommended Action: Staff recommends City Council approve the following minutes: 1.June 22, 2021 Regular City Council Meeting 2.October 13, 2020 Regular City Council Meeting 3.October 19, 2020 Adjourned Regular City Council Meeting 4.October 27, 2020 Regular City Council Meeting Respectfully Submitted by: Eduardo Sarmiento, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™55 Hermosa Beach City Council Regular Meeting Minutes Tuesday, June 22, 2021 Closed Session-5:00 P.M., Regular Session 6:00 P.M. Virtual Meeting via Zoom City Council Justin Massey, Mayor Michael Detoy, Mayor Pro Tem Stacey Armato, Councilmember Mary Campbell, Councilmember Ray Jackson, Councilmember I. CALL TO ORDER The City Council Regular Meeting of the City of Hermosa Beach met via a virtual meeting held pursuant to Executive Order N-29-20 issued by Governor Gavin Newsom March 17, 2020 on the above date. Meeting was called to order by Mayor Massey at 6:02 p.m. II. PLEDGE OF ALLEGIANCE The pledge of allegiance was led Mayor Massey. III. ROLL CALL Present: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey Absent: None IV. CLOSED SESSION REPORT The following person provided public comment: 1.Brain Dunne 56 City attorney Jenkins stated that closed session began at 5:00 p.m. and one person provided public comment, no additional items were added, and no reportable action was taken. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) V. ANNOUNCEMENTS Mayor Massey began by announcing the completion of the Pride Lifeguard Tower. He shared that a celebration is scheduled for Saturday June 26, 2021 at the Bottle Inn from 9:00 a.m. to 11:00 a.m., followed by a stroll to the Lifeguard Tower and a celebration there from 11:30 a.m. to noon. The celebration will continue at The Deck and Java Man throughout the afternoon and at the Fox and Farrow in the evening. Mayor Massey invited the community to join the celebration and festivities. He went on to acknowledge Hermosa residents Jose and Izzy Bacallao who first proposed repainting one of Hermosa’s iconic lifeguard towers in the rainbow colors of the Pride flag in honor of Pride month. He added that Jose and Izzy have been the driving force for the Pride Lifeguard Tower. They enlisted volunteers and worked with community members who volunteered their time to complete this important project. Mayor Massey also shared that the City Council declared June to be LGBTQ+ Pride Month in Hermosa, and the city is flying the Pride flag as well as lighting Pier Plaza in the Pride flag’s colors in the evening. These all serve as reminders that hate has no home here and that everyone is welcome in Hermosa Beach. Mayor Massey continued his announcements by providing a last reminder about the 10th and final mural unveiling and reception on Monday, June 28 , 2021 at 6pm in Parking Lot B. He added that seating for the unveiling event will be available beginning at 5:30pm behind the old Bijoux Theater at 42 13thStreet. Local Hermosa Beach Musician Jack Tracy will provide live entertainment. The ceremony will last about 30 minutes ending with a live auction, allowing the public to bid on one of the signed & numbered Mural #10 giclée’s. Afterwards, guests who purchased tickets to the reception will be directed to Tower 12 for dinner. Those who would like to attend may purchase tickets to the reception or make a donation at www.hermosamurals.org. Mayor Massey concluded his announcements by sharing that the city will hold a virtual Budget Workshop and Public Hearing on Tuesday, June 29, 2021 at 6:00 p.m. The 2021- 22 Preliminary Budget (including capital improvements) will be available online on the City’s website at www.hermosabeach.gov once the agenda has been posted on June 24th. He added that if the City Council does not adopt the budget on June 24 th, there will be a second public hearing held on July 13, 2021 at 6:30 p.m. 57 VI. APPROVAL OF AGENDA MOTION: Mayor Massey motioned to approve the agenda, with the following change, continue item 13b and have staff bring item 13b before the Planning Commission before bringing the item back to Council, seconded by Councilmember Jackson. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None VII. PROCLAMATIONS/PRESENTATIONS a. COVID-19 HEALTH UPDATE FROM BEACH CITIES HEALTH DISTRICT Jacqueline Sun with Beach Cities Health District provided a presentation on the resent COVID-19 metrics. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) VIII. CITY MANAGER REPORT City Manager Suja Lowenthal began her report by informing that Hermosa Beach has fully reopened in-person services at City Hall and City Facilities as of last week, as the Los Angeles County Department of Public Health and the State Department of Public Health ended most COVID-19 restrictions. She added that the public can still access most city services by phone and online and are encouraged to continue to utilize these convenient options. The appointment system established will continue to be available to schedule in-person meetings with city staff. The appointment system will be re-evaluated as the city navigates reopening. Ms. Lowenthal then provided an update on guidance for face coverings. She shared that the use of masks continues to be required for unvaccinated people in indoor public settings and businesses. These include retail businesses, restaurants, theaters, family entertainment centers, meetings and state and local government offices serving the public. Face coverings aren’t required for fully vaccinated people under the modified order, except in settings where masks are required for everyone, regardless of vaccination status. Businesses can require masks be worn by all people inside their facilities, and the city is continuing to require masks for all members of the public, whether they are vaccinated or not, when they’re inside City Hall and city facilities to protect staff and other members of the public accessing city services. City Manager Lowenthal then announced that the Community Resources Department is 58 now accepting reservations for all indoor facilities for indoor operations and are set to begin July 1, 2021. This includes the Community Center classrooms and gymnasium, the Community Theatre, the 2nd Story Theatre, the South Park classroom, and the Clark Building. She added that the Hermosa Five-O Senior Activity Center will also re-open for regularly scheduled activities beginning Tuesday, July 6, 2021. Ms. Lowenthal then went on to announce the resumption of in-person City Council meetings this Summer. As outlined in the reopening, recovery and resilience plan, Hermosa SHINES, the intent is to continue to take advantage of the technologies and tools we began using during the pandemic to augment our in-person services. Staff is working on being able to continue the use a teleconferencing program so that residents and other participants in Council meetings can provide their input from their homes, offices, or other locations, if needed. This would be in addition to providing in-person comments and input inside the Council chamber. The goal is to increase public access to the meetings, and staff is working on an efficient method for broadcasting online and in-person commentary from the Council chambers. City Manager Lowenthal then reported that in partnership with Los Angeles County Department of Public Health, the City of Hermosa Beach hosted another pop -up COVID- 19 vaccination clinic in Downtown Hermosa Beach this past weekend. The city plans to continue to partner with Public Health as they eval uate their distribution strategies and possibly host additional vaccine opportunities later this summer. Ms. Lowenthal added that everyone age 12 and older in California is eligible for a COVID-19 vaccine. Appointments for vaccines can be made by visiting myturn.ca.gov. But appointments are not required. The consent of a parent or legal guardian may be needed for those between the ages of 12 and 17 to receive a vaccination. Please visit Vaccinate All 58 to learn more about the safe and effective vaccines available. Ms. Lowenthal concluded her report by asking everyone to you continue to take precautions to prevent the spread of COVID-19 and follow public health experts’ advice to keep you and your loved ones safe. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) IX. PUBLIC COMMUNICATIONS/ORAL AND WRITTEN COMMUNICATIONS The following people provided public comment: 1. Angelina Giancana 2. Trent Larson 3. Sarah Harper 4. Joseph Verbrugge 5. Kent Allen 59 6. Dency Nelson 7. Matt McCool 8. Ron Newman 9. Chad Zani (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) X. CITY COUNCIL COMMENTS a. UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) XI. CONSENT CALENDAR Councilmember Armato requested item 11j be pulled from the consent calendar for separate discussion. MOTION: Councilmember Armato moved to approve the balance of the consent calendar, seconded by Councilmember Campbell. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None a. CITY COUNCIL MEETING MINUTES b. CHECK REGISTERS c. MEMORANDUM REGARDING REVENUE REPORT, EXPENDITURE REPORT, COVID-19 REVENUE TRACKING REPORT, AND CIP REPORT BY PROJECT FOR MAY 2021 d. MEMORANDUM REGARDING CITY TREASURER’S REPORT AND CASH BALANCE REPORTFOR MAY 2021 60 e. CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF JUNE 15, 2021 f. ACTION SHEET OF THE PLANNING COMMISSION MEETING OF JUNE 15, 2021 g. PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS h. APPROVE A PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES RELATED TO COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT i. ORDINANCE 21-1431 OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING VARIOUS SECTIONS OF CHAPTER 8.12 OF AND ADDING CHAPTER 8.14 TO THE HERMOSA BEACH MUNICIPAL CODE REGARDING SOLID WASTE j. APPROVAL OF SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE TO PROVIDE FIESTAS HERMOSA k. APPROVAL OF ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SENATE BILL 1) PROJECT LIST FOR THE CITY OF HERMOSA BEACH FOR FISCAL YEAR 2021-22 XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION j. APPROVAL OF SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE TO PROVIDE FIESTAS HERMOSA MOTION: Councilmember Armato moved to approve staff recommendation and direct staff to prepare an agenda item to consider reinstating the Fiesta Hermosa Sub Committee, seconded by Councilmember Campbell. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey 61 NOES: None XIII. PUBLIC HEARINGS – TO COMMENCE AT 6:30 P.M. a. ORDINANCE AMENDING CHAPTER 8.60 OF THE HERMOSA BEACH MUNICIPAL CODE TO COMPLY WITH THE DEPARTMENT OF WATER RESOURCES’ MODEL WATER EFFICIENT LANDSCAPE ORDINANCE MOTION: Councilmember Campbell moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None b. ORDINANCE TO REGULATE OUTDOOR LIGHTING Item was continued to a future Council meeting date yet to be determined. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) XIV. MUNICIPAL MATTERS a. PARTICIPATION IN BEACH CITIES TRANSIT (BCT) LINE 109 AGREEMENT, WITH NO REQUIRED FINANCIAL CONTRIBUTION FROM THE CITY FOR FISCAL YEAR 2021-2022, WITH THE CITIES OF EL SEGUNDO, MANHATTAN BEACH AND REDONDO BEACH, FUNDED FROM PROPOSITION A FUNDS MOTION: Mayor Pro Tem Detoy moved to approve staff recommendation, seconded by Councilmember Jackson. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None b. FRIENDS OF THE LIBRARY RELOCATION AND LEASE AGREEMENT 62 The following person provided public comment: 1. Jessica Accamando MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Jackson. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None c. STATUS UPDATE AND DISCUSSION OF OPTIONS FOR TEMPORARY EXPANDED OUTDOOR DINING AND RETAIL AND TEMPORARY LANE RECONFIGURATIONS IMPLEMENTED TO HELP BUSINESSES DURING THE COVID-19 PANDEMIC The following people provided public comment: 1. Jon David 2. Laura Pina 3. David Grethen 4. Ed Hart 5. Jessica Accamando 6. Frank Hallstein 7. Matt McCool 8. Sandy Saemann MOTION: Councilmember Campbell moved to extend the outdoor dining and retail pilot program through 2021 and bring back an extended urgency ordinance as necessary to continue the program. Continue the lane reconfigurations in the downtown district on Pier Avenue and Hermosa Avenue though 2021. Begin reapplication and renewal process for businesses to continue th e use of outdoor seating and retail areas. Bring back plan for Council consideration regarding encroachment permit fee's and appropriate $3,000 from the Capital Improvement Fund for traffic counts of the downtown lane reconfigurations. And staff is to continue to assess the future extension of the pilot program after end of the year, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey 63 NOES: None MOTION TO EXTEND MEETING: Councilmember Armato moved to extend the City Council meeting to midnight, seconded by Mayor Pro Tem Detoy. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None d. AWARD OF CONSTRUCTION CONTRACT FOR CIP 186 & CIP 190 STREET IMPROVEMENTS VARIOUS LOCATIONS The following person provided public comment: 1. David Grethen MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Mayor Pro Tem Detoy. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None e. AWARD OF CONSTRUCTION CONTRACT FOR CIP 192 ANNUAL STRIPING IMPROVEMENTS AT VARIOUS LOCATIONS MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Jackson. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None f. A LETTER OF SUPPORT FOR THE HERMOSA BEACH CITY SCHOOL DISTRICT’S EFFORTS TO IMPLEMENT ITS EQUITY & INCLUSION GOALS The following people provided public comment: 1. Matt McCool 2. Dency Nelson 64 MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Jackson. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None g. COMMERCIAL EVICTION MORATORIUM AND RESIDENTIAL SUBSTANTIAL REMODEL EVICTION PROTECTIONS MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Campbell. Motion carried by unanimous consent. AYES: Councilmembers Jackson, Campbell, Armato, Mayor Pro Tem Detoy, and Mayor Massey NOES: None (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) XV. FUTURE AGENDA ITEMS a. TENTATIVE FUTURE AGENDA ITEMS No comments were made regarding future agenda items. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. (June 22, 2021 Regular City Council Meeting) ADJOURNMENT Mayor Massey Adjourned the meeting to Tuesday June 29, 2021, at 6:00 p.m. for the Budget Workshop and Public Hearing. The City Council meeting concluded at 11:52 p.m. Eduardo Sarmiento, City Clerk 65 66 Hermosa Beach City Council Adjourned Regular Meeting Minutes Tuesday, October 13, 2020 Closed Session 5:00 P.M Regular Session 6:00 P.M. Virtual Meeting via Zoom City Council Mary Campbell, Mayor Justin Massey, Mayor Pro Tem Stacy Armato, Councilmember Michael Detoy, Councilmember Hany Fangary, Councilmember I. CALL TO ORDER The City Council Regular Meeting of the City of Hermosa Beach met via a virtual meeting held pursuant to Executive Order N-29-20 issued by Governor Gavin Newsom March 17, 2020 on the above date. Meeting was called to order by Mayor Campbell at 6:03 p.m. II. PLEDGE OF ALLEGIANCE The pledge of allegiance was led Mayor Campbell III. ROLL CALL Present: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell Absent: None IV. CLOSED SESSION REPORT City Attorney Michael Jenkins provided his Closed Session report. He stated Closed Session was called to order at 5 p.m. and there were no public comments on the closed session agenda. He added that no items were added to Closed Session, and both Mayor Campbell and Mayor Pro Tem Massey recused themselves from the closed session. There were no reportable actions taken. 67 V. ANNOUNCEMENTS Mayor Campbell began her announcements with a reminder to get your flu vaccination. She added that Hermosa Beach is partnering with Redondo Beach and Beach Cities Health District to offer the flu vaccine in the weeks ahead. Mayor Campbell then announced that voting for the November 2020 Election will be starting early this year and a vote by mail ballot will be provided to every registered voter in the state. Voters will have the option of mailing in their ballot, dropping off their ballot at a Vote by Mail drop box, or casting a ballot in person at one of the various vote centers throughout the County of Los Angeles. Mayor Campbell then announced some upcoming opportunities for up-and-coming artist to show their skills. She shared that for the last ten years the City of Hermosa Beach has called upon its local artist to submit their design for the annual parking permit design competition. All submissions must be submitted no later than October 31, 2020, and more information can be found on the City’s website. Ms. Campbell then announced that the Hermosa Beach Police Department is conducting its first ever Winter holiday greeting card design contest which is open to all Hermosa Beach students. The submission should be a hand drawn picture and needs to include a police officer, something from the beach, and the words Hermosa Beach Police Department or HBPD. All entries must be received by October 30, 2020, and more information can be found on the city website. Mayor Campbell concluded her announcements by stating that as part of the city’s outreach efforts to develop plans for future improvements to the interior of the Clark building the city will be hosting a virtual community forum on Monday October 19, 2020, at 6 p.m. The meeting link and information can be found on the city website. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) VI. APPROVAL OF AGENDA MOTION: Councilmember Armato moved to approve the agenda, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell 68 VII. PROCLAMATIONS / PRESENTATIONS a. RECOGNIZING TARA SCHULER FOR MAKING AND DONATING OVER 200 MASKS TO HERMOSA BEACH RESIDENTS b. COVID-19 HEALTH UPDATE FROM BEACH CITIES HEALTH DISTRICT (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) VIII. CITY MANAGER REPORTS City Manager Lowenthal announced that the state and county approved the reopening of outdoor play structures, fitness stations, and beach swings throughout the city. She thanked the Public Works Department and other members of City Staff for their hard work in getting everything prepared for the reopening. She also thanked all residents for following the public health protocols to keep children safe while at the playground. Ms. Lowenthal then provided a reminder that playground protocols require face coverings to be worn for everyone over the age of two. Children and adults are required to sanitize their hands before and after using the play structure and maintain at least 6 feet of physical distance from nonhouseholder members. City Manager Lowenthal then requested all community members to continue to follow local ordinances during the pandemic. She shared that several members of the community have reported seeing more dogs on the beach in the past few months and reminded pet owners that dogs are not allowed on the beach at any time. She added that there are dog-friendly beaches in the region where pets are welcome. She also reminded community members that City ordinances require all dogs to be on a leash when they are not on their own property, and anyone walking dogs to clean up after them. Ms. Lowenthal directed pet owners to the City’s animal control website page and animal licensing and permit website page for more information on City ordinances regarding pets. Ms. Lowenthal then provided an update on the temporary lane reconfiguration and outdoor dining project. She shared that the city has been working with local businesses to help them during the pandemic by creating dining decks on our streets, Pier Plaza, sidewalks, and parking lots. Part of this effort includes a Temporary Lane Reconfiguration Project on Hermosa and Pier Avenues to help facilitate the expansion of businesses into the public right of way. This project will provide additional options to businesses that have had indoor activities limited due to emergency health orders. 69 City Manager Lowenthal then provided a reminder that Thursday October 15, 2020 is the Great Shakeout earthquake drill. She added that this annual exercise will be a little different this year because so many people are working from home. She asked everyone to please practice with your family what to do during an earthquake. She emphasized that while the ground is shaking, remember to: DROP to the ground, take COVER under a sturdy table or desk, and HOLD ON to a leg of the table to prevent the table from moving. Ms. Lowenthal moved on to announce the city’s plan for the upcoming holiday season, beginning with Halloween. She reminded the community that this year will be different because of the pandemic. City staff have been hard at work with developing alternatives for celebrating the season and reminded the community that we must celebrate safely to prevent the spread of COVID-19. She added that while many Halloween celebrations involve large gatherings and close contact, the city’s Community Resources Department and several community organizations have come up with some creative and safe ways to celebrate Halloween in Hermosa. She then directed the community to visit the city website for a list of these activities. City Manager Lowenthal concluded her report by sharing how Hermosa Beach has developed a special honor for Veterans Day. With the pandemic preventing the traditional ceremony at the Veterans Memorial, the city is hosting a Veterans Are Timeless Campaign. She invited veterans and their friends or family to submit information about Hermosa Beach war veterans on the Veterans Day webpage on the city website by October 25, 2020. The city will share the submissions on the Community Resources Department's social media channels, on the Veterans Day page on the city website beginning November 1, 2020, and on the local access channels from November 1, 2020, to November 11, 2020. She added that on Veterans Day, which is November 11, 2020, the names of each veteran submitted will be showcased near the Veterans Memorial located on the east lawn of the Hermosa Beach Community Center from 11 a.m. to 4 p.m. She encouraged everyone to please stop by to honor the veterans. IX. PUBLIC COMMUNICATIONS/ORAL AND WRITTEN COMMUNICATIONS The following people provided public comment: 1. Trent Larson 2. Bill Brand 3. Cheryl Main 4. Kent Allen 5. David Grethen 6. Barbara Ellman 70 7. Brad Feld 8. Gary Clark (Comments Read aloud by City Clerk Sarmiento) MOTION: Mayor Pro Tem Massey moved to receive and file, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell ABSENT: None X. CITY COUNCIL COMMENTS a. UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES (Complete audio and video is available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) XI. CONSENT CALENDAR Councilmember Detoy noted that he was not present during the September 22, 2020 meeting and will not be voting on consent calendar item 11a City Council Meeting Minutes. MOTION: Mayor Pro Tem Massey moved to approve the consent calendar, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None a. CITY COUNCIL MEETING MINUTES MOTION: Mayor Pro Tem Massey moved to approve the consent calendar, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Armato, Fangary, Mayor Pro Tem Massey, and Mayor Campbell 71 NOES: None RECUSED: Councilmember Detoy (Was not present at the September 22, 2020 City Council meeting. b. CHECK REGISTER c. REVENUE REPORT, EXPENDITURE REPORT, AND CIP REPORT BY PROJECT FOR JUNE, JULY AND AUGUST 2020 d. CITY TREASURER’S REPORT AND CASH BALANCE REPORT FOR JULY 2020 AND AUGUST 2020 e. REAPPROPRIATION OF FUNDS FROM FY 2019-20 TO FY 2020-21 AND REVENUE REVISIONS f. ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETINGS OF AUGUST 4, 2020 AND SEPTEMBER 1, 2020 g. LOS ANGELES COUNTY FIRE DEPARTMENT AND MCCORMICK AMBULANCE MONTHLY REPORT XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION None XIII. PUBLIC HEARINGS – TO COMMENCE AT 6:30 P.M. a. HOLD THE PUBLIC HEARING, TABULATE THE BALLOTS AND IF SUFFICIENT BALLOTS ARE RECEIVED, CONSIDER APPROVING THE FINAL ENGINEER’S REPORT AND CREATING THE GREENWICH VILLAGE NORTH UNDERGROUND UTILITIES ASSESSMENT DISTRICT The following people provided public comment: 1. Marty McSorley 2. Peter Biche 3. Linda Biche 4. Pat Murry 5. Melissa Draper 72 6. Brad Feld 7. Vicky Patman 8. Jim Anderson 9. Kelly Kahl 10. Nancy Schwappach 11. Scott Henry 12. Dean Haulette 13. Bill Ready 14. Eric Cusinda 15. Brain Johnson 16. Scott Friedman 17. Zack Warren 18. Wendy Warren 19. Lynne Gilbert 20. Shannon Aikman 21. Frank (last name not audible) 22. Leanne McSorley 23. Patrick Patman Mayor Campbell closed the Public Hearing, and the ballot tabulation began. After the conclusion of the ballot tabulation City Clerk Sarmiento provided the results. Greenwich Village Undergrounding Project ballot results: AYES: Unweighted 67.44%, weighted 65.28% NOES: Unweighted 32.56, weighted 34.72% Mayor Campbell announced that it is close to 10:30 p.m. and asked the Council to provide a motion to extend the meeting. MOTION TO EXTEND THE MEETING: Mayor Pro Tem Massey motioned to extend the City Council meeting to midnight, seconded by Councilmember Armato. Motion was approved by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None The City Council then proceeded to deliberate on Public Hearing item 13a. 73 MOTION: Mayor Pro Tem Massey moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None Mayor Campbell surveyed the City Council to determine if a short recess is desired. The City Council unanimously voted to recess for ten minutes. City Council recessed at 10:30 p.m. Mayor Campbell reconvened the City Council meeting at 10:40 p.m. (Complete audio and video is available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) b. UPDATE ON IMPLEMENTATION OF TEMPORARY BAN OF DOCKLESS SCOOTER AND BIKESHARE IN HERMOSA BEACH The following people provided public comment: 1. Steve Collins MOTION: Councilmember Armato moved to approve staff recommendation with the modification of removing the sunset clause 10.44.060, seconded by Councilmember Detoy. Motion carried by majority consent. AYES: Councilmembers Armato, Detoy, Fangary, and Mayor Campbell NOES: Mayor Pro Tem Massey XIV. MUNICIPAL MATTERS a. RECEIVE REPORT ON EMERGENCY ENFORCEMENT MEASURES TO ENSURE (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) b. APPROVE RESPONSE TO GRAND JURY REPORT ENTITLED “A DIET FOR LANDFILLS: CUTTING DOWN ON FOOD WASTE MOTION: Councilmember Detoy moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by unanimous consent. 74 AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None c. REQUEST FOR APPROVAL TO UNFREEZE THE DEPUTY CITY MANAGER POSITION AS APPROVED IN THE 2020-2021 BUDGET AND FREEZE THE VACANT ASSISTANT TO THE CITY MANAGER POSITION MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None Mayor Campbell requested a motion from Councilmembers to extend the meeting once more to conclude any pending items on the agenda. MOTION TO EXTEND MEETING: Councilmember Armato motioned to extend the City Council meeting to 12:30 a.m., seconded by Mayor Pro Tem Massey. Motion was approved by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None Councilmember Fangary recused himself from Municipal Matter 14d and logged off of the Zoom meeting until the item is concluded. d. ESTABLISHMENT OF A POLICY FOR THE SELECTION OF THE CITY’S MAYOR AND MAYOR PRO TEMPORE (Continued from meeting of September 22, 2020) MOTION: Mayor Pro Tem Massey moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Mayor Pro Tem Massey, and Mayor Campbell NOES: None 75 RECUSED: Councilmember Fangary Councilmember Fangary returned to the meeting at the conclusion of item 14d. e. VACANCIES-BOARDS AND COMMISSIONS PUBLIC WORKS COMMISSION TERM EXPIRATIONS SCHEDULE APPLICANT INTERVIEWS MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None f. CONSIDERATION OF ENDORSING MAYOR PRO TEM JUSTIN MASSEY TO FILL THE WEST CITIES SECTOR SEAT ON THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT GOVERNING BOARD MOTION: Mayor Pro Tem Massey moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by majority consent. AYES: Councilmembers Armato, Detoy, Mayor Pro Tem Massey, and Mayor Campbell NOES: Councilmember Fangary (Complete audio and video is available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-13-20 Regular City Council Meeting) XV. FUTURE AGENDA ITEMS a. IN LIGHT OF THE COURT’S ORDER GRANTING CROSSFIT GYM’S WRIT OF MANDATE, COUNCILMEMBER FANGARY REQUESTS THAT THE CITY COUNCIL PLACE ON THE AGENDA FOR THE NEXT CITY COUNCIL PUBLIC MEETING AN AGENDA ITEM FOR THE CITY COUNCIL TO CONSIDER THE FOLLOWING: 1. POSSIBLE CENSURE OF COUNCILMEMBER ARMATO DUE TO THE FINDINGS INCLUDED IN THE COURT’S RULING THAT (A) “’CONCRETE FACTS’ IN THE RECORD ESTABLISH AN UNACCEPTABLE PROBABILITY THAT ARMATO WAS BIASED AGAINST [CROSSFIT GYM]”; (B) ARMATO’S “STATEMENT THAT HER COMMUNICATIONS WITH RESIDENTS WERE 76 ‘PART OF THE RECORD’ WAS MISLEADING”; AND (C) “ARMATO COMMUNICATED DIRECTLY WITH CODE ENFORCEMENT OFFICIALS . . . CONTRAVENING [HERMOSA BEACH MUNICIPAL CODE] SECTION 2.12.080.” 2. EVALUATE IF THE CITY SHOULD CONTINUE TO PAY ARMATO’S DEFENSE COSTS IN THE CROSSFIT GYM LITIGATION, IN LIGHT OF THE COURT’S RULING. 3. EVALUATE WHETHER THE CITY IS ENTITLED TO REIMBURSEMENT OF THE LEGAL COSTS INCURRED TO DATE IN THE CROSSFIT LITIGATION, IN LIGHT OF THE COURT’S RULING. Councilmember Fangary’s request received no support from any Councilmembers and will not be added to a future agenda. b. TENTATIVE FUTURE AGENDA ITEMS City Councilmembers had no comments regarding the tentative future agenda items. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: 10-13-20 Regular City Council Meeting) ADJOURNMENT Mayor Campbell adjourned the City Council meeting to Monday October 19, 2020 at 6:00 p.m. for a Community forum. The next regular City Council meeting is Tuesday October 27, 2020 at 5:00 p.m. for Closed Session followed by Regular Session at 6:00 p.m. The City Council meeting concluded at 12:28 a.m. Eduardo Sarmiento, City Clerk 77 Hermosa Beach City Council Adjourned Regular Meeting Minutes (Clark Renovation Community Forum) Tuesday, October 19, 2020 Regular Session 6:00 P.M. Virtual Meeting via Zoom I. Welcome and Introduction The City Council Regular Meeting of the City of Hermosa Beach met via a virtual meeting held pursuant to Executive Order N-29-20 issued by Governor Gavin Newsom March 17, 2020 on the above date. The Community meeting began at 6:00 p.m. Community Resources Director Kelly Orta began the meeting by providing some opening remarks and provided an overview of the agenda and went over some housekeeping items before proceeding. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-19-21 Adjourned Regular Meeting (Community Forum). City Staff: 1. Lucho Rodriquez – Public Works 2. Jonathan Pascual – Public Works 3. Kambria Vint – Community Resources 4. Kelly Orta – Community Resources Director Park, Recreation and Community Resources Advisory Commission Sub- Committee: 1. Lauren Pizer Mains, Chairperson 2. Barbara Ellman, Vice Chair Public Works Commission Sub-Committee: 1. Kathy Dunbabin The Albert Group Architects (TAG) 1. Todd Albert 78 2. Brittany Edwards 3. Steve Albert II. Clark Facility and Project Inforamtion Community Resources Director Orta provided a general overview of the project and elaborated on the scope of work for the Clark Building Capital Improvement Project. She touched on ADA needs of the building, renovation and remodel needs, and temperature and sound control features of the project. She then provided more detail on some of the main components of the project like accessibility upgrades and project design timeline. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-19-21 Adjourned Regular Meeting (Community Forum). III. Discussion of Survey Results Community Resources Director Orta then transitioned to the confidential survey that was given to community members to provide feedback on the project. She shared that over 120 responses were received, and she then provided a summary of the results from the survey questions with community forum participants. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-19-21 Adjourned Regular Meeting (Community Forum). IV. Community Discussion Due to the amount of participants Community Resources Director Orta determined that a large discussion would be better than splitting up into two small groups. The group first focused on facility use options for residents who live within a two-block radius of the Clark Building, followed by open forum for the exchange for community members desires, thoughts on types of uses for the facility, and questions. The following members of the public provided comments: 1. Tom Wells 2. Kathline Dancer 3. Diane Luis 4. Nancy Lock 5. Jackie Flaherty 79 Community Resources Director Orta asked participants and attendees to provide thoughts on the use of the fireplace and kitchen. A few of the attendee’s provided feedback related to the fireplace and kitchen uses. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-19-21 Adjourned Regular Meeting (Community Forum). VI. Final Thoughts Community Resources Director Orta thanked staff and all participants for attending the community forum and providing vital feedback related to the Clark Building project. (Complete audio and video is available upon request at the City Clerk’s office or can be accessed by clicking the following link: 10-19-21 Adjourned Regular Meeting (Community Forum). VII. Adjournment Community Resource Direct Orta concluded the meeting at 7:05 p.m. Eduardo Sarmiento, City Clerk 80 Hermosa Beach City Council Adjourned Regular Meeting Minutes Tuesday, October 27, 2020 Closed Session 5:00 P.M Regular Session 6:00 P.M. Virtual Meeting via Zoom City Council Mary Campbell, Mayor Justin Massey, Mayor Pro Tem Stacy Armato, Councilmember Michael Detoy, Councilmember Hany Fangary, Councilmember I. CALL TO ORDER The City Council Regular Meeting of the City of Hermosa Beach met via a virtual meeting held pursuant to Executive Order N-29-20 issued by Governor Gavin Newsom March 17, 2020 on the above date. Meeting was called to order by Mayor Campbell at 6:03 p.m. II. PLEDGE OF ALLEGIANCE The pledge of allegiance was led Mayor Campbell III. ROLL CALL Present: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell Absent: None IV. CLOSED SESSION REPORT Closed Session was canceled. V. ANNOUNCEMENTS Mayor Campbell provided a reminder of the importance of voting and the many voting 81 options available for community members, including the drop box located in front of City Hall at 1315 Valley Drive. She added that it is not too late to register to vote and encouraged new and current voters to visit lavote.net for more information. Mayor Campbell then reminded all community member of the importance of getting a flu vaccination to help first responders by keeping hospitalization numbers down . Mayor Campbell concluded her announcements by sharing the deadlines for the Police Department’s 1st annual holiday greeting card art contest, and the 11th annual Parking Permit design contest. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-27-21 Regular City Council Meeting VI. APPROVAL OF AGENDA MOTION: Councilmember Armato moved to approve the agenda, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None VII. PROCLAMATIONS / PRESENTATIONS a. COVID-19 HEALTH UPDATE FROM BEACH CITIES HEALTH DISTRICT (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-27-21 Regular City Council Meeting) VIII. CITY MANAGER REPORTS City Manager Lowenthal began her report with a reminder that as the holiday season begins, starting with Halloween on Saturday, please follow the public health experts’ guidelines and continue to be vigilant to help in slowing the spread of COVID-19. Public health experts are recommending not to participate in door-to-door trick-or-treating this year because of COVID-19. She added that protocols for Celebrating Halloween don’t allow any Halloween gatherings, events, haunted house attractions or parties with non- household members. Ms. Lowenthal shared that the Community Resources Department and several community organizations have come up with a list of creative and safe activities to celebrate Halloween in Hermosa Beach. These include an online Pumpkin Carving Contest and a Drive-By Costume Reveal with the City’s mascot Sunny. 82 City Manager Lowenthal shifted to provide information on the annual Veterans Day Commemoration. She shared that this year the Candlelight Ceremony will not be taking place because of the COVID-19 restrictions on gatherings. She stated that although the City cannot conduct its traditional ceremony, the city is hosting the Veterans Are Timeless Campaign this year and encouraging the community to stop by the Veterans Memorial located on the Hermosa Beach Community Center's East Lawn to give thanks to veterans-on-Veterans Day, Wednesday, November 11, 2020 from 11:00 a.m. to sundown. She added that in addition to a special showcase of “stars” featuring veterans whose names were submitted to the City’s Veterans Are Timeless Campaign, there will be other special additions to the site and an opportunity to submit letters to veterans to express the community’s gratitude and support. She asked all attendees to wear a mask and maintain social distancing while visiting the Veterans Memorial. City Manager Lowenthal concluded her report by reminding all community members to please follow public health protocols as additional sectors of the community reopen and when visiting local businesses, including wearing face coverings over your nose and mouth. This will help us reduce the spread of COVID-19 as we head into the holiday season. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-27-21 Regular City Council Meeting) IX. PUBLIC COMMUNICATIONS/ORAL AND WRITTEN COMMUNICATIONS The following people provided public comment: 1) Sarah Harper 2) Dency Nelson 3) Nicole Burke 4) Rick Koenig 5) Matt McCool X. CITY COUNCIL COMMENTS a. UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-27-21 Regular City Council Meeting) XI. CONSENT CALENDAR Mayor Campbell asked for item 11k to be pulled from the consent calendar for separate 83 discussion. MOTION: Councilmember Armato moved to approve the balance of the consent calendar, seconded by Mayor Pro Tem Massey. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None a. CITY COUNCIL MEETING MINUTES b. CHECK REGISTERS c. REVENUE REPORT, EXPENDITURE REPORT, COVID-19 REVENUE TRACKING REPORT, AND CIP REPORT BY PROJECT FOR SEPTEMBER 2020 d. CITY TREASURER’S REPORT AND CASH BALANCE REPORT e. CANCELLATION OF CERTAIN CHECKS f. CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF OCTOBER 19, 2020 g. PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS h. ACTION SHEET OF THE PLANNING COMMISSION MEETING OF OCTOBER 20, 2020 i. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH HAYER CONSULTANTS, INC. TO PROVIDE PLAN CHECK AND RELATED SERVICES TO THE COMMUNITY DEVELOPMENT DEPARTMENT j. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF REDONDO BEACH, THE CITY OF HERMOSA BEACH, THE CITY OF MANHATTAN BEACH, THE CITY OF TORRANCE, AND THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT REGARDING THE ADMINISTRATION AND COST SHARING FOR UPDATING THE ENHANCED WATERSHED MANAGEMENT PROGRAM AND REASONABLE ASSURANCE ANALYSIS 84 FOR THE BEACH CITIES WATERSHED MANAGEMENT GROUP k. SECOND AMENDMENT TO THE CONTRACT FOR THE PARKING LOT D IMPROVEMENTS PROJECT (CIP NO. 682) BETWEEN THE CITY OF HERMOSA BEACH AND ADAMS STREETER ENGINEERING l. APPROVAL OF THE COMMENCEMENT OF SPECIAL EVENT LONG-TERM AGREEMENT NEGOTIATIONS WITH BEST DAY FOUNDATION FOR “BEACH DAY” SOUTH OF THE PIER; THE ARTS GROUP OF HERMOSA BEACH’S “FINE ARTS FESTIVAL” ON THE COMMUNITY CENTER LAWN; AND SHAKESPEARE BY THE SEA’S LIVE PERFORMANCES AT VALLEY PARK; AND APPROVAL TO EXTEND THE SPECIAL EVENT LONG-TERM AGREEMENT POLICY PILOT PROGRAM BY ONE YEAR DUE TO EVENT CANCELATIONS IN 2020 AS A RESULT OF COVID-19 XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION k. SECOND AMENDMENT TO THE CONTRACT FOR THE PARKING LOT D IMPROVEMENTS PROJECT (CIP NO. 682) BETWEEN THE CITY OF HERMOSA BEACH AND ADAMS STREETER ENGINEERING The following person provided public comment: 1. David Grethen MOTION: Councilmember Fangary moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None XIII. PUBLIC HEARINGS – TO COMMENCE AT 6:30 P.M. None XIV. MUNICIPAL MATTERS 85 a. RECEIVE REPORT ON EMERGENCY ENFORCEMENT MEASURES TO ENSURE COMPLIANCE WITH PANDEMIC-RELATED HEALTH ORDERS FROM BOTH THE CITY AND THE COUNTY OF LOS ANGELES HEALTH DEPARTMENT The following person provided public comment: 1. Laura Pina MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Mayor Pro Tem Massey. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None b. NORTH SCHOOL NEIGHBORHOOD TRANSPORTATION MANAGEMENT PROGRAM The following person provided public comment: 1. Glen Menard MOTION: Mayor Pro Tem Massey moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by majority consent. AYES: Councilmembers Armato, Detoy, Mayor Pro Tem Massey, and Mayor Campbell NOES: Councilmember Fangary c. CONSIDERATION OF A HOLIDAY FREE PARKING PROGRAM The following people provided public comment: 1. Lori Ford 2. Dency Nelson MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Mayor Campbell. Motion carried by majority consent. AYES: Councilmembers Armato, Detoy, Fangary, and Mayor Campbell NOES: Mayor Pro Tem Massey 86 d. APPROVAL OF AGREEMENT WITH THE HERMOSA BEACH KIWANIS CLUB FOR THE HOLIDAY TREE LOT ON THE COMMUNITY CENTER’S EAST LAWN FOR A THREE-YEAR TERM The following people provided public comment: 1. George Barks 2. Michael Bell 3. Cathy McCurdy 4. Glenn Menard MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Detoy. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None e. AWARD OF CONSTRUCTION CONTRACT FOR THE DOWNTOWN HERMOSA BEACH TEMPORARY LANE RECONFIGURATIONS PROJECT #20011 The following people provided public comment: 1. Lori Ford 2. Laura Pina MOTION: Councilmember Detoy moved to approve staff recommendation, seconded by Mayor Pro Tem Massey. Motion carried by unanimous consent. AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None f. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH MILLER PLANNING ASSOCIATES TO PREPARE THE UPDATE TO THE SUBDIVISION (“TITLE 16”) AND ZONING (“TITLE 17”) ORDINANCES OF THE HERMOSA BEACH MUNICIPAL CODE MOTION: Councilmember Armato moved to approve staff recommendation, seconded by Councilmember Detoy. Motion carried by unanimous consent. 87 AYES: Councilmembers Armato, Detoy, Fangary, Mayor Pro Tem Massey, and Mayor Campbell NOES: None g. AWARD OF PROFESSIONAL SERVICES AGREEMENTS TO PROVIDE ON- CALL ENGINEERING DESIGN SERVICES FOR UTILITIES (SEWER, STORM DRAIN) MOTION: Mayor Pro Tem Massey moved to approve staff recommendation, seconded by Councilmember Armato. Motion carried by majority consent. AYES: Councilmembers Armato, Detoy, Mayor Pro Tem Massey, and Mayor Campbell NOES: Councilmember Fangary (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link. 10-27-21 Regular City Council Meeting) XV. FUTURE AGENDA ITEMS a. TENTATIVE FUTURE AGENDA ITEMS No comments from Councilmembers. ADJOURNMENT Mayor Campbell adjourned the City Council meeting to Tuesday November 10, 2020 at 4:15 p.m. for the Public Works Commission Applicant Interviews, followed by Closed Session at 5:00 p.m. and Regular City Council Meeting at 6:00 p.m . The City Council meeting concluded at 10:16 p.m. Eduardo Sarmiento, City Clerk 88 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0412 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 CHECK REGISTERS (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council ratify the following check registers. Attachments: 1.Check Register 6/10/2021 2.Check Register 6/17/2021 3.Check Register 6/28/2021 Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™89 06/10/2021 Check Register CITY OF HERMOSA BEACH 1 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97533 6/10/2021 ACCELA INC INV-ACC53979 UPGRADE/PROG PMTS 22 & 23/MAY2105817 715-4201-4201 3,626.66 Total : 3,626.6605817 97534 6/10/2021 ACCESS, INC.1007 ADA COMPLY/CONSTRUCT INSPECT/MAY2121696 301-8602-4201 7,030.00 Total : 7,030.0021696 97535 6/10/2021 AQUA FLO SI1737639 MAT REQ 586584/IRRIGATION SUPPLIES09366 001-6101-4309 317.26 Total : 317.2609366 97536 6/10/2021 AT&T 000016469747 PD COMPUTER CIRCUITS 4/13-5/12/2100321 001-2101-4304 139.06 Total : 139.0600321 97537 6/10/2021 AT&T MOBILITY 287298411168X0510202 PD/CSO/CELLS/TRUNK MODEMS/APR2113361 001-2101-4304 511.08 001-3302-4304 170.36 Total : 681.4413361 97538 6/10/2021 ATHENS SERVICES 10449676 SWEEPING/PORTER/MAY2116660 001-3104-4201 16,353.92 001-3301-4201 10,898.50 001-3304-4201 1,501.69 001-6101-4201 1,601.23 STEAM CLEANING/MAY2110449676A 001-3301-4201 6,293.90 001-3304-4201 1,481.11 SCRUBBER/MAY2110449676B 001-3301-4201 6,882.70 001-3304-4201 764.74 Total : 45,777.7916660 97539 6/10/2021 BEACH GIRL PROPERTIES LLC 266 PARKING METERS - 70 14TH STREET/JUN2116371 001-6871 650.00 Total : 650.0016371 97540 6/10/2021 CALIFORNIA MARKING DEVICE 6774/Mat Req 479073 NAMEPLATES AND NAMETAGS/JACKSON00262 2b (1)90 06/10/2021 Check Register CITY OF HERMOSA BEACH 2 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97540 6/10/2021 (Continued)CALIFORNIA MARKING DEVICE00262 001-1101-4305 79.94 Total : 79.9400262 97541 6/10/2021 CANON BUSINESS SOLUTIONS, INC 4036299211 PW ADMIN COPIER USAGE/FEB21-MAY2110838 715-1208-4201 100.22 Total : 100.2210838 97542 6/10/2021 CARAHSOFT TECHNOLOGY CORP IN967791 SKETCHUP PRO ANNUAL SUBSCRIPTION22201 715-4202-4201 292.50 Total : 292.5022201 97543 6/10/2021 CDWG D496148 MAT REQ 791339/JAIL PRINTER TONER09632 001-2101-4306 690.32 Total : 690.3209632 97544 6/10/2021 CERVANTES, GINA Receipt 20026687.003 CAMP WITHDRAWAL REFUND22333 001-2111 389.50 Total : 389.5022333 97545 6/10/2021 CHARM-TEX, INC.0250617-IN JAIL SUPPLIES/ASPIRIN19277 001-2101-4306 9.90 Total : 9.9019277 97546 6/10/2021 COAR, CELESTE Parcel 4183-023-009 STREET LIGHT & SEWER TEX REBATE10614 001-6871 126.60 105-3105 24.61 Total : 151.2110614 97547 6/10/2021 COMPLETES PLUS 01AX5514 - 010AY9332 VEHICLE MAINT/REPAIR PARTS/MAY2109436 715-2101-4311 196.39 715-3302-4311 92.62 715-4204-4311 96.58 715-6101-4311 276.86 Total : 662.4509436 97548 6/10/2021 COYLE, KELSEY Receipt 2002683.003 CLASS 9399 WITHDRAWAL REFUND22331 001-2111 51.00 CLASS 9340 WITHDRAWAL REFUNDReceipt 2002685.003 001-2111 78.50 91 06/10/2021 Check Register CITY OF HERMOSA BEACH 3 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 129.50 97548 6/10/2021 COYLE, KELSEY22331 97549 6/10/2021 CRECY, STEVEN PO 36231 REIMB/VETERANS MEMORIAL FLAGS14752 001-2120 160.31 001-2120 15.23 Total : 175.5414752 97550 6/10/2021 CRYSTAL LIGHTING CORP 16031 STRAND & 11TH/STREET LIGHT POLE18401 105-2601-4201 785.00 105-2601-4201 74.58 Total : 859.5818401 97551 6/10/2021 DUDEK 202103154 YARD REMEDIATION/APR2120611 001-8615-4201 843.75 Total : 843.7520611 97552 6/10/2021 EMERGENCY RESPONSE CRIME SCENE T2021-277 JAIL CELL 5/BIOHAZARD WASTE REMOVAL16922 001-2101-4201 750.00 Total : 750.0016922 97553 6/10/2021 EVERETT, BRADI Receipt 2002684.003 CLASS 9316 WITHDRAWAL REFUND22332 001-2111 170.00 Total : 170.0022332 97554 6/10/2021 FASOLA, BETH Rcpts 2002680-2.003 SUMMER DAY CAMP REFUND21909 001-2111 540.00 Total : 540.0021909 97555 6/10/2021 FLOYDS 99 BARBERSHOP PO 36222 BUSINESS LICENSE OVERPAYMENT22283 001-3115 399.94 Total : 399.9422283 97556 6/10/2021 HAYER CONSULTANTS INC 4146 PLAN CHECKS/APR2106518 001-4201-4201 19,006.42 Total : 19,006.4206518 97557 6/10/2021 JLEE ENGINEERING, INC.4271 ZONING PLAN CHECKS/APR2121644 001-4101-4201 1,900.00 Total : 1,900.0021644 92 06/10/2021 Check Register CITY OF HERMOSA BEACH 4 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97558 6/10/2021 KELLEHER, JEFF Receipt 2002678.003 CLASS 9310 WITHDRAWAL REFUND21876 001-2111 131.00 Total : 131.0021876 97559 6/10/2021 LA CO POLICE CHIEFS ASSOC TR 854 LEBARON/STRATEGIC PLANNING WORKSHOP02428 001-2101-4317 200.00 Total : 200.0002428 97560 6/10/2021 LIBERTY MFG. INC.344 SHOOTING RANGE QUARTERLY MAINT21550 001-2101-4201 689.65 Total : 689.6521550 97561 6/10/2021 MARCELO, BENJIE PO 36245 2 PARKING PERMITS/REFUND22302 001-3843 80.00 Total : 80.0022302 97562 6/10/2021 MOTWANE, AMAN Parcel 4184-008-010 STREET LIGHT TAX REBATE18634 105-3105 24.61 Total : 24.6118634 97563 6/10/2021 OAKES, BELINDA Receipt 2002677.003 CLASSES 9311/9316 WITHDRAWAL REFUND21891 001-2111 355.00 Total : 355.0021891 97564 6/10/2021 PROVIDENCE MEDICAL Guarantor ID 1010127 MAT REQ 791394/SART EXAM/APR2101911 001-2101-4201 900.00 Total : 900.0001911 97565 6/10/2021 RED SECURITY GROUP, LLC 61104/Req 854068 BARD ST. GATE REPAIR13255 715-4202-4201 615.00 BARD ST. GATE REPAIR61109/Req 854069 715-4204-4201 480.00 PDK DOOR LOCK SYSTEM REPAIR71115/Req 854070 715-4204-4201 480.00 Total : 1,575.0013255 97566 6/10/2021 REGIONAL TAP SERVICE CENTER 6014137 STUDENT BUS PASS SALES/MAR2120061 145-3403-4251 24.00 Total : 24.0020061 93 06/10/2021 Check Register CITY OF HERMOSA BEACH 5 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97567 6/10/2021 RICE, IRINA Receipt 2002676.003 CLASS 9347 WITHDRAWAL REFUND22335 001-2111 380.00 Total : 380.0022335 97568 6/10/2021 ROUND STAR WEST LLC PO 36249 INSTRUCTOR PAYMENT/CLASSES 9281-216921 001-4601-4221 546.00 Total : 546.0016921 97569 6/10/2021 SMITH, PAIGE Receipt 2002675.003 CLASS 9347 WITHDRAWAL REFUND22334 001-2111 380.00 Total : 380.0022334 97570 6/10/2021 SOUTHERN CALIFORNIA EDISON CO 700296306651 ELECTRICITY/MAY2100159 105-2601-4303 26.50 ELECTRICITY/APR-MAY21/INSTALL PMT 36700382668983 001-3104-4303 40.19 105-2601-4303 2,912.86 001-4204-4303 1,568.47 Total : 4,548.0200159 97571 6/10/2021 SOUTHLAND FIRE ALARM GROUP INC 3149275 YRLY CITY HALL ELEVATOR FIRE ALARM TEST16339 715-4204-4201 975.00 Total : 975.0016339 97572 6/10/2021 SPECTRUM BUSINESS 8448300300046247 CITY HALL CABLE/JUN2120236 715-4204-4201 108.72 PD CABLE/MAY218448300300049969 001-2101-4201 76.15 PW YARD CABLE/JUN218448300300088884 001-4202-4201 145.40 1301 HERMOSA/RCC CONNECTION/JUN218448300300350359 001-2101-4304 149.99 1301 HERMOSA/540 PIER CONNECT/JUN218448300300352413 001-2101-4304 290.56 1301 HERMOSA/540 PIER CONNECT/JUN218448300300402150 001-2101-4304 798.92 Total : 1,569.7420236 97573 6/10/2021 SPICERS PAPER INC 2652889 8.5X11 COPIER PAPER/20 CASES10232 001-2022 -6.69 94 06/10/2021 Check Register CITY OF HERMOSA BEACH 6 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97573 6/10/2021 (Continued)SPICERS PAPER INC10232 001-2021 6.69 001-1208-4305 662.51 001-1208-4305 63.57 8.5X11 COPIER PAPER/20 CASES2654622 001-2022 -6.69 001-2021 6.69 001-1208-4305 662.51 001-1208-4305 63.57 Total : 1,452.1610232 97574 6/10/2021 SPRINT 551834312-233 COMM RES/CELL PHONES/APR2110098 001-4601-4304 161.57 Total : 161.5710098 97575 6/10/2021 SUNWORKS UNITED, INC.29849 COMM CTR SOLAR PANEL MAINT THRU FEB2220245 715-4204-4201 3,722.40 Total : 3,722.4020245 97576 6/10/2021 T-MOBILE Account 946625962 RECORDS/WATCH COMMAND/CELLS/MAY2119082 001-2101-4304 26.96 PD YARD/CELLS/HOT SPOTS/MAY21Account 954297746 001-4202-4304 325.08 Total : 352.0419082 97577 6/10/2021 ULINE 133941103 ZIP TIES/MOP BUCKET14007 001-2101-4305 130.00 001-2101-4306 81.00 001-2101-4305 13.77 001-2101-4306 13.77 001-2101-4305 12.34 001-2101-4306 7.70 Total : 258.5814007 97578 6/10/2021 UNION BANK OF CALIFORNIA, PARS #6746019200PO 35414 PARS/OPEB CONTRIBUTIONS/JUN2114528 001-1101-4190 141.00 001-1121-4190 607.00 001-1201-4190 2,349.00 001-1202-4190 1,908.00 95 06/10/2021 Check Register CITY OF HERMOSA BEACH 7 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97578 6/10/2021 (Continued)UNION BANK OF CALIFORNIA, PARS #674601920014528 001-1203-4190 721.00 001-1204-4190 1,062.00 001-2101-4190 14,819.00 001-3104-4190 995.00 001-3301-4190 100.00 001-3302-4190 3,197.00 001-4101-4190 1,378.00 001-4201-4190 1,414.00 001-4202-4190 2,267.00 001-4204-4190 734.00 001-4601-4190 1,095.00 001-6101-4190 944.00 105-2601-4190 199.00 160-3102-4190 257.00 161-3109-4190 179.00 715-4206-4190 536.00 Total : 34,902.0014528 97579 6/10/2021 UPS 000023R146221 2 SHIPMENTS/MAY2114148 001-2101-4305 19.50 001-3302-4309 16.91 Total : 36.4114148 97580 6/10/2021 WEBIPLEX, INC.3637 E-SUBPOENA SOFTWARE LIC/JUL21-JUN2219249 153-2106-4201 9,280.00 Total : 9,280.0019249 97581 6/10/2021 WEST, YOONSOOK Receipt 2002679.003 CAMP REFUND22336 001-2111 637.00 Total : 637.0022336 97582 6/10/2021 WILLDAN FINANCIAL SERVICES 010-47565 ANNUAL DISCSLOURE/'20 REFUNDING BOND15188 001-1202-4201 1,300.00 Total : 1,300.0015188 97583 6/10/2021 WILLIAMS, ANN Receipt 2002686.003 CLASS 9410 WITHDRAWAL REFUND22330 001-2111 320.00 Total : 320.0022330 96 06/10/2021 Check Register CITY OF HERMOSA BEACH 8 5:06:47PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97584 6/10/2021 YAMADA COMPANY INC.80705 REQ 435026/WATER PUMP RECOIL00315 715-3104-4311 82.36 Total : 82.3600315 21527331 6/1/2021 ADMINSURE AS AGENT FOR THE 6/10/21 Check Run LIABILITY CLAIMS REIMB/APR2114691 705-1209-4324 43,063.96 Total : 43,063.9614691 215115703 5/28/2021 ADMINSURE AS AGENT FOR THE 6/10/21 Check Run WORK COMP CLAIMS REIMB/MAR2114691 705-1217-4324 55,722.95 Total : 55,722.9514691 Bank total : 249,042.43 54 Vouchers for bank code :boa 249,042.43Total vouchers :Vouchers in this report 54 "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 8 inclusive, of the check register for 6/10/21 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 6/10/21 97 06/17/2021 Check Register CITY OF HERMOSA BEACH 1 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97585 6/17/2021 ALTEC INDUSTRIES INC 50730087 LIFT TRUCK MAINTENANCE12143 715-2601-4201 6,701.17 715-2601-4201 371.65 Total : 7,072.8212143 97586 6/17/2021 AMGRAPH GROUP, INC 11196011 MEMORIAL DAY FLAG INSTALL/REMOVE17965 001-1101-4319 2,490.00 Total : 2,490.0017965 97587 6/17/2021 ANHALTZER, MARISA Receipt 2002688.003 SURF CAMP REFUND22347 001-2111 342.50 Total : 342.5022347 97588 6/17/2021 AT&T 960 461-1985 555 7 PD COMPUTER CIRCUITS/JUN2100321 001-2101-4304 237.94 Total : 237.9400321 97589 6/17/2021 AT&T MOBILITY 287298411168X0610202 PD/CSO/CELLS/TRUNK MODEMS/MAY2113361 001-2101-4304 511.08 001-3302-4304 170.36 EMERGENCY MGR/CELL PHONE/MAY21287301168383X0610202 001-1201-4304 49.25 Total : 730.6913361 97590 6/17/2021 ATHENS SERVICES 10501376 PD SHREDDING/2 BINS/JUN2116660 001-2101-4309 45.00 Total : 45.0016660 97591 6/17/2021 BRAUN LINEN SERVICE 1679232 to 1685582 PRISONER LAUNDRY/MAY2100163 001-2101-4306 252.56 Total : 252.5600163 97592 6/17/2021 BULLETPROOF ZONE 20200418 2 BULLETPROOF SHIELDS FOR PATROL22315 153-2106-5401 1,499.94 Total : 1,499.9422315 97593 6/17/2021 CALIFORNIA FENCE AND SUPPLY CO 7690 SOUTH PARK UPPER PATHWAY FENCE03621 301-8603-4201 2,488.00 SOUTH PARK PATHWAY FENCE7691 2b (2)98 06/17/2021 Check Register CITY OF HERMOSA BEACH 2 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97593 6/17/2021 (Continued)CALIFORNIA FENCE AND SUPPLY CO03621 301-8603-4201 1,850.00 Total : 4,338.0003621 97594 6/17/2021 COMMERCIAL BUILDING MANAGEMENT 68123 CITY BLDGS/JANITOR/COVID PORTER/MAY2120627 001-4204-4201 6,861.00 157-2702-4201 3,866.69 Total : 10,727.6920627 97595 6/17/2021 CONSTANT & ASSOCIATES, INC.CA2020_535 EMERGENCY OPERATIONS PLAN/JUL2020462 001-1201-4201 2,955.00 EMERGENCY OPERATIONS PLAN/AUG20CA2020_536 001-1201-4201 3,400.00 EMERGENCY OPERATIONS PLAN/OCT20CA2020_576 001-1201-4201 2,955.00 EMERGENCY OPERATIONS PLAN/NOV20CA2020_586b 001-1201-4201 5,910.00 Total : 15,220.0020462 97596 6/17/2021 CONTINENTAL MAPPING SERVICE 060421 PUBLIC NOTICE PREP/MAIL/JUN2120398 001-4101-4201 1,550.00 Total : 1,550.0020398 97597 6/17/2021 CORTES, VALOIS PO 36256 PARKING LOT PERMIT 42864 REFUND22337 001-3821 31.00 Total : 31.0022337 97598 6/17/2021 COUNTY OF LOS ANGELES C0009857 FACILITY COST/ASBESTOS ABATEMENT20781 301-2202-4251 16,044.00 Total : 16,044.0020781 97599 6/17/2021 CRAFCO, INC.9402480604 ASPHALT HOT BOX ADD-ONS/PARTS/LABOR21601 001-3104-5405 10,450.50 001-3104-5405 891.16 Total : 11,341.6621601 97600 6/17/2021 DEPARTMENT OF JUSTICE 512498 MAT REQ 791343/FINGERPRINTING/MAY2100364 001-2101-4251 194.00 Total : 194.0000364 99 06/17/2021 Check Register CITY OF HERMOSA BEACH 3 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97601 6/17/2021 DUNCAN SOLUTIONS, INC.1004249 CITATION PAYMENT SYSTEM FEES/APR2120668 001-1204-4201 5,171.93 CITATION PAYMENT SYSTEM FEES/MAY211004629 001-1204-4201 4,825.03 Total : 9,996.9620668 97602 6/17/2021 DUONG, THU PHAM Receipt 001-00770078 TIME EXTENSION FEE REFUND22348 001-3883 1,016.00 715-6866 71.00 Total : 1,087.0022348 97603 6/17/2021 EASY READER HD21-021 thru 28 MAT REQ 708590/LEGAL ADS/MAY2100181 001-1121-4323 627.39 Total : 627.3900181 97604 6/17/2021 FAMILY THEATRE INC PO 36228 INSTRUCTOR PMT/CLASSES 9299-9303/941716932 001-4601-4221 7,166.60 Total : 7,166.6016932 97605 6/17/2021 FLOW N CONTROL, INC.205552 PARK STRUCT/STORM WATER PUMP CONTROLS20373 161-3109-4201 9,288.00 161-3109-4201 882.36 Total : 10,170.3620373 97606 6/17/2021 HAJOCA CORPORATION S161494957 to 817085 RESTROOM/FOUNTAIN MAINT/APR21-MAY2113330 001-4204-4309 882.51 Total : 882.5113330 97607 6/17/2021 HB CHAMBER OF COMMERCE 6430 ANNUAL MEMBERSHIP DUES13932 001-2101-4315 75.00 Total : 75.0013932 97608 6/17/2021 INDEPENDENT STATIONERS SI00428438 MAT REQ 791342/CORRECTION TAPE16742 001-2101-4305 18.72 Total : 18.7216742 97609 6/17/2021 INTERWEST CONSULTING GROUP INC 66493 2200 PCH PARKING STUDY21849 001-2143 2,560.00 Total : 2,560.0021849 100 06/17/2021 Check Register CITY OF HERMOSA BEACH 4 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97610 6/17/2021 JLM ENVIRONMENTAL JL22690 710 PIER KITCHEN ASBESTOS PLAN18948 715-4204-4201 550.00 Total : 550.0018948 97611 6/17/2021 JOHN L HUNTER AND ASSOC INC HB1MS412104 STORM WATER PROGRAM ADMIN/APR2105356 161-3109-4201 12,611.25 Total : 12,611.2505356 97612 6/17/2021 LA CO SHERIFFS DEPARTMENT 212206BL MAT REQ 791389/PRISONER MEALS/APR2100151 001-2101-4306 24.80 Total : 24.8000151 97613 6/17/2021 MANIACI INSURANCE SERVICES 944 BENEFITS CONNECT ADMIN/JUN2118312 001-1203-4201 605.88 Total : 605.8818312 97614 6/17/2021 MCA DIRECT 2021048 ELECTION CERTIFICATES00289 001-1121-4251 32.00 001-1121-4251 12.79 Total : 44.7900289 97615 6/17/2021 MILLER PLANNING ASSOCIATES 20007-0521-06 ZONE/SUBDIVIDE ORDINANCE UPDATE/MAY2121660 150-4105-4201 4,981.25 Total : 4,981.2521660 97616 6/17/2021 NEENAH FOUNDRY COMPANY PO 36264 14 SEWER CAPS22329 160-8421-4201 9,803.10 Total : 9,803.1022329 97617 6/17/2021 NETRIX LLC 467519 DATTO SERVER CLOUD LICENSING/JUN2111539 715-1206-4201 1,957.55 IT SUPPORT SERVICES/JUN21767793-7 715-1206-4201 16,096.21 ONSITE TECH/1 ADD'L DAY PER WK/JUN21768333-5 715-1206-4201 2,184.00 REMOTE SUPPORT LICENSING/JUN21768566-5 157-2702-4201 268.00 Total : 20,505.7611539 97618 6/17/2021 OBAGI LAW GROUP PC 1769 LEGAL SERVICES/FANGARY DEPOSITION22340 101 06/17/2021 Check Register CITY OF HERMOSA BEACH 5 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97618 6/17/2021 (Continued)OBAGI LAW GROUP PC22340 705-1133-4324 3,264.00 Total : 3,264.0022340 97619 6/17/2021 RIO HONDO COMMUNITY COLLEGE PO 36190 RUSHTON/FIELD TRAINING OFFICER01070 001-2101-4312 89.00 Total : 89.0001070 97620 6/17/2021 RUSHTON, MATTHEW PO 36241 PER DIEM/FIELD TRAINING OFFICER21542 001-2101-4312 75.00 Total : 75.0021542 97621 6/17/2021 SPARKLETTS 4472788052021 REQ 435258/DRINKING WATER/MAY2100146 001-4601-4305 95.87 Total : 95.8700146 97622 6/17/2021 VERIZON BUSINESS SERVICES 71839124 VOIP PHONES/BARD/APR2118666 001-3302-4304 70.23 VOIP PHONES/BASE 3/APR2171839264 001-3302-4304 109.39 VOIP PHONES/YARD/APR2171839271 001-4202-4201 145.85 VOIP PHONES/EOC OVER GYM/APR2171839276 001-1201-4304 62.27 VOIP PHONES/COMM RES/APR2171839787 001-4601-4304 143.56 Total : 531.3018666 97623 6/17/2021 VILLANUEVA, BRANDY PO 36266 REIMB/7 AIR PURIFIERS FOR OFFICES20204 157-2702-4305 832.23 157-2702-4305 79.03 Total : 911.2620204 97624 6/17/2021 WESTERN GRAPHIX 55186 REQ 791433/EMPLOYEE ID CARDS (4)02873 001-1203-4305 104.51 Total : 104.5102873 97625 6/17/2021 ZUMAR INDUSTRIES INC 93114 MAT REQ 854460/PARK RULES SIGNS01206 001-3104-4309 652.12 MAT REQ 854463/STOP SIGNS93181 102 06/17/2021 Check Register CITY OF HERMOSA BEACH 6 5:22:06PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97625 6/17/2021 (Continued)ZUMAR INDUSTRIES INC01206 001-3104-4309 845.08 MAT REQ 854071/SIGN FOR CITY YARD93233 001-3104-4309 290.52 MAT REQ 854461/STREET NAME SIGNS93301 001-3104-4309 568.62 Total : 2,356.3401206 6172021 6/17/2021 RING BENDER LLP PO 36279 SETTLEMENT22346 705-1133-4324 950,000.00 Total : 950,000.0022346 Bank total : 1,111,256.45 42 Vouchers for bank code :boa 1,111,256.45Total vouchers :Vouchers in this report 42 "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 6 inclusive, of the check register for 6/17/21 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 6/17/21 103 06/28/2021 Check Register CITY OF HERMOSA BEACH 1 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97626 6/28/2021 ADAMS STREETER CIVIL ENGINEERS 195904/Prog Pmt 1 PIER PLAZA LIGHTING SUPPORT/NOV2020825 301-8609-4201 2,174.08 PIER PLAZA LIGHTING DESIGN/JAN21216013/Prog Pmt 2 301-8609-4201 1,945.23 PIER PLAZA LIGHTING DESIGN/APR21216226/Prog Pmt 3 301-8609-4201 2,672.60 HERMOSA AVE ELECTRICAL EVAL/APR21216228/Prog Pmt 4 301-8609-4201 5,573.48 Total : 12,365.3920825 97627 6/28/2021 AMERICAN GUARD SERVICES, INC. INV19935 CROSSING GUARD SERVICES/MAY2120685 001-2102-4201 23,074.80 Total : 23,074.8020685 97628 6/28/2021 BADGE BEHAVIOR PO 36244 STC TRAINING COURSES FOR PSO YAGER17428 001-2101-4313 99.00 Total : 99.0017428 97629 6/28/2021 BARROWS, PATRICK PO 36251 INSTRUCTOR PAYMENT17271 001-4601-4221 9,751.00 Total : 9,751.0017271 97630 6/28/2021 CALIFORNIA MARKING DEVICE 6781/Mat Req 863098 4 STAMPS/2 RECEIVED/2 RESUBMITTAL00262 001-4201-4305 328.50 Total : 328.5000262 97631 6/28/2021 COUNTY OF LOS ANGELES C0009873 (PO 36313) FIRE PROTECTION SERVICES/JUL2120781 001-1550 538,739.14 Total : 538,739.1420781 97632 6/28/2021 DEWEY PEST CONTROL Account 759408 CITY-OWNED BLDGS/PEST CONTROL/JUN2111449 001-4204-4201 849.00 Total : 849.0011449 97633 6/28/2021 DEWEY PEST CONTROL Account 1233239 SEWER RAT ABATEMENT/JUN2111449 160-3102-4201 278.00 Total : 278.0011449 97634 6/28/2021 ESRI 94046702 ARCGIS SOFTWARE MAINT/JUL21-JUN2213075 2b (3)104 06/28/2021 Check Register CITY OF HERMOSA BEACH 2 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97634 6/28/2021 (Continued)ESRI13075 715-1206-4201 9,400.00 Total : 9,400.0013075 97635 6/28/2021 FELSING, RONALD Parcel 4181-02-017 SEWER & STREET LIGHT TAX REBATE19561 001-6871 126.60 105-3105 24.61 Total : 151.2119561 97636 6/28/2021 FRONTIER 310-318-0113 EOC ANALOG LINES/JUN2119884 715-1206-4304 1,284.48 CASHIER TAPS LINE/JUN21310-318-8751 001-1204-4304 57.82 Total : 1,342.3019884 97637 6/28/2021 GARCIA, MARIAH PO 36262 MONTHLY LOT PERMIT 32616 REFUND22338 001-3858 62.00 Total : 62.0022338 97638 6/28/2021 GUERRA, JOHN L Parcel 4186-025-035 CITATION HEARING EXAMINER/MAY2119535 001-6871 126.60 105-3105 24.61 Total : 151.2119535 97639 6/28/2021 HARTZOG & CRABILL, INC.21-0129 ON-CALL TRAFFIC ENGINEERING/MAR2114204 001-3104-4201 3,831.83 ON-CALL TRAFFIC ENGINEERING/APR2121-0189 001-3104-4201 5,004.46 Total : 8,836.2914204 97640 6/28/2021 HOME DEPOT CREDIT SERVICES 5030649 to 5530699 MAINTENANCE SUPPLIES/APR2103432 001-3104-4309 1,341.16 001-4204-4309 207.87 001-6101-4309 517.00 105-2601-4309 214.02 Total : 2,280.0503432 97641 6/28/2021 INDEPENDENT STATIONERS SI00428526 REQ 791342/CALENDAR/CORR TAPE16742 001-2101-4305 6.84 REQ 791344/USB FLASH DRIVES (9)SI00428728 105 06/28/2021 Check Register CITY OF HERMOSA BEACH 3 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97641 6/28/2021 (Continued)INDEPENDENT STATIONERS16742 001-2101-4305 97.17 Total : 104.0116742 97642 6/28/2021 INTERWEST CONSULTING GROUP INC 69586 ON-CALL TRAFFIC ENGINEERING/MAY2121849 001-3104-4201 2,080.00 Total : 2,080.0021849 97643 6/28/2021 JLM ENVIRONMENTAL JL22910 COMM CTR EOC KITCHEN ASBESTOS TEST18948 301-8684-4201 600.00 Total : 600.0018948 97644 6/28/2021 LA SUPERIOR COURT - TORRANCE PO 36252 CITATION PMT SURCHARGES/MAY2100118 001-3302 54,334.20 CITATION PMT SURCHARGES/APR21PO 36253 001-3302 57,102.40 Total : 111,436.6000118 97645 6/28/2021 LANDSCAPE STRUCTURES, INC.INV-099280 VALLEY PARK PLAYGROUND EQUIP PARTS12190 001-6101-4309 264.84 001-6101-4309 22.59 Total : 287.4312190 97646 6/28/2021 LEAGUE OF CALIFORNIA CITIES 58156 PUBLIC WORKS DIRECTOR JOB AD00842 001-1203-4201 300.00 Total : 300.0000842 97647 6/28/2021 LEXIPOL LLC INVLEX1764 POLICY MANUAL/TRAINING BULLETINS/SUBSCRI17861 001-1550 4,427.00 POLICY MANUAL/TRAINING BULLETINS/SUBSCRIINVLEX2164 001-1550 15,552.00 Total : 19,979.0017861 97648 6/28/2021 LONG BEACH BMW MOTORCYCLE 40412 MOTORCYCLE #2/LOW BEAM HEADLIGHT12739 715-2101-4311 60.76 BMW MOTORCYCLE MAINTENANCE40536 715-2101-4311 1,466.93 Total : 1,527.6912739 97649 6/28/2021 MANCUSO, MARY JANE Receipt 2002689.003 CAMP 9387 WITHDRAWAL REFUND21863 106 06/28/2021 Check Register CITY OF HERMOSA BEACH 4 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97649 6/28/2021 (Continued)MANCUSO, MARY JANE21863 001-2111 315.00 Total : 315.0021863 97650 6/28/2021 MERCHANTS LANDSCAPE SERVICES 58121 GREENBELT/PLANT MILKWEEDS18071 001-6101-4309 1,225.00 SOUTH PARK/SLOPE/GRASS SEEDS/TOPPER58122 301-8603-4201 2,751.73 Total : 3,976.7318071 97651 6/28/2021 MIG 0069077-Rev 1 CLIMATE CHANGE CONSULTANT/MAR2118437 150-1201-4201 2,650.00 CLIMATE CHANGE CONSULTANT/APR210069677-Rev 1 150-1201-4201 2,916.26 Total : 5,566.2618437 97652 6/28/2021 MINUTEMAN PRESS 28068 LICATA/JACKSON/BUSINESS CARDS12055 001-1208-4305 169.50 001-1208-4305 16.10 Total : 185.6012055 97653 6/28/2021 NATIONAL CONSTRUCTION RENTALS 6155480 CC PCH & PIER FENCING 5/27-11/26/2116663 001-3104-4309 500.00 Total : 500.0016663 97654 6/28/2021 NETRIX LLC 461350 PC REFRESH I/23 COMPUTERS & MONITORS11539 715-1206-5401 19,294.47 715-1206-5401 1,832.97 Total : 21,127.4411539 97655 6/28/2021 OFFICE DEPOT 169374583001 TIME STAMP MACHINE13114 001-1121-4305 183.51 001-1121-4305 17.43 REQ 863097/FOLDING TABLE/CHAIR173068785001 001-4201-4305 85.59 REQ 791336/DISPOABLE MOPS FOR JAIL174087000002 001-2101-4306 82.88 MAT REQ 791061/OFFICE SUPPLIES174708933001 001-1202-4305 22.97 001-1208-4305 53.89 107 06/28/2021 Check Register CITY OF HERMOSA BEACH 5 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97655 6/28/2021 (Continued)OFFICE DEPOT13114 REQ 854066/YARD/DRY ERASE BOARD175933467001 001-4202-4305 73.90 MAT REQ 854066/YARD/FEBREEZE175935491001 001-4202-4305 5.46 MAT REQ 435260/OFFICE SUPPLIES177223804001 001-4601-4305 88.58 Total : 614.2113114 97656 6/28/2021 PARKHOUSE TIRE INC 1010801247 TIRES FOR BACKHOE22300 715-3109-4201 735.49 Total : 735.4922300 97657 6/28/2021 PARKS COFFEE CALIFORNIA, INC.70061857 COFFEE SERVICE/JUN2122071 001-2101-4305 48.48 001-2101-4306 48.47 Total : 96.9522071 97658 6/28/2021 PARTEK SOLUTIONS INC 25372 PARKING METER PAPER ROLLS14694 001-3302-4309 128.28 PARKING CITATIONS25402 001-3302-4309 1,770.00 Total : 1,898.2814694 97659 6/28/2021 PINEDA, LUIS TR 860 PER DIEM/EMERGENCY VEHICLE OPERATOR20016 001-2101-4312 235.00 Total : 235.0020016 97660 6/28/2021 PITNEY BOWES INC 3104744022 POSTAGE METER RENTAL/APR21-JUN2113838 715-1208-4201 644.19 Total : 644.1913838 97661 6/28/2021 PRUDENTIAL OVERALL SUPPLY 42618870 to 42625131 YARD UNIFORMS, TOWELS, &/OR MATS/MAY2117676 001-2101-4309 66.16 001-3104-4309 48.36 001-3302-4309 59.56 001-4202-4314 350.25 001-4204-4309 116.72 715-4206-4309 39.76 108 06/28/2021 Check Register CITY OF HERMOSA BEACH 6 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 680.81 97661 6/28/2021 PRUDENTIAL OVERALL SUPPLY17676 97662 6/28/2021 QUADRANT SYSTEMS 210508 CASHIERING SOFTWARE SUPPORT 21/2208768 001-1550 2,000.00 Total : 2,000.0008768 97663 6/28/2021 RACE COMMUNICATIONS RC509841 DEDICATED INTERNET SERVICE/JUN2122179 715-1206-4201 1,020.00 Total : 1,020.0022179 97664 6/28/2021 S AND J SALES 13901 UNINTERRUPTIBLE POWER SUPPLY BATTERIES02500 001-2101-4201 3,359.80 Total : 3,359.8002500 97665 6/28/2021 SBCU VISA 01E0034513168 CC DRINKING WATER DELIVERY/MAY2103353 001-2101-4305 442.56 SENIOR CENTER MOVIES/MUSICBill CC 001-4601-4309 9.99 ADD'L CELL PHONE DATA STORAGE/MAY21Doc 17343961507 CC 001-2101-4305 0.99 CONFERENCE LINE/APR21IC30411-0421 CC 001-1201-4304 9.59 VIDEOCONFERENCING/MAY21-MAY22INV84848835 CC 157-2702-4201 4,936.35 MEMBERSHIPMembership CC 001-4601-4315 150.00 EOC SATELLITE PHONE & SERVICEOrder 246987 CC 001-1201-5401 1,582.28 001-1201-4251 57.95 ADD'L DATA CELL PHONE STORAGE/MAY21PO 35313 CC 001-2101-4305 2.99 COMM CTR RAILING/GALVANIZE COATINGPO 36118 CC 001-4204-4309 28.68 001-4204-4309 3.40 BOOKS FOR PLANNINGPO 36180 CC 001-4101-4317 139.11 ZUBER/ALCOHOL BEV CONTROL TRAININGPO 36187 CC 001-2101-4317 60.00 LIGHT BRACKET FOR POLICE JEEPPO 36206 CC 109 06/28/2021 Check Register CITY OF HERMOSA BEACH 7 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97665 6/28/2021 (Continued)SBCU VISA03353 715-2101-4311 146.68 MATEKO/500 BUSINESS CARDSPO 36209 CC 001-2101-4305 36.51 STAMPS AND CABINET LABELSPO 36213 CC 001-1203-4305 83.05 PAINT WASTE DRUMSPO 36226 CC 001-3104-4309 800.86 001-3104-4309 49.88 ADD'L USER LICENSE THRU NOV21PO 36238 CC 001-2101-4201 132.16 2 UTILITY CARTS FOR PLANSPO 36257 CC 001-4201-4305 44.89 001-4101-4305 44.89 001-4201-4305 4.27 001-4101-4305 4.26 NAT'L POLICE WEEK/COFFEE FOR STAFFPO 36305 CC 001-1203-4201 39.90 NAT'L POLICE WK/STAFF LUNCHPO 36308 CC 001-1203-4201 197.10 001-1203-4201 15.60 NAT'L PUBLIC WORKS WK/STAFF LUNCHPO 36309 CC 001-1203-4201 292.77 001-1203-4201 27.81 001-1203-4201 39.41 SBCCOG CHAIRPERSON VALENTINE/PLAQUEReceipt 26210 CC 001-1101-4305 10.00 USE OF FORCE LUNCH MEET W/ATTORNEYReceipt CC 001-2101-4305 96.51 SUBSCRIPTION/MAY21Subscription CC 001-4101-4315 0.99 ALKADIS/SHERMAN BLOCK SUPERVISOR #5TR 852 CC 001-2101-4312 422.70 Total : 9,914.1303353 97666 6/28/2021 SCMAF 8518 INSTRUCTOR INSURANCE/FALL/WINTER 19/2012112 001-4601-4221 292.60 INSTRUCTOR INSURANCE PROG MEMBERSHIPMEM-21-Silver-08 001-4601-4315 310.00 110 06/28/2021 Check Register CITY OF HERMOSA BEACH 8 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 602.60 97666 6/28/2021 SCMAF12112 97667 6/28/2021 SHERWIN-WILLIAMS 4385-0 MAT REQ 854467/WHITE PAINT17903 001-3104-4309 541.15 Total : 541.1517903 97668 6/28/2021 SMART & FINAL 3220630001101 MAT REQ 791335/HOT CUPS00114 001-2101-4305 47.22 MAT REQ 791388/JAIL COFFEE SUPPLIES3220630002102 001-2101-4305 91.31 SOUTH BAY TRAINING MGR MEETING~3220630010902 001-2101-4305 52.28 REQ 479072/POLICE WEEK/CHIPS/SODA3220630014603 001-1203-4201 32.98 MAT REQ 479075/RETIREMENT CUPCAKES3220630020401 001-1203-4201 49.10 Total : 272.8900114 97669 6/28/2021 SOCAL GAS 01100457678 YARD BUILDINGS/NATURAL GAS/MAY2100170 001-4204-4303 27.64 YARD CNG VEHICLE FUEL/MAY21Acct 17078132879 715-3104-4310 62.42 715-6101-4310 62.43 715-4204-4310 62.43 Total : 214.9200170 97670 6/28/2021 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/MAY2100159 105-2601-4303 52.40 ELECTRICITY/APR21-MAY21700156101336 105-2601-4303 232.01 001-4204-4303 7,501.29 001-6101-4303 891.37 ELECTRICITY/APR21-MAY2170022378305 001-6101-4303 1,191.83 001-4204-4303 347.47 ELECTRICITY/MAY21700234897163 001-3304-4303 2,293.66 ELECTRICITY/MAY21700304673105 160-3102-4201 77.00 111 06/28/2021 Check Register CITY OF HERMOSA BEACH 9 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97670 6/28/2021 (Continued)SOUTHERN CALIFORNIA EDISON CO00159 ELECTRICITY/APR21-MAY21700313445137 105-2601-4303 15,961.97 ELECTRICITY/MAY21700338055956 001-4204-4303 561.31 ELECTRICITY/MAY21700371314327 105-2601-4303 97.56 ELECTRIC/MAR-MAY21/INSTALL PMT 37700382668983 001-3104-4303 1,452.89 105-2601-4303 2,912.86 001-4204-4303 1,568.47 Total : 35,142.0900159 97671 6/28/2021 SPECTRUM BUSINESS 8448300300049969 PD CABLE/JUN2120236 001-2101-4201 76.15 1301 HERMOSA/540 PIER CONNECT/AUG208448300300352413 001-2101-4304 275.14 Total : 351.2920236 97672 6/28/2021 TAIT & ASSOCIATES, INC.139504 PIER UPGRADES/STUCTURAL ANALYSIS12518 301-8660-4201 4,065.00 Total : 4,065.0012518 97673 6/28/2021 VALCOURT, ANDREA Parcel 4186-013-055 STREET LIGHT & SEWER TAX REBATE18513 105-3105 24.61 001-6871 126.60 Total : 151.2118513 97674 6/28/2021 VERIZON BUSINESS SERVICES 71839131 VOIP PHONES/CITY HALL/PD/APR2118666 001-1101-4304 38.63 001-1121-4304 60.91 001-1132-4304 18.21 001-1141-4304 36.49 001-1201-4304 149.57 001-1202-4304 91.15 001-1203-4304 72.97 001-1204-4304 109.39 160-3102-4201 18.21 001-1208-4304 6.78 112 06/28/2021 Check Register CITY OF HERMOSA BEACH 10 5:28:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 97674 6/28/2021 (Continued)VERIZON BUSINESS SERVICES18666 715-1206-4304 18.22 001-2101-4304 764.15 001-4101-4304 133.90 001-4201-4304 146.88 001-4202-4304 182.36 001-4204-4321 18.23 Total : 1,866.0518666 97675 6/28/2021 VERSADESK 4138124 ELECTRIC DESK RISER FOR DETECTIVE DESK20972 001-2101-4305 390.00 Total : 390.0020972 670116183 6/16/2021 EMPLOYMENT DEVELOPMENT DEPT LetterID L0798820368 UNEMPLOYMENT CLAIMS/JAN21-MAR2101397 705-1215-4186 9,329.50 Total : 9,329.5001397 Bank total : 849,819.21 51 Vouchers for bank code :boa 849,819.21Total vouchers :Vouchers in this report 51 "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 10 inclusive, of the check register for 6/28/21 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 6/28/21 113 Page 1 of 3 Supplemental testimony from H. Longacre (Resident) to Consent Item XI-b (check registers) July 13, 2021 Hermosa Beach City Council 6-PM Regular Meeting City Manager/City Clerk: Please post this Supplemental with Consent Item XI-b (Check Registers) of the 6-PM Regular City Council Meeting of July 13, 2021. Thank You. July 12, 2021 To: Hermosa Beach City Council (Mary Campbell-Collins, Justin Massey, Raymond Jackson, Michael Detoy, Stacey Armato), City Clerk Eduardo Sarmiento, City Manager Suja Lowenthal, and Contract City Attorney Michael Jenkins. From: Howard Longacre, Resident Re: A settlement payment-voucher, in the amount of 0.950 million dollars, apparently has been authorized by the City Council and issued by the City in regards to the former CrossFit Horsepower Gym’s lawsuit against the city. The business was formerly located on Cyprus Avenue, South of 8th Street before it was flagrantly driven out of business by the Hermosa Beach City Council’s actions of improperly, cavalierly, arrogantly, and ignorantly declaring the business a nuisance, resulting in a costly, unnecessary, unforced error on their part, and subsequent substantial drain on the Hermosa Beach taxpayer funded treasury’s very limited discretionary cash. The particular payment voucher is indicated as having been dated June 17, 2021, and is displayed in a City check register as having been paid to “RING BENDER LLP”, the law firm representing the former Hermosa Beach business. Note: A former Hermosa Beach City Council approved switching to having the City Council receive for review and approve/ratify check-voucher payments after they have in fact been made and likely cashed. This reverse approval process was initiated over 20 years ago for various arcane reasons. The particular voucher’s line item is present in check register #2 of Consent Item XI-b of the July 13, 2021 Regular Hermosa Beach Council Meeting agenda. (Following is a direct link to the staff report of Consent Item XI-b with several check register attachments.) https://hermosabeach.legistar.com/LegislationDetail.aspx?ID=5027913&GUID=6ED4E82B -3CD5-4DE9-BF70-82239CE58DB2 City Council and others: All in this communication are of my understanding, views, and suggestions. After having made such a significant blunder with respect to the subject gym business, the very least the City Council should now do is to provide full transparency, however to date it appears the Council is going to continue to conspire, stonewall, and operate behind the scenes in secret. 114 Page 2 of 3 Supplemental testimony from H. Longacre (Resident) to Consent Item XI-b (check registers) July 13, 2021 Hermosa Beach City Council 6-PM Regular Meeting Whether it be destroying this particular gym business improperly, or conspiring against your former duly elected fellow colleague, a few of you on council just do not get it. “You’ve met the enemy and it is you.” Question 1: In regards to the CrossFit Horsepower Gym lawsuit against the City, one or more of the City’s elected officials, and any others, is the $950,000 payment that’s already been authorized by the City Council, the full and complete amount to be paid by the City and/or the City’s Insurance pool coverage, or is the total more than this amount that the City Council has authorized to settle with the litigant? Question 2: Is the entire settlement to be in cash as authorized by the City Council, or are there any other intangibles/entitlements that have also been agreed to, and authorized by the City Council to the litigant? Many additional questions remain unanswered. Where is the transparency now that the City Council’s actions against the business have been found at fault, or the City Council has de facto evidently accepted fault, no matter what the settlement agreement text may itself state? Question 3: W hat then is the net total settlement that is being paid, or additionally that is obligated to be paid to CrossFit Horsepower et al, the Litigant? On June 24, 2021 I received a reply to a question that I had sent to the City Manager’s office re: whether a settlement with CrossFit Horsepower had been reached by the City Council. Following is the response I received from the City Manager’s office. “Yes, the Crossfit case has settled. The amount will appear on the Check Register item on the July 13 City Council Agenda. The City’s tender to its insurance pool is pending.” Question 4: What amount if any of the $950,000 check voucher as paid June 17th by the City to the Litigant was covered by its “insurance pool”? Question 5: Is the City expecting to be additionally reimbursed by its “insurance pool” for any of the $950,000 it has paid? Question 6: Is the City’s “insurance pool” paying any amount (not to be showing on a city check register) directly to the Litigant, and if so what is the amount? Question 7: Bottom line, what is the total and complete amount, including intangibles being awarded to the Litigant, and what is the timeline for all of such to occur? Suggestions: After a city council settles for such a decision-making blunder, or of a prior council’s blunder(s), it would be best for transparency, and Council’s own education to have the City Manager present a complete no-spin analysis and breakdown of all the mistakes made, all of the actual costs the mistakes necessitated, and make such tabulation available to the public and press. 115 Page 3 of 3 Supplemental testimony from H. Longacre (Resident) to Consent Item XI-b (check registers) July 13, 2021 Hermosa Beach City Council 6-PM Regular Meeting The lawsuit has supposedly been settled. The Council may believe it, or a former council made no mistakes, or that the City Attorney didn’t make any mistake with its given counsel, however the bottom line is that there were obviously a ton of costly mistakes made. Thus when is the Council going to come clean with the residents, businesses and the press of the city, or does it require ongoing public-records-requests and constant reminders by the public of the blunders those responsible have made repeatedly. Again, what is the net total settlement that is being paid, or additionally that is obligated to be paid to CrossFit Horsepower et al, the Litigant? What are all the costs the City has incurred during these years-long Council induced blunders, given all the costly Public Hearings, all the costly staff reports, all the costly Contract City Attorney firm’s billings, and on and on and on. If 0.950 million dollars is the actual total payout to the Litigant, then the real total cost to the Hermosa Beach treasury has to be twice that much, if not more. A minimum of $2 Million to date! And then what are the unknown esoteric costs of driving a relatively high-quality Hermosa Beach business, out-of-business, not to mention the losses from other businesses then not even wanting to operate a business in Hermosa Beach, given evidently the ongoing presence of such an out-of- control, self-righteous, self-serving City-Council/Contract-City-Attorney operation? The City’s operation itself is to serve the people, not the other way around. The residents and businesses of the city need to know the facts of the entire CrossFit Horsepower Gym’s treatment by the City Council and its No-Bid-Contract-City-Attorney-For-Life’s lackadaisical counsel, the counsel that is supposed to keep the Hermosa Beach City Council from making such egregious blunders, but over and over and over costs Hermosa Beach millions and millions of dollars , while the counsel then profits repeatedly from the Council’s blunders under his given counsel. If the City got off for only $1 Million in total settlement payments then it is extremely lucky. The Hermosa Beach City Council easily did $5 Million in damages to the busin ess. Big shot Hermosa politicians, drunk with power, believing they are doing so damn much good that they can do no wrong. There should be apologies and resignations made to the taxpayers, or at the very least, those councilmembers responsible should give up their stipends and other benefits for the duration of their service on the City Council for such egregious, stupid, ignorant votes. The newer Council members especially should demand that a full report/history with all costs, direct and indirect of this matter is detailed ASAP and displayed on the city-website. End-of-communication. 116 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Monday, July 12, 2021 7:25:32 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Carolyn Petty submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0412 CHECK REGISTERS (Finance Director Viki Copeland) eComment: It is shocking and the worst governance I have seen in Hermosa Beach that you would settle out a lawsuit for $950k and hide it in a check register on consent. You have spent most likely $1.5M on this lawsuit with ZERO disclosure to our community. I am incredulous that you think this is okay. It is reflective of the new approach brought by Suja - one in which the community does not matter, and the city council does whatever it pleases. There needs to be full disclosure of what happened, disclosure as to which councilmember orchestrated the illegal closure of Cross Fit (you all know who that is), why you decided to settle, how much you spent defending the actions of that councilmember, and what you plan to change to ensure this NEVER happens again. I see none of that happening when you bury this in consent. In other cities, councilmembers would resign when they cost the city $1M. Why is there not at least a discussion of censure for that councilmember? We all know that there were hundreds of emails found during the discovery process that showed how this was orchestrated behind the scenes by one councilmember. What makes this even worse is you are now trying the same failed approach with our downtown - declaring our entire downtown to be a public nuisance, as you did with CrossFit. There must be acknowledgement that this "public nuisance" approach is inappropriate and illegal, as you have come to learn based upon what happened with CrossFit. Are you contrite at all? You need to pull this item and have a full discussion so the public finally understands what happened. The idea that you would put our city in legal jeopardy by declaring our entire downtown to be a public nuisance is reckless and irrational. If you do not pull this from consent and have a full discussion, you are telling our community that you do not care what they think, you will do whatever you want whenever you want. This is how corruption begins, and everyone in our community should be very concerned. 117 View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 118 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 12:15:17 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Matt McCool submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0412 CHECK REGISTERS (Finance Director Viki Copeland) eComment: This item needs to be pulled from the consent calendar and addressed to the public. At the very least, this $950k settlement to Ring Bender LLP, needs to be addressed in the City Manager Report. https://www.facebook.com/photo?fbid=10161219677128378 View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 119 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0416 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 2019-20 COMPREHENSIVE ANNUAL FINANCIAL REPORT (ANNUAL REPORT) (Including Report from Independent Auditor) (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council receive and file the 2019-20 Comprehensive Annual Financial Report (Annual Report),which includes the report from Gruber and Associates,the City’s independent auditors. Executive Summary: For the 2019-20 fiscal year,the City again received an unmodified opinion,which indicates that the auditor believes the financial statements present a fair picture of the financial position of the City.The unmodified opinion is the highest level opinion the City can receive.The opinion asserts that the City is in compliance with all Generally Accepted Accounting Principles (GAAP)and Government Accounting Standards Board (GASB) requirements. Since comparative information for the General Fund for 2018-19 and 2019-20 is not included in the Annual Report,it is presented in the analysis section.Some of the comments from the Transmittal letter and Management’s Discussion and Analysis (MD&A),located in the Financial Section of the Annual Report, are repeated herein for the purpose of having this staff report stand alone. Overall,General Fund Revenue decreased by 6.5 percent and expenditures decreased by 1.2 percent.Revenue was higher than budget by 3.8 percent;expenditures were under budget by 4 percent.The year-end transfer of unspent funds in the General Fund was temporarily put on hold due to the unknown impacts of the COVID-19 pandemic.As a part of the Midyear Budget Review on March 9,2021,staff recommended assigning the unspent General Funds from 2019--20 of $1,751,688 and the remaining available balance of $1,823,416 from the 2020-21 Budget for use in the 2021-22 Budget process.Ultimately,the 2021-22 Preliminary Budget recommends that the 2019- 20 unspent funds be transferred to the Capital Improvement Fund to fund future projects,increase the Capital Facilities Reserve, and create a reserve for the remaining Fire Facilities payments. City of Hermosa Beach Printed on 7/9/2021Page 1 of 11 powered by Legistar™120 Staff Report REPORT 21-0416 Background: Annually,the City has a financial audit performed by an independent,Certified Public Accounting (CPA)firm.The auditor’s report is located on pages 1-3 in the Financial Section of the Annual Report. The City entered into an agreement with a new audit firm,Gruber and Associates on May 28,2019 after selection through the Request for Proposals (RFP)process.This is the second year of the three -year contract.The increased Finance Department workload due to the refunding of the 2015 Lease Revenue Bonds in fall of 2020,ongoing COVID-19 related reporting and cost recovery work,staff leaves,and the implementation of a new online budgeting system pushed the annual audit and issuance of the financial statements later than normal. An extension on the submission date was received and the report was submitted to the Government Finance Officers Association (GFOA)to qualify for the Certificate of Achievement for Excellence in Financial Reporting.The City received the award for the 2018-19 Annual Report and has received the award since 1990. An extension on the submission date was approved by GFOA. The award program requires a high level of compliance with governmental standards,inclusion of information well beyond the general-purpose financial statements and an unmodified audit opinion. There were several new Governmental Accounting Standards Board (GASB)statements effective for fiscal year 2019-20, but none of them impacted the City’s financial statements. Historical Note:In 2014-15,the City implemented GASB 68 Accounting and Financial Reporting for Pension and GASB 71,Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No 68 and in 2017-18,the City implemented GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions.The main impact to the financial statements is the recording of the net pension and OPEB liabilities in the government-wide financial statements.There is no impact to the individual fund financial statements. While GASB 68 and 75 implemented changes to the accounting and reporting of net pension and OPEB liabilities,neither impact the way pension and OPEB liabilities are funded.Since the net pension and OPEB liabilities are payable over an extended time horizon,they do not represent a claim on current financial resources. Historical Note:GASB 54 Fund Balance Reporting and Governmental Fund Type Definitions,GASB 54 Fund Balance Reporting and Governmental Fund Type Definitions,implemented in 2012-13, established fund classifications based upon constraints imposed on the use of resources in governmental funds.The primary initial impact of this classification change is that funds previously held separately,the Contingency Fund,Compensated Absences Fund,and the Retirement Stabilization Fund are now shown in the General Fund in the “Committed”or “Assigned”totals on page 25,the Balance Sheet for Governmental Funds.The City’s policy for these funds shows on City of Hermosa Beach Printed on 7/9/2021Page 2 of 11 powered by Legistar™121 Staff Report REPORT 21-0416 pages 53-54 in Note 1 of the Annual Report and the detailed amounts show in Note 11 on page 79. Also,as a helpful reminder in reading the Annual Report,the GASB 34 reporting model that was implemented in 2002 dictates the following: ·Present financial information in specific formats,namely,the Government Wide Financial Statements,beginning on page 19.These statements are designed to show net assets and equity of the City as a whole and to provide information on the cost of services and show how programs are financed; ·Requires Management’s Discussion and Analysis (MD &A)to present financial highlights and assess performance for the year; ·Requires reporting on “major” funds rather than aggregate fund types; and ·Requires accrual accounting (in the Government Wide Statements)for all governmental funds, meaning that long term assets and liabilities (such as capital assets,including infrastructure) are included in addition to short term assets and liabilities.All revenues and all costs of providing services are also reported,not just those received or paid in the fiscal year or soon after year-end. Analysis: Since comparative information for the General Fund for 2018-19 and 2019-20 is not included in the Annual Report,it is presented below.Some of the comments from the MD&A and Transmittal letter, as mentioned above,are repeated herein for the purpose of having this staff report stand alone. Additional information and analysis can be found in the Transmittal Letter starting on page v and in the MD&A starting on page 5. General Fund Revenue General Fund revenue decreased 6.5 percent over 2018-19,as depicted in the chart below.Revenue was higher than budget by 3.8 percent.The effects of COVID-19 impacted revenue for the last quarter of 2020, April-June. Revenue Increase % Of FY 2019-20 (Decrease)Increase % Amount Over FY 2018-19 (Decrease) Of Total Property Taxes $19,119,818 $1,009,173 5.57%49.61% Sales Tax $2,722,468 ($410,843)-13.11%7.06% Utility Users' Tax *$2,093,903 ($101,912)-4.64%5.43% Transient Occupancy Tax $2,599,810 ($651,539)-20.04%6.75% Other Taxes $1,732,504 $87,895 5.34%4.49% Licenses and Permits $729,622 ($120,437)-14.17%1.89% Fines and Forfeitures $2,160,244 ($201,159)-8.52%5.60% Use of Money and Property $663,616 ($916,966)-58.01%1.72% Intergovernmental Revenue $128,680 $13,665 11.88%0.33% Charges for Services $6,139,719 ($949,206)-13.39%15.93% Miscellaneous $84,835 ($332,283)-79.66%0.22% Interest $368,071 ($105,666)N/A 0.95% Total $38,543,290 ($2,679,278)-6.50%100.00% 99.98% * $700,000 in UUT revenue was removed from the General Fund and shown in the Storm Water Fund as revenue rather than a transfer. REVENUE SOURCE City of Hermosa Beach Printed on 7/9/2021Page 3 of 11 powered by Legistar™122 Staff Report REPORT 21-0416 Revenue Increase % Of FY 2019-20 (Decrease)Increase % Amount Over FY 2018-19 (Decrease) Of Total Property Taxes $19,119,818 $1,009,173 5.57%49.61% Sales Tax $2,722,468 ($410,843)-13.11%7.06% Utility Users' Tax *$2,093,903 ($101,912)-4.64%5.43% Transient Occupancy Tax $2,599,810 ($651,539)-20.04%6.75% Other Taxes $1,732,504 $87,895 5.34%4.49% Licenses and Permits $729,622 ($120,437)-14.17%1.89% Fines and Forfeitures $2,160,244 ($201,159)-8.52%5.60% Use of Money and Property $663,616 ($916,966)-58.01%1.72% Intergovernmental Revenue $128,680 $13,665 11.88%0.33% Charges for Services $6,139,719 ($949,206)-13.39%15.93% Miscellaneous $84,835 ($332,283)-79.66%0.22% Interest $368,071 ($105,666)N/A 0.95% Total $38,543,290 ($2,679,278)-6.50%100.00% 99.98% * $700,000 in UUT revenue was removed from the General Fund and shown in the Storm Water Fund as revenue rather than a transfer. REVENUE SOURCE Taxes Revenue from taxes generates 73 percent of General Fund revenue.The graph below tracks select tax revenue sources over the past 10 years. City of Hermosa Beach Printed on 7/9/2021Page 4 of 11 powered by Legistar™123 Staff Report REPORT 21-0416 Property Tax Total property tax revenue increased 5.6 percent.The graph above shows secured tax,which increased 6 percent and unsecured tax,which increased 1 percent.Hermosa Beach’s assessed valuation for secured and unsecured property increased 6.0 percent overall.The 6.0 percent growth was the 18th highest of 88 cities in Los Angeles County.Median home prices in Hermosa Beach for June 2020 were $1,937,500 as compared to Los Angeles County’s median price of $643,000.The average median home price for Hermosa Beach for fiscal year 2019-20 was $1,802,698 compared to $1,816,000 for the prior year. Sales Tax Sales tax revenue is down 13.1 percent from 2018-19 primarily due to decreases in the Eating and Drinking Places and Manufacturing and Wholesale.The impact of COVID-19 is reflected in every category except Food Stores and Apparel Stores. Sales Tax by Class 2019-20 % Change Previous Year Retail Group Eating/Drinking Places $784,787 ($248,482)-24%29% Building Materials $253,335 ($7,735)-3%9% Food Stores $252,853 $24,557 11%9% Other Retail Stores $208,524 ($1,157)-1%8% Auto Dealers & Supplies $123,175 ($16,224)-12%4% Service Stations ##-19% # Apparel Stores $81,088 $2,924 4%3% Drug Stores ##-1% # Furniture/Appliance $62,835 ($7,658)-11%2% All Other Retail $59,353 ($6,248)-10%2% Total Retail Group ##-12%73% Total Manufacturing $133,840 ($114,286)-46%5% & Wholesale Total Business, Service, $118,794 ($9,189)-7%4% Repair Total Non-Store/Part Time $5,851 $1,867 47%1% Retailers/Adjustments Total County/State Pool $469,160 $64,837 16%17% * Threshold for inclusion, $300 per quarter * Service station and drugstore amounts are not listed because there are too few in the category. RANK / BUSINESS CLASS INC/(DEC)% OF TOTAL City of Hermosa Beach Printed on 7/9/2021Page 5 of 11 powered by Legistar™124 Staff Report REPORT 21-0416 Sales Tax by Geographic Area Revenue % OF Revenue % OF LOCATION 2018-19 Total % Change 2019-20 Total PCH 1,009,697 46%(7%)938,320 48% Downtown 829,763 37%(22%)648,316 33% Pier/Valley/Monterey 289,515 13%(8%)265,014 14% Aviation 86,216 4%(1%)86,840 5% Transient Occupancy Tax (TOT) Transient occupancy tax decreased 20.1 percent over 2018-19.In November 2019,residents voted to increase the TOT rate from 12 percent to 14 percent,effective January 1,2020,however due to the pandemic,TOT revenue declined despite the increase in tax rate.Hotel occupancy decreased 15.7 percent over 2018-19 due to COVID-19 closures and stay at home orders.Average occupancy was 63.4 percent in 2019-20; occupancy was 79.1 percent in 2018-19. Utility User Tax (UUT) The City transfers $700,000 in Utility User Tax revenue annually to the Storm Drain Fund for operations and maintenance.Consistent with prior year,the $700,000 transfer from the General Fund was recorded as UUT revenue instead of a transfer in the Storm Drain Fund for financial statement reporting purposes. UUT was down overall by $101,912 or 4.6 percent in 2019-20. Licenses and Permits The License and Permit category decreased by 14.2 percent primarily due to a 15 percent decrease in building permits and 16 percent decrease in plumbing permits. City of Hermosa Beach Printed on 7/9/2021Page 6 of 11 powered by Legistar™125 Staff Report REPORT 21-0416 Fines and Forfeitures Street sweeping citations were temporarily suspended with the COVID-19 stay at home orders and other citations decreased, leading to a revenue decrease of 8.5 percent in 2019-20. Service Charges Service Charges show a decrease of 13.4 percent.Revenue was down due to encroachments, parking revenue,and recreation programs.On March 24,2020,the City Council approved the temporary suspension of fees for restaurant encroachments and the fees remained suspended for the remainder of the fiscal year.Parking related revenue was down,including residential parking permits and parking structure revenue.The local stay of home orders and beach closure lead to the temporary closure of the parking structure and City owned parking lots.Recreation related service charges were also down due to the cancellation of classes and other programs. General Fund Expenditures Expenditures Increase % Of 2019-20 (Decrease)Increase % Amount Over 18-19 (Decrease)Of Total Legislative/Legal $1,300,018 ($199,047)-13.28%3.55% General Government $4,554,234 $363,452 8.67%12.43% Public Safety $21,459,563 ($487,217)-2.22%58.59% Community Development $2,039,680 $20,314 1.01%5.57% Culture/Recreation $1,521,029 ($2,204)-0.14%4.15% Public Works $5,342,252 ($100,474)-1.85%14.59% Capital Outlay $411,204 ($28,213)-6.42%1.12% Total $36,627,980 ($433,389)-1.17%100.00% GENERAL FUND Expenditures were 4 percent under budget and show a decrease of 1.2 percent from the prior year due to the following: ·The Legislative and Legal decrease of 13.3 percent is primarily due to change in funding sources for the litigation costs in 2019-20.Litigation expenditures of $131,417 were funded from the General Fund in 2018-19.In 2019-20,the expenditures were funded from the Insurance Fund. ·The General Government increase of 8.7 percent is due to several factors,including increased City of Hermosa Beach Printed on 7/9/2021Page 7 of 11 powered by Legistar™126 Staff Report REPORT 21-0416 ·The General Government increase of 8.7 percent is due to several factors,including increased contract services costs related to a consultant for the TOT ballot measure,temporary staffing in the Finance Department due to staff out on leave,an increase in ambulance transport billing and an increase in credit card fees reflective of a shift to online payments due to the COVID- 19 related closure of City Hall.Additionally the City Manager’s position was filled for the full fiscal year. ·Public Safety was down 2.2 percent largely due to vacant positions.The Police Department had vacant positions including Police Captain,two Police Officers,and Police Service Officer Supervisor.In order to help ensure that the City did not end 2019-20 with a deficit balance,the aforementioned positions were frozen and not filled. ·Public Works was down 1.9 also due to vacant positions including Public Works Supervisor, Assistant Engineer,Crew Supervisor,and Geographic Information Systems (GIS)Analyst.As with the positions noted above in the Police Department,the vacant positions were frozen and not filled in 2019-20. General Fund Unspent Funds The policy of transferring unspent funds in the General Fund to the Insurance Fund,Equipment Replacement Fund (ERF)and Compensated Absences Fund was implemented in 1995-96 to build equity and provide funds for amounts owed to employees for accumulated leave.The policy was changed in 1998-99 to discontinue allocating funds to the Compensated Absences Fund (since the target amount was reached),to create a Capital Improvement Fund for street and other capital improvements and to include a goal for Contingency funds in the policy.The Contingency Policy was changed from 15 percent of appropriations for operating funds to 16 percent in 2013-14 in keeping with best practices. The City Council amends the policy,as necessary,when goals or targets are met and depending on where funds are needed.For several years,funds available at year-end were transferred to the Insurance Fund to cover estimated insurance claims liabilities and the oil settlement agreement. From 2013-14 to 2015-16,funds available at year-end were transferred to the Capital Improvement Fund.The 2016-17 and 2017-18 transfers were to the Insurance Fund to help cover the 2016-17 oil settlement agreement and 2017-18 liability claims settlements.In 2018-19,the Insurance Fund was at the funding goal of $3,000,000 so the year-end transfer was made to the Capital Improvement Fund and half was assigned for the newly created Capital Facilities Reserve. Due to the sudden uncertainty from the COVID-19 pandemic,2019-20 unspent funds were temporarily held in the General Fund.As a part of the Midyear Budget Review on March 9,2021, staff recommended assigning the unspent General Funds from 2019-20 of $1,751,688 and the City of Hermosa Beach Printed on 7/9/2021Page 8 of 11 powered by Legistar™127 Staff Report REPORT 21-0416 staff recommended assigning the unspent General Funds from 2019-20 of $1,751,688 and the remaining available balance of $1,823,416 from the 2020-21 Budget for use in the 2021-22 Budget process.The 2021-22 Preliminary Budget recommends the transfer $1,772,773 in unspent funds from prior years to the Capital Improvement Fund to provide funding of $886,386 for future Capital Improvement Projects,increase the Capital Facilities Reserve by $316,813,and establish a reserve of $569,574 for the remaining Fire Facility payments to the County for the newly renovated fire station.The remaining $1,802,370 from Midyear 2020-21 would be used to cover the deficit in the General Fund. Insurance Fund The net position in the Insurance Fund is under the funding goal of $3,000,000 at year end.At the time the Midyear Budget was prepared,the Insurance Fund was estimated to be $816,750 over the funding goal of $3,000,000.This amount was transferred to the General Fund at year end.An additional $500,000 was transferred to the General Fund based on preliminary conversations with the actuary preparing the annual reports for Liability and Worker’s Compensation claims estimates.The reduction in claims was lower than anticipated when the final report was received,resulting in the ending balance at June 30, 2020 of $2,643,791. Other primary expenses in the Insurance Fund are related to Workers’Compensation claims, General Liability claims and Litigation.Claims payments for workers’compensation were lower by $165,327 and liability cases were higher by $97,739 in 2019-20.Year-end liabilities are established annually through actuarial studies performed by the Independent Cities Risk Management Authority’s independent actuary.The total overall claims expense is higher by $786,220,largely due to an increase in year-end liability recorded in the Liability Division. City of Hermosa Beach Printed on 7/9/2021Page 9 of 11 powered by Legistar™128 Staff Report REPORT 21-0416 Changes to Claims Expense DEPARTMENT/DIVISION 2018-19 2019-20 Increase (Decrease) Workers Compensation Division Change to: Claims Paid $922,735 $757,408 ($165,327) Year-end Liability (45,576)(375,344)(329,768) $877,159 $382,064 ($495,095) Liability Division Change to: Claims Paid $148,042 $245,781 $97,739 Year-end Liability (502,307)681,269 1,183,576 ($354,265)$927,050 $1,281,315 Total Claims Expense $522,894 $1,309,114 $786,220 General Plan Consistency: PLAN Hermosa,the City’s long-range planning document,was adopted by the City Council in August 2017,and envisions a future where “Hermosa Beach is the small town others aspire to be;a place where our beach culture,strong sense of community,and commitment to sustainability intersect.” One of the guiding principles to achieve the vision is to make decisions and take actions that help contribute to the City’s economic and fiscal stability. A focus of the Governance chapter in the General Plan is to ensure that decision-making and leadership are conducted in an ethical,transparent,and innovative manner that reflects community values.Goal 1 of the Governance chapter speaks to maintaining a high degree of transparency and integrity in the decision-making process. Other relevant General Plan policies are listed below: Infrastructure ·1.2 Priority investments.Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan. ·1.9 Preventative street maintenance projects.Include street slurry projects and other preventive projects in the CIP each year, with sufficient funding. Public Safety ·5.2 High level of response.Achieve optimal utilization of allocated public safety resources and City of Hermosa Beach Printed on 7/9/2021Page 10 of 11 powered by Legistar™129 Staff Report REPORT 21-0416 provide desired levels of response, staffing, and protection within the community. Fiscal Impact: The 2019-20 Annual Report provides a financial overview for the previous fiscal year.Audited fund balances were used in the Fund Summary Reports for the 2020-21 Midyear Budget Review and 2021-22 Preliminary Budget.The 2021-22 Preliminary Budget item appears on this agenda under Public Hearings. Attachments: 1.2019-20 Comprehensive Annual Financial Report Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 11 of 11 powered by Legistar™130 City of Hermosa Beach, California Comprehensive Annual Financial Report For the Year Ended June 30, 2020 131 City of Hermosa Beach Hermosa Beach, California Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Prepared by the Finance Department of Hermosa Beach 132 This page intentionally left blank. 133 City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED) Letter of Transmittal ................................................................................................................................................................ v Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ............................................................................................................... xii Organizational Chart ............................................................................................................................................................ xiii Principal Officials of the City of Hermosa Beach ........................................................................................................... xiv FINANCIAL SECTION Independent Auditors’ Report on Financial Statements ..................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................... 5 Basic Financial Statements: Government – Wide Financial Statements: Statement of Net Position .............................................................................................................................................. 19 Statement of Activities ................................................................................................................................................... 21 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet ........................................................................................................................................................... 25 Reconciliation of the Governmental Funds Balance Sheet to the Government–Wide Statement of Net Position .................................................................................. 27 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................................... 29 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ..................................................................................................................................... 31 Proprietary Fund Financial Statements: Statement of Net Position ....................................................................................................................................... 35 Statement of Revenues, Expenses, and Changes in Net Position ..................................................................... 36 Statement of Cash Flows ........................................................................................................................................ 37 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ..................................................................................................................... 41 Index to the Notes to the Basic Financial Statements .................................................................................................. 45 Notes to the Basic Financial Statements ......................................................................................................................... 47 i 134 City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) Page FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited): Budgetary Comparison Schedule – General Fund.................................................................................................................... 84 Budgetary Comparison Schedule – Grants Special Revenue Fund ....................................................................................... 85 Budgetary Comparison Schedule – Sewer Special Revenue Fund ........................................................................................ 86 Notes to the Budgetary Comparison Schedule .......................................................................................................................... 87 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ............................................ 89 Schedule of City’s Contributions - Pension .............................................................................................................................. 90 Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................................... 91 Schedule of the City's Contributions - OPEB ........................................................................................................................... 92 Supplementary Information: Nonmajor Governmental Funds: Combining Balance Sheet ............................................................................................................................................ 97 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 103 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds: Lighting and Landscaping District ............................................................................................................... 109 State Gas Tax .................................................................................................................................................. 110 AB 939 ............................................................................................................................................................. 111 Prop A Open Space ........................................................................................................................................ 112 Tyco .................................................................................................................................................................. 113 Tyco Tidelands ................................................................................................................................................ 114 Parks/Recreation Facilities Tax .................................................................................................................... 115 Bayview Drive Administrative Expense ..................................................................................................... 116 Loma District Administrative Expense ....................................................................................................... 117 Beach Drive Assessment District Administrative Expense ...................................................................... 118 Proposition “C” ............................................................................................................................................... 119 Measure “R” .................................................................................................................................................... 120 Air Quality Management District ................................................................................................................. 121 Supplemental Law Enforcement Services................................................................................................... 122 Asset Seizure and Forfeiture ......................................................................................................................... 123 Fire Protection ................................................................................................................................................. 124 Community Development Block Grant ....................................................................................................... 125 Measure “M” ................................................................................................................................................... 126 RTI Undersea Cable ....................................................................................................................................... 127 RTI Undersea Cable Tidelands ..................................................................................................................... 128 Proposition “A” Transit ................................................................................................................................. 129 FEMA ............................................................................................................................................................... 130 Storm Drain ..................................................................................................................................................... 131 Nonmajor Debt Service Fund: 2015 Lease Revenue Bond ............................................................................................................................ 132 ii 135 City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) Page Supplementary Information (Continued): Internal Service Funds: Combining Statement of Net Position ....................................................................................................................... 136 Combining Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 137 Combining Statement of Cash Flows ......................................................................................................................... 138 Fiduciary Fund Financial Statements: Combining Statement of Fiduciary Net Position ...................................................................................................... 141 STATISTICAL SECTION (Unaudited) Net Assets by Component .......................................................................................................................................................... 145 Changes in Net Assets ................................................................................................................................................................ 147 Governmental Activities Tax Revenues By Source ............................................................................................................... 151 Fund Balances of Governmental Funds ................................................................................................................................... 153 Changes in Fund Balances of Governmental Funds .............................................................................................................. 155 General Government Tax Revenues By Source ..................................................................................................................... 157 Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... 158 Direct and Overlapping Property Tax Rates ........................................................................................................................... 159 Principal Property Taxpayers .................................................................................................................................................... 160 Property Tax Levies and Collections ....................................................................................................................................... 161 Construction Value and Property Value .................................................................................................................................. 162 Direct and Overlapping Debt ..................................................................................................................................................... 163 Legal Debt Margin Information ................................................................................................................................................ 165 Ratios of Outstanding Debt by Type ........................................................................................................................................ 167 Ratios of General Bonded Debt Outstanding .......................................................................................................................... 168 Pledged-Revenue Coverage ....................................................................................................................................................... 169 Demographic and Economic Statistics ..................................................................................................................................... 170 Principal Employers .................................................................................................................................................................... 171 Full-Time and Part-Time City Employees by Function ........................................................................................................ 172 Operating Indicators by Function ............................................................................................................................................. 173 Capital Asset Statistics by Function ......................................................................................................................................... 174 OTHER REPORT Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Preformed in Accordance with Government Auditing Standards .......................................................... 177 iii 136 This page intentionally left blank. iv 137 v March 26, 2021 Honorable Mayor and Members of the City Council and Citizens of Hermosa Beach, California: Introduction Presented herein is the Comprehensive Annual Financial Report of the City of Hermosa Beach for the fiscal year ended June 30, 2020. The report is intended to update readers on the status of the City’s financial position and results of operations for the past fiscal year. Management's representations concerning the finances of the City of Hermosa Beach are contained herein. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hermosa Beach has established an internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hermosa Beach’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City of Hermosa Beach’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Audit The City of Hermosa Beach’s financial statements have been audited by Gruber and Associates, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hermosa Beach for the fiscal year ended June 30, 2020, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Hermosa Beach’s financial statements for the fiscal year ended June 30, 2020, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis. This letter of transmittal is designed to complement the Management Discussion & Analysis (MD&A) and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor. City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 138 vi Profile of the Government The City of Hermosa Beach is a beachfront, bedroom community with a stable population, located four miles south of Los Angeles International Airport. The City occupies 1.4 square miles and serves a population of 19,614, according to the State’s latest population estimate. However as a beach city, the City experiences a high visitor population and the associated costs. Due to this high visitor population, the City operates in many ways like a larger city. During the 2019–20 fiscal year, beach attendance ranged from a low of 418 (a major drop due to COVID-19) in April 2020 to a high of 757,500 in June 2020, according to the Los Angeles County Fire Department, Lifeguard Division. The City of Hermosa Beach, incorporated on January 14, 1907 as a general law city, operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of five members of the City Council elected on a non-partisan basis at large for a four- year term, with the exception of elections in 2017 and 2019 for which five-year terms will be served. Council members serve staggered terms, with an election every two years. One member is chosen by fellow members to serve as Mayor for a period of approximately one year (will return to standard term of nine months at the end of 2022 with the return of four-year terms); one is chosen to serve as Mayor Pro Tem. The terms of office for those elected in November of 2017 and 2019 were extended by one year to accommodate the election date change from odd-numbered years to even-numbered years effective November 2022, as approved by the City Council to coincide with County elections. The Council is responsible for, among other things, establishing policy, passing ordinances, adopting an annual budget; appointing members to various City Commissions and Boards and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. The City offers a full range of municipal services, including police, fire protection (provided by Los Angeles County beginning December 30, 2017), community development (planning and zoning), cultural, recreation and parks, maintenance and construction of public improvements, parking and animal control, and general administration. Financial information for the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Utility Underground Districts are included in the City's financial statements as required by governmental accounting standards. Selected information from the U.S. Census Bureau’s Quick shown on the following page. 139 vii The U.S. Census Bureau Quick Facts are as of March 2020. Further data regarding the City may be found in the Statistical Section. The annual budget serves as the foundation for the City of Hermosa Beach’s financial planning and control. All departments of the City of Hermosa Beach are required to submit requests for appropriations to the Finance Director according to a budget calendar. The Finance Director and City Manager uses these requests as the starting point for developing a proposed budget, which is presented to the City Council for review by May 15. At least one public budget workshop is held prior to the required public hearing, with adoption required no later than June 30. If the City Council fails to adopt a budget by that date, the budget submitted by the City Manager, as amended by the City Council, if applicable, is the appropriated budget except for capital improvement outlays. The appropriated budget is prepared by fund and department (e.g., Police Department). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. The City Council receives monthly revenue and expenditure reports during the year and a midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and major governmental funds with appropriated annual budgets, this comparison is presented as Required Supplementary Information on pages 84-92. For non-major governmental funds with appropriated annual budgets, this comparison is presented as Supplementary Information, after the Notes to the Financial Statements. Category Hermosa Beach California Category Hermosa Beach California Persons under 5 years, 2019 estimate 5.7% 6.2% Persons under 18 years, 2019 estimate 17.9% 23.0% Persons 65 years and over, 2019 estimate 12.4% 14.0% Female persons, 2019 estimate 46.3% 50.3% Non-Hispanic White 78.0% 36.5% Hispanic 9.4% 39.4% Non-Hispanic Black 1.0% 6.5% Non-Hispanic American Indian 0.6% 1.6% Non-Hispanic Asian 5.2% 15.5% Persons per household, 2015-2019 2.18 2.95 Bachelor's Degree or higher, persons a ge 25+, 2015-2019 75.7% 33.9% High School graduate or higher, persons a ge 25+, 2015-2019 97.4% 83.3% Per capita income in the past 12 months (2019 dollars), 2015-2019 $96,883 $36,955 Persons below poverty level, 2015-2019 4.7% 12.8% Households, 2015-2019 8,956 13,044,266 Owner-occupied housing untis, 2015- 2019 47.4% 54.8% Median value of owner- occupied housing units, 2015-2019 $1,542,900 $505,000 Housing units in multi- unit structures, 2019 46.1% 35.2% Households with a computer, 2015-2019 97.4% 93.0% Mean travel time to work, 2015-2019 35 minutes 29.8 minutes U.S. CENSUS BUREAU QUICK FACTS 140 viii Factors Affecting Financial Condition Local economy Just as departments were turning in their budget requests for the 2020-21 Budget in March 2020, the State issued a stay at home order and Hermosa Beach declared a local emergency due to the advent of the Coronavirus (COVID-19). The State’s surplus turned into a deficit and Hermosa Beach’s 2019–20 Budget was suddenly under duress, with departmental budgets just submitted for 2020–21 sent back to the drawing board for reductions and removal of additional requests. Hermosa Beach is a “bedroom community” as evidenced by a household count of 8,956 and an in-city business count of 948 (excluding apartments and home occupations). Hermosa Beach is very fortunate to have growth of 6.0% in secured and unsecured assessed valuation, as compared to 6.2% for Los Angeles County. The 6.0% growth was the 18th highest of 88 cities in Los Angeles County. Median home prices in Hermosa Beach as of June 2020 were $1,937,500, compared to $643,000 for Los Angeles County. The Hermosa Beach median home price for June 2019 was $1,722,500, compared to $618,000 for Los Angeles County. The average median home price for Hermosa Beach for fiscal year 2019–20 was $1,802,698 and $1,816,000 for fiscal year 2018–19. These factors all predate the impact of COVID since the levy is made at the beginning of the fiscal year. General Fund Secured property taxes increased 5.6% in 2019–20, consistent with growth in assessed values. Historically, property adjacent to the beach has held its value better and has grown faster as compared to property in the other areas. As a beach city, the three highest occupations continue to be management, sales, and administrative support. Residents typically enjoy access to a much more diverse employment base with the close proximity of all of the other cities in Los Angeles County. The unemployment rate in Hermosa Beach as of June 2020 is 10.2%, compared with 19.6% for Los Angeles County, and 15.1% for California. As of March 2020, before COVID, the comparative rates were 3.7%, 5.6% and 5.1% which demonstrates how steep and sudden the impact of COVID was in many areas. Many businesses were closed as a result of the emergency orders. These closures also have an impact on city revenue. Sales tax receipts for 2019–20 are down 13% from the prior year primarily due to decreases in the Eating/Drinking Places, Auto Dealers, and Total Business, Service and Repair categories. The Eating/Drinking category which produces the most sales tax, was hard hit by the closures. Sales tax from this category declined 24%. Transient occupancy tax (the tax on hotel stays) decreased 20.1% over 2018–19, also due to COVID closures and stay at home orders. The TOT tax rate increased from 12% to 14% on January 1, 2020 as a result of a measure placed on the ballot by City Council. Average occupancy for 2019–20 was 63.4% vs. last year’s rate of 79.1%. Hermosa Beach has eight hotels and one youth hostel, with room capacities ranging from 17 rooms to 96 rooms. Utility user tax (UUT) revenue was down 4.6% last year but is still the fourth highest source of tax revenue at $2.1 million. The largest decrease was in the category of cellular phone service. See Management’s Discussion and Analysis for more revenue details. National/State Economy. It is ironic that the country was in the longest expansion in U.S. history of 128 months just before hitting the block wall that was the pandemic. All state economies are affected by COVID-19, albeit to varying degrees. Prior to the pandemic, the Legislative Analyst’s Office stated that the state budget was in remarkably good shape and based on the estimates the reserve would reach $14.5 billion by the end of 2019–20. As the pandemic plays out, it is unknown what the final impacts will be in the long run other than that they will be pervasive and long lasting. 141 ix Accounting changes. In 2014–15 the City implemented Government Accounting Standards Board (GASB) Statement No 68, Accounting and Financial Reporting for Pensions, which required net pension liabilities to be included in the financial statements for the first time, and Statement No 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which was essentially a cleanup provision. Net pension liabilities of $48,986,913 were recorded in 2019–20 and the unrestricted net position was reduced accordingly. The change in accounting standards impacted only the government-wide financial statement, notes, and required supplemental information. There is no impact to the fund financial statements. See Note 9 for more information. In 2017–18 the City implemented GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, effective July 1, 2017, which requires net OPEB liabilities to be included in the financial statements for the first time. GASB 75 updates Other Postemployment Benefit (OPEB) accounting and financial reporting standards to be consistent with the pension standard in GASB 68. Similar to GASB 68, the change in accounting standards impacted only the government-wide financial statement, notes, and required supplemental information. There is no impact to the fund financial statements. See Note 10 for more information. As a matter of record, the following GASB statements are effective for the June 30, 2020 financial statements, but have no impact. GASB Statement 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and local governments. GASB Statement 90, Majority Equity Interest, improves the consistency and comparability of reporting a government’s majority interest in a legally separate organization and improves the relevance of financial statement for certain component units. For more information see Note 1, Section Q- Accounting Changes. California Public Employees Retirement System (CalPERS). The preliminary CalPERS investment return as of June 2020 was 4.7% and the funded status of the overall CalPERS fund was 70.8%. This estimate is based on a 7% discount rate. On December 20, 2016, the CalPERS Board approved a change in the discount rate from 7.5% to 7% over three years. The change is implemented over a three year period beginning in 2018-19. Lowering the discount rate, also known as the assumed rate of investment return, means that employers will see increase to contribution rates and higher unfunded liability payments. The City’s miscellaneous and safety plans had side funds (which are liabilities that existed in 2003 when CalPERS “pooled” the City’s plans with other cities of similar size) paid off from 2018-19 to 2019-20 and will help mitigate the rate increases. In December 2017, the CalPERS Board adopted new actuarial assumptions based on the 2017 CalPERS Experience Study and Review of Actuarial Assumptions, which impacted the 2019–20 required contributions. In February 2018, CalPERS adopted a new amortization policy. The new policy applies only to newly established amortization bases and requires fixed dollar (level) amortization rather than % of pay (escalating). Gains and losses are amortized over 20 rather than 30 year, with a five-year ramp up for investment gains and losses (no ramp down) and no ramp up or down for other amortization bases. The policy minimizes total interest paid over time and pays off UAL faster. It is effective with the June 30, 2019 valuation for 2021–22 contributions. The City’s independent actuary projects that over the next ten year the City’s pension rates will continue increase by 1-2% per year for the Miscellaneous plans and by 1-4% per year for the Safety plans. The City created a Retirement Stabilization Fund in 2003-04 to plan for anticipated rate increases. This amount now appears as part of the “committed” balance in the General Fund in the amount of $1,021,575. Long-term financial planning. The City’ adopted financial policies address a range of items including accounting and reporting, internal controls, budget, revenue, debt service and investments. The policies are published in the budget and reviewed annually. 142 x The City Council’s adopted financial policies relating to long-term financial planning for specific funds are as follows: Insurance Fund—Goal of $3,000,000 in net assets for aberrations in claims reserves and catastrophic losses. Equipment Replacement Fund—Goal of net assets equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Contingency—Goal equal to 16% of the General Fund appropriations for economic uncertainties, unforeseen emergencies. Compensated Absences—Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time. The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, Capital Improvement Fund, Capital Facility Reserve, and to add to Contingency Funds as needed. The City Council makes changes as necessary to the year- end transfer, depending on the equity in the funds or based on other needs. The City had unspent funds of $1,751,727 in 2019-20. Due to the economic uncertainty related to the COVID-19 pandemic. The City Council agreed to leave the unspent funds in the General Fund, with recommendations for use of the funds to be presented as a part of the 2021–22 Preliminary Budget. Historically as part of the budget process, a five year financial forecast is developed and presented with the Preliminary Budget and Five-Year Capital Improvement Program. The Fiscal Health Model is used as part of the forecast to present scenarios depicting the city’s ability to fund each scenario. Primary capital projects coming up, (other than street and sewer improvements, which occur every year) include Bus Stop Improvements, PCH Mobility Improvement Project, Strand Bikeway and Walkway Improvements at 35th Street, Pedestrian Crossing Safety Improvements, Prospect Ave Curb Ramps, City Wide ADA Improvements, Downtown Lighting Improvements, Downtown Strategic Plan Implementation, New Corporate Yard Facility, Municipal Pier Structural and Electrical Repairs, City Park Restrooms and Renovations, Council Chambers Audiovisual Improvements, Parking Lot D improvements, Emergency Operations Center Renovations, Clark Building Renovations, 14th Street Beach Restroom Construction, Parking Lot A Improvements, Police Station Improvements, and ADA Improvements. Cash management policies and practices. Temporarily idle cash was invested during the year in obligations of the U.S. Treasury, corporate notes, certificates of deposit, the State Treasurer's investment pool and the Los Angeles County pool. The average maturity was 60 months, with an average weighted yield on investments of 2.1% Investment income includes changes in the fair value of investments. Changes in fair value during the current year, however, do not necessarily represent trends that will continue nor do such amounts necessarily become realized, since the City intends to hold the investments to maturity. Risk management. The City is self-insured up to $250,000 for liability claims. Through a blend of self- insurance and reinsurance, the City has excess coverage up to $40 million is obtained through the Independent Cities Risk Management Authority (ICRMA), a joint powers authority consisting of medium- sized California municipalities. The cost of the insurance depends on both the loss experience of member cities, the loss experience of the City and the City’s payroll size. The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA, with excess coverage through Safety National Casualty Co., providing coverage up to the statutory limits. 143 xi Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the Human Resources Manager. Additional information on the City’s risk management activity can be found in Note 8 of the notes to the financial statements. Pension and other post-employment benefits. The City provides pension benefits to safety and non- safety employees through the California Public Employees Retirement System (CalPERS). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The City was successful in negotiating two tier rates for new employees in all bargaining units beginning in 2011-12. With the State’s pension reform implemented January 1, 2013, the City now has three tiers. As of June 30, 2020, the City has fifty-one (51) active Tier 1 employees, eighteen (18) active Tier 2 employees and sixty-nine (69) active employees in Tier 3. The City paid employee contributions as a negotiated benefit for many years however in 2012-13 the City negotiated that employees would begin paying the entire share of the employee contribution over three years with an offsetting increase in salaries, which was achieved as of 2014-15. All of these changes enacted reduce pension costs over time. City employer contributions are actuarially determined on an annual basis. The City also provides post-employment health care benefits for certain retirees. As of the end of the current fiscal year, there were 70 retirees receiving these benefits. The City established a trust with an outside party to administer these funds in July 2007. The City is contributing the annual required contribution for all employees as determined by an actuarial study in the manner as is done for retirement contributions to CalPERS. The concept of a retirement trust was approved by City Council in June 2018 and $829,060 from the Police side fund payoff savings was set aside in the 2019–20 to be placed in the retirement trust. Additional information on the City of Hermosa Beach’s pension arrangements and other post- employment benefits can be found in Notes 9 and 10 in the Notes to the Basic Financial Statements. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a 2018 Certificate of Achievement for Excellence in Financial Reporting to the City of Hermosa Beach for its comprehensive annual financial report for the fiscal year ended June 30, 2019. This was the twenty-ninth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a report must be published that satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to the City Manager and all of the departments, including the City Clerk and City Treasurer, and to our auditors, Gruber and Associates, for their assistance and support in preparation of the report. Credit also must be given to the Mayor and the City Council for their continuing support for maintaining the highest standards of professionalism in the management of the City of Hermosa Beach’s finances. Respectfully submitted, Viki Copeland Finance Director 144 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Hermosa Beach California For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 Executive Director/CEO xii 145 CITY OF HERMOSA BEACH ORGANIZATIONAL CHART ELECTORATE CITY COUNCIL PLANNING COMMISSION PUBLIC WORKS COMMISSION BOARD OF APPEALS PARKS & RECREATION ADVISORY COMMISSION CITY TREASURER CITY MANAGER CITY MANAGER’S OFFICE POLICE CITY ATTORNEY CITY PROSECUTOR CIVIL SERVICE BOARD CITY CLERK DEPARMENT COMMUNITY DEVELOPMENT COMMUNITY RESOURCES FINANCE HUMAN RESOURCES/RISK MANAGEMENT PUBLIC WORKS BUILDING AND SAFETY Plan Checking; Field Inspection; Code Enforcement PLANNING Current Planning; Advanced Planning; Sustainability Planning; Environmental Assessment; Land Use Entitlements Custodian of Public Records + Information; Maintenance of City Codes; Publication of Legal Notices; Elections Management; BID Management; Administration of Oaths; Notary Services GENERAL OPERATIONS City Council Support; Communications + Community Engagement; Legislative Affairs; Performance Mgmt.; Grant Management; Economic Development; Environmental Programs; Special Projects/Initiatives; Emergency Management; Information Technology; Fire Services (contract LA Co FD) RECREATION Facility Reservations; Community Theatre; Athletic Programming; Excursions & Senior Programs YOUTH PROGRAMS After School Programs; Summer Camps PERMITTING Special Events; Filming; Outdoor Fitness Instruction FINANCE ADMINISTRATION Budget; Accounting; Payroll FINANCE CASHIER Citation Processing; Animal Licenses; Parking Permits; Business Licenses; Bus Passes HUMAN RESOURCES Recruitment; Training; Labor Relations RISK MANAGEMENT Worker’s Comp; Liability Claims; City Insurance; Administrative Support FIELD OPERATIONS Patrol Bureau; Traffic Bureau; Community Lead INVESTIGATIVE & SUPPORT SERVICES Detective Bureau; Administration; Police Service Officers COMMUNITY SERVICE Parking Enforcement; Animal Control; Community Safety Programs; Volunteers In Policing ENGINEERING Plan Checks; Field Inspection; Code Enforcement; Traffic Engineering; Signals/Signage; Speed Survey; Capital Improvement Program MAINTENANCE Landscaping; Irrigation; Street; Sewers; Storm Drains; Building Maint.; Vehicle Maint. xiii 146 xiv PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2020 Elected and Administrative Officials City Council Mary Campbell, PhD Mayor Justin Massey Mayor Pro Tem Stacey Armato Councilmember Michael Detoy Councilmember Hany Fangary Councilmember Other Elected Official Karen Nowicki City Treasurer Administrative Officials Suja Lowenthal City Manager Eduardo Sarmiento City Clerk Ken Robertson Community Development Director Kelly Orta Community Resources Manager Viki Copeland Finance Director Vanessa Godinez Human Resources Manager Paul LeBaron Police Chief Marnell Gibson Public Works Director 147 To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Independent Auditors’ Report We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (the “City”), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 438 Old Newport Blvd – Newport Beach, CA 92663 Phone (949) 346-2900 – Fax (714) 901-0024 – www.gruber-inc.com 1 148 To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Page 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedule-General Fund, Budgetary Comparison Schedule-Sewer Special Revenue Fund, Budgetary Comparison Schedule-Capital Improvements Capital Projects Fund, Schedule of Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions - Pension, Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of City’s Contribution - OPEB on pages 7 to 16 and 84 to 92, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual, and Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual are fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 2 149 To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Newport Beach, California March 26, 2021 3 David L. Gruber and Associates, Inc. David L. Gruber and Associates, Inc. 150 This page intentionally left blank. 4 151 5 Management's Discussion and Analysis As management of the City of Hermosa Beach, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with additional information (particularly with respect to the effect of COVID- 19 on financial condition) that is furnished in the letter of transmittal, which can be found on pages v - xii of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Hermosa Beach exceeded its liabilities and deferred inflows of resources at the close of the last fiscal year by $60,555,725 (net position). Excluding the $48,986,913 net pension liability, $36,586,493 represents unrestricted net position and may be used to meet the government's ongoing obligations. • The City’s net position decreased by $35,580. • As of June 30, 2020, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $35,701,620, an increase of $2,357,743 in comparison with the prior year. This increase is due to revenue exceeding expenditures by $1,040,993 in the current year and transfers in of $1,316,750 from the insurance fund.  At the end of the current fiscal year, the City of Hermosa Beach’s governmental fund balances of $35,701,620 are comprised of non-spendable funds; $515,361, restricted; $7,128,634 committed; $3,342,514; and assigned; $23,212,550 to indicate that funds are not available for new spending. Although funds are shown in the committed or assigned category, the City Council still does have discretion over the use of these funds and may change the committed or assigned use. Under that scenario, approximately 74%, or $26,555,064 of the $35,701,620 in funds could be redirected at the discretion of the City Council. An additional $1,502,561 or 4% is unassigned. See Note 11 in the Notes to the Basic Financial Statements.  At the end of 2019–20, $1,751,727 of unspent funds remained in the General Fund. Due to the economic uncertainty from the ongoing COVID-19 pandemic, unspent funds were not transferred to another fund at the end of the fiscal year. The General fund also has a committed and assigned fund balance of $10,553,486 or 29% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Hermosa Beach’s basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements are designed to provide readers with a broad overview of the City of Hermosa Beach’s finances, in a manner similar to a private-sector business. 152 6 The Statement of Net Position presents information on all of the City of Hermosa Beach’s assets plus deferred outflows or resources (“DOR”) and liabilities plus deferred inflows of resources (“DIR”), with the difference between the assets plus DOR and liabilities plus DIR reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating. The Statement of Activities presents information showing how the government's net positions changed during the most recent fiscal year. All changes in net positions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave). The governmental activities of the City of Hermosa Beach include legislative and legal, general government, public safety, public works, community development, and culture and recreation. The government-wide financial statements include not only the City of Hermosa Beach itself, but also the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive and Beach Drive Utility Underground Districts. Although these entities are legally separate, they function for all practical purposes as part of the City, and therefore have been included as an integral part of the primary government. The Government-Wide Financial Statements can be found on pages 19-22 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hermosa Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hermosa Beach maintains twenty-nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the following funds, which are considered to be a major fund: 153 7 General Fund Grant Special Revenue Fund Sewer Special Revenue Fund Capital Improvement Capital Projects Fund Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets and DOR or liabilities and DIR are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the corresponding total for all governmental and enterprise funds combined. Data from the other twenty-six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Supplementary Information section in this report. The City of Hermosa Beach adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund, Grant Special Revenue Fund, Sewer Special Revenue Fund, and Capital Improvement Capital Projects Fund, in the Required Supplementary Information section to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 25-31 of this report. Proprietary funds. The City of Hermosa Beach maintains one type of proprietary fund. Internal service funds are used to accumulate and allocate costs internally among the City of Hermosa Beach’s various functions. The City of Hermosa Beach uses internal service funds to account for its fleet of vehicles, information systems and equipment, and risk management/insurance activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 35-37 of this report. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Hermosa Beach’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Funds of the Lower Pier Avenue, Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Undergrounding Districts are held as fiduciary funds. The fiduciary fund financial statements can be found on page 41 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 47-82 of this report. Required supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information 154 8 concerning the City of Hermosa Beach’s major funds. Required supplementary information can be found on pages 84-92 of this report. Other supplementary information. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information. Other supplementary information can be found on pages 97-142 of this report Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2020, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $60,555,725. Without the net pension liability of $48,986,913, the net position would be $109,542,638. The City implemented GASB 68, Accounting and Financial Reporting for Pensions for the June 30, 2015 financial statements and GASB 75, Accounting and Financial Reporting for Postemployment Benefits, for June 30, 2018 financial statements, which require the City to include its net pension and OPEB liabilities in the government-wide financial statements for the first time. Similar to the City’s long-term debt, the net pension and OPEB liabilities are payable over an extended time horizon and do not represent a claim on current financial resources. The statements implement changes to accounting and reporting; they do not apply to the way pensions or other postemployment benefits are funded. For more information on the implementation of GASB 68 and 75, please refer to Notes 9 and 10 in the Notes to the Basic Financial Statements. While the city is now required to show the net pension and OPEB liabilities in the government-wide statements, according to the Governmental Finance Officers Association (GFOA) the underlying factual situation has not changed. Standard and Poor’s (the rating agency who rated the City’s bonds) indicated that GASB 68 will lead to more conservative liability estimates and provide some additional disclosure. They will continue to focus on commitment to funding, investment performance, trend analysis, affordability, and maintaining plan sustainability. The Annual Required Contribution (ARC) for pension will continue to be reported as the Actuarially Determined Contribution. Standard and Poor’s believes this is an easily recognizable and understandable measure for governments. They currently estimate with what frequency governments fully fund their ARC (which Hermosa Beach does 100% of the time). The major components of GASB 68 and GASB 75 that affect the Statement of Net Position for Government-wide are:  Deferred Outflows of Resources- Includes the deferred pension and OPEB contribution, which is equal to the total amount of the 2018-19 contributions. The contributions are deferred to 2020–21 because the net liability balance is one year in arrears. Also includes changes in assumptions, the difference between projected and actual investment earrings and the difference between the employer contributions and the employer’s proportionate share of contributions (for pensions).  Net Pension and Net OPEB Liabilities (recorded in Long-Term Liabilities) - Represents the actuarially valued liabilities Plans as of June 30, 2019.  Deferred Inflows of Resources- Includes changes in assumptions, the difference between the expected and actual earnings on investments (amortized on a straight-line basis over five years), changes in employer’s proportion (for pensions), and differences between employer contributions and the employer’s proportionate share of contributions (for pensions). 155 9 The largest portion of the City of Hermosa Beach’s net position, $66,556,499 reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. A portion of the City of Hermosa Beach’s net position $6,399,646 represents resources that are subject to external restrictions on how they may be used. Compliance with GASB 68 and GASB 75 require that the City’s net pension and OPEB liabilities are recorded on the Statement of Net Position, which reduces unrestricted net position and creates a negative unrestricted net position or deficit of ($12,400,420). Excluding the $48,986,913 net pension liability $36,586,493 is available to meet the City’s ongoing obligations to residents. At June 30, 2020, the City is able to report positive balances in all categories of net position for the government as a whole except for unrestricted due to the implementation of GASB 68 and the inclusion of the net pension liability, which will likely remain a long-term liability for several decades. The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ending June 30, 2020 and June 30, 2019. Governmental Activities. Governmental activities decreased the City of Hermosa Beach’s net position by $35,580. Significant elements of this change are as follows: 2020 2019 Current and Other Assets 55,301$ 55,809$ Noncurrent Assets 67,108 64,376 Total Assets 122,409 120,185 Deferred Outflows of Resources 12,840 15,595 Current Liabilities 6,453 8,877 Noncurrent Liabilities: Net Pension Liability 48,987 47,589 Long‐term Liabilities‐ Other 15,660 15,921 Total Liabilities 71,100 72,387 Deferred Inflows of Resources 3,593 2,802 Net Position: 60,556 60,591 Net Invested in Capital Assets 66,556 64,376 Restricted 6,400 5,057 Unrestricted (12,400) (8,842) Total Net Position 60,556 60,591 Net Position June 30, 2020 (dollars in thousands) Governmental Activities 156 10 Revenue for Governmental Activities  Total program revenues increased by $218,834 or 1.7% over the prior year.  Property tax revenue increased $944,656 or 5%, which is in line with continued growth in property values.  Sales Tax revenue decreased by $410,843 or 13%. Sales tax is slightly lower primarily due to decreases in the Eating/Drinking Places, Auto Dealers, and Total Business, Service and Repair categories. Businesses in the Eating/Drinking Places category and Auto Dealers are particularly impacted by COVID-19.  Transient Occupancy Tax (TOT) revenue decreased $651,539 or 20.1%. Reported occupancy rates were down 15.7%, from 79.1% for 2018–19 to 63.4% in 2019–20. The State Stay at Home order due to COVID-19 impacts this category as well.  Utility User Tax was down by $101,912 or 4.6%. The largest source for the decrease was cellular phone service.  Charges for Services decreased $701,893 or 7.2%. Parking revenue was down due to restrictions and later, the closure of the beach, Pier and parking lot closures. Revenue from contract recreation classes and other recreation programs decreased due to COVID-19 program restrictions and related stay at home orders. 2020 2019 Revenues: Program Revenues: Charges For Services 9,048$ 9,750$ Operating Grants and Contributions 3,419 2,806 Capital Grants and Contributions 834 526 General Revenues: Property Taxes 19,585 18,640 Other Taxes 9,857 10,940 Grants and Contributions Not Restricted to Specific Programs 1,829 2,347 Other 1,500 2,702 Total Revenues 46,072 47,711 Expenses: Legislative and Legal 1,644 1,741 General Government 6,024 4,762 Public Safety 25,546 23,866 Community Development 3,215 2,298 Culture and Recreation 1,867 1,755 Public Works 7,515 9,125 Interest and Fiscal Charges 296 376 Total Expenses 46,107 43,923 Increase (Decrease) in Net Position (35) 3,788 Net Position ‐ Beginning 60,591$ 56,803$ Net Position ‐ Ending 60,556$ 60,591$ Changes in Net Positions June 30, 2020 (dollars in thousands) Governmental Activities 157 11  Real Property Transfer Tax decreased $407,522 or 56.5% due to a drop in the number of transactions.  Miscellaneous revenue decreased $1,201,682 or 45%. In 2018–19, there was one-time Proposition A Fund exchange revenue of $700,000. Additionally, in 2019–20, Community Center Leases and Rentals, the Community Theater, and film permits declined due to COVID-19 related restrictions. Expenses for Governmental Activities Expenses for Governmental Activities increased by $2,184,187 or 5%. General Government expenses increased by $1,261,185 or 26.5%. The increase is due in part to the GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. In 2019–20, the City Manager’s position was filled for the full fiscal year. There were increased contract services costs related to a consultant for the TOT increase ballot measure, temporary staffing in the Finance Department due to staff out on leave, an increase in ambulance transport billing, and an increase in credit card fees reflective of a shift To online payments due to the COVID-19 related closure of City Hall. Public Safety expenses decreased by $1,680,648 or 7%. When comparing Public Safety expenditures in the Statement of Revenue, Expenditures, and Changes in Fund Balance, Public Revenues: 2020 2019 Property Taxes 19,584,959$ 18,640,303$ Charges for Services 9,048,057 9,749,950 Operating Grants & Contributions 3,419,173 2,805,669 Sales Taxes 2,722,468 3,133,311 Transient Occupancy Tax (TOT) 2,599,810 3,251,349 Other Taxes 2,440,297 2,359,952 Utility Users Taxes 2,093,903 2,195,815 Grants & Contributions not Restricted to Specific Programs 1,829,299 2,346,524 Miscellaneous 1,499,878 2,701,560 Capital Grants & Contributions 833,644 526,421 Total Revenues 46,071,488$ 47,710,854$ 158 12 Safety expenditures are down by $482,722 from 2018–19, primarily due to vacant positions in the Police Department. The decrease in salary and benefits of $1.3 million was partially offset by an increase in dispatch services costs, the annual increase to the Fire Services Contract, and a full year of payments for the Fire Facility renovation. Community Development expenses increased by $916,701 or 39.9%. The increase is primarily due to the GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. When comparing Community Development expenditures in from the Statement of Revenue, Expenditures, and Changes in Fund Balance, Community Development expenditures are up by $77,411 or 3.8% from 2018–19. Public Works expenses decreased by $1,609,811 or 17.6% due to adjustments made in the prior year for Capital Assets and due to the GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. When comparing Public Works expenditures in from the Statement of Revenue, Expenditures, and Changes in Fund Balance, Public Safety expenditures are down by $24,503 or 0.4% from 2018–19. The remaining functional expense categories had minor changes over the prior year. Legislative and Legal decreased by $96,827 or 5.6%. Culture and Recreation expenses increased by $112,383 or 6.4%. Interest and fiscal charges was decreased in 2019–20 in the amount of $80,092 or 21.3%. Financial Analysis of the Government’s Funds As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Hermosa Beach’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City of Hermosa Beach’s financing requirements. These funds are accounted for by using the modified accrual basis of accounting. Types of governmental funds reported by the City include the General Fund, Special Revenue funds, and Capital Projects funds. 159 13 As of the end of the current fiscal year, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $35,701,620, an increase of $2,357,743 in comparison with the prior fiscal year. See Note 11 for more information. The total fund balances of the governmental funds consist of the following:  Non-spendable fund balance of $515,361 represents prepaid items, primarily comprised of the July 2020 payment to the County for Fire Services.  Restricted fund balance of $7,128,634 which have restrictions imposed by external parties or enabling legislation. Funds in this category include Lighting District Funds, Gas Tax Funds, Proposition A and C Transportation Funds, Measure R and M Funds, Asset Forfeiture Funds, Supplemental Law Enforcement Funds (COPS), Fire Protection Funds, and Storm Drain Funds.  Committed fund balance of $3,342,514 which includes retirement stabilization funds and reserves for a retirement trust.  Assigned fund balance of $23,212,550 which includes the amounts to be used for specific purposes of the City, but that do not meet the criteria to be classified as restricted or committed. Funds in this category include Contingency funds (“rainy day” funds), Compensated Absences funds, Capital Projects, Capital Improvements, Capital Facilities Reserve, and Sewer funds.  Unassigned fund balance of $1,502,561, which is the unspent funds of $1,751,727 in the General Fund reduced by a due to other funds liability of $249,166 primarily for COVID-19 related claims in the FEMA Fund. The General Fund, Grant Fund, Sewer Special Revenue Fund, and Capital Improvement Capital Projects Fund qualified as major funds under the GASB Statement No. 34, Basic Financial Statements – and Management Discussion and Analysis – for State and Local Governments, reporting criteria. The General Fund balance increased in 2019–20 by $2,608,781. The fund balance increased due to $829,060 set aside for a retirement trust and $1,751,727 in unspent funds that remained in the fund balance at year end instead of being transferred to the Capital Improvement, Insurance, or Equipment Replacement Funds. Overall General Fund revenue decreased by 6.5% due to the impact of the COVID-19 pandemic. The decrease is a result of the following: a decrease in sales tax of 13.1%; a decrease in other tax revenue of 9.4%, a decrease in licenses and permits of 14.2%; a decrease in fines and forfeitures of 8.5%; a decrease in use of money and property of 58%, a decrease in charges for services of 13.4%, a decrease in miscellaneous revenue of 79.7%; and an decrease in interest earned on investments of 22.3%. The decreases were offset by an increase of 5.6% in property taxes and an increase in intergovernmental revenues of 11.9%. General Fund expenditures show a decrease of 1.2%. The decrease is primarily due to vacant positions in Public Safety and Public Works. In an effort to rebalance the 2019–20 budget after revenue declines as a result of COVID-19, 12 vacant positions were frozen for the remainder of the fiscal year, including four Public Safety Positions and four Public Works positions. Legislative and Legal expenditures were down over 2018–19 due to a change in funding sources for the litigation account. Ligation expenditures of $131,417 were funded from the General Fund in 2018– 19. In 2019–20 the expenditures were funded from the Insurance Fund. 160 14 General Fund Budgetary Highlights The COVID-19 pandemic and related stay at home orders occurred just after the initial 2020–21 budget estimates were prepared. City staff revised all revenue and reduced expenditures and supplemental request 12 staff positions were frozen for the remainder of the fiscal year. The final amended budget for revenue other than transfers decreased by 10% from the adopted budget due to projected COVID-19 impacts to revenue. Actual revenue exceeded the final budget by $1,423,530 or 3.7% for the following reasons:  Property tax was up $149,095 or 0.8%.  Other taxes were up $580,027 or 6.8% due to conservative year end estimates for TOT and Business Licenses.  Fines and Forfeitures were up $75,832 or 3.64% primarily due to administrative fines.  Charges for Services were up $487,588 or 8.6% due to conservative year end budget reductions for ambulance transports, parking meter revenue, and contract recreation classes and other recreation programs. While it is good news that actual revenue exceeded the final budget by 3.6%, revenue is still $2,679,278 below 2018–19 or 6.5%. The final amended budget for appropriations other than Transfers Out decreased over the original budget by less than 1%. Although the final budget included department reductions of $204,501, savings from frozen positions of $551,479, and other department personnel reductions of $72,651, the net change to the overall budget was less than 1% because the reductions offset appropriations added during the fiscal year. Actual expenditures other than Transfers Out were less than the final appropriations by 4.3% primarily due to unspent funds for recruitment bonuses, prospective expenditures, and ongoing updates to the General Plan and Zoning Ordinance and capital improvement projects not completed in 2019–20. Capital Asset and Debt Administration Capital assets. The City of Hermosa Beach’s net investment in capital assets for its governmental activities as of June 30, 2020, amounts to $66,556,499 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, highways, and monuments. Major capital asset events during the fiscal year included the following: Governmental Activities  8th Street Improvements of $849,810.  PCH Traffic Improvements of $354,312  Sewer Improvements of $2,259,349.  Purchase of 7 vehicles. 161 15 Additional information on the City of Hermosa Beach’s capital assets can be found in Note 6 on page 63 of this report. Sewer Fund CIP 416 Sewer Improvements- Various Location was completed in 2019–20. The sewer improvements along with the annual costs to maintain the City’s sewers resulted in a decrease in the fund balance of $1,447,206. The ending fund balance in the Sewer Fund is $5,327,584. Capital Improvement Fund Projects funded from the Capital Improvement Fund in 2019–20 include: 8th Street Improvements, Storm Drain Improvements, Citywide Park Improvements, Downtown Strategic Plan Implementation, Police Facilities Improvements, New Corporate Yard Facilities, Community Center General Improvements, Municipal Pier Electrical Repairs, Community Theater Needs Assessment, and Valley Park Restroom Renovations. The fund balance decreased by $196,444. The ending fund balance of $9,269,543 includes $953,000 set aside for the new Corporate Yard Facility and $1,267,968 in the Capital Facilities Reserve. Insurance Fund The City’s established goal for net position in the Insurance Fund is $3,000,000. The balance at June 30, 2020 was $2,643,791 due to transfers to the General Fund at year-end. At the time the Midyear Budget was prepared, the Insurance Fund was estimated to be $816,750 over the funding goal of $3,000,000. This amount was transferred to the General Fund at year end. An additional $500,000 was transferred to the General Fund based on preliminary conversations with the actuary preparing the annual reports for Liability and Worker’s Compensation claims estimates. The reduction in claims was lower than anticipated when the final report was received, resulting in the ending balance of $2,643,791. Economic Factors and Next Year's Budgets and Rates  On April 25, 2017, the City Council voted to contract fire services in Hermosa Beach with the Los Angeles County Consolidated Fire District. The 2020–21 Budget includes the third full year with the County, equipment conversion costs, and payments for the renovation of the Fire Department facility. The 2020–21 Budget also includes the following: o $6,212,416 is committed for Contingency in the General Fund, which is 16% of operating expenditures and in line with our financial policy and the Council goal for a “Financially Sound City Government”. No funds from the Contingency were used to offset any impact of COVID-19. o $1,751,727 in unspent funds is set aside rather than transferred with the use to be considered as part of the 2021 – 2022 budget process. o $785,712 is transferred from the General Fund for the 2015 Lease Revenue Bonds debt service. o $17.8 million of Capital Improvement Projects are funded, which includes $7.6 million in new funding. CIP projects will continue to move forward. 162 16 o Healthcare benefits are assumed to increase 9% for medical and 7% for dental. The actual rates are typically lower than the assumed increase. Revenue Trends and Assumptions Departments were instructed to project revenue and expenditures with the assumption that COVID- 19 would continue through December 2020 when revising their 2020 – 2021 budget requests. These estimates are always reviewed at Midyear Budget Review in February. The revised 2019 – 2020 Budget projected a decrease of 11% in General Fund revenue. The actual decrease was only 6.5%. The projected decrease for the 2020 – 2021 Budget is 16%. Fortunately, property tax, which is the largest and most stable source of revenue is projected to increase by 4.8%. It is likely that sales tax and TOT revenue will continue to decline however much depends on COVID-19. Sales tax is estimated to decline by 13% and TOT is estimated at an occupancy of 30%, which is consistent with occupancy at the time the budget was developed. The City Council adopted several measures to assist the community and businesses early on during the stay at home order.  Business License renewal dates were extended to June 30 and business taxes due were deferred, with penalties and interest waived, for businesses that were closed in March as a result of the order.  Parking permit renewal dates were extended and parking citation late fees were delayed.  Restaurant encroachments fees were suspended until further notice.  Enforcement of street sweeping was suspended through June 15th.  Temporary permits were developed for outdoor dining and outdoor dining areas were expanded to assist restaurants.  Temporary moratoriums on foreclosures and evictions were implemented for those affected by COVID-19. Even with the uncertainty of COVID-19, no staff was laid off and contingency funds were not used to balance the 2020–21 budget. The City’s goal is to continue offering the same level of service, to the degree possible, that the community expects. Requests for Information This financial report is designed to provide a general overview of the City of Hermosa Beach’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 1315 Valley Drive, Hermosa Beach, CA 90254. 163 BASIC FINANCIAL STATEMENTS 17 164 GOVERNMENT-WIDE FINANCIAL STATEMENTS 18 165 Primary Government Governmental Activities ASSETS Current assets: Cash and investments 49,484,854$ Accounts receivable 3,170,511 Property taxes receivable, net 912,464 Reimbursable grants receivable 615,431 Interest receivable on investments 59,740 Other assets 1,058,059 Total current assets 55,301,059 Noncurrent assets: OPEB net asset 551,436 Capital assets: Non-depreciable 27,582,462 Depreciable, net 38,974,037 Total capital assets 66,556,499 Total noncurrent assets 67,107,935 Total assets 122,408,994 DEFERRED OUTFLOWS OF RESOURCES Pension related deferred outflows of resources 10,755,221 OPEB related deferred outflows of resources 2,084,988 Total deferred outflows of resources 12,840,209 CITY OF HERMOSA BEACH Statement of Net Position June 30, 2020 See accompanying notes to the basic financial statements. 19 166 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,387,731 Accrued salaries and benefits payable 791,615 Refundable deposits 87,797 Unearned revenue 72,901 Interest payable 49,702 Workers' compensation claims payable - due within one year 809,160 General liability claims payable - due within one year 456,359 Compensated absences - due within one year 1,287,659 Long-term debt - due within one year 510,384 Total current liabilities 6,453,308 Noncurrent liabilities: Workers' compensation claims payable - due in more than one year 3,868,172 General liability claims payable - due in more than one year 763,041 Compensated absences - due in more than one year 1,491,541 Long-term debt 9,537,124 Aggregate net pension liability 48,986,913 Total noncurrent liabilities 64,646,791 Total liabilities 71,100,099 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows of resources 3,338,167 OPEB related deferred inflows of resources 255,212 Total deferred inflows of resources 3,593,379 NET POSITION Net investment in capital assets 66,556,499 Restricted for: Capital projects 1,336,620 Street and sewer purposes 1,733,258 Transportation purposes 1,747,399 Public works 214,824 Public safety 990,116 Cultural and recreation 370,285 Undergrounding districts 7,144 Total restricted 6,399,646 Unrestricted (Deficit) (12,400,420) Total net position 60,555,725$ CITY OF HERMOSA BEACH Statement of Net Position (Continued) June 30, 2020 See accompanying notes to the basic financial statements. 20 167 Operating Capital Total Charges for Grants and Grants and Program Expenses Services Contributions Contributions Revenue Primary Government: Governmental activities: Legislative and legal 1,644,044$ -$ -$ -$ -$ General government 6,023,648 685,320 247,066 7,753 940,139 Public safety 25,546,098 4,857,617 476,643 - 5,334,260 Community development 3,215,102 1,532,538 219,726 - 1,752,264 Cultural and recreation 1,867,143 546,379 - 20,000 566,379 Public works 7,515,310 1,426,203 2,475,738 805,891 4,707,832 Interest and fiscal charges 295,723 - - - - Total governmental activities 46,107,068$ 9,048,057$ 3,419,173$ 833,644$ 13,300,874$ CITY OF HERMOSA BEACH Statement of Activities For the Year Ended June 30, 2020 Functions/Programs Program Revenues See accompanying notes to the basic financial statements. 21 168 Net (expense) Revenue and Changes in Net Position Primary Government: Governmental activities: Legislative and legal (1,644,044)$ General government (5,083,509) Public safety (20,211,838) Community development (1,462,838) Cultural and recreation (1,300,764) Public works (2,807,478) Interest and fiscal charges (295,723) Total governmental activities (32,806,194) General revenues: Taxes: Property taxes 19,584,959 Sales taxes 2,722,468 Real property transfer tax 313,331 Franchise fees 717,191 Transient occupancy tax 2,599,810 Business license 1,162,017 Utility users tax 2,093,903 ½ cent sales tax for public safety 239,965 Other taxes 7,793 Total taxes 29,441,437 Grants and contributions not restricted to specific programs 1,829,299 Miscellaneous 1,499,878 Total general revenues 32,770,614 Change in net position (35,580) Net position - beginning of year 60,591,305 Net position - end of year 60,555,725$ Functions/Programs CITY OF HERMOSA BEACH Statement of Activities (Continued) For the Year Ended June 30, 2020 See accompanying notes to the basic financial statements. 22 169 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 23 170 GOVERNMENTAL FUND FINANCIAL STATEMENTS The Governmental Funds of the City are outlined below: General Fund - The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works. Grants Special Revenue Fund - This fund is used to support eligible public service agencies. Sewer Special Revenue Fund - This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Capital Improvement Capital Projects Fund - Funds set aside for capital improvement projects. Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds. 24 171 Grants Sewer Special Special Revenue Revenue General Fund Fund Cash and investments 12,498,576$ 539,885$ 5,352,439$ Accounts receivable 2,392,725 277,691 63,213 Property taxes receivable, net 878,235 - 22,624 Reimbursable grants receivable - 348,257 - Interest receivable on investments 42,806 - 4,158 Other assets 1,040,352 - 728 Due form other funds 172,280 - - Total assets 17,024,974$ 1,165,833$ 5,443,162$ Liabilities: Accounts payable and accrued liabilities 946,612$ 740,054$ 84,995$ Accrued wages and benefits payable 686,671 - 5,880 Refundable deposits 87,797 - - Unearned revenues 50,401 - - Due to other funds - - - Compensated absences, due within one year 1,252,385 47 2,079 Total liabilities 3,023,866 740,101 92,954 Deferred Inflows of Resources: Unavailable revenue 878,235 - 22,624 Total deferred inflows of resources 878,235 - 22,624 Fund Balances: Nonspendable 499,454 - 728 Restricted 318,206 425,732 - Committed 1,937,335 - - Assigned 8,616,151 - 5,326,856 Unassigned 1,751,727 - - Total fund balances 13,122,873 425,732 5,327,584 Total liabilities, deferred inflows of resources and fund balances 17,024,974$ 1,165,833$ 5,443,162$ CITY OF HERMOSA BEACH ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Major Funds Governmental Funds June 30, 2020 Balance Sheet See accompanying notes to the basic financial statements. 25 172 Major Funds Capital Improvements Capital Nonmajor Projects Governmental Fund Funds Total Cash and investments 9,083,705$ 7,855,263$ 35,329,868$ Accounts receivable - 432,770 3,166,399 Property taxes receivable, net - 11,605 912,464 Reimbursable grants receivable - 267,174 615,431 Interest receivable on investments 7,992 4,784 59,740 Other assets - 15,179 1,056,259 Due form other funds 248,946 - 421,226 Total assets 9,340,643$ 8,586,775$ 41,561,387$ Liabilities: Accounts payable and accrued liabilities 19,634$ 291,279$ 2,082,574$ Accrued wages and benefits payable 51,466 24,933 768,950 Refundable deposits - - 87,797 Unearned revenues - 22,500 72,901 Due to other funds - 421,226 421,226 Compensated absences, due within one year - 7,344 1,261,855 Total liabilities 71,100 767,282 4,695,303 Deferred Inflows of Resources: Unavailable revenue - 263,605 1,164,464 Total deferred inflows of resources - 263,605 1,164,464 Fund Balances: Nonspendable - 15,179 515,361 Restricted - 6,384,696 7,128,634 Committed - 1,405,179 3,342,514 Assigned 9,269,543 - 23,212,550 Unassigned - (249,166) 1,502,561 Total fund balances 9,269,543 7,555,888 35,701,620 Total liabilities, deferred inflows of resources and fund balances 9,340,643$ 8,586,775$ 41,561,387$ ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES CITY OF HERMOSA BEACH Balance Sheet (Continued) Governmental Funds June 30, 2020 See accompanying notes to the basic financial statements. 26 173 Total Fund Balances - Total Governmental Funds 35,701,620$ Nondepreciable, net of Internal Service Fund of $195,245 27,387,220$ Depreciable, net of Internal Service Fund of $3,283,032 35,691,002 Total capital assets 63,078,222 Insurance Fund 2,643,791 Equipment Replacement Fund 8,745,026 Total Internal Service Funds 11,388,817 1,164,464 Lease revenue bonds and premium (10,047,508) Interest payable (49,702) (1,491,541) (11,588,751) Pension related deferred outflows of resources 10,755,221 Pension related deferred inflows of resources (3,338,167) (48,986,913) OPEB related deferred outflows of resources 2,084,988 OPEB related deferred inflows of resources (255,212) 551,436 Net position of governmental activities 60,555,725$ CITY OF HERMOSA BEACH Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position June 30, 2020 Amounts reported for governmental activities in the Statement of Net Position were reported differently because: Deferred amounts relates to pension not available for current expenditures and are not reported in the governmental fund financial statements: Net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds. Deferred amounts relates to other postemployment benefits not available for current expenditures and are not reported in the governmental fund financial statements: Net OPEB asset is not due and payable in the current period and therefore is not reported in the governmental funds. Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-wide Statement of Net Position. Revenues in the Government-wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position: Compensated absences, net of $25,804 reported in Internal Service fund and $1,2610,855 reported in accrued payroll See accompanying notes to the basic financial statements. 27 174 This page intentionally left blank. 28 175 Major Funds Grants Sewer Special Special Revenue Revenue General Fund Fund REVENUES: Property taxes 19,119,818$ -$ -$ Other taxes 9,148,685 - - Licenses and permits 729,622 - - Fines and forfeitures 2,160,244 - - Use of money and property 663,616 - - Intergovernmental 128,680 153,030 10,222 Charges for services 6,139,719 - 1,109,736 Miscellaneous 84,835 569,466 - Interest earned on investments 368,071 - 229,301 Total revenues 38,543,290 722,496 1,349,259 EXPENDITURES: Current: Legislative and legal 1,300,018 - - General government 4,554,234 12,500 - Public safety 21,459,563 74,286 - Community development 2,039,680 66,618 - Culture and recreation 1,521,029 - - Public works 5,342,252 48,139 396,826 Capital outlay 411,204 601,936 2,399,639 Debt service: Principal - - - Interest and fiscal charges - - - Total expenditures 36,627,980 803,479 2,796,465 REVENUES OVER (UNDER) EXPENDITURES 1,915,310 (80,983) (1,447,206) OTHER FINANCING SOURCES (USES): Transfers in 2,312,036 - - Transfers out (1,618,565) - - Total other financing sources (uses) 693,471 - - NET CHANGE IN FUND BALANCE 2,608,781 (80,983) (1,447,206) Fund balances, beginning of year 10,514,092 506,715 6,774,790 Fund balances, end of year 13,122,873$ 425,732$ 5,327,584$ Statement of Revenues, Expenditures, and Changes in Fund Balances CITY OF HERMOSA BEACH Governmental Funds For the Year Ended June 30, 2020 See accompanying notes to the basic financial statements. 29 176 Major Funds Capital Improvements Capital Nonmajor Projects Governmental Fund Funds Total REVENUES: Property taxes -$ 453,536$ 19,573,354$ Other taxes - 2,040,123 11,188,808 Licenses and permits - - 729,622 Fines and forfeitures - 77,558 2,237,802 Use of money and property - 405,433 1,069,049 Intergovernmental - 1,041,950 1,333,882 Charges for services - 96,762 7,346,217 Miscellaneous 11,245 8,000 673,546 Interest earned on investments 315,587 260,166 1,173,125 Total revenues 326,832 4,383,528 45,325,405 EXPENDITURES: Current: Legislative and legal - - 1,300,018 General government - 284,092 4,850,826 Public safety - 142,202 21,676,051 Community development - 34,615 2,140,913 Culture and recreation - 66,864 1,587,893 Public works - 945,053 6,732,270 Capital outlay 524,016 1,269,539 5,206,334 Debt service: Principal - 480,000 480,000 Interest and fiscal charges - 310,107 310,107 Total expenditures 524,016 3,532,472 44,284,412 REVENUES OVER (UNDER) EXPENDITURES (197,184) 851,056 1,040,993 OTHER FINANCING SOURCES (USES): Transfers in 593,740 1,024,826 3,930,602 Transfers out (593,000) (402,287) (2,613,852) Total other financing sources (uses) 740 622,539 1,316,750 NET CHANGE IN FUND BALANCE (196,444) 1,473,595 2,357,743 Fund balances, beginning of year 9,465,987 6,082,293 33,343,877 Fund balances, end of year 9,269,543$ 7,555,888$ 35,701,620$ CITY OF HERMOSA BEACH Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds For the Year Ended June 30, 2020 See accompanying notes to the basic financial statements. 30 177 Net Change in Fund Balances - Total Governmental Funds 2,357,743$ Governmental activities in the Statement of Activities were reported differently because: Total capital outlay expenditures reported in governmental funds 4,863,984$ Less: repair and maintenance expenditures (266,605) Total capital outlay (net of $378,602 reported in internal service fund) 4,597,379 1,060,974 Total depreciation reported in Government-wide Statement of Activities (3,854,996) Less: depreciation reported in the Internal Service Fund 558,647 Total (3,296,349) 442,014 (4,884,751) 492,905 (181,090) 480,000 14,384 (1,118,789) Change in net position of governmental activities (35,580)$ The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position. Amortization of premium does not use current financial resources and therefore not reported as expenditures in the governmental funds. Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities. CITY OF HERMOSA BEACH Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2020 Governmental Funds report capital outlay as expenditures. However, in the Government-wide Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below. The net effect on disposal of capital assets. Depreciation expense of capital assets is reported in the Government-wide Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds expect for the Internal Service fund amount listed below. Earned but unavailable revenues reported in the governmental funds balance sheet as deferred inflows of resources should be recognized in the Government-wide Statement of Activities as revenue regardless of availability. Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Certain other postemployment benefit expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences were reported in the Government-wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds. See accompanying notes to the basic financial statements. 31 178 This page intentionally left blank. 32 179 PROPRIETARY FUND FINANCIAL STATEMENTS Internal Service Funds - To account for the costs associated with the City's insurance and for funding equipment replacement. 33 180 This page intentionally left blank. 34 181 Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments 14,154,986$ Account receivables 4,112 Other assets 1,800 Total current assets 14,160,898 Noncurrent assets: Nondepreciable capital assets 195,245 Depreciable capital assets, net of accumulated depreciation 3,283,032 Total noncurrent assets 3,478,277 Total assets 17,639,175 LIABILITIES Current liabilities: Accounts payable 305,157 Accrued wages and benefits payable 22,665 Workers' compensation claims payable - due within one year 809,160 General liability claims payable - due within one year 456,359 Compensated absences - due within one year 25,804 Total current liabilities 1,619,145 Long-term liabilities: Workers' compensation claims payable - due in more than one year 3,868,172 General liability claims payable - due in more than one year 763,041 Total long-term liabilities 4,631,213 Total liabilities 6,250,358 NET POSITION Net investment in capital assets 3,478,277 Unrestricted 7,910,540 Total net position 11,388,817$ CITY OF HERMOSA BEACH Statement of Net Position Proprietary Funds June 30, 2020 See accompanying notes to the basic financial statements. 35 182 Governmental Activities Internal Service Funds OPERATING REVENUES: Charges for services 4,620,763$ Miscellaneous revenue 203,000 Total operating revenues 4,823,763 OPERATING EXPENSES: Salaries and wages 415,940 Contract services 2,056,994 Supplies 255,639 Claims expense 1,351,230 Depreciation 558,647 Total operating expenses 4,638,450 OPERATING INCOME 185,313 NON-OPERATING REVENUES (EXPENSES): Gain on disposal of capital assets 12,648 Total non-operating revenues (expenses)12,648 INCOME BEFORE TRANSFERS 197,961 Transfers in 93,145 Transfers out (1,409,895) Total transfers (1,316,750) Change in net position (1,118,789) Net position, beginning of year, as restated 12,507,606 Net position, end of year 11,388,817$ CITY OF HERMOSA BEACH Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the year ended June 30, 2020 See accompanying notes to the basic financial statements. 36 183 Governmental Activities Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services from other funds 4,625,663$ Cash received from insurance recovery 203,000 Cash payments to suppliers for goods and services (1,203,747) Cash payments to employees for services (415,727) Cash payments for insurance premiums and claims (2,084,699) Net cash provided (used by) operating activities 1,124,490 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfers in 93,145 Transfers out (1,409,895) Net cash provided (used by) non-capital financing activities (1,316,750) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (377,231) Proceeds from sale of capital assets 12,648 Net cash provided (used by) capital and related financing activities (364,583) Net increase (decrease) in cash and cash equivalents (556,843) Cash and equivalents, beginning of year 14,711,829 Cash and equivalents, end of year 14,154,986$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH (USED BY) OPERATING ACTIVITIES: Operating income (loss) 185,313$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 558,647 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 4,900 (Increase) decrease in other assets 855 Increase (decrease) in accounts payable 68,629 Increase (decrease) in accrued wages and benefits payable (2,118) Increase (decrease) in workers' compensation claims payable (375,344) Increase (decrease) in general liability claims payable 681,268 Increase (decrease) in compensated absences 2,340 Total adjustments 939,177 Net cash provided (used) by operating activities 1,124,490$ CITY OF HERMOSA BEACH Statement of Cash Flows Proprietary Funds For the year ended June 30, 2020 See accompanying notes to the basic financial statements. 37 184 This page intentionally left blank. 38 185 FIDUCIARY FUND FINANCIAL STATEMENTS Agency Funds- are used to account for assets held by the City in the capacity of agent for individuals. Agency Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. The Agency Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 39 186 This page intentionally left blank. 40 187 Agency Funds ASSETS Cash and investments 351,075$ Interest receivable 165 Other receivable 2,648 Total assets 353,888$ LIABILITIES Assessment: Installment account 340,888$ Reserve requirement 13,000 Total Liabilities 353,888$ CITY OF HERMOSA BEACH Statement of Fiduciary Net Position Fiduciary Funds June 30, 2020 See accompanying notes to the basic financial statements. 41 188 This page intentionally left blank. 42 189 NOTES TO THE BASIC FINANCIAL STATEMENTS 43 190 This page intentionally left blank. 44 191 City of Hermosa Beach Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2020 Page Note 1 – Summary of Significant Accounting Policies .............................................................................................. 47 A. Financial Reporting Entity ........................................................................................................................... 47 B. Basis of Accounting and Measurement Focus .......................................................................................... 48 C. Cash and Investments ................................................................................................................................... 50 D. Fair Value Measurement .............................................................................................................................. 50 E. Property Taxes Receivable .......................................................................................................................... 51 F. Interfund Transactions .................................................................................................................................. 51 G. Capital Assets ................................................................................................................................................ 51 H. Unearned and Unavailable Revenue ........................................................................................................... 52 I. Claims Payable .............................................................................................................................................. 52 J. Compensated Absences Payable ................................................................................................................. 52 K. Pensions .......................................................................................................................................................... 52 L. Other Postemployment Benefits (“OPEB”) .............................................................................................. 53 M. Net Position .................................................................................................................................................... 53 N. Fund Balances ................................................................................................................................................ 53 O. Spending Policy ............................................................................................................................................. 54 P. Use of Estimates ............................................................................................................................................ 55 Q. Accounting Changes ..................................................................................................................................... 55 Note 2 – Cash and Investments ...................................................................................................................................... 56 A. Deposits .......................................................................................................................................................... 56 B. Investments ..................................................................................................................................................... 57 C. Investment in Los Angeles County Investment Pool ............................................................................... 57 D. Fair Value Measurement .............................................................................................................................. 58 E. Risk Disclosures ............................................................................................................................................ 58 Note 3 – Receivables .......................................................................................................................................................... 59 A. Government-Wide Financial Statements ................................................................................................... 59 B. Fund Financial Statements ........................................................................................................................... 59 Note 4 – Lease Revenues .................................................................................................................................................. 60 Note 5 – Interfund Transactions .................................................................................................................................... 61 Note 6 – Capital Assets ..................................................................................................................................................... 63 Note 7 – Long-Term Liabilities ...................................................................................................................................... 64 Note 8 – Risk Management ............................................................................................................................................. 64 Note 9 – Defined Benefit Pension Plans ........................................................................................................................ 66 Note 10 – Other Postemployment Benefit Plan .......................................................................................................... 75 Note 11 – Classification of Fund Balances ................................................................................................................... 79 45 192 City of Hermosa Beach Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Page Note 12 – Non-City Obligations ....................................................................................................................................... 80 Note 13 – Commitments and Contingencies ................................................................................................................. 81 A. Commitments ................................................................................................................................................. 81 B. Contingencies ................................................................................................................................................. 81 C. Grants .............................................................................................................................................................. 81 D. Ongoing Operations ...................................................................................................................................... 81 Note 14 – Subsequent Events ............................................................................................................................................ 82 46 193 City of Hermosa Beach Notes to the Basic Financial Statements For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Hermosa Beach, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies: A. Financial Reporting Entity The City was incorporated on January 14, 1907, under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (police, crossing guards and fire), maintenance and construction of public improvements, cultural, recreation, community development (planning and zoning), and general administrative services. The basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and either the City is able to impose its will on that organization or there is a potential for the organization to provide financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statement to be misleading or incomplete. Blended component units, although legally separate entities, are in substance, part of the City’s operations and data from these units are combined with data of the City. Management determined that the following entities should be reported as blended component units based on the criteria above. Each blended component unit has a June 30 year-end, has a governing board that is substantially the same as the City’s, there is a financial benefit or burden relationship between the City and the blended component unit, and the City is financially accountable for each of the blended component units. Hermosa Beach Street Lighting and Landscaping District – The Hermosa Beach Street Lighting and Landscaping Assessment District was created for street lighting/median maintenance purposes pursuant to Street and Highway Code Sections 22500-22679. Lower Pier Avenue Assessment District – The Lower Pier Avenue Assessment District was created for improvement of the assessment district in November 1997 pursuant to Street and Highway Code Section 10000. Myrtle Avenue Underground Utility District – The Myrtle Avenue Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000. Loma Drive Underground Utility District – The Loma Drive Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000. Beach Drive Assessment District – The Beach Drive Assessment District was created in July 2004 pursuant to Street and Highway Code Section 10000. Bayview Drive Underground District – The Bayview Drive Underground District was created in February 2005 pursuant to Street and Highway Code Section 10000. Hermosa Beach Public Financing Authority – The Hermosa Beach Public Financing Authority was created on July 14, 2015 to authorize the issuance and sale of 2015 Lease Revenue Bonds. The above component units do not issue separate financial statements. 47 194 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. Government-Wide Financial Statements The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements. Certain types of transactions are reported as program revenues for the City in three categories:  Charges for services Operating grants and contributions  Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated:  Due from and to other funds, which are short-term loans within the primary government  Transfers in and out, which are flows of assets between funds without the requirement for repayment 48 195 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, intergovernmental revenues and other taxes. Sales tax is received on a monthly basis. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Reconciliations of the fund financial statements to the government-wide financial statements are provided to explain the differences. The City reports the following major governmental fund: General Fund – The General Fund is the City’s principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund. Grants Special Revenue Fund – This fund is used to support eligible public service agencies. Sewer Special Revenue Fund – This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Capital Improvement Capital Projects Fund – This fund is set aside for capital improvement projects. Proprietary Fund Financial Statements Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. 49 196 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Internal service funds are the only funds presented in the proprietary fund financial statements. However, internal service balances and activities have been combined with the governmental activities in the government- wide financial statements. The internal service funds are used to account for equipment replacement and insurance provided to other City departments on a cost-reimbursement basis. Fiduciary Fund Financial Statements The City’s fiduciary funds represent agency funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The fiduciary funds are accounted for using the accrual basis of accounting. The City maintains seven fiduciary funds which represent assets resulting from assessments to the property owners in four utility undergrounding districts, two reserve funds for utility undergrounding districts and a downtown improvement district (Lower Pier Avenue). The assets are used to repay bonds secured by the private property in the district. C. Cash and Investments The City’s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes. D. Fair Value Measurement Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The three levels of the fair value measurement hierarchy are described below:  Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.  Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. 50 197 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) E. Property Taxes Receivable Property taxes attach as an enforceable lien on property as of January 1 each year. The property tax year runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year. Taxes are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (the “County”) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized, net of estimated refunds and uncollectible amounts, in the period for which the taxes are levied. The City recognizes available taxes, or those collected within 60 days, as revenue at June 30. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed valuation no more than 2% per year. The City receives a share of this basic levy, or .203 cents of each $1.00, proportionate to what it received during the years 1976 to 1978. F. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans). G. Capital Assets In the government-wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets, donated works of art or similar items, and capital assets received in a service concession arrangement are reported at acquisition value on the date donated rather than fair value. City policy has set the capitalization threshold for reporting capital assets at $5,000 and infrastructure at $100,000. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewers and storm drains, parking meters and monuments. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights and landscaping. These subsystems were not delineated in the basic financial statements. The Finance Department, with the assistance of the appropriate operating department, maintains information regarding the subsystems. Interest incurred during capital assets construction, if any, is capitalized for the proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the “Basic Approach” and depreciate over its estimated useful life. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. The lives used for depreciation purposes are as follows: Buildings 50 years Improvements other than buildings 20 years Machinery and equipment 3-20 years Infrastructure 15-50 years 51 198 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) H. Unearned and Unavailable Revenue In the government-wide and fund financial statements, unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are cell phone site license lease payments received in advance, prepaid charges for services, facility rentals paid in advance, and quarterly encroachment fees, and advance registration for recreation classes. In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports an unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available. I. Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities. J. Compensated Absences Payable City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. All of the liability for compensated absences applicable to proprietary funds is reported in those funds. The City’s goal is to accumulate 25% of the funding for the accrued liability for compensated absences in the assigned fund balance for compensated absences. Compensated absences are liquidated principally by the General Fund. K. Pensions For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 9). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: CalPERS Valuation Date June 30, 2017 Measurement Date June 30, 2018 Measurement Period July 1, 2017 to June 30, 2018 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. 52 199 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits (“OPEB”) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the plan (Note 10). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value. The following timeframes are used for OPEB reporting: OPEB Valuation Date June 30, 2018 Measurement Date June 30, 2019 Measurement Period July 1, 2018 to June 30, 2019 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. M. Net Position In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows: Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation. Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. N. Fund Balances In the governmental fund financial statements, fund balances are classified as follows: Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as inventory or prepaid items, or because resources legally or contractually must remain intact. Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation. 53 200 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) N. Fund Balances (Continued) Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment. Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose. Unassigned – Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. O. Spending Policy Government – Wide Financial Statements and Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply restricted component of net position first, then the unrestricted component of net position as needed. Governmental Fund Financial Statements When expenditures are incurred for purposes for which restricted, committed, assigned and unassigned fund balances are all available, the City’s policy is to use these balances in the following order unless an ordinance specifies the fund balance to be used: restricted, committed, assigned and unassigned. Long-term financial planning The City Council’s adopted financial policies relating to long-term financial planning for specific purposes are as follows: Insurance Fund - Goal of $3,000,000 in net position for claims reserves and catastrophic losses. Equipment Replacement Fund - Goal of net position equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Contingency - Goal equal to 16% of the General Fund appropriations for economic uncertainties, unforeseen emergencies. Compensated Absences - Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time. 54 201 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 – Summary of Significant Accounting Policies (Continued) O. Spending Policy (Continued) Long-term financial planning (Continued) The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, and Capital Improvement Capital Projects Fund and to add to Contingency funds. The City Council makes changes as necessary to the year-end transfer, depending on the equity in the funds or based on other needs. P. Use of Estimates The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Q. Accounting Changes The City adopted Statement on Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities and GASB Statement No. 90 Majority Equity Interest. Neither standard significantly impacted the City. 55 202 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 – Cash and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. The City had the following cash and investments at June 30, 2020: Government-Wide Statement of Net Position Statement of Governmental Fiduciary Activities Net Position Total Cash and investments $ 49,484,854 $351,075 $49,835,929 The City’s cash and investments at June 30, 2020 in more detail: Cash and cash equivalents: Demand deposits $13,173,652 Petty cash 2,000 Total cash and cash equivalents 13,175,652 Investments: Local Agency Investment Fund 10,270,516 Los Angeles County Pooled Investments Funds 16,829,564 Negotiable Certificates of Deposit 9.560,197 Total investments 36,660,277 Total cash and investments $49,835,929 A. Deposits The carrying amounts of the City’s demand deposits were $13,173,652 at June 30, 2020. Bank balances at that date were $14,966,080, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures, if applicable. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances, however, interest is not allocated to funds created to advance costs for utility undergrounding districts, reimbursable grant funds or internal service funds. 56 203 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 – Cash and Investments (Continued) B. Investments Under the provisions of the City’s investment policy, the City’s investments are limited to those authorized by the California Government Code, except as follows:  There is no maximum amount or maximum maturity period of the City’s idle funds that may be invested with the Local Agency Investment Fund (“LAIF”) or the Los Angeles County Pooled Investment Fund (“LACPIF”)   Negotiable Certificates of Deposit shall not exceed 30 percent of the City’s surplus money and mature in 5 years or less.   Medium-term corporate notes shall have a Moody or Standard & Poor’s rating of at least AA and mature in 5 years or less The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2020 included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the following: Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables. As of June 30, 2020, the City had $10,270,516 invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset-Backed Securities. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). C. Investment in Los Angeles County Investment Pool The City is a voluntary participant in the Los Angeles County Investment Pool pursuant to Government Code Section 53684. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Los Angeles County Investment Pool’s Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are to be performed no less than semi-annually. In accordance with Government Code Section 27136, all requests for withdrawal of funds for the purpose of investing or depositing the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. As of June 30, 2020, the City had $16,829,564 invested in the Los Angeles County Investment Pool. 57 204 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 – Cash and Investments (Continued) D. Fair Value Measurement At June 30, 2020, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within fair value hierarchy in which the fair value measurements fall at June 30, 2020: Investment Type Value Level 2 Uncategorized Local Agency Investment Fund $ 10,270,516 $-$ 10,270,516 Los Angeles County Pooled Investments Fund 16,829,564 16,829,564 - Negotiable Certificates of Deposit 9,560,197 9,560,197 - Total $ 36,660,277 $26,389,761 $ 10,270,516 E. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2020, the City had the following investment maturities: Investment Maturities (in Years) Investment Type Fair value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment Fund $ 10,270,516 $ 10,270,516 $-$- $ -$- Los Angeles County Pooled Investments Fund 16,829,564 16,829,564 -- -- Negotiable Certificates of Deposit 9,560,197 1,944,817 1,765,468 2,365,472 3,484,440 - Total $ 36,660,277 $ 29,044,897 $1,765,468 $2,365,472 $ 3,484,440 $- Credit Risk – State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to limit its investments in these investment types to the top rating issued by Standard & Poor’s and Moody’s Investor Service. At June 30, 2020, the City’s credit risks, expressed on a percentage basis, were as follows: Credit Quality Distribution for Securities with Credit Exposure as a Percentage of Total Investments Moody's S&P's % of Investments Credit Credit with Interest Investment Type Rating Rating Rate Risk Local Agency Investment Fund (LAIF)Not Rated Not Rated 28.02% Los Angeles County Pooled Investments Fund Not Rated Not Rated 45.91% Negotiable Certificates of Deposits Not Rated Not Rated 26.08% Total 100.00% 58 205 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 – Cash and Investments (Continued) E. Risk Disclosures (Continued) Custodial Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Concentration of credit risk – The City’s investment policy does not allow for investments in any one institution that is in excess of 5% of the City’s total portfolio, except for LAIF and LACIPIF, where there is no limit. The City is in compliance with the investment policy related to the concentration of credit risk for the year ended June 30, 2020. Note 3 - Receivables A. Government-Wide Financial Statements At June 30, 2020, the government-wide financial statements show the following receivables, net of allowances for uncollectible amounts, if any: Government-Wide Statement of Net Position Statement of Governmental Fiduciary Activities Net Position Total Accounts receivable $ 3,170,511 $- $ 3,170,511 Property taxes receivable, net 912,464 - 912,464 Reimbursable grants receivable 615,431 - 615,431 Interest receivable on investments 59,740 165 59,905 Other receivables -2,648 2,648 Total $ 4,758,146 $2,813 $ 4,760,959 B. Fund Financial Statements Receivables Receivables consisted of amounts accrued in the ordinary course of operations. The total amount of receivables for each major and nonmajor funds in the aggregate as of June 30, 2020, were as follows: Governmental funds: General Fund $2,392,725 Grants Special Revenue Fund 277,691 Sewer Special Revenue Fund 63,213 Nonmajor Funds 432,770 Total governmental funds 3,166,399 Total accounts receivable $3,166,399 59 206 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 3 – Receivables (Continued) B. Fund Financial Statements (Continued) Taxes Receivable At June 30, 2020, the City had property taxes receivable, net of allowance for delinquent property taxes receivables, in the following major fund and nonmajor funds in the aggregate: Allowance for Property Property delinquent tax taxes, net taxes receivables of allowance Governmental Funds: General Fund $ 1,214,534 $ (336,299) $878,235 Sewer Special Revenue Fund 39,003 (16,379)22,624 Nonmajor funds 18,544 (6,939)11,605 Total $ 1,272,081 $ (359,617) $912,464 Reimbursable Grants Receivable Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants receivable as of June 30, 2020 was as follows: Governmental Funds: Grants Special Revenue Fund $348,257 Nonmajor Governmental Funds 267,174 Total reimbursable grants receivable $615,431 Note 4 – Lease Revenues In February 2001, a 50-year lease for the retail space located in front of the North Pier Parking Structure was initiated. The City receives a monthly lease payment in the amount of $2,985. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on the consumer price index. In February 2016, the lease was increased to $3,235. In February 2004, the City entered into a 5-year lease agreement with Sprint, a cellular telephone company, for placement of an antenna on the North Pier Parking Structure. The lease includes a provision for 5 lease extensions with a 5-year term for each. In February 2009, the lease was extended through January 31, 2015. In February 2016, the lease was extended through January 31, 2020. In February 2020, the lease was extended through January 31, 2025. The City received a monthly lease payment in the amount of $3,294 to January 2020 and $3,398 from February 2020. In June 2005, the City purchased property adjacent to City Hall that is used as a self - storage facility. The existing lease for the storage facility was transferred to the City as a condition of the sale. The original lease term was through January 31, 2009, and was extended beginning February 1, 2009 to April 30, 2015 through various amendments. In April, 2015, the lease was amended to extended extend the term to April 30, 2020. In May 2020, the lease was extended through June 2025 and that lease can be terminated without cause at any time after July 2021 with one year of written notice to the City. The City receives a monthly lease payment in the amount of $15,000 to June 2020. 60 207 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 4 – Lease Revenues (Continued) In February 2014, the City entered into a 5-year lease agreement with Verizon wireless, a cellular telephone company, for the placement of 12 panel antennas and 6 remote radio units at the Municipal Parking Facility. The annual lease rate is expected to increase at a rate of 3% with base monthly payment amount of $2,400. The City received a monthly lease payment in the amount of $2,701 to February 2019 and $2,782 from March 2020. All of the above leases are accounted for as operating leases by the City. The future minimum rental revenues under these leases are as follows: Year ending June 30,Amounts 2021 380,698 2022 405,259 2023 407,547 2024 409,903 2025 303,600 2026-2030 317,831 2031-2035 315,064 2036-2040 331,117 2041-2045 347,672 2046-2050 365,056 2051 36,680 Total $3,620,427 Lease revenue for the year ended June 30, 2020 was $309,711. Note 5 – Interfund Transactions Due From/To Other Funds – At June 30, 2020, the City had the following due from/to other funds: Due From Other Funds Due To Other Funds General Capital Fund Improvements Total Nonmajor Governmental funds $ 172,280 $ 248,946 $ 421,226 Total $ 172,280 $ 248,946 $ 421,226 The above amount resulted from the time lag between the dates that reimbursable expenditures occur and payments are received from other agencies. 61 208 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 5 – Interfund Transactions (Continued) Transfers During the year ended June 30, 2020, the City had the following transfers: Transfers in Capital Improvement Capital Nonmajor Internal General Projects Governmental Service Transfers out Fund Fund Funds Funds Total General Fund $ - $ 593,740 $ 1,024,825 $ - $1,618,565 Capital Improvement Capital Projects Fund 593,000 - - - 593,000 Nonmajor Governmental Funds 402,286 - 1 - 402,287 Internal Service Funds 1,316,750 - - 93,145 1,409,895 Total $2,312,036 $ 593,740 $ 1,024,826 $ 93,145 $4,023,747 In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services. General Fund transferred $789,862 to the 2015 Lease Revenue Bond Fund for debt service payment. General Fund transferred $234,963 to Lighting /Landscaping Fund to cover deficit. General Fund transferred $593,740 of surplus funds at midyear to the Capital Improvement Fund. Capital Improvement Fund transferred $593,000 back to the General Fund at year end to cover an anticipated deficit caused by COVID-19 related revenue shortfalls. Nonmajor Governmental Funds transferred $402,287 for Lighting/Landscaping administration, street maintenance and traffic safety operations, parks maintenance allocation and agency administration. Internal Service Funds transferred $1,316,750 to the General Fund at year end to cover an anticipated deficit caused by COVID-19 related revenue shortfalls. Internal Service Funds transferred $93,145 to Internal Service Funds to meet funding goals. 62 209 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 – Capital Assets The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2020: Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Capital assets not being depreciated: Land $ 22,742,622 $-$(2,454) $ 22,740,168 Construction in progress 3,710,354 4,505,796 (3,373,856) 4,842,294 Total capital assets not being depreciated 26,452,976 4,505,796 (3,376,310) 27,582,462 Capital assets being depreciated: Buildings and structures 13,612,362 6,804 - 13,619,166 Improvements other than buildings 15,362,907 -- 15,362,907 Machinery and equipment 6,407,753 229,794 - 6,637,547 Vehicles 4,021,028 296,312 (250,467) 4,066,873 Infrastructure 51,759,319 3,322,086 - 55,081,405 Total capital assets being depreciated 91,163,369 3,854,996 (250,467) 94,767,898 Less accumulated depreciation for: Buildings and structures (5,725,633)(276,594)29,036 (5,973,191) Improvements other than buildings (13,009,166)(230,643)- (13,239,809) Machinery and equipment (4,041,951)(477,419)- (4,519,370) Vehicles (2,210,217)(288,980)226,698 (2,272,499) Infrastructure (28,253,467)(1,535,525)- (29,788,992) Total accumulated depreciation (53,240,434)(2,809,161)255,734 (55,793,861) Total capital assets being depreciated, net 37,922,935 1,045,835)5,267 38,974,037 Total governmental activities $ 64,375,911 $5,551,631 $(3,371,043) $ 66,556,499 Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2020 as follows: General government $500,932 Public safety 2,231,053 Community development 268,605 Culture and recreation 163,977 Public works 690,429 Total depreciation expense $3,854,996 63 210 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 7 – Long-Term Liabilities Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2020 is as follows: Classification Balance Balance Due within Due in more July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year 2015 Lease revenue bond $ 10,370,000 $-$(480,000)$9,890,000 $ 500,000 $ 9,390,000 Bonds Premium 167,892 -(10,384)157,508 10,384 147,124 Compensated absences 2,714,096 1,468,160 (1,403,056)2,779,200 1,287,659 1,491,541 $ 13,251,988 $ 1,468,160 $(1,893,440)$12,826,708 $ 1,798,043 $ 11,028,665 2015 Lease Revenue Bonds On July 14, 2015, the PFA issued $11,600,000 Hermosa Beach Public Financing Authority 2015 Lease Revenue Bonds to (i) make certain payments under an agreement entered into for the purpose of settling certain claims made against the City, and (ii) pay the costs of issuing the 2015 Bonds. Interest rate ranges from 2.00% to 5.00% is payable semiannually on May 1 and November 1 of each year, commencing November 1, 2016. The outstanding balance at June 30, 2020 was $9,890,000. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2021 $ 500,000 $ 785,713 $ 1,285,713 2022 510,000 778,113 1,288,113 2023 520,000 777,813 1,297,813 2024 535,000 782,263 1,317,263 2025 545,000 781,122 1,326,122 2026-2030 2,980,000 946,455 3,926,455 2031-2035 3,520,000 443,315 3,963,315 2036 780,000 13,650 793,650 $ 9,890,000 $ 5,308,444 $15,198,444 Note 8 – Risk Management The City maintains an internal service fund to account for the City’s general liability and workers’ compensation claims, automobile, property, and unemployment insurance. The City is self-insured for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $20,000,000 per occurrence, as a member of the Independent Cities Risk Management Authority (“ICRMA”). 64 211 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 8 – Risk Management (Continued) The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA of coverage up to statutory limits. ICRMA is a joint exercise of powers authority organized and operating pursuant to the California Government Code. ICRMA was formed in 1980 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable ICRMA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers’ compensation claims. ICRMA’s annual budget is based on estimated actuarially determined member losses within the risk sharing layer, administrative expenses and excess insurance. The City’s premiums to ICRMA in the amount of $801,183 for the fiscal year 2019-2020 are in accordance with formulas established by ICRMA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement; however, there has never been an additional assessment since the pool was formed. The City has entered into contracts with third party administrators who supervise and administer the City’s general liability and workers’ compensation insurance program. Claim loss estimates are determined by the third party administrator based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (“IBNR”) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid. The workers’ compensation and general liability claims payable of $5,896,732 reported at June 30, 2020 includes the liability for claims in which it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the City’s claims liability amounts were as follows: Current Year Amounts Beginning Claims and End Amounts Due in of Year Changes in Claim of Year Due within more than Liability Estimates Payments Liability One Year One Year Workers' Compensation 2017-2018 $4,910,809 $1,127,793 $ (940,350) $5,098,252 $795,327 $4,302,925 2018-2019 5,098,252 1,971,873 (2,017,449) 5,052,676 876,329 4,176,347 2019-2020 5,052,676 723,384 (1,098,728) 4,677,332 809,160 3,868,172 General Liability 2017-2018 $1,147,766 $2,017,449 $(2,124,777) $1,040,438 $339,112 $701,326 2018-2019 1,040,438 625,487 (1,127,793)538,132 175,875 362,257 2019-2020 538,132 1,438,676 (757,408)1,219,400 456,359 763,041 Detailed financial information may be obtained from the ICRMA Program Administrator located at 18201 Von Karman, Suite 200, Irvine, CA 92612. 65 212 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans The following is a summary of net pension liabilities, related deferred outflows and inflows of resources as of June 30, 2020 and pension expenses for the year then ended June 30, 2020: Miscellaneous Safety Total Deferred outflows of resources: Pension contribution after measurement date $1,907,072 $2,799,261 $ 4,706,333 Difference between expected and actual experience 1,031,273 2,228,947 3,260,220 Changes of assumptions 708,033 1,399,285 2,107,318 Adjustment due to differences in proportions 28,625 - 28,625 Difference between City contributions and proportionate share of contributions -652,725 652,725 Total deferred outflows of resources $3,675,003 $7,080,218 $ 10,755,221 Aggregate Net pension liabilities: Aggregate Net pension liabilities $14,848,242 $34,138,671 $ 48,986,913 Total net pension liabilities $14,848,242 $34,138,671 $ 48,986,913 Deferred inflows of Resources: Difference between expected and actual experience $79,903 $- $ 79,903 Changes of assumptions 250,992 273,069 524,061 Difference between projected and actual earning on pension plan investments 259,593 469,635 729,228 Adjustment due to differences in proportions 195,133 1,654,770 1,849,903 Difference between City contributions and proportionate share of contributions 155,072 - 155,072 Total deferred inflows of Resources $940,693 $2,397,474 $ 3,338,167 Pension expenses: $3,069,498 $6,521,585 $ 9,591,083 General Information about the Pension Plan Plan Description The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple- employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. The City contracted with Los Angeles County for Fire Services (Fire District) on 12/30/2017. The City will continue to be responsible for paying the retirement costs for fire employees related to the value of past service benefits, referred to as the unfunded actuarial liability. 66 213 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms At June 30, 2019, the following employees were covered by the benefit terms: Plans Fire Tier 1 Fire Tier 2 Fire PEPRA Police Tier 1 Police Tier 2 Police PEPRA Active employees ---21 3 11 Transferred and terminated employees 12 1 3 5 1 2 Separated 4 1 1 5 2 2 Retired Employees and Beneficiaries 60 --93 1 - Total 76 2 4 124 7 15 Plans Misc. Tier 1 Misc. Tier 2 Misc. PEPRA Active employees 37 15 55 Transferred and terminated employees 46 10 15 Separated 47 4 17 Retired Employees and Beneficiaries 141 1 - Total 271 30 87 Benefit Provided CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. Following are the benefit provisions for each plan:  Fire Tier 1: 3% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Fire Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Fire PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Police Tier 1: 3% (at age 50) of the average final 12 months compensation (effective prior to 7/1/11)  Police Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Police Tier PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Miscellaneous Tier 1: 2% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Miscellaneous Tier 2: 2% (at age 60) of the average final 12 months compensation (effective 7/1/11)  PEPRA Miscellaneous: 2% (at age 62) of the average final 36 months compensation (effective 1/1/13) 67 214 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) General Information about the Pension Plan (Continued) Benefit Provided (Continued) Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent. Contributions Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the fiscal year ended June 30, 2020, the contributions recognized as part of pension expense for the plan totaled $9,591,083. For the measurement period ended June 30, 2019 (the measurement date), the average contribution rate were as follows: Active Employee Employer Plans Contribution Rate Contribution Rate Fire Tier 1 9.000%47.239% Fire Tier 2 0.000%0.000% Fire PEPRA 12.750%14.145% Police Tier 1 9.000%109.020% Police Tier 2 9.000% 18.620% Police PEPRA 12.750% 13.140% Misc. Tier 1 7.000%41.020% Misc. Tier 2 7.000%8.318% Misc. PEPRA 6.250%6.840% 68 215 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2018 valuation was rolled forward to determine June 30, 2019 total pension liability based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Discount Rate 7.15% Inflation 2.75% Salary Increases Varies by Entry Age and Service Investment rate of return 7.65% net of pension plan investment expenses, includes inflation Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds. Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. 69 216 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Discount Rate (Continued) The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2018. New Strategic Real Return Real Return Asset Class Allocation-%Years 1-101 -% Years 11+2 -% Global Equity 50.00 4.80 5.98 Global Fixed Income 28.00 1.00 2.62 Inflation Assets 0.00 0.77 1.81 Private Equity 8.00 6.30 7.23 Real Assets 13.00 3.75 4.93 Liquidity 1.00 0.00 -0.92 1An expected inflation of 2.0% used for this period 2An expected inflation of 2.92% used for this period. Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage- point higher (8.15%) than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate - 1%Current Discount Discount Rate + 1% (6.15%)Rate (7.15%)(8.15%) Miscellaneous $ 22,821,755 $ 14,848,242 $ 8,266,670 Safety $ 50,709,943 $ 34,138,671 $ 20,552,824 70 217 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Pension Plan Fiduciary Net Position Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications. Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period: Increase (Decrease) Plan Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) Miscellaneous Balance at: 6/30/18 (Valuation date) $54,826,994 $40,848,844 $ 13,978,150 Balance at: 6/30/19 (Measurement date) $57,559,283 $42,215,765 $ 15,343,518 Net Changes during 2018-2019 $2,732,289 $1,366,921 $ 1,365,368 Safety Balance at: 6/30/18 (Valuation date) $116,840,514 $83,229,181 $ 33,611,333 Balance at: 6/30/19 (Measurement date) $118,283,374 $82,976,536 $ 35,306,838 Net Changes during 2018-2019 $1,442,860 $(252,645)$ 1,695,505 71 218 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2018). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date. (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2019). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2019 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2017-2018). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the market value assets. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of contributions during measurement period. The City’s proportionate share of the net pension liability was as follows: Miscellaneous Safety June 30, 2019 0.37090% 0.57283% June 30, 2020 0.37079% 0.54687% Change - Increase (Decrease)-0.00011% -0.02596% 72 219 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2020, the City recognized pension expense as follows: Miscellaneous $ 3,069,498 Safety 6,521,585 $ 9,591,083 The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2018-2019 measurement period is 3.7 years, which was obtained by dividing the total service years of 475,689 (the sum of remaining service lifetimes of the active employees) by 127,009 (the total number of participants: active, inactive, and retired). At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Deferred outflows of Resources Deferred inflows of Resources Pension contribution after measurement date $1,907,072 $- Difference between expected and actual experience 1,031,273 (79,903) Changes of assumptions 708,033 (250,992) Difference between projected and actual earning on pension plan investments -(259,593) Adjustment due to differences in proportions 28,625 (195,133) Difference between City contributions and proportionate share of contributions -(155,072) Total $3,675,003 $(940,693) 73 220 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (Continued): Safety Deferred outflows of Resources Deferred inflows of Resources Pension contribution after measurement date $2,799,261 $- Difference between expected and actual experience 2.228,947 - Changes of assumptions 1,399,285 (273,069) Difference between projected and actual earning on pension plan investments -(469,635) Adjustment due to differences in proportions -(1,654,770) Difference between City contributions and proportionate share of contributions 652,725 - Total $7,080,218 $(2,397,474) At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (Continued): Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Period Deferred Outflows/ (Inflows) of Resources Ended June 30,Miscellaneous Safety 2021 $ 942,195 $2,222,185 2022 (255,346)(552,968) 2023 87,933 122,889 2024 52,256 91,377 2025 -- Thereafter -- $ 827,238 $1,883,843 74 221 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 – Other Postemployment Benefit Plan General Information about the Plan On June 12, 2007, the City Council adopted a resolution authorizing participation in a post retirement health care plan trust to be administered by Public Agency Retirement Services (“PARS”) and Union Bank of California. In July 2007, the City signed an agreement with Public Agency Retirement Services to create and administer an irrevocable trust fund for the payment of other postemployment benefits for city employees. Funds in the amount of $1,401,000 that were previously set aside were forwarded to Union Bank pursuant to the agreement to establish the trust during the year ended June 30, 2008. Contributions are made on a monthly basis. Plan Description The City participates in a post retirement health care plan trust (“Plan”) administered by PARS and Union Bank of California. The Plan provides medical insurance benefits to eligible retirees, which is a single-employer defined benefit plan. PARS issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by contacting the City at 1315 Valley Drive, Hermosa Beach, CA 90254. The Plan is comprised of employees and retirees from several bargaining units, including General and Supervisory; Professional and Administrative Employees Association; Hermosa Beach Management Association; Police Management Association; Police Officers Association and Firefighters Association. The range of monthly benefits to be paid by the City ranges from $40 to $556 per month based on years of service from 10 years to 20 years provided to the City. The monthly benefits paid by the City are subject to change with increases provided based on age at retirement and years of service. Post-Retirement Health Care Coverage for Fire Employees The City contracted with Los Angeles County for Fire Services (“Fire District”) on 12/30/2017. Fire District employees are provided post-retirement health coverage. The current vesting period is 10 years of Fire District service. Service with the City does not count towards coverage, only time actually worked in Fire District service counts towards the vesting period. Hermosa Beach Fire Association (HBFA) members who transfer to the Fire District and who take a service retirement before reaching 10 years of Fire District service are ineligible for the Fire District's retiree health benefit. For those HBFA members who have 19 plus years of service with the City at the time of transfer to Fire District employment and who take a service retirement from the Fire District prior to vesting in the Fire District's retiree health plan, the City agrees to create a new Tier to the City's retiree health program as follow: the retired HBFA member will be eligible to receive from the City the $ 350 per month benefit set forth in Article 42(D) of the MOU. This benefit is limited to the first four HBFA members who qualify for the benefit. 75 222 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 – Other Postemployment Benefit Plan (Continued) General Information about the Plan (Continued) Eligibility All of the Plan’s employees became participants in accordance with negotiated Memorandum of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. Participants of the Plan as of June 30, 2020 were as follows: Participants Total Active employees 121 Retirees 67 Retirees not receiving benefits - Total 188 Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2019. Actuarial Assumptions The total OPEB liability, measured as of June 30, 2019, was determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Normal Actuarial Assumptions: 6.00% Pre-funded in PARS Moderate Strategy Discount Rate Inflation 2.75% per annum Salary Increases 3.00% Aggregate Merit: 1997-2015 CalPERS Experience Study Investment Rate of Return 6.00% Healthcare Trend Rate Non-Medicare: 7.5% in 2019, to 4.0% in 2076 and thereafter Medicare: 6.5% in 2019 to 4.0% in 2076 and thereafter Mortality, Retirement, Disability, Termination CalPERS 1997-2015 Experience Study Service Requirement 100% at 20 Years of Service Participation Rate Currently covered: 100% The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2018 through June 30, 2019. 76 223 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 – Other Postemployment Benefit Plan (Continued) Net OPEB Liability (Continued) Actuarial Assumptions (Continued) The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Target Allocation Expected Real Asset Class PARS-Moderate Rate of Return Global Equity 48.00%4.820% Fixed Income 45.00%1.470% REIs 2.00%3.760% Cash 5.00%0.060% 100.00% Discount Rate The discount rate used to measure the total OPEB liability was 6.00 percent. The actuarial assumptions used to determine the discount rate was based on the current funding practice and assumed the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2019: Plan's OPEB Liability/(Asset) Discount Rate - 1%Current Discount Discount Rate + 1% (5.00%)Rate (6.00%)(7.00%) $ 1,039,740 $ (551,436)$(1,892,229) Sensitivity of the Total OPEB Liability to Changes in Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the total OPEB liability would be if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates, for the measurement period ended June 30, 2019: Plan's OPEB Liability/(Asset) Healthcare -1.00% Trend Rate +1.00% $ (1,704,132) $(551,436)$830,784 77 224 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 – Other Postemployment Benefit Plan (Continued) Change in Net OPEB Liability Total Net OPEB Plan OPEB Liability Fiduciary Liability (Asset)Net Position (Asset) Balance at June 30, 2018 (Valuation Date) $10,926,306 $ 11,574,347 $ (648,042) Changes Recognized for the Measurement Period: Service Cost 327,066 - 327,066 Interest on the total OPEB liability 661,475 - 661,475 Changes of benefit terms -- - Difference between expected and actual experience 632,713 - 632,713 Changes of assumptions 771,624 - 771,624 Contributions from the employer -1,486,917 (1,486,917) Contributions from employees -- - Net investment income, net of administrative expense -838,766 (838,776) Benefit payments, including refunds of employee contributions (457,550)(457,550) - Administrative Expense -(29,410) 29,410 Net Changes during July 1, 2018 to June 30, 2019 1,935,328 1,838,723 96,605 Balance at June 30, 2019 (Measurement Date) $12,861,634 $ 13,413,070 $ (551,436) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2020, OPEB expense in the amount of $377,522 is included in the accompanying statement of activities. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of resources Deferred Inflows of resources Employer contribution after measurement date $ 870,427 $ - Differences between expected and actual experience 547,211 - Changes in assumptions 667,350 - Difference between projected and actual earning on plan investments - (255,212) $ 2,084,988 $ (255,212) The $870,427 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year June 30, 2021. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Year Ending June 30 Amount 2021 $ 87,119 2022 85,119 2023 164,120 2024 167,534 2025 189,776 Thereafter 265,681 Total $ 959,349 78 225 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 11 – Classification of Fund Balances At June 30, 2020, fund balances are classified in the governmental funds as follows: General Fund Grants Special Revenue Fund Sewer Special Revenue Fund Capital Improvements Capital Projects Nonmajor Governmental Funds Total Nonspendable Prepaid items $ 499,454 $ - $ 728 $ - $ 15,179 $ 515,361 Total nonspendable 499,454 - 728 - 15,179 515,361 Restricted Verizon PEG Grant 56,969 - - - - 56,969 General Plan Maintenance Fees 158,350 - - - - 158,350 Chamber Marquee Donation 50,000 - - - - 50,000 Chamber Holiday Decorations Donations 19,909 - - - - 19,909 CASP Fees 32,978 - - - - 32,978 Lighting District - - - - 15,850 15,850 Gas Tax - - - - 514,785 514,785 Source Reduction/Recycling - - - - 118,808 118,808 Proposition “A” Open Space - - - - 14,360 14,360 Parks/Rec Facility Projects - - - - 355,925 355,925 Undergrounding Districts - - - - 7,144 7,144 Prop A, C and Measure R Transit Projects - - - - 1,747,399 1,747,399 Air Quality Improvement Projects - - - - 76,277 76,277 Supplemental Law Enforcement Services Funds - - - - 327,737 327,737 Asset Forfeiture – Drug Enforcement and Education - - - - 637,080 637,080 Fire Protection - - - - 25,299 25,299 Community Development Block Grant - - - - 4,671 4,671 Grants - 425,732 - - - 425,732 Measure M - - - - 78,134 78,134 RTI Undersea Cable - - - - 470,817 470,817 RTI Undersea Cable Tidelands - - - - 257,034 257,034 Lease Revenue Bond - - - - 118 118 Storm Drain - - - - 1,733,258 1,733,258 Total restricted 318,206 425,732 - - 6,384,696 7,128,634 Committed In Lieu Fee- Parking Facilities 86,700 - - - - 86,700 Tyco &Tyco Tidelands - - - - 1,405,179 1,405,179 Retirement Trust 829,060 - - - - 829,060 Retirement Rate Stabilization 1,021,575 - - - - 1,021,575 Total committed 1,937,335 - - - 1,405,179 3,342,514 Assigned Capital Projects 367,439 - - 8,001,575 - 8,369,014 Capital Facility Reserve - - - 1,267,968 - 1,267,968 Sewers and Storm Drains - - 5,326,856 - - 5,326,856 Fund Balance Carryforward for 20-21 Budget 454,496 - - - - 454,496 Reappropriations 684,995 - - - - 684,995 Contingencies 6,023,218 - - - - 6,023,218 Compensated absences 267,950 - - - - 267,950 Prop A Exchange 579,194 - - - - 579,194 Reserves for Fire Services 238,859 - - - - 238,859 Total assigned 8,616,151 -5,326,856 9,269,543 - 23,212,550 Unassigned 1,751,727 - - - (249,166) 1,502,561 $13,122,873 $ 425,732 5,327,584 $ 9,269,543 $ 7,555,888 $ 35,701,620 79 226 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 12 – Non-City Obligations 2004 Beach Drive Utility Underground Assessment District Special Assessment Bonds In July 2004, limited obligation improvement bonds in the amount of $404,341 were issued for the Beach Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2021 $ 25,296 $ 5,115 $ 30,411 2022 26,510 3,992 30,502 2023 27,783 2,929 30,712 2024 29,116 1,684 30,800 2025 30,514 732 31,246 $139,219 $14,452 $153,671 2005 Bayview Drive Utility Underground Assessment District Improvement Bonds In February 2005, limited obligation improvement bonds in the amount of $951,667 were issued for the Bayview Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2021 $45,765 $12,297 $58,062 2022 48,135 10,301 58,436 2023 50,606 8,203 58,809 2024 53,181 5,998 59,179 2025 55,867 3,680 59,547 2026 58,666 1,247 59,913 Total $312,220 $41,729 $353,946 80 227 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 13 – Commitments and Contingencies A. Commitments The City had several outstanding or planned construction and other projects as of June 30, 2020. These projects are evidenced by contractual commitments with contractors and include: Commitment Project Spent to Date Remaining Permit Software Upgrade and Integration Project $507,582 $ 171,468 Fire Department Facility and Equipment Conversion 653,163 1,380,508 Total $1,160,745 $ 1,551,976 Of the commitments listed above, $1,272,852 represents commitments in the Capital Projects Fund, $171,468 represents commitments in internal service funds, and $107,656 represents commitments in Special Revenue Funds. In January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure. The remainder of the funding was provided by the City’s former Downtown Enhancement Enterprise Fund and Prop A Open Space funding contributed by the Los Angeles County Department of Beaches and Harbors (“County”). In consideration of the County contribution, 50% of the annual net income derived from the parking structure must be shared with the County each year by September 1. The payment made to the County for fiscal year 2019-2020 is $227,271. B. Contingencies The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. C. Grants Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City. D. Ongoing Operations The City’s operations may be affected by the recent and ongoing outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, possible effects may include, but are not limited to, a reduction in certain tax revenues and a decline in the value of investments, which could have an impact on the City’s financial position and operating results. There is significant uncertainty as to the severity and longevity of the outbreak and City management is in the process of evaluating the impact on the City and its financial statements. 81 228 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 14 – Subsequent Events Management has evaluated subsequent events through March 26, 2021 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City. 82 229 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 83 230 Actual Variance with Original Final Amounts Final Budget Fund balance, July 1, 2019 10,514,092$ 10,514,092$ 10,514,092$ -$ Revenues (inflows): Property taxes 18,879,914 18,970,723 19,119,818 149,095 Other taxes 10,374,113 8,572,354 9,148,685 576,331 Licenses and permits 1,215,677 734,016 729,622 (4,394) Fines and forfeitures 2,135,049 2,084,412 2,160,244 75,832 Use of money and property 911,506 656,674 663,616 6,942 Intergovernmental 147,641 132,085 128,680 (3,405) Charges for services 7,381,847 5,653,988 6,139,719 485,731 Miscellaneous 124,192 114,252 84,835 (29,417) Interest earned on investments 217,862 201,256 368,071 166,815 Transfers in 402,922 2,312,672 2,312,036 (636) Amount available for appropriations 41,790,723 39,432,432 40,855,326 1,422,894 Charges to appropriations (outflows): Legislative and legal 1,699,036 1,466,252 1,300,018 166,234 General government 5,035,032 5,341,692 4,554,234 787,458 Public safety 22,695,099 21,301,474 21,459,563 (158,089) Community development 2,261,750 2,149,062 2,039,680 109,382 Culture and recreation 1,556,347 1,494,775 1,521,029 (26,254) Public works 6,381,411 5,621,422 5,342,252 279,170 Capital outlay 788,681 882,208 411,204 471,004 Transfers out 1,165,795 1,618,562 1,618,565 (3) Total charges to appropriations 41,583,151 39,875,447 38,246,545 1,628,902 Fund balance, June 30, 2020 10,721,664$ 10,071,077$ 13,122,873$ (206,008)$ CITY OF HERMOSA BEACH Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2020 Budgeted Amounts 84 231 Actual Variance with Original Final Amounts Final Budget Fund balance, July 1, 2019 506,715$ 506,715$ 506,715$ -$ Revenues (inflows): Intergovernmental 1,524,765 314,014 153,030 (160,984) Miscellaneous 1,348,601 179,554 569,466 389,912 Amount available for appropriations 2,873,366 493,568 722,496 228,928 Charges to appropriations (outflows): General government - 20,000 12,500 7,500 Public safety 1,800 144,138 74,286 69,852 Community development - 52,161 66,618 (14,457) Public works 5,300 84,150 48,139 36,011 Capital outlay 4,485,669 4,744,359 601,936 4,142,423 Total charges to appropriations 4,492,769 5,044,808 803,479 4,241,329 Fund balance (deficit), June 30, 2020 (1,112,688)$ (4,044,525)$ 425,732$ (4,012,401)$ CITY OF HERMOSA BEACH Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Grants Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts 85 232 Actual Variance with Original Final Amounts Final Budget Fund balance, July 1, 2019 6,774,790$ 6,774,790$ 6,774,790$ -$ Revenues (inflows): Intergovernmental 13,475 15,697 10,222 (5,475) Charges for services 1,121,185 1,088,792 1,109,736 20,944 Interest earned on investments 159,651 157,067 229,301 72,234 Amount available for appropriations 1,294,311 1,261,556 1,349,259 87,703 Charges to appropriations (outflows): Public works 437,797 466,414 396,826 69,588 Capital outlay 2,650,000 2,939,258 2,399,639 539,619 Total charges to appropriations 3,087,797 3,405,672 2,796,465 609,207 Fund balance, June 30, 2020 4,981,304$ 4,630,674$ 5,327,584$ (521,504)$ CITY OF HERMOSA BEACH Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Sewer Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts 86 233 City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2020 Budgetary Control and Accounting Policy Budgets are annually adopted for all governmental and proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the “annual appropriated budget.” The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund; however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level. Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, “final” budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year. Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year-end. 87 234 This page intentionally left blank. 88 235 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1 June 30, 2015 1 June 30, 2014 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 City's Proportion of the Net Pension Liability/(Asset) 0.37079% 0.37090% 0.14664% 0.14882% 0.15099% 0.16331% City's Proportionate share of the Net Pension Liability/(Asset)14,848,242$ 13,978,150$ 14,452,712$ 12,877,883$ 10,364,015$ 10,161,668$ City's Covered payroll 7,192,641$ 7,402,032$ 6,785,443$ 6,540,869$ 5,700,485$ 5,355,599$ City's Proportionate Share of the Net Pension Liability Liability/(Asset) as a Percentage of its covered payroll 206.44% 188.84% 214.32% 196.88% 181.81% 189.74% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 75.95% 74.50% 72.80% 73.59% 78.00% 78.34% June 30, 2018 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1 June 30, 2015 1 June 30, 2014 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018-19 2018-19 2017-18 2016-17 2015-16 2014-15 City's Proportion of the Net Pension Liability/(Asset) 0.54687% 0.57283% 0.35213% 0.37217% 0.40019% 0.42012% City's Proportionate share of the Net Pension Liability/(Asset) 34,138,671$ 33,611,333$ 34,921,802$ 32,204,127$ 27,469,000$ 26,141,972$ City's Covered payroll 4,108,280$ 5,320,583$ 5,597,657$ 5,342,937$ 5,492,822$ 5,065,109$ City's Proportionate Share of the Net Pension Liability Liability/(Asset) as a Percentage of its covered payroll 830.97% 631.72% 623.86% 602.74% 500.09% 516.12% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 71.77% 71.23% 69.01% 68.78% 72.40% 74.24% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only six year are presented. California Public Employees' Retirement System ("CalPERS") Safety Plan CITY OF HERMOSA BEACH Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2020 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Unaudited) (Continued) 89 236 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 1 Actuarially determined contribution 2 618,021$ 575,931$ 527,115$ 518,722$ 469,656$ 883,493$ 799,637$ Contributions in relation to the actuarially determined contributions 2 (1,907,072)$ (1,682,561)$ (1,516,745)$ (1,379,151)$ (1,245,120)$ (883,493)$ (799,637)$ Contribution deficiency (excess) (1,289,051)$ (1,106,630)$ (989,630)$ (860,429)$ (775,464)$ -$ -$ Covered payroll 2 7,191,189$ 7,192,641$ 7,402,032$ 6,785,443$ 6,540,869$ 5,700,485$ 5,355,599$ Contributions as a percentage of covered employee payroll 26.52% 23.39% 20.49% 20.33% 19.04% 15.50% 14.93% 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 1 Actuarially determined contribution 2 753,728$ 804,633$ 1,016,858$ 1,029,129$ 1,033,371$ 2,842,420$ 1,923,392$ Contributions in relation to the actuarially determined contributions 2 (2,799,261)$ (3,878,196)$ (4,226,782)$ (3,921,179)$ (3,698,115)$ (2,842,420)$ (1,923,392)$ Contribution deficiency (excess) (2,045,533)$ (3,073,563)$ (3,209,924)$ (2,892,050)$ (2,664,744)$ -$ -$ Covered payroll 2 4,130,518$ 4,108,280$ 5,320,583$ 5,597,651$ 5,342,937$ 5,492,822$ 5,065,109$ Contributions as a percentage of covered employee payroll 67.77% 94.40% 79.44% 70.05% 69.22% 51.75% 37.97% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only seven years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. Notes to Schedule None. California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan CITY OF HERMOSA BEACH Required Supplementary Information (Unaudited) (Continued) Schedule of City's Contributions - Pensions For the Year Ended June 30, 2020 Last Ten Fiscal Years 90 237 For the Measurement Period:2018-19 2017-18 2016-17 Total OPEB Liability Service cost 327,066$ 317,540$ 326,000$ Interest on the total OPEB Liability 661,475 631,597 624,000 Actual and expected experience difference 632,713.00 - - Changes in assumptions 771,624 - - Changes in benefit terms - - (381,000) Benefit payments (457,550) (463,831) (399,000) Net change in total OPEB liability 1,935,328 485,306 170,000 Total OPEB liability - beginning 10,926,306 10,441,000 10,271,000 Total OPEB liability - ending (a) 12,861,634$ 10,926,306$ 10,441,000$ Plan Fiduciary Net Position Contribution - employer 1,486,916$ 1,569,307$ 1,050,000$ Net investment income 838,766 645,729 906,000 Benefit payments (457,550) (463,831) (399,000) Administrative expense (29,410) (26,857) (23,000) Net change in plan fiduciary net position 1,838,722 1,724,348 1,534,000 Plan fiduciary net position - beginning 11,574,348 9,850,000 8,316,000 Plan fiduciary net position - ending (b) 13,413,070 11,574,348 9,850,000$ Net OPEB liability (asset) - ending (a)-(b) (551,436)$ (648,042)$ 591,000$ Fiduciary net position as a % of total OPEB liability 104.30% 105.90% 94.34% Covered payroll 10,461,266 11,551,135 11,551,135 Net OPEB liability as a percentage of payroll -5.27% -5.61% 5.12% * 2018 is the first year of implementation, therefore only three years are available for the required 10-year schedule. CITY OF HERMOSA BEACH Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2020 Required Supplementary Information (Unaudited) (Continued) Last Ten Fiscal Years 91 238 For the Measurement Period:2019-20 2018-19 2017-18 2016-17 Actuarially determined contributions 314,000$ 324,000$ 818,000$ 818,000$ Contributions in relation to the actuarially determined contribution (870,427) (1,486,916) (1,569,000) (1,050,000) Contribution deficiency (excess) (556,427)$ (1,162,916)$ (751,000)$ (232,000)$ Covered payroll 12,297,066$ 10,461,266$ 11,551,135$ 10,955,041$ Contributions as a percentage of covered payroll 7.08% 14.21% 13.58% 9.58% * 2018 is the first year of implementation, therefore only four years are available for the required 10-year schedule. CITY OF HERMOSA BEACH Required Supplementary Information (Unaudited) (Continued) Schedule of City's Contributions - OPEB For the Year Ended June 30, 2020 Last Ten Fiscal Years 92 239 SUPPLEMENTARY INFORMATION 93 240 This page intentionally left blank. 94 241 NON MAJOR GOVERNMENTAL FUNDS Special Revenue Funds: Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679. State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund. AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element. Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities. Tyco Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity. Tyco Tidelands Fund - This fund is used to account for the portion of the funds specific to the tidelands and submerged lands received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach that were set aside to build one new restroom and rehabilitate three existing restrooms at the beach. Parks/Recreation Facilities Tax Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities. Bayview Drive Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Bayview Utility Underground Special Assessment District. Myrtle District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Myrtle Avenue Utility Underground Special Assessment District. Loma District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District. Beach Drive Assessment District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District. Proposition "C" Fund - This is a fund which was added during 1992 to account for funds allocated from the voter-approved 1/2 cent sales tax. Funds must be used for transit purposes. Measure "R" Fund - This is a fund which was added July 1, 2009 to account for a 1/2 cent sales tax approved by Los Angeles County voters in November 2008 to meet the transportation needs of Los Angeles County. The program is to be used for transportation projects that have been approved by the Los Angeles County Metropolitan Transit Authority. 95 242 NON MAJOR GOVERNMENTAL FUNDS (Continued) Special Revenue Funds (Continued): Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles. Supplemental Law Enforcement Services Fund - This fund is used to account for funds received from the Citizen Option for Public Safety ("COPS") program, established by the State Legislature in fiscal year 1996-1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding. Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations. Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system in the City and for upgrades to fire facilities. Community Development Block Grant (CDBG) Fund - This fund is used to track the costs related to community development block grant. Measure "M" Fund - This fund is used to account for voter-approved 1/2 cent sales tax for a Los Angeles County Traffic Improvement Plan to improve freeway traffic flow/safety; repair potholes/sidewalks; repave local streets; earthquake-retrofit bridges; synchronize signals; keep senior/disabled/student fares affordable; expand rail/subway/bus systems; improve job/school/airport connections; and create jobs. RTI Undersea Cable Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system with a landing in Hermosa Beach. The project will provide additional capacity for global voice and data transmission and global access to planned and existing land-based communication networks in the RTI Undersea Cable Tidelands Fund - This fund is used to account for funds set aside according to the MC Global (now RTI- I) easement agreement for easement within tidelands and submerged lands. Proposition "A" Transit Special Revenue Fund - Transit revenue consists primarily of Proposition A fund (the 1/2 cent sales tax for Los Angeles County transportation purposes). The City currently operates a Dial-a-Ride program for seniors, a taxi voucher program, a commuter bus, special event and after school program shuttles and subsidizes bus passes for senior citizens and students. FEMA Special Revenue Fund - This fund is used to account for emergency response related expenditures reimbursed by the Federal Emergency Management Agency (FEMA). CARES Act Special Revenue Fund - This fund is used to account for COVID-19 related expenditures reimbursable under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Storm Drain Special Revenue Fund - This fund is used to account for maintenance of the City's storm drains. This includes administration of the national Pollution Discharge Elimination System Program. Debt Service Fund: 2015 Lease Revenue Bond - This fund is used to account for 2015 Lease Revenue Bond. 96 243 Lighting and Prop A Landscaping State Open District Gas Tax AB 939 Space Tyco Cash and investments 53,642$ 432,912$ 129,400$ 8,220$ 1,319,631$ Accounts receivable 9,266 96,503 8,417 6,140 84,483 Property taxes receivable, net 11,605 - - - - Reimbursable grants receivable - - - - - Interest receivable 41 337 100 - 1,047 Other assets - - - - - Total assets 74,554$ 529,752$ 137,917$ 14,360$ 1,405,161$ Liabilities: Accounts payable and accrued liabilities 38,922$ 14,967$ 18,500$ -$ -$ Accrued wages and benefits payable 3,429 - 498 - - Unearned revenues - - - - - Due to other funds - - - - - Compensated absences, due within one year 4,748 - 111 - - Total liabilities 47,099 14,967 19,109 - - Deferred inflows of resources: Unavailable revenue 11,605 - - - - Total deferred inflows of resources 11,605 - - - - Fund Balances: Nonspendable - - - - - Restricted 15,850 514,785 118,808 14,360 - Committed - - - - 1,405,161 Unassigned - - - - - Total fund balances 15,850 514,785 118,808 14,360 1,405,161 Total liabilities, deferred inflows and fund balances 74,554$ 529,752$ 137,917$ 14,360$ 1,405,161$ Special Revenue Funds CITY OF HERMOSA BEACH Combining Balance Sheet Nonmajor Governmental Funds June 30, 2020 ASSETS AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS OF RESOURCES, 97 244 Parks/ Bayview Myrtle Loma Recreation Drive District District Tyco Facilities Administrative Administrative Administrative Tidelands Tax Expense Expense Expense Cash and investments 18$ 361,657$ 4,249$ -$ -$ Accounts receivable - 2,000 - - - Property taxes receivable, net - - - - - Reimbursable grants receivable - - - - - Interest receivable - 278 3 - - Other assets - - - - - Total assets 18$ 363,935$ 4,252$ -$ -$ Liabilities: Accounts payable and accrued liabilities -$ 8,010$ 364$ -$ -$ Accrued wages and benefits payable - - - - - Unearned revenues - - - - - Due to other funds - - - 111 - Compensated absences, due within one year - - - - - Total liabilities - 8,010 364 111 - Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources - - - - - Fund Balances: Nonspendable - - - - - Restricted - 355,925 3,888 - - Committed 18 - - - - Unassigned - - - (111) - Total fund balances 18 355,925 3,888 (111) - Total liabilities, deferred inflows and fund balances 18$ 363,935$ 4,252$ -$ -$ CITY OF HERMOSA BEACH Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Special Revenue Funds 98 245 Beach Drive Air Supplemental Assessment Quality Law District Proposition Measure Management Enforcement Admin Expense "C""R"District Services Cash and investments 3,598$ 1,067,543$ 286,704$ 63,364$ 327,624$ Accounts receivable - - 10,000 12,976 - Property taxes receivable, net - - - - - Reimbursable grants receivable - - - - - Interest receivable 3 842 225 50 255 Other assets - - - - 11,590 Total assets 3,601$ 1,068,385$ 296,929$ 76,390$ 339,469$ Liabilities: Accounts payable and accrued liabilities 345$ 7,368$ 17,716$ -$ 142$ Accrued wages and benefits payable - 1 - 113 - Unearned revenues - - - - - Due to other funds - - - - - Compensated absences, due within one year - - 188 - - Total liabilities 345 7,369 17,904 113 142 Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources - - - - - Fund Balances: Nonspendable - - - - 11,590 Restricted 3,256 1,061,016 279,025 76,277 327,737 Committed - - - - - Unassigned - - - - - Total fund balances 3,256 1,061,016 279,025 76,277 339,327 Total liabilities, deferred inflows and fund balances 3,601$ 1,068,385$ 296,929$ 76,390$ 339,469$ ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES CITY OF HERMOSA BEACH Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 Special Revenue Funds 99 246 Asset Seizure RTI and Fire Measure Undersea Forfeiture Protection CDBG "M"Cable Cash and investments 636,911$ 25,280$ -$ 188,759$ 470,450$ Accounts receivable - - 180,485 - 22,500 Property taxes receivable, net - - - - - Reimbursable grants receivable - - - - - Interest receivable 499 19 - 151 367 Other assets - 3,589 - - - Total assets 637,410$ 28,888$ 180,485$ 188,910$ 493,317$ Liabilities: Accounts payable and accrued liabilities 330$ -$ 3,645$ 110,776$ -$ Accrued wages and benefits payable - - - - - Unearned revenues - - - - 22,500 Due to other funds - - 172,169 - - Compensated absences, due within one year - - - - - Total liabilities 330 - 175,814 110,776 22,500 Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources - - - - - Fund Balances: Nonspendable - 3,589 - - - Restricted 637,080 25,299 4,671 78,134 470,817 Committed - - - - - Unassigned - - - - - Total fund balances 637,080 28,888 4,671 78,134 470,817 Total liabilities, deferred inflows and fund balances 637,410$ 28,888$ 180,485$ 188,910$ 493,317$ AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS OF RESOURCES, ASSETS CITY OF HERMOSA BEACH Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 Special Revenue Funds 100 247 RTI Undersea Cable Proposition CARES Tidelands "A" Transit FEMA Act Cash and investments 256,834$ 447,560$ -$ -$ Accounts receivable - - - - Property taxes receivable, net - - - - Reimbursable grants receivable - - 252,000 15,174 Interest receivable 200 367 - - Other assets - - - - Total assets 257,034$ 447,927$ 252,000$ 15,174$ Liabilities: Accounts payable and accrued liabilities -$ 40,342$ 109$ -$ Accrued wages and benefits payable - 227 - 15,174 Unearned revenues - - - - Due to other funds - - 248,946 - Compensated absences, due within one year - - - - Total liabilities - 40,569 249,055 15,174 Deferred inflows of resources: Unavailable revenue - - 252,000 - Total deferred inflows of resources - - 252,000 - Fund Balances: Nonspendable - - - - Restricted 257,034 407,358 - - Committed - - - - Unassigned - - (249,055) - Total fund balances 257,034 407,358 (249,055) - Total liabilities, deferred inflows and fund balances 257,034$ 447,927$ 252,000$ 15,174$ Special Revenue Funds CITY OF HERMOSA BEACH Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 AND FUND BALANCES ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, 101 248 Special Debt Revenue Service Funds Fund Total 2015 Lease Nonmajor Storm Revenue Governmental Drain Bonds Funds Cash and investments 1,770,789$ 118$ 7,855,263$ Accounts receivable - - 432,770 Property taxes receivable, net - - 11,605 Reimbursable grants receivable - - 267,174 Interest receivable - - 4,784 Other assets - - 15,179 Total assets 1,770,789$ 118$ 8,586,775$ Liabilities: Accounts payable and accrued liabilities 29,743$ -$ 291,279$ Accrued wages and benefits payable 5,491 - 24,933 Unearned revenues - - 22,500 Due to other funds - - 421,226 Compensated absences, due within one year 2,297 - 7,344 Total liabilities 37,531 - 767,282 Deferred inflows of resources: Unavailable revenue - - 263,605 Total deferred inflows of resources - - 263,605 Fund Balances: Nonspendable - - 15,179 Restricted 1,733,258 118 6,384,696 Committed - - 1,405,179 Unassigned - - (249,166) Total fund balances 1,733,258 118 7,555,888 Total liabilities, deferred inflows and fund balances 1,770,789$ 118$ 8,586,775$ CITY OF HERMOSA BEACH Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 102 249 Lighting and Prop A Landscaping State Open District Gas Tax AB 939 Space Tyco REVENUES: Property taxes 453,536$ -$ -$ -$ -$ Other taxes - - - - - Fines and forfeitures - - - - - Use of money and property - - - - 337,932 Intergovernmental - 830,357 - - - Charges for services - - 65,585 - - Miscellaneous - - - - - Interest earned on investments 1,304 14,005 2,384 - 42,286 Total revenues 454,840 844,362 67,969 - 380,218 EXPENDITURES: Current: General government - - 27,077 - - Public safety - - - - - Community development - - - - - Culture and recreaction - - - - - Public works 691,094 - - - - Capital outlay - 369,998 - - - Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 691,094 369,998 27,077 - - REVENUES OVER (UNDER) EXPENDITURES (236,254) 474,364 40,892 - 380,218 OTHER FINANCING SOURCES (USES): Transfers in 234,963 - - - - Transfers out (11,054) (360,763) - (20,557) - Total other financing sources (uses)223,909 (360,763) - (20,557) - CHANGE IN FUND BALANCES (12,345) 113,601 40,892 (20,557) 380,218 Fund balances, beginning of year 28,195 401,184 77,916 34,917 1,024,943 Fund balances (deficits), end of year 15,850$ 514,785$ 118,808$ 14,360$ 1,405,161$ CITY OF HERMOSA BEACH Nonmajor Governmental Funds For the Year Ended June 30, 2020 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds 103 250 Parks/ Bayview Myrtle Loma Recreation Drive District District Tyco Facilities Administrative Administrative Administrative Tidelands Tax Expense Expense Expense REVENUES: Property taxes -$ -$ -$ -$ -$ Other taxes - 7,793 - - - Fines and forfeitures - - - - - Use of money and property - - - - - Intergovernmental - - - - - Charges for services - 17,216 - - - Miscellaneous - - 4,500 - - Interest earned on investments 7 12,537 145 - 80 Total revenues 7 37,546 4,645 - 80 EXPENDITURES: Current: General government - - 1,508 - 590 Public safety - - - - - Community development - - - - - Culture and recreaction - - - - - Public works - - - - - Capital outlay - 28,423 - - - Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures - 28,423 1,508 - 590 REVENUES OVER (UNDER) EXPENDITURES 7 9,123 3,137 - (510) OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - (2,307) - (5,715) Total other financing sources (uses)- - (2,307) - (5,715) CHANGE IN FUND BALANCES 7 9,123 830 - (6,225) Fund balances, beginning of year 11 346,802 3,058 (111) 6,225 Fund balances (deficits), end of year 18$ 355,925$ 3,888$ (111)$ -$ Special Revenue Funds CITY OF HERMOSA BEACH Nonmajor Governmental Funds For the Year Ended June 30, 2020 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 104 251 Beach Drive Air Supplemental Assessment Quality Law District Proposition Measure Management Enforcement Admin Expense "C""R"District Services REVENUES: Property taxes -$ -$ -$ -$ -$ Other taxes - 317,088 237,476 - 128,414 Fines and forfeitures - - - - - Use of money and property - - - - - Intergovernmental - - - 61,020 - Charges for services - - - - - Miscellaneous 3,500 - - - - Interest earned on investments 133 30,444 17,439 702 11,200 Total revenues 3,633 347,532 254,915 61,722 139,614 EXPENDITURES: Current: General government 1,420 - - 3,690 - Public safety - - - - 48,023 Community development - - - - - Culture and recreaction - - - - - Public works - - - - - Capital outlay - - 363,386 - 42,530 Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 1,420 - 363,386 3,690 90,553 REVENUES OVER (UNDER) EXPENDITURES 2,213 347,532 (108,471) 58,032 49,061 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out (1,891) - - - - Total other financing sources (uses)(1,891) - - - - CHANGE IN FUND BALANCES 322 347,532 (108,471) 58,032 49,061 Fund balances, beginning of year 2,934 713,484 387,496 18,245 290,266 Fund balances (deficits), end of year 3,256$ 1,061,016$ 279,025$ 76,277$ 339,327$ Special Revenue Funds CITY OF HERMOSA BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 105 252 Asset Seizure RTI and Fire Measure Undersea Forfeiture Protection CDBG "M"Cable REVENUES: Property taxes -$ -$ -$ -$ -$ Other taxes - - - 267,089 - Fines and forfeitures 77,558 - - - - Use of money and property - - - - 67,501 Intergovernmental - - 150,573 - - Charges for services - 10,294 - - - Miscellaneous - - - - - Interest earned on investments 20,213 1,671 - 3,545 15,537 Total revenues 97,771 11,965 150,573 270,634 83,038 EXPENDITURES: Current: General government - - - - - Public safety 2,792 43,062 - - - Community development - - - - - Culture and recreaction - - - - - Public works - - - - - Capital outlay 3,148 - 150,873 215,548 - Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 5,940 43,062 150,873 215,548 - REVENUES OVER (UNDER) EXPENDITURES 91,831 (31,097) (300) 55,086 83,038 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - CHANGE IN FUND BALANCES 91,831 (31,097) (300) 55,086 83,038 Fund balances, beginning of year 545,249 59,985 4,971 23,048 387,779 Fund balances (deficits), end of year 637,080$ 28,888$ 4,671$ 78,134$ 470,817$ Nonmajor Governmental Funds For the Year Ended June 30, 2020 Special Revenue Funds CITY OF HERMOSA BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 106 253 RTI Undersea Cable Proposition CARES Tidelands "A" Transit FEMA Act REVENUES: Property taxes -$ -$ -$ -$ Other taxes - 382,263 - - Fines and forfeitures - - - - Use of money and property - - - - Intergovernmental - - - - Charges for services - 3,667 - - Miscellaneous - - - - Interest earned on investments 9,009 24,961 - - Total revenues 9,009 410,891 - - EXPENDITURES: Current: General government - 752 249,055 - Public safety - 48,325 - - Community development - 34,615 - - Culture and recreaction - 66,864 - - Public works - - - - Capital outlay - 75,581 - - Debt service: Principal - - - - Interest and fiscal charges - - - - Total expenditures - 226,137 249,055 - REVENUES OVER (UNDER) EXPENDITURES 9,009 184,754 (249,055) - OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - CHANGE IN FUND BALANCES 9,009 184,754 (249,055) - Fund balances, beginning of year 248,025 222,604 - - Fund balances (deficits), end of year 257,034$ 407,358$ (249,055)$ -$ CITY OF HERMOSA BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 Special Revenue Funds 107 254 Special Debt Revenue Service Funds Fund Total 2015 Lease Nonmajor Storm Revenue Governmental Drain Bonds Funds REVENUES: Property taxes -$ -$ 453,536$ Other taxes 700,000 - 2,040,123 Fines and forfeitures - - 77,558 Use of money and property - - 405,433 Intergovernmental - - 1,041,950 Charges for services - - 96,762 Miscellaneous - - 8,000 Interest earned on investments 52,564 - 260,166 Total revenues 752,564 - 4,383,528 EXPENDITURES: Current: General government - - 284,092 Public safety - - 142,202 Community development - - 34,615 Culture and recreaction - - 66,864 Public works 253,959 - 945,053 Capital outlay 20,052 - 1,269,539 Debt service: Principal - 480,000 480,000 Interest and fiscal charges - 310,107 310,107 Total expenditures 274,011 790,107 3,532,472 REVENUES OVER (UNDER) EXPENDITURES 478,553 (790,107) 851,056 OTHER FINANCING SOURCES (USES): Transfers in - 789,863 1,024,826 Transfers out - - (402,287) Total other financing sources (uses)- 789,863 622,539 CHANGE IN FUND BALANCES 478,553 (244) 1,473,595 Fund balances, beginning of year 1,254,705 362 6,082,293 Fund balances (deficits), end of year 1,733,258$ 118$ 7,555,888$ CITY OF HERMOSA BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 108 255 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 28,195$ 28,195$ -$ Revenues (inflows): Property taxes 457,800 453,536 (4,264) Interest earned on investments 235 1,304 1,069 Transfers in 234,963 234,963 - Amount available for appropriations 692,998 689,803 (3,195) Charges to appropriations (outflows): Public works 700,532 691,094 9,438 Transfers out 11,054 11,054 - Total charges to appropriations 711,586 702,148 9,438 Fund balance, June 30, 2020 9,607$ 15,850$ (12,633)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Landscaping District Special Revenue Fund For the Year Ended June 30, 2020 109 256 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 401,184$ 401,184$ -$ Revenues (inflows): Intergovernmental 870,501 830,357 (40,144) Interest earned on investments 6,927 14,005 7,078 Amount available for appropriations 877,428 844,362 (33,066) Charges to appropriations (outflows): Capital outlay 822,489 369,998 452,491 Transfers out 360,763 360,763 - Total charges to appropriations 1,183,252 730,761 452,491 Fund balance, June 30, 2020 95,360$ 514,785$ (485,557)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax Special Revenue Fund For the Year Ended June 30, 2020 110 257 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 77,916$ 77,916$ -$ Revenues (inflows): Charges for services 61,528 65,585 4,057 Interest earned on investments 2,054 2,384 330 Amount available for appropriations 63,582 67,969 4,387 Charges to appropriations (outflows): General government 27,316 27,077 239 Total charges to appropriations 27,316 27,077 239 Fund balance, June 30, 2020 114,182$ 118,808$ 4,148$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual AB 939 Special Revenue Fund For the Year Ended June 30, 2020 111 258 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 34,917$ 34,917$ -$ Revenues (inflows): Intergovernmental 20,557 - (20,557) Amount available for appropriations 20,557 - (20,557) Charges to appropriations (outflows): Capital outlay 1,198,548 - 1,198,548 Transfers out 20,557 20,557 - Total charges to appropriations 1,219,105 20,557 1,198,548 Fund balance (deficit), June 30, 2020 (1,163,631)$ 14,360$ (1,219,105)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Prop A Open Space Special Revenue Fund For the Year Ended June 30, 2020 112 259 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 1,024,943$ 1,024,943$ -$ Revenues (inflows): Use of money and property 337,932 337,932 - Interest earned on investments 26,158 42,286 16,128 Amount available for appropriations 364,090 380,218 16,128 Charges to appropriations (outflows): Capital outlay - - - Total charges to appropriations - - - Fund balance, June 30, 2020 1,389,033$ 1,405,161$ 16,128$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Tyco Special Revenue Fund For the Year Ended June 30, 2020 113 260 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 11$ 11$ -$ Revenues (inflows): Interest earned on investments - 7 7 Amount available for appropriations - 7 7 Charges to appropriations (outflows): Capital outlay - - - Total charges to appropriations - - - Fund balance, June 30, 2020 11$ 18$ 7$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Tyco Tidelands Special Revenue Fund For the Year Ended June 30, 2020 114 261 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 346,802$ 346,802$ -$ Revenues (inflows): Other taxes 7,793 7,793 - Charges for services 53,404 17,216 (36,188) Interest earned on investments 8,282 12,537 4,255 Amount available for appropriations 69,479 37,546 (31,933) Charges to appropriations (outflows): Capital outlay 416,281 28,423 387,858 Total charges to appropriations 416,281 28,423 387,858 Fund balance, June 30, 2020 -$ 355,925$ (419,791)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park/Recreation Facilities Tax Special Revenue Fund For the Year Ended June 30, 2020 115 262 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 3,058$ 3,058$ -$ Revenues (inflows): Miscellaneous 4,500 4,500 - Interest earned on investments 87 145 58 Amount available for appropriations 4,587 4,645 58 Charges to appropriations (outflows): General government 1,400 1,508 (108) Transfers out 2,307 2,307 - Total charges to appropriations 3,707 3,815 (108) Fund balance, June 30, 2020 3,938$ 3,888$ 166$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Bayview Drive Administrative Expense Special Revenue Fund For the Year Ended June 30, 2020 116 263 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 6,225$ 6,225$ -$ Revenues (inflows): Interest earned on investments 156 80 (76) Amount available for appropriations 156 80 (76) Charges to appropriations (outflows): General government 100 590 (490) Transfers out 6,350 5,715 635 Total charges to appropriations 6,450 6,305 145 Fund balance (deficit), June 30, 2020 (69)$ -$ (221)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Loma District Administrative Expense Special Revenue Fund For the Year Ended June 30, 2020 117 264 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 2,934$ 2,934$ -$ Revenues (inflows): Miscellaneous 3,500 3,500 - Interest earned on investments 82 133 51 Amount available for appropriations 3,582 3,633 51 Charges to appropriations (outflows): General government 1,503 1,420 83 Transfers out 1,891 1,891 - Total charges to appropriations 3,394 3,311 83 Fund balance, June 30, 2020 3,122$ 3,256$ (32)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Beach Drive District Administrative Expense Special Revenue Fund For the Year Ended June 30, 2020 118 265 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 713,484$ 713,484$ -$ Revenues (inflows): Other taxes 339,024 317,088 (21,936) Interest earned on investments 22,288 30,444 8,156 Amount available for appropriations 361,312 347,532 (13,780) Charges to appropriations (outflows): Public works 370,875 - 370,875 Total charges to appropriations 370,875 - 370,875 Fund balance, June 30, 2020 703,921$ 1,061,016$ (384,655)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "C" Special Revenue Fund For the Year Ended June 30, 2020 119 266 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 387,496$ 387,496$ -$ Revenues (inflows): Other taxes 254,268 237,476 (16,792) Miscellaneous 384,325 - (384,325) Interest earned on investments 15,645 17,439 1,794 Amount available for appropriations 654,238 254,915 (399,323) Charges to appropriations (outflows): Capital outlay 756,091 363,386 392,705 Total charges to appropriations 756,091 363,386 392,705 Fund balance, June 30, 2020 285,643$ 279,025$ (792,028)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "R" Special Revenue Fund For the Year Ended June 30, 2020 120 267 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 18,245$ 18,245$ -$ Revenues (inflows): Intergovernmental 25,000 61,020 36,020 Interest earned on investments 432 702 270 Amount available for appropriations 25,432 61,722 36,290 Charges to appropriations (outflows): General government 3,920 3,690 230 Total charges to appropriations 3,920 3,690 230 Fund balance, June 30, 2020 39,757$ 76,277$ 36,060$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Management District Special Revenue Fund For the Year Ended June 30, 2020 121 268 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 290,266$ 290,266$ -$ Revenues (inflows): Other taxes 124,581 128,414 3,833 Interest earned on investments 6,993 11,200 4,207 Amount available for appropriations 131,574 139,614 8,040 Charges to appropriations (outflows): Public safety 70,743 48,023 22,720 Capital outlay 42,600 42,530 70 Total charges to appropriations 113,343 90,553 22,790 Fund balance, June 30, 2020 308,497$ 339,327$ (14,750)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services Special Revenue Fund For the Year Ended June 30, 2020 122 269 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 545,249$ 545,249$ -$ Revenues (inflows): Fines and forfeitures - 77,558 77,558 Interest earned on investments 12,917 20,213 7,296 Amount available for appropriations 12,917 97,771 84,854 Charges to appropriations (outflows): Public safety 62,350 2,792 59,558 Capital outlay 3,590 3,148 442 Total charges to appropriations 65,940 5,940 60,000 Fund balance, June 30, 2020 492,226$ 637,080$ 24,854$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Asset Seizure and Forfeiture Special Revenue Fund For the Year Ended June 30, 2020 123 270 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 59,985$ 59,985$ -$ Revenues (inflows): Charges for services 12,000 10,294 (1,706) Interest earned on investments 1,318 1,671 353 Amount available for appropriations 13,318 11,965 (1,353) Charges to appropriations (outflows): Public safety 43,062 43,062 - Total charges to appropriations 43,062 43,062 - Fund balance (deficit), June 30, 2020 30,241$ 28,888$ (1,353)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Fire Protection Special Revenue Fund For the Year Ended June 30, 2020 124 271 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 4,971$ 4,971$ -$ Revenues (inflows): Intergovernmental 146,081 150,573 4,492 Amount available for appropriations 146,081 150,573 4,492 Charges to appropriations (outflows): Capital outlay 304,353 150,873 153,480 Total charges to appropriations 304,353 150,873 153,480 Fund balance (deficit), June 30, 2020 (153,301)$ 4,671$ (148,988)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 2020 125 272 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 23,048$ 23,048$ -$ Revenues (inflows): Other taxes 288,170 267,089 (21,081) Interest earned on investments 5,362 3,545 (1,817) Amount available for appropriations 293,532 270,634 (22,898) Charges to appropriations (outflows): Capital outlay 306,231 215,548 90,683 Total charges to appropriations 306,231 215,548 90,683 Fund balance, June 30, 2020 10,349$ 78,134$ (113,581)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "M" Special Revenue Fund For the Year Ended June 30, 2020 126 273 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 387,779$ 387,779$ -$ Revenues (inflows): Use of money and property 354,000 67,501 (286,499) Interest earned on investments 9,528 15,537 6,009 Amount available for appropriations 363,528 83,038 (280,490) Charges to appropriations (outflows): Capital outlay 482,260 - 482,260 Total charges to appropriations 482,260 - 482,260 Fund balance, June 30, 2020 269,047$ 470,817$ (762,750)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual RTI Undersea Cable Special Revenue Fund For the Year Ended June 30, 2020 127 274 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 248,025$ 248,025$ -$ Revenues (inflows): Other taxes 192,000 - (192,000) Interest earned on investments 5,878 9,009 3,131 Amount available for appropriations 197,878 9,009 (188,869) Charges to appropriations (outflows): Capital outlay 240,000 - 240,000 Total charges to appropriations 240,000 - 240,000 Fund balance, June 30, 2020 205,903$ 257,034$ (428,869)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual RTI Undersea Cable Tidelands Special Revenue Fund For the Year Ended June 30, 2020 128 275 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 222,604$ 222,604$ -$ Revenues (inflows): Other taxes 408,722 382,263 (26,459) Charges for services 4,000 3,667 (333) Interest earned on investments 23,513 24,961 1,448 Amount available for appropriations 436,235 410,891 (25,344) Charges to appropriations (outflows): General government 1,700 752 948 Public safety 65,000 48,325 16,675 Community development 38,570 34,615 3,955 Culture and recreation 103,000 66,864 36,136 Capital outlay 127,579 75,581 51,998 Total charges to appropriations 335,849 226,137 109,712 Fund balance, June 30, 2020 322,990$ 407,358$ (135,056)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "A" Transit Special Revenue Fund For the Year Ended June 30, 2020 129 276 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 -$ -$ -$ Revenues (inflows): Intergovernmental - - - Amount available for appropriations - - - Charges to appropriations (outflows): General government - 249,055 (249,055) Total charges to appropriations - 249,055 (249,055) Fund balance (deficit), June 30, 2020 -$ (249,055)$ 249,055$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual FEMA Special Revenue Fund For the Year Ended June 30, 2020 130 277 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 1,254,705$ 1,254,705$ -$ Revenues (inflows): Other taxes - 700,000 700,000 Interest earned on investments 30,902 52,564 21,662 Transfers in 700,000 - (700,000) Amount available for appropriations 730,902 752,564 21,662 Charges to appropriations (outflows): Public works 339,543 253,959 85,584 Capital outlay 1,570,000 20,052 1,549,948 Total charges to appropriations 1,909,543 274,011 1,635,532 Fund balance, June 30, 2020 76,064$ 1,733,258$ (1,613,870)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Storm Drains Special Revenue Fund For the Year Ended June 30, 2020 131 278 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2019 362$ 362$ -$ Revenues (inflows): Transfers in 789,863 789,863 - Amount available for appropriations 789,863 789,863 - Charges to appropriations (outflows): Principal 480,000 480,000 - Interest and fiscal charges 310,212 310,107 105 Total charges to appropriations 790,212 790,107 105 Fund balance, June 30, 2020 13$ 118$ (105)$ CITY OF HERMOSA BEACH Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 2015 Lease Revenue Bond Debt Service Fund For the Year Ended June 30, 2020 132 279 This page intentionally left blank. 133 280 INTERNAL SERVICE FUNDS Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds and settlement losses. Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life. 134 281 Equipment Insurance Replacement Fund Fund Total ASSETS Current assets: Cash and investments 8,704,930$ 5,450,056$ 14,154,986$ Account receivables - 4,112 4,112 Other assets - 1,800 1,800 Total current assets 8,704,930 5,455,968 14,160,898 Noncurrent assets: Nondepreciable capital assets - 195,245 195,245 Depreciable capital assets, net of accumulated depreciation - 3,283,032 3,283,032 Total noncurrent assets - 3,478,277 3,478,277 Total assets 8,704,930 8,934,245 17,639,175 LIABILITIES Current liabilities: Accounts payable 147,404 157,753 305,157 Accrued wages and benefits payable 7,943 14,722 22,665 Workers' compensation claims payable - due within one year 809,160 - 809,160 General liability claims payable - due within one year 456,359 - 456,359 Compensated absences - due within one year 9,060 16,744 25,804 Total current liabilities 1,429,926 189,219 1,619,145 Long-term liabilities: Workers' compensation claims payable - due in more than one year 3,868,172 - 3,868,172 General liability claims payable - due in more than one year 763,041 - 763,041 Total long-term liabilities 4,631,213 - 4,631,213 Total liabilities 6,061,139 189,219 6,250,358 NET POSITION Net investment in capital assets - 3,478,277 3,478,277 Unrestricted 2,643,791 5,266,749 7,910,540 Total net position 2,643,791$ 8,745,026$ 11,388,817$ CITY OF HERMOSA BEACH Combining Statement of Net Position All Internal Service Funds June 30, 2020 135 282 Equipment Insurance Replacement Fund Fund Total OPERATING REVENUES: Charges for services 2,707,639$ 1,913,124$ 4,620,763$ Miscellaneous revenue 203,000 - 203,000 Total operating revenues 2,910,639 1,913,124 4,823,763 OPERATING EXPENSES: Salaries and wages 132,623 283,317 415,940 Contract services 1,212,702 844,292 2,056,994 Supplies 14 255,625 255,639 Claims expense 1,351,230 - 1,351,230 Depreciation - 558,647 558,647 Total operating expenses 2,696,569 1,941,881 4,638,450 OPERATING INCOME 214,070 (28,757) 185,313 NON-OPERATING REVENUES (EXPENSES): Gain on disposal of capital assets - 12,648 12,648 Total non-operating revenues (expenses)- 12,648 12,648 INCOME BEFORE TRANSFERS 214,070 (16,109) 197,961 Transfers in - 93,145 93,145 Transfers out (1,409,895) - (1,409,895) Total transfers (1,409,895) 93,145 (1,316,750) Change in net position (1,195,825) 77,036 (1,118,789) Net position, beginning of year 3,839,616 8,667,990 12,507,606 Net position, end of year 2,643,791$ 8,745,026$ 11,388,817$ CITY OF HERMOSA BEACH Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds For the year ended June 30, 2020 136 283 Equipment Insurance Replacement Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services from other funds 2,707,639$ 1,918,024$ 4,625,663$ Cash received from insurance recovery 203,000 - 203,000 Cash payments to suppliers for goods and services (45,649) (1,158,098) (1,203,747) Cash payments to employees for services (133,538) (282,189) (415,727) Cash payments for insurance premiums and claims (2,084,699) - (2,084,699) Net cash provided (used by) operating activities 646,753 477,737 1,124,490 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfers in - 93,145 93,145 Transfers out (1,409,895) - (1,409,895) Net cash provided (used by) non-capital financing activities (1,409,895) 93,145 (1,316,750) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets - (377,231) (377,231) Proceeds from sale of capital assets - 12,648 12,648 Net cash provided (used by) capital and related financing activities - (364,583) (364,583) Net increase (decrease) in cash and cash equivalents (763,142) 206,299 (556,843) Cash and equivalents, beginning of year 9,468,072 5,243,757 14,711,829 Cash and equivalents, end of year 8,704,930$ 5,450,056$ 14,154,986$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH (USED BY) OPERATING ACTIVITIES: Operating income (loss) 214,070$ (28,757)$ 185,313$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - 558,647 558,647 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable - 4,900 4,900 (Increase) decrease in other assets - 855 855 Increase (decrease) in accounts payable 127,665 (59,036) 68,629 Increase (decrease) in accrued wages and benefits payable (2,695) 577 (2,118) Increase (decrease) in workers' compensation claims payable (375,344) - (375,344) Increase (decrease) in general liability claims payable 681,268 - 681,268 Increase (decrease) in compensated absences 1,789 551 2,340 Total adjustments 432,683 506,494 939,177 Net cash provided (used) by operating activities 646,753$ 477,737$ 1,124,490$ CITY OF HERMOSA BEACH Combining Statement of Cash Flows All Internal Service Funds For the year ended June 30, 2020 137 284 This page intentionally left blank. 138 285 FIDUCIARY FUND FINANCIAL STATEMENTS The Agency Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 139 286 This page intentionally left blank. 140 287 Lower Pier Avenue Beach Drive Assessment Assessment Bayview Drive Bayview Drive District District Redemption Reserve Redemption Redemption Cash and investments 126,365$ 15,253 3,261 60,813 Interest receivable 99 12 2 48 Other accounts receivable 2,034 - - 452 Total assets 128,498$ 15,265 3,263 61,313 Installment account 128,498$ 5,265 3,263 61,313 Reserve requirement - 10,000 - - Total liabilities 128,498$ 15,265 3,263 61,313 ASSETS LIABILITIES June 30, 2020 CITY OF HERMOSA BEACH Combining Statement of Fiduciary Net Position All Agency Funds 141 288 Myrtle Avenue Loma Drive Beach Drive Utility Utility Assessment Undergrounding Undergrounding District Assessment Assessment Reserve District District Total Cash and investments 4,671$ 50,480 90,232 351,075 Interest receivable 4 - - 165 Other accounts receivable - 162 - 2,648 Total assets 4,675$ 50,642 90,232 353,888 Installment account 1,675$ 50,642 90,232 340,888 Reserve requirement 3,000 - - 13,000 Total liabilities 4,675$ 50,642 90,232 353,888 ASSETS LIABILITIES June 30, 2020 CITY OF HERMOSA BEACH Combining Statement of Fiduciary Net Position (Continued) All Agency Funds 142 289 STATISTICAL SECTION 143 290 STATISTICAL SECTION This part of the City of Hermosa Beach's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government' overall financial health. Contents Pages Financial Trends 145-150 These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. Revenue Capacity 151-157 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 158-169 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 170-172 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 173-174 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 144 291 2011 2012 2013 2014 2015 Governmental activities: Net investment in capital assets 56,693,499$ 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ Restricted 1,968,275 3,860,192 4,050,722 4,476,554 4,188,404 Unrestricted 14,122,551 10,589,507 17,294,405 22,988,231 (24,869,037) Total governmental activities net position 72,784,325$ 79,968,435$ 85,480,868$ 92,292,790$ 46,052,668$ Business-type activities: Net investment in capital assets 9,998,669$ -$ -$ -$ -$ Restricted - - - - - Unrestricted (838,749) - - - - Total business-type activities net position 9,159,920$ -$ -$ -$ -$ Primary government: Net investment in capital assets 66,692,168$ 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ Restricted 1,968,275 3,860,192 4,050,722 4,476,554 4,188,404 Unrestricted 13,283,802 10,589,507 17,294,405 22,988,231 (24,869,037) Total primary government net position 81,944,245$ 79,968,435$ 85,480,868$ 92,292,790$ 46,052,668$ 1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. CITY OF HERMOSA BEACH Net Position by Component Fiscal Year Last Ten Fiscal Years (accrual basis of accounting) 145 292 2016 2017 2018 2019 2020 Governmental activities: Net investment in capital assets 66,933,796$ 66,417,072$ 66,333,070$ 64,375,911$ 66,556,499$ Restricted 3,774,552 5,260,908 5,584,794 5,056,977 6,399,646 Unrestricted (18,769,530) (13,287,058) (10,942,703) (8,841,583) (12,400,420) Total governmental activities net position 51,938,818$ 58,390,922$ 60,975,161$ 60,591,305$ 60,555,725$ Business-type activities: Net investment in capital assets -$ -$ -$ -$ -$ Restricted - - - - - Unrestricted - - - - - Total business-type activities net position -$ -$ -$ -$ -$ Primary government: Net investment in capital assets 66,933,796$ 66,417,072$ 66,333,070$ 64,375,911$ 66,556,499$ Restricted 3,774,552 5,260,908 5,584,794 5,056,977 6,399,646 Unrestricted (18,769,530) (13,287,058) (10,942,703) (8,841,583) (12,400,420) Total primary government net position 51,938,818$ 58,390,922$ 60,975,161$ 60,591,305$ 60,555,725$ 1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. CITY OF HERMOSA BEACH Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) (Continued) Fiscal Year 146 293 2011 2012 2013 2014 2015 Expenses: Governmental activities: Legislative and legal 972,979$ 4,677,233$ 881,556$ 1,076,211$ 1,293,214$ General government 3,102,761 2,376,929 2,458,548 2,827,895 3,078,044 Public safety 17,698,263 18,179,929 16,431,962 16,856,166 16,737,044 Community development 1,223,581 1,235,058 1,260,996 1,519,632 1,710,563 Culture and recreation 1,133,467 1,037,790 1,087,000 1,068,388 1,257,311 Public works 6,725,147 7,239,076 7,529,499 7,420,724 6,985,762 Interest and fiscal charges - - - - - Total governmental activities expenses 30,856,198 34,746,015 29,649,561 30,769,016 31,061,938 Business-type activities: Downtown Enhancement 878,021 906,244 - - - Total business-type activities expenses 878,021 906,244 - - - Total primary government expenses 31,734,219 35,652,259 29,649,561 30,769,016 31,061,938 Program revenues: Governmental activities: Charges for services: General government 546,793 555,607 2,275,297 2,323,797 2,582,857 Public safety 4,646,663 5,112,011 5,282,223 5,455,694 5,398,329 Community development 797,248 860,158 1,125,637 1,641,773 1,679,400 Culture and recreation 975,469 957,989 1,271,845 1,425,451 1,522,417 Public works 1,025,008 938,822 989,656 892,784 1,085,165 Operating grants and contributions 700,691 828,722 702,873 1,106,254 983,628 Capital grants and contributions 902,506 759,889 255,996 260,844 328,649 Total governmental activities program revenues: 9,594,378 10,013,198 11,903,527 13,106,597 13,580,445 Business-type activities: Charges for services: Downtown Enhancement 1,409,952 1,649,197 - - - Total business-type activities program revenues: 1,409,952 1,649,197 - - - Total primary government program revenues: 11,004,330 11,662,395 11,903,527 13,106,597 13,580,445 Last Ten Fiscal Years (accrual basis of accounting) CITY OF HERMOSA BEACH Changes in Net Position Fiscal Year 147 294 2011 2012 2013 2014 2015 Net revenues (expenses): Governmental activities (21,261,820) (24,732,817) (17,746,034) (17,662,419) (17,481,493) Business-type activities 531,931 742,953 - - - Total net revenues (expenses) (20,729,889) (23,989,864) (17,746,034) (17,662,419) (17,481,493) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 11,518,645 11,598,615 12,151,229 12,910,426 13,739,648 Sales tax 2,209,559 2,474,651 2,598,752 2,653,631 2,768,225 Other taxes 6,060,992 6,461,065 6,638,189 6,924,202 7,179,945 Grants and contributions not restricted to specific programs 1,666,460 1,121,380 1,156,589 1,222,808 1,246,419 Investment income 91,910 109,571 130,709 141,794 510,668 Other general revenues 352,723 237,670 582,999 621,480 489,740 Transfers 259,513 9,913,975 - - - Settlement - - - - (14,000,000) Total governmental activities 22,159,802 31,916,927 23,258,467 24,474,341 11,934,645 Business-type activities: Investment income 4,679 6,418 - - - Miscellaneous 30,613 4,684 - - - Transfers (259,513) (9,913,975) - - - Total business-type activities (224,221) (9,902,873) - - - Total primary government 21,935,581 22,014,054 23,258,467 24,474,341 11,934,645 Changes in net assets Governmental activities: 897,982 7,184,110 5,512,433 6,811,922 (5,546,848) Business-type activities: 307,710 (9,159,920) - - - Total primary government 1,205,692$ (1,975,810)$ 5,512,433$ 6,811,922$ (5,546,848)$ (accrual basis of accounting) (Continued) Fiscal Year CITY OF HERMOSA BEACH Changes in Net Position Last Ten Fiscal Years 148 295 2016 2017 2018 2019 2020 Expenses: Governmental activities: Legislative and legal 2,083,297$ 2,043,740$ 1,869,599$ 1,563,872$ 1,644,044$ General government 2,262,107 3,598,512 4,129,246 4,257,735 6,023,648 Public safety 20,034,932 18,911,734 25,496,398 21,257,544 25,546,098 Community development 1,347,087 1,787,364 2,264,015 2,054,759 3,215,102 Culture and recreation 1,108,749 1,310,740 1,769,893 1,565,784 1,867,143 Public works 9,131,490 7,957,044 9,176,521 12,847,372 7,515,310 Interest and fiscal charges - - - 375,815 295,723 Total governmental activities expenses 35,967,662 35,609,134 44,705,672 43,922,881 46,107,068 Business-type activities: Downtown Enhancement - - - - - Total business-type activities expenses - - - - - Total primary government expenses 35,967,662 35,609,134 44,705,672 43,922,881 46,107,068 Program revenues: Governmental activities: Charges for services: General government 2,414,955 2,433,987 2,538,028 476,403 685,320 Public safety 5,254,859 4,993,104 4,957,188 3,137,319 4,857,617 Community development 1,996,538 1,664,132 1,691,752 1,735,699 1,532,538 Culture and recreation 1,178,323 1,341,455 1,223,789 974,306 546,379 Public works 2,217,610 2,374,774 2,292,254 3,426,223 1,426,203 Operating grants and contributions 755,650 601,816 517,244 3,505,669 3,419,173 Capital grants and contributions 203,033 327,534 27,821 526,421 833,644 Total governmental activities program revenues: 14,020,968 13,736,802 13,248,076 13,782,040 13,300,874 Business-type activities: Charges for services: Downtown Enhancement - - - - - Total business-type activities program revenues: - - - - - Total primary government program revenues: 14,020,968 13,736,802 13,248,076 13,782,040 13,300,874 Fiscal Year CITY OF HERMOSA BEACH Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Continued) 149 296 2016 2017 2018 2019 2020 Net revenues (expenses): Governmental activities (21,946,694) (21,872,332) (31,457,596) (30,140,841) (32,806,194) Business-type activities - - - - - Total net revenues (expenses) (21,946,694) (21,872,332) (31,457,596) (30,140,841) (32,806,194) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 15,317,458 15,714,094 17,097,712 18,640,303 19,584,959 Sales tax 2,895,794 2,816,289 3,151,207 3,133,311 2,722,468 Other taxes 7,527,467 7,930,375 7,878,400 7,107,116 7,134,010 Grants and contributions not restricted to specific programs 1,369,042 1,304,880 1,315,223 2,346,524 1,829,299 Investment income 455,234 - - - - Other general revenues 267,849 564,798 982,343 2,701,560 1,499,878 Transfers - - - - - Settlement (Note 14) - - - - - Total governmental activities 27,832,844 28,330,436 30,424,885 33,928,814 32,770,614 Business-type activities: Investment income - - - - - Miscellaneous - - - - - Transfers - - - - - Total business-type activities - - - - - Total primary government 27,832,844 28,330,436 30,424,885 33,928,814 32,770,614 Changes in net assets Governmental activities: 5,886,150 6,458,104 (1,032,711) 3,787,973 (35,580) Business-type activities: - - - - - Total primary government 5,886,150$ 6,458,104$ (1,032,711)$ 3,787,973$ (35,580)$ Last Ten Fiscal Years (accrual basis of accounting) (Continued) Fiscal Year CITY OF HERMOSA BEACH Changes in Net Position 150 297 1/2 cent Fiscal Real sales tax year property extension Transient Utility ended Property Sales transfer Franchise for public occupancy user's Business June 30 tax tax tax fees safety tax tax license Total 2011 11,518,645 2,209,559 178,912 698,622 165,627 1,689,356 2,520,720 807,755 19,789,196 2012 11,639,960 2,474,650 177,555 730,953 180,493 1,884,020 2,495,895 950,803 20,534,329 2013 12,151,229 2,598,752 233,412 752,586 192,175 1,996,174 2,503,265 950,526 21,378,119 2014 12,910,426 2,653,631 290,379 788,694 182,608 2,204,420 2,443,285 1,006,478 22,479,921 2015 13,739,648 2,768,225 312,416 785,935 229,824 2,349,750 2,442,575 1,059,445 23,687,818 2016 15,317,458 2,895,795 320,731 776,316 212,511 2,762,444 2,388,825 1,058,663 25,732,743 2017 15,714,094 2,886,298 345,603 720,338 218,092 3,237,026 2,302,024 1,098,421 26,521,896 2018 17,097,712 3,151,207 326,224 722,316 233,291 3,295,207 2,229,906 1,061,130 28,116,993 2019 18,640,303 3,133,311 272,138 720,853 244,252 3,251,349 2,195,815 1,107,723 29,565,744 2020 19,584,959 2,722,468 313,331 717,191 239,965 2,599,810 2,093,903 1,162,017 29,433,644 (accrual basis of accounting) CITY OF HERMOSA BEACH Governmental Activities Tax Revenues By Source Last Ten Years 151 298 This page intentionally left blank. 152 299 2011 2012 2013 2014 2015 General Fund: Reserved Unreserved Non-spendable 35,613$ 14,271$ 21,589$ 10,603$ 19,444$ Restricted 172,021 255,200 391,504 410,289 460,304 Committed 10,592 10,592 10,592 28,900 28,900 Assigned 5,635,231 5,776,500 6,555,423 7,655,210 10,005,040 Unassigned - - - - - Total general fund 5,853,457$ 6,056,563$ 6,979,108$ 8,105,002$ 10,513,688$ All other governmental funds: Reserved Unreserved, reported in: Special revenue funds Non-spendable -$ 1,500$ -$ 1,600$ -$ Restricted - 3,604,992 3,659,218 4,083,450 3,728,100 Committed - 117,415 137,166 432,606 431,716 Assigned 4,216,497 961,251 847,266 2,831,179 7,646,948 Unassigned - - - - - Total all other governmental funds 4,216,497$ 4,685,158$ 4,643,650$ 7,348,835$ 11,806,764$ Total governmental funds 10,069,954$ 10,741,721$ 11,622,758$ 15,453,837$ 22,320,452$ (modified accrual basis of accounting) Fiscal Year CITY OF HERMOSA BEACH Fund Balances of Governmental Funds Last Ten Fiscal Years 153 300 2016 2017 2018 2019 2020 General Fund: Reserved Unreserved Non-spendable 21,261$ 66,700$ 478,479$ 40,110$ 499,454$ Restricted 329,890 158,149 170,336 345,902 318,206 Committed 28,900 1,115,600 1,144,500 1,108,275 1,937,335 Assigned 8,529,250 8,322,103 7,781,460 9,019,805 8,616,151 Unassigned - - - - 1,751,727 Total general fund 8,909,301$ 9,662,552$ 9,574,775$ 10,514,092$ 13,122,873$ All other governmental funds: Reserved Unreserved, reported in: Special revenue funds Non-spendable 5,835$ 7,083$ 9,280$ 2,310$ 15,907$ Restricted 3,430,617 5,102,759 7,677,889 5,561,493 6,810,428 Committed 1,305,276 879,008 1,144,884 1,024,954 1,405,179 Assigned 11,348,565 12,706,958 13,068,691 16,241,139 14,596,399 Unassigned (24,138) - - (111) (249,166) Total all other governmental funds 16,066,155$ 18,695,808$ 21,900,744$ 22,829,785$ 22,578,747$ Total governmental funds 24,975,456$ 28,358,360$ 31,475,519$ 33,343,877$ 35,701,620$ (modified accrual basis of accounting) (Continued) Fiscal Year CITY OF HERMOSA BEACH Fund Balances of Governmental Funds Last Ten Fiscal Years 154 301 2011 2012 2013 2014 2015 Revenues: Property taxes 11,978,616$ 12,056,548$ 12,618,579$ 13,368,615$ 14,198,054$ Other taxes 9,023,359 9,722,036 10,076,591 10,492,906 10,992,377 Licenses and permits 627,056 668,405 783,121 971,336 916,073 Fines and forfeitures 2,219,052 2,475,311 2,416,031 2,781,240 2,652,193 Use of money and property 653,752 815,367 1,102,797 1,077,154 1,087,758 Intergovernmental 1,678,980 1,555,097 896,216 1,350,674 1,290,849 Charges for services 4,005,420 4,301,971 6,312,731 6,722,773 7,318,409 Miscellaneous 538,098 198,858 469,725 630,271 688,047 Interest earned on investments 91,913 109,186 131,749 137,909 244,026 Total revenues 30,816,246 31,902,779 34,807,540 37,532,878 39,387,786 Expenditures Current: Legislative and legal 960,365 1,170,820 893,460 1,093,518 1,170,229 General government 3,001,906 2,293,402 2,550,162 2,806,176 3,040,426 Public safety 16,516,892 16,604,695 16,926,014 17,768,720 18,142,958 Community development 1,189,993 1,177,696 1,279,999 1,548,185 1,722,513 Culture and recreation 1,044,131 989,265 1,110,456 1,132,849 1,246,532 Public works 3,907,921 3,852,318 4,946,423 5,216,430 5,317,541 Capital outlay 3,044,697 2,414,507 1,813,990 2,774,016 3,620,185 Debt service: Principal n/a n/a n/a n/a n/a Interest n/a n/a n/a n/a n/a Total expenditures 29,665,905 28,502,703 29,520,504 32,339,894 34,260,384 Excess (deficiency) of revenues over (under) expenditures 1,150,341 3,400,076 5,287,036 5,192,984 5,127,402 Other financing sources (uses) Proceeds from sale of assets 2,360 - - - Transfers in 2,239,196 1,911,100 1,381,842 3,905,349 6,911,913 Transfers out (4,045,652) (4,641,769) (5,787,841) (5,267,254) (5,172,700) Total other financing sources (uses) (1,806,456) (2,728,309) (4,405,999) (1,361,905) 1,739,213 Net change in fund balances (656,115)$ 671,767$ 881,037$ 3,831,079$ 6,866,615$ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% Fiscal Year CITY OF HERMOSA BEACH Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 155 302 2016 2017 2018 2019 2020 Revenues: Property taxes 15,113,479$ 16,209,008$ 17,530,492$ 18,565,796$ 19,573,354$ Other taxes 11,302,910 11,821,528 12,248,900 12,306,567 11,188,808 Licenses and permits 1,111,366 967,956 1,055,631 850,059 729,622 Fines and forfeitures 2,412,554 2,122,335 2,809,367 2,373,432 2,237,802 Use of money and property 965,738 1,047,084 1,340,018 1,952,941 1,069,049 Intergovernmental 949,255 1,031,191 358,523 1,062,434 1,333,882 Charges for services 8,130,681 8,412,322 9,259,210 8,303,529 7,346,217 Miscellaneous 679,937 540,021 249,152 634,114 673,546 Interest earned on investments 445,260 6,175 152,359 1,380,012 1,173,125 Total revenues 41,111,180 42,157,620 45,003,652 47,428,884 45,325,405 Expenditures Current: Legislative and legal 1,958,940 1,448,509 1,313,261 1,499,065 1,300,018 General government 3,458,191 3,722,659 3,751,020 4,274,743 4,850,826 Public safety 21,272,474 21,392,637 21,468,409 22,087,381 21,676,051 Community development 1,806,130 1,869,018 2,034,235 2,063,502 2,140,913 Culture and recreation 1,291,808 1,395,915 1,446,996 1,600,519 1,587,893 Public works 6,622,698 6,106,648 6,343,525 6,756,773 6,732,270 Capital outlay 2,953,123 1,644,253 2,164,817 6,058,710 5,206,334 Debt service: Principal - 335,000 434,992 460,000 480,000 Interest 233,425 375,332 355,738 332,497 310,107 Total expenditures 39,596,789 38,289,971 39,312,993 45,133,190 44,284,412 Excess (deficiency) of revenues over (under) expenditures 1,514,391 3,867,649 5,690,659 2,295,694 1,040,993 Other financing sources (uses) Proceeds from sale of assets 11,799,905 - - - - Transfers in 5,733,408 1,942,014 1,271,842 4,155,801 3,930,602 Transfers out (16,392,700) (2,356,750) (3,915,326) (4,583,137) (2,613,852) Total other financing sources (uses) 1,140,613 (414,736) (2,643,484) (427,336) 1,316,750 Net change in fund balances 2,655,004$ 3,452,913$ 3,047,175$ 1,868,358$ 2,357,743$ Debt service as a percentage of noncapital expenditures 0.6% 2.0% 2.2% 2.1% 2.1% Fiscal Year CITY OF HERMOSA BEACH Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Continued) 156 303 Fiscal Real year property Transient Utility ended Property Sales transfer Franchise occupancy user's June 30 tax tax tax fees tax tax Other Total 2011 11,978,616 2,209,559 178,912 698,622 1,689,356 2,520,720 1,726,190 21,001,975 2012 12,056,548 2,474,650 177,555 730,954 1,884,020 2,495,895 1,958,962 21,778,584 2013 12,618,579 2,598,752 233,412 752,586 1,996,174 2,503,265 1,992,402 22,695,170 2014 13,368,615 2,653,631 290,379 788,694 2,204,420 2,443,285 2,112,497 23,861,521 2015 14,198,054 2,768,225 312,416 785,935 2,349,750 2,442,575 2,333,476 25,190,431 2016 15,113,479 2,895,794 320,731 776,316 2,762,444 2,388,824 2,290,061 26,547,649 2017 16,209,008 2,886,298 345,603 720,338 3,237,026 2,302,024 2,330,238 28,030,535 2018 17,530,492 3,151,207 326,224 722,316 3,295,207 2,229,906 2,524,040 29,779,392 2019 18,565,796 3,133,311 272,138 720,853 3,251,349 1,495,815 3,433,101 30,872,363 2020 19,573,354 2,722,468 313,331 717,191 2,599,810 2,093,903 2,742,105 30,762,162 (modified accrual basis of accounting) CITY OF HERMOSA BEACH General Government Tax Revenues By Source Last Ten Fiscal Years 157 304 Fiscal Total Estimated year Total taxable direct actual ended Residential Commercial Industrial Less assessed tax taxable Percentage June 30 property property property Other exemptions value rate value increase 2011 4,422,662 397,297 12,412 76,659 (46,807) 4,862,223 1.00 4,909,030 0.80% 2012 4,479,178 407,825 11,156 92,987 (46,205) 4,944,941 1.00 4,991,146 1.70% 2013 4,608,192 422,855 11,853 96,628 (46,338) 5,093,190 1.00 5,139,528 3.00% 2014 4,883,870 437,214 10,379 95,294 (47,030) 5,379,727 1.00 5,332,719 5.63% 2015 5,181,815 455,035 12,635 104,834 (43,278) 5,711,041 1.00 5,667,767 6.16% 2016 5,522,546 484,979 13,186 111,635 (43,260) 6,089,086 1.00 6,045,828 6.62% 2017 5,994,296 508,160 13,921 120,700 (43,295) 6,593,782 1.00 6,550,489 8.29% 2018 6,432,195 532,168 14,242 145,238 (41,125) 7,082,718 1.00 7,041,591 7.42% 2019 6,837,257 566,389 15,437 162,374 (41,043) 7,540,414 1.00 7,499,372 6.46% 2020 7,218,636 599,922 16,254 181,411 (26,930) 7,989,293 1.00 7,962,363 5.95% NOTE: Source: Los Angeles County Auditor-Controller Note: Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. CITY OF HERMOSA BEACH Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (In Thousands) In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 158 305 City direct rate Overlapping rates El Camino Flood Fiscal Basic Hermosa Beach Community Los Angeles Control Metropolitan Year rate * School District College District County District Water District Total 2011 1.000000 0.018067 0.016140 - - 0.003700 1.037907 2012 1.000000 0.016904 0.016884 - - 0.003700 1.037488 2013 1.000000 0.018550 0.018490 - - 0.003500 1.040540 2014 1.000000 0.017970 0.017498 - - 0.003500 1.038968 2015 1.000000 0.014729 0.017422 - - 0.003500 1.035651 2016 1.000000 0.015746 0.017447 - - 0.003500 1.036693 2017 1.000000 0.014928 0.022942 - - 0.003500 1.041370 2018 1.000000 0.040245 0.021199 - - 0.003500 1.064944 2019 1.000000 0.025942 0.022229 - - 0.003500 1.051671 2020 1.000000 0.039696 0.021555 - - 0.003500 1.064751 Source: Los Angeles County Auditor-Controller CITY OF HERMOSA BEACH Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of assessed value) Note: In 1978 California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is shared by all taxing agencies wherein the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. * The Basic rate for all years is comprised of the following: 0.2774 - Los Angeles County 0.2030 - Tax District # 1 0.1602 - Educational Augmentation Fund Impound 0.0849 - Educational Revenue Augmentation Fund 0.0541 - Hermosa Beach City School District 0.0526 – Redondo Beach Unified School District 0.0281 - Development Center Handicapped Minor – Redondo Beach 0.0275 - El Camino Community College District 0.0264 – Manhattan Beach Unified School District 0.0210 - Los Angeles County Library 0.01410 – Development Center Handicapped Minor – Manhattan Beach 0.01203 - South Bay Cities Sanitation District Operating 0.00861 - Los Angeles County Flood Control Maintenance 0.00859 - County School Service Fund – Hermosa Beach 0.00827 - Beach Cities Hospital District 0.00637 – Los Angeles County FFW 0.00258 - Childrens Instil. Tuition Fund 0.00152 - Los Angeles Flood Drain Improvement District Maintenance 0.00130 - County School Services 0.00094 – Development Center Handicapped Minor – Hermosa Beach C 0.00019 - Los Angeles County West Vector Control District 0.00016 - Water Replenishment District of Southern California 0.00010 - Los Angeles County Accumulated Capital Outlay 1.0000000 159 306 Percent of total Taxable city taxable assessed value assessed value Crico of Fountain Place Limited Partnership (1) 84,060,546$ 1.05% EQR Gallery Apartments Limited Partnership (1) 75,263,017 0.94% South Bay LLC (7) 26,950,453 0.34% 1601 PCH LP (1) 26,415,600 0.33% Stand and Pier Hermosa Parent LLC (5) 25,226,978 0.32% Sailfish Holdings LLC (3) 20,017,939 0.25% Hermosa Hotel Investments LLC (1) 19,827,880 0.25% IWF Hotel Hermosa LP (1) 17,879,568 0.22% International Church of the Foursquare (5) 17,807,289 0.22% Kathy Ishii Trust (2) 17,770,053 0.22% 331,219,323$ 4.14% Percent of total Taxable city taxable assessed value assessed value 72,854,465$ 1.50% EQR Gallery Apartments Limited Partnership (1) 66,974,494 1.38% Diana Albergate Trust (5) 24,874,122 0.51% 1601 PCH LP (1) 23,750,000 0.49% Barbara K Robinson (5) 19,301,191 0.40% Sepulveda Blvd Properties LLC (5) 17,290,778 0.36% Hermosa Hotel Investments LLC (1) 16,398,759 0.34% Reg8 Plaza Hermosa LLC (7) 14,270,539 0.29% Beta Group (2) 12,322,479 0.25% Robert J & Renae Desantis Trust (1) 11,907,050 0.24% 279,943,877$ 5.76% Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls Numbers in parentheses represent the number of parcels owned by the tax payer. CITY OF HERMOSA BEACH Principal Property Tax Payers Current Year and Ten Years ago Taxpayer Crico of Fountain Place Limited Partnership (1) Taxpayer 2011 2020 160 307 Fiscal Taxes levied Collections in year ended for the Percent subsequent Percent June 30 fiscal year Amount of levy years Amount of levy 2011 10,298,644 9,789,691 95.06% - 9,789,691 95.06% 2012 10,477,164 9,971,097 95.17% - 9,971,097 95.17% 2013 10,761,548 10,422,088 96.85% - 10,422,088 96.85% 2014 11,124,112 10,798,615 97.07% - 10,798,615 97.07% 2015 12,081,959 11,805,592 97.71% - 11,805,592 97.71% 2016 12,879,664 12,577,259 97.65% - 12,577,259 97.65% 2017 13,875,400 13,547,393 97.64% - 13,547,393 97.64% 2018 14,957,019 14,575,846 97.45% - 14,575,846 97.45% 2019 15,894,003 15,455,825 97.24% - 15,455,825 97.24% 2020 16,884,378 16,257,197 96.29% - 16,257,197 96.29% Source: Los Angeles County Auditor-Controller fiscal year of levy Total collections to date CITY OF HERMOSA BEACH Property Tax Levies and Collections Last Ten Fiscal Years Collected within the 161 308 Fiscal year ended Number of Number of Total assessed June 30 permits Valuation permits Valuation value 2011 486 16,079,850 81 2,599,656 4,862,223,524 2012 410 15,944,064 82 3,597,461 4,944,940,538 2013 462 24,241,397 56 2,710,750 5,093,189,582 2014 468 36,787,127 69 3,946,450 5,379,750,286 2015 457 39,058,181 52 1,947,535 5,711,045,616 2016 554 44,224,105 68 9,283,387 6,089,089,031 2017 448 37,467,738 40 4,791,924 6,593,783,921 2018 475 30,748,372 44 6,234,344 7,082,716,558 2019 422 40,170,245 38 2,785,223 7,540,414,646 2020 388 31,076,905 43 4,961,480 7,989,293,188 Source: City of Hermosa Beach Community Development Department Los Angeles County Auditor-Controller Residential Commercial CITY OF HERMOSA BEACH Construction Value and Property Value Last Ten Fiscal Years 162 309 City assessed valuation 7,989,293,188$ Redevelopment agency incremental valuation - Total assessed valuation 7,989,293,188$ Estimated share of Percentage Outstanding debt overlapping applicable 6/30/19 debt Overlapping debt repaid with property taxes: West Basin Water District debt service 0.620% 18,151,752 112,566 Hermosa Beach School District debt service 2005 refunding 100.000% 4,583,647 4,583,647 Hermosa Beach School District debt service 2016 A 100.000% 24,135,000 24,135,000 Hermosa Beach School District debt service 2016 B 100.000% 23,000,000 23,000,000 El Camino Community College District 2002 series 2012C 6.715% 175,210,018 11,765,515 El Camino Community College District 2012 refunding 6.715% 25,335,000 1,701,269 El Camino Community College District 2012 series 2016 A 6.715% 88,550,000 5,946,215 El Camino Community College District 2016 refunding 6.715% 66,625,000 4,473,931 El Camino Community College District 2012 series 2018B 6.715% 48,610,000 3,264,207 Total overlapping debt repaid with property taxes 474,200,417$ 78,982,350 City direct debt: 2015 Lease Revenue Bonds (including premiums) 10,047,508$ Total City direct debt 10,047,508 Total direct and overlapping debt 89,029,858$ Direct Debt 0.000% Overlapping Debt 0.990% Total Debt 0.990% Source: HdL Coren & Cone Los Angeles County Assessor's Office The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. CITY OF HERMOSA BEACH Direct and Overlapping Debt June 30, 2020 163 310 This page intentionally left blank. 164 311 2011 2012 2013 2014 2015 Assessed valuation 4,862,223,524$ 4,944,940,538$ 5,093,189,582$ 5,379,750,286$ 5,711,045,616$ Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,215,555,881$ 1,236,235,135$ 1,273,297,396$ 1,344,937,572$ 1,427,761,404$ Debt limit percentage 15% 15% 15% 15% 15% Debt limit 182,333,382$ 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ Total net debt applicable to limit -$ -$ -$ -$ -$ Legal debt margin 182,333,382$ 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ Total debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 0% California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted. Source: City of Hermosa Beach Finance Department County of Los Angeles, Auditor-Controller Fiscal Year CITY OF HERMOSA BEACH Legal Debt Margin Information Last Ten Fiscal Years 165 312 2016 2017 2018 2019 2020 Assessed valuation 6,089,089,031$ 6,593,783,921$ 7,082,716,558$ 7,540,414,646$ 7,989,293,188$ Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,522,272,258$ 1,648,445,980$ 1,770,679,140$ 1,885,103,662$ 1,997,323,297$ Debt limit percentage 15% 15% 15% 15% 15% Debt limit 228,340,839$ 247,266,897$ 265,601,871$ 282,765,549$ 299,598,495$ Total net debt applicable to limit -$ 11,265,000$ 10,830,000$ 10,370,000$ 9,890,000$ Legal debt margin 228,340,839$ 236,001,897$ 254,771,871$ 272,395,549$ 289,708,495$ Total debt applicable to the limit as a percentage of debt limit 0% 4.7% 4.3% 3.8% 3.4% California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted. Source: City of Hermosa Beach Finance Department County of Los Angeles, Auditor-Controller Fiscal Year CITY OF HERMOSA BEACH Legal Debt Margin Information Last Ten Fiscal Years (Continued) 166 313 Fiscal Year Ended June 30 Lease Revenue Bonds Total Government Activities Total Primary Government Percentage of Personal Income1 Per Capita Debt2 2011 - - - N/A - 2012 - - - N/A - 2013 - - - N/A - 2014 - - - N/A - 2015 - - - N/A - 2016 11,600,000$ 11,600,000$ 11,600,000$ 0.96% 586 2017 11,265,000$ 11,265,000$ 11,265,000$ 0.99% 574 2018 10,830,000$ 10,830,000$ 10,830,000$ 1.12% 551 2019 10,370,000$ 10,370,000$ 10,370,000$ 1.20% 522 2020 9,890,000$ 9,890,000$ 9,890,000$ 1.38% 504 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements 1 This ratio is calculated using the median household income for the prior calendar year. 2 This ratio is calculated using the population total as of January 1 of the calendar year. Governmental Acitvities CITY OF HERMOSA BEACH Ratios of Outstanding Debt by Type Last Ten Calendar Years 167 314 Fiscal Year Ended June 30 Lease Revenue Bonds Total Percent Assessed Value1 Per Capita 2011 - - - - 2012 - - - - 2013 - - - - 2014 - - - - 2015 - - - - 2016 11,600,000$ 11,600,000$ 52.49% 586 2017 11,265,000$ 11,265,000$ 58.53% 574 2018 10,830,000$ 10,830,000$ 65.40% 551 2019 10,370,000$ 10,370,000$ 72.71% 522 2020 9,890,000$ 9,890,000$ 80.78% 504 1 Assessed value has been used because actual value of taxable property is not readily available in the State of California. CITY OF HERMOSA BEACH Ratios of General Bonded Debt Outstanding Last Ten Calendar Years Outstanding General Bonded Debt (In thousands, except per capita) Note: General bonded is debt payable with government fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 168 315 Revenue Principal 1 Interest Coverage 2011 30,816 26,621 4,195 - - - 2012 31,903 25,997 5,906 - - - 2013 34,808 27,707 7,101 - - - 2014 37,533 29,566 7,967 - - - 2015 39,388 30,640 8,748 - - - 2016 41,111 36,404 4,707 - 270 17.43 2017 42,088 35,936 6,152 335 375 8.66 2018 45,004 36,356 8,648 435 356 10.93 2019 47,429 38,282 9,147 460 332 11.55 2020 45,325 38,630 6,695 480 310 8.47 1 There was no principal payment due in the 15/16 fiscal year. CITY OF HERMOSA BEACH Pledged-Revenue Coverage Last Ten Calendar Years (In thousands) Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses. Less: Operating Expenses Net Available Revenue Debt ServiceFiscal Year Ended June 30 Outstanding General Bonded Debt 169 316 Personal income Per capita City per capita Unemployment School Calendar Population (in thousands) personal income personal income rate enrollment Year (1) (2) (2) (3) (4) (5) 2011 19,510 420,913,463 42,564 - 5.5% 1,420 2012 19,574 420,913,463 42,564 - 4.9% 1,608 2013 19,653 420,913,463 42,564 - 4.5% 1,710 2014 19,750 466,098,988 46,530 - 3.6% 1,764 2015 19,772 499,767,889 49,400 - 3.1% 1,827 2016 19,801 544,324,900 53,521 - 2.2% 1,765 2017 19,616 563,907,868 55,624 - 1.9% 1,672 2018 19,673 593,741,110 58,419 - 2.2% 1,576 2019 19,847 628,808,732 62,224 - 2.2% 1,568 2020 19,614 653,482,910 65,094 - 10.2% 1,593 Source: (1) State of California Department of Finance. (2) U.S. Department of Commerce, Bureau of Economic Analysis (data shown is for Los Angeles County), which was last updated in 2019. (3) Personal Income figures for 2008 are from the Internal Revenue Service individual income tax statistics by zip code and for Internal Revenue Service figures are not an ongoing statistical project therefore all years are not available. Census information is available every 10 years, however 2010 information is not yet available. (4) State of California Employment Development Department. (5) State of California Department of Education. CITY OF HERMOSA BEACH Demographic and Economic Statistics Last Ten Calendar Years 170 317 Number of Percent of total Employer employees employment Early Strides Child Development Center 148 3.13% City of Hermosa Beach 144 3.05% Von's 111 2.35% Hermosa Beach School District 94 1.99% Trader Joe's 85 1.80% Lazy Acres 84 1.78% Sunrise Assissted Living 83 1.76% Hennessey's Tavern 75 1.59% First Steps for Kids, Inc. 70 1.48% Sangria dba American Junkie 66 1.40% Number of Percent of total Employer employees employment 24 Hour Fitness 175 3.93% City of Hermosa Beach 163 3.66% Hope Chapel 120 2.69% Von's 117 2.63% Hermosa Beach School District 113 2.54% Hennessey's Tavern 94 2.11% Shorewood Realtors, Inc. 87 1.95% Ralph's Grocery 69 1.55% First Step for Kids, Inc. 60 1.35% Comedy & Magic Club 59 1.32% Source: City of Hermosa Beach Finance Department 2020 2011 CITY OF HERMOSA BEACH Principal Employers Current Year and Ten Years Ago 171 318 Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General government 16 13 17 18 20 20 21 21 20 19 Public safety 72 74 74 75 81 82 76 63 1 64 65 Community development 9 8 8 8 8 10 11 12 11 12 Culture and recreation 3 3 2 2 3 4 4 4 4 4 Public works 16 17 15 20 17 23 23 21 20 22 Total 116 115 116 123 129 139 135 121 119 122 Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General government - - - 3 4 6 4 5 10 5 Public safety 26 12 24 13 6 14 5 3 1 32 Community development 1 1 1 2 3 2 3 2 4 3 Culture and recreation 20 19 26 21 25 27 29 25 40 9 Public works - 1 2 - 3 1 3 2 3 3 Total 47 33 53 39 41 50 44 37 60 22 Source: City of Hermosa Beach Finance Department 1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department. CITY OF HERMOSA BEACH Full-time and Part-time City Employees by Function Last Ten Fiscal Years Full-time employees as of June 30 Part-time employees as of June 30 172 319 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Public safety Police: Physical arrests 795 781 857 945 732 739 615 589 536 389 Traffic citations issued 1,593 2,290 1,819 3,421 2,406 1,966 1,826 1,408 1,154 498 Parking citations issued 63,010 68,193 70,678 74,228 65,783 62,957 56,398 57,206 66,029 66,029 Fire: Number of emergency calls 2,149 2,487 2,488 2,386 2,467 2,678 2,427 1,965 1 1,549 2,344 Inspections 436 559 495 657 1,061 540 611 227 2 - - Community development: Building permits issued 567 492 462 537 509 622 488 519 460 431 Culture and recreation: Number of recreation classes 172 169 129 134 3 514 526 498 617 422 431 Total enrollment 3,798 4,327 4,982 5,464 4,247 4,947 4,817 5,271 5,109 3,050 Public works: Graffiti removal 468 383 408 212 209 200 112 201 4 148 49 Permits issued 564 718 736 819 904 1,406 1,496 1,617 1,615 2,717 Source: Various city departments. Note: 1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department 2 Fire Department Inspections were done by the City from 7/1/17 through 12/29/17. As of 12/30/17, these inspections are no longer provided by the City. 3 A new software program was used for recreation classes after the 2013-14 fiscal year and classes are now counted by date and time rather than grouped. 4 Beginning in 2017-18, Graffit removal reflects the number of services calls due to a change in reporting software. All prior fiscal years reflect graffiti removal hours. Fiscal Year CITY OF HERMOSA BEACH Operating Indicators by Function Last Ten Fiscal Years 173 320 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Public safety Police: Police stations 1 1 1 1 111111 Parking meters 1,663 1 1,663 1,663 1,565 1,553 1,553 1,557 1,558 1,558 1,558 Fire: Fire stations 1 1 1 1 111111 Culture and recreation Community centers 1 1 1 1 111111 Community theatres 1 1 1 1 111111 Public works: Beach (acres) 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 Greenbelt (acres) 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 Parks 20 20 20 20 20 20 20 20 20 20 Parks (acres) 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 Sanitary sewers (miles) 34 34 34 40 40 40 40 40 40 37 Streets (miles) 40 40 40 40 40 40 40 40 40 40 Streetlights 392 392 392 400 400 400 400 400 400 400 Storm drains (miles) 1 1 1 2 222222 Traffic Signals 18 19 19 19 19 19 19 19 19 19 Infiltration (miles)2 0.6 0.6 0.6 0.6 0.2 0.2 0.2 0.2 0.2 0.2 Source: City of Hermosa Beach Finance Department CITY OF HERMOSA BEACH Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 1 The City purchased 24 pay-by-space meters in fiscal year 2011. Fourteen of the machines are installed in City parking lots (which are reflected in this figure), with the remaing ten meters being returned for singled head meter for on-street parking. 174 321 OTHER REPORTS 175 322 This page intentionally left blank. 176 323 438 Old Newport Blvd, Newport Beach, CA 92663 Phone (949) 346-2900 – Fax (714) 901-0024 – www.gruber-inc.com 177 Honorable Mayor and City Council City of Hermosa Beach Hermosa Beach, California REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Hermosa Beach, California as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise City of Hermosa Beach’s basic financial statements, and have issued our report thereon dated March 26, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Hermosa Beach's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Hermosa Beach’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Hermosa Beach’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 324 178 Honorable Mayor and City Council City of Hermosa Beach Page Two Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Hermosa Beach's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. David L. Gruber and Associates, Inc. Newport Beach, California March 26, 2021 David L. Gruber and Associates, Inc. 325 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0398 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF JUNE 2, 2021 (Community Resources Director Kelly Orta) Recommended Action: Staff recommends City Council receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of June 2, 2021. Attachments: Minutes of June 2, 2021 Approved: Kelly Orta, Community Resources Manager City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™326 MINUTES ADJOURNED REGULAR MEETING of the PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION June 2, 2021 – Council Chambers, City Hall 1315 Valley Drive – 7:00 P.M. Parks, Recreation and Community Resources Advisory Commission Lauren Pizer Mains, Chairperson Barbara Ellman, Vice Chairperson Jani Lange Traci Horowitz ************************************************************************************************************************ THIS MEETING WAS HELD PURSUANT TO EXECUTIVE ORDER N-29-20 ISSUED BY GOVERNOR GAVIN NEWSOM ON MARCH 17, 2020. ANY OR ALL COMMISSIONERS MAY ATTEND AND PARTICIPATE BY TELECONFERENCE/VIRTUAL MEETING. MEMBERS OF THE PUBLIC MAY PARTICIPATE BY TELECONFERENCE. ************************************************************************************************************************ Parks, Recreation and Community Resources Advisory Commission agendas and staff reports are available for review on the City’s web site at www.hermosabeach.gov Written materials distributed to the Parks, Recreation and Community Resources Advisory Commission within 72 hours of the meeting are available for public inspection immediately upon distribution in the Community Resources Department during normal business hours from Monday through Thursday, 7:00 a.m. - 6:00 p.m. 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Announcements 5. Presentations A. None. 6. Miscellaneous Items and Reports – Community Resources Manager A. COVID-19 Updates B. Updates Regarding Items Previously on the Commission’s Agenda 7. Public Comment Anyone wishing to address the Commission on items pertaining to parks and recreation that are not listed on the agenda may do so at this time. The Brown Act generally prohibits the Commission from taking action on any matter not listed on the posted agenda. Comments from the public are limited to three minutes per speaker. None. 8. Correspondence A. None. 327 9. Consent Calendar A. April 2021 Department Activity Report B. Approval of the Regular Meeting Action Minutes of May 4, 2021 Motion by Commissioner Horowitz to approve Item B. Approval of the Regular Meeting Action Minutes of May 4, 2021. Commissioner Lange seconded the mot ion. Motion passed with a 4-0 vote. 10. Items Removed from the Consent Calendar for Separate Discussion Chairperson Pizer Mains pulled Item A. April 2021 Department Activity Report from the Consent Calendar for discussion. Motion by Commissioner Horowitz to approve Item A. April 2021 Department Activity Report. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. 11. Public Hearings A. None. 12. Matters for Commission Consideration A. Approval of the Fee Waiver Grant Request from Mychal’s Learning Place for the California Great Santa Stroll on Saturday, December 11, 2021 on Pier Plaza and the Strand Recommendation: Staff recommends that the Parks, Recreation and Community Resources Advisory Commission approve the Fee Waiver Grant request in the amount of $2,500 for Mychal’s Learning Place’s California Great Santa Stroll on Saturday, December 11, 2021 on Pier Plaza and the Strand. Coming forward to address the Commission at this time: (00:18:00) Page Sacks, California Great Santa Stroll event representative Motion by Commissioner Ellman to approve the Fee Waiver Grant request in the amount of $2,500 for Mychal’s Learning Place’s California Great Santa Stroll on Saturday, December 11, 2021 on Pier Plaza and the Strand. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. B. Approval of the Addition of the POR Sandy Saute on the Beach North of the Pier on Saturday, September 11, 2021 to the 2021 Special Event Calendar Recommendation: Staff recommends that the Parks, Recreation and Community Resources Advisory Commission approve the addition of the POR Sandy Saute on the Beach north of the Pier on Saturday, September 11, 2021 to the 2021 Sp ecial Event Calendar. Coming forward to address the Commission at this time: (00:22:55) Patrick Amato, POR Sandy Saute event representative Motion by Commissioner Lange to approve the addition of the POR Sandy Saute on the Beach north of the Pier on Saturday, September 11, 2021 to the 2021 Special Event Calendar. Commissioner Horowitz seconded the motion. Motion passed with a 4-0 vote. C. Approval of Proposed Hours Option 2 and Updated Use Policies for the Kelly Pickleball Courts Recommendation: The Pickleball Stakeholders Focus Group and the Interim Community Resources Manager recommends that the Parks, Recreation and Community Resources Advisory Commission approve the Proposed Hours O ption 2 and the updated Use Policies for the Kelly Pickleball Courts, and send their recommendation to the City Council for final approval. Coming forward to address the Commission at this time: (00:46:31) 328 Michelle Iafigliola, Hermosa Beach resident Geraldine Poon, Hermosa Beach resident Mary Young, Hermosa Beach resident Nathan Staso, Hermosa Beach resident Valerie Peirce, Hermosa Beach resident Brian Zirbel, Hermosa Beach resident Rob Kole, Hermosa Beach resident Gail Rose, Hermosa Beach resident Christina Riley, Hermosa Beach resident Denis Normand, Hermosa Beach resident Rob Blair, Hermosa Beach resident Amy Irwin, Hermosa Beach resident Motion by Commissioner Horowitz to recommend for approval by City Council updated use policies for and the following hours for the Kelly Pickleball Courts under a 90-day pilot program: Sundays: Closed Monday: Closed Tuesday: 12-9pm Wednesday: 9am-5pm Thursday: 12-9pm Friday: 9am-5pm Saturday: 9am-5pm Total hours: 42 Commissioner Ellman seconded the motion. Motion passed with a 4-0 vote. D. Approval of Potential Locations for the Future Placement of Memorial Benches in South Park Recommendation: Staff recommends that the Commission approve potential locations for the future placement of memorial benches in South Pa rk. Motion by Commissioner Horowitz to approve six potential locations including the 3 locations on the west side and the 3 locations on the east side off the recreational green space in South Park. Commissioner Ellman seconded the motion. Motion passed with a 4-0 vote. 13. Commissioner’s Reports A. Sub-committees i. Special Event (Lange and Ellman) ii. Community Theatre (Lange and Pizer Mains) iii. Municipal Leases (Pizer Mains and Horowitz) iv. Community Resources Department Use Policies (Ellman) v. Clark Building Improvements (Ellman and Pizer Mains) vi. Naming Policy (Horowitz) B. Commission Liaison Roles i. Surfers Walk of Fame (Lange) ii. Access Hermosa (Ellman) – on hold 14. Items Requested by Commissioners A. None 15. Other Matters 16. Adjournment This meeting was adjourned to the regular Tuesday, July 6, 2021 meeting by Chairperson Pizer-Mains at 10:30pm. 329 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0414 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 LOS ANGELES COUNTY FIRE SERVICES AND AMBULANCE MONTHLY REPORT FOR MAY 2021 (Emergency Management Coordinator Brandy Villanueva) Recommended Action: Staff recommends City Council receive and file the May 2021 Fire and Ambulance monthly report. Executive Summary: City departments generate monthly reports to provide a snapshot of activities performed each month. Prior to the transition of fire and ambulance transport services to the County of Los Angeles,the Hermosa Beach Fire Department developed monthly response reports.After the transition,the monthly report was updated to include Los Angeles County Fire Department (LACoFD)and McCormick Ambulance information and continues to be uploaded to the website.The following report provides details regarding services provided for the month of May 2021. Background: At the February 11,2020 Council meeting,City Council requested monthly reports be placed onto the City Council agenda under consent calendar.On the July 14,2020 City Council agenda,the monthly reports began to appear. This report reflects the services for May 2021. Past Council Actions Meeting Date Description February 11, 2020 (Regular Meeting)City Council requested monthly reports be placed onto the City Council agenda under consent calendar July 14, 2020 (Regular Meeting)Monthly reports began on City Council consent agenda Discussion: The May 2021 monthly report provides an overview of services provided by LACoFD and McCormick Ambulance (Attachment 1: May 2021 LACoFD and McCormick Ambulance Monthly Report). Los Angeles County Fire Department (LACoFD) LACoFD and McCormick Ambulance work together to provide emergency medical services (EMS)to City of Hermosa Beach Printed on 7/9/2021Page 1 of 5 powered by Legistar™330 Staff Report REPORT 21-0414 LACoFD and McCormick Ambulance work together to provide emergency medical services (EMS)to the Hermosa Beach community.LACoFD has two apparatus stationed at Station 100 including:one assessment engine (Engine 100)staffed with a Fire Captain,a Fire Engineer and a Firefighter Paramedic;and a paramedic squad (Squad 100)staffed with two Firefighter Paramedics.It is important to note that the paramedic squad (Squad 100)only responds to calls for service within the City of Hermosa Beach.The paramedic unit does not provide mutual aid and instead remains available for calls within Hermosa Beach. Each of the LACoFD apparatus have the capability of providing basic emergency medical care known as Basic Life Support (BLS)to medical patients.In addition,the paramedic squad has advanced equipment including medications and responds from within the City to address Advanced Life Support (ALS) calls, such as a stroke or heart attack. When LACoFD is dispatched,McCormick Ambulance may also be dispatched as the City’s emergency medical transportation provider.LACoFD provides life-saving medical care on scene and continues ALS level care as the patient is transported to a local hospital.In the case of a BLS level call,monitoring and care is safely provided by one of the two Emergency Medical Technicians (EMT’s) assigned to the responding ambulance. LACoFD follows industry standards developed by the National Fire Protection Association (NFPA), which outlines call transfer times and total response times.The NFPA standard for call transfer time is that each call will be answered within 60 seconds 90 percent of the time.Additionally,responding units are to be enroute within 60 seconds to EMS related calls and 80 seconds for structure fire calls. NFPA further stipulates that for EMS calls,responding units must arrive on scene within 8 minutes and 59 seconds 90 percent of the time. The May 2021 call transfer report provided by LACoFD includes three calls wherein the call transfer time exceeded the 60-second NFPA standard.After reviewing the data,it was determined that LACoFD dispatch center experienced a significant spike in call volume during the time when the three calls were received. Table 1 below provides the response details for each of the three incidents. Although the three call transfer times exceeded the standard,all three calls were well within the NFPA total response time standard.The call on May 13,2021 had the longest call transfer time,but once dispatched,the crew arrived on scene within 3 minutes resulting a total response time of 6 minutes and 4 seconds.The other two calls for service had a total response time of 3 minutes and 6 seconds and 4 minutes and 17 seconds respectively,which are well within the NFPA standard of 8 minutes and 59 seconds. Table 1: Date Call Type Call Transfer Time Length of Transfer LACoFD Dispatch Time On Scene Time Length of Arrival Total Response Time May 13 BLS 13:11 184 seconds 13:14 13:17 3 minutes 6 minutes & 4 seconds May 24 ALS 20:01 66 seconds 20:03 20:05 2 minutes 3 minutes & 6 seconds May 25 BLS 13:08 77 seconds 13:09 13:12 3 minutes 4 minutes & 17 seconds City of Hermosa Beach Printed on 7/9/2021Page 2 of 5 powered by Legistar™331 Staff Report REPORT 21-0414 Date Call Type Call Transfer Time Length of Transfer LACoFD Dispatch Time On Scene Time Length of Arrival Total Response Time May 13 BLS 13:11 184 seconds 13:14 13:17 3 minutes 6 minutes & 4 seconds May 24 ALS 20:01 66 seconds 20:03 20:05 2 minutes 3 minutes & 6 seconds May 25 BLS 13:08 77 seconds 13:09 13:12 3 minutes 4 minutes & 17 seconds Table definitions ·Call Transfer Time:The time when the call was actually transferred from South Bay Regional Public Communications Authority also known as Regional Communications Center (RCC). ·Length of Transfer:The length of time that it took from LACoFD dispatch center to answer the call from RCC. ·LACoFD Dispatch Time:The time in which appropriate fire apparatus were dispatched to the incident. ·On Scene Time: The time in which the dispatched units arrived at the incident location. ·Length of Arrival: The time between when the unit was dispatched and arrived on scene. ·Total Response Time:The total combined time between the call transfer time and the length of time arriving units on scene. McCormick Ambulance McCormick Ambulances are staffed by two EMT’s who can provide and transport BLS patients independently and,with the support of LACoFD paramedics riding in the ambulance,can also transport ALS patients. In May 2021,McCormick Ambulance responded to 77 calls for services within the City of Hermosa Beach.The May 2021 report indicated that 20 calls resulted in delayed Code 3 responses.A Code 3 response is when the responding emergency units are driving with lights and sirens to a presumed life-threatening emergency,which is typically classified as an ALS call.According to the McCormick Ambulance contract,“response time must not exceed eight (8)minutes,fifty-nine (59)seconds”for a Code 3 incident. After staff’s review of the May 2021 McCormick Ambulance monthly report and a discussion with McCormick Ambulance management, the following outlines the reasons for the delayed responses: ·Multiple Calls: (10) The dispatch center received multiple calls at the same time; ·Distance:(3)Based on the location the ambulance begins the response to the City,it could impact the response time.The City contract does not have a unit permanently stationed within City of Hermosa Beach Printed on 7/9/2021Page 3 of 5 powered by Legistar™332 Staff Report REPORT 21-0414 impact the response time.The City contract does not have a unit permanently stationed within Hermosa Beach,therefore the responding ambulance often begins the response outside of the City; ·Crew Error: (3) The crew responded to wrong address; ·Dispatch Error: (1) The dispatcher entered incident information incorrectly; ·10-8 Violation:(2)The crew did not respond to the initial dispatch over the radio within the standard time as required by McCormick Ambulance.The crews involved in this type of violation will receive a performance notice; and ·Mechanical Failure: (1) There was a mechanical issue with dispatched ambulance. Two factors have impacted McCormick Ambulance’s response times especially in the multiple call and distance categories:staffing and hospital wait times.McCormick Ambulance has experienced a staffing shortage.There has been a high rate of turnover and limited interest from qualified candidates for available positions.In addition,the hospital wait times,the time in which the ambulance crews must wait after transporting the patient to the hospital to transfer patient care from the ambulance to the hospital,continue to be extended therefore impacting the number of units available to respond to emergency calls. McCormick Ambulance demonstrates a continuous effort to detect and correct service level performance deficiencies by identifying the reason for delayed response times,issuance of personnel performance notices when mandatory response requirements are not met,and the release of personnel upon continued performance issues.McCormick Ambulance also provides training and continuing education to staff to improve skills and service delivery. As our transport provider,McCormick Ambulance continually works with Los Angeles County Emergency Medical Services Agency and hospitals to address hospital wait times.One measure currently in place is the deployment of a McCormick Ambulance gurney van,with a senior staff member,to a local hospital with multiple McCormick Ambulance units waiting to transfer care.The senior staff member is able to take over patient monitoring to allow the responding units to restock their ambulances and return to in service status for additional calls. Although the emergency medical transport units were delayed for 20 calls in May 2021,patients were provided timely life-saving emergency medical care on scene by Los Angeles County Fire Department paramedics.Los Angeles County Fire Department and McCormick Ambulance are committed to providing excellent emergency medical care,customer service,and response to the residents and visitors of Hermosa Beach. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s City of Hermosa Beach Printed on 7/9/2021Page 4 of 5 powered by Legistar™333 Staff Report REPORT 21-0414 General Plan. Relevant Policies are listed below: Safety Element Goal 5. High quality police and fire protection services provided to residents and visitors. Policies: ·5.2 High level of response.Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community. Fiscal Impact: Fire and ambulance services are contracted and accounted for during the annual budget process. Attachments: 1. Fire and ambulance monthly report-May 2021 Respectfully Submitted by: Brandy Villanueva, Emergency Management Coordinator Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 5 of 5 powered by Legistar™334 E100 S100 Total FIRE, EXPLOSION 113 ‐ Cooking fire, confined to container 1 1 2 0.85% FIRE, EXPLOSION Total 1 1 2 0.85% RESCUE, EMS 300 ‐ Rescue, emergency medical call (EMS) call, other 9 8 17 7.26% 321 ‐ EMS call, excluding vehicle accident with injury 85 74 159 67.95% 322 ‐ Vehicle accident with injuries 2 1 3 1.28% 353 ‐ Removal of victim(s) from stalled elevator 2 2 0.85% RESCUE, EMS Total 98 83 181 77.34% HAZARDOUS CONDITION 440 ‐ Electrical wiring/equipment problem, other 2 2 0.85% HAZARDOUS CONDITION Total 2 2 0.85% SERVICE CALL 500 ‐ Service Call, other 2 2 0.85% 520 ‐ Water problem, other 1 1 0.43% 553 ‐ Public service 1 1 0.43% SERVICE CALL Total 4 4 1.71% SPECIAL OR OTHER INCIDENT TYPE 900 ‐ Special type of incident, other 1 1 2 0.85% SPECIAL OR OTHER INCIDENT TYPE Total 1 1 2 0.85% GOOD INTENT CALL 600 ‐ Good intent call, other 23 5 28 11.97% 611 ‐ Dispatched & cancelled enroute 9 2 11 4.70% 653 ‐ Barbecue, tar kettle 1 1 2 0.85% GOOD INTENT CALL Total 33 8 41 17.52% FALSE ALARM, FALSE CALL 700 ‐ False alarm or false call, other 1 1 0.43% 733 ‐ Smoke detector activation due to malfunction 1 1 0.43% FALSE ALARM, FALSE CALL Total 2 2 0.86% Grand Total 141 93 234 100.00% Note: Data based on updated fireview ‐ apparatus 2021 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MAY 2021 Incident Type UNIT RESPONSES Percentage Submitted by Brandy Villanueva, Emergency Management Coordinator 1 335 DAY OF THE WEEK E100 S100 Total Sunday 26 17 43 Monday 18 15 33 Tuesday 17 12 29 Wednesday 21 12 33 Thursday 12 8 20 Friday 14 10 24 Saturday 33 19 52 Grand Total 141 93 234 Note: Data based on updated fireview ‐ apparatus 2021 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MAY 2021 UNIT RESPONSES ‐ 5 10 15 20 25 30 35 E100 S100 Submitted by Brandy Villanueva, Emergency Management Coordinator 2 336 TIME OF THE DAY E100 S100 Total 00:00:00 TO 00:59:59 4 3 7 01:00:00 TO 01:59:59 6 3 9 02:00:00 TO 02:59:59 6 4 10 03:00:00 TO 03:59:59 4 3 7 04:00:00 TO 04:59:59 3 ‐ 3 05:00:00 TO 05:59:59 ‐ ‐ ‐ 06:00:00 TO 06:59:59 3 1 4 07:00:00 TO 07:59:59 5 3 8 08:00:00 TO 08:59:59 9 5 14 09:00:00 TO 09:59:59 8 5 13 10:00:00 TO 10:59:59 3 3 6 11:00:00 TO 11:59:59 7 4 11 12:00:00 TO 12:59:59 9 7 16 13:00:00 TO 13:59:59 8 7 15 14:00:00 TO 14:59:59 4 3 7 15:00:00 TO 15:59:59 7 5 12 16:00:00 TO 16:59:59 6 4 10 17:00:00 TO 17:59:59 6 3 9 18:00:00 TO 18:59:59 6 5 11 19:00:00 TO 19:59:59 11 8 19 20:00:00 TO 20:59:59 12 7 19 21:00:00 TO 21:59:59 5 3 8 22:00:00 TO 22:59:59 4 2 6 23:00:00 TO 23:59:59 5 5 10 Grand Total 141 93 234 Note: Data based on updated fireview ‐ apparatus 2021 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MAY 2021 UNIT RESPONSES ‐ 2 4 6 8 10 12 14 00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59E100 S100 Submitted by Brandy Villanueva, Emergency Management Coordinator 3 337 Ad Hoc Report: Name: Date: Description: Seizure Date Seizure Time ALI City Answer Secs Call Type ID ALI Class 5/1/2021 16:10:30 HERMOSA BEACH 2 911 Calls PBXb 5/1/2021 22:31:43 HMB 24 911 Calls WPH2 5/2/2021 19:04:08 HERMOSA BEACH 2 911 Calls WPH2 5/2/2021 19:37:12 HMB 16 911 Calls WPH2 5/3/2021 18:41:22 HERM BCH 2 911 Calls WPH2 5/4/2021 12:06:13 HERM BCH 2 911 Calls WPH2 5/5/2021 08:46:48 HMB 2 911 Calls WPH2 5/5/2021 09:35:16 HERM BCH 2 911 Calls WPH2 5/5/2021 12:42:23 HMB 2 911 Calls WPH2 5/5/2021 20:08:20 HMB 2 911 Calls WPH2 5/5/2021 20:41:10 HERM BCH 8 911 Calls WPH2 5/6/2021 02:25:53 HERM BCH 2 911 Calls WPH2 5/7/2021 09:00:03 HERM BCH 2 911 Calls WPH2 5/7/2021 13:18:02 HMB 2 911 Calls WPH2 5/8/2021 20:20:17 HMB 2 911 Calls WPH2 5/9/2021 00:58:33 HERM BCH 2 911 Calls WPH2 5/9/2021 14:10:04 HERMOSA BEACH 2 911 Calls RESD 5/11/2021 01:07:57 HERM BCH 2 911 Calls WPH2 5/11/2021 02:07:22 HERMOSA BEACH 2 911 Calls VOIP 5/11/2021 20:08:28 HERM BCH 20 911 Calls WPH2 5/12/2021 07:28:59 HERMOSA BEACH 2 911 Calls VOIP 5/12/2021 10:55:50 HERMOSA BEACH 2 911 Calls BUSN 5/12/2021 11:01:03 HERMOSA BEACH 2 911 Calls VOIP 5/12/2021 19:10:53 HERM BCH 2 911 Calls WPH2 5/13/2021 08:54:35 HERMOSA BEACH 2 911 Calls VOIP 5/13/2021 13:11:15 HERM BCH 184 911 Calls WPH2 5/13/2021 23:12:47 HERM BCH 2 911 Calls WPH2 5/14/2021 10:16:58 HERMOSA BEACH 2 911 Calls RESD 5/15/2021 08:07:27 HERM BCH 2 911 Calls WPH2 5/15/2021 08:27:03 HERMOSA BEACH 2 911 Calls WPH2 5/15/2021 08:27:33 HERMOSA BEACH 2 911 Calls WPH2 5/15/2021 13:13:59 HERM BCH 2 911 Calls WPH2 5/15/2021 14:13:45 HERMOSA BEACH 35 911 Calls WPH2 5/15/2021 20:43:37 HERM BCH 34 911 Calls WPH2 5/15/2021 20:56:39 HERM BCH 17 911 Calls WPH2 5/15/2021 23:34:52 HERMOSA BEACH 2 911 Calls RESD 5/16/2021 04:07:02 HMB 1 911 Calls WPH2 5/16/2021 11:15:05 HERM BCH 2 911 Calls WPH2 5/16/2021 15:49:40 HERM BCH 2 911 Calls WPH2 Hermosa Call Answer Time 6/1/2021 May 2021 Los Angeles County Fire Submitted by Brandy Villanueva, Emergency Management Coordinator 4 338 5/18/2021 15:45:59 HMB 2 911 Calls WPH2 5/18/2021 19:04:50 HMB 2 911 Calls WPH2 5/19/2021 02:50:09 HERMOSA BEACH 2 911 Calls RESD 5/19/2021 08:21:04 HERMOSA BEACH 2 911 Calls RESD 5/20/2021 00:04:18 HERM BCH 2 911 Calls WPH2 5/21/2021 17:45:35 HMB 2 911 Calls WPH2 5/21/2021 18:10:13 HERMOSA BEACH 2 911 Calls RESD 5/22/2021 00:47:37 HERMOSA BEACH 2 911 Calls VOIP 5/22/2021 01:13:20 HERMOSA BEACH 2 911 Calls VOIP 5/22/2021 16:38:07 HERMOSA BEACH 2 911 Calls BUSN 5/22/2021 18:34:02 HERMOSA BEACH 2 911 Calls RESD 5/23/2021 04:07:08 HERM BCH 2 911 Calls WPH2 5/23/2021 22:25:18 HERM BCH 2 911 Calls WPH2 5/24/2021 08:57:51 HERMOSA BEACH 2 911 Calls RESD 5/24/2021 11:10:14 HERMOSA BEACH 2 911 Calls RESD 5/24/2021 12:34:09 HMB 2 911 Calls WPH2 5/24/2021 17:53:56 HERMOSA BEACH 2 911 Calls BUSN 5/24/2021 19:24:58 HMB 5 911 Calls WPH2 5/24/2021 20:01:04 HERM BCH 66 911 Calls WPH2 5/25/2021 00:52:44 HERMOSA BEACH 2 911 Calls RESD 5/25/2021 01:46:09 HMB 2 911 Calls WPH2 5/25/2021 13:08:01 HMB 2 911 Calls WPH2 5/25/2021 13:08:44 HERMOSA BEACH 77 911 Calls WPH2 5/25/2021 13:18:15 HERMOSA BEACH 2 911 Calls BUSN 5/26/2021 01:19:55 HERMOSA BEACH 2 911 Calls RESD 5/27/2021 20:46:03 HMB 2 911 Calls WPH2 5/29/2021 02:39:32 HERM BCH 2 911 Calls WPH2 5/30/2021 06:57:14 HERMOSA BEACH 2 911 Calls RESD 5/30/2021 10:49:42 HERM BCH 2 911 Calls WPH2 5/31/2021 10:59:45 HERMOSA BEACH 2 911 Calls WPH2 5/31/2021 13:53:34 HERMOSA BEACH 2 911 Calls RESD 5/31/2021 19:33:14 HERM BCH 2 911 Calls WPH2 5/31/2021 21:09:30 HERM BCH 2 911 Calls WPH2 Average Call Answer Time (seconds)8 Submitted by Brandy Villanueva, Emergency Management Coordinator 5 339 McCormick Ambulance May 2021 Total Number of Dispatched Calls Dispatched Calls Totals Transported 77 Cancelled 34 Grand Total 111 NOTE: None 77, 69% 34, 31% Total Dispatched Calls Transported Cancelled Submitted by Brandy Villanueva, Emergency Management Coordinator 6 340 Calls per the day of the week Day of the Week Completed Cancelled Total Sunday 16 6 22 Monday 11 3 14 Tuesday 9 3 12 Wednesday 14 2 16 Thursday 4 6 10 Friday 6 4 10 Saturday 17 10 27 Grand Total 77 34 111 0 2 4 6 8 10 12 14 16 18 Completed Canceled Submitted by Brandy Villanueva, Emergency Management Coordinator 7 341 Response by the Time of Day Time of Day Total Response 00:00:00 TO 00:59:59 2 01:00:00 TO 01:59:59 5 02:00:00 TO 02:59:59 5 03:00:00 TO 03:59:59 4 04:00:00 TO 04:59:59 1 05:00:00 TO 05:59:59 0 06:00:00 TO 06:59:59 1 07:00:00 TO 07:59:59 3 08:00:00 TO 08:59:59 7 09:00:00 TO 09:59:59 4 10:00:00 TO 10:59:59 3 11:00:00 TO 11:59:59 6 12:00:00 TO 12:59:59 8 13:00:00 TO 13:59:59 8 14:00:00 TO 14:59:59 3 15:00:00 TO 15:59:59 5 16:00:00 TO 16:59:59 4 17:00:00 TO 17:59:59 5 18:00:00 TO 18:59:59 5 19:00:00 TO 19:59:59 9 20:00:00 TO 20:59:59 11 21:00:00 TO 21:59:59 3 22:00:00 TO 22:59:59 4 23:00:00 TO 23:59:59 5 Grand Total 111 0 2 4 6 8 10 12 00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59Time of Day Responses Submitted by Brandy Villanueva, Emergency Management Coordinator 8 342 Response Times Within Allowable Time Delayed Response Cancelled Total Code 3: Response Time of 8:59 or less 21 20 0 41 Code 2: Response Time of 15:00 or less 36 0 0 36 Cancelled Responses 0 0 34 34 Grand Total 57 20 34 111 Submitted by Brandy Villanueva, Emergency Management Coordinator 9 343 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0390 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 APPROVAL OF A SPECIAL EVENT LONG-TERM AGREEMENT WITH SHAKESPEARE BY THE SEA FOR ITS ANNUAL EVENT HELD AT VALLEY PARK (Senior Recreation Supervisor Lisa Nichols) Recommended Action: Staff recommends City Council: 1.Approve a two-year agreement with Shakespeare by the Sea for its annual event held at Valley Park; and 2.Authorize the Mayor and City Council to execute the agreement,subject to approval by the City Attorney (Attachment 1). Executive Summary: In late 2020,City Council approved negotiations for a special event long-term agreement (LTA)with Shakespeare by the Sea.Staff worked with Shakespeare by the Sea to develop the proposed agreement and recommends approval of a two-year agreement beginning July 13,2022 and expiring July 13, 2023. Background: As part of the approval process for the special event LTA policy pilot program,staff received an LTA application on September 23,2020 from Shakespeare by the Sea to provide its annual Shakespeare by the Sea event at Valley Park each July.On October 6,2020,the Parks,Recreation and Community Resources Advisory Commission reviewed the LTA application from Shakespeare by the Sea and approved commencement of negotiations for the annual event.On October 27,2020,City Council approved the Commission’s recommendation to commence negotiations. Past Council Actions Meeting Date Description October 27, 2020 (Regular Meeting)City Council reviewed the LTA application and approved the Commission’s recommendation to commence negotiations City of Hermosa Beach Printed on 7/9/2021Page 1 of 5 powered by Legistar™344 Staff Report REPORT 21-0390 Discussion: Staff worked with Shakespeare by the Sea to develop mutually agreeable terms for an agreement to hold its Shakespeare by the Sea event.The Shakespeare by the Sea annual event includes two evenings of two-hour live performances of Shakespearian plays at no charge to the community. Shakespeare by the Sea anticipates 20-25 cast and crew members and 350-400 attendees each night,totaling an estimated attendance of 800 people over the course of two performance days. Negotiations have concluded and staff recommends approval of the proposed two-year agreement with Shakespeare by the Sea commencing July 13,2022 and expiring July 13,2023 (Attachment 1). Shakespeare by the Sea would not take place in 2021 as part of the proposed agreement as they were unable to plan the event in time due to uncertainty of what COVID-19 precautionary measures would be required at the time of the event. General Plan Consistency: This report and associated recommendation have been evaluated for consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policies: ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities. Parks and Open Space Element Goal 3. Community parks and facilities encourage social activity and interaction. Policies: ·3.1 Community-friendly events.Encourage,permit,and support community group,nonprofit, or business organized events on City property that support physical activity,beach culture, and family-friendly social interactions. ·3.2 Social and cultural events.Design and program parks and open space to accommodate unique social and cultural events to foster connectedness and interaction. ·3.3 Commercial use of facilities.Regulate and enforce commercial use of City parks and open spaces to ensure activities do not impact general use and enjoyment. Goal 8.Special events at the beach are balanced to support community recreation and economic development without restricting coastal access or impacting the community. Policies: ·8.3 Community-focused events.Prioritize the approval of special events that enhance the City of Hermosa Beach Printed on 7/9/2021Page 2 of 5 powered by Legistar™345 Staff Report REPORT 21-0390 ·8.3 Community-focused events.Prioritize the approval of special events that enhance the sense of community,improve economic vitality,and foster a healthy environment and active lifestyles. ·8.4 Family-focused events.Prioritize events that appeal to a wide segment of community members. Fiscal Impact: Table 1 includes all applicable special event fees associated with the Shakespeare by the Sea event. All fees would be waived,as proposed in the LTA and consistent with the City’s past practice with this event.The proposed fee-waivers include the non-profit application fee of $589 and the amplified sound permit fee of $173.The total fees waived over the two-year agreement term would be approximately $1,524. Table 1: Shakespeare by the Sea Event Fees City of Hermosa Beach Printed on 7/9/2021Page 3 of 5 powered by Legistar™346 Staff Report REPORT 21-0390 City of Hermosa Beach Printed on 7/9/2021Page 4 of 5 powered by Legistar™347 Staff Report REPORT 21-0390 As proposed in the LTA,the City would continue to provide financial support to Shakespeare by the Sea in the amount of $500 for each calendar year the event is held.This City has provided this level of financial support since 2001.The total support,in addition to fee waivers,provided to Shakespeare by the Sea over the two-year agreement would be $1,000.This amount is included in the Community Resources Department budget in the Contract Services account. Attachments: 1.Agreement between the City of Hermosa Beach and Shakespeare by the Sea to provide Shakespeare by the Sea Respectfully Submitted by: Lisa Nichols, Senior Recreation Supervisor Concur: Kelly Orta, Community Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 5 of 5 powered by Legistar™348 Shakespeare by the Sea Agreement 2021 - 2023 1 AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE SHAKESPEARE BY THE SEA TO PROVIDE SHAKESPEARE BY THE SEA THIS AGREEMENT is made this ________ day of _________________, 2021, by and between the City of Hermosa Beach (hereinafter called “CITY”), and Shakespeare by the Sea (hereinafter called “SHAKESPEARE”). RECITALS A. SHAKESPEARE desires to organize, coordinate, produce and oversee the Shakespeare by the Sea (“Event”) in the City on City-owned property for the term of this Agreement. B. The CITY is willing to make its property available for the Event due to the benefit it provides to the community. NOW, THEREFORE, the parties agree as follows: Section 1. Term of Agreement. The term of this Agreement shall commence on July 13, 2022, and terminate July 13, 2023, unless earlier terminated as provided herein. Section 2. SHAKESPEARE’s Duties: a. Event. SHAKESPEARE may organize, coordinate, produce and oversee the Event at Valley Park. The event must remain open to the public. Event days included as part of this Agreement shall be: • July 13, 2022 – July 14, 2022 • July 12, 2023 – July 13, 2023 b. Annual Event Confirmation. SHAKESPEARE must annually inform the CITY of its intent to produce the Event, including confirmation of event dates and event times, no later than three (3) months prior to the event dates. Should SHAKESPEARE desire to reschedule an event date(s) from the dates outlined in this Agreement, it must do so in writing no later than three (3) months prior to the requested event date(s). CITY will review the request against other activities and events booked within the City. While approval of a date change will not be unreasonably withheld, already scheduled activities or events will have priority. Use of additional location(s) may be approved as mutually agreed upon between the CITY and SHAKESPEARE provided SHAKESPEARE informs the CITY of this request at least three (3) months prior to the Event. The CITY or SHAKESPEARE may cancel an Event within 30 days written notice prior to each Event without penalty due to COVID-19 precautionary measures or other pandemic-related health orders that would deem the event unsafe or temporarily prohibited. CITY reserves the right in its sole discretion at any time or times to close and suspend the use of each Event Location subject to this Agreement for 349 Shakespeare by the Sea Agreement 2021 - 2023 2 any duration in order to protect public health and safety. Any such closure will not constitute a breach or a default of this Agreement. CITY shall have no liability whatsoever to SHAKESPEARE for the effect of such suspension and closure on any Event, nor shall CITY have any responsibility to provide SHAKESPEARE with substitute Event locations. SHAKESPEARE’s rights under this Agreement are subject and subordinate to CITY’s police and emergency powers in addition to CITY’s rights to manage its municipal facilities including outdoor public spaces and its contractual rights as described in this Agreement. c. Event Permits and Agreements. SHAKESPEARE shall obtain permits from CITY for each Event and shall enter into and comply with all agreements for such permits as required by CITY, including but not limited to the provision of adequate insurance and indemnification of CITY, its officers, agents, volunteers, employees, and attorneys as outlined in the Special Event Permit. Exhibit A includes a sample Special Event Permit. d. Insurance. SHAKESPEARE shall provide comprehensive general liability insurance with a combined single limit of not less than $2,000,000.00 per occurrence. Such insurance shall (a) name the City, its appointed and elected officials, officers, employees and agents as insured’s; and (b) be primary with respect to any insurance or self-insurance programs maintained by the City; and (c) contain standard cross-liability provisions. SHAKESPEARE shall furnish properly executed certificates of insurance to City, which certificates shall clearly evidence all coverage required above and provide that such insurance shall not be materially changed, terminated or allowed to expire except on thirty (30) days prior written notice to City; and further, shall provide that if SHAKESPEARE fails to pay any required deductible or self-insured retention, City may do so at SHAKESPEARE’s expense. e. Fee to CITY. Direct costs shall be waived, including but not be limited to the provision of CITY Staff time dedicated to the Event, Amplified Sound Permit, and parking fees. Indirect costs shall also be waived including the annual special event application fee, category fee, set-up/tear-down fee, and co-sponsor fees. f. Annual Review. Within 60 days prior to and after each Event, SHAKESPEARE shall provide an annual overview to the Parks, Recreation and Community Resources Advisory Commission in the form of an agendized presentation. The pre-event presentation shall highlight: a general event overview including anticipated number of attendees; an overview of the event footprint and individualized setup; and anticipated impacts to the community as a result of the event. The post-event presentation shall include: a general overview including the actual number of attendees; actual impact(s) to the community as a result of the event; and any event struggle(s) and success(es). 350 Shakespeare by the Sea Agreement 2021 - 2023 3 g. Environmental Sustainable Measures. SHAKESPEARE shall implement the CITY’s environmental sustainability measures, including but not limited to: i. Electric and Bio-diesel Generators. Generators on the venue shall be electric or operated with a 50% blend of bio-diesel fuel, or equivalent or lower emissions sources. ii. Plastic Bags. Use of plastic bags to deliver, provide, or hand merchandise or Event-related items is prohibited. iii. SHAKESPEARE shall additionally implement all sustainability measures in the City’s Green Matrix through its conduct of the Event and shall ensure vendor compliance. iv. SHAKESPEARE shall: (1) Incorporate sustainability requirements into vendor agreements, and advertise green measures and rules in event advertising and online; (2) prohibit the use of single-use plastic straws, stirrers, and utensils (HBMC 8.64); limit single-use paper, packaging, and décor items; use appropriately sized plates, containers and cups; and limit use of handouts, flyers and giveaways; (4) enact a no-idling requirement for vehicles associated with the loading and unloading of event-related equipment; and (5) provide onsite personnel to ensure that litter and trash are minimized, and recycling is maximized. v. SHAKESPEARE shall participate in pre-event and post-event reviews of compliance with sustainability measures. k. Parking Spaces. SHAKESPEARE may request dedicated use of public parking spaces as needed for the parking of Event-related vehicles; storage of essential Event-related equipment and supplies; and other Event-related structures for each Event. Use of these spaces must be mutually agreed upon between the CITY and SHAKESPEARE following submittal of a site plan by SHAKESPEARE outlining the use of the parking space(s) at least ten (10) working days prior to each Event. While approval of parking request(s) will not be unreasonably withheld, already scheduled activities or events will have priority. The CITY will consider approval based on the location, seasonal needs for parking, and the overall impacts the loss of parking spaces may cause to the area. SHAKESPEARE shall ensure the spaces are clean from debris and other materials that were collected as a result of event- related activities. l. Logistical Meetings. SHAKESPEARE is required to participate in logistical and planning meetings with relevant CITY departments as requested by the City. 351 Shakespeare by the Sea Agreement 2021 - 2023 4 m. Sponsorships. SHAKESPEARE may sell sponsorships for the Event. SHAKESPEARE agrees that Event sponsors will not be from any person or entity promoting alcohol, gambling, political, or religious viewpoints. Donating persons or entities must be consistent with the core values, mission, and vision of the City Section 3. CITY’s Duties. a. Event Permits. CITY shall provide event permits to SHAKESPEARE for each Event unless CITY determines in its sole discretion that it would not be in the public interest or that it would be averse to the public health, safety, or welfare. b. No Parking Signs. The CITY shall post no parking at least 72 hours prior to the start of event setup. c. Financial Support to SHAKESPEARE. The CITY shall provide monetary support of $500.00 to SHAKESPEARE for each calendar year the Event is held under this agreement. d. Public Works Services. The CITY shall provide the following on Event days: unlocking of bollards for loading and unloading of event materials; access to electrical outlets; use of the City’s spider box and cables; increased janitorial services in the Valley Park restrooms; temporary trash receptacles; and moving of cement trash cans, as applicable. Section 4. Assignment. This agreement may not be assigned in whole or in part by either party, without the prior written consent of the other party. Section 5. Independent Contractor. SHAKESPEARE will act hereunder as an independent contractor. This Agreement shall not and is not intended to constitute SHAKESPEARE as an agent, servant, or employee of CITY and shall not and is not intended to create the relationship of partnership, joint venture or association between CITY and SHAKESPEARE . Section 6. Termination. CITY may terminate this Agreement upon 30 days written notice to SHAKESPEARE if CITY determines in its sole discretion that continuation of this Agreement would not be in the public interest, that it would be adverse to the public health, safety, or welfare, or that a substantial portion of CITY’s property is unavailable due to construction activity. Prior to termination on the ground that a substantial portion of CITY’s property is unavailable due to construction activity, CITY shall provide SHAKESPEARE an opportunity to propose adjustments to the venue or an alternative location for the event. SHAKESPEARE ’s proposed adjustments or alternative shall be provided within 30 days of written notice from CITY and is subject to approval of the City Council, in its sole discretion, in a public meeting. Upon termination of the Agreement, any events subsequent to the termination will no longer be the responsibility of SHAKESPEARE. 352 Shakespeare by the Sea Agreement 2021 - 2023 5 Section 7. Notice. Any notice required to be given shall be deemed duly and properly given upon delivery, if sent postage prepaid or if personally delivered as follows: For SHAKESPEARE: Shakespeare by the Sea 777 Centre Street San Pedro, CA 90731 (310) 217-7596 Attention: Lisa Coffi, Shakespeare by the Sea Representative For CITY: City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 (310) 318-0216 Attention: Suja Lowenthal, City Manager Section 8. Entire Agreement. This Agreement represents the entire integrated agreement between CITY and SHAKESPEARE, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both parties. The parties anticipate that, in addition to this Agreement, they will enter into an event agreement for each Event setting forth precise terms and conditions applicable to that Event. EXECUTED the day and year first above stated. SHAKESPEARE By: ____________________________________ Lisa Coffi, Shakespeare by the Sea Representative CITY OF HERMOSA BEACH By:___________________________________ Justin Massey, Mayor APPROVED AS TO FORM ATTEST By:_________________________________ By:_________________________________ Michael Jenkins, City Attorney City Clerk 353 Shakespeare by the Sea Agreement 2021 - 2023 6 EXHIBIT A – Sample Special Event Permit CITY OF HERMOSA BEACH SPECIAL EVENT PERMIT I. Permit CITY OF HERMOSA BEACH (“City”) hereby grants approval to the ______________ EVENT PLANNER”) for use of the ____________ (the “SITE”) as the location for the _________________ (the “EVENT”). The permission granted herein for conduct of the EVENT on the SITE, shall commence from ________ and terminate at __________, including set up and tear down, on _________________________. This Permit is revocable at any time for violation of conditions of approval, the Hermosa Beach Municipal Code or any applicable regulation or law. II. Event Planner’s Obligations (checked boxes denote applicable obligations) 1. Not more than 60 days and not less than 30 days in advance of the EVENT, EVENT PLANNER shall: ☐ a) Damage deposit: Post a bond, cashier's check or letter of credit, in the amount of $_______________ as compensation for any damage that may occur to physical property or other costs arising from EVENT PLANNER’S use of the SITE. The bond or other surety shall provide that in the event the EVENT PLANNER fails or refuses to clean up and restore the SITE to its original condition or fails or refuses to compensate City for other physical damage, City may, at its option, make demand upon the surety for such cash payment as is required to perform such work. ☐ b) Insurance: Provide to City a policy of comprehensive general liability insurance with a combined single limit of not less than $2,000,000.00 per occurrence. Such insurance shall (a) name the City, its appointed and elected officials, officers, employees and agents as insured’s; and (b) be primary with respect to any insurance or self - insurance programs maintained by the City; and (c) contain standard cross-liability provisions. EVENT PLANNER shall furnish properly executed certificates of insurance to City, which certificates shall clearly 354 Shakespeare by the Sea Agreement 2021 - 2023 7 evidence all coverage required above and provide that such insurance shall not be materially changed, terminated or allowed to expire except on thirty (30) days prior written notice to City; and further, shall provide that if the EVENT PLANNER fails to pay any required deductible or self -insured retention, City may do so at EVENT PLANNER’s expense. ☐ c) Event fees: EVENT PLANNER shall tender any outstanding fees associated with the City’s Special Event Application process a minimum of 30 days prior to the EVENT unless non-profit, per participant fees apply for payment immediately following the event. ☒ d) Permits and approvals: EVENT PLANNER shall obtain all necessary permits and approvals for the EVENT as set forth in the completed Special Event Application or otherwise required by the City (e.g., business license, street banner approval, light pole banner requests, etc.). ☐ e) Provide City with the name and event day telephone number of its designated representative for the event, and/or the names of designated representatives who will be physically on the property for the entire duration of the EVENT if different from that stated on the Special Event Permit Application; ☐ f) Notify all residents and businesses within a 300 foot radius of the SITE. The notice shall be in writing and shall include the date and time of the EVENT, and the telephone number of the designated representative. Said written notice shall be provided to the City through electronic copy not less than 1 week prior to distribution for review and approval; 2. Commencing with the date and time this permit authorizes the use by the EVENT PLANNER for the EVENT, EVENT PLANNER shall: ☐ a) Fence the entire EVENT area; ☐ b) Provide adequate portable restroom facilities for the EVENT according to standards as outlined by City for Special Events; ☐ c) Provide adequate first aid facilities and staff; ☐ d) Secure its own telephones and telephone lines for the EVENT; 355 Shakespeare by the Sea Agreement 2021 - 2023 8 ☐ e) Install a protective barrier around the perimeter of the EVENT not later than _______________. EVENT PLANNER shall be responsible for removal of the barrier upon completion of the EVENT. Said barrier(s) shall structurally and aesthetically fulfill the City’s requirements for said barrier(s); ☐ f) Ensure that the EVENT includes adequate access and seating to reasonably accommodate the needs of the disabled; ☐ g) Provide its staff and designated City representatives with proper credentials and identification for access to the EVENT and SITE area; ☐ h) Clean, restore, resurface and make operational the SITE to the satisfaction of the City (notwithstanding the clean-up activities described in Section III.7) upon completion of the EVENT and no later than the post- event walk-through (if applicable) described in Section III.9.; ☐ i) Maintain six (6) posted volleyball courts on the north side of the Pier for recreational use; ☐ j) Install and maintain six (6) posted, temporary volleyball courts on the south side of the Pier for recreational use. ☐ k) Pay to City the total sum of costs for all personnel, materials, equipment, and disposal fees incurred by City in connection with SITE preparation and clean-up activities and associated repairs described in Section III.7., including overhead and indirect costs. Payment shall be made within 60 days of receipt of invoice from City; ☐ h) DO NOT EXTEND PAST NOBLE PARK WITH ANY EVENT RELATED EQUIPMENT, SUPPLIES, OR SET UP. 3. Conduct the EVENT in accordance with all materials included in the complete Special Event Application for the EVENT approved by the City, including but not limited to the EVENT Site Plan, Parking Plan, Safety/Security Plan, Green Matrix, and Accessibility Plan. If information on any Special Event Application materials has changed from that which was approved by the City, EVENT PLANNER shall notify the City within 24 hours of any such change. 4. EVENT PLANNER’s obligations shall be completed in the time periods set forth above and notice of items not completed to City’s satisfaction shall be 356 Shakespeare by the Sea Agreement 2021 - 2023 9 given to EVENT PLANNER in writing. EVENT PLANNER shall have seven days from receipt of notice to complete the obligation, except in the event of an emergency. Any obligations not completed within the dates set forth above may be completed by City and EVENT PLANNER shall reimburse City on a time and materials basis. III. Services to be Provided by City ☐ 1. Representatives of the City, including any required police and fire officials necessary to complete required inspections, and EVENT PLANNER shall perform a walk-through of the SITE on _______________, at which time the condition of the SITE shall be duly noted in writing by said representatives, and shall specifically identify any existing damage or other abnormalities and City shall repair anything identified as a potential hazard or liability prior to EVENT PLANNER taking possession of the SITE. ☐ 2. Facilitate closing of streets impacted by the SITE, including _______________, during the hours of _______________. ☐ 3. Approve text of notices as required by Section II. f. above. ☐ 4. Provide, at no additional cost, the following: a) _____ collection containers with a storage capacity of not less than twenty-five (25) gallons each; b) Collection vehicle and crew to empty the cans on the SITE; c) Street sweepers. ☐ 5. Ensure that, to the best of the City’s knowledge, all other organized activities will be excluded from the SITE during the EVENT. ☐ 6. Provide a 24-hour contact person who shall be available in the event of emergency during the time EVENT PLANNER maintains possession of the SITE. ☐ 7. Perform clean-up at cost to EVENT PLANNER as established in the Special Event Permit Application for the EVENT, or in accordance with actual cost if the amount of clean-up exceeds the EVENT fees, which shall include but is not limited to: 357 Shakespeare by the Sea Agreement 2021 - 2023 10 ☐ a. Removal and disposal from public property all no-parking signs, litter and debris located at the SITE at cost to EVENT PLANNER; ☐ b. Steam cleaning of sidewalks, garages and hardscape surfaces as required at the SITE at cost to EVENT PLANNER; ☐ c. Repair of any irrigation damage to landscaped medians, planter beds, lawn areas and the SITE grounds; ☐ d. Renovation of all turf and shrubs on landscaped medians, planter beds, lawn areas on the SITE; ☐ e. Removal and disposal of trash receptacles placed on public areas of the SITE; ☐ f. Restoration of all public areas impacted by the EVENT, including public streets, to the same conditions prior to the EVENT. 8. The City shall submit itemized invoices to EVENT PLANNER for all work described above within 90 days of the EVENT. Said invoices shall include an itemized breakdown of costs associated with the cleanup of SITE. In addition, the City will provide an itemized invoice listing all time and materials used in the repair of City facilities. 9. Subsequent to the EVENT, and after EVENT PLANNER completed its cleanup process of the premises, a post-event walk-through shall be conducted by the representatives of the City and EVENT PLANNER, at which time any damages or other abnormalities which may have arisen as a result of the use of the premises by EVENT PLANNER shall be duly noted in writing by said representatives, it being understood that the City (1) shall undertake to repair and/or replace any damaged property; and (2) shall bill EVENT PLANNER for the cost thereof. The foregoing notwithstanding, EVENT PLANNER shall remain responsible for any later-discovered damage that was not reasonably visible during the walk-through. Walk thru to be held no later than _______________. IV. Notices All notices and communications shall be sent to the parties at the following addresses: 358 Shakespeare by the Sea Agreement 2021 - 2023 11 The City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 V. Indemnification EVENT PLANNER shall hold harmless, defend and indemnify the City and County of Los Angeles, its officers, employees and volunteer from and against any and all liability, loss, damage expense, and costs (including without limitation costs and fees of litigation), of every nature arising out of or in connection with production and performance of the EVENT or its failure to comply with any of its obligations contained in this Permit except such loss or damage which was caused by the sole negligence or willful misconduct of the City. EVENT PLANNER shall pay promptly any judgment rendered against City and County of Los Angeles, their respective officers, agents or employees, for any such claims, damages, penalties, obligations and/or liabilities. VI. Authority The person executing this Permit for EVENT PLANNER certifies that s/he has full authority to sign on behalf of EVENT PLANNER and to bind EVENT PLANNER to the foregoing conditions. VII. Revocation EVENT PLANNER hereby accepts all of the foregoing conditions and understands and acknowledges that City may revoke this permit at any time upon finding that any of the foregoing conditions have not been satisfied. EVENT PLANNER further acknowledges that this permit ma y be revoked and the EVENT ordered concluded at any time during the course of the EVENT by the highest ranking City police officer or fire personnel on duty at the time upon determination that the EVENT is causing a violation of State law or upon a determination that the EVENT has become a threat to public safety. VIII. Miscellaneous Provisions This permit is personal to the EVENT PLANNER and may not be transferred, assigned or otherwise conveyed without the consent of the City. Neither party will use the other party’s name, logos, trademarks or service marks 359 Shakespeare by the Sea Agreement 2021 - 2023 12 in any manner without the other party’s prior written approval. This permit grants permission solely for the EVENT described above on the day(s) and time(s) indicated on the SITE. Nothing in this permit shall be construed as creating a partnership, joint enterprise or other contractual arrangement between City and EVENT PLANNER. The EVENT is a privately sponsored event; it is not a City event and is not sponsored by the City. APPROVED BY: City: Signature Date Address: Telephone No. Applicant: Signature Event Representative Print Name Address: Telephone No 360 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0397 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH APPROVING THE GRANT OF FUNDS FROM THE STATE COASTAL CONSERVANCY FOR HERMOSA BEACH PARKING LOT GREENING PROJECT (Environmental Programs Manager Doug Krauss) Recommended Action: Staff recommends City Council: 1.Adopt Resolution 21-7279 approving the grant of funds from the state Coastal Conservancy for Hermosa Beach Parking Lot Greening Project; and 2.Authorize the City Manager,or designee,to act as a representative to negotiate and execute on behalf of the City all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements. Executive Summary: In March 2021,the Board of the Coastal Conservancy approved the City of Hermosa Beach’s application for $433,650 in funding to support CIP 682 Parking Lot D Improvements.The project would improve Parking Lot D (located at the southwestern corner of Manhattan Avenue and 14th Street)with a suite of stormwater measures and other improvements to make the parking lot a model of sustainable design and provide funds for the design of Lot A.A Resolution of the City Council approving the grant of funds is required by the Coastal Conservancy.If approved,the City would have until February 29, 2024 to complete all work associated with the granted funds. Background: The Parking Lot D Improvement Project was first conceived in 2017 to reconstruct Parking Lot D (located at the southwestern corner of Manhattan Avenue and 14th Street)as a demonstration project showcasing a range of environmentally sustainable design elements.These included: stormwater infiltration;native vegetation;electric vehicle charging stations;and solar power generation.On March 27,2018,City Council authorized submittal of an application for grant funding for this project.Staff was successful in securing $433,650 in funding from the Coastal Conservancy for this project. City of Hermosa Beach Printed on 7/9/2021Page 1 of 3 powered by Legistar™361 Staff Report REPORT 21-0397 Past Council Actions Meeting Date Description March 27, 2018 Council authorized submittal of an application for grant funds Discussion: City staff applied for,and was awarded,$433,650 in granted funds from the Coastal Conservancy to support final engineering and construction of CIP 682 Parking Lot D Improvements,as well as help inform the design of the renovation of Parking Lot A.The Board of the Coastal Conservancy approved the funding at its March 2021 meeting and City staff is now working with Coastal Conservancy staff to execute final funding agreements and other administrative documents (Attachment 1). A Resolution from City Council approving the acceptance of the granted funds is required.Staff recommends City Council adopt the attached Resolution (Attachment 2)and authorize the City Manager to act as a representative to negotiate and execute on behalf of the City all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements. The Coastal Conservancy funding must be expended by early 2024. If approved,staff would apply for additional grant funds from the Safe Clean Water Act regional funding program to fund the balance of the project cost.This application would be submitted in the coming months and other sources of funding would be sought as well. General Plan Consistency: This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Infrastructure Goal 5. The stormwater management system is safe, sanitary, and environmentally and fiscally sustainable. Policies: 5.7 Stormwater permits. Strictly implement, enforce, and monitor MS4 National Pollutant Discharge Elimination Systems (NPDES) Permit requirements through stormwater ordinances. Fiscal Impact: The Coastal Conservancy grant of $433,650 was included in the 2020-21 Budget.These funds would be reappropriated to the FY 2021-2022 Budget in August.The total estimated project cost for CIP City of Hermosa Beach Printed on 7/9/2021Page 2 of 3 powered by Legistar™362 Staff Report REPORT 21-0397 be reappropriated to the FY 2021-2022 Budget in August.The total estimated project cost for CIP 682 is $1,000,000.This estimate would be revised upon finalization of the plans.The Coastal Conservancy grant of $433,650 would go towards engineering and construction.Staff is seeking additional grants to fund the balance of the project cost. Attachments: 1.Draft Grant Agreement 2.Resolution 21-7279 Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 3 of 3 powered by Legistar™363 STATE OF CALIFORNIA State Coastal Conservancy GRANT AGREEMENT Grant - Rev 11/20 THIS AGREEMENT is entered into this day of , 2021 in the State of California, by and between: and . I. SCOPE OF AGREEMENT Pursuant to Chapter 9 of Division 21 of the California Public Resources Code, the State Coastal Conservancy (“the Conservancy”) hereby grants to the City of Hermosa Beach (“the grantee”) a sum not to exceed $433,650 (four hundred thirty-three thousand six hundred fifty dollars) (“funds”), subject to this agreement. (Continued on the following pages) The provisions on the following pages constitute a part of this agreement. This agreement has been executed by the parties as shown below. STATE OF CALIFORNIA GRANTEE AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of Hermosa Beach BY (Authorized Signature) BY (Authorized Signature)   PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Samuel Schuchat, Executive Officer Suja Lowenthal, City Manager ADDRESS & PHONE NUMBER ADDRESS & PHONE NUMBER 1515 Clay Street, 10th Floor Oakland, CA 94612 Phone: (510) 286-1015 1315 Valley Drive Hermosa Beach, CA 90254 Phone: (310) 750-3603 AMOUNT ENCUMBERED BY THIS DOCUMENT $433,650.00 PROGRAM/CATEGORY Local Assistance FUND TITLE/PROP NO. Water Quality, Supply…(Prop 1) I certify that this agreement is exempt from Department of General Services’ approval. Erlinda Corpuz Procurement and Contracts Manager PRIOR AMOUNT ENCUMBERED FOR THIS AGREEMENT FUND ITEM CHAPTER STATUTE FISCALYEAR $-0- 3760-101-608300007(B5862) Reap. by Ch. 6/20 10 2015 15/16 TOTAL AMOUNT ENCUMBERED TO DATE PROJECT NAME $433,650.00 Hermosa Beach Parking Lot Greening Project I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above. NAME AND SIGNATURE OF ACCOUNTING OFFICER DATE AGREEMENT NUMBER AM. NO. 20-102 TAXPAYERS FEDERAL EMPLOYER IDENTIFICATION NO. 95-6000720 AGENCY State Coastal Conservancy GRANTEE'S NAME City of Hermosa Beach 364 City of Hermosa Beach Grant Agreement No. 20-102 Page 2 The grantee shall use the funds to complete the following project (“the project”) at the City of Hermosa Beach in Los Angeles County, as shown on Exhibit 1, which is incorporated by reference and attached. The project consists of the renovation of Parking Lot D (at the corner of Manhattan Ave. and 14th St.), into a multi-benefit parking lot, including public access and greening improvements; and the preparation of final design plans to renovate Parking Lot A (at the corner of Hermosa Ave. and 11th St.). The grantee shall carry out the project in accordance with this agreement. The grantee shall provide any funds beyond those granted under this agreement that are needed to complete the project. II. CONDITIONS PRECEDENT TO CONSTRUCTION AND DISBURSEMENT The grantee shall not begin construction of the project and the Conservancy shall not be obligated to disburse any funds unless and until the following conditions precedent have been met: The City Council of the grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of the grantee. The Executive Officer of the Conservancy (“the Executive Officer”) has approved in writing: a. A work program for the project, as provided in section “V. WORK PROGRAM.” b. A plan for installation of signs and acknowledgment of Conservancy support, as provided in section “VI. SIGNS AND ACKNOWLEDGMENT.” c. All contractors that the grantee intends to retain in connection with the project. The grantee must provide written evidence to the Conservancy that each contractor has complied with the bonding requirements described in section “VII. BONDING.” The grantee has provided written evidence to the Conservancy that: a. All permits and approvals necessary to the completion of the project under applicable local, state and federal laws and regulations have been obtained. 365 City of Hermosa Beach Grant Agreement No. 20-102 Page 3 b. The grantee has provided for required insurance coverage, including additional insured endorsement, as described in section “XVI. INSURANCE.” c. To the extent appropriate, the grantee has incorporated the guidelines of the Conservancy’s “Standards and Recommendations for Accessway Location and Development.” III. TERM OF AGREEMENT This agreement shall take effect when signed by both parties and received in the offices of the Conservancy together with the resolution described in section “II. CONDITIONS PRECEDENT TO CONSTRUCTION AND DISBURSEMENT.” This agreement may be signed electronically using a process specified by the Conservancy. This agreement shall run from its effective date through February 29, 2044 (“the termination date”) unless otherwise terminated or amended as provided in this agreement. However, all work shall be completed by February 29, 2024 (“the completion date”). The grantee shall deliver a final Request for Disbursement to the Conservancy no later than March 31, 2024. IV. AUTHORIZATION The signature of the Executive Officer of the Conservancy on this agreement certifies that at its March 25, 2021 meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit 2. This agreement is executed under that authorization. 366 City of Hermosa Beach Grant Agreement No. 20-102 Page 4 Standard Provisions V. WORK PROGRAM Before beginning construction, the grantee shall submit a detailed work program to the Executive Officer for review and written approval of its consistency with the purposes of this grant agreement. The work program shall include: Construction plans and specifications. A schedule of completion for the project specifically listing the completion date for each project component and a final project completion date. A detailed project budget. The project budget shall describe all labor and materials costs of completing each component of the project, including the grantee’s labor and materials costs and costs to be incurred under a contract with any third party retained by the grantee for work under this agreement. For each project component, the project budget shall list all intended funding sources, including the Conservancy’s grant, and all other sources of monies, materials, or labor. The grantee shall review the plans with Conservancy staff, on-site if feasible. If all or any part of the project to be funded under this agreement will be performed by third parties (“contractors”) under contract with the grantee, the grantee shall submit to the Executive Officer for review and approval the names and qualifications of the contractors. The work program shall have the same effect as if included in the text of this agreement. However, the work program may be modified without amendment of this agreement upon the grantee’s submission of a modified work program and the Executive Officer’s written approval of it. If this agreement and the work program are inconsistent, the agreement shall control. The grantee shall construct the project in accordance with the approved work program. VI. SIGNS AND ACKNOWLEDGMENT Prior to beginning the project, the grantee shall submit, for review and written approval by the Executive Officer, a plan for the installation of signs and acknowledgment of Conservancy support. Except as the Executive Officer agrees otherwise, the plan shall commit the grantee to mention the Conservancy’s support in its project-related press releases, contacts with the media, and social media postings, and on its website. 367 City of Hermosa Beach Grant Agreement No. 20-102 Page 5 The plan shall commit the grantee to install and maintain a sign or signs visible from the nearest public roadway identifying the project, acknowledging Conservancy assistance and displaying the Conservancy’s logo. The Conservancy shall provide to the grantee specifications for the signs. The signs shall also acknowledge funding from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1) by using the official logo prepared by the California Natural Resources Agency, which the Conservancy has available in various file formats. The grantee may incorporate the required information into other signs as approved by the Executive Officer. In special circumstances, where the placement of signs or the general specifications are inappropriate, the Executive Officer may approve alternative, more appropriate methods for acknowledging the sources of funding. The grantee sign plan shall describe the number, design, placement and wording of the signs, or the specifications of a proposed, alternative method. The grantee shall implement the approved signs and acknowledgment plan. The Conservancy will withhold final disbursement until the signs are installed as approved by the Conservancy. VII. BONDING If the grantee intends to use any contractors on any portion of the project to be funded under this agreement, construction shall not begin until each contractor has furnished a performance bond in favor of the grantee in the following amounts: for faithful performance, one hundred percent (100%) of the contract value; and for labor and materials, one hundred percent (100%) of the contract value. This requirement shall not apply to any contract for less than $20,000. Any bond furnished under this section shall be executed by an admitted corporate surety insurer licensed in the State of California. VIII. COSTS AND DISBURSEMENTS When the Conservancy determines that all conditions in section “II. CONDITIONS PRECEDENT TO CONSTRUCTION AND DISBURSEMENT” have been fully met, the Conservancy shall disburse to the grantee a total amount not to exceed the amount of this grant, in accordance with the approved project budget and this section. The withholding for this agreement is five percent. The Conservancy shall disburse funds for costs incurred to date, less five percent, upon the grantee’s satisfactory progress under the approved work program, and upon the grantee’s submission of a “Request for Disbursement” form, which shall be submitted no more frequently than monthly but no less frequently than quarterly. The Conservancy shall disburse the five percent withheld upon the grantee’s satisfactory completion of construction and compliance with section “X. PROJECT COMPLETION,” and upon the Conservancy’s acceptance of the project. 368 City of Hermosa Beach Grant Agreement No. 20-102 Page 6 Hourly rates billed to the Conservancy shall be equal to the actual compensation paid by grantee to employees, which may include employee benefits. The grantee shall require its employees to keep records of their time spent on the project for purposes of documenting the employee time billed to the Conservancy. The Conservancy will reimburse the grantee for expenses necessary to the project when documented by appropriate receipts. The Conservancy will reimburse travel and related expenses at actual costs not to exceed the state employee rates as identified on the California Department of Human Resources (CalHR) website under travel reimbursements for state employees. Except for rates for operating a private vehicle, the Conservancy may reimburse in excess of the state employee rates upon documentation that these rates are not reasonably available to the grantee. The Conservancy will reimburse the grantee for other necessary expenses if those expenses are reasonable in nature and amount taking into account the nature of the project, its location, and other relevant factors. The grantee shall request disbursements by filing with the Conservancy a fully executed “Request for Disbursement” form (available from the Conservancy). The grantee shall include in the form its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred of all work done for which disbursement is requested. The form shall also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement. An authorized representative of the grantee shall sign the forms. Each form shall be accompanied by: All receipts and any other source documents for direct expenditures and costs that the grantee has incurred. Invoices from contractors that the grantee engaged to complete any portion of the work funded under this agreement and any receipts and any other source documents for costs incurred and expenditures by any such contractor, unless the Executive Officer makes a specific exemption in writing. A progress report summarizing the current status of the project and the work for which the grantee is requesting disbursement. The grantee’s failure to fully execute and submit a Request for Disbursement form, including attachment of supporting documents, will relieve the Conservancy of its obligation to disburse funds to the grantee until the grantee corrects all deficiencies. 369 City of Hermosa Beach Grant Agreement No. 20-102 Page 7 IX. EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS No increase in the total amount of this grant will be valid unless set forth in a written amendment to this agreement. The grantee shall expend funds consistent with the approved project budget. Expenditure on items contained in the approved project budget, other than overheard and indirect costs, may vary by as much as ten percent without prior approval by the Executive Officer, provided that the grantee first submits a revised budget to the Conservancy and requests disbursement based on the revised budget. Any deviation greater than ten percent, and any deviation that shifts funds from approved budget items into an overhead or indirect costs category, must be identified in a revised budget approved in advance and in writing by the Executive Officer. The Conservancy may withhold payment for items which exceed the amount allocated in the project budget by more than ten percent and which have not received the approval required above. Any increase in the funding for any particular budget item shall mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement. X. PROJECT COMPLETION Upon completion of the project, the grantee shall supply the Conservancy with evidence of completion by submitting a final report by the final Request for Disbursement date set forth in section “III. TERM OF AGREEMENT” that includes: A report certifying completion of the project according to the approved work program, including photographs documenting project completion. Documentation that signs are installed as required by section “VI. SIGNS AND ACKNOWLEDGMENT.” A fully executed final “Request for Disbursement.” A “final Request for Disbursement” means a Request for Disbursement that includes the withheld amounts and all remaining amounts for which grantee is entitled to seek payment, if any, pursuant to this agreement. The Conservancy shall determine whether the grantee has satisfactorily completed the project. If so, the Conservancy shall issue to the grantee a letter of acceptance of the project and release the withhold amount pursuant to section “VIII. COSTS AND DISBURSEMENTS.” The project shall be deemed complete as of the date of the letter. 370 City of Hermosa Beach Grant Agreement No. 20-102 Page 8 XI. EARLY TERMINATION, SUSPENSION AND FAILURE TO PERFORM Before the project has commenced, either party may terminate this agreement for any reason by providing the other party with seven days notice in writing. Before the project is complete, the Conservancy may terminate or suspend this agreement for any reason by providing the grantee with seven days notice in writing. In either case, the grantee shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to the Conservancy. The Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement shall remain in effect until further written notice from the Conservancy authorizes work to resume. If the grantee fails to complete the project as required, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee shall be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph shall not be deemed to limit any other remedies the Conservancy may have for breach of this agreement. Before the project is complete, the grantee may terminate this agreement for any reason by providing the Conservancy with seven days notice in writing and repaying to the Conservancy all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed. The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section. The grantee shall include in any agreement with any contractor retained for work under this agreement a provision that entitles the grantee to suspend or terminate the agreement with the contractor for any reason on written notice and on the same terms and conditions specified in this section. XII. OPERATION AND MAINTENANCE The grantee shall use, manage, maintain and operate the project throughout the term of this agreement consistent with the purposes for which the Conservancy’s grant was made. The 371 City of Hermosa Beach Grant Agreement No. 20-102 Page 9 grantee assumes all operation and maintenance costs of these facilities and structures; the Conservancy shall not be liable for any cost of maintenance, management, or operation. The grantee may be excused from its obligations for operation and maintenance during the term of this agreement only upon the written approval of the Executive Officer. For purposes of this agreement, “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses. “Maintenance costs” include ordinary repairs and replacements of a recurring nature necessary to prolong the life of capital assets and basic structures, and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. XIII. MITIGATION Without the written permission of the Executive Officer, the grantee shall not use or allow the use for mitigation (in other words, to compensate for adverse changes to the environment elsewhere) of any portion of real property on which the Conservancy has funded construction. In providing permission, the Executive Officer may require that all funds generated in connection with any authorized or allowable mitigation on the real property shall be remitted promptly to the Conservancy. As used in this section, mitigation includes, but is not limited to, any use of the property in connection with the sale, trade, transfer or other transaction involving carbon sequestration credit or carbon mitigation. XIV. INSPECTION Throughout the term of this agreement, the Conservancy shall have the right to inspect the project area to ascertain compliance with this agreement. XV. INDEMNIFICATION AND HOLD HARMLESS The grantee shall be responsible for, indemnify and hold harmless the Conservancy, its officers, agents, and employees from any and all liabilities, claims, demands, damages, or costs, including, without limitation, litigation costs and attorneys fees, resulting from or arising out of the willful or negligent acts or omissions of the grantee, its officers, agents, contractors, subcontractors, and employees, or in any way connected with or incident to this agreement, except for the active negligence of the Conservancy, its officers, agents, or employees. The duty of the grantee to indemnify and hold harmless includes the duty to defend as provided in Civil Code section 2778. This agreement supersedes any right the grantee may have as a public entity to indemnity and contribution as provided in Gov. Code Sections 895 et seq. 372 City of Hermosa Beach Grant Agreement No. 20-102 Page 10 The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents, or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement. Nothing in this agreement is intended to create in the public or in any member of it rights as a third-party beneficiary under this agreement. The obligations in this section “XV. INDEMNIFICATION AND HOLD HARMLESS” will survive termination of this agreement. XVI. INSURANCE The grantee shall procure and maintain insurance, as specified in this section, against claims for injuries to persons and damage to property that may arise from or in connection with any activities of the grantee or its agents, representatives, employees or contractors associated with the project undertaken pursuant to this agreement. As an alternative, with the written approval of the Executive Officer, the grantee may satisfy the coverage requirement in whole or in part through: (a) its contractors’ procurement and maintenance of insurance for work under this agreement, if the coverage otherwise fully satisfies the requirements of this section; or (b) the grantee’s participation in a “risk management” plan, self insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section. The grantee shall maintain property insurance, if required below, throughout the term of this agreement. Any required errors and omissions liability insurance shall be maintained from the effective date through two calendar years after the completion date. The grantee shall maintain all other required insurance from the effective date through the completion date. Minimum Scope of Insurance. Coverage shall be at least as broad as: a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable. b. Automobile Liability coverage: ISO Form Number CA 0001, Code 1 (any auto). c. Workers’ Compensation insurance as required by the Labor Code of the State of California, and Employer’s Liability insurance. 373 City of Hermosa Beach Grant Agreement No. 20-102 Page 11 Minimum Limits of Insurance. The grantee shall maintain coverage limits no less than: a. General Liability: (Including operations, products and completed operations, as applicable) $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities under this agreement, or the general aggregate limit shall be twice the required occurrence limit. b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. c. Worker’s Compensation and Employer’s Liability: Worker’s compensation as required by law and Employer’s Liability of no less than $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Officer. Required Provisions Concerning the Conservancy and the State of California. a. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled by either party, except after thirty days’ prior written notice by first class mail has been given to the Conservancy; or in the event of cancellation of coverage due to nonpayment, after ten days prior written notice to the Conservancy. The grantee shall notify the Conservancy within two days of receipt of notice that any required insurance policy will lapse or be cancelled. At least ten days before an insurance policy held by the grantee lapses or is cancelled, the grantee shall provide the Conservancy with evidence of renewal or replacement of the policy. b. The grantee hereby grants to the State of California, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the grantee may acquire against the State of California, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the grantee has received a waiver of subrogation endorsement from the insurer. 374 City of Hermosa Beach Grant Agreement No. 20-102 Page 12 c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: i. The State of California, its officers, agents, employees, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the grantee; and with respect to liability arising out of work or operations, including completed operations, performed by or on behalf of the grantee including materials, parts or equipment furnished in connection with the work or operations. ii. For any claims related to this agreement, the grantee’s insurance coverage shall be primary insurance as respects the State of California, its officers, agents and employees, and not excess to any insurance or self-insurance of the State of California. iii. The limits of the additional insured coverage shall equal the limits of the named insured coverage regardless of whether the limits of the named insurance coverage exceed those limits required by this agreement. Acceptability of Insurers. Insurance shall be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Conservancy and approved in writing by the Executive Officer. Verification of Coverage. The grantee shall furnish the Conservancy with original certificates and amendatory endorsements, or copies of the applicable policy language, effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The Conservancy may require, at any time, complete, certified copies of all required insurance policies, including endorsements affecting the coverage. Contractors. The grantee shall include all contractors as insureds under its policies or shall require each contractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, grantee shall also require each professional contractor to provide and maintain Errors and Omissions Liability insurance appropriate to the contractor’s profession and in a reasonable amount in light of the nature of the project. Premiums and Assessments. The Conservancy is not responsible for premiums and assessments on any insurance policy. 375 City of Hermosa Beach Grant Agreement No. 20-102 Page 13 XVII. AUDITS/ACCOUNTING/RECORDS The grantee shall maintain financial accounts, documents, and records (collectively, “required records”) relating to this agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” (“GAAP”) published by the American Institute of Certified Public Accountants. The required records include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, and disbursement of all funds related to the construction of the project, and the use, management, operation and maintenance of the real property, time and effort reports, and supporting documents that permit tracing from the request for disbursement forms to the accounting records and to the supporting documentation. The Conservancy or its agents may review, obtain, and copy all required records. The grantee shall provide the Conservancy or its agents with any relevant information requested and shall permit the Conservancy or its agents access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations. The grantee shall retain the required records for a minimum of three years following the later of final disbursement by the Conservancy, and the final year to which the particular records pertain. The records shall be subject to examination and audit by the Conservancy and the California State Auditor during the retention periods. If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors. The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement. XVIII. COMPUTER SOFTWARE The grantee certifies that it has instituted and will employ systems and controls appropriate to ensure that, in the performance of this agreement, state funds will not be used for the acquisition, operation or maintenance of computer software in violation of copyright laws. 376 City of Hermosa Beach Grant Agreement No. 20-102 Page 14 XIX. NONDISCRIMINATION During the performance of this agreement, the grantee and its contractors shall not deny the agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The grantee shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Conservancy to implement such article. The grantee shall permit access by representatives of the Department of Fair Employment and Housing and the Conservancy upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Conservancy shall require to ascertain compliance with this clause. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) The grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this agreement. XX. AMERICANS WITH DISABILITIES ACT By signing this agreement, grantee certifies that it is in compliance with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. XXI. PREVAILING WAGE Work done under this grant agreement may be subject to the prevailing wage and other related requirements of the California Labor Code, Division 2, Part 7, Chapter 1, sections 1720-1861. If required by law to do so, the grantee shall pay prevailing wage to all persons 377 City of Hermosa Beach Grant Agreement No. 20-102 Page 15 employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations. The grantee is responsible for determining whether the project is subject to prevailing wage laws, and for complying with all labor laws applicable to the project. The grantee may also review the Conservancy publication, Information on Current Status of Prevailing Wage Laws for State Coastal Conservancy Grantees (May 2018), available from the Conservancy on request; provided, that this publication is for grantee’s informational purposes only, and shall not be construed as legal advice to the grantee on whether the grantee’s project is subject to prevailing wage laws. XXII. UNION ORGANIZING By signing this agreement, grantee hereby acknowledges the applicability of Government Code Sections 16645 through 16649 to this agreement, and certifies that no state funds disbursed by this agreement will be used to assist, promote or deter union organizing. If grantee makes expenditures to assist, promote or deter union organizing, grantee agrees to maintain records sufficient to show that no state funds, including the funds provided under this agreement, have been used for these purposes, and shall provide these records to the Attorney General upon request. XXIII. DRUG-FREE WORKPLACE The grantee’s signature on this agreement constitutes the certification required by Government Code Section 8355 (Drug-Free Workplace Act of 1990), which requires that all state grantees provide a drug-free workplace by doing all of the following: Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the person’s or organization’s workplace and specifying actions that will be taken against employees for violations of the prohibition. Establishing a drug-free awareness program to inform employees about all of the following: a. The dangers of drug abuse in the workplace. b. The person’s or organization’s policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance programs. d. The penalties that may be imposed upon employees for drug abuse violations. 378 City of Hermosa Beach Grant Agreement No. 20-102 Page 16 Requiring that each employee engaged in the performance of the grant be given a copy of the drug-free workplace statement and that, as a condition of employment on the grant, the employee agrees to abide by the terms of the statement. XXIV. INDEPENDENT CAPACITY The grantee, and the agents and employees of grantee, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California. XXV. ASSIGNMENT Without the written consent of the Executive Officer, the grantee may not assign this agreement in whole or in part. XXVI. TIMELINESS Time is of the essence in this agreement. XXVII. EXECUTIVE OFFICER’S DESIGNEE The Executive Officer shall designate a Conservancy project manager who shall have authority to act on behalf of the Executive Officer with respect to this agreement. The Executive Officer shall notify the grantee of the designation in writing. XXVIII. AMENDMENT Except as expressly provided in this agreement, no changes in this agreement shall be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement shall be binding on any of the parties. XXIX. LOCUS This agreement is deemed to be entered into in the County of Alameda. 379 Exhibit A Exhibit 1: Project Location Map Exhibit 1: Project Location Map Project Location 380 Exhibit 1 381 Exhibit COASTAL CONSERVANCY Staff Recommendation March 25, 2021 HERMOSA BEACH PARKING LOT GREENING PROJECT Project No. 19-034-01 Project Manager: Rodrigo Garcia RECOMMENDED ACTION: Authorization to disburse up to $433,650 to the City of Hermosa Beach in Los Angeles County to renovate an impervious and deteriorated beach parking lot into a green, multi-benefit parking lot and to prepare final design plans to renovate a second parking lot in the City of Hermosa Beach. LOCATION: City of Hermosa Beach, Los Angeles County EXHIBITS Exhibit 1: Project Location Map Exhibit 2: Project Photos Exhibit 3: Project Letters RESOLUTION AND FINDINGS Staff recommends that the State Coastal Conservancy adopt the following resolution and findings. Resolution: The State Coastal Conservancy hereby authorizes a grant of an amount not to exceed four hundred thirty-three thousand, six hundred fifty dollars ($433,650) to the City of Hermosa Beach (“the grantee”) to renovate an impervious and deteriorated beach parking lot into a green, multi-benefit parking lot and to prepare final design plans to renovate a second parking lot in the City of Hermosa Beach. Prior to commencement of the project, the grantee shall submit for the review and written approval of the Executive Officer of the Conservancy (Executive Officer) the following: 1. A detailed work program, schedule, and budget. 2. Names and qualifications of any contractors to be retained in carrying out the project. 3. A plan for acknowledgement of Conservancy funding and Proposition 1 as the source of that funding. 4. Evidence that all permits and approvals required to implement the project have been obtained. 382 Exhibit 2 5. In addition, to the extent appropriate, the City of Hermosa Beach shall incorporate the guidelines of the Conservancy’s “Standards and Recommendations for Accessway Location and Development”. Findings: Based on the accompanying staff recommendation and attached exhibits, the State Coastal Conservancy hereby finds that: 1. The proposed authorization is consistent with Chapter 9 of Division 21 of the Public Resources Code, regarding the System of Public Accessways. 2. The proposed project is consistent with the current Conservancy Project Selection Criteria and Guidelines. STAFF RECOMMENDATION PROJECT SUMMARY: Staff recommends the Conservancy authorize a $433,650 grant to the City of Hermosa Beach to renovate an impervious and deteriorated beach parking lot into a green, multi-benefit parking lot and to prepare final design plans to renovate a second parking lot. The proposed project is divided into two components: the renovation of Parking Lot D and the design of Parking Lot A (see Exhibit 1). Both parking lots are located within 2 blocks of the beach in the incredibly popular beach town of Hermosa Beach (“City”). The parking lots are heavily used by tourists looking to enjoy the different outdoor coastal activities that the City has to offer including spending the day enjoying the beach, and jogging, skating or biking along the Strand, a section of the California Coastal Trail. The parking lots are heavily used throughout the year, but their current condition needs improvement for both water quality and public enjoyment. The lots are currently paved with impervious asphalt with no planters or areas for stormwater to infiltrate, so rainwater flows off into the ocean carrying pollutants into the Santa Monica Bay. ADA accessibility and safety are concerns that the proposed project will address as well. The lack of urban greening of the parking lots also makes them an unpleasant experience for the people who visit the City. Multiple surveys conducted over the years have shown that many visitors come from a surrounding radius of five to ten miles. Within this distance there are nearly 500,000 residents living in disadvantaged communities including the City of Lawndale and the City of Hawthorne for whose residents Hermosa Beach is a popular recreation destination. The renovation of Parking Lot D addresses water quality issues by capturing stormwater through a suite of water quality technologies. The technologies that will be used to achieve this goal include stormwater capture via a permeable paver system, and stormwater infiltration via drywells located in a bioswale demonstration planter that promotes infiltration of site run off. Additional onsite infrastructure improvements to Parking Lot D that will enhance public use include: ADA accessibility upgrades, solar panels, two EV charging stations for full-size vehicles, a charging outlet for neighborhood electric vehicles, and a bike corral. Photocell- controlled lighting for the parking lot and new trash enclosure will also be provided to improve lighting and safety. Neighborhood streetscape enhancements will include parkway-facing landscaping, gathering spaces, and street furnishings. Landscape plans include a total of eight trees and a host of drought-tolerant native plants that will be installed within the project site and along the streetscape. The site will also include interpretive signage explaining its multi-benefit 383 Exhibit 2 design elements. The project will serve as a demonstration site for public and private redevelopment projects illustrating how to utilize urban greening techniques and design ideas. The design of Parking Lot A will engage stakeholders and community groups to create a collaborative design process. Lessons learned through the design and construction of Parking Lot D will inform and optimize the design of this lot. Streetscape enhancements are anticipated to include a bioretention planter, trees, and landscaping. Because Parking Lot A is near a reclaimed water supply line, the design will consider a connection to this line for irrigation. Additional key design elements will include ADA upgrades, electric vehicle charging stations, golf cart parking, improved safety lighting, solar panels, and electrical service upgrades. Centralized multi-space meters will provide convenience for visitors as well as help reduce revenue loss for the City’s General Fund which will be used for maintenance of the site. Signage at Parking Lot A will direct visitors to the immediately adjacent California Coastal Trail. Site Description: Both Parking Lot A and Parking Lot D are public parking lots owned and operated by the City of Hermosa Beach. Both sites currently consist of impervious asphalt with little to no vegetation. Parking Lot D is a 0.21 acres site located approximately 750 feet from the beach in the downtown business district at the corner of Manhattan Avenue and 14th Street. Parking Lot D consists of an upper and lower section. Currently, there are 19 regular parking spaces, of which one is an ADA parking space located in the lower section of the parking lot. Parking Lot D receives no stormwater runoff from offsite areas. Stormwater runoff generated by Parking Lot D discharges via sheet flow to Palm Drive and runs southward into the Pier Avenue storm drain system. Parking Lot A is a 0.71 acres site located approximately 150 feet from the beach at 1101 Hermosa Avenue. Parking Lot A is the City’s most heavily used parking lot and serves as a public venue during large events such as Fiesta Hermosa that attracts 200,000 people to Hermosa Beach over Memorial Day and Labor Day weekends. Currently, Parking Lot A consists of 143 spaces, with three ADA accessible spaces. This lot is open 24 hours daily and is the primary lot used by tourists to access the public beach, Hermosa Beach Pier, and the downtown Pier Plaza area. Stormwater runoff from Parking Lot A discharges via sheet flow to concrete drainage swales where it flows southwest before entering the Pier Avenue storm drain system. Grant Applicant Qualifications: The City of Hermosa Beach engineering and planning staff has experience with similar projects and have successfully constructed such projects in the past. One example is The Pier Avenue Improvement Project, which captures and treats stormwater and urban runoff in the City’s downtown corridor to reduce pollut ant loading at the beach and to reduce flooding. Another example is The Hermosa Strand Infiltration Trench Project, which captures runoff from a 76.2 acres area and directs dry-weather flows, and wet-weather low flows from the storm drain into a 1,000-foot subsurface infiltration trench on the beach. Both projects have been managed by City staff. CONSISTENCY WITH CONSERVANCY’S PROJECT SELECTION CRITERIA & GUIDELINES: The proposed project is consistent with the Conservancy’s Project Selection Criteria and Guidelines, last updated on October 2, 2014, in the following respects: Required Criteria 1. Promotion of the Conservancy’s statutory programs and purposes: See the “Consistency with Conservancy’s Enabling Legislation” section below. 384 Exhibit 2 2. Consistency with purposes of the funding source: See the “Project Financing” section below. 3. Promotion and implementation of state plans and policies: The proposed project will help to implement or promote the goals of the following State Plans: • California @ 50 Million: The Environmental Goals and Policy Report The proposed project supports the goal to build a resilient and sustainable water system as it maximizes the use of recycled water and stormwater harvested for irrigation resulting in potable water conservation. • CA Climate Adaptation Strategy/Safeguarding California: Reducing Climate Risk Plan The proposed project supports Action 6 under Safeguarding Ocean and Coastal Ecosystems and Resources by utilizing nature-based infrastructure to reduce flood risk and stormwater runoff and to maximize associated co-benefits such as greenhouse gas reductions and improved air quality. • Beach Cities Enhanced Watershed Management Program The proposed project supports the goal of reducing stormwater pollutants by capturing all the site’s potential stormwater discharge and infiltrating it to help filter any pollutants. The proposed project also supports the program’s goal of increased education and outreach by providing interpretive signage explaining the multi-benefit design elements of the project. 4. Support of the public: The proposed project is supported by many local and regional entities, including the South Coast chapter of the Surfrider Foundation, the Beach Cities Health District, the Hermosa Beach Chamber of Commerce, and downtown businesses. During the design of Parking Lot D, the City held a community education and outreach event to educate residents, and businesses regarding the multiple benefits of the project and to receive feedback. Community education and outreach tools included on-site meetings, mailers, a dedicated project page on the City’s website, information booths at City events, notices and articles in local newspapers, updates at City Council meetings and through social media platforms. The Gabrieleno Band of Mission Indians-Kizh Nation provided input through a government-to-government consultation on mitigation guidelines for Tribal cultural resources. Access Hermosa, a local stakeholder group addressing ADA accessibility issues through the City, along with the South Bay Bicycle Coalition provided input on preferred bicycle options. The Surfrider Foundation provided input on the stormwater elements. The Police Department and Downtown Subcommittee, comprised of elected official and City staff, provided input on lighting and site amenities. The Chamber of Commerce assisted in informing and educating businesses regarding the project. The same public participation process will be utilized during the design of Parking Lot A. 5. Location: See the “Project Summary”. 6. Need: The Conservancy is providing a significant contribution to the proposed project and the grantee does not have sufficient funding to complete the proposed project without the Conservancy funds. 7. Greater-than-local interest: While the proposed project is physically located within Hermosa Beach, lessons learned will be used to inform future project designs both within the City of Hermosa Beach as well as regionally. The City participates in the Beach Cities 385 Exhibit 2 Enhanced Watershed Management Program which has been incorporated into the Los Angeles Integrated Regional Water Management Plan to achieve regional water quality and water supply goals. The proposed project will help achieve identified regional water quality and water supply goals. The proposed project also promotes regional access to recreational opportunities provided by the City’s beach and downtown commercial core which is frequented by visitors from the Los Angeles Region as wells as other parts of California and the United States by accommodating multiple modes of transportation and including many pedestrian facilities such as increased green space, seating areas, and safety lighting as well as ADA accessibility improvements. Results from multiple surveys done over the years have shown that many visitors of Hermosa Beach come from a surrounding radius of five to ten miles, including The City of Lawndale and the City of Hawthorne which are both disadvantaged communities (DACs). Within a 10-mile radius there are close to 500,000 residents living in DACs for who Hermosa Beach is a popular recreation destination. Parking Lot D is 500 meters from public bus stops and Parking Lot A is 35 meters from public bus stops. 8. Sea level rise vulnerability: According to the Hermosa Beach Storm Drain Master Plan (2018), portions of the Hermosa Beach storm drain system are susceptible to sea level rise due to their proximity to the ocean and generally low ground elevations. Although elevations throughout the City vary, much of the beach area at the western edge of the City is lower than the projected high tides when considering 39 inches of sea level rise, which was the projected sea level rise by 2100 based on the Coastal Storm Modeling System for Southern California (CoSMoS 3.0). Increased water levels at the outfalls will contribute to interior flooding during storm events and increased precipitation intensity due to climate change will contribute to higher peak runoff through direct overland flow during high tides. While the proposed project will help to improve localized flooding through capture of stormwater runoff onsite, both sites could be affected by localized flooding due to sea level rise because of infrastructure vulnerability of the Pier Avenue storm drain. Risks from the effects of sea level rise are considered in the City’s recent update of its Storm Drain Master Plan which was informed by the Hermosa Beach Assessment of Infrastructure Vulnerability to Sea Level Rise (2016). The City’s Hazard Mitigation Planning process will assess risks to project elements and recommend actions to mitigate these risks. Additional Criteria 9. Resolution of more than one issue: The improvements on the Parking Lot D portion of the proposed project will address water quality issues, the need for carbon sequestration through the planting of trees, public health concerns due to dust originated from the unvegetated areas, safety concerns due to insufficient lighting, and ADA issues due to noncompliant ADA parking stalls. 10. Leverage: See the “Project Financing” section below. 11. Readiness: The proposed project is ready to implement. 12. Cooperation: The proposed project involves cooperation from stakeholders, and members of the community. See the “Support of the Public” section above. 13. Minimization of greenhouse gas emissions: Many elements of the proposed project will reduce and sequester greenhouse gases over the life of the project. Solar panels will offset energy needs for lighting, thus reducing greenhouse gas emissions associated with operation 386 Exhibit 2 of the site. The installation of charging stations for plug-in electric vehicles will encourage the expansion of non-emission vehicles in place of fossil-fueled vehicles. Lastly, tree and vegetation planting will further result in sequestration of greenhouse gasses at the project site. PROJECT FINANCING Coastal Conservancy $433,650 Hermosa Beach General Fund $499,650 Project Total $933,300 The expected source of funding for this authorization is the 2019/20 FY appropriation to the Conservancy from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (“Proposition 1”, Division 26.7 of the Water Code Sections 79700 et seq.). Funds appropriated to the Conservancy derive from Chapter 6 of Proposition 1 and may be used for ecosystem and watershed protection and restoration (Section 79731). Section 79732 identifies specific purposes that these funds may be used for, including: protecting and restoring rural and urban watershed health through improved storm water resource management; protecting and restoring coastal watersheds; and reducing pollution or contamination of coastal waters (Section 79732(a)(9), (10) and (11)). The proposed project was reviewed and subsequently recommended for funding through a competitive grant process under the Conservancy’s Proposition 1 Grant Program Guidelines adopted in June 2015 (“Prop 1 Guidelines”). (See § 79706(a)). The proposed Project meets each of the evaluation criteria in the Prop 1 Guidelines as described in further detail in the following sections of this staff recommendation: “Project Financing”, “Project Summary” and “Consistency with Conservancy’s Project Selection Criteria & Guidelines” (sections above). The proposed project is supported with funds from the Hermosa Beach General Fund. The City of Hermosa Beach will also provide in-kind services (staff time for project management) estimated to be $50,000. CONSISTENCY WITH CONSERVANCY’S ENABLING LEGISLATION: The proposed project would be carried out pursuant to Chapter 9 of Division 21 of the Public Resources Code (Sections 31400-31409), regarding the implementation of public coastal accessways. Public Resources Code Section 31400 directs the Conservancy to have a principal role in the implementation of public accessways to and along the State’s coastline. To this end, Public Resources Code Section 31400.3 authorizes the Conservancy to “provide such assistance as is required to aid public agencies and nonprofit organizations in establishing a system of public coastal accessways, and related functions necessary to meet the objectives of this division.” Granting funds to the City of Hermosa Beach for the purpose of renovating, and designing improvements to, two heavily used, beach-access parking lots in Hermosa Beach so that the parking lots can better serve the public while also protecting water quality, is consistent with this section. CONSISTENCY WITH CONSERVANCY’S 2018-2022 STRATEGIC PLAN GOAL(S) & OBJECTIVE(S): Consistent with Goal 1, Objective A of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will implement and support projects to promote awareness and use of the 387 Exhibit 2 California Coastal Trail by including signage directing visitors to the immediately adjacent California Coastal Trail (Hermosa Strand). Consistent with Goal 2, Objective A of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will expand and enhance opportunities for access for people with disabilities to and along the coast. Consistent with Goal 2, Objective C of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will design a parking lot facility to increase and enhance coastal recreational opportunities and enable people to enjoy natural, cultural, and historical resources. Consistent with Goal 2, Objective D of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will fund the renovation of a dilapidated and unsafe parking lot to increase and enhance coastal recreational opportunities and enable people to enjoy natural, cultural, and historical resources. Consistent with Goal 4, Objective B of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will support the design and installation of interpretive or educational displays and exhibits related to coastal, watershed, and ocean-resource education by installing interpretive signage at Parking Lot D on stormwater capture and reuse, and native plants. Consistent with Goal 6, Objective F of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will complete plans to improve water quality to benefit coastal and ocean resources by designing a plan to capture stormwater runoff and reduce pollutant loading to Santa Monica Bay. CEQA COMPLIANCE: The proposed project is exempt under CEQA Section 15301 (Existing Facilities) because the construction of the proposed improvements involves only minor alteration to the existing parking lots and will involve negligible or no expansion beyond their current use. Upon approval of the project, Conservancy staff will file a Notice of Exemption. 388 RESOLUTION NO. 21-7279 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH APPROVING THE GRANT OF FUNDS FROM THE STATE COASTAL CONSERVANCY FOR HERMOSA BEACH PARKING LOT GREENING PROJECT WHEREAS, the Legislature of the State of California has established the State Coastal Conservancy (“Conservancy”) under Division 21 of the California Public Resources Code, and has authorized the Conservancy to award grants to public agencies and nonprofit organizations to implement the provisions of Division 21; and WHEREAS, the Conservancy awards grants for projects that it determines are consistent with Division 21 of the Public Resources Code and with the Conservancy’s Strategic Plan and that best achieve the Conservancy’s statutory objectives, in light of limited funding. WHEREAS, at its March 25, 2021 meeting, the Conservancy adopted a resolution authorizing a grant to the City of Hermosa Beach (“grantee”) for the Hermosa Beach Parking Lot Greening Project (“the project”). The resolution was adopted by the Conservancy pursuant to and is included in the Conservancy March 25, 2021 staff recommendation, a copy of which is on file with the grantee and with the Conservancy. WHEREAS, the Conservancy requires that governing body of the grantee certify through a resolution that it approves the award of Conservancy grant funding and authorizes the execution by a representative of the grantee of a grant agreement on terms and conditions required by the Conservancy grant agreement number 20-102. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY RESOLVE AS FOLLOWS: 1. Approves the award of grant funding from the Conservancy for the project. 2. Acknowledges that it has or will have sufficient funds to complete the project and, if any property is acquired as part of the project to operate and maintain the property, and, if any facilities are constructed as a part of the project, to operate and maintain the facilities for a reasonable period, not less than the useful life of the facilities. 3. Agrees to be bound by all terms and conditions of the grant agreement and any other agreement or instrument as may be required by the Conservancy and as may be necessary to fulfill the terms of the grant agreement and to complete the project. 4. Authorizes any of the following named officers or employees of the grantee to act as a representative of the grantee, to negotiate and execute on behalf of the grantee all agreements and instruments necessary to complete the project and to comply with the Conservancy's grant requirements, including, without limitation, the grant agreement: City Manager, Deputy City Manager, and Environmental Programs Manager. PASSED, APPROVED and ADOPTED this 13th day of July, 2021. 389 ____________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ City Clerk City Attorney 390 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0396 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH CONTINUING THE TEMPORARY CLOSURE OF PARTS OF CITY STREETS AS PART OF THE COVID-19 PANDEMIC RESPONSE AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (Environmental Programs Manager Doug Krauss) Recommended Action: City Staff recommends City Council adopt a resolution continuing the temporary closure of parts of City streets as part of the COVID-19 pandemic response and finding the same exempt from the California Environmental Quality Act (CEQA). Executive Summary: At the June 22,2021 meeting,City Council approved an extension of the temporary downtown lane reconfigurations until December 31,2021.The proposed Resolution authorizes the continuation of the temporary project in response to the ongoing impacts of the COVID-19 pandemic. Background: At the July 14,2020 City Council meeting,City staff presented an item seeking direction on potential closures of travel lanes on the downtown sections of Hermosa Avenue and Pier Avenue to encourage increased foot traffic and expand outdoor dining and retail opportunities in the public right-of-way.City Council directed staff to secure the services of a traffic engineering consultant to develop plans for the potential lane closures. At the August 11,2020 City Council meeting,staff presented three lane configuration concepts for Hermosa Avenue.At that meeting,Council took the following actions:selected one of the concepts; directed staff to proceed with implementation;extended the southern extent of the work to 8th Street; and stipulated that the reconfiguration remain in place for a minimum of six months after implementation. At the August 25,2020 meeting,City Council approved a resolution authorizing the City Manager to temporarily close parts of City streets downtown.At the September 8,2020 meeting,Council provided staff direction on concepts for lane reconfigurations for Pier Avenue. City of Hermosa Beach Printed on 7/9/2021Page 1 of 4 powered by Legistar™391 Staff Report REPORT 21-0396 Per City Council direction,staff worked with one of the City’s on-call traffic engineering consultants to develop construction plans and specifications for the project.Input was also sought from the Economic Development Subcommittee and its Stakeholder group.Council awarded a contract for the construction of the lane reconfigurations at the October 27,2020 meeting and the work was completed in January 2021.The completion of the project installation marked the beginning of the six -month temporary project duration, setting the expiration date as mid-July 2021. At its regular meeting on June 22,2021,City Council approved extending the outdoor dining and the lane reconfiguration programs to respond to the ongoing impacts of the COVID-19 pandemic.The proposed Resolution is required to allow the extension of the lane reconfiguration and associated lane closures.Both programs continue to be exempt from CEQA as they were implemented to mitigate impacts of the COVID-19 emergency and involve the minor temporary use of land. Past Council Actions Meeting Date Description June 9, 2020 (Regular Meeting)Approved Ordinance 20-1410U allowing temporary permit program for outdoor dining in response to pandemic July 14, 2020 (Regular Meeting)Directed to staff to proceed with development of lane closure plans August 11, 2020 (Regular Meeting)Chose a lane configuration concept for Hermosa Avenue, extended it to 8th Street, and provided a six month duration August 25, 2020 (Regular Meeting)Approved Resolution 20-7252 allowing lane closures in downtown September 8, 2020 (Regular Meeting)Chose a lane configuration concept for Pier Avenue October 27, 2020 (Regular Meeting)Awarded contract for construction of lane reconfigurations June 22, 2021 (Regular Meeting)Council extended outdoor dining and lane reconfiguration programs Discussion: Staff would continue to monitor and assess these lane reconfigurations for safety,traffic congestion, multi-modal transportation coordination,economic revitalization,and general community utilization. This would include staff time,the use of expert consultants,performing traffic counts,and general community engagement and outreach.Per Council’s direction,staff would bring an update to Council near the end of the summer to discuss the project’s performance and status. General Plan Consistency: The proposed program options match the model of “living streets”,also known as “complete streets,”and a key guiding principle of the General Plan Vision is to foster a vibrant local economy. City of Hermosa Beach Printed on 7/9/2021Page 2 of 4 powered by Legistar™392 Staff Report REPORT 21-0396 streets,”and a key guiding principle of the General Plan Vision is to foster a vibrant local economy. A living street combines safety and livability while supporting ground floor and outdoor economic activities.This centers on designing streets that can be safely shared by both vehicular and non- vehicular traffic.A living street should also contribute to an engaging public realm and a vibrant local economy. Relevant Policies are listed below: Governance Element Goal 6.A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism. Policies: 6.4 Business support.Support the Chamber of Commerce,retailers,tourist service businesses, artists,and other agencies to develop an aggressive marketing strategy with implementation procedures. 6.6 Pop-up shops.Develop plans and programs for underutilized spaces,such as vacant buildings,utility corridors,parkways,etc.,for temporary retail,restaurant,and community promoting uses. Mobility Element Goal 1.Complete Streets (Living Streets)that serve the diverse functions of mobility, commerce,recreation,and community engagement for all users whether they travel by walking, bicycling, transit, or driving. Policies: 1.1 Consider all modes.Require the planning,design,and construction of all new and existing transportation projects to consider the needs of all modes of travel to create safe,livable and inviting environments for all users of the system. Goal 7.A transportation system that results in zero transportation-related fatalities and which minimizes injuries. Policies: 7.1 Safe public right-of-ways.Encourage that all public right-of-ways are for all users at all times of day where users of all ages and ability feel comfortable participating in both motorized and non-motorized travel. Fiscal Impact: There is no direct fiscal impact associated with the recommended action.Staff would return with updates and further information concerning costs related to changing or removing the lane reconfigurations in the future. Attachments: 1.Draft Resolution City of Hermosa Beach Printed on 7/9/2021Page 3 of 4 powered by Legistar™393 Staff Report REPORT 21-0396 Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 4 of 4 powered by Legistar™394 RESOLUTION NO. _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH CONTINUING THE TEMPORARY CLOSURE OF PARTS OF CITY STREETS AS PART OF THE COVID-19 PANDEMIC RESPONSE AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City Council of the City of Hermosa Beach does hereby find, order, and resolve as follows: SECTION 1. Recitals. 1. As the COVID-19 pandemic continues in the City, the continuation of the in effect temporary street closures will continue to allow local restaurants to offer temporary dining in socially distant environments. Further, this will allow local residents and visitors to patronize these restaurants in a safe manner. 2. Local businesses and restaurants continue to face impacts from the COVID-19 pandemic and need assistance to recover from the economic damage caused by the COVID-19 pandemic. 3. Section 21101(e) of the California Vehicle Code further authorizes the City to adopt rules and regulations to temporarily close a portion of any street under its jurisdiction for local special events and other purposes when, in the opinion of the City or a public officer or employee that the City Council designates by resolution, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing. 4. The City Council desired that portions of certain local streets be temporarily used for outdoor recreation and open air dining and other business purposes that allows the public to safely patronize local businesses and enjoy the outdoors, while adhering to any applicable COVID-19 related regulation. 5. To this end, on June 9, 2020, the City Council adopted Ordinance No. 20-1410U, Implementing a Temporary Permit for Outdoor Dining/Seating and Outdoor Retail Display to Assist in the Reopening of Restaurants, Food, and Retail Establishments during COVID-19, and on August 11, 2020, the Council authorized proposed plans to temporarily close one lane of vehicular traffic in each direction on Hermosa Avenue, between 8th and 14th Street, to facilitate recreational and economic activity in the City’s downtown area. 6. On August 20, 2020, the City Manager, in her capacity as Director of Emergency Services, adopted Executive Order No. 2020-11, closing specified lanes of traffic on Hermosa Avenue as necessary to implement Ordinance No. 20-1410U and the Council’s August 11 direction. Under section 2.56.060 of the Hermosa Beach Municipal Code, rules and regulations adopted by the Director of Emergency 395 Services, following the declaration of a local emergency, must be confirmed at the earliest practicable time by the City Council. On August 25, 2020, this action was ratified by the City Council as necessary for the protection of persons safely using City streets and the City Manager was authorized to extend the terms of the Temporary Permit for Outdoor Dining/Seating and Outdoor Retail Display through March 2021. 7. The City Council finds and resolves that continuing the temporary lane closures is necessary for the protection of persons safely using City streets . SECTION 2. NOW, THEREFORE, the City Council hereby resolves as follows: 1. Based on the foregoing recitals and in accordance with the terms of Vehicle Code section 21101(e), the City Council desires that portions of the following streets shall continue to be closed to vehicular traffic through December 31, 2021 to allow for open air dining and other business purposes intended to allow the public to patronize local businesses and dine outdoors in a manner that is safe and allows businesses to provide services in a way that eases any concerns regarding the spread of COVID-19:  Hermosa Avenue between 8th Street and 14th Street (maximum of one lane closed in each direction so that through lanes open in both directions)  Pier Avenue between Valley Drive and Hermosa Avenue (maximum of one lane closed in each direction so that through lanes open in both directions)  Small section of Hermosa Avenue immediately north of the intersection for right turn to northbound Hermosa Avenue 2. The City finds and resolves that the closure of such streets is necessary for the protection of persons using such streets for such purposes during the designated time period. 3. The City Manager or designee is authorized to take such steps as are necessary to implement and maintain such closure for the designated period, and otherwise carry out the direction of this Resolution. SECTION 3. Environmental Review. The lane closures effectuated by this Order are necessary to facilitate outdoor economic and recreational activity to recover from the economic damage caused by COVID-19 in a way that thwarts any further spread of COVID-19. Implementation of the Order is thus exempt from the California Environmental Quality Act (“CEQA”) under the statutory exemption for actions necessary to prevent or mitigate an emergency (Public Resources Code § 21080(b)(4); CEQA Guideline § 15269(c)) and the categorical exemption for minor temporary use of land (CEQA Guideline § 15304(e)). The lane reconfigurations for the Hermosa Avenue and Pier Avenue are temporary measures created in direct response to the COVID-19 emergency. In response to COVID-19, businesses have experienced unprecedented and ongoing closures and limitations, and the ability of local 396 businesses to survive (and to mitigate the effects of this emergency) depend on creation of additional outdoor and expanded spaces to provide for physical distancing. Finally, as this is a temporary measure during a period of reduced use of streets by vehicular traffic (with many people working from home), and as the improvements can be removed, there is no possibility that the lane closures will have a permanent effect on the environment. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or word of this Order is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such decision shall not affect the remaining provisions of this Order. SECTION 5. Effective Date. This Order shall become effective immediately. PASSED, APPROVED, AND ADOPTED this ___ day of July, 2021. __________________________________________ MAYOR ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ City Clerk City Attorney 397 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0413 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ORDINANCE 21-1432 OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING CHAPTER 8.60 OF THE HERMOSA BEACH MUNICIPAL CODE TO COMPLY WITH THE DEPARTMENT OF WATER RESOURCES’ MODEL WATER EFFICIENT LANDSCAPE ORDINANCE (City Clerk Eduardo Sarmiento) Recommended Action: Staff recommends City Council waive full reading and adopt by title Ordinance No. 21-1432. Executive Summary: At the June 22,2021 City Council meeting,staff presented the attached Ordinance of the City of Hermosa Beach amending chapter 8.60 of the Hermosa Beach Municipal Code to comply with the Department of Water Resources’model water efficient landscape ordinance for City Council consideration.Following public hearing,City Council approved the introduction of the ordinance by the following vote: Ayes:Councilmembers Armato, Campbell, Mayor Pro Tem Detoy, and Mayor Massey Noes:None Absent:None Abstain:None Past Council Actions Meeting Date Description February 9, 2010 (Regular Meeting)Adopted Ordinance 10-1305 adding Chapter 8.60 Water Efficient Landscaping to the Hermosa Beach Municipal Code June 22, 2021 (Regular Meeting) Introduced Ordinance 21-1432 amending Chapter 8.60 of the Hermosa Beach Municipal Code to Comply with the Department of Water Resources' Model Water Efficient Landscape Ordinance Fiscal Impact: There is no direct fiscal impact to the City associated with the recommended action. City of Hermosa Beach Printed on 7/9/2021Page 1 of 2 powered by Legistar™398 Staff Report REPORT 21-0413 Attachment: 1.Ordinance No. 21-1432 Respectfully Submitted by: Eduardo Sarmiento, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 2 of 2 powered by Legistar™399 65270.00001\33646472.1 ORDINANCE NO. 21-1432 AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING CHAPTER 8.60 OF TITLE 8 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING WATER EFFICIENT LANDSCAPE REGULATIONS WHEREAS, the City of Hermosa Beach imposes water efficient landscape requirements on all new and rehabilitated landscaping for public agency projects and private development projects that require a permit, as well as all developer-installed landscaping, pursuant to Section 8.60.010 et seq. of the Hermosa Beach Municipal Code; and WHEREAS, the Water Conservation in Landscaping Act (Government Code Section 65591 et seq.) (the “Act”) was enacted for the purpose of reducing waste water associated with irrigation of outdoor landscaping; and, WHEREAS, the Act requires the State Department of Water Resources (“DWR”) to draft a model water efficient landscape ordinance (“MWELO”) (Cal. Code Regs., tit. 23, § 490 et seq.), and further required cities and counties, by January 1, 2010, to adopt the MWELO, or a locally modified ordinance at least as effective in conserving water as the MWELO, or else the state MWELO applies by default (Gov. Code, § 65595); and WHEREAS, on April 1, 2015, Governor Brown signed Executive Order B 29-15, which directed the DWR to update the MWELO; and, WHEREAS, the DWR updated the MWELO on September 15, 2015; and WHEREAS, the City intends to comply with the current MWELO and this Water Efficient Landscape Ordinance is intended to locally implement the Act. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES ORDAIN AS FOLLOWS: Section 1. The recitals set forth above are hereby adopted as the findings of the City Council in connection with the adoption of this Ordinance. Section 2. Chapter 8.60 of the Hermosa Beach Municipal Code is hereby renamed to “Water Efficient Landscaping” Section 3. Section 8.60.030 of the Hermosa Beach Municipal Code is hereby amended in its entirety to read as follows: 8.60.030 Applicability. A. This Chapter is intended to implement, and shall be construed in a manner that is consistent with the Model Water Efficient Landscape Ordinance in Chapter 2.7 of Division 2 of Title 23 (Waters) of the California Code of Regulations, and 400 65270.00001\33646472.1 Ordinance No. 21-1432 Page 2 of 12 ________________ any amendment thereto. "Consistent with" may also include more restrictive water conservation or water use efficiency measures. B. This Chapter shall apply to all of the following within the City of Hermosa Beach: 1. New landscape projects with an aggregate landscape area e qual to or greater than 500 square feet, requiring a building or landscape permit, plan check or design review; 2. Rehabilitated landscape projects with an aggregate landscaped area equal to or greater than 2,500 square feet, requiring a building or lands cape permit, plan check or design review; 3. New or rehabilitated landscape projects with an aggregate landscape area of 2,500 square feet or less may comply with the performance requirements of this ordinance or conform to the prescriptive measures contained in Appendix D of the Model Water Efficient Landscape Ordinance; and 4. New or rehabilitated projects using treated or untreated graywater or rainwater capture on site, any lot or parcels within the project that has less than 2,500 square feet of landscape area and meets the lot or parcel’s landscape water requirement (Estimated Total Water Use) entirely with the treated or untreated graywater or though stored rainwater capture on site is subject only to Appendix D, Section 5, of the Model Water Efficient Landscape Ordinance. 5. Existing landscapes limited to Sections 493, 493.1 and 493.2 of the of the Model Water Efficient Landscape Ordinance. 6. Sections 492.4, 492.11, and 492.12 of the Model Water Efficient Landscape Ordinance shall apply to new construction or rehabilitated landscape projects at cemeteries, and Sections 493, 493.1, and 493.2 of the Model Water Efficient Landscape Ordinance shall apply to existing cemeteries. C. This Chapter does not apply to: 1. Registered local, state, or federal historical sites; 2. Ecological restoration projects that do not require a permanent irrigation system; 3. Mined-land reclamation projects that do not require a permanent irrigation system; or 4. Plant collections, as part of botanical gardens and arboretums open to the public. 401 65270.00001\33646472.1 Ordinance No. 21-1432 Page 3 of 12 ________________ E. The City may collaborate with another agency, such as a water purveyor, to implement some or all of the requirements contained in this Chapter. F. This Chapter shall be applied in conjunction with the water conservation requirements of Chapter 8.56. Where conflicts in language may exist between this Chapter and Chapter 8.56 or any other provision of the Municipal Code, the language that requires the greater water conservation shall prevail. Section 4. Section 8.60.040 of the Hermosa Beach Municipal Code is hereby amended in its entirety to read as follows: 8.60.040 Definitions. The terms in this Chapter shall be broadly construed to achieve the purposes of this Chapter and may be supplemented by definitions and information in the Model Efficient Landscape Ordinance. "Certificate of Completion" means the information and certifications that the landscape project has been installed and will operate in compliance with the approved Landscape Documentation Package as detailed in Section 492.9 of the Model Water Efficient Landscape Ordinance, and as more specifically provided in this Chapter. “Discretionary planning entitlement" means a land use permit or approval granted by the Planning Commission necessary to proceed with development pursuant to Title 17 (Zoning). "Evapotranspiration rate" or “ET rate” means the quantity of water evaporated from adjacent soil and other surfaces and transpired by plants during a specified time. “Evapotranspiration adjustment factor” or “ETAF” of 0.55 for residential areas and 0.45 for non-residential areas, that, when applied to reference evapotranspiration, adjusts for plant factors and irrigation efficiency, two major influences upon the amount of water that needs to be applied to the landscape. The ETAF for new and existing (non-rehabilitated) Special Landscape Area shall not exceed 1.0. The ETAF for existing non-rehabilitated landscapes is 0.8. “Hydrozone” means a portion of the landscape area having plants with similar water needs. A hydrozone may be irrigated or non-irrigated. "Landscape area" means the total area of the landscape project (planting areas, turf areas, and water features) in a landscape design plan that is subject to the "Maximum Applied Water Allowance" calculation. Landscape area does not include footprints of buildings or structures, sidewalks, driveways, parking lots, decks, patios, gravel or stone walks, other pervious or impervious hardscapes, and other non-irrigated areas designated for non-development (e.g., open spaces and existing native vegetation). 402 65270.00001\33646472.1 Ordinance No. 21-1432 Page 4 of 12 ________________ "Landscape Documentation Package” means the project information, water efficient landscape worksheet, soil management report, landscape design plan, irrigation design plan and grading design plan, prepared by the professionals and containing the information and certifications set forth in Sections 492.3 through 492.8 of the Model Water Efficient Landscape Ordinance, and as more specifically provided in this Chapter. "Landscape irrigation system" means an irrigation system with pipes, hoses, spray heads, or sprinkling devices that is operated by through an automated system. “Maximum Applied Water Allowance” or “MAWA” means the upper limit of annual applied water for the established landscaped area as specified in the Model Water Efficient Landscape Ordinance. It is based upon the area’s reference evapotranspiration, the ET Adjustment Factor, and the size of the landscaped area. The Estimated Applied Water Use shall not exceed the Maximum Applied Water Allowance. MAWA = (ETo) (0.62) [(ETAF x LA) + ((1-ETAF) x SLA)]. "Model Water Efficient Landscape Ordinance" means the regulations adopted by the State of California in Chapter 2.7 of Division 2 of Title 23 (Waters) of the California Code of Regulations. “New construction” means, for the purposes of this Chapter, a new building with a landscape or other new landscape, such as a park, playground, playing field, or greenbelt without an associated building. “Plant factor” or “plant water use factor” is a factor, when multiplied by ETo, that estimates the amount of water needed by plants. For purposes of this Chapter, the plant factor range for very low water use plants is 0 to 0.1; the plant factor range for low water use plants is 0 to 0.3; the plant factor range for moderate water use plants is 0.4 to 0.6; and the plant factor range for high water use plants is 0.7 to 1.0. Plant factors cited in this Chapter are derived from the publication “Water Use Classification of Landscape Species.” Plant factors may also be obtained from horticultural researchers from academic institutions or professional associations as approved by the California Department of Water Resources (DWR). “Reference evapotranspiration" or “ETo” means a standard measurement of environmental parameters that affect the water use of plants expressed in inches per day, month or year, and is an estimate of the evapotranspiration of a large field of four- to seven-inch tall, cool-season grass that is well watered. Calculation of the ’Maximum Applied Water Allowance’ and ’Estimated Total Water Use’ shall use the ETo values for Redondo Beach in Appendix A of the Model Water Efficient Landscape Ordinance as follows: CITY JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANNUAL Redondo Beach 2.2 2.4 3.3 3.8 4.5 4.7 5.4 4.8 4.4 2.8 2.4 2.0 42.6 403 65270.00001\33646472.1 Ordinance No. 21-1432 Page 5 of 12 ________________ "Special landscape area" or “SLA” means an area of the landscape dedicated permanently and solely to edible plants (such as orchards or gardens), areas irrigated with recycled water, water features using recycled water, and areas dedicated to active play (such as parks, sports fields, golf courses) where turf provides a playing surface. “Turf” means a ground cover surface of mowed grass. Annual bluegrass, Kentucky bluegrass, Perennial ryegrass, Red fescue, and Tall fescue are cool -season grasses. Bermudagrass, Kikuyugrass, Seashore Paspalum, St. Augustinegrass, Zoysiagrass, and Buffalo grass are warm-season grasses. "Water budget calculation." See "maximum applied water allowance." "Water conserving plants" means species with a low plant factor. May also be referred to as water efficient or water wise plants. "Weather based irrigation controller" means a device that automatically adjusts the irrigation schedule based on changes in the weather. "Water Efficient Landscape Worksheet" means the worksheets required by Section 492.4 of the Model Water Efficient Landscape Ordinance. "Water Use Classification of Landscape Species" ("WUCOLS”), University of California, Cooperative Extension, current edition, applicable to the City of Hermosa Beach, California. Section 5. Section 8.60.050 of the Hermosa Beach Municipal Code is hereby amended in its entirety to read as follows: 8.60.050 Procedures. This Chapter shall be implemented through the Landscape Documentation Package application process. The Planning Commission may impose additional measures or conditions on the approval of applications for discretionary planning entitlements to further the purposes of this Chapter. A. Application submittal. Prior to issuance of a building or related construction permit, the applicant shall submit a Landscape Documentation Package on forms supplied by the Community Development Department accompanied by a fee set by resolution of the City Council. The Package shall include: 1. A landscape design plan prepared by a licensed landscape architect, licensed landscape contractor, or any other person authorized to design a landscape in accordance with the provisions of the California Business and Professions Code Section 5640 et seq. relating to the practice of landscape architecture, and shall comply with all of the requirements of and contain the certification of compliance set forth in Section 492.6 of the Model Efficient Landscape Ordinance. 404 65270.00001\33646472.1 Ordinance No. 21-1432 Page 6 of 12 ________________ 2. An irrigation design plan prepared by a licensed landscape architect, certified irrigation designer, licensed landscape contractor, or any other person authorized to design an irrigation system in accordance with the provisions of the California Business and Professions Code Section 5640 et seq. relating to design of irrigation systems, and shall comply with all of the requirements of and contain the certification of compliance set forth in Section 492.7 of the Model Efficient Landscape Ordinance. 3. A grading design plan prepared by a licensed civil engineer or other qualified professional as authorized by law, and shall comply with all of the requirements of and contain the certification of compliance set forth in Section 492.8 of the Model Efficient Landscape Ordinance. 4. A soils management plan completed by the applicant or his/her designee shall comply with all of the requirements of Section 492.5 of the Model Efficient Landscape Ordinance. 5. A Water Efficient Landscape Worksheet prepared by the applicant or his/her designee that complies with all of the requirements of Section 492.4 of the Model Efficient Landscape Ordinance. B. Application review. The Community Development Director or his or her designee shall review the Landscape Documentation Package for compliance with this Chapter and approve, approve with conditions, or deny the application if the Director determines that the submittal does not comply with the requ irements of this Chapter. Plans, worksheets, and related documents required by this Chapter and the construction permit process shall be modified consistent with approval of the Landscape Documentation Package. C. Compliance verification. 1. Prior to a request for final landscape or final occupancy inspection, the preparer of the landscape design plan or irrigation design plan or the licensed landscape contractor shall inspect the installation and submit a Certificate of Completion certifying that the installation substantially conforms to the approved Landscape Documentation Package or modifications thereto approved by the City and documented on As-Built plans. 2. No building or other equivalent construction permit shall be issued unless and until the Certificate of Completion required by Subsection (C)(1) of this Section has been included on the final landscape plan submitted for plan check approval. 3. No building or other equivalent construction permit shall be given a final landscape inspection or issued a permanent Certificate of Occupancy until the Community Development Department approves the Certificate of Completion. Upon a 405 65270.00001\33646472.1 Ordinance No. 21-1432 Page 7 of 12 ________________ decision to deny the Certificate of Completion, the applicant may modify and resubmit the application, apply for an exception from standards, or appeal the decision. D. Exceptions from standards. 1. Requests for exceptions shall be in writing and shall be submitted to the Community Development Director at the time the application is submitted to the City for review, or within a reasonable amount of time after the applicant determines or is informed that compliance with a requirement in this Chapter is infeasible. Requests for exceptions must be accompanied by documentary evidence supporting the finding of equivalent or greater water conservation accompanied by a fee set by resolution of the City Council. 2. Exceptions to the standards set forth in Section 8.60.060 may be approved or conditionally approved by the Community Development Director or by the Planning Commission as part of the approval of a discretionary planning entitlement, upon making a finding based on substantial evidence that the exception will provide equivalent or greater water conservation than would be otherwise achieved by applying the standard. E. Appeals. The decision of the Community Development Director may be appealed to the Planning Commission, and a decision of the Planning Commission may be appealed to the City Council, within ten (10) days of the decision. A written request shall be submitted to the City Clerk stating the grounds for the appeal accompanied by a fee adopted by resolution of the City Council. The City Council shall review the appeal at the next meeting that the item may be heard. Section 6. Section 8.60.060 of the Hermosa Beach Municipal Code is hereby amended in its entirety to read as follows: 8.60.060 Standards for new or rehabilitated landscapes. New or rehabilitated landscape projects shall be designed and managed to use the minimum amount of water required to maintain plant health. New or rehabilitated landscape projects shall comply with all of the requirements of the Model Efficient Ordinance and the following, whichever is more restrictive, unless an exception is granted pursuant to Section 8.60.050(D). A. Plant material. 1. Plant species and landscape design shall be adapted to the climate, soils, topographical conditions, and shall be able to withstand exposure to localized urban conditions such as pavement heat radiation, vehicle emissions and dust, and urban runoff. Water conserving plant and turf species shall be used. 406 65270.00001\33646472.1 Ordinance No. 21-1432 Page 8 of 12 ________________ 2. Plant species or specifications shall comply with any official list of species, guidelines or regulations adopted by the City to the extent that such lists, guidelines or regulations do not conflict with this Chapter. 3. Plants listed in the current Invasive Plant Inventory for the southwest region by the California Invasive Plant Council or similar source acceptable the Community Development Director are prohibited, except for known non-fruiting, non-invasive, sterile varieties or cultivars. Plants known to be susceptible to disease or pests in this Climate Zone six (6) shall not be used. 4. The landscape area of projects proposing exclusively commercial or industrial uses shall be designed using exclusively water conserving plants. There shall be no turf in non-residential areas. Single family residential, multi-family residential, mixed use and institutional use projects shall be designed with not more than twenty (20) percent of the total landscaped area in turf or high water use plants in the Water Use Classification for Landscape Species (WUCOLS). Turf may be used as a bio-swale or bio-filter or for functional purposes such as active recreational areas as determined by the Community Development Director. Public agencies shall be exempt from this requirement. 5. Turf shall not be allowed on slopes greater than twenty (20) percent. Where the toe of the slope is adjacent to an impermeable surface, alternatives to turf should be considered on slopes exceeding twenty (20) percent, meaning one (1) foot of vertical elevation change for every four (5) feet of horizontal length. Approved turf areas may be watered at 1.0 of the reference evapotranspiration (ETo). 6. Planted areas shall be covered with a minimum of three (3) inches of organic mulch, except in areas covered by groundcovers or within twenty-four (24) inches of the base of a tree, or where a reduced application is indicated. Additional mulch material shall be added from time to time as necessary to maintain the required depth of mulch. 7. Species and landscape design shall complement and to the extent feasible in compliance with this Chapter be proportional to the surroundings and streetscape and incorporate deciduous trees to shade west and south exposures. Landscaping shall not interfere with safe sight distances for vehicular traffic, the vision clearance in Section 17.46.060, height restrictions for hedges in 17.46.130, pedestrian or bicycle ways, or overhead utility lines or lighting. B. Water features, pools and spas. 1. Recirculating water systems shall be used for water features. Where available, recycled water shall be used as a source for decorative water features. 2. Pools and spas shall be equipped with a cover and covered overnight and daily when use is concluded. 407 65270.00001\33646472.1 Ordinance No. 21-1432 Page 9 of 12 ________________ C. Grading and runoff. Landscape design shall minimize soil erosion and runoff. 1. Grading plans shall avoid disruption of natural drainage patterns to the extent feasible. 2. Grading plans shall demonstrate that normal rainfall and irrigation will remain within the property lines and not drain onto impermeable surfaces, walkways, sidewalks, streets, alleys, gutters, or storm drains. 3. Plans and construction shall protect against soil compaction within landscape areas. 4. Stormwater best management practices to minimize runoff, to increase on-site retention and infiltration, and control pollutants shall be incorporated into project plans. Rain gardens, cisterns, swales, structural soil, permeable pavement, connected landscape areas, and other landscape features and practices that increase onsite rainwater capture, storage and infiltration, emphasizing natural approaches over technology-based approaches that require ongoing maintenance, shall be considered during project design. Plans and practices shall comply with Chapter 8.44. D. Irrigation systems. 1. An automatic irrigation system using either evapotranspiration o r soil moisture sensor data, with a rain shut-off sensor, shall be installed. All irrigation emission devices must meet the requirements set in the American National Standards Institute (ANSI) standard, American Society of Agricultural and Biological Engineers’/International Code Council’s (ASABE/ICC) 802-2014 “Landscape Irrigation Sprinkler and Emitter Standard. All sprinkler heads installed in the landscape must document a distribution uniformity low quarter of 0.65 or higher using the protoco l defined in ASABE/ICC 802-2014. 2. An irrigation efficiency of 0.75 for overhead spray devices and 0.81 for drip systems shall be used for the purpose of determining Maximum Applied Water Allowance. Irrigation systems shall be designed, maintained, and managed to m eet or exceed this efficiency. Landscapes using recycled water are considered Special Landscape Areas, where the ET Adjustment Factor shall not exceed 1.0. 3. The irrigation system shall be designed to prevent water waste resulting in runoff, overspray, or similar conditions where irrigation water ponds or flows onto non-irrigated areas, walkways, sidewalks, streets, alleys, gutters, storm drains, adjacent property, or similar untargeted areas. Runoff to other permeable or impermeable surfaces shall not be allowed. 4. Narrow or irregularly shaped areas, including turf less than eight (8) feet in width in any direction, shall be irrigated with subsurface irrigation or low volume above-ground irrigation system. 408 65270.00001\33646472.1 Ordinance No. 21-1432 Page 10 of 12 ________________ 5. Overhead irrigation shall not be permitted within two (2) feet of any impermeable surface. Drip, drip line, or other low flow non-spray technology shall be used. 6. All sprinklers shall have matched precipitation rates within each valve and circuit. All irrigation systems shall be designed to i nclude optimum distribution uniformity, head to head spacing, and setbacks from sidewalks, pavement and impermeable surfaces. 7. All irrigation systems shall provide backflow prevention devices in accordance with the current edition of the California Building/Plumbing Code and check valves at the low end of irrigation lines to prevent unwanted draining of irrigation lines. Pressure regulators may be required if the pressure at the sprinkler head exceeds the manufacturer’s recommended optimal operating pressure. 8. Reclaimed water and graywater irrigation systems shall be used when reasonably feasible and shall conform to the current edition of the California Building/Plumbing Code, and all other applicable local, state and federal laws. E. Irrigation system hydrozones. 1. The irrigation system shall conform to the hydrozones of the landscape design plan. 2. Each hydrozone shall have plant materials with similar water use, with the exception of hydrozones with plants of mixed water use where the plant fa ctor of the higher water using plant is used for calculations. No hydrozone shall mix high and low water use plants. 3. Sprinkler heads and other emission devices shall be appropriate for the plant type within that hydrozone. Where feasible, trees shall be placed on separate valves from turf, shrubs and groundcovers. 4. No landscape plan or restriction of any type, including those applicable to common interest developments such as condominiums, shall prohibit or include conditions that have the effect of prohibiting native or water conserving plants. F. Landscape and irrigation maintenance. 1. All landscape and related elements shall be designed and properly maintained to insure long-term health and shall maintain conformance with the requirements of this Chapter. 2. Irrigation scheduling shall be regulated by automatic irrigation controllers. 3. Watering hours and duration shall be scheduled compliant with the requirements of Chapter 8.56. 409 65270.00001\33646472.1 Ordinance No. 21-1432 Page 11 of 12 ________________ 4. A regular maintenance schedule shall include, but not be limited to, routine inspection, adjustment and repair of the irrigation system, aerating and dethatching turf areas, replenishing mulch, fertilizing, pruning, weeding and removing any obstruction to emission devices. 5. Repair of all irrigation equipment shall be promptly undertaken, using the originally installed components, or equivalent or enhanced components compatible with the irrigation system. 6. Landscape areas shall be permanently maintained and kept free of weeds, debris and litter; plant materials shall be maintained in a healthy growing condition and diseased or dead plant materials shall be replaced, in kind, pursuant to the approved plans within thirty (30) days. Alternatively, diseased or dead plant materials may be replaced with plant materials that have low water needs, as rated in the current edition of the Water Use Classification of Landscape Species. 7. The use, storage and disposal of all landscape and lawn care products shall comply with all manufacturer’s specifications and applicable laws, and minimize the discharge of pollutants to the environment. G. Notwithstanding the requirements of this Section, landscape design and maintenance shall additionally comply with the requirements of Chapters 8.44 and 8.56, Title 17 (Zoning), any other applicable provisions of this code, and the requirements of a development permit, whichever is more restrictive. Section 7. Section 8.60.070 of the Hermosa Beach Municipal Code is hereby repealed in its entirety. Section 8. CEQA Exemption. The City Council hereby determines that this Ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) (California Public Resources Code Section 21000 et seq.), because pursuant to State CEQA Guidelines section 15307 (Cal. Code Regs., tit. 14, § 15307), this Ordinance is covered by the CEQA Categorical Exem ption for actions taken to assure the maintenance, restoration, enhancement, or protection of a natural resource where the regulatory process involves procedures for protection of the environment. The adoption of this Ordinance will result in the enhancement and protection of water resources in the City, and will not result in cumulative adverse environment impacts. It is therefore exempt from the provisions of CEQA. The City Council hereby directs the City Manager or designee to prepare and file a Notice of Exemption as soon as possible following adoption of this Ordinance. Section 11. Severability. If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decisions shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase 410 65270.00001\33646472.1 Ordinance No. 21-1432 Page 12 of 12 ________________ thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional. Section 12. Effective Date. Pursuant to California Government Code section 36937, this ordinance shall take effect thirty (30) days after its final passage. Section 13. Certification. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Hermosa Beach’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and cause it to be published or posted in accordance with California law. PASSED, APPROVED and ADOPTED this ____ day of _____________ 2021. VOTE: AYES: ____ NOES: ____ ABSTAIN: ____ ABSENT: ____ _________________________________________ MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: __________________________ City Clerk City Attorney 411 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0411 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 APPROVAL OF A SPECIAL EVENT LONG-TERM AGREEMENT WITH THE INTERNATIONAL SURF FESTIVAL FOR ITS ANNUAL EVENT HELD ON THE BEACH (Senior Recreation Supervisor Lisa Nichols) Recommended Action: Staff recommends City Council: 1.Approve a three-year agreement with the International Surf Festival for its annual event held on the beach; and 2.Authorize the Mayor and City Council to execute the agreement,subject to approval by the City Attorney (Attachment 1). Executive Summary: In May 2021,City Council approved negotiations for a special event long term agreement (LTA)with International Surf Festival.Staff worked with the International Surf Festival to develop the proposed agreement and recommends approval of a three-year agreement beginning July 28,2021 and expiring August 7, 2023. Background: As part of the approval process for the special event LTA policy pilot program,staff received an LTA application on February 17,2021 from the International Surf Festival to provide its annual event on the beach.On April 12,2021,the Parks,Recreation and Community Resources Advisory Commission reviewed the LTA application from the International Surf Festival and approved commencement of negotiations for the annual event.On May 25,2021,City Council approved the Commission’s recommendation to commence negotiations. Past Council Actions Meeting Date Description May 25, 2021 (Regular Meeting)City Council reviewed the LTA application and approved the Commission’s recommendation to commence negotiations City of Hermosa Beach Printed on 7/9/2021Page 1 of 5 powered by Legistar™412 Staff Report REPORT 21-0411 Discussion: Staff worked with the International Surf Festival to develop mutually agreeable terms for an agreement to hold its annual event on the beach.The International Surf Festival event takes place on the north and south side of the Pier in and out of the water.Setup would take place the Wednesday and Thursday leading up to the event and includes an announcer’s stage and bleachers.The annual event includes:lifeguard competitions;a pier-to-pier swim;pier-to-pier paddle;volleyball;surfing;and body surfing activities.The International Surf Festival anticipates 1,300 in attendance over the course of the weekend.Negotiations have concluded and staff recommends approval of the proposed agreement commencing July 28, 2021 and expiring August 7, 2023 (Attachment 1). General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policies: ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities. Parks and Open Space Element Goal 3. Community parks and facilities encourage social activity and interaction. Policies: ·3.1 Community-friendly events.Encourage,permit,and support community group,nonprofit, or business organized events on City property that support physical activity,beach culture, and family-friendly social interactions. ·3.2 Social and cultural events.Design and program parks and open space to accommodate unique social and cultural events to foster connectedness and interaction. ·3.3 Commercial use of facilities.Regulate and enforce commercial use of City parks and open spaces to ensure activities do not impact general use and enjoyment. Goal 8.Special events at the beach are balanced to support community recreation and economic development without restricting coastal access or impacting the community. Policies: ·8.3 Community-focused events.Prioritize the approval of special events that enhance the sense of community,improve economic vitality,and foster a healthy environment and active City of Hermosa Beach Printed on 7/9/2021Page 2 of 5 powered by Legistar™413 Staff Report REPORT 21-0411 sense of community,improve economic vitality,and foster a healthy environment and active lifestyles. ·8.4 Family-focused events.Prioritize events that appeal to a wide segment of community members. Fiscal Impact: Table 1 includes all applicable special event fees associated with the International Surf Festival event.All fees would be waived,as proposed in the LTA,and consistent with the City’s long-standing support and partnership with this event throughout the past fifty years.The proposed fee-waivers include:the non-profit application fee of $589;the event set-up and tear-down fee of $266 per day; the category 1 event fee of approximately $2,600;the amplified sound permit fee of $173;and parking fees (to be determined).The total fees waived over the three-year agreement term would be approximately $12,480. Table 1: International Surf Festival Event Fees City of Hermosa Beach Printed on 7/9/2021Page 3 of 5 powered by Legistar™414 Staff Report REPORT 21-0411 City of Hermosa Beach Printed on 7/9/2021Page 4 of 5 powered by Legistar™415 Staff Report REPORT 21-0411 Attachments: 1.Proposed Agreement between the City of Hermosa Beach and the International Surf Festival. Respectfully Submitted by: Lisa Nichols, Senior Recreation Supervisor Concur: Kelly Orta, Community Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 5 of 5 powered by Legistar™416 International Surf Festival 2021 - 2023 1 AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE INTERNATIONAL SURF FESTIVAL TO PROVIDE THE INTERNATIONAL SURF FESTIVAL THIS AGREEMENT is made this ________ day of _________________, 2021, by and between the City of Hermosa Beach (hereinafter called “CITY”), and the International Surf Festival (hereinafter called “ISF”). RECITALS A. ISF desires to organize, coordinate, produce and oversee the International Surf Festival (“Event”) in the City on City-owned property for the term of this Agreement. B. The CITY is willing to make its property available for the Event due to the benefit it provides to the community. NOW, THEREFORE, the parties agree as follows: Section 1. Term of Agreement. The term of this Agreement shall commence on July 28, 2021 and terminate on August 7, 2023, unless earlier terminated as provided herein. Section 2. IS F ’s Duties: a. Event. ISF may organize, coordinate, produce and oversee the Event on the beach, in and out of the water, within the commercial zone (10th to 15th Street). The event must remain open to the public. Event days included as part of this Agreement shall be: • July 28, 2021 – August 2, 2021 • July 27, 2022 – August 1, 2022 • August 2, 2023 – August 7, 2023 b. Annual Event Confirmation. ISF must annually inform the CITY of its intent to produce the Event, including confirmation of event dates and event times, no later than three (3) months prior to the event dates. Should ISF desire to reschedule an event date(s) from the dates outlined in this Agreement, it must do so in writing no later than three (3) months prior to the requested event date(s). CITY will review the request against other activities and events booked within the City. While approval of a date change will not be unreasonably withheld, already scheduled activities or events will have priority. Use of additional location(s) may be approved as mutually agreed upon between the CITY and ISF provided ISF informs the CITY of this request at least three (3) months prior to the Event. The CITY or ISF may cancel an Event within 30 days written notice prior to each Event without penalty due to COVID-19 precautionary measures or other pandemic-related health orders that would deem the event unsafe or temporarily prohibited. CITY reserves the right in its sole discretion at any time or times to 417 International Surf Festival 2021 - 2023 2 close and suspend the use of each Event Location subject to this Agreement for any duration in order to protect public health and safety. Any such closure will not constitute a breach or a default of this Agreement. CITY shall have no liability whatever to ISF for the effect of such suspension and closure on any Event, nor shall CITY have any responsibility to provide ISF with substitute Event locations. ISF ’s rights under this Agreement are subject and subordinate to CITY’s police and emergency powers in addition to CITY’s rights to manage its municipal facilities including outdoor public spaces and its contractual rights as described in this Agreement. c. Event Permits and Agreements. ISF shall obtain permits from CITY for each Event and shall enter into and comply with all agreements for such permits as required by CITY, including but not limited to the provision of adequate insurance and indemnification of CITY, its officers, agents, volunteers, employees, and attorneys as outlined in the Special Event Permit. Exhibit A includes a sample Special Event Permit. d. Insurance. ISF shall provide comprehensive general liability insurance with a combined single limit of not less than $2,000,000.00 per occurrence. Such insurance shall (a) name the City, its appointed and elected officials, officers, employees and agents as insured’s; and (b) be primary with respect to any insurance or self-insurance programs maintained by the City; and (c) contain standard cross-liability provisions. ISF shall furnish properly executed certificates of insurance to City, which certificates shall clearly evidence all coverage required above and provide that such insurance shall not be materially changed, terminated or allowed to expire except on thirty (30) days prior written notice to City; and further, shall provide that if ISF fails to pay any required deductible or self-insured retention, City may do so at ISF’s expense. e. Fee to CITY. Direct costs shall be waived, including but not be limited to the provision of CITY Staff time dedicated to the Event, Amplified Sound Permit, and parking fees. Indirect costs shall also be waived including the annual special event application fee, category fee, set-up/tear-down fee, and co-sponsor fees. f. Annual Review. Within 60 days prior to and after each Event, ISF shall provide an annual overview to the Parks, Recreation and Community Resources Advisory Commission in the form of an agendized presentation. The pre-event presentation shall highlight: a general event overview including anticipated number of attendees; an overview of the event footprint and individualized setup; and anticipated impacts to the community as a result of the event. The post-event presentation shall include: a general overview including the actual number of attendees; actual impact(s) to the community as a result of the event; and any event struggle(s) and success(es). g. Environmental Sustainable Measures. ISF shall implement the CITY’s environmental sustainability measures, including but not limited to: 418 International Surf Festival 2021 - 2023 3 i. Electric and Bio-diesel Generators. Generators on the venue shall be electric or operated with a 50% blend of bio-diesel fuel, or equivalent or lower emissions sources. ii. Plastic Bags. Use of plastic bags to deliver, provide, or hand merchandise or Event-related items is prohibited. iii. ISF shall additionally implement all sustainability measures in the City’s Green Matrix through its conduct of the Event and shall ensure vendor compliance. iv. ISF shall: (1) Incorporate sustainability requirements into vendor agreements, and advertise green measures and rules in event advertising and online; (2) prohibit the use of single-use plastic straws, stirrers, and utensils beginning July 1, 2020 (per HBMC 8.64); limit single-use paper, packaging, and décor items; use appropriately sized plates, containers and cups; and limit use of handouts, flyers and giveaways; (4) enact a no-idling requirement for vehicles associated with the loading and unloading of event-related equipment; and (5) provide onsite personnel to ensure that litter and trash are minimized, and recycling is maximized. v. ISF shall participate in pre-event and post-event reviews of compliance with sustainability measures. k. Parking Spaces. ISF may request dedicated use of public parking spaces as needed for the parking of Event-related vehicles; storage of essential Event- related equipment and supplies; and other Event-related structures for each Event. Use of these spaces must be mutually agreed upon between the CITY and ISF following submittal of a site plan by ISF outlining the use of the parking space(s) at least ten (10) working days prior to each Event. While approval of parking request(s) will not be unreasonably withheld, already scheduled activities or events will have priority. The CITY will consider approval based on the location, seasonal needs for parking, and the overall impacts to the loss of parking spaces to the area. ISF shall ensure the spaces are clean from debris, and other materials that were collected as a result of event-related activities. l. Logistical Meetings. ISF is required to participate in logistical and planning meetings with relevant CITY departments as requested by the City. m. Sponsorships. ISF may sell sponsorships for the Event. ISF agrees that Event sponsors will not be from any person or entity promoting gambling, political, or religious viewpoints. Event sponsors promoting alcohol are only permitted if approved by the City. Donating persons or entities must be consistent with the core values, mission, and vision of the City. 419 International Surf Festival 2021 - 2023 4 Section 3. CITY’s Duties. a. Event Permits. CITY shall provide event permits to ISF for each Event unless CITY determines in its sole discretion that it would not be in the public interest or that it would be averse to the public health, safety, or welfare. b. No Parking Signs. The CITY shall post no parking at least 72 hours prior to the start of event setup. Section 4. Assignment. This agreement may not be assigned in whole or in part by either party, without the prior written consent of the other party. Section 5. Independent Contractor. ISF will act hereunder as an independent contractor. This Agreement shall not and is not intended to constitute ISF as an agent, servant, or employee of CITY and shall not and is not intended to create the relationship of partnership, joint venture or association between CITY and ISF. Section 6. Termination. CITY may terminate this Agreement upon 30 days written notice to ISF if CITY determines in its sole discretion that continuation of this Agreement would not be in the public interest, that it would be adverse to the public health, safety, or welfare, or that a substantial portion of CITY’s property is unavailable due to construction activity. Prior to termination on the ground that a substantial portion of CITY’s property is unavailable due to construction activity, CITY shall provide ISF an opportunity to propose adjustments to the venue or an alternative location for the event. ISF’s proposed adjustments or alternative shall be provided within 30 days of written notice from CITY and is subject to approval of the City Council, in its sole discretion, in a public meeting. Upon termination of the Agreement, any events subsequent to the termination will no longer be the responsibility of ISF. Section 7. Notice. Any notice required to be given shall be deemed duly and properly given upon delivery, if sent postage prepaid or if personally delivered as follows: For ISF: International Surf Festival 82 Highland Avenue Manhattan Beach, CA 90266 (310) 502-9910 Attention: Robert McGowan, President For CITY: City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 (310) 318-0216 Attention: Suja Lowenthal, City Manager 420 International Surf Festival 2021 - 2023 5 Section 8. Entire Agreement. This Agreement represents the entire integrated agreement between CITY and ISF, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both parties. The parties anticipate that, in addition to this Agreement, they will enter into an event agreement for each Event setting forth precise terms and conditions applicable to that Event. EXECUTED the day and year first above stated. ISF By: ____________________________________ Robert McGowan, International Surf Festival President CITY OF HERMOSA BEACH By:___________________________________ Justin Massey, Mayor APPROVED AS TO FORM ATTEST By:_________________________________ By:_________________________________ Michael Jenkins, City Attorney City Clerk 421 International Surf Festival 2021 - 2023 6 EXHIBIT A – Special Event Permit CITY OF HERMOSA BEACH SPECIAL EVENT PERMIT I. Permit CITY OF HERMOSA BEACH (“City”) hereby grants approval to the ______________ EVENT PLANNER”) for use of the ____________ (the “SITE”) as the location for the _________________ (the “EVENT”). The permission granted herein for conduct of the EVENT on the SITE, shall commence from ________ and terminate at __________, including set up and tear down, on _________________________. This Permit is revocable at any time for violation of conditions of approval, the Hermosa Beach Municipal Code or any applicable regulation or law. II. Event Planner’s Obligations (checked boxes denote applicable obligations) 1. Not more than 60 days and not less than 30 days in advance of the EVENT, EVENT PLANNER shall: ☐ a) Damage deposit: Post a bond, cashier's check or letter of credit, in the amount of $_______________ as compensation for any damage that may occur to physical property or other costs arising from EVENT PLANNER’S use of the SITE. The bond or other surety shall provide that in the event the EVENT PLANNER fails or refuses to clean up and restore the SITE to its original condition or fails or refuses to compensate City for other physical damage, City may, at its option, make demand upon the surety for such cash payment as is required to perform such work. ☐ b) Insurance: Provide to City a policy of comprehensive general liability insurance with a combined single limit of not less than $2,000,000.00 per occurrence. Such insurance shall (a) name the City, its appointed and elected officials, officers, employees and agents as insured’s; and (b) be primary with respect to any insurance or self - insurance programs maintained by the City; and (c) contain standard 422 International Surf Festival 2021 - 2023 7 cross-liability provisions. EVENT PLANNER shall furnish properly executed certificates of insurance to City, which certificates shall clearly evidence all coverage required above and provide that such insurance shall not be materially changed, terminated or allowed to expire except on thirty (30) days prior written notice to City; and further, shall provide that if the EVENT PLANNER fails to pay any required deductible or self -insured retention, City may do so at EVENT PLANNER’s expense. ☐ c) Event fees: EVENT PLANNER shall tender any outstanding fees associated with the City’s Special Event Application process a minimum of 30 days prior to the EVENT unless non-profit, per participant fees apply for payment immediately following the event. ☒ d) Permits and approvals: EVENT PLANNER shall obtain all necessary permits and approvals for the EVENT as set forth in the completed Special Event Application or otherwise required by the City (e.g., business license, street banner approval, light pole banner requests, etc.). ☐ e) Provide City with the name and event day telephone number of its designated representative for the event, and/or the names of designated representatives who will be physically on the property for the entire duration of the EVENT if different from that stated on the Special Event Permit Application; ☐ f) Notify all residents and businesses within a 300 foot radius of the SITE. The notice shall be in writing and shall include the date and time of the EVENT, and the telephone number of the designated representative. Said written notice shall be provided to the City through electronic copy not less than 1 week prior to distribution for review and approval; 2. Commencing with the date and time this permit authorizes the use by the EVENT PLANNER for the EVENT, EVENT PLANNER shall: ☐ a) Fence the entire EVENT area; ☐ b) Provide adequate portable restroom facilities for the EVENT according to standards as outlined by City for Special Events; ☐ c) Provide adequate first aid facilities and staff; ☐ d) Secure its own telephones and telephone lines for the EVENT; 423 International Surf Festival 2021 - 2023 8 ☐ e) Install a protective barrier around the perimeter of the EVENT not later than _______________. EVENT PLANNER shall be responsible for removal of the barrier upon completion of the EVENT. Said barrier(s) shall structurally and aesthetically fulfill the City’s requirements for said barrier(s); ☐ f) Ensure that the EVENT includes adequate access and seating to reasonably accommodate the needs of the disabled; ☐ g) Provide its staff and designated City representatives with proper credentials and identification for access to the EVENT and SITE area; ☐ h) Clean, restore, resurface and make operational the SITE to the satisfaction of the City (notwithstanding the clean-up activities described in Section III.7) upon completion of the EVENT and no later than the post- event walk-through (if applicable) described in Section III.9.; ☐ i) Maintain six (6) posted volleyball courts on the north side of the Pier for recreational use; ☐ j) Install and maintain six (6) posted, temporary volleyball courts on the south side of the Pier for recreational use. ☐ k) Pay to City the total sum of costs for all personnel, materials, equipment, and disposal fees incurred by City in connection with SITE preparation and clean-up activities and associated repairs described in Section III.7., including overhead and indirect costs. Payment shall be made within 60 days of receipt of invoice from City; ☐ h) DO NOT EXTEND PAST NOBLE PARK WITH ANY EVENT RELATED EQUIPMENT, SUPPLIES, OR SET UP. 3. Conduct the EVENT in accordance with all materials included in the complete Special Event Application for the EVENT approved by the City, including but not limited to the EVENT Site Plan, Parking Plan, Safety/Security Plan, Green Matrix, and Accessibility Plan. If information on any Special Event Application materials has changed from that which was approved by the City, EVENT PLANNER shall notify the City within 24 hours of any such change. 424 International Surf Festival 2021 - 2023 9 4. EVENT PLANNER’s obligations shall be completed in the time periods set forth above and notice of items not completed to City’s satisfaction shall be given to EVENT PLANNER in writing. EVENT PLANNER shall have seven days from receipt of notice to complete the obligation, except in the event of an emergency. Any obligations not completed within the dates set forth above may be completed by City and EVENT PLANNER shall reimburse City on a time and materials basis. III. Services to be Provided by City ☐ 1. Representatives of the City, including any required police and fire officials necessary to complete required inspections, and EVENT PLANNER shall perform a walk-through of the SITE on _______________, at which time the condition of the SITE shall be duly noted in writing by said representatives, and shall specifically identify any existing damage or other abnormalities and City shall repair anything identified as a potential hazard or liability prior to EVENT PLANNER taking possession of the SITE. ☐ 2. Facilitate closing of streets impacted by the SITE, including _______________, during the hours of _______________. ☐ 3. Approve text of notices as required by Section II. f. above. ☐ 4. Provide, at no additional cost, the following: a) _____ collection containers with a storage capacity of not less than twenty-five (25) gallons each; b) Collection vehicle and crew to empty the cans on the SITE; c) Street sweepers. ☐ 5. Ensure that, to the best of the City’s knowledge, all other organized activities will be excluded from the SITE during the EVENT. ☐ 6. Provide a 24-hour contact person who shall be available in the event of emergency during the time EVENT PLANNER maintains possession of the SITE. ☐ 7. Perform clean-up at cost to EVENT PLANNER as established in the Special Event Permit Application for the EVENT, or in accordance with 425 International Surf Festival 2021 - 2023 10 actual cost if the amount of clean-up exceeds the EVENT fees, which shall include but is not limited to: ☐ a. Removal and disposal from public property all no-parking signs, litter and debris located at the SITE at cost to EVENT PLANNER; ☐ b. Steam cleaning of sidewalks, garages and hardscape surfaces as required at the SITE at cost to EVENT PLANNER; ☐ c. Repair of any irrigation damage to landscaped medians, planter beds, lawn areas and the SITE grounds; ☐ d. Renovation of all turf and shrubs on landscaped medians, planter beds, lawn areas on the SITE; ☐ e. Removal and disposal of trash receptacles placed on public areas of the SITE; ☐ f. Restoration of all public areas impacted by the EVENT, including public streets, to the same conditions prior to the EVENT. 8. The City shall submit itemized invoices to EVENT PLANNER for all work described above within 90 days of the EVENT. Said invoices shall include an itemized breakdown of costs associated with the cleanup of SITE. In addition, the City will provide an itemized invoice listing all time and materials used in the repair of City facilities. 9. Subsequent to the EVENT, and after EVENT PLANNER completed its cleanup process of the premises, a post-event walk-through shall be conducted by the representatives of the City and EVENT PLANNER, at which time any damages or other abnormalities which may have arisen as a result of the use of the premises by EVENT PLANNER shall be duly noted in writing by said representatives, it being understood that the City (1) shall undertake to repair and/or replace any damaged property; and (2) shall bill EVENT PLANNER for the cost thereof. The foregoing notwithstanding, EVENT PLANNER shall remain responsible for any later-discovered damage that was not reasonably visible during the walk-through. Walk thru to be held no later than _______________. IV. Notices 426 International Surf Festival 2021 - 2023 11 All notices and communications shall be sent to the parties at the following addresses: The City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 V. Indemnification EVENT PLANNER shall hold harmless, defend and indemnify the City and County of Los Angeles, its officers, employees and volunteer from and against any and all liability, loss, damage expense, and costs (including without limitation costs and fees of litigation), of every nature arising out of or in connection with production and performance of the EVENT or its failure to comply with any of its obligations contained in this Permit except such loss or damage which was caused by the sole negligence or willful misconduct of the City. EVENT PLANNER shall pay promptly any judgment rendered against City and County of Los Angeles, their respective officers, agents or employees, for any such claims, damages, penalties, obligations and/or liabilities. VI. Authority The person executing this Permit for EVENT PLANNER certifies that s/he has full authority to sign on behalf of EVENT PLANNER and to bind EVENT PLANNER to the foregoing conditions. VII. Revocation EVENT PLANNER hereby accepts all of the foregoing conditions and understands and acknowledges that City may revoke this permit at any time upon finding that any of the foregoing conditions have not been satisfied. EVENT PLANNER further acknowledges that this permit ma y be revoked and the EVENT ordered concluded at any time during the course of the EVENT by the highest ranking City police officer or fire personnel on duty at the time upon determination that the EVENT is causing a violation of State law or upon a determination that the EVENT has become a threat to public safety. VIII. Miscellaneous Provisions This permit is personal to the EVENT PLANNER and may not be transferred, assigned or otherwise conveyed without the consent of the City. 427 International Surf Festival 2021 - 2023 12 Neither party will use the other party’s name, logos, trademarks or service marks in any manner without the other party’s prior written approval. This permit grants permission solely for the EVENT described above on the day(s) and time(s) indicated on the SITE. Nothing in this permit shall be construed as creating a partnership, joint enterprise or other contractual arrangement between City and EVENT PLANNER. The EVENT is a privately sponsored event; it is not a City event and is not sponsored by the City. APPROVED BY: City: Signature Print Name Applicant: Signature Event Representative Print Name Address: Telephone No 428 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0403 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ADOPTION OF FISCAL YEAR 2021-22 BUDGET (Continued from June 29, 2021) (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council: 1.Hear public testimony regarding the Fiscal Year 2021-22 Budget (Attachments 1 and 2); 2.Approve increase in rates for legal services effective July 1,2021 and approve an annual CPI adjustment commencing 2023 (Attachment 3); and 3.Adopt a Resolution approving the 2021-22 Budget as presented in Exhibit A (included in Attachment 4). Executive Summary: The initial forecast of the 2020-21 Budget produced a deficit of $3.5 million.Recommendations to unfreeze some positions,add a new position,and approve supplemental requests from departments of $248,303 increased the deficit to $4.1 million.Staff recommends the use of unspent funds of $1,802,370 from the two prior fiscal years and a transfer of $2,310,878 from the American Rescue Plan Act Fund to the General Fund to balance the budget.The end result is a 2021-22 budget that includes a Contingency (Rainy Day Fund)of $6,778,522,or 16 percent of appropriations per the City’s adopted financial policy,essential staff and supplemental requests,and capital projects that would continue to move the City forward towards its established goals. Background: On April 21, 2021, a study session was held for the 2021-22 Capital Improvement Program. The City transitioned from a paper-based document to an interactive online budget document for the 2021-22 Fiscal Year.Additional time was needed to prepare the budget due to new software implementation.City Council approved the date of June 29,2021 for the budget workshop and public hearing.The planned submission date for the Preliminary Budget was moved from May 15,2021 to June 24, 2021. A summary of the General Fund is also provided (Attachment 5)and will be incorporated into the City of Hermosa Beach Printed on 7/9/2021Page 1 of 6 powered by Legistar™429 Staff Report REPORT 21-0403 A summary of the General Fund is also provided (Attachment 5)and will be incorporated into the Adopted Budget. Analysis: The estimated General Fund revenue shortfall due to COVID-19 results in a deficit of $3.5 million, prior to the approval of any position requests,changes to frozen positions,and approval of any supplemental items. The chart below shows the steps taken to balance the budget: Total General Fund Starting Surplus/(Deficit) (3,507,454) New Revenue Proposition A Fund Exchange 490,000 Changes to Appropriations Supplemental Requests (248,303) Position Requests/Frozen Positions (765,356) Prospective Expenditures (100,000) Changes to Transfer Ou t Cover Lighting/Landscaping Deficit from RTI Fund 204,790 Transfer 2019 -20 and Midyear 2020 -21 Unspent Funds to Cap ital Improvement Fund (1,772,773) Change in Fund Balance Reserves Increase Contingency to 16% of Operating Expenditures (132,455) Assign balance of Prop A Fund Exchange Funds not used for Engineer in 2021-22 (369,470) Unassign 2019-20 Year End Balance 1,751,727 Unassign 2020-21 Midyear Balance 1,823,416 Use of Other Funding Sources Move Crossing Guards to Proposition C Fund 315,000 American Rescue Plan Act Funds 2,310,878 0 Staff recommends City Council approve the following actions to balance the 2021-22 Budget: Adopt revised estimated revenue of $40,015,295 and transfers in of $2,729,260 which includes a one -time exchange of Proposition A funds and transfer outlined below: ·The City of Hermosa Beach has an excess of $700,000 in Proposition A (Prop A)funds.The City of West Hollywood needs additional Prop A funds for its transit operations.Staff recommends City Council approve a fund exchange with the City of West Hollywood at an City of Hermosa Beach Printed on 7/9/2021Page 2 of 6 powered by Legistar™430 Staff Report REPORT 21-0403 recommends City Council approve a fund exchange with the City of West Hollywood at an exchange rate of $0.70 on the dollar,which results in $490,000.The Prop A funds would remain restricted for the City of West Hollywood,while the funds received by Hermosa Beach would become unrestricted and may be used for any purpose.Staff recommends proceeds from the exchange be used to fund a new Assistant Engineer.Of the $490,000 received, $369,470 would be assigned in the fund balance of the General Fund to cover costs related to the position for approximately three additional years.The exchange agreement would come back to Council in July 2021 for approval. ·Transfer $2,310,878 from the American Rescue Plan Act (ARPA)Fund to the General Fund. The City is fortunate to receive federal ARPA funds of $4.6 million,which may be used for the replacement of lost revenue since March of 2020,and to partially restore staffing to pre- pandemic levels.The first half is expected in July,with the other half distributed 12 months later.Staff recommends using the first half of the ARPA funds for the purpose of working to restore staffing to pre-pandemic levels and providing public safety. At a high level, American Rescue Plan Act funds have the following eligible uses: o COVID-19 or a negative economic impact; o Premium pay for eligible workers; o Government Services to the extent of the loss of revenue; or o Investments in water, sewer, and broadband infrastructure. The proposed use of $2.3 million in the 2021-22 Budget would free up General Fund revenue and allow for the transfer of prior year unspent funds to the Capital Improvement Fund as outlined below. Adopt revised appropriations of $42,419,974 and transfers out of $3,134,118,which includes the following staffing recommendations and supplemental requests: ·Add Essential Supplemental Requests of $148,703; ·Add Position Requests/Frozen Positions of $765,356; ·Cover the Lighting/Landscaping Deficit of $229,790 from the RTI Fund instead of the General Fund; ·Move the budget for Crossing Guard Services,historically funded from the General Fund,to the Proposition C (Prop C)Fund,which is an approved use of the funds restricted for transit related expenses; ·Increase Prospective Expenditures account by $100,000; and ·Transfer $1,772,773 in unspent funds from prior years to the Capital Improvement Fund to provide funding of $886,386 for future Capital Improvement Projects,increase the Capital Facilities Reserve by $316,813,and establish a reserve of $569,574 for the remaining FireCity of Hermosa Beach Printed on 7/9/2021Page 3 of 6 powered by Legistar™431 Staff Report REPORT 21-0403 Facilities Reserve by $316,813,and establish a reserve of $569,574 for the remaining Fire Facility payments to the County for the newly renovated fire station.The remaining $1,802,370 from Midyear 2020-21 would be used to cover the deficit in the General Fund. As a part of the Midyear Budget Review on March 9,2021,staff recommended assigning the unspent General Funds from 2019-20 of $1,751,688 and the remaining available balance of $1,823,416 from the 2020-21 Budget for use in the 2021-22 Budget process.During the budget process,it would be determined if the funds need to remain in the General Fund or should transfer to meet funding goals, in accordance with the City’s financial policies.The use of American Rescue Plan Act Funds mentioned above would free up the General Fund and allow for the City to replenish the Capital Improvement Fund. Contracts for Services As part of approval of the 2021-22 Budget,the City Attorney is requesting an increase in rates for legal services effective July 1,2021 (except as noted below for pending litigation matters).The City’s contract for legal services with Best Best &Krieger allows for Council to approve an increase in rates without a contract amendment. The City Attorney indicates that services have been provided to the City for over 25 years and during that time rates were kept very low and have only increased on a few occasions.The last increase was thirteen years’ago in 2008.Consequently,the rates are not commensurate with the public agency legal market (which is itself considerably lower than private sector rates)and are not on a par with the rates that are currently charged to other city clients.The rates are lower than many non- attorney consultants used by the City and are well below the rates charged by outside attorneys that have been hired by the City. The new rate structure proposes an across-the-board increase in various categories of rates as shown in Attachment 3;however,the current rate structure for pending litigation matters will be retained until they conclude,and the new rates will apply for new litigation matters commencing after July 1,2021.In order to avoid asking for this sort of increase in the future,a biannual CPI adjustment in rates, commencing in 2023 is proposed. Despite the proposed increase in rates,there is no increase in the overall legal services budget for the 2021-2022 fiscal year.The amount budgeted for general city attorney services and litigation should be sufficient. General Plan Consistency: PLAN Hermosa,the City’s long-range planning document,was adopted by the City Council in August 2017,and envisions a future where “Hermosa Beach is the small town others aspire to be;a place where our beach culture,strong sense of community,and commitment to sustainability intersect.” City of Hermosa Beach Printed on 7/9/2021Page 4 of 6 powered by Legistar™432 Staff Report REPORT 21-0403 where our beach culture,strong sense of community,and commitment to sustainability intersect.” One of the guiding principles to achieve the vision is to make decisions and take actions that help contribute to the City’s economic and fiscal stability.Other relevant General Plan policies are listed below: Governance ·1.2 Strategic planning.Regularly discuss and set priorities at the City Council and management level to prioritize work programs and staffing needs. ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities. Parks and Open Space ·1.1 Facility upgrades. Improve and update park and open space facilities on a regular basis. ·2.6 Investment and maintenance.Prioritize the investment and maintenance of existing facilities prior to development and expansion of new facilities. Infrastructure ·1.2 Priority investments.Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan. Public Safety ·5.2 High level of response.Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community. Fiscal Impact: The recommendations contained in the Preliminary Budget cure the General Fund deficit and reflect the philosophy of maintaining City services to the extent possible with minimal disruption. The 2021-22 Budget,including all funds,estimates revenue of $50,829,066 and appropriations of $71,900,085, of which $16,377,229 is carried forward from prior year Capital Improvement Projects. Attachments: 1.Link to Fiscal Year 2021-22 Preliminary Budget and Capital Improvement Program (Online Platform) 2.Link to Fiscal Year 2021-22 Preliminary Budget and Capital Improvement Program (PDF Version) 3.Proposed Legal Services Rates 2021 4.Resolution of Budget Adoption, including Exhibit A-Budget Summary City of Hermosa Beach Printed on 7/9/2021Page 5 of 6 powered by Legistar™433 Staff Report REPORT 21-0403 5.Fiscal Year 2021-22 General Fund Summary Respectfully Submitted by: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 6 of 6 powered by Legistar™434 Current Active Matters with Current Rates & Proposed Rates effective July 1, 2021 Bi-Annual CPI to begin July, 2023 Arrangement Matter # Matter Name Partner/Of Counsel Associates Paralegals, etc. Partner/Of Counsel Associates Paralegals, etc. General Legal Services $187 $187 $170 $205 $205 $170 65270.00001 CITY ATTORNEY - GENERAL 65270.00002 NORTH SCHOOL MOU IMPLEMENTATION 65270.00003 INFILTRATION PROJECT 65270.00004 GREENWICH VILLAGE UNDERGROUNDING DISTRICT 65270.00005 PUBLIC RECORD REQUESTS 65270.00006 COVID-19 EMERGENCY RESPONSE 65270.00007 ADA / DISABILITY ISSUES 65270.00010 LAND USE 65270.00011 HILLCREST DRIVE UNDERGROUNDING DISTRICT 65270.00012 BAYVIEW 2020 UNDERGROUNDING DISTRICT 65270.00013 EL OESTE/LA CARLITA/TENNYSON UNDERGROUNDING DISTRICT ARC $180 $180 $180 $180 $180 $180 65270.00602 PUBLIC RECORDS ACT / HANDLED BY ARC Code Enforcement $195 $195 $170 $235 $235 $170 65270.00100 CODE ENFORCEMENT Litigation 65270.00202 ADV. CROSSFIT HORSEPOWER: HERMOSA BEACH 65270.00203 MARK ROTH V. KIHN LUAN TRAN, ET AL. 65270.00208 HERMOSA FITNESS, LLC V. CITY OF HERMOSA BEACH (FEDERAL) 65270.00210 DINA FANGARY V. CITY OF HERMOSA BEACH, ET AL. 65270.00211 RACHEL MUZATKO V. CITY OF HERMOSA BEACH, ET AL. 65270.00212 CITY OF HERMOSA BEACH V. STEVE E. PULS 65270.00214 THOMAS KUERTEN V. CITY OF HERMOSA BEACH Effective 07/01/21 new Litigation matters at new rates:$285 $260 $170 Pitchess Matters 65270.00300 PITCHESS $254 $218 $170 $254 $218 $170 Effective 07/01/21 new Pitchess matters at new rates:$285 $260 $170 Current active matters remain at current rates: $170 Current active matters remain at current rates: $254 $218 $170 $254 $218 City of Hermosa Beach (65270) Current Rates Proposed Rates eff. 7/1/21 1 Attachment 2 435 Current Active Matters with Current Rates & Proposed Rates effective July 1, 2021 Bi-Annual CPI to begin July, 2023 Arrangement Matter # Matter Name Partner/Of Counsel Associates Paralegals, etc. Partner/Of Counsel Associates Paralegals, etc. City of Hermosa Beach (65270) Current Rates Proposed Rates eff. 7/1/21 Reimbursable from Third Parties Jenkins/300 Langer/250 $170 $350 $275 $170 65270.00400 HERMOSA RTI 65270.00401 PIER & STRAND HOTEL EIR Complex Special Services $254 $218 $170 $350 $275 $170 65270.00500 HUMAN RESOURCES 65270.00501 TELECOMMUNICATIONS 65270.00502 REAL ESTATE 65270.00503 MUNICIPAL FINANCE 65270.00504 PUBLIC WORKS CONSTRUCTION 2 436 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 21-xxxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA ADOPTING THE BUDGET FOR THE FISCAL YEAR 2021–2022 WHEREAS, a budget for the fiscal year 2021–22 has been prepared by the City Manager, and; WHEREAS, said budget incorporates expenditures for operating purposes, capital outlay and capital improvement projects, and; WHEREAS, said final budget will include the appropriations limit and total annual appropriations subject to limitation as required by Section 37200 of the Government Code, and; WHEREAS, the City Council has examined said budget and, after due deliberation and consideration, has made such amendments to the budget as it deems advisable. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA DOES RESOLVE AS FOLLOWS: SECTION 1. That the City Council does hereby approve and adopt the revised budget for the 2021–22 Fiscal Year as presented in the documents entitled “City of Hermosa Beach Budget Summary 2021–22”, and attached as “Exhibit A.” SECTION 2. This Resolution shall take effect immediately. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council meeting at which the same is passed and adopted. PASSED, APPROVED and ADOPTED this 29th day of June 2021. ________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: ________________________________ _______________________________ City Clerk City Attorney Attachment 1 437 General Fund Revenue & Expenditure Summary $42,744,555 Total Expenditures and Transfers Out ($45,554,092) 2,809,537 (b) $0 Budget % $15,992,604 $16,525,157 $532,553 3.3% 2,750,820 2,717,628 ($33,192)(1.2%) Utility User's Tax 2,065,046 2,093,903 $28,857 1.4% 1,836,531 1,928,358 $91,827 5.0% $23,265,046 $620,045 2.7% $6,386,467 $61,945 1.0% 785,512 ($116,581)(12.9%) 1,978,497 1,906,306 ($72,191)(3.6%) 635,452 1,469,888 $834,436 131.3% 126,895 142,192 $15,297 12.1% 5,022,541 6,041,373 $1,018,832 20.3% 93,044 18,511 ($74,533)(80.1%) $16,750,249 $1,667,205 11.1% $40,015,295 $2,287,250 6.1% 2,729,260 ($667,312)(19.6%) $42,744,555 $1,619,938 3.9% General Fund Expenditures Budget (b)% Personal Services $24,155,229 $2,177,020 9.9 % Contract Services- Private 4,647,042 ($189,506)(3.9%) Contract Services- Government 6,664,000 7,354,822 $690,822 10.4 % Capital Improvement Projects 322,395 40,411 ($281,984)(87.5%) Material/Supplies/Other 6,183,280 $474,499 8.3 % Equipment/Furniture 39,190 ($20,551)N/A Total Expenditures $42,419,974 $2,850,300 7.2 % Transfers Out 3,134,118 $1,357,417 76.4 % Total Expenditures and Transfers Out $45,554,092 $4,207,717 10.2 % Budget Increase/(Decrease) Total Revenues and Transfers $41,346,375 Budget Increase/(Decrease) $39,569,674 $21,978,209 4,836,548 Total Revenues $37,728,045 59,741 1,776,701 Use of Money & Property Intergovernmental/State Current Service Charges Projected Surplus/(Deficit) 5,708,781 $41,124,617 Other Revenues Transfers In 3,396,572 Subtotal Other Revenues $15,083,044 Subtotal Major Revenues $22,645,001 Other Revenues by Category Other Taxes $6,324,522 Licenses and Permits 902,093 Fines & Forfeitures Secured Property Tax Preliminary Budget 2021-222020-21 Revised Budget (a) 2021-22 Preliminary Budget General Fund Summary Budget (a) 2020-21 Revised 2021-22 Preliminary Budget Total Revenues and Transfers in Total Changes in Fund Balance Sales & Use Tax Transient Occupancy Tax General Fund Revenues Major Revenues Attachment 3 438 (a) Adjusted Budget includes City Council-approved amendments during the current year as well as reappropriations carried forward from the prior year. (b) Includes the following changes to fund balance: Increased General Plan Maintenance Fees ($75,099) Increased Verizon PEG ($6,911) Increased CASP Fees ($8,500) Increased Contingency Balance ($477,812) Reduced Prop A Fund Exchange for Engineer Salary $131,775 New Prop A Fund Exchange ($369,470) Use 2020-21 CIP Carryforward $40,411 Transfer 2019-20 Unspent Funds $1,751,727 Use /Transfer 2020-21 Midyear Unspent Funds $1,823,416 $2,809,537 439 From:noreply@granicusideas.com To:Eduardo Sarmiento; City Council; Suja Lowenthal; Angela Crespi Subject:New eComment for City Council Meeting (Fiscal Year 2021-22 Budget Workshop & Public Hearing), Duly Posted on June 26, 2021 at 12:37 p.m. by E.S. Date:Tuesday, June 29, 2021 1:16:26 PM SpeakUpNew eComment for City Council Meeting (FiscalYear 2021-22 Budget Workshop & PublicHearing), Duly Posted on June 26, 2021 at 12:37p.m. by E.S. Matt McCool submitted a new eComment. Meeting: City Council Meeting (Fiscal Year 2021-22 Budget Workshop & Public Hearing), Duly Posted on June 26, 2021 at 12:37 p.m. by E.S. Item: a. REPORT 21-0403 ADOPTION OF FISCAL YEAR 2021-22 BUDGET (Finance Director Viki Copeland) eComment: With the newly proposed City Attorney rates, the CIty should put these services out to bid as promised in 2015 by then-candidate Justin Massey. I have no objection to the current services being provided by the City Attorney. In fact, I believe the City should reconsider the City Attorney provide prosecution services. Even though the rates for prosecution services were higher, the City received vastly superior service. https://www.facebook.com/kent.allen.37/videos/10158496293789690 View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 440 1 June 29, 2021 2021-22 Budget Workshop 441 Agenda Opening Comments, City Manager Overview of the Budget, Finance Director Overview of the 2021-22 Budget Revenue Appropriations How the Budget is Balanced Highlights Capital Improvement Plan FEMA Public Assistance Update Councilmembers Questions/Comments 2 442 Opening Comments City Manager 3 443 4 2021-22 Budget Overview 444 General Fund Revenue Overview 5 Top Tax Revenue Sources Amount % Change % of Total Secured Property Tax $16.5m + 3.3%41% Sales Tax $2.7m -1.2%7% Utility Users Tax (UUT)$2.1m 1.4%6% Transient Occupancy Tax (TOT)$1.9m 5.0%5% Top Tax Total $23.2m 59% 445 6 General Fund Revenue Overview-Secured Property Tax Five Year History 446 7 General Fund Revenue Overview-Median Home Sales Price Hermosa Beach Median Home Prices Chart provided by HdL, Coren & Cone, based on data from Los Angeles County Recorder.447 8 General Fund Revenue Overview-Median Home Sales Price Chart provided by HdL, Coren & Cone, based on data from Los Angeles County Recorder.448 9 General Fund Revenue Overview-Sales Tax Five Year History 449 General Fund Revenue Overview-UUT Five Year History 10 $2,147,057 2020-21 450 General Fund Revenue Overview-TOT Five Year History 11 451 General Fund Revenue Overview (Continued) 12 Revenue Sources Amount %Change % of Total Other Taxes $6.5m 1%15% Licenses/Permits $0.8m -12.9%2% Fines/Forfeitures $1.9m -3.7%5% Use/Money and Property $1.5m 131%4% Intergovt/State $0.1m 12%0% Service Charges $6.0m 20%15% Other Revenue $0.01m -80%0% $16.8m 41% Total General Fund Revenue $40m 6.1% 452 General Fund Revenue Assumptions 13 Major Non-tax revenue assumptions include: Licenses and Permits-Decrease of 12.9 percent Building Permits –($131,052) or 19 percent Estimate is based on 2020–21 baseline permits, excluding Skechers Fines and Forfeitures-Decrease of 3.7 percent Court Fines/Parking –($72,191) or 3.7 percent Due to decreased citation issuance Use of Money and Property-Increase by 13.3 percent Community Center Leases, Rentals, and Theatre increase by $214,806 assuming the current lease agreements continue without impact and park reservations, field reservations, outdoor fitness permits, South Park and Community Center rentals, and Theatre reservations return to pre-COVID -19 levels. Special Event Permits increase by $83,600, returning to pre- pandemic levels.453 General Fund Revenue Assumptions 14 Major revenue assumptions (continued) Use of Money and Property (continued) One-time Proposition A fund exchange of $490,000 to fund a new Assistant Engineer Service Charges-Increase by 20.3 percent Parking Meters –$61,765 or 4 percent Lot A –$93,266 or 29.4 percent Based on 75 percent of 2018-19 levels Parking Structure Revenue –$241,246 or 88.3 percent Based on 75 percent of 2018–19 levels Contract Recreation Classes and Other Recreation Programs –$109,000 and 187,000 respectively Assumes pre-pandemic levels One-time Reimbursement of $300,000 –$150,000 each for the solid waste and street sweeping contracts. 454 General Fund Appropriations 15 Expenditures % of Total Full-Time Salaries 35% Part-Time Salaries 2% Retirement 13% Benefits 6% Retiree Heath (OPEB)1% Medicare <1% Salaries and Benefits Subtotal 57% 455 General Fund Appropriations (Continued) 16 Expenditures % Change Full-Time Salaries 8% Part-Time Salaries 35% Retirement 15% Benefits 13% Retiree Health Benefits (OPEB)4% Medicare 11% Salaries and Benefits 10% 456 Personnel Changes Two of the Ten frozen staff positions were restored by City Council during 2020-21: Deputy City Manager (City Manager’s Office)-Position was restored on 10/13/2020 when the Assistant to the City Manager position became vacant and the Assistant to the City Manager position was frozen. Assistant Engineer was restored on 5/25/2021 (Public Works) Other position changes approved by City Council during 2020-21: Change Personnel Analyst to Human Resources Analyst (Human Resources)-no change in compensation 17 457 Personnel Changes The remaining frozen staff positions were reviewed and the following positions are recommended to be restored in 2021-22: Deputy City Clerk (City Clerk’s Office) Geographic Information System (GIS) Analyst (moved from Public Works to City Manager’s Office) Management Analyst (City Manager’s Office) Crew Supervisor (Public Works) Police Captain (Police Department)-Funds from the Police Captain position will be used to promote the two Lieutenants to Captains and add one Officer position, which will be frozen. The two vacant Lieutenant positions will be eliminated, but the overall number of sworn staff will remain the same. Police Service Officer (PSO) Supervisor (Police Department)-The PSO Supervisor position will be filled through internal recruitment and the newly vacant PSO position will be frozen.18 458 Personnel Changes The following positions will remain frozen for 2021-22: Senior Office Assistant 1(City Clerk’s Office) Assistant to the City Manager (City Manager’s Office) Police Officer (Police Department) Police Officer (Police Department)-Newly added Officer position2 Police Service Officer (PSO) (Police Department)-The newly vacant PSO position from filling the restored PSO Supervisor Position. 1 Approved to be filled with temporary staff 2 Currently, there are 29 Police Officers due to an over hire of recruits to fill positions becoming vacant. The additional Police Officer will not be filled until the over hire is eliminated. Police will now have 27 authorized Police Officer positions. 19 459 Personnel Changes Other Position Changes: Planning Manager (Community Development) –The Planning Manager position will be changed to a Senior Planner position and the resulting salary savings will partially cover the conversion of the part-time temporary Office Assistant to full-time permanent. Office Assistant (Community Development) –The 20 hour a week Office Assistant position will be converted to full-time permanent. New Positions Assistant Engineer (Public Works)–New Assistant Engineer position to be funded using Proposition A Fund Exchange proceeds. Pickle ball Court Monitor (Community Resources) –Continue part- time position temporarily added in 2020-21 to enforce public health orders. Position was funded from the FEMA fund in 2020-21. Intern (Public Works)–Fund a second intern position 20 460 Salary and Benefit Assumptions One new full-time permanent position was added (Assistant Engineer) and one was converted from part-time temporary (Office Assistant). Two positions were reclassified Police Lieutenants (2) to Captains (2). Vacant Planning Manager position will be changed to a Senior Planner position. Existing essential ongoing part-time, temporary staff positions are recommended to be filled. Two part-time temporary positions were added (Public Works Intern and Pickle ball Court Monitor) and one was converted to full-time permanent (Office Assistant). 21 461 Salary and Benefit Assumptions Salary increases of 6 percent (Police Officer’s Association and Police Management) and 3 percent for all other labor groups are included for the third year of three year Memorandums of Understanding (MOUs). The only other salary increases included are step increases for employees with less than 5 years service and whose performance meets expectations. Employee benefits (Effective January 1) Estimated 9% increase on health and 4% on dental 22 462 General Fund Appropriations (Continued) 23 Expenditures % of Total Contract Services-Private 11% Contract Services-Government 17% Supplies,Maintenance, Utilities 4% Equipment Purchases <1% Equip Replacement/Building Maintenance/Insurance Charges 11% Building Improvements 0% Capital Improvement (Prior Year Carryforward)<1% 43% Total General Fund Appropriations 100% 463 General Fund Appropriations 24 Expenditures % Change Contract Services Private -4% Capital Improvement Projects (CIP)-87% Government 10% Materials/Supplies/Other 8% Equipment Furniture -34.4% Buildings/Improvements 0% Total Appropriations 7.2% 464 2021–22 General Fund Summary of Budget Balancing Actions 25 Total General Fund Starting Surplus/Deficit ($3,507,454) New Revenue-Prop A Fund Exchange $490,000 Changes to Appropriations Add Supplemental Requests ($248,303) Add Position Requests/Frozen Positions ($765,356) Add Prospective Expenditures ($100,000) Changes in Fund Balance Reserves Increase Contingency to 16% of Operating Expenditures ($132,455) Assign balance of Prop A Exchange Funds not used for Engineer in 2021–22 ($369,470) 2019–20 Unspent Funds $1,751,727 2020–21 Midyear Unspent Funds $1,823,416 Changes to Transfers out Cover Lighting/Landscaping Deficit from RTI Undersea Cable Fund $204,790 Trans fer 2019–20 and Midyear 2020–21 Unspent Funds to Capital Improvement Fund ($1,772,773) Use of Other Funding Sources Move Crossing Guards to Proposition C fund $315,000 Transfer ½ Federal American Rescue Plan Act Funds to General Fund $2,310,878 Balance Projected for 6/30/2022 $0465 2021–22 General Fund How the Budget is Balanced 26 Revenue $40,015,295 Appropriations $42,419,974 Transfers In:Transfers Out: Recurring Transfers $418,382 Storm Water Fund Operations $700,000 American Rescue $2,310,878 Debt Service Oil $661,345 Plan Act Funds Capital Improvement Fund $1,772,773 Current Year Revenue $42,744,555 Current Year Appropriations $45,554,092 Changes to Fund Balance: Funding carried over from 19-20 CIPs ($40,411) Contingencies (16% of Operating Budget)$477,812 2019-20 Unspent Funds ($1,751,727) 2020-21 Midyear Unspent Funds ($1,823,416) Prop A Exchange Funds ($131,775) New Prop A Fund Exchange $369,470 Change in Fund Balance Commitments $90,510 Total Changes to Fund Balance ($2,809,537) Total Appropriations and Changes to Fund Balance $42,744,555466 2021–22 General Fund Summary of Budget Balancing Actions Staff recommends the transfer $2,310,878 from the American Rescue Plan Act (ARPA) Fund to the General Fund. The City will receive federal ARPA funds of $4.6 million.At a high level, American Rescue Plan Act funds have the following eligible uses: COVID -19 or a negative economic impact; Premium pay for eligible workers; Government Services to the extent of the loss of revenue; or Investments in water, sewer, and broadband infrastructure. Since the funds may be used to replace revenue lost since March of 2020, and to restore staffing to pre-pandemic levels, staff recommends using the first half of the ARPA funds to working towards restoring staffing to pre-pandemic levels and providing public safety. The proposed use of $2.3 million in the 2021-22 Budget would free up General Fund revenue and allow for the transfer of prior year unspent funds to the Capital Improvement Fund in the amount of $1,772,773.27 467 2021–22 General Fund Summary of Budget Balancing Actions Staff recommends a transfer $1,772,773 from the General Fund to the Capital Improvement Fund. As a part of the Midyear Budget Review on March 9, 2021, staff recommended assigning the unspent General Funds from 2019-20 of $1,751,688 and the remaining available balance of $1,823,416 from the 2020-21 Budget for use in the 2021-22 Budget process. The recommended transfer of $1,772,773 in unspent funds from prior years is consistent with the City’s Financial Policies and would provide funding of $886,386 for future Capital Improvement Projects, increase the Capital Facilities Reserve by $316,813, and establish a reserve of $569,574 for the remaining Fire Facility payments to the County for the newly renovated fire station. The remaining $1,802,370 from Midyear 2020-21 would be used to cover the deficit in the General Fund. 28 468 2021–22 General Fund Summary of Budget Balancing Actions Sewer Fund A transfer of $3 million was made from the Sewer Fund to balance the 2020–21 Budget. Since the sewer service charge was implemented after the $3 million was put in the sewer fund, there is no requirement to pay the funds back. The sewer service charge is intended to cover the expenses in the sewer fund . 29 469 Budget Highlights Presentation of a Capital Improvement Plan for 2021-22 and Five Year Capital Improvement Program to identify the City’s longer term infrastructure needs. A total of $19.5 million is funded of which $3.2 million is new funding. $1,291,891 for final design and Phase I construction for the new City Yard is appropriated as a part of the 2021-22 Capital Improvement Plan. $1,397,387 is reserved in the Capital Improvement Fund for the remaining construction and project contingency. 30 470 Budget Highlights Payments to L.A. County Fire for fire facility renovation and equipment conversions. $379,716 is budgeted for facility payment. Payments started January 2019 and costs are spread over 5 years. The remaining payments totaling $569,574 are reserved in the Capital Improvement Fund. (Capital Improvement Fund) $43,062 is budgeted for fire equipment conversion payments. Payments started in January 2018 and costs are spread over 5 years. (Fire Protection Fund) $661,345 is transferred from the General Fund for debt service related to the oil settlement (Lease Revenue Bonds). The 2015 Lease Revenue Bonds were refunded in 2020–21, saving approximately $1 million over the life of the bonds.(General Fund/Lease Revenue Bond Fund)31 471 Budget Highlights $30,000 remains from funds set aside in 2017-18 for required radio upgrades as part of the South Bay Regional Public Communication Authority upgrade for dispatching. Project completion is anticipated in 2021-22. (Equipment Replacement Fund) One new undersea cable is anticipated to be operational in 2021- 22. One-time payments of $253,000 will be received in the RTI Fund and $184,000 will be received in the RTI Tidelands Fund for cable 3. Quarterly payments of $40,500 ($162,000 annually) will be received for the first two cables. (RTI Fund) 32 472 Budget Highlights $300,000 is budgeted for Request for Proposal (RFP) development for the solid waste ($150,000) and street sweeping contracts ($150,000). The RFPs will include language that requires the winner proposer to reimburse the City for all costs. The offsetting revenue is included in the 2021–22 Budget as well. (General Fund) Replacement of seven vehicles, five for the Police Department and two for Community Services. (Air Quality Management District (AQMD) Fund and Equipment Replacement Fund) 650 new smart meters will be purchased to complete the replacement of coin parking meters. CIP 108 includes funding for pay -by-app signage.(Equipment Replacement Fund and Capital Improvement Fund)33 473 Budget Highlights Noise consultant services added as part of the General Plan implementation.(Funded from General Plan Maintenance Fees in the General Fund) Disaster shelter supplies and operational supplies are funded (General Fund),along with $192,880 for an ongoing capital improvement project to make the Emergency Operations Center (EOC) more functional. (Capital Improvement Fund) $30,000 is included for a new User Fee Study to ensure that the city is recovering the cost of services provided to the public. (General Fund) Wellness program for Police Department sworn and non-sworn staff. (General Fund) 34 474 Budget Highlights $30,000 for a Lighting/Landscaping Assessment District study to consider creating a new supplemental district. The current fee has not changed since 1996 and requires an annual contribution from the General Fund or other discretionary funds to cover the deficit. (Lighting/Landscaping District Fund) $50,000 for an annual sidewalk grinding contract to prevent trip hazards and increase pedestrian safety. (Gas Tax Fund) Building maintenance: New air conditioning for the server room and Police Department, new lawn bowling green roof, and repair the roof on the Bard Street motor office. (Building Maintenance Reserve funds in the Equipment Replacement Fund) Also included are new furnishings for the Clark Building. (General Fund)35 475 Budget Highlights The following technology upgrades are budgeted: iPads for Code Enforcement and Building Inspectors, Community Development Bluebeam plans software to create and edit PDF pans and specs, Public Works Wi-Fi project hardware and City Hall user core switch stack, Citywide (Equipment Replacement Fund) Seven additional body-worn cameras for incoming staff and to issue to other positions, such as code enforcement officers as needed. (Supplemental Law Enforcement Services Fund ) 36 476 37 Capital Improvement Program 477 Capital Improvement Program 38Total: $19,546,905 478 Capital Improvement Program Street & Highway Improvements-$3,869,438 Bus Stop Improvements Pay -By-App Parking Signage PCH Mobility Improvement Project (On Hold) Hermosa Avenue Green Street Street Improvements-Various Locations Strand Bikeway and Walkway Improvements a 35th Street Annual Street Improvements (CIP 190) Annual Street Improvements (New) (CIP 191) Annual Striping Improvements (New)39 479 Capital Improvement Program Street & Highway Improvements-Continued Pedestrian Crossing Safety Improvements (New) Annual Striping Improvements (NEW) City Sidewalk Improvements (NEW) Park Improvements-$50,000 Park Planting Improvements (NEW) 40 480 Capital Improvement Program Sewer/Storm Drain Improvements-$5,609,740 Storm Drain Improvements-Various Locations Storm Drain Pipe Screens Annual Sewer Improvements (CIP 421) Annual Storm Drain Improvements (CIP 422) Annual Sewer Improvements (CIP 423) Annual Storm Drain Improvements (CIP 424) 41 481 Capital Improvement Program Public Buildings and Ground Improvements-$9,079,233 Prospect Ave Curb Ramps South Park Slope and Irrigation Repairs (NEW) City Wide ADA Improvements (New) Downtown Lighting Improvements Downtown Strategic Plan Improvements New Corporate Yard Facilities Municipal Pier Structural Assessment and Repairs Municipal Pier Electrical Repairs City Park Restrooms and Renovation Parking Lot D Improvements 42 482 Capital Improvement Program Public Buildings and Ground Improvements-Continued Emergency Operations Center Renovations Clark Building Renovations 14th Street Beach Restroom Construction Parking Lot A Improvements Police Station Improvements ADA Improvements Parking Structure (Lot C) Improvements (NEW) Reconciliation-$211,068 PCH Traffic Improvements Tree Well Grates 43 483 Capital Improvement Program Studies-$727,426 Stakeholder-Public Works: Hermosa Ave Greenwich Village Street Realignment Assessment Sea Level Rise Risk Assessment Greenbelt Accessible Path Assessment City Facilities Condition and Needs Assessment (NEW) Stakeholder-Community Resources: Citywide Park Master Plan Library Community Project Phase II Assessment 44 484 FEMA Public Assistance Grant The City has incurred just under $782,000 of COVID-19 related expenditures incurred to date. The rules for allowable expenses have changed three times during the course of the pandemic, with different reimbursement policies for each of the three periods. Staff is actively working with FEMA and Cal OES to maximize the reimbursement of expenses. The City has funds set aside from using the CARES Act funding for cover public safety costs at the beginning of the pandemic. Should COVID-19 related expenditures be denied reimbursement by FEMA, the City has approximately $242,000 available to cover the unbudgeted expenses. 45 485 City Council Questions/Comments 46 486 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0395 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 PUBLIC HEARING TO REVIEW DELINQUENT SOLID WASTE COLLECTION (REFUSE) CHARGES FOR CONSIDERATION OF PLACING SAID CHARGES ON THE PROPERTY TAX ROLLS AS A SPECIAL ASSESSMENT. THE ASSESSMENT WOULD AFFECT ONLY THOSE PROPERTIES WITH REFUSE BILLS DELINQUENT AS OF MARCH 31, 2021. (Environmental Programs Manager Douglas Krauss) Recommended Action: Staff recommends City Council: 1.Receive testimony from affected property owners regarding delinquent refuse bills; and 2.Adopt the attached Resolution authorizing and requesting the County Assessor to place delinquent refuse charges for Athens Services,which remain 10 days following the hearing,as a special assessment for collection as part of the County tax collection process. Executive Summary: Per Hermosa Beach Municipal Code Section 8.12.36,the City shall assess a fee for the collection of garbage,rubbish,or other refuse.In the event that the owner of record fails to pay the fees for such collection,the City may place a special assessment on the property.Such special assessment is processed through the Los Angeles County Assessor in cooperation with the City’s franchised waste hauler, Athens Services. Background: On March 26,2013,City Council approved an exclusive Integrated Solid Waste Collection Franchise Agreement with Athens Services for a term of eight years beginning July 1,2013 and ending June 30,2021.On March 31,2021,the City exercised its option to extend the agreement for 24 months to June 30,2023.In April 2021,Athens provided the City with a list of delinquent accounts for the previous year, which may be subject to a special assessment on the property owners’ tax bill. Pursuant to Section 8.12.36(A)(5)of the Municipal Code,the City Manager shall direct a notice to the property owner where unpaid refuse collection charges are pending.The notice shall indicate the time and place for a hearing before an Administrative Appeals Board to review all unpaid charges and City of Hermosa Beach Printed on 7/9/2021Page 1 of 3 powered by Legistar™487 Staff Report REPORT 21-0395 time and place for a hearing before an Administrative Appeals Board to review all unpaid charges and make a recommendation to City Council.The Administrative Appeals Board hearing was held via teleconference on June 23,2021 and a recommendation to review all unpaid charges is now directed to the City Council. Past Council Actions Meeting Date Description March 26, 2013 (Regular Meeting)Approved an exclusive Integrated Solid Waste Collection Franchise Agreement with Athens Services Discussion: In April 2021,Athens Services provided a list of properties with unpaid refuse collection fees as of March 31,2021 (Attachment 1).In accordance with procedures outlined in the Hermosa Beach Municipal Code,notices were sent to affected property owners advising them of the opportunity to appear before the Administrative Appeals Board to dispute unpaid charges at a teleconference held on June 23, 2021 (Attachment 2). The attached list of properties was updated following the hearing and the Administrative Appeals Board now recommends that the properties remaining on the list have the delinquent charges added to their property tax bills as a special assessment.Notices were sent to the property owners advising them of the opportunity to appear before the City Council at the Public Hearing scheduled for July 13, 2021 to appeal the matter prior to the City proceeding with the special assessment. The attached Resolution (Attachment 3)requests the County Assessor to post delinquent refuse charges on the property tax bill as a special assessment.Exhibit "A"of the attached resolution will be modified by Athens to delete any delinquent refuse charges which are paid within ten days following the hearing as provided for by Section 8.12.360(A)(6) of the Municipal Code. To compensate for the administrative costs incurred in the collection of delinquent refuse bills via a special assessment,each delinquent refuse bill would be increased by $14.00 to compensate the City of Hermosa Beach per the adopted Master Fee Schedule.Each delinquent refuse bill would also be increased by an amount not to exceed the actual cost incurred by the County of Los Angeles,and charged to the City of Hermosa Beach,for placing the delinquent refuse bills on the property tax roll via a special assessment. Fiscal Impact: The fiscal impact to the City associated with the recommended action includes a $14.00 charge per delinquent account to defray staff administrative costs. City of Hermosa Beach Printed on 7/9/2021Page 2 of 3 powered by Legistar™488 Staff Report REPORT 21-0395 Attachments: 1.List of Properties 2.Notice of Hearing 3.Resolution 21-7284 Respectfully Submitted by: Doug Krauss, Environmental Programs Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 3 of 3 powered by Legistar™489 ACCOUNT NAME SERVICE ADDR SERVICE CITY SER VICE STA TE SERVICE ZIP PARCEL NO BILLING NAME BILLING ADDR BILLING CITY BILLING STATE BILLING ZIP TOTAL A/R CURRENT 30 DAYS 60 DAYS 90+ DAYS PAST DUE LIEN AMT City Fee County Fee to City* Total Lien Balance KATY METOYER 619 10TH ST HERMOSA BEACH CA 90254 4187026050 KATY METOYER 200 PIER AVE STE#224 HERMOSA BEACH CA 90254 148.74 0.00 0.00 90.06 58.68 58.68 14.00 1.23 73.91 JOSHUA WILSON 900 15TH ST HERMOSA BEACH CA 90254 4185008024 JOSHUA WILSON 900 15TH ST HERMOSA BEACH CA 90254 160.72 25.00 0.00 83.24 52.48 52.48 14.00 1.23 67.71 BRUCK LEE 1315 CYPRESS AVE HERMOSA BEACH CA 90254 4187019078 RONNIE FRANKOWSKI 800 N PARK VIEW DR EL SEGUNDO CA 90254 108.83 0.00 0.00 56.85 51.98 51.98 14.00 1.23 67.21 BRIAN GAGNE 506 25TH ST HERMOSA BEACH CA 90254 4182025024 BRIAN GAGNE 506 25TH ST HERMOSA BEACH CA 90254 148.74 0.00 0.00 90.06 58.68 58.68 14.00 1.23 73.91 EMILY BOURASSA 1882 VALLEY PARK AVE HERMOSA BEACH CA 90254 4183021010 EMILY BOURASSA 1882 VALLEY PARK AVE HERMOSA BEACH CA 90254 232.16 79.54 0.00 0.00 152.62 152.62 14.00 1.23 167.85 MATTHEW GREENE 2310 PARK AVE HERMOSA BEACH CA 90254 4182021015 MATTHEW GREENE 2629 MANHATTAN AVE 185 HERMOSA BEACH CA 90254 269.21 69.80 0.00 0.00 199.41 199.41 14.00 1.23 214.64 JULIE RAYMOND 1130 1ST PL HERMOSA BEACH CA 90254 4186028006 JULIE RAYMOND 1130 1ST PL HERMOSA BEACH CA 90254 83.34 0.00 0.00 41.67 41.67 41.67 14.00 1.23 56.90 TODD COLLINS 1231 1ST ST HERMOSA BEACH CA 90254 4186028038 TODD COLLINS 1231 1ST ST HERMOSA BEACH CA 90254 303.39 70.88 0.00 0.00 232.51 232.51 14.00 1.23 247.74 KRIS RONE 504 25TH ST HERMOSA BEACH CA 92542 4182025023 KRIS RONE 504 25TH ST HERMOSA BEACH CA 92542 153.07 0.00 0.00 48.01 105.06 105.06 14.00 1.23 120.29 CHAD DOWNEY 655 9TH ST HERMOSA BEACH CA 90254 4187027042 CHAD DOWNEY 655 9TH ST HERMOSA BEACH CA 90254 654.30 83.54 0.00 0.00 570.76 570.76 14.00 1.23 585.99 SANDRA PAPADIMITRIOU 959 2ND ST HERMOSA BEACH CA 90254 4186025042 SANDRA PAPADIMITRIOU 959 2ND ST HERMOSA BEACH CA 90254 155.04 0.00 0.00 51.68 103.36 103.36 14.00 1.23 118.59 MICHAEL & CONRAD 1251 7TH PL HERMOSA BEACH CA 90254 4160029027 MICHAEL CONRAD 1251 7TH PL HERMOSA BEACH CA 90254 146.02 0.00 0.00 37.88 108.14 108.14 14.00 1.23 123.37 ALLYSON STRAMOTAS 1836 HILLCREST DR HERMOSA BEACH CA 90254 4184008015 ALLYSON STRAMOTAS 1836 HILLCREST DR HERMOSA BEACH CA 90254 125.01 0.00 0.00 45.46 79.55 79.55 14.00 1.23 94.78 BENJAMIN DUNBAR 634 LOMA DR HERMOSA BEACH CA 90254 4187030017 BENJAMIN DUNBAR 634 LOMA DR HERMOSA BEACH CA 90254 133.89 0.00 0.00 75.77 58.12 58.12 14.00 1.23 73.35 ALEXIS VITALE 1209 20TH PL HERMOSA BEACH CA 90254 4184005031 ALEXIS VITALE 1209 20TH PL HERMOSA BEACH CA 90254 292.28 0.00 0.00 78.00 214.28 214.28 14.00 1.23 229.51 LAURA ANN DOLL 838 15TH ST HERMOSA BEACH CA 90254 4185008041 LAURA ANN DOLL 838 15TH ST HERMOSA BEACH CA 90254 233.75 0.00 0.00 52.96 180.79 180.79 14.00 1.23 196.02 MARY ALISON MCMAHON JOHNSON 903 14TH ST HERMOSA BEACH CA 90254 4185008010 MARY ALISON MCMAHON JOHNSON 903 14TH ST HERMOSA BEACH CA 90254 79.55 0.00 0.00 41.67 37.88 37.88 14.00 1.23 53.11 BRIAN PERRY 941 3RD ST HERMOSA BEACH CA 90254 4186019019 BRIAN PERRY 515 LOMITA ST EL SEGUNDO CA 90245 510.80 0.00 0.00 105.93 404.87 404.87 14.00 1.23 420.10 SIM HIXSON 934 MANHATTAN AVE HERMOSA BEACH CA 90254 4187008036 SIM HIXSON 1473 WINTERWARM DR FALLBROOK CA 92028 386.42 0.00 0.00 136.38 250.04 250.04 14.00 1.23 265.27 DAVID LEWIS WHITE III 2212 HERMOSA AVE HERMOSA BEACH CA 90254 4182010003 DAVID LEWIS WHITE III 1740 RUHLAND AVE MANHATTAN BEACH CA 90266 255.38 0.00 0.00 52.96 202.42 202.42 14.00 1.23 217.65 DAYLE & BEVERLY MCCLENDON 940 8TH PL HERMOSA BEACH CA 90254 4186009026 DAYLE & BEVERLY MCCLENDON 940 8TH PL HERMOSA BEACH CA 90254 207.59 0.00 0.00 71.58 136.01 136.01 14.00 1.23 151.24 DIANDELL INC 810 MANHATTAN AVE HERMOSA BEACH CA 90254 4187008025 DIANDELL INC 810 MANHATTAN AVE HERMOSA BEACH CA 90254 125.01 0.00 0.00 45.46 79.55 79.55 14.00 1.23 94.78 DONALD & DOROTHY BOYD 726 HERMOSA AVE HERMOSA BEACH CA 90254 4187021046 DONALD & DOROTHY BOYD PO BOX 3407 REDONDO BEACH CA 90277 79.26 0.00 0.00 28.82 50.44 50.44 14.00 1.23 65.67 ELLEN ANDERSON 119 30TH ST HERMOSA BEACH CA 90254 4181029007 ELLEN B ANDERSON 119 30TH ST HERMOSA BEACH CA 90254 110.49 0.00 0.00 31.23 79.26 79.26 14.00 1.23 94.49 GAYLE GALE 1108 1ST PL HERMOSA BEACH CA 90254 4186028002 GAYLE GALE 1108 1ST PL HERMOSA BEACH CA 90254 128.22 0.00 0.00 58.49 69.73 69.73 14.00 1.23 84.96 JAMES RYAN 833 CYPRESS AVE HERMOSA BEACH CA 90254 4187014019 JAMES RYAN 833 CYPRESS AVE HERMOSA BEACH CA 90254 255.38 0.00 0.00 52.96 202.42 202.42 14.00 1.23 217.65 JOHN DAMATO 207 MANHATTAN AVE HERMOSA BEACH CA 90254 4188008050 JOHN DAMATO 207 MANHATTAN AVE HERMOSA BEACH CA 90254 226.26 0.00 0.00 52.96 173.30 173.30 14.00 1.23 188.53 JUDITH SOULAKIS 1070 8TH PL HERMOSA BEACH CA 90254 4186010010 JUDITH SOULAKIS 1070 8TH PL HERMOSA BEACH CA 90254 365.65 0.00 0.00 75.79 289.86 289.86 14.00 1.23 305.09 KARIE SCHRODER 1209 1ST ST HERMOSA BEACH CA 90254 4186028021 KARIE SCHRODER 1209 1ST ST HERMOSA BEACH CA 90254 161.75 0.00 0.00 33.58 128.17 128.17 14.00 1.23 143.40 KELLY ZINSER 531 PINE ST HERMOSA BEACH CA 90254 4186016014 KELLY ZINSER 18881 VON KARMAN AVE STE 1175 IRVINE CA 92612 340.57 0.00 0.00 165.03 175.54 175.54 14.00 1.23 190.77 LARRY HIGGINS 2705 MORNINGSIDE DR HERMOSA BEACH CA 90254 4181023039 LARRY HIGGINS 2705 MORNINGSIDE DR HERMOSA BEACH CA 90254 181.51 0.00 0.00 49.27 132.24 132.24 14.00 1.23 147.47 LOIS BRYANT 1531 SILVER ST HERMOSA BEACH CA 90254 4185020017 LOIS BRYANT 1531 SILVER ST HERMOSA BEACH CA 90254 219.76 0.00 0.00 51.44 168.32 168.32 14.00 1.23 183.55 MARY FUNK 655 8TH PL HERMOSA BEACH CA 90254 4187028020 MARY FUNK 655 8TH PL HERMOSA BEACH CA 90254 181.96 0.00 0.00 103.32 78.64 78.64 14.00 1.23 93.87 MICHAEL ROSSI 644 24TH PL HERMOSA BEACH CA 90254 4184019007 MICHAEL ROSSI 644 24TH PL HERMOSA BEACH CA 90254 179.40 0.00 0.00 106.12 73.28 73.28 14.00 1.23 88.51 MORRI J & KAREN MOHR 262 27TH ST HERMOSA BEACH CA 90254 4181024023 MORRI J & KAREN MOHR 262 27TH ST HERMOSA BEACH CA 90254 510.80 0.00 0.00 105.93 404.87 404.87 14.00 1.23 420.10 PAUL HERRIOTT 2410 PALM DR HERMOSA BEACH CA 90254 4182011022 PAUL HERRIOTT 123 24TH ST HERMOSA BEACH CA 90254 500.05 0.00 0.00 181.84 318.21 318.21 14.00 1.23 333.44 PAUL HERRIOTT 2452 SILVERSTRAND AVE HERMOSA BEACH CA 90254 4182015019 PAUL HERRIOTT 123 24TH ST HERMOSA BEACH CA 90254 348.54 0.00 0.00 98.50 250.04 250.04 14.00 1.23 265.27 PAUL MARCHINI 136 28TH ST HERMOSA BEACH CA 90254 4181026015 PAUL MARCHINI PO BOX 3837 MANHATTAN BEACH CA 90266 484.31 0.00 0.00 100.73 383.58 383.58 14.00 1.23 398.81 ROBERT GOEPP 1003 PROSPECT AVE HERMOSA BEACH CA 90254 4186001027 ROBERT GOEPP 1015 PROSPECT AVE A HERMOSA BEACH CA 90254 1,212.79 287.61 287.61 287.61 349.96 349.96 14.00 1.23 365.19 ROBERT GOEPP 1016 PROSPECT AVE HERMOSA BEACH CA 90254 4161027040 ROBERT GOEPP 1016 PROSPECT AVE HERMOSA BEACH CA 90254 255.38 0.00 0.00 52.96 202.42 202.42 14.00 1.23 217.65 ROBERT MARSHALL 918 15TH ST HERMOSA BEACH CA 90254 4185008035 918-924 15TH ST 918 15TH ST HERMOSA BEACH CA 90254 160.07 0.00 0.00 83.43 76.64 76.64 14.00 1.23 91.87 ROBERT SPIETH 142 MANHATTAN AVE HERMOSA BEACH CA 90254 4188013096 ROBERT SPIETH 142 MANHATTAN AVE HERMOSA BEACH OH 90254 243.51 0.00 0.00 67.63 175.88 175.88 14.00 1.23 191.11 STEPHEN & BARBARA WERTHEIMER 528 LOMA DR HERMOSA BEACH CA 90254 4188018018 STEPHEN & BARBARA WERTHEIMER PO BOX 7000 REDONDO BEACH CA 90277 130.90 0.00 0.00 80.78 50.12 50.12 14.00 1.23 65.35 VINCE BRUCCOLIERI 650 9TH ST HERMOSA BEACH CA 90254 4187028040 VINCE BRUCCOLIERI 650 9TH ST HERMOSA BEACH CA 90254 91.97 0.00 0.00 42.80 49.17 49.17 14.00 1.23 64.40 WILLIAM HEDRICK 1306 CORONA ST HERMOSA BEACH CA 90254 4185016003 WILLIAM HEDRICK 161 MONTEREY BLVD HERMOSA BEACH CA 90254 183.54 0.00 0.00 78.48 105.06 105.06 14.00 1.23 120.29 YORGOS STYLIANOS 29 5TH ST HERMOSA BEACH CA 90254 4188004021 YORGOS STYLIANOS 29 5TH ST HERMOSA BEACH CA 90254 255.38 0.00 0.00 52.96 202.42 202.42 14.00 1.23 217.65 119 24TH ST 123 24TH ST 2405 MANHATTAN AVE HERMOSA BEACH CA 90254 4182011023 PAUL HERRIOTT 123 24TH ST HERMOSA BEACH CA 90254 697.04 0.00 0.00 196.99 500.05 500.05 14.00 1.23 515.28 JOEL LUZ 840 7TH ST HERMOSA BEACH CA 90254 4186013006 JOEL LUZ 840 7TH ST APT D HERMOSA BEACH CA 90254 362.53 0.00 0.00 119.08 243.45 243.45 14.00 1.23 258.68 RUBEN COVARRUBIAS 683 5TH ST HERMOSA BEACH CA 90254 4188030012 RUBEN COVARRUBIAS PO BOX 1926 REDONDO BEACH CA 90278 341.64 0.00 0.00 70.81 270.83 270.83 14.00 1.23 286.06 BRIAN ANTLEY 930 15TH ST HERMOSA BEACH CA 90254 4185008038 BRIAN ANTLEY 930 15TH ST HERMOSA BEACH CA 90254 174.25 0.00 0.00 49.24 125.01 125.01 14.00 1.23 140.24 TOM BLISS 104 HERMOSA AVE HERMOSA BEACH CA 90254 4188012036 TOM BLISS 2854 ARBELLA LN THOUSAND OAKS CA 91362 152.04 0.00 0.00 74.08 77.96 77.96 14.00 1.23 93.19 ATHENS SERVICES Tax Lien Delinquent Accounts List Past Due Balances as of March 31, 2021 - Last Updated June 23, 2021 * Based on addition of County fee of $50 divided by the number of accounts (51) plus $.25 per parcel fee 490 Easy Reader Run Date: June 10, 2021 DISPLAY Acct: 7010-2110 NOTICE OF HEARING Delinquent Solid Waste Collection (Refuse) Bills NOTICE IS HEREBY GIVEN that the Administrative Appeals Board of the City of Hermosa Beach will hold a hearing on June 23, 2021 to review delinquent solid waste collection (refuse) bills for the purpose of recommending to City Council that said delinquent charges be placed on the property tax bill as a special assessment. The assessment would affect only those properties with solid waste collection bills delinquent as of March 31, 2021. SAID HEARING shall be at 6:00pm via teleconference. Please contact Douglas Krauss at 310-750-3603 or dkrauss@hermosabeach.gov for details on accessing the teleconference and more information on this hearing. ANY AND ALL PERSONS interested in the above matter are invited to appear at the time and place stated above or to submit their written comments to the City Manager's Office at 1315 Valley Drive, Hermosa Beach, CA 90254 no later than the time stated. For further information, please contact the City Manager's Office at (310) 750-3603. EDUARDO SARMIENTO City Clerk 491 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 WHEREAS, Section 38790.1 of the California Government Code authorizes cities to collect delinquent refuse bills via a special assessment to be collected with county taxes; and, WHEREAS, the City Council adopted Ordinance No. 86-840 which provides for collection of delinquent refuse bills in accordance with California Government Code Section 38790.1; and, WHEREAS, in accordance with Ordinance No. 86-840, property owners have ten days from the date of the hearing to pay the delinquent refuse bill to avoid the special assessment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Each delinquent refuse bill shall be increased by an amount not to exceed the actual costs incurred by the County of Los Angeles, and charged to the City of Hermosa Beach for placing the delinquent refuse bills on the property tax roll via a special assessment. Section 2. Each delinquent refuse bill shall be increased by fourteen dollars ($14.00) to compensate the City of Hermosa Beach for the administrative costs incurred by collecting delinquent refuse bills via a special assessment. Section 3. The list of properties and the amount to be collected, attached as Exhibit "A,” shall be forwarded to the county assessor for posting on the tax bill as a special assessment. Exhibit "A" may be modified by the City Manager to delete those parcels where delinquent refuse charges are paid within ten (10) days following the City Council hearing. RESOLUTION NO. 21-7284 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH AUTHORIZING AND DIRECTING THE COUNTY ASSESSOR TO INCLUDE DELINQUENT REFUSE BILLS FROM ARAKELIAN ENTERPRISES (ATHENS) TO THEIR EXISTING FUND NUMBER 168.87 (HERMOSA REFUSE-2) AS A SPECIAL ASSESSMENT TO BE COLLECTED AT THE SAME TIME AND IN THE SAME MANNER AS COUNTY TAXES. 492 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 PASSED, APPROVED and ADOPTED this 13th day of July, 2021. ____________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ City Clerk City Attorney 493 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0366 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 PUBLIC HEARING-HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT FISCAL YEAR 2021-2022 (Interim Public Works Director Angela Crespi) Recommended Action: Staff recommends City Council: 1.Conduct a Public Hearing in connection with the levy of assessments for Hermosa Beach Landscaping and Street Lighting District 2021-2022; and 2.Adopt the attached Resolution confirming the diagram and assessment for Hermosa Beach Landscaping and Street Lighting District 2021-2022 and levying an assessment for the Fiscal Year beginning July 1, 2021and ending June 30, 2022. Executive Summary: The Hermosa Beach Landscaping and Street Lighting District partially funds the maintenance and operation of the citywide street lighting program and landscaping within street medians and parkways.The Landscaping and Street Lighting District must be renewed annually by following a three-step process.Staff recommends City Council hold a Public Hearing to complete the process for Fiscal Year 2021-2022. Background: The Hermosa Beach Landscaping and Street Lighting District (District)was created in Fiscal Year 1989-1990,according to the Landscaping and Lighting Act of 1972 and pursuant to Street and Highway Code Sections 22500-22679.The District assessment provides funding to maintain and operate streetlights,traffic signals,and landscaping located within parkways and medians citywide. The assessment rate is set at $41.45 per dwelling unit and has not changed since the passage of Proposition 218 in 1996. The District must be renewed annually by following a three-step process.On April 13,2021,the City Council adopted Resolution No.21-7278 authorizing the Director of Public Works to prepare an Engineer’s Report for the Landscaping and Street Lighting District.The Engineer’s Report (Attachment 1)contains the estimated cost of maintaining the District,the list of parcels within the District,and the method of apportionment of the assessment.On June 8,2021,Council adopted City of Hermosa Beach Printed on 7/9/2021Page 1 of 4 powered by Legistar™494 Staff Report REPORT 21-0366 District,and the method of apportionment of the assessment.On June 8,2021,Council adopted Resolution No.21-7288 approving the Engineer’s Report and Resolution No.21-7289 declaring the City’s intention to order certain improvements,to levy and collect assessments,and to set July 13, 2021 at 6:30 p.m.as the date and time for a Public Hearing.Staff recommends City Council complete the final step,consisting of holding a Public Hearing to accept public input on the matter of the proposed assessment.The Notice of the Public Hearing was published in the Easy Reader on June 17, 2021. Past Council Actions Meeting Date Description April 1 3 , 202 1 City Council adopted Resolution 2 1 -7278 authorizing the preparation of a n Engineer’s Report for the Landscaping and Street Lighting District June 8, 2021 City Council adopted Resolution 21 -7288 approving the Engineer’s Report and Resolution 21 -7289 declaring the City’s intention to order certain improvements, to levy and collect assessments, and to set July 13, 2021 as the date for a P ublic H earing Analysis: The Hermosa Beach Landscaping and Street Lighting District partially funds the maintenance and operation of the citywide street lighting program and landscaping within street medians and parkways.Based on the advice of the City Attorney,the City is in compliance with Proposition 218 and can continue to levy assessments without balloting requirements so long as the assessments are not increased.The assessment rate per dwelling unit has not increased since the passage of Proposition 218 in 1996 and will continue at the rate of $41.45 per dwelling unit in Fiscal Year 2021- 2022. The total assessment anticipated to be collected for Fiscal Year 2021-2022 is $454,285.An additional $229,790 is needed to subsidize the Landscaping and Street Lighting District Fund to maintain the District for the upcoming fiscal year.The difference between what is collected through the assessment,and what is needed to operate the District next fiscal year,would be subsidized by the RTI Undersea Cable Fund instead of the General Fund. An additional $25,000 is included in the FY 2021-2022 Preliminary Budget to study the District rates and to consider creating a new supplemental district.The study will seek to address the annual operating deficit,so that no further subsidies from the General Fund or other discretionary funds would be required.Any proposed rate increase resulting from the study would be processed in compliance with Proposition 218. City of Hermosa Beach Printed on 7/9/2021Page 2 of 4 powered by Legistar™495 Staff Report REPORT 21-0366 Staff recommends City Council hold the Public Hearing and,if approved,levy an assessment for the Fiscal Year beginning July 1, 2021 and ending June 30, 2022. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Mobility Element Goal 2.A public realm that is safe,comfortable,and convenient for travel via foot,bicycle,public transit,and automobile and creates vibrant,people oriented public spaces that encourage active living. Policies: ·2.1 Prioritize public right-of-ways.Prioritize improvements of public right-of-ways that provide heightened levels of safe,comfortable and attractive public spaces for all non-motorized travelers while balancing the needs of efficient vehicular circulation. ·2.4 Sustainable landscape.Use consistent and sustainable landscape and streetscape designs that reflect the City’s community identity;showcase local assets and the community’s unique and vibrant culture. Parks + Open Space Element Goal 10. Abundant landscaping, trees, and green space provided throughout the community. Policies: ·10.3 Green space co-benefits.Recognize the many positive qualities provided by landscaping,trees,and green space including reduced heat gain,controlled stormwater runoff,absorbed noise,reduced soil erosion,improved aesthetic character,and absorption of air pollution. Infrastructure Element Goal 1. Infrastructure systems are functional, safe, and well maintained. Policies: ·1.1 Infrastructure systems plan.Establish and adopt an integrated,holistic systems approach to guide infrastructure development, improvement, maintenance, and resilience. ·1.4 Fair share assessments.Require new development and redevelopment projects to pay their fair share of the cost of infrastructure improvements needed to serve the project and ensure that needed infrastructure is available prior to or at the time of project completion. Fiscal Impact: The District assessment for fiscal year 2021-2022 is $454,285,leaving a deficit of $229,790.The Preliminary Budget proposes a transfer of $229,790 from the RTI Undersea Cable Fund to cover the City of Hermosa Beach Printed on 7/9/2021Page 3 of 4 powered by Legistar™496 Staff Report REPORT 21-0366 Preliminary Budget proposes a transfer of $229,790 from the RTI Undersea Cable Fund to cover the deficit and to fully fund the Hermosa Beach Landscaping and Street Lighting District 2021-2022. Attachments: 1. Engineer’s Report 2. Draft Resolution Respectfully Submitted by: Andrew Nguyen, Assistant Engineer Concur: Angela Crespi, Interim Public Works Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 4 of 4 powered by Legistar™497 ENGINEER'S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2021-2022 Prepared By: Andrew Nguyen Assistant Engineer Lucho Rodriguez, P.E. Deputy City Engineer May 27, 2021 498 ENGINEER'S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2021-2022 TABLE OF CONTENTS Certificate .................................................................................................. 1 Report ........................................................................................................ 2 Part A - Plans and Specifications ................................................... 4 Part B - Estimate of Cost ................................................................ 5 Part C - Assessment Roll ............................................................... 6 Part D - Method of Apportionment of Assessment .......................... 7 Part E - Property Owner List ........................................................... 9 Part F - Assessment District Boundary ........................................... 10 499 500 2 FISCAL YEAR 2021-2022 CITY OF HERMOSA BEACH ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972, SECTION 22500 THROUGH 22679, OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Initiation adopted by the Council of the City of Hermosa Beach, State of California, in connection with the proceedings for: HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2021-2022 Hereinafter referred to as the "Assessment District" or "District", Lucho Rodriguez, Deputy City Engineer, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of six (6) parts as follows: PART A Plans and specifications for the improvements showing and describing the general nature, location and extent of the improvements. PART B An estimate of the cost of the proposed improvements for FY 2021-2022, including incidental costs and expenses in connection therewith. PART C An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D The method of apportionment of assessments, indicating the proposed assessment of the total amount of the costs and expenses of the improvements upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. 501 3 PART E A list of the names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. PART F The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. 502 4 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of Hermosa Beach, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2021-2022 The proposed improvements for FY 2021-2022 may be generally described as the continued maintenance and operation of streets and sidewalks within the District, including the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities that are located in and along such streets and sidewalks, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Street Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees and appurtenant facilities, including irrigation systems, hardscapes and fixtures in public street and sidewalk rights-of-way, including parkways and medians, within the boundaries of the Assessment District. Street Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide street lighting and traffic signals in public street and sidewalk rights-of-way, including parkways and medians, within the boundaries of the Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the lighting facilities, or for the lighting or operation of the landscaping or appurtenant facilities. The plans and specifications for the improvements, showing and describing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference. 503 5 PART B ESTIMATE OF COSTS LANDSCAPING AND STREET LIGHTING DISTRICT Proposed Budget - Fiscal Year 2021-2022 The estimated cost of the operation, servicing and maintenance of the street and sidewalk improvements for fiscal year 2021-2022, as described in Part A, are summarized herein and described below. Lighting and Landscaping Maintenance and Servicing •Median & Pkwy Landscaping Maintenance and Servicing •Lighting Maintenance and Servicing •Tree Trimming $536,140 Administration Costs $11,054 Insurance $152,480 L.A. County Tax Collection Costs $2,000 Equipment Replacement $52,712 Proposed Capital Improvements $0 Expenditures Subtotal: $754,386 Appropriation from Fund balance $70,120 Amount transferred from RTI Fund $229,790 Miscellaneous Revenues $191 Total Assessment: $454,285 Fund Balance 6/30/22 $0 Total amount of $291,002 was transferred from the General Fund in FY 20-21. An additional amount of $229,790 will be transferred from the RTI Fund to maintain the District for FY 21-22. The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Note: Total cost of the operation, servicing and maintenance of the Landscaping and Street Lighting District 2021-2022 is estimated to be $754,386. 504 6 PART C ASSESSMENT ROLL The total proposed assessment for Fiscal Year 2021-2022 and the amount of the total proposed assessment apportioned to each lot or parcel within the District, as shown on the latest assessment roll at the Los Angeles County Assessor's Office, are contained in the Assessment Roll on file in the office of the City Clerk of the City of Hermosa Beach, which is incorporated herein by reference. The description of each lot or parcel is part of the Los Angeles County assessment roll and this roll is, by reference, made part of this Report. 505 7 PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2, of Division 15, of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include operation, maintenance and servicing of street lights, traffic signals and landscaping. The 1972 Act requires that maintenance assessments be levied according to benefit rather than according to assessed value. Section 22573 provides that: “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The Act permits the designation of zones of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements" (Sec. 22574) Thus, the 1972 Act requires the levy of a true "benefit assessment" rather than a "special tax." Exempted from the assessment would be the areas of all publicly owned property in use in the performance of a public function. Railroad and utility rights-of-way are also exempt from assessment. BENEFIT ANALYSIS • Street Lighting and Traffic Signals - The proper functioning of street lighting and traffic signals is imperative for the welfare and safety of the public and property throughout the City. Proper operation, maintenance and servicing of the street lighting system benefits properties within the District by providing proper illumination for ingress and egress and safe traveling at night. Properties within the District also benefit from the proper functioning of the District's traffic signal system. Proper operation of the streetlight and traffic signal systems is imperative to public convenience, orderly traffic flow, enhanced congestion management and safety. Improved security, fuel conservation, protection of property from crime and vandalism, and reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting benefits are directly related to public safety and property protection and therefore increase property values. • Median and Parkway Landscaping and Tree Trimming - Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property value. The City maintains trees and miscellaneous shrubbery and landscaping throughout the City. The trees, shrubbery and landscaping are located within the public street and sidewalk rights-of- way, including parkways and medians. These trees, shrubbery and landscaping provide an 506 8 aesthetically pleasing environment, shade, beautification, and, according to some authorities, air purification and sound attenuation. These positive attributes increase the value of all properties throughout the City. Therefore, all property within the District receive an overall specific and direct benefit from the maintenance and servicing of the street median and parkway landscaping and street tree trimming programs. Special benefits which are received by all parcels in the City are considered to be City-wide Benefits, and the associated costs of these special benefits are spread equally, based on Equivalent Dwelling Units, to all parcels within the District. All properties in the District benefit from the operation, maintenance and servicing of the street lighting, traffic signals, street median and parkway landscaping and street tree trimming. The degree of benefit to each parcel of land varies depending on its land use and the size of the parcel. If assessments were spread on an individual parcel basis, not considering land use or parcel size, it would not be an equitable method of spread because a single family parcel would pay the same assessment as a 50-unit apartment parcel or a large commercial parcel. Therefore, the method for spreading the improvement costs, which must be based on special and direct benefit, is on an Equivalent Dwelling Unit (EDU) basis. The EDU method uses the residential dwelling unit as the basic unit and compares other uses to it, as follows: • Residential parcels are assessed based on the number of dwelling units on each parcel, where each residential dwelling unit equals one EDU • Non-residential parcels have been converted into EDU'S, based on engineering judgment taking into consideration the size of the parcel and the amount of frontage along the street. Every parcel is assessed a minimum of one (1) EDU. There are a total of 11,045 EDU's within the Assessment District. ASSESSMENT RATE CALCULATION Based on a budget of $457,285 as shown in Part B of this report, the preliminary assessment rate for FY 2021-2022 is calculated as follows: $457,285÷11,032 EDU's = $41.45 per EDU The assessment for FY 2020-2021 was $41.45 per EDU. 507 9 PART E PROPERTY OWNER LIST A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Hermosa Beach. 508 10 PART F ASSESSMENT DISTRICT BOUNDARY The boundaries of the District are coterminous with the boundaries of the City of Hermosa Beach. A diagram showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District is on file in the office of the City Clerk of the City of Hermosa Beach, and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year 2020-2021. The Assessor's maps and records are incorporated by reference herein and made part of this report. 509 11 2021-2022 510 Page 1 of 3 20-XXXX 1 RESOLUTION NO. 20-XXXX 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH 4 CONFIRMING A DIAGRAM AND ASSESSMENT AND LEVYING ASSESSMENTS FOR 5 THE FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 IN 6 CONNECTION WITH THE HERMOSA BEACH LANDSCAPING AND STREET 7 LIGHTING DISTRICT 2021-2022 8 9 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA 10 BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 11 SECTION 1. Pursuant to the provisions of the "Landscaping and Lighting Act of 1972," 12 Part 2 of Division 15 of the Streets and Highways Code, commencing with Section 22500, (the 13 "Act"), the City Council adopted Resolution No. 21-7278 initiating proceedings and ordering the 14 Director of Public Works to prepare and file the report required by the Act. Said report is for the 15 proposed levy of an annual assessment for the fiscal year commencing July 1, 2021 and ending June 16 30, 2022. Pursuant to Resolution No. 21-7278 , such report was prepared and filed with the City 17 Clerk. 18 SECTION 2. The City Council adopted Resolution No. 21-7288, approving the report as 19 filed, and Resolution No. 21-7289 declaring its intention to order certain improvements and to levy 20 and collect assessments for the fiscal year commencing July 1, 2021 and ending June 30, 2022 and 21 appointing a time and place for hearing protests relative thereto. 22 SECTION 3. Following notice duly given in accordance with law, the City Council held a 23 full and fair public hearing at the time and place appointed therefor regarding the proposed levy of 24 assessments within the District and the report of the Director of Public Works, including the diagram 25 and assessment for the District. At the public hearing, all interested persons were afforded the 26 opportunity to hear and be heard regarding protests and objections to the levy and collection of the 27 proposed assessments against lots or parcels of real property within the District. 28 SECTION 4. The City Council considered all oral and written statements, protests and 29 communications made or filed by any interested persons. Any and all oral and written protests and 30 objections are hereby overruled by the City Council. 31 511 Page 2 of 3 20-XXXX SECTION 5. Based upon its review of the Engineer's Report, a copy of which has been 32 presented to the City Council and which has been filed with the City Clerk, and other reports and 33 information presented to the City Council, the City Council hereby finds and determines that (i) the 34 land within the District will be benefited by the improvements described in Section 6 below, (ii) the 35 District includes all of the land so benefited, and (iii) the net amount to be assessed upon the land 36 within the District for the 2021-2022 fiscal year in accordance with the Engineer's Report is 37 apportioned by a method and formula which fairly distributes the net amount among all assessable 38 lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from 39 the improvements. 40 SECTION 6. The City Council hereby orders the proposed improvements to be made as 41 described in the Engineer's Report, which improvements are briefly described as follows: the 42 maintenance and operation of streets and sidewalks within the assessment District, including the 43 operation, maintenance and servicing of landscaping, lighting and appurtenant facilities located in 44 and along such streets and sidewalks. 45 SECTION 7. The City Council declares that the diagram and assessment in the Engineer's 46 Report are hereby confirmed as filed. The adoption of this Resolution constitutes the levy of an 47 assessment for the fiscal year commencing July 1, 2021 and ending June 30, 2022. 48 SECTION 8. The assessment is in compliance with the provisions of the Act, and the City 49 Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the 50 Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements 51 described in Section 6 above for fiscal year 2021-2022. 52 SECTION 9. The City Clerk is hereby authorized and directed to file a certified copy of 53 this Resolution and the diagram and assessment with the County Auditor of the County of Los 54 Angeles. Thereupon, the County Auditor shall provide for the collection of assessments at the time 55 and in the manner provided in the Act. 56 SECTION 10. The City Clerk shall certify to the passage and adoption of this Resolution, 57 shall cause the original of the same to be entered among the original Resolutions of the City Council, 58 and shall make a minute of the passage and adoption thereof in the minutes of the City Council 59 meeting at which the same is passed and adopted. 60 61 PASSED, APPROVED AND ADOPTED this 13th day of July, 2021. 62 63 512 Page 3 of 3 20-XXXX ________________________________________________________________________ 64 PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California 65 66 67 68 ATTEST: APPROVED AS TO FORM: 69 70 71 __________________________ __________________________ 72 City Clerk City Attorney 73 74 75 513 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0422 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) Recommended Action: Staff recommends City Council: 1.Reconsider the April 20,2021 Planning Commission decision to deny the Conditional Use Permit Amendment; 2.Conduct the Public Hearing; and 3.Adopt draft resolution approving the Conditional Use Permit Amendment (CUP)20-8 to provide onsite sale,service,and consumption of alcohol,limited to beer and wine indoors only, within the hotel lounge for registered guests only,seven days a week 7:00 a.m.to 10:00 p.m.at an existing hotel (H2O Hermosa)located at 1429 Hermosa Avenue,and determination that the project is Categorically exempt from the California Environmental Quality Act (CEQA). Executive Summary: At its April 27,2021 meeting,two members of the City Council requested the item be reviewed by the City Council at a future public hearing pursuant to Section 2.52 of the Hermosa Beach Municipal Code. Letters from the applicant (H2O Hermosa)and the Chamber of Commerce were submitted to Council requesting review of the Planning Commission’s decision to deny the Conditional Use Permit Amendment.Further,the applicant modified the Conditional Use Permit request to limit alcohol service to beer and wine only as compared to the general alcohol request that was submitted to the City of Hermosa Beach Printed on 7/9/2021Page 1 of 10 powered by Legistar™514 Staff Report REPORT 21-0422 service to beer and wine only as compared to the general alcohol request that was submitted to the Planning Commission.Pursuant to Section 2.52 of the Municipal Code,staff scheduled a public hearing for the May 25,2021 City Council meeting.The public hearing was noticed in the same manner as the Planning Commission hearing.In reviewing the Planning Commission decision,the City Council may uphold,reverse,or modify the Commission’s action,or remand the matter with direction back to the Commission for further review. At its May 25,2021 meeting,the City Council reviewed and discussed the project.Issues concerning the existing permitted alcohol license,and neighbor complaints regarding parking and homelessness, were discussed.After thorough discussion,two members of the City Council requested the item be continued to July 13,2021a future City Council public hearing.The motion to continue the item carried by majority consent. At its March 16,2021 meeting,the Planning Commission considered the following two requests from H2O Hermosa, located at 1429 Hermosa Avenue: 1.Conditional Use Permit and Amendment to provide onsite sale,service,and consumption of general alcohol indoors only within the hotel lounge for registered guests only,seven days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa); and 2.Parking Plan Amendment to modify the conditions of approval requiring free parking to allow charging a fee for onsite parking. The Planning Commission directed staff with a 4 to 1 vote,to bring back a resolution denying the Conditional Use Permit to provide onsite sale,service,and consumption of general alcohol indoors only within the hotel lounge for registered guests only,seven days a week 7:00 a.m.to 10:00 p.m.at an existing hotel (H20 Hermosa),and with a 3 to 2 vote,to bring back a resolution approving the Parking Plan Amendment for charging a fee for onsite parking at an existing hotel (H20 Hermosa). At the April 20,2021 public hearing,the Planning Commission memorialized the decision from its March 16,2021 meeting,by adopting separate resolutions to deny the Conditional Use Permit Amendment and approve the Parking Plan Amendment.The City Council has not requested to review the Parking Plan Amendment request and the review is limited the Commission’s denial of the Conditional Use Permit Amendment. Background: The property is zoned Restricted Commercial (C-2)and is located in the northern end of the downtown area of the City on the southwest corner of Hermosa Avenue and 15th street.The project was originally approved and granted a Conditional Use Permit and Parking Plan in 2013 by the Planning Commission and on appeal by the City Council with some revisions incorporated.The entitlements expired before completion of the project and,in 2015,the applicant reapplied for the same entitlements for an almost identical project by proposing only minor changes.At its October 20, City of Hermosa Beach Printed on 7/9/2021Page 2 of 10 powered by Legistar™515 Staff Report REPORT 21-0422 same entitlements for an almost identical project by proposing only minor changes.At its October 20, 2015 meeting,the Planning Commission approved a Precise Development Plan to allow a 30,250 square foot hotel with 30 guest rooms and common areas on an underdeveloped 11,516 square foot lot;a Conditional Use Permit to allow on-sale general alcohol for hotel guests in guest rooms restricted to mini-bars;and a Parking Plan to allow a valet program with 37 spaces provided on the ground level of the hotel,24 of which were provided in tandem,9 of which were standard orientation spaces and 4 spaces for queuing in the drive aisle.The hotel operates pursuant to Planning Commission Resolution 15-25 (Attachment 8),which limits alcohol sales only to in-room service mini -bars. Subject Property Information ZONING:C-2 Restricted Commercial GENERAL PLAN:CR Commercial Recreation EXISTING/PROPOSED USE(S): Hotel LOT AREA:11,516 (no change) BUILDING AREA:30,250 sq. ft. (no change) HOTEL ROOMS:30 Guest Rooms (no change) COMMON AREAS:2,950 sq. ft. (no change) PARKING:37 spaces (no change) HOURS OF OPERATION EXISTING/PROPOSED: Hotel hours: 24/7(no change)/ 7:00 AM - 10:00 PM daily (Sale/service/consumption of beer and wine) ENVIRONMENTAL DETERMINATION: Categorically Exempt; Section 15301 Class 1- Existing Facilities Planning Commission Decision At its March 16,2021 meeting,the Planning Commission held a virtual public hearing to consider the request.The attached Planning Commission staff report (Attachment 2)provides a complete project analysis.There were three representatives for the applicant who spoke on the item.The applicant's team did not prepare a presentation for the meeting.However,the applicant and the project manager clarified that its request was for onsite sale,service,and consumption of general alcohol indoors only within the hotel lounge for registered guest and guest of registered guest.There was one member of the public who came forward to speak,opposing the project due to the potential impacts of the proposed on-sale alcohol service and the proposed use becoming a “bar-like”establishment.There were no e-comments submitted in support or opposition of the project. The Planning Commission discussed concerns regarding the potential impacts resulting from onsite sale,service,and consumption of general alcohol such as noise.Additional concerns were raised City of Hermosa Beach Printed on 7/9/2021Page 3 of 10 powered by Legistar™516 Staff Report REPORT 21-0422 sale,service,and consumption of general alcohol such as noise.Additional concerns were raised such as:the hotel’s close proximity to sensitive receptors,including,residential uses,business management regarding sales of alcohol to non-registered guests,the potential for late night loud noise,and unwanted activities including,but not limited to loitering.After deliberation,the Commission directed staff,with a 4 to 1 vote,to bring back a resolution denying the Conditional Use Permit to provide onsite sale,service,and consumption of general alcohol indoors only within the hotel lounge for registered guests only,seven days a week 7:00 a.m.to 10:00 p.m.at an existing hotel (H20 Hermosa). On April 20,2021,the Planning Commission memorialized the decision by adopting the resolution of denial of the Conditional Use Permit Amendment by a 4 to 1 vote.The attached resolution contains the detailed findings for denial (Attachment 6). Applicant Request The applicant originally requested a Conditional Use Permit Amendment to provide onsite sale, service,and consumption of general alcohol indoors only within the hotel lounge for registered guests only,seven days a week 7:00 a.m.to 10:00 p.m.at an existing hotel (H2O Hermosa).The request did not include any changes to the existing hotel floor plans,and the proposed on-sale,service,and consumption of general alcohol would be provided indoors only on the ground-level lounge,south of the front lobby desk with 32 existing seats,in conjunction with the existing on-sale general alcohol within mini-bars located in guest rooms. The applicant submitted a written modified request to the City Council at the April 27,2021 City Council meeting (Attachment 7).The applicant requests a CUP amendment to provide onsite sale, service,and consumption of beer and wine indoors only within the hotel lounge for registered guests only, seven days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa). Past Council Actions Meeting Date Description April 27, 2021 (Regular Meeting) Request by two members of the City Council to review the item future public hearing pursuant to Section 2.52 of the Hermosa Beach Municipal Code. May 25, 2021 (Regular Meeting)City Council reviewed and discussed the project and continued the item to a future meeting for futher discussion. Discussion: H20 Hermosa has been in operation since October 2020.However,due to the pandemic,the hotel was temporarily closed at times.Since 2015,the applicant has faced many obstacles in the efforts to establish its business and begin operations.The unexpected global wide pandemic of 2020 provided City of Hermosa Beach Printed on 7/9/2021Page 4 of 10 powered by Legistar™517 Staff Report REPORT 21-0422 establish its business and begin operations.The unexpected global wide pandemic of 2020 provided additional challenges to the business.The applicant indicates that allowing service of beer and wine would allow the applicant to be competitive in the market and would allow the business to provide the complete luxury boutique experience to hotel guests. General Criteria for CUP Approval Hermosa Beach Municipal Code (HBMC)Section 17.26.030 allows the sale,service and consumption of alcohol onsite with approval of a Conditional Use Permit in the C-2 zone.HBMC Section 17.40.020 establishes the criteria,conditions and standards for reviewing;granting and amending CUPs in order to reduce the potential for adverse secondary land use impacts.While the Planning Commission identified potential negative impacts of the proposed use,City staff cited the following ways the negative impacts would be mitigated.Additionally,in the applicant’s letter addressed to City Council,the applicant proposed to revise its request from general alcohol to onsite sales,service,and consumption of beer and wine only,which should further reduce the potential for negative impacts.The request for onsite sales,service and consumption of beer and wine only have been evaluated below: 1.Distance from Existing Residential Uses:While the existing hotel use is within close proximity to residential uses,the proposed beer and wine onsite consumption would include service in the existing indoor lounge,south of the front desk/lobby area,restricted to hotel guests only and would be an addition to the existing mini-bars for hotel guests within guest rooms.The existing hotel offers a continental breakfast service in the lounge,however no other food service would be provided in the lounge with the exemption of bagged snacks,such as nuts,chips,and non-alcoholic beverages.The existing conditions of approval set forth in PC Resolution 15-25 will remain in full force and effect with exception of Condition 12 d for the parking fee,which was modified by the Planning Commission’s approval of the Parking Plan Amendment in addition to the new conditions of approval included in this Resolution.Finally,beer and wine,service and consumption indoors would be limited to the hours of 7:00 AM to 10:00 PM seven days a week. 2.Precautions taken by the owner or operator of the proposed establishment to assure compatibility of the use with surrounding uses:In order to prevent potential negative impacts on surrounding properties,hours for the existing hotel facilities such are the multi-functional room and the pool/spa have been limited to 10:00 P.M.The applicant proposes to also limit hours of the onsite sale,service,and consumption of beer and wine within the hotel lounge from 7:00 A.M.to 10:00 P.M.The applicant has removed the inconsistent hours for the roof deck from the business website. The proposed sale,service,and consumption of beer and wine are limited to registered guests only.Since the existing lounge is located beyond the front desk/lobby area,hotel front desk and bar staff can easily witness those entering the lounge and would have the ability to confirm that only registered guests are utilizing the onsite alcohol service.Security cameras also currentlyCity of Hermosa Beach Printed on 7/9/2021Page 5 of 10 powered by Legistar™518 Staff Report REPORT 21-0422 only registered guests are utilizing the onsite alcohol service.Security cameras also currently monitor the front desk and lobby area for additional security.In the applicant’s original proposal, the applicant also provided its employee alcohol-training handbook,which includes information for guest verification regarding the alcohol service (attached).Bar staff can verify the names of the registered hotel guests through the hotel’s Point of Sales system,which is a computer system that allows business owners to track sales,cash flow,etc.The applicant has also committed to hire additional employees to monitor the lounge area if issues arise with the proposed beer and wine onsite sale, service and consumption. Finally,in 2020,the Planning Commission approved onsite sale,service,and consumption of beer and wine indoor only at another existing hotel (Hotel Hermosa).Due to concerns from the public and the City’s Police Department,conditions of approval were added to the resolution to mitigate potential impacts.The same conditions of approval that were identified by the City’s Police Department to lower negative impacts for Hotel Hermosa are included in the conditions of approval for the proposal. 3.The number of similar establishments or uses within close proximity to the proposed establishment:While the existing hotel is located in the downtown area of the City,which is home to many late-night alcohol establishments,the provision to expand the onsite sale,service, and consumption of beer and wine to the hotel lounge for hotel guests only would be ancillary to the primary hotel use.A similar use in the downtown area can be found at the Beach House Inn. The Beach House Inn was granted a CUP for on-sale general alcohol sales in 2001,which is limited to the use of in-room mini-bars and private banquet rooms used only by hotel guests. Since both the subject business and the Beach House Inn offer alcohol service exclusively to its hotel guests,over-concentration of similar businesses is not anticipated.The provision for onsite sale,service and consumption beer and wine only,would allow the business to remain competitive in the market and provide the same services offered at similar luxury boutique hotels. 4.Impact of the proposed use to the City’s infrastructure,and/or services:Impacts to police services have been an issue with some late night alcohol serving facilities clustered in the downtown area.However,given the proposal is not a late-night establishment and the prevision only includes onsite sale,service and consumption of beer and wine only indoors for hotel guests only,the request is not anticipated to impact City services.Though the proposed use is not anticipated to create adverse effects to the City’s infrastructure and/or services,several measures have been taken through the conditions of approval to mitigate any potential impacts.The City is committed to ensuring that hotel establishments are closely monitored and the existing hotel use is conditioned such that “Should the Police Chief determine that a continuing police problem exists,he/she may,subject to appeal to the Planning Commission,direct the presence of a police approved security personnel to eliminate the problem.An appeal to the Planning Commission shall be heard within 60 days of filing the appeal.The Police Chief’s determination will not be stayed during the pendency of the appeal.If the problem persists,the Police Chief then shallCity of Hermosa Beach Printed on 7/9/2021Page 6 of 10 powered by Legistar™519 Staff Report REPORT 21-0422 stayed during the pendency of the appeal.If the problem persists,the Police Chief then shall submit a report to the Planning Commission,which will automatically initiate a review of the conditional use permit,”(CUP Condition 19).In addition,“The Planning Commission may review this Conditional Use Permit or Precise Development Plan or Parking Plan and may amend the subject conditions or impose any new conditions if deemed necessary to mitigate detrimental effects on the neighborhood resulting from the subject use.”(CUP Condition 30).Finally,in 2020, condition of approvals that were identified by the City’s Police Department for the CUP Amendment for Hotel Hermosa to mitigate potential services impacts from the proposed onsite sale,service,and consumption of beer and wine at an existing hotel have been added to the conditions of approval: 11.The establishment shall have security personnel on-duty during the hours of alcohol sales,service and consumption at the owner/operator’s expense.In addition to other security duties at the hotel property,the security personnel shall be responsible for monitoring the dining and alcohol service area to address any loud,boisterous or unruly behavior.If the security personnel are not able to reduce or eliminate incidents and problems at the hotel property,the Chief of Police may direct the establishment to hire additional security personnel,at the owner/operators expense,who would have the sole responsibility of monitoring the dining and alcohol service area within the hotel property.If the problem persists,the Chief of Police shall submit a report to the Planning Commission,which would automatically initiate a review of this Conditional Use Permit and Parking Plan by the Planning Commission.If the establishment can demonstrate that security personnel is no longer necessary to the satisfaction of the Police Chief due to a reduced impact to the City’s services,such as,but not limited to a reduction in the number and severity of Calls for Service (CFS)directly attributed to the hotel property over a twelve month period the Police Chief may modify the requirement for security personnel.If there is no longer a necessity for security personnel,then the requirement to have security personnel shall be annulled upon notification from the Police Chief to the Community Development Director and the applicant. Any other change to the requirement to have security personnel shall require an amendment to this CUP following a public hearing before the Planning Commission. 12.The establishment shall install and maintain a video surveillance system in the ground- level lounge alcohol service area,where alcohol would be consumed.The video surveillance system shall have a retention period of at least 30 days.The establishment agrees to cooperate with the City’s Code Enforcement and Police Department to provide copies of video surveillance for criminal or administrative investigations. 13.The establishment would arrange a meeting with the Police Chief on an annual basis to review the impact of the CUP.During the annual meeting,the Police Department would review the number and severity of the Calls for Service (CFS)directly attributable to the hotel property for the previous twelve months.If there are any increases in the number and severityCity of Hermosa Beach Printed on 7/9/2021Page 7 of 10 powered by Legistar™520 Staff Report REPORT 21-0422 property for the previous twelve months.If there are any increases in the number and severity of CFS directly attributable to the hotel property,the establishment would provide the Police Chief with a plan to reduce the impacts within 30 days of the meeting. Hermosa Beach,like many other communities,is facing an economic downturn as a result of the COVID-19 pandemic.The pandemic has created challenges to many businesses in Hermosa Beach, like H2O Hermosa.The applicant’s request would allow the applicant to provide similar services provided at other luxury boutique hotels and thus,would allow the business to stay competitive in the market. General Plan Consistency: The establishment is located within the Recreational Commercial (RC)General Plan land use area and the downtown character area.The Recreational Commercial designation is located in the downtown area south of Hermosa Avenue,offering costal-related uses and visitor accommodations. “Restaurants,snack shops,entertainment,lodging,retail,beach rentals and other similar uses are prioritized within this designation and allows on ground or upper floor.Office and personal service uses are allowed within this designation,provided they are located on upper floors.”The Recreational Commercial designation plays a role in providing services and amenities to both visitors and residents.“Adjacency to the beach gives this designation the unique opportunity to provide a shopping and dining experience that attracts residents and visitors alike,capturing a large portion of the City’s economic activity generated by visitors. (PLAN Hermosa p. 76). This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Land Use Goal 1.Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents. Policies: ·1.1 Diverse and distributed land use pattern.Strive to maintain the fundamental pattern of existing land uses,preserving residential neighborhoods,while providing for enhancement of corridors and districts in order to improve community activity and identity. ·1.5 Balance resident and visitor needs.Ensure land uses and businesses provide for the needs of residents as well as visitors. ·1.7 Compatibility of uses.Ensure the placement of new uses does not create or exacerbate nuisances between different types of land uses. Goal 4.A variety of corridors throughout the city provide opportunities for shopping, recreation, commerce, employment and circulation. City of Hermosa Beach Printed on 7/9/2021Page 8 of 10 powered by Legistar™521 Staff Report REPORT 21-0422 Policy: ·4.8 Neighborhood buffer.Encourage all commercial property owners bordering residential areas to mitigate impacts and use appropriate landscaping and buffering of residential neighborhoods. Mobility Goal 4.A parking system that meets the parking needs and demand of residents,visitors,and employees in an efficient and cost-effective manner. Policy: ·4.2 Encourage coastal access.Ensure parking facilities and costs of such facilities are not a barrier to beach access by the public. Sustainability and Conservation Goal 3. Improved air quality and reduced air pollution emissions. Policy: ·3.2 Mobile source reductions.Support land use and transportation strategies to reduce emissions, including pollution from commercial and passenger vehicles. CEQA: Planning Commission reviewed denial of the application is exempted pursuant to Section 15270 of the ‘Guidelines for Implementation of the California Environmental Quality Act (CEQA),’Title 14 of the California Code of Regulations,the project is not subject to CEQA because CEQA does not apply to projects which a public agency rejects or disapproves. City Council’s review and reconsideration of the project is Categorically Exempt from the California Environmental Quality Act as defined in Section,Class 1 Exemption of the CEQA Guidelines.Class 1 exemptions include modifications to existing structures that involve negligible or no expansion of an existing use.The proposal pertains to an existing facility where the hotel operation would be maintained and providing onsite sale,service and consumption of beer and wine in conjunction involves negligible or no expansion of the use.Moreover,none of the exceptions to the Categorical Exemption apply;nor would the project result in a significant cumulative impact of successive projects of the same type in the same place over time,or have a significant effect on the environment due to unusual circumstances,or damage a scenic highway or scenic resource within a state scenic highway.The site is not located on a hazardous waste site and would not cause a substantial adverse change in the significance of a historical resource. Fiscal Impact: There is no fiscal impact to the City associated with the recommended action. City of Hermosa Beach Printed on 7/9/2021Page 9 of 10 powered by Legistar™522 Staff Report REPORT 21-0422 Attachments: 1.Draft Resolution 2.Link to Planning Commission Staff Report, dated March 16, 2021 3.Link to Planning Commission Minutes, dated March 16, 2021 4.Link to Planning Commission Public Hearing, dated April 20, 2021 5.Link to Planning Commission Minutes, dated April 20, 2021 6.P.C. Denial Resolution 21-XX 7.Applicant’s Modified Request 8.P.C. Resolution 15-25 9.Notice Poster and Radius Map Respectfully Submitted by: Yuritzy Randle, Assistant Planner Concur: Ken Robertson, Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, Deputy City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 10 of 10 powered by Legistar™523 RESOLUTION 21 –XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, RECONSIDERING THE MARCH 16, 2021 PLANNING COMMISSION DECISION TO DENY CONDITIONAL USE PERMIT 20-8 REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ON-SITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, 7 DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, APPROVING THE MODIFIED CONDITIONAL USE PERMIT 20-8 REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ON-SITE SALE, SERVICE, AND CONSUMPTION OF BEER AND WINE INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Planning Commission adopted Resolution No. 15-25 on October 20, 2015 to approve a Precise Development Plan (PDP15-11) to allow a 30,250 square foot hotel with 30 guest rooms and common areas on an undeveloped 11,516 square foot lot; Conditional Use Permit (CUP15-10) to allow on-sale general alcohol for hotel guests in guest rooms restricted to mini-bars; and a Parking Plan (PARK 15-7) to allow a valet program and parking in tandem for a property located at 1429 Hermosa Avenue. SECTION 2. An application was filed by 1429 Hermosa LLC seeking approval for a Conditional Use Permit and Parking Plan Amendment to CUP 20-8 & PARK 20-5. to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guest only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) and to allow charging a fee for on-site parking located at 1429 Hermosa Avenue. SECTION 3. The Planning Commission conducted a duly noticed public hearing to consider the application for the Conditional Use Permit 20-8 and Parking Plan 20-5 amendment on March 16, 2021, at which testimony and evidence, both written and oral, was presented to and considered by the Planning Commission. Concerns were raised regarding the Conditional Use Permit Amendment due to the hotel’s close proximity to sensitive receptors, including, residential uses, business management regarding sales of alcohol to non -registered guests, the potential for late night loud noise, and unwanted activities including, but not limited to loitering. SECTION 4. During the March 16, 2021 public hearing, the Planning Commission directed staff to bring back a resolution denying the Conditional Use Permit to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for 524 registered guests only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H20 Hermosa) on consent calendar. SECTION 5. The Planning Commission conducted a duly noticed public meeting on April 20, 2021 to formally adopt the resolution memorializing the denial of the Conditional Use Permit Amendment. The motion carried with a 4 to 1 vote denying the Conditional Use Permit Amendment. SECTION 6. On April 27, 2021, the City Council removed Conditional Use Permit Amendment 20-08 from the Planning Commission List of Approved Actions on the Consent Calendar for reconsideration by the City Council at a public hearing. The City Council conducted a duly noticed public hearing to consider the application on May 25, 2021. SECTION 7. Planning Commission denial of the application is exempt pursuant to Section 15270 of the ‘Guidelines for Implementation of the California Environmental Quality Act (CEQA), Title 14 of the California Code of Regulations, as the project is not subject to CEQA because CEQA does not apply to projects which a public agency rejects or disapproves. The City Council’s review and reconsideration of the project is Categorically Exempt from the California Environmental Quality Act as defined in Section, Class 1 Exemption of the CEQA Guidelines. Class 1 exemptions include modifications to existing structures that involve negligible or no expansion of an existing use. The proposal pertains to an existing facility where the hotel operation will be maintained and providing on-site sale, service and consumption of beer and wine involves negligible or no expansion of the use. Moreover, none of the exceptions to the Categorical Exemption apply; nor will the project result in a significant cumulative impact of successive projects of the same type in the same place over time, or have a significant effect on the environment due to unusual circumstances, or damage a scenic highway or scenic resource within a state scenic highway. The site is not located on a hazardous waste site and will not cause a substantial adverse change in the significance of a historical resource. SECTION 8. Based on the testimony and evidence received, the City Council makes the following factual findings pertaining to the application for a Conditional Use Permit Amendment pursuant to Hermosa Beach Municipal Code Section 17.40.080: 1. Distance from Existing Residential Uses: While the existing hotel use is within close proximity to residential uses, the proposed beer and wine on-site consumption would include service in the existing indoor lounge, south of the front desk/lobby area, restricted to hotel guests only and would be an addition to the existing mini-bars for hotel guests within guest rooms. The existing hotel offers a continental breakfast service in the lounge, however no other food service would be provided in the lounge with the exemption of bagged snacks, such as nuts, chips, and non-alcoholic beverages. The existing conditions of approval set forth in PC Resolution 15-25 would remain in full force and effect (with exception of Condition 12 d for the parking fee) in addition to the new conditions of approval included in this resolution. Finally, beer and wine, service 525 and consumption indoors would be limited to the hours of 7:00 AM to 10:00 PM 7 days a week. 2. Precautions taken by the owner or operator of the proposed establishment to assure compatibility of the use with surrounding uses: In order to prevent potential negative impacts on surrounding properties, hours for the existing hotel facilities such as the multi-functional room and the pool/spa have been limited to 10:00 P.M. The applicant proposes to also limit hours of the onsite sale, service, and consumption of beer and wine within the hotel lounge from 7:00 A.M. to 10:00 P.M. The applicant has removed the inconsistent hours for the roof deck from the business website. The proposed sale, service, and consumption of beer and wine are limited to registered guests only. Since the existing lounge is located beyond the front desk/lobby area, hotel front desk and bar staff can easily witness those entering the lounge and will have the ability to confirm that only registered guests are utilizing the on-site alcohol service. Security cameras also currently monitor the front desk and lobby area for additional security. In the applicant’s original proposal, the applicant also provided their employee alcohol-training handbook, which includes information for guest verification in regard to the alcohol service (attached). Bar staff can verify the names of the registered hotel guests through the hotel’s POS system (POS stands for Point of Sales is a computer system which allows business owners to track sales, cash flow etc.). The applicant has also committed to hire additional employees to monitor the lounge area if issues arise with the proposed beer and wine on-site sale, service and consumption. Finally, in 2020, the Planning Commission approved on-site sale, service, and consumption of beer and wine indoor only at another existing hotel (Hotel Hermosa). Due to concerns from the public and the City’s Police Department, conditions of approval were added to the resolution to mitigate potential impacts. The same conditions of approval that were identified by the City’s Police Department to lower negative impacts for Hotel Hermosa are included in the conditions of approval for the proposal. 3. The number of similar establishments or uses within close proximity to the proposed establishment: While the existing hotel is located in the downtown area of the City, which is home to many late-night alcohol establishments, the provision to expand the onsite sale, service, and consumption of beer and wine to the hotel lounge for hotel guests only would be ancillary to the primary hotel use. A similar use in the downtown area can be found at the Beach House Inn. The Beach House Inn was granted a CUP for on-sale general alcohol sales in 2001, which is limited to the use of in-room mini-bars and private banquet rooms used only by hotel guests. Since both the subject business and the Beach House Inn offer alcohol service exclusively to their hotel guests, over- concentration of similar businesses is not anticipated. The provision for on-site sale, service and consumption beer & wine only, would allow the business to remain competitive in the market and provide the same services offered at similar luxury boutique hotels. 526 4. Impact of the proposed use to the City’s infrastructure, and/or services: Impacts to police services have been an issue with some late night alcohol serving facilities clustered in the downtown area. However, given the proposal is not a late night establishment and the prevision only includes on-site sale, service and consumption of beer and wine only indoors for hotel guests only, the request is not anticipated to impact City services. Though the proposed use is not anticipated to create adverse effects to the City’s infrastructure and/or services, several measures have been taken through the conditions of approval to mitigate any potential impacts. The City is committed to ensuring that hotel establishments are closely monitored and the existing hotel use is conditioned such that, “Should the Police Chief determine that a continuing police problem exists, he/she may, subject to appeal to the Planning Commission, direct the presence of a police approved security personnel to eliminate the problem. An appeal to the Planning Commission shall be heard within sixty (60) days of filing the appeal. The Police Chief’s determination will not be stayed during the pendency of the appeal. If the problem persists, the Police Chief then shall submit a report to the Planning Commission, which will automatically initiate a review of the conditional use permit.” (CUP Condition 19). In addition, “The Planning Commission may review this Conditional Use Permit or Precise Development Plan or Parking Plan and may amend the subject conditions or impose any new conditions if deemed necessary to mitigate detrimental effects on the neighborhood resulting from the subject use.” (CUP Condition 30). Finally, in 2020, condition of approvals that were identified by the City’s Police Department for the CUP Amendment for Hotel Hermosa to mitigate potential services impacts from the proposed onsite sale, service, and consumption of beer and wine at an existing hotel have been added to the conditions of approval: The establishment shall have security personnel on-duty during the hours of alcohol sales, service and consumption at the owner/operator’s expense. In addition to other security duties at the hotel property, the security personnel shall be responsible for monitoring the dining and alcohol service area to address any loud, boisterous or unruly behavior. If the security personnel are not able to reduce or eliminate incidents and problems at the hotel property, the Chief of Police may direct the establishment to hire additional security personnel, at the owner/operators expense, who will have the sole responsibility of monitoring the dining and alcohol service area within the hotel property. If the problem persists, the Chief of Police shall submit a report to the Planning Commission, which will automatically initiate a review of this Conditional Use Permit and Parking Plan by the Planning Commission. If the establishment can demonstrate that security personnel is no longer necessary to the satisfaction of the Police Chief due to a reduced impact to the City’s services, such as, but not limited to a reduction in the number and severity of Calls for Service (CFS) directly attributed to the hotel property over a twelve month period the Police Chief may modify the requirement for security personnel. If there is no longer a necessity for security personnel, then the requirement to have security personnel shall be annulled upon notification from the Police Chief to the Community Development Director and the applicant. Any other change to the requirement to have security personnel shall require an amendment to this CUP following a public hearing before the Planning Commission. 527 The establishment shall install and maintain a video surveillance system in the ground-level lounge alcohol service area, where alcohol will be consumed. The video surveillance system shall have a retention period of at least thirty (30) days. The establishment agrees to cooperate with the City’s Code Enforcement and Police Department to provide copies of video surveillance for criminal or administrative investigations. The establishment will arrange a meeting with the Police Chief on an annual basis to review the impact of the CUP. During the annual meeting, the Police Department will review the number and severity of the Calls for Service (CFS) directly attributable to the hotel property for the previous twelve months. If there are any increases in the number and severity of CFS directly attributable to the hotel property, the establishment will provide the Police Chief with a plan to reduce the impacts within thirty (30) days of the meeting. SECTION 9. Based on the foregoing, the City Council hereby approves an amendment to a Conditional Use Permit. This resolution modifies Planning Commission Resolution No. 15-25, which shall remain valid. Unless modified herein, all conditions of approval contained in PC Resolution No. 15-25 shall prevail. The following conditions of approval are hereby added to PC Resolution No. 15-25 to read as follows: 14. The provision of alcoholic beverages shall comply with the following: a. The hotel manager and anyone involved in the sale/service of beer and wine shall attend and pass a responsible beverage service training provider program to educate hotel management and servers of alcohol responsibility and California laws in order to serve alcoholic beverages safely, responsibly, and legally, and to prevent illicit drug activity. b. Exterior signage or any other form of outside promoting or advertising referencing any food and/or beverage products sold is prohibited. c. Food and beverage service shall be available only for hotel guests and shall not be open to the public. d. The hotel shall only provide alcoholic beverage services to verified registered guests of the hotel. e. All alcoholic beverages shall be served in non-disposable drink ware. f. Signs shall be posted in a conspicuous location warning patrons of the illegality of removing alcoholic beverages from the hotel property, and carrying and consuming alcoholic beverages in any public place such as the public sidewalk. g. Any substantial deviation, changes to the floor plan, site plan or building exterior, which alters or intensifies the alcoholic beverages service shall be subject to review and approval by the Planning Commission. 15. The establishment shall have security personnel on -duty during the hours of alcohol sales, service and consumption at the owner/operator’s expense. In addition to other 528 security duties at the hotel property, the security personnel shall be responsible for monitoring the dining and alcohol service area to address any loud, boisterous or unruly behavior. If the security personnel are not able to reduce or eliminate incidents and problems at the hotel property, the Chief of Police my direct the establishment to hire additional security personnel, at the owner/operators expense, who will have the sole responsibility of monitoring the dining and alcohol service area within the hotel property. If the problem persists, the Chief of Police shall submit a report to the Planning Commission, which will automatically initiate a review of this Conditional Use Permit and Parking Plan by the Planning Commission. If the establishment can demonstrate that security personnel is no longer necessary, to the satisfaction of the Police Chief and/or a reduced impact to the City’s services, such as, but not limited to a reduction in the number and severity of Calls for Service (CFS) directly attributed to the hotel property, over a twelve month period, the Police Chief may modify the requirement for security personnel. If there is no longer a necessity for security personnel, then the requirement to have security personnel shall be annulled upon notification from the Police Chief to the Community Development Director and the applicant. Any other change to the requirement to have security personnel shall require an amendment to this CUP following a public hearing before the Planning Commission. 16. The establishment shall install and maintain a video surveillance system in the dining and alcohol service area, and all other common areas of the hotel where alcohol may be consumed. The video surveillance system shall have a retention period of at least thirty (30) days. The establishment agrees to cooperate with the City’s Code Enforcement and Police Department to provide copies of video surveillance for criminal or administrative investigations. 17. The establishment will arrange a meeting with the Police Chief on an annual basis to review the impact of the CUP. During the annual meeting, the Police Department will review the number and severity of the Calls for Service (CFS) directly attributable to the hotel property for the previous twelve months. If there are any increases in the number and severity of CFS directly attributable to the hotel property, the establishment will provide the Police Chief with a plan to reduce the impacts within thirty (30) days of the meeting. SECTION 10. This permit shall not be effective for any purposes until the permittee and the owner of the property involved provide evidence to the office of the Planning Division of the Community Development Department of recording of the signed Acceptance of Conditions’ affidavit with the Los Angeles County Recorder’s Office stating that they are aware of, and agree to accept, all of the conditions of this permit. The Conditional Use Permit shall be recorded, and proof of recordation shall be submitted to the Community Development Department prior to the issuance of a business license. Each of the above conditions is separately enforced, and if one of the conditions of approval is found to be invalid by a court of law, all the other conditions shall remain valid and enforceable. 529 To the extent permitted by law, Permittee shall defend, indemnify and hold harmless the City of Hermosa Beach, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The permittee shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City because of this permit. Although the permittee is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the permittee of any obligation under this condition. SECTION 11. Pursuant to the Code of Civil Procedure Section 1094.6, any legal challenge to the final decision on this Parking Plan (either by the Planning Commission, or the City Council should they take jurisdiction of the project), must be made within 90 days after the final decision. PASSED, APPROVED AND ADOPTED this 25th day of May, 2021. MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: __________________________________ ____________________________________ City Clerk City Attorney 530 1 P.C. RESOLUTION NO. 21-XX A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DENYING CONDITIONAL USE PERMIT AMENDMENT REQUEST TO PROVIDE ON-SITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, 7 DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The Planning Commission of the City of Hermosa Beach does hereby resolve and order as follows: SECTION 1. The Planning Commission adopted Resolution No. 15-25 on October 20, 2015 to approve a Precise Development Plan (PDP15-11) to allow a 30,250 square foot hotel with 30 guest rooms and common areas on an undeveloped 11,516 square foot lot; Conditional Use Permit (CUP15- 10) to allow on-sale general alcohol for hotel guests in guest rooms restricted to mini-bars; and a Parking Plan (PARK 15-7) to allow a valet program and parking in tandem for a property located at 1429 Hermosa Avenue. SECTION 2. An application was filed 1429 Hermosa LLC seeking approval for a Conditional Use Permit and Parking Plan Amendment to CUP 20-8 & PARK 20-5- Conditional Use Permit and Parking Plan amendment request to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guest only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) and to allow charging a fee for on-site parking located at 1429 Hermosa Avenue. SECTION 3. The Planning Commission conducted a duly noticed public hearing to consider the application for the Conditional Use Permit 20-8 and Parking Plan 20-5 amendment, at which testimony and evidence, both written and oral, was presented to and considered by the Planning Commission. Concerns were raised regarding the Conditional Use Permit Amendment due to the hotel’s close proximity to sensitive receptors, including, residential uses, business management regarding sales of alcohol to non-registered guests, the potential for late night loud noise, and unwanted activities including, but not limited to loitering. SECTION 4. During the March 16, 2021 public hearing, The Planning Commission directed staff to bring back a resolution denying the Conditional Use Permit to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guests only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H20 Hermosa) on consent calendar. The motion carried with a 4 to 1 vote denying the Conditional Use Permit Amendment. 531 2 SECTION 5. The Planning Commission conducted a duly noticed public meeting on April 20, 2021 to formally adopt the resolution memorializing the denial of the Conditional Use Permit Amendment. SECTION 6. Based on the testimony and evidence received, the Planning Commission hereby denies the applicant’s request for an amendment to an existing Conditional Use Permit to provide on- site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guests only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) at 1429 Hermosa Avenue. SECTION 7. Based on the foregoing factual findings the Planning Commission makes the following findings to DENY the application for a Conditional Use Permit Amendment request to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guests only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) at 1429 Hermosa Avenue pursuant to Sections 17.26.030 and17.40.020 of the Hermosa Beach Municipal Code: 1. Distance from Existing Residential Uses: The existing hotel is located at the northern end of the downtown area at the intersection of Hermosa Avenue and 15th Street with high density residential located on the east of Hermosa Avenue and commercial uses located directly adjacent to the subject site. A 16-unit multi-family residential complex neighbors the subject property to the west while a 12-unit multiple family residential complex neighbors the subject property to the southeast. Additional single-family and multiple- family residences line the east side of Hermosa Avenue east of the subject property as well as along 15th Street Place, west of the subject property. The close proximity raises issues of concern related to loud noise and unwanted activities including, but not limited to loitering during the late evening hours/early morning hours, which may cause unreasonable discomfort of any persons within the vicinity. 2. Precautions taken by the owner or operator of the proposed establishment to assure compatibility of the use with surrounding uses: In 2015, conditions of approval were incorporate into the original approval of the hotel to limit the hours of operation for the proposed amenities, such as the food service area, the multi-functional room at the second floor level and the pool/spa area to 10:00 P.M. daily, in order to reduce potential noise impacts generated by the proposed use. During the March 16, 2021 Planning Commission meeting, the Planning Commission discovered on the business website that the roof deck was operating 24 hours/7days a week. It was also discovered during the March 16, 2021 Planning Commission meeting that the business management for the existing use was already charging a parking fee for the on-site parking, which is inconsistent with the existing conditions of approval. While the City’s Code Enforcement Division confirmed that since the operation of the existing hotel, there have been no noise complaints/issues for the hotel guest areas, the inconsistent hotel management procedures raises concerns of potential negative impacts to the surrounding uses such as loud noise and unwanted activities. 3. The number of similar establishments or uses within close proximity to the proposed establishment: The downtown area is home to two other hotels (Grandview Inn and Beach House Inn), a motel (Sea Sprite Motel) and a hostel (Surf City Hostel). Additional hotels in 532 3 the City are located on Pacific Coast Highway (Hampton Inn and Suites and Hotel Hermosa), and on Aviation Boulevard (Quality Inn). The existing hotel is located in the downtown area of the City, which is home to many late-night alcohol establishments. While provision to expand the onsite sale, service, and consumption of general alcohol to the hotel lounge for hotel guests only would be ancillary to the primary hotel use, the proposed on- site sale, service and consumption of general alcohol would exacerbate the cluster of alcohol serving facilities in the downtown area and thus creates concerns of potential negative impacts. 4. Impact of the proposed use to the City’s infrastructure, and/or services: Impacts to police services have been an issue with some late night alcohol serving facilities clustered in the downtown area. Although the proposal is not a late night establishment and the proposal only includes on-site sale, service and consumption of general alcohol indoors for hotel guests only, there are concerns, for the reasons listed above, that the proposed used will impact City services. The City is committed to ensuring that hotel establishments are closely monitored, and the addition of the proposed alcohol on-site sale, service, and consumption for registered guests only is anticipated to create unwanted impacts to any persons within close proximity to the establishment which in turn, would impact the City’s police service. SECTION 8. Based on the foregoing, the Planning Commission hereby DENIES the request for Conditional Use Permit Amendment 20-8, to provide on-site sale, service, and consumption of general alcohol indoors only within the hotel lounge for registered guests only, 7 days a week 7:00 a.m. to 10:00 p.m. at an existing hotel (H2O Hermosa) a located at 1429 Hermosa Avenue. SECTION 9. Pursuant to Section 15270 of the ‘Guidelines for Implementation of the California Environmental Quality Act (CEQA), Title 14 of the California Code of Regulations, the project is not subject to CEQA because CEQA does not apply to projects which a public agency rejects or disapproves. SECTION 10. Pursuant to the Code of Civil Procedure Section 1094.6, any legal challenge to the decision of the Planning Commission, after a formal appeal to the City Council, must be made within 90 days after the final decision by the City Council. VOTE: AYES: NOES: ABSTAIN: ABSENT: CERTIFICATION I hereby certify the foregoing Resolution P.C. No. 21-XX is a true and complete record of the action taken by the Planning Commission of the City of Hermosa Beach, California at its adjourned regular meeting of March 16, 2021, and memorialized on April 20, 2021. ________________________________ ____________________________ 533 4 Rob Saemann, Chairman Ken Robertson, Secretary April 20, 2021 Date 534 From: Neil Chhabria <neil@chhabriare.com> Sent: Monday, April 26, 2021 1:19 PM To: Suja Lowenthal <suja@hermosabeach.gov> Subject: H2O Hermosa Hotel Hi City Manager Suja, This is Neil Chhabria from H2O Hermosa Hotel and I'm writing to let you know I'll be speaking on behalf of my parents and our partners the Khosla family during the public comment portion of the next city council meeting regarding the planning commission's approval of the resolution for denial of our request to sell and serve liquor. We would like the city council to pull/reopen discussion of our request to sell and serve liquor. Additionally we want to request to modify our CUP to allow the sale and service of beer and wine only to guests only at the hotel. I've attached a brief slide deck summarizing the situation from our point of view and I hope that you can review it along with the council members before tomorrow's meeting. If you have any questions please do not hesitate to contact me. SIncerely, -- Neil Chhabria Broker Associate | Chhabria Real Estate Instagram | YouTube E: neil@chhabriare.com M: 310.902.7227 BRE: 01821437 535 – CITY COUNCIL MEETING – 536 CITY COUNCIL MEETINGH2O HERMOSA To NOT approve the resolution of Denial to amend Conditional Use Permit (CUP) 20-8. Additionally we ask the planning commission to reconsider amending the (CUP) with the following modification: to allow the sale of beer and wine ONLY to hotel guests ONLY 7 days a week from 7am to 10pm and allow the use and provision of beer and wine in common areas of the hotel from 7am to 10pm only. APPLICANT’S OBJECTIVE PAGE 0 2 537 H 2 O HERMOSA -Our business needs the revenue from beer and wine sales to help become viable. We have yet to have a successful month of business -Sale of beer and wine would complete the luxury boutique hotel experience -Enable us to secure group bookings for weddings -Our competitors in the city have this ability which puts us at a disadvantage WHY? PAGE 0 3 CITY COUNCIL MEETING 538 H 2 O HERMOSA There has been feedback from the community that we do not follow the rules and speculation that we have already been selling and serving beer and wine in our lobby area. That is simply not true. We know we do not hold the permits and ability to do so. We would never flagrantly break the rules in this way, especially on this historically controversial issue in the city. Addressing the Objections PAGE 0 4 CITY COUNCIL MEETING 539 H 2 O HERMOSA The community has had negative feedback about the execution and elongated timeline of construction. We are very aware of the negative feedback and we also are not pleased about how the construction played out. We understand that construction is never an easy thing for a neighborhood to go through, especially a project of this size and we thank the community, the planning commission, and the city council for granting us the privilege of doing this project. The good news is the construction is complete and the project is no longer an eye sore, rather one of the brightest spots in the commercial area of downtown Hermosa. Additionally, we've had a change in the leadership dynamic of the project and we will be better about being mindful of our impact to the community in the things we do. There was feedback that the construction workers were rude and inconsiderate. Unfortunately all the different tradespeople were subcontractors and we did not have direct control or authority over them. However, construction is now complete and although bumpy at times, there was no irreparable damage or effects from construction. Now we have more control and authority over workers on the property and can take quicker and swifter action on negative behavior. Of course, our goal is to avoid negative behavior and feedback completely by installing proper protocols and training. We are operating and managing the hotel independently. Therefore we have ultimate accountability and cannot shift blame to 3rd party management for any mishaps. We do have a full time General Manager, Rajiv Paul, who has been excellent. Addressing the Objections PAGE 0 5 CITY COUNCIL MEETING 540 H 2 O HERMOSA Concerns that we're going to be like the rest of the bars in Hermosa... That is not our aim or intention and we have control on that. Being able to only sell to guests would provide a much needed boost in revenue without much additional expense AND would help bring in more bookings and group reservations. We simply want to provide a luxury boutique hotel experience that one would expect when coming to such an establishment. Addressing the Objections PAGE 0 6 CITY COUNCIL MEETING 541 H 2 O HERMOSA Concerns we just want to get the property entitled to sell liquor just to increase the value and sell the hotel. It's true that being able to sell and serve beer and wine would likely increase the value of the property and business, however our intention is to keep and operate the hotel for years and generations to come. The objective is for this to be an asset that can provide financial security for the owners in their retirement years. Ultimately, the more successful we are, the less likely we are to sell the property. Addressing the Objections PAGE 0 7 CITY COUNCIL MEETING 542 CITY COUNCIL MEETINGH2O HERMOSA -It would be to guests only. Our front desk person, who already sells and serves coffee at our breakfast bar, would also be the one to transact and serve any beer and wine to guests -If needed, we can hire an additional employee to help execute the sale and service of beer and wine -If there is a group booking for an event, we also can hire and provide extra staff as needed -Strict enforcement and disclosure to guests about rules and timing about beer and wine How would we execute the sale and service of beer and wine? PAGE 0 8 543 Thank you 544 545 546 547 548 549 550 551 552 553 554 555 556 557 Attachment: Notice Poster 558 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Sunday, July 11, 2021 1:44:11 PM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Bob Jones submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: Please approve H2O's limited alcohol license. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 559 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Sunday, July 11, 2021 2:08:55 PM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Courtney Ryan submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: Please approve to support H2O's licensing to serve their guests alcohol. It is important for our hotels to be able to offer this amenity upon arrival after a long day of travel. The additional income produced will help the business to succeed and increase the city's revenue from the business. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 560 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Sunday, July 11, 2021 3:14:34 PM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Andrea Jacobsson submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I wholeheartedly support of H2O’s request to modify their CUP to allow service of wine and beer to their guests. The Chhabria’s have offered to withdraw their request to have liquor, and to accept wine and beer until 10 pm only. All restaurants in the city are allowed by rights to sell wine and beer until 10 pm and this hotel should be treated the same. Be grateful and proud that the Chhabria family took a risk to invest millions of dollars in Hermosa Beach to build a beautiful new boutique hotel which was completed and opened in the most challenging time during the middle of the pandemic. Please support the city staff's recommendation to allow this lovely new hotel's request to serve wine and beer until 10pm so they may offer the same amenities as our other hotels. Thank you. Andrea Jacobsson, JAMA Auto House View and Analyze eComments 561 This email was sent from https://granicusideas.com. Unsubscribe from future mailings 562 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Sunday, July 11, 2021 6:43:21 PM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Alma Robinson submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: All licensees are required to keep all records pertaining to sales and purchases of alcohol or alcoholic liquor for a minimum of 4 years. <a href="https://theappsradar.com/best- telegram-tips-and-tricks/">best telegram tips and tricks</a> View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 563 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Monday, July 12, 2021 8:07:58 AM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Randy Balik submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I urge the City Council to support H2O's request. As I've stated numerous times publicly, this issue has dragged on far too long and I believe our Planning Commission has overstepped on this one, going back many years now. Regardless of the issues that some people had with H2O and its owners during a lengthy construction process, which are all valid and should not be minimized, the fact remains that our City should be of the mindset to help our anchoring businesses thrive, not struggle. Many complain about two things in Hb: 1) there is too much riffraff downtown, and 2) there are not enough 'anchoring businesses' that have the staying power to be here a long time and generate substantial revenue for Hb. The H2O hotel solves both - it will attract the right people (assuming there are the appropriate amenities like the ability to serve beer/wine it its lobby) and those people will not only generate TOT revenue from the hotel, but also sales tax revenue as they and their acquaintances spend their money in our city by dining and shopping. Make no mistake - high-end travelers seek hotels that have some basic amenities, and the ability to enjoy a beverage in the lobby during their stay is one of them. Let's not hamstring H2O and cause potential business to look elsewhere to spend their money. This 564 issue has dragged on and one - let's end it once and for all and do the right thing for both Hb and one of our high-end businesses that has real long-term potential here in our city. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 565 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Monday, July 12, 2021 10:54:51 AM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Javier Salazar submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I support H20's limited alcohol license. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 566 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting (Closed Session - 5:00 P.M.and Regular Meeting - 6:00 P.M), Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 5:53:15 AM SpeakUpNew eComment for City Council Virtual Meeting(Closed Session - 5:00 P.M.and Regular Meeting -6:00 P.M), Duly Posted on July 9, 2021 at 4:45P.M. by E.S. Tara McNamaraStabile submitted a new eComment. Meeting: City Council Virtual Meeting (Closed Session - 5:00 P.M.and Regular Meeting - 6:00 P.M), Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I encourage the City Council to allow H20 the ability to serve guests alcohol. Having had family stay at their hotel, I was able to see first hand that they've created a hotel with a different vibe than our other hotels. It's designed to attract business and upscale travelers, both of whom expect the ability to meet with people over a glass or wine or beer. Personally, I don't think I've ever stayed at a hotel that doesn't have this capability, and I imagine it would create a disappointing experience for guests. Additionally, as this has been a long process including opening during a pandemic, we should give them some of the same consideration to thrive and survive as the restaurants that surround H20: they were specially permitted dining decks to allow them to make revenue to help compensate, and alcohol sales go a long way in helping a business recover. Whatever issues happened in the past, the best thing for Hermosa now is to support this new endeavor; we can't afford another empty building in the downtown area or the reputation of being unfriendly to business. Thank you for your consideration. View and Analyze eComments 567 This email was sent from https://granicusideas.com. Unsubscribe from future mailings 568 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 9:25:05 AM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Kathy Knoll submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: Please allow H20 Hotel to serve alcohol. They have invested a lot in to our community with a new hotel and the new updated retail center next door. We need to support all businesses but especially new businesses that invest in our city. They are a wonderful addition to our downtown and if they thrive we all win. Please approve their request for alcohol license. Kathy Knoll View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 569 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 9:55:00 AM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Marina Boulanger submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: We encourage the approval of the license. Serving alcohol to guests in a hospitality business helps with guest experience and retention. At a high class establishment like H2O, it will attract great guests that we want enjoying our city. Bringing in revenue that doesn't just benefit the business, but the city. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 570 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 12:19:19 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Jon David submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I support H2O Hotel's application for a limited license and further would like to see them granted a FULL liquor license. The City's historical stance against alcohol intensification by denying alcohol licenses in new areas away from the Plaza is exacerbating the very problem it has been trying to avoid. If the only place to go grab a cocktail is at the Plaza then the Plaza become THE drinking spot. When you focus on avoiding a problem, all you look at is the problem...and thus there is where you go. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 571 572 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 1:41:30 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Ira Ellman submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: I am against immediately giving H2O an amendment to their CUP for beer and wine (lobby) for the following reasons: - H2O agreed to their current CUP over six years ago - The hotel construction was totally mis-handled and incompetent. - Many long-term, beloved small businesses were closed prematurely (Classic Burger, donut shop, Granny Takes a Trip, Berl’s Barber Shop, etc.) to make room for the upscale hotel and adjacent stores. - The owners of H2O (to the best of my recollection) have never been active or contributed in any way to the city Hermosa Beach or any local organizations (decades). - H2O were not good citizens during and after construction. How can we expect them to suddenly follow rules? o Sold beach parking when it was clearly not allowed o Continually blocked the driveway of local residents o Allegedly removed a no parking sign o Rather than securing their parking lot, they lasted music in the middle of the night. o Open wine bottles and dirty wine glasses were observed by city officials in the lobby area. The easy, politically expedient way forward is to approve the amendment. However, the correct path is to delay a decision for 6 months for the hotel's owners to demonstrate that it is a good neighbor, business partner, competent and follows city codes. 573 View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 574 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 2:18:54 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Laura Pena submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: Dear Mayor, Council Members, and Staff – I would appreciate your support in approving H20’s request to modify their CUP to allow for service of beer and wine to their hotel guests and to fellow community members. I also encourage and support extending it to include a FULL liquor license. If we are to realize the vision that is in Plan Hermosa that states,”The Downtown District will continue to offer an array of uses for residents and visitors, and any new buildings should pay close attention to and contribute to the high quality pedestrian environment.” If any one of you have had the opportunity to visit H20, you will have seen this is not a bar in the making. Instead, it is a beautifully designed, upscale, boutique hotel which is exactly what our city needs. If we want to be known as an inviting beach city, extending the opportunity for others in our community to join their family, friends, and colleagues for a welcoming drink in the lounge should be a minimum. Considering other hotels in Hermosa like the Beach House and Hotel Hermosa are allowed to provided similar beverages to their guests, it would allow H20 to operate on an equal footing. As guests and visitors stay they will also be able to enjoy our surrounding businesses and will invite others to stay, shop, and dine locally, 575 thus contributing to our cities much needed vibrancy. I look forward to working with all of you to contribute to building a “Business and Community Friendly” environment for all. Thank you for your thoughtful consideration, Laura Pena View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 576 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 2:41:51 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Daniel Rittenhouse submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: Dear Council Members, I’m writing to voice my support for not only modifying H2O’s CUP to include community members, but to extend their CUP to a full liquor license. The idea that a new HOTEL (which does not look or feel like a bar at all) isn’t allowed a full liquor license is a textbook example of how our city is becoming less and less business friendly. H2O is far enough away to the downtown area to not contribute to the late-night shenanigans that bother our citizens, and it’s an anchored long-term business that will bring in the kind of guests that will contribute to our economy without causing late night disturbances. They should absolutely be able to operate just like the other hotels in our city. Please support! View and Analyze eComments This email was sent from https://granicusideas.com. 577 Unsubscribe from future mailings 578 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 2:59:52 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Peter Tucker submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: d. REPORT 21-0422 CITY COUNCIL REVIEW AND RECONSIDERATION OF THE APRIL 20, 2021 PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT TO PROVIDE ONSITE SALE, SERVICE, AND CONSUMPTION OF GENERAL ALCOHOL INDOORS ONLY WITHIN THE HOTEL LOUNGE FOR REGISTERED GUESTS ONLY, SEVEN DAYS A WEEK 7:00 A.M. TO 10:00 P.M. AT AN EXISTING HOTEL (H2O HERMOSA) AT 1429 HERMOSA AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). (Continued from May 25, 2021) (Community Development Director Ken Robertson) (Continued from May 25, 2021) eComment: The granting of a CUP for the usage of serving hotel guests and their visitors ( max 4) at H2O should be approved by the Council. This is an amenity(CUP) that has obtained ABC permit which is a strict application to be approved. This would allow the hotel to attract guests which would bring additional TOT taxes and show that the Council is business friendly. This hotel is small and if there were any problems this CUP approval the Council can set up a one year review for the CUP for for compliance. If violation's were observed that were in violation of the CUP then the City can limit or suspend the CUPs that were granted. The Hotel owners understand the ramifications of violating their CUPs and I'm sure that the moderating of these requirements by the owners will be their first priority. View and Analyze eComments 579 This email was sent from https://granicusideas.com. Unsubscribe from future mailings 580 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0417 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 CITY COUNCIL CONSIDERATION OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION’S PROPOSED USAGE HOURS AND UPDATED USE POLICIES FOR THE KELLY PICKLEBALL COURTS (Senior Recreation Supervisor Lisa Nichols) Recommended Action: Staff recommends City Council: 1.Approve the Parks, Recreation and Community Resources Advisory Commission’s recommended changes to Kelly Pickleball Courts use policies including reservation provisions and the scheduling of clinics for beginner players; and updates to the court usage hours totaling 42 hours per week; and 2.Consider the Commission’s recommendation to implement these updated use policies through a 90-day pilot program. Executive Summary: Following the May 2017 opening of four pickleball courts at the Clark complex,the City began to receive noise complaints from the neighboring properties.In 2020,the COVID-19 Pandemic necessitated a reduction of court usage hours.The reduced hours did not resolve all the issues with the surrounding neighborhood,therefore a 90-day pilot program for post-pandemic operations was developed for City Council consideration through a collaborative process. Background: In May 2017,the City opened the four pickleball courts located at the Clark complex.Due to the nature of the sport and its use of equipment that produces a loud popping noise,staff received ongoing noise complaints from those living nearby.Staff and the Department Use Policies Subcommittee of the Parks, Recreation and Community Resources Advisory Commission (Commission)worked on a viable solution to mitigate the noise impacts caused by pickleball play at the Kelly Pickleball Courts for the past several years.Extensive research and analysis were conducted on various noise mitigation solutions with no resolve. Over the past several months,staff and the Department Use Policies Subcommittee,consisting of Commissioner Ellman and former Commissioner Guheen,worked collectively to determine the best City of Hermosa Beach Printed on 7/9/2021Page 1 of 7 powered by Legistar™581 Staff Report REPORT 21-0417 Commissioner Ellman and former Commissioner Guheen,worked collectively to determine the best usage of the pickleball courts that would limit noise impacts to the nearby residents.Consistent with these efforts,staff initiated an equipment testing period from February 9-13 to determine if the usage of city-issued pickleball equipment,known to be quieter,would lessen noise impacts to those living nearby. Alternate or personal equipment was not permitted to be used during this time.Immediately following the completion of the testing period,surveys were provided to those that played with the equipment,as well as those living nearby to determine if the noise impacts were lessened.Unfortunately,the feedback was mixed with some expressing that the noise impacts were greatly reduced,while others experienced no change. Considering the inconclusive results of the equipment testing,the Subcommittee worked with staff to assemble a stakeholder focus group that consisted of representatives from the local neighborhood and members of the pickleball community.The purpose of the focus group was to discuss issues and make recommendations on viable solutions that would limit noise impacts to the nearby residents,while providing opportunities for the pickleball courts to be used during preferred times.The focus group created its Action Plan (Attachment 1)to inform and guide its work.The focus group met multiple times to develop options for consideration regarding court-use hours ranging from 45 hours to 51 hours weekly;updates to court reservation provisions;and commitment on the scheduling of clinics for beginner players.A comprehensive summary of the recommended options is included as Attachment 2. On June 2,2021,following review of the focus group’s recommendations,staff presented its recommendation to the Parks,Recreation and Community Resources Advisory Commission.The presentation included a weekly court-use total of 48 hours and full support of the focus group’s recommended reservation provisions and the scheduling of clinics.Staff recommendation is outlined in Table 1. Table 1: Staff Recommendation to the Commission at its June 2 Meeting City of Hermosa Beach Printed on 7/9/2021Page 2 of 7 powered by Legistar™582 Staff Report REPORT 21-0417 The Commission heard testimony from 12 community members and those from the pickleball community and recommended City Council approval of 42 weekly court-use hours;adoption of recommended updates to the reservation policy;and the scheduling of clinics for beginner players.Included in Table 2 is a comparison of staff’s recommendation for court-use hours and those recommended by the Commission for the Council’s approval. Table 2: Comparison of Staff Recommended and Commission Recommended Court-Use Hours City of Hermosa Beach Printed on 7/9/2021Page 3 of 7 powered by Legistar™583 Staff Report REPORT 21-0417 Additionally,the Commission included in its motion the implementation of these policy and court-use changes through a 90-day pilot program that would have staff monitor and return with results on the effectiveness of the changes and future recommendations.The pilot program concept was not part of staff recommendation to the Commission.The Commission unanimously approved its motion with a 4-0 vote. Analysis: Court-Use Hours In March 2020,the COVID-19 pandemic was declared resulting in the Los Angeles County Department of Public Health (LADPH)taking over the public health management of all municipalities within Los Angeles.In May 2020,an updated Health Officer Order (HOO)allowed the resumption of tennis and pickleball play and included strict protocols for all court users.In an effort to be compliant with the provisions in the HOO,staff implemented additional precautions and court-use requirements including a reduction of court usage hours at both the tennis and pickleball courts and the scheduling of court monitors to oversee these operations. Specific to the pickleball courts,the reduction of hours was an effort to lessen the noise impacts to those living nearby in consideration of those that may have been also working from home.For comparison purposes,prior to the pandemic,the pickleball courts were open seven days a week from 9:00 a.m.to 9:00 p.m.,which is a total of 84 hours.Currently,and while following the precautionary measures associated with the pandemic,the pickleball courts are open Tuesday through Thursday from 9:00 a.m. to 1:00 p.m.;Friday and Saturday from 10:00 a.m.to 6:00 p.m.;and closed Sunday and Monday.The City of Hermosa Beach Printed on 7/9/2021Page 4 of 7 powered by Legistar™584 Staff Report REPORT 21-0417 weekly total is 28 hours. Although the recently reduced court-use hours were somewhat effective at limiting the nuisance,the noise level was still noticeable to those living nearby.Considering how best to utilize the courts while being mindful of its impacts once the restrictive COVID-19 guidelines were lifted,a focus group was formed,tasked with finding a solution that would balance pickleball play with the noise impacts it creates to those living nearby.This focus group included representation from those living nearby as well as pickleball players.Following multiple meetings,it became apparent that the primary solution should include a reduction of court-use hours from the pre-COVID-19 schedule.With this solution in mind,the focus group worked collectively to develop a series of options regarding court-use hours that provided access five days per week ranging from 45 to 51 hours total.The times selected included those most preferred by the pickleball players,while remaining cognizant of times where noise nuisances would be most impactful to the neighborhood. As previously noted,the Commission received testimony from 12 community members at its June 2 meeting,which included three residents living in the nearby neighborhood and 9 pickleball players. Those living nearby overwhelmingly suggested that 39 total weekly hours would be a more appropriate amount of usage hours for the courts,which would be a reduction of nine hours from staff recommendation.The remaining speakers argued that 51 weekly court hours were more appropriate,an increase of three hours from staff recommendation.The Commission’s deliberations,lasting approximately two hours,included the Commission collectively sharing its concern about the noise impacts of the sport to those living nearby. Following this testimony,the Commission desired to further revise the court-use hours in an effort to give additional noise reprieve to the adjacent neighborhood on select mornings,as well as evening hours.As noted in Table 2,the Commission included as part of its final motion a later court opening on Tuesdays and Thursdays from 9:00 a.m.to 12:00 p.m.;and an earlier court closure on Wednesdays,Fridays,and Saturdays from 6:00 p.m.to 5:00 p.m.To help offset some of the reduced hours,the Commission recommends and extension of the court closure on Thursdays from 6:00 p.m. to 9:00 p.m. Following the Commission meeting,staff received feedback from both pickleball players and local neighbors of the courts.Local neighbors,who spoke up,are very supportive of the Commission’s recommendation and the suggested changes to how and when the courts should be used.The pickleball players that weighed in expressed that the Commission’s recommendation does not provide enough hours of weekly usage and further requests that the morning hours be replaced on Tuesdays and Thursdays.Morning play tends to be the most coveted time of day to play pickleball given the cooler temperatures. Membership and Reservation Policy One of the areas that the focus group discussed was the provisions around the use of the online court reservation system.Access to the online reservation system is only available to members of the Pickleball Membership Program,which is exclusive to Hermosa Beach residents.Use of the courts City of Hermosa Beach Printed on 7/9/2021Page 5 of 7 powered by Legistar™585 Staff Report REPORT 21-0417 Pickleball Membership Program,which is exclusive to Hermosa Beach residents.Use of the courts during times not reserved by members are available through a drop-in basis and are free of charge.The current policy limits reservations to one hour per day and reservations can be made as early as three days prior.The focus group and staff recommended slight modifications that would allow greater flexibility and usage of the courts,including the ability to reserve up to four days in advance and for a maximum of two hours per day.Staff supported these modifications in its recommendation to the Commission; the Commission also agreed. Clinics Pickleball is still a new and growing sport.Although it is a relatively simple game to play,it can be intimidating or difficult for beginner players to learn without some level of organized instruction.Although contract classes have been coordinated to provide an opportunity for players of all levels to learn techniques and rules of the game,these classes may be too formal for those that simply want to try the sport to see if they enjoy it enough to take more formal lessons.The focus group included as part of its recommendation a pledge to coordinate with staff periodic clinics at the courts.These would be drop-in events where beginner players could stay if they desired while learning about the sport from experienced players in a welcoming setting.Staff included these clinics as part of its recommendation to the Commission, which was affirmed by the Commission in its recommendation to the Council. Pilot Program As part of its recommendation,the Commission included a 90-day pilot program to test the effectiveness of the updates to the policy and court-use hours.However,there is some concern with the amount of time and resources that would be required to appropriately monitor and report back accurate findings of this pilot program.Considering the amount of time and effort that was allocated by the focus group coupled with staff’s experience implementing alternate court-use hours during the pandemic,further study and monitoring during the next 90 days would likely not provide additional insight or actionable data.Therefore,the Council should consider whether these policy changes should be implemented through a pilot program or if the policy changes should be final.Making the policy changes permanent would provide finality to this issue,which has been discussed and analyzed by staff,the Subcommittee and the Commission several times throughout the past few years. As a result of the comprehensive and collaborative review process,staff recommends City Council approve the Parks,Recreation and Community Resources Advisory Commission’s recommended changes to the Kelly Pickleball Courts use policies including reservation provisions and the scheduling of clinics for beginner players; and updates to the court usage hours totaling 42 hours per week. General Plan Consistency: PLAN Hermosa,the City’s General Plan,was adopted by the City Council in August 2017.The pickleball courts and use policies support several PLAN Hermosa goals and policies that are listed City of Hermosa Beach Printed on 7/9/2021Page 6 of 7 powered by Legistar™586 Staff Report REPORT 21-0417 below. Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policies: ·1.1 Open meetings.Maintain the community’s trust by holding meetings in which decisions are being made,that are open and available for all community members to attend,participate, or view remotely. ·1.4 Consensus oriented. Strive to utilize a consensus-oriented decision-making process. Parks and Open Space Element Goal 2. Abundant parks, open space, and recreational facilities to serve the community. Policies: ·2.1 Diverse programs and facilities.Offer diverse recreational programs and facilities to meet the needs of all residents. Goal 3. Community parks and facilities encourage social activity and interaction. Policies: ·3.4 Balance space needs.Balance the space needs and demand on public resources of formal and informal events. ·3.5 Health and physical activity.Increase the availability of space and variety of activities that promote community health and physical activity such as community gardens,fitness stations/equipment, and fields/courts. Fiscal Impact: Although it is anticipated that revenue would increase with the approval of the proposed court-use hours,it is impossible to estimate what those increases would be.Since memberships are valid for one year,they would increase at a different rate than reservations,which can be made multiple times by a member throughout the term of the membership.Revenue would be reviewed as a part of the FY 2021-22 Midyear Budget process and any adjustments to revenue would be made at that time. Attachments: 1. Action Plan for the Pickleball Stakeholders Focus Group 2. Summary of Proposed Actions from the Pickleball Stakeholders Focus Group Respectfully Submitted by: Lisa Nichols, Senior Recreation Supervisor Concur: Kelly Orta, Community Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 7 of 7 powered by Legistar™587 Action Plan for Use of the Kelly Pickleball Courts at Clark Complex Goal To work with the Parks, Recreation and Community Resources Advisory Commission Sub-Committee on Use Policies to initiate discussions with representatives of the local neighborhood adjacent to the Kelly Pickleball Courts at Clark Complex and representatives of the pickleball interest to find a viable solution to the noise and use impacts caused by the pickleball courts. Commission Sub-Committee Representatives: Commissioner Ellman & Commissioner Guheen Local Neighborhood Representatives: Gal Rose & Rob Blair Pickleball Interest Representatives: Mary Young & Rob Kole Staff: John Jones, Interim Community Resources Manager Lisa Nichols, Senior Recreation Supervisor Current Condition of the four (4) Pickleball Courts: • Two (2) of the four (4) courts are temporarily closed due to litigation • A Pickleball Membership Program and court reservation program for Hermosa residents was implemented to match what was implemented at the Community Center tennis courts for a usage fee. • Due to COVID-19, the hours of operation have been reduced. o Pre COVID-19 hours: 9am-9pm Daily (84 hrs.) o COVID-19 hours: 9am-1pm Tuesday-Thursday and 10am-6pm Friday - Saturday (28 hrs.) • Due to COVID -19 the city implemented Court Monitors to serve as ambassadors at the courts to ensure all Los Angeles COVID-19 Protocols were being followed for a fee. Pre-COVID-19 and Current Challenges: • Noise complaints from the local neighborhood residents due to activity of the pickleball courts. This noise issue has improved with reduced hours. • Bullying and harassment complaints from new or beginning Hermosa Beach resident pickleball players causing them not to want to use the courts. 588 • Courts seem to be overrun by highly competitive tournament type of players. • With two (2) courts operating, complaints from Hermosa Beach residents that there is not enough time or play for these courts. • With two (2) courts operating and both available for reservation, there are complaints there is no time for drop-in play, specifically on Friday and Saturday. • Complaints that there is a fee to use these courts and they should be free. • Complaints that there are not enough evening hours for play. Potential Options to Mitigate Challenges: • Close the Kelly Pickleball Courts • Restrict court usage to just Hermosa Beach residents. o This could be done by requiring reservations. Only current Pickleball Members can make reservations. Only Hermosa Beach residents can become members. This would eliminate drop ins. o OR this could be done by requiring all players to show proof of residency at the time of arrival to the Pickleball Court Monitor on duty. • Maintain reduced hours of use for these courts. • Identify a couple of courts that are for beginner use only. • Require that all players use the quieter pickleball paddles and balls. • With two (2) of the four (4) courts operating, reduce reservations to be allowable on one (1) court only, leaving the other court open for drop -in play only. When all four (4) courts return to operating, reduce reservations to be allowable on two (2) courts, leaving the other two (2) courts open for drop-in play only. Timeline: • Conduct a Zoom conference call with Commissioners, two (2) Representatives from the neighborhood, two (2) Representatives from the pickleball interest, and staff to review these issues and start the discussion of how to find a viable solution to the noise and use impacts for these courts. This Zoom conference call is targeted for Wednesday, March 31, 2021 at 6 PM. • Continue to hold Zoom conference calls on a weekly basis until a final resolution has been determined. • Sub-Committee presents this final resolution to the Parks, Recreation and Community Resources Advisory Commission at their Wednesday, June 2, 2021 meeting. • If approved, an agenda item will go forward from the Parks, Recreation and Community Resources Advisory Commission to the City Council as soon as possible in May. 589 Hermosa Beach Pickleball Stakeholders Group Summary of Proposed Actions Proposed Court Hours o Option 1: o Sundays: Closed o Monday: Closed o Tuesday: 9am-9pm o Wednesday: 9am-6pm o Thursday: 9am-5pm o Friday: 9am-5pm o Saturday: 9am-5pm o Total hours: 45 o Option 2: o Sundays: Closed o Monday: Closed o Tuesday: 9am-9pm o Wednesday: 9am-6pm o Thursday: 9am-6pm o Friday: 9am-6pm o Saturday: 9am-6pm o Total hours: 48 • Option 3: o Sundays: Closed o Monday: Closed o Tuesday: 9am-9pm o Wednesday: 9am-6pm o Thursday: 9am-9pm o Friday: 9am-6pm o Saturday: 9am-6pm o Total hours: 51 590 • Current Hours due to COVID-19 o Sunday: Closed o Monday: Closed o Tuesday: 9am-1pm o Wednesday: 9am-1pm o Thursday: 9am-1pm o Friday: 10am-6pm o Saturday: 10am-6pm o Total hours: 28 • Pre-COVID-19 Hours: o Sunday: 9am-9pm o Monday: 9am-9pm o Tuesday: 9am-9pm o Wednesday: 9am-9pm o Thursday: 9am-9pm o Friday: 9am-9pm o Saturday: 9am-9pm o Total hours: 84 Reservation and Usage Protocols: • Proposed Policy and Usage Modifications: o Reservations are given on a first-come, first-serve basis and can be made at least one day prior but not more than four (4) days in advance for two hours maximum per day, o Open play hours are only allowed when no reservation has been made. o Any USAPA sanctioned Pickleball equipment may be used • Current Policy: o Reservations are given on a first-come, first-serve basis and can be made at least one day prior but not more than three (3) days in advance for one hour maximum per day Allowance for Instruction Time on Courts • Proposed Action: o The Pickleball Community is offering to host periodic Saturday afternoon clinics/lessons for new/beginner players in coordination with the City. • Current Action: o Pre-COVID-19, the City held pickleball contract classes for all levels and expects this service to return post COVID-19 591 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Monday, July 12, 2021 9:22:27 AM SpeakUpNew eComment for City Council on 2021-07-135:00 PM - Closed Session - 5:00 P.M. RegularMeeting - 6:00 P.M. Duly Posted on July 9, 2021 at4:45 P.M. by E.S. Mary Young submitted a new eComment. Meeting: City Council on 2021-07-13 5:00 PM - Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: a. REPORT 21-0417 CITY COUNCIL CONSIDERATION OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION'S PROPOSED USAGE HOURS AND UPDATED USE POLICIES FOR THE KELLY PICKLEBALL COURTS (Senior Recreation Supervisor Lisa Nichols) eComment: My name is Mary Young, and I am a 34+ year Hermosa homeowner. As USAPA Pickleball Ambassador for Hermosa Beach, I believe I am representing the players when stating that we need MORE hours, not FEWER, at the Kelly Courts. Having participated on the recent Focus Group, and having attended the Park & Rec meeting June 2, I can state that there was no rationale for reducing the hours recommended by the Focus Group and, even worse, removing 2 mornings of play just as we get into the summer heat. Pre-COVID we had 84 hours per week, which was reduced to 28 during COVID. The Focus Group recommended 3 alternatives: 45, 48 or 51. None of these options favored the players, since those hours are less that the average of the pre and post COVID hours. (the average would be 56 hours). I listened to all the public comments and read ALL the emails that were sent for the June 2 meeting, and there was simply no justification for reducing the hours to 42. And even if the 42 were a final decision, WHY did they remove the popular 9-12 timeframe two of the days? This was not even suggested during the Focus Group deliberations OR via public comment. We were muted during the discussion and were not permitted to make this point, so there was no opportunity to ask WHY WOULD YOU REMOVE TWO MORNINGS??? This was completely out of left field. Even to retain the 42 hours, we would have opted to close the courts at 3pm 3 days in order to add back the 9-12 hours. The mornings are the safest and most popular hours, especially heading into summer. We would NOT remove the evening hours for working players - working players NEED those hours. We would just like to trade the late afternoons for the mornings on 3 days. The result 592 would be: Sunday and Monday closed Tuesday and Thursday 9am - 9pm Wednesday, Friday, Saturday 9am - 3pm (minimally, or preferably 9am - 4pm or 5pm) We would like full transparency in order to understand why the City is caving to the perceived opinions of a few neighbors and not representing the 100+ Hermosa resident players who rely on this sport for our health and well being. We live here too. We prefer to play locally and to dine, shop and socialize here. Most of us are homeowners and many have paid decades of taxes here supporting the city we love. But the City chose to notify ONLY the neighbors near the courts, NOT the pickleball members, of the June 2 meeting. Then Parks & Rec ignored the Focus Group's recommendations and reduced the hours below anything that could remotely be called a compromise. WHY?? The Focus Group was not a decision-making entity, we know that, but we got along and were successful in reaching a solution that was fair.... all for nothing. As ambassador, I would welcome an opportunity to meet with one or more city representatives to try to work with the city on this. I have offered to conduct beginner/new player clinics at no cost to the city, on my own time, but only if the city is reasonable about the hours. It makes no sense to introduce MORE new players to the already growing sport when the hours keep shrinking. Respectfully, Mary Young View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 593 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0420 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) Recommended Action: Staff recommends City Council: 1.Award the construction contract for CIP 669 City Park Restrooms and Renovations,including the three alternate bid items to Aid Builders,Inc.,the lowest responsible bidder,in the amount of $1,750,000; 2.Reject the bid protest from Cybertech Construction Company,Inc.regarding the missing addendum from Aid Builders, Inc. and waive the irregularity of Aid Builders, Inc.; 3.Authorize the Interim Director of Public Works to establish a 20 percent project contingency for a total amount of $350,000; 4.Adopt the attached resolution entitled “A Resolution of The City Council of The City of Hermosa Beach Approving the Construction of CIP 669 City Park Restrooms and Renovations Pursuant to Government Code Section 830.6 and Establishing a Project Payment Account”; 5.Authorize the Mayor to execute the construction contract and the City Clerk to attest,subject to approval by the City Attorney; and 6.Authorize the Interim Director of Public Works to file a Notice of Completion following completion of the project. Executive Summary: Capital Improvement Project CIP 669 City Park Restrooms and Renovations provides for the construction of four public restrooms and the remodel of one existing restroom for City parks located at:861 Valley Drive (Clark Stadium);southeast corner of Prospect Avenue and 6th Street (Fort Lots- of-Fun);southeast corner of Prospect Avenue and 19th Street (Seaview Park);and 425 Valley Drive (South Park). Staff received construction bids for CIP 669 City Park Restrooms and Renovations and recommends City Council award a construction contract to the lowest responsible bidder, Aid Builders, Inc. City of Hermosa Beach Printed on 7/9/2021Page 1 of 6 powered by Legistar™594 Staff Report REPORT 21-0420 Background: Capital Improvement Project CIP 669 Fort Lots-O-Fun and Seaview Parkette Restrooms was originally included in the FY2016-17 Capital Improvement Program.The original scope of work consisted of installation of two prefabricated single vault ADA compliant restroom buildings for a total of $87,000.Since that time,the project expanded in scope to include construction of two new site- built ADA compliant restrooms at Fort Lots-O-Fun and Seaview Parkette,design and construction of a new ADA compliant restroom at Clark Field,the upgrade and renovation of one restroom at South Park, and the construction of one new ADA compliant restroom at South Park. At the April 12,2017 meeting,City Council awarded a contract to the architectural firm Adrian-Gaus Architects,Inc.for the design of four public restrooms and the remodel of one existing restroom for four City parks.Following the development of preliminary designs,City staff and the architect presented preliminary design plans to the Parks,Recreation and Community Resources Advisory Commission and the Public Works Commission.Staff and the design consultant also conducted an on-site design charrette on August 13,2017 to review the designs with residents and receive feedback. After receiving public input and making revisions,staff presented the revised design plans to an appointed Public Works Commission subcommittee via email,the Parks,Recreation and Community Resources Advisory Commission at its December 5,2017 meeting,and the Planning Commission at its January 22,2018 meeting.At the January meeting,the Planning Commission adopted a resolution to approve the Precise Development Plans for the new restroom facilities and determination that the projects were categorically exempt from the California Environmental Quality Act (CEQA). At the February 13,2018 meeting,staff presented City Council with an update on the design plans. At that time,staff was working within an adopted FY2017-2018 project budget of $1,085,000,but informed City Council that construction cost estimates would be determined following the approval of design plans.As part of the meeting discussion,City Council directed staff to coordinate with site stakeholders on the construction schedule for the restrooms to minimize impacts to existing events and activities.At Clark Field,staff met with the City of Hermosa Beach Slo-Pitch Softball League, American Youth Soccer Organization (AYSO)Region 18,and Hermosa Beach Little League,and the Rotary Friday Farmers Market who expressed that winter is the preferred timeframe for the work.For all locations, these groups will be consulted again to ensure coordination with their various needs. During the design of the project,the Deputy City Engineer identified that original plans and estimates assumed that the project sewer work would be completed by City staff.However,installation of new sewer lines where none currently exist is beyond City staff resource capacity.Deficiencies in the sewer line serving the restrooms at Clark Field and the Base 3 building,which houses the Community Services Division of the Police Department,were also identified and will be reconstructed City of Hermosa Beach Printed on 7/9/2021Page 2 of 6 powered by Legistar™595 Staff Report REPORT 21-0420 Community Services Division of the Police Department,were also identified and will be reconstructed as part of this project. The sewer related items will be covered by Sewer Funds. Final design and plans were submitted by Adrian-Gaus Architects,Inc.in January 2021.Due to staffing issues and other workload related to COVID-19,the City did not approve final design and specifications for bidding until April 2021.On April 8,2021 and April 15,2021,the project was advertised in the Easy Reader,via the City’s website,and with bid advertising agencies.An addendum was issued on April 22, 2021 to clarify the bid opening date. Past Council Actions Meeting Date Description April 12, 2017 (Regular Meeting)Council awarded the design contract to the architectural firm Adrian-Gaus Architects, Inc. February 13, 2018 (Regular Meeting)City Council received update on the design plans Analysis: Staff developed the bid package in a manner that would prioritize award of South Park and Clark Field,the two highest priority sites,while allowing the City the option to award additional sites depending on bid amounts.Therefore,the scope of work for the South Park and Clark Field sites were used to establish the base bid amount for low-bid selection.The bid package included three alternate bid items consisting of the remaining sites including:construction of the Seaview park restroom;construction of the Fort Lots-Of-Fun park restroom;and the remodel of the existing restroom at South Park. On April 28,2021,two bids were received and opened by the City Clerk.The apparent low base bid bidder was Aid Builders,Inc.with a construction cost estimate of $878,000.The bid amounts for the alternate sites were:Seaview Park Restroom-$324,000;Fort Lots-O-Fun-$410,000;and South Park Restroom Remodel-$138,000,for a total cost for base bid plus alternates of $1,750,000.The Engineer’s Estimate was $1,400,000. The base bid results are summarized below: Bidder Base Bid Amount Aid Builders, Inc. $878,000 Cybertech Construction Company, Inc.$964,000 While Aid Builders,Inc.was the apparent low bidder,they failed to include the one addendum issued for the project,which was a requirement stated in the bid documents.On May 3,2021,staff received a bid protest from the second lowest bidder,Cybertech Construction Company,Inc.stating that the low bidder should be found non-responsive due to failure to include the signed addendum with their City of Hermosa Beach Printed on 7/9/2021Page 3 of 6 powered by Legistar™596 Staff Report REPORT 21-0420 proposal. On May 10,2021,Aid Builders,Inc.submitted a response letter to the bid protest stating that the missing addendum was inconsequential and that they substantially complied with the requirements set forth in the Bid Documents,including the invitation to bid,and that Aid Builders,Inc.has not gained any advantage over Cybertech Construction Company,Inc.The bid submitted by Aid Builders, Inc. is, in all respects, responsive, but for the fact that it failed to acknowledge Addendum 1. The last sentence of Paragraph 6 of Section III of the Instructions to Bidders in the Documents and Specifications provides in part that "City reserves the right to ...waive any irregularities or informalities in any bids and in the bidding process.”This provision conforms to well established practice that allows an awarding agency to waive irregularities that are inconsequential;that is, irregularities that "cannot have affected the amount of the bid or given a bidder an advantage or benefit not allowed other bidders"(47 Ops.Cal.Atty.Gen.129,130-31 (1966)).Such an advantage includes the ability to withdraw the bid and avoid the contract,or to alter the terms of the bid. (Menefee v.County of Fresno,163 Cal.App.3d 1175 (1985)-irregularity waivable because bidder could not withdraw).Williams v.Bergin,129 Cal.461 (1900)-bid irregularity not waivable where bid and bid bond not signed and failed to include name of bidder and total price;Valley Crest Landscape, Inc.v.City of Davis,41Cal.App.4th 1432(1996)-irregularity not waivable because it would have allowed the low bidder to withdraw its bid.) In this instance,the Aid Builders,Inc.bid conformed in all respects except failure to acknowledge Addendum 1,which merely changed the bid due date.That notwithstanding,Aid Builders,Inc.bid was submitted on time.The failure to include the signed acknowledgement did not alter any aspect of the bid, including the price. Failure to include the Acknowledgement does not create an advantage,as the bid was submitted on time in accordance with the change in the Addendum.Failure to include the Acknowledgement did not give Aid Builders,Inc.the right to seek relief and withdraw the bid.In summary,the irregularities may be waived and the contract awarded to Aid Builders, Inc. Staff reviewed the bids received and found the apparent low bidder,Aid Builders,Inc.,to be a responsible and responsive bidder.Aid Builders,Inc.contractor’s license is active and in good standing with the Contractor's State License Board,and the reference checks confirmed competency through projects similar in magnitude and character over the last five years. The Engineer’s Estimate,prepared by the Architect in March of 2021,was $1,400,000 for the construction of four public restrooms and the remodel of one existing restroom.This estimate was considered accurate at the time based on the best available data.Construction costs have been particularly difficult to predict due to the impacts of the COVID-19 pandemic on the availability of materials and labor.As a result,the final bid amount to construct the entire scope of the project is City of Hermosa Beach Printed on 7/9/2021Page 4 of 6 powered by Legistar™597 Staff Report REPORT 21-0420 25 percent higher than the Engineer’s Estimate at $1,750,000. Staff recommends a construction contingency of 20 percent,or $350,000,for this project. Contingency funds would be used to cover any unforeseen work that may arise during construction. Use of the contingency funds would be approved by the Deputy City Engineer and the Interim Public Works Director.Any unused funds would be returned to the funding source at the completion of the project. The project is anticipated to take approximately 180 working days to complete.To ensure the safe, expedient,and quality project completion,staff proposes to utilize the services of an on-call contract firm to provide construction management and inspection services for the project.The City does not have the staffing to perform these duties.Due to the project’s complexities,it will be vital to have a constant construction management presence to coordinate work,minimize disruption to the community,and facilitate real-time communications.The estimated cost to secure these services is about $350,000 based on their hourly rate for fulltime inspection.An option to reduce the construction management and inspection cost is to have the consultant provide part-time inspection. Notifications of commencement of construction would be sent to directly impacted residents prior to the beginning of construction,alerting them of construction dates,expected type of work,and phone numbers of key personnel involved with the construction of the project through distribution of door hangers. Updates of the project will be posted on the City’s website on a regular basis. General Plan Consistency: This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Parks and Open Space Element Goal 1.First class,well maintained,and safe recreational facilities,parks and open spaces. Simply providing parks and open space is not enough to encourage their use. Policies: 1.1 Facility upgrades. Improve and update park and open space facilities on a regular basis. 1.3 CPTED principles.Utilize “Crime Prevention Through Environmental Design”(CPTED) principles in the design and renovation of new and existing parks and open space facilities, including the greenbelt. 1.4 Low-maintenance design.Promote environmentally sustainable and low maintenance design principles in the renovation, addition, or maintenance of parks and recreation facilities. Fiscal Impact: Total expenditures on this project to date are $112,726 for design services and incidentals.The funding identified for this project for FY2020-21 in the Adopted Budget was $1,545,620,with an City of Hermosa Beach Printed on 7/9/2021Page 5 of 6 powered by Legistar™598 Staff Report REPORT 21-0420 funding identified for this project for FY2020-21 in the Adopted Budget was $1,545,620,with an estimated construction cost of $1,653,583.At the time the 2021-22 Preliminary Budget estimates were prepared,$1,539,488 in funding was available to be carried forward.An additional $521,437 was transferred in from CIP 143 PCH Mobility (project is on hold)and CIP 692 14th Street Beach Restroom Construction (project is in the design stages),for a total of $2,060,925 to be carried forward from the 2021-22 Revised Budget.Staff requested additional appropriations of $390,000 for FY2021-22 to fund the repairs of the sewer line in Clark field and supplement the funds for the construction and inspection services for the project. The current project funding details are presented below.Upon approval of the FY2021-22 Preliminary Budget, there are sufficient allocated to complete the full scope of work for the project. FUND Account Number Remaining FY 20/21 Funding Fund Request FY21/22 Total Park/Rec Facility Tax Fund 125-8669-4201 $113,621 $113,621 Capital Improvement Fund 301-8669-4201 $1,827,304 $390,000 $2,217,304 Sewer Fund 160-8669-4201 $120,000 $120,000 TOTAL $2,450,925 The link to the FY 21/22 project budget is: <https://stories.opengov.com/hermosabchca/published/lRpNq3Nrd> Attachments: 1.Bid Results 2.Bid Protest and Response Letters 3.Draft Resolution 4.Draft Agreement Respectfully Submitted by: Lucho Rodriguez, Deputy City Engineer Concur: Doug Krauss, Environmental Manager Concur: Angela Crespi, Interim Public Works Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 6 of 6 powered by Legistar™599 600 Cybertech Construction, Inc. 6732 White Oak Ave • Van Nuys • California 91416 • USA Phone: 818-330-3379 • Fax: 818-230-3002 • e-mail: info@cybertechconstruction.com • License # 921223 Commercial • Residential • Government • Owner-Builder Consultations • Additions • Home Renovations • Remodels May 3, 2021 City of Hermosa Beach City Hall Copy Via email to: Lucho Rodriguez - lrodriguez@hermosabeach.gov 1315 Valley Drive Hermosa Beach, CA 90254 Environmental Programs Manager Matter: Bid Protest for CIP 669 Public Restroom Hermosa Beach Protester: Cybertech Construction Company, Inc. 6732 White Oak Avenue Van Nuys, CA 91416 Tel: (818) 330-3379 Email: info@cybertechconstruction.com Bid Protested: AID Builders, Inc. Project: CIP 669 – Public Parks Restroom Relief Requested: Set aside and reject AID’s Non-Responsive Bid and award Project to Cybertech, a responsible bidder who submitted the lowest responsive bid To whom it may concern: With this letter, Cybertech Construction Company (“Cybertech”) formally protests the bid of AID Builders, Inc., (“AID”) for the CIP 669 – Public Parks Restroom Project (the “Project”). AID’s bid is materially non-responsive and thus, the City must reject and set aside AID’s bid. This protest is submitted per Paragraph 35 of the Bid Specifications. Bids are “responsive” if they comply with the bidding instructions and promise to do what the bidding instructions require. (Bay Cities Paving & Grading, Inc. v. City of San Leandro (2014) 223 Cal.App.4th 1181, 1187; see e.g., Great West Contractors, Inc. v. Irvine Unif. Sch. Dist. (2010) 187 Cal.App.4th 1425, 1457 [bid was responsive because bidder answered question as instructed]; see also MCM Construction, Inc. v. City and County of San Francisco (1998) 66 Cal.App.4th 359, 374.) A city may disregard immaterial or inconsequential deviations from bid instructions or requirements, but material deviations in a bid cannot be waived. (MCM Construction, Inc., supra, 66 Cal.App.4th at 374.) AID’s bid materially deviated from the bid instructions by failing to include Addendum No. 1 in the bid package – a mandatory requirement. The City must reject and set aside AID’s bid as being non-responsive. 601 Mr. Name Page 2 Date Addendum No. 1 to the bid package required all bidders to sign and return Addendum No. 1 with their bid, as it stated in pertinent part: Please note the following clarifications/revisions/changes are being made to the project documents for the project indicated above. The bidder shall execute the certification at the end of this addendum, and shall attach the executed addendum to the documents submitted with the bid to be considered a responsive and responsive bidder. [Emphasis added.] Emphasizing the City’s requirement to sign and return Addendum No. 1, the document reminded bidders at least two times to sign and return it with the bid documents, as it stated in pertinent part: Please sign the attached acknowledgement of receipt of addendum and enclose the original copy of the acknowledgement in your proposal. . . . … Complete and sign this acknowledgement form. Enclose the original copy of the acknowledgment in your proposal. Failure to do so may result in disqualification of your firm’s proposal. Contrary to the mandatory requirements noted above, AID did not sign and return Addendum No. 1 with its bid package. In other words, AID failed to comply with the City’s mandatory bidding instructions, failing to provide required certification that indicated its receipt and acknowledgement of Addendum No. 1. By the City’s bidding instruction’s own terms, AID’s bid is non-responsive and incomplete. AID’s failure to comply with the City’s mandatory bidding requirements is material and cannot be ignored or waived by the City. Thus, the City must reject and set aside AID’s bid because it is materially non-responsive. The Project should now be awarded to Cybertech Construction Company, Inc., a responsible bidder who submitted the lowest responsive and complete bid for the Project. We look forward to a favorable decision regarding this matter. Please let us know if there is any additional information that we may provide. Best regards, Mehrdad M. Farkhan, President Copy: Naz Azam, AID Builders, Inc., Via Email: bid@aidbuilders.com 602 City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, California 90254-3885 ADDENDUM No. 1 CIP 669 – Public Parks Restrooms DATE: April 22, 2021 TO: ALL PROSPECTIVE BIDDERS Please note the following clarification/revisions /changes are being made to the project documents for the project indicated above. The bidder shall execute the certification at the end of this addendum, and shall attach the executed addendum to the documents submitted with the bid to be considered a responsive and responsible bidder. BID OPENING DAY: The Bid opening date IS BEING CLARIFIED BELOW. The Bid opening day is Wednesday April 28, 2021 at 3:00 P.M. The sealed bids will be received at the Office of the City Clerk, City Hall, 1315 Valley Drive, Hermosa Beach, CA 90254, until 3:00 P.M. on Wednesday April 28, 2021. Please sign the attached acknowledgement of receipt of addendum and enclose the original copy of the acknowledgement in your proposal. If you have any questions or concerns, please email Doug Krauss, project manager, at dkrauss@hermosabeach.gov ACKNOWLEDGEMENT OF ADDENDUM # 1 CIP 669 – Public Parks Restrooms Complete and sign this acknowledgement form. Enclose the original copy of the acknowledgement in your proposal. Failure to do so may result in disqualification of your firm’s proposal. The undersigned acknowledges receipt of Addendum No. 1 dated April 22, 2021. ATTEST: _____________________________________ Principal: _____________________________________ Address: _____________________________________ By: _____________________________________ Title: _____________________________________ Cybertech Construction Company, Inc., Mehrdad Farkhan Mehrdad Farkhan 6732 White Oak Ave., Van Nuys, CA 91406 President 603 10605 Bloomfield St, Los Alamitos CA 90720 Phone 562-296-8773 Fax 562-296-3785 bid@aidbuilders.com Aid Builders Inc. Site Demolition, Grading &Underground Utility Services. CA License A & B # 800389 City of Hermosa Beach- Public Works 1315 Valley Drive, Hermosa Beach, CA 90254 To whom it may concern: Lucho Rodriguez Project Name: CIP 669 Public Restroom Hermosa Beach, Bid Date: 04/28/21 at 3:00 PM Subject: Response to protest letter from ‘CyberTech Construction Company’ dated 05/04/2021 Dear Mr. Rodriguez, Please note that Aid Builder’s Bid substantially complies with the requirements set forth in the Bid Documents, including the Invitation for Bid, and Aid Builders has not gained any advantage over Cybertech Construction Company. “ A basic rule of competitive bidding is that bids must conform to specifications, and that if a bid does not so conform, it may not be accepted. However, it is further well established that a bid which substantially conforms to a call for bids may, though it is not strictly responsive, be accepted if the variance cannot have affected the amount of the bid or given a bidder an advantage or benefit not allowed other bidders or, in other words, if the variance is inconsequential.” Ghilotti Construction Co. v. City of Richmond (1996) 45 Cal.App.4th 897, 904 (internal citations omitted). In addition, “the rule of strict compliance with bidding requirements does not preclude the contracting entity from waiving inconsequential deviations.” MCM Const., Inc. v. City & County of San Francisco (1998) 66 Cal.App.4th 359, 374. The test for measuring whether a deviation in a bid is sufficiently material to destroy its competitive character is whether the variation affects the amount of the bid by giving the bidder an advantage or benefit not enjoyed by the other bidders. 64 Am. Jur.2d, Public Works and Contracts, Section 59 (1972). Furthermore, Aid Builders did acknowledge addendum No. 1 by submitting the bid on time as described in addendum No. 1. Aid Builders’ failure to sign Addendum No. 1 to the bid package is immaterial because Aid Builders signed the entire bid effectively binding Aid Builders to Addendum No. 1 through the bid documents. Aid Builders’ failure to sign one piece of paper in its Bid does not provide it with any material advantage over Cybertech Construction Company. In other words, Aid Builders’ failure to sign one page of its bid does not affect the amount of its bid or give Aid Builders an advantage not allowed by other bidders. The City of Hermosa should proceed with awarding the Project to Aid Builders and waive the inconsequential deviation of Aid Builders inadvertently not signing one document in its bid. 604 10605 Bloomfield St, Los Alamitos CA 90720 Phone 562-296-8773 Fax 562-296-3785 bid@aidbuilders.com Aid Builders Inc. Site Demolition, Grading &Underground Utility Services. CA License A & B # 800389 I am looking forward to work with you. If you need any more information or clarification please do not hesitate to call me at (626)559-4827, or email me bid@aidbuilders.com Best Regards, Ed Albadry President, Aid Builders, Inc. (626)559-4827 605 -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 RESOLUTION NO. 21-XXXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH APPROVING THE CONSTRUCTION OF CIP NO. 669 CITY PARK RESTROOMS AND RENOVATIONS PURSUANT TO GOVERNMENT CODE SECTION 830.6 AND ESTABLISHING A PROJECT PAYMENT ACCOUNT; The City Council of the City of Hermosa Beach does resolve as follows: The City Council finds and declares as follows: Adrian-Gaus Architects, Inc. designed and prepared the plans for CIP NO. 669 City Park Restrooms and Renovations; The Deputy City Engineer finds that the plans are complete and the Project may be constructed; and The City Council wishes to obtain the immunities set forth in Government Code § 830.6 with regard to the plans and construction of the Project. Design Immunity; Authorization. The design and plans for the Project are determined to be consistent with the City’s standards and are approved; The design approval set forth in this Resolution occurred before actual work on the Project construction commenced; The approval granted by this Resolution conforms with the City’s General Plan; The City Engineer, or designee, is authorized to act on the City’s behalf in approving any alterations or modifications of the design and plans approved by this Resolution; and The approval and authorization granted by this Resolution is intended to avail the City of the immunities set forth in Government Code § 830.6. Project Payment Account; For purposes of the Contract Documents administering the Project, the City establishes an account containing sufficient monies from the current and following fiscal year budget to pay for the Project. This Account 606 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 is the sole source of funds available for the Contract Sum, as defined in the Contract Document administering the Project. The City Clerk is directed to certify the adoption of this Resolution. This Resolution will become effective immediately upon adoption. Now, therefore, be it resolved, that the City of Hermosa Beach City Council hereby adopts Resolution No. 21-XXXX on July 13, 2021. PASSED, APPROVED, AND ADOPTED this 13 day of July, 2021. _________________________________________________________________ MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: __________________________ __________________________ City Clerk City Attorney I City Clerk of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No. 21-XXXX was duly and regularly passed and adopted by the City Council of the City of Hermosa Beach, California, at its adjourned regular meeting held on the 13 day of July, 2021, by the following vote, to wit: AYES: NOES: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: 607 PROJECT CIP 669 – Public Park Restrooms 38 A. CONTRACT AGREEMENT This Construction Agreement (“Agreement”) is made and entered into as of the date executed by the Mayor and attested to by the City Clerk, by and between Aid Builders, Inc. (hereinafter referred to as "CONTRACTOR") and the City of Hermosa Beach, California, a municipal corporation (hereinafter referred to as "CITY"). R E C I T A L S A. Pursuant to the Notice Inviting Sealed Bids for CIP 669 – Public Park Restrooms (“Project”), bids were received, publicly opened, and declared on the date specified in the notice; and B. On July 13, 2021, City’s City Council declared CONTRACTOR to be the lowest responsible bidder and accepted the bid of CONTRACTOR; and C. The City Council has authorized the Mayor to execute a written contract with CONTRACTOR for furnishing labor, equipment and material for the CIP 669 – Public Park Restrooms in the City of Hermosa Beach. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, it is agreed: 1. GENERAL SCOPE OF WORK: CITY agrees to engage CONTRACTOR and CONTRACTOR agrees to furnish all necessary labor, tools, materials, appliances, and equipment for and do the work for the CIP 669 – Public Park Restrooms in the City of Hermosa Beach. The work shall be performed in accordance with the Plans and Specifications dated April 2021, (the “Specifications”) on file in the office of the City Clerk and in accordance with bid prices set forth in CONTRACTOR’S Bid Proposal and in accordance with the instructions of the City Engineer. 2. INCORPORATED DOCUMENTS TO BE CONSIDERED COMPLEMENTARY: The contract documents for the aforesaid project shall consist of the Notice Inviting Bids, Instructions to Bidders, Bid Proposal, Builders General Provisions, Standard Specifications latest edition, Special Provisions, Exhibit A and Exhibit B, and all referenced specifications, details, standard drawings, and appendices; together with this Agreement and all required bonds, insurance certificates, permits, notices and affidavits; and also, including any and all addenda or supplemental agreements clarifying, amending, or extending the work contemplated as may be required to insure its completion in an acceptable manner. All of the provisions of said contract documents are made a part hereof as though fully set forth herein. This contract is intended to require a complete and finished piece of work and anything necessary to complete the work properly and in accordance with the law and lawful governmental regulations shall be performed by CONTRACTOR whether set out specifically in the contract or not. Should it be ascertained that any inconsistency exists between the aforesaid documents and this written agreement, the provisions of this Agreement, the Builders General Provisions and the Standard Specifications, in that order, shall control. Collectively, these contract documents 608 PROJECT CIP 669 – Public Park Restrooms 39 constitute the complete agreement between CITY and CONTRACTOR and supersede any previous agreements or understandings. 3. COMPENSATION: CONTRACTOR agrees to receive and accept the prices set forth in its Bid Proposal [INSERT VALUE] as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. 4. TIME OF PERFORMANCE: CONTRACTOR agrees to complete the work within 180 working days from the date of the notice to proceed. By signing this Agreement, CONTRACTOR represents to CITY that the contract time is reasonable for completion of the work and that CONTRACTOR will complete such work within the contract time. 5. LIQUIDATED DAMAGES: In accordance with Government Code section 53069.85, it is agreed that CONTRACTOR will pay to CITY the sum set forth in Exhibit “A” for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, CONTRACTOR agrees CITY may deduct that amount from any money due or that may become due CONTRACTOR under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. 6. SUBSTITUTION OF SECURITIES: Pursuant to section 22300 of the Public Contract Code of the State of California, CONTRACTOR may request CITY to make retention payments directly to an escrow agent or may substitute securities for any money withheld by CITY to ensure performance under the contract. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with CITY or with a state or federally chartered bank as the escrow agent who shall return such securities to CONTRACTOR upon satisfactory completion of the contract. Deposit of securities with an escrow agent shall be subject to a written agreement substantially in the form provided in section 22300 of the Public Contract Code. 7. PREVAILING WAGES AND CALIFORNIA LABOR LAWS. Pursuant to Labor Code §§ 1720 et seq., and as specified in 8 California Code of Regulations § 16000 (“Prevailing Wage Laws”), CONTRACTOR must pay its workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and implement any prevailing wage requirements, and CONTRACTOR agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws. CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply 609 PROJECT CIP 669 – Public Park Restrooms 40 with the Prevailing Wage Laws. CONTRACTOR and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates. In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem wages are available upon request from CITY’s Engineering Division or the website for State of California Prevailing wage determination at http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the prevailing rate of per diem wages at the job site. CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the employment of apprentices by CONTRACTOR or any subcontractor. Labor Code § 1777.5 requires CONTRACTOR or subcontractor employing tradesmen in any apprenticeship occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate must also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases will not be less than one to five except: When employment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15 percent in the 90 days before the request for certificate, or When the number of apprentices in training in the area exceeds a ratio of one to five, or When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state-wide or locally, or Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman. When CONTRACTOR provides evidence that CONTRACTOR employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen. CONTRACTOR is required to make contributions to funds established for the administration of apprenticeship programs if CONTRACTOR employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions. CONTRACTOR and any subcontractor must comply with Labor Code §§ 1777.5 and 1777.6 in the employment of apprentices. Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex-officio the Administrator of 610 PROJECT CIP 669 – Public Park Restrooms 41 Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices. The CONTRACTOR or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law. CONTRACTOR and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of CONTRACTOR in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, CONTRACTOR shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such CONTRACTOR must comply with this section. Should noncompliance still be evident after such 10-day period, CONTRACTOR shall, as a penalty to CITY, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on CONTRACTOR. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project. By executing this Contract, CONTRACTOR verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and sub-subcontractors to comply with the same. 8. LEGAL HOURS OF WORK: Eight (8) hours of labor shall constitute a legal day's work for all workmen employed in the execution of this contract, and CONTRACTOR and any subcontractor under it shall comply with and be governed by the laws of the State of California having to do with working hours set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended. 611 PROJECT CIP 669 – Public Park Restrooms 42 CONTRACTOR shall forfeit, as a penalty to City, twenty-five dollars ($25.00) for each laborer, workman or mechanic employed in the execution of the contract, by him or any subcontractor under it, upon any of the work hereinbefore mentioned, for each calendar day during which the laborer, worker or mechanic is required or permitted to labor more than eight (8) hours in any one calendar day or 40 hours in any one calendar week in violation of the Labor Code. 9. PUBLIC WORKS CONTRACTOR REGISTRATION: Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations (DIR). No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the DIR to perform public work. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. 10. LABOR COMPLIANCE AND STOP ORDERS: This Project is subject to compliance monitoring and enforcement by the DIR. It shall be CONTRACTOR’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the DIR against CONTRACTOR or any subcontractor that affect CONTRACTOR’s performance of Work, including any delay, shall be CONTRACTOR’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered CONTRACTOR caused delay subject to any applicable liquidated damages and shall not be compensable by the CITY. CONTRACTOR shall defend, indemnify and hold CITY, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against CONTRACTOR or any subcontractor. 11. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS: Contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Labor Code section 1777.1 or 1777.7. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid, or may have been paid to a debarred subcontractor by a contractor on the Project shall be returned to the CITY. CONTRACTOR shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the project. 12. LABOR/EMPLOYMENT SAFETY: CONTRACTOR shall comply with all applicable laws and regulations of the federal, state, and local government, including Cal/OSHA requirements and requirements for verification of employees’ legal right to work in the United States 612 PROJECT CIP 669 – Public Park Restrooms 43 CONTRACTOR shall maintain emergency first aid treatment for its employees which complies with the Federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial Relations Division 1, Department of Industrial Relations, Chapter 4. CONTRACTOR shall ensure the availability of emergency medical services for its employees in accordance with California Code of Regulations, Title 8, Section 1512. CONTRACTOR shall submit the Illness and Injury Prevention Program and a Project site specific safety program to CITY prior to beginning Work at the Project site. CONTRACTOR shall maintain a confined space program that meets or exceeds the CITY Standards. CONTRACTOR shall adhere to CITY’s lock out tag out program 13. TRAVEL AND SUBSISTENCE PAY: CONTRACTOR agrees to pay travel and subsistence pay to each worker needed to execute the work required by this Agreement as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with Labor Code Section 1773.8. 14. CONTRACTOR'S LIABILITY: The City of Hermosa Beach and its officers, agents and employees ("Indemnitees") shall not be answerable or accountable in any manner for any loss or damage that may happen to the work or any part thereof, or for any of the materials or other things used or employed in performing the work; or for injury or damage to any person or persons, either workers or employees of CONTRACTOR, of its subcontractors or the public, or for damage to adjoining or other property from any cause whatsoever arising out of or in connection with the performance of the work. CONTRACTOR shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever. To the fullest extent permitted by law, CONTRACTOR will indemnify Indemnities against and will hold and save Indemnitees harmless from any and all actions, claims, damages to persons or property, penalties, obligations or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political subdivision, or other organization arising out of or in connection with the work, operation, or activities of CONTRACTOR, its agents, employees, subcontractors or invitees provided for herein, whether or not there is concurrent passive negligence on the part of City. In connection therewith: a. CONTRACTOR will defend any action or actions filed in connection with any such claims, damages, penalties, obligations or liabilities and will pay all costs and expenses, including attorneys' fees, expert fees and costs incurred in connection therewith. b. CONTRACTOR will promptly pay any judgment rendered against CONTRACTOR or Indemnitees covering such claims, damages, penalties, obligations and liabilities arising out of or in connection with such work, operations or activities of CONTRACTOR hereunder, and CONTRACTOR agrees to save and hold the Indemnitees harmless therefrom. 613 PROJECT CIP 669 – Public Park Restrooms 44 c. In the event Indemnitees are made a party to any action or proceeding filed or prosecuted against CONTRACTOR for damages or other claims arising out of or in connection with the work, operation or activities hereunder, CONTRACTOR agrees to pay to Indemnitees and any all costs and expenses incurred by Indemnitees in such action or proceeding together with reasonable attorneys' fees. Contractor's obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this agreement, to the extent required by Civil Code section 2782, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. So much of the money due to CONTRACTOR under and by virtue of the contract as shall be considered necessary by City may be retained by City until disposition has been made of such actions or claims for damages as aforesaid. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California. This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law. This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under this Agreement or any additional insured endorsements which may extend to Indemnitees. CONTRACTOR, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the CONTRACTOR regardless of any prior, concurrent, or subsequent passive negligence by the Indemnitees. 15. THIRD PARTY CLAIMS. In accordance with Public Contract Code § 9201, CITY will promptly inform CONTRACTOR regarding third-party claims against CONTRACTOR, but in no event later than ten (10) business days after CITY receives such claims. Such notification will be in writing and forwarded in accordance with the “Notice” section of this Agreement. As more specifically detailed in the contract documents, CONTRACTOR agrees to indemnify and defend the City against any third-party claim. 614 PROJECT CIP 669 – Public Park Restrooms 45 16. WORKERS COMPENSATION: In accordance with California Labor Code Sections 1860 and 3700, CONTRACTOR and each of its subcontractors will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, CONTRACTOR, by signing this contract, certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. 17. INSURANCE: CONTRACTOR shall procure and maintain for the duration of the Agreement, and for 5 years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONTRACTOR, its agents, representatives, employees, or subcontractors. a. Minimum Scope and Limit of Insurance. Coverage shall be at least as broad as: i. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. ii. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage. iii. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. iv. Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. v. Professional Liability (if Design/Build), with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate. vi. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. vii. If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR. Any available 615 PROJECT CIP 669 – Public Park Restrooms 46 insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. b. Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either: the CONTRACTOR shall obtain coverage to reduce or eliminate such self-insured retentions as respects the CITY, its officers, officials, employees, and volunteers; or the CONTRACTOR shall provide a financial guarantee satisfactory to the CITY guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or CITY. c. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions: i. The CITY, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the CONTRACTOR. General liability coverage can be provided in the form of an endorsement to the CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used). ii. For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. iii. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the CITY. d. Builder’s Risk (Course of Construction) Insurance. i. CONTRACTOR may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the CITY as a loss payee as their interest may appear. ii. If the Project does not involve new or major reconstruction, at the option of the CITY, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or 616 PROJECT CIP 669 – Public Park Restrooms 47 equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the CITY’s site. e. Claims Made Policies. If any coverage required is written on a claims-made coverage form: i. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work. ii. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work. iii. If coverage is cancelled or non-renewed, and not replaced with another claims- made policy form with a retroactive date prior to the contract effective, or start of work date, the CONTRACTOR must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work. iv. A copy of the claims reporting requirements must be submitted to the CITY for review. v. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold. f. Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the CITY. g. Waiver of Subrogation. CONTRACTOR hereby agrees to waive rights of subrogation which any insurer of CONTRACTOR may acquire from CONTRACTOR by virtue of the payment of any loss. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its employees, agents and subcontractors. h. Verification of Coverage. CONTRACTOR shall furnish the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to CITY before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the CONTRACTOR’s obligation to provide them. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. 617 PROJECT CIP 669 – Public Park Restrooms 48 i. Subcontractors. CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and CONTRACTOR shall ensure that CITY is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13. j. Special Risks or Circumstances. CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. 18. ASSIGNMENT: This contract is not assignable nor the performance of either party's duties delegable without the prior written consent of the other party. Any attempted or purported assignment or delegation of any of the rights of obligations of either party without the prior written consent of the other shall be void and of no force and effect. 19. INDEPENDENT CONTRACTOR: CONTRACTOR is and shall at all times remain as to the CITY, a wholly independent contractor. Neither the CITY nor any of its agents shall have control of the conduct of CONTRACTOR or any of CONTRACTOR'S employees, except as herein set forth. CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of CITY. 20. TAXES: CONTRACTOR is responsible for paying all retail sales and use, transportation, export, import, special or other taxes and duties applicable to, and assessable against any work, materials, equipment, services, processes and operations incidental to or involved in this contract. CONTRACTOR is responsible for ascertaining and arranging to pay them. The prices established in the contract shall include compensation for any taxes CONTRACTOR is required to pay by laws and regulations in effect at the bid opening date. 21. LICENSES: CONTRACTOR represents and warrants to CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of CONTRACTOR to practice its profession. CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of CONTRACTOR to practice its profession. CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826. 618 PROJECT CIP 669 – Public Park Restrooms 49 22. RECORDS: CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by CITY or any authorized representative, and will be retained for four years after the expiration of this Agreement. All such records shall be made available for inspection or audit by CITY at any time during regular business hours. 23. SEVERABILITY. If any portion of these contract documents are declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 24. WHOLE AGREEMENT: This Agreement supersedes any and all other agreements either oral or written, between the parties and contains all of the covenants and agreements between the parties pertaining to the work of improvements described herein. Each party to this contract acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statements or promise not contained in this contract shall not be valid or binding. Any modifications of this contract will be effective only if signed by the party to be charged. 25. AUTHORITY: CONTRACTOR affirms that the signatures, titles, and seals set forth hereinafter in execution of this Agreement represent all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest herein. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. This Agreement may be modified by written amendment. CITY’s city manager may execute any such amendment on CITY’s behalf. 26. NOTICES: All notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address. 619 PROJECT CIP 669 – Public Park Restrooms 50 CITY OF HERMOSA BEACH 1315 Valley Drive Hermosa Beach, CA 90254 Attention: Lucho Rodriguez, Project Supervisor CONTRACTOR: __________________________________________ __________________________________________ Attention: __________________________________ 27. DISPUTES. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes. Claims. For purposes of this Section, “Claim” means a separate demand by CONTRACTOR, after a change order duly requested in accordance with the terms of this Contract has been denied by the CITY, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of CONTRACTOR pursuant to the Contract, or (C) an amount the payment of which is disputed by the CITY. A “Claim” does not include any demand for payment for which CONTRACTOR has failed to provide notice, request a change order, or otherwise failed to follow any procedures contained in the Contract Documents. Claims governed by this Section may not be filed unless and until CONTRACTOR completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and CONTRACTOR’s request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the CITY and shall include on its first page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon. 620 PROJECT CIP 669 – Public Park Restrooms 51 Supporting Documentation. The CONTRACTOR shall submit all claims in the following format: Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made List of documents relating to claim: Specifications Drawings Clarifications (Requests for Information) Schedules Other Chronology of events and correspondence Analysis of claim merit Analysis of claim cost Time impact analysis in CPM format If CONTRACTOR’s claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, CONTRACTOR shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions. Cover letter and certification of validity of the claim, including any claims from subcontractors of any tier, in accordance with Government Code section 12650 et seq. City’s Response. Upon receipt of a claim pursuant to this Section, CITY shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide CONTRACTOR a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement. If CITY needs approval from its governing body to provide the CONTRACTOR a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, CITY shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide CONTRACTOR a written statement identifying the disputed portion and the undisputed portion. 621 PROJECT CIP 669 – Public Park Restrooms 52 Within 30 days of receipt of a claim, CITY may request in writing additional documentation supporting the claim or relating to defenses or claims CITY may have against the CONTRACTOR. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of CITY and the CONTRACTOR. CITY’s written response to the claim, as further documented, shall be submitted to CONTRACTOR within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by CONTRACTOR in producing the additional information or requested documentation, whichever is greater. Meet and Confer. If the CONTRACTOR disputes CITY’s written response, or CITY fails to respond within the time prescribed, the CONTRACTOR may so notify CITY, in writing, either within 15 days of receipt of CITY’s response or within 15 days of CITY’s failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, CITY shall schedule a meet and confer conference within 30 days for settlement of the dispute. Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, CITY shall provide the CONTRACTOR a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after CITY issues its written statement. Any disputed portion of the claim, as identified by CONTRACTOR in writing, shall be submitted to nonbinding mediation, with CITY and CONTRACTOR sharing the associated costs equally. CITY and CONTRACTOR shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time. If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. Unless otherwise agreed to by CITY and CONTRACTOR in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. The mediation shall be held no earlier than the date CONTRACTOR completes the Work or the date that CONTRACTOR last performs Work, whichever is earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed. 622 PROJECT CIP 669 – Public Park Restrooms 53 Procedures After Mediation. If following the mediation, the claim or any portion remains in dispute, CONTRACTOR must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time CONTRACTOR submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation. Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this Section: Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures.. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court. If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party. Government Code Claims. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, CONTRACTOR must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the CITY. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by CONTRACTOR. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, CONTRACTOR shall be barred from bringing and maintaining a valid lawsuit against the CITY. A Government Code claim must be filed no earlier than the date the work is completed or the date CONTRACTOR last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted. 623 PROJECT CIP 669 – Public Park Restrooms 54 Non-Waiver. CITY’s failure to respond to a claim from CONTRACTOR within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. CITY’s failure to respond shall not waive CITY’s rights to any subsequent procedures for the resolution of disputed claims. 24. NON-DISCRIMINATION: Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. A violation of this section exposes CONTRACTOR to the penalties provided for in Labor Code Section 1735. 25. TERMINATION: This Contract may be terminated by CITY at any time, either with our without cause, by giving CONTRACTOR three (3) days advance written notice. In the event of termination by CITY for any reason other than the fault of CONTRACTOR, CITY shall pay CONTRACTOR for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, CITY may terminate the Contract immediately without notice, may reduce payment to CONTRACTOR in the amount necessary to offset CITY’s resulting damages, and may pursue any other available recourse against CONTRACTOR. CONTRACTOR may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, CITY may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, CITY may require CONTRACTOR to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by CONTRACTOR in connection with its performance of this Contract. 26. ANTI-TRUST CLAIMS: This provision shall be operative if this Contract Agreement is applicable to California Public Contract Code Section 7103.5. In entering into this Contract Agreement to supply goods, services or materials, Contractor hereby offers and agrees to assign to the Agency all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract Agreement. This assignment shall be made and become effective at the time the Agency tender final payment to Contractor, without further acknowledgment by the Parties. 27. NO THIRD PARTY BENEFICIARY. This Contract and every provision herein is for the exclusive benefit of the Contractor and the City and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of the Contractor’s or the City’s obligations under this Contract. 28. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the Contract Documents. 624 PROJECT CIP 669 – Public Park Restrooms 55 29. FORCE MAJEURE. If CONTRACTOR is delayed in the performance or progress of the work by a Force Majeure Event, then the CONTRACTOR shall be entitled to a time extension, as provided in the contract documents, when the work stopped is on the critical path and shall not be charged liquidated damages. Such a non-compensable adjustment shall be CONTRACTOR’s sole and exclusive remedy for such delays and the CONTRACTOR will not receive an adjustment to the contract price or any other compensation. Contractor must submit a timely request in accordance with the requirements of the contract documents. A Force Majeure Event shall mean an event that materially affects a party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the work); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of CONTRACTOR and its subcontractors, of every tier, and to the extent the effects thereof cannot be avoided by use of replacement workers. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. 30. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. 31. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 32. GOVERNING LAW: This Agreement shall be governed by the laws of the State of California, and exclusive venue for any action involving this Contract will be in Los Angeles County. IN WITNESS WHEREOF, the parties hereto have executed this Agreement with all the formalities required by law on the respective dates set forth opposite their signatures. State of California CONTRACTOR'S License No. __ 625 PROJECT CIP 669 – Public Park Restrooms 56 CONTRACTOR _________________ By: ____________________________________________ Date TITLE CITY OF HERMOSA BEACH, CALIFORNIA _________________ By: ____________________________________________ Date MAYOR ATTEST: By: ____________________________________________ Date CITY CLERK CONTRACTOR'S Business Phone Emergency Phone at which CONTRACTOR can be reached at any time: ( ) APPROVED AS TO FORM: _______________________________________________________________ CITY ATTORNEY __________________ Date 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 673 674 Rear View Front View Fort Lots O Fun Restroom 675 Seaview Park Restroom Solar Panel Canopy 676 South Park Restroom 677 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 1:11:53 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Ronald Neer submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0420 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) eComment: The Clark Field bathroom renovation has been on this agenda for four (4) years. Please approve this item and let's get started on this necessary project. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 678 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 1:38:57 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Sean Olsen submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0420 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) eComment: I am in full support of restoring and improving the abysmal and rancid bathroom situation at Clark Field. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 679 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 1:40:47 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Erik Charlton submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0420 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) eComment: Clark Field bathrooms are in desperate need of repair & updating. It is a shame that our young children & families have only one facility to use while at this park and they are a disgrace. Water flows from the toilets and urinals onto the floor which makes it difficult to walk into bathroom without getting wet. Our families, childern & community deserve better. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 680 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 2:12:51 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Matt Schaub submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0420 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) eComment: It's time to update and renovate Clark Field bathrooms. They're dirty, sticky and question the functionality of the toilet, urinal and not even sure they have a soap dispenser? Clark Field is a beautiful facility outside of the bathrooms. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 681 From:noreply@granicusideas.com To:Eduardo Sarmiento; Suja Lowenthal; City Council; Angela Crespi Subject:New eComment for City Council Virtual Meeting Closed Session - 5:00 P.M.=0ARegular Meeting - 6:00 P.M.=0ADuly Posted on July 9, 2021 at 4:45 P.M. by E.S. Date:Tuesday, July 13, 2021 2:46:14 PM SpeakUpNew eComment for City Council Virtual MeetingClosed Session - 5:00 P.M. Regular Meeting - 6:00P.M. Duly Posted on July 9, 2021 at 4:45 P.M. byE.S. Jeff Miller submitted a new eComment. Meeting: City Council Virtual Meeting Closed Session - 5:00 P.M. Regular Meeting - 6:00 P.M. Duly Posted on July 9, 2021 at 4:45 P.M. by E.S. Item: b. REPORT 21-0420 AWARD OF CONSTRUCTION CONTRACT FOR CIP 669 CITY PARK RESTROOMS AND RENOVATIONS (Interim Public Works Director Angela Crespi) eComment: As President of Hermosa Beach Little League the past two seasons, I got two questions from our Little League community more than any other question: "When is baseball coming back?" and "When are the Clark Field bathrooms going to be rebuilt?" For such a fantastic Hermosa Beach landmark like Clark Field, the bathrooms are an embarrassment. We have visitors from other cities around Southern California (and beyond) who love coming to Clark Field, and we have to apologize for the bathrooms consistently. This project has been moving through red tape for 4 years. Let's FINALLY move forward and provide the facility with respectable restrooms. View and Analyze eComments This email was sent from https://granicusideas.com. Unsubscribe from future mailings 682 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0415 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 ASSIGNMENT AGREEMENT BETWEEN THE CITY OF WEST HOLLYWOOD AND THE CITY OF HERMOSA BEACH FOR THE EXCHANGE OF PROPOSITION A LOCAL RETURN FUNDS (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council: 1.Approve an Assignment Agreement for a Proposition A (Prop A)Local Return Fund Exchange with the City of West Hollywood for $700,000 in City of Hermosa Beach Proposition A funds in exchange for $490,000 of unrestricted funds from the City of West Hollywood; and 2.Authorize the City Manager to execute documents incident to the Agreement. Executive Summary: The City of Hermosa Beach has an excess of Prop A funds.The City of West Hollywood needs additional Prop A funds for its transit operations.Staff recommends City Council approve a fund exchange with the City of West Hollywood at an exchange rate of $0.70 on the dollar.The Prop A funds would remain restricted for the City of West Hollywood;the funds received by Hermosa Beach would become unrestricted and may be used for any purpose.Hermosa Beach would receive $490,000 in unrestricted funds in exchange for $700,000 in Prop A funds. Discussion: Staff recommends that the City’s excess Prop A funds be exchanged for unrestricted funds that may be used for any purpose.The City of West Hollywood has a need for additional Prop A funds and is agreeable to an exchange. West Hollywood and Hermosa Beach have tentatively agreed to an exchange rate of $0.70 on the dollar.Metro confirmed that this was the going rate for this type of fund exchange.If approved,the City would receive $490,000 in unrestricted use funds in exchange for $700,000 in Prop A fund dollars.If approved,the exchange would be completed as soon as the agreement is signed.West Hollywood is scheduled to approve the agreement on July 21,2021,but no later than September 30, 2021. City of Hermosa Beach Printed on 7/9/2021Page 1 of 2 powered by Legistar™683 Staff Report REPORT 21-0415 General Plan Consistency: PLAN Hermosa,the City’s General Plan,was adopted by the City Council in August 2017.The exchange of Prop A funds supports PLAN Hermosa goals and policies that are listed below. Governance Element ·1.2 Strategic planning.Regularly discuss and set priorities at the City Council and management level to prioritize work programs and staffing needs. ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities. Fiscal Impact: In exchange for $700,000 in Proposition A funds,the City would receive $490,000 in unrestricted funds for general use.The 2021-22 Preliminary Budget on tonight’s agenda under Public Hearings recommends that the unrestricted funds received be used to fund an additional Assistant Engineer. The cost of the Engineer is estimated at $120,530.The remaining unrestricted funds from the exchange will be “assigned”in the General Fund Balance to fund the position for approximately three additional years. Attachments: 1.Assignment Agreement with the City of West Hollywood Respectfully Submitted by: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 2 of 2 powered by Legistar™684 ASSIGNMENT AGREEMENT PROPOSITION A (PROP A) LOCAL RETURN FUND EXCHANGE This Assignment Agreement is made and entered into this 21th day of July, 2021, by the City of West Hollywood, California and the 13th day of July, 2021 by the City of Hermosa Beach, California with respect to the following facts: A. The City of West Hollywood provides community shuttles, demand-response services and bus pass and on-demand subsidies to serve seniors, people with disabilities and the general public. Given the grave t raffic congestion and parking problems of the City, West Hollywood is committed to reducing auto dependency by providing alternative modes of transportation. Adequate Proposition A Local Return funding for transit services are not available given the limi ted amount of West Hollywood's Local Return allocation. B. The City of Hermosa Beach has an accumulation of uncommitted Proposition A Local Return funds which could be made available to the City of West Hollywood to assist in providing the services discussed in Section A of this Agreement. In exchange for the assignment by the City of West Hollywood of the amount of its general funds indicated in Section 1 below, the City of Hermosa Beach is willing to assign uncommitted Proposition A Local Return funds to West Hollywood for the purpose identified in Section A. Now, therefore, in consideration of the mutual benefits to be derived by the parties and of the premises herein contained, it is mutually agreed as follows: 1. Exchange. The City of Hermosa Beach agrees to assign a total of $700,000 in uncommitted Proposition A Local Return funds in Fiscal Year 2021-2022 to the City of West Hollywood. In exchange, the City of West Hollywood agrees to assign $490,000 of its general funds to the City of Hermosa Beach in Fiscal Year 2021-2022. The rate of exchange is $0.70/$1.00. 2. Consideration. The City of Hermosa Beach shall assign the agreed upon Proposition A Local Return funds to West Hollywood in one lump-sum payment. West Hollywood shall likewise assign the agreed upon general funds to the City of Hermosa Beach in one lump-sum payment. The payment shall be due and payable upon execution of this Agreement, and upon approval by Los Angeles County Metropolitan Transportation Authority (LACMTA) of the City of West Hollywood’s project description. Each payment shall be based on the exchange rate in accordance with the exchange rate described in paragraph 1. 3. Term. This Agreement is effective on the date above written and for such time as is necessary for both parties to complete their mutual obligations u nder this Agreement, to be completed no later than September 30, 2021. 685 Prop A Funds - Assignment Agreement City of West Hollywood Approval: 21 July, 2021 City of Hermosa Beach Approval: 13 July, 2021 2 4. Termination. Termination of this Agreement may be made by either party so long as written notice of intent to terminate is given to the other party at least five (5) days prior to the termination. 5. Notice Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows: A. David Wilson City Manager City of West Hollywood 8300 Santa Monica Blvd. West Hollywood, CA 90069 B. Suja Lowenthal City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 6. Assurances A. West Hollywood shall use the assigned Proposition A Local Return funds only for the purpose of providing the services discussed in Paragraph A of this Agreement and within the time limits specified in LAC Metro’s Proposition A Local Return Program Guidelines. B. Concurrently with the execution of this Agreement, West Hollywood shall provide LA Metro with the Standard Assurances and Understandings Regarding Receipt and Use of Proposition A funds specified in the Guidelines regarding the use of the assigned Proposition A Local Return funds. 686 Prop A Funds - Assignment Agreement City of West Hollywood Approval: 21 July, 2021 City of Hermosa Beach Approval: 13 July, 2021 3 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, duly authorized, by the CITY OF WEST HOLLYWOOD on July 21, 2021, and by the CITY OF HERMOSA BEACH on July 13, 2021. CITY OF WEST HOLLYWOOD CITY OF HERMOSA BEACH BY BY: Lorena Quijano, Director of Finance and Technology Services Viki Copeland, Finance Director BY: BY: David Wilson, City Manager Suja Lowenthal, City Manager ATTEST: ______________________________ Melissa Crowder, City Clerk Eduardo Sarmiento, City Clerk 687 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0421 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 VACANCIES-BOARDS AND COMMISSIONS EXPIRATION OF TERMS-PARKS, RECREATION AND COMMUNITY RESOURCES COMMISSION (City Clerk Eduardo Sarmiento) Recommended Action: Staff recommends City Council appoint three of the five candidates for the Parks,Recreation and Community Resources Advisory Commission to four-year terms ending June 30, 2025. Executive Summary: Three Parks,Recreation and Community Resources Advisory Commissioner terms expired on June 30,2021.On April 13,2021,Council directed staff to advertise and request applications from interested parties,which resulted in five applicants.On June 8,2021,Council directed staff to schedule applicant interviews on Tuesday,July 13,2021 at 4:00 p.m.,prior to the regular meeting. Staff recommends City Council take action on the appointment of three of the five candidates to the Parks, Recreation and Community Resources Advisory Commission. Background: At its meeting of April 13,2021,City Council directed the City Clerk to advertise and request applications from interested parties for three Parks,Recreation and Community Resources Advisory Commission terms with an expiration date of June 30,2021.Following established procedure,notice was posted at the standard Civic Center locations,placed on the City’s website,and published twice in the Easy Reader,with an application filing deadline of 6:00 p.m.,Thursday,June 3.Five applications (attached) were received; applicants are alphabetically listed below: 1.Jani Lange 2.Lauren Pizer Mains 3.E. Thomas Moroney 4.Isabel Rodriguez 5.Tara McNamara Stabile On June 8,2021,Council directed staff to schedule applicant interviews on Tuesday,July 13,2021 at 4:00 p.m.,prior to the regular meeting,with appointments (four-year terms that will expire June 30, 2025)made at the meeting following the interviews.The Parks,Recreation and Community City of Hermosa Beach Printed on 7/9/2021Page 1 of 2 powered by Legistar™688 Staff Report REPORT 21-0421 2025)made at the meeting following the interviews.The Parks,Recreation and Community Resources Advisory Commission’s next meeting is scheduled for Tuesday, July 6, 2021. Past Council Actions Meeting Date Description April 13, 2021 (Regular Meeting) Council directed City Clerk to advertise and request applications from interested parties. June 8, 2021 (Regular Meeting) Council directed City Clerk to schedule applicant interviews for July 13, 2021 General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element 1.7 Diversity of Representation. Strive to reflect a comprehensive cross-section of the community in appointments to Commissions and Advisory Committees. Fiscal Impact: There are no fiscal impacts associated with the recommended action. Attachments: 1.Jani Lange Application 2.Lauren Pizer Mains Application 3.E. Thomas Moroney Application 4.Isabel Rodriguez Application 5.Tara McNamara Stabile Application Respectfully Submitted by: Eduardo Sarmiento, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 2 of 2 powered by Legistar™689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 711 CITY OF HERMOSA BEACH BOARDS AND COMMISSIONS The City of Hermosa Beach appreciates your interest in serving on one of the City’s six boards and commissions. Board and commission members provide a valuable service and serve in a voluntary capacity, without compensation. Please submit your completed application to the City Clerk’s office. All appointments are made by the City Council. With one exception, each board and commission is composed of five members, serving staggered four-year terms. The composition of all standing boards and commissions excludes current City elected officials, and no members serve on more than one board/commission at the same time. All board and commission members are required by law to file statements of economic interest (assuming office statement, annual statements, and leaving office statements) for the purpose of disclosing potential conflicts of interest. The completed statements are filed with the City Clerk, who will provide all forms and instructions at the appropriate time. Generally, two absences from regularly scheduled meetings of any member within one calendar quarter and/or four absences from regular meetings within one calendar year constitutes grounds for removal or creates an automatic vacancy, with no distinction between excused and unexcused absences. All members serve at the pleasure of the City Council, with no term limits. Following is a brief description of qualifications and duties for each of the City’s boards and commissions, and the Hermosa Beach Municipal Code (HBMC) reference for obtaining more detailed information. BOARD OF APPEALS [HBMC 15.04.020] This five-member board provides for reasonable interpretations of the Building Code. Members must be qualified by training and experience to pass upon matters pertaining to building construction. There are no specified term limits (members serve at the pleasure of the City Council), and members are not required to be residents or qualified electors of the city. The Board of Appeals meets in the City Council Chambers at 7 p.m. on the second Monday of every month, as necessary. {Staff liaison = Community Development Director Ken Robertson} CIVIL SERVICE BOARD [HBMC 2.76] This five-member board functions as the City’s Review Board pertaining to personnel functions and Civil Service Rules and Regulations in conjunction with Ordinance N.S. 211 (People’s Initiative, passed by voters June 7, 1960). Members must be qualified electors of the City; no person shall be appointed to this board that holds any salaried public office or employment with the City; no member of this board shall be eligible for appointment to any office or employment with the City. Members are appointed to staggered four-year terms. The Civil Service Board is scheduled to meet regularly in the City Council Chambers at 5 p.m. on the third Wednesday of each month, as necessary, with additional meetings called, if needed. {Staff liaison = Human Resources Manager Vanessa Godinez} EMERGENCY PREPAREDNESS ADVISORY COMMISSION [HBMC 2.38] The duties of this seven-member commission include providing to the City Council advice and recommendations on how the City and its residents can prepare and respond swiftly and responsibly to emergencies. 712 Members must be residents of the City and are appointed to staggered four-year terms. The Commission meets regularly every other month in the City Council Chambers at 7 p.m. on the first Monday of odd-numbered months (January, March, May, July, September, November). {Staff liaison = Emergency Management Coordinator Brandy Villanueva} PARKS, RECREATION & COMMUNITY RESOURCES ADVISORY COMMISSION [HBMC 2.28] This five-member commission serves in an advisory capacity to the City Council in all matters pertaining to the Community Resources Department; cooperates with other governmental agencies and civic groups on the advancement of sound leisure, cultural, social services and educational programming; and formulates policies on the services, programs and lease agreements of the Department, subject to approval of the City Council. Members must be bona fide residents of the city, and not members of the Hermosa Beach Community Center Foundation Board. Members are appointed to staggered four-year terms. The Commission meets regularly in the Council Chambers at 7 p.m. on the first Tuesday of each month, or as scheduled by the Commission. {Staff liaison = Community Resources Manager Kelly Orta} PLANNING COMMISSION [HBMC 2.32] This five-member commission is governed in all respects and performs duties as prescribed by applicable state and local laws. The primary purpose of the Commission is to maintain and enhance the environment of the community, which entails advance or long-range planning (updating of the General Plan and specific elements), current planning (short-range projects), and land use controls (administering to the code and review of all subdivisions and zoning petitions). The Commission serves as an advisory board to the City Council on all matters pertaining to zoning, conditional use permit process, etc. Members must be qualified electors of the City. Members are appointed to staggered four-year terms. The Commission meets regularly in the Council Chambers at 7 p.m. on the third Tuesday of each month. {Staff liaison = Community Development Director Ken Robertson} PUBLIC WORKS COMMISSION [HBMC 2.80] The duties of this five-member commission are to review and make recommendations to the City Council on all capital improvement projects, assist with developing and updating design guidelines for public improvements, and other matters referred to the Commission by the City Council. Members must be qualified electors of the City. Members are appointed to staggered four-year terms. The Commission is scheduled to meet regularly every other month in the City Council Chambers at 7 p.m. on the third Wednesday of odd-numbered months (January, March, May, July, September, November). {Staff liaison = Public Works Director Andrew Brozyna} City Clerk's Office Phone: (310) 318-0204 1315 Valley Drive, Hermosa Beach, CA 90254 FAX: (310) 372-6186 Email: edoerfling@hermosabch.org (09-29-16) 713 CITY OF HERMOSA BEACH BOARD/COMMISSION APPLICATION NAME OF COMMISSION Name Home Phone Address Cell Phone Email Bus. Phone Occupation/Profession: Employer Name & Address REFERENCES: Local: Professional: Other: COMMUNITY PARTICIPATION AND SERVICE (past and present): Why do you wish to become a Commission member? What do you feel are the duties and responsibilities of a Commission member? Page 1 of 2 714 Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member? ____Yes ____No (If yes, please explain) Please provide below and/or attach a resume of your education, employment, memberships, past activities and other experience that you feel would qualify you as a Board/Commission member. This Board/Commission meets on at p.m. Do you foresee any scheduling problems that might cause you to miss meetings? ____Yes ____No How long have you lived in Hermosa Beach? Additional Comments: Signed: Date: (07-03-18) Page 2 of 2 715 716 717 718 719 720 721 722 723 724 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 21-0424 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 CITY COUNCIL COMMITTEE REORGANIZATION JULY 2021 (City Clerk Eduardo Sarmiento) Recommended Action: Staff recommends City Council: 1.Extend the decommission date for the Public Asset Naming Subcommittee; 2.Establish a Fiesta Hermosa Subcommittee with a defined scope and target decommission date; 3.Add and/or delete any other temporary subcommittees, as appropriate; 4.Appoint a delegate to the California Contract Cities Association; 5.Appoint an alternate to the Watershed Advisory Council of Santa Monica Bay Restoration Commission; 6.Consider other committee re-assignments or re-affirm current appointments; and 7.If delegate/alternate changes are made to the South Bay Cities Council of Government (SBCCOG), adopt the attached resolution to reflect the changes. Background: The appointment of delegates and alternates to committee assignments is consistent with the Council’s policy to maintain permanent representatives whenever possible.Reorganization of Council Committee assignments is typically handled annually.The last Council Committee reorganization was on December 8,2020.With the resignation of former Councilmember Hany Fangary on January 4, 2021, the following two committee assignments were left vacant. ·Delegate to California Contract Cities Association ·Alternate to Watershed Advisory Council of Santa Monica Bay Restoration Commission A Special Election was held on May 11,2021,to fill the vacant Council seat left by former Councilmember Fangary.Councilmember elect,Ray Jackson was sworn in by the City Clerk on May 27, 2021. At the June 22,2021 Council meeting,Councilmember Armato requested to revive the Fiesta Hermosa Subcommittee as part of a motion to also approve a second amendment to agreement City of Hermosa Beach Printed on 7/9/2021Page 1 of 3 powered by Legistar™725 Staff Report REPORT 21-0424 Hermosa Subcommittee as part of a motion to also approve a second amendment to agreement between the City and the Chamber of Commerce to provide Fiesta Hermosa.The motion was passed unanimously. The list of current committee assignments is attached (Attachment 1).Please note that a resolution is required for any delegate/alternate changes to the South Bay Cities Council of Governments (SBCCOG).A draft resolution is attached in the event of reassignment this evening (Attachment 2). Committee Information is also attached (Attachment 3). The City Clerk’s office will notify the boards and committees of any changes to delegate and alternate assignments,and the City Manager’s office will forward to Councilmembers the final committee- assignment list with any revisions made this evening. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Goal 4. A leader and partner in the region. Policies: ·4.1 Regional governance.Play an active role in the South Bay Cities Council of Governments,the Southern California Association of Governments and other regional agencies to protect and promote the interests of the City. ·4.2 Leadership in sustainability.Establish the City as a regional leader in sustainable development and encourage compact,walkable development patterns that conserve land resources,supports active transportation,reduces vehicle trips,improves air quality,and conserves energy and water. ·4.3 Collaboration with adjacent jurisdictions.Maintain strong collaborative relationships with adjacent jurisdictions and work together on projects of mutual interest and concern. ·4.4 Regional transportation and infrastructure decisions.Actively support regional transportation and infrastructure projects and investment decisions that benefit the City and the region. Fiscal Impact: There is no fiscal impact associated with this recommendation. Attachments: 1.City Council Committee List as of January 4, 2021 City of Hermosa Beach Printed on 7/9/2021Page 2 of 3 powered by Legistar™726 Staff Report REPORT 21-0424 2.SBCCOG Resolution (draft) 3.Committee Information Respectfully Submitted by: Ann Yang, Executive Assistant Concur: Eduardo Sarmiento, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 7/9/2021Page 3 of 3 powered by Legistar™727 CITY OF HERMOSA BEACH REORGANIZATION OF CITY COUNCIL COMMITTEE DELEGATE AND ALTERNATE APPOINTMENTS Page 1 of 4 Appointment 11-10-20 Amended 01-04-21 Beach Cities Health District Delegate Detoy California Contract Cities Association Delegate Vacant (Board members meet 2nd Thurs. at 700 N. Alameda St., Los Angeles) Alternate Detoy Economic Development Committee, formed 04/28/00 Delegate Campbell (Meets first Monday of each month at 6:00 p.m.) Delegate Detoy Hermosa Beach Sister City Association Delegate Armato (1st Mon. – 7 p.m., Community Center, Room 9) Alternate Massey Independent Cities Association Delegate Armato (Annual winter and summer seminars for delegates) [Board members meet 2nd Thursday, Alternate Campbell 7:00-8:30pm, Location varies each month] Independent Cities Risk Management Association Delegate (staff) Godinez (Bimonthly - Downey) Alternate (staff) Bagnara RESOLUTION NO. 16-7035 KHHR Communities Network Committee Delegate Armato (2nd Wed. in Jan, Apr, Jul, Oct, 6:00 p.m., Hawthorne Memorial Center or Alternate Campbell Hawthorne Municipal Airport) 728 CITY OF HERMOSA BEACH REORGANIZATION OF CITY COUNCIL COMMITTEE DELEGATE AND ALTERNATE APPOINTMENTS Page 2 of 4 Appointment 11-10-20 Amended 01-04-21 League of California Cities – L.A. County Division Delegate Campbell (1st Thurs. Jan./March/May - 6 p.m., locations vary, but usually Luminarias Restaurant - Monterey Park, Alternate Massey other League/Division/committee events as called) Los Angeles County/City Selection Committee (As called. Mayor must appoint alternate separately, Delegate (Mayor) Massey each time, when unable to attend meeting) Los Angeles County West Vector and Vector-Borne Control District Board (2nd Thurs. of odd numbered months, 7:30 p.m., Delegate Jim Fasola 6750 Centinela Ave., Culver City) Los Angeles International Airport Community Noise Roundtable Delegate Armato (2nd Wed. of odd numbered months, 6:30 p.m., LAX) Alternate Campbell Metropolitan Transportation Authority City Selection Committee Delegate Massey (as called) Alternate Detoy South Bay Cities Council of Governments (SBCCOG) Delegate Armato (4th Thurs., 6 p.m., 20285 Western Ave., Torrance) Alternate Massey RESOLUTION NO. 20-7224 SBCCOG Steering Committee Delegate/Alternate See above (2nd Mon., 12 p.m., 20285 Western Ave., Torrance) South Bay Cities Sanitation District (County Sanitation Districts of Los Angeles) 729 CITY OF HERMOSA BEACH REORGANIZATION OF CITY COUNCIL COMMITTEE DELEGATE AND ALTERNATE APPOINTMENTS Page 3 of 4 Appointment 11-10-20 Amended 01-04-21 Delegate (Mayor) Massey (3rd Wed. – 1:30 p.m., Torrance City Hall) Alternate Detoy Southern California Association of Governments Delegate Massey (Annual, as called) Watershed Advisory Council of Santa Monica Bay Restoration Commission Delegate Detoy (Meetings at least once a year, as called, usually afternoons at Dockweiler Youth Alternate Vacant Center, 12505 Vista del Mar, Los Angeles) West Basin Water Association Delegate Massey (1st Tues., 11:30 a.m., Carson Community Center) Alternate Detoy 730 CITY OF HERMOSA BEACH REORGANIZATION OF CITY COUNCIL COMMITTEE DELEGATE AND ALTERNATE APPOINTMENTS Page 4 of 4 Appointment 11-10-20 Amended 01-04-21 TEMPORARY CITY COUNCIL SUB-COMMITTEES North School Reconstruction Project [Formed 01/31/19] (Armato, Massey) Target Decommission Date: January 2022 The Subcommittee represents the City on the joint City and Hermosa Beach City School District collaborative to negotiate elements of a Memorandum of Understanding (MOU) between the two parties delineating mutually agreed upon outcomes through the North School Reconstruction Project. The Subcommittee is further charged with overseeing the fulfillment of the North School Reconstruction Project Memorandum of Understanding which was executed on February 27, 2019. The anticipated school opening date is December 2020. The anticipated adoption of the NTMP is March 2020 with implementation from March- December 2020. Public Asset Naming Subcommittee [Formed 12/17/19] (Armato, Campbell) Target Decommission Date: June 30, 2021 At its meeting of November 18, 2019, the City Council unanimously supported to consider dedicating the Hermosa Beach Community Garden in former Mayor/Councilmember Jeff Duclos’ name. The City does not currently have a formal process for naming a place after someone. Therefore, staff recommended that Council form a Sub-committee to work with a Sub-committee of the Parks & Recreation Commission on the dedication process. At its meeting of September 22, 2020, the City Council changed the subcommittee name from the Community Garden Dedication Subcommittee to the Public Asset Naming Subcommittee. 731 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 RESOLUTION NO. 21- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPOINTING A DELEGATE AND ALTERNATE TO SERVE AS THE CITY’S REPRESENTATIVE ON THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (SBCCOG) WHEREAS, the City of Hermosa Beach (“City”) desires to designate its representative to the South Bay Cities Council of Governments (SBCCOG). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That Councilmember ________________ is hereby appointed to serve as delegate and Councilmember _________________ is hereby appointed to serve as alternate on the South Bay Cities Council of Governments (SBCCOG). SECTION 2. That the City Manager is authorized to execute any documents which are necessary to effectuate these designations and which are consistent with this Resolution. SECTION 3. That a certified copy of this Resolution shall be provided to the South Bay Cities Council of Governments. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution, shall enter the same in the book of original Resolutions of said city, and shall make minutes of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted. PASSED, APPROVED and ADOPTED this 13th day of July, 2021. ______________________________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: Eduardo Sarmiento, City Clerk Michael Jenkins, City Attorney 732 Page 1 of 3 Updated: 12-10-19 CITY COUNCIL COMMITTEE INFORMATION California Contract Cities Association (CCCA) CCCA is comprised of 75 member cities. The objective of the organization is to assist member cities by advocating and advancing the benefits of the contracting model, protecting local control, embracing public/private partnerships and providing educational opportunities for members. Annual events include a Municipal Seminar in May, a Fall Conference, and a Sacramento Legislative Tour in January. Board members meet the second Thursday of each month. Independent Cities Risk Management Association (ICRMA) The ICRMA is comprised of 20 member cities located in the Los Angeles and Orange counties of Southern California. Members pool their resources under a Joint Powers Agreement (JPA) to support their individual self -insurance programs. The JPA allows but does not require a Councilmember to represent the City on the ICRMA Governing Board, and the City Council has appointed staff members to serve as delegate and alternate (as many other member cities have done) since specific risk management expertise is desirable and the bi-monthly meetings occur during the day. League of California Cities – Los Angeles County Division The League of California Cities, comprised of several geographical divisions throughout the State, provides legislative advocacy on behalf of cities, specifically on matters of good government and maintaining local control. The League’s annual conference in September rotates between northern and southern California. The Los Angeles County Division, encompassing the 86 cities of Los Angeles County, holds meetings at 6 p.m. on the first Thursday of the month (OR during the months of January, March and May) in the Los Angeles metropolitan area (locations vary), providing members with the opportunity to exchange ideas/information and share the advantages of cooperative advocacy. Any Division member may also apply for a one-year appointment to one of eight policy committees, meeting a maximum of four times per year, to help set League priorities and policies. Los Angeles County/City Selection Committee This organization is comprised of mayors of Los Angeles County cities. Its function is to appoint city representatives to Boards/Commission/Agencies (as required by law) such as South Coast Air Quality Management District, LAFCO, L.A. City Hazardous Waste Management Advisory Committee, L.A. County Metropolitan Transportation Authority, and to nominate for appointment members to the California Coastal Commission. 733 Page 2 of 3 Updated: 12-10-19 Meetings take place as called. Unlike other committees that have both an assigned delegate and alternate, the mayor must separately appoint an alternate to attend each meeting that he or she is unable to attend. Metropolitan Transportation Authority/City Selection Committee The MTA is charged with conducting hearings and setting fares for establish ed operating organizational units and the approval of transportation zones, final rail corridor selections, and approval of contracts for construction and transit equipment acquisition. The 14-member agency (which meets at 9:30 a.m. on the 4th Thursday of the month at the MTA, One Gateway Plaza, 3rd floor, L.A.) includes four city councilmembers. Each city within four sectors of the County (defined by the League of California Cities, L.A. County Division), may vote to nominate one or more candidates from that particular sector for consideration for appointment to the MTA by the L.A. County City Selection Committee (see above). This committee meets on an “on called” basis. South Bay Cities Council of Governments and Steering Committee The SBCCOG is a joint powers authority of 16 cities and L.A. County of that provides a forum for local government efforts to work collaboratively on programs and studies directed at improving the environment, preserving natural resources, advocating for regional efforts to expand transportation alternatives, and increasing awareness for effective policies for a sustainable community and economic development. Meetings are at 6 p.m. on the 4th Thursday of each month, at 20285 Western Avenue in Torrance. The Steering Committee serves as the executive committee of SBCCOG – its members are the officers and committee chairs, as well as the chairs of the working groups and a representative from the South Bay City Managers’ group. Meetings take place on the 2nd Monday of each month at 12 noon, at the South Bay Environmental Services Center, 20285 S. Western Avenue, Suite 100, Torrance. South Bay Cities Sanitation District (County Sanitation Districts of Los Angeles) The Sanitation Districts of Los Angeles are a partnership of special districts formed to protect public health and the environment through innovated cost-effective wastewater/ solid waste management and to convert waste into resources such as recycled water/ materials and energy. The South Bay Sanitation District board meetings take place at 1:30 p.m. on the 3rd Wednesday of each month at Torrance City Hall. Southern California Associations of Government SCAG is a joint powers authority established to provide a network for members to identify and address common community problems – the region encompasses six counties and 191 cities, covering more than 38,000 square miles. The agency develops long-range regional transportation plans including sustainable community strategy and 734 Page 3 of 3 Updated: 12-10-19 growth forecast components, transportation improvement programs, regional housing needs allocation, and a portion of the South Coast Air Quality management plans. A general assembly is convened at least once a year (usually in April or May). Watershed Advisory Council of Santa Monica Bay Restoration Commission The Santa Monica Bay Restoration Commission was established by the California Legislature in 2002 to monitor, assess, coordinate and advise the activities of state programs, and to oversee funding that affects the beneficial uses, restoration and enhancement of Santa Monica Bay and its watersheds. The Watershed Advisory Council serves as an advisory body to the Governing Board of the Santa Monica Bay Restoration Commission. Representatives serving on the Council include local, state and federal elected officials, public agencies responsible for protecting the resources and water quality of the Bay, the business community, along with environmental and other community groups. The Watershed Advisory Council meetings take place in the afternoon (usually 1-4 p.m.) at least once per year, as called (usually February, March or April), at Dockweiler Youth Center, 12505 Vista del Mar, Los Angeles. West Basin Water Association This Association is concerned the problems associated with the existing deficiency in the supply of groundwater in the West Basin – its purpose is to investigate problems, formulate and disseminate factual and educational data in order to provide the West Basin inhabitants with a dependable supply of water to meet pre sent and future needs. Meetings take place at 11:30 a.m. on the first Tuesday of each month at the Carson Community Center. Sister City Association, Inc. In 1967 the City of Hermosa Beach formed a “sister city” relationship with the City of Loreto, Baja California, Mexico – Council action on 3/21/67 initiated contact with Loreto government officials to establish a Sister City Program. The City Council adopted Resolution N.S. 2744 on 11/7/67, which welcomed Loreto, noted the official visit to Loreto by the Hermosa Beach City Council and Sister City Committee, and stipulated that an elected City official be appointed as a representative to help carry out the Program, which now includes a student exchange and paramedic training. Meetings take place at 7 p.m. on the first Monday of the month in Room 9 of the Community Center. 735 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 21-0423 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 13, 2021 TENTATIVE FUTURE AGENDA ITEMS Attached is the current list of tentative future agenda items for Council’s information. Attachments: Tentative Future Agenda Items City of Hermosa Beach Printed on 7/9/2021Page 1 of 1 powered by Legistar™736 July 7 , 2021 Honorable Mayor and Members Regular Meeting of of the Hermosa Beach City Council July 13, 20 2 1 TENTATIVE FUTURE AGENDA ITEMS JULY 27, 2021 @ 5:00 PM INITIAL DATE CLOSED SESSION JULY 27, 2021 @ 6:00 PM CITY MANAGER REPORTS Police Chief Update Update from Jim Fasola – City Delegate to the Los Angeles County West Vector & Vector-Borne Disease Control District Board of Trustees CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Revenue Report, Expenditure Report and CIP Report by Project Finance Director Ongoing City Treasurer’s Report and Cash Balance Report City Treasurer Ongoing Cancellation of Certain Checks City Treasurer Ongoing Capital Improvement Program Status Report Interim Public Works Director Ongoing Recommendation to receive and file the action minutes of the Public Works Commission meeting of May 19, 2021 Interim Public Works Director Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of July 20, 2021 Community Development Director Ongoing Planning Commission Tentative Future Agenda Items Community Development Director Ongoing Purchase of CCTV Camera Trailer Police Chief Staff Request Jul. 6, 2021 PUBLIC HEARINGS – 6:30 PM An Ordinance of the City of Hermosa Beach, California, adding Chapter 12.42 to the Hermosa Beach Municipal Code to require property owners to repair the sidewalk area abutting their real property City Attorney Staff Request Jun. 12, 2021 TA 21-1 City Council Consideration of Amendments to Section 17.08.020 of the Hermosa Beach Municipal Code regarding Home Occupations (home- based businesses) in residential zones and determination that the project is categorically exempt from the California Environmental Quality Act. (Community Development Director Ken Robertson) Community Development Director Staff Request Jun. 17, 2021 MUNICIPAL MATTERS Award of Construction Contract for CIP 421 Annual Sewer Improvements Phase 1 Interim Public Works Director Staff Request Jun. 23, 2021 Review and discuss the Draft 2021-2029 Housing Element Update and authorize submission to the California Housing and Community Development Department (HCD) Community Development Director Staff Request May 19, 2021 Return to Council to discuss a full ban on tobacco sales and to include all available data related to other communities who have adopted complete bans Community Development Director Council Direction Jan. 28, 2020 FUTURE AGENDA ITEMS Tentative Future Agenda Items City Manager Ongoing 737 2 AUGUST 10, 2021 @ 5:00 PM INITIAL DATE CLOSED SESSION AUGUST 10, 2021 @ 6:00 PM PRESENTATIONS COVID-19 HEALTH UPDATE FROM BEACH CITIES HEALTH DISTRICT LOS ANGELES COUNTY FIRE SERVICES AND MCCORMICK AMBULANCE SEMI-ANNUAL UPDATE CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Los Angeles Fire Services and McCormick Ambulance Monthly Report for June 2021 Emergency Management Coordinator Ongoing Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of July 6, 2021 Community Resources Manager Ongoing Approval of Special Event Long Term Agreement with Friends of the Parks Community Resources Manager Staff Request July 1, 2021 FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing MONDAY, AUGUST 16, 2021 @ 5:00 PM TRI-AGENCY MEETING WITH HBCSD AND BCHD TUESDAY, AUGUST 24 , 2021 @ 6:00 PM CEREMONIAL SWEARING -IN EVENT FOR RAY JACKSON 738 3 SEPTEMBER 14, 2021 @ 5:00 PM INITIAL DATE CLOSED SESSION : Leibfried v. Hermosa Beach SEPTEMBER 14, 2021 @ 6:00 PM PRESENTATIONS RECOGNIZING LEADERSHIP HERMOSA BEACH CLASS OF 2021 CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Los Angeles Fire Services and McCormick Ambulance Monthly Report for July 2021 Emergency Management Coordinator Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of August 17, 2021 Community Development Director Ongoing South Bay Workforce Investment Board Quarterly Summary Chris Cagle Quarterly Review of submittal of the 2020 Hermosa Beach Housing Element Annual Progress Report Community Development Director Annual FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing SEPTEMBER 28, 2021 @ 5:00 PM INITIAL DATE CLOSED SESSION SEPTEMBER 28, 2021 @ 6:00 PM CITY MANAGER REPORTS Update from Chief LeBaron on enforcement measures CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Revenue Report, Expenditure Report and CIP Report by Project Finance Director Ongoing City Treasurer’s Report and Cash Balance Report City Treasurer Ongoing Cancellation of Certain Checks City Treasurer Ongoing Capital Improvement Program Status Report Public Works Director Ongoing Recommendation to receive and file the action minutes of the Public Works Commission meeting of July 21, 2021 Public Works Director Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of September 21, 2021 Community Development Director Ongoing Planning Commission Tentative Future Agenda Items Community Development Director Ongoing Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of August 3, 2021 Community Resources Manager Ongoing MUNICIPAL MATTERS Designation of voting delegate and alternate for the League of California Cities 2021 Annual Conference and consideration of the League of California Cities Annual Conference Resolution City Manager Annual FUTURE AGENDA ITEMS Future Agenda Items City Manager Ongoing 739 4 PENDING STRATEGIC PLAN ITEMS STATUS / TENTATIVE MEETING DATE Update Personnel Policies Human Resources Manager Beach Policy/Regulations (Continued from meeting of October 27, 2016) Community Resources Manager On hold by Council Alternative Fuel Transportation Report, Nov. 2016 Environmental Analyst CCA Direction, Dec. 2016 Environmental Programs Manager PENDING NEW ITEMS STATUS / TENTATIVE MEETING DATE Consideration of re-establishing, on an as needed basis, both funding and discretion for the director of Public Works to contract services to pump major beach storm outfalls drains prior to anticipated major storm events (supported by Duclos, Armato and Petty) Initiated by: Other Matters Feb. 14, 2017 Public Works Director Staff to provide an update on storm drain maintenance and provide details on hydrodynamic separators (CIP 435) at the following CIP study session Policy discussion regarding city responsibilities and expectations when donations are made to City Initiated by: Council Direction May 24, 2017 Finance Director Will be discussed at the Revenue Strategy Study Session Approval of the Municipal Lease Policy Initiated by: Staff Request Jun. 12, 2018 Community Resources Manager Document Retention Policy Initiated by: Staff Request Nov. 28, 2018 City Clerk Pending Deputy City Clerk Appointment Consent for use of “Lot B” for construction staging area for Pier/Strand project Initiated by: Staff Request Dec. 17, 2018 Community Development Director On hold per developer Landscape and Street Lighting District Assessment Adjustment (mail-in election authorization) Initiated by: Council Direction Jul. 9, 2019 Public Works Director Add to Revenue Strategy Study Session Final Parcel Map No. 82295 for a two-unit residential condominium project at 1602 Loma Drive. Initiated by: Staff Request Oct. 10, 2019 Community Development Director Pending Coastal Development Permit Public Records Request Guidelines Initiated by: Staff Request Oct. 14, 2019 City Clerk/Assistant to the City Manager Pending Deputy City Clerk Appointment Emergency Services Municipal Code Chapter 2.56 Update Initiated by: Staff Request Jan. 15, 2020 Emergency Management Coordinator Waiting for State to review proposed language changes Consideration of licensing agreement/fees for use of City logo Initiated by: Council Direction Jun. 9, 2020 City Attorney Discussion on Potential Establishment of a City Council Subcommittee Regarding City Finances (supported by Detoy, Armato, Fangary) Initiated by: Other Matters Jun. 9, 2020 Finance Director/Assistant to the City Manager Request to Renew the Agreement to P urchase Parking Meter Equipment and Related Services Initiated by: Staff Request August 11, 2020 Police Chief Follow-up on Mayor’s Pledge Initiated by: Council Direction August 25, 2020 City Manager’s Office/Police Chief Updating Resolution 15-6988, Rules for the Conduct of City Council Meetings. Initiated by: Staff Request December 12, 2020 City Attorney/City Clerk Resolution of the City Council of the City of Hermosa Beach Approving the Grant of Funds from the State Coastal Conservancy for Hermosa Beach Parking Lot Greening Project Initiated by: Staff Request April 12, 2021 Environmental Programs Manager Ordinance to regulate Outdoor Lighting Initiated by: Staff Request June 3, 2021 Community Development Director 740 Page 1 of 2 Supplemental testimony from H. Longacre (Resident) to Item XV-a (Future Agenda Items) July 13, 2021 Hermosa Beach City Council 6-PM Regular Meeting City Manager/City Clerk: Please post this Supplemental with Item XV-a (Future Agenda Items) of the 6-PM Regular City Council Meeting of July 13, 2021. Thank You. July 13, 2021 To: Hermosa Beach City Council (Mary Campbell-Collins, Justin Massey, Raymond Jackson, Michael Detoy, Stacey Armato), City Clerk Eduardo Sarmiento, City Manager Suja Lowenthal, and Contract City Attorney Michael Jenkins. From: Howard Longacre, Resident Re: HERMOSA BEACH CITY COUNCIL PUBLIC HEARING scheduled for JULY 27, 2021 to enact An Ordinance of the City of Hermosa Beach, California, adding Chapter 12.42 to the Hermosa Beach Municipal Code to require property owners to repair the sidewalk area abutting their real property. https://hermosabeach.legistar.com/LegislationDetail.aspx?ID=5027919&GUID=C59FF050 -1EC5-44DA-BCBD-F214F261027E City Council and others: All in this communication are of my understanding, views, and suggestions. I note that scheduled for your next regular meeting on July 27, 2021 is a Public Hearing to be railroaded through is the following bit of trickery by someone(s). HERMOSA BEACH CITY COUNCIL PUBLIC HEARING JULY 27, 2021 to enact An Ordinance of the City of Hermosa Beach, California, adding Chapter 12.42 to the Hermosa Beach Municipal Code to require property owners to repair the sidewalk area abutting their real property. Snag from the “Tentative Future Agenda Items for the July 27, 2021 meeting. This is listed as a City Attorney item as coming from staff, but obviously with Ceremonial Mayor Justin Massey’s knowledge. The City Attorney should be, and no doubt is well aware that such an ordinance has been discussed repeatedly over the last 5 decades in city council meeting after meeting and for multiple reasons has never been implemented in this city due to the convoluted nature of the properties and absence, or presence of sidewalks, de facto grandfathered sidewalk uses, and more. The 8th Street ‘Safe Walks To School” sidewalks project wass a perfect example. People have been well aware that the city has had responsibilty for sidewalk maintenance, those on city property and city public easements, and after years of neglect is to now be dumping this responsibility onto the property owners, seniors and others? Such an ordinance of course will open the city to dozens of lawsuits if enacted, if not a class action, which the City Attorney well knows are likely, and which he’s no doubt already licking his chops at all the litigation his firm will benefit from as a result from his counsel to the Council. 741 Page 2 of 2 Supplemental testimony from H. Longacre (Resident) to Item XV-a (Future Agenda Items) July 13, 2021 Hermosa Beach City Council 6-PM Regular Meeting Other much-larger city’s with mostly consistent sidewalks have dumped their own neglect of sidewalks on to adjacent property owners. Is this something Suja has brought to our city, or proposed from her experiences and political activity in Santa Monica or Long Beach? It’s obvious that my pointing out, and calls for sidewalk repairs for years, both in my area and other areas of city (none effeecting my residence), has caused this item to suddenly pop up on the last 2 or 3 “Tentative Future Agenda Items”. Once again the City Council is clearly too focused with their personal self-serving agendas to take care of the basic sidewalk maintenace, and other basic stuff, and is allowing and directing their highly-paid hired out-of-town profiteers (in my view), i.e., their No-Bid-Contract-City Attorney Michael Jenkins and their City Manager Suja Lowenthal to run roughshod over the men, women, and children of this city, and their wallets. This is the kind of filthy, rotten government that has come to be a halllmark of Hermosa Beach decision making under the most recent city councils and especially since the election of Stacey Armato and Justin Massey. The city has reached a sorry despicable state with such sneaky approaches of, i.e., now to be placing the burden from their waste of the city treasury onto the backs of unsuspecting property owners with this sidewalks ordinance. Another complete governance disgrace. End-of-communication. 742